By:  Ellis                                            S.B. No. 1706
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to money paid into the registry of courts in certain
 1-2     populous counties.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 117.112, Local Government Code, is
 1-5     amended to read as follows:
 1-6           Sec. 117.112.  MONEY AFFECTED.  This subchapter applies to
 1-7     the following kinds of money paid into the registry of any court
 1-8     for [in] which a [the district] clerk is or may become responsible:
 1-9                 (1)  funds of minors, lunatics, idiots, or non compos
1-10     mentis persons;
1-11                 (2)  funds tendered in connection with a bill in
1-12     interpleader; or
1-13                 (3)  any other funds.
1-14           SECTION 2.  Section 117.119, Local Government Code, is
1-15     amended to read as follows:
1-16           Sec. 117.119.  DEPOSIT OF FUNDS.  Money paid into the
1-17     registry of the court shall be deposited by a [the district] clerk
1-18     into the registry fund at the special depository.
1-19           SECTION 3.  Section 117.120, Local Government Code, is
1-20     amended to read as follows:
1-21           Sec. 117.120.  CUSTODIANSHIP.  A [The district] clerk shall
1-22     act only in a custodial capacity regarding the registry fund, is
1-23     not considered to be a trustee for the beneficial owner, and is not
1-24     considered to have assumed the duties, obligations, or liabilities
 2-1     of a trustee for the beneficial owner.
 2-2           SECTION 4.  Section 117.121, Local Government Code, is
 2-3     amended by amending Subsection (a) and adding Subsections (c) and
 2-4     (d) to read as follows:
 2-5           (a)  Money may be paid from the registry fund only on checks
 2-6     or drafts signed by a [the district] clerk on the written order of
 2-7     the court with proper jurisdiction, except that the clerk may make
 2-8     a payment without court order for unpaid court costs from a cash
 2-9     bond deposited in connection with an appeal after the appellate
2-10     court issues its mandate in the [such] appeal if the costs remain
2-11     unpaid for 45 days after the mandate is issued.
2-12           (c)  Notwithstanding Subsections (a) and (b), a disbursement
2-13     under an order of a court in which registry funds have been
2-14     deposited may be made by electronic transfer if:
2-15                 (1)  the designated recipient of the money submits to a
2-16     clerk a written request for the transfer;
2-17                 (2)  the clerk gives written approval for the transfer;
2-18     and
2-19                 (3)  a county auditor countersigns the approval.
2-20           (d)  A clerk may charge a reasonable fee, subject to the
2-21     approval of the recipient of the money, for an electronic transfer
2-22     of a disbursement from a registry fund.
2-23           SECTION 5.  Subsection (b), Section 117.122, Local Government
2-24     Code, is amended to read as follows:
2-25           (b)  For each withdrawal, a [the district] clerk shall pay
2-26     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.  Subsection (b), Section 117.123, Local Government
 3-4     Code, is 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,
 4-1     is amended by adding Section 117.125 to read as follows:
 4-2           Sec. 117.125.  TRANSFER OF MONEY.  (a)  In the absence of a
 4-3     contrary order from a court having jurisdiction over the registry
 4-4     fund, a clerk may transfer money deposited in the fund into a
 4-5     separate account.
 4-6           (b)  A clerk shall transfer all money deposited in a registry
 4-7     fund under Section 887, Texas Probate Code, into a separate
 4-8     account.
 4-9           (c)  Money transferred into a separate account under this
4-10     section must be:
4-11                 (1)  transferred into an account authorized for
4-12     investment under Chapter 2256, Government Code, by a local
4-13     government or investment pool; and
4-14                 (2)  invested according to the investment officer
4-15     designated under Section 2256.005, Government Code, by the
4-16     investing entity of which the county is a member.
4-17           (d)  A transfer of money into a separate account under this
4-18     section is exempt from the requirements prescribed by Section
4-19     117.121 for disbursements from registry funds.
4-20           (e)  An investment of money transferred from a registry fund
4-21     under this section is subject to the limitations, policies, and
4-22     standards of care provided by Chapter 2256, Government Code.
4-23           SECTION 9.  The importance of this legislation and the
4-24     crowded condition of the calendars in both houses create an
4-25     emergency and an imperative public necessity that the
4-26     constitutional rule requiring bills to be read on three several
 5-1     days in each house be suspended, and this rule is hereby suspended,
 5-2     and that this Act take effect and be in force from and after its
 5-3     passage, and it is so enacted.