SCT S.B. 515 75(R)    BILL ANALYSIS


STATE FEDERAL & INTERNATIONAL RELATIONS
S.B. 515
By: Moncrief (Carter)
4-29-97
Committee Report (Unamended)



BACKGROUND 

Currently, the North Texas Regional Library System, comprising 66 public
libraries in 20 northwest Texas counties, is an independent nonprofit
corporation which contracts with the Texas State Library and Archives
Commission to provide services in that region.  Prior to 1993, the Library
Systems Act required regional library systems to maintain cash reserves
equal to 24 percent of their proposed annual contract.  However, in 1993,
this cash reserve requirement was replaced with the present system, which
identifies and minimizes risks to both state and federal funds, and
establishes appropriate indemnification.  This legislation proposes the
re-establishment of a cash reserve for the North Texas Regional Library
System in an effort to meet costs that cannot be paid with state and
federal grant funds and to offset the problem of interrupted cash flow to
the system.  

PURPOSE

As proposed, C.S.S.B. 515 establishes a cash reserve requirement for
regional library systems. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas State Library and Archives
Commission under SECTION 1 (Section 441.131, Government Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 441.131, Government Code, by adding Section (c),
to require the Texas State Library and Archives Commission (commission),
in order to ensure the sound management and viability of regional library
systems, to include in its rules provisions stipulating a cash reserve
requirement for regional library systems.  Authorizes regional library
systems, to enable the accumulation of sufficient reserves for the sole
purpose of cash flow management, to retain up to five percent of their
annual system operation grant general revenue funds from year to year
until the commission's reserve requirement is satisfied.  Establishes the
terms regarding the holding, reporting, auditing, and interest earned on
these funds.  Provides that these funds remain the property of the state,
and if the commission ceases to contract with a regional library system,
such funds must be fully and promptly returned as provided by this
section. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.