HB 604 -- SCHOOL ENERGY CONSERVATION PROJECTS

This bill allows school districts to transfer money from their
teachers' and incidental funds to their capital projects fund to
repay guaranteed energy savings performance contracts if the
contracts do not require payments until equivalent amounts of
energy savings have been realized.

HB 604 -- SCHOOL ENERGY CONSERVATION PROJECTS (Fritts)

This bill allows school districts to transfer money from their
teachers' and incidental funds to their capital projects fund to
repay guaranteed energy savings performance contracts if the
contracts do not require payments until equivalent amounts of
energy savings have been realized.

FISCAL NOTE:  No impact on state funds.

HB 604 -- SCHOOL ENERGY CONSERVATION PROJECTS

SPONSOR:  Fritts

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on  Education - Elementary and Secondary by a vote of 23 to 0.

This bill allows school districts to transfer money from their
teachers' and incidental funds to their capital projects fund to
repay guaranteed energy savings performance contracts if the
contracts do not require payments until equivalent amounts of
energy savings have been realized.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that guaranteed energy-saving
contracts for building renovation can help school districts save
money and provide a better environment without putting the
school district at financial risk because the contracts allow
the contractor to assume the financial obligation.  These
contracts do not increase a school's obligations; they make
better use of funds that would otherwise be spent for utility
payments.  Such contracts provide that no payment is necessary
until the district has accrued enough savings from the
renovation to make a payment and also provide for the
possibility that the contractor must pay the district if savings
do not materialize.  Restrictions on fund transfers for lease--
purchase payments currently make it difficult for districts to
use this sort of contract.  Fund transfers from the teachers'
and incidental funds should not in themselves affect a
district's salary compliance calculation, although reduced
expenditures resulting from energy savings might eventually have
a marginal effect on calculating percentage of expenditures.
Because this sort of contract involves a considerable investment
by potential contractors in preparing a proposal, the contract
is competitively negotiated instead of being bid.

Testifying for the bill were Representative Fritts; and
Honeywell, Inc.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Research Analyst

HB 604 -- School Energy Conservation Projects

Sponsor:  Fritts

This bill allows school districts to transfer money from their
teachers' and incidental funds to their capital projects fund to
repay guaranteed energy savings performance contracts if the
contracts do not require payments until equivalent amounts of
energy savings have been realized.