LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 11, 1999 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: HB 2787 by Eiland (Relating to the consideration of the location of a bidder's principal place of business in the award of contracts by certain local governments.), As Engrossed ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact A local government choosing to award a contract to a bidder that submits a bid higher than the lowest bid received could incur additional costs which could equal as much as 3 percent of the total contract amount. However, in some cases a local government could recover such losses through additional tax revenues generated by increased economic activity resulting from the award of the contract to a bidder within the local government's jurisdiction. Source Agencies: LBB Staff: JK, TL