OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-269

AN ACT CONCERNING THE ASSESSMENT OF CIVIL PENALTIES AGAINST SMALL BUSINESSES BY THE DEPARTMENT OF ENERGY AND ENVIRONMENTAL PROTECTION.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 19 $

FY 20 $

Department of Energy and Environmental Protection

GF - Revenue Gain

Potential

Potential

Department of Energy and Environmental Protection

GF - Revenue Loss

Less than 30,000

Less than 30,000

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill prohibits the Department of Energy and Environmental Protection (DEEP) from assessing a civil penalty against businesses of fewer than 250 employees for first-time regulation violations under certain conditions. The prohibition on assessing civil penalties does not apply to violations for which a penalty is required as a condition for federal funding.

This would result in a revenue loss to DEEP, as several civil penalties of $500-$1,000 assessed against small businesses for violations would no longer be collected. It is anticipated that the revenue loss would be less than $30,000 annually. In 2016, there were 17 violations of $1,000 each.

The bill also requires DEEP to impose a civil penalty for violations taking longer than six months to remedy. To the extent this is enforced by DEEP, there may be a revenue gain associated with this provision.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the amount of the civil penalties suspended.