Fiscal Note - SB 0232 - Civil Actions Involving Architects
L.R. NO. 0835-01
BILL NO. SB 232
SUBJECT: Contractor Liens
TYPE: Original
DATE: January 30, 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
The Department of Economic Development (DED) assumes this proposal will not
have any fiscal impact on the DED.
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
The proposal would have a positive impact on certain design professionals by
allowing them to perfect a lien on the property of someone who contracted for
their services even though the construction has not commenced.
This proposal would have a negative fiscal impact on the same design
professionals with a corresponding positive effect to contractors or
subcontractors. This is because the contractors and subcontractors would be
able to recover damages from the designer if the designer is negligent or
fails to perform contracted services.
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.
A contractor or subcontractor may recover damages from an engineer or
architect due to such engineer's or architect's negligence even if there is
no contract between the contractor and the engineer or 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
Department of Economic Development
Office of State Courts Administrator
This Fiscal Note is not an official copy and should not be quoted or cited.