By: Lucio S.B. No. 1055
A BILL TO BE ENTITLED
AN ACT
1-1 relating to depositories for county public funds, trust funds, and
1-2 court registry funds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 116.021, Local Government Code, is
1-5 amended to read as follows:
1-6 Sec. 116.021. DEPOSITORY AND SUBDEPOSITORY CONTRACTS.
1-7 (a) The commissioners court of a county at its May <February>
1-8 regular term immediately following each general election for state
1-9 and county officers shall contract with one or more banks in the
1-10 county for the deposit of the county's public funds. The county
1-11 shall contract with a bank under this section for a two-year or
1-12 four-year contract term.
1-13 (b) If the contract is for a four-year term, the contract
1-14 shall allow the bank to establish, on the basis of negotiations
1-15 with the county, new interest rates and financial terms of the
1-16 contract that will take effect during the final two years of the
1-17 four-year contract if:
1-18 (1) the new financial terms do not increase the prices
1-19 to the county by more than 10 percent; and
1-20 (2) the county has the option to choose to use the
1-21 initial variable interest rate option or to change to the new fixed
1-22 or variable interest rate options proposed by the bank <The
1-23 commissioners court at its February regular term not following a
2-1 general election for state and county officers may contract with
2-2 one or more banks in the county for the deposit of the county's
2-3 public funds>.
2-4 (c) If for any reason a county depository is not selected
2-5 under Subsection (a), the commissioners court, at any subsequent
2-6 time after 20 days' notice, may select, by the process described by
2-7 Section 116.024 or by negotiated bid, one or more depositories in
2-8 the same manner as at the regular time.
2-9 SECTION 2. Section 116.022(a), Local Government Code, is
2-10 amended to read as follows:
2-11 (a) Once each week for at least 20 days before the May
2-12 <February> regular term of a commissioners court at which the court
2-13 will make a depository contract, the county judge shall place over
2-14 the judge's name in a newspaper published in the county a notice
2-15 that the commissioners court intends to make the contract. A
2-16 notice shall also be posted at the courthouse door of the county.
2-17 SECTION 3. Section 117.021, Local Government Code, is
2-18 amended to read as follows:
2-19 Sec. 117.021. Applications. (a) The commissioners court of
2-20 a county at its May <February> regular term after a general
2-21 election for state and county officers shall receive an application
2-22 from any bank in the county to be the depository for trust funds
2-23 held by the county and district clerks. The county shall contract
2-24 with a bank under this section for a two-year or four-year contract
2-25 term.
3-1 (b) If the contract is for a four-year term, the contract
3-2 shall allow the bank to establish, on the basis of negotiations
3-3 with the county, new interest rates and financial terms of the
3-4 contract that will take effect during the final two years of the
3-5 four-year contract if:
3-6 (1) the new financial terms do not increase the prices
3-7 to the county by more than 10 percent; and
3-8 (2) the county has the option to choose to use the
3-9 initial variable interest rate option or to change to the new fixed
3-10 or variable interest rate options proposed by the bank.
3-11 (c) A bank must file its application on or before 10 a.m. on
3-12 the first day of the term. The application must be accompanied by
3-13 a certified check or cashier's check for at least one-half percent
3-14 of the average daily balance of the trust funds held by the county
3-15 and district clerks during the preceding calendar year, as
3-16 determined by the county clerk on or before the 10th day before the
3-17 date the application is required to be filed. <(c)> A certified
3-18 check or cashier's check that complies with this section is a
3-19 good-faith guarantee on the part of the applicant that if its
3-20 application is accepted it will execute the bond required under
3-21 this subchapter. If the bank selected as depository does not
3-22 provide the bond, the county shall retain the amount of the check
3-23 as liquidated damages and the county shall select another
3-24 depository as provided by this subchapter.
3-25 (d) If for any reason a county depository is not selected
4-1 under Subsection (a), the commissioners court, at any subsequent
4-2 time after 20 days' notice, may select, by the process described by
4-3 Section 117.023 or by negotiated bid, one or more depositories in
4-4 the same manner as at the regular term.
4-5 SECTION 4. The importance of this legislation and the
4-6 crowded condition of the calendars in both houses create an
4-7 emergency and an imperative public necessity that the
4-8 constitutional rule requiring bills to be read on three several
4-9 days in each house be suspended, and this rule is hereby suspended,
4-10 and that this Act take effect and be in force from and after its
4-11 passage, and it is so enacted.