OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-5505

AN ACT PROMOTING THE EXPEDITIOUS RESOLUTION OF COMMERCIAL CASES IN THE STATE.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 19 $

FY 20 $

Judicial Dept.

GF - Potential Cost

41,587

41,587

State Comptroller - Fringe Benefits1

GF - Potential Cost

15,109

15,109

IOLTA Program

SF - Potential Revenue Gain

Up to 9,000/case

Up to 9,000/case

Note: GF=General Fund; SF=Special Fund (Non-appropriated)

Municipal Impact: None

Explanation

The bill requires the Judicial Department to establish a special court session and results in a potential cost. It is anticipated Judicial will need one clerk at a cost of $41,587 plus fringe benefits to staff the center and the appointment of a judge trial referee (JTRs receive a per diem of $251 per day). As this bill requires the center to be created within available appropriations, the cost indicated above is described as potential.

The bill requires that parties that request a transfer to the special court session to pay a fee of $25 each day per party for each day the case is pending on the center's docket, from the day the case is transferred until judgement is entered or the case is transferred back to the regular docket. The bill specifies that the fees collected from these cases will be transferred to the Connecticut Bar Foundation for the interest on lawyers' trust account (IOLTA) program to fund legal services for the poor. It is anticipated that most of these cases will be resolved within 6 months or less, resulting in fee revenue of less than $9,000 each case to the IOLTA program.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the number of cases.

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 36.33% of payroll in FY 19 and FY 20.