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A BILL TO BE ENTITLED
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AN ACT
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relating to the selection of depositories for certain county funds, |
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including funds held by a county or district clerk. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 116.021(a), Local Government Code, is |
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amended to read as follows: |
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(a) The commissioners court of a county [at its May regular
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term immediately following each general election for state and
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county officers] shall select by the process described by Section |
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116.024 or by negotiated bid [contract with] one or more banks in |
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the county and enter a contract with each selected bank for the |
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deposit of the county's public funds. The county shall contract |
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with a bank under this section for a two-year or four-year contract |
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term. |
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SECTION 2. Section 116.022(a), Local Government Code, is |
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amended to read as follows: |
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(a) Once each week for at least 20 days before the date of a |
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meeting of the [May regular term of a] commissioners court at which |
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the court will make a depository contract, the county judge shall |
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place over the judge's name in a newspaper published in the county a |
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notice that the commissioners court intends to make the contract. A |
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notice shall also be posted at the courthouse door of the county. |
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SECTION 3. Section 116.023(a), Local Government Code, is |
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amended to read as follows: |
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(a) A bank in the county that wants to be a county depository |
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must deliver its application to the county judge on or before a date |
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set by the commissioners court [the first day of the term of the
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commissioners court at which depositories are to be selected]. |
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SECTION 4. Section 116.024(a), Local Government Code, is |
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amended to read as follows: |
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(a) At the meeting [10 a.m. on the first day of each term] at |
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which banks are to be selected as county depositories, the |
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commissioners court shall: |
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(1) enter in the minutes of the court all applications |
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filed with the county judge; |
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(2) consider all applications; and |
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(3) select the qualified applicants that offer the |
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most favorable terms and conditions for the handling of the county |
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funds. |
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SECTION 5. Sections 117.021(a) and (c), Local Government |
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Code, are amended to read as follows: |
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(a) The commissioners court of a county [at its May regular
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term after a general election for state and county officers] shall |
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receive an application from a federally insured bank or banks in the |
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county to be the depository for a special account held by the county |
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clerk and the district clerks. The county shall select by the |
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process described by Section 116.024 or by negotiated bid [contract
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with] a federally insured bank or banks under this section and enter |
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a contract with each selected bank for a two-year or four-year |
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[contract] term. The contract may, on request by the clerk and |
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approval of the commissioners court, include a provision that the |
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funds in a special account earn interest. A request from the clerk |
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that an account earn interest must be made, in writing, to the |
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commissioners court not later than the 30th day before the date the |
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county gives notice under Section 117.022 and shall be entered in |
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the minutes of the court. |
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(c) A bank must file its application on or before a date set |
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by the commissioners court [10 a.m. on the first day of the term]. |
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The application must be accompanied by a certified check or |
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cashier's check for at least one-half of one percent of the average |
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daily balance of the registry funds held by the county clerk and the |
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district clerk during the preceding calendar year, as determined by |
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the county clerk and the district clerk on or before the 10th day |
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before the date the application is required to be filed. A |
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certified check or cashier's check that complies with this section |
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is a good-faith guarantee on the part of the applicant that if its |
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application is accepted it will execute the bond required under |
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this subchapter. If the bank selected as depository does not |
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provide the bond, the county shall retain the amount of the check as |
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liquidated damages and the county shall select another depository |
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as provided by this subchapter. |
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SECTION 6. Section 117.023(a), Local Government Code, is |
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amended to read as follows: |
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(a) At the meeting [10 a.m. on the first day of each term] at |
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which banks are to be selected [the commissioners court is required
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to receive applications] to serve as the depository for registry |
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funds held by the county clerk and the district clerk, the |
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commissioners court shall enter the applications in the minutes of |
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the court and select a depository. |
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SECTION 7. Section 117.025(b), Local Government Code, is |
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amended to read as follows: |
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(b) A designation under Subsection (a) is effective until |
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the designation and qualification of a successor depository or |
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until April 15 following the expiration of the contract [term in
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which a depository must be selected under this subchapter], |
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whichever is earlier. If the term of a depository ends before the |
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designation and qualification of a successor, the depository shall |
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pay to the clerk in whose name the account is carried all registry |
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funds due or on deposit. |
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SECTION 8. Sections 116.021(c) and 117.021(d), Local |
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Government Code, are repealed. |
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SECTION 9. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |