Maximum Reserve Requirement for Certain Cash Funds

      Joint Budget Committee. Under existing law, cash funds are subject to a maximum amount of uncommitted funds that may be held in reserve at the end of each fiscal year (maximum reserve). If a fund's uncommitted reserves exceed the maximum reserve, the entity that imposes fees that are deposited in the fund shall reduce the amount of one or more of the fees to an amount calculated to reduce the uncommitted reserves to an amount that does not exceed the maximum reserve.

     The bill exempts the public school construction and inspection cash fund and the health facility construction and inspection cash fund from the annual maximum reserve limitations. Instead, the funds are subject to the same substantive requirements if the uncommitted reserves of the fund exceed the maximum reserve for 3 consecutive fiscal years.


(Note: This summary applies to this bill as introduced.)