85th Texas Legislature, Regular Session, Senate Bill 1215 Page: 6 of 9
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LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION
May 17, 2017
TO: Honorable Rend Oliveira, Chair, House Committee on Business & Industry
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1215 by Hughes (Relating to responsibility for the consequences of defects in the
plans, specifications, or related documents for the construction or repair of an
improvement to real property.), Committee Report 2nd House, As Amended
No fiscal implication to the State is anticipated.
The bill would amend the Business and Commerce Code exempting a contractor from liability for
certain defects in plans, specifications, or other design or bid documents provided to the
contractor by the person or person's proxy with whom the contractor has entered into the contract.
The bill would only apply to a contract for construction or repair to real property. A contractor
must disclose a condition discovered during construction that was not known or could not have
reasonably been known at the time of design.
The bill would take effect September 1, 2017.
Local Government Impact
According to the Texas Municipal League, the fiscal impact cannot be determined because it will
depend on the particular circumstances with each building project but could be significant in
some cases.
Source Agencies:
LBB Staff: UP, CL, GG, BM, AG, JGA, DREPage 1 of 1
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Texas. Legislature. Senate. 85th Texas Legislature, Regular Session, Senate Bill 1215, legislative document, June 15, 2017; [Austin, Texas]. (https://texashistory.unt.edu/ark:/67531/metapth1050246/m1/6/?rotate=90: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.