FISCAL NOTE

Date Requested: January 21, 2020
Time Requested: 01:09 PM
Agency: Administration, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1477 Introduced HB4449
CBD Subject: Finance and Administration


FUND(S):

N/A

Sources of Revenue:

Other Fund N/A

Legislation creates:





Fiscal Note Summary


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


The Purchasing Division is unable to determine an accurate cost for this bill, but would note the following: 1. The bill is located in Chapter 5A, Article 3, and would not apply to the approximately 40 different agencies that have been granted an exemption from Purchasing Division oversight. 2. The bill would prohibit the traditional tie-breaker of a best and final offer that generally results in lower prices. 3. The bill could reduce the willingness of manufacturers to bid on state procurements thereby increasing overall costs.



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):


The Purchasing Division is unable to determine an accurate cost for this bill, but would note the following: 1. The bill is located in Chapter 5A, Article 3, and would not apply to the approximately 40 different agencies that have been granted an exemption from Purchasing Division oversight. 2. The bill would prohibit the traditional tie-breaker of a best and final offer that generally results in lower prices. 3. The bill could reduce the willingness of manufacturers to bid on state procurements thereby increasing overall costs.



Memorandum


The bill is vague regarding what a “bulk” purchase would be and what exactly would be considered “sufficient” inventory.



    Person submitting Fiscal Note: Samantha Knapp
    Email Address: Samantha.S.Knapp@wv.gov