OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-6403
AN ACT REQUIRING LEGISLATIVE APPROVAL FOR THE
MERGER OR CLOSING OF INSTITUTIONS WITHIN THE
CONNECTICUT STATE COLLEGES AND UNIVERSITIES.
Primary Analyst: JS 3/26/21
Contributing Analyst(s):
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Board of Regents for Higher
Education
Various - See
Below
See Below See Below
Note: Various=Various
Municipal Impact: None
Explanation
The bill may prevent or delay for up to 12 to 16 months any savings
or costs anticipated to result from any college or university merger or
closure approved by the Board of Regents. The bill requires an
affirmative vote of the General Assembly within a specified timeframe
equal to 12 to 16 months in order for the merger or closure to proceed
(or the proposal is deemed accepted), which delays any anticipated
costs or savings. The length of the delay would be equal to the amount
of time between the General Assembly receiving merger or closure
notice and the date of an affirmative vote (or deemed acceptance). If
within the voting timeframe one chamber of the General Assembly
rejects the merger or closure, the merger or closure will be halted,
which prevents the realization of any savings or costs that would have
resulted.
The bill also makes a technical change regarding which legislative
entities receive merger or closure notice, which results in no fiscal 2021HB-06403-R000155-FN.DOCX Page 2 of 2
impact.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future. The fiscal impact depends on the length of
delay described above and the amount of any one-time or annual
savings or costs anticipated to result from a merger or closure.