OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-23

AN ACT CONCERNING BENEFIT CORPORATIONS AND ENCOURAGING SOCIAL ENTERPRISE.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Secretary of the State

GF - Cost

62,000

None

Municipal Impact: None

Explanation

The bill establishes benefit corporations as a type of for-profit corporation. There is a cost to the Secretary of the State (SOTS), estimated to be $62,000, associated with programming a new business entity into the CONCORD commercial records database.

The bill is expected to have a neutral impact on fee revenue at the SOTS. The SOTS collects fees from business entities for establishment, filing of annual reports, and dissolution. SOTS is not anticipated to realize a change in revenue from such fees as it is anticipated that most new benefit corporations will be reclassifications of existing businesses. The passage of similar legislation in several surrounding states has significantly decreased the likelihood that existing businesses will move corporate registration to Connecticut in order to become benefit corporations.

sHB 5030, the FY 15 revised budget, as favorably reported by the Appropriations Committee, includes a carry forward of $60,000 in Other Expense funds from FY 14 to FY 15 for programming expenses associated with this bill.