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  By: Capriglione, et al. (Senate Sponsor - Kolkhorst) H.B. No. 483
         (In the Senate - Received from the House May 7, 2015;
  May 11, 2015, read first time and referred to Committee on Business
  and Commerce; May 24, 2015, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 7, Nays 2;
  May 24, 2015, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 483 By:  Creighton
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the establishment and administration of a state bullion
  depository; authorizing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 10, Government Code, is
  amended by adding Chapter 2116 to read as follows:
  CHAPTER 2116. TEXAS BULLION DEPOSITORY
  SUBCHAPTER A. ESTABLISHMENT AND ADMINISTRATION OF TEXAS
  BULLION DEPOSITORY
         Sec. 2116.001.  DEFINITIONS. In this chapter:
               (1)  "Administrator" means the bullion depository
  administrator appointed under Section 2116.003.
               (2)  "Bullion" means precious metals that are formed
  into uniform shapes and quantities such as ingots, bars, or plates,
  with uniform content and purity, as are suitable for or customarily
  used in the purchase, sale, storage, transfer, and delivery of bulk
  or wholesale transactions in precious metals.
               (3)  "Business day" means a day other than a Saturday,
  Sunday, or banking holiday for a bank chartered under the laws of
  this state.
               (4)  "Deposit" means the establishment of an executory
  obligation of the depository to deliver to the order of the person
  establishing with the depository the obligation, on demand, a
  quantity of a specified precious metal, in bullion, specie, or a
  combination of bullion and specie, equal to the quantity of the same
  precious metal delivered by or on behalf of the depositor into the
  custody of:
                     (A)  the depository; or
                     (B)  a depository agent.
               (5)  "Depositor" means a person who makes a deposit.
               (6)  "Depository" means the Texas Bullion Depository
  created by this chapter.
               (7)  "Depository account" means the rights, interests,
  and entitlements established in favor of a depositor with respect
  to a deposit in accordance with this chapter and rules adopted under
  this chapter.
               (8)  "Depository account holder," regarding a
  depository account, means the original depositor or a successor or
  assignee of the depositor respecting the depository account.
               (9)  "Depository agent" means a person licensed in
  accordance with this chapter to serve as an intermediary between
  the depository and a retail customer in making a transaction in
  precious metals bullion or specie.
               (10)  "Precious metal" means a metal, including gold,
  silver, platinum, palladium, and rhodium, that:
                     (A)  bears a high value-to-weight ratio relative
  to common industrial metals; and
                     (B)  customarily is formed into bullion or specie.
               (11)  "Specie" means a precious metal stamped into
  coins of uniform shape, size, design, content, and purity, suitable
  for or customarily used as currency, as a medium of exchange, or as
  the medium for purchase, sale, storage, transfer, or delivery of
  precious metals in retail or wholesale transactions.
         Sec. 2116.002.  TEXAS BULLION DEPOSITORY. (a) The Texas
  Bullion Depository is established as an agency of this state in the
  office of the comptroller.
         (b)  The depository is established to serve as the custodian,
  guardian, and administrator of certain bullion and specie that may
  be transferred to or otherwise acquired by this state or an agency,
  a political subdivision, or another instrumentality of this state.
         Sec. 2116.003.  DEPOSITORY ADMINISTRATION; ADMINISTRATOR.
  (a) The depository is administered as a division of the office of
  the comptroller and under the direction and supervision of a
  bullion depository administrator appointed by the comptroller with
  the advice and consent of the governor, lieutenant governor, and
  senate.
         (b)  The administrator shall:
               (1)  administer, supervise, and direct the operations
  and affairs of the depository and 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 as necessary and appropriate to the efficient
  administration of the depository.
         Sec. 2116.004.  DEPOSITS AND RELATED ASSETS NOT SUBJECT TO
  LEGISLATIVE APPROPRIATION; STATUS OF DEPOSITS AND ALLOCATION OF
  REVENUES. (a) The following are not available for legislative
  appropriation:
               (1)  a deposit to the depository;
               (2)  bullion or specie held by or on behalf of the
  depository or a depository agent;
               (3)  bullion or specie in transit to or from the
  depository or a depository agent; and
               (4)  a receivable or other amount owed to the
  depository in settlement of a transaction in bullion or specie.
         (b)  Bullion, specie, and other assets described by
  Subsection (a) are subject to redemption, liquidation, or transfer
  exclusively to discharge an obligation of the depository to
  depository account holders, depository agents, bullion banks,
  financial institutions, or other intermediaries in accordance with
  this chapter and rules adopted under this chapter.
         (c)  Revenue the depository realizes from fees, charges, or
  other payments received in the course of depository operations
  shall be deposited to the credit of the general revenue fund.
         Sec. 2116.005.  DEPOSITS AND DEPOSITORY ACCOUNTS;
  STANDARDS. (a) The depository may receive a deposit of bullion or
  specie from or on behalf of a person acting in the person's own
  right, as trustee, or in another fiduciary capacity, in accordance
  with rules adopted by the comptroller as appropriate to:
               (1)  ensure compliance with law; and
               (2)  protect the interests of:
                     (A)  the depository;
                     (B)  depository account holders;
                     (C)  this state and the agencies, political
  subdivisions, and instrumentalities of this state; and
                     (D)  the public at large.
         (b)  The depository shall record the amount of precious
  metals a person deposits, regardless of form, in units of troy
  ounces pure, and the records must also specify the type and quantity
  of each precious metal deposited.
         (c)  The comptroller by rule shall adopt standards by which
  the quantities of precious metals deposited are credited to a
  depositor's depository account by reference to the particular form
  in which the metals were deposited, classified by mint,
  denomination, weight, assay mark, or other indicator, as
  applicable. The standards must conform to applicable national and
  international standards of weights and measures.
         (d)  The comptroller by rule may, if the comptroller
  determines that to do so is in the public interest, restrict the
  forms in which deposits of precious metals may be made to those
  forms that conveniently lend themselves to measurement and
  accounting in units of troy ounces and standardized fractions of
  troy ounces.
         (e)  The depository shall adjust each depository account
  balance to reflect additions to or withdrawals or deliveries from
  the account.
         Sec. 2116.006.  DEMAND, PRESENTMENT, WITHDRAWAL, DELIVERY,
  AND SETTLEMENT. (a) The depository shall deliver any precious
  metal held by or on behalf of the depository in bullion, specie, or
  a combination of bullion and specie, on the order of a depository
  account holder in a quantity of that precious metal as is available
  in the depository account holder's depository account.
         (b)  The depository shall make a delivery described by
  Subsection (a) on demand by the presentment of a suitable check,
  draft, or digital electronic instruction to the depository or a
  depository agent. The comptroller by rule shall adopt the forms,
  standards, and processes through which an order for delivery on
  demand may be made, presented, and honored.
         (c)  The depository shall make a delivery at the depository's
  settlement facility designated by the comptroller, shipping to an
  address specified by the account holder or, at the depository's
  discretion, at a facility of a depository agent at which
  presentment is made, not later than five business days after the
  date of presentment.
         Sec. 2116.007.  TRANSFER OF DEPOSITORY ACCOUNT BALANCE. (a)
  In accordance with rules adopted under this chapter, a depository
  account holder may transfer any portion of the balance of the
  holder's depository account by check, draft, or digital electronic
  instruction to another depository account holder or to a person who
  at the time the transfer is initiated is not a depository account
  holder.
         (b)  The depository shall adjust the depository account
  balances of the depository accounts to reflect a transfer
  transaction between depository account holders on presentment of
  the check, draft, or other instruction by reducing the payor's
  depository account balance and increasing the depository account
  balance of the payee accordingly.
         (c)  If a depository account holder transfers to a payee who
  is not a depository account holder any portion of the balance of the
  holder's depository account, the depository shall allow the payee
  to establish a depository account by presentment of the payor's
  check, draft, or instruction to the depository or to a depository
  agent. The depository shall credit a newly established account on
  behalf of the payee and shall debit the payor's account
  accordingly.
         Sec. 2116.008.  DEPOSITORY ACCOUNT CONTRACTS. (a) To
  establish a depository account, a depositor must contract with the
  depository for a depository account. The contract must specify:
               (1)  the terms applicable to the account, including any
  special terms; and
               (2)  the conditions on which withdrawals or deliveries
  with respect to the account may be made.
         (b)  The execution of a contract for a depository account
  described by this section may be made, as prescribed by rules
  adopted under this chapter, by electronic or digital transmission.
         (c)  The depository or a depository agent shall hold the
  contract for a depository account in the records pertaining to the
  account.
         (d)  A contract for a depository account executed by a
  depositor and the depository is considered a contract in writing
  for all purposes, and may be evidenced by one or more agreements,
  deposit receipts, signature cards, amendment notices, or other
  documentation as provided by law.
         (e)  The depository and the depository account holder may
  amend a contract for a depository account by agreement, or the
  depository may amend the deposit contract by mailing a written
  notice of the amendment to the account holder, separately or as an
  enclosure with or part of the account holder's statement of account
  or passbook. In the case of amendment by notice from the
  depository, the notice must include the text and effective date of
  the amendment. The effective date may not be earlier than the 30th
  day after the date the notice is mailed, unless otherwise provided
  by rules adopted under this chapter.
         Sec. 2116.009.  CAUSE OF ACTION FOR DENIAL OF DEPOSIT
  LIABILITY. (a) A cause of action for denial of deposit liability
  on a depository account contract without a maturity date does not
  accrue until the depository has denied liability and given notice
  of the denial to the depository account holder.
         (b)  The depository's act of furnishing an account statement
  or passbook, whether in physical, digital, or electronic form,
  constitutes a denial of liability and the giving of such notice as
  to any amount not shown on the statement or passbook.
         (c)  The depository's sovereign immunity from suit is waived
  for an action brought by a depositor for the denial of deposit
  liability.
         (d)  The depository's liability for a denial of deposit
  liability is limited to the amount on deposit for which liability
  was denied. A depositor may not recover consequential damages,
  exemplary damages, pre- or post-judgment interest, costs, or
  attorney's fees. 
         (e)  A suit authorized by this section must be brought in a
  district court of Travis County.
         (f)  A suit authorized by this section must be brought before
  the expiration of one year after the date the cause of action
  accrues or the suit is barred. 
         Sec. 2116.010.  FEES; SERVICE CHARGES; PENALTIES. The
  comptroller by rule may establish fees, service charges, 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.
         Sec. 2116.011.  DEPOSITORY ACCOUNT OWNERSHIP BY OWNER OF
  RECORD. Unless the depository acknowledges in writing a pledge of a
  depository account, the depository may treat the holder of record
  of the account as the owner of the account for all purposes and
  without regard to a notice to the contrary.
         Sec. 2116.012.  TRANSFER OF DEPOSITORY ACCOUNT. (a) A
  depository account may be transferred on the books of the
  depository only on presentation to the depository of:
               (1)  evidence of transfer satisfactory to the
  depository; and
               (2)  an application for the transfer submitted by the
  person to whom the depository account is to be transferred.
         (b)  A person to whom a depository account is to be
  transferred must accept the transferred account subject to the
  terms of the deposit contract, this chapter, and rules adopted
  under this chapter.
         Sec. 2116.013.  DEPOSITORY ACCOUNTS NOT INTEREST-BEARING.
  The depository may not pay on a depository account:
               (1)  interest;
               (2)  an amount in the nature of interest; or
               (3)  a fee or other payment for the use or forbearance
  of use of money, bullion, specie, or precious metals deposited to a
  depository account.
         Sec. 2116.014.  LIEN ON DEPOSITORY ACCOUNT. (a) Without the
  need of any further agreement or pledge, the depository has a lien
  on each depository account owned by a depository account holder to
  secure any fees, charges, or other obligations owed or that may
  become owed to the depository in connection with any of the
  depository account holder's depository accounts as provided by the
  terms of the depository account holder's applicable depository
  account contract.
         (b)  On default in the payment or in the satisfaction of a
  depository account holder's obligation, the depository, without
  notice to or consent of the depository account holder, may transfer
  on the depository's books all or part of the balance of a depository
  account holder's depository account to the extent necessary to pay
  or satisfy the obligation, as determined by reference to the
  exchange rates applicable at the time of the transfer.
         (c)  The depository by written instrument may waive wholly or
  partly the depository's lien on a depository account.
         (d)  Subject to a lien created as provided by this section,
  the depository shall recognize the lawful pledge to a third party by
  a depository account holder of the depository account holder's
  rights, interests, and entitlements in and to a depository account
  as an intangible asset. On the satisfaction of other requirements
  of law in respect of the perfection and enforcement of a pledge of
  that type, the depository shall take all steps reasonably necessary
  and appropriate to effectuate on the depository's books any
  transfer of a depository account or of all or part of a depository
  account balance to the account of the secured party on the
  successful enforcement of the pledge.
         Sec. 2116.015.  DEPOSITORY ACCOUNT AS LEGAL INVESTMENT. (a)
  The following persons may invest the person's money in a depository
  account by purchasing precious metals and depositing the precious
  metals with the depository or a depository agent:
               (1)  a fiduciary, including an administrator,
  executor, custodian, guardian, or trustee;
               (2)  a political subdivision of this state or an
  instrumentality of this state;
               (3)  a business or nonprofit corporation;
               (4)  a charitable or educational corporation or
  association; or
               (5)  a financial institution, including a bank, savings
  and loan association, or credit union.
         (b)  An investment by an insurance company in a depository
  account is eligible to be applied as a credit against taxes payable
  under Chapters 221 and 222, Insurance Code, in accordance with
  rules adopted by the comptroller after consultation with the
  commissioner of insurance.
         (c)  An investment by a school district in a depository
  account may be made instead of an investment as provided by Section
  45.102, Education Code, and the depository may be used by a district
  instead of a depository bank for the purposes of Subchapter G,
  Chapter 45, Education Code.
         Sec. 2116.016.  APPLICABILITY OF ESTATES CODE. The
  applicable provisions of Chapters 111, 112, and 113, Estates Code,
  govern a depository account.
         Sec. 2116.017.  PLEDGE OF JOINTLY HELD DEPOSITORY ACCOUNT.
  (a) Unless a term of the depository account provides otherwise, a
  person on whose signature precious metals may be withdrawn from a
  depository account that is jointly held in the names of two or more
  persons may, by a signed pledge, pledge and transfer to the
  depository or to a third party all or part of the account.
         (b)  A pledge made as described by Subsection (a) does not
  sever or terminate the joint and survivorship ownership of the
  account, to the extent applicable to the account before the pledge.
         Sec. 2116.018.  DEPOSITORY ACCOUNT HELD BY FIDUCIARY. (a)
  The depository or a depository agent may accept a depository
  account in the name of a fiduciary, including an administrator,
  executor, custodian, guardian, or trustee, for a named beneficiary.
         (b)  A fiduciary may open, add to, or withdraw precious
  metals from an account described by Subsection (a).
         (c)  Except as otherwise provided by law, a payment or
  delivery to a fiduciary or an acquittance signed by the fiduciary to
  whom a payment or delivery is made is a discharge of the depository
  for the payment or delivery.
         (d)  After a person who holds a depository account in a
  fiduciary capacity dies, the depository may pay or deliver to the
  beneficiary of the account the quantity of precious metals
  represented by the balance in the depository account, plus other
  rights relating to the depository account, wholly or partly, if the
  depository has no written notice or order of the probate court of:
               (1)  a revocation or termination of the fiduciary
  relationship; or
               (2)  any other disposition of the beneficial estate.
         (e)  The depository has no further liability for a payment
  made or right delivered under Subsection (d).
         Sec. 2116.019.  DEPOSITORY ACCOUNT HELD IN TRUST;
  UNDISCLOSED TRUST INSTRUMENT. (a) If the depository opens a
  depository account for a person claiming to be the trustee for
  another person and the depository has no other notice of the
  existence or terms of the trust other than a written claim against
  the account:
               (1)  the person claiming to be the trustee, on the
  person's signature, may withdraw precious metals from the account;
  and
               (2)  if the person claiming to be the trustee dies, the
  depository may pay or deliver the quantity of precious metals
  represented by the balance in the account to the person for whom the
  account was opened.
         (b)  The depository has no further liability for a payment or
  delivery made as provided by Subsection (a).
         Sec. 2116.020.  POWER OF ATTORNEY; REVOCATION ON DEATH OR
  INCOMPETENCY. (a) The depository shall recognize the authority of
  an attorney-in-fact authorized in writing by a depository account
  holder to manage or withdraw precious metals from the depository
  account holder's depository account until the depository receives
  written or actual notice of the revocation of that authority.
         (b)  For purposes of this section, written notice of the
  death or adjudication of incompetency of a depository account
  holder is considered to be written notice of revocation of the
  authority of the account holder's attorney-in-fact.
         Sec. 2116.021.  TRANSACTIONS AND RELATIONSHIPS. The
  depository shall enter into transactions and relationships with
  bullion banks, depositories, dealers, central banks, sovereign
  wealth funds, financial institutions, international
  nongovernmental organizations, 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.
         Sec. 2116.022.  CERTAIN ACTIONS PROHIBITED. The depository
  may not take any of the following actions, and any attempt by the
  depository to take any of the following actions is void ab initio
  and of no force or effect:
               (1)  entering into a precious metals leasing,
  sale-leaseback, forward transaction, swap transaction, future
  transaction, index transaction, or option on or other derivative of
  any of those, whether 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
  intended to or having the effect of hedging or leveraging the
  depository's holdings of precious metals, including any option
  with respect to any of these transactions, or any combination of
  these transactions, except that the limitation provided by this
  subdivision does not apply to a transaction entered into to limit
  the depository's exposure to post-signature price risks associated
  with executory agreements to purchase or sell precious metals in
  the ordinary course of depository operations and does not apply to
  policies of insurance purchased to insure against ordinary casualty
  risks such as theft, damage or destruction, loss during shipment,
  or similar risks;
               (2)  crediting the depository account balances of a
  depository account holder, or disposing of any precious metals, if
  to do so would cause the aggregate depository account balances with
  respect to any precious metal represented by all depository
  accounts to exceed the aggregate quantities of such precious metal
  held by or for the benefit of the depository and the depository's
  depository agents;
               (3)  entering into or maintaining a deposit, trust, or
  similar relationship for the custody of precious metals by a third
  party outside this state, directly or indirectly, for the account
  or benefit of the depository if the comptroller by rule establishes
  that:
                     (A)  the custody or intermediary arrangements in
  question do not meet the comptroller's standards of safety,
  security, and liquidity; or
                     (B)  except in those cases where such relationship
  may be incidental to the performance of or preparation for purchase
  and sale transactions with counterparties located outside of this
  state, suitable alternate arrangements for physical custody of the
  precious metals inside this state have been established and are
  available;
               (4)  extending credit to a person, including credit
  secured by a depository account or other assets, except an
  extension of credit incidental to the performance of the functions
  and responsibilities otherwise provided by this chapter; or
               (5)  engaging in a business or activity that, if
  conducted by a private person, would be subject to regulation in
  this state as a banking or savings and loan function.
         Sec. 2116.023.  CONFISCATIONS, REQUISITIONS, SEIZURES, AND
  OTHER ACTIONS VOID. (a) A purported confiscation, requisition,
  seizure, or other attempt to control the ownership, disposition, or
  proceeds of a withdrawal, transfer, liquidation, or settlement of a
  depository account, including the precious metals represented by
  the balance of a depository account, if effected by a governmental
  or quasi-governmental authority other than an authority of this
  state or by a financial institution or other person acting on behalf
  of or pursuant to a directive or authorization issued by a
  governmental or quasi-governmental authority other than an
  authority of this state, in the course of a generalized declaration
  of illegality or emergency relating to the ownership, possession,
  or disposition of one or more precious metals, contracts, or other
  rights to the precious metals or contracts or derivatives of the
  ownership, possession, disposition, contracts, or other rights, is
  void ab initio and of no force or effect.
         (b)  The depository in the case of receiving notice of a
  purported confiscation, requisition, seizure, or other attempt to
  control the ownership, disposition, or proceeds of a withdrawal,
  transfer, liquidation, or settlement of a depository account,
  including the precious metals represented by the balance of a
  depository account, effected by a governmental or
  quasi-governmental authority other than an authority of this state
  or by a financial institution or other person acting on behalf of or
  pursuant to a directive or authorization issued by a governmental
  or quasi-governmental authority other than an authority of this
  state, in the course of a generalized declaration of illegality or
  emergency relating to the ownership, possession, or disposition of
  one or more precious metals, contracts, or other rights to the
  precious metals or contracts or derivatives of the ownership,
  possession, disposition, contracts, or other rights, may not
  recognize the governmental or quasi-governmental authority,
  financial institution, or other person acting as the lawful
  successor of the registered holder of a depository account in
  question.
         (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 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 to the full
  extent authorized by this chapter and rules adopted under this
  chapter.
         Sec. 2116.024.  OFFICIAL EXCHANGE RATES. The comptroller by
  rule shall establish the references by which the official exchange
  rate for pricing precious metals transactions in terms of United
  States dollars or other currency must be established at the time of
  a depository transaction. The comptroller shall establish
  procedures and facilities through which the rates are made
  discoverable at all reasonable times by system participants, both
  on a real-time basis and retrospectively.
         Sec. 2116.025.  FACILITATION OF ACCOUNTING AND REPORTING OF
  TAXABLE GAINS. The comptroller by rule shall establish procedures
  and requirements for the depository and depository agents designed
  to minimize the burden to system participants of accounting for and
  reporting taxable gains and losses arising out of depository
  transactions as denominated in United States dollars or another
  currency.
         Sec. 2116.026.  ANNUAL REPORT. The comptroller shall submit
  to the governor and the legislature a report on the status,
  condition, operations, and prospects for the depository and
  depository participation each year not later than September 30.
  SUBCHAPTER B. DEPOSITORY AGENTS
         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 the depository with
  current and prospective depository account holders.
         Sec. 2116.052.  ELECTRONIC INFORMATION SHARING SYSTEMS AND
  PROCESSES. The comptroller by rule shall require a depository
  agent to maintain suitable systems and processes for electronic
  information sharing and communication with the comptroller and the
  depository to ensure that all transactions effected on behalf of
  the depository are reported to and integrated into the depository's
  records not later than 11:59:59 p.m. on the date of each
  transaction.
         Sec. 2116.053.  PERIODIC REPORTS. A depository agent shall
  submit monthly, quarterly, and annual reports of all depository
  transactions not later than the 15th day of the month following the
  expiration of the period with respect to which such report is
  submitted. The report must contain information and be in a form and
  format as rules of the comptroller require.
         SECTION 2.  Section 151.002(a), Finance Code, is amended to
  read as follows:
         (a)  This section defines general terms that apply to an
  applicant for or holder of a money services license issued under
  this chapter, regardless of whether the license is a money
  transmission license, [or] a currency exchange license, or a
  depository agent license. Additional terms that apply specifically
  to money transmission are defined in Section 151.301. Additional
  terms that apply specifically to currency exchange are defined in
  Section 151.501. Additional terms that apply specifically to
  depository agents are defined in Section 151.851.
         SECTION 3.  Section 151.002(b), Finance Code, is amended by
  adding Subdivisions (9-a), (9-b), and (9-c) and amending
  Subdivisions (11) and (14) to read as follows:
               (9-a)  "Depository agent" has the meaning assigned by
  Section 151.851.
               (9-b)  "Depository agent license" means a license
  issued under Subchapter J.
               (9-c)  "Depository agent services" means services
  rendered to the general public for or on behalf 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.
               (11)  "License holder" means a person that holds a
  money transmission license, [or] a currency exchange license, or a
  depository agent license.
               (14)  "Money services" means money transmission, [or]
  currency exchange, or depository agent services.
         SECTION 4.  Section 151.003, Finance Code, is amended to
  read as follows:
         Sec. 151.003.  EXCLUSIONS. Subject to Subchapter J, the
  [The] following persons are not required to be licensed under this
  chapter:
               (1)  the United States or an instrumentality of the
  United States, including the United States Post Office or a
  contractor acting on behalf of the United States Post Office;
               (2)  a state or an agency, political subdivision, or
  other instrumentality of a state;
               (3)  a federally insured financial institution, as that
  term is defined by Section 201.101, that is organized under the laws
  of this state, another state, or the United States;
               (4)  a foreign bank branch or agency in the United
  States established under the federal International Banking Act of
  1978 (12 U.S.C. Section 3101 et seq.);
               (5)  a person acting as an agent for an entity excluded
  under Subdivision (3) or (4), to the extent of the person's actions
  in that capacity, provided that:
                     (A)  the entity is liable for satisfying the money
  services obligation owed to the purchaser on the person's receipt
  of the purchaser's money; and
                     (B)  the entity and person enter into a written
  contract that appoints the person as the entity's agent and the
  person acts only within the scope of authority conferred by the
  contract;
               (6)  a person that, on behalf of the United States or a
  department, agency, or instrumentality of the United States, or a
  state or county, city, or any other governmental agency or
  political subdivision of a state, provides electronic funds
  transfer services of governmental benefits for a federal, state,
  county, or local governmental agency;
               (7)  a person that acts as an intermediary on behalf of
  and at the direction of a license holder in the process by which the
  license holder, after receiving money or monetary value from a
  purchaser, either directly or through an authorized delegate,
  transmits the money or monetary value to the purchaser's designated
  recipient, provided that the license holder is liable for
  satisfying the obligation owed to the purchaser;
               (8)  an attorney or title company that in connection
  with a real property transaction receives and disburses domestic
  currency or issues an escrow or trust fund check only on behalf of a
  party to the transaction;
               (9)  a person engaged in the business of currency
  transportation who is both a registered motor carrier under Chapter
  643, Transportation Code, and a licensed armored car company or
  courier company under Chapter 1702, Occupations Code, provided that
  the person does not engage in the money transmission or currency
  exchange business or depository agent services business without a
  license issued under this chapter; and
               (10)  any other person, transaction, or class of
  persons or transactions exempted by commission rule or any other
  person or transaction exempted by the commissioner's order on a
  finding that the licensing of the person is not necessary to achieve
  the purposes of this chapter.
         SECTION 5.  Section 151.201, Finance Code, is amended to
  read as follows:
         Sec. 151.201.  SCOPE. This subchapter sets out the general
  qualifications and provisions that apply to a money services
  license, regardless of whether the license is a money transmission
  license, [or] a currency exchange license, or a depository agent
  license. Subchapters D and E set forth the additional
  qualifications and provisions that apply specifically to a money
  transmission license. Subchapter F sets forth the additional
  qualifications and provisions that apply specifically to a currency
  exchange license. Subchapter J sets forth the additional
  qualifications and provisions that apply specifically to a
  depository agent license.
         SECTION 6.  Sections 151.207(a), (b), and (d), Finance Code,
  are amended to read as follows:
         (a)  If a license holder does not continue to meet the
  qualifications or satisfy the requirements that apply to an
  applicant for a new money transmission license, [or] currency
  exchange license, or depository agent license, as applicable, the
  commissioner may suspend or revoke the license holder's license.
         (b)  In addition to complying with Subsection (a), a license
  holder must annually:
               (1)  pay a license fee in an amount established by
  commission rule; and
               (2)  submit a report that is under oath, is in the form
  and medium required by the commissioner, and contains:
                     (A)  if the license is a money transmission
  license or depository agent license, an audited unconsolidated
  financial statement dated as of the last day of the license holder's
  fiscal year that ended in the immediately preceding calendar year;
                     (B)  if the license is a currency exchange
  license, a financial statement, audited or unaudited, dated as of
  the last day of the license holder's fiscal year that ended in the
  immediately preceding calendar year; and
                     (C)  documentation and certification, or any
  other information the commissioner reasonably requires to
  determine the security, net worth, permissible investments, and
  other requirements the license holder must satisfy and whether the
  license holder continues to meet the qualifications and
  requirements for licensure.
         (d)  If the license holder fails to submit the completed
  annual report and pay the annual license fee and any late fee due
  within the time prescribed by Subsection (c)(1), the license
  expires, and the license holder must cease and desist from engaging
  in the business of money transmission, [or] currency exchange, or
  depository agent services, as applicable, as of that date. The
  expiration of a license is not subject to appeal.
         SECTION 7.  Section 151.302(a), Finance Code, is amended to
  read as follows:
         (a)  A person may not engage in the business of money
  transmission or advertise, solicit, or hold itself out as a person
  that engages in the business of money transmission unless the
  person:
               (1)  is licensed under this subchapter;
               (2)  is an authorized delegate of a person licensed
  under this subchapter, appointed by the license holder in
  accordance with Section 151.402;
               (3)  is excluded from licensure under Section 151.003;
  [or]
               (4)  is licensed as a depository agent under Subchapter
  J and only engages in the business of money transmission in
  connection with, and to the extent necessary for, the performance
  of depository agent activities; or
               (5)  has been granted an exemption under Subsection
  (c).
         SECTION 8.  Section 151.502(a), Finance Code, is amended to
  read as follows:
         Sec. 151.502.  LICENSE REQUIRED. (a) A person may not engage
  in the business of currency exchange or advertise, solicit, or hold
  itself out as providing currency exchange unless the person:
               (1)  is licensed under this subchapter;
               (2)  is licensed for money transmission under
  Subchapter D;
               (3)  is an authorized delegate of a person licensed for
  money transmission under Subchapter D;
               (4)  is excluded under Section 151.003; [or]
               (5)  is licensed as a depository agent under Subchapter
  J and only engages in the business of currency exchange in
  connection with, and to the extent necessary for, the performance
  of depository agent activities; or
               (6)  has been granted an exemption under Subsection
  (d).
         SECTION 9.  Section 151.602(a), Finance Code, is amended to
  read as follows:
         (a)  A license holder must prepare, maintain, and preserve
  the following books, accounts, and other records for at least five
  years or another period as may be prescribed by rule of the
  commission:
               (1)  a record of each money transmission transaction,
  [or] currency exchange transaction, or depository agent services
  transaction, as applicable;
               (2)  a general ledger posted in accordance with
  generally accepted accounting principles containing all asset,
  liability, capital, income, and expense accounts, unless directed
  otherwise by the commissioner;
               (3)  bank statements and bank reconciliation records;
               (4)  all records and reports required by applicable
  state and federal law, including the reporting and recordkeeping
  requirements imposed by the Bank Secrecy Act, the USA PATRIOT ACT,
  and Chapter 271, and other federal and state laws pertaining to
  money laundering, drug trafficking, or terrorist funding; and
               (5)  any other records required by commission rule or
  reasonably requested by the commissioner to determine compliance
  with this chapter.
         SECTION 10.  Section 151.603, Finance Code, is amended by
  adding Subsection (c-1) to read as follows:
         (c-1)  A depository agent license holder shall prepare
  written reports and statements as follows:
               (1)  the renewal report required by Section
  151.207(b)(2), including an audited unconsolidated financial
  statement that is dated as of the last day of the license holder's
  fiscal year that ended in the immediately preceding calendar year;
               (2)  a quarterly interim financial statement and report
  regarding the permissible investments required to be maintained
  under applicable rules that reflect the license holder's financial
  condition and permissible investments as of the last day of the
  calendar quarter to which the statement and report relate and that
  are prepared not later than the 45th day after the last day of the
  calendar quarter; and
               (3)  any other report required by commission rule or
  reasonably requested by the commissioner to determine compliance
  with this chapter.
         SECTION 11.  Section 151.604(b), Finance Code, is amended to
  read as follows:
         (b)  A license holder must file a written report with the
  commissioner not later than 24 hours after the license holder knows
  or has reason to know of:
               (1)  the filing of a petition by or against the license
  holder for bankruptcy or reorganization;
               (2)  the filing of a petition by or against the license
  holder for receivership, the commencement of any other judicial or
  administrative proceeding for its dissolution or reorganization,
  or the making of a general assignment for the benefit of the license
  holder's creditors;
               (3)  the institution of a proceeding to revoke or
  suspend the license holder's license, or to enjoin or otherwise
  require the license holder to cease and desist from engaging in an
  activity related to a business activity that, if conducted in this
  state, would be subject to this chapter [money transmission], by a
  state or country in which the license holder engages in business or
  is licensed;
               (4)  the felony indictment or conviction of the license
  holder or a principal of, person in control of,  responsible
  individual of, or authorized delegate of the license holder for an
  offense identified in Section 151.202(e);
               (5)  the cancellation or other impairment of the
  license holder's security; or
               (6)  the inability to meet the license holder's
  transmission obligations under this chapter for a period of 24
  hours or longer.
         SECTION 12.  Chapter 151, Finance Code, is amended by adding
  Subchapter J to read as follows:
  SUBCHAPTER J. DEPOSITORY AGENT LICENSE
         Sec. 151.851.  DEFINITIONS. In this subchapter, "bullion,"
  "deposit," "depository," "depository account," "depository account
  holder," "depository agent," "precious metal," and "specie" have
  the meanings assigned by Section 2116.001, Government Code.
         Sec. 151.852.  APPLICABILITY TO DEPOSITORY AGENT SERVICES.
  (a) Notwithstanding any other provision of this chapter, a money
  service that constitutes both a depository agent service and a
  money transmission service, or both a depository agent service and
  a currency exchange service, for purposes of this chapter
  constitutes a depository agent service only.
         (b)  A depository agent service described by Subsection (a)
  is not subject to a provision of this chapter applicable uniquely to
  money transmission services or currency exchange services.
         (c)  A person who renders a service that constitutes a
  depository agent service, including a depository agent service
  described by Subsection (a), and renders another service that
  constitutes money transmission or currency exchange service only,
  is subject to the requirements of this chapter applicable to each
  type of service rendered.
         Sec. 151.853.  LICENSE REQUIRED. (a) A person may not
  engage in the business of rendering depository agent services or
  advertise, solicit, or hold itself out as a person that engages in
  the business of depository agent services unless the person:
               (1)  is licensed under this subchapter and has received
  the requisite certifications from the comptroller of its
  facilities, systems, processes, and procedures as required by
  Chapter 2116, Government Code, or rules adopted under that chapter;
  or
               (2)  is excluded from licensing requirements under
  Section 151.003.
         (b)  Notwithstanding any other provision of this chapter, a
  person described by Section 151.003(1), (6), (7), (8), or (9) is not
  eligible for a license under this subchapter and may not engage in
  depository agent activities.
         (c)  For purposes of this chapter:
               (1)  a person engages in the business of depository
  agent services if the person renders a depository agent service,
  regardless of whether:
                     (A)  compensation is sought or received for the
  service, directly or indirectly; and
                     (B)  the service is incidental to any other
  business in which the person is primarily engaged; and
               (2)  a person solicits, advertises, or holds the person
  out as a person that engages in the business of depository agent
  services if the person represents that the person will conduct
  depository agent services.
         (d)  Notwithstanding Subsection (c), a person does not
  engage in the business of depository agent services by engaging in a
  transaction for the person's own depository account or for the
  account of another person acting as a fiduciary that would
  constitute depository agent services if conducted for another
  person.
         (e)  A depository agent license holder may engage in
  depository agent services business at one or more locations in this
  state owned directly or indirectly by the license holder under a
  single license.
         Sec. 151.854.  ADDITIONAL QUALIFICATIONS. In addition to
  the general qualifications for licensure set forth in Section
  151.202, an applicant for a depository agent license must
  demonstrate to the satisfaction of the commissioner that:
               (1)  the applicant's financial condition will enable
  the applicant to safely and soundly engage in the business of
  depository agent services; and
               (2)  the applicant does not engage in any activity or
  practice that adversely affects the applicant's safety and
  soundness.
         Sec. 151.855.  APPLICATION AND ACCOMPANYING FEE,
  STATEMENTS, AND SECURITY. (a) An applicant for a depository agent
  license must submit an application in accordance with Section
  151.203.
         (b)  At the time an application for a depository agent
  license is submitted, an applicant must file with the department:
               (1)  an application fee in the amount established by
  commission rule;
               (2)  audited financial statements that are
  satisfactory to the commissioner for purposes of determining
  whether the applicant has the minimum net worth required under
  applicable rules and is likely to maintain the required minimum net
  worth if a license is issued; and
               (3)  security in the amount of $500,000 that meets the
  requirements of applicable rules and an undertaking or agreement
  that the applicant will increase or supplement the security to
  equal the aggregate security required by the commissioner before
  the issuance of the license and the start of operations.
         Sec. 151.856.  INVESTIGATION AND ACTION ON APPLICATION. The
  commissioner shall investigate the applicant and act on the
  application in accordance with Sections 151.204 and 151.205.
         Sec. 151.857.  TEMPORARY LICENSE. (a) The commissioner may
  issue a temporary depository agent license to a person that is
  engaging in depository agent services, but has not obtained a
  license under this subchapter, if the person:
               (1)  certifies in writing that the person qualifies for
  the license and will submit a completed license application not
  later than the 60th day after the date the temporary license is
  issued;
               (2)  submits a recent financial statement acceptable to
  the commissioner that reflects the minimum net worth required under
  applicable regulations;
               (3)  provides security that meets the requirements
  specified by the commissioner, but not less than $500,000;
               (4)  agrees in writing that, until a permanent license
  is issued, the person will engage only in activities being
  conducted at existing locations; and
               (5)  pays the application fee and a nonrefundable
  temporary license fee in the amount established by commission rule.
         (b)  The effective period for a temporary depository agent
  license may not exceed 90 days after the date the license is issued.
  The commissioner may extend the effective period for not more than
  30 days if necessary to complete the processing of a timely filed
  application for which approval is likely.
         Sec. 151.858.  LIABILITY OF LICENSE HOLDER. A depository
  agent license holder is liable for the delivery to or for the
  account of the depository or each depositor, as applicable, of all
  bullion, specie, and money payable or deliverable in connection
  with the transactions in which the license holder engages on behalf
  of the depository.
         Sec. 151.859.  TRUST IMPOSED. (a) A depository agent
  license holder shall hold in trust all cash, bullion, specie, and
  other assets received in the ordinary course of its business until
  the time the delivery obligation is discharged. A trust resulting
  from the depository agent license holder's actions is in favor of
  the persons to whom such delivery obligations are owed.
         (b)  If a depository agent license holder commingles any
  money or other property received for delivery with money or other
  property owned or controlled by the depository agent license
  holder, all commingled money and other property are impressed with
  a trust as provided by this section in an amount equal to the amount
  of money or property received for delivery, less the amount of fees
  paid for the delivery.
         (c)  If the commissioner revokes a depository agent license,
  all money and other property held in trust by the depository agent
  license holder is assigned to the commissioner for the benefit of
  the persons to whom the related delivery obligations are owed.
         (d)  Money or other property of a depository agent license
  holder impressed with a trust under this section may not be
  considered an asset or property of the license holder in the event
  of bankruptcy, receivership, or a claim against the license holder
  unrelated to the license holder's obligations under this chapter.
         Sec. 151.860.  DISCLOSURE REQUIREMENTS. (a) A depository
  agent license holder's name and mailing address or telephone number
  must be provided to the purchaser in connection with each
  depository agent services transaction conducted by the depository
  agent license holder.
         (b)  A depository agent license holder receiving currency or
  an instrument payable in currency for transmission must comply with
  Chapter 278.
         SECTION 13.  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, 2015.
 
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