89R5027 AMF-D
By: Eckhardt S.B. No. 2157
A BILL TO BE ENTITLED
AN ACT
relating to deposits of funds into a court registry by a clerk of a
justice court.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 117.001(2), Local Government Code, is
amended to read as follows:
(2) "Clerk" means a justice court clerk, a county
clerk, a district clerk, or a county and district clerk.
SECTION 2. Sections 117.002 and 117.003, Local Government
Code, are amended to read as follows:
Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER.
Any funds deposited under this chapter, except cash bail bonds,
that are presumed abandoned under Chapter 72, 73, or 75, Property
Code, shall be reported and delivered by the justice court, county,
or district clerk to the comptroller without further action by any
court. The dormancy period for funds deposited under this chapter
begins on the later of:
(1) the date of entry of final judgment or order of
dismissal in the action in which the funds were deposited;
(2) the 18th birthday of the minor for whom the funds
were deposited; or
(3) a reasonable date established by rule by the
comptroller to promote the public interest in disposing of
unclaimed funds.
Sec. 117.003. COMPLIANCE WITH FEDERAL TAX LAW FOR FUNDS
HELD UNDER THIS CHAPTER. (a) If any funds deposited under this
chapter are placed into an interest-bearing account, any person
with a taxable interest in funds deposited to such account must
submit appropriate tax forms and provide correct information to the
justice court, county, or district [or county] clerk so that the
interest earned on such funds can be timely and appropriately
reported to the Internal Revenue Service. The information and
forms provided to the [district or county] clerk under this section
are not subject to public disclosure except to the extent necessary
to effectuate compliance with federal tax law requirements.
(b) The justice court, county, or district [or county] clerk
is authorized to pay any or all of the interest earned on funds
deposited under this chapter, without court order, to the Internal
Revenue Service to satisfy tax withholding requirements.
SECTION 3. Sections 117.021(a) and (d), Local Government
Code, are amended to read as follows:
(a) The commissioners court of a county shall select by the
process provided by this subchapter or by Subchapter C, Chapter
262, a federally insured bank or banks in the county to be the
depository for a special account held by the justice court clerks,
county clerk, and [the] district clerks. The county shall enter a
contract with the selected federally insured bank or banks for a
two-year or four-year term. The original term can be renewed once
for an additional two-year term. The contract may, on request by a
[the] clerk and approval of the commissioners court, include a
provision that the funds in a special account earn interest. A
request from a [the] clerk that an account earn interest must be
made, in writing, to the commissioners court not later than the 30th
day before the date the county gives notice under Section 117.022
and shall be entered in the minutes of the court.
(d) A bank must file its application on or before a date set
by the commissioners court. The application must be accompanied by
a certified check or cashier's check for at least one-half of one
percent of the average daily balance of the registry funds held by
the justice court clerks, county clerk, and [the] district clerks
[clerk] during the preceding calendar year, as determined by the
[county] clerk [and the district clerk] on or before the 10th day
before the date the application is required to be filed. A
certified check or cashier's check that complies with this section
is a good-faith guarantee on the part of the applicant that if its
application is accepted it will execute the bond required under
this subchapter. If the bank selected as depository does not
provide the bond, the county shall retain the amount of the check as
liquidated damages and the county shall select another depository
as provided by this subchapter.
SECTION 4. Section 117.022, Local Government Code, is
amended to read as follows:
Sec. 117.022. NOTICE. A county shall advertise or give
notice that the county will accept applications to be the
depository for registry funds held by the justice court clerks,
county clerk, and [the] district clerks [clerk] in the same manner
as notice is required under Section 116.022.
SECTION 5. Section 117.023(a), Local Government Code, is
amended to read as follows:
(a) At the meeting at which banks are to be selected to serve
as the depository for registry funds held by the justice court
clerks, county clerk, and [the] district clerks [clerk], the
commissioners court shall enter the applications in the minutes of
the court and select a depository.
SECTION 6. The heading to Section 117.052, Local Government
Code, is amended to read as follows:
Sec. 117.052. DEPOSITS OF REGISTRY FUNDS BY JUSTICE COURT,
COUNTY, AND DISTRICT CLERKS.
SECTION 7. Section 117.052(a), Local Government Code, is
amended to read as follows:
(a) If a depository has been selected under Subchapter B, a
justice court clerk, county clerk, or [a] district clerk who is to
have, for more than three days, legal custody of money deposited in
the registry of the court pending the result of a legal proceeding
shall deposit the money in the depository.
SECTION 8. Section 117.053(a), Local Government Code, is
amended to read as follows:
(a) If a commissioners court selects a new depository under
Subchapter B, when the depository qualifies, the justice court
clerks, county clerk, and [the] district clerks [clerk] shall
transfer the funds in a special account from the old depository to
the new depository, and the clerks may draw checks on the accounts
for this purpose.
SECTION 9. Section 117.056(a), Local Government Code, is
amended to read as follows:
(a) A depository selected under Subchapter B shall pay a
check drawn by a justice court, county, or district clerk against
funds deposited in the clerk's name on presentment of the check at
the county seat if the funds subject to the check are in the
possession of the depository.
SECTION 10. Section 117.057(a), Local Government Code, is
amended to read as follows:
(a) A commissioners court may require a depository selected
under Subchapter B to execute a new bond whenever the commissioners
court considers it necessary for the protection of the justice
court clerks', county clerk's, and [the] district clerks' [clerk's]
registry funds.
SECTION 11. Section 117.058(b), Local Government Code, is
amended to read as follows:
(b) If the commissioners court of a county provides a
depository for the registry funds of the justice court clerks,
county clerk, or [the] district clerks [clerk], those officers
shall make reports under oath to the county auditor to properly
reflect all registry funds received and disbursed by the officer,
including all money remaining on hand at the time of the report.
The county auditor shall prescribe the form and frequency of the
report.
SECTION 12. Sections 117.081 and 117.083, Local Government
Code, are amended to read as follows:
Sec. 117.081. LIABILITY OF JUSTICE COURT, COUNTY, AND
DISTRICT CLERKS. (a) A justice court clerk, county clerk, or [a]
district clerk is not responsible for a loss of registry funds
resulting from the failure or negligence of a depository.
(b) This section does not release a justice court clerk,
county clerk, or [a] district clerk from:
(1) liability for a loss of registry funds resulting
from the clerk's official misconduct, negligence, or
misappropriation of the funds; or
(2) responsibility for keeping the registry funds safe
until the clerk deposits them in a depository selected under
Subchapter B.
(c) After a justice court clerk, county clerk, or [a]
district clerk deposits in a depository selected under Subchapter B
the registry funds held by the clerk, the clerk is relieved of the
responsibility for keeping the funds secure.
Sec. 117.083. LOSS OF REGISTRY FUNDS. If registry funds
held by a justice court clerk, county clerk, or [a] district clerk
and deposited by the county with a depository selected under
Subchapter B are lost for any reason, including a loss due to the
insolvency of the depository, the county is liable to the rightful
owner of the funds for the full amount of the funds due the owner.
SECTION 13. This Act takes effect September 1, 2025.