By: Duncan  S.B. No. 373
         (In the Senate - Filed January 19, 2011; February 2, 2011,
  read first time and referred to Committee on Intergovernmental
  Relations; April 14, 2011, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 5, Nays 0;
  April 14, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 373 By:  Nichols
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the office of county treasurer.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (b), Article 103.003, 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.  Subsections (a) and (c), Article 103.004, 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.  Subsection (a), Section 83.003, Local Government
  Code, is amended to read as follows:
         (a)  A [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.  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 7.  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.  Except as provided by Subsection
  (g), 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)  Except as provided by Subsection (g), 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.
         (g)  Subsections (b-1) and (f)(2) do not apply to a special
  fund administered by an attorney representing the state under
  Chapter 18, 47, or 59, Code of Criminal Procedure.
         SECTION 8.  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 9.  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 10.  Section 113.041, Local Government Code, is
  amended by amending Subsections (b) through (e), (g), and (h) and
  adding Subsection (d-1) 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 made available and verified
  by an affidavit after the claim is approved for payment by the
  commissioners court.
         (d-1)  In a county without a county auditor, the county
  treasurer may not make a payment if the treasurer has reason to
  believe that the check or order for payment is not valid as a proper
  and budgeted item of expenditure.  The treasurer shall report the
  matter to the commissioners court for consideration and direction.
         (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 11.  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 12.  Subsections (a), (b), (e), (f), and (g),
  Section 113.042, 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 13.  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 14.  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 15.  Subsection (c), Section 113.048, 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 16.  The heading to Section 113.061, Local
  Government Code, is amended to read as follows:
         Sec. 113.061.  CLAIMS REGISTER[; CLASSES OF CLAIMS].
         SECTION 17.  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, or payment
  obligation 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 receipt number issued in documentation of
  payment [class and register number of the claim];
               (3)  the name of the party paying in the claim;
               (4)  the amount received; and
               (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 18.  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 19.  Subsection (b), Section 114.023, 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 20.  Subsection (c), Section 115.002, 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 21.  Subsection (b), Section 116.002, 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 22.  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 23.  Subsections (a) and (c), Section 116.116, 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 24.  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 25.  Subsections (a) and (b), Section 116.120, 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 26.  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 27.  Subsection (c), Section 118.023, 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 28.  Subsection (c), Section 130.902, 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 29.  Subsection (b),  Section 130.905, 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 30.  Subsection (c), Section 130.909, 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 31.  (a)  Subsection (b), Article 103.004, Code of
  Criminal Procedure, is repealed.
         (b)  The following sections of the Local Government Code are
  repealed:
               (1)  Subsections (c), (d), (e), and (f), Section
  113.061;
               (2)  Section 113.062; and
               (3)  Section 113.066.
         SECTION 32.  (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 33.  This Act takes effect September 1, 2011.
 
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