LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 18, 1997
         
         
      TO: Honorable Rodney Ellis, Chair            IN RE:  House Bill No. 172, Committee Report 2nd House, Substituted
          Committee on Jurisprudence                              By: Nixon, Joe
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB172 ( Relating 
to project contract claims against a unit of state government.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB172-Committee Report 2nd House, Substituted
         

No significant fiscal implication to the State is anticipated.
         
Fiscal Analysis

The bill would amend Title 5, Civil Practice 
and Remedies Code to allow contractors to file a claim against 
a unit of state government for breach of a Project Contract. 
 Claims would first be negotiated by the unit of state government 
designated in the contract; appeals would be referred to the 
State Office of Administrative Hearings (SOAH).  The decision 
of an administrative law judge at SOAH to award some portion 
of a claim would be forwarded to the Speaker of the House and 
Lt. Governor as a recommendation for an appropriation.  Awards 
would be limited to the total value of the consideration stated 
in the contract.  

The cost to the state for claims arising 
pursuant to the bill would depend on the extent to which the 
Legislature appropriates funds for judgments or settlements. 
 
         
 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,BB ,JC