Texas Senate Bill SB2157

Texas 2025 - 89th Regular

• Filed: 3/10/25

Caption

Relating to deposits of funds into a court registry by a clerk of a justice court.

Impact

The implementation of SB2157 is set to enhance the financial management of public funds held within the court system. By enforcing stricter accounting requirements and ensuring that funds are appropriately managed and reported, the bill aims to provide greater transparency and accountability among public officials. Additionally, the bill specifies that clerks are not liable for losses of registry funds caused by the failure of the depository, which can help mitigate risks for clerks while ensuring that counties maintain their responsibilities to account for and protect these funds.

Summary

SB2157 is a legislative bill aimed at updating and clarifying the processes surrounding the deposits of funds into a court registry by clerks of justice courts, county clerks, and district clerks. The bill makes several amendments to the Local Government Code, specifically sections related to the handling of registry funds. It focuses on establishing the regulations governing how these clerks must manage funds, including requirements for transferring unclaimed funds to the state comptroller and ensuring compliance with federal tax laws concerning deposits in interest-bearing accounts.

Contention

Notable points of contention in the discussions surrounding SB2157 include concerns regarding the balance of liability placed on clerks versus the depositories handling the funds. Some stakeholders argue that the bill may lead to a lack of accountability for mismanagement if clerks are not held responsible for losses unless caused by their own misconduct. Furthermore, debates have emerged over the role of the county commissioners court in selecting depositories and the thresholds for reporting unclaimed funds, reflecting broader concerns about local governance and financial oversight.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 117. Depositories For Certain Trust Funds And Court Registry Funds
  • Section: New Section
  • Section: 021
  • Section: 022
  • Section: 023
  • Section: 056
  • Section: 057
  • Section: 058
  • Section: 081
  • Section: 083