OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-6383
AN ACT CONCERNING CALL CENTERS AND NOTICE OF
CLOSURES.
Primary Analyst: CW 3/8/21
Contributing Analyst(s):
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Labor Dept. GF - Potential
Cost
61,442 91,924
State Comptroller - Fringe
Benefits
1
GF - Potential
Cost
25,375 37,965
Labor Dept. GF - Potential
Revenue Gain
Minimal Minimal
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which establishes notice requirements for certain call
centers that relocate out of state and enacts certain in-state
requirements for state contractors who perform state-business-related
call center and customer service work, results in a potential General
Fund cost of $86,817 (partial year funding) in FY 22 and $129,889 in FY
23 to the Department of Labor (DOL), as well as a potential minimal
revenue gain from civil penalties.
2
The provisions of the bill apply to relocations of call center facilities
or operations that comprise at least 30% of a call center’s or operating
unit’s average total call volume over the previous 12 months.
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 41.3% of payroll in FY 22 and FY 23.
2
The bill establishes a civil penalty of up to $10,000 per day for each violation, subject
to the commissioner's discretion. 2021HB-06383-R000029-FN.DOCX Page 2 of 2
Therefore, any investigations would require the DOL to examine and
affirm the call volume of affected entities over the specified 12-month
period. To the extent there are a substantial number of investigations,
there is a cost of $86,817 in FY 22 and $129,889 in FY 23 associated with
the salary and fringe benefits of one Wage Enforcement Agent.
As of the third quarter of 2020, there were 158 call center locations
in the state that are categorized by the Quarterly Census of
Employment and Wages with North American Industry Classification
System (NAICS) codes that would include call centers.
The Out Years
The annualized ongoing cost impact identified above would
continue into the future subject to inflation. The annualized ongoing
revenue impact identified above would continue into the future subject
to fluctuation in the number of potential civil penalties levied.
Sources: Bureau of Labor Statistics Quarterly Census of Employment and Wages