Current through Reg. 49, No. 38; September 20, 2024
(a) A nonprofit corporation organized under
the Library Systems Act, §441.131, seeking to contract with the Texas
State Library and Archives Commission as a regional library system must
demonstrate fiscal and administrative responsibility as determined annually by
the state library from the following information submitted by the nonprofit
corporation:
(1) articles of incorporation
with the Office of the Secretary of State;
(2) bylaws adopted by the board of directors
and approved by the membership;
(3)
policies and procedures of the corporation on financial management, personnel,
and procurement as adopted by the board of directors;
(4) long-range plan (biennial budget) (see
§
RSA 1.43
of this title (relating to Long-Range Plan of System Services));
(5) annual program and budget (see §
RSA 1.44
of this title (relating to Annual Program and Budget for System
Services));
(6) documentation of
tax status with appropriate authorities; and
(7) detailed business plan, including cash
flow analysis, cash flow management plan, verification of cash reserves and
lines of credit, risk analysis, risk management plan, verification of specified
insurance coverage, and a plan providing for the annual accumulation of cash
reserves as described in §
RSA 1.64
of this title (relating to Cash Reserves: Regional Library System) such that
the reserve shall be fully funded by the date of submission of the sixth annual
program of service submitted under the terms of this rule.
(b) A nonprofit corporation organized under
subsection (a) of this section, seeking to contract with a third party private
business to administer the system (when the contract exceeds $100,000, or 20
percent of the system operation grant, whichever is less) must demonstrate
fiscal and administrative responsibility as determined annually by the state
library from the following information submitted by the nonprofit corporation
and private business, in addition to the information submitted under subsection
(a) of this section:
(1) contracts between the
business and the nonprofit corporation;
(2) performance deposit in the form of an
assignment of a savings account, a bank letter of credit, a continuous bond, a
U.S. treasury bond readily convertible to cash, or any cash equivalent item,
the amount to be not less than 10% of the proposed contract;
(3) certificate of good standing from the
Comptroller of Public Accounts;
(4)
tax returns of the business for the last three years;
(5) audited financial statements of the
business for the last three years, and;
(6) detailed business plan, including cash
flow analysis, cash flow management plan, verification of lines of credit, risk
analysis, risk management plan, and verification of specified insurance
coverage.
(c) A business
(sole proprietorship, partnership, or corporation) seeking to contract with the
Texas State Library and Archives Commission to administer services to a
regional library system must demonstrate fiscal and administrative
responsibility annually as determined by the state library from the following
information submitted by the business:
(1)
contracts between the business and two-thirds of the governing bodies of the
member libraries;
(2) performance
deposit in the form of an assignment of a savings account, a bank letter of
credit, a continuous bond, a U.S. treasury bond readily convertible to cash, or
any cash equivalent item, the amount to be not less than 10% of the proposed
contract;
(3) certificate of good
standing from the Comptroller of Public Accounts;
(4) tax returns of the business for the last
three years;
(5) audited financial
statements of the business for the last three years;
(6) long-range plan (biennial budget) (see
§
RSA 1.43
of this title (relating to Long-Range Plan of System Services));
(7) annual program and budget (see §
RSA 1.44
of this title (relating to Annual Program and Budget for System Services));
and
(8) detailed business plan,
including cash flow analysis, cash flow management plan, verification of lines
of cash reserves and credit, risk analysis, risk management plan, and
verification of specified insurance coverage.
(d) Grants or contracts to regional library
systems or other nonprofit corporations shall be administered by the State
Library and Archives Commission according to the Uniform Grant and Contract
Management Act (Government Code, Chapter 783) and the rules for administering
this act (1 TAC § 5.141et seq.), unless federal statute or policy
supersedes them.
