1-1 By: Carona (Senate Sponsor - Lucio) H.B. No. 1907
1-2 (In the Senate - Received from the House April 3, 1995;
1-3 April 4, 1995, read first time and referred to Committee on
1-4 Intergovernmental Relations; April 12, 1995, reported favorably by
1-5 the following vote: Yeas 10, Nays 0; April 12, 1995, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to depositories for county public funds, trust funds, and
1-10 court registry funds.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 116.021, Local Government Code, is
1-13 amended to read as follows:
1-14 Sec. 116.021. DEPOSITORY AND SUBDEPOSITORY CONTRACTS.
1-15 (a) The commissioners court of a county at its May <February>
1-16 regular term immediately following each general election for state
1-17 and county officers shall contract with one or more banks in the
1-18 county for the deposit of the county's public funds. The county
1-19 shall contract with a bank under this section for a two-year or
1-20 four-year contract term.
1-21 (b) If the contract is for a four-year term, the contract
1-22 shall allow the bank to establish, on the basis of negotiations
1-23 with the county, new interest rates and financial terms of the
1-24 contract that will take effect during the final two years of the
1-25 four-year contract if:
1-26 (1) the new financial terms do not increase the prices
1-27 to the county by more than 10 percent; and
1-28 (2) the county has the option to choose to use the
1-29 initial variable interest rate option or to change to the new fixed
1-30 or variable interest rate options proposed by the bank <The
1-31 commissioners court at its February regular term not following a
1-32 general election for state and county officers may contract with
1-33 one or more banks in the county for the deposit of the county's
1-34 public funds>.
1-35 (c) If for any reason a county depository is not selected
1-36 under Subsection (a), the commissioners court, at any subsequent
1-37 time after 20 days' notice, may select, by the process described by
1-38 Section 116.024 or by negotiated bid, one or more depositories in
1-39 the same manner as at the regular time.
1-40 SECTION 2. Section 116.022(a), Local Government Code, is
1-41 amended to read as follows:
1-42 (a) Once each week for at least 20 days before the May
1-43 <February> regular term of a commissioners court at which the court
1-44 will make a depository contract, the county judge shall place over
1-45 the judge's name in a newspaper published in the county a notice
1-46 that the commissioners court intends to make the contract. A
1-47 notice shall also be posted at the courthouse door of the county.
1-48 SECTION 3. Section 117.021, Local Government Code, is
1-49 amended to read as follows:
1-50 Sec. 117.021. Applications. (a) The commissioners court of
1-51 a county at its May <February> regular term after a general
1-52 election for state and county officers shall receive an application
1-53 from any bank in the county to be the depository for trust funds
1-54 held by the county and district clerks. The county shall contract
1-55 with a bank under this section for a two-year or four-year contract
1-56 term.
1-57 (b) If the contract is for a four-year term, the contract
1-58 shall allow the bank to establish, on the basis of negotiations
1-59 with the county, new interest rates and financial terms of the
1-60 contract that will take effect during the final two years of the
1-61 four-year contract if:
1-62 (1) the new financial terms do not increase the prices
1-63 to the county by more than 10 percent; and
1-64 (2) the county has the option to choose to use the
1-65 initial variable interest rate option or to change to the new fixed
1-66 or variable interest rate options proposed by the bank.
1-67 (c) <(b)> A bank must file its application on or before 10
1-68 a.m. on the first day of the term. The application must be
2-1 accompanied by a certified check or cashier's check for at least
2-2 one-half percent of the average daily balance of the trust funds
2-3 held by the county and district clerks during the preceding
2-4 calendar year, as determined by the county clerk on or before the
2-5 10th day before the date the application is required to be filed.
2-6 <(c)> A certified check or cashier's check that complies with this
2-7 section is a good-faith guarantee on the part of the applicant that
2-8 if its application is accepted it will execute the bond required
2-9 under this subchapter. If the bank selected as depository does not
2-10 provide the bond, the county shall retain the amount of the check
2-11 as liquidated damages and the county shall select another
2-12 depository as provided by this subchapter.
2-13 (d) If for any reason a county depository is not selected
2-14 under Subsection (a), the commissioners court, at any subsequent
2-15 time after 20 days' notice, may select, by the process described by
2-16 Section 117.023 or by negotiated bid, one or more depositories in
2-17 the same manner as at the regular term.
2-18 SECTION 4. The importance of this legislation and the
2-19 crowded condition of the calendars in both houses create an
2-20 emergency and an imperative public necessity that the
2-21 constitutional rule requiring bills to be read on three several
2-22 days in each house be suspended, and this rule is hereby suspended,
2-23 and that this Act take effect and be in force from and after its
2-24 passage, and it is so enacted.
2-25 * * * * *