Texas 2025 - 89th Regular

Texas Senate Bill SB2157 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R5027 AMF-D
2	2	By: Eckhardt S.B. No. 2157
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to deposits of funds into a court registry by a clerk of a
10	10	justice court.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 117.001(2), Local Government Code, is
13	13	amended to read as follows:
14	14	(2) "Clerk" means a justice court clerk, a county
15	15	clerk, a district clerk, or a county and district clerk.
16	16	SECTION 2. Sections 117.002 and 117.003, Local Government
17	17	Code, are amended to read as follows:
18	18	Sec. 117.002. TRANSFER OF UNCLAIMED FUNDS TO COMPTROLLER.
19	19	Any funds deposited under this chapter, except cash bail bonds,
20	20	that are presumed abandoned under Chapter 72, 73, or 75, Property
21	21	Code, shall be reported and delivered by the justice court, county,
22	22	or district clerk to the comptroller without further action by any
23	23	court. The dormancy period for funds deposited under this chapter
24	24	begins on the later of:
25	25	(1) the date of entry of final judgment or order of
26	26	dismissal in the action in which the funds were deposited;
27	27	(2) the 18th birthday of the minor for whom the funds
28	28	were deposited; or
29	29	(3) a reasonable date established by rule by the
30	30	comptroller to promote the public interest in disposing of
31	31	unclaimed funds.
32	32	Sec. 117.003. COMPLIANCE WITH FEDERAL TAX LAW FOR FUNDS
33	33	HELD UNDER THIS CHAPTER. (a) If any funds deposited under this
34	34	chapter are placed into an interest-bearing account, any person
35	35	with a taxable interest in funds deposited to such account must
36	36	submit appropriate tax forms and provide correct information to the
37	37	justice court, county, or district [or county] clerk so that the
38	38	interest earned on such funds can be timely and appropriately
39	39	reported to the Internal Revenue Service. The information and
40	40	forms provided to the [district or county] clerk under this section
41	41	are not subject to public disclosure except to the extent necessary
42	42	to effectuate compliance with federal tax law requirements.
43	43	(b) The justice court, county, or district [or county] clerk
44	44	is authorized to pay any or all of the interest earned on funds
45	45	deposited under this chapter, without court order, to the Internal
46	46	Revenue Service to satisfy tax withholding requirements.
47	47	SECTION 3. Sections 117.021(a) and (d), Local Government
48	48	Code, are amended to read as follows:
49	49	(a) The commissioners court of a county shall select by the
50	50	process provided by this subchapter or by Subchapter C, Chapter
51	51	262, a federally insured bank or banks in the county to be the
52	52	depository for a special account held by the justice court clerks,
53	53	county clerk, and [the] district clerks. The county shall enter a
54	54	contract with the selected federally insured bank or banks for a
55	55	two-year or four-year term. The original term can be renewed once
56	56	for an additional two-year term. The contract may, on request by a
57	57	[the] clerk and approval of the commissioners court, include a
58	58	provision that the funds in a special account earn interest. A
59	59	request from a [the] clerk that an account earn interest must be
60	60	made, in writing, to the commissioners court not later than the 30th
61	61	day before the date the county gives notice under Section 117.022
62	62	and shall be entered in the minutes of the court.
63	63	(d) A bank must file its application on or before a date set
64	64	by the commissioners court. The application must be accompanied by
65	65	a certified check or cashier's check for at least one-half of one
66	66	percent of the average daily balance of the registry funds held by
67	67	the justice court clerks, county clerk, and [the] district clerks
68	68	[clerk] during the preceding calendar year, as determined by the
69	69	[county] clerk [and the district clerk] on or before the 10th day
70	70	before the date the application is required to be filed. A
71	71	certified check or cashier's check that complies with this section
72	72	is a good-faith guarantee on the part of the applicant that if its
73	73	application is accepted it will execute the bond required under
74	74	this subchapter. If the bank selected as depository does not
75	75	provide the bond, the county shall retain the amount of the check as
76	76	liquidated damages and the county shall select another depository
77	77	as provided by this subchapter.
78	78	SECTION 4. Section 117.022, Local Government Code, is
79	79	amended to read as follows:
80	80	Sec. 117.022. NOTICE. A county shall advertise or give
81	81	notice that the county will accept applications to be the
82	82	depository for registry funds held by the justice court clerks,
83	83	county clerk, and [the] district clerks [clerk] in the same manner
84	84	as notice is required under Section 116.022.
85	85	SECTION 5. Section 117.023(a), Local Government Code, is
86	86	amended to read as follows:
87	87	(a) At the meeting at which banks are to be selected to serve
88	88	as the depository for registry funds held by the justice court
89	89	clerks, county clerk, and [the] district clerks [clerk], the
90	90	commissioners court shall enter the applications in the minutes of
91	91	the court and select a depository.
92	92	SECTION 6. The heading to Section 117.052, Local Government
93	93	Code, is amended to read as follows:
94	94	Sec. 117.052. DEPOSITS OF REGISTRY FUNDS BY JUSTICE COURT,
95	95	COUNTY, AND DISTRICT CLERKS.
96	96	SECTION 7. Section 117.052(a), Local Government Code, is
97	97	amended to read as follows:
98	98	(a) If a depository has been selected under Subchapter B, a
99	99	justice court clerk, county clerk, or [a] district clerk who is to
100	100	have, for more than three days, legal custody of money deposited in
101	101	the registry of the court pending the result of a legal proceeding
102	102	shall deposit the money in the depository.
103	103	SECTION 8. Section 117.053(a), Local Government Code, is
104	104	amended to read as follows:
105	105	(a) If a commissioners court selects a new depository under
106	106	Subchapter B, when the depository qualifies, the justice court
107	107	clerks, county clerk, and [the] district clerks [clerk] shall
108	108	transfer the funds in a special account from the old depository to
109	109	the new depository, and the clerks may draw checks on the accounts
110	110	for this purpose.
111	111	SECTION 9. Section 117.056(a), Local Government Code, is
112	112	amended to read as follows:
113	113	(a) A depository selected under Subchapter B shall pay a
114	114	check drawn by a justice court, county, or district clerk against
115	115	funds deposited in the clerk's name on presentment of the check at
116	116	the county seat if the funds subject to the check are in the
117	117	possession of the depository.
118	118	SECTION 10. Section 117.057(a), Local Government Code, is
119	119	amended to read as follows:
120	120	(a) A commissioners court may require a depository selected
121	121	under Subchapter B to execute a new bond whenever the commissioners
122	122	court considers it necessary for the protection of the justice
123	123	court clerks', county clerk's, and [the] district clerks' [clerk's]
124	124	registry funds.
125	125	SECTION 11. Section 117.058(b), Local Government Code, is
126	126	amended to read as follows:
127	127	(b) If the commissioners court of a county provides a
128	128	depository for the registry funds of the justice court clerks,
129	129	county clerk, or [the] district clerks [clerk], those officers
130	130	shall make reports under oath to the county auditor to properly
131	131	reflect all registry funds received and disbursed by the officer,
132	132	including all money remaining on hand at the time of the report.
133	133	The county auditor shall prescribe the form and frequency of the
134	134	report.
135	135	SECTION 12. Sections 117.081 and 117.083, Local Government
136	136	Code, are amended to read as follows:
137	137	Sec. 117.081. LIABILITY OF JUSTICE COURT, COUNTY, AND
138	138	DISTRICT CLERKS. (a) A justice court clerk, county clerk, or [a]
139	139	district clerk is not responsible for a loss of registry funds
140	140	resulting from the failure or negligence of a depository.
141	141	(b) This section does not release a justice court clerk,
142	142	county clerk, or [a] district clerk from:
143	143	(1) liability for a loss of registry funds resulting
144	144	from the clerk's official misconduct, negligence, or
145	145	misappropriation of the funds; or
146	146	(2) responsibility for keeping the registry funds safe
147	147	until the clerk deposits them in a depository selected under
148	148	Subchapter B.
149	149	(c) After a justice court clerk, county clerk, or [a]
150	150	district clerk deposits in a depository selected under Subchapter B
151	151	the registry funds held by the clerk, the clerk is relieved of the
152	152	responsibility for keeping the funds secure.
153	153	Sec. 117.083. LOSS OF REGISTRY FUNDS. If registry funds
154	154	held by a justice court clerk, county clerk, or [a] district clerk
155	155	and deposited by the county with a depository selected under
156	156	Subchapter B are lost for any reason, including a loss due to the
157	157	insolvency of the depository, the county is liable to the rightful
158	158	owner of the funds for the full amount of the funds due the owner.
159	159	SECTION 13. This Act takes effect September 1, 2025.