FISCAL NOTE
Date Requested: February 18, 2025
Time Requested: 04:56 PM |
| Agency: |
Purchasing Division |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1953 |
Introduced |
HB2593 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
N/A
Sources of Revenue:
Other Fund This fund does not affect the WV Purchasing Division.
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This bill proposes to prohibit State agencies from doing business with vendors that have a strategic non-financial relationship with foreign entities with values antithetical to those of the state of West Virginia.
While this bill would likely not have a direct fiscal impact on the Purchasing Division, it could have an impact on the state overall by requiring the Purchasing Division or other spending units to reject a low bidder in favor of a higher bidder if the low bidder falls under this law, as stipulated. This could increase expenses for the agency seeking the contract.
It could also prohibit existing contracts from being renewed if the current vendor is determined to have the defined relationship with foreign entities that have values contrary to those of the state of West Virginia. The resultant rebid would add unexpected time and expense for the agency.
Finally, this would create an administrative hardship and slow down the procurement process for the Purchasing Division if every vendor is required to provide evidence demonstrating ownership layers that conclude with individual natural persons.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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 |
Explanation of above estimates (including long-range effect):
While this bill would likely not have a direct fiscal impact on the Purchasing Division, it could have an impact on the state overall by requiring the Purchasing Division or other spending unit to reject a low bidder in favor of a higher bidder if the low bidder falls under this law, as stipulated. This could increase expenses for the agency seeking the contract.
It could also prohibit existing contracts from being renewed if the current vendor is determined to have the defined relationship with foreign entities that have values contrary to those of the state of West Virginia. The resultant rebid would add unexpected time and expense for the agency.
Memorandum
None
Person submitting Fiscal Note: Samantha Willis
Email Address: Samantha.L.Willis@wv.gov