1-1                                   AN ACT
 1-2     relating to the evaluation of proposals for contracts by
 1-3     institutions of higher education for energy conservation measures.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 51.927(h), Education Code, is amended to
 1-6     read as follows:
 1-7           (h)  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 Chapter
1-10     2156, Government Code.  The Texas Higher Education Coordinating
1-11     Board, in consultation with the State Energy Conservation Office
1-12     and the Texas Energy Coordination Council with regard to energy
1-13     conservation measures, shall establish guidelines and an approval
1-14     process for contracts awarded under this section.  The guidelines
1-15     must require that the cost savings projected by an offeror be
1-16     reviewed by a licensed professional engineer who is not an officer
1-17     or employee of an offeror for the contract under review or
1-18     otherwise associated with the contract.  An engineer who reviews a
1-19     contract shall maintain the confidentiality of any proprietary
1-20     information the engineer acquires while reviewing the contract.  A
1-21     contract is not required to be reviewed or approved by the State
1-22     Energy Conservation Office or Texas Energy Coordination Council.
1-23     Section 19, The Texas Engineering Practice Act (Article 3271a,
1-24     Vernon's Texas Civil Statutes), applies to work performed under the
 2-1     contract.  [The State Energy Conservation Office and the Texas
 2-2     Energy Coordination Council shall review the selected proposal
 2-3     before a contract is awarded.  The State Energy Conservation Office
 2-4     may provide a cost-benefit analysis of the proposals and analysis
 2-5     of the guaranteed savings projected by offerors and may charge a
 2-6     fee for this service.]  The contract shall be awarded to the
 2-7     responsible offeror whose proposal, following negotiations, is
 2-8     determined by the institution to be the most advantageous to the
 2-9     institution considering the guaranteed savings and other evaluation
2-10     factors set forth in the request for proposals, except that if the
2-11     institution finds that no offer is acceptable, it shall refuse all
2-12     offers.
2-13           SECTION 2.  This Act takes effect September 1, 1999.
2-14           SECTION 3.  The importance of this legislation and the
2-15     crowded condition of the calendars in both houses create an
2-16     emergency and an imperative public necessity that the
2-17     constitutional rule requiring bills to be read on three several
2-18     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2960 was passed by the House on May
         4, 1999, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 2960 on May 20, 1999, and requested
         the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 2960 on May 27, 1999, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2960 was passed by the Senate, with
         amendments, on May 18, 1999, by a viva-voce vote; at the request of
         the House, the Senate appointed a conference committee to consider
         the differences between the two houses; and that the Senate adopted
         the conference committee report on H.B. No. 2960 on May 29, 1999,
         by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor