Texas 2023 - 88th Regular

Texas House Bill HB2675 Compare Versions

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Version 2 (New)

Old	New	Differences
1	1	88R10036 TSS-D
2	2	By: Jetton H.B. No. 2675
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the deposit of funds into court registries by the clerks
8	8	of justice courts.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2256.004(a), Government Code, is amended
11	11	to read as follows:
12	12	(a) This subchapter does not apply to:
13	13	(1) a public retirement system as defined by Section
14	14	802.001;
15	15	(2) state funds invested as authorized by Section
16	16	404.024;
17	17	(3) an institution of higher education having total
18	18	endowments of at least $150 million in book value on September 1,
19	19	2017;
20	20	(4) funds invested by the Veterans' Land Board as
21	21	authorized by Chapter 161, 162, or 164, Natural Resources Code;
22	22	(5) registry funds deposited with the clerk of a
23	23	justice court, the county clerk, or the district clerk under
24	24	Chapter 117, Local Government Code; or
25	25	(6) a deferred compensation plan that qualifies under
26	26	either Section 401(k) or 457 of the Internal Revenue Code of 1986
27	27	(26 U.S.C. Section 1 et seq.), as amended.
28	28	SECTION 2. Section 117.001(2), Local Government Code, is
29	29	amended to read as follows:
30	30	(2) "Clerk" means the clerk of a justice court, a
31	31	county clerk, a district clerk, or a county and district clerk.
32	32	SECTION 3. Section 117.002, Local Government Code, is
33	33	amended to read as follows:
34	34	Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER.
35	35	Any funds deposited under this chapter, except cash bail bonds,
36	36	that are presumed abandoned under Chapter 72, 73, or 75, Property
37	37	Code, shall be reported and delivered by the clerk of a justice
38	38	court, the county clerk, or the district clerk to the comptroller
39	39	without further action by any court. The dormancy period for funds
40	40	deposited under this chapter begins on the later of:
41	41	(1) the date of entry of final judgment or order of
42	42	dismissal in the action in which the funds were deposited;
43	43	(2) the 18th birthday of the minor for whom the funds
44	44	were deposited; or
45	45	(3) a reasonable date established by rule by the
46	46	comptroller to promote the public interest in disposing of
47	47	unclaimed funds.
48	48	SECTION 4. Sections 117.021(a) and (d), Local Government
49	49	Code, are amended to read as follows:
50	50	(a) The commissioners court of a county shall select by the
51	51	process provided by this subchapter or by Subchapter C, Chapter
52	52	262, a federally insured bank or banks in the county to be the
53	53	depository for a special account held by the clerks of the justice
54	54	courts, the county clerk, and the district clerks. The county shall
55	55	enter a contract with the selected federally insured bank or banks
56	56	for a two-year or four-year term. The original term can be renewed
57	57	once for an additional two-year term. The contract may, on request
58	58	by the clerk and approval of the commissioners court, include a
59	59	provision that the funds in a special account earn interest. A
60	60	request from the clerk that an account earn interest must be made,
61	61	in writing, to the commissioners court not later than the 30th day
62	62	before the date the county gives notice under Section 117.022 and
63	63	shall be entered in the minutes of the court.
64	64	(d) A bank must file its application on or before a date set
65	65	by the commissioners court. The application must be accompanied by
66	66	a certified check or cashier's check for at least one-half of one
67	67	percent of the average daily balance of the registry funds held by
68	68	the clerks of the justice courts, the county clerk, and the district
69	69	clerk during the preceding calendar year, as determined by the
70	70	clerks of the justice courts, the county clerk and the district
71	71	clerk on or before the 10th day before the date the application is
72	72	required to be filed. A certified check or cashier's check that
73	73	complies with this section is a good-faith guarantee on the part of
74	74	the applicant that if its application is accepted it will execute
75	75	the bond required under this subchapter. If the bank selected as
76	76	depository does not provide the bond, the county shall retain the
77	77	amount of the check as liquidated damages and the county shall
78	78	select another depository as provided by this subchapter.
79	79	SECTION 5. Section 117.022, Local Government Code, is
80	80	amended to read as follows:
81	81	Sec. 117.022. NOTICE. A county shall advertise or give
82	82	notice that the county will accept applications to be the
83	83	depository for registry funds held by the clerks of the justice
84	84	courts, the county clerk, and the district clerk in the same manner
85	85	as notice is required under Section 116.022.
86	86	SECTION 6. Section 117.023(a), Local Government Code, is
87	87	amended to read as follows:
88	88	(a) At the meeting at which banks are to be selected to serve
89	89	as the depository for registry funds held by the clerks of the
90	90	justice courts, the county clerk, and the district clerk, the
91	91	commissioners court shall enter the applications in the minutes of
92	92	the court and select a depository.
93	93	SECTION 7. The heading to Section 117.052, Local Government
94	94	Code, is amended to read as follows:
95	95	Sec. 117.052. DEPOSITS OF REGISTRY FUNDS BY [COUNTY AND
96	96	DISTRICT] CLERKS.
97	97	SECTION 8. Section 117.052(a), Local Government Code, is
98	98	amended to read as follows:
99	99	(a) If a depository has been selected under Subchapter B,
100	100	the clerk of a justice court, a county clerk, or a district clerk
101	101	who is to have for more than three days legal custody of money
102	102	deposited in the registry of the court pending the result of a legal
103	103	proceeding shall deposit the money in the depository.
104	104	SECTION 9. Section 117.053(a), Local Government Code, is
105	105	amended to read as follows:
106	106	(a) If a commissioners court selects a new depository under
107	107	Subchapter B, when the depository qualifies, the clerks of the
108	108	justice courts, the county clerk, and the district clerk shall
109	109	transfer the funds in a special account from the old depository to
110	110	the new depository, and the clerks may draw checks on the accounts
111	111	for this purpose.
112	112	SECTION 10. Section 117.056(a), Local Government Code, is
113	113	amended to read as follows:
114	114	(a) A depository selected under Subchapter B shall pay a
115	115	check drawn by a clerk of a justice court, a county clerk, or a
116	116	district clerk against funds deposited in the clerk's name on
117	117	presentment of the check at the county seat if the funds subject to
118	118	the check are in the possession of the depository.
119	119	SECTION 11. Section 117.057(a), Local Government Code, is
120	120	amended to read as follows:
121	121	(a) A commissioners court may require a depository selected
122	122	under Subchapter B to execute a new bond whenever the
123	123	commissioners court considers it necessary for the protection of
124	124	the clerks of the justice courts', the county clerk's, and the
125	125	district clerk's registry funds.
126	126	SECTION 12. Section 117.058(b), Local Government Code, is
127	127	amended to read as follows:
128	128	(b) If the commissioners court of a county provides a
129	129	depository for the registry funds of the clerks of the justice
130	130	courts, the county clerk, or the district clerk, those officers
131	131	shall make reports under oath to the county auditor to properly
132	132	reflect all registry funds received and disbursed by the officer,
133	133	including all money remaining on hand at the time of the report.
134	134	The county auditor shall prescribe the form and frequency of the
135	135	report.
136	136	SECTION 13. Section 117.081, Local Government Code, is
137	137	amended to read as follows:
138	138	Sec. 117.081. LIABILITY OF [COUNTY AND DISTRICT] CLERKS.
139	139	(a) A clerk of a justice court, a county clerk, or a district clerk
140	140	is not responsible for a loss of registry funds resulting from the
141	141	failure or negligence of a depository.
142	142	(b) This section does not release a clerk of a justice
143	143	court, a county clerk, or a district clerk from:
144	144	(1) liability for a loss of registry funds resulting
145	145	from the clerk's official misconduct, negligence, or
146	146	misappropriation of the funds; or
147	147	(2) responsibility for keeping the registry funds safe
148	148	until the clerk deposits them in a depository selected under
149	149	Subchapter B.
150	150	(c) After a clerk of a justice court, a county clerk, or a
151	151	district clerk deposits in a depository selected under Subchapter B
152	152	the registry funds held by the clerk, the clerk is relieved of the
153	153	responsibility for keeping the funds secure.
154	154	SECTION 14. Section 117.083, Local Government Code, is
155	155	amended to read as follows:
156	156	Sec. 117.083. LOSS OF REGISTRY FUNDS. If registry funds
157	157	held by a clerk of a justice court, a county clerk, or a district
158	158	clerk and deposited by the county with a depository selected under
159	159	Subchapter B are lost for any reason, including a loss due to the
160	160	insolvency of the depository, the county is liable to the rightful
161	161	owner of the funds for the full amount of the funds due the owner.
162	162	SECTION 15. This Act takes effect September 1, 2023.