Fiscal Note - SB 0174 - Statute of Limitations-Defective Construction
L.R. NO. 0634-01
BILL NO. SB 174
SUBJECT: Statute of Limitation on Defective Construction
TYPE: Original
DATE: February 3, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of the State Courts Administrator, the Office of
Administration, the Office of Attorney General, the Department of
Transportation, and the Department of Economic Development assume this
proposal will have no fiscal impact to their agencies.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
The proposal may have a fiscal impact on small businesses as it shortens the
period of time in which a suit may be filed for defective construction,
DESCRIPTION
This act changes the statute of limitations for actions arising from a
defective or unsafe condition of an improvement to real property. Under
current law, the statute of limitations is ten years from the date such
improvement is completed.
Under this act, the statute of limitations starts to run when such
improvement is "substantially completed." This term is defined as an
improvement that may be used as intended even if there is minor work yet to
be completed. A person may only bring an action against someone who is
charged with the design, planning or construction of the improvement.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Office of the Attorney General
Office of the State Courts Administrator
Office of Administration
Department of Transportation
Department of Economic Development
This Fiscal Note is not an official copy and should not be quoted or cited.