1-1                                   AN ACT

 1-2     relating to the selection of depositories by navigation districts

 1-3     and port authorities.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 60.271, Water Code, is amended to read as

 1-6     follows:

 1-7           Sec. 60.271. SELECTION OF DEPOSITORY.            (a)  Except

 1-8     as provided by this section, the [The] commission shall select a

 1-9     depository for the  district in the same manner that a municipality

1-10     selects a municipal depository under Chapter 105, Local Government

1-11     Code [the law  providing for the selection of a county depository].

1-12           (b)  The commission in selecting the depository shall act in

1-13     the same capacity and perform the same duties as the governing body

1-14     of a municipality [county judge and the commissioners court] in

1-15     selecting a  municipal [county] depository.  The chairman of the

1-16     commission shall act in the same capacity and perform the same

1-17     duties as the mayor of a municipality.  The treasurer of the

1-18     district shall act in the same capacity and perform the same duties

1-19     as the treasurer of a municipality.

1-20           (c)  A bank, credit union, or savings association may not use

1-21     personal bonds to secure district funds.

1-22           (d)  Subchapter B, Chapter 2256, Government Code, does not

1-23     govern the investment of district funds.

1-24           (e)  Section 105.074(e), Local Government Code, applies to

 2-1     the designated officer of the district.

 2-2           (f)  The designated officer of a district may draw a check on

 2-3     a depository only on a warrant signed by the chairman and attested

 2-4     by the secretary of the district.

 2-5           (g)  In this section, "designated officer" has the meaning

 2-6     assigned by Section 105.001, Local Government Code.

 2-7           SECTION 2.  Section 61.212, Water Code, is amended to read as

 2-8     follows:

 2-9           Sec. 61.212. DISTRICT DEPOSITORY.  [(a)]  The [Within 30 days

2-10     after the commissioners are appointed, the] commission shall select

2-11     a depository for the district as [in the manner] provided by

2-12     Section 60.271 [law for the selection of a county depository].

2-13           [(b)  The depository selected by the commission shall serve

2-14     as the depository for the district for two years and until its

2-15     successor is selected and has qualified.]

2-16           SECTION 3.  Section 62.156, Water Code, is amended to read as

2-17     follows:

2-18           Sec. 62.156.  SELECTION OF DEPOSITORY.  [(a)]  The commission

2-19     shall select a depository as provided by Section 60.271 [banking

2-20     corporation which will secure the deposit of the revenue pursuant

2-21     to the statutes relating to county depositories insofar as

2-22     applicable.  "Commissioners court" and "county judge" as used in

2-23     the statutes relating to county depositories shall mean the

2-24     commission and the commission chairman respectively].

2-25           [(b)  The commission may select the banking corporation to

2-26     serve as the depository for a period of not more than two years

2-27     from the day of selection, and at least 60 days before the end of

 3-1     the period, the commission shall determine whether to continue to

 3-2     deposit district revenue as provided in this section or to deposit

 3-3     the revenue as provided in the general laws relating to navigation

 3-4     districts.]

 3-5           [(c)  If the commission decides to deposit district revenue

 3-6     under the general laws relating to navigation districts, it, at any

 3-7     time in the future, may elect to select a depository in the manner

 3-8     provided in this section.]

 3-9           SECTION 4.  Section 63.222, Water Code, is amended to read as

3-10     follows:

3-11           Sec. 63.222. DISTRICT DEPOSITORY.  The district depository

3-12     shall be designated as provided by Section 60.271 [at the time, in

3-13     the manner, and under the same regulations and laws as county

3-14     depositories], and the district's funds shall be deposited in the

3-15     depository.

3-16           SECTION 5.  The following laws are repealed:

3-17                 (1)  Section 61.213, Water Code;

3-18                 (2)  Sections 62.157-62.158, Water Code; and

3-19                 (3)  Section 63.223, Water Code.

3-20           SECTION 6.  This Act takes effect September 1, 1997, and

3-21     applies only to a depository contract that is solicited on or after

3-22     September 1, 1997.  A depository contract in effect on September 1,

3-23     1997, continues in effect until the end of its term and is governed

3-24     by the law in effect immediately before this Act took effect, and

3-25     that law is continued in effect for that purpose.

3-26           SECTION 7.  The importance of this legislation and the

3-27     crowded condition of the calendars in both houses create an

 4-1     emergency and an imperative public necessity that the

 4-2     constitutional rule requiring bills to be read on three several

 4-3     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2096 was passed by the House on May

         10, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2096 was passed by the Senate on May

         26, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor