OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www.cga.ct.gov/ofa

HB-5599

AN ACT CONCERNING THE TAXATION OF TELECOMMUNICATIONS COMPANY PROPERTY AND THE TIMELY FILING OF DECLARATIONS.

AMENDMENT

LCO No.: 6330

File Copy No.: 746

House Calendar No.: 91

Senate Calendar No.: 488

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 09 $

FY 10 $

Connecticut Lottery Corporation

GF - Revenue Loss

1, 580, 000

1, 000, 000

Spec. Revenue, Div. of

GF - Revenue Gain

580, 000

None

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment will result in a General Fund revenue loss of $1.58 million in FY 09, $1 million in FY 10, 11, 12, and 13, and $220, 000 in FY 13. The amendment also provides a sunset date of 8/1/08 so there will be no fiscal impact going forward.

The amendment allows the awarding of at least one $5.8 million lottery prize by the Connecticut Lottery Corporation (CLC) . The amendment requires the CLC to award such prizes out of unclaimed prize funds as follows: 1) ten percent to the Division of Special Revenue to be deposited into the chronic gamblers treatment and rehabilitation account and 2) ninety percent to the claimant. The claimant would be limited to prize payouts of $1 million per year until the entire prize is paid out. This will result in a General Fund revenue loss because the CLC may use unclaimed prize money in one of three ways: (1) Direct payment to the General Fund, (2) Addition to a subsequent lottery prize pool, or (3) Promotion of an increase in lottery sales.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose.