LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 17, 2017 TO: Honorable René Oliveira, Chair, House Committee on Business & Industry FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1215 by Hughes (Relating to responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.), Committee Report 2nd House, As Amended No fiscal implication to the State is anticipated. The bill would amend the Business and Commerce Code exempting a contractor from liability for certain defects in plans, specifications, or other design or bid documents provided to the contractor by the person or person's proxy with whom the contractor has entered into the contract. The bill would only apply to a contract for construction or repair to real property. A contractor must disclose a condition discovered during construction that was not known or could not have reasonably been known at the time of design.The bill would take effect September 1, 2017. Local Government Impact According to the Texas Municipal League, the fiscal impact cannot be determined because it will depend on the particular circumstances with each building project but could be significant in some cases. Source Agencies: LBB Staff: UP, CL, GG, BM, AG, JGA, DRE
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
May 17, 2017
TO: Honorable René Oliveira, Chair, House Committee on Business & Industry FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1215 by Hughes (Relating to responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.), Committee Report 2nd House, As Amended
TO: Honorable René Oliveira, Chair, House Committee on Business & Industry
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1215 by Hughes (Relating to responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.), Committee Report 2nd House, As Amended
Honorable René Oliveira, Chair, House Committee on Business & Industry
Honorable René Oliveira, Chair, House Committee on Business & Industry
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1215 by Hughes (Relating to responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.), Committee Report 2nd House, As Amended
SB1215 by Hughes (Relating to responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property.), Committee Report 2nd House, As Amended
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend the Business and Commerce Code exempting a contractor from liability for certain defects in plans, specifications, or other design or bid documents provided to the contractor by the person or person's proxy with whom the contractor has entered into the contract. The bill would only apply to a contract for construction or repair to real property. A contractor must disclose a condition discovered during construction that was not known or could not have reasonably been known at the time of design.The bill would take effect September 1, 2017.
Local Government Impact
According to the Texas Municipal League, the fiscal impact cannot be determined because it will depend on the particular circumstances with each building project but could be significant in some cases.
Source Agencies:
LBB Staff: UP, CL, GG, BM, AG, JGA, DRE
UP, CL, GG, BM, AG, JGA, DRE