OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-1081

AN ACT CONCERNING RECYCLING AND JOBS.

As Amended by Senate "A" (LCO 5746), Senate "B" (LCO 7742), Senate "C" (LCO 7911)

Senate Calendar No.: 305


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 14 $

FY 15 $

Connecticut Resources Recovery Authority (CRRA) quasi-public

See Below - Cost

See Below

See Below

Legislative Mgmt.; Various State Agencies

GF - Potential Cost

Less than 1,000

None

Municipal Impact:

Municipalities

Effect

FY 14 $

FY 15 $

Various Municipalities

Grand List Reduction

Potential

Potential

Explanation

The bill makes changes to the state's solid waste management laws pertaining to recycling.

The bill also allows municipalities to exempt from property taxes the value of certain recycling machinery or equipment installed on or after October 1, 2013. To the extent municipalities choose to do this, there would be a reduction to their grand list. This would result in a loss of tax levy, given a constant mill rate.

The bill may also result in a cost of less than $1,000 to agencies participating in the task force to reimburse legislators and agency staff for mileage expenses.

Additionally, the bill requires the Department of Energy and Environmental Protection (DEEP) to initiate an audit of the Connecticut Resources Recovery Authority (CRRA), and requires CRRA to pay the cost of the audit up to $500,000 beginning no later than June 30, 2013. This is not anticipated to result in a fiscal impact to municipalities in FY 14 or FY 15, as these municipalities have contracted with CRRA, but it would result in a cost to CRRA of up to $500,000 in FY 13 for the audit.

Senate “A” strikes sections 3 and 6 that contained provisions regarding the mixture of recyclables with other solid wastes whether it is done so knowingly or not. This removes the potential revenue gain from fines in the underlying fiscal note. Senate “A” alters the underlying bill by making other changes that do not result in a fiscal impact.

Senate “B” adds provisions to the required audit of CRRA that results in a cost of up to $500,000 in FY 13. Senate “B” also adds the requirement of a task force that results in a potential cost of up to $1,000 in FY 14 only, for mileage expenses.

Lastly, Senate “C” alters the underlying bill by exempting extensions of certain DEEP approved contracts in force as of December 31, 2008 from the law's 30-year contract term limit. This is not anticipated to result in a fiscal impact to the state or municipalities in FY 14 or FY 15, as it is expected that tip fees would already be set by the terms of the contract under any extension.

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.