This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  S.B. No. 1138
 
 
 
 
AN ACT
  relating to securities contracts 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, Government Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) 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.  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.
         (b-1)  In this subsection, "securities contract" includes
  direct security repurchase agreements, reverse security repurchase
  agreements, and related custody agreements. The trust company may
  enter into trust agreements, fiduciary instruments, or other
  contracts as principal or as trustee, with the comptroller and
  other third parties. The trust company shall be liable under the
  agreements, instruments, or contracts in accordance with the terms
  contained in the agreements, instruments, or contracts.
  Notwithstanding any other statute to the contrary, to the extent
  permitted by the Texas Constitution and the contracts, the trust
  company's obligations under securities contracts between the trust
  company and third parties shall be guaranteed by the state with, and
  only to the extent of, the reserve balances held by the trust
  company under Section 404.105, and for those securities contracts,
  the state expressly waives all defenses of governmental immunity by
  and on behalf of the trust company, and 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.
         SECTION 2.  Section 404.104(b), Government Code, is amended
  to read as follows:
         (b)  The comptroller may enter into contracts, trust
  agreements, and other instruments with the trust company as
  provided by Section 404.103 [404.103(b)].
         SECTION 3.  The changes in law made by this Act apply only to
  an agreement, instrument, or contract entered into on or after the
  effective date of this Act.  An agreement, instrument, or contract
  entered into before the effective date of this Act is subject to the
  law in effect on the date that the agreement, instrument, or
  contract was entered into, and that law is continued in effect for
  that purpose.
         SECTION 4.  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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1138 passed the Senate on
  April 26, 2019, by the following vote: Yeas 30, Nays 0; and that
  the Senate concurred in House amendment on May 25, 2019, by the
  following vote: Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1138 passed the House, with
  amendment, on May 22, 2019, by the following vote: Yeas 135,
  Nays 9, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor