FISCAL NOTE

Date Requested: February 10, 2020
Time Requested: 11:44 AM
Agency: Transportation, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
3227 Introduced HB2353
CBD Subject: Actions, Suits and Liens


FUND(S):

State Road Fund

Sources of Revenue:

Special Fund

Legislation creates:





Fiscal Note Summary


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


Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government. HB2353, based on the language in the Bill, it is difficult to determine whether Division of Highways (DOH) would save money, break even or lose money without additional, specific information. Currently DOH relies on the Purchasing Division at the Department of Administration to provide contract and liability language on large and small purchasing contracts.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
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):


Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years. The cost savings cannot be estimated since the cost of "local" items compared to "state contract" items cannot be determined. For example, it could be possible to save money on windshield wipers purchased at a local hardware store if the product is on sale. However, if DOH required large volume of commercial-grade windshield wipers, the local hardware store may only provide consumer-grade product. Importantly, the bid process allows a discounted, low-bid purchase of bulk purchases on all items, not just the individual, daily sales on specific items and prevents DOH employees from inadvertently violating the purchasing stringing statues.



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. HB2353 does not define what is meant by "hardware items", "equipment", "local seller" or "holder of the state contract". For example, the terms "equipment and hardware" could mean anything, an iPad, printer, cell phone, belts, hoses, hammers, lawn mowers, or backhoe. Technically, bidders could wait until the state contracts are awarded and simply price items slightly under the bid prices. This could encourage vendors to not even participate in the State bids. The DOH would be forced to enact rules to insure our personnel were transparent when soliciting prices from locals and comparing to know state contract prices. Agencies may request a waiver from a statewide contract if the vendor is unable to deliver the commodity or service by the required delivery date, assuming that the spending unit is not imposing an unreasonable delivery deadline, the vendor is unresponsive to ordering requests, or vendor has refused to perform. The waiver option and the use of the purchasing card may accomplish the intent of the bill.



    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: lorrie.a.hodges@wv.gov