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. 1-36 * * * * *