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A BILL TO BE ENTITLED
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AN ACT
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relating to the deposit of funds into court registries by the clerks |
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of justice courts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2256.004(a), Government Code, is amended |
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to read as follows: |
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(a) This subchapter does not apply to: |
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(1) a public retirement system as defined by Section |
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802.001; |
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(2) state funds invested as authorized by Section |
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404.024; |
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(3) an institution of higher education having total |
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endowments of at least $150 million in book value on September 1, |
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2017; |
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(4) funds invested by the Veterans' Land Board as |
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authorized by Chapter 161, 162, or 164, Natural Resources Code; |
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(5) registry funds deposited with the clerk of a |
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justice court, the county clerk, or the district clerk under |
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Chapter 117, Local Government Code; or |
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(6) a deferred compensation plan that qualifies under |
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either Section 401(k) or 457 of the Internal Revenue Code of 1986 |
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(26 U.S.C. Section 1 et seq.), as amended. |
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SECTION 2. Section 117.001(2), Local Government Code, is |
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amended to read as follows: |
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(2) "Clerk" means the clerk of a justice court, a |
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county clerk, a district clerk, or a county and district clerk. |
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SECTION 3. Section 117.002, Local Government Code, is |
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amended to read as follows: |
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Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER. |
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Any funds deposited under this chapter, except cash bail bonds, |
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that are presumed abandoned under Chapter 72, 73, or 75, Property |
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Code, shall be reported and delivered by the clerk of a justice |
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court, the county clerk, or the district clerk to the comptroller |
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without further action by any court. The dormancy period for funds |
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deposited under this chapter begins on the later of: |
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(1) the date of entry of final judgment or order of |
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dismissal in the action in which the funds were deposited; |
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(2) the 18th birthday of the minor for whom the funds |
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were deposited; or |
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(3) a reasonable date established by rule by the |
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comptroller to promote the public interest in disposing of |
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unclaimed funds. |
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SECTION 4. Sections 117.021(a) and (d), Local Government |
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Code, are amended to read as follows: |
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(a) The commissioners court of a county shall select by the |
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process provided by this subchapter or by Subchapter C, Chapter |
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262, a federally insured bank or banks in the county to be the |
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depository for a special account held by the clerks of the justice |
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courts, the county clerk, and the district clerks. The county shall |
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enter a contract with the selected federally insured bank or banks |
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for a two-year or four-year term. The original term can be renewed |
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once for an additional two-year term. The contract may, on request |
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by the clerk and approval of the commissioners court, include a |
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provision that the funds in a special account earn interest. A |
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request from the clerk that an account earn interest must be made, |
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in writing, to the commissioners court not later than the 30th day |
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before the date the county gives notice under Section 117.022 and |
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shall be entered in the minutes of the court. |
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(d) A bank must file its application on or before a date set |
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by the commissioners court. The application must be accompanied by |
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a certified check or cashier's check for at least one-half of one |
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percent of the average daily balance of the registry funds held by |
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the clerks of the justice courts, the county clerk, and the district |
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clerk during the preceding calendar year, as determined by the |
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clerks of the justice courts, the county clerk and the district |
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clerk on or before the 10th day before the date the application is |
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required to be filed. A certified check or cashier's check that |
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complies with this section is a good-faith guarantee on the part of |
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the applicant that if its application is accepted it will execute |
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the bond required under this subchapter. If the bank selected as |
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depository does not provide the bond, the county shall retain the |
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amount of the check as liquidated damages and the county shall |
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select another depository as provided by this subchapter. |
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SECTION 5. Section 117.022, Local Government Code, is |
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amended to read as follows: |
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Sec. 117.022. NOTICE. A county shall advertise or give |
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notice that the county will accept applications to be the |
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depository for registry funds held by the clerks of the justice |
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courts, the county clerk, and the district clerk in the same manner |
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as notice is required under Section 116.022. |
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SECTION 6. Section 117.023(a), Local Government Code, is |
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amended to read as follows: |
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(a) At the meeting at which banks are to be selected to serve |
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as the depository for registry funds held by the clerks of the |
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justice courts, the county clerk, and the district clerk, the |
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commissioners court shall enter the applications in the minutes of |
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the court and select a depository. |
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SECTION 7. The heading to Section 117.052, Local Government |
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Code, is amended to read as follows: |
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Sec. 117.052. DEPOSITS OF REGISTRY FUNDS BY [COUNTY AND |
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DISTRICT] CLERKS. |
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SECTION 8. Section 117.052(a), Local Government Code, is |
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amended to read as follows: |
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(a) If a depository has been selected under Subchapter B, |
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the clerk of a justice court, a county clerk, or a district clerk |
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who is to have for more than three days legal custody of money |
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deposited in the registry of the court pending the result of a legal |
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proceeding shall deposit the money in the depository. |
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SECTION 9. Section 117.053(a), Local Government Code, is |
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amended to read as follows: |
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(a) If a commissioners court selects a new depository under |
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Subchapter B, when the depository qualifies, the clerks of the |
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justice courts, the county clerk, and the district clerk shall |
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transfer the funds in a special account from the old depository to |
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the new depository, and the clerks may draw checks on the accounts |
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for this purpose. |
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SECTION 10. Section 117.056(a), Local Government Code, is |
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amended to read as follows: |
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(a) A depository selected under Subchapter B shall pay a |
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check drawn by a clerk of a justice court, a county clerk, or a |
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district clerk against funds deposited in the clerk's name on |
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presentment of the check at the county seat if the funds subject to |
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the check are in the possession of the depository. |
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SECTION 11. Section 117.057(a), Local Government Code, is |
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amended to read as follows: |
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(a) A commissioners court may require a depository selected |
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under Subchapter B to execute a new bond whenever the |
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commissioners court considers it necessary for the protection of |
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the clerks of the justice courts', the county clerk's, and the |
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district clerk's registry funds. |
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SECTION 12. Section 117.058(b), Local Government Code, is |
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amended to read as follows: |
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(b) If the commissioners court of a county provides a |
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depository for the registry funds of the clerks of the justice |
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courts, the county clerk, or the district clerk, those officers |
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shall make reports under oath to the county auditor to properly |
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reflect all registry funds received and disbursed by the officer, |
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including all money remaining on hand at the time of the report. |
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The county auditor shall prescribe the form and frequency of the |
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report. |
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SECTION 13. Section 117.081, Local Government Code, is |
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amended to read as follows: |
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Sec. 117.081. LIABILITY OF [COUNTY AND DISTRICT] CLERKS. |
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(a) A clerk of a justice court, a county clerk, or a district clerk |
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is not responsible for a loss of registry funds resulting from the |
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failure or negligence of a depository. |
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(b) This section does not release a clerk of a justice |
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court, a county clerk, or a district clerk from: |
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(1) liability for a loss of registry funds resulting |
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from the clerk's official misconduct, negligence, or |
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misappropriation of the funds; or |
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(2) responsibility for keeping the registry funds safe |
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until the clerk deposits them in a depository selected under |
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Subchapter B. |
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(c) After a clerk of a justice court, a county clerk, or a |
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district clerk deposits in a depository selected under Subchapter B |
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the registry funds held by the clerk, the clerk is relieved of the |
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responsibility for keeping the funds secure. |
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SECTION 14. Section 117.083, Local Government Code, is |
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amended to read as follows: |
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Sec. 117.083. LOSS OF REGISTRY FUNDS. If registry funds |
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held by a clerk of a justice court, a county clerk, or a district |
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clerk and deposited by the county with a depository selected under |
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Subchapter B are lost for any reason, including a loss due to the |
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insolvency of the depository, the county is liable to the rightful |
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owner of the funds for the full amount of the funds due the owner. |
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SECTION 15. This Act takes effect September 1, 2023. |