CHAPTER 404. STATE TREASURY OPERATIONS OF COMPTROLLER
GOVERNMENT CODE
TITLE 4. EXECUTIVE BRANCH
SUBTITLE A. EXECUTIVE OFFICERS
CHAPTER 404. STATE TREASURY OPERATIONS OF COMPTROLLER
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 404.001. DEFINITIONS. In this chapter:
(1) Repealed by Acts 1997, 75th Leg., ch. 891, Sec. 3.22(2),
eff. Sept. 1, 1997.
(2) "Demand deposit" means a deposit that is payable on demand.
(3) "Direct security repurchase agreement" means an agreement
under which the state buys, holds for a specified time, and then
sells back any of the following securities, obligations, or
participation certificates:
(A) United States government securities;
(B) direct obligations of or obligations the principal and
interest of which are guaranteed by the United States; or
(C) direct obligations of or obligations guaranteed by agencies
or instrumentalities of the United States government.
(4) "Market value" means the fair and reasonable prevailing
price at which a security is being sold on the open market at the
time of the appraisement of the security by the comptroller.
(5) "Reverse security repurchase agreement" means an agreement
under which the state sells and after a specified time buys back
any of the securities, obligations, or participation certificates
listed in Paragraphs (A) through (C), Subdivision (3).
(6) "State depository" means an institution designated as a
state depository under Subchapter C.
(7) "Time deposit" means a deposit for which there is in force a
contract providing that neither the whole nor a part of the
deposit may be withdrawn by check or otherwise before the
expiration of the period of notice that must be given in writing
in advance of a withdrawal.
(8) "Treasury" means state funds subject to the custody and
control of the comptroller and available for appropriation by the
legislature.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 4, Sec. 2.05(a), eff. Sept.
1, 1989; Acts 1989, 71st Leg., ch. 78, Sec. 1, eff. May 11, 1989;
Acts 1993, 73rd Leg., ch. 939, Sec. 1, eff. Aug. 30, 1993; Acts
1997, 75th Leg., ch. 891, Sec. 3.22(2), eff. Sept. 1, 1997; Acts
1997, 75th Leg., ch. 1423, Sec. 7.27, eff. Sept. 1, 1997.
Sec. 404.0011. TRANSFER OF TREASURER'S POWERS AND DUTIES. (a)
The powers and duties of the state treasurer under this chapter
or other law are transferred to the comptroller.
(b) A reference in law to the state treasurer is a reference to
the comptroller.
(c) If the state treasurer and the comptroller or their
respective designees are both ex officio members of a committee
or governing body under law, the transfer of the powers and
duties under this section does not give the comptroller more than
one vote or position on the committee or governing body. If the
state treasurer and the comptroller both have the power to
appoint members to a committee under law, the transfer of the
powers and duties under this section does not allow the
comptroller to exercise the power of appointment given to the
treasurer under law in addition to the power of appointment given
to the comptroller under law. If the state treasurer and the
comptroller both have the power to appoint members to a governing
body under law, the comptroller may exercise the power of
appointment given to the treasurer under law in addition to the
power of appointment given to the comptroller under law only if
the members of the governing body serve six-year terms and the
composition of the governing body is subject to Section 30a,
Article XVI, Texas Constitution.
(d) The comptroller may contract with a private entity to
perform an activity transferred under this section as long as the
activity is not solely a sovereign function of the state.
Added by Acts 1995, 74th Leg., ch. 992, Sec. 1, eff. Sept. 1,
1996.
SUBCHAPTER B. STATE DEPOSITORY BOARD
Sec. 404.013. RULES. The comptroller may adopt and enforce
rules governing the establishment and conduct of state
depositories and the investment of state funds in the
depositories that the public interest requires and that are not
inconsistent with the law governing the depositories.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1993, 73rd Leg., ch. 939, Sec. 2, eff. Aug. 30,
1993; Acts 1997, 75th Leg., ch. 891, Sec. 3.03, eff. Sept. 1,
1997.
SUBCHAPTER C. STATE DEPOSITORIES AND INVESTMENT OF STATE FUNDS
Sec. 404.021. ELIGIBLE INSTITUTIONS. (a) Any state or national
bank doing business in the state may be designated by the
comptroller as a state depository. Designation of a bank as a
depository includes all of the bank's branches within the state.
(b) Any savings and loan association doing business in the state
may be designated by the comptroller as a state depository.
(c) Any state or federal credit union doing business in the
state may be designated by the comptroller as a state depository.
(d) Deposits of eligible institutions designated as state
depositories must be covered by the Federal Deposit Insurance
Corporation or the National Credit Union Share Insurance Fund.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 78, Sec. 2, eff. May 11,
1989; Acts 1995, 74th Leg., ch. 426, Sec. 1, eff. June 9, 1995;
Acts 1997, 75th Leg., ch. 891, Sec. 3.04, eff. Sept. 1, 1997.
Sec. 404.0211. CONFLICT OF INTEREST. A bank is not disqualified
from serving as a depository for funds of a state agency if:
(1) an officer or employee of the agency who does not have the
duty to select the agency's depository is an officer, director,
or shareholder of the bank; or
(2) one or more officers or employees of the agency who have the
duty to select the agency's depository are officers or directors
of the bank or own or have a beneficial interest, individually or
collectively, in 10 percent or less of the outstanding capital
stock of the bank, if:
(A) a majority of the members of the board, commission, or other
body of the agency vote to select the bank as a depository; and
(B) the interested officer or employee does not vote or take
part in the proceedings.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 19, eff. Sept. 1,
1993.
Sec. 404.0212. DEPOSITORY RATING UNDER CERTAIN FEDERAL LAW. (a)
In this section, "regulated financial institution" has the
meaning assigned by 12 U.S.C. Section 2902.
(b) A regulated financial institution that accepts a deposit
from the comptroller shall report to the comptroller the rating
assigned to the financial institution under 12 U.S.C. Section
2906.
(c) A regulated financial institution shall make a report
required by this section:
(1) annually, not later than August 1 of each year; and
(2) not later than the 30th day after the date the financial
institution is notified that the assigned rating has been
changed.
(d) The comptroller may not select as a depository a regulated
financial institution for which the entire institution has been
assigned a rating below "outstanding record of meeting community
credit needs" or "satisfactory record of meeting community credit
needs" under 12 U.S.C. Section 2906. However, the comptroller
shall establish criteria to determine whether a financial
institution doing business in this state and other states has a
satisfactory record of meeting community credit needs in this
state.
(e) On receipt of notice that the rating of a financial
institution is changed to a rating below that required by this
section, the comptroller shall take immediate action to transfer
all state funds subject to the custody or control of the
comptroller that are on deposit with the institution to a
qualified financial institution.
(f) The depository contract between a regulated financial
institution and the comptroller must authorize the withdrawal
without penalty of the state funds subject to the custody or
control of the comptroller that are on deposit with the
institution if the rating of the institution is changed to a
rating below that required by Subsection (d).
Added by Acts 1995, 74th Leg., ch. 426, Sec. 2, eff. June 9,
1995. Amended by Acts 1997, 75th Leg., ch. 891, Sec. 3.05, eff.
Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 7.29, eff.
Sept. 1, 1997; Acts 1999, 76th Leg., ch. 847, Sec. 1, eff. Sept.
1, 1999.
Sec. 404.022. APPLICATIONS. (a) The comptroller, not later
than the first business day in June of each odd-numbered year,
shall mail to each eligible institution a letter stating the
conditions with which applicants for designation as a state
depository must comply. The comptroller shall keep on file in the
comptroller's office and make available for inspection by any
person a list of institutions to which letters have been sent.
(b) The application for designation as a state depository must
include a statement:
(1) of the amount of the applicant's paid capital stock and
permanent surplus, if any;
(2) of the maximum amount of state time deposits the applicant
will accept;
(3) of the applicant's condition according to the most recent
financial statement on the date the application is submitted; and
(4) that the books and accounts of the institution, if it is
designated as a state depository, will be open at all times for
inspection by the comptroller or a representative of the
comptroller.
(c) An application shall be mailed to the comptroller at Austin
and must be received before noon on the first business day of
August of the year in which the letter is sent. An application
received after that time may be considered at the option of the
comptroller. The comptroller may charge a processing fee of $25
for each application and shall deposit the fees to the credit of
the general revenue fund.
(d) On receipt of an application under this section, the
comptroller shall endorse on the application the date of its
receipt. The comptroller shall prepare a list of the names of the
applicants and the amount for which each has applied.
(e) The comptroller may approve those applicants that are
acceptable and may reject those whose management or condition, in
the opinion of the comptroller, does not warrant the placing of
state funds in their possession.
(f) The designation as a state depository is effective for a
period of not more than two years.
(g) As soon as practicable after the comptroller has made its
designations, the comptroller shall inform applicants whether
they have been designated as state depositories.
(h) The comptroller may execute a simplified version of a
depository agreement with an eligible institution desiring to
hold $98,000 or less in state deposits that are fully insured by
the Federal Deposit Insurance Corporation or the National Credit
Union Share Insurance Fund.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 426, Sec. 3, eff. June 9,
1995; Acts 1997, 75th Leg., ch. 891, Sec. 3.06, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, Sec. 7.30, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 847, Sec. 2, eff. Sept. 1, 1999.
Sec. 404.0221. ELIGIBLE COLLATERAL. (a) In this section,
"public agency" means a board, authority, agency, department,
commission, political subdivision, municipal corporation,
district, public corporation, body politic, instrumentality of
this state, or any other type of political or governmental entity
of this state.
(b) For the purposes of Section 404.022, collateral eligible to
be pledged with the comptroller to secure state deposits
includes:
(1) direct obligations of or obligations the principal and
interest of which are guaranteed by the United States government;
(2) direct obligations of or obligations guaranteed by agencies
or instrumentalities of the United States government, including
letters of credit; and
(3) a general or special obligation issued by a public agency
and approved by the attorney general that is payable from taxes,
revenues, or both.
(c) If pledged collateral consists of securities with a
declining principal balance, the market value of the collateral
pledged may not be less than 125 percent of the amount of the
state deposits to be secured.
(d) Eligible collateral includes only:
(1) a security with fixed, stated rates; or
(2) a letter of credit described by Subsection (b)(2) for a
stated amount.
(e) A loss sustained by a depository that has secured its
deposits by collateral may be enforced against the collateral.
(f) The comptroller may reject at any time collateral tendered
by a state depository without assigning a reason for the
rejection, and the comptroller's action is final and not subject
to review.
(g) Collateral is not required for deposits to the extent that
the deposits are insured by the Federal Deposit Insurance
Corporation or the National Credit Union Share Insurance Fund.
Added by Acts 1995, 74th Leg., ch. 426, Sec. 4, eff. June 9,
1995. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 7.31, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 159, Sec. 1, eff. Sept.
1, 2003.
Sec. 404.023. DESIGNATION. The comptroller shall designate one
or more state depository banks that have main offices or branches
in centrally located cities in this state to be used for clearing
checks and other obligations due the state.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1997, 75th Leg., ch. 891, Sec. 3.07, eff. Sept.
1, 1997; Acts 1999, 76th Leg., ch. 344, Sec. 5.003, eff. Sept. 1,
1999; Acts 1999, 76th Leg., ch. 847, Sec. 3, eff. Sept. 1, 1999.
Sec. 404.024. AUTHORIZED INVESTMENTS. (a) The comptroller may
determine and designate the amount of state funds to be deposited
in time deposits in state depositories. The percentage of state
funds to be deposited in state depositories shall be based on the
interest rates available in competing investments, the demand for
funds from Texas banks, and the state's liquidity requirements.
(b) State funds not deposited in state depositories shall be
invested by the comptroller in:
(1) direct security repurchase agreements;
(2) reverse security repurchase agreements;
(3) direct obligations of or obligations the principal and
interest of which are guaranteed by the United States;
(4) direct obligations of or obligations guaranteed by agencies
or instrumentalities of the United States government;
(5) bankers' acceptances that:
(A) are eligible for purchase by the Federal Reserve System;
(B) do not exceed 270 days to maturity; and
(C) are issued by a bank whose other comparable short-term
obligations are rated in the highest short-term rating category,
within which there may be subcategories or gradations indicating
relative standing, including such subcategories or gradations as
"rating category" or "rated," by a nationally recognized
statistical rating organization, as defined by Rule 2a-7 (17
C.F.R. Section 270.2a-7), promulgated under the Investment
Company Act of 1940 by the Securities and Exchange Commission;
(6) commercial paper that:
(A) does not exceed 270 days to maturity; and
(B) except as provided by Subsection (i), is issued by an entity
whose other comparable short-term obligations are rated in the
highest short-term rating category by a nationally recognized
statistical rating organization;
(7) contracts written by the treasury in which the treasury
grants the purchaser the right to purchase securities in the
treasury's marketable securities portfolio at a specified price
over a specified period and for which the treasury is paid a fee
and specifically prohibits naked-option or uncovered option
trading;
(8) direct obligations of or obligations guaranteed by the
Inter-American Development Bank, the International Bank for
Reconstruction and Development (the World Bank), the African
Development Bank, the Asian Development Bank, and the
International Finance Corporation that have received the highest
long-term rating categories for debt obligations by a nationally
recognized statistical rating organization;
(9) bonds issued, assumed, or guaranteed by the State of Israel;
(10) obligations of a state or an agency, county, city, or other
political subdivision of a state;
(11) mutual funds secured by obligations that are described by
Subdivisions (1) through (6) or by obligations consistent with
Rule 2a-7 (17 C.F.R. Section 270.2a-7), promulgated by the
Securities and Exchange Commission, including pooled funds:
(A) established by the Texas Treasury Safekeeping Trust Company;
(B) operated like a mutual fund; and
(C) with portfolios consisting only of dollar-denominated
securities;
(12) foreign currency for the sole purpose of facilitating
investment by state agencies that have the authority to invest in
foreign securities;
(13) asset-backed securities, as defined by the Securities and
Exchange Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7),
that are rated at least A or its equivalent by a nationally
recognized statistical rating organization and that have a
weighted-average maturity of five years or less; and
(14) corporate debt obligations that are rated at least A or its
equivalent by a nationally recognized statistical rating
organization and mature in five years or less from the date on
which the obligations were "acquired," as defined by the
Securities and Exchange Commission in Rule 2a-7 (17 C.F.R.
Section 270.2a-7).
(c) Investments in direct security repurchase agreements and
reverse security repurchase agreements may be made with state or
national banks doing business in this state or with primary
dealers as approved by the Federal Reserve System.
Notwithstanding any other law, the term of any reverse security
repurchase agreement may not exceed 90 days after the date the
reverse security repurchase agreement is delivered. Money
received under the terms of a reverse security repurchase
agreement may be used to acquire additional authorized
investments, but the term of the authorized investments acquired
must mature not later than the expiration date stated in the
reverse security repurchase agreement.
(d) The comptroller may contract with a depository for the
payment of interest on time or demand deposits at a rate not to
exceed a rate that is lawful under an Act of Congress and rules
and regulations of the board of governors of the Federal Reserve
System, the board of directors of the Federal Deposit Insurance
Corporation, the National Credit Union Administration Board, and
the Federal Home Loan Banking Board.
(e) The treasury may not purchase any of the following types of
investments:
(1) obligations the payment of which represents the coupon
payments on the outstanding principal balance of the underlying
mortgage-backed security collateral and pays no principal;
(2) obligations the payment of which represents the principal
stream of cash flow from the underlying mortgage-backed security
collateral and bears no interest;
(3) collateralized mortgage obligations that have a stated final
maturity date of greater than 10 years; and
(4) collateralized mortgage obligations the interest rate of
which is determined by an index that adjusts opposite to the
changes in a market index.
(f) The comptroller by rule may define derivative investments
other than those described by Subsection (e). The treasury may
not purchase investments defined by rule adopted under this
subsection in an amount that at the time of purchase will cause
the aggregate value of the investments to exceed five percent of
the treasury's total investments.
(g) To the extent practicable, the comptroller shall give first
consideration to banks that maintain main offices or branch
offices in this state when investing in direct security
repurchase agreements.
(h) The comptroller may not use state funds to invest in or
purchase obligations of a private corporation or other private
business entity doing business in Northern Ireland unless the
corporation or other entity:
(1) adheres to fair employment practices; and
(2) does not discriminate on the basis of race, color, religion,
sex, national origin, or disability.
(i) Notwithstanding Subsection (b)(6)(B), the comptroller may
purchase commercial paper with a rating lower than the rating
required by that paragraph to provide liquidity for commercial
paper issued by the comptroller or an agency of the state.
(j) If the comptroller is required by law to invest funds other
than as provided by this section, and if other law does not
establish a conflicting standard governing that investment, the
comptroller shall invest those funds under the restrictions and
procedures for making the investments that persons of ordinary
prudence, discretion, and intelligence, exercising the judgment
and care under the prevailing circumstances, would follow in the
management of their own affairs, not in regard to speculation but
in regard to the permanent disposition of their funds,
considering the probable income as well as the probable safety of
their capital.
(k) The comptroller may contract with private professional
investment managers to assist the comptroller in investing funds
under the care, custody, and control of the comptroller.
(l) The comptroller may lend securities under procedures
established by the comptroller. The procedures must be
consistent with industry practice and must include a requirement
to fully secure the loan with cash, obligations described by
Subsections (b)(1)-(6), or a combination of cash and the
described obligations. Notwithstanding any law to the contrary,
cash may be reinvested in the items permitted under Subsection
(b) or mutual funds, as defined by the Securities and Exchange
Commission in Rule 2a-7 (17 C.F.R. Section 270.2a-7).
(m) In entering into a direct security repurchase agreement or a
reverse security repurchase agreement, the comptroller may agree
to accept cash on an overnight basis in lieu of the securities,
obligations, or participation certificates identified in Section
404.001(3). Cash held by the state under this subsection is not a
deposit of state or public funds for purposes of any statute,
including this subchapter or Subchapter D, that requires a
deposit of state or public funds to be collateralized by eligible
securities.
(n) Notwithstanding any other law to the contrary, any
government investment pool created to function as a money market
mutual fund and managed by the comptroller or the Texas Treasury
Safekeeping Trust Company may invest the funds it receives in
investments that are "eligible securities," as defined by the
Securities and Exchange Commission in Rule 2a-7 (17 C.F.R.
Section 270.2a-7), if it maintains a dollar-weighted average
portfolio maturity of 90 days or less, with the maturity of each
portfolio security calculated in accordance with Rule 2a-7 (17
C.F.R. Section 270.2a-7), and meets the diversification
requirements of Rule 2a-7.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 53, Sec. 2.005,
eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 4, Sec. 2.06(a),
eff. Sept. 1, 1989; Acts 1989, 71st Leg., ch. 78, Sec. 3, eff.
May 11, 1989; Acts 1991, 72nd Leg., ch. 408, Sec. 2, eff. Aug.
26, 1991; Acts 1993, 73rd Leg., ch. 858, Sec. 2, eff. June 18,
1993; Acts 1993, 73rd Leg., ch. 939, Sec. 3, eff. Aug. 30, 1993;
Acts 1995, 74th Leg., ch. 265, Sec. 1, eff. Aug. 28, 1995; Acts
1995, 74th Leg., ch. 426, Sec. 5, eff. June 9, 1995; Acts 1997,
75th Leg., ch. 891, Sec. 3.08, eff. Sept. 1, 1997; Acts 1997,
75th Leg., ch. 1311, Sec. 4, eff. Sept. 1, 1997; Acts 1997, 75th
Leg., ch. 1423, Sec. 7.32, eff. Sept. 1, 1997; Acts 1999, 76th
Leg., ch. 62, Sec. 8.05, eff. Sept. 1, 1999; Acts 1999, 76th
Leg., ch. 344, Sec. 5.004, eff. Sept. 1, 1999; Acts 1999, 76th
Leg., ch. 847, Sec. 4, eff. Sept. 1, 1999; Acts 2003, 78th Leg.,
ch. 1310, Sec. 25, eff. June 20, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
834, Sec. 5, eff. September 1, 2007.
Sec. 404.0245. CRUDE OIL AND NATURAL GAS FUTURES CONTRACTS. (a)
In this section, "hedging" means the buying and selling of crude
oil and natural gas commodity futures or options on crude oil and
natural gas commodity futures as a protection against loss due to
price fluctuations. Hedging at all times shall comply with
Commodity Futures Trading Commission regulations.
(b) Subject to the limitations of Subsection (c), the
comptroller may determine and designate the amount of state funds
that shall be invested by the comptroller in hedging transactions
in crude oil and natural gas futures contracts and options on
crude oil and natural gas futures contracts that are traded on an
established exchange regulated by the Securities and Exchange
Commission or the Commodity Futures Trading Commission.
(c) The principal amount of state funds invested and outstanding
in hedging transactions on any one day may not exceed $500,000
with a maximum risk of loss of $5,000,000 in a biennium. The
total principal amount of state funds that may be invested by the
comptroller in hedging transactions during any one biennium may
not exceed the amount of money credited to the unclaimed money
fund for that biennium and attributable to the remittance of
mineral proceeds under Chapter 75, Property Code. Any premium
incurred in connection with hedging transactions may be paid only
from funds appropriated for that purpose.
(d) The comptroller shall invest state funds in crude oil and
natural gas futures contracts or options on crude oil and natural
gas futures contracts under the restrictions and procedures for
making investments that persons of ordinary prudence, discretion,
and intelligence, exercising the judgment and care under the
circumstances then prevailing, would follow in the management of
their own affairs, not in regard to speculation but in regard to
the permanent disposition of their funds, considering the
probable income as well as the probable safety of their capital.
The investments may be made only for hedging purposes.
(e), (f) Repealed by Acts 1995, 74th Leg., ch. 426, Sec. 32, eff.
June 9, 1995.
Added by Acts 1991, 72nd Leg., ch. 871, Sec. 1, eff. June 16,
1991. Amended by Acts 1993, 73rd Leg., ch. 939, Sec. 4, eff. Aug.
30, 1993; Acts 1995, 74th Leg., ch. 426, Sec. 6, 32, eff. June 9,
1995; Acts 1997, 75th Leg., ch. 891, Sec. 3.09, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, Sec. 7.33, eff. Sept. 1,
1997.
Sec. 404.026. ELEEMOSYNARY FUNDS. The comptroller may invest
the permanent funds of the Texas School for the Blind and
Visually Impaired, Texas School for the Deaf, Austin State
Hospital, and Corsicana State Home and may invest other permanent
funds, the investment of which is not otherwise provided for,
that have $1,000 or more on deposit with the comptroller that are
not invested. The comptroller shall invest the funds in the same
classes of bonds as are authorized for investment of the
permanent school fund.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 247, Sec. 15, eff. June 14,
1989; Acts 1997, 75th Leg., ch. 891, Sec. 3.10, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, Sec. 7.34, eff. Sept. 1,
1997.
Sec. 404.027. LIQUIDITY. (a) The comptroller may enter into
credit agreements or other similar agreements to provide
liquidity for obligations issued for governmental purposes by an
agency of the state if the agreements do not conflict with the
liquidity needs of the treasury. An agency may enter into a
credit agreement with the comptroller on the issuance of
obligations or at a later date as agreed to by the comptroller
and the agency.
(b) The comptroller may charge reasonable costs to provide
services under this section.
(c) In this section:
(1) "Credit agreement" has the meaning assigned by Section
1371.001.
(2) "Obligations" include commercial paper, variable rate demand
obligations, and "public securities" as defined by Section
1201.002.
Added by Acts 1993, 73rd Leg., ch. 939, Sec. 5, eff. Aug. 30,
1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 7.35, eff.
Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1420, Sec. 8.230, eff.
Sept. 1, 2001.
Sec. 404.028. INVESTMENT ADVISORY BOARD. (a) The comptroller
shall establish an investment advisory board to advise the
comptroller regarding investments that the comptroller makes
under this subchapter or other law. For purposes of this section,
the deposit of state funds in a state depository is not
considered an investment.
(b) The comptroller shall appoint members to the advisory board
who possess the expertise appropriate for advising the
comptroller with regard to one or more types of investments that
the comptroller may make.
(c) The comptroller shall determine the number of members of the
advisory board. A member serves on the advisory board at the will
of the comptroller.
(d) Chapter 2110 does not apply to the size, composition, or
duration of the advisory board.
Added by Acts 2001, 77th Leg., ch. 282, Sec. 1, eff. Sept. 1,
2001.
SUBCHAPTER D. COLLATERAL, DEPOSITS, AND WITHDRAWALS
Sec. 404.031. COLLATERAL REQUIREMENTS. (a) The comptroller may
deposit state funds with a depository only if the depository has
pledged with the comptroller eligible investment securities
acceptable to the comptroller in an amount not less than the
amount of deposits to be secured. The comptroller shall determine
the market value of securities pledged to secure state funds for
the purpose of determining the adequacy of the amount of
collateral. The comptroller's valuation of the securities is
final and not subject to review.
(b) If the market value of the securities pledged by a
depository becomes less than the amount of funds on deposit in
the depository, the comptroller shall require that additional
collateral be pledged immediately or deposits reduced. If the
collateral pledged by a state depository is in excess of the
amount required by this chapter, the comptroller may permit the
release of the excess collateral. If the balance of state funds
in a state depository is increased, the depository shall increase
the collateral for the deposits to the amount required by this
chapter.
(c) A state depository may substitute one group of eligible
securities for another group of securities pledged with the
comptroller.
(d) Except as provided by Subsections (e) and (f), a state
depository shall deposit any pledged securities with the
comptroller. The comptroller shall give the depository a receipt
for the securities and place them in the vaults of the treasury.
(e) Instead of depositing pledged securities with the
comptroller, a depository may deposit them with a custodian. The
custodian may be the (i) Texas Treasury Safekeeping Trust
Company, (ii) a state or national bank that has a capital stock
and permanent surplus of not less than $5 million, is a state
depository, and has been designated as a custodian by the
comptroller, or (iii) a financial institution authorized to
exercise fiduciary powers that has a capital stock and permanent
surplus of not less than $5 million, has its main office, branch
office, or a trust office in this state, and has been designated
as a custodian by the comptroller. For purposes of this
subsection, "financial institution" has the meaning assigned by
Section 201.101(1), Finance Code. The comptroller may designate
those custodial applicants that are acceptable and may reject
those whose management or condition, in the opinion of the
comptroller, do not warrant the placing of securities pledged by
state depositories. The comptroller may adopt and enforce rules
governing the designation and conduct of custodians with respect
to the acceptance and holding of securities pledged by state
depositories that the public interest requires and that are not
inconsistent with the law governing custodians as set forth in
this chapter. The state depository and the custodian of
securities pledged by that state depository may not be the same
bank or be owned by the same bank holding company. The
securities shall be held in trust by the custodian to secure
funds deposited by the comptroller in the state depository
pledging the securities. On receipt of the securities, the
custodian shall immediately, by book entry or otherwise, identify
on its books and records the pledge of the securities and shall
promptly issue and deliver to the comptroller controlled trust
receipts for the securities pledged. The security evidenced by
the trust receipts is subject to inspection by the comptroller at
any time. The depository pledging the securities shall pay the
charges, if any, of the custodian bank for accepting and holding
the securities. The custodian, acting alone or through a
permitted institution, is for all purposes under state law and
notwithstanding Chapters 8 and 9, Business & Commerce Code,
the bailee or agent of the comptroller. The security interest
arising out of a pledge of securities to secure deposits of the
state is created, attaches, and is perfected for all purposes
under state law from the time the custodian identifies the pledge
of the securities on its books and records and issues the trust
receipts. The security interest remains perfected as of that
time in the hands of all subsequent custodians and permitted
institutions.
(f) Instead of depositing pledged securities with the
comptroller, a state depository may deposit pledged securities
with a Federal Reserve Bank or a Federal Home Loan Bank. The
securities shall be held by the bank to secure funds deposited by
the comptroller in the state depository pledging the securities.
When the pledged securities are deposited, the bank may apply
book entry to the securities. The records of the bank shall at
all times reflect the name of the state depository depositing the
pledged securities, and the bank shall issue an advice of
transaction to the comptroller and the state depository pledging
the securities.
(g) In this section, "permitted institution" means a Federal
Reserve Bank, a Federal Home Loan Bank, a "clearing corporation"
as defined by Section 8.102, Business & Commerce Code, the
Texas Treasury Safekeeping Trust Company, a state depository, and
any state or nationally chartered bank or trust company that is
controlled by a bank holding company that controls a state
depository. Neither the state depository that pledges the
securities nor any bank that is controlled by a bank holding
company that controls that state depository may be the permitted
institution with respect to the particular securities pledged by
that state depository. A custodian holding in trust securities of
a state depository under Subsections (e) and (f) may deposit the
pledged securities with a permitted institution if the permitted
institution is the third party to the transaction. The securities
shall be held by the permitted institution to secure funds
deposited by the comptroller in the state depository pledging the
securities. On receipt of the securities, the permitted
institution shall immediately issue to the custodian an advice of
transaction or other document evidencing the deposit of the
securities. When the pledged securities held by a custodian are
deposited, the permitted institution may apply book entry
procedures to the securities. The records of the permitted
institution shall at all times reflect the name of the custodian
depositing the pledged securities. The custodian shall
immediately issue and deliver to the comptroller controlled trust
receipts for the pledged securities. The trust receipts shall
indicate that the custodian has deposited with the permitted
institution the pledged securities held in trust for the state
depository pledging the securities. A legal action or proceeding
brought by or against the state, arising out of or in connection
with the duties of the state depository, the custodian, or other
permitted institution under this subchapter must be brought and
maintained in state district court in Travis County. In this
section, "control" and "bank holding company" have the meanings
assigned by Section 31.002(a), Finance Code.
(h) On request of the owner or owners, the comptroller or
custodian bank may surrender interest coupons or other evidence
of interest on securities deposited by state depositories, when
the interest is due, if the securities are sufficient to meet the
collateral requirements of the state.
(i) A state depository making deposits of securities with the
comptroller may cause the securities to be endorsed or stamped,
as it considers proper, to show that they are deposited as
collateral and not transferable except as provided by this
chapter.
(j) If a state depository fails to credit a deposit or part of a
deposit made by the comptroller, the comptroller may immediately
sell or otherwise convert the securities to money.
(k) Repealed by Acts 1997, 75th Leg., ch. 891, Sec. 3.22(3),
eff. Sept. 1, 1997.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 78, Sec. 4, eff. May 11,
1989; Acts 1993, 73rd Leg., ch. 945, Sec. 1, eff. Aug. 30, 1993;
Acts 1995, 74th Leg., ch. 426, Sec. 8, 9, eff. June 9, 1995; Acts
1997, 75th Leg., ch. 891, Sec. 3.22(3), eff. Sept. 1, 1997; Acts
1997, 75th Leg., ch. 1423, Sec. 7.36, eff. Sept. 1, 1997; Acts
1999, 76th Leg., ch. 62, Sec. 7.58, eff. Sept. 1, 1999; Acts
1999, 76th Leg., ch. 344, Sec. 5.005, eff. Sept. 1, 1999; Acts
1999, 76th Leg., ch. 847, Sec. 5, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
486, Sec. 2, eff. September 1, 2009.
Sec. 404.032. DEPOSITS. (a) The comptroller shall deposit
state funds in depositories that satisfy the collateral
requirements of this chapter. The comptroller may deposit funds
designated as demand deposits only in institutions designated as
depositories by the comptroller.
(b) The comptroller shall monitor the financial stability of
state depositories in which state deposits are held and take
appropriate action to protect state funds.
(c) A state depository shall collect all checks, drafts, and
demands for money deposited with it by the comptroller. If the
depository uses due diligence, it is not liable for the
collections until the proceeds of the collections are duly
received by the depository bank. An expense incurred in
collection that the depository is not permitted to pay by reason
of an Act of Congress or a rule or regulation adopted under such
an Act by the board of governors of the Federal Reserve System or
the board of directors of the Federal Deposit Insurance
Corporation shall be charged to and paid by the comptroller out
of money appropriated by the legislature for that purpose.
(d) The comptroller shall keep sufficient money on deposit in
demand deposit accounts in depositories designated by the
comptroller as clearing institutions to meet all current claims
on the state. Items received by the comptroller for collection
shall be deposited with a clearing institution to be credited to
the demand deposit account in the depository. Checks, drafts, or
warrants drawn by the comptroller for the payment of obligations
due by the state may be drawn on such an account in such a
depository or on the demand deposit account in another state
depository so that the checks, drafts, or warrants of the state
may at all times pass current as cash.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1993, 73rd Leg., ch. 939, Sec. 6, eff. Aug. 30,
1993; Acts 1995, 74th Leg., ch. 426, Sec. 10, 11, eff. June 9,
1995; Acts 1997, 75th Leg., ch. 891, Sec. 3.11, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, Sec. 7.37, eff. Sept. 1,
1997.
Sec. 404.033. WITHDRAWALS AND REMITTANCES. (a) Funds on
deposit with a depository are subject to withdrawal at any time
by the comptroller, except funds designated as time deposits,
which may be withdrawn in the manner agreed on in the contract
under which the funds were deposited. The depository shall remit
the withdrawal on demand and free of charge, except charges that
the depository is not permitted to pay by reason of an Act of
Congress or a rule or regulation adopted under such an Act by the
board of governors of the Federal Reserve System or the board of
directors of the Federal Deposit Insurance Corporation.
(b) A remittance to the comptroller by a state depository or
another person may be made by any method authorized by the
comptroller, including cash, money order, or bank draft. The
liability of the depository or other person making the remittance
continues until the money is received by the comptroller. A
depository that refuses to make a remittance required by this
chapter forfeits its right to receive further deposits, on order
of the comptroller. The comptroller may withdraw all funds from
the depository, which after the withdrawal ceases to be a state
depository.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1997, 75th Leg., ch. 891, Sec. 3.12, eff. Sept.
1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 7.38, eff. Sept. 1,
1997.
SUBCHAPTER E. GENERAL DUTIES
Sec. 404.041. TRUSTEE. The comptroller is the trustee of funds
in the treasury.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 7.39, eff. Sept.
1, 1997.
Sec. 404.043. SECURITY OFFICERS. The comptroller may employ
security officers to provide needed security services for the
treasury and may commission the officers as peace officers.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 426, Sec. 12, eff. June 9,
1995; Acts 1997, 75th Leg., ch. 1423, Sec. 7.41, eff. Sept. 1,
1997; Acts 2003, 78th Leg., ch. 285, Sec. 13, eff. Sept. 1, 2003.
Sec. 404.045. RECEIPT OF MONEY. The comptroller shall receive
all money paid into the treasury in accordance with the
procedures required by Section 403.052.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 19, eff. Sept. 1,
1989; Acts 1997, 75th Leg., ch. 1423, Sec. 7.43, eff. Sept. 1,
1997.
Sec. 404.046. PAYMENT FROM TREASURY. The comptroller shall pay
warrants the comptroller draws on the treasury that are
authorized by law. Except as provided by Section 403.0271, money
may not be paid out of the treasury except on a warrant drawn or
an electronic funds transfer initiated by the comptroller. A
warrant may not be paid by the comptroller unless presented for
payment to a financial institution or the comptroller before two
years after the close of the fiscal year in which the warrant was
issued. Claims for the payment of warrants presented after that
time may be presented to the legislature for appropriations from
which the claims may be paid.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 78, Sec. 5, eff. May 11,
1989; Acts 1997, 75th Leg., ch. 1423, Sec. 7.44, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 1467, Sec. 1.20, eff. June 19,
1999.
Sec. 404.047. ACCOUNTS. The comptroller shall keep accounts of
the receipt and expenditure of the money in the treasury and
close the accounts on August 31 of each year. The comptroller
shall keep proper records, distinguishing between the receipts
and disbursements of each fiscal year.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 426, Sec. 13, eff. June 9,
1995; Acts 1997, 75th Leg., ch. 1423, Sec. 7.45, eff. Sept. 1,
1997.
Sec. 404.048. REPORT. In addition to the reports required by
the constitution, the comptroller shall, as required by the
governor, submit a statement of the balance of money remaining in
the treasury and a summary of the receipts and disbursements
recorded by the treasury. The comptroller shall exhibit all
books, papers, and records on request by the legislature or a
branch or committee of the legislature.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 426, Sec. 14, eff. June 9,
1995; Acts 1997, 75th Leg., ch. 1423, Sec. 7.46, eff. Sept. 1,
1997.
Sec. 404.049. MONEY IN TREASURY. Money received by the
comptroller as trustee of funds in the treasury shall be kept in
the treasury. The comptroller may not keep or receive into the
treasury money, or the representative of money, belonging to an
individual except as provided by law. The comptroller may not
appropriate to the comptroller's own use or lend, sell, or
exchange money, or the representative of money, in the
comptroller's custody or control.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 7.47, eff. Sept.
1, 1997.
Sec. 404.050. DELIVERY TO SUCCESSOR. The comptroller shall, at
the close of the term of office, deliver into the possession of
the successor comptroller the money, securities, and all other
property of the state in the comptroller's possession and the
books, vouchers, papers, evidences of property, and all other
matters and things pertaining to the office.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 7.48, eff. Sept.
1, 1997.
Sec. 404.051. MONEY RETURNED TO COUNTY OR MUNICIPALITY. If
money is in the treasury for the purpose of paying an obligation
due from a county or municipality and the comptroller finds from
certified copies of the records of the commissioners court or by
other satisfactory evidence that the obligation is no longer
outstanding against the county or municipality, the comptroller
shall draw a warrant on the treasury in favor of the county or
municipality for that amount of money and shall pay the money to
the treasurer of the county or municipality for the benefit of
its general fund.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 7.49, eff. Sept.
1, 1997.
Sec. 404.052. OBLIGATIONS OF MUNICIPALITIES, DISTRICTS, AND
POLITICAL SUBDIVISIONS. (a) A bond, warrant, or other evidence
of indebtedness issued by a municipality, district, or political
subdivision of this state and any interest, at the discretion of
the municipality, district, or political subdivision may be
payable at the office of the comptroller. The comptroller serves
as ex officio treasurer and fiscal agent of the municipality,
district, or political subdivision for the purposes of receiving
funds for the payment of the obligation and interest, making
payment of the obligation and interest, and for all other
purposes designated by this chapter or necessary or incidental to
the service.
(b) The comptroller shall deposit money received by the
comptroller under this section and shall keep a separate account
for each municipality, district, or political subdivision. The
payment of interest and principal due on an obligation of the
municipality, district, or political subdivision must be on
deposit with the comptroller not later than five business days
before the date of maturity. Any charges incurred for late
receipt of funds shall be assessed to the municipality, district,
or political subdivision. On receipt of those amounts by the
comptroller, the comptroller shall issue a warrant for the
payment of amounts due.
(c) On return of the obligation, the treasurer of the
municipality, district, or political subdivision shall record the
payment and cancellation.
(d) The comptroller shall collect for the use of the state from
the municipality, district, or political subdivision a fee in an
amount established by rule of the comptroller that is sufficient
to pay the comptroller's cost of administration. The treasurer of
the municipality, district, or political subdivision, at the time
of the remittance for the payment of the maturing obligation or
interest, shall remit the fee to the comptroller as ex officio
treasurer of the municipality, district, or political
subdivision. On receipt of the fee, the comptroller shall deposit
it to the appropriate fund. The amount of the fees earned, or as
much as necessary, is reserved to the comptroller to be used in
the administration of this chapter. Any balance remaining at the
end of a fiscal year is available for use in the next fiscal
year.
(e) It is the general intent of this section to provide an
inexpensive and feasible means for the payment of bonds and
interest coupons issued by municipalities, districts, and
political subdivisions in the state at the office of the
comptroller, and this section shall be broadly construed to carry
out that intent. An official or a municipality, district, or
political subdivision concerned with the administration of this
section shall perform the acts and duties necessary or
appropriate to facilitate and expedite the operation of this
section to the end that bonds and interest may be promptly paid
and the payment clearly evidenced and accounted for.
(f) The comptroller shall cancel and return to the municipality,
district, or political subdivision depositing funds for the
payment of interest coupons or the retirement of bonds the
coupons and bonds that have matured or been retired by purchase,
together with a statement of the account of the municipality,
district, or subdivision showing the amounts received and placed
to its credit, service charges, and amount of coupons or bonds
retired. At the request of the municipality, district, or
political subdivision, the comptroller shall remit to the
municipality, district, or subdivision any balance remaining in
custody of the comptroller for more than two years for which
bonds or coupons have not been presented for payment. The
municipality, district, or political subdivision shall pay these
coupons or bonds when presented. A municipality, district, or
political subdivision is entitled at any reasonable time to a
statement of its account with the comptroller.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 426, Sec. 15, eff. June 9,
1995; Acts 1997, 75th Leg., ch. 1423, Sec. 7.50, eff. Sept. 1,
1997.
Sec. 404.054. DAILY TOTALS. The comptroller shall post the
daily totals of deposits to the proper fund and control accounts
in the general ledger. The comptroller shall keep a transit
record, in which the comptroller shall record the essential
details of cash, checks, money orders, drafts, or other items
deposited or cashed each day, showing the items deposited in each
depository bank or otherwise disposed of. The totals of deposits
shall be charged to the accounts of the respective depositories
on the books of the treasury. The comptroller shall keep a
journal of all journal vouchers or other memoranda of transfers
between funds or accounts. Postings shall be made from this
journal to the proper accounts on the books of the treasury.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 21, eff. Sept. 1,
1989; Acts 1997, 75th Leg., ch. 1423, Sec. 7.51, eff. Sept. 1,
1997.
Sec. 404.055. TIME AND DEMAND DEPOSITS. The comptroller shall
maintain records of the daily balances of and the interest income
from funds deposited by the comptroller in time and demand
deposit accounts in each bank acting as a state depository. The
comptroller shall maintain and preserve those records according
to the provisions of Subchapter D, Chapter 441, and of Chapter
552.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(94), eff.
Sept. 1, 1995; Acts 1995, 74th Leg., ch. 426, Sec. 16, eff. June
9, 1995; Acts 1997, 75th Leg., ch. 1423, Sec. 7.52, eff. Sept. 1,
1997.
Sec. 404.056. INFORMATION CONCERNING WARRANTS. (a) The
comptroller shall keep the information on each warrant that is
necessary to enable an adequate audit to be performed.
(b) The comptroller shall keep information on the payment of
each warrant, including the number and amount of each warrant
paid.
(c) The comptroller shall keep detailed information concerning
all canceled warrants.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 22, eff. Sept. 1,
1989; Acts 1997, 75th Leg., ch. 1423, Sec. 7.53, eff. Sept. 1,
1997.
Sec. 404.057. WARRANTS PAYABLE ACCOUNTS. (a) The comptroller
shall keep warrants payable accounts for each fund.
(b) To each account, the comptroller shall credit the daily
totals of warrants issued and charged to each fund so that the
balance of those accounts represents the aggregate amount of
outstanding warrants.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 23, eff. Sept. 1,
1989; Acts 1997, 75th Leg., ch. 1423, Sec. 7.54, eff. Sept. 1,
1997.
Sec. 404.058. OUTSTANDING WARRANTS. (a) The comptroller shall
compile information concerning outstanding warrants, which must
be consistent with the requirements of the uniform statewide
accounting system.
(b) The warrant number of an outstanding warrant is excepted
from the requirements of Section 552.021 if the warrant is issued
by the comptroller.
(c) A person who issues a warrant under Section 403.060(a) may
disclose the warrant number of the warrant to a person other than
the comptroller only if the comptroller has:
(1) informed the person that the warrant is not an outstanding
warrant; or
(2) authorized or required the disclosure.
(d) In this section:
(1) "Outstanding warrant" means any warrant except a warrant
that:
(A) has been paid by the comptroller;
(B) has been canceled; or
(C) may not be paid by the comptroller because it was not
presented before the date determined under Section 404.046 or
other applicable law.
(2) "Warrant number" means the number or other data element
printed on a warrant that the comptroller uses to distinguish it
from all other warrants that the comptroller may pay during the
same period that the comptroller may pay the warrant under
Section 404.046 or other applicable law.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 24, eff. Sept. 1,
1989; Acts 1997, 75th Leg., ch. 1423, Sec. 7.55, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 1158, Sec. 20, eff. June 15,
2001.
Sec. 404.059. GENERAL LEDGER ACCOUNTS. The comptroller shall
charge the daily totals of the warrants to the respective funds
and control accounts in the general ledger to which they apply.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 25, eff. Sept. 1,
1989; Acts 1997, 75th Leg., ch. 1423, Sec. 7.56, eff. Sept. 1,
1997.
Sec. 404.060. PRIORITY OF WARRANTS. Warrants on the treasury
shall be on an equal basis with each other, except that if a
question arises concerning the priority of payment of the
warrants the comptroller shall determine the priority of payment.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 26, eff. Sept. 1,
1989; Acts 1993, 73rd Leg., ch. 679, Sec. 64, eff. Sept. 1, 1993;
Acts 1995, 74th Leg., ch. 426, Sec. 17, eff. June 9, 1995; Acts
1997, 75th Leg., ch. 1423, Sec. 7.57, eff. Sept. 1, 1997.
Sec. 404.062. UNDETERMINED REMITTANCES. (a) This subsection
applies to money the status of which is undetermined or that is
awaiting the time when it can be taken into the treasury. The
money shall be placed with the comptroller and credited to the
suspense account. The comptroller shall maintain information
about the deposit of funds into the suspense account in
accordance with Section 403.052.
(b) When the status of money placed in the suspense account is
determined, the money shall be transferred from the suspense
account by placing the portion of it belonging to the state in
the appropriate fund in the treasury, and the part not belonging
to the state shall be refunded. The refund shall be made either
to the payor of the money or to the payor's estate, assignee,
devisee, or other successor-in-interest.
(c) When a deposit is made, it and any refunds shall be entered
in the suspense cash book, and the balance shall represent the
aggregate of the items still in suspense. Warrants shall be used
for making refunds. The warrants shall be charged against the
suspense funds to which they apply.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 27, eff. Sept. 1,
1989; Acts 1991, 72nd Leg., ch. 641, Sec. 11, eff. Sept. 1, 1991;
Acts 1995, 74th Leg., ch. 426, Sec. 18, eff. June 9, 1995; Acts
1997, 75th Leg., ch. 1423, Sec. 7.58, eff. Sept. 1, 1997.
Sec. 404.063. VIOLATION. A person who knowingly or wilfully
violates this chapter commits an offense. An offense under this
chapter is punishable by a fine of not less than $50 nor more
than $500, by confinement in the county jail for not less than 30
days nor more than six months, or by both a fine and confinement.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Sec. 404.064. OFFICE FEES. The comptroller shall keep records
of the fees earned by the comptroller under this chapter. Those
fees shall be deposited to the appropriate fund in the treasury.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 28, eff. Sept. 1,
1989; Acts 1995, 74th Leg., ch. 426, Sec. 19, eff. June 9, 1995;
Acts 1997, 75th Leg., ch. 1423, Sec. 7.59, eff. Sept. 1, 1997.
Sec. 404.065. CASH BALANCING. The comptroller shall keep
records for the purpose of arriving at the daily cash balance.
The daily totals of receipts and disbursements and the amount of
cash on hand and in depository banks shall be recorded.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1995, 74th Leg., ch. 426, Sec. 20, eff. June 9,
1995; Acts 1997, 75th Leg., ch. 1423, Sec. 7.60, eff. Sept. 1,
1997.
Sec. 404.066. LEDGER. (a) The general ledger kept by the
comptroller shall contain accounts for each fund. Those accounts
shall be credited with the existing balances and the daily totals
of deposits. Warrants issued and electronic funds transfers shall
be charged daily to the fund accounts.
(b) The ledger shall contain control accounts for cash,
depository banks, bonds, interest, securities, warrants payable,
and other necessary accounts. Postings shall be made to the
ledger daily.
(c) The ledger shall be balanced daily.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 207, Sec. 29, eff. Sept. 1,
1989; Acts 1991, 72nd Leg., ch. 641, Sec. 12, eff. Sept. 1, 1991;
Acts 1997, 75th Leg., ch. 1423, Sec. 7.61, eff. Sept. 1, 1997.
Sec. 404.067. SAFEKEEPING; INVESTMENT AGENCIES. (a) The
comptroller shall keep custodial records that shall reflect all
deposits and releases of securities held by the comptroller and
belonging to a state investment agency.
(b) The comptroller shall keep appropriate ledger accounts that
include a short description of each security held in safekeeping
for certain investment agencies of the state.
(c) The comptroller shall keep controlling or total accounts of
securities in the general ledger. Those accounts shall be kept
with respect to the total amount of bonds or other securities
belonging to each separate fund.
(d) Those controlling accounts