Bill Text: TX SB158 | 2023-2024 | 88th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the location of a bank eligible to be selected as a depository or subdepository of county public money, including money held by a county or district clerk.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-06-18 - Effective immediately [SB158 Detail]

Download: Texas-2023-SB158-Engrossed.html

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By: Perry S.B. No. 158

A BILL TO BE ENTITLED
AN ACT
relating to the location of a bank eligible to be selected as a
depository or subdepository of county public money, including money
held by a county or district clerk.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 116.026, Local Government Code, is
amended to read as follows:
Sec. 116.026. APPLICANTS OUTSIDE COUNTY. (a) If no bank
located in the county applies to be designated as the county
depository, the commissioners court may advertise, in the same
manner provided by Section 116.022 for advertising for a depository
within the county, for applications from banks in an adjoining
county or any other county in this state.
(b) If only one bank located in the county applies to be
designated as the county depository, the commissioners court may
reject the applicant if the applicant proposes terms that:
(1) are not in the best interest of the county;
(2) are not financially competitive with the financial
market outside the county; or
(3) impose noncompetitive fees.
(c) If the commissioners court rejects the applicant under
Subsection (b), the commissioners court may advertise, in the same
manner provided by Section 116.022 for advertising for a depository
within the county, for applications from banks in an adjoining
county.
SECTION 2. Subchapter B, Chapter 116, Local Government
Code, is amended by adding Section 116.028 to read as follows:
Sec. 116.028. SUCCESSOR BANK AS COUNTY DEPOSITORY. (a) If
a bank selected to be a county depository and holding county funds
is sold to another bank in an adjoining county, the successor bank
in the adjoining county may continue to serve as a county depository
and apply and be selected as a county depository if the successor
bank:
(1) continues to have an office in an adjoining
county; and
(2) timely applies and is selected to be a county
depository in a manner that ensures no lapse of service as a county
depository.
(b) If a bank selected as a county depository and holding
county funds closes, a branch of the bank in an adjoining county may
continue to serve as a county depository and apply to be a county
depository if the successor bank:
(1) continues to have an office in an adjoining
county; and
(2) timely applies and is selected to be a county
depository in a manner that ensures no lapse of service as a county
depository.
SECTION 3. Section 116.116(b), Local Government Code, is
amended to read as follows:
(b) If the commissioners court selects a depository in
another county [under Section 116.026], the depository shall file a
statement with the county treasurer designating the place in the
county governed by the commissioners court where, and the person by
whom, deposits by the treasurer may be received and checks will be
paid, or the place in another county where deposits may be made and
checks may be paid. The statement must be filed within five days
after the date notice is given to the depository of its selection.
SECTION 4. Section 117.026(a), Local Government Code, is
amended to read as follows:
(a) Subject to Sections 116.026 and 116.028, the [The]
commissioners court may select a federally insured bank or banks
located outside the county to serve as the depository under this
subchapter if:
(1) for any reason no bank located in the county
applies to be designated as the depository;
(2) an application is not made for the entire amount of
the registry funds;
(3) the commissioners court rejects all the
applications submitted;
(4) a depository selected by the commissioners court
fails to qualify;
(5) a depository becomes insolvent; or
(6) a new depository is selected because of the
failure of the regular depository to execute a new bond under
Section 117.057.
SECTION 5. Section 117.118, Local Government Code, is
amended to read as follows:
Sec. 117.118. APPLICATION OF COUNTY DEPOSITORY LAW.
Matters regarding special depositories for the registry fund are
subject to the same provisions as those prescribed by Chapter 116
regarding county depositories, including Sections 116.026 and
116.028.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.