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