LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 3, 2001
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB641  by Duncan (Relating to the acquisition of goods
               and services by institutions of higher education.), As
               Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill extends to general academic institutions the flexibility in the
process of acquisition of goods and services previously provided to
health-related institutions.

In this bill, institutions of higher education are allowed to make
purchases using the best value method of evaluating bids.  A bill passed
during the 74th legislative session (1995), allowed medical and dental
units to follow this practice.  This bill merely extends the original
legislation to apply to all institutions of higher education.

This bill would partially implement recommendation ED-4 from the
Comptroller's report, e-Texas: Smaller, Smarter, Faster Government.  The
bill would simplify and deregulate the procurement process at
institutions of higher education.  Although institutions could save
money under the bill's provisions, it is assumed any funds saved through
greater efficiencies would be retained by the institutions, resulting in
no significant fiscal impact on the state.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   781   Texas Higher Education Coordinating Board
LBB Staff:         JK, CT, HM