OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sHB-5413 AN ACT CONCERNING THE ILLEGAL USE OF CERTAIN VEHICLES AND STREET TAKEOVERS. Primary Analyst: LG 4/10/24 Contributing Analyst(s): ME, BP, RP Reviewer: RW OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 25 $ FY 26 $ Policy & Mgmt., Off. GF - Cost 107,700 105,900 Policy & Mgmt., Off. GF - Cost Potential Significant Potential Significant State Comptroller - Fringe Benefits 1 GF - Cost 43,500 43,500 Note: GF=General Fund Municipal Impact: Municipalities Effect FY 25 $ FY 26 $ Various Municipalities Potential Cost Minimal Minimal Various Municipalities Savings See Below See Below Various Municipalities Potential Revenue Gain See Below See Below Explanation The bill results in various fiscal impacts described below regarding changes to street takeovers and the illegal use of motor vehicles. Sections 1 and 2 allows municipalities to (1) seize certain all-terrain vehicles (ATVs) that violate a local ordinance if the municipality mails 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 41.25% of payroll in FY 25. 2024HB-05413-R000453-FN.DOCX Page 2 of 3 a letter to the owner or lienholder first and (2) destroy the vehicles instead of requiring them to be stored or sold at a public auction. This may result in a potential cost to municipalities to the extent that more ATVs are seized. There is also a potential savings to municipalities to the extent they no longer have to store or auction the vehicles. These sections have no impact on municipalities that have not adopted an ordinance on the operation of ATVs. Section 3 allows municipalities to adopt an ordinance prohibiting street takeovers and allows fines to be set for the violation of this ordinance. There is a potential revenue gain to municipalities beginning in FY 25 to the extent that the ordinance is adopted, and fines are issued for violations. The section allows fines to be set up to $1,000 for the first violations, $1,500 for the second violations, and $2,000 for all subsequent violations. Section 4 makes various changes to certain license penalties that does not result in an impact to the state or municipalities. Section 5 adds several municipal ordinance violations to the list of offenses for which fines are payable to the Centralized Infraction Bureau (CIB). This may result in a potential revenue gain to municipalities from fines to the extent that municipalities create ordinances and that violations occur. Section 6 requires the Office of Policy and Management (OPM) to administer grants to municipalities to support enforcement of street takeover and ATV regulations ordinances. The grants must be at least $500,000 and specific uses are outlined in the bill. The section also requires OPM to develop grant application forms, post grant information online, and annually report on the program. This results in a cost of approximately $105,900 in FY 25 and FY 26 to OPM for a Lead Planning Analyst, training and supplies, and a one-time cost of $1,760 in FY 25 for equipment costs. The is also a cost of $43,500 in FY 25 and FY 26 to the Office of the State Comptroller for associated fringe benefits. 2024HB-05413-R000453-FN.DOCX Page 3 of 3 The section also results in a cost to OPM for grant funds of at least $500,000 to each municipality and a corresponding potential revenue gain to municipalities beginning in FY 25. The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation, the number of vehicles seized, fines, violations issued, and grants administered to municipalities.