reglab/statecodes huggingface dataset:
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter A. Audit Authority of County Auditor › Section 115.0035. Examination of Funds Collected by County Entity or the District Attorney

Sec. 115.0035.  EXAMINATION OF FUNDS COLLECTED BY COUNTY ENTITY OR THE DISTRICT ATTORNEY.  (a)  For purposes of this section, "accounts" means all public funds that are subject to the control of any precinct, county or district official, including the accounts of law enforcement agencies and the attorney for the state composed of money and proceeds of property seized and forfeited to those officials.
(b)  At least once each county fiscal year, or more often if the county auditor desires, the auditor shall, without advance notice, fully examine the accounts of all precinct, county and district officials.
(c)  The auditor shall verify the correctness of the accounts and report the findings of the examination to the commissioners court of the county at its next term beginning after the date the audit is completed.
(d)  This section does not apply to funds received by the attorney for the state from the comptroller of public accounts pursuant to the General Appropriations Act, or to federal or state grant-in-aid funds received by precinct, county or district officials.
Added by Acts 1989, 71st Leg., ch. 1007, Sec. 1, eff. Sept. 1, 1989.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter A. Audit Authority of County Auditor › Section 115.0036. Examination and Audit of Records of Certain Special Districts

Sec. 115.0036.  EXAMINATION AND AUDIT OF RECORDS OF CERTAIN SPECIAL DISTRICTS.  (a)  The county auditor shall have continual access to and may, at the county auditor's discretion, examine the books, accounts, reports, vouchers, and any other records of:
(1)  a special district if the district's budget requires the approval of the commissioners court; and
(2)  any subsidiary of a special district described by Subdivision (1) that is supported wholly or partly by public funds.
(b)  The county auditor, with the approval of the commissioners court, may audit the books, accounts, reports, vouchers, and any other records of an entity described by Subsection (a) if the county auditor determines an audit is necessary after conducting an examination under Subsection (a).
Added by Acts 2015, 84th Leg., R.S., Ch. 1207 (S.B. 1510), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter A. Audit Authority of County Auditor › Section 115.004. Audit in County With Population of 190,000 or More

Sec. 115.004.  AUDIT IN COUNTY WITH POPULATION OF 190,000 OR MORE.  (a)  This section applies only to a county with a population of 190,000 or more.
(b)  At the end of the fiscal year or the accounting period fixed by law, the county auditor shall audit, adjust, and settle the accounts of the district attorney, the district clerk, and each county or precinct officer.
(c)  If the county auditor is unable to obtain proper reports or an adequate accounting from any of those persons, either during or after the person's term of office, the auditor may require an accounting and may proceed at the county's expense as the auditor considers necessary to protect the interest of the county or of the person entitled to any funds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter B. Audit Authority of Commissioners Court › Section 115.021. Audit and Settlement of Accounts

Sec. 115.021.  AUDIT AND SETTLEMENT OF ACCOUNTS.  The commissioners court of a county shall audit and settle all accounts against the county and shall direct the payment of those accounts.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter B. Audit Authority of Commissioners Court › Section 115.022. Examination of Accounts and Reports; Settlement

Sec. 115.022.  EXAMINATION OF ACCOUNTS AND REPORTS;  SETTLEMENT.  (a)  At each regular term, the commissioners court shall examine all accounts and reports that relate to the county finances and shall compare the accounts and reports with the accompanying vouchers.  The court shall see that any errors in the accounts and reports are corrected.
(b)  The court shall see that all orders made by the court that relate to the accounts and reports are entered in the minutes of the court and that the orders are noted on the accounts and reports.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter C. Independent Audit Authority Generally Applicable › Section 115.032. Special Audit After Voter Petition

Sec. 115.032.  SPECIAL AUDIT AFTER VOTER PETITION.  (a)  If a number of qualified voters residing in a county equal to at least 30 percent of the voters who voted in the county in the most recent general gubernatorial election file a petition for an audit with a district judge who has jurisdiction in the county, there shall be a special audit of all county records.
(b)  On the receipt of the petition, the district judge shall determine its validity.  If the judge determines that the petition meets the requirements of Subsection (a), the judge shall immediately employ a person to prepare a special audit of all county records.  The special auditor must have the qualifications prescribed by law for county auditors.  The special auditor is entitled to receive as compensation for the services rendered a reasonable fee fixed by the district judge and to be paid out of the general fund or officers' salary fund of the county.
(c)  After the preparation of the audit, it shall be filed with the district judge.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 584, Sec. 103, eff. Sept. 1, 1989.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter C. Independent Audit Authority Generally Applicable › Section 115.033. Audit by Finance Committee

Sec. 115.033.  AUDIT BY FINANCE COMMITTEE.  (a)  On the request of the grand jury, at any term of the district court the district judge may appoint a finance committee to examine the financial condition of the county.  The committee must be composed of three persons who are citizens of the county, are of good moral character and intelligence, and are experienced accountants.
(b)  The committee shall examine all of the books, accounts, reports, vouchers, and orders of the commissioners court relating to county finances that have not been examined and reported on by a previous committee.
(c)  The committee shall count all the money in the office of the county treasurer that belongs to the county and shall make any other examination that it considers necessary and proper to determine the true condition of the county finances.
(d)  If necessary, and on the application of the committee, the district court shall send for persons and evidence to help in the investigation.
(e)  On the earliest practicable day after its appointment, the committee shall make a detailed written report to the district court.  The report must state whether the books and records required by law are correctly kept.  The report must fully set out the financial condition of the county and the state of each officer's account and must specify any irregularity, omission, or wrongdoing that the committee discovers.
(f)  The committee shall sign and swear to the report and file it in the office of the district clerk.  The attention of the grand jury shall be called to the report as soon as practicable after the filing.
(g)  Each member of the committee is entitled to receive compensation for services performed under this section at a rate of $3 a day.  The compensation shall be paid for a period not to exceed five days and shall be paid from the county treasury on the certificate of the district judge that states the number of days the member has served.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter D. Independent Audit Authority of Specific Counties › Section 115.041. Independent Audit in County Without Office of County Auditor

Sec. 115.041.  INDEPENDENT AUDIT IN COUNTY WITHOUT OFFICE OF COUNTY AUDITOR.  At least once every two years, the commissioners court of a county that does not have the office of county auditor shall have conducted an independent audit of the books, records, and accounts of each of the county officers, agents, and employees and of any other matter that relates to the county's fiscal affairs.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter D. Independent Audit Authority of Specific Counties › Section 115.042. Audit in Counties With Population Less Than 25,000

Sec. 115.042.  AUDIT IN COUNTIES WITH POPULATION LESS THAN 25,000.  (a)  The commissioners court of a county with a population of less than 25,000 may arrange with one or more other counties to jointly employ and compensate one or more special auditors for the purposes set forth in Section 115.031.
(b)  The commissioners court of a county affected by this section may have an audit made of the county books, either in whole or in part, at any time regardless of whether an arrangement can be made under Subsection (a).  The district judge or the grand jury of the county may also order such an audit.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter D. Independent Audit Authority of Specific Counties › Section 115.043. Audit by Accountant in Counties With Population of 40,000 to 100,000

Sec. 115.043.  AUDIT BY ACCOUNTANT IN COUNTIES WITH POPULATION OF 40,000 TO 100,000.  (a)  This section applies to a county with a population of 40,000 to 100,000.
(b)  On request by the grand jury, at any term of the district court the district judge of the county shall appoint an auditor to examine the condition of the county finances.  The auditor must be of good moral character and intelligence and must be an experienced accountant.
(c)  The auditor shall examine all of the books, accounts, reports, vouchers, and orders of the commissioners court that relate to the county finances, or a part of those items, as ordered and directed by the district judge.  The auditor shall count all the money in the office of the county treasurer that belongs to the county and shall make any other examination that the auditor considers necessary and proper to determine the true condition of the county finances or that is ordered by the district judge.
(d)  If necessary, and on the application of the auditor, the district court shall summon witnesses, compel their attendance, and require them to give testimony.  The district judge shall require the production of all books, records, and other evidence requested or desired by the auditor to conduct the investigation.  The district judge may punish for contempt a person who violates an order of the judge or a process issued under this section.
(e)  The auditor shall make a detailed written report to the district court at the earliest practicable date after appointment.  The report must state:
(1)  the true condition of the county finances;
(2)  whether the books and records required to be kept by law are correctly maintained;  and
(3)  the condition of each officer's account that is included within the scope and provisions of the judge's order.
(f)  The auditor shall specify in the report each irregularity, omission, and wrongdoing discovered.  The auditor shall sign and swear to the report and file it in the office of the district clerk.  The report must be brought to the attention of the grand jury as soon as is practicable after the filing.
(g)  The auditor is entitled to receive compensation for duties performed under this section at a rate not to exceed $25 a day.  The compensation shall be paid for the period that is reasonably required to perform those duties and shall be paid from the county treasury on the certificate of the district judge that states the number of days the auditor has served and the total amount due.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter D. Independent Audit Authority of Specific Counties › Section 115.044. Biennial Independent Audit in Certain Counties

Sec. 115.044.  BIENNIAL INDEPENDENT AUDIT IN CERTAIN COUNTIES.  (a)  A county with a population of 372,000 to 410,000 shall conduct a biennial independent audit of all books, records, and accounts of each district, county, and precinct officer, agent, or employee, including those of the regular county auditor, and of all governmental units of the county hospitals, farms, and other institutions.  The audit must cover all matters relating to the fiscal affairs of the county.  The audit shall be conducted in each even-numbered year and must be completed before December 31 of the year.
(b)  The commissioners court of the county shall employ a disinterested, competent, experienced public accountant or certified public accountant to perform the audit.  The court shall enter a contract for the audit at the first regular meeting of the court in January of each even-numbered year.  The consideration specified in the contract shall be paid from the general fund of the county.
(c)  This section does not prevent a county from conducting an annual independent audit of the records covered by this section.  If a county conducts annual independent audits and completes the audits before December 31 of each year, those audits constitute compliance with the requirements of this section.
(d)  The audit required under this section is in addition to any special audit prepared under Subchapter C or to any regular or special audit report prepared by the regular county auditor.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 597, Sec. 87, eff. Sept. 1, 1991;  Acts 2001, 77th Leg., ch. 669, Sec. 51, 52, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1163 (H.B. 2702), Sec. 68, eff. September 1, 2011.
Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 129, eff. September 1, 2023.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter D. Independent Audit Authority of Specific Counties › Section 115.045. Annual Independent Audit in Counties With Population of 350,000 or More

Sec. 115.045.  ANNUAL INDEPENDENT AUDIT IN COUNTIES WITH POPULATION OF 350,000 OR MORE.  (a)  A county with a population of 350,000 or more shall conduct an annual independent audit of all books, records, and accounts of each district, county, and precinct officer, agent, or employee, including the regular county auditor, and of all governmental units of the county hospitals, farms, and other institutions.  The audit shall cover all matters relating to the fiscal affairs of the county.
(b)  The commissioners court of the county shall employ a disinterested, competent, experienced public accountant or certified public accountant to perform the audit.  The court shall contract for the audit at the regular January meeting of the court.  The consideration specified in the contract shall be paid from the general fund of the county.
(c)  The audit required under this section is in addition to any special audit prepared under Subchapter C  or to any regular or special audit report prepared by the regular county auditor.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 115 - Audit of County Finances › Subchapter Z. Miscellaneous Provisions › Section 115.901. Examination of Certain Records by County Auditor or County Treasurer

Sec. 115.901.  EXAMINATION OF CERTAIN RECORDS BY COUNTY AUDITOR OR COUNTY TREASURER.  (a)  The county auditor or, in a county that does not have the office of county auditor, the county treasurer, shall examine the accounts, dockets, and records of each clerk, justice of the peace, and constable and of the sheriff and county tax assessor-collector to determine if any money belonging to the county and in the possession of the officer has not been accounted for and paid over according to law.
(b)  If the auditor or treasurer finds that such money does exist, the auditor or treasurer shall report the findings of the examination to the commissioners court of the county at its next term for the purpose of instituting a suit for the recovery of the money.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 979, Sec. 1, eff. Aug. 28, 1989.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter A. General Provisions › Section 116.001. Definitions

Sec. 116.001.  DEFINITIONS.  In this chapter:
(1)  "Bank" means a:
(A)  bank organized under the laws of this state, another state, or federal law that has its main office or a branch office in this state;  or
(B)  savings and loan association or savings bank organized under the laws of this state, another state, or federal law that has its main office or a branch office in this state.
(2)  "Demand deposit" means a deposit of funds that may be withdrawn on the demand of the depositor.
(3)  "Time deposit" means a deposit of funds subject to a contract between the depositor and the depository under which the depositor may not withdraw any of the funds by check or by another manner until the expiration of a certain period following written notice of the depositor's intent to withdraw the funds.
(4)  "Subdepository bank" means an authorized bank, other than a depository, that holds demand deposits, not exceeding the Federal Deposit Insurance Corporation's limit, of a district, county, or precinct officer.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 527, Sec. 1, eff. Sept. 1, 1991;  Acts 1993, 73rd Leg., ch. 234, Sec. 4, eff. Sept. 1, 1993;  Acts 1999, 76th Leg., ch. 344, Sec. 5.009, eff. Sept. 1, 1999.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter A. General Provisions › Section 116.002. Money Affected

Sec. 116.002.  MONEY AFFECTED.  (a)  This chapter applies to money collected or held by a district, county, or precinct officer in a county and by the officers of a defined district or subdivision in the county, including the funds of a municipal or quasi-municipal subdivision or corporation that has the power to select its own depository but has not done so.  The money shall be deposited under this chapter, and the money shall be considered in fixing, and is protected by, a county depository's bond.
(b)  Orders for payment, checks, and vouchers evidencing the money deposited in the county depository under Subsection (a) are subject to audit and countersignature as provided by law.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 606 (S.B. 373), Sec. 21, eff. September 1, 2011.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter B. Establishment of Depository › Section 116.021. Depository and Subdepository Contracts

Sec. 116.021.  DEPOSITORY AND SUBDEPOSITORY CONTRACTS.  (a)  The commissioners court of a county shall select by the process provided by this subchapter or by Subchapter C, Chapter 262, one or more banks in the county and enter a contract with each selected bank for the deposit of the county's public funds.  The county shall contract with a bank under this section for a two-year or four-year contract term.  On expiration of a contract under this section, the contract may be renewed for two years under terms negotiated by the commissioners court.
(b)  If the contract is for a four-year term, the contract shall allow the county to establish, on the basis of negotiations with the bank, new interest rates and financial terms of the contract that will take effect during the final two years of the four-year contract.
(c)  On the renewal of a contract, the county may negotiate new interest rates and terms with the bank for the next two years in the same way and subject to the same conditions as provided by Subsection (b).
(d)  If for any reason a county depository is not selected under Subsection (a), the commissioners court, at any subsequent time after 20 days' notice, may select, by the process described by Section 116.024 or by negotiated bid, one or more depositories in the same manner as at the regular time.
(e)  If the commissioners court selects a depository by the process provided by Subchapter C, Chapter 262, the depository may be selected by:
(1)  competitive bidding; or
(2)  another method under that subchapter that the county is qualified to use.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 527, Sec. 2, eff. Sept. 1, 1991;  Acts 1995, 74th Leg., ch. 65, Sec. 1, eff. Aug. 28, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 899 (H.B. 2641), Sec. 1, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter B. Establishment of Depository › Section 116.022. Notice

Sec. 116.022.  NOTICE.  (a)  Once each week for at least 20 days before the date to submit an application under Section 116.023(a), the county judge shall place over the judge's name in a newspaper of general circulation in the county a notice that the commissioners court intends to receive applications from which to select a depository bank.  A notice shall also be posted at the courthouse door of the county.
(b)  If a newspaper is not published in the county, the newspaper notice shall be placed in a newspaper published in the nearest county.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1995, 74th Leg., ch. 65, Sec. 2, eff. Aug. 28, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 899 (H.B. 2641), Sec. 2, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter B. Establishment of Depository › Section 116.023. Applications

Sec. 116.023.  APPLICATIONS.  (a)  A bank in the county that wants to be a county depository must deliver its application to the county judge or a designated representative of the judge on or before a date set by the commissioners court that is no later than the 60th day before the date of the expiration of the existing depository contract.
(b)  The application must state the amount of the bank's paid-up capital stock and permanent surplus, and the application must be accompanied by:
(1)  a statement showing the financial condition of the bank on the date of the application;  and
(2)  a certified check or cashier's check for at least one-half percent of the county's revenue for the preceding year.
(c)  The certified or cashier's check that accompanies an application is a good-faith guarantee on the part of the applicant that if accepted as a county depository it will execute the bond required under this chapter.  If a bank is selected as a depository and does not provide the bond, the county shall retain the amount of the check as liquidated damages, and the county judge shall readvertise for applications, if necessary, to obtain a depository for the county.
(d)  A bank in the county that wants to be a county subdepository must comply with Subsections (a) and (b)(1). The subdepository's application must include a proposal outlining its security for the county public funds to be held in addition to revenue offers.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 628, Sec. 4, eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 527, Sec. 3, eff. Sept. 1, 1991.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 899 (H.B. 2641), Sec. 3, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter B. Establishment of Depository › Section 116.024. Selection of Depositories and Subdepositories

Sec. 116.024.  SELECTION OF DEPOSITORIES AND SUBDEPOSITORIES.  (a)  At the meeting at which banks are to be selected as county depositories, the commissioners court shall:
(1)  enter in the minutes of the court all applications filed with the county judge;
(2)  consider all applications; and
(3)  select the qualified applicants that offer the most favorable terms and conditions for the handling of the county funds.
(b)  The commissioners court may reject those applicants whose management or condition, in the opinion of the commissioners court, does not warrant placing county funds in their possession.
(c)  After selecting one or more county depositories, the commissioners court shall immediately return the certified checks of the rejected applicants.  The commissioners court shall return the check of a successful applicant when the applicant executes and files a depository bond that is approved by the commissioners court.
(d)  The conflict of interests provisions of Section 131.903 apply to the selection of the depositories.
(e)  After selecting one or more subdepositories, the commissioners court shall immediately notify each selected applicant of its selection.  Within 15 days, the selected applicant must file a bond or other security as approved by the commissioners court.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 527, Sec. 4, 5, eff. Sept. 1, 1991;  Acts 1993, 73rd Leg., ch. 268, Sec. 29, eff. Sept. 1, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 899 (H.B. 2641), Sec. 4, eff. June 15, 2007.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter B. Establishment of Depository › Section 116.025. Designation of Depository or Subdepository

Sec. 116.025.  DESIGNATION OF DEPOSITORY OR SUBDEPOSITORY.  When security is provided in accordance with Subchapter C  and is approved by the commissioners court, the commissioners court shall, by an order entered in its minutes, designate the bank as a depository or subdepository for the funds of the county.  The designation is effective until the end of the 60th day after the date fixed for the next selection of a depository or subdepository.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 527, Sec. 6, eff. Sept. 1, 1991.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter B. Establishment of Depository › Section 116.026. Applicants Outside County

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.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1043 (S.B. 158), Sec. 1, eff. June 18, 2023.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter B. Establishment of Depository › Section 116.027. Selection of Nonapplicant Depository

Sec. 116.027.  SELECTION OF NONAPPLICANT DEPOSITORY.  (a)  If no application to be a county depository is submitted, or if all of the applications are declined, the commissioners court shall deposit the funds of the county with any one or more banks in the county or in the adjoining counties in the amounts and for the periods as the commissioners court considers advisable.
(b)  A bank that receives deposits under this section shall provide security in the manner and form, and subject to the same conditions, as is required for a depository of county funds.  The penalty of the security must at least equal the total amount of county funds deposited with the bank.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter B. Establishment of Depository › Section 116.028. Successor Bank as County Depository

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.
Added by Acts 2023, 88th Leg., R.S., Ch. 1043 (S.B. 158), Sec. 2, eff. June 18, 2023.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.051. Qualification as Depository or Subdepository

Sec. 116.051.  QUALIFICATION AS DEPOSITORY OR SUBDEPOSITORY.  Within 15 days after the date a bank is selected as a county depository or subdepository, the bank must qualify as the depository or subdepository by providing security for the funds to be deposited by the county with the bank.  The depository or subdepository may secure these funds, at the option of the commissioners court, by:
(1)  personal bond;  surety bond;  bonds, notes, and other securities;  first mortgages on real property;  real property;  certificates of deposit;  or a combination of these methods, as provided by this subchapter;  or
(2)  investment securities or interests in them as provided by Chapter 726, Acts of the 67th Legislature, Regular Session, 1981 (Article 2529b-1, Vernon's Texas Civil Statutes).
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1, Sec. 15(b), eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 527, Sec. 7, eff. Sept. 1, 1991.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.052. Personal Bond

Sec. 116.052.  PERSONAL BOND.  (a)  One or more personal bonds executed and filed with the commissioners court, payable to the county judge and the judge's successors in office, qualify as security under this subchapter if:
(1)  the bonds are signed by at least five solvent sureties who own unencumbered real property in the state that is not exempt from execution under the constitution and other laws of this state;
(2)  the unencumbered and nonexempt real property owned by the sureties has a value at least equal to the amount of the bonds;  and
(3)  the bonds are approved by the commissioners court.
(b)  When a bond is filed for approval with the commissioners court under Subsection (a), the sureties shall also file a statement containing:
(1)  a description of the unencumbered and nonexempt real property sufficient to identify it on the ground;  and
(2)  the value of each tract of real property listed, including the value of the improvements on the property.
(c)  After the commissioners court approves a personal bond, it shall be filed in the county clerk's office with the statement of the sureties attached to the bond.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.053. Surety Bond

Sec. 116.053.  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 county judge and the judge's successors in office and filed with the commissioners court, qualifies as security under this subchapter if the bond is approved by the commissioners court.
(b)  After the commissioners court approves a surety bond, it shall be filed in the county clerk's office.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.054. Bonds, Notes, and Other Securities

Sec. 116.054.  BONDS, NOTES, AND OTHER SECURITIES.  (a)  A county depository may pledge with the commissioners court as security under this subchapter:
(1)  a bond, note, security of indebtedness, or other evidence of indebtedness of the United States if the evidence of indebtedness is supported by the full faith and credit of the United States or is guaranteed as to principal and interest by the United States;
(2)  a bond of this state or of a county, municipality, independent school district, or common school district;
(3)  a bond issued under the federal farm loan acts;
(4)  a road district bond;
(5)  a bond, pledge, or other security issued by the board of regents of The University of Texas System;
(6)  bank acceptances of banks having a capital stock of at least $500,000;
(7)  a note or bond secured by mortgages insured and debentures issued by the Federal Housing Administration;
(8)  shares or share accounts of a savings and loan association organized under the laws of this state or of a federal savings and loan association domiciled in this state if the payment of the share or share accounts is insured by the Federal Savings and Loan Insurance Corporation;  or
(9)  a bond issued by a municipal corporation in this state.
(b)  Securities provided under this section must have a total market value equal to the amount of the depository bond.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.055. First Mortgages on Improved Real Property

Sec. 116.055.  FIRST MORTGAGES ON IMPROVED REAL PROPERTY.  (a)  If approved by the commissioners court, closed first mortgages on improved and unencumbered real property located in this state that are assigned to the county judge in a duly acknowledged instrument qualify as security under this subchapter.
(b)  Before approving a mortgage as security, the commissioners court shall require:
(1)  a written opinion by an attorney selected by the commissioners court showing that the lien is superior to any other claim to or right in the real property;  and
(2)  insurance approved by the county judge covering the improvements on each tract of pledged real property and providing that a loss is payable to the county judge.
(c)  An insurance policy required under Subsection (b) must be issued by a stock fire insurance company or mutual fire insurance company that has a $100,000 surplus in excess of all legal reserves and other liabilities.
(d)  A mortgage accepted as security under this section shall immediately be recorded in each county in which part of the real property is located.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.056. Real Property

Sec. 116.056.  REAL PROPERTY.  (a)  If approved by the commissioners court, improved and unencumbered real property, pledged directly by deed of trust to a trustee selected by the commissioners court, with the county judge as beneficiary, qualifies as security under this subchapter.
(b)  Before approving real property offered as security, the commissioners court shall require:
(1)  a written opinion by an attorney selected by the commissioners court showing that the lien is superior to any other claim to or right in the real property;  and
(2)  insurance approved by the county judge covering the improvements on the pledged real property and providing that a loss is payable to the county judge.
(c)  An insurance policy required under Subsection (b) must be issued by a stock fire insurance company or mutual fire insurance company that has a $100,000 surplus in excess of all legal reserves and other liabilities.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.0565. Certificate of Deposit

Sec. 116.0565.  CERTIFICATE OF DEPOSIT.  (a)  A certificate of deposit qualifies as security under this subchapter if the certificate is:
(1)  held in the custody of a Federal Reserve Bank for safekeeping and made the subject of a valid pledge agreement designating the county as the beneficiary of the pledge agreement;
(2)  insured in full by the Federal Savings and Loan Insurance Corporation or the Federal Deposit Insurance Corporation;
(3)  described in detail by a safekeeping receipt issued to the county by the Federal Reserve Bank having custody of the certificates; and
(4)  issued with the county as registered owner.
(b)  A person to whom presentment of a certificate of deposit pledged to secure county funds is made may not pay or otherwise accept the certificate unless the certificate or the safekeeping receipt required by this section has been endorsed by the county and the depository.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 15(b), eff. Aug. 28, 1989.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.057. Condition of Personal Bond or Contract for Securities

Sec. 116.057.  CONDITION OF PERSONAL BOND OR CONTRACT FOR SECURITIES.  (a)  A personal bond provided or a contract for the pledge of securities under this subchapter must be conditioned that the depository will:
(1)  faithfully keep the county funds and faithfully perform all duties and obligations imposed by law on the depository;
(2)  pay all checks drawn on a demand deposit account in a depository on presentation by the county treasurer;
(3)  pay all checks drawn on a time deposit account on presentation after the expiration of the required period of notice;  and
(4)  account for the county funds as required by law.
(b)  A suit on a personal bond or a contract for securities provided or pledged under this subchapter must be tried in the county for which the depository is selected.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.058. Amount of Security Required

Sec. 116.058.  AMOUNT OF SECURITY REQUIRED.  (a)  Personal or surety bonds that secure county deposits must be in an amount equal to the estimated highest daily balance of the county, as determined by the commissioners court.  However, the commissioners court may not estimate the highest daily balance at an amount that is less than 75 percent of the highest daily balance of the county for the preceding year, less the amount of bond funds received and expended.
(b)  Securities pledged to secure county funds on deposit in a depository must be in an amount equal to the amount of those funds.  However, real property securities may not be required in an amount greater than 25 percent of the assessed value of the property in the county, as shown by the certified tax roll for the preceding year.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.059. Valuation of Real Property Provided as Security

Sec. 116.059.  VALUATION OF REAL PROPERTY PROVIDED AS SECURITY.  The commissioners court shall investigate all real property security and determine the value at which the property will be accepted.  The commissioners court may not accept real property as security at a value greater than 50 percent of the reasonable market value of the property covered by a mortgage unless the mortgage is insured or guaranteed by the Federal Housing Administration.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter C. Security for Funds Held by Depository › Section 116.060. Security Not Required for Federally Insured Deposits

Sec. 116.060.  SECURITY NOT REQUIRED FOR FEDERALLY INSURED DEPOSITS.  A depository is not required to provide security for the deposit of county funds to the extent the deposits are insured under 12 U.S.C.A. Sections 1811-1832.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter D. Maintenance and Modification of Security › Section 116.081. New Bond

Sec. 116.081.  NEW BOND.  (a)  The commissioners court may by written order require a depository to execute a new bond whenever the commissioners court considers it advisable or considers it necessary for the protection of the county.
(b)  Except for an additional bond required under Section 116.087, if a depository fails for any reason to file the required new bond within five days after the date the depository is served with a copy of the order, the commissioners court may select a new depository in the same manner as it would select a depository at the regular time.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter D. Maintenance and Modification of Security › Section 116.082. Substitution of Securities

Sec. 116.082.  SUBSTITUTION OF SECURITIES.  (a)  After reasonable notice to the commissioners court, a depository is entitled to substitute one type of security for another or replace particular securities with others of the same type if the substituting or replacing security meets the requirements of law and is approved by the commissioners court.  Instead of approval of each substitute or replacement security by the commissioners court, the commissioners court may:
(1)  adopt a procedure for approving a substitute or replacement security under this section;  and
(2)  designate a county employee or official, including a county judge, to approve the substitute or replacement security under the procedure adopted under Subdivision (1).
(b)  The county judge shall execute the necessary instruments to transfer to the depository or its order a lien withdrawn from real property for which another security is substituted.
(c)  The commissioners court may direct the manner in which securities pledged in place of personal or surety bonds are to be deposited.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 2003, 78th Leg., ch. 742, Sec. 1, eff. June 20, 2003.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter D. Maintenance and Modification of Security › Section 116.083. Release of Excess Security

Sec. 116.083.  RELEASE OF EXCESS SECURITY.  If the securities pledged by a depository to secure county funds exceed the amount required under this chapter, the commissioners court shall permit the release of the excess.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 4 - Finances › Subtitle B - County Finances › Chapter 116 - Depositories for County Public Funds › Subchapter D. Maintenance and Modification of Security › Section 116.084. Inadequate Security

Sec. 116.084.  INADEQUATE SECURITY.  If for any reason the county funds on deposit with the county depository exceed the amount of security pledged, the depository shall immediately pledge additional security with the commissioners court.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.