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