NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR:	Eisenstadt		DATE TYPED:	02/16/00		HB
SHORT TITLE:		Electronic Commerce Services				SB	100/aHAFC
					ANALYST:		Woodlee

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY00

FY01

FY00

FY01

NFI

See Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Economic Development Department

State Department of Public Education

SUMMARY

Synopsis of HAFC Amendment

The amendment adds a new section to the bill that serves as a disclaimer for the electronic commerce marketplace. The section explains that the Legislature finds the state does not support or oppose the establishment of an online portal on state web sites, and the state does not represent that consumers will buy more or less money when making purchases on the online portal.

Synopsis of Bill

Senate Bill 100 directs the Secretary of Economic Development to contract for no cost services to establish an electronic portal on a state owned website to enable consumers to access an electronic commerce marketplace. The electronic marketplace must pay a rebate to the state on all sales made by participating venders for transactions that occur through the state website. The revenue generated would be deposited in the Educational Technology Fund.

Significant Issues

The 1994 Technology for Education Act established the Technology for Education Fund and the Council on Technology in Education. Annual requests for funding are made on behalf of the K-12 community to the State Board of Education and the Legislature by the council. The Legislature has made annual appropriations to the fund. The revenue from the website would be in addition to the annual appropriation.

FISCAL IMPLICATIONS

The bill does not contain an appropriation. Revenues from the electronic commerce portal are to be deposited into the Educational Technology Fund.

MW/gm