Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200




LCO No.: 8595

House Calendar No.: 678

OFA Fiscal Note

State Impact: See Below

Municipal Impact: None


Section 501 transfers the staff of the fraud prevention unit in the Department of Social Services (DSS) to Office of Chief State's Attorney. It is assumed that funding associated with such positions is also transferred.

Section 502 provides funding of $440,000 in FY 14 and $720,000 in FY 15 for eight additional staff in the Medicaid Fraud Control Unit of the Division of Criminal Justice. Of these funds, it is anticipated that $330,000 in FY 14 and $540,000 in FY 15 will be reimbursed by the federal government and that approximately $600,000 may be recovered by each additional investigator through fraud recovery beginning in FY 15.

Section 503 establishes an Anti-Fraud Technology Fund, administered by the Office of Policy and Management, to acquire and implement fraud detection technology systems in DSS and Department of Revenue Services (DRS).

There may be a cost of less than $1,000 to agencies participating in the Anti-Fraud Council to reimburse legislators and agency staff for mileage expenses.

Section 504 authorizes $75 million in General Obligation (GO) bonds for the Anti-Fraud Technology Fund, while section 505 reduces the authorization for Manufacturing Assistance Act GO bonds by $75 million, resulting in a zero net impact.

Section 506 reduces the General Fund appropriation by $80 million via an Anti-Fraud Initiatives Lapse.

Section 507 could result in a revenue gain associated with prohibiting the claiming of the earned income tax credit for certain individuals and fines for fraudulent activities. This section may also result in a minimal cost to the DRS due to establishing monthly reporting requirements. Administrative costs in DRS could be off-set by support from the Anti-Fraud Technology Fund.

Section 508 establishes reporting requirements in DSS related to cases of vendor or recipient fraud, which has a minimal fiscal impact.

Section 509-511 require various noticing requirements and are not anticipated to result in a fiscal impact.

Sections 512-518 require forensic audits of various program providers and recipients within the Departments of Social Services, Children and Families, Developmental Services, Mental Health and Addiction Services, Rehabilitation Services, Aging, and Labor. This is anticipated to result in a cost to such agencies associated with staff or contracting, which may be off-set by recoveries from such audits. Administrative costs in DSS could also be off-set by support from the Anti-Fraud Technology Fund.

Section 519 requires anyone seeking to receive unemployment compensation benefits for more than 30 days to physically appear at a Labor Department office to verify 1) the person's need for continued receipt of unemployment compensation and 2) that the person is actively seeking work. This has no fiscal impact. While it may result in an increased number of visitors to Labor Department offices, it is anticipated that the Labor Department has the staff resources to handle any influx.

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.