Bill Text: TX SB2173 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the operation and administration of the Texas Bullion Depository; depository agents; and to the appropriation of money from the fees, charges, penalties, and other amounts related to the depository and deposited to the general revenue fund for that purpose.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-04-10 - Left pending in committee [SB2173 Detail]
Download: Texas-2017-SB2173-Introduced.html
By: Kolkhorst | S.B. No. 2173 | |
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relating to the operation and administration of the Texas Bullion | ||
Depository; depository agents; and to the appropriation of money | ||
from the fees, charges, penalties, and other amounts related to the | ||
depository and deposited to the general revenue fund for that | ||
purpose. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2116.001(9), Government Code, is amended | ||
to read as follows: | ||
(9) "Depository agent" means a person licensed in | ||
accordance with this chapter to serve as an agent on behalf of a | ||
current or prospective [ |
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account holder [ |
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transaction in precious metals bullion or specie. | ||
SECTION 2. Section 2116.002, Government Code, is amended by | ||
amending Subsection (a) and adding Subsections (c)-(h) to read as | ||
follows: | ||
(a) The Texas Bullion Depository is established as a program | ||
[ |
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provide a bullion depository and services for the public benefit | ||
relating to bullion, specie, and precious metals. | ||
(c) The comptroller may establish a special purpose | ||
corporation or other legal entity, with all general corporate | ||
powers incident to its operation as a corporate body, to operate the | ||
depository for the public benefit and provide related services, as | ||
provided by this chapter. The entity has all necessary and implied | ||
powers to accomplish the purposes of the entity. The entity is | ||
subject to regulation only as provided by this chapter. | ||
(d) The depository may adopt and amend articles of | ||
incorporation, bylaws, resolutions, and other documents necessary | ||
to carry out its purposes. | ||
(e) This state and the comptroller may not be held liable | ||
for the depository or related activities of the depository. This | ||
chapter may not be construed as creating financial or other | ||
responsibilities to the state or to the comptroller. This state | ||
does not pledge the full faith and credit of this state for the | ||
benefit of the depository. | ||
(f) The depository may enter into one or more contracts with | ||
a vendor to operate the depository or provide any of the | ||
depository's services. | ||
(g) Notwithstanding Chapter 2113, Government Code, the | ||
depository may enter into contracts and engage in marketing, the | ||
sale of promotional items, advertising, and other activities to | ||
promote the depository. The comptroller may use appropriated funds | ||
to pay for activities of the depository authorized under this | ||
section. | ||
SECTION 3. Section 2116.003, Government Code, is amended to | ||
read as follows: | ||
Sec. 2116.003. DEPOSITORY ADMINISTRATION; ADMINISTRATOR. | ||
(a) The depository is administered as a program [ |
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office of the comptroller and under the direction and supervision | ||
of a bullion depository administrator appointed by the comptroller | ||
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(b) The administrator shall: | ||
(1) administer, supervise, and direct the operations | ||
and affairs of the depository and liaise with depository agents; | ||
and | ||
(2) liaise with the comptroller and other divisions of | ||
the office of the comptroller to ensure that each transaction with | ||
the depository that involves state money, that involves an agency, | ||
a political subdivision, or another instrumentality of this state, | ||
or that involves a private person is planned, administered, and | ||
executed in a manner to achieve the purposes of this chapter. | ||
(c) The administrator may appoint, subject to the approval | ||
of the comptroller, a deputy administrator or other subordinate | ||
officer or staff member as necessary and appropriate to the | ||
efficient administration of the depository. The depository may | ||
contract with the comptroller's office to provide staff support. | ||
(d) The administrator, the deputy administrator or another | ||
subordinate officer, or a staff member of the depository is not | ||
personally liable in the person's private capacity for any act | ||
performed or for any contract or other obligation entered into or | ||
undertaken in an official capacity in good faith and without intent | ||
to defraud in connection with the administration, management, or | ||
conduct of the depository, its business, or other related affairs. | ||
SECTION 4. The heading to Section 2116.009, Government | ||
Code, is amended to read as follows: | ||
Sec. 2116.009. ACCOUNT BALANCES [ |
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SECTION 5. Section 2116.009, Government Code, is amended by | ||
amending Subsection (b) and adding Subsections (b-1), (b-2), (b-3), | ||
and (b-4) to read as follows: | ||
(b) The depository shall furnish depository account holders | ||
with [ |
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passbook, whether in physical, digital, or electronic form [ |
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(b-1) The depository account holder is responsible for: | ||
(1) promptly examining each account statement | ||
received from the depository; and | ||
(2) reporting any discrepancy in the account statement | ||
to the depository not later than the 60th day after the depository | ||
sent the account statement. | ||
(b-2) The depository may establish a process to resolve any | ||
disputed depository account balance. | ||
(b-3) If the depository account holder fails to report any | ||
account balance discrepancy reflected on the account balance | ||
statement or passbook to the depository within 60 days of the date | ||
the depository sent the statement or passbook, then: | ||
(1) the depository account holder will be deemed to | ||
have accepted the account statement or passbook as accurate; | ||
(2) the depository account holder may not dispute the | ||
account balance; and | ||
(3) the depository shall deem the depository account | ||
statement or passbook as accurate and undisputed by the depository | ||
account holder. | ||
(b-4) The comptroller may adopt rules to implement this | ||
section. | ||
SECTION 6. Section 2116.010, Government Code, is amended to | ||
read as follows: | ||
Sec. 2116.010. FEES; SERVICE CHARGES; PAYMENTS; PENALTIES. | ||
(a) The comptroller [ |
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and penalties to be charged a depository account holder for a | ||
service or activity regarding a depository account, including a fee | ||
for an overdraft, an insufficient fund check or draft, or a stop | ||
payment order. | ||
(b) The comptroller may establish other charges and receive | ||
payments in the course of depository operations and activities, | ||
including from transactions and relationships authorized by | ||
Section 2116.021. | ||
(c) The comptroller shall deposit revenue realized by the | ||
depository under this section to the credit of the general revenue | ||
fund. | ||
(d) Money credited to the general revenue fund under this | ||
section may be appropriated to the comptroller to offset the costs | ||
of implementation, administration, promotion, marketing, | ||
advertising, and operation of the depository. | ||
SECTION 7. Section 2116.021, Government Code, is amended to | ||
read as follows: | ||
Sec. 2116.021. TRANSACTIONS AND RELATIONSHIPS. The | ||
depository may [ |
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with bullion banks, depositories, dealers, central banks, an IRS | ||
approved bank or non-bank acting as custodian for Individual | ||
Retirement Accounts, sovereign wealth funds, financial | ||
institutions, international nongovernmental organizations, | ||
intermediaries, and other persons, located inside or outside of | ||
this state or inside or outside of the United States, as the | ||
comptroller determines to be prudent and suitable to facilitate the | ||
operations of the depository and to further the purposes of this | ||
chapter. | ||
SECTION 8. Section 2116.023, Government Code, is amended by | ||
amending Subsection (c) and adding Subsection (d) to read as | ||
follows: | ||
(c) On receipt of notice of any transaction described by | ||
Subsection (a), with respect to all or any portion of the balance of | ||
a depository account, the depository shall suspend withdrawal | ||
privileges associated with the balances of the depository account | ||
until suitable substitute arrangements may be effected in | ||
accordance with the representation of the depository by the | ||
attorney general and rules of the comptroller to enable the | ||
registered account holder to take delivery of the precious metals | ||
represented by the account balances in question. A voluntary | ||
transfer of a depository account balance or of a depository account | ||
among depository account holders may continue to take place | ||
unaffected by the suspension, and the depository shall recognize | ||
the transfer to the full extent authorized by this chapter, the | ||
representation of the depository by the attorney general, and rules | ||
adopted under this chapter. | ||
(d) On receipt of notice of any transaction described by | ||
Subsection (a), the depository shall refer the notice to the | ||
attorney general for representation, and the attorney general shall | ||
represent the depository in any action related to the notice. | ||
SECTION 9. Subchapter A, Chapter 2116, Government Code, is | ||
amended by adding Sections 2116.027 and 2116.028 to read as | ||
follows: | ||
Sec. 2116.027. CONFIDENTIALITY OF RECORDS. (a) Except as | ||
otherwise provided by Section 2116.028 and this section, the | ||
depository's records are subject to public inspection to the extent | ||
authorized by Chapter 552. | ||
(b) The following information is confidential and is exempt | ||
from disclosure under Chapter 552: | ||
(1) records and information related to the | ||
depository's physical security, information security, or designed | ||
to ensure the integrity and security of the depository including | ||
without limitation access codes, passwords, signatures, | ||
specifications, technical details, operating procedures, | ||
locations, and financial information on expenditures for | ||
depository security; | ||
(2) records relating to individual accounts or to | ||
current or prospective depository account holders that are in the | ||
custody of the depository or in the custody of a vendor performing | ||
services related to the depository; | ||
(3) records related to setting depository fees, | ||
service charges, penalties, or other charges or payments; | ||
(4) records related to establishing standards under | ||
Sections 2116.005(c) and (d); and | ||
(5) operational or other information that would give | ||
advantage to competitors or bidders. | ||
(c) Notwithstanding Subsection (b)(2), depository account | ||
information may be disclosed: | ||
(1) to a depository account holder regarding the | ||
depository account holder's account; | ||
(2) to a state or federal agency as necessary to | ||
administer the program or as required by applicable law; | ||
(3) to a vendor providing services to the depository | ||
or to a current or prospective depository account holder; | ||
(4) in response to a subpoena issued under applicable | ||
law; | ||
(5) if compiled as collective information that does | ||
not include any identifying information about a person; or | ||
(6) with the express written permission of a | ||
depository account holder. | ||
Sec. 2116.028. INTELLECTUAL PROPERTY. (a) The depository | ||
may: | ||
(1) apply for, register, secure, hold, and protect | ||
under the laws of the United States or any state or nation: | ||
(A) a patent for the invention, discovery, or | ||
improvement of any process, machine, manufacture, or composition of | ||
matter; | ||
(B) a copyright for an original work of | ||
authorship fixed in any tangible medium of expression, known or | ||
later developed, from which it can be perceived, reproduced, or | ||
otherwise communicated, either directly or with the aid of a | ||
machine or device; | ||
(C) a trademark, service mark, collective mark, | ||
or certification mark for a word, name, symbol, device, or slogan | ||
that the depository uses to identify and distinguish the | ||
depository's goods and services from other goods and services; or | ||
(D) other evidence of protection or exclusivity | ||
issued for intellectual property; | ||
(2) contract with a person for the reproduction, | ||
public performance, display, distribution, advertising, sale, | ||
lease, marketing, licensing, sale, use, or other distribution of | ||
the depository's intellectual property; | ||
(3) obtain under a contract described in Subdivision | ||
(2) a royalty, license right, or other appropriate means of | ||
securing reasonable compensation for the exercise of the | ||
depository's intellectual property rights; and | ||
(4) waive or reduce the amount of compensation secured | ||
by contract under Subdivision (3) if the depository determines that | ||
the waiver or reduction will: | ||
(A) further a goal or mission of the depository; | ||
and | ||
(B) result in a net benefit to the depository. | ||
(b) Intellectual property of the depository is excepted | ||
from required disclosure under Chapter 552: | ||
(1) beginning on the date the depository decides to | ||
seek a patent, trademark, service mark, collective mark, | ||
certification mark, or other evidence of protection of exclusivity | ||
concerning the property; and | ||
(2) ending on the date the depository receives a | ||
decision on the depository's application for a patent, trademark, | ||
service mark, collective mark, certification mark, or other | ||
evidence of protection of exclusivity concerning the property. | ||
(c) The comptroller shall deposit revenue realized by the | ||
depository under this section to the credit of the general revenue | ||
fund. | ||
(d) Money credited to the general revenue fund under this | ||
section may be appropriated to the comptroller to offset the costs | ||
of implementation, administration, promotion, marketing, | ||
advertising, and operation of the depository. | ||
(e) The comptroller may establish intellectual property | ||
policies. | ||
SECTION 10. Section 2116.051, Government Code, is amended | ||
to read as follows: | ||
Sec. 2116.051. USE OF DEPOSITORY AGENTS. The depository | ||
shall use private, independently managed firms and institutions | ||
licensed as depository agents as intermediaries to conduct retail | ||
transactions in bullion and specie on behalf of [ |
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SECTION 11. Section 2116.052, Government Code, is amended | ||
to read as follows: | ||
Sec. 2116.052. ELECTRONIC INFORMATION SHARING SYSTEMS AND | ||
PROCESSES. A [ |
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agent shall [ |
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electronic information sharing and communication with the | ||
comptroller and the depository to ensure that all transactions | ||
effected on behalf of current and prospective [ |
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account holders are reported to and integrated into the | ||
depository's records not later than 11:59:59 p.m. on the date of | ||
each transaction. | ||
SECTION 12. Section 151.002(b)(9-c), Finance Code, is | ||
amended to read as follows: | ||
(9-c) "Depository agent services" means services | ||
rendered [ |
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prospective depository account holders of the Texas Bullion | ||
Depository in the nature of purchasing, selling, transferring, | ||
accepting, transporting, delivering, or otherwise dealing in | ||
precious metals bullion or specie in connection with the creation, | ||
transfer, clearing, settlement, or liquidation of the rights and | ||
interests of a depository account holder and a direct or indirect | ||
transferee of a depository account holder, as those terms are | ||
defined by Subchapter J. The term "depository agent services" does | ||
not include: | ||
(A) participation as a party or counterparty to a | ||
transaction, including an agreement with respect to a transaction, | ||
in or in connection with a contract for the purchase or sale of a | ||
person's rights and interests as a depository account holder, as a | ||
cash contract for present delivery, a cash contract for deferred | ||
shipment or delivery, or a contract for future delivery, where the | ||
underlying deliverable consists of the depository account holder's | ||
interest in the depository account, rather than the underlying | ||
precious metal represented by the depository account balance; | ||
(B) the opening, transfer, settlement, or | ||
liquidation of any derivative of a contract described by Paragraph | ||
(A), including a forward transaction, swap transaction, currency | ||
transaction, future transaction, index transaction, or option on or | ||
other derivative of a transaction of any of those types, in the | ||
nature of a cap transaction, floor transaction, collar transaction, | ||
repurchase transaction, reverse repurchase transaction, | ||
buy-and-sell-back transaction, securities lending transaction, or | ||
other financial instrument or interest, including an option with | ||
respect to a transaction, or any combination of these transactions; | ||
or | ||
(C) the rendition of services exclusively in | ||
support of the opening, transfer, settlement, or liquidation of | ||
transaction derivatives described by Paragraph (B) through a | ||
central counterparty, such as those customarily rendered by a | ||
clearinghouse, clearing association, or clearing corporation, or | ||
through an interbank payment system, physical or electronic trading | ||
facility, broker or brokerage firm, or similar entity, facility, | ||
system, or organization. | ||
SECTION 13. Section 151.858, Finance Code, is amended to | ||
read as follows: | ||
Sec. 151.858. LIABILITY OF LICENSE HOLDER. A depository | ||
agent license holder is liable for the delivery to or for the | ||
depository account of [ |
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prospective depository account holder [ |
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of all bullion, specie, and money payable or deliverable in | ||
connection with the transactions in which the license holder | ||
engages on behalf of the current or prospective depositor who is | ||
entitled to depository agent services. | ||
SECTION 14. Sections 2116.009(a), (c), (d), (e), and (f), | ||
Government Code, are repealed. | ||
SECTION 15. If, on or before September 1, 2017,the | ||
Comptroller has not appointed the bullion depository administrator | ||
required by Section 2116.002, as amended by this Act, all rights, | ||
duties, powers, obligations, and other requirements established by | ||
this Act and Chapter 1000 (H.B. 483), General Laws, Acts of the 84th | ||
Legislature, Regular Session, 2015, are transferred to the General | ||
Land Office. | ||
SECTION 16. 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, 2017. |