OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-6352

AN ACT CONCERNING BENEFICIAL END USES IN CONNECTICUT FOR DISCARDED TIRES AND REQUIRING THE ESTABLISHMENT OF A TIRE HAULER LICENSE.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

State Comptroller - Fringe Benefits1

GF - Cost

None

91,000

Department of Energy and Environmental Protection

GF - Cost

None

240,000

Department of Energy and Environmental Protection

GF - Revenue Gain

None

At least 750,000

Note: GF=General Fund

Municipal Impact: None

Explanation

This bill requires the Department of Energy and Environmental Protection (DEEP) to establish a tire hauler license by July 1, 2018 (FY 19).

DEEP will need to hire three positions at an average salary of $80,000 annually, plus associated fringe benefit costs, to administer this new program. Total annualized costs are estimated at $331,000 in FY 19.

The bill allows DEEP to charge a reasonable license fee and implementing regulations for this new licensure program. This is anticipated to result in a significant revenue gain, estimated at over $750,000 annually, as over 1,000 haulers are projected to apply for a license.

The bill also requires DEEP, by February 1, 2018, to provide the Environment Committee with a report on discarded tires. This has no fiscal impact.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the number of haulers who obtain a license.

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 38.08% of payroll in FY 18 and FY 19.