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AN ACT
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relating to the selection of depositories for certain county funds, |
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including funds 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, Local Government Code, is |
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amended to read as follows: |
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Sec. 116.021. DEPOSITORY AND SUBDEPOSITORY CONTRACTS. (a) |
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The commissioners court of a county [at its May regular term
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immediately following each general election for state and county
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officers] shall select by the process provided by this subchapter |
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or by Subchapter C, Chapter 262, [contract with] one or more banks |
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in the county and enter a contract with each selected bank for the |
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deposit of the county's public funds. The county shall contract |
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with a bank under this section for a two-year or four-year contract |
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term. On expiration of a contract under this section, the contract |
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may be renewed for two years under terms negotiated by the |
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commissioners court. |
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(b) If the contract is for a four-year term, the contract |
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shall allow the county [bank] to establish, on the basis of |
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negotiations with the bank [county], new interest rates and |
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financial terms of the contract that will take effect during the |
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final two years of the four-year contract [if:
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[(1)
the new financial terms do not increase the
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prices to the county by more than 10 percent; and
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[(2)
the county has the option to choose to use the
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initial variable interest rate option or to change to the new fixed
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or variable interest rate options proposed by the bank]. |
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(c) On the renewal of a contract, the county may negotiate |
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new interest rates and terms with the bank for the next two years in |
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the same way and subject to the same conditions as provided by |
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Subsection (b). |
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(d) If for any reason a county depository is not selected |
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under Subsection (a), the commissioners court, at any subsequent |
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time after 20 days' notice, may select, by the process described by |
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Section 116.024 or by negotiated bid, one or more depositories in |
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the same manner as at the regular time. |
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(e) If the commissioners court selects a depository by the |
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process provided by Subchapter C, Chapter 262, the depository may |
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be selected by: |
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(1) competitive bidding; or |
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(2) another method under that subchapter that the |
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county is qualified to use. |
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SECTION 2. Section 116.022(a), Local Government Code, is |
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amended to read as follows: |
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(a) Once each week for at least 20 days before the date to |
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submit an application under Section 116.023(a) [May regular term of
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a commissioners court at which the court will make a depository
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contract], the county judge shall place over the judge's name in a |
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newspaper of general circulation [published] in the county a notice |
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that the commissioners court intends to receive applications from |
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which to select a depository bank [make the contract]. A notice |
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shall also be posted at the courthouse door of the county. |
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SECTION 3. Section 116.023(a), Local Government Code, is |
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amended to read as follows: |
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(a) A bank in the county that wants to be a county depository |
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must deliver its application to the county judge or a designated |
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representative of the judge on or before a date set by the |
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commissioners court that is no later than the 60th day before the |
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date of the expiration of the existing depository contract [the
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first day of the term of the commissioners court at which
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depositories are to be selected]. |
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SECTION 4. Section 116.024(a), Local Government Code, is |
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amended to read as follows: |
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(a) At the meeting [10 a.m. on the first day of each term] at |
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which banks are to be selected as county depositories, the |
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commissioners court shall: |
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(1) enter in the minutes of the court all applications |
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filed with the county judge; |
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(2) consider all applications; and |
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(3) select the qualified applicants that offer the |
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most favorable terms and conditions for the handling of the county |
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funds. |
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SECTION 5. Section 117.021, Local Government Code, is |
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amended to read as follows: |
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Sec. 117.021. APPLICATIONS. (a) The commissioners court |
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of a county [at its May regular term after a general election for
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state and county officers] shall select by the process provided by |
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this subchapter or by Subchapter C, Chapter 262, [receive an
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application from] a federally insured bank or banks in 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 [a] federally insured bank or banks [under this section] |
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for a two-year or four-year [contract] term. The original term can |
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be renewed once for an additional two-year term. The contract may, |
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on request by the clerk and approval of the commissioners court, |
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include a provision that the funds in a special account earn |
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interest. A request from the clerk that an account earn interest |
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must be made, in writing, to the commissioners court not later than |
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the 30th day before the date the county gives notice under Section |
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117.022 and shall be entered in the minutes of the court. |
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(b) If the contract is for a four-year term, the contract |
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shall allow the county [bank] to establish, on the basis of |
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negotiations with the bank [county], new interest rates and |
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financial terms of the contract that will take effect during the |
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final two years of the four-year contract [if:
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[(1)
the new financial terms do not increase the
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prices to the county by more than 10 percent; and
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[(2)
the county has the option to choose to use the
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initial variable interest rate option or to change to the new fixed
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or variable interest rate options proposed by the bank]. |
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(c) On the renewal of a contract, the county may negotiate |
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new interest rates and terms with the bank for the next two years in |
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the same way and under the same conditions as provided by Subsection |
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(b). |
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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 [10 a.m. on the first day of the term]. |
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The application must be accompanied by a certified check or |
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cashier's check for at least one-half of one percent of the average |
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daily balance of the registry funds held by the county clerk and the |
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district clerk during the preceding calendar year, as determined by |
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the 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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(e) [(d)] If for any reason a county depository is not |
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selected under Subsection (a), the commissioners court, at any |
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subsequent time after 20 days' notice, may select, by the process |
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described by Section 117.023 or by negotiated bid, one or more |
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depositories in the same manner as at the regular term. |
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(f) If the commissioners court selects a depository by the |
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process provided by Subchapter C, Chapter 262, the depository may |
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be selected by: |
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(1) competitive bidding; or |
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(2) another method under that subchapter that the |
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county is qualified to use. |
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SECTION 6. 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 [10 a.m. on the first day of each term] at |
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which banks are to be selected [the commissioners court is required
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to receive applications] to serve as the depository for registry |
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funds held by the county clerk and the district 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 7. Section 117.025(b), Local Government Code, is |
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amended to read as follows: |
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(b) A designation under Subsection (a) is effective until |
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the designation and qualification of a successor depository or |
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until April 15 following the expiration of the contract [term in
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which a depository must be selected under this subchapter], |
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whichever is earlier. If the term of a depository ends before the |
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designation and qualification of a successor, the depository shall |
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pay to the clerk in whose name the account is carried all registry |
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funds due or on deposit. |
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SECTION 8. To the extent of any conflict, a change in law |
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made by this Act to Chapter 116 or 117, Local Government Code, |
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controls over a change made by H.B. No. 892, Acts of the 80th |
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Legislature, Regular Session, 2007, regardless of the relative |
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dates of enactment. |
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SECTION 9. 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, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2641 was passed by the House on April |
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25, 2007, by the following vote: Yeas 143, Nays 0, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2641 on May 25, 2007, by the following vote: Yeas 139, Nays 0, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2641 was passed by the Senate, with |
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amendments, on May 23, 2007, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |