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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
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F I S C A L I M P A C T R E P O R T
SPONSOR Cisneros
ORIGINAL DATE
LAST UPDATED
2/23/2007
HB
SHORT TITLE Prohibit Certain Contract Agreements
SB 641
ANALYST Schuss
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Regulation and Licensing Department (RLD)
Administrative Office of the Courts (AOC)
Attorney General’s Office (AGO)
SUMMARY
Synopsis of Bill
Senate Bill 641 would provide that “Payment by the owner to a contractor shall not be a
condition precedent for payment to a subcontractor, and payment by a contractor to a
subcontractor shall not be a condition precedent for payment to any other subcontractor. An
agreement to the contrary is void, unenforceable and against the public policy of the state."
FISCAL IMPLICATIONS
AOC notes that there will be a minimal administrative cost for statewide update, distribution and
documentation of statutory changes. Any additional fiscal impact on the judiciary would be
proportional to challenges to the law’s prohibition. New laws, amendments to existing laws and
new hearings have the potential to increase caseloads in the courts, thus requiring additional
resources to handle the increase.