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A BILL TO BE ENTITLED
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AN ACT
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relating to the location of a bank eligible to be selected as a |
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depository or subdepository of county public money, including money |
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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 116.026, Local Government Code, is |
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amended to read as follows: |
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Sec. 116.026. APPLICANTS OUTSIDE COUNTY. (a) If no bank |
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located in the county applies to be designated as the county |
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depository, the commissioners court may advertise, in the same |
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manner provided by Section 116.022 for advertising for a depository |
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within the county, for applications from banks in an adjoining |
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county or any other county in this state. |
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(b) If only one bank located in the county applies to be |
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designated as the county depository, the commissioners court may |
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reject the applicant if the applicant proposes terms that: |
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(1) are not in the best interest of the county; |
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(2) are not financially competitive with the financial |
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market outside the county; or |
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(3) impose noncompetitive fees. |
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(c) If the commissioners court rejects the applicant under |
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Subsection (b), the commissioners court may advertise, in the same |
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manner provided by Section 116.022 for advertising for a depository |
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within the county, for applications from banks in an adjoining |
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county. |
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SECTION 2. Subchapter B, Chapter 116, Local Government |
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Code, is amended by adding Section 116.028 to read as follows: |
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Sec. 116.028. SUCCESSOR BANK AS COUNTY DEPOSITORY. (a) If |
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a bank selected to be a county depository and holding county funds |
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is sold to another bank in an adjoining county, the successor bank |
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in the adjoining county may continue to serve as a county depository |
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and apply and be selected as a county depository if the successor |
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bank: |
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(1) continues to have an office in an adjoining |
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county; and |
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(2) timely applies and is selected to be a county |
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depository in a manner that ensures no lapse of service as a county |
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depository. |
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(b) If a bank selected as a county depository and holding |
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county funds closes, a branch of the bank in an adjoining county may |
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continue to serve as a county depository and apply to be a county |
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depository if the successor bank: |
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(1) continues to have an office in an adjoining |
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county; and |
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(2) timely applies and is selected to be a county |
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depository in a manner that ensures no lapse of service as a county |
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depository. |
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SECTION 3. Section 116.116(b), Local Government Code, is |
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amended to read as follows: |
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(b) If the commissioners court selects a depository in |
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another county [under Section 116.026], the depository shall file a |
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statement with the county treasurer designating the place in the |
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county governed by the commissioners court where, and the person by |
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whom, deposits by the treasurer may be received and checks will be |
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paid, or the place in another county where deposits may be made and |
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checks may be paid. The statement must be filed within five days |
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after the date notice is given to the depository of its selection. |
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SECTION 4. Section 117.026(a), Local Government Code, is |
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amended to read as follows: |
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(a) Subject to Sections 116.026 and 116.028, the [The] |
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commissioners court may select a federally insured bank or banks |
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located outside the county to serve as the depository under this |
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subchapter if: |
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(1) for any reason no bank located in the county |
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applies to be designated as the depository; |
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(2) an application is not made for the entire amount of |
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the registry funds; |
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(3) the commissioners court rejects all the |
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applications submitted; |
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(4) a depository selected by the commissioners court |
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fails to qualify; |
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(5) a depository becomes insolvent; or |
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(6) a new depository is selected because of the |
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failure of the regular depository to execute a new bond under |
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Section 117.057. |
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SECTION 5. Section 117.118, Local Government Code, is |
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amended to read as follows: |
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Sec. 117.118. APPLICATION OF COUNTY DEPOSITORY LAW. |
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Matters regarding special depositories for the registry fund are |
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subject to the same provisions as those prescribed by Chapter 116 |
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regarding county depositories, including Sections 116.026 and |
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116.028. |
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SECTION 6. 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, 2023. |