Amend HB 892 by adding the following appropriately numbered 
SECTIONS and by renumbering the existing SECTIONS as appropriate:
	SECTION ____.  Sections 116.021(a) and (b), Local Government 
Code, are amended to read as follows:
	(a)  The commissioners court of a county [at its May regular 
term immediately following each general election for state and 
county officers] shall contract with one or more banks in the county 
and enter a contract with each selected bank for the deposit of the 
county's public funds.  The county shall contract with a bank under 
this section for a two-year or four-year contract term.  On 
expiration of a contract under this section, the contract may be 
renewed for two years under terms negotiated by the commissioners 
court.
	(b)  If the contract is for a four-year term, the contract 
shall allow the county [bank] to establish, on the basis of 
negotiations with the bank [county], new interest rates and 
financial terms of the contract that will take effect during the 
final two years of the four-year contract [if:
		[(1)  the new financial terms do not increase the 
prices to the county by more than 10 percent; and
		[(2)  the county has the option to choose to use the 
initial variable interest rate option or to change to the new fixed 
or variable interest rate options proposed by the bank].
	SECTION ____.  Section 116.022(a), Local Government Code, is 
amended to read as follows:
	(a)  Once each week for at least 20 days before the date of a 
meeting of the [May regular term of a] commissioners court at which 
the court will make a depository contract, the county judge shall 
place over the judge's name in a newspaper published in the county a 
notice that the commissioners court intends to make the contract.  A 
notice shall also be posted at the courthouse door of the county.
	SECTION ____.  Section 116.023(a), Local Government Code, is 
amended to read as follows:
	(a)  A bank in the county that wants to be a county depository 
must deliver its application to the county judge on or before a date 
set by the commissioners court [the first day of the term of the 
commissioners court at which depositories are to be selected].
	SECTION ____.  Section 116.024(a), Local Government Code, is 
amended to read as follows:
	(a)  At the meeting [10 a.m. on the first day of each term] at 
which banks are to be selected as county depositories, the 
commissioners court shall:
		(1)  enter in the minutes of the court all applications 
filed with the county judge;
		(2)  consider all applications;  and                                          
		(3)  select the qualified applicants that offer the 
most favorable terms and conditions for the handling of the county 
funds.
	SECTION ____.  Sections 117.021(a) and (c), Local Government 
Code, are amended to read as follows:
	(a)  The commissioners court of a county [at its May regular 
term after a general election for state and county officers] shall 
receive an application from a federally insured bank or banks in the 
county to be the depository for a special account held by the county 
clerk and the district clerks.  The county shall contract with a 
federally insured bank or banks under this section and enter a 
contract with each selected bank for a two-year or four-year 
[contract] term.  The contract may, on request by the clerk and 
approval of the commissioners court, include a provision that the 
funds in a special account earn interest.  A request from the clerk 
that an account earn interest must be made, in writing, to the 
commissioners court not later than the 30th day before the date the 
county gives notice under Section 117.022 and shall be entered in 
the minutes of the court. On expiration of a contract under this 
subsection, the contract may be renewed for two years under terms 
negotiated by the commissioners court.
	(c)  A bank must file its application on or before a date set 
by the commissioners court [10 a.m. on the first day of the term].  
The application must be accompanied by a certified check or 
cashier's check for at least one-half of one percent of the average 
daily balance of the registry funds held by the county clerk and the 
district clerk during the preceding calendar year, as determined by 
the county clerk and the district clerk on or before the 10th day 
before the date the application is required to be filed.  A 
certified check or cashier's check that complies with this section 
is a good-faith guarantee on the part of the applicant that if its 
application is accepted it will execute the bond required under 
this subchapter.  If the bank selected as depository does not 
provide the bond, the county shall retain the amount of the check as 
liquidated damages and the county shall select another depository 
as provided by this subchapter.
	SECTION ____.  Section 117.023(a), Local Government Code, is 
amended to read as follows:
	(a)  At the meeting [10 a.m. on the first day of each term] at 
which banks are to be selected [the commissioners court is required 
to receive applications] to serve as the depository for registry 
funds held by the county clerk and the district clerk, the 
commissioners court shall enter the applications in the minutes of 
the court and select a depository.
	SECTION ____.  Section 117.025(b), Local Government Code, is 
amended to read as follows:
	(b)  A designation under Subsection (a) is effective until 
the designation and qualification of a successor depository or 
until April 15 following the expiration of the contract [term in 
which a depository must be selected under this subchapter], 
whichever is earlier.  If the term of a depository ends before the 
designation and qualification of a successor, the depository shall 
pay to the clerk in whose name the account is carried all registry 
funds due or on deposit.
	SECTION ____.  Sections 116.021(c) and 117.021(d), Local 
Government Code, are repealed.