Fiscal Note - SB 0171 - Expands Architect Lien Law
L.R. NO. 0811-01
BILL NO. Truly Agreed To and Finally Passed SB 171
SUBJECT: Architect's Lien Law
TYPE: Original
DATE: May 15, 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 Department of Economic Development, Department of
Transportation, Department of Conservation, and the Office of Administration
assume there would be no fiscal impact to their agencies as a result of this
proposal.
The Office of State Courts Administrator assumes there would not be a
significant increase in the workload of the courts as a result of this
proposal.
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
This proposal would have a positive fiscal impact on small businesses engaged
in professional engineering, architectural or landscape design, and land
surveying, as this proposal would allow them to have lien rights under
certain conditions whether or not the planned work or construction has been
started.
Additionally, this proposal may have a negative fiscal impact on small
business who own rental property as this proposal would provide for liens
against their property for agreements executed by lessees.
DESCRIPTION
This act grants lien rights to architects, engineers and surveyors who have
performed work connected to the building or repair of any improvement to real
property even if actual construction of such improvement has not commenced.
Under current law, no lien attaches until an improvement or building has been
erected. For these lien rights to attach, the following must be present: 1)
the owner or lessee of the land has directly contracted for such services;
and 2) such owner owns, or lessee leases, the property at the time the
contract is made or at the time the lien is filed. If an engineer, architect
or surveyor files an action to recover the costs of services rendered, the
owner or lessee may defend such action on the basis that the planned
improvement is impracticable or infeasible.
The proposed legislation would exempt the following from the architecture
certification requirement: any person who renders architectural services in
connection with the remodeling or repairing of any privately owned building
or a multiple family dwelling containing not more than four families and who
indicates he/she is not a registered architect.
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 State Courts Administrator
Department of Transportation
Department of Conservation
Office of Administration
Department of Economic Development
This Fiscal Note is not an official copy and should not be quoted or cited.