LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 April 7, 2001 TO: Honorable Bill G. Carter, Chair, House Committee on Urban Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB2486 by Clark (Relating to the purchasing and contracting authority of municipalities; providing penalties.), Committee Report 1st House, Substituted ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would change the range of limits for expenditures that require competitive bidding for purchases and contracts, identifying certain exemptions for use of the competitive bidding process. The bill would also provide criteria under which a municipality would not be required to award a contract to the lowest bidder. Additionally, under the provisions of the bill, municipalities would be authorized to conduct or contract for on-line bidding, including conducting a reverse auction. Local Government Impact A sampling of municipalities contacted indicated that the provisions of the bill would provide a cost savings. The savings would vary by municipality, depending on purchasing needs; however, officials in the cities of Mesquite and Amarillo both indicated a possible $6,000 savings annually. Source Agencies: LBB Staff: JK, DB