SCT H.B. 2838 75(R)    BILL ANALYSIS


STATE FEDERAL & INTERNATIONAL RELATIONS
H.B. 2838
By: Carter
4-15-97
Committee Report (Amended)

Background In 1994, the North Texas Library System (NTRLS) was changed
from the typical library system, under the administration of the Fort
Worth Public Library  and the City of Fort Worth to an independent
nonprofit corporation.  Because NTRLS no longer has the protection of a
city or other Major Resource Center behind it, the State Archives and
Library Commission has imposed cash reserve requirements on NTRLS to
provide for possible interruption of cash flow to the system or the
possibility of incurring costs that cannot be paid with government grant
funds. 

Purpose To facilitate the establishment of a cash reserve fund for the
North Texas Library System. 
 
Rulemaking Authority HB 2838 gives rulemaking authority to the State
Archives and Library Commission to set up the cash reserve plan for
regional library systems including audit and reporting procedures. 
 
SECTION 1.  Amends 441.131, Government Code to require the State Archives
and Library                               Commission to impose a cash
reserve requirement on regional library systems. The
systems may retain five percent of their grant funds from year to year
until the                                 reserve requirement is
satisfied. The funds must be held in a federally insured
account and the commission must set audit and reporting terms.  Interest
earned                              may be retained in the account and is
subject to the same terms as the main body of                       the
fund.  The fund remains the property of the state and must be fully and
promptly returned if the commission ceases to contract with the regional
library                             system. 
 
SECTION 2. Effective date September 1, 1997.
 
SECTION 3.  Emergency clause.


EXPLANATION OF AMENDMENTS 

The amendment of HB 2838 changes Section 1, Line 15 from may to shall.