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

SPONSOR Papen

ORIGINAL DATE

LAST UPDATED

1/27/07

HB

SHORT TITLE Competition for State Goods & Services

SB 474

ANALYST Hanika Ortiz

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$50.0

recurring

general fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Division of Vocational Rehabilitation (DVR)

Developmental Disabilities Planning Council (DDPC)

SUMMARY

Synopsis of Bill

Senate Bill 474 appropriates $50 thousand to the DVR of the public education department ensur-

ing that persons with a disability are able to compete for state goods and services through im-

plementation of the state use Act.

FISCAL IMPLICATIONS

The appropriation of $50 thousand contained in this bill for expenditure in 2008 and subsequent

years, is a recurring expense to the general fund. Any unexpended or unencumbered balance re-

maining at the end of a fiscal year shall not revert to the general fund.

The appropriation in SB 474 is not included in the DVR Budget Request and the Executive

Budget Recommendation for 2008.

SIGNIFICANT ISSUES

DVR reports in 2005 The State Use Act was created by the 2005 legislature to identify purchased

state services from persons with disabilities and community rehabilitation programs. The State

Senate Bill 474 – Page

2

Purchasing Council contracts with a Community Non-Profit Agency (CNA) to represent persons

with disabilities and community rehabilitation providers in their bidding for state service con-

tracts. To establish the initial contract with the CNA, the State Purchasing Council is requesting

the $50 thousand contained in the bill. A Community Non-Profit (CNA) will serve as a broker of

bids and receive a fee for contracted services between the State, other public bodies, Community

Rehabilitation Agencies and persons with disabilities. The funds generated by contracting fees

charged by the CNA should support future operational expenses.

ADMINISTRATIVE IMPLICATIONS

DVR reports the department is prepared to administer the appropriation for the State Purchasing

Council with existing staff and resources.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicate HB 334

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The state’s recent efforts to support persons with disabilities as employees or contractors may not

be fully supported.

AHO/mt