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

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