OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-806

AN ACT ESTABLISHING THE CRUMBLING FOUNDATION ASSISTANCE PROGRAM AND ASSISTING HOMEOWNERS WITH CRUMBLING FOUNDATIONS.

AMENDMENT

LCO No.: 6832

File Copy No.: 301

Senate Calendar No.: 174


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Insurance Dept.

GF – Restricted Account

11,800,000

11,800,000

Note: Various=Various

Municipal Impact: See below

Explanation

This amendment strikes sections 1, 11, and 12 of the underlying bill and the associated fiscal impact of those sections. The amendment results in the fiscal impact outlined below.

Section 1 of this amendment will result in an annual revenue gain of $11.8 million from the $12 surcharge on each homeowner's insurance policy, renter's insurance policy, condominium unit owner's insurance policy or a master policy that is required to be purchased by a condominium association. This funding will be deposited into the Crumbling Foundations Assistance Fund created by the bill.

Section 501 allow municipalities to waive building permit fees to repair crumbling foundations. This could result in a revenue loss of up to $100,000 annually to each municipality, depending on the number of homes that are repaired under the program. The revenue loss to the state is expected to be minimal.

Section 502 makes clarifying and conforming changes which have no fiscal impact.

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.