LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 21, 1999
  
  
          TO:  Honorable Steven Wolens, Chair, House Committee on State
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1757 by Turner, Sylvester (relating to procurement by
               local governments and state agencies of certain automated
               systems through certain nonprofit organizations), As
               Introduced
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
**************************************************************************
  
The bill would allow local governments and state agencies to purchase
computer and telecommunications equipment and applications from certain
non-profit organizations without going through a competitive bidding
process.  Although the bill should have no significant impact on state
expenditures, there is the potential for a loss in savings from volume
purchasing if state agencies choose to make purchases through these
non-profit organizations on a routine basis.  The Department of
Information Resources has estimated the potential cost to the state from
a decrease in volume of as much as $12.0 million in fiscal year 2000 and
$12.4 million in fiscal year 2001.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.  The  bill will provide local governments with greater
flexibility in the procurement of computer and telecommunications
equipment and software.
  
  
Source Agencies:   
LBB Staff:         JK, BB, PH, ZS