FISCAL NOTE

Date Requested: February 09, 2017
Time Requested: 08:09 AM
Agency: Administration, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1571 Introduced SB190
CBD Subject: Finance and Administration


FUND(S):

N/A

Sources of Revenue:

General Fund,Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    This legislation would eliminate the statute relating to vendor preference, which requires the state to pay up to 5% more to a West Virginia bidder as opposed to an out of state bidder.
    
    Elimination of this requirement would assure that contracts are awarded to the lowest, responsible vendor, thus saving the state money.
    
    The Purchasing Division is unaware of any other state that has a resident vendor preference. The National Association of State Procurement Officials (NASPO) conducts an annual survey and inquiries from states on several different types of preference. The majority of states have reciprocal preference.
    
    Additionally, the State of New York prohibits any and all West Virginia companies from doing business with any of its cities, counties, and other political subdivisions due to the vendor preference that exists in our state.
    
    The current state law exempts construction contracts from this preference as requested by the Contractors Association of West Virginia, in part because border states (and most states) have reciprocity laws that make it difficult for our vendors to sell in other states.
    
    The Purchasing Division has experienced only very rare occasions in which vendor preference affects the award of a contract or purchase order. Please note that many agencies are exempt from the Purchasing Division and may or may not be required to follow current law.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
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):


    With the elimination of vendor preference, the state could pay up to 5% less for goods and services (excluding construction since it is exempt from vendor preference)in which vendor preference could change the award of a contract or purchase order.



Memorandum


    N/A



    Person submitting Fiscal Note: Diane Holley-Brown
    Email Address: Diane.M.Holley@wv.gov