H.B. No. 1907
1-1 AN ACT
1-2 relating to depositories for county public funds, trust funds, and
1-3 court registry funds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 116.021, Local Government Code, is
1-6 amended to read as follows:
1-7 Sec. 116.021. DEPOSITORY AND SUBDEPOSITORY CONTRACTS.
1-8 (a) The commissioners court of a county at its May <February>
1-9 regular term immediately following each general election for state
1-10 and county officers shall contract with one or more banks in the
1-11 county for the deposit of the county's public funds. The county
1-12 shall contract with a bank under this section for a two-year or
1-13 four-year contract term.
1-14 (b) If the contract is for a four-year term, the contract
1-15 shall allow the bank to establish, on the basis of negotiations
1-16 with the county, new interest rates and financial terms of the
1-17 contract that will take effect during the final two years of the
1-18 four-year contract if:
1-19 (1) the new financial terms do not increase the prices
1-20 to the county by more than 10 percent; and
1-21 (2) the county has the option to choose to use the
1-22 initial variable interest rate option or to change to the new fixed
1-23 or variable interest rate options proposed by the bank <The
2-1 commissioners court at its February regular term not following a
2-2 general election for state and county officers may contract with
2-3 one or more banks in the county for the deposit of the county's
2-4 public funds>.
2-5 (c) If for any reason a county depository is not selected
2-6 under Subsection (a), the commissioners court, at any subsequent
2-7 time after 20 days' notice, may select, by the process described by
2-8 Section 116.024 or by negotiated bid, one or more depositories in
2-9 the same manner as at the regular time.
2-10 SECTION 2. Section 116.022(a), Local Government Code, is
2-11 amended to read as follows:
2-12 (a) Once each week for at least 20 days before the May
2-13 <February> regular term of a commissioners court at which the court
2-14 will make a depository contract, the county judge shall place over
2-15 the judge's name in a newspaper published in the county a notice
2-16 that the commissioners court intends to make the contract. A
2-17 notice shall also be posted at the courthouse door of the county.
2-18 SECTION 3. Section 117.021, Local Government Code, is
2-19 amended to read as follows:
2-20 Sec. 117.021. Applications. (a) The commissioners court of
2-21 a county at its May <February> regular term after a general
2-22 election for state and county officers shall receive an application
2-23 from any bank in the county to be the depository for trust funds
2-24 held by the county and district clerks. The county shall contract
2-25 with a bank under this section for a two-year or four-year contract
3-1 term.
3-2 (b) If the contract is for a four-year term, the contract
3-3 shall allow the bank to establish, on the basis of negotiations
3-4 with the county, new interest rates and financial terms of the
3-5 contract that will take effect during the final two years of the
3-6 four-year contract if:
3-7 (1) the new financial terms do not increase the prices
3-8 to the county by more than 10 percent; and
3-9 (2) the county has the option to choose to use the
3-10 initial variable interest rate option or to change to the new fixed
3-11 or variable interest rate options proposed by the bank.
3-12 (c) <(b)> A bank must file its application on or before 10
3-13 a.m. on the first day of the term. The application must be
3-14 accompanied by a certified check or cashier's check for at least
3-15 one-half percent of the average daily balance of the trust funds
3-16 held by the county and district clerks during the preceding
3-17 calendar year, as determined by the county clerk on or before the
3-18 10th day before the date the application is required to be filed.
3-19 <(c)> A certified check or cashier's check that complies with this
3-20 section is a good-faith guarantee on the part of the applicant that
3-21 if its application is accepted it will execute the bond required
3-22 under this subchapter. If the bank selected as depository does not
3-23 provide the bond, the county shall retain the amount of the check
3-24 as liquidated damages and the county shall select another
3-25 depository as provided by this subchapter.
4-1 (d) If for any reason a county depository is not selected
4-2 under Subsection (a), the commissioners court, at any subsequent
4-3 time after 20 days' notice, may select, by the process described by
4-4 Section 117.023 or by negotiated bid, one or more depositories in
4-5 the same manner as at the regular term.
4-6 SECTION 4. The importance of this legislation and the
4-7 crowded condition of the calendars in both houses create an
4-8 emergency and an imperative public necessity that the
4-9 constitutional rule requiring bills to be read on three several
4-10 days in each house be suspended, and this rule is hereby suspended,
4-11 and that this Act take effect and be in force from and after its
4-12 passage, and it is so enacted.