FISCAL NOTE

Date Requested: January 09, 2019
Time Requested: 05:05 PM
Agency: Highways, Division of
CBD Number: Version: Bill Number: Resolution Number:
1302 Introduced HB2114
CBD Subject: Consumer Protection


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. The Division of Highways has reviewed the request for a Fiscal Note on HB 2114. Based on the language in the Bill, it is difficult to determine whether the 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. That reliance allows DOH to concentrate on road building and repairs, instead of managing the daily purchases across the State.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
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. In some instances on certain consumables, it could be possible to save money. That savings would depend on quality and quantity requirements. For example, it could be possible to save money on windshield wipers purchased at a local hardware store if the product is on sale that day. However, if DOH requires a large volume of commercial-grade windshield wipers, the local hardware store may only provide consumer-grade and not commercial-grade windshield wipers. Additionally, the local hardware store may not have the quantity necessary for DOH operations across the State. 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 statutes.



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. The terms “equipment” and “hardware” are sufficiently vague to limit the usefulness of this fiscal note and the bill. For example, the terms “equipment and hardware” could mean anything, an iPad, printer, cell phone, belts, hoses, hammers, lawn mower or backhoe. While DOH might save a few dollars on windshield wipers purchased at a retail store, it would not account for the agency wide savings when large quantities of an item purchased on the low bid, statewide contract. The option offered in this bill is in addition to the purchasing card which is available for necessary purchases at local retail stores. Additionally, 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 the 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