LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION April 3, 2017 TO: Honorable John Zerwas, Chair, House Committee on Appropriations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB579 by Turner (Relating to notice of certain state agency contract cost that exceeds the amount of the contract.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapter 2261 of the Government Code, regarding state contracting standards and oversight.The bill would require a state agency to provide notice to the Governor, Lieutenant Governor, Speaker of the House of Representatives, and each member of the Legislature, in accordance with procedures established by the Comptroller of Public Accounts, for each of the agency's contracts to purchase services from a vendor for which the actual cost of the service exceeds the amount contracted for the service by $1 million or more. The bill would require a state agency to provide the notice not later than the 30th day after a cost exceeds the contract amount by $1 million. The bill would require the notice to include the amount of the excessive cost, the reason for the excessive cost, any opportunity the agency had to lessen the excessive cost or purchase the service from another vendor after the excessive cost was disclosed, and any other information the Comptroller determines relevant. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts LBB Staff: UP, KK, JPU, DRE, LBe LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION April 3, 2017 TO: Honorable John Zerwas, Chair, House Committee on Appropriations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB579 by Turner (Relating to notice of certain state agency contract cost that exceeds the amount of the contract.), As Introduced TO: Honorable John Zerwas, Chair, House Committee on Appropriations FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB579 by Turner (Relating to notice of certain state agency contract cost that exceeds the amount of the contract.), As Introduced Honorable John Zerwas, Chair, House Committee on Appropriations Honorable John Zerwas, Chair, House Committee on Appropriations Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB579 by Turner (Relating to notice of certain state agency contract cost that exceeds the amount of the contract.), As Introduced HB579 by Turner (Relating to notice of certain state agency contract cost that exceeds the amount of the contract.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend Chapter 2261 of the Government Code, regarding state contracting standards and oversight.The bill would require a state agency to provide notice to the Governor, Lieutenant Governor, Speaker of the House of Representatives, and each member of the Legislature, in accordance with procedures established by the Comptroller of Public Accounts, for each of the agency's contracts to purchase services from a vendor for which the actual cost of the service exceeds the amount contracted for the service by $1 million or more. The bill would require a state agency to provide the notice not later than the 30th day after a cost exceeds the contract amount by $1 million. The bill would require the notice to include the amount of the excessive cost, the reason for the excessive cost, any opportunity the agency had to lessen the excessive cost or purchase the service from another vendor after the excessive cost was disclosed, and any other information the Comptroller determines relevant. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts 300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts LBB Staff: UP, KK, JPU, DRE, LBe UP, KK, JPU, DRE, LBe