1-1     By:  Moncrief                                          S.B. No. 515

 1-2           (In the Senate - Filed February 10, 1997; February 12, 1997,

 1-3     read first time and referred to Committee on Finance;

 1-4     March 24, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 11, Nays 0; March 24, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 515                 By:  Moncrief

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to cash reserves in regional library systems.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 441.131, Government Code, is amended by

1-13     adding Subsection (c) to read as follows:

1-14           (c)  To ensure the sound management and viability of regional

1-15     library systems, the commission shall include in its rules

1-16     provisions stipulating a cash reserve requirement for regional

1-17     library systems.  To enable the accumulation of sufficient reserves

1-18     for the sole purpose of cash flow management, regional library

1-19     systems may retain up to five percent of their annual system

1-20     operation grant general revenue funds from year to year until the

1-21     commission's reserve requirement is satisfied.  These funds must be

1-22     held in a federally insured account and the commission may provide

1-23     for periodic reporting of the funds and their inclusion in the

1-24     annual audit.  Interest earned on these funds shall be retained in

1-25     this account and shall be subject to the same terms and reporting

1-26     as the corpus.  These funds remain the property of the state, and

1-27     if the commission ceases to contract with a regional library

1-28     system, such funds must be fully and promptly returned as provided

1-29     by this section.

1-30           SECTION 2.  This Act takes effect September 1, 1997.

1-31           SECTION 3.  The importance of this legislation and the

1-32     crowded condition of the calendars in both houses create an

1-33     emergency and an imperative public necessity that the

1-34     constitutional rule requiring bills to be read on three several

1-35     days in each house be suspended, and this rule is hereby suspended.

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