HBA-PDH S.B. 1706 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1706
By: Ellis
Judicial Affairs
4/30/1999
Engrossed


BACKGROUND AND PURPOSE

Currently, Subchapter E (Special Provisions Applying to Funds Paid into
Court Registry in County with Population of More Than 2.4 Million), Chapter
117, Local Government Code, places several restrictions regarding registry
funds on a district clerk in a county with a population of over 2.4
million.  The district clerk does not have authorization to place registry
funds in "separate accounts" which may provide higher yields, to provide
for a fund transfer without a court order, or to allow a payee to receive a
disbursement by electronic transfer.  Removing the restrictions would
provide a more efficient court registry and allow more opportunities for
registry funds.  The proposed changes only affect counties with a
population over 2.4 million.  Only Harris County meets that population
requirement.  S.B. 1706 modifies the authority of clerks in counties with
populations of more than 2.4 million to deposit funds in the court
registry. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 117.112, Local Government Code, to apply this
subchapter to certain funds paid to a clerk, rather than a district clerk.
Makes conforming changes. 

SECTION 2.  Amends Section 117.119, Local Government Code, to require money
paid into the registry of a court to be deposited by a clerk, rather than
the district clerk. 

SECTION 3.  Amends Section 117.120, Local Government Code, to require a
clerk, rather than the district clerk, to act only in a custodial capacity. 

SECTION 4.  Amends Section 117.121, Local Government Code, to set forth
conditions in which an electronic funds transfer may occur.  Authorizes a
clerk to charge a reasonable fee for an electronic transfer from a registry
fund, subject to the approval of the recipient of the funds.  Makes
conforming and nonsubstantive changes. 

SECTION 5.  Amends Section 117.122(b), Local Government Code, make
conforming changes.  

SECTION 6.  Amends Section 117.123(b), Local Government Code, to make
conforming and nonsubstantive changes. 

SECTION 7.  Amends Section 117.124, Local Government Code, as follows:

Sec. 117.124.  New title:  LIABILITY OF CLERK.  Makes conforming changes.

SECTION 8.  Amends Chapter 117, Local Government Code, by adding Section
117.125, as follows: 

Sec. 117.125.  TRANSFER OF MONEY.  Authorizes a clerk to transfer money
deposited in the fund into a separate account, in the absence of a contrary
order from a court having jurisdiction over the registry fund.  Requires a
clerk to transfer all money deposited in a registry fund under Section 887
(Payment of Claims Without Guardianship and  Administration of Terminated
Guardianship Assets), Texas Probate Code, into a separate account.  Sets
forth required conditions for the transfer of money under this section.
Provides that a transfer of money into a separate account is exempt from
requirements prescribed by Section 117.121 (Disbursement of Funds) for
disbursements from registry funds.  Provides that an investment of money
transferred from a registry fund under this section is subject to the
limitations, policies, and standards of care provided by Chapter 2256
(Public Funds Investment), Government Code. 

SECTION 9.  Emergency clause.
  Effective date: upon passage.