Date Requested:January 23, 2012
Time Requested:03:41 PM
Agency: Puchasing Division
CBD Number: Version: Bill Number: Resolution Number:
2012R1618 Introduced HB4263
CBD Subject: PROCUREMENT OF DOMESTIC PRODUCTS ACT
FUND(S)
0210
Sources of Revenue
General Fund
Legislation creates:
A New Program

Fiscal Note Summary

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

    It is uncertain as to the fiscal impact which this legislation would have on the state if implemented. However, it is likely to cause unanticipated delays in the procurement process to provide the assurances required by law. Additionally, should waivers be requested, the posting in the State Register and the 30-day comment period to evaluate the waiver request could severely slow down construction of public buildings.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
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):
    The fiscal impact is unknown at this time, hence, no increase or decrease has been noted.


Memorandum
Person submitting Fiscal Note:
Diane Holley-Brown
Email Address:
Diane.M.Holley@wv.gov
    Aside from the potential delays in public construction projects due to the assurances and possible waiver requests that the Purchasing Division may encounter, another issue relates to the penalties noted. As written, the Purchasing Division is unsure as to what authority would bar contractors from any state contract. If the penalty is authorized of the Purchasing Director, this language conflicts with the current penalties as noted in ยง5A-3-32 which provides the authority to suspend up to one year.
    
    The legislation notes that all state agencies shall propose rules for legislative approval to implement the requirement of this section. This requirement could become cumbersome for the legislative rule-making committee to review rules for each agency for this Act.
    
    Additionally, the division is unaware of any method to prove or audit the requirements as written in the draft legislation; therefore, self-certification would deem to be necessary.