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.