COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0452-01

Bill No.: SB 168

Subject: Commissioner of Administration Could Waive Bids for Mental Health Services.

Type: Original

Date: January 3, 2001




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.



FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Mental Health (DMH) stated the proposed legislation will allow the Department to continue its current practice, previously authorized in statute, to let fixed price contracts. The scope of the procedures and responsibilities remain unchanged. Therefore, the DMH will not incur a fiscal impact.



Officials from the Office of Administration - Purchasing and Materials Management (COA) stated the proposed legislation would not fiscally impact their organization. However, COA officials did state they are unable to determine the long-range impact of allowing Chapter 34 bidding requirements to be waived for certain purchases made by the Department of Mental Health. Chapter 34 bidding requirements are intended to provide open and fair competition for state contracts and ensure that the state receives the "lowest and best" products and services.







FISCAL IMPACT - State Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



This proposal will allow the Commissioner of Administration to waive the required bidding procedures for the purchase of services for patients, residents, and clients of the Department of Mental Health if such services can best be purchased directly by the department.



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.



SOURCES OF INFORMATION



Department of Mental Health

Office of Administration





Jeanne Jarrett, CPA

Director



January 3, 2001