LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 9, 2001 TO: Honorable Tom Ramsay, Chair, House Committee on County Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB969 by Oliveira (Relating to local governments that may consider the location of a bidder's principal place of business in awarding contracts.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact The bill would increase the population cap for municipalities and counties that are authorized to award contracts to local vendors even if the local vendors' bid is not the lowest bid, as long as it is within 3 percent of the lowest bid. The population cap for municipalities would be raised from 100,000 or less to 200,000 or less. The population cap for counties would be raised from 300,000 or less to 400,000 or less. The bill would take effect immediately if it receives the requisite two-thirds vote in each house or September 1, 2001. The change in population cap would increase the number of cities and counties that could make awards to other than the lowest bidder in order to make awards to local vendors. The cost to each eligible government entity would be no more than 3 percent above the lowest bid. For example, on a bid of $100,000, the local government would pay up to $3,000 more if awarding the bid to a local vendor that did not have the lowest bid. Source Agencies: LBB Staff: JK, DB