74R12553 SMH-F
          By Sibley                                              S.B. No. 726
          Substitute the following for S.B. No. 726:
          By McDonald                                        C.S.S.B. No. 726
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to energy conservation measures by institutions of higher
    1-3  education.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 51.927, Education Code, is amended by
    1-6  amending Subsection (g) and adding Subsections (j) and (k) to read
    1-7  as follows:
    1-8        (g)  A contract under this section may be let under
    1-9  competitive sealed proposal procedures.  Notice of the request for
   1-10  proposals shall be given in the manner provided for in Sec. 3.12,
   1-11  Article 601b, Revised Statutes.  The institution shall submit the
   1-12  proposals to the energy management center for review and comment
   1-13  before awarding the contract.  The energy management center may
   1-14  provide cost-benefit analysis of the proposals and analysis of the
   1-15  guaranteed savings projected by offerors and may charge a fee for
   1-16  this service <The notice of the request for proposals shall be
   1-17  provided to the office of the governor for review and comment at
   1-18  least 30 days prior to any contract award>.  The contract shall be
   1-19  awarded to the responsible offeror whose proposal, following
   1-20  negotiations, is determined by the institution to be the most
   1-21  advantageous to the institution considering the guaranteed savings
   1-22  and other evaluation factors set forth in the request for
   1-23  proposals, except that if the institution finds that no offer is
   1-24  acceptable, it shall refuse all offers.
    2-1        (j)  The legislature shall base an institution's
    2-2  appropriation for energy costs during a fiscal year on the sum of:
    2-3              (1)  the institution's estimated energy costs for that
    2-4  fiscal year; and
    2-5              (2)  if a contract under this section is in effect, the
    2-6  institution's estimated net savings resulting  from the contract
    2-7  during the contract term, divided by the number of years in the
    2-8  contract term.
    2-9        (k)  The Texas Higher Education Coordinating Board, in
   2-10  consultation with the energy management center, shall establish
   2-11  guidelines and an approval process for energy conservation
   2-12  measures.
   2-13        SECTION 2.  (a)  This Act takes effect September 1, 1995.
   2-14        (b)  This Act does not apply to an appropriation enacted
   2-15  before the effective date of this Act, without regard to the period
   2-16  for which the appropriation is made.
   2-17        SECTION 3.  The importance of this legislation and the
   2-18  crowded condition of the calendars in both houses create an
   2-19  emergency and an imperative public necessity that the
   2-20  constitutional rule requiring bills to be read on three several
   2-21  days in each house be suspended, and this rule is hereby suspended.