FISCAL NOTE

House Bill 524 as introduced would allow local awarding authorities to establish a local preference zone, in which businesses that are located within the zone could be awarded a public contract, if their bid is no more than 5% higher than the lowest bidder. Additionally, this bill would provide that a local awarding authority may award a public contract to a business whose bid I up to 10% higher the lowest responsible bidder, if (1) the lowest bidder does not have a place of business within the state and (2) the business is located in a local preference zone, a woman-owned business, a veteran-owned business, an enterprise of a small business, or a disadvantaged-owned enterprise. Any public contract awarded by local awarding authorities above the offer of the lowest bidder would increase the obligations of the local awarding authority by an undetermined amount dependent upon (1) the cost above the lowest bidder for the public contract and (2) the number of contracts in which the lowest bidder is not selected.