LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 11, 2009 TO: Honorable Garnet Coleman, Chair, House Committee on County Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB78 by Flynn (Relating to the amount of a county expenditure for which competitive bidding is required.), As Introduced No fiscal implication to the State is anticipated. The bill would amend the Local Government Code to raise the minimum purchase expenditure from $25,000 to $50,000 for when a competitive bidding procedure is required to be used by a local government entity for certain purchases. The minimum expenditure amount for a contract for construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property would remain at $25,000 for a governmental entity other than a county, but would change to $50,000 for a county. The proposed changes in statute would apply only to contracts awarded on or after the effective date of the bill, which would be September 1, 2009. Raising the minimum amount for when a competitive bidding procedure is required would provide greater flexibility in the purchasing process and reduce some of the expenses involved for purchases that fall within the expanded range. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JOB, DB
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 11, 2009
TO: Honorable Garnet Coleman, Chair, House Committee on County Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB78 by Flynn (Relating to the amount of a county expenditure for which competitive bidding is required.), As Introduced
TO: Honorable Garnet Coleman, Chair, House Committee on County Affairs
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB78 by Flynn (Relating to the amount of a county expenditure for which competitive bidding is required.), As Introduced
Honorable Garnet Coleman, Chair, House Committee on County Affairs
Honorable Garnet Coleman, Chair, House Committee on County Affairs
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB78 by Flynn (Relating to the amount of a county expenditure for which competitive bidding is required.), As Introduced
HB78 by Flynn (Relating to the amount of a county expenditure for which competitive bidding is required.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend the Local Government Code to raise the minimum purchase expenditure from $25,000 to $50,000 for when a competitive bidding procedure is required to be used by a local government entity for certain purchases. The minimum expenditure amount for a contract for construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property would remain at $25,000 for a governmental entity other than a county, but would change to $50,000 for a county. The proposed changes in statute would apply only to contracts awarded on or after the effective date of the bill, which would be September 1, 2009. Raising the minimum amount for when a competitive bidding procedure is required would provide greater flexibility in the purchasing process and reduce some of the expenses involved for purchases that fall within the expanded range.
The bill would amend the Local Government Code to raise the minimum purchase expenditure from $25,000 to $50,000 for when a competitive bidding procedure is required to be used by a local government entity for certain purchases. The minimum expenditure amount for a contract for construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property would remain at $25,000 for a governmental entity other than a county, but would change to $50,000 for a county. The proposed changes in statute would apply only to contracts awarded on or after the effective date of the bill, which would be September 1, 2009.
Raising the minimum amount for when a competitive bidding procedure is required would provide greater flexibility in the purchasing process and reduce some of the expenses involved for purchases that fall within the expanded range.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JOB, DB
JOB, DB