PDH C.S.H.B. 2492 76(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2492
By: Lewis, Ron
Energy Resources
3/30/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, an institution of higher education, school district, state
agency, or local government is authorized to enter into a contract for
energy conservation measures, also known as Energy Savings Performance
Contracting (ESPC).  C.S.H.B. 2492 modifies and makes uniform the language
of the four sections of law which govern ESPC by amending ESPC funding
options and specifying when the term of ESPC begins.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 44.901, Education Code, by amending Subsections
(f)-(h) to authorize energy conservation measures, with respect to existing
buildings or facilities of a school district, to be financed under a
lease/purchase contract that has a term not to exceed 15 years, rather than
10 years, and provides that the term of such lease/purchase contract begins
on the final date of installation.  Adds the ability to finance energy
conservation measures with the proceeds of bonds or under a contract with
the provider of the energy conservation measures that has a term of 15
years, at most, from the final date of installation.    Makes conforming
changes and redesignates Subsections (g) and (h) to (h) and (i). 

SECTION 2.  Amends Section 51.927, Education Code, as amended by Chapters
627 and 1142, Acts of the 75th Legislature, Regular Session, 1997, by
reenacting and amending Subsections (f)-(k) to authorize energy
conservation measures for institutions of higher education to be financed
under a lease/purchase contract that has a term not to exceed 15 years,
rather than 10 years.  Adds the ability to finance energy conservation
measures with the proceeds of bonds or under a contract with the provider
of the energy conservation measures that has a term of 15 years, at most,
from the final date of installation.  Makes conforming changes and
redesignates Subsections (h)-(k) to (i)-(l).   

SECTION 3.  Amends Section 2166.406, Government Code, by amending
Subsections (b) and (f)-(l) to authorize energy conservation measures, with
respect to existing buildings or facilities of a state agency, to be
financed under a lease/purchase contract that has a term not to exceed 15
years, rather than 10 years, and provides that the term of such
lease/purchase contract begins on the final date of installation.  Adds the
ability to finance energy conservation measures with the proceeds of bonds
or under a contract with the provider of the energy conservation measures
that has a term of 15 years, at most, from the final date of installation.
Makes conforming changes and redesignates Subsections (h)-(l) to (i)-(m).   

SECTION 4.  Amends Section 302.004, Local Government Code, as follows:

Sec. 302.004.  New title: "METHOD OF FINANCING; TERMS OF CONTRACT."
Authorizes energy conservation measures, with respect to existing buildings
or facilities of a local government entity, to be financed under a
lease/purchase contract that has a term not to exceed 15 years, rather than
10 years, and provides that the term of such lease/purchase contract begins
on the final date of installation.  Adds the ability to finance energy
conservation measures with the proceeds of bonds or under a contract with
the provider of the energy conservation measures that has a term of 15
years, at most, from the final date of installation.  Makes conforming
changes. (Deletes old title which read "LEASE-PURCHASE CONTRACT
AUTHORIZED.") 

SECTION 5.  Provides that to the extent of any conflict, this Act prevails
over another Act of the 76th Legislature, Regular Session, 1999, relating
to nonsubstantive additions and corrections in enacted codes, including
H.B. 3156 or S.B. 1368. 

SECTION 6.  Effective date: September 1, 1999.

SECTION 7.  Emergency clause.     

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original to conform to the legislative council
format.  The substitute adds a new SECTION 5 which provides that to the
extent of any conflict, this Act prevails over another Act of the Regular
Session of the 76th Legislature relating to nonsubstantive additions and
corrections in enacted codes.