LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 1, 2001 TO: Honorable Tom Ramsay, Chair, House Committee on County Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB2863 by Farabee (Relating to county competitive purchases.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact The bill would increase the minimum amount of an expenditure for a contract that must be submitted by a county for competitive bidding from more than $15,000 to more than $25,000. The provisions of the bill would also adjust the maximum amount for a purchase recommended by the county road engineer from $15,000 or less to $25,000 or less that could be made through negotiations. Additionally, the bill would stipulate that purchases may not be divided or reduced to avoid competitive bidding requirements on a purchase that would otherwise cost more than $25,000, whereas the current threshold amount is $15,000. Counties 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. Source Agencies: LBB Staff: JK, DB