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