| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to security instruments entered into by the Texas Treasury |
|
|
Safekeeping Trust Company. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 404.103(b), Government Code, is amended |
|
|
to read as follows: |
|
|
(b) The trust company may enter into contracts, trust |
|
|
agreements, or other fiduciary instruments with the comptroller, |
|
|
the Federal Reserve System, a depository trust company, and other |
|
|
third parties. The trust company shall be liable under those |
|
|
contracts in accordance with the terms contained in the contracts. |
|
|
Notwithstanding any other statute to the contrary, to the extent |
|
|
permitted by the Texas Constitution and the contracts, trust |
|
|
agreements, or other fiduciary instruments between the trust |
|
|
company, the Federal Reserve System, and a depository trust |
|
|
company, the trust company's obligations shall be guaranteed by the |
|
|
state, and the state expressly waives all defenses of governmental |
|
|
immunity by and on behalf of the trust company, the comptroller, and |
|
|
the state, and expressly consents to sue and be sued in federal |
|
|
court or in any court of competent jurisdiction. Notwithstanding |
|
|
any other statute to the contrary, to the extent permitted by the |
|
|
Texas Constitution and the securities instruments between the trust |
|
|
company and third parties, the trust company's obligations shall be |
|
|
guaranteed only by the reserve balances held by the trust company |
|
|
under Section 404.105, and the state expressly waives all defenses |
|
|
of governmental immunity by and on behalf of the trust company, and |
|
|
the state expressly consents by and on behalf of the trust company |
|
|
to sue and be sued in federal court or in any court of competent |
|
|
jurisdiction. However, this provision does not alter or affect the |
|
|
immunity accorded to state officials and employees under state law. |
|
|
The trust company may enter into contracts with the comptroller and |
|
|
the Federal Reserve System to provide any services that the Federal |
|
|
Reserve System makes available, including: |
|
|
(1) safekeeping book-entry United States Treasury and |
|
|
agency securities owned by the state and its agencies; |
|
|
(2) using the federal reserve wire transfer system to |
|
|
transfer money and book-entry securities and to settle securities |
|
|
transactions involving book-entry United States Treasury and |
|
|
agency securities owned by the state and its agencies; |
|
|
(3) collecting, through the Federal Reserve System, |
|
|
checks deposited with the treasury; |
|
|
(4) receiving payments from and making payments to the |
|
|
federal government on behalf of the state and its agencies; |
|
|
(5) originating automated clearinghouse transactions |
|
|
or other electronic transfers to make payments on behalf of the |
|
|
state and its agencies, collecting revenues due the state and its |
|
|
agencies, and transferring money between state depositories; |
|
|
(6) paying warrants drawn on the treasury and |
|
|
presented through the Federal Reserve System for payment; and |
|
|
(7) safekeeping collateral pledged to secure deposits |
|
|
of public funds. |
|
|
SECTION 2. The changes in law made by this Act apply only to |
|
|
a security instrument entered into on or after the effective date of |
|
|
this Act. A security instrument entered into before the effective |
|
|
date of this Act is subject to the law in effect on the date that the |
|
|
security was entered into, and that law is continued in effect for |
|
|
that purpose. |
|
|
SECTION 3. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2019. |