82R865 TJB-F

By: Duncan S.B. No. 373

A BILL TO BE ENTITLED

AN ACT

relating to the offices of county treasurer and county auditor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Article 103.003(b), Code of Criminal Procedure, is amended to read as follows:

(b) A community supervision and corrections department and a county treasurer may collect money payable under this title with the written approval of the clerk of the court or fee officer, and may collect money payable as otherwise provided by law.

SECTION 2. Articles 103.004(a) and (c), Code of Criminal Procedure, are amended to read as follows:

(a) Except as provided by Subsection [Subsections (b) and] (c), an officer who collects recognizances, bail bonds, fines, forfeitures, judgments, jury fees, and other obligations recovered in the name of the state under any provision of this title shall deposit the money in the county treasury not later than the next regular business day after the date that the money is collected. If it is not possible for the officer to deposit the money in the county treasury by that date, the officer shall deposit the money in the county treasury as soon as possible, but not later than the fifth [third] regular business day after the date that the money is collected.

(c) The commissioners court of a county with a population of less than 50,000 may authorize an officer who is required to deposit money under Subsection (a) to deposit the money in the county treasury not later than the 15th [30th] day after the date that the money is collected.

SECTION 3. Section 83.003(a), Local Government Code, is amended to read as follows:

(a) A person who first takes office as [Within one year after the date on which a person first takes office as county treasurer, the] county treasurer must successfully complete an introductory course of instruction in the performance of the duties of county treasurer:

(1) within one year after the date on which the person takes office if elected to a full term; or

(2) at the earliest available date if appointed by the commissioners court or elected to an unexpired term of county treasurer.

SECTION 4. Chapter 83, Local Government Code, is amended by adding Sections 83.008 and 83.009 to read as follows:

Sec. 83.008. SURETY BOND ON ASSISTANT TREASURERS, DEPUTIES, AND EMPLOYEES; SELF-INSURANCE. (a) If a county treasurer employs only one assistant or deputy, the county treasurer shall execute a surety bond to cover the assistant or deputy and shall execute a schedule surety bond or a blanket surety bond to cover all other employees of the office. If a county treasurer employs more than one assistant or deputy, the county treasurer shall execute a blanket surety bond to cover the assistants or deputies and all other employees of the office.

(b) Instead of a county treasurer obtaining a bond as required by Subsection (a), the county may self-insure against losses that would have been covered by the bond.

(c) The bond under this section must be conditioned in the same manner and must be for the same amount as the bond for the county treasurer under Section 83.002. The bond must be made payable to the county judge for the use and benefit of the county treasurer.

Sec. 83.009. ASSISTANT TREASURER OR TREASURY DEPUTY. (a) The appointment of an assistant treasurer or treasury deputy must be in writing, be signed by the county treasurer, and bear the seal of the county court.

(b) A person appointed as an assistant treasurer or treasury deputy, before beginning to perform the duties of office, must take and subscribe the official oath, which, together with the certificate of the officer administering the oath, must be endorsed on the appointment. The appointment and oath shall be deposited and recorded in the county clerk's office.

(c) An assistant treasurer or treasury deputy acts in the name of the county treasurer as directed by the county treasurer and may perform all official acts that the county treasurer may perform at the discretion of the county treasurer.

SECTION 5. Sections 111.0707 and 111.07075, Local Government Code, are amended to read as follows:

Sec. 111.0707. SPECIAL BUDGET FOR REVENUE FROM INTERGOVERNMENTAL CONTRACTS. (a) The county auditor shall certify to the commissioners court the receipt of all revenue from intergovernmental contracts that is available for disbursement in a fiscal year but not included in the budget for that fiscal year. On certification, the court shall adopt a special budget for the limited purpose of spending the revenue from intergovernmental contracts for its intended purpose.

(b) The county treasurer shall notify the county auditor of the receipt of all revenue from intergovernmental contracts not previously included in a special budget or the annual budget for that fiscal year.

Sec. 111.07075. SPECIAL BUDGET FOR REVENUE RECEIVED AFTER START OF FISCAL YEAR. (a) The county auditor shall certify to the commissioners court the receipt of revenue from a new source not anticipated before the adoption of the budget and not included in the budget for that fiscal year. On certification, the court may adopt a special budget for the limited purpose of spending the revenue for general purposes or for any of its intended purposes.

(b) The county treasurer shall notify the county auditor of the receipt of all revenue from a new source not anticipated before the adoption of the budget and not previously included in a special budget or the annual budget for that fiscal year.

SECTION 6. Section 111.091(b), Local Government Code, is amended to read as follows:

(b) The county auditor shall enter to an appropriation account each order for payment [warrant] drawn against that appropriation.

SECTION 7. Section 111.092, Local Government Code, is amended to read as follows:

Sec. 111.092. DEPARTMENTAL EXPENSES NOT TO EXCEED APPROPRIATIONS. The county auditor shall oversee the payment [warrant] process to ensure that the expenses of any department do not exceed the budget appropriations for that department.

SECTION 8. Subchapter A, Chapter 112, Local Government Code, is amended by adding Section 112.0045 to read as follows:

Sec. 112.0045. DELEGATION TO COUNTY TREASURER. With the approval of the county clerk and the commissioners court, the county treasurer may perform the duties of the county clerk under Section 112.004.

SECTION 9. Subchapter A, Chapter 113, Local Government Code, is amended by adding Section 113.0001 to read as follows:

Sec. 113.0001. DEFINITIONS. In this chapter:

(1) "Depository" means the financial institution selected under Section 116.021 for safekeeping of the county treasury.

(2) "Depository account" means an account covered by the depository agreement, including required collateral.

(3) "Money" means an item or medium of exchange such as coins, currency, checks, or other means of payment, including electronic payment.

(4) "Treasury" means the money belonging to the county held by the county treasurer.

SECTION 10. Section 113.008, Local Government Code, is amended to read as follows:

Sec. 113.008. RECONCILIATION OF DEPOSITORY ACCOUNTS [COUNTY CHECKS AND WARRANTS]. (a) The county depository shall provide statements of all bank activity and documentation supporting a statement's transactions not less than once a month [all canceled checks and warrants and supporting statements] to the county treasurer.

(b) The county depository shall provide the information required by Subsection (a) to the official responsible for the account [Subsection (a) does not apply] if:

(1) the checks and orders for payment [warrants] are payable from funds under the direct authority of an official other than the county treasurer as provided by statute; and

(2) the official has not delegated the responsibility for reconciliation under Subsection (b-1).

(b-1) The [exemption provided by this subsection does not apply if the] official may request [requests] the county treasurer to be responsible for the reconciliation of the checks and orders for payment [warrants] payable from the funds that are under the direct authority of the official. An official who fails to reconcile the official's special accounts monthly shall transfer responsibility for account reconciliation to the county treasurer. Unless the official and county treasurer set another period in writing for the duration of a transfer under this section, the transfer is effective for the duration of the term of office for the designating officer.

(c) In fulfilling the requirements of Subsections [Subsection] (a) and (b), the county depository shall provide, at the direction of the county treasurer and in accordance with the rules adopted by the Texas State Library and Archives Commission, originals, optical images, or electronic images of:

(1) [original] canceled checks and orders for payment [warrants]; [or]

(2) deposit detail;

(3) debit and credit memoranda; or

(4) electronic transmission detail [optical images of the front and back of canceled checks and warrants if the optical images are retained in accordance with the rules adopted by the Texas State Library and Archives Commission].

(d) The county treasurer shall:

(1) reconcile all balances and transactions for each treasury account in the county depository's statement of activity to the transactions and balances shown on the treasurer's records [the canceled checks and warrants with the account records of the depository]; and

(2) ensure all financial adjustments are made regarding the depository account as required.

(e) In this section, a reference to the county treasurer includes a person performing the duties of the county treasurer.

(f) An official with special funds in the depository bank shall:

(1) reconcile all balances and transactions in the statement of activity to the transactions and balances shown on the official's records; and

(2) each month, ensure all financial adjustments resulting from the reconciliation are reported to the county auditor for entry in the general set of records and reflected in the cash receipts and disbursement registers of the county treasurer.

SECTION 11. Sections 113.021 and 113.022, Local Government Code, are amended to read as follows:

Sec. 113.021. REQUIREMENT THAT MONEY BE DEPOSITED WITH COUNTY TREASURER [AND PUT INTO SPECIAL FUND]; INTEREST. (a) The fees, commissions, funds, and other money belonging to a county shall be deposited with the county treasurer by the person [officer] who collects the money. The person [officer] must deposit the money in accordance with any applicable procedures prescribed by or under Section 112.001 or 112.002. However, the county tax assessor-collector must deposit the money in accordance with the procedures prescribed by or under the Tax Code and other laws.

(b) The county treasurer shall deposit the money in the county depository in the proper [a special] fund to the credit of the person or department collecting [officer who collected] the money. [If the money is fees, commissions, or other compensation collected by an officer who is paid on a salary basis, the appropriate special fund is the applicable salary fund created under Chapter 154.]

(c) The interest accruing on the money in the [special] fund is for the benefit of the county in accordance with other law.

Sec. 113.022. TIME FOR MAKING DEPOSITS. (a) A county officer or other person who receives money [funds] shall deposit the money [funds] with the county treasurer on or before the next regular business day after the date on which the money is [funds are] received. If this deadline cannot be [is not] met, the officer or person must deposit the money [funds], without exception, on or before the fifth [seventh] business day after the day on which the money is [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 15 [30] days after the date the funds are received.

(b) A county treasurer shall deposit the money [funds] received under Subsection (a) in the county depository in accordance with Section 116.113(a). In all cases, the treasurer shall deposit the money [funds] on or before the seventh business day after the date the treasurer receives the money [funds].

SECTION 12. 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 ELECTRONIC TRANSMISSION [OR WARRANT]; LOST OR DESTROYED INSTRUMENT.

SECTION 13. Sections 113.041(b), (c), (d), (e), (g), and (h), Local Government Code, are amended to read as follows:

(b) Except as provided by Chapter 156, a person may not spend or withdraw money from the county treasury except by a check or order for payment [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 disburse [pay] money out of the county treasury without an order for payment [a certificate or warrant] from an officer who is authorized by law to issue the order [certificate or warrant].

(d) If the county 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. The treasurer may require that the claim supporting the order be verified by an affidavit.

(e) If the county treasurer is satisfied that an original check or other order drawn on the county treasury by a proper authority is lost or destroyed, the treasurer may issue a duplicate instrument in place of the original. The treasurer may not issue a duplicate until an applicant has filed an affidavit with the treasurer that states that the applicant is the true owner of the original instrument and that, to the best knowledge and belief of the applicant, the original is lost or destroyed.

(g) If, after issuance of the duplicate instrument, the county treasurer determines that the duplicate was issued improperly or that the applicant or person to whom the duplicate was issued is not the owner of the original instrument, the treasurer shall immediately stop payment or demand [the return of the duplicate, if it is unpaid, or] the return of the amount paid by the county, if the duplicate is paid. If the person fails to return the [duplicate instrument or the] amount of the instrument, the treasurer shall institute a suit for recovery [on the bond] through the office of the county or district attorney. Venue for the suit lies in the county in which the treasurer serves.

(h) A county treasurer may not honor a check or order for payment [warrant] on the interest and sinking fund provided for a bond of the county or pay out or divert money in that fund except to pay the principal of or interest on the bond or invest money in securities as provided by law.

SECTION 14. The heading to Section 113.042, Local Government Code, is amended to read as follows:

Sec. 113.042. ENDORSEMENT BY COUNTY TREASURER; OTHER [WARRANT] REQUIREMENTS FOR ORDER FOR PAYMENT.

SECTION 15. Sections 113.042(a), (b), (e), (f), and (g), Local Government Code, are amended to read as follows:

(a) On the presentation of an order for payment [a warrant], check, or voucher[, or order] drawn by a proper authority, and if there are sufficient funds for payment on deposit in the account against which the instrument is drawn, the county treasurer shall endorse on the face of the instrument the order to pay the named payee and shall charge the amount 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 an order for payment [a warrant] drawn by a proper authority, but the county treasurer shall, on the presentation of the order [warrant], endorse the order [warrant] and deliver it to the payee, who may present it to the county depository for payment.

(e) Each check or order for payment [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 order for payment [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 an order for payment [warrants] against the county treasury for any purpose except as may be provided by the Code of Criminal Procedure.

SECTION 16. Section 113.043, Local Government Code, is amended to read as follows:

Sec. 113.043. COUNTERSIGNATURE BY COUNTY AUDITOR. In a county with a county auditor, the county treasurer and the county depository may not pay a check or order for payment [warrant] unless it is countersigned by the county auditor to validate it as a proper and budgeted item of expenditure. This section does not apply to a check or order [warrant] for jury service or for restitution collected on behalf of an individual as authorized by law.

SECTION 17. Section 113.046, Local Government Code, is amended to read as follows:

Sec. 113.046. REGISTER OF ORDERS FOR PAYMENT [WARRANTS] ISSUED BY JUDGE OR CLERK. (a) The county auditor shall maintain a register of the orders for payment [warrants] issued on the county treasurer by a judge or by the district or county clerk. A register entry for an order [a warrant] must indicate the date of payment by the treasurer.

(b) On a form prepared by the auditor, the clerk or judge shall furnish the auditor with a daily itemized report that specifies the orders for payment [warrants] issued, the number of orders [warrants], the amounts of the orders [warrants], the names of the persons to whom the orders [warrants] are payable, and the purposes of the orders [warrants].

SECTION 18. Section 113.048(c), Local Government Code, is amended to read as follows:

(c) A system or method of payment authorized by this section may be used in lieu of or in addition to the issuance of [warrants or] checks or orders for payment authorized under this subchapter.

SECTION 19. The heading to Section 113.061, Local Government Code, is amended to read as follows:

Sec. 113.061. CLAIMS INFORMATION; PAYMENT OWED BY THE COUNTY [REGISTER; CLASSES OF CLAIMS].

SECTION 20. Section 113.061, Local Government Code, is amended by amending Subsections (a) and (b) and adding Subsections (a-1) and (b-1) to read as follows:

(a) The county treasurer shall maintain a record of claims [in which the treasurer shall register each claim] against the county. The treasurer shall record [register] the claims as [in the order in which] they are presented by the officer authorizing the expenditure.

(a-1) In a county without a county auditor, a claim must be submitted to the county treasurer for presentation to the commissioners court for approval and must be encumbered for payment by providing notice of the expenditure to the county treasurer, including a copy of the requisition or purchase. The treasurer shall place an encumbrance against the proper account until the claim is allowed or refused by the commissioners court. [If more than one claim is presented at the same time, the treasurer shall register them in the order of their date.]

(b) The county treasurer may not pay a claim, or any part of it, until the claim has been encumbered [registered]. An officer may not order payment of [receive] a claim, or any part of it, [in payment of any indebtedness owed to the county] until the claim has been encumbered [registered].

(b-1) An encumbrance under this section does not guarantee approval of the claim by the official authorized to approve the claim.

SECTION 21. Section 113.063, Local Government Code, is amended to read as follows:

Sec. 113.063. CLAIMS INFORMATION LIST; INDEBTEDNESS TO THE COUNTY. (a) Each officer who collects a fine, penalty, forfeiture, judgment, tax, or other indebtedness owed to the county in a claim against the county shall keep a descriptive list of those claims. When the officer reports the collection, the officer shall file with the report a list that states:

(1) the party in whose favor the claim was issued;

(2) [the class and register number of the claim;

[(3)] the name of the party paying in the claim;

(3) [(4)] the amount received; and

(4) [(5)] the purpose for which the amount was received.

(b) The officer shall give the claims and the report to the county treasurer, who shall give the officer a receipt. The treasurer shall determine the time and manner of making [file the list with] the [treasurer's] report [in the office of the county clerk].

SECTION 22. Section 114.022, Local Government Code, is amended by adding Subsection (c) to read as follows:

(c) A county publishing monthly financial reports under Section 114.023 that publishes its comprehensive annual financial report on its Internet website is not required to publish an exhibit under this section.

SECTION 23. Section 114.023(b), Local Government Code, is amended to read as follows:

(b) In addition to information considered necessary by the auditor or required by the commissioners court, the report must contain:

(1) all of the facts of interest related to the financial condition of the county;

(2) a consolidated balance sheet;

(3) a complete statement of the balances on hand at the beginning and end of the month;

(4) a statement of the aggregate receipts and disbursements of each fund;

(5) a statement of transfers to and from each fund;

(6) a statement of the bond and order for payment [warrant] indebtedness with corresponding rates of interest; and

(7) a summarized budget statement that shows:

(A) the expenses paid from the budget for each budgeted officer, department, or institution during that month and for the period of the fiscal year inclusive of the month for which the report is made;

(B) the encumbrances against the budgets; and

(C) the amounts available for further expenditures.

SECTION 24. Section 115.002(c), Local Government Code, is amended to read as follows:

(c) The auditor shall carefully examine the report made under Section 114.026 by the county treasurer, together with the canceled orders for payment [warrants] that have been paid. The auditor shall verify those orders [warrants] with the register of orders [warrants] issued as shown on the auditor's books.

SECTION 25. Section 116.002(b), Local Government Code, is amended to read as follows:

(b) Orders for payment [Warrants], checks, and vouchers evidencing the money deposited in the county depository under Subsection (a) are subject to audit and countersignature as provided by law.

SECTION 26. Section 116.115, Local Government Code, is amended to read as follows:

Sec. 116.115. CLEARINGHOUSE FOR MULTIPLE DEPOSITORIES. If the funds of a county are deposited with more than one depository, the commissioners court shall by order name one of the depositories to act as a clearinghouse for the others. All county orders for payment [warrants] are finally payable at the depository named as the clearinghouse.

SECTION 27. Sections 116.116(a) and (c), Local Government Code, are amended to read as follows:

(a) A county depository shall pay a check or order for payment [warrant] drawn by the county treasurer against funds deposited with the depository on presentation of the check or order [warrant] if the funds subject to the check or order [warrant] are in the possession of the depository, and, in the case of a time deposit, if the agreed period of notice has expired.

(c) An order for payment [A warrant] or check, including an order [a warrant] or check issued prior to September 1, 1993, issued by the county treasurer in settlement of a claim against a county that is not presented for payment before the 366th day following the date of issuance is overdue and nonnegotiable. The sum of the overdue order [warrant] or check shall be credited as revenue to the county if delivery to the payees was attempted or occurred within a reasonable time following the issuance of the order [warrant] or check. No right to full settlement of a proper unpaid claim is extinguished by this subsection.

SECTION 28. The heading to Section 116.120, Local Government Code, is amended to read as follows:

Sec. 116.120. COLLECTION OF CERTAIN OVERDUE COUNTY ORDERS FOR PAYMENT [WARRANTS] OR CHECKS.

SECTION 29. Sections 116.120(a) and (b), Local Government Code, are amended to read as follows:

(a) This section applies only to an order for payment [a warrant] or check issued by a county treasurer in settlement of a claim against a county that has not been presented for payment.

(b) A person attempting to recover funds from the county for a check or order for payment [warrant] issued by the county treasurer may not charge the person to whom the check or order [warrant] was issued and on whose behalf the attempted recovery is made, or that person's successors or assigns, a fee in an amount equal to more than 10 percent of the face value of the check or order [warrant].

SECTION 30. Section 116.155, Local Government Code, is amended to read as follows:

Sec. 116.155. FAILURE OF DEPOSITORY TO PAY CHECK OR ORDER FOR PAYMENT [WARRANT]. A depository that does not pay a check or order for payment [warrant] as required by Section 116.116(a) is liable for and shall pay to the holder 10 percent of the amount of the check or order for payment [warrant], and the commissioners court shall revoke the order creating the depository.

SECTION 31. Section 118.023(c), Local Government Code, is amended to read as follows:

(c) In this section, "ex officio services" includes services in relation to roads, bridges, and ferries; issuing and taking receipts for jury scrip or county orders for payment [warrants]; services in habeas corpus cases; making out bar dockets; keeping records of trust funds; filing and docketing all papers for the commissioners court; keeping road overseers' books and lists of hands; recording all collection returns of delinquent insolvents; recording county treasurer's reports; recording reports of justices of the peace; recording reports of animals slaughtered; and services in connection with elections.

SECTION 32. Section 130.902(c), Local Government Code, is amended to read as follows:

(c) A change fund may not be used to make loans or advances or to cash checks or orders for payment [warrants] of any kind.

SECTION 33. Section 130.905(b), Local Government Code, is amended to read as follows:

(b) In making payments to support the paupers that the county is required to support, the commissioners court, with the concurrence of the county auditor, may make one payment to the head of the county welfare department. The head of the county welfare department may disburse the money to the paupers on orders for payment [warrants] designed by the county auditor. The orders [warrants] are subject to audit by the county auditor at any time. The disbursements must be reported on forms and at times prescribed by the auditor.

SECTION 34. Section 130.909(c), Local Government Code, is amended to read as follows:

(c) The petty cash fund may not be used to make loans or advances or to cash checks or orders for payment [warrants] of any kind.

SECTION 35. (a) Article 103.004(b), Code of Criminal Procedure, is repealed.

(b) The following sections of the Local Government Code are repealed:

(1) Sections 113.061(c), (d), (e), and (f);

(2) Section 113.062; and

(3) Section 113.066.

SECTION 36. (a) A county treasurer required to execute a surety bond under Section 83.008, Local Government Code, as added by this Act, shall execute a surety bond not later than October 1, 2011.

(b) The change in law made by Section 83.009, Local Government Code, as added by this Act, applies to an assistant treasurer or treasury deputy appointed on or after the effective date of this Act. An assistant treasurer or treasury deputy appointed before the effective date of this Act is covered by the law in effect when the assistant treasurer or treasury deputy was appointed.

SECTION 37. This Act takes effect September 1, 2011.