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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 116.021(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 shall select by the |
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process provided by this subchapter or by Subchapter C, Chapter |
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262, one or more banks in this state [the county] and enter a |
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contract with each selected bank for the deposit of the county's |
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public funds. The county shall contract with a bank under this |
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section for a two-year or four-year contract term. On expiration of |
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a contract under this section, the contract may be renewed for two |
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years under terms negotiated by the commissioners court. |
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SECTION 2. Sections 116.023(a) and (d), Local Government |
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Code, are amended to read as follows: |
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(a) A bank in this state [the county] that wants to be a |
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county depository must deliver its application to the county judge |
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or a designated representative of the judge on or before a date set |
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by the commissioners court that is no later than the 60th day before |
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the date of the expiration of the existing depository contract. |
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(d) A bank in this state [the county] that wants to be a |
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county subdepository must comply with Subsections (a) and (b)(1). |
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The subdepository's application must include a proposal outlining |
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its security for the county public funds to be held in addition to |
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revenue offers. |
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SECTION 3. Section 116.027(a), Local Government Code, is |
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amended to read as follows: |
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(a) If no application to be a county depository is |
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submitted, or if all of the applications are declined, the |
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commissioners court shall deposit the funds of the county with any |
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one or more banks in this state [the county or in the adjoining |
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counties] in the amounts and for the periods as the commissioners |
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court considers advisable. |
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SECTION 4. 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 5. Section 117.021(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 shall select by the |
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process provided by this subchapter or by Subchapter C, Chapter |
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262, a federally insured bank or banks in this state [the county] to |
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be the depository for a special account held by the county clerk and |
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the district clerks. The county shall enter a contract with the |
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selected federally insured bank or banks for a two-year or |
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four-year term. The original term can be renewed once for an |
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additional two-year term. The contract may, on request by the |
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clerk and approval of the commissioners court, include a provision |
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that the funds in a special account earn interest. A request from |
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the clerk that an account earn interest must be made, in writing, to |
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the commissioners court not later than the 30th day before the date |
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the county gives notice under Section 117.022 and shall be entered |
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in the minutes of the court. |
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SECTION 6. Section 117.113, Local Government Code, is |
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amended to read as follows: |
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Sec. 117.113. DEPOSITORY CONTRACT. The commissioners court |
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of the county collecting the funds may contract with one or more |
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banks in this state [the county] for the deposit of the funds in a |
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special account to be called the "registry fund." |
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SECTION 7. Section 117.115, Local Government Code, is |
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amended to read as follows: |
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Sec. 117.115. APPLICATIONS. A bank in this state [the |
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county] that wants to be a special depository for the registry fund |
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is subject to the same application provisions as those prescribed |
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by Section 116.023 for the applicants for the county depository |
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contract. |
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SECTION 8. Sections 116.026 and 117.026, Local Government |
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Code, are repealed. |
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SECTION 9. This Act takes effect September 1, 2023. |