OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-5300

AN ACT CONCERNING CHILDREN'S FOOD AND GENETIC ENGINEERING.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Comptroller Misc. Accounts (Fringe Benefits)1

GF - Cost

None

31,952

Consumer Protection, Dept.

GF - Cost

None

90,000

Resources of the General Fund

GF - Potential Revenue Gain

None

Potential

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill results in a cost to the state of $121,952 in FY 18 due to requiring certain products to be labeled “Produced with Genetic Engineering” and adopting mandatory labeling laws for genetically engineered food. The Department of Consumer Protection (DCP) will incur costs of $90,000 for a Consumer Protection Food Inspector and a part-time paralegal to respond to complaints and issues related to genetically engineered products. This includes salaries ($80,000) and other expenses ($10,000) including computers, software, travel and fringe benefits ($31,952). The additional staff will need to examine the chain of production of suspect products in order to determine if such products meet the requirements of the bill. Additionally the bill results in a potential minimal revenue gain in FY 18 if a civil penalty is successfully applied. Given the time that would be required for an investigation it is unlikely a civil penalty would be assessed in FY 18. The bill sets a civil penalty of $5,000 for each violation of the labelling requirement.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and the number of civil penalties.

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 39.94% of payroll in FY 17 and FY 18.