78R786 SMJ-F
By: Madla S.B. No. 1301
A BILL TO BE ENTITLED
AN ACT
relating to the management of county money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 113, Local Government Code, is amended
by adding Subchapter E to read as follows:
SUBCHAPTER E. ELECTRONIC TRANSFERS OF DEPOSITS AND DISBURSEMENTS
Sec. 113.101. ELECTRONIC TRANSFER SYSTEM AUTHORIZED. A
county may establish an electronic transfer system for making an
authorized:
(1) deposit into the county treasury; or
(2) disbursement from the county treasury.
Sec. 113.102. ADMINISTRATION OF SYSTEM. (a) The
commissioners court shall establish policies for administering the
electronic transfer system.
(b) The county treasurer shall administer the electronic
transfer system. In administering the system, the county treasurer
may use the services of financial institutions, automated clearing
houses, and the federal government.
(c) In a county that does not have a county treasurer, the
county auditor will perform the duties of the county treasurer
described by this subchapter.
Sec. 113.103. APPROVAL OF DEPOSITS AND VERIFICATION OF
CLAIMS. (a) The county depository may accept an electronic
transfer into the county treasury only after the county treasurer
approves the transfer.
(b) The county treasurer may electronically disburse money
to pay a claim only after the county auditor verifies to the
treasurer that the claim has been approved in accordance with
applicable law.
Sec. 113.104. DISBURSEMENTS TO MULTIPLE RECIPIENTS. A
single electronic disbursement may contain payments to more than
one person.
Sec. 113.105. STORAGE AND RETRIEVAL OF ELECTRONIC
DOCUMENTS. Not later than 24 hours after a document is transmitted
under an electronic transfer system, the document must be restored
and accessible or must be printed and preserved in a nonelectronic
form.
Sec. 113.106. NO ADDITIONAL RIGHTS CREATED. A county's use
of an electronic method to transfer money does not create a right
that would not have been created if the county had used a
nonelectronic method to transfer the money.
SECTION 2. Section 113.004, Local Government Code, is
amended to read as follows:
Sec. 113.004. [CLASSES OF] COUNTY FUNDS. (a) The county
treasurer shall deposit money [divide the funds] received by the
treasurer's office in a fund in accordance with Subsection (c) or as
provided by other law [into three classes. The treasurer shall
appropriate the money in each class of funds to the payment of the
claims registered in the corresponding class of claims].
(b) [The classes of funds consist of:
[(1) jury fees, money received from the sale of
estrays, and occupation taxes;
[(2) money received under the provisions of a road and
bridge law, including penalties recovered from railroads for the
failure to repair crossings, and all fines and forfeitures; and
[(3) other money received by the treasurer's office
that is not otherwise appropriated by this section or by the
commissioners court.
[(c)] The commissioners court, as it considers proper, may
require the creation of a fund [other accounts to be kept, creating
other classes of funds. The court may require scrip to be issued
against those accounts and to be registered accordingly].
(c) [(d)] The commissioners court by order may transfer
money on hand from one fund to another as it considers necessary or
as the budget provides[, but amounts that belong to the first class
of funds may not be transferred from the payment of claims
registered in that class unless there is an excess amount in that
class].
SECTION 3. The heading to Section 113.008, Local Government
Code, is amended to read as follows:
Sec. 113.008. RECONCILIATION OF COUNTY DEPOSITORY ACCOUNTS
[CHECKS AND WARRANTS].
SECTION 4. Sections 113.008(a), (b), and (c), Local
Government Code, are amended to read as follows:
(a) The county depository shall provide a statement of all
bank activity and documentation supporting each transaction on the
statement at least once a month [all canceled checks and warrants
and supporting statements] to the county treasurer.
(b) [Subsection (a) does not apply if the checks and
warrants are payable from funds under the direct authority of an
official other than the county treasurer as provided by statute.
The exemption provided by this subsection does not apply if the
official requests the county treasurer to be responsible for the
reconciliation of the checks and warrants payable from the funds
that are under the direct authority of the official.
[(c)] In fulfilling the requirements of this section
[Subsection (a)], the county depository shall provide, at the
direction of the county treasurer,[:
[(1) original canceled checks and warrants; or
[(2)] originals, optical or electronic images, or data
files of [the front and back of] canceled checks and orders, deposit
details, debit and credit memoranda, and electronic transmission
details, provided that the [warrants if the optical] images or
files are retained in accordance with [the] rules adopted by the
Texas State Library and Archives Commission.
SECTION 5. Section 113.022, Local Government Code, is
amended to read as follows:
Sec. 113.022. TIME FOR MAKING DEPOSITS. A county officer
who receives funds shall deposit the funds with the county
treasurer on or before the next regular business day after the date
on which the funds are received. If this deadline is not met, the
officer must deposit the funds, without exception, on or before the
seventh business day after the day on which the funds are received.
[However, in a county with fewer than 50,000 inhabitants, the
commissioners court may extend the period during which funds must
be deposited with the county treasurer, but the period may not
exceed 30 days after the date the funds are received.]
SECTION 6. Section 113.023, Local Government Code, is
amended to read as follows:
Sec. 113.023. DEPOSIT ORDERS AND RECEIPTS [WARRANTS]. (a)
Each [Except as provided by Subsection (c), each] deposit made in
the county treasury must be made on a deposit order [warrant] issued
by a person authorized by law to make the deposit [in triplicate by
the county clerk]. The deposit order [warrant] authorizes the
county treasurer to receive the amount stated in the order
[warrant]. The order [warrant] must certify the source of the money
that comprises the deposit and state the specific purpose for which
the amount is received and the fund to which it is to be applied.
(b) The county treasurer shall prepare a receipt for each
deposit made in the county treasury and shall timely provide a copy
of the receipt to the person authorized by law to make the deposit
and the county auditor. In a county that does not have a county
auditor, the county treasurer shall timely provide a copy of the
receipt to the county clerk if the county clerk keeps general
financial records for the county. [The county treasurer shall keep
the original of the warrant. The duplicate shall be signed and
returned to the county clerk. The triplicate shall be signed and
returned to the depositor. If the county has a county auditor, the
county clerk shall give the clerk's copy of the warrant to the
auditor, and the auditor shall enter the amount in the auditor's
books, charging the amount to the county treasurer and crediting
the person who deposited the amount. The treasurer may receive
money only through this procedure except as provided by Subsection
(c).]
(c) [In a county with more than 2.2 million inhabitants, the
county clerk is relieved of all duties under Subsections (a) and
(b). In any other county that has the office of county auditor, the
commissioners court by order may relieve the county clerk of all
duties under Subsections (a) and (b). If the county clerk is
relieved of duties, the county treasurer shall receive all deposits
that are made in the county treasury. The county treasurer shall
prepare a receipt in triplicate for all money received. The
treasurer shall keep one copy of the receipt and shall transmit the
original to the county auditor and the other copy to the depositor.]
The county auditor shall prescribe a system, not inconsistent with
this section [subsection], to be used by the county treasurer for
receiving and depositing money.
SECTION 7. The heading to Section 113.041, Local Government
Code, is amended to read as follows:
Sec. 113.041. DISBURSEMENT OF MONEY BY COUNTY TREASURER;
PAYMENT BY CHECK OR OTHER ORDER [WARRANT]; LOST OR DESTROYED
INSTRUMENT.
SECTION 8. Sections 113.041(b), (c), and (d), are amended
to read as follows:
(b) Except as provided by Chapter 156 and Subchapter E, a
person may not spend or withdraw money from the county treasury
except by a check or other order [warrant] drawn on the county
treasury, whether or not the money is in a county depository as
required by law.
(c) The county treasurer may not pay or disburse money out
of the county treasury without authority, as provided by law, to
make the payment or disbursement [a certificate or warrant from an
officer who is authorized by law to issue the certificate or
warrant].
(d) If the treasurer doubts the legality or propriety of an
order[, decree, certificate, or warrant] presented to the treasurer
for payment, the treasurer may not make the payment. The treasurer
shall report the matter to the commissioners court for the court's
consideration and direction.
SECTION 9. Section 113.042, Local Government Code, is
amended to read as follows:
Sec. 113.042. AUTHORIZATION [ENDORSEMENT] BY COUNTY
TREASURER; OTHER ORDER [WARRANT] REQUIREMENTS. (a) On the
presentation of an [a warrant, check, voucher, or] order approved
[drawn] by [a] proper authorities [authority], and if there are
sufficient funds for payment on deposit in the account against
which the instrument is drawn, the county treasurer shall authorize
disbursement [endorse on the face of the instrument the order] to
[pay] the named payee or receiver and shall record in the
treasurer's records the authorization, [charge] the amount, and [in
the treasurer's records to] the fund on which it is drawn.
(b) [The county treasurer may not issue and the county
depository may not pay a check drawn on the county depository to
take up a warrant drawn by a proper authority, but the county
treasurer shall, on the presentation of the warrant, endorse the
warrant and deliver it to the payee, who may present it to the
county depository for payment.
[(c) The treasurer may not endorse an instrument designated
as a time deposit until after the notice and time requirements in
the depository contract that designates the funds as time deposits
are met.
[(d)] If a bond, coupon, or other instrument is payable on
its own terms at any place other than the county treasury, this
section does not prevent the commissioners court from ordering the
treasurer to place a sufficient sum at the location where the
instrument is payable at the time and place of its maturity, as long
as the payment is made in the manner prescribed by law.
(c) The application of this section is subject to all
applicable laws relating to auditing and countersigning.
[(e) Each check or warrant issued or drawn by an officer
under the provisions of this section is subject to all laws and
rules relating to auditing and countersigning.
[(f) Each warrant or scrip issued against the county
treasurer by a judge or court must be signed and attested by the
clerk or judge of the court under that officer's official seal.
[(g) A justice of the peace may not issue warrants against
the county treasury for any purpose except as may be provided by the
Code of Criminal Procedure.]
SECTION 10. Section 113.044, Local Government Code, is
amended to read as follows:
Sec. 113.044. MARKING PAID ORDERS [WARRANTS TO BE
PUNCHED]. If the county treasurer pays an order that has not been
presented to a depository [At the time the county treasurer pays a
warrant], the treasurer shall clearly mark the order as paid at the
time the treasurer pays the order [punch the warrant].
SECTION 11. Subchapter Z, Chapter 113, Local Government
Code, is amended by adding Section 113.904 to read as follows:
Sec. 113.904. ELECTRONIC SIGNATURES AND OTHER ELECTRONIC
ACTIONS PERMITTED FOR ADMINISTRATIVE PURPOSES. (a) A signature or
authorization that is required for an electronically transmitted
deposit, requisition, purchase order, claim, payment, or other
financial activity may be electronically transmitted if the
electronic signature or authorization has sufficient security
features to insure its authenticity.
(b) A provision in this chapter that requires an
administrative action, such as providing a triplicate form of a
document or stamping a document, may be fulfilled by an electronic
method if the electronic method accomplishes the purpose of the
administrative action.
SECTION 12. This Act takes effect September 1, 2003.