Texas 2023 - 88th Regular

Texas Senate Bill SB158 Compare Versions

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Version 2 (New)

Old	New	Differences
1	1	S.B. No. 158
2	2
3	3
4	4	AN ACT
5	5	relating to the location of a bank eligible to be selected as a
6	6	depository or subdepository of county public money, including money
7	7	held by a county or district clerk.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 116.026, Local Government Code, is
10	10	amended to read as follows:
11	11	Sec. 116.026. APPLICANTS OUTSIDE COUNTY. (a) If no bank
12	12	located in the county applies to be designated as the county
13	13	depository, the commissioners court may advertise, in the same
14	14	manner provided by Section 116.022 for advertising for a depository
15	15	within the county, for applications from banks in an adjoining
16	16	county or any other county in this state.
17	17	(b) If only one bank located in the county applies to be
18	18	designated as the county depository, the commissioners court may
19	19	reject the applicant if the applicant proposes terms that:
20	20	(1) are not in the best interest of the county;
21	21	(2) are not financially competitive with the financial
22	22	market outside the county; or
23	23	(3) impose noncompetitive fees.
24	24	(c) If the commissioners court rejects the applicant under
25	25	Subsection (b), the commissioners court may advertise, in the same
26	26	manner provided by Section 116.022 for advertising for a depository
27	27	within the county, for applications from banks in an adjoining
28	28	county.
29	29	SECTION 2. Subchapter B, Chapter 116, Local Government
30	30	Code, is amended by adding Section 116.028 to read as follows:
31	31	Sec. 116.028. SUCCESSOR BANK AS COUNTY DEPOSITORY. (a) If
32	32	a bank selected to be a county depository and holding county funds
33	33	is sold to another bank in an adjoining county, the successor bank
34	34	in the adjoining county may continue to serve as a county depository
35	35	and apply and be selected as a county depository if the successor
36	36	bank:
37	37	(1) continues to have an office in an adjoining
38	38	county; and
39	39	(2) timely applies and is selected to be a county
40	40	depository in a manner that ensures no lapse of service as a county
41	41	depository.
42	42	(b) If a bank selected as a county depository and holding
43	43	county funds closes, a branch of the bank in an adjoining county may
44	44	continue to serve as a county depository and apply to be a county
45	45	depository if the successor bank:
46	46	(1) continues to have an office in an adjoining
47	47	county; and
48	48	(2) timely applies and is selected to be a county
49	49	depository in a manner that ensures no lapse of service as a county
50	50	depository.
51	51	SECTION 3. Section 116.116(b), Local Government Code, is
52	52	amended to read as follows:
53	53	(b) If the commissioners court selects a depository in
54	54	another county [under Section 116.026], the depository shall file a
55	55	statement with the county treasurer designating the place in the
56	56	county governed by the commissioners court where, and the person by
57	57	whom, deposits by the treasurer may be received and checks will be
58	58	paid, or the place in another county where deposits may be made and
59	59	checks may be paid. The statement must be filed within five days
60	60	after the date notice is given to the depository of its selection.
61	61	SECTION 4. Section 117.026(a), Local Government Code, is
62	62	amended to read as follows:
63	63	(a) Subject to Sections 116.026 and 116.028, the [The]
64	64	commissioners court may select a federally insured bank or banks
65	65	located outside the county to serve as the depository under this
66	66	subchapter if:
67	67	(1) for any reason no bank located in the county
68	68	applies to be designated as the depository;
69	69	(2) an application is not made for the entire amount of
70	70	the registry funds;
71	71	(3) the commissioners court rejects all the
72	72	applications submitted;
73	73	(4) a depository selected by the commissioners court
74	74	fails to qualify;
75	75	(5) a depository becomes insolvent; or
76	76	(6) a new depository is selected because of the
77	77	failure of the regular depository to execute a new bond under
78	78	Section 117.057.
79	79	SECTION 5. Section 117.118, Local Government Code, is
80	80	amended to read as follows:
81	81	Sec. 117.118. APPLICATION OF COUNTY DEPOSITORY LAW.
82	82	Matters regarding special depositories for the registry fund are
83	83	subject to the same provisions as those prescribed by Chapter 116
84	84	regarding county depositories, including Sections 116.026 and
85	85	116.028.
86	86	SECTION 6. This Act takes effect immediately if it receives
87	87	a vote of two-thirds of all the members elected to each house, as
88	88	provided by Section 39, Article III, Texas Constitution. If this
89	89	Act does not receive the vote necessary for immediate effect, this
90	90	Act takes effect September 1, 2023.
91	91	______________________________ ______________________________
92	92	President of the Senate Speaker of the House
93	93	I hereby certify that S.B. No. 158 passed the Senate on
94	94	April 12, 2023, by the following vote: Yeas 31, Nays 0.
95	95	______________________________
96	96	Secretary of the Senate
97	97	I hereby certify that S.B. No. 158 passed the House on
98	98	May 24, 2023, by the following vote: Yeas 134, Nays 4, one
99	99	present not voting.
100	100	______________________________
101	101	Chief Clerk of the House
102	102	Approved:
103	103	______________________________
104	104	Date
105	105	______________________________
106	106	Governor