LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 21, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 515, Committee Report 1st House, Substituted
          Committee on Finance                              By: Moncrief
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB515 ( relating 
to cash reserves in regional library systems) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB515-Committee Report 1st House, Substituted
         
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 ,RR ,JA