LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 16, 1997
         
         
      TO: Honorable Bob Hunter, Chair            IN RE:  House Bill No. 2838, Committee Report 1st House, as amended
          Committee on State, Federal & International Relations                              By: Carter
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2838 ( Relating 
to cash reserves in regional library systems.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2838-Committee Report 1st House, as amended
         
No fiscal implication to the State is anticipated.


         
The bill would require the State Library and Archives Commission 
to include in its rules provisions stipulating a cash reserve 
requirement for regional library systems.  The bill would allow 
regional library systems to retain up to five percent from annual 
system operation grant general revenue funds until the reserve 
requirement is satisfied. The funds would remain the property 
of the state and would be required to be returned upon termination 
of the commission's contract with the regional library system. 
 The bill would be effective September 1, 1997. 
         
 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TH ,JA