H.B. No. 651




AN ACT

relating to the creation of a savings incentive program for state 
agencies. 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 2108, Government Code, is amended by 
adding Subchapter C to read as follows:

SUBCHAPTER C.  SAVINGS INCENTIVE PROGRAM FOR STATE AGENCY
	Sec. 2108.101.  NOTICE.  A state agency that spends less 
undedicated general revenue derived from nonfederal sources than is 
appropriated to the agency for a fiscal year shall send to the 
comptroller a notice of the amount of the savings before October 30 
following the end of the fiscal year in which the savings are 
realized.
	Sec. 2108.102.  VERIFICATION OF SAVINGS.  The comptroller 
shall verify the amount of savings contained in the notice not later 
than the 60th day following the date the comptroller receives the 
notice.
	Sec. 2108.103.  RETENTION OF FUNDS.  (a)  The affected agency 
retains one-fourth of the amount of savings verified by the 
comptroller, not to exceed one percent of the amount of undedicated 
general revenue derived from nonfederal sources appropriated to the 
agency for the fiscal year in which the savings are realized.
	(b)  Savings retained under this section may only be 
appropriated by the legislature to the affected agency.  The agency 
may spend the  savings only on an activity or expense that does not:
		(1)  create new or expanded services; or                               
		(2)  require ongoing funding at a later date.                          
	Sec. 2108.104.  DEMONSTRATION NECESSARY TO RECEIVE SAVINGS.  
In order for a state agency to receive any savings derived from 
lowered utility costs under this section, the state agency must 
demonstrate to the comptroller that the agency has maximized 
savings on utility expenses by implementing all energy and water 
conservation programs in compliance with rules adopted under 
Section 447.002.
	SECTION 2.  This Act takes effect September 1, 2003.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 651 was passed by the House on April 
9, 2003, by a non-record vote; and that the House concurred in 
Senate amendments to H.B. No. 651 on May 30, 2003, by a non-record 
vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	
I certify that H.B. No. 651 was passed by the Senate, with 
amendments, on May 28, 2003, by a viva-voce vote.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED: __________________                                                
 
                Date                                                         




 
         __________________                                              
 
              Governor