LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 31, 1997
         
         
      TO: Honorable Bob Hunter, Chair            IN RE:  House Bill No. 2838
          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-As Introduced
         
No significant fiscal implication to the State is anticipated. 
 
         
The bill would require regional library systems to return to 
the State Library and Archives Commission all funds in excess 
of 5 percent of annual system operation grant general revenue 
funds that are unexpended at the end of the second quarter following 
the fiscal year in which they were granted.   The bill would 
take effect September 1, 1997.

Current law requires libraries 
to refund all unexpended grants to the State Library and Archives 
Commission. The average general revenue grant to regional library 
systems has been approximately $470,000.  If regional library 
systems retained the full 5 percent permitted by the bill, there 
would be a small gain to local governments.  The loss to the 
general revenue fund would be minimal.
         
 
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TH