1-1 By: Ellis S.B. No. 1706
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Jurisprudence;
1-4 April 15, 1999, reported favorably by the following vote: Yeas 3,
1-5 Nays 0; April 15, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to money paid into the registry of courts in certain
1-9 populous counties.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 117.112, Local Government Code, is
1-12 amended to read as follows:
1-13 Sec. 117.112. MONEY AFFECTED. This subchapter applies to
1-14 the following kinds of money paid into the registry of any court
1-15 for [in] which a [the district] clerk is or may become responsible:
1-16 (1) funds of minors, lunatics, idiots, or non compos
1-17 mentis persons;
1-18 (2) funds tendered in connection with a bill in
1-19 interpleader; or
1-20 (3) any other funds.
1-21 SECTION 2. Section 117.119, Local Government Code, is
1-22 amended to read as follows:
1-23 Sec. 117.119. DEPOSIT OF FUNDS. Money paid into the
1-24 registry of the court shall be deposited by a [the district] clerk
1-25 into the registry fund at the special depository.
1-26 SECTION 3. Section 117.120, Local Government Code, is
1-27 amended to read as follows:
1-28 Sec. 117.120. CUSTODIANSHIP. A [The district] clerk shall
1-29 act only in a custodial capacity regarding the registry fund, is
1-30 not considered to be a trustee for the beneficial owner, and is not
1-31 considered to have assumed the duties, obligations, or liabilities
1-32 of a trustee for the beneficial owner.
1-33 SECTION 4. Section 117.121, Local Government Code, is
1-34 amended by amending Subsection (a) and adding Subsections (c) and
1-35 (d) to read as follows:
1-36 (a) Money may be paid from the registry fund only on checks
1-37 or drafts signed by a [the district] clerk on the written order of
1-38 the court with proper jurisdiction, except that the clerk may make
1-39 a payment without court order for unpaid court costs from a cash
1-40 bond deposited in connection with an appeal after the appellate
1-41 court issues its mandate in the [such] appeal if the costs remain
1-42 unpaid for 45 days after the mandate is issued.
1-43 (c) Notwithstanding Subsections (a) and (b), a disbursement
1-44 under an order of a court in which registry funds have been
1-45 deposited may be made by electronic transfer if:
1-46 (1) the designated recipient of the money submits to a
1-47 clerk a written request for the transfer;
1-48 (2) the clerk gives written approval for the transfer;
1-49 and
1-50 (3) a county auditor countersigns the approval.
1-51 (d) A clerk may charge a reasonable fee, subject to the
1-52 approval of the recipient of the money, for an electronic transfer
1-53 of a disbursement from a registry fund.
1-54 SECTION 5. Subsection (b), Section 117.122, Local Government
1-55 Code, is amended to read as follows:
1-56 (b) For each withdrawal, a [the district] clerk shall pay
1-57 out the original amount deposited in the registry of the court and
1-58 90 percent of the interest earned on that amount at the time and in
1-59 the manner directed by the court with proper jurisdiction.
1-60 SECTION 6. Subsection (b), Section 117.123, Local Government
1-61 Code, is amended to read as follows:
1-62 (b) A written report of the audit shall be delivered to the
1-63 county judge, each county commissioner, and a [the district] clerk
1-64 within 90 days after the last day of the fiscal year. A copy of
2-1 the audit shall be kept at the clerk's office [of the district
2-2 clerk] and shall be open to inspection by any interested person [or
2-3 persons] during normal office hours. The cost of the audit shall
2-4 be paid by the county.
2-5 SECTION 7. Section 117.124, Local Government Code, is
2-6 amended to read as follows:
2-7 Sec. 117.124. LIABILITY OF [DISTRICT] CLERK. (a) A
2-8 [district] clerk is not responsible for:
2-9 (1) a loss of funds resulting from the failure or
2-10 negligence of a depository; or
2-11 (2) the safety of funds after deposit in a depository
2-12 selected under this subchapter.
2-13 (b) A [district] clerk is responsible for:
2-14 (1) a loss of funds resulting from the clerk's
2-15 official misconduct, negligence, or misappropriation of the funds;
2-16 and
2-17 (2) the safety of funds before deposit in a depository
2-18 selected under this subchapter.
2-19 SECTION 8. Subchapter E, Chapter 117, Local Government Code,
2-20 is amended by adding Section 117.125 to read as follows:
2-21 Sec. 117.125. TRANSFER OF MONEY. (a) In the absence of a
2-22 contrary order from a court having jurisdiction over the registry
2-23 fund, a clerk may transfer money deposited in the fund into a
2-24 separate account.
2-25 (b) A clerk shall transfer all money deposited in a registry
2-26 fund under Section 887, Texas Probate Code, into a separate
2-27 account.
2-28 (c) Money transferred into a separate account under this
2-29 section must be:
2-30 (1) transferred into an account authorized for
2-31 investment under Chapter 2256, Government Code, by a local
2-32 government or investment pool; and
2-33 (2) invested according to the investment officer
2-34 designated under Section 2256.005, Government Code, by the
2-35 investing entity of which the county is a member.
2-36 (d) A transfer of money into a separate account under this
2-37 section is exempt from the requirements prescribed by Section
2-38 117.121 for disbursements from registry funds.
2-39 (e) An investment of money transferred from a registry fund
2-40 under this section is subject to the limitations, policies, and
2-41 standards of care provided by Chapter 2256, Government Code.
2-42 SECTION 9. The importance of this legislation and the
2-43 crowded condition of the calendars in both houses create an
2-44 emergency and an imperative public necessity that the
2-45 constitutional rule requiring bills to be read on three several
2-46 days in each house be suspended, and this rule is hereby suspended,
2-47 and that this Act take effect and be in force from and after its
2-48 passage, and it is so enacted.
2-49 * * * * *