Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200




LCO No.: 9746

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below


The amendment makes various changes; sections with a fiscal impact are described below. The remaining changes make technical and clarifying adjustments or eliminate duplicative sections.

The amendment modifies Sections 43 and 44 of the bill and removes some coverage areas of for mental and nervous conditions that health insurance plan must cover. This will reduce costs to the state employee and retiree health plan, municipalities, and the state pursuant to the Affordable Care Act.

The amendment modifies Section 94 of the bill, which reallocates funds from the Judicial Department Youth Services Prevention account, eliminating the $40,000 grant to the Compass Youth Collaborative Peacebuilders Program and allocates $20,000 each to the OPMAD, INC, Samuel V. Arroyo Center, and the Wakeman Boys and Girls Club, Southport.

The amendment modifies Sections 99-101 of the bill to include technical changes to clarify that only contracts or services rendered at the Legislative Office Building, the State Capitol, or the Old State House would be impacted. This will not result in a fiscal impact.

The amendment modifies Section 135 of the bill and precludes a revenue gain by exempting the first million dollars of gross receipts from the 6% ambulatory surgical center tax established under PA 15-244. The actual revenue loss is dependent upon the number of facilities which would be required to pay the 6% tax.

The amendment modifies Section 330 of the bill, which conform statute to current practice and makes procedural changes that are not anticipated to result in a fiscal impact.

The amendment modifies Section 338 of the bill, which allows Norwalk to carryforward $250,000 in priority school district funding that otherwise would have lapsed.

The amendment modifies Section 404 of the underlying bill by requiring rather than allowing: 1) the two-generational pilot program to be located in the identified towns and cities, and 2) the program include various components. These changes have no fiscal impact.

The amendment also modifies Section 412 of the underlying bill.  The basis of distribution of supplemental funding for federally qualified health centers is changed from “quality and acuity” to “cost, volume and quality”.  This is not anticipated to result in a fiscal impact to the state as it concerns this distribution methodology of funds rather than the overall amount of funds distributed.

Section 433 is amended to include Director of Communications 1 to the list positions excluded from union eligibility. This may result in a minimal savings due to wage cuts to non-unionized employees that are not being levied on unionized employees.

The amendment changes Section 457, making the estate fee changes effective for deaths that occur after January 1, 2015, as opposed to estates that conclude after September 1, 2015. To the extent that estates that are granted an extension past the 6 month estate tax returning filing deadline, the amendment precludes revenue gain in FY 16.

The amendment modifies Section 496 to require that a payment of $1.5 million be made from the Office of Policy and Management's non-appropriated Regional Performance Incentive Account in FY 17 to the City of Middletown rather than from OPM's appropriations.

The amendment strikes Section 489 of the underlying bill. This eliminates the provision in 489(b) which funded section 490.

The amendment strikes Sections 508-521, which precludes a revenue gain of less than $10,000 to the Palliative Marijuana Account beginning in FY 16.

Section 601 requires the Department of Public Health (DPH) to provide $250,000 from the department's Other Expenses account to the Connecticut Umbilical Cord Blood Collection Board to deposit in the Umbilical Cord Blood Collection account in FY 16. This will require DPH to reduce budgeted Other Expenses by this amount.

Section 602 of the bill allows taxpayers in Milford who missed the deadline to file for a certain property tax exemption to receive that exemption. As the exemption relates to a past fiscal year, the amendment results in either a revenue loss to the town, or a cost to reimburse the taxpayers for taxes paid on the exempt property.

Section 603 of the amendment renames the food service kiosk in the Legislative Office Building the “First in Flight Café”. The Office of Legislative Management would expend approximately $1,000 to provide signage for the kiosk.

Section 604 limits the exemption from certain housing replacement provisions to one additional housing project, which has no fiscal impact.

Sections 605-607 are not anticipated to result in a fiscal impact to the state as Connecticut's health insurance exchange, Access HealthCT, is a quasi-public state agency which does not currently receive state funding. There may be a fiscal impact to Access HealthCT, which is dependent on the financial relationship between the subsidiary and the exchange and the nature of the subsidiary's business. There is no fiscal impact to municipalities.

Section 608 requires the commissioner of DPH to execute an agreement with the New York State DPH to conduct a screening test for newborns for adrenoleukodystrophy (ALD) as well as the development of a quality testing methodology for such test. There are approximately 40,000 newborns annually in Connecticut who would require testing. The cost would be dependent on the terms of the agreement between DPH and the New York State DPH.

Section 609 requires DPH to provide $100,000 from the department's Other Expenses account in FY 16 for conducting a screening test of newborns for adrenoleukodystrophy as described above in section 608. This will require DPH to reduce budgeted Other Expenses by this amount.

Section 610 requires law enforcement agencies that hire a police officer within two years of obtaining certification at a different law enforcement agency to reimburse the certifying agency half of the cost of such certification.

The cost of police officer certification, as defined in the section, is estimated to range between $70,000 and $120,000 depending on the salary, fringe benefit rate, and training method of the officer. Under the provisions of the section, law enforcement agencies that hire an officer from another such agency within two years of certification would incur a cost equal to half of the actual cost of the officer's certification. Law enforcement agencies that lose an officer to such a transfer would realize a corresponding revenue gain equal to half of the actual cost of certification.”

Section 611 carries forward funding of $100,000 in FY 15 from the Veteran's Service Bonuses account within the Military Department to be transferred to the Honor Guard account.  In both FY 16 and FY 17, $50,000 will be used for the purpose of the honor guard at veteran's funerals.

Section 612 amends the language in an existing General Obligation (GO) bond authorization that was changed in Section 230 of SB 1501, “An Act Authorizing and Adjusting Bonds of the State for Capital Improvements, Transportation and Other Purposes.” The amended language makes: (a) $13 million available to Community Health Center, Incorporated and (b) $2 million available to either Community Health Center Association of Connecticut or Community Health Center, based on competitive bids submitted by each organization. There is no fiscal impact because this section does not authorize additional GO bonds.

Section 613 requires that districts both currently and formerly designated as alliance districts cannot reduce its budgeted appropriation for education purposes. This results in a potential cost to various districts that otherwise would have been able to reduce their budgeted appropriation.

Section 614 results in an annual revenue loss of $600,000 starting in FY 18 by permanently exempting sales of tangible personal property and services to and by sole community hospitals from the sales and use tax. Current law sunsets this exemption through FY 17.  Sharon Hospital is currently the only hospital which is categorized as a “sole community hospital.”

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.