OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-803

AN ACT CONCERNING AQUACULTURE JOB GROWTH.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 14 $

FY 15 $

Department of Agriculture

GF - Potential Revenue Gain

Less than 55,000

Less than 55,000

Municipal Impact: None

Explanation

The bill is anticipated to result in a revenue gain of approximately $55,000 in both FY 14 and FY 15 associated with the lease of shellfish areas as described below:

Section 1(f) is anticipated to result in a revenue gain of up to $50,000 in FY 14 and FY 15 to the Department of Agriculture (DAG) as a result of leasing shellfish areas to various businesses with less than 500 acres of leased town of state shellfish grounds. It is estimated that five business entities would bid up to $50 per acre for 200 acres of shellfish grounds.

Section 1(g) permits DAG to lease not more than 25 acres of shellfish grounds to applicants. It is anticipated that this would generate approximately $1,250 in FY 14 as five applicants would each lease approximately 10 acres at $25 per acre. In FY 15, it is anticipated that the number of applicants would increase to 10. These 10 applicants would also lease 10 acres each at $25 per acre, generating $2,500 to the state.

Lastly the bill changes the amount distributed to the “expand and grow” account. Currently, the commissioner must deposit 25% of the proceeds derived from certain utility host payment fees into the General Fund, and the remaining 75% of this revenue to be deposited in the “expand and grow Connecticut agriculture” account which funds a portion of the Connecticut-grown program.

Section 1(c) modifies the formula regarding current deposits into the “expand and grow” account. The bill allows DAG to disburse this portion of funds between the Shellfish fund and the “expand and grow” account. It is uncertain how these funds would be distributed in FY 14 and FY 15.

As of February 2, 2013, the available cash in the “expand and grow account” was $433,907, and for the fiscal year ended June 30, 2012, the balance in this account was $369,733.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the number of acres leased.