OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-5262

AN ACT CONCERNING WORKERS' COMPENSATION COVERAGE FOR CURRENT AND FORMER UNIFORMED MEMBERS OF PAID OR VOLUNTEER FIRE DEPARTMENTS.

As Amended by House "A" (LCO 4495)

House Calendar No.: 68

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Resources of the General Fund, Firefighters Cancer Relief Account

GF - Revenue Gain

Approximately $250,000

Approximately $600,000

Resources of the Enhanced 911 Telecommunications Fund

EF - Revenue Loss

Approximately $250,000

Approximately $600,000

Treasurer

GF - Cost

See Below

See Below

State Employee Fringe Benefits, State Employee and Retiree Health Accounts

GF - Potential Cost

See Below

See Below

Department of Emergency Services and Public Protection

EF - Potential Revenue Loss

See Below

See Below

Note: GF=General Fund; EF= Enhanced 911 Telecommunications Fund

Municipal Impact:

Municipalities

Effect

FY 17 $

FY 18 $

Various Municipalities

STATE MANDATE - Potential Cost

See Below

See Below

Explanation

The bill establishes a new, non-lapsing General Fund account for the purposes of providing wage replacement benefits to fire personnel affected by certain cancer conditions.

Revenue Impact

Approximately five million access lines are subject to assessment by the Enhanced 911 Telecommunications Fund (E911 Fund). Utilizing one cent per month per line from the E911 Fund for the Firefighters Cancer Relief Account results in a General Fund revenue gain of approximately $250,000 in FY 17 and $600,000 in FY 18 and annually thereafter. The E911 Fund will realize corresponding revenue losses starting in FY 17.

The Department of Emergency Services and Public Protection may also realize a loss of certain federal funds as a result of using the E911 Fund for non-emergency telecommunications purposes. Most recently, the E911 Fund received approximately $750,000 in federal funds after certifying the use of E911 Fund monies.

Administrative Costs

The bill requires the Office of the State Treasurer to administer the activity of the Firefighters Cancer Relief Account; including funds receipt, investment, and disbursal. Given that the Treasurer is not currently administering funds in a similar manner, significant additional costs are anticipated, beginning in FY 20, to manage the funds disbursal process. The Treasurer is anticipated to require up to four additional employees at an annual cost of approximately $300,000, including fringe benefits, to manage the activities of the account in accordance with the provisions of the bill.

Lastly, the provisions of the bill may result in a cost to the state and municipalities starting in FY 20 to provide health insurance coverage for individuals receiving wage replacement from the Firefighter's Cancer Relief Account who are (1) not actively employed by the state or municipalities and (2) not otherwise eligible for workers' compensation or disability coverage; it is unclear if this provision applies to retirees who are eligible for wage replacement from the account. The cost will depend on the number of eligible individuals and the employer's cost of coverage. The bill does not appear to preclude the employer from requiring the eligible individual from contributing an equivalent employee share towards health coverage.

House “A” strikes the underlying bill and results in the fiscal impact identified above.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and the number of access lines in the state.