By: Moncrief S.B. No. 515 A BILL TO BE ENTITLED AN ACT 1-1 relating to cash reserves in regional library systems. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Section 441.131, Government Code, is amended by 1-4 adding Subsection (c) to read as follows: 1-5 (c) To ensure the sound management and viability of regional 1-6 library systems, the commission shall include in its rules 1-7 provisions stipulating a cash reserve requirement for regional 1-8 library systems. To enable the accumulation of sufficient reserves 1-9 for the sole purpose of cash flow management, regional library 1-10 systems may retain up to five percent of their annual system 1-11 operation grant general revenue funds from year to year until the 1-12 commission's reserve requirement is satisfied. These funds must be 1-13 held in a federally insured account and the commission may provide 1-14 for periodic reporting of the funds and their inclusion in the 1-15 annual audit. Interest earned on these funds shall be retained in 1-16 this account and shall be subject to the same terms and reporting 1-17 as the corpus. These funds remain the property of the state, and 1-18 if the commission ceases to contract with a regional library 1-19 system, such funds must be fully and promptly returned as provided 1-20 by this section. 1-21 SECTION 2. This Act takes effect September 1, 1997. 1-22 SECTION 3. The importance of this legislation and the 1-23 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.