BWH H.B. 2769 75(R)BILL ANALYSIS COUNTY AFFAIRS H.B. 2769 By: Goolsby 4-2-97 Committee Report (Unamended) BACKGROUND In 1993, the legislature amended Section 116.116 of the Local Government Code to provide that a county check would become overdue and nonnegotiable if not presented for payment within 366 days. While the underlying claim is not extinguished, this provision allows counties to remove these outstanding checks from their ledgers and include these amounts in their account balances. However, since the change was effective August 31, 1993, there remains some ambiguity over the status of checks issued prior to that date. Another clarification is needed regarding the status of cash bail bonds deposited with the county clerk or district clerk. The Code of Criminal Procedure provides that cash bail bonds will be deposited with the custodian of funds of the court and refunded "upon order of the court". However, legislative changes in 1991 to the Local Government Code require the county or district clerk to transfer certain funds to the state treasurer "without further action of the court". This has created a conflict between the two statutes. Since cash bail bonds are part of a criminal preceding, the provision in the Code of Criminal Procedure should govern their disposition. PURPOSE This legislation clarifies current state law with regard to uncashed county checks prior to September 1, 1993 and exempts cash bail bonds from transfer of unclaimed funds to the state treasurer until released by the court. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subsection 116.116(c), Local Government Code, to provide that a warrant or check that was issued at any time by a county treasurer is overdue and non-negotiable. The sum of the overdue check will be credited to the county if delivery to the payee was attempted. SECTION 2. Amends Section 117.002, Local Government Code, whereby any funds, except cash bail bonds, deposited under this chapter that are abandoned, will be reported and delivered to the state treasurer by the county or district court. The funds deposited under this chapter begins on: (1) the date of entry of final judgement or order of dismissal in the action; (2) the 18th birthday of the minor for whom funds were deposited; or (3) a reasonable date established by the state treasurer to promote the public interest in disposing of unclaimed funds. SECTION 3. Emergency clause.