78R13170 MTB-F


By:  McCall                                                       H.B. No. 2425

Substitute the following for H.B. No. 2425:                                   

By:  Woolley                                                  C.S.H.B. No. 2425


A BILL TO BE ENTITLED
AN ACT
relating to state and certain local fiscal matters; making an appropriation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 103.051(a), Civil Practice and Remedies Code, is amended to read as follows: (a) To apply for compensation under this subchapter, the claimant must file with the [judicial section of the] comptroller's judiciary section [office]: (1) an application for compensation provided for that purpose by the comptroller; (2) a verified copy of the pardon or court order justifying the application for compensation; [and] (3) a statement provided by the Texas Department of Criminal Justice verifying the length of incarceration; and (4) a certification of the claimant's actual innocence of the crime for which the claimant was sentenced that is signed by the attorney representing the state in the prosecution of felonies in the county in which the sentence was rendered. SECTION 2. Section 14(e), Article 42.12, Code of Criminal Procedure, as added by Chapter 1188, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows: (e) The clerk of a court that collects a fee imposed under Subsection (c)(2) shall remit the fee to the comptroller not later than the last day of the month following the end of the calendar quarter in which the fee is collected, and the comptroller shall deposit the fee into the general revenue fund. If the clerk does not collect a fee imposed under Subsection (c)(2), the clerk is not required to file any report required by the comptroller relating to the collection of the fee. In requiring the payment of a fee under Subsection (c)(2), the judge shall consider fines, fees, and other necessary expenses for which the defendant is obligated in establishing the amount of the fee. The judge may not: (1) establish the fee in an amount that is greater than 25 percent of the defendant's gross income while the defendant is a participant in residential aftercare; or (2) require the defendant to pay the fee at any time other than a time at which the defendant is both employed and a participant in residential aftercare. SECTION 3. Section 19(f), Article 42.12, Code of Criminal Procedure, is amended to read as follows: (f) A community corrections and supervision department shall remit fees collected under Subsection (e) of this section to the comptroller not later than the last day of the month following the end of the calendar quarter in which the fee is collected. The comptroller shall deposit the fee in the special revenue fund to the credit of the sexual assault program established under Section 44.0061, Health and Safety Code. If the department does not collect a fee imposed under Subsection (e), the department is not required to file any report required by the comptroller relating to the collection of the fee. SECTION 4. Section 44.901, Education Code, as amended by Chapter 573, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: Sec. 44.901. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR WATER CONSERVATION MEASURES]. (a) In this section, "energy savings performance contract" means a contract for energy or water conservation measures to reduce energy or water consumption or operating costs of school facilities in which the estimated savings in utility costs resulting from the measures is guaranteed to offset the cost of the measures over a specified period. The term includes a contract for the installation or implementation of: [The board of trustees of a school district may enter into a contract for energy or water conservation measures to reduce energy or water consumption or operating costs of school facilities in accordance with this section. [(b) A contract to which this section applies includes a contract for the installation of:] (1) insulation of a [the] building structure [structures] and systems within the building; (2) storm windows or doors, caulking or weatherstripping, multiglazed windows or doors, heat absorbing or heat reflective glazed and coated window or door systems, or other window or door system modifications that reduce energy consumption; (3) automatic energy control systems, including computer software and technical data licenses; (4) heating, ventilating, or air-conditioning system modifications or replacements that reduce energy or water consumption; (5) lighting fixtures that increase energy efficiency; (6) energy recovery systems; (7) electric systems improvements; (8) water-conserving fixtures, appliances, and equipment or the substitution of non-water-using fixtures, appliances, and equipment; (9) water-conserving landscape irrigation equipment; (10) landscaping measures that reduce watering demands and capture and hold applied water and rainfall, including: (A) landscape contouring, including the use of berms, swales, and terraces; and (B) the use of soil amendments that increase the water-holding capacity of the soil, including compost; (11) rainwater harvesting equipment and equipment to make use of water collected as part of a storm-water system installed for water quality control; (12) equipment for recycling or reuse of water originating on the premises or from other sources, including treated municipal effluent; (13) equipment needed to capture water from nonconventional, alternate sources, including air conditioning condensate or graywater, for nonpotable uses; (14) metering equipment needed to segregate water use in order to identify water conservation opportunities or verify water savings; or (15) other energy or water conservation-related improvements or equipment, [(]including improvements or equipment relating to renewable energy or nonconventional water sources or water reuse[)]. (b) The board of trustees of a school district may enter into an energy savings performance contract in accordance with this section. (c) Each [All] energy or water conservation measure [measures] must comply with current local, state, and federal construction, plumbing, and environmental codes and regulations. Notwithstanding [anything to the contrary in] Subsection (a) [(b)], an energy savings performance [a] contract may [for energy or water conservation measures shall] not include improvements or equipment that allow or cause water from any condensing, cooling, or industrial process or any system of nonpotable usage over which the public water supply system officials do not have sanitary control, to be returned to the potable water supply. (d) The [person with whom the] board may enter into energy savings performance contracts only with persons who are [must be] experienced in the design, implementation, and installation of the energy or water conservation measures addressed by the contract. (e) Before entering into an energy savings performance [a] contract [for energy or water conservation measures], the board shall require the provider of the energy or water conservation measures to file with the board a payment and performance bond relating to the installation of the [energy or water conservation] measures in accordance with Chapter 2253, Government Code. The [that is in an amount the] board [finds reasonable and necessary to protect the interests of the school district and that] may also require a separate bond to cover the value of the guaranteed savings on the contract [and is conditioned on the faithful execution of the terms of the contract]. (f) An energy savings performance contract [Energy or water conservation measures with respect to existing buildings or facilities] may be financed: (1) under a lease/purchase contract that has a term not to exceed 15 years from the final date of installation and that meets federal tax requirements for tax-free municipal leasing or long-term financing; (2) with the proceeds of bonds; or (3) under a contract with the provider of the energy or water conservation measures that has a term not to exceed 15 years from the final date of installation. (g) An energy savings performance [A] contract [for energy or water conservation measures] shall contain provisions requiring [pursuant to which] the provider of the energy or water conservation measures to guarantee [guarantees] the amount of the savings to be realized by the school district under the contract. If the term of an energy savings performance [a] contract [for energy or water conservation measures] exceeds one year, the school district's contractual obligations in any one year during the term of the contract beginning after the final date of installation may not exceed the total energy, water, wastewater, and operating cost savings, including [but not limited to] electrical, gas, water, wastewater, or other utility cost savings and operating cost savings resulting from the measures, [automatic monitoring and control] as determined by the school district in this subsection, divided by the number of years in the contract term. (h) An energy savings performance [A] contract shall [under this section may] be let according to the procedures established for procuring certain professional services by Section 2254.004, Government Code [under competitive proposal procedures]. Notice of the request for qualifications [proposals] shall be published in the manner provided for competitive bidding. [Requests for proposals must solicit quotations and must specify the relative importance of guaranteed savings, price, return on investment, financial performance and stability, quality, technical ability, experience, and other evaluation factors. The contract shall be awarded to the responsible offeror whose proposal, following negotiations, is determined to be the most advantageous to the school district considering the guaranteed savings and other evaluation factors set forth in the request for proposals.] (i) Before [To obtain the best final offers, the school district may allow proposal revisions after submissions and before the award of the contract. [(j) Prior to] entering into an energy savings performance [a] contract [under this section], the board must require that the cost savings projected by an offeror be reviewed by a licensed professional engineer who is not an officer or employee of an offeror for the contract under review or otherwise associated with the contract or the offeror. An engineer who reviews a contract shall maintain the confidentiality of any proprietary information the engineer acquires while reviewing the contract. Sections 1001.053 and 1001.407, Occupations Code, apply [Section 19, The Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil Statutes), applies] to work performed under the contract. SECTION 5. Section 51.927, Education Code, as amended by Chapter 573, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: Sec. 51.927. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR WATER CONSERVATION MEASURES]. (a) In this section, "energy savings performance contract" means a contract for energy or water conservation measures to reduce energy or water consumption or operating costs of institutional facilities in which the estimated savings in utility costs resulting from the measures is guaranteed to offset the cost of the measures over a specified period. The term [The governing board of an institution of higher education may enter into a contract for energy or water conservation measures to reduce energy or water consumption or operating costs of institutional facilities in accordance with this section. [(b) A contract to which this section applies] includes a contract for the installation or implementation of: (1) insulation of a building structure and systems within a building; (2) storm windows or doors, caulking or weather stripping, multiglazed windows or doors, heat-absorbing or heat-reflective glazed and coated window or door systems, or other window or door system modifications that reduce energy consumption; (3) automatic energy control systems, including computer software and technical data licenses; (4) heating, ventilating, or air conditioning system modifications or replacements that reduce energy or water consumption; (5) lighting fixtures that increase energy efficiency; (6) energy recovery systems; (7) electric systems improvements; (8) water-conserving fixtures, appliances, and equipment or the substitution of non-water-using fixtures, appliances, and equipment; (9) water-conserving landscape irrigation equipment; (10) landscaping measures that reduce watering demands and capture and hold applied water and rainfall, including: (A) landscape contouring, including the use of berms, swales, and terraces; and (B) the use of soil amendments that increase the water-holding capacity of the soil, including compost; (11) rainwater harvesting equipment and equipment to make use of water collected as part of a storm-water system installed for water quality control; (12) equipment for recycling or reuse of water originating on the premises or from other sources, including treated municipal effluent; (13) equipment needed to capture water from nonconventional, alternate sources, including air conditioning condensate or graywater, for nonpotable uses; (14) metering equipment needed to segregate water use in order to identify water conservation opportunities or verify water savings; or (15) other energy or water conservation-related improvements or equipment, [(]including improvements or equipment related to renewable energy or nonconventional water sources or water reuse[)]. (b) The governing board of an institution of higher education may enter into an energy savings performance contract in accordance with this section. (c) Each [All] energy or water conservation measure [measures] must comply with current local, state, and federal construction, plumbing, and environmental codes and regulations. Notwithstanding [anything to the contrary in] Subsection (a) [(b)], an energy savings performance [a] contract may [for energy or water conservation measures shall] not include improvements or equipment that allow or cause water from any condensing, cooling, or industrial process or any system of nonpotable usage over which the public water supply system officials do not have sanitary control, to be returned to the potable water supply. (d) The [entity with whom the] board may enter into energy savings performance contracts only with entities that are [must be] experienced in the design, implementation, and installation of the energy or water conservation measures addressed by the contract. (e) Before entering into an energy savings performance [a] contract [for energy or water conservation measures], the board shall require the provider of the energy or water conservation measures to file with the board a payment and performance bond in accordance with Chapter 2253, Government Code. The [that is in an amount the] board may also require a separate bond to cover the value of the guaranteed savings on [finds reasonable and necessary to protect the interests of the institution and is conditioned on the faithful execution of the terms of] the contract. (f) The board may enter into an energy savings performance [a] contract for a period of more than one year only [for energy or water conservation measures with an entity] if the board finds that the amount the institution would spend on the energy or water conservation measures will not exceed the amount to be saved in energy, water, wastewater, and operating costs over 15 years from the date of installation. If the term of the [a] contract [for energy or water conservation measures] exceeds one year, the institution's [board's] contractual obligation in any year during the term of the contract beginning after the final date of installation may not exceed the total energy, water, wastewater, and operating cost savings, including [but not limited to] electrical, gas, water, wastewater, or other utility cost savings and operating cost savings resulting from the measures [automatic monitoring and control], as determined by the board in this subsection, divided by the number of years in the contract term beginning after the final date of installation. The board shall consider all costs of the energy or water conservation measures, including costs of design, engineering, installation, maintenance, repairs, and debt service. (g) An energy savings performance contract [Energy or water conservation measures] may be financed: (1) under a lease/purchase contract that has a term not to exceed 15 years from the final date of installation and that meets federal tax requirements for tax-free municipal leasing or long-term financing, including a lease/purchase contract under the master equipment lease purchase program administered by the Texas Public Finance Authority under Chapter 1232, Government Code; (2) with the proceeds of bonds; or (3) under a contract with the provider of the energy or water conservation measures that has a term not to exceed 15 years from the final date of installation. (h) An energy savings performance [A] contract [for energy or water conservation measures] shall contain provisions requiring [pursuant to which] the provider of the energy or water conservation measures to guarantee [guarantees] the amount of the savings to be realized by the institution of higher education under the contract. [The Master Equipment Lease Purchase Program operated by the Texas Public Finance Authority may be utilized by an institution to fund a contract for energy or water conservation measures so long as the costs of the energy or water conservation measures, including costs of design, engineering, installation, maintenance, repairs, and anticipated debt service requirements of the Master Equipment Lease Purchase Program, do not exceed the total energy and operating cost savings, as described in Subsection (f), beginning after the final date of installation.] (i) An energy savings performance [A] contract shall [under this section may] be let according to the procedures established for procuring certain professional services by Section 2254.004, Government Code [under competitive sealed proposal procedures]. Notice of the request for qualifications [proposals] shall be given in the manner provided by Section 2156.002 [for in Chapter 2156], Government Code. The Texas Higher Education Coordinating Board, in consultation with the State Energy Conservation Office [and the Texas Energy Coordination Council] with regard to energy and water conservation measures, shall establish guidelines and an approval process for awarding energy savings performance contracts [awarded under this section]. The guidelines must require that the cost savings projected by an offeror be reviewed by a licensed professional engineer who is not an officer or employee of an offeror for the contract under review or otherwise associated with the contract. An engineer who reviews a contract shall maintain the confidentiality of any proprietary information the engineer acquires while reviewing the contract. A contract is not required to be reviewed or approved by the State Energy Conservation Office [or Texas Energy Coordination Council]. Sections 1001.053 and 1001.407, Occupations Code, apply [Section 19, The Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil Statutes), applies] to work performed under the contract. [The contract shall be awarded to the responsible offeror whose proposal, following negotiations, is determined by the institution to be the most advantageous to the institution considering the guaranteed savings and other evaluation factors set forth in the request for proposals, except that if the institution finds that no offer is acceptable, it shall refuse all offers.] (j) [In accordance with regulations adopted by the institution, the institution may conduct discussions with offerors who submit proposals and who are determined to be reasonably qualified for the award of the contract. Offerors shall be treated fairly and equally with respect to any opportunity for discussion and revision of proposals. To obtain the best final offers, the institution may allow proposal revisions after submissions and before the award of the contract. [(k) If provided in a request for proposals under Subsection (i), proposals shall be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the proposals secret during negotiations. All proposals are open for public inspection after a contract is awarded unless the information is excepted from disclosure under Chapter 552, Government Code. [(l)] The legislature shall base an institution's appropriation for energy, water, and wastewater costs during a fiscal year on the sum of: (1) the institution's estimated energy, water, and wastewater costs for that fiscal year; and (2) if an energy savings performance [a] contract [under this section] is in effect, the institution's estimated net savings resulting from the contract during the contract term, divided by the number of years in the contract term. SECTION 6. Section 54.619, Education Code, is amended by adding Subsection (j) to read as follows: (j) The board may suspend new enrollment in the program as the board considers necessary to ensure the actuarial soundness of the fund. SECTION 7. Section 54.622, Education Code, is amended to read as follows: Sec. 54.622. TYPES OF PLANS. The board may, in its sole discretion, [shall] make prepaid tuition contracts available for the: (1) junior college plan; (2) senior college plan; (3) junior-senior college plan; and (4) private college plan. SECTION 8. Section 54.624, Education Code, is amended to read as follows: Sec. 54.624. SENIOR COLLEGE PLAN. (a) Through the senior college plan, a prepaid tuition contract shall provide prepaid tuition and required fees for the beneficiary to attend a public senior college or university for a specified number of undergraduate credit hours not to exceed the typical number of hours required for a baccalaureate degree awarded by a public senior college or university. (b) When the beneficiary of a senior college plan prepaid tuition contract enrolls in a public senior college or university, the university shall accept as payment in full of the beneficiary's tuition and required fees the lesser of: (1) the amount of tuition and required fees charged by the institution; or (2) an amount paid by the board under the contract equal to the weighted average amount of tuition and required fees of all public senior colleges and universities for that semester or other academic period as determined by the board. (c) Each public senior college or university shall provide the information requested by the board on or before June 1 each year to assist the board in determining the weighted average amount of tuition and required fees of all public senior colleges and universities for each semester or other academic term of the following academic year for purposes of this section. SECTION 9. Section 403.027(g), Government Code, is amended to read as follows: (g) In this section, "digital signature" means an electronic identifier intended by the person using it to have the same force and effect as the use of a manual signature [has the meaning assigned by Section 2.108(d), Business & Commerce Code]. SECTION 10. Section 403.054, Government Code, is amended by amending Subsection (b) and adding Subsection (i) to read as follows: (b) The comptroller may not issue a replacement warrant if: (1) the comptroller has paid the original warrant, unless the comptroller: (A) has received [obtained] a refund of the payment; or (B) is satisfied that the state agency on whose behalf the comptroller issued the original warrant has taken reasonable steps to obtain a refund of the payment; (2) the period during which the comptroller may pay the original warrant has expired under Section 404.046 or other applicable law; (3) the payee of the replacement warrant is not the same as the payee of the original warrant; or (4) the comptroller is prohibited by a payment law [Section 403.055 or 481.0841, or by Section 57.48, Education Code,] from issuing a warrant to the payee of the replacement warrant. (i) In this section, "payment law" means: (1) Section 403.055; (2) Section 57.48, Education Code; (3) Section 231.007, Family Code; or (4) any similar law that prohibits the comptroller from issuing a warrant or initiating an electronic funds transfer to a person. SECTION 11. Sections 403.092(a) and (b), Government Code, are amended to read as follows: (a) To allow efficient management of the cash flow of the general revenue fund and to avoid a temporary cash deficiency in that fund, the comptroller may transfer available [surplus] cash, except constitutionally dedicated revenues, between funds that are managed by or in the custody of the comptroller [state treasury]. As soon as practicable the comptroller shall return the available [surplus] cash to the fund from which it was transferred. The comptroller shall preserve the [fund] equity of the fund from which the cash was transferred and shall allocate the earned [depository] interest as if the transfer had not been made. (b) If the comptroller submits a statement under Article III, Section 49a, of the Texas Constitution when available [surplus] cash transferred under Subsection (a) is in the general revenue fund, the comptroller shall indicate in that statement that the transferred available [surplus] cash is in the general revenue fund, is a liability of that fund, and is not available for appropriation by the legislature except as necessary to return cash to the fund from which it was transferred as required by Subsection (a). SECTION 12. Sections 403.1042(b), (c), (e), and (f), Government Code, are amended to read as follows: (b) The advisory committee is composed of 11 members appointed [by the advisory committee] as follows: (1) one member appointed [nominated] by the comptroller to represent a public hospital or hospital district located in a county with a population of 50,000 or less or a public hospital owned or maintained by a municipality; (2) one member appointed [nominated] by the political subdivision that, in the year preceding the appointment, received the largest annual distribution paid from the account; (3) one member appointed [nominated] by the political subdivision that, in the year preceding the appointment, received the second largest annual distribution paid from the account; (4) four members appointed [nominated] by political subdivisions that: (A) in the year preceding the appointment, received the 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, or 12th largest annual distribution paid from the account; and (B) do not have an appointee [a nominee] serving on the advisory committee at the time of appointment; (5) one member appointed [nominated] by the County Judges and Commissioners Association of Texas; (6) one member appointed [nominated] by the North and East Texas County Judges and Commissioners Association; (7) one member appointed [nominated] by the South Texas County Judges and Commissioners Association; and (8) one member appointed [nominated] by the West Texas County Judges and Commissioners Association. (c) A commissioners court that sets the tax rate for a hospital district must approve any person appointed [nominated] by the hospital district to serve on the advisory committee. (e) Except as provided by this subsection, members [Members] of the advisory committee serve staggered six-year terms expiring on August 31 of each odd-numbered year. A member of the advisory committee whose term expires or who attempts to resign from the committee remains a member of the committee until the member's successor is appointed. (f) An individual or entity authorized to make an appointment [or nominate someone for appointment] to the advisory committee created under this section shall attempt to appoint [or nominate] persons who represent the gender composition, minority populations, and geographic regions of the state. SECTION 13. Section 404.024, Government Code, is amended by amending Subsection (b) and adding Subsection (l) to read as follows: (b) State funds not deposited in state depositories shall be invested by the comptroller in: (1) direct security repurchase agreements; (2) reverse security repurchase agreements; (3) direct obligations of or obligations the principal and interest of which are guaranteed by the United States; (4) direct obligations of or obligations guaranteed by agencies or instrumentalities of the United States government; (5) bankers' acceptances that: (A) are eligible for purchase by the Federal Reserve System; (B) do not exceed 270 days to maturity; and (C) are issued by a bank that has received the highest short-term credit rating by a nationally recognized investment rating firm; (6) commercial paper that: (A) does not exceed 270 days to maturity; and (B) except as provided by Subsection (i), has received the highest short-term credit rating by a nationally recognized investment rating firm; (7) contracts written by the treasury in which the treasury grants the purchaser the right to purchase securities in the treasury's marketable securities portfolio at a specified price over a specified period and for which the treasury is paid a fee and specifically prohibits naked-option or uncovered option trading; (8) direct obligations of or obligations guaranteed by the Inter-American Development Bank, the International Bank for Reconstruction and Development (the World Bank), the African Development Bank, the Asian Development Bank, and the International Finance Corporation that have received the highest credit rating by a nationally recognized investment rating firm; (9) bonds issued, assumed, or guaranteed by the State of Israel; (10) obligations of a state or an agency, county, city, or other political subdivision of a state; (11) mutual funds secured by obligations that are described by Subdivisions (1) through (6), including pooled funds: (A) established by the Texas Treasury Safekeeping Trust Company; (B) operated like a mutual fund; and (C) with portfolios consisting only of dollar-denominated securities; and (12) foreign currency for the sole purpose of facilitating investment by state agencies that have the authority to invest in foreign securities. (l) The comptroller may lend securities under procedures established by the comptroller. The procedures must be consistent with industry practice and must include a requirement to fully secure the loan with cash, obligations, or a combination of cash and obligations. In this subsection, "obligation" means an item described by Subsections (b)(1)-(6). SECTION 14. Section 404.102, Government Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows: (a) The comptroller may incorporate a special-purpose trust company called the Texas Treasury Safekeeping Trust Company. The purposes of the trust company are to provide a means for the comptroller to obtain direct access to services provided by the Federal Reserve System and to enable the comptroller to manage, disburse, transfer, safekeep, and invest funds and securities more efficiently and economically by using established and reasonable financial practices, including the pooling of funds and the lending of securities to the extent practical or necessary. The comptroller may deposit funds and securities with the trust company to achieve its purpose. (c) The trust company may establish government investment pools consisting of state agency funds not required to be deposited in the state treasury and local government funds that are placed into the pools for investment or reinvestment by the trust company. A state agency or local government may place funds into the pools for investment or reinvestment as authorized by Subsection (a) or other law. In this subsection, "local government" and "state agency" have the meanings assigned by Section 2256.002. SECTION 15. Section 404.107(b), Government Code, is amended to read as follows: (b) A participant that has money or securities on [Agencies and local political subdivisions of the state and nonprofit corporations, foundations, and other charitable organizations created on behalf of the state or an agency or local political subdivision of the state that are authorized or required to] deposit [money and securities] with the trust company shall pay the fees provided in [established on] the trust company's fee schedule developed under Section 404.103(f). The trust company may: (1) deduct a fee from the principal or earning of a participant on deposit with the trust company; or (2) require a participant to pay a fee from an amount not on deposit with the trust company. SECTION 16. Section 404.123(b), Government Code, is amended to read as follows: (b) The committee may impose a limit on the sum of the total amount of the notes outstanding and the total outstanding liability of the general revenue fund under Section 403.092 [may not at any time exceed 25 percent of the taxes and revenues to be credited to the general revenue fund for the fiscal year as determined by the comptroller, based on the certification made by the comptroller in the enactment of the General Appropriations Act applicable to that fiscal year]. SECTION 17. Chapter 447, Government Code, as amended by Chapters 573, 1158, and 1398, Acts of the 77th Legislature, Regular Session, 2001, is reenacted to read as follows:
CHAPTER 447. STATE ENERGY CONSERVATION OFFICE
Sec. 447.001. GOVERNANCE AND GENERAL AUTHORITY. The state energy conservation office: (1) is under the direction and control of the comptroller; (2) shall promote the policies enumerated in this chapter; and (3) may act in any capacity authorized by state or federal law. Sec. 447.002. INFORMATION; PROCEDURES AND RULES; MEASURES AND PROGRAMS. (a) The state energy conservation office shall develop and provide energy and water conservation information for the state. (b) The state energy conservation office may establish procedures and adopt rules relating to the development and implementation of energy and water conservation measures and programs applicable to state buildings and facilities. (c) A procedure established or a rule adopted under Subsection (b) may include provisions relating to: (1) the retrofitting of existing state buildings and facilities with energy-saving or water-saving devices; and (2) the energy-related or water-related renovation of those buildings and facilities. (d) To the extent that the governor receives money appropriated for energy and water efficiency measures and programs, the governor, through the state energy conservation office, shall implement measures and programs that the state energy conservation office identifies as encouraging energy or water conservation by state government. (e) A state agency shall implement an energy or water conservation measure or program in accordance with plans developed under Section 447.009. (f) The state energy conservation office shall coordinate all water conservation-related activities with the Texas Water Development Board. The board shall assist the office in the development of all proposed water conservation and reuse requirements and provide training and expertise to the office regarding water conservation issues. Sec. 447.003. LIAISON TO FEDERAL GOVERNMENT. The state energy conservation office is the state liaison to the federal government for the implementation and administration of federal programs relating to state agency energy matters. The office shall administer state programs established under: (1) Part D, Title III, Energy Policy and Conservation Act (42 U.S.C. Section 6321 et seq.), and its subsequent amendments; (2) Part G, Title III, Energy Policy and Conservation Act (42 U.S.C. Section 6371 et seq.), and its subsequent amendments; and (3) other federal energy conservation programs as assigned to the office by the governor or the legislature. Sec. 447.004. DESIGN STANDARDS. (a) The state energy conservation office shall establish and publish mandatory energy and water conservation design standards for each new state building or major renovation project, including a new building or major renovation project of a state-supported institution of higher education. The office shall define "major renovation project" for purposes of this section and shall review and update the standards biennially. (b) The standards established under Subsection (a) must: (1) include performance and procedural standards for the maximum energy and water conservation allowed by the latest and most cost-effective technology that is consistent with the requirements of public health, safety, and economic resources; (2) be stated in terms of energy and water consumption levels; (3) consider the various types of building uses; and (4) allow for design flexibility. (c) Any procedural standard established under this section must be directed toward specific design and building practices that produce good thermal resistance and low infiltration and toward requiring practices in the design of mechanical and electrical systems that maximize energy and water efficiency. The procedural standards must address, as applicable: (1) insulation; (2) lighting; (3) ventilation; (4) climate control; (5) water-conserving fixtures, appliances, and equipment or the substitution of non-water-using fixtures, appliances, and equipment; (6) water-conserving landscape irrigation equipment; (7) landscaping measures that reduce watering demands and capture and hold applied water and rainfall, including: (A) landscape contouring, including the use of berms, swales, and terraces; and (B) the use of soil amendments that increase the water-holding capacity of the soil, including compost; (8) rainwater harvesting equipment and equipment to make use of water collected as part of a storm-water system installed for water quality control; (9) equipment for recycling or reusing water originating on the premises or from other sources, including treated municipal effluent; (10) equipment needed to capture water from nonconventional, alternate sources, including air conditioning condensate or graywater, for nonpotable uses; (11) metering equipment needed to segregate water use in order to identify water conservation opportunities or verify water savings; (12) special energy requirements of health-related facilities of higher education and state agencies; and (13) any other item that the state energy conservation office considers appropriate. (d) A state agency or an institution of higher education shall submit a copy of its design and construction manuals to the state energy conservation office as the office considers necessary to demonstrate compliance by the agency or institution with the standards established under this section. (e) A state agency or an institution of higher education may not begin construction of a new state building or a major renovation project before the design architect or engineer for the construction or renovation has: (1) certified to the agency or institution that the construction or renovation complies with the standards established under this section; and (2) provided a copy of that certification to the state energy conservation office. Sec. 447.005. ENERGY AND WATER EFFICIENCY PROJECTS. Subject to applicable state and federal laws or guidelines, the state energy conservation office may: (1) implement an energy or water efficiency project at a state agency; or (2) assist the agency in implementing the project through an energy or water efficiency program. Sec. 447.006. ADDITIONAL ENERGY AND WATER SERVICES. (a) The state energy conservation office may provide additional energy and water services, including: (1) training of designated state employees in energy and water management, energy-accounting techniques, water-accounting techniques, and energy efficient and water efficient design and construction; (2) technical assistance regarding energy efficient and water efficient capital improvements, energy efficient and water efficient building design, and cogeneration and thermal storage investments; (3) technical assistance to the state auditor or a state agency regarding energy and water management performance audits and the monitoring of utility bills to detect billing errors; (4) technical assistance to a state agency regarding third-party financing of an energy efficient and water efficient capital improvement project; and (5) other energy-related and water-related assistance that the office considers appropriate, if the assistance is requested by a state agency, an institution of higher education, a consortium of institutions of higher education, or another governmental entity created by state law. (b) Using available state, federal, or oil overcharge funds, the state energy conservation office may provide technical assistance to a state agency or an institution of higher education in analyzing or negotiating rates for electricity or natural gas supplies from a locally certificated electric supplier, a natural gas supplier, or a state-owned energy resource, including a transportation charge for natural gas. (c) A state agency or an institution of higher education may request the assistance of the state energy conservation office before negotiating or contracting for the supply or transportation of natural gas or electricity. (d) A state agency or an institution of higher education with expertise in rate analysis, negotiation, or any other matter related to the procurement of electricity and natural gas supplies from a locally certificated electric supplier, a natural gas supplier, or a state-owned energy resource may assist the state energy conservation office whenever practicable. The attorney general on request shall assist the office and other state agencies and institutions of higher education in negotiating rates for electricity and other terms of electric utility service. (e) Using available funds from any source, the state energy conservation office may assist a state agency, an institution of higher education, a consortium of institutions of higher education, or another governmental entity created by state law to further the goals and pursue the policies of the state in energy research as may be determined by the governor or the legislature. The office may assist a state agency in implementing current federal energy policy. (f) The state energy conservation office on request may negotiate rates for electricity and other terms of electric utility service for a state agency or an institution of higher education. The office also may negotiate the rates and the other terms of service for a group of agencies or institutions in a single contract. (g) The state energy conservation office may analyze the rates for electricity charged to and the amount of electricity used by state agencies and institutions of higher education to determine ways the state could obtain lower rates and use less electricity. Each state agency, including the Public Utility Commission of Texas, and institution of higher education shall assist the office in obtaining the information the office needs to perform its analysis. Sec. 447.007. ENERGY AND WATER AUDITS. (a) The state energy conservation office may audit a state-owned building used by a state agency to assist the agency in reducing energy and water consumption and costs through improved energy and water efficiency. (b) Based on any audit performed under Subsection (a), the state energy conservation office may recommend changes to improve energy and water efficiency. (c) Each state agency or institution of higher education shall review and audit utility billings and contracts to detect billing errors. Any contract with a private person to conduct the review or audit must comply with all applicable provisions of Subchapter A, Chapter 2254, regarding professional services contracts. The contract may not be awarded on a contingent fee basis unless the governor determines that the contract is necessary, reasonable, and prudent. Sec. 447.008. ENERGY-SAVING AND WATER-SAVING DEVICES OR MEASURES. (a) On approval by the state energy conservation office, a state agency that reduces its energy or water expenses may use any funds saved by the agency from appropriated utility funds for the purchase of an energy-saving or water-saving device or measure. For purposes of this section, "energy-saving or water-saving device or measure" means a device or measure that directly reduces: (1) energy or water costs; or (2) the energy or water consumption of equipment, including a lighting, heating, ventilation, air-conditioning system, or other water-using system, without materially altering the quality of the equipment. (b) A state agency, in accordance with the recommendations of an energy or water audit, may purchase energy-saving and water-saving devices or measures from appropriated utility funds if the savings in utility funds projected by the audit will offset the purchase. The agency shall retain in its files a copy of the recommendation and repayment schedule as evidence of the projected savings. Sec. 447.009. ENERGY AND WATER MANAGEMENT PLANNING. (a) The state energy conservation office shall provide energy and water management planning assistance to a state agency or an institution of higher education, including: (1) preparation by the agency or institution of a long-range plan for the delivery of reliable, cost-effective utility services for the state agency or institution; (2) assistance to the Department of Public Safety for energy emergency contingency planning, using state or federal funds when available; (3) assistance to each state agency or institution of higher education in preparing comprehensive energy and water management plans; and (4) assistance to state agencies other than institutions of higher education in meeting the requirements of Section 447.002, including assistance in scheduling and assigning priorities to implementation plans to ensure that state agencies adopt qualified cost-effective efficiency measures and programs for all state facilities not later than September 1, 2006. (b) A state agency or an institution of higher education shall develop the plan described in Subsection (a)(1) and submit the plan to the state energy conservation office upon request. The agency or institution shall use the plan in preparing its five-year construction and major renovation plans. After other energy-saving or water-saving alternatives are considered, district heating and cooling or on-site generation of electricity may be considered in planning for reliable, efficient, and cost-effective utility services. (c) The state energy conservation office shall prepare guidelines for preparation of the plan described in Subsection (a)(3). A state agency or an institution of higher education that occupies a state-owned building shall prepare and implement a five-year energy and water management plan and shall submit that plan to the office upon request. The agency or institution shall update its plan biennially. A state agency or an institution of higher education that occupies a building not owned by the state shall cooperate with the office in addressing the energy or water management of that building. (d) The comprehensive energy and water management plan described in Subsection (a)(3) shall be included in the five-year construction and major repair and rehabilitation plans for institutions of higher education as required by Section 61.0651, Education Code. SECTION 18. Section 659.253, Government Code, is amended to read as follows: Sec. 659.253. TRANSFER WITHIN AGENCY FROM EXEMPT TO CLASSIFIED POSITION. (a) Except as provided by Subsection (b), a [A] state employee who transfers [moves] within a state agency from an exempt [a] position [exempt from the state's position classification plan] to a classified position is entitled to [will] receive an annual salary in the [proper] salary group to which the classified position is allocated. (b) During the fiscal biennium in which a state employee transfers within a state agency from an exempt position to a classified position, the employee's annual salary rate after the transfer may not [to] exceed: (1) the rate for the salary step equal to the rate received by the employee when holding the [employee's current] exempt position [salary] or the rate for the next higher salary step, if the classified position is allocated [moving] to a [position in a] salary group that is divided into steps; or (2) the rate received by the employee when holding the [employee's current] exempt position [salary] or the maximum rate of the [new] salary group to which the classified position is allocated, whichever is lower, if the classified position is allocated to [moving to a position in] a salary group that is not divided into steps. [(b) Except as provided by this section, a state agency that at any time during a state fiscal biennium pays a state employee an exempt salary specifically established in the General Appropriations Act may not subsequently during the state fiscal biennium pay the employee a greater salary under Salary Schedule A, B, or C of the General Appropriations Act.] (c) A merit salary increase for [state agency that pays] a state employee who transfers to a classified position from an exempt position for which the [an exempt] salary is specifically established in the General Appropriations Act [and that then transfers the employee to a position in which the employee is paid under Salary Schedule A, B, or C of the General Appropriations Act] may not take effect if: (1) the employee has spent less than [grant a merit salary increase to the employee until at least] six months in the classified position; or (2) the increase would cause the salary limitation prescribed by Subsection (b) to be exceeded [after the date that the agency begins to pay the employee under Salary Schedule A, B, or C of the General Appropriations Act]. (d) The Legislative Budget Board and the governor together may approve an exception to the salary limitations prescribed by Subsection (b) [this section] for a state employee: (1) on receiving the employing state agency's application for the exception; and (2) if the employee's job responsibilities with the state agency have changed substantially during the [state fiscal] biennium. (e) In this section: (1) "Classified position" means a position classified under the state's position classification plan. (2) "Exempt position" means a position exempt from the state's position classification plan. SECTION 19. Subchapter K, Chapter 659, Government Code, is amended by adding Section 659.2531 to read as follows: Sec. 659.2531. TRANSFER WITHIN AGENCY BETWEEN CLASSIFIED POSITIONS ALLOCATED TO SAME SALARY GROUP. (a) In this section: (1) "Classified position" means a position classified under the state's position classification plan. (2) "Transfer" means the transfer of a state employee within a state agency between two classified positions that: (A) are allocated to the same salary group; and (B) have different position titles as listed in the General Appropriations Act. (b) Except as provided by Subsection (c), a state employee's annual salary rate immediately after a transfer may not exceed: (1) the rate for the salary step that is one step higher than the salary step at which the employee was paid immediately before the transfer, if the classified position to which the employee transfers is allocated to a salary group that is divided into steps; or (2) 103.4 percent of the employee's annual salary rate immediately before the transfer, if the classified position to which the employee transfers is allocated to a salary group that is not divided into steps. (c) A state employee's annual salary rate immediately after a transfer may not exceed the maximum rate for the appropriate salary group. SECTION 20. Section 659.255, Government Code, is amended to read as follows: Sec. 659.255. MERIT SALARY INCREASES; ONE-TIME MERIT PAYMENTS. (a) In this [This] section: (1) "Classified employee" means a state employee who holds a classified position. (2) "Classified position" means a position [applies only to positions] classified under the state's position classification plan. (3) "Merit salary increase" means an increase in compensation to: (A) a higher step rate in the same classified salary group, if the classified employee is compensated under Salary Schedule A of the General Appropriations Act; or (B) a higher rate within the range of the same classified salary group, if the classified employee is compensated under Salary Schedule B of the General Appropriations Act. (b) [A state agency administrator may grant merit salary increases including one-time merit payments to employees compensated under Salary Schedules A and B of the General Appropriations Act whose job performance and productivity are consistently above that normally expected or required. For classified employees compensated under Salary Schedule A of the General Appropriations Act, a merit increase involves an increase in an employee's salary to a higher step rate in the same salary group. For classified employees compensated under Salary Schedule B of the General Appropriations Act, a merit increase involves an increase in an employee's salary to a higher rate within the range of the same salary group. Merit increases including one-time merit payments are subject to the restrictions prescribed by Subsections (c)-(e). [(c)] The comptroller shall prescribe accounting and reporting procedures as necessary to ensure the availability of information reflecting each state agency's use of merit salary increases, including one-time merit payments. (c) Each state agency shall establish: (1) a procedure for determining the eligibility of a classified employee to receive a merit salary increase or a one-time merit payment from the agency; and (2) requirements for substantiating the eligibility of a classified employee who receives a merit salary increase or a one-time merit payment from the agency. (d) Merit salary increases and [including] one-time merit payments shall be applied throughout the range of classified salary groups used by each state agency. (e) A state agency may award a merit salary increase to a classified employee in relation to the employee's performance in the current classified position held by the employee if [For an employee to be eligible for a merit salary increase or a one-time merit payment, the following additional criteria must be met]: (1) the employee has [must have] been employed by the [state] agency in that position for at least six continuous months before [prior to] the effective date [award] of the increase [or payment]; (2) the effective date of the increase is at least six months after the effective date of the employee's [must have elapsed since the employee's] last: (A) promotion; [, enhanced compensation award authorized by the General Appropriations Act, one-time merit payment,] or (B) merit salary increase for performance in that position [at the agency]; [and] (3) the agency has complied with Subsection (c); (4) the employee's job performance and productivity in that position are consistently above that normally expected or required; and (5) the effective date of the increase is at least six months after the effective date of the agency's last: (A) payment to the employee of an enhanced compensation award authorized by the General Appropriations Act; or (B) one-time merit payment for performance in that position. (f) A state agency may make a one-time merit payment to a classified employee in relation to the employee's performance in the current classified position held by the employee if: (1) the employee has been employed by the agency in that position for at least six continuous months before the effective date of the payment; (2) the effective date of the payment is at least six months after the effective date of the employee's last: (A) promotion; or (B) merit salary increase for performance in that position; (3) the agency has complied with Subsection (c); (4) the employee's job performance and productivity in that position are consistently above that normally expected or required; and (5) the effective date of the payment is at least six months after the effective date of the agency's last: (A) payment to the employee of an enhanced compensation award authorized by the General Appropriations Act; or (B) one-time merit payment for performance in that position. [criteria for granting merit salary increases or one-time merit payments must include specific criteria and documentation to substantiate the granting of a merit increase or one-time merit payment.] SECTION 21. Subchapter K, Chapter 659, Government Code, is amended by adding Section 659.262 to read as follows: Sec. 659.262. ADMINISTRATION. The comptroller may establish procedures and adopt rules to administer this subchapter. SECTION 22. Section 832.002, Government Code, is amended to read as follows: Sec. 832.002. MEMBERSHIP FEE. (a) Each member of the retirement system annually shall pay the system a membership fee of $10. A contributing member shall pay the fee with the member's first contribution to the retirement system in each fiscal year in the manner provided by Section 835.101 for payment of the member's contribution to the retirement system. (b) If the membership fee is not paid with the member's first contribution of the fiscal year to the retirement system, the board of trustees may deduct the amount of the fee from that contribution or from any benefit to which the member becomes entitled. SECTION 23. Sections 2101.0115(a) and (b), Government Code, are amended to read as follows: (a) A state agency shall submit an annual report to: (1) the governor; (2) [the comptroller; [(3)] the Legislative Reference Library; (3) [(4)] the state auditor; and (4) [(5)] the Legislative Budget Board. (b) A state agency's annual report must cover an entire fiscal year. The agency shall submit the report not later than December 31 of each year [the date and in the form prescribed by the comptroller]. SECTION 24. Section 2113.205(b), Government Code, is amended to read as follows: (b) The comptroller may authorize a [A] state agency to [may] use money appropriated for a particular fiscal year to pay the entire cost or amount of a service, including an Internet connection, a periodical subscription, a maintenance contract, a post office box rental, insurance, or a surety or honesty bond, regardless of whether the service is provided over [it covers] more than one fiscal year. SECTION 25. Section 2162.001, Government Code, is amended to read as follows: Sec. 2162.001. DEFINITIONS [DEFINITION]. In this chapter: (1) "Council" [, "council"] means the State Council on Competitive Government. (2) "Local government" means a county, municipality, special district, school district, junior college district, or other legally constituted political subdivision of the state. SECTION 26. Section 2162.102, Government Code, is amended by adding Subsection (d) to read as follows: (d) To the extent the council determines is feasible, a local government may voluntarily participate in a contract awarded by the council or a state agency under this chapter. A local government that purchases a good or a service under a contract awarded under this chapter is considered to have satisfied any state law requiring the local government to follow a competitive purchasing procedure for the purchase. SECTION 27. Section 2166.406, Government Code, as amended by Chapter 573, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: Sec. 2166.406. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR WATER CONSERVATION MEASURES]. (a) In this section, "energy savings performance contract" means a contract for energy or water conservation measures to reduce energy or water consumption or operating costs of governmental facilities in which the estimated savings in utility costs resulting from the measures is guaranteed to offset the cost of the measures over a specified period. The term [Notwithstanding any other provisions of this chapter, the governing body of a state agency, without the consent of the commission, may enter into a contract for energy conservation measures to reduce energy or water consumption or operating costs of governmental facilities in accordance with this section. [(b) A contract authorized under this section] includes a contract for the installation of: (1) insulation of a [the] building structure and systems within the building; (2) storm windows or doors, caulking or weather stripping, multiglazed windows or doors, heat absorbing or heat reflective glazed and coated window or door systems, or other window or door system modifications that reduce energy consumption; (3) automatic energy control systems, including computer software and technical data licenses; (4) heating, ventilating, or air-conditioning system modifications or replacements that reduce energy or water consumption; (5) lighting fixtures that increase energy efficiency; (6) energy recovery systems; (7) electric systems improvements; (8) water-conserving fixtures, appliances, and equipment or the substitution of non-water-using fixtures, appliances, and equipment; (9) water-conserving landscape irrigation equipment; (10) landscaping measures that reduce watering demands and capture and hold applied water and rainfall, including: (A) landscape contouring, including the use of berms, swales, and terraces; and (B) the use of soil amendments that increase the water-holding capacity of the soil, including compost; (11) rainwater harvesting equipment and equipment to make use of water collected as part of a storm-water system installed for water quality control; (12) equipment for recycling or reuse of water originating on the premises or from other sources, including treated municipal effluent; (13) equipment needed to capture water from nonconventional, alternate sources, including air conditioning condensate or graywater, for nonpotable uses; (14) metering equipment needed to segregate water use in order to identify water conservation opportunities or verify water savings; or (15) other energy or water conservation-related improvements or equipment including improvements or equipment related to renewable energy or nonconventional water sources or water reuse. (b) Notwithstanding any other provision of this chapter, a state agency, without the consent of the commission, may enter into an energy savings performance contract in accordance with this section. (c) Each [All] energy or water conservation measure [measures] must comply with current local, state, and federal construction, plumbing, and environmental codes and regulations. Notwithstanding [anything to the contrary in] Subsection (a) [(b)], an energy savings performance [a] contract may [for energy or water conservation measures shall] not include improvements or equipment that allow or cause water from any condensing, cooling, or industrial process or any system of nonpotable usage over which the public water supply system officials do not have sanitary control to be returned to the potable water supply. (d) A state agency may enter into energy savings performance [The entity with whom the board] contracts only with a person who is [must be] experienced in the design, implementation, and installation of the energy or water conservation measures addressed by the contract. (e) Before entering into an energy savings performance [a] contract [for energy or water conservation measures], a [the governing body of the] state agency shall require the provider of the energy or water conservation measures to file with the agency [governing body] a payment and performance bond relating to the installation of the measures in accordance with Chapter 2253. The agency may also require a separate bond to cover the value of the guaranteed savings on the contract [that is in an amount the governing body finds reasonable and necessary to protect the interests of the state agency and that is conditioned on the faithful execution of the terms of the contract]. (f) The state agency may enter into an energy savings performance [a] contract for a period of more than one year only [for energy or water conservation measures with an entity] if the state agency finds that the amount the state agency would spend on the energy or water conservation measures will not exceed the amount to be saved in energy, water, wastewater, and operating costs over 15 years from the date of installation. (g) An energy savings performance contract [Energy or water conservation measures] with respect to existing buildings or facilities may be financed: (1) under a lease/purchase contract that has a term not to exceed 15 years from the final date of installation and that meets federal tax requirements for tax-free municipal leasing or long-term financing, including a lease/purchase contract under the master equipment lease purchase program administered by the Texas Public Finance Authority under Chapter 1232; (2) with the proceeds of bonds; or (3) under a contract with the provider of the energy or water conservation measures that has a term not to exceed 15 years from the final date of installation. (h) An energy savings performance [A] contract [for energy or water conservation measures] shall contain provisions requiring [pursuant to which] the provider of the energy or water conservation measures to guarantee [guarantees] the amount of the savings to be realized by the state agency under the contract. If the term of the [a] contract [for energy or water conservation measures] exceeds one year, the agency's contractual obligation, including costs of design, engineering, installation, and anticipated debt service, in any one year during the term of the contract beginning after the final date of installation may not exceed the total energy, water, wastewater, and operating cost savings, including [but not limited to] electrical, gas, water, wastewater, or other utility cost savings and operating cost savings resulting from the measures [automatic monitoring and control], as determined by the state agency in this subsection, divided by the number of years in the contract term. (i) An energy savings performance [A] contract shall [under this section may] be let according to the procedures established for procuring certain professional services by Section 2254.004 [under competitive sealed proposal procedures]. Notice of the request for qualifications [proposals] shall be given in the manner provided by Section 2156.002 [for in Chapter 2156]. The State Energy Conservation Office shall establish guidelines and an approval process for awarding energy savings performance contracts [awarded under this section]. The guidelines adopted under this subsection must require that the cost savings projected by an offeror be reviewed by a licensed professional engineer who is not an officer or employee of an offeror for the contract under review or otherwise associated with the contract. An engineer who reviews a contract shall maintain the confidentiality of any proprietary information the engineer acquires while reviewing the contract. An energy savings performance contract may not be entered into unless the contract has been approved by the State Energy Conservation Office. Sections 1001.053 and 1001.407, Occupations Code, apply [Section 19, The Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil Statutes), applies] to work performed under the contract. [The contract shall be awarded to the responsible offeror whose proposal, following negotiations, is determined to be the most advantageous to the state agency considering the savings and other evaluation factors set forth in the request for proposals except that if the state agency finds that no offer is acceptable, it shall refuse all offers.] (j) [In accordance with regulations adopted by the state agency, the state agency may conduct discussions with offerors who submit proposals and who are determined to be reasonably qualified for the award of the contract. Offerors shall be treated fairly and equally with respect to any opportunity for discussion and revision of proposals. [(k) If provided in a request for proposals, proposals shall be opened in a manner that avoids disclosure of the contents to competing offerors and keeps the proposals secret during negotiations. All proposals are open for public inspection after a contract is awarded unless the information is excepted from disclosure under Chapter 552. [(l) To obtain the best final offers, the state agency may allow proposal revisions after submissions and before the award of a contract for energy or water conservation measures. Final review and approval of the contract will be provided by the State Energy Conservation Office. [(m)] The legislature shall base an agency's appropriation for energy, water, and wastewater costs during a fiscal year on the sum of: (1) the agency's estimated energy, water, and wastewater costs for that fiscal year; and (2) if an energy savings performance [a] contract [under this section] is in effect, the agency's estimated net savings resulting from the contract during the contract term, divided by the number of years in the contract term. SECTION 28. Section 2251.025(b), Government Code, is amended to read as follows: (b) The rate of interest that [Interest] accrues on an overdue payment is [at] the rate in effect on September 1 of the fiscal year in which the payment becomes overdue. The rate in effect on September 1 is equal to the sum of: (1) one percent; and (2) the prime rate as published in the Wall Street Journal on the first day of July of the preceding fiscal year that does not fall on a Saturday or Sunday [each month]. SECTION 29. Section 2252.903(e), Government Code, is amended by adding Subdivision (4) to read as follows: (4) "Written contract" does not include a contract the payments for which must be made through the comptroller's issuance of warrants or initiation of electronic funds transfers under Section 404.046, 404.069, or 2103.003. SECTION 30. Section 2305.012, Government Code, is amended to read as follows: Sec. 2305.012. ADMINISTRATION [STAFF]; ASSISTANCE. (a) The energy office shall [provide staff to] implement and administer this chapter. (b) The energy office or the governor through the energy office may [also] enlist the assistance of a private entity or a state agency, department, commission, or other entity to: (1) evaluate or review a proposal; (2) audit a program participant or a supervising state agency; (3) perform administrative duties under this chapter; or (4) develop eligibility or evaluation criteria. SECTION 31. Section 2305.032(a), Government Code, is amended to read as follows: (a) The energy office under the loanstar revolving loan program may [approve and finance projects that] provide loans to finance energy and water efficiency measures for public facilities [eligible applicants for energy-saving capital improvements. Projects approved by the energy office should benefit: [(1) a state agency or institution of higher education; [(2) a public school; [(3) a political subdivision of the state; [(4) a small to medium-sized business; and [(5) a public or nonprofit hospital or health care facility]. SECTION 32. Sections 2305.033(b) and (d), Government Code, are amended to read as follows: (b) In accordance with Part D, Title III [B], Energy Policy and Conservation Act (42 U.S.C. Sec. 6321 et seq.), and its subsequent amendments, the energy office, under the program, shall distribute funds for projects that save measurable quantities of energy. (d) A proposal under Subsection (b) must: (1) promote the conservation of energy; or [and] (2) improve the efficient use of energy through activities that result in quantifiable energy savings, including: (A) energy audits of buildings; (B) technical assistance in reducing energy bills; (C) training to building operators and fiscal officers on various energy issues such as utility bill analysis and energy management techniques; or [and] (D) other technical assistance to programs for which funds are appropriated. SECTION 33. Section 2305.034, Government Code, is amended to read as follows: Sec. 2305.034. STATE AGENCIES PROGRAM. The energy office is the supervising agency for the state agencies program that may distribute funds through Chapter 447. Projects funded under this section may include: (1) energy manager training; (2) energy savings performance contracting services, including: (A) education and training; (B) contract review and approval; (C) third-party contract review; (D) development and dissemination of guidelines; and (E) identification of contract financing sources [described by Section 51.927, Education Code]; (3) energy-efficient design assistance for new facilities, including major renovation; (4) projects for state building design standards compliance; (5) projects to create awareness of model energy codes at the local and state levels; (6) projects to develop and maintain the state's utility database; and (7) other appropriate energy and information applications. SECTION 34. Section 2305.039(b), Government Code, is amended to read as follows: (b) A project may: (1) assist a service provider in providing services such as: (A) [traffic light synchronization; [(B) fleet management; [(C)] computerized transit routing that is energy efficient; (B) commuting solutions [(D) car-care clinics; [(E) vanpooling or ridesharing efforts]; and (C) [(F)] public education related to mass transit; [(G) driver training in energy conservation awareness; and [(H) transportation services for the elderly or persons with a disability;] and (2) include studies to improve existing systems and plan for future transportation systems in this state. SECTION 35. Section 2306.783(a), Government Code, as added by Chapter 432, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: (a) The Texas Interagency Council for the Homeless is composed of: (1) one representative from each of the following agencies, appointed by the administrative head of that agency: (A) the Texas Department of Health; (B) the Texas Department of Human Services; (C) the Texas Department of Mental Health and Mental Retardation; (D) the Texas Department of Criminal Justice; (E) the Texas Department on Aging; (F) the Texas Rehabilitation Commission; (G) the Texas Education Agency; (H) the Texas Commission on Alcohol and Drug Abuse; (I) the Department of Protective and Regulatory Services; (J) the Health and Human Services Commission; (K) the Texas Workforce Commission; (L) the Texas Youth Commission; and (M) the Texas Veterans Commission; (2) [one representative from the office of the comptroller appointed by the comptroller; [(3)] two representatives from the department, one each from the community affairs division and the housing finance division, appointed by the director; and (3) [(4)] three members representing service providers to the homeless, one each appointed by the governor, the lieutenant governor, and the speaker of the house of representatives. SECTION 36. The heading to Chapter 302, Local Government Code, is amended to read as follows:
CHAPTER 302. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR WATER CONSERVATION MEASURES] FOR LOCAL GOVERNMENTS
SECTION 37. Section 302.001, Local Government Code, is amended to read as follows: Sec. 302.001. DEFINITIONS [DEFINITION]. In this chapter: (1) "Energy savings performance contract" means a contract for energy or water conservation measures to reduce energy or water consumption or operating costs of local government facilities in which the estimated savings in utility costs resulting from the measures is guaranteed to offset the cost of the measures over a specified period. The term includes a contract for the installation or implementation of: (A) insulation of a building structure and systems within the building; (B) storm windows or doors, caulking or weather stripping, multiglazed windows or doors, heat-absorbing or heat-reflective glazed and coated window or door systems, or other window or door system modifications that reduce energy consumption; (C) automatic energy control systems, including computer software and technical data licenses; (D) heating, ventilating, or air-conditioning system modifications or replacements that reduce energy or water consumption; (E) lighting fixtures that increase energy efficiency; (F) energy recovery systems; (G) electric systems improvements; (H) water-conserving fixtures, appliances, and equipment or the substitution of non-water-using fixtures, appliances, and equipment; (I) water-conserving landscape irrigation equipment; (J) landscaping measures that reduce watering demands and capture and hold applied water and rainfall, including: (i) landscape contouring, including the use of berms, swales, and terraces; and (ii) the use of soil amendments that increase the water-holding capacity of the soil, including compost; (K) rainwater harvesting equipment and equipment to make use of water collected as part of a storm-water system installed for water quality control; (L) equipment for recycling or reuse of water originating on the premises or from other sources, including treated municipal effluent; (M) equipment needed to capture water from nonconventional, alternate sources, including air-conditioning condensate or graywater, for nonpotable uses; (N) metering equipment needed to segregate water use in order to identify water conservation opportunities or verify water savings; or (O) other energy or water conservation-related improvements or equipment, including improvements or equipment relating to renewable energy or nonconventional water sources or water reuse. (2) "Local [, "local] government" means a county, municipality, or other political subdivision of this state. The term [local government] does not include a school district authorized to enter into an energy savings performance [a] contract [for energy or water conservation measures] under Section 44.901, Education Code. SECTION 38. Section 302.002, Local Government Code, is amended to read as follows: Sec. 302.002. ENERGY SAVINGS PERFORMANCE CONTRACTS [OR WATER CONSERVATION MEASURES]. (a) The governing body of a local government may enter into an energy savings performance [a] contract [for energy or water conservation measures to reduce energy or water consumption or operating costs of governmental facilities] in accordance with this chapter. (b) Each [A contract authorized under this chapter includes a contract for the installation or implementation of: [(1) insulation of the building structure and systems within the building; [(2) storm windows or doors, caulking or weather stripping, multiglazed windows or doors, heat-absorbing or heat-reflective glazed and coated window or door systems, or other window or door system modifications that reduce energy consumption; [(3) automatic energy control systems, including computer software and technical data licenses; [(4) heating, ventilating, or air conditioning system modifications or replacements that reduce energy or water consumption; [(5) lighting fixtures that increase energy efficiency; [(6) energy recovery systems; [(7) electric systems improvements; [(8) water-conserving fixtures, appliances, and equipment or the substitution of non-water-using fixtures, appliances, and equipment; [(9) water-conserving landscape irrigation equipment; [(10) landscaping measures that reduce watering demands and capture and hold applied water and rainfall, including: [(A) landscape contouring, including the use of berms, swales, and terraces; and [(B) the use of soil amendments that increase the water-holding capacity of the soil, including compost; [(11) rainwater harvesting equipment and equipment to make use of water collected as part of a storm-water system installed for water quality control; [(12) equipment for recycling or reuse of water originating on the premises or from other sources, including treated municipal effluent; [(13) equipment needed to capture water from nonconventional, alternate sources, including air conditioning condensate or graywater, for nonpotable uses; [(14) metering equipment needed to segregate water use in order to identify water conservation opportunities or verify water savings; or [(15) other energy or water conservation-related improvements or equipment, including improvements or equipment related to renewable energy or nonconventional water sources or water reuse. [(c) All] energy or water conservation measure [measures] must comply with current local, state, and federal construction, plumbing, and environmental codes and regulations. Notwithstanding Section 302.001(1) [anything to the contrary in Subsection (b)], an energy savings performance [a] contract may [for energy or water conservation measures shall] not include improvements or equipment that allow or cause water from any condensing, cooling, or industrial process or any system of nonpotable usage over which public water supply system officials do not have sanitary control to be returned to the potable water supply. SECTION 39. Section 302.003, Local Government Code, as amended by Chapter 1319, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: Sec. 302.003. PAYMENT AND PERFORMANCE BOND. Notwithstanding any other law [to the contrary], before entering into an energy savings performance [a] contract [for energy conservation measures], the governing body of the local government shall require the provider of the energy or water conservation measures to file with the governing body a payment and performance bond relating to the installation of the [energy conservation] measures in accordance with Chapter 2253, Government Code. The governing body may also require a separate bond to cover the value of the guaranteed savings on the contract. SECTION 40. Section 302.004, Local Government Code, is amended to read as follows: Sec. 302.004. METHOD OF FINANCING; TERMS OF CONTRACT. (a) An energy savings performance contract [Energy or water conservation measures with respect to buildings or facilities] may be financed: (1) under a lease-purchase contract that has a term not to exceed 15 years from the final date of installation and that meets federal tax requirements for tax-free municipal leasing or long-term financing; (2) with the proceeds of bonds; or (3) under a contract with the provider of the energy or water conservation measures that has a term not to exceed 15 years from the final date of installation. (b) An energy savings performance [The] contract shall contain provisions requiring [pursuant to which] the provider of the energy or water conservation measures to guarantee [guarantees] the amount of the savings to be realized by the local government under the contract. If the term of the [a] contract [for energy or water conservation measures] exceeds one year, the local government's contractual obligations in any one year during the term of the contract beginning after the final date of installation may not exceed the total energy, water, wastewater, and operating cost savings, including [but not limited to] electrical, gas, water, wastewater, or other utility cost savings and operating cost savings resulting from the measures as determined by the local government in this subsection, divided by the number of years in the contract term. SECTION 41. Section 302.005, Local Government Code, as amended by Chapters 573 and 1319, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows: Sec. 302.005. BIDDING PROCEDURES; AWARD OF CONTRACT. (a) An energy savings performance [A] contract under this chapter may be let in accordance with the procedures established for procuring certain professional services by Section 2254.004, Government Code. Notice of the request for qualifications shall be published in the manner provided for competitive bidding. (b) Before [(d) Prior to] entering into an energy savings performance [a] contract [under this section], the governing body must require that the cost savings projected by an offeror be reviewed by a licensed [professional] engineer who is not an officer or employee of an offeror for the contract under review or otherwise associated with the contract or the offeror. An engineer who reviews a contract shall maintain the confidentiality of any proprietary information the engineer acquires while reviewing the contract. Sections 1001.053 and 1001.407, Occupations Code, apply [Section 19, The Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil Statutes), applies] to work performed under the contract. SECTION 42. Section 74.103, Property Code, is amended by adding Subsection (d) to read as follows: (d) The comptroller may determine the liability of a holder required to file a property report under Section 74.101 using the best information available to the comptroller if the records of the holder are unavailable or incomplete for any portion of the required retention period. SECTION 43. Section 74.501, Property Code, is amended by adding Subsections (d) and (e) to read as follows: (d) On receipt of a claim form and all necessary documentation and as may be appropriate under the circumstances, the comptroller may approve the claim of: (1) the reported owner of the property; (2) if the reported owner died testate: (A) the appropriate legal beneficiaries of the owner as provided by the last will and testament of the owner that has been accepted into probate or filed as a muniment of title; or (B) the executor of the owner's last will and testament who holds current letters testamentary; (3) if the reported owner died intestate: (A) the legal heirs of the owner as provided by Section 38, Probate Code; or (B) the court-appointed administrator of the owner's estate; (4) the legal heirs of the reported owner as established by an affidavit of heirship order signed by a judge of the county probate court or by a county judge; (5) if the reported owner is a minor child or an adult who has been adjudged incompetent by a court of law, the parent or legal guardian of the child or adult; (6) if the reported owner is a corporation: (A) the president or chair of the board of directors of the corporation, on behalf of the corporation; or (B) any person who has legal authority to act on behalf of the corporation; (7) if the reported owner is a corporation that has been dissolved or liquidated: (A) the sole surviving shareholder of the corporation, if there is only one surviving shareholder; (B) the surviving shareholders of the corporation in proportion to their ownership of the corporation, if there is more than one surviving shareholder; (C) the corporation's bankruptcy trustee; or (D) the court-ordered receiver for the corporation; or (8) any other person that is entitled to receive the unclaimed property under other law or comptroller policy. (e) The comptroller may not pay to the following persons a claim to which this section applies: (1) a creditor, a judgment creditor, a lienholder, or an assignee of the reported owner or of the owner's heirs; or (2) a person holding a power of attorney from the reported owner or the owner's heirs. SECTION 44. Section 112.058(a), Tax Code, is amended to read as follows: (a) Payments [Except as provided in Subsections (b) and (c) of this section, payments] made under protest are to be handled as follows: (1) An officer who receives payments made under protest as required by Section 112.051 [of this code] shall each day send to the comptroller the payments, a list of the persons making the payments, and a written statement that the payments were made under protest. (2) The comptroller shall, immediately on receipt, credit the payments to each fund to which the tax or fee paid under protest is allocated by law. (3) The comptroller shall maintain detailed records of payments made under protest. (4) A payment under protest bears pro rata interest. The pro rata interest is the amount of interest earned by the protested funds [that would be due if the amount had been placed in the suspense account of the comptroller]. SECTION 45. Section 256.009, Transportation Code, is amended to read as follows: Sec. 256.009. REPORT TO COMPTROLLER. (a) Not later than January 30 of each year, the county auditor or, if the county does not have a county auditor, the official having the duties of the county auditor shall file a report with the comptroller that includes: (1) an account of how the money allocated to a county under Section 256.002 during the preceding year was spent; (2) a description, including location, of any new roads constructed in whole or in part with the money allocated to a county under Section 256.002 during the preceding year; (3) any other information related to the administration of Sections 256.002 and 256.003 that the comptroller requires; and (4) [stating] the total amount of expenditures for county road and bridge construction, maintenance, rehabilitation, right-of-way acquisition, and utility construction and other appropriate road expenditures of county funds in the preceding county fiscal year that are required by the constitution or other law to be spent on public roads or highways. (b) The report must be in a form prescribed by the comptroller. (c) [(b)] The comptroller may distribute money under Section 256.002(a) to a county only if the most recent report required by Subsection (a) has been filed. (d) A county official or employee shall provide to the comptroller on request any information necessary to determine the legality of the use of money allocated under Section 256.002. SECTION 46. The following are repealed: (1) Section 44.901, Education Code, as amended by Chapter 1319, Acts of the 77th Legislature, Regular Session, 2001; (2) Section 51.927, Education Code, as amended by Chapter 1319, Acts of the 77th Legislature, Regular Session, 2001; (3) Section 395.103, Finance Code; (4) Subchapters O and P, Chapter 403, Government Code; (5) Section 2166.406, Government Code, as amended by Chapter 1319, Acts of the 77th Legislature, Regular Session, 2001; (6) Section 2305.025, Government Code; (7) Section 2305.073, Government Code; (8) Section 2305.074, Government Code; (9) Section 2305.076, Government Code; (10) Section 2305.032(c), Government Code; (11) Section 2305.033(c), Government Code; (12) Section 302.003, Local Government Code, as amended by Chapter 573, Acts of the 77th Legislature, Regular Session, 2001; (13) Sections 112.058(b) and (c), Tax Code; (14) Sections 256.003(b) and (c), Transportation Code; and (15) Sections 1.02(b)-(i), Chapter 753, Acts of the 76th Legislature, Regular Session, 1999. SECTION 47. (a) For the fiscal biennium beginning September 1, 2003, the comptroller is appropriated from the general revenue fund the amount needed to return any available cash that was transferred to that fund from a fund outside the state treasury and to maintain the equity of the fund from which the transfer was made, as required by Section 403.092, Government Code, as amended by this Act. (b) The changes in law made by this Act to Sections 54.619, 54.622, and 54.624, Education Code, apply to each academic term or semester that begins after the effective date of this Act, other than a term or semester before the 2003 fall semester. (c) The changes in law made by this Act to Section 403.1042, Government Code, do not affect the entitlement of a member serving on the tobacco settlement permanent trust account advisory committee immediately before the effective date of this Act to serve the remainder of the member's current term. As the terms of the members of the tobacco settlement permanent trust account investment advisory committee first expire after the effective date of this Act, the entities authorized to appoint the committee members under Section 403.1042(b), Government Code, as amended by this Act, shall appoint their successors. (d) Section 659.2531, Government Code, as added by this Act, applies only to a transfer that takes effect on or after September 1, 2003. A transfer that takes effect before September 1, 2003, is governed by the law in effect on the effective date of the transfer, and the former law is continued in effect for that purpose. In this subsection, "transfer" has the meaning assigned by Section 659.2531, Government Code, as added by this Act. (e) The changes in law made by this Act to Section 659.255, Government Code, apply only to a merit salary increase or a one-time merit payment that takes effect or is made on or after September 1, 2003. A merit salary increase or a one-time merit payment that takes effect or is made before September 1, 2003, is governed by the law in effect on the date the increase takes effect or the payment is made, and the former law is continued in effect for that purpose. (f) The rate of interest that accrues on a payment that becomes overdue on or after September 1, 2004, is the rate determined under Section 2251.025(b), Government Code, as amended by this Act. The rate of interest that accrues on a payment that becomes overdue before September 1, 2004, is the rate determined under the law in effect before July 1, 2004, and the former law is continued in effect for that purpose. (g) The changes in law made by this Act to Section 2252.903, Government Code, apply only to a written contract that is entered into on or after September 1, 2003. A written contract that is entered into before September 1, 2003, is governed by the law in effect on the date the contract is entered into, and the former law is continued in effect for that purpose. (h) The changes in law made by this Act to Section 74.103, Property Code, apply only to an examination begun on or after September 1, 2003. An examination begun before September 1, 2003, is governed by the law in effect on the date the examination begins, and the former law is continued in effect for that purpose. SECTION 48. (a) Except as provided by this section, this Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003. (b) The amendments by this Act to the following sections take effect September 1, 2003: (1) Section 14(e), Article 42.12, Code of Criminal Procedure, as added by Chapter 1188, Acts of the 76th Legislature, Regular Session, 1999; (2) Section 19(f), Article 42.12, Code of Criminal Procedure; (3) Section 659.253, Government Code; (4) Section 659.255, Government Code; (5) Sections 2101.0115(a) and (b), Government Code; (6) Section 2113.205(b), Government Code; (7) Section 2252.903(e), Government Code; (8) Section 74.103, Property Code; (9) Section 74.501, Property Code; (10) Section 112.058(a), Tax Code; and (11) Section 256.009, Transportation Code. (c) The amendment by this Act to Section 2251.025(b), Government Code, takes effect July 1, 2004. (d) The repeal by this Act of Section 395.103, Finance Code, and Sections 112.058(b) and (c), Tax Code, takes effect September 1, 2003. (e) Sections 659.2531 and 659.262, Government Code, as added by this Act, take effect September 1, 2003.