| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to the location of a bank eligible to be selected as a |
|
|
depository or subdepository of county public money, including money |
|
|
held by a county or district clerk. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 116.026, Local Government Code, is |
|
|
amended to read as follows: |
|
|
Sec. 116.026. APPLICANTS OUTSIDE COUNTY. (a) If no bank |
|
|
located in the county applies to be designated as the county |
|
|
depository, the commissioners court may advertise, in the same |
|
|
manner provided by Section 116.022 for advertising for a depository |
|
|
within the county, for applications from banks in an adjoining |
|
|
county or any other county in this state. |
|
|
(b) If only one bank located in the county applies to be |
|
|
designated as the county depository, the commissioners court may |
|
|
reject the applicant if the applicant proposes terms that: |
|
|
(1) are not in the best interest of the county; |
|
|
(2) are not financially competitive with the financial |
|
|
market outside the county; or |
|
|
(3) impose noncompetitive fees. |
|
|
(c) If the commissioners court rejects the applicant under |
|
|
Subsection (b), the commissioners court may advertise, in the same |
|
|
manner provided by Section 116.022 for advertising for a depository |
|
|
within the county, for applications from banks in an adjoining |
|
|
county. |
|
|
SECTION 2. Subchapter B, Chapter 116, Local Government |
|
|
Code, is amended by adding Section 116.028 to read as follows: |
|
|
Sec. 116.028. SUCCESSOR BANK AS COUNTY DEPOSITORY. (a) If |
|
|
a bank selected to be a county depository and holding county funds |
|
|
is sold to another bank in an adjoining county, the successor bank |
|
|
in the adjoining county may continue to serve as a county depository |
|
|
and apply and be selected as a county depository if the successor |
|
|
bank: |
|
|
(1) continues to have an office in an adjoining |
|
|
county; and |
|
|
(2) timely applies and is selected to be a county |
|
|
depository in a manner that ensures no lapse of service as a county |
|
|
depository. |
|
|
(b) If a bank selected as a county depository and holding |
|
|
county funds closes, a branch of the bank in an adjoining county may |
|
|
continue to serve as a county depository and apply to be a county |
|
|
depository if the successor bank: |
|
|
(1) continues to have an office in an adjoining |
|
|
county; and |
|
|
(2) timely applies and is selected to be a county |
|
|
depository in a manner that ensures no lapse of service as a county |
|
|
depository. |
|
|
SECTION 3. Section 116.116(b), Local Government Code, is |
|
|
amended to read as follows: |
|
|
(b) If the commissioners court selects a depository in |
|
|
another county [under Section 116.026], the depository shall file a |
|
|
statement with the county treasurer designating the place in the |
|
|
county governed by the commissioners court where, and the person by |
|
|
whom, deposits by the treasurer may be received and checks will be |
|
|
paid, or the place in another county where deposits may be made and |
|
|
checks may be paid. The statement must be filed within five days |
|
|
after the date notice is given to the depository of its selection. |
|
|
SECTION 4. Section 117.026(a), Local Government Code, is |
|
|
amended to read as follows: |
|
|
(a) Subject to Sections 116.026 and 116.028, the [The] |
|
|
commissioners court may select a federally insured bank or banks |
|
|
located outside the county to serve as the depository under this |
|
|
subchapter if: |
|
|
(1) for any reason no bank located in the county |
|
|
applies to be designated as the depository; |
|
|
(2) an application is not made for the entire amount of |
|
|
the registry funds; |
|
|
(3) the commissioners court rejects all the |
|
|
applications submitted; |
|
|
(4) a depository selected by the commissioners court |
|
|
fails to qualify; |
|
|
(5) a depository becomes insolvent; or |
|
|
(6) a new depository is selected because of the |
|
|
failure of the regular depository to execute a new bond under |
|
|
Section 117.057. |
|
|
SECTION 5. Section 117.118, Local Government Code, is |
|
|
amended to read as follows: |
|
|
Sec. 117.118. APPLICATION OF COUNTY DEPOSITORY LAW. |
|
|
Matters regarding special depositories for the registry fund are |
|
|
subject to the same provisions as those prescribed by Chapter 116 |
|
|
regarding county depositories, including Sections 116.026 and |
|
|
116.028. |
|
|
SECTION 6. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2023. |
|
|
|
|
|
* * * * * |