LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

May 10, 2007

TO:	Honorable Royce West, Chair, Senate Committee on Intergovernmental Relations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB3517 by Creighton (Relating to competitive purchasing requirements for local governments.), As Engrossed

No fiscal implication to the State is anticipated.

The bill would amend the Local Government Code to remove restrictions on municipalities of a certain population size regarding the purchase of insurance. In addition, the bill would authorize a municipality to use the competitive sealed proposal procedure for the purchase of goods or services. A municipality would be required to determine the best value for the municipality if it were to consider a method of purchasing other than sealed bid.

The bill would amend the Health and Safety Code to increase from $25,000 to $50,000 the minimum expenditure for certain items or services that would require an emergency service district board to submit to competitive bids.

The bill would take effect September 1, 2007.

Local Government Impact

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

Source Agencies:

LBB Staff:

JOB, MN, DB