OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-5352
AN ACT CONCERNING MINOR REVISIONS TO THE TIRE
STEWARDSHIP PROGRAM.
As Amended by House "A" (LCO 4244)
House Calendar No.: 195
Primary Analyst: JS 4/26/24
Contributing Analyst(s):
Reviewer: MP
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Department of Energy and
Environmental Protection
GF - Revenue
Loss
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill lowers the allowable fee that the Department of Energy and
Environmental Protection (DEEP) may charge to tire stewardship
organizations, which results in an annual General Fund revenue loss
beginning in FY 25.
The department had been planning to charge the maximum
allowable fee to such organizations, which is currently ten percent of
total tire stewardship organization costs. The bill reduces the allowable
fee to five percent of such costs.
The amount of the revenue loss, equivalent to five percent of total tire
stewardship program costs, is dependent on such total costs, which are
not currently known. Stewardship organizations must be formed
during FY 25, which is presumably when DEEP would begin to charge
the fee. To the extent the fee can be charged annually, the bill results in
an annual revenue loss. 2024HB-05352-R010623-FN.DOCX Page 2 of 2
The bill's revenue loss may result in the General Fund absorbing
some of the DEEP personnel costs of administering the tire stewardship
program. The personnel costs are expected to be less than $50,000
(including fringe benefits), as DEEP anticipates administration of the
tire and gas cylinder stewardship programs will require an additional
0.5 full-time equivalent position beginning in FY 25.
House "A" makes procedural changes to the tire stewardship plan
approval process and adds a tire stewardship organization
responsibility. These changes have no fiscal impact.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to tire stewardship organization costs.