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A BILL TO BE ENTITLED
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AN ACT
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relating to deposits of funds into a court registry by a clerk of a |
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justice court. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 117.001(2), Local Government Code, is |
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amended to read as follows: |
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(2) "Clerk" means a justice court clerk, a county |
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clerk, a district clerk, or a county and district clerk. |
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SECTION 2. Sections 117.002 and 117.003, Local Government |
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Code, are amended to read as follows: |
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Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER. |
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Any funds deposited under this chapter, except cash bail bonds, |
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that are presumed abandoned under Chapter 72, 73, or 75, Property |
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Code, shall be reported and delivered by the justice court, county, |
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or district clerk to the comptroller without further action by any |
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court. The dormancy period for funds deposited under this chapter |
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begins on the later of: |
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(1) the date of entry of final judgment or order of |
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dismissal in the action in which the funds were deposited; |
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(2) the 18th birthday of the minor for whom the funds |
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were deposited; or |
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(3) a reasonable date established by rule by the |
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comptroller to promote the public interest in disposing of |
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unclaimed funds. |
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Sec. 117.003. COMPLIANCE WITH FEDERAL TAX LAW FOR FUNDS |
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HELD UNDER THIS CHAPTER. (a) If any funds deposited under this |
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chapter are placed into an interest-bearing account, any person |
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with a taxable interest in funds deposited to such account must |
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submit appropriate tax forms and provide correct information to the |
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justice court, county, or district [or county] clerk so that the |
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interest earned on such funds can be timely and appropriately |
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reported to the Internal Revenue Service. The information and |
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forms provided to the [district or county] clerk under this section |
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are not subject to public disclosure except to the extent necessary |
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to effectuate compliance with federal tax law requirements. |
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(b) The justice court, county, or district [or county] clerk |
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is authorized to pay any or all of the interest earned on funds |
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deposited under this chapter, without court order, to the Internal |
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Revenue Service to satisfy tax withholding requirements. |
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SECTION 3. Sections 117.021(a) and (d), Local Government |
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Code, are 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 the county to be the |
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depository for a special account held by the justice court clerks, |
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county clerk, and [the] district clerks. The county shall enter a |
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contract with the selected federally insured bank or banks for a |
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two-year or four-year term. The original term can be renewed once |
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for an additional two-year term. The contract may, on request by a |
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[the] clerk and approval of the commissioners court, include a |
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provision that the funds in a special account earn interest. A |
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request from a [the] clerk that an account earn interest must be |
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made, in writing, to the commissioners court not later than the 30th |
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day before the date the county gives notice under Section 117.022 |
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and shall be entered in the minutes of the court. |
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(d) A bank must file its application on or before a date set |
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by the commissioners court. The application must be accompanied by |
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a certified check or cashier's check for at least one-half of one |
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percent of the average daily balance of the registry funds held by |
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the justice court clerks, county clerk, and [the] district clerks |
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[clerk] during the preceding calendar year, as determined by the |
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[county] clerk [and the district clerk] on or before the 10th day |
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before the date the application is required to be filed. A |
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certified check or cashier's check that complies with this section |
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is a good-faith guarantee on the part of the applicant that if its |
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application is accepted it will execute the bond required under |
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this subchapter. If the bank selected as depository does not |
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provide the bond, the county shall retain the amount of the check as |
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liquidated damages and the county shall select another depository |
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as provided by this subchapter. |
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SECTION 4. Section 117.022, Local Government Code, is |
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amended to read as follows: |
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Sec. 117.022. NOTICE. A county shall advertise or give |
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notice that the county will accept applications to be the |
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depository for registry funds held by the justice court clerks, |
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county clerk, and [the] district clerks [clerk] in the same manner |
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as notice is required under Section 116.022. |
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SECTION 5. Section 117.023(a), Local Government Code, is |
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amended to read as follows: |
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(a) At the meeting at which banks are to be selected to serve |
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as the depository for registry funds held by the justice court |
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clerks, county clerk, and [the] district clerks [clerk], the |
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commissioners court shall enter the applications in the minutes of |
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the court and select a depository. |
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SECTION 6. The heading to Section 117.052, Local Government |
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Code, is amended to read as follows: |
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Sec. 117.052. DEPOSITS OF REGISTRY FUNDS BY JUSTICE COURT, |
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COUNTY, AND DISTRICT CLERKS. |
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SECTION 7. Section 117.052(a), Local Government Code, is |
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amended to read as follows: |
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(a) If a depository has been selected under Subchapter B, a |
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justice court clerk, county clerk, or [a] district clerk who is to |
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have, for more than three days, legal custody of money deposited in |
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the registry of the court pending the result of a legal proceeding |
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shall deposit the money in the depository. |
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SECTION 8. Section 117.053(a), Local Government Code, is |
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amended to read as follows: |
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(a) If a commissioners court selects a new depository under |
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Subchapter B, when the depository qualifies, the justice court |
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clerks, county clerk, and [the] district clerks [clerk] shall |
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transfer the funds in a special account from the old depository to |
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the new depository, and the clerks may draw checks on the accounts |
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for this purpose. |
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SECTION 9. Section 117.056(a), Local Government Code, is |
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amended to read as follows: |
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(a) A depository selected under Subchapter B shall pay a |
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check drawn by a justice court, county, or district clerk against |
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funds deposited in the clerk's name on presentment of the check at |
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the county seat if the funds subject to the check are in the |
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possession of the depository. |
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SECTION 10. Section 117.057(a), Local Government Code, is |
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amended to read as follows: |
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(a) A commissioners court may require a depository selected |
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under Subchapter B to execute a new bond whenever the commissioners |
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court considers it necessary for the protection of the justice |
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court clerks', county clerk's, and [the] district clerks' [clerk's] |
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registry funds. |
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SECTION 11. Section 117.058(b), Local Government Code, is |
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amended to read as follows: |
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(b) If the commissioners court of a county provides a |
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depository for the registry funds of the justice court clerks, |
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county clerk, or [the] district clerks [clerk], those officers |
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shall make reports under oath to the county auditor to properly |
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reflect all registry funds received and disbursed by the officer, |
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including all money remaining on hand at the time of the report. |
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The county auditor shall prescribe the form and frequency of the |
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report. |
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SECTION 12. Sections 117.081 and 117.083, Local Government |
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Code, are amended to read as follows: |
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Sec. 117.081. LIABILITY OF JUSTICE COURT, COUNTY, AND |
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DISTRICT CLERKS. (a) A justice court clerk, county clerk, or [a] |
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district clerk is not responsible for a loss of registry funds |
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resulting from the failure or negligence of a depository. |
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(b) This section does not release a justice court clerk, |
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county clerk, or [a] district clerk from: |
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(1) liability for a loss of registry funds resulting |
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from the clerk's official misconduct, negligence, or |
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misappropriation of the funds; or |
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(2) responsibility for keeping the registry funds safe |
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until the clerk deposits them in a depository selected under |
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Subchapter B. |
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(c) After a justice court clerk, county clerk, or [a] |
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district clerk deposits in a depository selected under Subchapter B |
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the registry funds held by the clerk, the clerk is relieved of the |
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responsibility for keeping the funds secure. |
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Sec. 117.083. LOSS OF REGISTRY FUNDS. If registry funds |
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held by a justice court clerk, county clerk, or [a] district clerk |
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and deposited by the county with a depository selected under |
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Subchapter B are lost for any reason, including a loss due to the |
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insolvency of the depository, the county is liable to the rightful |
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owner of the funds for the full amount of the funds due the owner. |
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SECTION 13. This Act takes effect September 1, 2025. |