OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-711
AN ACT CONCERNING COVID -19 RELIEF FOR SMALL
BUSINESSES AND REQUIRING FEDERAL REGULATORY
ANALYSIS FOR PROPOSED STATE REGULATIONS.
Primary Analyst: MM 3/24/21
Contributing Analyst(s): CW, EW
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Revenue Services GF - Revenue
Loss
up to
$250,000
up to
$250,000
Various State Agencies Various -
Potential Cost
See Below See Below
Note: GF=General Fund; Various=Various
Municipal Impact: None
Explanation
The bill enacts state policy put into place by the Governor's
Executive Order 7W that prohibits charging contributing employer's
unemployment insurance accounts to reflect benefits paid to a
claimant due to partial or total unemployment attributable to the
COVID-19 pandemic declared on March 10, 2020. The bill conforms
statute to current practice, which shifts the additional costs attributable
to the COVID-19 pandemic to all contributing employers.
The bill exempts certain employers from the sales and use tax on
purchases of Personal Protective Equipment (PPE). In total, the sales
tax exemption on safety apparel is estimated to be $250,000 annually.
Lastly, the bill expands the scope of regulatory analyses state
agencies must conduct. Specifically, for each proposed regulation state
agencies much prepare an analysis that identifies (1) each comparable 2021SB-00711-R000183-FN.DOCX Page 2 of 2
federal regulation, (2) how it differs from the proposed regulation, (3)
any adverse impact of the federal regulation on small businesses, and
(4) the extent to which the agency attempted to mitigate the adverse
impact. The bill could result in a cost to various agencies associated
with requiring small business impact analyses for proposed
regulations. Any additional staff costs for each agency is dependent
upon the number of regulations filed and time required to complete
such analyses.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.