OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-7019

AN ACT CONCERNING THE DEPARTMENT OF BANKING'S ENFORCEMENT AUTHORITY, THE ISSUANCE OF CERTAIN REPORTS, REQUIRING THE RETURN OF CERTAIN PORTIONS OF SECURITY DEPOSITS AND MAKING MINOR REVISIONS TO THE BANKING STATUTES.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Banking Dept.

GF - Potential Revenue Gain

See Below

See Below

Various State Agencies

GF - Potential Cost

Less than $1,000

 

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill authorized the banking commission to impose a fine up to $100,000 per violation on any person who engages in dishonest or unethical practices. To the extent that this change results in additional fines, the bill may result in a revenue gain to the General Fund.

The bill establishes a taskforce to study methods to prevent the issuance of mortgages to persons with excessive blight fines or who are in violation of nuisance abatement laws. There may be a cost of less than $1,000 in FY 18 to those agencies participating in the task force to reimburse legislators and agency staff for mileage expenses, currently at 53.5 cents/mile.

The bill makes clarifying change and requires the Department of Banking to submit two reports to the General Assembly which have no fiscal impact as the Department has the expertise to provide the reports. Additionally, the bill requires landlords to return a portion of security deposits if requested by certain tenants over sixty-two years of age, which do not result in a fiscal impact to the state or municipalities.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the fines imposed.