OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-191

AN ACT CONCERNING CHARITABLE BINGO GAMES, BAZAARS, RAFFLES, THE DEPARTMENT OF CONSUMER PROTECTION AND OCCUPATIONAL LICENSING.

AMENDMENT

LCO No.: 6649

File Copy No.: 197

House Calendar No.: 465

Senate Calendar No.: 131


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Consumer Protection, Dept.

GF - Savings

177,212

177,212

State Comptroller - Fringe Benefits1

GF - Savings

60,424

60,424

Consumer Protection, Dept.

GF - Revenue Loss

Less than 224,146

Less than 186,646

Note: GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 18 $

FY 19 $

All Municipalities

STATE MANDATE - Revenue Gain

Minimal

Minimal

Explanation

The amendment strikes the underlying bill and its associated fiscal impact. The amendment's fiscal impact is described below.

The amendment results in General Fund savings totaling $237,636 in both FY 18 and FY 19 as well as a revenue loss of less than $224,146 in FY 18 and $186,646 in FY 19, through shifting most charitable gaming regulation to municipalities and eliminating various licenses. The amendment's net impact to the General Fund is savings of approximately $13,490 in FY 18, and $50,990 in FY 19.

Charitable Gaming. The amendment results in $80,970 in savings as eliminating charitable gaming duties from the Department of Consumer Protection (DCP) will allow the department to not refill the License and Applications Analyst charitable gaming position anticipated to become vacant as of FY 18. Most of the annual savings ($58,640) is to DCP, with the remainder due to the position's fringe benefits ($22,330) through the Office of the State Comptroller.

The savings to the state is partially offset by the bingo and permit revenue loss to the state, anticipated to be under $40,220 annually.

There is expected to be a minimal revenue gain to municipalities, which will be regulating most charitable gaming. The amendment requires that fees paid to the municipality for bingo permits shall not exceed $75 for Class A permits, $10 per day for Class B permits, and $50 for Class C permits. Parent Teacher Associations must pay a fee not to exceed $75, but will not receive a permit. The amendment also makes the following changes for permits paid to municipalities for raffle games: fees not to exceed $75 for a Class No. 1 permit, $30 for a Class No. 2 permit, $60 per day for a Class No. 3 permit, $15 for a Class No. 4 permit, $100 for a Class No. 5 permit, $150 for a Class No. 6 permit, and $300 for a Class No. 7 permit.

The amendment is not anticipated to result in any additional cost to municipalities. As municipalities, under current law, share the responsibility for charitable gaming regulation with DCP, it is anticipated that they have the expertise to carry out the additional responsibility under the amendment's provisions.

Occupational Licenses. The amendment results in a further revenue loss of $183,926 in FY 18, and $146,426 in FY 19 and annually thereafter, as it eliminates various occupational licenses. Licensure revenues from the new swimming pool assembler license in the absence of the bill were anticipated to be $112,500 in FY 18 and $75,000 annually thereafter. The amendment also eliminates swimming pool maintenance and repair licenses, which generated revenue of $52,206 in FY 16. Licensure revenues from the other occupational licenses eliminated by the amendment totaled $19,220 in FY 16.

The revenue loss from the elimination of the swimming pool assembler's license is offset by savings from the same elimination. In the absence of the amendment, DCP will need two additional personnel to handle licensure and complaints, a DCP Inspector and a DCP Inspection Aide. Salaries and fringe benefits for the positions will cost $100,036 and $38,094 respectively, per year. The amendment eliminates the need for these positions, resulting in corresponding General Fund savings to DCP and the Office of the State Comptroller. The equipment and other expenses that will be required for the personnel are also eliminated, resulting in additional savings to the General Fund of $18,536.

Real Estate Student Intern Programs. The amendment eliminates real estate student intern programs, which does not result in a fiscal impact as there are no state revenues or costs associated with these programs.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

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.