OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-361

AN ACT PREVENTING THE USE OF CREDIT SCORES BY CERTAIN EMPLOYERS IN HIRING DECISIONS.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

Labor Dept.

GF - Cost

84,860

86,557

Labor Dept.

GF - Revenue Gain

Potential Minimal

Potential Minimal

State Comptroller - Fringe Benefits1

GF - Cost

20,162

20,565

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill allows complaints to be filed with the Department of Labor (DOL) if an employer uses credit scores in certain hiring decisions. This is anticipated to increase the number of complaints received by the department and may require a half-time Special Investigator (salary of $35,554). This is also anticipated to result in an increase in the number of probable cause hearings conducted by DOL, requiring a half-time Staff Attorney II (salary of $49,306).

The bill establishes a $300 civil penalty for each violation, which results in a potential minimal revenue gain. These funds are to be deposited into a separate non-lapsing account in the general fund and may be used to enforce the provisions of this bill.

The Out Years

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

1 The fringe benefit costs for state employees are budgeted centrally in the Miscellaneous Accounts administered by the Comptroller on an actual cost basis. The following is provided for estimated costs associated with changes in personnel. The estimated non-pension fringe benefit rate as a percentage of payroll is 23. 76%. Fringe benefit costs for new positions do not initially include pension costs as the state's pension contribution is based upon the 6/30/10 actuarial valuation for the State Employees Retirement System (SERS) which certifies the contribution for FY 12 and FY 13. Therefore, new positions will not impact the state's pension contribution until FY 14 after the next scheduled certification on 6/30/2012.