By Thompson                                           H.B. No. 3305
         76R3571 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to money paid into the registry of courts in certain
 1-3     populous counties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 117.112, Local Government Code, is
 1-6     amended to read as follows:
 1-7           Sec. 117.112.  MONEY AFFECTED.  This subchapter applies to
 1-8     the following kinds of money paid into the registry of any court
 1-9     for [in] which a [the district] clerk is or may become responsible:
1-10                 (1)  funds of minors, lunatics, idiots, or non compos
1-11     mentis persons;
1-12                 (2)  funds tendered in connection with a bill in
1-13     interpleader; or
1-14                 (3)  any other funds.
1-15           SECTION 2.  Section 117.119, Local Government Code, is
1-16     amended to read as follows:
1-17           Sec. 117.119.  DEPOSIT OF FUNDS.  Money paid into the
1-18     registry of the court shall be deposited by a [the district] clerk
1-19     into the registry fund at the special depository.
1-20           SECTION 3.  Section 117.120, Local Government Code, is
1-21     amended to read as follows:
1-22           Sec. 117.120.   CUSTODIANSHIP.  A [The district] clerk shall
1-23     act only in a custodial capacity regarding the registry fund, is
1-24     not considered to be a trustee for the beneficial owner, and is not
 2-1     considered to have assumed the duties, obligations, or liabilities
 2-2     of a trustee for the beneficial owner.
 2-3           SECTION 4.  Section 117.121, Local Government Code, is
 2-4     amended by amending Subsection (a) and adding Subsections (c) and
 2-5     (d) to read as follows:
 2-6           (a)  Money may be paid from the registry fund only on checks
 2-7     or drafts signed by a [the district] clerk on the written order of
 2-8     the court with proper jurisdiction, except that the clerk may make
 2-9     a payment without court order for unpaid court costs from a cash
2-10     bond deposited in connection with an appeal after the appellate
2-11     court issues its mandate in the [such] appeal if the costs remain
2-12     unpaid for 45 days after the mandate is issued.
2-13           (c)  Notwithstanding Subsections (a) and (b), a disbursement
2-14     under an order of a court in which registry funds have been
2-15     deposited may be made by electronic transfer if:
2-16                 (1)  the designated recipient of the money submits to a
2-17     clerk a written request for the transfer;
2-18                 (2)  the clerk gives written approval for the transfer;
2-19     and
2-20                 (3)  a county auditor countersigns the approval.
2-21           (d)  A clerk may charge a reasonable fee, subject to the
2-22     approval of the recipient of the money, for an electronic transfer
2-23     of a disbursement from a registry fund.
2-24           SECTION 5.  Section 117.122(b), Local Government Code, is
2-25     amended to read as follows:
2-26           (b)  For each withdrawal, a [the district] clerk shall pay
2-27     out the original amount deposited in the registry of the court and
 3-1     90 percent of the interest earned on that amount at the time and in
 3-2     the manner directed by the court with proper jurisdiction.
 3-3           SECTION 6.  Section 117.123(b), Local Government Code, is
 3-4     amended to read as follows:
 3-5           (b)  A written report of the audit shall be delivered to the
 3-6     county judge, each county commissioner, and a [the district] clerk
 3-7     within 90 days after the last day of the fiscal year.  A copy of
 3-8     the audit shall be kept at the clerk's office [of the district
 3-9     clerk] and shall be open to inspection by any interested person [or
3-10     persons] during normal office hours.  The cost of the audit shall
3-11     be paid by the county.
3-12           SECTION 7.  Section 117.124, Local Government Code, is
3-13     amended to read as follows:
3-14           Sec. 117.124.  LIABILITY OF [DISTRICT] CLERK.  (a)  A
3-15     [district] clerk is not responsible for:
3-16                 (1)  a loss of funds resulting from the failure or
3-17     negligence of a depository; or
3-18                 (2)  the safety of funds after deposit in a depository
3-19     selected under this subchapter.
3-20           (b)  A [district] clerk is responsible for:
3-21                 (1)  a loss of funds resulting from the clerk's
3-22     official misconduct, negligence, or misappropriation of the funds;
3-23     and
3-24                 (2)  the safety of funds before deposit in a depository
3-25     selected under this subchapter.
3-26           SECTION 8.  Subchapter E, Chapter 117, Local Government Code,
3-27     is amended by adding Section 117.125 to read as follows:
 4-1           Sec. 117.125.  TRANSFER OF MONEY.  (a)  In the absence of a
 4-2     contrary order from a court having jurisdiction over the registry
 4-3     fund, a clerk may transfer money deposited in the fund into a
 4-4     separate account.
 4-5           (b)  A clerk shall transfer all money deposited in a registry
 4-6     fund under Section 887, Texas Probate Code, into a separate
 4-7     account.
 4-8           (c)  Money transferred into a separate account under this
 4-9     section must be:
4-10                 (1)  transferred into an account authorized for
4-11     investment under Chapter 2256, Government Code, by a local
4-12     government or investment pool; and
4-13                 (2)  invested according to the investment officer
4-14     designated under Section 2256.005, Government Code, by the
4-15     investing entity of which the county is a member.
4-16           (d)  A transfer of money into a separate account under this
4-17     section is exempt from the requirements prescribed by Section
4-18     117.121 for disbursements from registry funds.
4-19           (e)  An investment of money transferred from a registry fund
4-20     under this section is subject to the limitations, policies, and
4-21     standards of care provided by Chapter 2256, Government Code.
4-22           SECTION 9.  The importance of this legislation and the
4-23     crowded condition of the calendars in both houses create an
4-24     emergency and an imperative public necessity that the
4-25     constitutional rule requiring bills to be read on three several
4-26     days in each house be suspended, and this rule is hereby suspended,
4-27     and that this Act take effect and be in force from and after its
 5-1     passage, and it is so enacted.