By Carona                                             H.B. No. 1907
                                 A BILL TO BE ENTITLED
    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 term 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)  A bank must file its application on or before 10 a.m. on
   3-13  the first day of the term.  The application must be accompanied by
   3-14  a certified check or cashier's check for at least one-half percent
   3-15  of the average daily balance of the trust funds held by the county
   3-16  and district clerks during the preceding calendar year, as
   3-17  determined by the county clerk on or before the 10th day before the
   3-18  date the application is required to be filed. <(c)>  A certified
   3-19  check or cashier's check that complies with this section is a
   3-20  good-faith guarantee on the part of the applicant that if its
   3-21  application is accepted it will execute the bond required under
   3-22  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.