LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

March 25, 2003

TO:	Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	SB733 by Ratliff (Relating to the purchase by a local government of an item from a local vendor.), As Introduced

No fiscal implication to the State is anticipated.

The bill would authorize a local government to purchase items from a local vendor without going through the competitive bidding process if the vendor's price is equal to or less than the price at which the local government could purchase the item under certain government purchasing programs of this state. The bill would take effect September 1, 2003.

If a local government is able to purchase items locally at the same or lower price as otherwise likely, there would be a savings in administrative costs associated with the bid process, in addition to obtaining a low cost for the purchase.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:
LBB Staff:	JK, JO, DLBa