By: Capriglione	H.B. No. 3169

	A BILL TO BE ENTITLED
	AN ACT
	relating to the operation and administration of the Texas Bullion
	Depository, to depository agents, to the appropriation of money
	from the fees, charges, penalties, and other amounts related to the
	depository and deposited to the general revenue fund for that
	purpose, and to the provision of a related ad valorem tax exemption.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 2116.001(4), (9), and (10), Government
	Code, are amended to read as follows:
	(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
	other physical form [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.
	(9)  "Depository agent" means a person licensed in
	accordance with this chapter to serve as an agent on behalf of a
	current or prospective [intermediary between the] depository
	account holder [and a retail customer] in making a retail
	transaction in precious metals bullion or specie.
	(10)  "Precious metal" means a metal, including gold,
	silver, and platinum group metals, including platinum, palladium,
	ruthenium, osmium, iridium, and rhodium, that:
	(A)  bears a high value-to-weight ratio relative
	to common industrial metals; and
	(B)  may be [customarily is] formed into bullion,
	[or] specie, or other physical form.
	SECTION 2.  Section 2116.002, Government Code, is amended by
	amending Subsection (a) and adding Subsections (c) through (i) to
	read as follows:
	(a)  The Texas Bullion Depository is established as a program
	[an agency of this state] in the office of the comptroller to
	provide a bullion depository and services for the public benefit.
	(c)  The depository may establish and operate one or more
	branch locations of the depository. Branch locations of the
	depository are considered to be part of the depository.
	(d)  The depository may enter into contracts, as the
	comptroller determines to be prudent and suitable, to facilitate
	the operations of the depository and further the purposes of this
	chapter.
	(e)  This state and the comptroller may not be held liable
	for the depository or related activities of the depository.  This
	chapter may not be construed as creating financial or other
	responsibilities for the depository to the state or to the
	comptroller.  This state does not pledge the full faith and credit
	of this state for the benefit of the depository.
	(f)  Notwithstanding Chapter 2113, the depository may enter
	into contracts and engage in marketing, the sale of promotional
	items, advertising, and other activities to promote, market, and
	advertise the depository. The comptroller may use appropriated
	funds to pay for activities of the depository authorized under this
	section.
	(g)  Notwithstanding any other provision of law, the
	depository may enter into contracts for the design, manufacture,
	marketing, and distribution of official commemorative items,
	including coins or other items containing precious metal, to
	promote, market, and advertise the depository. The depository shall
	establish the purchase price for any commemorative items. The
	comptroller may use appropriated funds to pay for depository
	activities authorized by this subsection.
	(h)  The depository shall deposit any funds received from the
	sale of commemorative items described by Subsection (g) to the
	credit of the general revenue fund. Money deposited to the general
	revenue fund under this subsection may be appropriated to the
	comptroller to offset the costs of the implementation,
	administration, promotion, marketing, advertising, and operation
	of the depository.
	(i)  The comptroller may adopt rules necessary to implement
	this chapter.
	SECTION 3.  Section 2116.003, Government Code, is amended to
	read as follows:
	Sec. 2116.003.  DEPOSITORY ADMINISTRATION; ADMINISTRATOR.
	(a)  The depository is administered as a program [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 liaise with depository agents;
	and
	(2)  liaise with the comptroller and other divisions of
	the office of the comptroller to ensure that each transaction with
	the depository that involves state money, that involves an agency,
	a political subdivision, or another instrumentality of this state,
	or that involves a private person is planned, administered, and
	executed in a manner to achieve the purposes of this chapter.
	(c)  The administrator may appoint, subject to the approval
	of the comptroller, a deputy administrator or other subordinate
	officer or may employ staff as necessary and appropriate to the
	efficient administration of the depository.
	SECTION 4.  Sections 2116.004(a) and (b), Government Code,
	are amended to read as follows:
	(a)  The following are not available for legislative
	appropriation:
	(1)  a deposit to the depository;
	(2)  precious metal [bullion or specie] held by or on
	behalf of the depository or a depository agent;
	(3)  precious metal [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 precious metal
	[bullion or specie].
	(b)  Precious metal [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.
	SECTION 5.  Section 2116.005, Government Code, is amended by
	amending Subsections (a), (c), and (d) and adding Subsections (a-1)
	and (f) to read as follows:
	(a)  The depository may receive a deposit of precious metal
	[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.
	(a-1)  The comptroller shall develop standards and processes
	for the shipping, handling, and deposit of precious metals to the
	depository to ensure the integrity of and verify any precious
	metals shipped to the depository for deposit.
	(c)  The comptroller [by rule] shall develop [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.
	(f)  A depository agent or other person who is acting on
	behalf of an account holder or who is holding the deposits or funds
	of an account holder may not commingle any deposits or funds
	belonging to the depository agent or other person with the deposits
	or funds of the account holder.
	SECTION 6.  Section 2116.006(b), Government Code, is amended
	to read as follows:
	(b)  The depository shall make a delivery described by
	Subsection (a) on demand by the presentment of a written demand
	[suitable check, draft,] or digital electronic instruction to the
	depository or a depository agent.  The comptroller [by rule] shall
	develop [adopt] the forms, standards, and processes through which
	an order for delivery on demand may be made, presented, and honored.
	SECTION 7.  Section 2116.007, Government Code, is amended to
	read as follows:
	Sec. 2116.007.  TRANSFER OF DEPOSITORY ACCOUNT BALANCE. (a)
	The comptroller shall develop forms, standards, and processes by
	which [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 written demand [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 written demand [check, draft,] or digital electronic [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 may [shall] allow the
	payee to establish a depository account by presentment of the
	payor's written demand [check, draft,] or digital electronic
	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.
	SECTION 8.  Section 2116.008(b), Government Code, is amended
	to read as follows:
	(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.
	SECTION 9.  The heading to Section 2116.009, Government
	Code, is amended to read as follows:
	Sec. 2116.009.  ACCOUNT BALANCES [CAUSE OF ACTION FOR DENIAL
	OF DEPOSIT LIABILITY].
	SECTION 10.  Section 2116.009, Government Code, is amended
	by amending Subsection (b) and adding Subsections (b-1), (b-2),
	and (b-3) to read as follows:
	(b)  The depository shall furnish depository account holders
	with [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].
	(b-1)  The depository account holder is responsible for:
	(1)  promptly examining each account statement
	received from the depository; and
	(2)  giving notice of any discrepancy in the account
	statement to the depository within the time frame established by
	the comptroller.
	(b-2)  If a depository account holder does not report an
	account balance discrepancy reflected on the account holder's
	account statement or passbook in the appropriate time period
	described by Subsection (b-1):
	(1)  the account holder is considered to have accepted
	as accurate the account statement or passbook; and
	(2)  the depository account statement or passbook is
	considered to be accurate.
	(b-3)  For purposes of this section, "account statement"
	means a depository account holder's daily account balance, accessed
	through the Internet website designated by the depository for that
	purpose.
	SECTION 11.  Section 2116.010, Government Code, is amended
	to read as follows:
	Sec. 2116.010.  FEES; SERVICE CHARGES; PAYMENTS; PENALTIES.
	(a)  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.
	(b)  The comptroller may establish other fees and charges and
	receive payments in the course of depository operations and
	activities authorized by this chapter, including from transactions
	and relationships authorized by Section 2116.021.
	(c)  The comptroller shall deposit revenue realized by the
	depository under this section to the credit of the general revenue
	fund.
	(d)  Money credited to the general revenue fund under this
	section may be appropriated to the comptroller to offset the costs
	of implementation, administration, promotion, marketing,
	advertising, and operation of the depository.
	SECTION 12.  Section 2116.013, Government Code, is amended
	to read as follows:
	Sec. 2116.013.  DEPOSITORY ACCOUNTS NOT INTEREST-BEARING.
	The depository may not pay on a depository account or on any funds
	held on behalf of a depository account holder:
	(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.
	SECTION 13.  Subchapter A, Chapter 2116, Government Code, is
	amended by adding Section 2116.0145 to read as follows:
	Sec. 2116.0145.  EXEMPTION FROM CREDITORS' CLAIMS.  (a)
	Deposits of bullion or specie held in the depository in accordance
	with this chapter are exempt from claims of creditors, including
	claims of creditors of a depository account holder or a successor in
	interest of a depository account holder.
	(b)  Except as provided by Subsection (c), the rights of a
	depository account holder in regard to any deposits of bullion or
	specie held in the depository are exempt from attachment, levy,
	garnishment, execution, and seizure for the satisfaction of any
	debt, judgment, or claim against a depository account holder or
	successor in interest of a depository account holder.
	(c)  This section does not apply to the claim of a creditor of
	a depository account holder or a successor in interest of a
	depository account holder for a debt, judgment, lien, or claim,
	including a tax delinquency, asserted by or owed to:
	(1)  the state;
	(2)  a person who has perfected a pledge made under
	Section 2116.014(d); or
	(3)  a person who is owed child support arrearages by
	the depository account holder, reflected in a child support lien
	notice that complies with the requirements of Section 157.313,
	Family Code.
	(d)  The depository may take any necessary and appropriate
	action to effectuate the transfer of a depository account, or all or
	part of a depository account balance, to a creditor with a claim
	described by Subsection (c).
	(e)  This section does not permit a debtor to exempt bullion
	or specie held in a depository account from property of the estate
	in a bankruptcy proceeding.
	SECTION 14.  Section 2116.021, Government Code, is amended
	to read as follows:
	Sec. 2116.021.  TRANSACTIONS AND RELATIONSHIPS.  The
	depository may [shall] enter into transactions and relationships
	with bullion banks, depositories, dealers, central banks, banks
	approved by the Internal Revenue Service or nonbanks acting as
	custodians for individual retirement accounts, sovereign wealth
	funds, financial institutions, precious metals exchanges,
	international nongovernmental organizations, intermediaries, and
	other persons, located inside or outside of this state or inside or
	outside of the United States, as the comptroller determines to be
	prudent and suitable to facilitate the operations of the depository
	and to further the purposes of this chapter.
	SECTION 15.  Section 2116.023, Government Code, is amended
	by amending Subsection (c) and adding Subsection (d) to read as
	follows:
	(c)  On receipt of notice of any transaction described by
	Subsection (a), with respect to all or any portion of the balance of
	a depository account, and on direction of the attorney general, the
	depository shall suspend withdrawal privileges associated with the
	balances of the depository account until suitable substitute
	arrangements may be effected in accordance with the representation
	of the depository by the attorney general and rules of the
	comptroller to enable the registered account holder to take
	delivery of the precious metals represented by the account balances
	in question.  A voluntary transfer of a depository account balance
	or of a depository account among depository account holders may
	continue to take place unaffected by the suspension, and the
	depository shall recognize the transfer to the full extent
	authorized by this chapter, the representation of the depository by
	the attorney general, and rules adopted under this chapter.
	(d)  On receipt of notice of any transaction described by
	Subsection (a), the depository shall refer the notice to the
	attorney general for representation, and the attorney general shall
	represent the depository in any matter described by Subsection (a).
	SECTION 16.  Section 2116.024, Government Code, is amended
	to read as follows:
	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.
	SECTION 17.  Section 2116.025, Government Code, is amended
	to read as follows:
	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.
	SECTION 18.  Subchapter A, Chapter 2116, Government Code, is
	amended by adding Sections 2116.027, 2116.028, and 2116.029 to read
	as follows:
	Sec. 2116.027.  CONFIDENTIALITY OF RECORDS. (a) Except as
	otherwise provided by Section 2116.028 and this section, the
	depository's records are subject to public inspection to the extent
	authorized by Chapter 552.
	(b)  The following information is confidential and is exempt
	from disclosure under Chapter 552:
	(1)  records and information related to the
	depository's physical security, information security, or
	information designed to ensure the integrity and security of the
	depository, including:
	(A)  access codes;
	(B)  passwords;
	(C)  signatures;
	(D)  specifications;
	(E)  technical details;
	(F)  operating procedures;
	(G)  locations; and
	(H)  financial information on expenditures for
	depository security;
	(2)  records relating to individual accounts or to
	current or prospective depository account holders that are in the
	custody of the depository or in the custody of a vendor performing
	services related to the depository;
	(3)  records related to setting depository fees,
	service charges, penalties, or other charges or payments;
	(4)  records related to establishing standards under
	Sections 2116.005(c) and (d); and
	(5)  operational information, or other information,
	that would give advantage to competitors or bidders.
	(c)  Notwithstanding Subsection (b)(2), depository account
	information may be disclosed:
	(1)  to a depository account holder regarding the
	depository account holder's account;
	(2)  to a state or federal agency as necessary to
	administer the program or as required by applicable law;
	(3)  to a vendor providing services to the depository
	or to a current or prospective depository account holder;
	(4)  in response to a subpoena issued under applicable
	law;
	(5)  if compiled as collective information that does
	not include any identifying information about a person; or
	(6)  with the express written permission of a
	depository account holder.
	Sec. 2116.028.  INTELLECTUAL PROPERTY. (a) The depository
	may:
	(1)  apply for, register, secure, hold, and protect
	under the laws of the United States or any state or nation:
	(A)  a patent for the invention, discovery, or
	improvement of any process, machine, manufacture, or composition of
	matter;
	(B)  a copyright for an original work of
	authorship fixed in any tangible medium of expression, known or
	later developed, from which it can be perceived, reproduced, or
	otherwise communicated, either directly or with the aid of a
	machine or device;
	(C)  a trademark, service mark, collective mark,
	or certification mark for a word, name, symbol, device, or slogan
	that the depository uses to identify and distinguish the
	depository's goods and services from other goods and services; or
	(D)  other evidence of protection or exclusivity
	issued for intellectual property;
	(2)  contract with a person for the reproduction,
	public performance, display, distribution, advertising, sale,
	lease, marketing, licensing, sale, use, or other distribution of
	the depository's intellectual property;
	(3)  obtain under a contract described in Subdivision
	(2) a royalty, license right, or other appropriate means of
	securing reasonable compensation for the exercise of the
	depository's intellectual property rights; and
	(4)  waive or reduce the amount of compensation secured
	by contract under Subdivision (3) if the depository determines that
	the waiver or reduction will:
	(A)  further a goal or mission of the depository;
	and
	(B)  result in a net benefit to the depository.
	(b)  Intellectual property of the depository is excepted
	from required disclosure under Chapter 552:
	(1)  beginning on the date the depository decides to
	seek a patent, trademark, service mark, collective mark,
	certification mark, or other evidence of protection of exclusivity
	concerning the property; and
	(2)  ending on the date the depository receives a
	decision on the depository's application for a patent, trademark,
	service mark, collective mark, certification mark, or other
	evidence of protection of exclusivity concerning the property.
	(c)  The comptroller shall deposit to the credit of the
	general revenue fund revenue realized by the depository under this
	section.
	(d)  Money credited to the general revenue fund under this
	section may be appropriated to the comptroller to offset the costs
	of implementation, administration, promotion, marketing,
	advertising, and operation of the depository.
	(e)  The comptroller may establish intellectual property
	policies.
	Sec. 2116.029.  ADVERTISING, SIGNAGE, AND DISCLOSURES BY
	THIRD PARTIES.  (a)  In this section, "third party" means a person
	who is authorized to provide a service relating to the depository,
	including a depository agent, a person who enters into a
	transactional or other relationship with the depository, or a
	person selected to operate or provide services to the depository
	under this chapter.
	(b)  Third party advertising, marketing, promotional or
	written material, or signage created or used for commercial
	purposes related to the depository, in written form or in any other
	form, may not be used until the comptroller has approved its use.
	(c)  The comptroller may require that a third party who
	creates advertising, marketing, promotional or written material,
	or signage created or used for commercial purposes related to the
	depository include certain approved disclosures or identifying
	marks, as the commissioner determines to be appropriate, in the
	entity's advertising, marketing, promotional or written material,
	or signage.
	SECTION 19.  Section 2116.051, Government Code, is amended
	to read as follows:
	Sec. 2116.051.  USE OF DEPOSITORY AGENTS. Current and
	prospective [The] depository account holders may [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.
	SECTION 20.  Section 2116.052, Government Code, is amended
	to read as follows:
	Sec. 2116.052.  ELECTRONIC INFORMATION SHARING SYSTEMS AND
	PROCESSES.  A [The comptroller by rule shall require a] depository
	agent shall [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 current and prospective [the] depository
	account holders are reported to and integrated into the
	depository's records not later than 11:59:59 p.m. on the date of
	each transaction.
	SECTION 21.  Section 151.002(b)(9-c), Finance Code, is
	amended to read as follows:
	(9-c)  "Depository agent services" means services
	rendered [to the general public] for or on behalf of current or
	prospective depository account holders of the Texas Bullion
	Depository in the nature of purchasing, selling, transferring,
	accepting, transporting, delivering, or otherwise dealing in
	precious metals bullion or specie in connection with the creation,
	transfer, clearing, settlement, or liquidation of the rights and
	interests of a depository account holder and a direct or indirect
	transferee of a depository account holder, as those terms are
	defined by Subchapter J.  The term "depository agent services" does
	not include:
	(A)  participation as a party or counterparty to a
	transaction, including an agreement with respect to a transaction,
	in or in connection with a contract for the purchase or sale of a
	person's rights and interests as a depository account holder, as a
	cash contract for present delivery, a cash contract for deferred
	shipment or delivery, or a contract for future delivery, where the
	underlying deliverable consists of the depository account holder's
	interest in the depository account, rather than the underlying
	precious metal represented by the depository account balance;
	(B)  the opening, transfer, settlement, or
	liquidation of any derivative of a contract described by Paragraph
	(A), including a forward transaction, swap transaction, currency
	transaction, future transaction, index transaction, or option on or
	other derivative of a transaction of any of those types, in the
	nature of a cap transaction, floor transaction, collar transaction,
	repurchase transaction, reverse repurchase transaction,
	buy-and-sell-back transaction, securities lending transaction, or
	other financial instrument or interest, including an option with
	respect to a transaction, or any combination of these transactions;
	or
	(C)  the rendition of services exclusively in
	support of the opening, transfer, settlement, or liquidation of
	transaction derivatives described by Paragraph (B) through a
	central counterparty, such as those customarily rendered by a
	clearinghouse, clearing association, or clearing corporation, or
	through an interbank payment system, physical or electronic trading
	facility, broker or brokerage firm, or similar entity, facility,
	system, or organization.
	SECTION 22.  Subchapter J, Chapter 151, Finance Code, is
	amended by adding Section 151.8521 to read as follows:
	Sec. 151.8521.  LICENSE CATEGORIES; EXEMPTIONS FROM
	LICENSING. (a) The commissioner, in consultation with and subject
	to approval by the comptroller, shall create defined categories of
	licenses for depository agents, with specific application
	requirements for each different category of license. The licensing
	categories created under this subsection may be differentiated on
	the basis of the type and value of authorized precious metal
	transactions for a depository agent in each category.
	(b)  Requirements for each category of depository agent
	license created under Subsection (a) may differ on the basis of:
	(1)  capital and security requirements;
	(2)  insurance requirements;
	(3)  type of depository agent services provided;
	(4)  availability of safe and secure storage and
	transport of precious metals;
	(5)  other licensing requirements; or
	(6)  qualifications, as appropriate, to fulfill the
	requirements of Chapter 2116, Government Code.
	(c)  In adopting application requirements for the depository
	agent license categories created by the commissioner under
	Subsection (a), the commissioner shall ensure that the
	requirements, including any licensing fees, enable qualified
	individuals and firms to apply for a license and provide for the
	safety and security of depository account holders and the
	depository.
	(d)  The commissioner, in consultation with and subject to
	the approval of the comptroller, shall determine whether any
	person, transaction, or class of persons is exempt from depository
	agent licensing under Section 151.003(10).
	SECTION 23.  Section 151.853(a), Finance Code, is amended to
	read as follows:
	(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, or as otherwise determined under Section
	151.8521(d).
	SECTION 24.  Section 151.855, Finance Code, is amended to
	read as follows:
	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 and applicable requirements adopted under Section
	151.8521.
	(b)  At the time an application for a depository agent
	license is submitted, an applicant must file with the department
	any fee, information, documentation, or security required as
	provided by Section 151.8521 for the category of license for which
	the person is applying, which may include:
	(1)  an application fee in the amount established by
	commission rule;
	(2)  audited financial statements and other financial
	documentation that is determined to be reliable 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 an [the] amount not to exceed [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; and
	(4)  additional security that may be required by the
	commissioner in the form of permissible investments, additional
	surety, or in any other form considered appropriate to protect
	depository account holders and the depository and to comply with
	applicable regulatory requirements.
	(c)  The commissioner may adopt rules to implement
	Subsection (b)(4).
	SECTION 25.  Section 151.858, Finance Code, is amended to
	read as follows:
	Sec. 151.858.  LIABILITY OF LICENSE HOLDER.  A depository
	agent license holder is liable for the delivery to or for the
	depository account of [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 depositor [depository].
	SECTION 26.  The heading to Section 151.860, Finance Code,
	is amended to read as follows:
	Sec. 151.860.  DISCLOSURE AND OTHER REQUIREMENTS.
	SECTION 27.  Section 151.860, Finance Code, is amended by
	adding Subsections (c), (d), and (e) to read as follows:
	(c)  A depository agent license holder must comply with the
	requirements of Section 2116.029, Government Code.
	(d)  The commissioner, in consultation with the comptroller,
	shall adopt processes and procedures for interactions between a
	depository agent license holder and a depository account holder to
	ensure compliance with this chapter, Chapter 2116, Government Code,
	and other applicable regulatory requirements.
	(e)  A depository agent license holder or other person who is
	acting on behalf of an account holder may not commingle deposits or
	funds belonging to the depository agent or other person with the
	deposits or funds of a depository account holder.
	SECTION 28.  Subchapter B, Chapter 11, Tax Code, is amended
	by adding Section 11.141 to read as follows:
	Sec. 11.141.  PRECIOUS METAL HELD IN TEXAS BULLION
	DEPOSITORY. (a) For purposes of this section, "precious metal" has
	the meaning assigned by Section 2116.001, Government Code.
	(b)  A person is entitled to an exemption from taxation of
	the precious metal that the person owns and that is held in the
	Texas Bullion Depository established under Chapter 2116,
	Government Code, regardless of whether the precious metal is held
	or used by the person for the production of income.
	(c)  Notwithstanding Section 11.14(c), the governing body of
	a taxing unit may not provide for the taxation of precious metal
	exempted from taxation under Subsection (b).
	SECTION 29.  Section 11.42(b), Tax Code, is amended to read
	as follows:
	(b)  An exemption authorized by Section 11.11 or 11.141 is
	effective immediately on qualification for the exemption.
	SECTION 30.  Section 11.43(a), Tax Code, is amended to read
	as follows:
	(a)  To receive an exemption, a person claiming the
	exemption, other than an exemption authorized by Section 11.11,
	11.12, 11.14, 11.141, 11.145, 11.146, 11.15, 11.16, 11.161, or
	11.25 [of this code], must apply for the exemption. To apply for an
	exemption, a person must file an exemption application form with
	the chief appraiser for each appraisal district in which the
	property subject to the claimed exemption has situs.
	SECTION 31.  Sections 2116.009(a), (c), (d), (e), and (f),
	Government Code, are repealed.
	SECTION 32.  (a) Except as provided by Subsection (b) of
	this section:
	(1)  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; and
	(2)  if this Act does not receive the vote necessary for
	immediate effect, this Act takes effect September 1, 2017.
	(b)  Section 11.141, Tax Code, as added by this Act, and
	Sections 11.42(b) and 11.43(a), Tax Code, as amended by this Act,
	take effect January 1, 2018, but only if the constitutional
	amendment proposed by the 85th Legislature, Regular Session, 2017,
	authorizing the legislature to exempt from ad valorem taxation
	precious metal held in the Texas Bullion Depository is approved by
	the voters. If that amendment is not approved by the voters, those
	sections have no effect.