OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-6590

AN ACT CONCERNING LICENSING OF TATTOO TECHNICIANS.

AMENDMENT

LCO No.: 6767

File Copy No.: 577

House Calendar No.: 363


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 14 $

FY 15 $

Judicial Dept.

GF - Potential Revenue Gain

less than 1,250

less than 1,250

Public Health, Dept.

GF - Potential Cost

44,000

95,000

Public Health, Dept.

GF - Potential Revenue Gain

20,000 - 26,000

20,000 - 26,000

State Comptroller - Fringe Benefits1

GF - Potential Cost

14,000

31,000

Municipal Impact:

Municipalities

Effect

FY 14 $

FY 15 $

Various Municipalities

Potential Revenue Gain

Minimal

Minimal

Explanation

The amendment strikes the underlying bill and its associated fiscal impact. It replaces it with language that could create a new tattoo technician licensure category that is estimated to result in a net state cost of approximately $31,000 to $37,000 in FY 14 and $99,000 to $105,000 in FY 15. Section 5 of the amendment specifies that the Department of Public Health (DPH) implement this licensure category within available appropriations. However, if DPH were to do so, costs to DPH of $44,000 in FY 14 and $95,000 in FY 15 and costs to the State Comptroller – Fringe Benefits of $14,000 in FY 14 and $31,000 in FY 15 are anticipated. These costs are partially offset by an estimated potential DPH General Fund (GF) revenue gain of between $20,000 and $26,000 in both FY 14 and FY 15, a potential Judicial Department GF revenue gain of less than $1,250 in both FY 14 and FY 15, and a potential municipal revenue gain to the extent that tattoo establishments are inspected by local directors of health and charged a fee of up to $100 per inspection.

Per the 2007 U.S. Census, there are 34 tattoo parlor establishments in Connecticut categorized under NAICS code 812199 – Other Personal Care Services: Tattoo Services. Based on the employment data under NAICS code 812199, it is estimated that there are approximately 204 tattoo technicians at tattoo parlor establishments in Connecticut. Costs to DPH to license these individuals are reflected partially in FY 14 as the bill is effective 10/1/13 and the requirement to hold a tattoo technician license if engaging in the practice of tattooing is not effective until 7/1/14. As such, a part-time Special Investigator and a part-time Health Program Assistant I are reflected in the cost estimate with a 10/1/13 start date. These positions result in a cost of $40,000 to DPH (plus associated expenses) and a cost of $14,000 to the State Comptroller – Fringe Benefits in FY 14 and a cost of $53,000 to DPH (plus associated expenses) and a cost of $31,000 to State Comptroller – Fringe Benefits in FY 15. Costs for a part-time DPH Staff Attorney I to act as a complaint hearing officer and prosecutor (at a cost of $38,000 plus associated expenses to DPH and a cost of $13,000 to the State Comptroller – Fringe Benefits) are not anticipated to be incurred until FY 15 when the licensure requirement becomes active.

Should DPH choose to implement the new licensure category, there is also a potential GF revenue gain of approximately $20,000 to $26,000 under the amendment associated with the fee for initial tattoo technician licensure of $250, the biannual fee for license renewal of $200 and the fee for a temporary permit of $100. (There is no fee for student tattoo technicians to register with DPH for a period not to exceed two years.) The amendment makes it an offense to violate provisions of the licensing requirement. The number of potential offenders for this new offense is unknown but anticipated to be less than five, resulting in a potential revenue gain of less than $1,250 to the Judicial Department for fines associated with this provision. Section 6 of the amendment results in a potential municipal revenue gain to the extent that local directors of health inspect tattoo establishments and those directors charge a fee of $100 or less per inspection. It is anticipated that these inspections will occur to the extent that resources are currently available.

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 active employee fringe benefit cost associated with most personnel changes is 34.54% of payroll in FY 14 and FY 15.