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