LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 11, 1999
  
  
          TO:  Honorable Tom Ramsay, Chair, House Committee on County
               Affairs
  
        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
               Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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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