LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 15, 2001
TO: Honorable Tom Ramsay, Chair, House Committee on County
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB197 by Solomons (Relating to the threshold contract
amount at which certain political subdivisions are
required to engage in a competitive purchasing
procedure.), Committee Report 1st House, as amended
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* No fiscal implication to the State is anticipated. *
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Local Government Impact
Under current statute, municipalities may not enter into a contract
without following rules for competitive bidding or competitive sealed
proposals if the project would cost more than $15,000. Sole-source
purchases are exempt from the competitive bidding process if the purchase
would cost $15,000 or less. Current law also requires a municipality to
contact at least two historically underutilized businesses (HUB) for
projects that would cost between $3,000 and $15,000. The bill, as
amended, would change the minimum expenditure requirement from $15,000 to
$25,000 before a municipality would have to use either bidding process
and in applying the exemption for sole-source purchases. Additionally,
the bill as amended would increase the maximum from $15,000 to $25,000
for projects that would require the municipality to contact at least two
HUBs on a rotating basis. The Act would take effect September 1, 2001.
Municipalities would experience a moderate savings by being able to make
expenditures without the expense of the bidding process for those
projects in the newly opened range of $15,001 and $25,000.
Additionally, there would be no significant fiscal impact resulting from
changing the cost range for projects requiring contacting at least two
HUBs.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, DB