S.B. No. 726
                                        AN ACT
    1-1  relating to energy conservation measures by institutions of higher
    1-2  education.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 51.927, Education Code, is amended by
    1-5  amending Subsection (g) and by adding Subsections (j) and (k) to
    1-6  read as follows:
    1-7        (g)  A contract under this section may be let under
    1-8  competitive sealed proposal procedures.  Notice of the request for
    1-9  proposals shall be given in the manner provided for in Sec. 3.12,
   1-10  Article 601b, Revised Statutes.  The institution shall submit the
   1-11  proposals to the energy management center for review and comment
   1-12  before awarding the contract.  The energy management center may
   1-13  provide cost-benefit analysis of the proposals and analysis of the
   1-14  guaranteed savings projected by offerors and may charge a fee for
   1-15  this service <notice of the request for proposals shall be provided
   1-16  to the office of the governor for review and comment at least 30
   1-17  days prior to any contract award>.  The contract shall be awarded
   1-18  to the responsible offeror whose proposal, following negotiations,
   1-19  is determined by the institution to be the most advantageous to the
   1-20  institution considering the guaranteed savings and other evaluation
   1-21  factors set forth in the request for proposals, except that if the
   1-22  institution finds that no offer is acceptable, it shall refuse all
   1-23  offers.
   1-24        (j)  The legislature shall base an institution's
    2-1  appropriation for energy costs during a fiscal year on the sum of:
    2-2              (1)  the institution's estimated energy costs for that
    2-3  fiscal year; and
    2-4              (2)  if a contract under this section is in effect, the
    2-5  institution's estimated net savings resulting  from the contract
    2-6  during the contract term, divided by the number of years in the
    2-7  contract term.
    2-8        (k)  The Texas Higher Education Coordinating Board, in
    2-9  consultation with the energy management center, shall establish
   2-10  guidelines and an approval process for energy conservation
   2-11  measures.
   2-12        SECTION 2.  (a)  This Act takes effect September 1, 1995.
   2-13        (b)  This Act does not apply to an appropriation enacted
   2-14  before the effective date of this Act, without regard to the period
   2-15  for which the appropriation is made.
   2-16        SECTION 3.  The importance of this legislation and the
   2-17  crowded condition of the calendars in both houses create an
   2-18  emergency and an imperative public necessity that the
   2-19  constitutional rule requiring bills to be read on three several
   2-20  days in each house be suspended, and this rule is hereby suspended.