OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-5419

AN ACT CONCERNING NONRECOURSE CIVIL LITIGATION PURCHASE AGREEMENTS.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 13 $

FY 14 $

Consumer Protection, Dept.

GF - Cost

30,900

30,500

Comptroller Misc. Accounts (Fringe Benefits)1

GF - Cost

8,800

8,800

Consumer Protection, Dept.

GF - Revenue Gain

50,000

50,000

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill results in a cost to the state of approximately $39,700 in FY 13 and $39,300 in FY 14. Additionally an estimated revenue gain of $50,000 would occur due to violations of the bill's requirements which fall under the Connecticut Unfair Trade Practices Act (CUTPA).

The costs include a part-time Consumer Protection Investigator ($30,000), fringe benefits ($8,800), other expenses ($500) and one-time costs in FY 13 to update the CAVU licensing system ($400). The investigator is necessary to service potential complaints concerning the approximately ten companies in the state that service thousands of customers.

It is estimated that as many as ten of the complaints will result in a CUTPA violation which would result in a revenue gain of approxiamtely $50,000.

The Out Years

The annualized ongoing cost identified above would continue into the future subject to inflation and the revenue gain subject to the number of violations.

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 most personnel changes is 29. 22% of payroll in FY 13 and FY 14.