FISCAL NOTE

Date Requested: January 11, 2018
Time Requested: 09:36 AM
Agency: Administration, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1810 Introduced HB2936
CBD Subject: Finance and Administration


FUND(S):

various, depending on the agency

Sources of Revenue:

Other Fund various

Legislation creates:





Fiscal Note Summary


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


The Department of Administration is made up of 15 agencies that are generally subject to the provisions of Article 3 of Chapter 5A. The bill would require purchases made under the $2,500 threshold to be the lowest price. Many of our 15 agencies utilize this delegated procurement as a matter of convenience because it is a low dollar amount, but still with consideration to the price of the item being purchased. The new language will add to the time required to buy many of these low dollar items, and when employee time in market research is factored in, may drive the cost higher than the item originally would have been under the delegated authority. These soft costs are impossible to quantify at this time. The provisions related to master contracts would have no effect on costs, as master contracts are not currently utilized by any of our 15 agencies. This code section has not been utilized by any state agency since enacted a few years ago.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
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):


It is impossible to quantify any increased costs as a result of the bill. The new language will add to the time required to buy any item under $2,500, and when employee time in market research is factored in, may drive the cost higher than the item originally would have been under the delegated authority. The provisions related to master contracts would have no effect on costs, as master contracts are not currently utilized by any of our 15 agencies.



Memorandum


The terms "retail market cost" and "level of quality specified by the spending unit" leave some portions of the bill open to interpretation. It is impossible to quantify any effect on costs, based on the new language, as time by employees spent researching "retail market cost" of low dollar items would be a factor. The elimination of master contracts will have no effect on the Department of Administration or its agencies, as none of the agencies utilize master contracts at this time.



    Person submitting Fiscal Note: Jennelle H. Jones
    Email Address: jennelle.h.jones@wv.gov