OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-453

AN ACT CONCERNING THE STATE'S REGULATORY ENVIRONMENT.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 11 $

FY 12 $

Department of Environmental Protection

GF - Potential Cost

At least 2,120,000

At least 1,941,600

Department of Economic & Community Development

GF - Potential Cost

75,000

37,500

Department of Transportation

TF - Potential Cost

250,000-500,000

35,000-50,000

Department of Public Health

GF - Potential Cost

1,119,049

784,801

Note: GF=General Fund; TF=Transportation Fund

Municipal Impact: None

Explanation

The bill may result in costs to: 1) the Department of Environmental Protection (DEP) of at least $2. 1 million in FY 11 and at least $1. 9 million in FY 12; 2) the Department of Economic and Community Development (DECD) of $75,000 in FY 11 and $37,500 in FY 12; and 3) the Department of Transportation (DOT) of between $250,000 and $500,000 in FY 11 and $35,000-50,000 in FY 12 for development of the online licensing and permitting system required in the bill.

The system is not only required to receive online licenses and permits of varying types, but is required to track the progress of the license or permit through the agencies' review and approval process.

DEP costs include at least $1. 0 million for contracted system development costs, one-time hardware and software costs, annual software license fees and webhosting costs. The bill also results in Personal Services costs for various positions to develop, maintain, and update the online licensing and permitting system1. Personal Services costs are also required for the updating of 56 sets of regulations pertaining to general permits as required under Sections 5 and 9-16.

Under the bill, if DEP fails to meet various timeframes, a permit application may be deemed approved by default. Any such default issuance of a permit authorized by a federal program could jeopardize the annual $9. 7 million grant received by DEP.

The bill also results in a one-time cost in FY 11 for DOT to hire a consultant to program the system, including development of forms for on-line filing and tracking and development and implementation of the electronic database for processing applications. The bill also results in ongoing costs to DOT of $35,000 to $50,000 in FY 12 for software licensing and maintenance.

The bill may result in costs to the Department of Public Health (DPH) of $1. 1 million in FY 11 and $784,801 in FY 12 for development and ongoing operation of the online licensing and permitting system. Costs include Personal Services, Other Expenses, and Equipment.

The requirement that DEP, DECD, DPH and DOT implement the system within available appropriations will likely result in one of four outcomes: (1) the agencies will proceed with the system and require deficiency appropriations in FY 11; (2) the agencies will delay the implementation of the system pending the approval of additional appropriations; (3) the agencies will shift resources from other agency priorities to develop the licensing and permitting system, thereby impacting existing departmental programs; or (4) the agencies will not implement this system.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

1 It is anticipated that the pilot expedited permitting process in Section 3 would cover approximately 250 manufacturing or industrial facilities.