By Carter H.B. No. 2838 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to cash reserves in regional library systems. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 441.131, Government Code, is amended by 1-5 adding Subsection (c) to read as follows: 1-6 (c) To ensure the sound management and viability of regional 1-7 library systems, the commission shall include in its rules 1-8 provisions stipulating a cash reserve requirement for regional 1-9 library systems. To enable the accumulation of sufficient reserves 1-10 for the sole purpose of cash flow management, regional library 1-11 systems may retain up to five percent of their annual system 1-12 operation grant general revenue funds from year to year until the 1-13 commission's reserve requirement is satisfied. These funds must be 1-14 held in a federally insured account and the commission may provide 1-15 for periodic reporting of the funds and their inclusion in the 1-16 annual audit. Interest earned on these funds may be retained in 1-17 this account and shall be subject to the same terms and reporting 1-18 as the corpus. These funds remain the property of the state, and 1-19 if the commission ceases to contract with a regional library 1-20 system, such funds must be fully and promptly returned as provided 1-21 by this section. 1-22 SECTION 2. This Act takes effect September 1, 1997. 1-23 SECTION 3. The importance of this legislation and the 1-24 crowded condition of the calendars in both houses create an 2-1 emergency and an imperative public necessity that the 2-2 constitutional rule requiring bills to be read on three several 2-3 days in each house be suspended, and this rule is hereby suspended. 2-4 COMMITTEE AMENDMENT NO. 1 2-5 Amend House Bill 2838 Sec 1 Line 15 change may to "Shall". 2-6 Pitts