SB2157 - Relating to deposits of funds into a court registry by a clerk of a justice court.

  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.