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78S30146 JJT-F

By:  Swinford                                                     H.B. No. 16 



A BILL TO BE ENTITLED

AN ACT

relating to financing certain capital expenditures of state 
agencies with savings from utility cost savings contracts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 2113, Government Code, is amended by 
adding Subchapter E to read as follows:

SUBCHAPTER E.  RESTRICTIONS ON CAPITAL EXPENDITURES
	Sec. 2113.301.  PREFERENCE FOR FINANCING CERTAIN CAPITAL 
EXPENDITURES WITH MONEY GENERATED BY UTILITY COST SAVINGS CONTRACT.  
(a)  In this section:
		(1)  "State facility purpose" means a purpose related 
to:            
			(A)  the maintenance of a state-owned or 
state-leased building or facility; or
			(B)  a project as defined by Section 2166.001, 
including a project described by Section 2166.003.
		(2)  "Utility cost savings contract" means a contract 
under Subchapter I, Chapter 2166, or other law that guarantees 
utility cost savings for energy conservation measures to reduce 
energy or water consumption or to reduce operating costs of 
governmental facilities.
	(b)  Before a state agency may use appropriated money to make 
a capital expenditure for a state facility purpose, the state 
agency must determine whether the expenditure could be financed 
with money generated by a utility cost savings contract.
	(c)  If it is practicable to do so, a state agency that is 
using appropriated money must finance a capital expenditure for a 
state facility purpose with money generated by a utility cost 
savings contract.
	(d)  If it is not practicable for a state agency that is using 
appropriated money to finance a capital expenditure for a state 
facility purpose with money generated by a utility cost savings 
contract, the state agency must provide justification to the 
comptroller for the capital expenditure.
	(e)  In determining under Subsection (b) whether a capital 
expenditure could be financed by a utility cost savings contract, a 
state agency must consider whether utility cost savings generated 
by any department of that agency could be a potential means of 
financing a capital expenditure for any department of that agency. 
Money generated by a utility cost savings in one department of a 
state agency may be used to finance capital expenditures for a state 
facility purpose in any department of that agency.
	(f)  This section does not apply to an institution of higher 
education as defined by Section 61.003, Education Code.
	(g)  This section does not apply to a capital expenditure for 
a state facility purpose that requires expeditious action to:
		(1)  prevent a hazard to life, health, safety, welfare, 
or property; or
		(2)  avoid undue additional cost to the state.                         
	(h)  The Texas Building and Procurement Commission shall 
appoint a task force to develop design recommendations that are to 
be used for state facilities and that encourage rain harvesting and 
water recycling by state agencies using appropriated money to 
finance a capital expenditure for a state facility purpose.
	SECTION 2.  This Act takes effect on the 91st day after the 
last day of the legislative session.