OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-5459

AN ACT CONCERNING MOTOR VEHICLE REGISTRATION.

As Amended by House "A" (LCO 4608)

House Calendar No.: 159


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Department of Motor Vehicles

GF - Cost

None

64,894

State Comptroller - Fringe Benefits1

GF - Cost

None

16,458

Department of Motor Vehicles

GF - Potential Revenue Gain

None

7,500

Judicial Dept.

GF - Potential Revenue Gain

None

See Below

Judicial Dept. (Probation)

GF - Cost

None

See Below

Municipal Impact: None

Explanation

The bill requires the Department of Motor Vehicles (DMV) to create a vessel title system in FY 16, and issue a certificate of title for certain vessels that are principally used on Connecticut waters. It is anticipated that DMV will need one position to handle the provisions of the bill. PA 13-184, the FY 14 and FY 15 Budget Act, provided $30,200 in FY 15 ($22,447 in DMV's Personal Services account in the General Fund and $7,753 for fringe benefits) for a full time position starting January 1, 2015 for this purpose. It is anticipated this position will be annualized in FY 16. It is also estimated that DMV would need approximately $20,000 in FY 16 for expenses associated with creating a vessel title system for IT upgrades and administrative functions.

The bill sets various title fees for vessels with a model year of 2016 or greater, and is anticipated to result in an annual General Fund revenue gain of up to $7,500 starting in FY 16. In FY 13, there were 13,300 new vessel registrations. It is estimated that approximately 200 vessels per year will have a model year of 2016 or greater. Currently the revenue and costs from the Boating Fund are consolidated within the General Fund and administered by DMV.

The bill also includes a penalty for specified forms of fraudulent intent and could result in a potential revenue gain. The full impact is indeterminate as this is a new offense.

To the extent that offenders are prosecuted for new or expanded offenses under this bill, potential costs for incarceration or probation supervision in the community, or judicial revenue would result. On average, it costs the agency $6,050 (including benefits) to supervise an inmate in the community as opposed to $50,690 (including benefits) to incarcerate an offender.

House “A” struck the language of the underlying bill and became the fiscal impact described above.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

Sources:

Department of Motor Vehicles

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 36.66% of payroll in FY 15 and FY 16.