OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sHB-6619 AN ACT CONCERNING PROHIBITING PAY FOR DELAY. Primary Analyst: MR 3/29/23 Contributing Analyst(s): OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 24 $ FY 25 $ Attorney General GF - Potential Cost Up to 500,000 Up to 500,000 Attorney General GF - Potential Revenue Gain See Below See Below Note: GF=General Fund Municipal Impact: None Explanation The bill could potentially result in a cost of up to $500,000, beginning in FY 24, for the Office of the Attorney General (OAG) to retain an outside consultant to assist the agency in determining when a violation of the bill's "pay-for-delay" provisions occurs so OAG can file a good faith complaint with the court. Any costs would depend on the number of occurrences. The bill may also result in a revenue gain, since companies that violate the bill's provisions may be required to pay a civil penalty to the state in an amount of up to three times the amount of compensation provided for delayed market entry, or $20 million, whichever is greater. It is expected that any revenue realized from penalties would be used to recover any consultant costs incurred in a case. The Out Years The annualized ongoing fiscal impact identified above would 2023HB-06619-R000325-FN.docx Page 2 of 2 continue into the future subject to the number of cases that are filed and any penalties assessed.