FISCAL NOTE
Date Requested: January 12, 2024
Time Requested: 05:34 PM |
| Agency: |
Puchasing Division |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1441 |
Introduced |
SB305 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
N/A
Sources of Revenue:
Other Fund This fund does not affect the WV Purchasing Division.
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill proposes to amend W. Va. Code §5A-3-10. The changes noted would not have a direct fiscal impact on the Purchasing Division but may have unintended fiscal consequences on agencies seeking goods or services that are offered by non-profit workshops.
Please note that currently, fair market value is determined by the Purchasing Division through the bidding process, with the low bid establishing fair market value. By mandating that purchases be made from non-profit workshops without competitive bidding and with advice from the Committee on the Purchase of Commodities and Services from the Handicapped, agencies may pay more for the commodities and services than they would if they were solicited through competitive bidding. This was evidenced through a previous solicitation in which a non-profit workshop submitted a bid for a substantially lower price than what the Committee deemed to be their fair market value.
In summary, when a workshop is allowed to bid independently on solicitations, they are more competitively priced in nature.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill proposes to amend W. Va. Code §5A-3-10. The changes noted would not have a direct fiscal impact on the Purchasing Division but may have unintended fiscal consequences on agencies seeking goods or services that are offered by non-profit workshops. However, it is impossible to quantify what that fiscal impact would be.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Samantha Knapp
Email Address: Samantha.S.Knapp@wv.gov