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