reglab/statecodes huggingface dataset:
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter B. Establishment of Depository › Section 105.011. Depository Authorized

Sec. 105.011.  DEPOSITORY AUTHORIZED.  (a)  Before awarding a depository services contract to a depository, the governing body of a municipality shall receive applications for the performance of depository services from one or more banks, credit unions, or savings associations.
(b)  The governing body may consider the application of a bank, credit union, or savings association that is not doing business within the municipality if:
(1)  the bank, credit union, or savings association maintains a place of business within the state and offers within the state the services required by the depository services contract;  and
(2)  the governing body, prior to giving the notice required by Section 105.012, has adopted a written policy expressly permitting the consideration of applications received by the municipality from a bank, credit union, or savings association that is not doing business within the municipality, after taking into consideration what is in the best interest of the municipality in establishing a depository.
(c)  The designated officer shall request, receive, and review applications for the performance of depository services.  The designated officer shall present the specifications of each application to the governing body who will then select a depository.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1, Sec. 14(a), eff. Aug. 28, 1989;  Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter B. Establishment of Depository › Section 105.012. Notice

Sec. 105.012.  NOTICE.  (a)  The designated officer shall give notice to banks, credit unions, and savings associations requesting the submission of applications for the performance of depository services.
(b)  The notice must contain:
(1)  the name and address of the designated officer receiving the applications;
(2)  the date and time the applications are to be received by the designated officer;  and
(3)  the date, time, and place the governing body of the municipality will consider the selection of one or more depositories.
(c)  Notice of the request shall be published at least once no later than 21 days prior to the deadline for receipt of applications for depository services contracts (i) in a newspaper of general circulation in the municipality and (ii) in a financial publication of general circulation published within this state;  provided, that the notice required by clause (ii) shall not be required if the governing body has not adopted the written policy described in Section 105.011.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter B. Establishment of Depository › Section 105.013. Application

Sec. 105.013.  APPLICATION.  The designated officer may not consider an application if it is received after the date specified in the notice for receiving applications by the designated officer.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter B. Establishment of Depository › Section 105.014. Review of Applications

Sec. 105.014.  REVIEW OF APPLICATIONS.  In reviewing the applications, the designated officer shall consider the terms and conditions for the performance of depository services, including the type and cost of services to be provided to the municipality, consistent with any policy guidelines adopted by the governing body regarding the selection of one or more depositories.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter B. Establishment of Depository › Section 105.015. Selection of Depository

Sec. 105.015.  SELECTION OF DEPOSITORY.  (a)  The governing body of a municipality may authorize the designated officer to execute on the municipality's behalf one or more depository services contracts.
(b)  The governing body may reject any of the applications and readvertise if all applications are rejected.
(c)  The conflict of interests provisions of Section 131.903 apply to the selection of the depositories.
Added by Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Renumbered from Sec. 105.014 and amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.  Amended by Acts 1993, 73rd Leg., ch. 268, Sec. 25, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter B. Establishment of Depository › Section 105.016. Designation of Depository

Sec. 105.016.  DESIGNATION OF DEPOSITORY.  (a)  The governing body shall designate, by an order recorded in its minutes, the bank, credit union, or savings association to serve as a depository for the municipality's funds.
(b)  If a bank, credit union, or savings association selected as a municipal depository does not provide security by the deadline prescribed by Section 105.031, the selection of the bank, credit union, or savings association as a depository is void, and the governing body may consider the application it deems to be the next most advantageous depository services application.
Added by Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Renumbered from Sec. 105.015 and amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter B. Establishment of Depository › Section 105.017. Term of Depository Contract

Sec. 105.017.  TERM OF DEPOSITORY CONTRACT.  A municipality may approve, execute, and deliver any depository services contract whose term does not exceed five years.  The depository services contract may only contain terms and conditions approved by the governing body of the municipality.
Added by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter B. Establishment of Depository › Section 105.018. Additional Services

Sec. 105.018.  ADDITIONAL SERVICES.  In addition to depository services, a municipality may contract with financial institutions, including banks, credit unions, and savings associations, for additional financial services under a separate contract if the governing body of the municipality determines that additional financial services are necessary in the administration, collection, investment, and transfer of municipal funds.
Added by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter C. Security for Funds Held by Depository › Section 105.031. Qualification as Depository

Sec. 105.031.  QUALIFICATION AS DEPOSITORY.  (a)  The bank or savings association, to qualify as a municipal depository, must, not later than five days before the commencement of the term of the depository services contract, provide security for the municipal funds to be deposited in accordance with the terms of the depository services contract.
(b)  Chapter 2257, Government Code governs the type, level, substitution, possession, release, and method of valuation of the security necessary to secure the deposit of municipal funds.
(c)  Repealed by Acts 2001, 77th Leg., ch. 402, Sec. 20(a), eff. Sept. 1, 2001.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993;  Acts 1995, 74th Leg., ch. 76, Sec. 5.95(12), eff. Sept. 1, 1995;  Acts 2001, 77th Leg., ch. 402, Sec. 20(a), eff. Sept. 1, 2001.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter C. Security for Funds Held by Depository › Section 105.033. Surety Bond

Sec. 105.033.  SURETY BOND.  (a)  One or more bonds issued and executed by one or more solvent surety companies authorized to do business in this state, payable to the municipality and filed with the secretary and the designated officer of the municipality, qualify as security under this subchapter if the bonds are approved by the governing body.
(b)  After the governing body approves a surety bond, it shall be filed with the secretary and the designated officer of the municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter C. Security for Funds Held by Depository › Section 105.034. Conditions to Acting as Depository

Sec. 105.034.  CONDITIONS TO ACTING AS DEPOSITORY.  (a)  The depository shall:
(1)  keep the municipal funds covered by the depository services contract;
(2)  perform all duties and obligations imposed on the depository by law and under the depository services contract;
(3)  pay on presentation all checks drawn and properly payable on a demand deposit account with the depository;
(4)  pay all transfers properly payable as directed by a designated officer;
(5)  provide and maintain security at the level required by the provisions of Chapter 2257, Government Code;  and
(6)  account for the municipal funds as required by law.
(b)  Any suit brought in connection with a depository services contract must be tried in the county in which the city hall of the municipality is located.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993;  Acts 1995, 74th Leg., ch. 76, Sec. 5.95(12), eff. Sept. 1, 1995.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter D. Maintenance and Modification of Security › Section 105.051. Maintenance of Security

Sec. 105.051.  MAINTENANCE OF SECURITY.  (a)  A depository services contract shall contain terms and conditions relating to the possession, substitution, or release of security, including:
(1)  requiring the depository to execute a new bond or pledge additional securities for the deposit of municipal funds;
(2)  substituting one security for another;
(3)  releasing securities pledged by a depository in excess of the amount required by this chapter;
(4)  the time period in which such addition, substitution, or release of security by a depository may occur;  and
(5)  other matters relating to the possession, substitution, or release of security the municipality considers necessary for its protection.
(b)  If a depository fails for any reason to comply with the requirements governing the possession, substitution, or release of security, the governing body may select a new depository in the manner provided in this chapter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter D. Maintenance and Modification of Security › Section 105.053. Solvency of Surety Company and Adequacy of Securities

Sec. 105.053.  SOLVENCY OF SURETY COMPANY AND ADEQUACY OF SECURITIES.  At any time the governing body of the municipality considers it necessary for the protection of the municipality, the governing body may direct the designated officer to investigate the solvency of a surety company that issues a bond on behalf of a municipal depository or investigate the value of securities pledged by a depository to secure municipal funds.
Added by Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Renumbered from Sec. 105.056 and amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter D. Maintenance and Modification of Security › Section 105.054. Surrender of Interest on Securities

Sec. 105.054.  SURRENDER OF INTEREST ON SECURITIES.  Except as provided for in the collateral policies of the municipality adopted in accordance with Chapter 2257, Government Code, on request of a municipal depository, the municipality shall surrender, when due, interest coupons or other evidence of interest on securities deposited by the depository with the governing body if the securities remaining pledged by the depository are adequate to meet the requirements of this chapter and of the governing body.
Added by Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Renumbered from Sec. 105.057 and amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.  Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(12), eff. Sept. 1, 1995.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter E. Depository Accounts › Section 105.071. Character and Amount of Deposits

Sec. 105.071.  CHARACTER AND AMOUNT OF DEPOSITS.  (a)  The governing body of the municipality may determine and designate in the depository services contract the character and amount of municipal funds that will be demand deposits.  However, the municipality has the right to maintain other investments of municipal funds in accordance with the investment policy adopted by the municipality.
(b)  The designated officer may contract with a depository for interest on time deposits, including, without limitation, certificates of deposit, at any legal rate under federal or state law, rule, or regulation.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter E. Depository Accounts › Section 105.072. Investments

Sec. 105.072.  INVESTMENTS.  The provisions of Chapter 810, Acts of the 66th Legislature, Regular Session, 1979 (Article 4413(34c), Vernon's Texas Civil Statutes), and Subchapter A, Chapter 2256, Government Code shall govern the investment of municipal funds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993;  Acts 1995, 74th Leg., ch. 76, Sec. 5.95(11), eff. Sept. 1, 1995.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter E. Depository Accounts › Section 105.073. Deposit of Funds

Sec. 105.073.  DEPOSIT OF FUNDS.  Not later than 60 days from the date the governing body of the municipality designates a depository in accordance with the provisions of Section 105.016, the designated officer of the municipality shall transfer to the depository all the municipal funds covered by the depository services contract under the control of the designated officer.  The designated officer of the municipality shall as soon as practicable also deposit in the depository to the credit of the municipality any money covered by the depository services contract received after the depository is designated.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter E. Depository Accounts › Section 105.074. Payment of Funds

Sec. 105.074.  PAYMENT OF FUNDS.  (a)  The funds of the municipality may be paid out of a depository only at the direction of a designated officer.
(b)  Except as provided in Subsection (g), a designated officer may draw a check on a depository only on a warrant signed by the mayor and attested by the secretary of the municipality.
(c)  If there is sufficient money in a fund in a depository against which the proper authority has drawn a warrant, the designated officer on presentation of the warrant shall draw a check on the depository in favor of the legal holder of the warrant, retain the warrant, and charge the warrant against the fund on which it is drawn.  The designated officer may not draw a warrant on a fund in a depository unless the fund has sufficient money to pay the warrant.
(d)  A designated officer may not draw a check on any funds designated in the depository services contract as time deposits until notice has been given and the notice period has expired under the terms of the contract with the depository.
(e)  The mayor and secretary of the municipality may not draw a warrant on a special fund in a depository or under the control of the designated officer that was created to pay the bonded indebtedness of the municipality other than to pay the principal of or interest on the indebtedness or to invest the fund as provided by law.
(f)  The designated officer may not pay or draw a check to pay money out of a special fund that was created to pay the bonded indebtedness of the municipality other than to pay the principal of or interest on the indebtedness or to invest the fund as provided by law.
(g)  Notwithstanding the provisions of Subsections (b) through (f), the governing body of a municipality may adopt procedures:
(1)  governing the method by which the designated officer is authorized to direct payments from the funds of the municipality on deposit with a depository;
(2)  governing the method of payment of obligations of the municipality, including payment by check, draft, wire transfer, or other method of payment mutually acceptable to the municipality and the depository;  and
(3)  the governing body determines are necessary to ensure the safety and integrity of the payment process.
(h)  If a municipality adopts procedures in accordance with Subsection (g), a copy of the adopted procedures shall be filed with the depository.  The designated officer and the depository shall agree upon record-keeping safeguards and other measures necessary to ensure the safety and integrity of the payment process.  The safeguards must be approved by the governing body of the municipality if the governing body finds that the safeguards are consistent with and do not contravene the procedures adopted under Subsection (g).
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter E. Depository Accounts › Section 105.075. Checks Payable at Depository

Sec. 105.075.  CHECKS PAYABLE AT DEPOSITORY.  Checks drawn by the treasurer of the municipality against municipal funds on deposit are payable by the depository at its place of business in the municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter E. Depository Accounts › Section 105.076. Debts Payable Other Than at Municipal Treasury

Sec. 105.076.  DEBTS PAYABLE OTHER THAN AT MUNICIPAL TREASURY.  The governing body of the municipality may direct the designated officer to withdraw from a depository and deposit money sufficient to pay a bond, coupon, or other indebtedness of the municipality at a place other than at the municipal treasury if by its terms the indebtedness is payable on maturity or upon redemption prior to maturity at the other location.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter F. Liability and Report of Designated Officer › Section 105.091. Liability of Designated Officer

Sec. 105.091.  LIABILITY OF DESIGNATED OFFICER.  (a)  The designated officer is not responsible for any loss of municipal funds through the negligence, failure, or wrongful act of a depository.  This subsection does not release the designated officer from responsibility for a loss resulting from the official misconduct of the designated officer, including a misappropriation of the funds, or from responsibility for the funds until a depository is selected and the funds are deposited.
(b)  A designated officer who diverts money from an interest and sinking fund or who applies money in that fund for a purpose other than as permitted by Section 105.074(f) is:
(1)  subject to a penalty of not less than $500 or more than $1,000;  and
(2)  liable for the amount of money that is diverted.
(c)  The state is entitled to recover a penalty imposed under Subsection (b)(1).  The amount of diverted money that is recovered under Subsection (b)(2) shall be paid into the municipal treasury to the credit of the fund from which it was diverted.
(d)  The attorney general or the district attorney of the district in which the designated officer resides, or the county attorney in a county that is not served by a district attorney, may institute suit against the designated officer and the sureties on the designated officer's official bond to recover the amounts described by Subsection (b).
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993;  Acts 1999, 76th Leg., ch. 227, Sec. 6, eff. Sept. 1, 1999.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 105 - Depositories for Municipal Funds › Subchapter F. Liability and Report of Designated Officer › Section 105.092. Report by Designated Officer

Sec. 105.092.  REPORT BY DESIGNATED OFFICER.  In conjunction with the publication of the annual financial statement of the municipality, the designated officer shall prepare a report which shall describe in summary form:
(1)  the amount of receipts and expenditures of the municipal treasury;
(2)  the amount of money on hand in each fund;
(3)  the amount of bonds becoming due for redemption that require action;
(4)  the amount of interest to be paid during the next fiscal year;  and
(5)  any other information required by law to be reported by the designated officer.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 106 - Municipal Child Safety Trust Fund › Section 106.001. Creation of Child Safety Trust Fund in Certain Municipalities

Sec. 106.001.  CREATION OF CHILD SAFETY TRUST FUND IN CERTAIN MUNICIPALITIES.  A child safety trust fund shall be created in the treasury of a municipality with a population of more than 1.3 million.
Added by Acts 1995, 74th Leg., ch. 76, Sec. 10.01, eff. Sept. 1, 1995.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 128, eff. September 1, 2023.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 106 - Municipal Child Safety Trust Fund › Section 106.002. Deposits to Fund

Sec. 106.002.  DEPOSITS TO FUND.  The following money shall be deposited in the fund:
(1)  court costs collected under Article 102.014, Code of Criminal Procedure; and
(2)  optional motor vehicle registration fees remitted to the municipality by the county under Section 502.403, Transportation Code.
Added by Acts 1995, 74th Leg., ch. 76, Sec. 10.01, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.214, eff. Sept. 1, 1997.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 12.001, eff. September 1, 2013.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 106 - Municipal Child Safety Trust Fund › Section 106.003. Use of Fund

Sec. 106.003.  USE OF FUND.  (a)  Money in the fund shall be used for the purpose of providing school crossing guard services as provided by Chapter 343.
(b)  After payment of the expenses of the school crossing guard services, any remaining money in the fund may be used for programs designed to enhance child safety, health, or nutrition, including child abuse intervention and prevention and drug and alcohol abuse prevention.
Added by Acts 1995, 74th Leg., ch. 76, Sec. 10.01, eff. Sept. 1, 1995.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 106 - Municipal Child Safety Trust Fund › Section 106.004. Audit

Sec. 106.004.  AUDIT.  (a)  Money collected under this chapter is subject to audit by the comptroller.
(b)  Money expended under this chapter is subject to audit in the same manner as other funds expended by a county or municipality.
Added by Acts 1995, 74th Leg., ch. 76, Sec. 10.01, eff. Sept. 1, 1995.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.001. Definitions

Sec. 107.001.  DEFINITIONS.  In this chapter:
(1)  "Obligation" includes a bond, certificate, note, or book entry obligation.
(2)  "Unfunded liability" means an unfunded, accrued liability of a municipality to a public pension fund as determined by actuarial analysis.
Added by Acts 2003, 78th Leg., ch. 1271, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.002. Definition of "Public Pension Fund

Sec. 107.002.  DEFINITION OF "PUBLIC PENSION FUND."  In this chapter, "public pension fund":
(1)  means a continuing, organized program or plan of service retirement, disability retirement, or death benefits for officers or employees of a municipality;
(2)  includes a plan qualified under Section 401(a), Internal Revenue Code of 1986, as amended;  and
(3)  does not include:
(A)  a program that provides only workers' compensation benefits;
(B)  a program administered by the federal government;
(C)  a plan described by Section 401(d), Internal Revenue Code of 1986, as amended;
(D)  an individual retirement account consisting of an annuity contract described by Section 403(b), Internal Revenue Code of 1986, as amended;
(E)  an individual retirement account as defined by Section 408(a), Internal Revenue Code of 1986, as amended;
(F)  an individual retirement annuity as defined by Section 408(b), Internal Revenue Code of 1986, as amended;
(G)  an eligible deferred compensation plan as defined by Section 457(b), Internal Revenue Code of 1986, as amended;  or
(H)  a program for which benefits are administered by a life insurance company or for which the only funding agency is a life insurance company.
Added by Acts 2003, 78th Leg., ch. 1271, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.003. Pension Fund Obligations Authorized

Sec. 107.003.  PENSION FUND OBLIGATIONS AUTHORIZED.  (a)  A municipality may issue obligations to fund all or any part of an unfunded liability.
(b)  Before authorizing issuance and delivery of an obligation under this section, the governing body of the municipality must enter into a written agreement with the governing body of the public retirement system that:
(1)  has fiduciary responsibility for assets of the public pension fund or public pension funds that are to receive the net proceeds of the obligations to be issued;  and
(2)  has the duty to oversee the investment and expenditure of the assets of the public pension fund.
(c)  The written agreement must state the amount of the unfunded liability and the date or dates on which the public pension fund will accept the net proceeds of the obligations to be issued in payment of all or a portion of the unfunded liability.
Added by Acts 2003, 78th Leg., ch. 1271, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.0036. Voter Approval Required for Certain Pension Fund Obligations

Sec. 107.0036.  VOTER APPROVAL REQUIRED FOR CERTAIN PENSION FUND OBLIGATIONS.  (a)  This section applies only to a public pension fund subject to:
(1)  Article 6243e.2(1), Revised Statutes;
(2)  Chapter 88 (H.B. 1573), Acts of the 77th Legislature, Regular Session, 2001 (Article 6243h, Vernon's Texas Civil Statutes); and
(3)  Article 6243g-4, Revised Statutes.
(b)  A municipality may issue an obligation under Section 107.003 to fund all or any part of the unfunded liability of a public pension fund subject to this section only if the issuance is approved by a majority of the qualified voters of the municipality voting at an election held for that purpose.
Added by Acts 2017, 85th Leg., R.S., Ch. 320 (S.B. 2190), Sec. 4.01, eff. July 1, 2017.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.004. Proceeds of Obligations Issued

Sec. 107.004.  PROCEEDS OF OBLIGATIONS ISSUED.  The municipality shall deposit the net proceeds of obligations issued under Section 107.003 to the credit of the public pension fund.  The amount deposited under this section becomes part of the public pension fund's assets.
Added by Acts 2003, 78th Leg., ch. 1271, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.005. Payment of Obligations

Sec. 107.005.  PAYMENT OF OBLIGATIONS.  An obligation issued under Section 107.003 may be made payable by the municipality from:
(1)  the fund from which compensation is paid to its officers and employees;
(2)  its general fund;  or
(3)  taxes, revenues, both taxes and revenues, or any other source or combination of sources of money that the municipality may use under state law to secure or pay any kind of bond or obligation.
Added by Acts 2003, 78th Leg., ch. 1271, Sec. 1, Sept. 1, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.006. Obligation as Refinancing

Sec. 107.006.  OBLIGATION AS REFINANCING.  An obligation issued under Section 107.003 is a complete or partial refinancing of a commitment of the municipality to fund its unfunded liability.
Added by Acts 2003, 78th Leg., ch. 1271, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.007. Sale of Obligations; Maturity

Sec. 107.007.  SALE OF OBLIGATIONS;  MATURITY.  Obligations issued under Section 107.003 may be sold at private or public sale and must mature not later than the 30th anniversary of the date of issuance.
Added by Acts 2003, 78th Leg., ch. 1271, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.008. Additional Authority; Credit Agreements

Sec. 107.008.  ADDITIONAL AUTHORITY;  CREDIT AGREEMENTS.  (a)  In this section, "credit agreement" and "obligation" have the meanings assigned by Section 1371.001, Government Code.
(b)  The governing body of a municipality that issues obligations under Section 107.003 may exercise any of the rights or powers of the governing body of an issuer under Chapter 1371, Government Code, and may enter into a credit agreement under that chapter.  An obligation issued under Section 107.003 is an obligation under Chapter 1371, Government Code, but is not required to be rated as required by that chapter.
Added by Acts 2003, 78th Leg., ch. 1271, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 107 - Obligations for Certain Liabilities to Public Pension Funds of a Municipality › Section 107.009. Chapter Controlling

Sec. 107.009.  CHAPTER CONTROLLING.  This chapter prevails over any conflict between this chapter and:
(1)  another law respecting the issuance of obligations of a municipality;  or
(2)  a municipal home-rule charter.
Added by Acts 2003, 78th Leg., ch. 1271, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 108 - Municipal Bonds for Certain Defined Areas › Subchapter A. General Provisions › Section 108.001. Definition

Sec. 108.001.  DEFINITION.  In this chapter, "defined area" means a defined area created by a municipal utility district under Subchapter J, Chapter 54, Water Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 813 (S.B. 1535), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 108 - Municipal Bonds for Certain Defined Areas › Subchapter A. General Provisions › Section 108.002. Application of Chapter

Sec. 108.002.  APPLICATION OF CHAPTER.  This chapter applies only to a municipality that under Section 43.075 or any other law abolishes a municipal utility district created under Section 59, Article XVI, Texas Constitution, that contains a defined area.
Added by Acts 2007, 80th Leg., R.S., Ch. 813 (S.B. 1535), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 108 - Municipal Bonds for Certain Defined Areas › Subchapter A. General Provisions › Section 108.003. Conflict With Other Laws

Sec. 108.003.  CONFLICT WITH OTHER LAWS.  To the extent of a conflict between this chapter and any other law, including Subchapter A, Chapter 372, this chapter controls.
Added by Acts 2007, 80th Leg., R.S., Ch. 813 (S.B. 1535), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 108 - Municipal Bonds for Certain Defined Areas › Subchapter B. Bonds Used to Carry Out Purposes Of › Section 108.051. Bonds Originally Authorized in Abolished Municipal Utility District; Property Taxes

Sec. 108.051.  BONDS ORIGINALLY AUTHORIZED IN ABOLISHED MUNICIPAL UTILITY DISTRICT; PROPERTY TAXES.  (a)  If, before its abolition, a municipal utility district voted to issue bonds secured by property taxes for a defined area under Section 54.806, Water Code, and if some or all of the bonds were not issued, sold, and delivered before the abolition, the governing body of the municipality that abolished the district may issue and sell municipal bonds:
(1)  in an amount not to exceed the amount of the unissued district bonds approved by the voters; and
(2)  for the purpose of carrying out the purposes for which the district bonds were voted.
(b)  The bonds are issued under the authority under which they were voted, particularly Section 59, Article XVI, Texas Constitution.  The bonds must be secured by a tax under the authority under which they were voted, particularly a tax on the property in the defined area of the abolished district.
(c)  The bonds must be authorized by ordinance of the governing body of the municipality.  The ordinance must provide for the levy of taxes on all taxable property in the defined area of the abolished district to pay the principal of and interest on the bonds when due.
Added by Acts 2007, 80th Leg., R.S., Ch. 813 (S.B. 1535), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 108 - Municipal Bonds for Certain Defined Areas › Subchapter B. Bonds Used to Carry Out Purposes Of › Section 108.052. Bonds Authorized Under Public Improvement District; Assessments

Sec. 108.052.  BONDS AUTHORIZED UNDER PUBLIC IMPROVEMENT DISTRICT; ASSESSMENTS.  (a)  If, before its abolition, a municipal utility district voted to issue bonds secured by property taxes for a defined area under Section 54.806, Water Code, and if some or all of the bonds were not issued, sold, and delivered before the abolition, the governing body of the municipality that abolished the district may, on its own motion, establish a public improvement district under Subchapter A, Chapter 372, for the purpose of issuing and selling municipal bonds:
(1)  in an amount not to exceed the amount of the unissued district bonds approved by the voters; and
(2)  for the purpose of carrying out the purposes for which the district bonds were voted, including the cost of facilities constructed after creation of the defined area in accordance with the plan for improvements adopted by the board of directors of the abolished district.
(b)  A municipality that establishes a public improvement district under this section may:
(1)  enter into agreements with developers of property in the public improvement district for the construction, acquisition, expansion, improvement, or extension of improvements in the public improvement district;
(2)  reimburse a developer for the costs of the improvements through assessments payable in installments on property in the public improvement district;
(3)  pledge any type of assessment, including installment assessments, levied against property in the public improvement district as security for bonds and agreements; and
(4)  structure the assessments in any manner determined by the governing body of the municipality.
(c)  In structuring an assessment under this section, the municipality may include in the assessment:
(1)  a coverage factor;
(2)  any prepayment dates;
(3)  terms or amounts; and
(4)  any other methodology or amounts determined necessary or convenient by the governing body of the municipality.
(d)  Any bonds issued by the municipality under this section must be authorized by ordinance of the governing body of the municipality and shall provide for the collection of the assessments as authorized by Subchapter A, Chapter 372, and this chapter.
(e)  The bonds may be payable in installments, as determined by the governing body of the municipality, against the property in the defined area.
(f)  The municipality may use the bonds to:
(1)  pay or reimburse a developer for public improvements in the public improvement district under a development or other agreement with the developer;
(2)  pay the principal of and interest on the bonds when due; or
(3)  pay any combination of purposes described by Subdivisions (1) and (2).
Added by Acts 2007, 80th Leg., R.S., Ch. 813 (S.B. 1535), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 108 - Municipal Bonds for Certain Defined Areas › Subchapter B. Bonds Used to Carry Out Purposes Of › Section 108.053. Pledges to Secure Bonds

Sec. 108.053.  PLEDGES TO SECURE BONDS.  The municipality may further pledge any available funds to secure the bonds, including taxes or other revenue.
Added by Acts 2007, 80th Leg., R.S., Ch. 813 (S.B. 1535), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 108 - Municipal Bonds for Certain Defined Areas › Subchapter B. Bonds Used to Carry Out Purposes Of › Section 108.054. Choice of Laws

Sec. 108.054.  CHOICE OF LAWS.  (a)  A municipality may exercise powers under Section 108.051 or 108.052, but may not exercise powers under both sections for the same defined area.
(b)  A municipality that exercises powers under Section 108.051 or 108.052 to reimburse a developer's infrastructure costs in a defined area shall not be required to provide payment to the developer under Section 43.0715.
Added by Acts 2007, 80th Leg., R.S., Ch. 813 (S.B. 1535), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 108 - Municipal Bonds for Certain Defined Areas › Subchapter B. Bonds Used to Carry Out Purposes Of › Section 108.055. Conflict With Municipal Charter

Sec. 108.055.  CONFLICT WITH MUNICIPAL CHARTER.  This subchapter prevails over a municipal charter provision to the extent of a conflict with this subchapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 813 (S.B. 1535), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 108 - Municipal Bonds for Certain Defined Areas › Subchapter B. Bonds Used to Carry Out Purposes Of › Section 108.056. Effect on Other Municipal Bonds

Sec. 108.056.  EFFECT ON OTHER MUNICIPAL BONDS.  This subchapter does not affect the authority of a municipality to issue bonds for other purposes.
Added by Acts 2007, 80th Leg., R.S., Ch. 813 (S.B. 1535), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 109 - Determination of Defunding Municipalities › Section 109.001. Definition

Sec. 109.001.  DEFINITION.  In this chapter, "division" means the criminal justice division of the office of the governor.
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 1.01, eff. September 1, 2021.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 109 - Determination of Defunding Municipalities › Section 109.002. Applicability of Chapter

Sec. 109.002.  APPLICABILITY OF CHAPTER.  This chapter applies only to a municipality with a population of more than 250,000.
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 1.01, eff. September 1, 2021.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 109 - Determination of Defunding Municipalities › Section 109.003. Defunding Determination

Sec. 109.003.  DEFUNDING DETERMINATION.  Except as provided by Section 109.004, a defunding municipality is a municipality:
(1)  that adopts a budget for a fiscal year that, in comparison to the municipality's preceding fiscal year, reduces the appropriation to the municipality's police department; and
(2)  for which the division issues a written determination finding that the municipality has made the reduction described by Subdivision (1).
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 1.01, eff. September 1, 2021.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 109 - Determination of Defunding Municipalities › Section 109.004. Exceptions

Sec. 109.004.  EXCEPTIONS.  (a)  A municipality is not considered to be a defunding municipality under Section 109.003 if:
(1)  for a fiscal year in which the municipality adopts a budget that is less than the budget for the preceding fiscal year, the percentage reduction to the appropriation to the municipality's police department does not exceed the percentage reduction to the total budget; or
(2)  before the adoption of a budget, the municipality applies for and is granted approval from the division for a reduction to the appropriation to the municipality's police department to account for:
(A)  capital expenditures related to law enforcement during the preceding fiscal year;
(B)  the municipality's response to a state of disaster declared under Section 418.014, Government Code; or
(C)  another reason approved by the division.
(b)  For purposes of making a determination of whether a municipality is a defunding municipality under this chapter, a municipality's appropriation to the municipality's police department does not include:
(1)  any grant money received by the municipality during any fiscal year; or
(2)  any sales and use tax revenue received by the municipality for the purpose of financing a crime control and prevention district under Chapter 363.
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 1.01, eff. September 1, 2021.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 109 - Determination of Defunding Municipalities › Section 109.005. Termination of Defunding Determination

Sec. 109.005.  TERMINATION OF DEFUNDING DETERMINATION.  A municipality's defunding determination under Section 109.003 continues until the division issues a written determination finding that the municipality has reversed the reduction, adjusted for inflation, described by Section 109.003(1).
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 1.01, eff. September 1, 2021.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle A - Municipal Finances › Chapter 109 - Determination of Defunding Municipalities › Section 109.006. Division Duties

Sec. 109.006.  DIVISION DUTIES.  (a)  The division shall:
(1)  compute the inflation rate used to make determinations under Section 109.005 each state fiscal year using a price index that accurately reports changes in the purchasing power of the dollar for municipalities in this state; and
(2)  publish the inflation rate in the Texas Register.
(b)  The division shall adopt rules establishing the criteria the division uses to approve reductions under Section 109.004(2).
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 1.01, eff. September 1, 2021.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 111 - County Budget › Subchapter A. Budget Preparation in Counties With Population of 225,000 or Less › Section 111.001. Subchapter Applicable to Counties With Population of 225,000 or Less; Exception

Sec. 111.001.  SUBCHAPTER APPLICABLE TO COUNTIES WITH POPULATION OF 225,000 OR LESS;  EXCEPTION.  This subchapter applies only to a county that has a population of 225,000 or less and that does not operate under Subchapter C.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1, Sec. 11(e), eff. Aug. 28, 1989.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 111 - County Budget › Subchapter A. Budget Preparation in Counties With Population of 225,000 or Less › Section 111.002. County Judge as Budget Officer

Sec. 111.002.  COUNTY JUDGE AS BUDGET OFFICER.  The county judge serves as the budget officer for the commissioners court of the county.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.