LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION

April 28, 2021

TO:	Honorable Chris Turner, Chair, House Committee on Business & Industry
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB3422 by Morrison (relating to restrictions under disaster remediation contracts; providing a civil penalty.), Committee Report 1st House, Substituted

The fiscal implications to the state cannot be determined because revenues from penalties created by the bill for certain actions related to disaster remediation contractors cannot be estimated.

The bill would amend the Business and Commerce Code to create a civil offenses concerning disaster remediation contractors requiring full or partial payment under a contract before a contractor begins work under circumstances defined in the bill. Based on the analysis of the Comptroller of Public Accounts, any penalties and fees imposed under the new offenses cannot be determined.

Based on information provided by the Department of Criminal Justice, it is assumed all duties and responsibilities associated with implementing the provisions of the bill could be accomplished utilizing existing resources. Based on information provided by the Office of Court Administration, no significant fiscal impact to the State court system is anticipated due to implementing the provisions of the bill.

The bill would take effect September 1, 2021.

Local Government Impact

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

Source Agencies:

212 Office of Court Admin, 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality, 696 Department of Criminal Justice

LBB Staff:

JMc, SZ, MW, GDZ