The Attorney General of Texas
NOV’Naber 20, 1985
JIM MAlTOX
Attorney General
Supreme Cart Buildin Ms. Deborah Jo Mertdors Opinion No. ~~-383
P. 0. Box 1254S Robertson County mditor
Austin. l%. 78711-2548 P. 0. Box 646 Re: Whether county funds must b
512147%?501 Franklin, Texas 77856 deposited in a designated count
Talex 9101874.1367
Telecoplu Sl2/4?502+8
depository
Dear Hs. Meadors:
714 Jackson. Suite 700
Dallas. TX. 75202-
Pursuant to gJur limited authority to request opinions, you 85
2141742-6944
two questions in regard to the depositories for county funds i
Xobertson County. You inform us that at the present time, the count
4S24 AlMRD Ave.. Suit0 180 has selected, thrnzgh the “bid” process, a county depository for th
El Paso. TX. 799D5.2793 next two years. U’e assume that this “bid” process is the procedur
915!- outlined in artic:.es 2545 aid 2546, V.T.C.S. You also inform us tha
all of the county funds with the exception of the “Road and aridg
1001 Texas. Suits 7W
Precinct Fund” hmre ,been deposited in the bank designated as tb
llouston, TX. 77002-3111 couaty depository.
71312296888
You further kadicate that this “Road and Bridge Preclncc Fund
was initially deposited in the designated depository bank when tb
808 Broadway, Suite 312
Lubbock. TX. 79401-3479
taxes were colleci:ed’ by the tax collector ‘for that purpose. However
mw747.5238 these funds were tubsequently transferred to one of four banks locate
in each of the for.r county precincts. We understand that warrants ar
drawn on these four accounts located in the varfous banks and ar
4309 N. Tanth. Suite B
signed both by the county auditor and the treasurer. You first as
McAllen, TX. 7850%1885
512lM2-4547 whether this depo6:ltoty system is in compllmce with state law. W
conclude that the system is contrary to the system prescribed by th
leglalature In articles 2544-2549. V.T.C.S.
2w M.,” Plaza. SIllto 400,
San Antonio. TX. 782052787
As a prel%miusry matter, the Robertson County commissioners tour
%?/2254191
has only the pomrs conferred either expressly or by necessar
implication by thtr constitution and statutes of this state. See Tex
An Equal OPP’XtunltYl Coust. art. V, 51~8; Canales v. Laughlin, 214 S.W.Zd 451, 4r(Tex
A,,lr,,mtlve Action EmPlOW 1948). The 1egis:iature has required a county commissioners court t
follow a prescrite,d procedure in exercising its duty to safeguar
county funds. See V.T.C.S. arts. 2544-2549. A conmissioners court I
authorized to ez;r %nto a contract with any bank in the county as
depository of county funds, after giving public notice that sue
contract is made. See V.T.C.S. art. 2544. More than one count
depository msy be selected. -See V.T.C.S. art. 2546.
I
p: 1756
ns. Deborah Jo Meadors - Pag’e 2 (JIG383)
Article 2549(a), V.T.C.,S., provides:
(a) As soon aB said bond be given and approved
by the Comissione:rs Court, an order shall be made
and entered upon the minutes oft said Court desig-
narinn such bankian corooratlon, association or
individual banker, as a ‘depositorg for the funds
of said county r~n.til sixty (60) days after the
time fixed for th; next selection of a depository;
and thereuuon.
. it-shall be the duty of the county
treasurer of sa:.d county Immediately upon th;
making of such order, to transfer to said deposi-
tory all the fuud.a belonging to said county . . .
and Immediately r.pon receipt of any money there-
after, to deposit the same with said depository to
the credit of said county. . . . It shall also
be the duty of tha tax collector of such county
to deposit all tlu:es collected by him, or under
his authority, for the State and such County . . .
in such depository or depositories, as soon as
collected. . . .. (Emphasis added).
Thus, all county funds are to be deposited In the county depository
for the prescribed period of time. The ouly exception to this
requir-t is found in ar<:Lc&e 2549(c), V.T.C.S.. which provides in
part:
(c) Unless rcpressly prqhibited by law or
unless ‘it is in c:ontraventiort of any depository
contract between ,L county and say depository bank,
the Commissionerr, Court may direct the county
treasurer to:
(1) withdr;nr any amount of funds of the
county that axe deposited In a county deposl-
tory and that ere not required inrmcdiately to
pay obligrtionl$ of the county or required to be
kept on deposit under the terms of the deposi-
tory contract; and
(2) invest those funds In direct debt
securities of zhe United States.
Consequently, the present depository system In Robertson County is
prohibited by this provisiorl..
As indicated above, tL? road and bridge fund is presently located
in four banks that bave not been designated as county depositories.
The “road and bridge” fund is lone of three statutory funds which are
p. 1757
Ms. Deborah Jo Meadors - Page 3 (JM-383)
to be deposited by the treasurer into the county depository.
See V.T.C.S. art. 1628; see also Attorney General Opinion E-1185
m7a). In Attorney Genera,1 Opinion ~-33 (1967) it was held:
The purpose of the procedures~ prescribed by the
statutes relating to the selection of 8 county
depository is to secure to the county a safe.
responsible depository for its funds with a return
of interest for ‘Jj6e thereof. . . .
There is no indication that the commissioners court has required the
additional four banks to ~:omplp with any of the bonding requirement6
specified In article 2347. V.T.C.S. Thus, the funds deposited are
unprotected by the procedure. In addition. there is also no
indication that these four banks have submitted applications to be
considered as a proper cclusty depository. Accordingly, we conclude
that the present depository systen Is contrary to the intent and
purpose of articles 2544 tlueough 2349, V.T.C.S.
You also aak whether it is perniasible to leave these road and
bridge funds in the four b,anks until such time as you are to select
your county depository. We think not. As indicated above, article
2349 require6 that these funds be deposited in the county depository
until “60 days after thi time fLxed for the next selection of a
depository.” See V.T.C.S. art. 2349. See also Attorney General
Opinion O-38377941) (bank selected remains the county depository
during the terms of the coutract).
SUMMARY
A county comnissL~mer6 court is not authorized to
deposit funds Ln banks which have not been
designated as the county depository in compliance
with articles 2344 through 2349, V.T.C.S. Article
2349 requires county officials to depoeit all
county fund6 in the designated county depository.
JIM MATTOX
Attorney Ganeral of Texas
NARYKELLER
Executive Assistant Attorney General
p. 1738
Ms. Deborah Jo Meadors - Page 4 (m-383)
ROBERTGRAY
Special Assistant Attorney General
RICK GILPIN
Chairman. Opinion Comittee
Prepared by Tony Gulllory
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Rick Gilpin, chairman
Co1111 Carl
Susan Garrhm
Tony Guillory
Jim Hoellingar
Jenalfcr &Lggs
Nancy Sutton
Sarah Woelk
p. 1759