# TheAttorney General ofTexas

NOV’Naber 20, 1985 JIM MAlTOX AttorneyGeneral

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AnEqualOPP’XtunltYl A,,lr,,mtlve Action EmPlOW Ms. Deborah Jo Mertdors Robertson County mditor P. 0. Box646 Franklin, Texas 77856 Opinion No. ~~-383 Re: Whether county funds mustb deposited in a designated count depository Dear Hs. Meadors: Pursuant to gJur limited authority to request opinions, you 85 two questions in regard to the depositories for county funds i Xobertson County. You inform us that at the present time, the count has selected, thrnzgh 

### the “bid” process, 

### a county depository for th next two years. U’eassume that this “bid” process is the procedur outlined in artic:.es 2545 aid 2546, V.T.C.S. You also inform us tha all of the county funds with the exception of the “Road and aridg Precinct Fund” hmre,been deposited in the bank designated as tb couaty depository. You further kadicate **that** this “Road and Bridge Preclncc Fund was initially deposited in the designated depository bank when tb **taxes** were colleci:ed’ by the tax collector ‘for that purpose. However these 

### funds **were**tubsequently transferred to one of 

### four banks 

### locate in each of the for.r county precincts. Weunderstand that warrants ar drawn 

### on these 

### four accounts located in the varfous banks and ar signed both by the county auditor and the treasurer. You first as whether this depo6:ltoty 

### system is in compllmce with state law. W conclude that the **system**is **contrary** to the system prescribed by th leglalature In articles 2544-2549. V.T.C.S.
**As**aprel%miusry matter, the Robertson County commissioners tour has only the pomrs conferred either expressly or by necessar implication by thtrconstitution and statutes of this state. See Tex **Coust.** art. V, 51~8;Canales v. Laughlin, 214 S.W.Zd 451, 4r(Tex 1948). The 1egis:iature has required a county commissioners court t follow a prescrite,d procedure in exercising its duty to safeguar county funds. SeeV.T.C.S. arts. 2544-2549. Aconmissioners court I authorized **to** ez;r %ntoa contract with any bank in the county as depository of county funds, after giving public notice that sue contract is made. See V.T.C.S. art. 2544. More than one count depository msybe selected. SeeV.T.C.S. art. 2546. - I

p: 1756ns. Deborah JoMeadors - Pag’e2 (JIG383)

Article 2549(a), V.T.C.,S., provides:

(a) Assoon aBsaid bond be given andapproved by the Comissione:rs Court, an order shall be made and entered upon the minutes oft said Court designarinn such bankian corooratlon, association or individual banker, as a ‘depositorg for the funds of said county r~n.til sixty (60) days after the time fixed for th; next selection of a depository; and thereuuon. it-shall be the duty of the county

. treasurer of sa:.d county Immediately upon th; making of such order, to transfer to said depository all the fuud.abelonging to said county

. . . and Immediately r.pon receipt of any money thereafter, to deposit the samewith said depository to the credit of said county.

. . . It shall also be the duty of tha tax collector of such county to deposit all tlu:es collected by him, or under his authority, for the State andsuch County

. . . in such depository or depositories, as soon as collected.

. ... (Emphasis added). Thus, all county funds are to be deposited In the county depository for the prescribed period of time. The ouly exception to this requir-t is found in ar<:Lc&e2549(c), V.T.C.S.. which provides in part: (c) Unless rcpressly prqhibited by law or

unless ‘it is in c:ontraventiort of any depository contract between ,Lcounty andsay depository bank, the Commissionerr, Court may direct the county treasurer to: (1) withdr;nr any amount of funds of the county that axe deposited In a county deposltory and that ere not required inrmcdiately to pay obligrtionl$ of the county or required to be kept on deposit under the terms of the depository contract; and (2) invest those funds In direct debt securities of zhe United States. Consequently, the present depository system In Robertson County is prohibited by this provisiorl.. As indicated above, tL? road andbridge fund is presently located in four banks that bave not been designated as county depositories. The “road and bridge” fund is lone of three statutory funds which are

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to be deposited by the treasurer into the county depository. SeeV.T.C.S. art. 1628; m7a). see also Attorney General Opinion E-1185

In Attorney Genera,1Opinion ~-33 (1967) it was held: The purpose of the procedures~ prescribed by the statutes relating to the selection of 8 county depository is to secure to the county a safe. responsible depository for its funds with a return of interest for ‘Jj6ethereof.

. . . There is no indication **that** the commissioners court has required the additional four banks to ~:omplpwith any of the bonding requirement6 specified In article 2347. V.T.C.S. Thus, the funds deposited are unprotected by the procedure. In addition. there is also no indication that these four banks have submitted applications to be considered as a proper cclusty depository. Accordingly, we conclude that the present depository systen Is contrary to the intent and purpose of articles 2544 tlueough2349, V.T.C.S. You also aak whether it is perniasible to leave these road and bridge funds in the four b,anksuntil such time as you are to select your county depository. Wethink not. As indicated above, article 2349 require6 that these funds be deposited in the county depository until “60 days after thi time fLxed for the next selection of a depository.” See V.T.C.S. art. 2349. See also Attorney General Opinion O-38377941) (bank selected remains the county depository during the terms of the coutract). SUMMARY A county comnissL~mer6 court is 

### not authorized to deposit funds Ln banks which have not been designated as the county depository in compliance with articles 2344 through 2349, V.T.C.S. Article 2349 requires county officials 

### to depoeit all county fund6 in the designated county depository.

JIM MATTOX Attorney Ganeral of Texas NARYKELLER Executive Assistant Attorney General

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ROBERT

GRAY Special Assistant Attorney General RICKGILPIN Chairman. Opinion Comittee Prepared by TonyGulllory Assistant Attorney General
APPROVED

: OPINIONCOMMITTEE Rick Gilpin, chairman Co1111Carl SusanGarrhm Tony Guillory JimHoellingar Jenalfcr &Lggs NancySutton SarahWoelk

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