78R7915 T

By:  McCall                                                       H.B. No. 2425


A BILL TO BE ENTITLED
AN ACT
relating to state 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 comptroller's judiciary [judicial] section [of the comptroller's 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, which must be signed by the current prosecuting attorney of the county in which that sentence was rendered. SECTION 2. Section 14(e), Article 42.12, Code of Criminal Procedure, is amended to read as follows: (e) The clerk of a court that collects a fee under Subsection (c)(2) shall remit the fee to the comptroller not later than the last day of the month following the end of each calendar quarter in which the fee was collected, and the comptroller shall deposit the fee into the general revenue fund. If no fee has been collected, no report need be filed. 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 each calendar quarter in which the fee was 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 no fee has been collected, no report need be filed. SECTION 4. Subchapter Z, Chapter 44, Education Code, is amended by adding Section 44.9011 to read as follows: Sec. 44.9011. ENERGY SAVINGS PERFORMANCE CONTRACTS. (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 their cost over a specified time period. The term includes a contract for the installation or implementation of: (1) insulation of a 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 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 energy or water conservation measure must comply with current local, state, and federal construction, plumbing, and environmental codes and regulations. Notwithstanding Subsection (a), an energy savings performance contract may 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. (d) The board of trustees of a school district may enter into an energy savings performance contract only with a person who is 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 contract, the board of trustees of a school district must 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 measures in accordance with Chapter 2253, Government Code. The board also may require a separate bond to cover the value of the guaranteed savings on the contract. (f) An energy savings performance contract 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 contract must require the provider of the energy or water conservation measures to guarantee the amount of savings to be realized by the school district under the contract. If the term of the contract exceeds one year, then 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 electrical, gas, water, wastewater, or other utility cost savings and operating cost savings resulting from the measures as determined by the school district in this subsection, divided by the number of years in the contract term. (h) An energy savings performance contract must be let according to the procedures established for professional services by Section 2254.004, Government Code. Notice of the request for qualifications shall be published in the manner provided for competitive bidding. (i) Before entering into an energy savings performance contract, the board of trustees of a school district must require that the cost savings projected by an offeror be reviewed by a licensed 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 to work performed under the contract. SECTION 5. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.9271 to read as follows: Sec. 51.9271. ENERGY SAVINGS PERFORMANCE CONTRACTS. (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 their cost over a specified time period. The term includes a contract for the installation or implementation of: (1) insulation of a 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) The governing board of an institution of higher education may enter into an energy savings performance contract in accordance with this section. (c) Each energy or water conservation measure must comply with current local, state, and federal construction, plumbing, and environmental codes and regulations. Notwithstanding Subsection (a), an energy savings performance contract may 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. (d) The governing board of an institution of higher education may enter into an energy savings performance contract only with a person who is 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 contract, the governing board of an institution of higher education must 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 board also may require a separate bond to cover the value of the guaranteed savings on the contract. (f) The governing board of an institution of higher education may enter into an energy savings performance contract for a period of more than one year only 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 contract exceeds one year, then the institution's contractual obligations 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 electrical, gas, water, wastewater, or other utility cost savings and operating cost savings resulting from the measures, 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 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 contract must require the provider of the energy or water conservation measures to guarantee the amount of the savings to be realized by the institution of higher education under the contract. (i) An energy savings performance contract must be let according to the procedures established for professional services by Section 2254.004, Government Code. Notice of the request for qualifications shall be given in the manner provided by Section 2156.002, Government Code. The Texas Higher Education Coordinating Board, in consultation with the state energy conservation office with regard to energy and water conservation measures, shall establish guidelines and an approval process for awarding energy savings performance contracts. The guidelines must require that the cost savings projected by an offeror be reviewed by a licensed 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. Sections 1001.053 and 1001.407, Occupations Code, apply to work performed under the contract. (j) 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 contract 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 403.020, Government Code, is amended to read as follows: Sec. 403.020. PERFORMANCE REVIEW OF SCHOOL DISTRICTS AND INSTITUTIONS OF HIGHER EDUCATION. (a) The comptroller may periodically review the effectiveness and efficiency of the budget [budgets] and operations of a school district [districts] or an institution of higher education. (b) By a majority vote of its members, the board of trustees [A review] of a school district or the governing board of an institution of higher education may request [be initiated by] the comptroller [or by the request of] to review the [school] district or institution. The comptroller may review the district or institution without receiving a request for the review. [A review may be initiated by a school district only by resolution adopted by a majority of the members of the board of trustees of the district.] (c) [(b)] The comptroller may require a [If a review is initiated by the school district, the] school district or an institution of higher education to [shall] pay a maximum of 25 percent of the cost incurred in conducting a [the] review under this section if the district or institution requested the review. (d) [(c)] The comptroller shall: (1) prepare a report showing the results of each review conducted under this section; (2) file the report with: (A) the commissioner of education, if a school district was reviewed; or (B) the commissioner of higher education, if an institution of higher education was reviewed; (3) [(2)] file the report with the [school] district or institution reviewed, the governor, the lieutenant governor, the speaker of the house of representatives, and the chairs of the standing committees of the senate and of the house of representatives with jurisdiction over public education[, and the commissioner of education]; and (4) [(3)] make the entire report and a summary of the report available to the public on the Internet. (e) In this section, "governing board" and "institution of higher education" have the meanings assigned by Section 61.003, Education Code. SECTION 7. 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 8. 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 original warrant was issued 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) a payment law prohibits the comptroller [is prohibited by 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 9. Subsections (a) and (b), Section 403.092, 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 earned [the 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. SECTION 10. 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 established by the Texas Treasury Safekeeping Trust Company and operated like a mutual fund and whose portfolios consist 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 in Subsection (b)(1)-(6). SECTION 11. Section 404.102, Government Code, is amended to read as follows: Sec. 404.102. CREATION OF TRUST COMPANY. (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 utilizing 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. (b) 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. (c) The trust company is a special-purpose trust company with necessary and implied powers to accomplish its purpose and is subject to regulation only as provided by this subchapter. The trust company may not engage in commercial banking activity. SECTION 12. Section 404.123(b), Government Code, is amended to read as follows: (b) The committee may impose a limit on the sum of: (1) the total amount of the notes outstanding; and (2) 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 13. Chapter 447, Government Code, as amended by Chapters 573, 1158, and 1398, 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 or water-related renovation of those buildings and facilities. (d) To the extent that the governor receives money appropriated for energy efficiency programs, the governor, through the state energy conservation office, shall implement 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 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. 6321 et seq.), and its subsequent amendments; (2) Part G, Title III, Energy Policy and Conservation Act (42 U.S.C. 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 14. 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 in Subsection (b), a [A] state employee who transfers [moves] within a state agency from [a] an exempt 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 to [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 [grant a merit salary increase to the employee until at least] less than six months in the classified position [after the date that the agency begins to pay the employee under Salary Schedule A, B, or C of the General Appropriations Act]; or (2) the increase would cause the salary limitation specified in Subsection (b) to be exceeded. (d) The Legislative Budget Board and the governor together may approve an exception to the salary limitation specified in [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 15. (a) Subchapter K, Chapter 659, Government Code, is amended by adding Section 659.2531 to read as follows: Sec. 659.2531. TRANSFER WITHIN AGENCY AMONG 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 in 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 of the appropriate salary group. (b) The changes in law made by Subsection (a) of this section apply only to a transfer that takes effect on or after the effective date of that subsection. A transfer that takes effect before the effective date of that subsection is governed by the law in effect on the effective date of the transfer, and the prior law is continued in effect for that purpose. In this subsection: (1) "Classified position" has the meaning assigned by Section 659.2531, Government Code, as added by Subsection (a) of this section. (2) "State agency" has the meaning assigned by Section 659.252, Government Code. (3) "Transfer" has the meaning assigned by Section 659.2531, Government Code, as added by Subsection (a) of this section. SECTION 16. (a) 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 [applies only to] a position [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 compensation is determined 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 compensation is determined 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] and one-time merit payments. (c) Each state agency shall establish: (1) criteria 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 each classified employee who receives a merit salary increase or 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 state employee with respect to a particular 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's job performance and productivity in that position are consistently above that normally expected or required; (2) [(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]; (3) [(2)] the effective date of the increase is at least six months [must have elapsed since] after the effective date of the employee's last promotion[, enhanced compensation award authorized by the General Appropriations Act, one-time merit payment,] or merit salary increase relating to that position [at the agency]; (4) the effective date of the increase is at least six months after the date of the agency's last payment to the employee of an enhanced compensation award authorized by the General Appropriations Act or a one-time merit payment relating to that position; and (5) [(3)] the agency has complied with Subsection (c) [agency 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]. (f) A state agency may make a one-time merit payment to a state employee with respect to a particular classified position held by the employee if: (1) the employee's job performance and productivity in that position are consistently above that normally expected or required; (2) the employee has been employed by the agency in that position for at least six continuous months before the date of the payment; (3) the date of the payment is at least six months after the effective date of the employee's last promotion or merit salary increase relating to that position; (4) the date of the payment is at least six months after the date of the agency's last payment to the employee of an enhanced compensation award authorized by the General Appropriations Act or a one-time merit payment relating to that position; and (5) the agency has complied with Subsection (c). (b) The changes in law made by Subsection (a) of this section apply only to a merit salary increase that takes effect on or after the effective date of that subsection. A merit salary increase that takes effect before the effective date of that subsection is governed by the law in effect on the date the increase takes effect, and the prior law is continued in effect for that purpose. In this subsection, "merit salary increase" has the meaning assigned by Section 659.255, Government Code, as amended by Subsection (a) of this section. (c) The changes in law made by Subsection (a) of this section apply only to a one-time merit payment that is made on or after the effective date of that subsection. A one-time merit payment that is made before the effective date of that subsection is governed by the law in effect on the date the payment is made, and the prior law is continued in effect for that purpose. SECTION 17. 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 18. 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 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 19. Subsections (a) and (b), Section 2101.0115, 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 20. 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, regardless of whether the service is provided over more than one fiscal year. In this subsection, "service" includes an Internet connection, a periodical subscription, a maintenance contract, a post office box rental, insurance, and [or] a surety or honesty bond[, regardless of whether it covers more than one fiscal year]. SECTION 21. 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 22. Section 2162.102, Government Code, is amended by adding Subsection (d) to read as follows: (d) To the extent the council deems 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 seek competitive bids for the purchase. SECTION 23. Subchapter I, Chapter 2166, Government Code, is amended by adding Section 2166.4061 to read as follows: Sec. 2166.4061. ENERGY SAVINGS PERFORMANCE CONTRACTS. (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 their cost over a specified time period. The term includes a contract for the installation or implementation of: (1) insulation of a 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 energy or water conservation measure adopted under this section must comply with current local, state, and federal construction, plumbing, and environmental codes and regulations. Notwithstanding Subsection (a), an energy savings performance contract may 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 an energy savings performance contract only with a person who is 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 contract, a state agency must require the provider of the energy or water conservation measures to file with the agency a payment and performance bond relating to the installation of the measures in accordance with Chapter 2253. The agency also may require a separate bond to cover the value of the guaranteed savings on the contract. (f) A state agency may enter into an energy savings performance contract for a period of more than one year only if the agency finds that the amount the 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 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 contract must require the provider of the energy or water conservation measures to guarantee the amount of the savings to be realized by the state agency under the contract. If the term of the contract exceeds one year, then the agency's contractual obligations, 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 electrical, gas, water, or wastewater, or other utility cost savings and operating cost savings resulting from the measures as determined by the agency in this subsection, divided by the number of years in the contract term. (i) An energy savings performance contract must be let according to the procedures established for professional services by Section 2254.004. Notice of the request for qualifications shall be given in the manner provided by Section 2156.002. The state energy conservation office shall establish guidelines and an approval process for awarding energy savings performance contracts. The guidelines must require that the cost savings projected by an offeror be reviewed by a licensed 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 to work performed under the contract. (j) 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 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 24. (a) Section 2251.025(b), Government Code, is amended to read as follows: (b) The rate of the interest that [Interest] accrues on an overdue payment [at] is the rate [of one percent each month] 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 Ju1y of the preceding fiscal year that does not fall on a Saturday or Sunday. (b) 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 Subsection (a) of this section. 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 the effective date of this section, and the prior law is continued in effect for that purpose. SECTION 25. (a) Section 2252.903(e), Government Code, is amended by adding Subdivision (4) to read as follows: (4) "Written contract" does not include any 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. (b) The changes in law made by Subsection (a) of this section apply only to a written contract that is entered into on or after the effective date of that subsection. A written contract that is entered into before the effective date of that subsection is governed by the law in effect on the date the contract is entered into, and the prior law is continued in effect for that purpose. In this subsection, "written contract" has the meaning assigned by Section 2252.903, Government Code, as amended by Subsection (a) of this section. SECTION 26. Section 2305.012, Government Code, is amended to read as follows: Sec. 2305.012. 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 27. Section 2305.032, Government Code, is amended to read as follows: Sec. 2305.032. LOANSTAR REVOLVING LOAN PROGRAM. (a) The energy office under the loanstar revolving loan program may [approve and finance projects that] provide loans that finance public facility energy and water efficiency measures [to 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]. (b) The energy office shall determine the terms under which a loan may be made under this section and shall set the interest rate for a loan at a low rate that the energy office determines is sufficient to recover the cost of administering the loan program. (c) [At least 85 percent of the loans made under this section shall be awarded to state agencies, institutions of higher education, public schools, or political subdivisions.] [(d)] Any borrower that receives a loan under this section shall repay the principal of and interest on the loan from the value of energy savings that accrues as the result of the energy conservation measure implemented with the borrowed money. (d) [(e)] An institution that receives a loan under this section shall repay the loan from the amount budgeted for the agency's or institution's energy costs. Until the loan is repaid, the legislature may not reduce the amount budgeted for those energy costs to reflect the value of energy savings that accrues as a result of the energy conservation measure implemented with the borrowed money. (e) [(f)] The energy office shall allocate at least $95 million, including loan commitments and cash on hand, to the loanstar program and shall administer the funds under its control in a manner that assures that funds available to the loanstar program equal or exceed $95 million at all times. SECTION 28. Section 2305.033, Government Code, is amended to read as follows: Sec. 2305.033. STATE ENERGY PROGRAM. (a) The energy office is the supervising state agency for the state energy program. (b) In accordance with Part D [B], title III, Energy Policy and Conservation Act (42 U.S.C. Sec. 6321 et seq.), the energy office, under the program, shall distribute funds for projects that save measurable quantities of energy. (c) [A project under Subsection (b) must be implemented primarily by institutions or private sector energy consumers. [(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, such as [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 29. 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: [described by Section 51.927, Education Code;] (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; (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 30. 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; [(D) car-care clinics;] (B) [(E)] commuting solutions [vanpooling or ridesharing efforts]; and (C) [(F)] public education related to mass transit; and [(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 31. Section 2306.783(a), Government Code, 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 32. 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 33. 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 their cost over a specified time 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 [a] an energy savings performance contract [for energy or water conservation measures] under Section 44.9011 [44.901], Education Code. SECTION 34. 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) [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)] Each [All] energy or water conservation measure adopted under this section [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 [for energy or water conservation measures] may [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 35. Chapter 302, Local Government Code, is amended by adding Section 302.0031 to read as follows: Sec. 302.0031. PAYMENT AND PERFORMANCE BOND. Notwithstanding any other law, before entering into an energy savings performance contract, the governing body of a 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 measures in accordance with Chapter 2253, Government Code. The governing body also may require a separate bond to cover the value of the guaranteed savings under the contract. SECTION 36. 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 must require [shall contain provisions 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, then 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 37. Chapter 302, Local Government Code, is amended by adding Section 302.006 to read as follows: Sec. 302.006. BIDDING PROCEDURES; AWARD OF CONTRACT. (a) An energy savings performance contract may be let according to the procedures established for 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) Prior to entering into an energy savings performance contract, the governing body must require that the cost savings projected by an offeror be reviewed by a licensed 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. Sections 1001.053 and 1001.407, Occupations Code, apply to work performed under the contract. SECTION 38. (a) Section 74.103, Property Code, is amended by adding Subsection (d) to read as follows: (d) If a holder's records are unavailable or incomplete for any portion of the required retention period, then the comptroller may determine the liability of the holder using the best information available to the comptroller. (b) The changes in law made by Subsection (a) of this section apply only to an examination begun on or after the effective date of that subsection. An examination begun before the effective date of that subsection is governed by the law in effect on the date the examination begins, and the prior law is continued in effect for that purpose. In this subsection, "examination" means an examination of records by the comptroller under Subchapter H, Chapter 74, Property Code. SECTION 39. Section 74.501, Property Code, is amended by adding Subsection (d) to read as follows: (d)(1) Upon receipt of a claim form and all necessary documentation and as may be appropriate under the circumstances, the comptroller may approve the claim of: (A) the reported owner of the property; (B) if the reported owner died testate: (i) the appropriate legal beneficiaries of the owner as provided in the last will and testament of the owner that has been accepted into probate or filed as a muniment of title; or (ii) the executor of the owner's last will and testament who holds current letters testamentary; (C) if the reported owner died intestate: (i) the legal heirs of the owner as provided by Section 38, Probate Code; or (ii) the court appointed administrator of the owner's estate; (D) the legal heirs of the reported owner as established by an affidavit of heirship order signed by the judge of the county probate court or by the county judge; (E) 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 that child or adult; (F) if the reported owner is a corporation: (i) the president or chairman of the board of directors of the corporation, on behalf of the corporation; or (ii) any person who has legal authority to act on behalf of the corporation; (G) if the reported owner is a corporation that has been dissolved or liquidated: (i) the sole surviving shareholder of the corporation, if there is only one surviving shareholder; (ii) the surviving shareholders of the corporation in proportion to their ownership of the corporation, if there is more than one surviving shareholder; (iii) the corporation's bankruptcy trustee; or (iv) the court ordered receiver for the corporation; or (H) any other person that is entitled to receive the unclaimed property under other law or comptroller policy. (2) The comptroller may not pay: (A) a creditor, a judgment creditor, a lienholder, or an assignee of the reported owner or of the owner's heirs; or (B) any person holding a power of attorney from the reported owner or the owner's heirs. SECTION 40. Section 112.058(a), Tax Code, is amended to read as follows: (a) [Except as provided in Subsections (b) and (c) of this section,] Payments [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 that would be due if the amount had been placed in the suspense account of the comptroller. SECTION 41. Section 256.003, Transportation Code, is amended to read as follows: Sec. 256.003. USE OF REVENUES FROM COUNTY AND ROAD DISTRICT HIGHWAY FUND. (a) A county may use the money it receives under Section 256.002 only for: (1) purchasing right-of-way for lateral roads, farm-to-market roads, or state highways; (2) constructing and maintaining lateral roads, including the hiring of labor and the purchase of materials, supplies, and equipment; or (3) paying the principal, interest, and sinking fund requirements maturing during the fiscal year on bonds, warrants, or other legal obligations incurred to finance activities described in Subdivisions (1) and (2). [(b) On or before October 1 of each year the county judge of each county shall file with the comptroller a sworn report that includes: [(1) an account of how the money allocated to the county under Section 256.002 during the preceding year was spent; [(2) a description, including location, of any new roads constructed in whole or part with that money; and [(3) any other information related to the administration of Section 256.002 and this section that the comptroller requires. [(c) A county officer or employee shall provide to the comptroller on request any information necessary to determine the legality of the use of funds allocated under Section 256.002.] (b) [(d)] A county may require that bids for construction funded in whole or part by money received under Section 256.002 be submitted to the commission in the manner provided for bids for construction of a state highway. (c) [(e)] On the request of a county, the commission shall provide technical and engineering assistance in making surveys, preparing plans and specifications, preparing project proposals, and supervising construction. The county shall pay the costs of providing the assistance. SECTION 42. 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 [stating] that includes: (1) an account of how the money allocated to the county under Section 256.002 during the preceding year was spent; (2) a description, including location, of any new roads constructed in whole or part with that money; (3) any other information related to the administration of Sections 256.002 and 256.003 that the comptroller requires; and (4) 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. [The report must be in a form prescribed by the comptroller.] (b) A county officer or employee shall provide to the comptroller on request any information necessary to determine the legality of the use of funds allocated under Section 256.002. (c) The report must be in a form prescribed by the comptroller. (d) 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. SECTION 43. (a) The following laws are repealed: (1) Sections 44.901 and 51.927, Education Code. (2) Subchapter O, Chapter 403, Government Code. (3) Sections 2166.406, 2305.025, 2305.073, 2305.074, and 2305.076, Government Code. (4) Sections 302.003 and 302.005, Local Government Code. (b) The following laws are repealed: (1) Section 395.103, Finance Code. (2) Subsections (b) and (c), Section 112.058, Tax Code. SECTION 44. (a) Except as provided in Subsection (c) of this section, for the fiscal year ending August 31, 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) 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. (c) Subsection (a) of this section has no effect if it would take effect September 1, 2003. SECTION 45. (a) Except as provided in Subsections (b) and (c) of this section: (1) 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; and (2) if this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003. (b) This subsection and Sections 2, 3, 14, 15, 16, 17, 19, 20, 25, 38, 39, 40, 41, 42, 43(b), and 44(b) of this Act take effect September 1, 2003. (c) Section 24 of this Act takes effect July 1, 2004.