LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 2, 1997 TO: Honorable Steven Wolens, Chair IN RE: Senate Bill No. 820, Committee Report 2nd House, as amended Committee on State Affairs By: West,Royce House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB820 ( Relating to the establishment and operation of an electronic procurement marketplace, including an electronic commerce network.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB820-Committee Report 2nd House, as amended Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis The bill would require the General Services Commission to establish and manage an electronic procurement marketplace. The cost of developing and administering the electronic commerce services required by the bill would be recovered by charges to participating state agencies, vendors, and units of local government. Methodolgy The General Services Commission anticipates that the development of the system will first include a limited pilot project during fiscal year 1998. Should the pilot produce the anticipated results then full implementation will be during fiscal year 1999. All costs would be covered by charges to state agencies and units of local government through interagency contracts. Five Year Impact: Fiscal Year Probable Probable Revenue Change in Number Savings/(Cost) Gain/(Loss) from of State from Other - Other - Employees from Interagency Interagency FY 1997 Contracts Contracts OTHER-OTH OTHER-OTH 1998 ($240,000) $240,000 2.0 1998 (1,074,797) 1,074,797 3.0 2000 (1,110,814) 1,110,814 3.0 2001 (1,137,314) 1,137,314 3.0 2002 (1,285,314) 1,285,314 3.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Local governments that choose to make use of the GSC's electronic commerce services would be charged a fee. Source: Agencies: 303 General Services Commission LBB Staff: JK ,JD ,TH ,RN