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.

As Amended by Senate "A" (LCO 8020)

House Calendar No. : 628

Senate Calendar No. : 72

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

Labor Dept.

GF - Implements the Budget

84,860

86,557

Labor Dept.

GF - Revenue Gain

Potential Minimal

Potential Minimal

State Comptroller - Fringe Benefits1

GF - Implements the Budget

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, and may result in an increase in the number of probable cause hearings conducted by DOL, requiring a half-time Staff Attorney II. HB 6652, a budget appropriation and implementation bill as passed by the House, provides $105,252 in FY 12 and $108,379 in FY 13 to DOL and the Comptroller for Fringe Benefits, to implement provisions of this bill.

The bill establishes a $300 civil penalty for each violation, which results in a potential minimal revenue gain.

Senate “A” strikes the underlying bill and its associated fiscal impact. The amendment becomes the bill and its fiscal impact is discussed above.

The Out Years

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

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. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated non-pension fringe benefit cost associated with personnel changes is 23. 76% of payroll in FY 12 and FY 13. In addition, there could be an impact to potential liability for the applicable state pension funds.