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.