LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 29, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1066, Committee Report 1st House, Substituted
Committee on State Affairs By: Zaffirini
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1066 ( relating
to procurement practices by health and human services agencies,
by certain other agencies with programs related to health or
human services, and by certain public and private local providers
of health or human services.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by SB1066-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
positive impact of $2,922,441 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 implement Texas Performance Review (TPR) recommendation
HHS30 in "Disturbing the Peace: The Challenge of Change in Texas
Government," relating to the use of flexible purchasing practices.
Methodolgy
The estimates assume that agencies will take three months to
implement the provisions of the bill. According to the Comptroller
of Public Accounts, state agencies with health-related programs
should be able to achieve about a one percent savings on certain
procurements, saving approximately $2.0 million in general revenue
annually.
The Health and Human Services Commission would
be required to adopt rules and procedures governing the acquisition
of goods and services that apply to all health and human services
agencies. HHSC would also be required to coordinate the purchasing
practices of these agencies. One and a half full-time equivalent
positions is included as part of the cost to implement these
provisions.
It is assumed that the other agencies affected
by the provisions of the bill would be able to implement the
provisions of the bill within existing resources.
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 Change in Number
Savings/(Cost) Savings/(Cost) of State
from General from General Employees from
Revenue Fund Revenue Fund FY 1997
0001 0001
1998 ($79,142) $1,298,000 1.5
1998 (71,417) 1,775,000 1.5
2000 (71,417) 1,775,000 1.5
2001 (71,417) 1,775,000 1.5
2002 (71,417) 1,775,000 1.5
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $1,218,858
1999 1,703,583
2000 1,703,583
2001 1,703,583
2002 1,703,583
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The bill would amend the Human Resources Code and the Health
and Safety Code to allow the same flexibility in purchasing
for public and private Disproportionate Share Program hospitals
and local providers of health services affiliated with the Department
of Health and Department of Mental Health and Mental Retardation.
These provisions would allow savings to accrue to these local
entities to the extent that the practices are not in place and
that the entities adopt these procurement practices.
Source: Agencies: 501 Department of Health
308 State Auditor's Office
304 Comptroller of Public Accounts
529 Health and Human Services Commission
655 Texas Department of Mental Health and Mental Retardation
303 General Services Commission
302 Office of the Attorney General
453 Workers' Compensation Commission
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,AZ