LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 25, 2003

TO:	Honorable Kenny Marchant, Chair, House Committee on State Affairs
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB2397 by Corte (Relating to a vendor’s or subcontractor’s remedy for nonpayment of certain contracts.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would amend the Government Code by allowing a vendor to suspend performance of a contract if the governmental entity failed to pay an undisputed amount within the time limits provided. Any governmental entity that claims that there is a good faith dispute must notify the vendor with specificity and provide an opportunity to cure.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:	601 Department of Transportation, 302 Office of the Attorney General, 303 Building and Procurement Commission
LBB Staff:	JK, RR, MS, RG