OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6800
AN ACT CONCERNING ELECTRONIC BOOK AND DIGITAL
AUDIOBOOK LICENSING.
Primary Analyst: SB 4/3/23
Contributing Analyst(s): ME
Reviewer: ME
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 24 $ FY 25 $
Consumer Protection, Dept. GF - Potential
Cost
105,299 143,908
State Comptroller - Fringe
Benefits
1
GF - Potential
Cost
45,089 61,621
Library, CT State GF - Potential
Savings
See Below See Below
Higher Education Constituent
Units
Various -
Potential Savings
See Below See Below
Note: GF=General Fund; Various=Various
Municipal Impact:
Municipalities Effect FY 24 $ FY 25 $
Various Municipalities, Various
Local and Regional School
Districts
Potential
Savings
See Below See Below
Explanation
The bill, which establishes parameters for electronic book (e-book)
library contracts and enforcement of those parameters, is a potential cost
to the state due to the enforcement provisions and a potential savings to
public entities that operate libraries, beginning in FY 24.
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 42.82% of payroll in FY 24. 2023HB-06800-R000407-FN.DOCX Page 2 of 3
The bill prohibits certain licensure and contract agreements between
libraries and electronic book publishers and makes violations an unfair
trade practice resulting in a potential cost of $105,299 in FY 24
2
and
$143,908 in FY 25 to the Department of Consumer Protection, and
potential associated fringe benefit costs of $45,089 in FY 24 and $61,621
in FY 25.
To the extent that violations occur DCP may have to hire one special
investigator and one paralegal. These positions will manage and review
the complaints, investigate the cases, and conduct settlement
negotiation and case preparation.
To the extent the bill produces e-book lending terms that are more
favorable to libraries, the bill may result in a savings to public entities
statewide that provide e-books, including the Connecticut State Library
(CSL), the constituent units, various other state agencies, municipalities,
and local and regional boards of education. The extent of annualized
savings would depend upon actual contract terms.
Currently, there are various e-book licensing models implemented
across state agencies and municipalities. The CSL spends approximately
$125,000 annually on e-book content and municipalities aggregately
spend approximately $150,000 per year on e-book content.
The higher education constituent units collectively have over 30
contracts involving e-books. Some of the contracts include terms that the
bill prohibits, such as restrictions on interlibrary loaning. The bill's
removal of those terms potentially results in savings associated with less
costly e-book acquisition, as well as expanded interlibrary loan access.
The extent of the potential savings depends on contract terms, the cost
differential between e-books and traditional books, and the extent to
which interlibrary loan access reduces a library's need to independently
purchase content.
2
Costs for FY 24 reflect 9 months of expenditures due to the bill's October 1
st
effective
date. 2023HB-06800-R000407-FN.DOCX Page 3 of 3
The Out Years
The ongoing fiscal impact identified above would continue into the
future subject to inflation and contract terms.