LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 25, 1997
TO: Honorable Carlos F. Truan, Chair IN RE: Senate Bill No. 820
Committee on International Relations, Trade & Technology By: West, Royce
Senate
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-As Introduced
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.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
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:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
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 ,TH ,RN