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