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