LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 9, 1995



 TO:     Honorable John T. Montford, Chair      IN RE:  Senate Bill No. 726
         Committee on Finance                           By: Sibley
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
726 (Relating to appropriations to an institution of higher
education for energy costs.) this office has determined the
following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend Texas Education Code regarding energy
conservation contracts.  It would direct the Legislature to base
utility appropriations to institutions of higher education on an
institution's estimated energy costs for each fiscal year of the
biennium and, if an energy conservation contract is in effect, on
50 percent of an institution's estimated net savings from the
contract during the contract term divided by the number of years
in the contract term.

While the provisions of the bill may provide for cost savings to
the State, the fiscal implications of the bill cannot be
determined.


The fiscal implication to  the State or units of local government
cannot be determined.


Source:   Higher Education Coordinating Board
          LBB Staff: JK, MK, DF