Bill Text: TX SB1138 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to securities contracts entered into by the Texas Treasury Safekeeping Trust Company.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-10 - Effective immediately [SB1138 Detail]
Download: Texas-2019-SB1138-Introduced.html
Bill Title: Relating to securities contracts entered into by the Texas Treasury Safekeeping Trust Company.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-10 - Effective immediately [SB1138 Detail]
Download: Texas-2019-SB1138-Introduced.html
By: Watson | S.B. No. 1138 | |
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relating to the management of certain state and local funds, | ||
investments, and obligations. | ||
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 contracts, trust agreements, or other | ||
fiduciary instruments between the trust company and other third | ||
parties, the trust company's obligations shall be guaranteed only | ||
by the reserve balances held pursuant to 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. 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. |