LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 29, 2011 TO: Honorable Byron Cook, Chair, House Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1851 by Reynolds (Relating to historically underutilized businesses and the preference given for goods and services purchased by state agencies; providing penalties.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Government Code related to state purchasing and historically underutilized businesses (HUBs). The bill would authorize the Comptroller and state agencies, when determining the best value for the state for goods or services, to consider whether a business is a HUB. The bill would revise standards for giving preference to items produced or grown in Texas or offered by Texas vendors. The bill would include veterans with a service-connected disability in the definition of an "economically disadvantaged person". The bill would authorize state agencies to use the HUB directory to create mailing list for soliciting bids from HUBs. The bill would create a definition of a "joint venture" to include an association between two or more businesses in which at least one party is considered a HUB that is established to carry on a single business activity. The bill would require the Comptroller to determine when a state agency is required to make good faith effort to award a contract to a joint venture. The bill would require the Comptroller to review and approve joint venture agreements and review and mediate disputes arising from joint venture agreements. The bill would amend subcontracting provisions for receiving bids from HUBs. The bill would add attorney services to the definition of professional services. The Comptroller anticipates costs associated with an increase in HUB certification workload and review and mediation of joint venture agreements. It is anticipated that any additional costs associated with implementation of the legislation could be absorbed within existing resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: JOB, KJG, LCO
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
March 29, 2011
TO: Honorable Byron Cook, Chair, House Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1851 by Reynolds (Relating to historically underutilized businesses and the preference given for goods and services purchased by state agencies; providing penalties.), As Introduced
TO: Honorable Byron Cook, Chair, House Committee on State Affairs
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB1851 by Reynolds (Relating to historically underutilized businesses and the preference given for goods and services purchased by state agencies; providing penalties.), As Introduced
Honorable Byron Cook, Chair, House Committee on State Affairs
Honorable Byron Cook, Chair, House Committee on State Affairs
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB1851 by Reynolds (Relating to historically underutilized businesses and the preference given for goods and services purchased by state agencies; providing penalties.), As Introduced
HB1851 by Reynolds (Relating to historically underutilized businesses and the preference given for goods and services purchased by state agencies; providing penalties.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code related to state purchasing and historically underutilized businesses (HUBs). The bill would authorize the Comptroller and state agencies, when determining the best value for the state for goods or services, to consider whether a business is a HUB. The bill would revise standards for giving preference to items produced or grown in Texas or offered by Texas vendors. The bill would include veterans with a service-connected disability in the definition of an "economically disadvantaged person". The bill would authorize state agencies to use the HUB directory to create mailing list for soliciting bids from HUBs. The bill would create a definition of a "joint venture" to include an association between two or more businesses in which at least one party is considered a HUB that is established to carry on a single business activity. The bill would require the Comptroller to determine when a state agency is required to make good faith effort to award a contract to a joint venture. The bill would require the Comptroller to review and approve joint venture agreements and review and mediate disputes arising from joint venture agreements. The bill would amend subcontracting provisions for receiving bids from HUBs. The bill would add attorney services to the definition of professional services. The Comptroller anticipates costs associated with an increase in HUB certification workload and review and mediation of joint venture agreements. It is anticipated that any additional costs associated with implementation of the legislation could be absorbed within existing resources.
The bill would amend the Government Code related to state purchasing and historically underutilized businesses (HUBs). The bill would authorize the Comptroller and state agencies, when determining the best value for the state for goods or services, to consider whether a business is a HUB. The bill would revise standards for giving preference to items produced or grown in Texas or offered by Texas vendors. The bill would include veterans with a service-connected disability in the definition of an "economically disadvantaged person". The bill would authorize state agencies to use the HUB directory to create mailing list for soliciting bids from HUBs. The bill would create a definition of a "joint venture" to include an association between two or more businesses in which at least one party is considered a HUB that is established to carry on a single business activity. The bill would require the Comptroller to determine when a state agency is required to make good faith effort to award a contract to a joint venture. The bill would require the Comptroller to review and approve joint venture agreements and review and mediate disputes arising from joint venture agreements. The bill would amend subcontracting provisions for receiving bids from HUBs. The bill would add attorney services to the definition of professional services.
The Comptroller anticipates costs associated with an increase in HUB certification workload and review and mediation of joint venture agreements. It is anticipated that any additional costs associated with implementation of the legislation could be absorbed within existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: JOB, KJG, LCO
JOB, KJG, LCO