LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 14, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1752, Committee Report 1st House, Substituted 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-Committee Report 1st House, Substituted 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 allow a state agency to purchase goods and services from a vendor who is not on the bidders list if the purchase price does not exceed $5,000. 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