AB398_EN

Assembly Bill No. 398–Assemblymen Geddes, Hettrick, Hardy, Beers, Knecht, Anderson, Andonov, Arberry, Buckley, Carpenter, Chowning, Christensen, Collins, Conklin, Gibbons, Giunchigliani, Goicoechea, Goldwater, Grady, Griffin, Gustavson, Horne, Koivisto, Leslie, Mabey, Manendo, Marvel, Mortenson, Parks, Perkins, Pierce, Sherer and Weber

Joint Sponsors: Senators Townsend and Amodei

CHAPTER..........

AN ACT relating to purchasing; establishing an alternative procedure pursuant to which certain performance contracts for the installation or purchase of cost-savings energy measures in buildings occupied by state and local governmental entities are bid; providing the types and terms of such performance contracts; providing limitations on such performance contracts entered into by state agencies; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 332 of NRS is hereby amended by adding

thereto the provisions set forth as sections 2 to 14, inclusive, of this

act.

Sec. 2. As used in sections 2 to 14, inclusive, of this act,

unless the context otherwise requires, the words and terms defined

in sections 3 to 7, inclusive, of this act, have the meanings

ascribed to them in those sections.

Sec. 3. “Building” means any structure, building or facility,

including any equipment, furnishings or appliances within the

structure, building or facility, that is owned or operated by a local

government. The term includes, without limitation, occupied and

unoccupied structures, buildings and facilities, and any other

improvements owned or operated by a local government that incur

operating costs.

Sec. 4. “Operating cost savings” means any expenses that

are eliminated or avoided on a long-term basis as a result of the

installation or modification of equipment, or services performed

by a qualified service company. The term does not include any

savings that are realized solely because of a shift in the cost of

personnel or other similar short-term cost savings.

Sec. 5. “Operating cost-savings measure” means any

improvement, repair or alteration to a building, or any equipment,

fixture or furnishing to be added or used in a building that is

designed to reduce operating costs, including those costs related to

electrical energy and demand, thermal energy, water consumption,

waste disposal and contract-labor costs, and increase the

operating efficiency of the building for the appointed functions

that are cost-effective. The term includes, without limitation:

1. Procurement of low-cost energy supplies, including

electricity and natural gas.

2. Procurement of cost savings as a result of outsourcing

energy needs for electrical power, heating and cooling.

3. Operational or maintenance labor savings resulting from

reduced costs for maintenance contracts as provided through

reduction of required maintenance or operating tasks, including,

without limitation, replacement of filters and lighting products,

and equipment failures.

4. Investment in equipment, products and materials, and

strategies for building operation, or any combination thereof,

designed to reduce energy and other utility expenses, including,

without limitation:

(a) Costs for materials and labor required to replace old

equipment with new, more efficient equipment.

(b) Storm windows or doors, caulking or weather stripping,

multiglazed windows or doors, heat-absorbing or heat-reflective

glazed or coated windows or doors, reductions in glass area, and

other modifications to windows and doors that will reduce energy

consumption.

(d) Replacement of, or modifications to, heating, ventilation or

air-conditioning systems.

(e) Replacement of, or modifications to, lighting fixtures.

(f) Improvements to the indoor air quality of a building that

conform to all requirements of an applicable building code.

(g) Energy recovery systems.

(h) Systems for combined cooling, heating and power that

produce steam or other forms of energy, for use primarily within

the building or a complex of buildings.

(i) Installation of, or modifications to, existing systems for

daylighting, including lighting control systems.

(j) Installation of, or modification to, technologies that use

renewable or alternative energy sources.

(k) Programs relating to building operation that reduce

operating costs, including, without limitation, computerized

programs, training and other similar activities.

(l) Programs for improvement of steam traps to reduce

operating costs.

(m) Devices that reduce water consumption in buildings, for

lawns and for other irrigation applications.

(n) Any additional improvements to building infrastructures

that produce energy and operating cost savings, significantly

reduce energy consumption or increase the operating efficiency of

the buildings for their appointed functions, provided that such

improvements comply with applicable building codes.

(o) Trash compaction and waste minimization.

5. Investment in educational programs relating to

occupational behavior that are designed to reduce the

consumption of energy or water, or both, and the generation of

waste.

Sec. 6. “Performance contract” means a contract between a

local government and a qualified service company for the

evaluation, recommendation and implementation of one or more

operating cost-savings measures.

Sec. 7. “Qualified service company” means a person with a

record of established projects or a person with demonstrated

technical, operational, financial and managerial capabilities to

design and carry out operating cost-savings measures and other

similar building improvements, and who has the ability to secure

necessary financial measures to ensure related guarantees for

operating cost savings.

Sec. 8. 1. Notwithstanding any provision of this chapter

and chapter 338 of NRS to the contrary, a local government may

enter into a performance contract with a qualified service

company for the purchase and installation of an operating cost-

savings measure to reduce costs related to energy, water and the

disposal of waste, and related labor costs. Such a performance

contract may be in the form of an installment payment contract or

a lease-purchase contract. Any operating cost-savings measures

put into place as a result of a performance contract must comply

with all applicable building codes.

2. The local government shall determine those companies

that satisfy the requirements of qualified service companies for the

purposes of sections 2 to 14, inclusive, of this act. The local

government shall prepare and issue a request for qualifications to

not less than three potential qualified service companies.

3. In sending out a request for qualifications, the local

government:

(a) Shall attempt to identify at least one potential qualified

service company located within this state; and

(b) May consider whether and to what extent the companies to

which the request for qualifications will be sent will use local

contractors.

4. The local government shall use objective criteria to

determine those companies that satisfy the requirements of

qualified service companies. The objective criteria for evaluation

must include the following areas as substantive factors to assess

the capability of such companies:

(a) Design;

(b) Engineering;

(d) Maintenance and repairs associated with performance

contracts;

(e) Experience in conversions to different sources of energy or

fuel and other services related to operating cost-savings measures

provided that is done in association with a comprehensive energy,

water or waste disposal cost-savings retrofit;

(f) Monitoring projects after the projects are installed;

(g) Data collection and reporting of savings;

(h) Overall project experience and qualifications;

(i) Management capability;

(j) Ability to access long-term financing;

(k) Experience with projects of similar size and scope; and

(l) Such other factors determined by the local government to

be relevant and appropriate to the ability of a company to perform

the project.

In determining whether a company satisfies the requirements of a

qualified service company, the local government shall also

consider the financial health of the company as evidenced by its

financial statements and ratings and whether the company holds

the appropriate licenses required for the design, engineering and

construction to be completed.

5. The local government shall compile a list of those

companies that it determines satisfy the requirements of qualified

service companies. If the local government is interested in

entering into a performance contract, the local government shall

notify each appropriate qualified service company and coordinate

an opportunity for each such qualified service company to:

(a) Perform a preliminary and comprehensive audit and

assessment of all potential operating cost-savings measures that

might be implemented within the buildings of the local

government, including any operating cost-savings measures

specifically requested by the local government; and

(b) Submit a proposal and make a related presentation to the

local government for all such operating cost-savings measures

that the qualified service company determines would be

practicable to implement.

6. The local government shall:

(a) Evaluate the proposals and presentations made pursuant to

subsection 5; and

(b) Select a qualified service company,

pursuant to the provisions of this chapter for evaluating and

awarding contracts.

7. The qualified service company selected by the local

government pursuant to subsection 6 shall prepare a financial-

grade operational audit. Except as otherwise provided in this

subsection, the audit prepared by the qualified service company

becomes, upon acceptance, a part of the final performance

contract and the costs incurred by the qualified service company

in preparing the audit shall be deemed to be part of the

performance contract. If, after the audit is prepared, the local

government decides not to execute the performance contract, the

local government shall pay the qualified service company that

prepared the audit the costs incurred by the qualified service

company in preparing the audit if the local government has

specifically appropriated money for that purpose.

8. The local government shall retain the professional services

of a third-party consultant with the requisite technical expertise to

assist the local government in reviewing the operating cost-savings

measures proposed by the qualified service company and may

procure sufficient funding from the qualified service company,

through negotiation, to pay for the third-party consultant. Such a

third-party consultant must be certified by the Association of

Energy Engineers as a “Certified Energy Manager” or hold

similar credentials from a comparable nationally recognized

organization. A third-party consultant retained pursuant to this

subsection shall work on behalf of the local government in

coordination with the qualified service company.

Sec. 9. 1. A performance contract may be financed through

a person other than the qualified service company.

2. A performance contract may be structured as:

(a) A performance contract that guarantees operating cost

savings, which includes, without limitation, the design and

installation of equipment, the operation and maintenance, if

applicable, of any of the operating cost-savings measures and the

guaranteed annual savings which must meet or exceed the total

annual contract payments to be made by the local government,

including any financing charges to be incurred by the local

government over the life of the performance contract. The local

government may require that these savings be verified annually or

over a sufficient period that demonstrates savings.

(b) A shared-savings contract which includes provisions

mutually agreed upon by the local government and qualified

service company as to the negotiated rate of payments based upon

operating cost savings and a stipulated maximum consumption

level of energy or water, or both energy and water, over the life of

the contract.

Sec. 10. 1. A performance contract must provide that all

payments, other than any obligations that become due if the

contract is terminated before the contract expires, must be made

over time.

2. Except as otherwise provided in this subsection, a

performance contract, and the payments provided thereunder, may

extend beyond the fiscal year in which the performance contract

becomes effective for costs incurred in future fiscal years. The

performance contract may extend for a term not to exceed 15

years. The length of a performance contract may reflect the useful

life of the operating cost-savings measure being installed or

purchased under the performance contract.

3. The period over which payments are made on a

performance contract must equal the period over which the

operating cost savings are amortized. Payments on a performance

contract must not commence until the operating cost-savings

measures have been installed by the qualified service company.

Sec. 10.3. If a performance contract entered into pursuant to

sections 2 to 14, inclusive, of this act requires the employment of

skilled mechanics, skilled workmen, semiskilled mechanics,

semiskilled workmen or unskilled labor to perform the

performance contract, the performance contract must include a

provision relating to the prevailing wage as required pursuant to

NRS 338.020 to 338.090, inclusive.

Sec. 10.7. Notwithstanding any provision of sections 2 to 14,

inclusive, of this act to the contrary, a performance contract

entered into pursuant to sections 2 to 14, inclusive, of this act must

include a clause that sets out the rights of the local government

and the qualified service company if the local government does not

appropriate sufficient money for payments to be continued under

the performance contract.

Sec. 11. A local government may reinvest any savings

realized under a performance contract whenever practical into

operating cost-savings measures provided the local government is

satisfying all its other obligations under the performance contract.

Sec. 12. 1. During the term of a performance contract, the

qualified service company shall monitor the reductions in energy

or water consumption and other operating cost savings

attributable to the operating cost-savings measure purchased or

installed under the performance contract, and shall, at least once

a year or at such other intervals specified in the performance

contract, prepare and provide a report to the local government

documenting the performance of the operating cost-savings

measures.

2. A performance contract must identify the methodology that

the local government will use to validate the cost savings identified

by the qualified service company.

3. A qualified service company and the local government may

agree to make modifications in the calculation of savings based

on:

(a) Subsequent material changes to the baseline consumption

of energy or water identified at the beginning of the term of the

performance contract.

(b) A change in utility rates.

utility.

(d) A change in the total square footage of the building.

(e) A change in the operational schedule, and any

corresponding change in the occupancy and indoor temperature,

of the building.

(f) A material change in the weather.

(g) A material change in the amount of equipment or lighting

used at the building.

(h) Any other change which reasonably would be expected to

modify the use of energy or the cost of energy.

Sec. 13. A qualified service company shall provide to the

Office of Energy within the Office of the Governor information

concerning each performance contract which the qualified service

company enters into pursuant to sections 2 to 14, inclusive, of this

act, including, without limitation, the name of the project, the

local government for which the project is being carried out and

the expected operating cost savings. The Office of Energy may

report any energy savings realized as a result of such performance

contracts to the United States Department of Energy pursuant to

42 U.S.C. § 13385.

Sec. 14. A performance contract must include appropriate

financial mechanisms determined to be necessary by the city or

county treasurer, as appropriate, to guarantee that operating cost

savings are realized by the local government if the actual cost

savings do not meet the predicted cost savings.

Sec. 15. Chapter 333 of NRS is hereby amended by adding

thereto the provisions set forth as sections 16 to 29, inclusive, of this

act.

Sec. 16. As used in sections 16 to 29, inclusive, of this act,

unless the context otherwise requires, the words and terms defined

in sections 17 to 21.5, inclusive, of this act, have the meanings

ascribed to them in those sections.

Sec. 17. “Building” means any structure, building or facility,

including any equipment, furnishings or appliances within the

structure, building or facility, that is owned or operated by a using

agency. The term includes, without limitation, occupied and

unoccupied structures, buildings and facilities, and any other

improvements owned or operated by a using agency that incur

operating costs.

Sec. 18. “Operating cost savings” means any expenses that

are eliminated or avoided on a long-term basis as a result of the

installation or modification of equipment, or services performed

by a qualified service company. The term does not include any

savings that are realized solely because of a shift in the cost of

personnel or other similar short-term cost savings.

Sec. 19. “Operating cost-savings measure” means any

improvement, repair or alteration to a building, or any equipment,

fixture or furnishing to be added or used in a building that is

designed to reduce operating costs, including those costs related to

electrical energy and demand, thermal energy, water consumption,

waste disposal and contract-labor costs, and increase the

operating efficiency of the building for the appointed functions

that are cost-effective. The term includes, without limitation:

1. Procurement of low-cost energy supplies, including

electricity and natural gas.

2. Procurement of cost savings as a result of outsourcing

energy needs for electrical power, heating and cooling.

3. Operational or maintenance labor savings resulting from

reduced costs for maintenance contracts as provided through

reduction of required maintenance or operating tasks, including,

without limitation, replacement of filters and lighting products,

and equipment failures.

4. Investment in equipment, products and materials, and

strategies for building operation, or any combination thereof,

designed to reduce energy and other utility expenses, including,

without limitation:

(a) Costs for materials and labor required to replace old

equipment with new, more efficient equipment.

(b) Storm windows or doors, caulking or weather stripping,

multiglazed windows or doors, heat-absorbing or heat-reflective

glazed or coated windows or doors, reductions in glass area, and

other modifications to windows and doors that will reduce energy

consumption.

(d) Replacement of, or modifications to, heating, ventilation or

air-conditioning systems.

(e) Replacement of, or modifications to, lighting fixtures.

(f) Improvements to the indoor air quality of a building that

conform to all requirements of an applicable building code.

(g) Energy recovery systems.

(h) Systems for combined cooling, heating and power that

produce steam or other forms of energy, for use primarily within

the building or a complex of buildings.

(i) Installation of, or modifications to, existing systems for

daylighting, including lighting control systems.

(j) Installation of, or modification to, technologies that use

renewable or alternative energy sources.

(k) Programs relating to building operation that reduce

operating costs, including, without limitation, computerized

programs, training and other similar activities.

(l) Programs for improvement of steam traps to reduce

operating costs.

(m) Devices that reduce water consumption in buildings, for

lawns and for other irrigation applications.

(n) Any additional improvements to building infrastructures

that produce energy and operating cost savings, significantly

reduce energy consumption or increase the operating efficiency of

the buildings for their appointed functions, provided that such

improvements comply with applicable building codes.

(o) Trash compaction and waste minimization.

5. Investment in educational programs relating to

occupational behavior that are designed to reduce the

consumption of energy or water, or both, and the generation of

waste.

Sec. 20. “Performance contract” means a contract between a

using agency and a qualified service company for the evaluation,

recommendation and implementation of one or more operating

cost-savings measures.

Sec. 21. “Qualified service company” means a person with a

record of established projects or a person with demonstrated

technical, operational, financial and managerial capabilities to

design and carry out operating cost-savings measures and other

similar building improvements, and who has the ability to secure

necessary financial measures to ensure related guarantees for

operating cost savings.

Sec. 21.5. “Using agency” means all officers, departments,

institutions, boards, commissions and other agencies in the

Executive Department of the State Government which derive their

support from public money in whole or in part, whether the money

is provided by the State of Nevada, received from the Federal

Government or any branch, bureau or agency thereof, or derived

from private or other sources. The term includes the University

and Community College System of Nevada, but does not include

the Nevada Rural Housing Authority, local governments as

defined in NRS 354.474, conservation districts and irrigation

districts.

Sec. 22. 1. Notwithstanding any provision of this chapter

and chapter 338 of NRS to the contrary, a using agency may enter

into a performance contract with a qualified service company for

the purchase and installation of an operating cost-savings

measure to reduce costs related to energy, water and the disposal

of waste, and related labor costs. Such a performance contract

may be in the form of an installment payment contract or a lease-

purchase contract that is subject to the provisions of NRS 353.500

to 353.630, inclusive. Any operating cost-savings measures put

into place as a result of a performance contract must comply with

all applicable building codes.

2. The State Public Works Board shall determine those

companies that satisfy the requirements of qualified service

companies for the purposes of sections 16 to 29, inclusive, of this

act. In making such a determination, the State Public Works

Board shall enlist the assistance of the staffs of the Office of

Energy within the Office of the Governor, the Buildings and

Grounds Division of the Department of Administration and the

Purchasing Division. The State Public Works Board shall prepare

and issue a request for qualifications to not less than three

potential qualified service companies.

3. In sending out a request for qualifications, the State Public

Works Board:

(a) Shall attempt to identify at least one potential qualified

service company located within this state; and

(b) May consider whether and to what extent the companies to

which the request for qualifications will be sent will use local

contractors.

4. The State Public Works Board shall use objective criteria

to determine those companies that satisfy the requirements of

qualified service companies. The objective criteria for evaluation

must include the following areas as substantive factors to assess

the capability of such companies:

(a) Design;

(b) Engineering;

(d) Maintenance and repairs associated with performance

contracts;

(e) Experience in conversions to different sources of energy or

fuel and other services related to operating cost-savings measures

provided that is done in association with a comprehensive energy,

water or waste disposal cost-savings retrofit;

(f) Monitoring projects after the projects are installed;

(g) Data collection and reporting of savings;

(h) Overall project experience and qualifications;

(i) Management capability;

(j) Ability to access long-term financing;

(k) Experience with projects of similar size and scope; and

(l) Such other factors determined by the State Public Works

Board to be relevant and appropriate to the ability of a company to

perform the project.

In determining whether a company satisfies the requirements of a

qualified service company, the State Public Works Board shall

also consider the financial health of the company as evidenced by

its financial statements and ratings and whether the company

holds the appropriate licenses required for the design, engineering

and construction which would be completed pursuant to a

performance contract.

5. The State Public Works Board shall compile a list of those

companies that it determines satisfy the requirements of qualified

service companies. The Purchasing Division shall work directly

with any using agency interested in entering into a performance

contract, using the list of qualified service companies compiled by

the State Public Works Board. The Purchasing Division, in

conjunction with the using agency, shall ensure that each

appropriate qualified service company is notified of the using

agency’s interest in entering into a performance contract and

coordinate an opportunity for each such qualified service

company to:

(a) Perform a preliminary and comprehensive audit and

assessment of all potential operating cost-savings measures that

might be implemented within the buildings of the using agency,

including any operating cost-savings measures specifically

requested by the using agency; and

(b) Submit a proposal and make a related presentation to the

using agency for all such operating cost-savings measures that the

qualified service company determines would be practicable to

implement.

6. The using agency shall:

(a) Evaluate the proposals and presentations made pursuant to

subsection 5; and

(b) Select a qualified service company,

pursuant to the provisions of this chapter, and any regulations

adopted pursuant thereto, for evaluating and awarding contracts.

7. A qualified service company selected by a using agency

pursuant to subsection 6 shall prepare a financial-grade

operational audit. Except as otherwise provided in this subsection,

the audit prepared by the qualified service company becomes,

upon acceptance, a part of the final performance contract and the

costs incurred by the qualified service company in preparing the

audit shall be deemed to be part of the performance contract. If,

after the audit is prepared, the using agency decides not to execute

the performance contract, the using agency shall pay the qualified

service company that prepared the audit the costs incurred by the

qualified service company in preparing the audit, if the

Legislature has specifically appropriated money for that purpose.

An appropriation by the Legislature for the purchase and

installation of an operating cost-savings measure creates no

presumption that the using agency for which the money was

appropriated is required to enter into such a contract.

8. The using agency shall retain the professional services of a

third-party consultant with the requisite technical expertise to

assist the using agency in reviewing the operating cost-savings

measures proposed by the qualified service company. The

Purchasing Division may procure sufficient funding from

the qualified service company, through negotiation, to pay for the

third-party consultant. Such a third-party consultant must be

certified by the Association of Energy Engineers as a “Certified

Energy Manager” or hold similar credentials from a comparable

nationally recognized organization. A third-party consultant

retained pursuant to this subsection shall work on behalf of the

using agency in coordination with the qualified service company.

Sec. 23. 1. A performance contract may be financed

through a person other than the qualified service company.

2. A performance contract may be structured as:

(a) A performance contract that guarantees operating cost

savings, which includes, without limitation, the design and

installation of equipment, the operation and maintenance, if

applicable, of any of the operating cost-savings measures and the

guaranteed annual savings which must meet or exceed the total

annual contract payments to be made by the using agency,

including any financing charges to be incurred by the using

agency over the life of the performance contract. The using

agency may require that these savings be verified annually or over

a sufficient period that demonstrates savings.

(b) A shared-savings contract which includes provisions

mutually agreed upon by the using agency and qualified service

company as to the negotiated rate of payments based upon

operating cost savings and a stipulated maximum consumption

level of energy or water, or both energy and water, over the life of

the contract.

Sec. 24. 1. Notwithstanding any provision of sections 16 to

29, inclusive, of this act to the contrary, a performance contract

entered into pursuant to sections 16 to 29, inclusive, of this act

does not create a debt for the purposes of Section 3 of Article 9 of

the Nevada Constitution.

2. Except as otherwise provided in this section, the term of a

performance contract may extend beyond the biennium in which

the contract is executed, provided that the performance contract

contains a provision which states that all obligations of the State

under the performance contract are extinguished at the end of any

fiscal year if the Legislature fails to provide an appropriation to

the using agency for the ensuing fiscal year for payments to be

made under the performance contract. If the Legislature fails to

appropriate money to a using agency for a performance contract,

there is no remedy against the State, except that if a security

interest in any property was created pursuant to the performance

contract, the holder of such a security interest may enforce the

security interest against that property. The term of a performance

contract must not exceed 15 years.

3. The length of a performance contract may reflect the

useful life of the operating cost-savings measure being installed or

purchased under the performance contract.

Sec. 25. 1. A performance contract must provide that all

payments, other than any obligations that become due if the

contract is terminated before the contract the expires, must be

made over time.

2. The period over which payments are made on a

performance contract must equal the period over which the

operating cost savings are amortized. Payments on a performance

contract must not commence until the operating cost-savings

measures have been installed by the qualified service company.

Sec. 26. If a performance contract entered into pursuant to

sections 16 to 29, inclusive, of this act requires the employment of

skilled mechanics, skilled workmen, semiskilled mechanics,

semiskilled workmen or unskilled labor to perform the

performance contract, the performance contract must include a

provision relating to the prevailing wage as required pursuant to

NRS 338.020 to 338.090, inclusive.

Sec. 27. 1. During the term of a performance contract, the

qualified service company shall monitor the reductions in energy

or water consumption and other operating cost savings

attributable to the operating cost-savings measure purchased or

installed under the performance contract, and shall, at least once

a year or at such other intervals specified in the performance

contract, prepare and provide a report to the using agency

documenting the performance of the operating cost-savings

measures.

2. A qualified service company and the using agency may

agree to make modifications in the calculation of savings based

on:

(a) Subsequent material changes to the baseline consumption

of energy or water identified at the beginning of the term of the

performance contract.

(b) A change in utility rates.

utility.

(d) A change in the total square footage of the building.

(e) A change in the operational schedule, and any

corresponding change in the occupancy and indoor temperature,

of the building.

(f) A material change in the weather.

(g) A material change in the amount of equipment or lighting

used at the building.

(h) Any other change which reasonably would be expected to

modify the use of energy or the cost of energy.

Sec. 28. A qualified service company shall provide to the

Office of Energy within the Office of the Governor information

concerning each performance contract which the qualified service

company enters into pursuant to sections 16 to 29, inclusive, of

this act, including, without limitation, the name of the project, the

using agency for which the project is being carried out and the

expected operating cost savings. The Office of Energy may report

any energy savings realized as a result of such performance

contracts to the United States Department of Energy pursuant to

42 U.S.C. § 13385.

Sec. 29. A performance contract must include appropriate

financial mechanisms determined to be necessary by the State

Treasurer to guarantee that operating cost savings are realized by

the using agency if the actual cost savings do not meet the

predicted cost savings.

Secs. 29.3-29.7. (Deleted by amendment.)

Sec. 30. This act becomes effective on July 1, 2003.

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