OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-6001

AN ACT IMPLEMENTING PROVISIONS OF THE STATE BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2012.

As Amended by House "A" (LCO 5819)

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

Section 1 makes the following changes to PA 12-104, the revised FY 13 budget, resulting in an increase to the FY 13 General Fund appropriation of $44,001:

1. Transfers funds between agencies or within agency accounts resulting in no net increase to the FY 13 General Fund. The transfers are presented in the following table.

Amount $

Agency From

Agency To

Reason

150,000

Judicial

Legislative Management

Expenses related to the Eyewitness Task Force

75,000

DECD

OPM

Main Street Investment Fund Administration

100,000

DoAG

DEEP

Lobster Restoration

12,500,000

DHMAS

DSS

Reallocation of savings between agencies as a result of the Low Income Adult (LIA) eligibility waiver

125,000

Judicial

Judicial

Transfer from Other Expenses to the Forensic Sex Exams Account

2. Makes changes to the Department of Social Services' budget: a) reduces the number of appropriated Medicaid accounts from 35 to 7, b) reduces funding of $626,400 to maintain current co-pays for the CT Home Program for Elders, c) increases funding by $626,400 to increase access to the PCA Waiver program, and d) increases funding by $44,000 for the HUSKY Performance Monitoring account.

3. Appropriates one dollar to a newly established Greenways Account within the Department of Energy and Environmental Protection.

4. Changes the name of two accounts in the Public Defender Service Commission's budget.

Section 2 specifies that Medicaid dental benefit limitations are specific to the Medicaid client, regardless of how many providers serve the client. This provision will presumably reduce utilization of dental services. The Department of Social Services (DSS) spends approximately $185 million on dental benefits annually. PA 12-104, the revised FY 13 budget, includes savings of $1. 74 million for this initiative.

Sections 3 and 4 extend the period for which DSS can use federal fiscal year 2009 data in setting Medicaid and disproportionate share hospital (DSH) payments. The sections also extend the current hospital provider tax rates and exemptions. These provisions do not change the aggregate amount the state pays out of the DSH or Medicaid program, nor the revenue received by the hospital provider tax.

Sections 5, 6 and 15 allow DSS to lower reimbursement rates for community living arrangements (CLA's), intermediate care facilities for the mentally retarded (ICF/MR's) and residential care homes when facilities experience significant reductions in land and building costs. PA 12-104, the revised FY 13 budget, assumes savings of $5. 2 million from these reductions.

Section 7 freezes rates for CLA's, residential care homes and community companion homes that receive a flat rate for residential services. PA 12-104, the revised FY 13 budget, assumes savings of $149,000 for this change.

Section 8 requires veterans and their families who apply for or receive Medicaid to also apply for federal Veteran's Administration or Department of Defense benefits. Should this result in federal benefits supplanting Medicaid benefits, the state would realize savings. It is not known how many Medicaid clients could be affected by the change. No savings were included in PA 12-104, the revised FY 13 budget, for this policy.

Sections 9 and 10 expand the private pay assisted living pilot from 75 to 125 individuals. This expansion is expected to cost the state funded Connecticut Home Care Program for the Elders (CHCPE) approximately $950,000 when annualized ($19,000 per slot). However, it is expected to result in an equal level of savings in the Medicaid program by diverting individuals from more expensive nursing home care. PA 12-104, the revised FY 13 budget, transfers funding of $680,000 between Medicaid and CHCPE to reflect this expansion.

Sections 11-13 require certain home health care agencies to provide for the administration of non-injectible medications by staff other than licensed nurses, at the discretion of the treating physician. PA 12-104, the revised FY 13 budget, assumes medication administration savings of $15. 4 million, related to nurse delegation of medication administration, assistive technology and reduced utilization.

Section 14 requires enrollees of the Medicaid Personal Care Assistance (PCA) Waiver program to enroll in the CHCPE upon reaching the age of 65. This will allow the PCA waiver program to serve additional individuals who are currently on a wait list. PA 12-104, the revised FY 13 budget, includes funding of $626,400 to reflect the provision of additional services.

Section 15 allows DSS to provide a rate increase in FY 13 to residential care homes, within available appropriations. PA 12-104, the revised FY 13 budget, includes $500,000 for this rate increase.

Section 16 allows DSS to provide a fair rent rate increase to nursing facilities, within available appropriations. PA 12-104, the revised FY 13 budget, includes $1 million for this rate increase.

Section 17 allows DSS to cover chiropractic services for recipients of Medicaid. The section specifies that DSS shall expend no more than $250,000 annually for these services.

Section 18 requires DSS to increase, on October 1, 2012, the reimbursement for brand drugs purchased at independent pharmacies to average wholesale price (AWP) minus 14%. This change is contingent upon federal approval. PA 12-104, the revised FY 13 budget, includes $975,000 for this reimbursement increase.

Section 19 moves the implementation date for the Department on Aging from July 1, 2013 to January 1, 2013. PA 12-104, the revised FY 13 budget, includes $100,000 to fund administration of this department.

Section 20 does not result in a fiscal impact, as it corrects last year's modification in order to maintain current practice and the collection of recoveries (as General Fund revenue) from legally liable parents who come into inheritances and other windfalls pursuant to CGS 17b-93.

Section 21 requires the Chief State's Attorney to report to the General Assembly by October 1, 2013 the monetary recoveries made by the Medicaid Fraud Control Unit of the Division of Criminal Justice. There is no fiscal impact associated with this provision.

Section 22 continues the authority of the Department of Mental Health and Addiction Services (DMHAS) to audit certain providers. No savings were included in PA 12-104, the revised FY 13 budget, for this policy.

Section 23 alters the entities that can administer DSS's security deposit guarantee program to align it with current practice. There is no fiscal impact.

Section 24 changes the distribution of funds from the United We Stand commemorative account. Currently, 50% of funds are distributed to the United States Department of State Rewards for Justice Funds and 50% to the Office of Policy and Management (OPM). The bill will change the distribution to 100% of funds to OPM. This account is projected to accumulate $22,000 in FY 12.

Section 25 requires DSS and the Department of Labor to issue an annual report on a pilot program under the Jobs First employment services program. There is no fiscal impact.

Section 26 requires DSS to apply for a Medicaid waiver to alter the Low Income Adult (LIA) program. The section establishes an asset limit of $10,000, includes parents' incomes for dependent individuals up to age 26, and limits nursing home care to 90 days. PA 12-104, the revised FY 13 budget, assumes savings of $50 million for these changes.

Section 27 requires pharmacies to provide notice to Medicaid recipients who receive a temporary supply of medication due to denied prior authorization. There is no fiscal impact to the state.

Sections 28-95 implement the change in the name of the Bureau of Rehabilitative Services to the Department of Rehabilitation Services and have no fiscal impact.

Section 96 requires each school-based health center that receives operational funding from the Department of Public Health to enter into a communications agreement with the school's governing local or regional board of education and is not anticipated to result in a fiscal impact to the state or municipalities.

Section 97 requires the Office of Fiscal Analysis (OFA) to publish annually, rather than quarterly, certain information regarding the electronic database starting on January 15, 2013. This does not result in a fiscal impact.

Section 98 includes previously exempted tribal lands to be included in the State-Owned PILOT calculations and phases in the payment over 5 years. In FY 13, $122,431 of funding is provided, of which $55,855 is for Ledyard and $66,576 is for Montville.

Section 99 transfers responsibility for the administration of the grant to the Connecticut Humanities Council from the Department of Economic and Community Development to the State Library. Funds totaling $2,157,633 are provided in PA 12-104, the revised FY 13 budget, for such grant.

Section 100 moves the Office of the Chief Medical Examiner within the University of Connecticut Health Center (UCHC) for administrative purposes only and is not anticipated to result in a fiscal impact to UCHC.

Section 101 transfers the Commission on Human Rights and Opportunities from the Department of Administrative Services to the Department of Labor for administrative purposes only, and has no fiscal impact.

Section 102 implements two provisions in the Teachers' Retirement Board (TRB) budget: 1) it requires the use of the federal Medicare Part D subsidy to offset the state share of the TRB health plan costs and 2) it reduces the state share of the municipal subsidy from 33% to 25% for FY 13 only. Funding in PA 12-104, the revised FY 13 budget, was reduced by $6,500,000 to reflect the use of the Medicare Part D subsidy and by $1,971,870 to reflect the reduction of the state share from 33% to 25% for the municipal subsidy.

Section 103 makes a clarifying change concerning Workforce Investment Act carry forward funding included in PA 12-104, the revised FY 13 budget, and has no fiscal impact.

Section 104 allows the Commissioner of Corrections to release inmates to licensed, community-based health care providers for the purpose of providing palliative end-of-life care. PA 12-104, the revised FY 13 budget, assumes savings of $235,000 associated with this change in the Department of Corrections.

PA 12-104 includes $2. 3 million in DSS and $300,000 in DMHAS to provide increased funding necessary to place the individuals leaving Corrections in a community nursing home setting.

Section 105 transfers collection services from the Department of Veterans' Affairs (DVA) to the Department of Administrative Services (DAS). A transfer of $166,800 and one position from DVA to DAS is included in PA 12-104, the revised FY 13 budget.

Section 106 makes June 30, 2012 the last day for OPM to accept and approve applications for the computer-assisted mass appraisal system grant. This does not result in a fiscal impact.

Sections 107-109 create three new non-appropriated, non-lapsing accounts in the Military Department for the purposes of depositing and spending money generated and dedicated to a specific purpose. There is no fiscal impact associated with the creation of these accounts.

Section 110 transfers authority for conducting a disparity study regarding the state's set-aside program for certain contractors from the Commission on Human Rights and Opportunities (CHRO) to the Connecticut Academy of Science and Engineering (CASE). PA 12-104, the revised FY 13 budget, carries forward $500,000 of funding appropriated to CHRO in FY 12 for the purpose of conducting the disparity study and transfers it to the Office of Legislative Management's CASE account in FY 13 for this purpose. FY 12 funding is available due to delays in study implementation.

Section 111 directs $200,000 of the Operation Fuel funds transferred to the Department of Energy and Environmental Protection (DEEP) from the systems benefits charge and states that these funds are to be used for Operation Fuel's administration of energy assistance.

Sections 112–114 and 121 establishes the new Department of Housing (DOH) shall be in the Department of Economic and Community Development for administrative purposes only. The bill also requires DOH to review state housing programs and report recommendations to the General Assembly by January 15, 2013. PA 12-104 provides $180,000 in FY 13 for two positions. It is anticipated that the reporting requirements can be completed with available staff and so there is no fiscal impact to these sections.

Section 113 establishes an interagency council on affordable housing that shall include members from various state agencies. There may be a minimal cost to those participating agencies associated with mileage reimbursement of 55 cents per mile for those staff participating on the council.

Section 115 requires the State Comptroller (OSC) to fund up to $13. 5 million of the differential between the average fringe rate paid across all Connecticut acute care hospitals and the state fringe benefit rate for state employees at the University of Connecticut Health Center out of the resources of OSC. This will cost the OSC $13. 5 annually starting in FY 14. Section 42 of PA 11-6 requires the OSC to fund up to $13. 5 million in FY 12 and FY 13 of the fringe differential out of OSC's resources.

Section 116 distributes funds from the Probate Court Administration Fund FY 12 surplus and makes various changes to the distribution contained in PA 12-104, the revised FY 13 budget. The chart below details the additional distribution of funds:

Probate Surplus Funds Distributions

Sec. 116

LCO 5747

Agency

Program

Amount $

E

JUD

Greater Hartford Male Youth Leadership Program (PA 12-104 provided $100,000)

125,000

V

DPH

PANDAS Resource Network (PA 12-104 provided $36,000)

4,000

X

DSS

Rapid Rehousing Program

250,000

Y

SDE

Lighthouse Program

150,000

Z

SDE

CT Writing Project

50,000

AA

JUD

Domestic Violence GPS Monitoring

510,517

TOTAL

1,089,517

Section 117 specifies that the appropriated funding for the Local Theatre Grant in FY 13 shall be distributed evenly across certain producing theaters. There is no fiscal impact.

Sections 118 and 119 delay reporting deadlines for the State Department of Education for the college transition pilot program from October 1, 2012 to October 1, 2013.

Section 120 creates a non-appropriated, non-lapsing account for the proceeds related to renting Military Facilities to non-government organizations. The change will result in a revenue reallocation from the General Fund to the "chargeable transient quarters and billeting account" of less than $2,000 annually.

Section 122 allows OPM to use available resources to make grants to municipalities for certain housing zone incentives and does not result in a fiscal impact.

Section 123 requires retailers with certain cigarette-rolling machines to obtain a manufacturer's license from the Department of Revenue Services. 1 This results in a revenue gain of approximately $2. 3 million in FY 13, and an annualized revenue gain of approximately $3. 1 million.

This estimate includes revenue from the cigarette tax ($2. 8 million), the sales tax ($180,400), and cigarette manufacturing license fees ($78,750). The cigarette and sales tax revenue gains are based on an estimate of the differential between stamped (taxed) cigarettes ($34. 00 per carton) and currently unstamped cigarettes produced by the applicable cigarette-rolling machines ($8. 75 per carton). These figures assume that all commercial locations with applicable cigarette-rolling machines will pay the manufacturing license fee, and those customers previously utilizing the cigarette-rolling machines will switch to stamped cigarettes.

To the extent that Section 123 prevents current stamped cigarette consumers from switching to unstamped cigarettes produced by the applicable cigarette-rolling machines in the future, this also precludes a future revenue loss.

Section 124 precludes a revenue gain estimated to range between $1. 0 million to $3. 0 million annually. This estimate considers only those joint ventures in the aircraft industry that are anticipated to qualify for the sales tax exemption in FY 13 as a result of the bill.

To the extent that additional joint ventures would also qualify for this sales tax exemption, there would be additional preclusions to a revenue gain in FY 13. The bill also extends the sales tax exemption for each qualifying joint venture in the aircraft industry from a period of thirty consecutive years to forty consecutive years. The annual revenue impact associated with each venture is therefore extended by ten years.

Sections 125–129 expand eligibility to the Emergency Mortgage Assistance Program (EMAP) and require information on foreclosure mediation to be more widely available. PA 12-189, An Act Authorizing and Adjusting Bonds of the State for Capital Improvements, Transportation, and Other Purposes, authorizes $60 million in General Obligation (GO) bonds for a grant to the Connecticut Housing Finance Authority (CHFA) for the purpose of funding EMAP. Additionally, $14 million will be allocated from the money received by Connecticut in national foreclosure settlement to the EMAP program.

The bill also clarifies that payments under EMAP will be available for a period of sixty months after the initial payment. By defining the period of time, the bill results in a minimal savings to CHFA in reduced administrative costs. Under the current program, CHFA may provide up to sixty months of payments either consecutively or inconsecutively over an undefined period of time.

Section 130 results in a potential revenue gain of $5,000 per offense by making violations of the provisions of the bill subject to fines under the Connecticut Unfair Trade Practices Act (CUTPA).

Section 131 allows the Judicial Department to resume operation of the domestic violence high-risk offender GPS tracking program. Funding of $510,517 is provided through a transfer from the Probate Court Administration Fund surplus.

Sections 132-140 do not result in a fiscal impact as these provisions make technical changes to last year's modifications of the statutes governing retirement pensions of judges, family support magistrates and worker's compensation commissioners. The changes in statute were made as a result of the Revised 2011 SEBAC Agreement.

Section 141 requires costs incurred for a medical forensic assessment interview or medical physical examination of a juvenile victim of sexual assault be reimbursed by the Office of Victim Services within the Judicial Department. PA 12-104, the revised FY 13 budget, includes $100,000 in FY 13 in Judical's budget for such costs.

Section 142 adds provisions related to the placement of defendants in the Department of Correction (DOC) or the Department of Developmental Services (DDS) for those committed to the Department of Mental Health and Addiction Services (DMHAS). This change may result in a minimal number of additional commitments to DOC and DDS and an offsetting reduction of placements in DMHAS. The savings in DMHAS would be associated with decreased overtime and professional services expenditures.

Section 143 does not result in a fiscal impact to the Department of Children and Families (DCF). It conforms an existing statute to PA 12-82, AAC Revisions to Statutes Concerning DCF, which permits DCF to file adoption petitions in the Superior Court instead of the probate court when the child's biological parents' rights have been terminated by that court.

Section 144 clarifies that while the Racial Profiling Prohibition Project Advisory Board completes its study, local and state police agencies must continue to collect and report traffic stop information. There is no fiscal impact associated with this change, as it only requires police agencies to maintain current practice.

Section 145 implements PA 12-104, the revised FY 13 budget, by transferring the management of the Innovation Challenge grant from the Department of Economic and Community Development (DECD) to the Office of Policy and Management (OPM). PA 12-104 transfers the Innovation Challenge grant and funding of $500,000 from DECD to OPM for the purpose of funding the Innovation Network.

Section 146 establishes a program at the University of Connecticut for the Connecticut Center for Advanced Technology. Funds totaling $500,000 are provided in PA 12-104, the revised FY 13 budget, for such program.

Sections 147–180 and 183 make various changes relating to the transfer of the Connecticut Development Authority (CDA) into Connecticut Innovations, Inc. , both of which are quasi-public state agencies. There is no fiscal impact to the state from these changes.

The bill under these sections also provides a sales tax exemption for property and services relating to the development, construction, rehabilitation, renovation, and repair of certain projects. Currently, CDA has a sales and use tax relief program similar in nature to this provision (CGS 32-23h). It is unclear to what extent this provision changes the current program and therefore the revenue impact is uncertain.

Section 181 makes clarifying changes to the Housing Incentive Program and has no fiscal impact.

Section 182 changes the amount municipalities can receive for zone adoption payments from up to $2,000 per housing unit to up to $50,000 total. This provides the Office of Policy and Management with greater discretion as to how much funding each municipality could receive. This will not result in a fiscal impact because no additional funding is given.

Sections 184–188 expand the scope of the Capital Region Development Authority to include the promotion of in-state sporting events, which are defined as “capital city project. ” PA 12-147, An Act Concerning the Capital Region Development Authority, allows the Authority to issue bonds for “capital city projects” that are secured by a special capital reserve fund (SCRF). The bill therefore expands the Authority's ability to issue SCRF bonds for promotion of in-state sporting events.

SCRF bonds are a contingent liability of the state, which does not count against the state's statutory limit on General Obligation (GO) bonds in CGS Sec. 3-21. 2 That liability would only be realized in the event that the SCRF fell below the minimum required reserve and the state had to appropriate funds in order to maintain the SCRF minimum balance. If the state were required to do this, there would be a negative effect on the state's cash flow and a loss of short-term interest on the appropriated funds. The Authority had no outstanding balance for SCRF-backed bonds as of February 1, 2012.

Section 189 requires OPM to conduct an analysis of state planning regions. OPM may incur minimal costs associated with contractual agreements to carry out this analysis.

Sections 190 and 191 allow the Voluntary Regional Consolidation Bonus Pool bonus payments to be funded through the regional performance incentive account. This has no fiscal impact.

Sections 192-196 enact a technical change to the Manufacturing Reinvestment Account program by allowing for pass-through entities filing under the Personal Income Tax to participate, and clarify the manner in which corporations participate. The revenue impact of this change was previously incorporated into revenue estimates and therefore it does not result in any additional revenue loss to the state.

Section 197 results in a potential cost to the Department of Economic and Community Development (DECD) by requiring DECD to establish an Urban Revitalization Pilot Program within existing resources. It is anticipated that DECD will implement the program through a third party administrator, financed with existing bond authorizations. The cost, which will be determined upon the applications submitted for consideration to be a third party administrator of the program, is anticipated to be less than $5. 0 million for the duration of the program.

It is anticipated that DECD will fund the program through existing bond authorizations to DECD's housing programs that fit the scope of the Pilot Program. The following schedule shows the current bond funds available.

Bond Funds Available to DECD for Housing (in millions)

DECD Housing

Program

FY 12

As of June 10, 2012 $

FY 13

New Authorization $

Flexible Housing Program

4. 6

25. 0

Housing Trust Fund

40. 0

25. 0

Supportive Housing

30. 0

-

Section 198 expands the Job Expansion Tax Credit program to include certain clients of the Department of Mental Health and Addiction Services (DMHAS) and the Department of Developmental Services (DDS). This does not result in any fiscal impact to the state as this section does not alter the total $20. 0 million annual credit cap under the Job Expansion Tax Credit program, the full amount of which was previously estimated to be utilized.

Sections 199 and 200 make various changes to the Small Business Express Program (Express) and the bond authorizations for Express. These changes do not result in a fiscal impact because the bill does not authorize additional General Obligation (GO) bonds. 3 The table below shows the changes made to GO bonds authorized for the Small Business Express Program.

Changes made by HB 6001 to Small Business Express GO Bonds

(in millions)

 

PA 11-1 (OSS)

HB 6001

Assistance

FY 12 $

FY 13 $

FY 12 $

FY 13 $

Revolving Loans

20

20

10

10

Job Creation Incentive Loans

10

10

20

20

Matching Grants

20

20

20

20

Total

50

50

50

50

Section 201 allows the Department of Economic and Community Development (DECD) and its partnering entities on Express to use up to 4. 0% of loan repayments from the program for administrative expenses. To the extent that DECD and its partnering entities utilize the funds in the account for expenses, there would be less funding available from the repayments to provide loans to other eligible businesses.

Sections 202 and 203 make several changes to the Department of Labor's (DOL) Subsidized Training and Employment Program (STEP). DOL can use up to 4%, or $800,000, of its $20 million bond authorization for the program in FY 13 for marketing and program operations. This is in addition to the $800,000 in bond funds that PA 11-1 of the October Special Session allowed DOL to use for program administration. The bill also allows DOL to expend bond funds in FY 14.

The bill makes other changes to the STEP program which do not have a fiscal impact.

Sections 204 and 205 establish the Unemployed Armed Forces Subsidized Training and Employment Program within the Department of Labor. The bill authorizes $10 million ($5 million in each of FY 13 and FY 14) in General Obligation (GO) bonds to the Labor Department for the program. The total General Fund debt service cost for principal and interest payments to bond this amount over 20 years at a 5. 0% interest rate is $15. 3 million (comprised of $5. 3 million in interest and $10 million in principal). The first year that the state will experience debt service costs associated with the bonds depends on when they are allocated through the State Bond Commission and when the funds are expended.

The bill allows DOL to use up to 4% of its total authorization, or $400,000, for program administration. In FY 13, it allows DOL to use up to an additional 4% of bond funds available (the first authorization of $5 million) for program marketing and operation.

Section 206 requires the Department of Economic and Community Development (DECD) to administer a “Connecticut-Made” (or “CT-Made”) program within available appropriations. PA 12-104, the revised FY 13 budget, provides $100,000 to a statewide campaign to market CT-Made. There may be an additional potential annual cost to the Department of 1) $110,000 for operation costs and grants and 2) $80,000 plus $23,376 in fringes for one staff to administer. This estimate assumes that the CT-made program would mirror the “Connecticut Grown” program.

The potential cost may be offset by the following funding sources/issues:

1. The bill allows DECD to solicit private funds for use in the administration of the program.

2. Additionally, the bill provides the Commissioner of DECD with discretion over the issuance of grants to people and organizations agreeing to use the term “CT-Made.

Section 207 requires DECD to establish the Connecticut Treasures program. DECD is currently in the process of creating a similar program wherein the agency will designate fifty places of historic or cultural significance and will promote each through a catalogue available at each designated institution. It is therefore anticipated that the Connecticut Treasures can be accommodated within this existing program.

Section 208 allows the Office of Policy and Management (OPM) to contract with a nonprofit entity to administer the Main Street Investment grant program. There is no fiscal impact to the state as the cost of this contract can be recovered through the Main Street Investment Fund. To the degree that bond funds are expended more rapidly than they otherwise would have been, this will accelerate General Fund expenditures for debt service costs.

Sections 209 and 210 have no fiscal impact by allowing the Commissioner of Economic and Community Development to give preference under the “First Five Plus” program to business projects that plan to relocate jobs from other countries to Connecticut.

Section 211 does not result in a fiscal impact to the Department of Public Health (DPH). It requires DPH to post on its website its current policy regarding vaccine wastage and to track, record, and investigate instances, within available appropriations, when a health care provider reports that she or he did not receive a full order of a requested vaccine. This information is also required to be posted on DPH's website.

Section 212 implements the Department of Public Health's (DPH's) FY 13 revised budget. It makes participation in the state vaccine program mandatory for health care providers that administer vaccines to children effective January 1, 2013. Under PA 12-104 the revised FY 13 budget, the Immunization Services account's funding is increased by $9,342,386, for a total budget of $18,387,336 in FY 13, to (1) accommodate mandatory health care provider participation in the state vaccine program and (2) to expand the state vaccine program's ability to provide three additional CDC-recommended childhood vaccines4 under a staggered implementation schedule.

This section also allows for health care providers participating in the federal Vaccines for Children program and/or the state vaccine program to choose the brand of vaccine that they prefer within specified limitations starting on October 1, 2012. There is no fiscal impact anticipated to DPH to implement provider vaccine choice.

Section 213 changes the procedures that the Department of Insurance (DOI) uses to assess insurers for the state vaccine program run by the Department of Public Health (DPH). As these changes affect the manner of assessment and not the amount assessed, there is no fiscal impact to DOI or DPH.

The section may result in a fiscal impact to the state employee health plan administered by the State Comptroller and self-insured municipalities who utilize licensed third party administrators or certain domestic insurers to administer their health plans. Third party administrators were previously exempt from the assessment. The fiscal impact will depend on the degree to which providers who serve clients in the state and municipal health plans utilize the state vaccine program and the annual fee assessed. In calendar year 2011, the state employee health plan spent approximately $1. 9 million on child immunizations.

Sections 214-216 eliminate an account within the Insurance Fund related to fees and assessments for captive insurance companies. In its place, all such fees and assessments are deposited directly into the Insurance Fund. As the sections do not change the amounts of fees and assessments, or the use of these funds, there is no fiscal impact.

Sections 217-219 make several changes to the underlying bill concerning Exchange (the Exchange) board membership. These changes have no fiscal impact.

These sections also allow the chief executive of the Exchange to request an advance, not to exceed $5. 0 million, from the General Fund if the current expenses of the Exchange exceed available cash. Such an advance must be approved by the Secretary of the Office of Policy and Management (OPM). The secretary may only approve such an advance if all prior advances have been repaid and sufficient federal grant award funds are available to repay the advance. The Exchange must repay the advance no later than seven business days after receiving the funds.

Assuming the Exchange receives sufficient federal funds within seven days of accepting an advance, there would be no fiscal impact to the state. However, should federal funding not be available to repay an advance in full, the state could realize a cost of up to $5. 0 million.

Lastly, section 218 allows employees of the Exchange to enroll in the state employee health plan, administered by the State Comptroller. The Exchange is responsible for all costs incurred by enrollment and therefore does not result in a fiscal impact to the state.

Sections 220 and 221 transfer responsibility for the administration of the Kirklyn M. Kerr Veterinary program from the Office of Financial Aid and Academic Affairs for Higher Education to the University of Connecticut. Funds totaling $400,000 are provided in PA 12-104, the revised FY 13 budget, for such program.

Section 222 establishes an English language learner educator loan reimbursement program to be administered by the Office of Financial and Academic Affairs for Higher Education. Funds totaling $100,000 are provided in PA 12-104, the revised FY 13 budget, for such program.

Section 223 requires the Department of Labor, in consultation with the Connecticut Employment and Training Commission, to develop youth employment strategies and to report on such strategies, and has no fiscal impact.

Sections 224 and 225 establish programs within the constituent units of higher education and the State Department of Education to link common core state standards between institutions of higher education and local school districts. Funds totaling $500,000 are provided in PA 12-104, the revised FY 13 budget, for such programs.

Sections 226-229 waive certain statutory and regulatory requirements to make school construction projects eligible for state grants. This will increase state grant commitments for various school construction projects by $8. 1 million. The General Fund debt service cost for principal and interest payments to bond this amount of General Obligation (GO) bonds over 20 years at a 5. 0% interest rate is $12. 4 million (comprised of $4. 3 million in interest and $8. 1 million in principal). This will result in a revenue gain of $8. 1 million to various municipalities.

Section 230 extends the deadline for applying for Youth Service Bureau (YSB) grants. An additional $42,000 is provided in PA 12-104, the revised FY 13 budget, over the FY 12 level which would allow for three new YSBs. New YSBs are eligible for a grant of $14,000.

Section 231 establishes a coordinated school health pilot program in the Department of Education. Funds totaling $200,000 are provided in PA 12-104, the revised FY 13 budget, for such program.

Section 232 establishes a wraparound services program in the Department of Education. Funds totaling $450,000 are provided in PA 12-104, the revised FY 13 budget, for such program.

Section 233 establishes a parent university program in the Department of Education. Funds totaling $250,000 are provided in PA 12-104, the revised FY 13 budget, for such program.

Section 234 establishes a K to 8 science program in educational reform districts in the Department of Education. Funds totaling $455,000 are provided in PA 12-104, the revised FY 13 budget, for such program.

Section 235 delays the submittal of certain progress reports by the task force from FY 13 until FY 14. This is anticipated to delay, from FY 13 to FY 14, potential costs of less than $1,000 to agencies participating in the task force to reimburse legislators and agency staff for mileage expenses.

Section 236 allows local and regional school districts operating vocational agriculture programs to expend any additional funds provided by the state in FY 13 above that currently budgeted by the member towns. PA 12-104, the revised FY 13 budget, provides such centers an additional $1,425,000 in funding over the original FY 13 budget.

Section 237 transfers $27,000 in FY 13 from the State Department of Education to the University of Connecticut for FoodCorps Connecticut.

Sections 238 and 239 establish a school nutritional rating system pilot program in the Department of Education along with reporting requirements. Funds totaling $177,000 are provided in PA 12-104, the revised FY 13 budget, for such program.

Section 240 changes the title of a deputy commissioner in the Department of Emergency Services and Public Protection to the Director of Scientific Services and has no fiscal impact.

Section 241 requires the Office of Statewide Emergency Telecommunications to submit and report an annual budget to the Secretary of the Office of Policy and Management (OPM) for review and approval, as well as committees of cognizance in the General Assembly. There is no fiscal impact associated with reporting an annual budget to OPM and the General Assembly.

Section 242 increases the Free Slot Play exemption threshold from 5. 5% to 11. 0%, which results in an annualized revenue loss of approximately $15. 0 million. It should be noted that Section 29 of PA 12-104, the revised FY 13 budget, specifies that $15. 0 million of funds diverted from the early repayment of Economic Recovery Note debt would be used in FY 13 to implement any amendments to the Indian Gaming Compacts.

Sections 243-247 and 293 removes the minimum mandatory staffing level for the state police, removes the limit on auxiliary police forces, and requires the Program Review and Investigations Committee to develop and recommend standards for use in determining adequate staffing levels. Additionally, the bill changes the report from the Commissioner of the Department of Emergency Services and Public Protection regarding the staffing and budget of the agency from annually to biennially. This change is anticipated to preclude a net cost of $8. 8 million in FY 13 associated with hiring, training, and equipping the number of troopers necessary to conform to the existing statute.

Section 248 does not result in a fiscal impact as it requires the Department of Administrative Services to enter into a memorandum of understanding with each state agency for which the department provides administrative and human resource services.

Section 249 is anticipated to result in increased revenue in the form of vendor rebates and administrative savings to the state and certain municipalities. The provisions raise the current $10,000 limit on state agency p-card transactions and purchases to $250,000. P-card purchases above the new limit would require written approval from the Comptroller and Commissioner of Administrative Services. By increasing the purchase limit, the ability for agencies to utilize the p-card for larger and/or bulk purchases will enable the state and participating municipalities to further maximize potential rebates. Actual savings would depend upon the volume of purchases made using a purchasing card (p-card).

The formula used to determine the state's reimbursement from the p-card vendor is on a sliding scale based on the annual purchase volume for all programs using the state's contract, with additional rebate incentives (0. 01% per day) for payment prior to the 25-day grace period. In May 2011, the state received a rebate of $205,863 based on calendar year 2010 purchases. Municipalities piggy-backing off of the state's p-card contract received a total of $87,000 in rebates last year.

In addition, utilizing p-cards reduces agency staff time as compared to the traditional purchasing process of purchase order and check issuance. Additional savings may be achieved to the extent that processing efficiencies lead to lower staffing levels over time.

Section 250 results in a savings of $300,000 to the Department of Energy and Environmental Protection (DEEP), as DEEP would no longer be required to reimburse resource recovery facilities (RRF's) for various testing costs. Various municipalities would incur increased costs, associated with higher tip fees. Towns that currently charge residents a direct fee for the removal of municipal solid waste (at a transfer station) would incur smaller costs than those towns that pay for disposal through municipal taxes. Tip fees currently range from $57-$70 per ton. There are currently seven permitted RRF's in the state, six of which convert municipal solid waste (MSW) to energy.

Sections 251-263 do not result in a fiscal impact, as it implements provisions of Sec. 48 of PA 12-189, the FY 13 bond bill, for the underground storage tank (UST) petroleum clean-up program. PA 12-189 provides for $36 million, in aggregate, for the UST Clean-Up Program; $9. 0 million each of the next four fiscal years (FY 13, FY 14, FY 15 and FY 16).

Section 264 and 297 requires the Department of Energy and Environmental Protection commissioner to consult with the Equine Advisory Council prior to any decision to prohibit equine use of certain multi-use trails. This does not result in a fiscal impact. Section 295 makes technical and conforming changes that do not result in a fiscal impact.

Section 265 and 296 of the bill eliminates statutory provisions concerning Medicaid hospital rate setting. There is no fiscal impact as this rate setting methodology has been superseded by more recent statutory provisions.

Sections 269-281 require juvenile competency exams be performed by the Judicial Department and results in a cost of $72,500 in FY 13. PA 11-51 provided $75,000 in FY 13 to the Judicial Department to conduct juvenile competency hearings through a transfer from the Probate Court Administration Fund surplus.

This function is currently performed by staff at the Department of Mental Health and Addiction Services (DMHAS). Transferring responsibility to the Judicial Department will reduce DMHAS employees' workload, but will not lead to direct operational savings as the 35 evaluations represent only about 6% of DMHAS' total annual evaluations.

There is no fiscal impact to the Department of Children and Families (DCF) associated with establishing seven years-of-age as the minimum age for persons to be charged with delinquency or a Family with Service Needs offense. Likewise, there is no fiscal impact to DCF associated with the creation of a “permanent legal guardianship” in Superior Court as an alternative living arrangement for child abuse and neglect victims.

Section 282 allows the Commissioner of Education to provide supplemental transportation grants in FY 12 to regional educational service centers for the purposes of transportation to interdistrict magnet schools that assist the state in meeting the goals of the 2008 stipulation and order for Milo Sheff, et al. v. William A. O'Neill, et al. The estimated supplemental grant from the Magnet School account, after prior year offsets, is $2. 5 million.

Section 283 carries forward an estimated $5. 3 million in the Magnet Schools account in the State Department of Education from FY 12 into FY 13 and makes these funds available for Sheff programming including the payment of supplemental magnet transportation costs.

Section 284 carries forward $700,000 in the Magnet Schools account in the State Department of Education from FY 12 to FY 13 and transfers these funds to Other Expenses for litigation costs associated with the Connecticut Coalition for Justice in Education Funding v. Rell lawsuit and school reform activities.

Section 285 carries forward $200,000 in the Interdistrict Cooperation account in the State Department of Education from FY 12 to FY 13 and transfers these funds to Other Expenses for technology initiatives with local and regional school districts.

Section 286 expands the usage of any unexpended funds up to $500,000 in the Early Childhood account to include being made available for the provision of professional development for early childhood education program providers offered by a professional development and program improvement system within the Connecticut State University System in addition to already allowable usage.

Sections 287 and 298 require alliance districts to maintain a minimum level of annual local funding for education. This could result in an additional cost to an alliance district, as they are now required to meet their MBR as well as the minimum local funding percentage. The minimum local funding percentages are 20% for FY 13, 21% for FY 14, 22% for FY 15, 23% for FY 16 and 24% for FY 17. It is anticipated that only one of the designated alliance districts, Bridgeport, would be unable to meet their minimum local funding percentage, by approximately $3. 6 million. The bill allows the commissioner to remove a district from an alliance district designation if they are unable to meet their minimum local funding percentage. This could result in a revenue loss to a municipality, as they would no longer qualify for conditional ECS funding.

Section 289 carries forward $2. 3 million in the Personal Services account, $700,000 in the Sheff Settlement account and $500,000 in the OPEN Choice account in the Department of Education from FY 12 to FY 13 and makes the $3. 5 million in funds available for the purpose of funding a loan to the city of Bridgeport to be included in Bridgeport's budgeted appropriation for education for the fiscal year ending June 30, 2012, for the city of Bridgeport during the fiscal year ending June 30, 2013.

Section 290 repeals a provision in PA 12-133, An Act Concerning Court Operations and Victim Services, which required parties found indigent to pay court fees and the cost of service if the matter is found to be frivolous, and precludes a minimal revenue gain.

Section 292 makes conforming changes pertaining to the merger of the Connecticut Development Authority into Connecticut Innovations. There is no fiscal impact.

Section 294 repeals a statutory reference to a two year pilot program for reliable transportation. The pilot had a sunset date of 2000.

House “A” makes various technical and clarifying changes which have no fiscal impact.

Additionally, House “A” eliminates a provision that exempts from disclosure, under the Freedom of Information Act, all records obtained by state or quasi-public agencies related to requests for assistance from certain businesses. There is no fiscal impact.

The Out Years

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

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 license fee for a cigarette manufacturer's license is currently $5,250 payable annually. It is estimated there are currently 15 commercial locations within the state with applicable cigarette-rolling machines.

2 CGS Sec. 3-21 imposes a ceiling on the amount of General Fund-supported debt that the Legislature may authorize that is equal to 1. 6 times net General Fund tax receipts projected by the Finance, Revenue and Bonding Committee for the fiscal year in which the bonds are authorized.

3 PA 11-1 of the October Special Session authorized $100 million to the Small Business Express Program. The State Bond Commission allotted $50 million to the program on December 16, 2011.

4 These vaccines are the influenza, hepatitis A and pneumococcal conjugate vaccines.