Date Requested:March 22, 2005
Time Requested:04:59 PM
Agency: Puchasing Division
CBD Number: Version: Bill Number: Resolution Number:
2005R1871 Intro SB632
CBD Subject: State Contracts
FUND(S)
N/A
Sources of Revenue
Other Fund N/A
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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

    This bill creates a preference for vendors who certify they provide health insurance benefits to their employees. As with any preference statutorily authorized on contracts entered into by the state, it offers no direct financial impact to the state; however, it does provide benefits to the particular sector of vendors who meet the established criteria.
    
    Please note that since this bill is written as part of 5A-3, this preference would not affect any state entities exempt from this section of the West Virginia Code, such as higher education and Division of Highways road construction.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
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
3. Explanation of above estimates (including long-range effect):
    There would be no direct financial gain or loss to the state as a result of the passage of this bill.


Memorandum
Person submitting Fiscal Note:
Diane Holley
Email Address:
dholley@wvadmin.gov
    This bill, as written, is vague in terms of the amount or percentage of preference a vendor would receive if it met the criteria established in SB632 and has received the stated certification from the State Insurance Commission.
    
    In addition, the Purchasing Division would not have the capability or data to ensure that such contracted vendor no longer maintained this status of providing insurance to its employees. If the vendor no longer provided this insurance to its employees, and would thereby be viewed as a willful breach of contract, state agencies and political subdivisions that rely on this contract for services would suffer if the contract would have to be cancelled without notice.
    
    In order to fully comply with this legislation, the Purchasing Division recommends that when vendors submit a bid that they provide a certification or affidavit verifying that their business is in compliance with the State Insurance Commission as it relates to this initiative.