LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 18, 1997
TO: Honorable Ron E. Lewis, Chair IN RE: House Bill No. 1564
Committee on County Affairs By: Eiland
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1564 ( Relating
to requiring all political subdivisions to select a depository
and follow a competitive bidding process.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB1564-As Introduced
No fiscal implication to the State is anticipated.
Requiring all political subdivisions to select a depository
according to the procedures currently required for municipalities
or counties could result in an initial increase in administrative
costs to political subdivisions which currently are not following
such procedures. However, these costs are not anticipated to
be significant.
Requiring all political subdivisions to follow
competitive bidding procedures currently applicable to municipalities
and counties should not result in significant fiscal implications
to political subdivisions in most cases, since all political
subdivisions generally follow competitive bidding procedures
similar to those applicable to municipalities and counties.
Political subdivisions which currently are exempted from
competitive bidding procedures in certain instances could, however,
experience significant negative fiscal implications as a result
of this bill. For example, the Lower Colorado River Authority
expects that this bill would require the authority to follow
competitive bidding procedures for the procurement of items
required for the authority's power generating facilities, which
could increase costs to the authority. Because the authority
occasionally must replace certain items in a very short period
of time to maintain continuous facility operations, the time
required by the competitive bidding process could necessitate
the need for the authority to purchase supplemental electricity
from other entities. The authority anticipates that electricity
purchased from other entities would cost substantially more
than it costs the authority to produce its own electricity.
Source: Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK ,TL