By: Duncan S.B. No. 373
(Darby)
A BILL TO BE ENTITLED
AN ACT
relating to the office of county treasurer.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (b), Article 103.003, Code of
Criminal Procedure, is amended to read as follows:
(b) A community supervision and corrections department and
a county treasurer may collect money payable under this title with
the written approval of the clerk of the court or fee officer, and
may collect money payable as otherwise provided by law.
SECTION 2. Subsections (a) and (c), Article 103.004, Code
of Criminal Procedure, are amended to read as follows:
(a) Except as provided by Subsection [Subsections (b) and]
(c), an officer who collects recognizances, bail bonds, fines,
forfeitures, judgments, jury fees, and other obligations recovered
in the name of the state under any provision of this title shall
deposit the money in the county treasury not later than the next
regular business day after the date that the money is collected. If
it is not possible for the officer to deposit the money in the
county treasury by that date, the officer shall deposit the money in
the county treasury as soon as possible, but not later than the
fifth [third] regular business day after the date that the money is
collected.
(c) The commissioners court of a county with a population of
less than 50,000 may authorize an officer who is required to deposit
money under Subsection (a) to deposit the money in the county
treasury not later than the 15th [30th] day after the date that the
money is collected.
SECTION 3. Subsection (a), Section 83.003, Local Government
Code, is amended to read as follows:
(a) A [Within one year after the date on which a] person
first takes office as [county treasurer, the] county treasurer must
successfully complete an introductory course of instruction in the
performance of the duties of county treasurer:
(1) within one year after the date on which the person
takes office if elected to a full term; or
(2) at the earliest available date if appointed by the
commissioners court or elected to an unexpired term of county
treasurer.
SECTION 4. Chapter 83, Local Government Code, is amended by
adding Sections 83.008 and 83.009 to read as follows:
Sec. 83.008. SURETY BOND ON ASSISTANT TREASURERS, DEPUTIES,
AND EMPLOYEES; SELF-INSURANCE. (a) If a county treasurer employs
only one assistant or deputy, the county treasurer shall execute a
surety bond to cover the assistant or deputy and shall execute a
schedule surety bond or a blanket surety bond to cover all other
employees of the office. If a county treasurer employs more than
one assistant or deputy, the county treasurer shall execute a
blanket surety bond to cover the assistants or deputies and all
other employees of the office.
(b) Instead of a county treasurer obtaining a bond as
required by Subsection (a), the county may self-insure against
losses that would have been covered by the bond.
(c) The bond under this section must be conditioned in the
same manner and must be for the same amount as the bond for the
county treasurer under Section 83.002. The bond must be made
payable to the county judge for the use and benefit of the county
treasurer.
Sec. 83.009. ASSISTANT TREASURER OR TREASURY DEPUTY.
(a) The appointment of an assistant treasurer or treasury deputy
must be in writing, be signed by the county treasurer, and bear the
seal of the county court.
(b) A person appointed as an assistant treasurer or treasury
deputy, before beginning to perform the duties of office, must take
and subscribe the official oath, which, together with the
certificate of the officer administering the oath, must be endorsed
on the appointment. The appointment and oath shall be deposited and
recorded in the county clerk's office.
(c) An assistant treasurer or treasury deputy acts in the
name of the county treasurer as directed by the county treasurer and
may perform all official acts that the county treasurer may perform
at the discretion of the county treasurer.
SECTION 5. Sections 111.0707 and 111.07075, Local
Government Code, are amended to read as follows:
Sec. 111.0707. SPECIAL BUDGET FOR REVENUE FROM
INTERGOVERNMENTAL CONTRACTS. (a) The county auditor shall
certify to the commissioners court the receipt of all revenue from
intergovernmental contracts that is available for disbursement in a
fiscal year but not included in the budget for that fiscal year. On
certification, the court shall adopt a special budget for the
limited purpose of spending the revenue from intergovernmental
contracts for its intended purpose.
(b) The county treasurer shall notify the county auditor of
the receipt of all revenue from intergovernmental contracts not
previously included in a special budget or the annual budget for
that fiscal year.
Sec. 111.07075. SPECIAL BUDGET FOR REVENUE RECEIVED AFTER
START OF FISCAL YEAR. (a) The county auditor shall certify to the
commissioners court the receipt of revenue from a new source not
anticipated before the adoption of the budget and not included in
the budget for that fiscal year. On certification, the court may
adopt a special budget for the limited purpose of spending the
revenue for general purposes or for any of its intended purposes.
(b) The county treasurer shall notify the county auditor of
the receipt of all revenue from a new source not anticipated before
the adoption of the budget and not previously included in a special
budget or the annual budget for that fiscal year.
SECTION 6. Subchapter A, Chapter 113, Local Government
Code, is amended by adding Section 113.0001 to read as follows:
Sec. 113.0001. DEFINITIONS. In this chapter:
(1) "Depository" means the financial institution
selected under Section 116.021 for safekeeping of the county
treasury.
(2) "Depository account" means an account covered by
the depository agreement, including required collateral.
(3) "Money" means an item or medium of exchange such as
coins, currency, checks, or other means of payment, including
electronic payment.
(4) "Treasury" means the money belonging to the county
held by the county treasurer.
SECTION 7. Section 113.008, Local Government Code, is
amended to read as follows:
Sec. 113.008. RECONCILIATION OF DEPOSITORY ACCOUNTS
[COUNTY CHECKS AND WARRANTS]. (a) The county depository shall
provide statements of all bank activity and documentation
supporting a statement's transactions not less than once a month
[all canceled checks and warrants and supporting statements] to the
county treasurer.
(b) The county depository shall provide the information
required by Subsection (a) to the official responsible for the
account [Subsection (a) does not apply] if:
(1) the checks and orders for payment [warrants] are
payable from funds under the direct authority of an official other
than the county treasurer as provided by statute; and
(2) the official has not delegated the responsibility
for reconciliation under Subsection (b-1).
(b-1) The [exemption provided by this subsection does not
apply if the] official may request [requests] the county treasurer
to be responsible for the reconciliation of the checks and orders
for payment [warrants] payable from the funds that are under the
direct authority of the official. Except as provided by Subsection
(g), an official who fails to reconcile the official's special
accounts monthly shall transfer responsibility for account
reconciliation to the county treasurer. Unless the official and
county treasurer set another period in writing for the duration of a
transfer under this section, the transfer is effective for the
duration of the term of office for the designating officer.
(c) In fulfilling the requirements of Subsections
[Subsection] (a) and (b), the county depository shall provide, at
the direction of the county treasurer and in accordance with the
rules adopted by the Texas State Library and Archives Commission,
originals, optical images, or electronic images of:
(1) [original] canceled checks and orders for payment
[warrants]; [or]
(2) deposit detail;
(3) debit and credit memoranda; or
(4) electronic transmission detail [optical images of
the front and back of canceled checks and warrants if the optical
images are retained in accordance with the rules adopted by the
Texas State Library and Archives Commission].
(d) The county treasurer shall:
(1) reconcile all balances and transactions for each
treasury account in the county depository's statement of activity
to the transactions and balances shown on the treasurer's records
[the canceled checks and warrants with the account records of the
depository]; and
(2) ensure all financial adjustments are made
regarding the depository account as required.
(e) In this section, a reference to the county treasurer
includes a person performing the duties of the county treasurer.
(f) Except as provided by Subsection (g), an official with
special funds in the depository bank shall:
(1) reconcile all balances and transactions in the
statement of activity to the transactions and balances shown on the
official's records; and
(2) each month, ensure all financial adjustments
resulting from the reconciliation are reported to the county
auditor for entry in the general set of records and reflected in the
cash receipts and disbursement registers of the county treasurer.
(g) Subsections (b-1) and (f)(2) do not apply to a special
fund administered by an attorney representing the state under
Chapter 18, 47, or 59, Code of Criminal Procedure.
SECTION 8. Sections 113.021 and 113.022, Local Government
Code, are amended to read as follows:
Sec. 113.021. REQUIREMENT THAT MONEY BE DEPOSITED WITH
COUNTY TREASURER [AND PUT INTO SPECIAL FUND]; INTEREST. (a) The
fees, commissions, funds, and other money belonging to a county
shall be deposited with the county treasurer by the person
[officer] who collects the money. The person [officer] must
deposit the money in accordance with any applicable procedures
prescribed by or under Section 112.001 or 112.002. However, the
county tax assessor-collector must deposit the money in accordance
with the procedures prescribed by or under the Tax Code and other
laws.
(b) The county treasurer shall deposit the money in the
county depository in the proper [a special] fund to the credit of
the person or department collecting [officer who collected] the
money. [If the money is fees, commissions, or other compensation
collected by an officer who is paid on a salary basis, the
appropriate special fund is the applicable salary fund created
under Chapter 154.]
(c) The interest accruing on the money in the [special] fund
is for the benefit of the county in accordance with other law.
Sec. 113.022. TIME FOR MAKING DEPOSITS. (a) A county
officer or other person who receives money [funds] shall deposit
the money [funds] with the county treasurer on or before the next
regular business day after the date on which the money is [funds
are] received. If this deadline cannot be [is not] met, the officer
or person must deposit the money [funds], without exception, on or
before the fifth [seventh] business day after the day on which the
money is [funds are] received. However, in a county with fewer than
50,000 inhabitants, the commissioners court may extend the period
during which funds must be deposited with the county treasurer, but
the period may not exceed 15 [30] days after the date the funds are
received.
(b) A county treasurer shall deposit the money [funds]
received under Subsection (a) in the county depository in
accordance with Section 116.113(a). In all cases, the treasurer
shall deposit the money [funds] on or before the seventh business
day after the date the treasurer receives the money [funds].
SECTION 9. The heading to Section 113.041, Local Government
Code, is amended to read as follows:
Sec. 113.041. DISBURSEMENT OF MONEY BY COUNTY TREASURER;
PAYMENT BY CHECK OR ELECTRONIC TRANSMISSION [OR WARRANT]; LOST OR
DESTROYED INSTRUMENT.
SECTION 10. Section 113.041, Local Government Code, is
amended by amending Subsections (b) through (e), (g), and (h) and
adding Subsection (d-1) to read as follows:
(b) Except as provided by Chapter 156, a person may not
spend or withdraw money from the county treasury except by a check
or order for payment [warrant] drawn on the county treasury,
whether or not the money is in a county depository as required by
law.
(c) The county treasurer may not disburse [pay] money out of
the county treasury without an order for payment [a certificate or
warrant] from an officer who is authorized by law to issue the order
[certificate or warrant].
(d) If the county treasurer doubts the legality or propriety
of an order[, decree, certificate, or warrant] presented to the
treasurer for payment, the treasurer may not make the payment. The
treasurer shall report the matter to the commissioners court for
the court's consideration and direction. The treasurer may require
that the claim supporting the order be made available and verified
by an affidavit after the claim is approved for payment by the
commissioners court.
(d-1) In a county without a county auditor, the county
treasurer may not make a payment if the treasurer has reason to
believe that the check or order for payment is not valid as a proper
and budgeted item of expenditure. The treasurer shall report the
matter to the commissioners court for consideration and direction.
(e) If the county treasurer is satisfied that an original
check or other order drawn on the county treasury by a proper
authority is lost or destroyed, the treasurer may issue a duplicate
instrument in place of the original. The treasurer may not issue a
duplicate until an applicant has filed an affidavit with the
treasurer that states that the applicant is the true owner of the
original instrument and that, to the best knowledge and belief of
the applicant, the original is lost or destroyed.
(g) If, after issuance of the duplicate instrument, the
county treasurer determines that the duplicate was issued
improperly or that the applicant or person to whom the duplicate was
issued is not the owner of the original instrument, the treasurer
shall immediately stop payment or demand [the return of the
duplicate, if it is unpaid, or] the return of the amount paid by the
county, if the duplicate is paid. If the person fails to return the
[duplicate instrument or the] amount of the instrument, the
treasurer shall institute a suit for recovery [on the bond] through
the office of the county or district attorney. Venue for the suit
lies in the county in which the treasurer serves.
(h) A county treasurer may not honor a check or order for
payment [warrant] on the interest and sinking fund provided for a
bond of the county or pay out or divert money in that fund except to
pay the principal of or interest on the bond or invest money in
securities as provided by law.
SECTION 11. The heading to Section 113.042, Local
Government Code, is amended to read as follows:
Sec. 113.042. ENDORSEMENT BY COUNTY TREASURER; OTHER
[WARRANT] REQUIREMENTS FOR ORDER FOR PAYMENT.
SECTION 12. Subsections (a), (b), (e), (f), and (g),
Section 113.042, Local Government Code, are amended to read as
follows:
(a) On the presentation of an order for payment [a warrant],
check, or voucher[, or order] drawn by a proper authority, and if
there are sufficient funds for payment on deposit in the account
against which the instrument is drawn, the county treasurer shall
endorse on the face of the instrument the order to pay the named
payee and shall charge the amount in the treasurer's records to the
fund on which it is drawn.
(b) The county treasurer may not issue and the county
depository may not pay a check drawn on the county depository to
take up an order for payment [a warrant] drawn by a proper
authority, but the county treasurer shall, on the presentation of
the order [warrant], endorse the order [warrant] and deliver it to
the payee, who may present it to the county depository for payment.
(e) Each check or order for payment [warrant] issued or
drawn by an officer under the provisions of this section is subject
to all laws and rules relating to auditing and countersigning.
(f) Each order for payment [warrant] or scrip issued against
the county treasurer by a judge or court must be signed and attested
by the clerk or judge of the court under that officer's official
seal.
(g) A justice of the peace may not issue an order for payment
[warrants] against the county treasury for any purpose except as
may be provided by the Code of Criminal Procedure.
SECTION 13. Section 113.043, Local Government Code, is
amended to read as follows:
Sec. 113.043. COUNTERSIGNATURE BY COUNTY AUDITOR. In a
county with a county auditor, the county treasurer and the county
depository may not pay a check or order for payment [warrant] unless
it is countersigned by the county auditor to validate it as a proper
and budgeted item of expenditure. This section does not apply to a
check or order [warrant] for jury service or for restitution
collected on behalf of an individual as authorized by law.
SECTION 14. Section 113.046, Local Government Code, is
amended to read as follows:
Sec. 113.046. REGISTER OF ORDERS FOR PAYMENT [WARRANTS]
ISSUED BY JUDGE OR CLERK. (a) The county auditor shall maintain a
register of the orders for payment [warrants] issued on the county
treasurer by a judge or by the district or county clerk. A register
entry for an order [a warrant] must indicate the date of payment by
the treasurer.
(b) On a form prepared by the auditor, the clerk or judge
shall furnish the auditor with a daily itemized report that
specifies the orders for payment [warrants] issued, the number of
orders [warrants], the amounts of the orders [warrants], the names
of the persons to whom the orders [warrants] are payable, and the
purposes of the orders [warrants].
SECTION 15. Subsection (c), Section 113.048, Local
Government Code, is amended to read as follows:
(c) A system or method of payment authorized by this section
may be used in lieu of or in addition to the issuance of [warrants
or] checks or orders for payment authorized under this subchapter.
SECTION 16. The heading to Section 113.061, Local
Government Code, is amended to read as follows:
Sec. 113.061. CLAIMS REGISTER[; CLASSES OF CLAIMS].
SECTION 17. Section 113.063, Local Government Code, is
amended to read as follows:
Sec. 113.063. CLAIMS INFORMATION LIST; INDEBTEDNESS TO THE
COUNTY. (a) Each officer who collects a fine, penalty,
forfeiture, judgment, tax, [or] other indebtedness, or payment
obligation owed to the county [in a claim against the county] shall
keep a descriptive list of those claims. When the officer reports
the collection, the officer shall file with the report a list that
states:
(1) the party in whose favor the claim was issued;
(2) the receipt number issued in documentation of
payment [class and register number of the claim];
(3) the name of the party paying in the claim;
(4) the amount received; and
(5) the purpose for which the amount was received.
(b) The officer shall give the claims and the report to the
county treasurer, who shall give the officer a receipt. The
treasurer shall determine the time and manner of making [file the
list with] the [treasurer's] report [in the office of the county
clerk].
SECTION 18. Section 114.022, Local Government Code, is
amended by adding Subsection (c) to read as follows:
(c) A county publishing monthly financial reports under
Section 114.023 that publishes its comprehensive annual financial
report on its Internet website is not required to publish an exhibit
under this section.
SECTION 19. Subsection (b), Section 114.023, Local
Government Code, is amended to read as follows:
(b) In addition to information considered necessary by the
auditor or required by the commissioners court, the report must
contain:
(1) all of the facts of interest related to the
financial condition of the county;
(2) a consolidated balance sheet;
(3) a complete statement of the balances on hand at the
beginning and end of the month;
(4) a statement of the aggregate receipts and
disbursements of each fund;
(5) a statement of transfers to and from each fund;
(6) a statement of the bond and order for payment
[warrant] indebtedness with corresponding rates of interest; and
(7) a summarized budget statement that shows:
(A) the expenses paid from the budget for each
budgeted officer, department, or institution during that month and
for the period of the fiscal year inclusive of the month for which
the report is made;
(B) the encumbrances against the budgets; and
(C) the amounts available for further
expenditures.
SECTION 20. Subsection (c), Section 115.002, Local
Government Code, is amended to read as follows:
(c) The auditor shall carefully examine the report made
under Section 114.026 by the county treasurer, together with the
canceled orders for payment [warrants] that have been paid. The
auditor shall verify those orders [warrants] with the register of
orders [warrants] issued as shown on the auditor's books.
SECTION 21. Subsection (b), Section 116.002, Local
Government Code, is amended to read as follows:
(b) Orders for payment [Warrants], checks, and vouchers
evidencing the money deposited in the county depository under
Subsection (a) are subject to audit and countersignature as
provided by law.
SECTION 22. Section 116.115, Local Government Code, is
amended to read as follows:
Sec. 116.115. CLEARINGHOUSE FOR MULTIPLE DEPOSITORIES. If
the funds of a county are deposited with more than one depository,
the commissioners court shall by order name one of the depositories
to act as a clearinghouse for the others. All county orders for
payment [warrants] are finally payable at the depository named as
the clearinghouse.
SECTION 23. Subsections (a) and (c), Section 116.116, Local
Government Code, are amended to read as follows:
(a) A county depository shall pay a check or order for
payment [warrant] drawn by the county treasurer against funds
deposited with the depository on presentation of the check or order
[warrant] if the funds subject to the check or order [warrant] are
in the possession of the depository, and, in the case of a time
deposit, if the agreed period of notice has expired.
(c) An order for payment [A warrant] or check, including an
order [a warrant] or check issued prior to September 1, 1993, issued
by the county treasurer in settlement of a claim against a county
that is not presented for payment before the 366th day following the
date of issuance is overdue and nonnegotiable. The sum of the
overdue order [warrant] or check shall be credited as revenue to the
county if delivery to the payees was attempted or occurred within a
reasonable time following the issuance of the order [warrant] or
check. No right to full settlement of a proper unpaid claim is
extinguished by this subsection.
SECTION 24. The heading to Section 116.120, Local
Government Code, is amended to read as follows:
Sec. 116.120. COLLECTION OF CERTAIN OVERDUE COUNTY ORDERS
FOR PAYMENT [WARRANTS] OR CHECKS.
SECTION 25. Subsections (a) and (b), Section 116.120, Local
Government Code, are amended to read as follows:
(a) This section applies only to an order for payment [a
warrant] or check issued by a county treasurer in settlement of a
claim against a county that has not been presented for payment.
(b) A person attempting to recover funds from the county for
a check or order for payment [warrant] issued by the county
treasurer may not charge the person to whom the check or order
[warrant] was issued and on whose behalf the attempted recovery is
made, or that person's successors or assigns, a fee in an amount
equal to more than 10 percent of the face value of the check or order
[warrant].
SECTION 26. Section 116.155, Local Government Code, is
amended to read as follows:
Sec. 116.155. FAILURE OF DEPOSITORY TO PAY CHECK OR ORDER
FOR PAYMENT [WARRANT]. A depository that does not pay a check or
order for payment [warrant] as required by Section 116.116(a) is
liable for and shall pay to the holder 10 percent of the amount of
the check or order for payment [warrant], and the commissioners
court shall revoke the order creating the depository.
SECTION 27. Subsection (c), Section 118.023, Local
Government Code, is amended to read as follows:
(c) In this section, "ex officio services" includes
services in relation to roads, bridges, and ferries; issuing and
taking receipts for jury scrip or county orders for payment
[warrants]; services in habeas corpus cases; making out bar
dockets; keeping records of trust funds; filing and docketing all
papers for the commissioners court; keeping road overseers' books
and lists of hands; recording all collection returns of delinquent
insolvents; recording county treasurer's reports; recording
reports of justices of the peace; recording reports of animals
slaughtered; and services in connection with elections.
SECTION 28. Subsection (c), Section 130.902, Local
Government Code, is amended to read as follows:
(c) A change fund may not be used to make loans or advances
or to cash checks or orders for payment [warrants] of any kind.
SECTION 29. Subsection (b), Section 130.905, Local
Government Code, is amended to read as follows:
(b) In making payments to support the paupers that the
county is required to support, the commissioners court, with the
concurrence of the county auditor, may make one payment to the head
of the county welfare department. The head of the county welfare
department may disburse the money to the paupers on orders for
payment [warrants] designed by the county auditor. The orders
[warrants] are subject to audit by the county auditor at any time.
The disbursements must be reported on forms and at times prescribed
by the auditor.
SECTION 30. Subsection (c), Section 130.909, Local
Government Code, is amended to read as follows:
(c) The petty cash fund may not be used to make loans or
advances or to cash checks or orders for payment [warrants] of any
kind.
SECTION 31. (a) Subsection (b), Article 103.004, Code of
Criminal Procedure, is repealed.
(b) The following sections of the Local Government Code are
repealed:
(1) Subsections (c), (d), (e), and (f), Section
113.061;
(2) Section 113.062; and
(3) Section 113.066.
SECTION 32. (a) A county treasurer required to execute a
surety bond under Section 83.008, Local Government Code, as added
by this Act, shall execute a surety bond not later than October 1,
2011.
(b) The change in law made by Section 83.009, Local
Government Code, as added by this Act, applies to an assistant
treasurer or treasury deputy appointed on or after the effective
date of this Act. An assistant treasurer or treasury deputy
appointed before the effective date of this Act is covered by the
law in effect when the assistant treasurer or treasury deputy was
appointed.
SECTION 33. This Act takes effect September 1, 2011.