OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sHB-6767 AN ACT CONCERNING THE DEPARTMENT OF CONSUMER PROTECTION'S RECOMMENDATIONS REGARDING LICENSING AND ENFORCEMENT. Primary Analyst: ME 3/27/23 Contributing Analyst(s): RP, CW Reviewer: RP OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 24 $ FY 25 $ Various Various - Revenue Impact See Below See Below Note: Various=Various Municipal Impact: None Explanation The bill makes various changes to consumer protection statutes resulting in the revenue impact described below. Section 2 requires heating fuel dealers to remove disconnected tanks or equipment from consumers premises within 30 days and establishes a fine of up to $250 for violations resulting in a potential revenue gain to the state to the extent violations occur. Section 2 also reduces certain penalties dealing with written contracts between heating fuel dealers and consumers from maximums of $500 and $1,500 to $250 resulting in a potential revenue loss to the extent these violations occur and fines over $250 would have been levied. Sections 3, 4, 6, 8, 17 and 18 require certain individuals to submit to and cover associated costs for a state criminal history records check resulting in a potential revenue gain to the General Fund and the Applicant Fingerprint Card Submission Account. DESPP conducts state 2023HB-06767-R000229-FN.DOCX Page 2 of 3 background checks for $75 per person and to the extent additional background checks are requested, there is a potential revenue gain to the state. State background checks require fingerprinting, which DESPP conducts for $15 per person resulting in a potential revenue gain to the Applicant Fingerprint Card Submission Account. 1 Section 7 increases the civil penalty for a trade licensing violation to $3,000 resulting in a potential revenue gain to the extent violations occur. This section also creates a new fine of up to $5,000 for apprentice hiring violations resulting in a potential revenue gain to the state to the extent violations occur. Section 9 prorates the fee for new home construction contractors during the transition year 2 resulting in a potential revenue loss to the extent higher license fees would have been paid. This section also prorates the fee to the New Home Construction Guaranty Fund 3 and the Home Improvement Guaranty Fund 4 resulting in a potential revenue loss during the transition year to the extent higher fees would have been paid. Section 15 makes all fines $1,500 instead of a tiered structure starting at $500, resulting in a potential revenue gain to the consumer protection enforcement account 5 to the extent violations occur. Section 20 requires late renewals for (within 90 days of expiration) DCP credentials to pay late fees of 10 percent and applies the existing fee structure to reinstatements resulting in a potential revenue gain to 1 Funds in the non-lapsing Applicant Fingerprint Card Submission Account are used for IT support and maintenance for the fingerprinting systems. 2 New home construction contractor registrations are transitioning from biennial to annual fees in 2023, this eliminates the potential for overcharging certain contractors. 3 The New Home Construction Guaranty Fund is non -appropriated and makes restitution payments to CT consumers for damages caused by licensed New Home construction contractors 4 The Home Improvement Guaranty Fund is non-appropriated and makes restitution payments to CT consumers for damages caused by licensed Home Improvement contractors or salespersons. 5 The Consumer Protection Enforcement Account is a non-appropriated account that funds positions dedicated to the enhanced enforcement of DCP licensing laws and regulations. 2023HB-06767-R000229-FN.DOCX Page 3 of 3 the state to the extent late renewals and reinstatements occur. The bill also makes various minor, technical, and conforming changes to consumer protection statutes resulting in no fiscal impact to the state. The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of licenses applied for, violations, and inflation.