LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 3, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1752
Committee on State Affairs By: Armbrister
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1752 ( Relating
to the purchase of goods and services by the state and to purchasing
services provided by the state to local governments.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1752-As Introduced
No significant fiscal implication to the State is anticipated.
Fiscal Analysis
The bill would require state agencies and
institutions of higher education to use the "best value" approach
when evaluating contractor bids and to provide a process for
barring contractors from contracting with the state under certain
circumstances. The bill would also increase the threshold for
requiring competitive bids from $1,000 to $2,000 and allow the
General Services Commission (GSC) to delegate additional purchasing
authority to state agencies. The bill would require the GSC
to establish a training and continuing education program for
certifying state agency purchasing staff. The cost of providing
this training program would be provided on a full cost recovery
basis.
Methodology
The expanded training program for state
agency purchasing staff required by the bill would result in
additional costs based on an assessment of workload by the GSC.
These costs would be recovered by the GSC in the form of interagency
contracts. However, the cost to each agency is not expected
to be significant.
The purchase of products and services
having the "best value" could result in savings to the state
over the long run due to increased reliability, durability,
and quality of the products and services purchased.
The bill would not require units of local government to participate
in the training programs offered by the GSC. However, local
governments choosing to receive such training would be charged
on a cost recovery basis by the GSC.
Source: Agencies: 720 University of Texas System Administration
601 Department of Transportation
696 Department of Criminal Justice
303 General Services Commission
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,RN