OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-422

AN ACT CONCERNING RESIDENTIAL WATER RATES, PUBLIC DRINKING WATER SUPPLY EMERGENCIES AND SELLERS OF BOTTLED WATER.

OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 17 $

FY 18 $

Various Municipalities; Municipal Water Companies

Revenue Gain/ Loss

Potential

Potential

Explanation

The bill prohibits municipalities and municipal water companies from charging bottled water companies less than any other consumers for certain services.

To the extent that municipalities and municipal water companies agree to a new rate, there is a revenue gain. The bill also precludes any revenue a municipality or municipal water company might receive from a bottled water company solely because services are being provided at a reduced rate.

The bill requires, during a public drinking water supply emergency, the Department of Public Health (DPH) to order that the sale of water to residential consumers for “essential residential use” be prioritized over the sale of water to commercial water bottling companies exporting water out of the state. As an implementation deadline is not provided, it is anticipated that the agency will update water safety planning regulations, and review updated coordinated water system plans, within available staff time without incurring a fiscal impact. It should be noted that enforcement of the order is not required under the bill.

There is no fiscal impact to the Department of Consumer Protection as a result of the bill as few actionable complaints are anticipated.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to prices charged to bottled water companies.