OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-2
AN ACT CONCERNING ARTIFICIAL INTELLIGENCE.
Primary Analyst: ME 4/2/24
Contributing Analyst(s): SB, RDP, LD, WL, MM, BP, PR, ES, EW
Reviewer: RP
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Attorney General GF - Cost 480,000 640,000
Consumer Protection, Dept. GF - Cost 207,000 252,000
Office of Workforce Strategy GF - Cost 100,000 100,000
State Comptroller - Fringe
Benefits
1
GF - Cost 462,000 548,000
Public Health, Dept. GF - Cost 50,000-
200,000
None
Board of Regents for Higher
Education
GF - Cost 50,000 50,000
Department of Administrative
Services
GF - Cost None Up to
25,000
Human Rights & Opportunities,
Com.
GF - Potential
Cost
154,000 235,000
State Comptroller - Fringe
Benefits
2
GF - Potential
Cost
63,000 85,000
Resources of the General Fund GF - Potential
Revenue Gain
Minimal Minimal
Judicial Dept. (Probation);
Correction, Dept.
GF - Potential
Cost
Minimal Minimal
Department of Economic &
Community Development
GF - Cost See below See below
Note: GF=General Fund
Municipal Impact: None
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.
2
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. 2024SB-00002-R000188-FN.DOCX Page 2 of 6
Explanation
The bill makes various changes regarding artificial intelligence
resulting in the fiscal impacts described below.
Sections 1-9 create a regulatory structure for the artificial intelligence
market and task the Office of the Attorney General (OAG) and the
Department of Consumer Protection (DCP) with regulating and
enforcing
3
the requirements of the bill resulting in costs to both agencies.
To meet the requirements of the bill DCP will have to hire three
additional employees
4
for a salary and other expenses cost of $207,000
in FY 25
5
and $252,000 in FY 26, along with associated fringe benefits
costs of $78,000 in FY 25 and $104,000 in FY 26. The additional
employees are needed to regulate the market, monitor compliance, and
receive and investigate complaints.
The OAG will require additional staffing to fulfill the bill's regulatory
requirements related to the new and expanding field of artificial
intelligence. Due to the anticipated, potential workload requirements
and technical expertise, up to seven additional staff members would be
necessary, including: three assistant attorneys general; two IT
specialists; one program manager; and one paralegal specialist. The
annualized personnel cost associated with these positions, including
fringe benefits, is approximately $0.9 million.
Section 10 – 15 creates a new category of discriminatory practice and
results in a potential cost of $154,000 in FY 25 and $235,000 in FY 26 to
the Commission on Human Rights and Opportunities (CHRO) for two
positions
6
and $63,000 in FY 25 and $85,000 in FY 26 for fringe benefits
to address anticipated complaints resulting from the bill.
3
Per section 9 of the bill, violations constitute an unfair trade practice which are
investigated and enforced by the OAG and DCP.
4
The new employees consist of two special investigators and one staff attorney.
5
FY 25 costs reflect 9 months of salary due to the bill's October 1, 2024 effective date.
6
Positions include one Human Rights Attorney 3 with an annual salary of $93,567 and
an IT Analyst 3 with an annual salary of $111,475. Also included is $30,000 for legal
consultants with expertise in artificial intelligence. 2024SB-00002-R000188-FN.DOCX Page 3 of 6
The bill also results in potential revenue from fines assessed by
CHRO. Fines can be between $3,000 and $7,000.
Section 16 establishes an Artificial Intelligence Advisory Council
resulting in no fiscal impact to the state because the Council has the
expertise to meet the requirements of the bill.
Sections 17 and 19 create new misdemeanors and felonies which
result in a potential cost to the Department of Correction and the Judicial
Department for incarceration or probation and a potential revenue gain
from fines. On average, the marginal cost to the state for incarcerating
an offender for the year is $3,300
7
while the average marginal cost for
supervision in the community is less than $800
8
each year for adults and
$1,000 each year for juveniles.
Section 20, which requires DAS, in conjunction with state agencies,
to submit a report to the legislature concerning potential uses of AI
results in no fiscal impact.
Section 21, which requires DAS to develop and provide training to
state employees on the use AI tools and mitigate potential issues by July
1, 2025, will provide a cost of less than $25,000 beginning in FY 26. The
cost has the potential to grow to less than $200,000 per year based on
increased usage.
Section 22 results in an annualized cost of $137,125 by requiring the
Office of Workforce Strategy (OWS) to design and implement an
outreach program to promote broadband access service.
It is anticipated that OWS will require at least one full-time
equivalent staff at a cost of $90,000 in salary and $37,125 in fringe costs
7
Inmate marginal cost is based on increased consumables (e.g., food, clothing, water,
sewage, living supplies, etc.) This does not include a change in staffing costs or utility
expenses because these would only be realized if a unit or facility opened.
8
Probation marginal cost is based on services provided by private providers and only
includes costs that increase with each additional participant. This does not include a
cost for additional supervision by a probation officer unless a new offense is
anticipated to result in enough additional offenders to require additional probation
officers. 2024SB-00002-R000188-FN.DOCX Page 4 of 6
plus an additional $10,000 in other expenses to administer and promote
this program. There is no anticipated cost to develop the program to the
extent that the various agencies noted in the underlying bill as well as
the Office of Telecommunications and Broadband in the Department of
Energy and Environmental Protection, unnamed in the bill, may
provide expertise on broadband access services.
Section 22 also requires OWS to incorporate AI training in workforce
training programs. There is no anticipated impact as OWS already
collaborates their workforce development initiatives with programs that
provide high-skilled technology training opportunities such as the Tech
Talent Accelerator.
Section 23 requires the Board of Regents (BOR) to establish the
Connecticut Citizens Academy. It is anticipated that this will result in a
cost of approximately $50,000 annually, beginning in FY 26. The annual
costs are: (1) Up to $25,000 for course development and formatting and
(2) $25,000 for updating BOR’s existing Learning Management System
and overseeing course registration.
Section 24 requires BOR to establish various AI certificate programs
at CT State community college. This is anticipated to result in a one-time
cost, in FY 25, of less than $50,000 to create the various non-credit
certificate programs, including curriculum development and IT
upgrades. Additionally, Section 24 could result in an annual revenue
gain to BOR due to students paying to engage in the certificate
coursework beginning in FY 26. Non-credit course fees range from $40
- $200. The corresponding revenue gain would be dependent on the set
fee and number of participants.
Section 25 results in a cost of $132,125 annually to the Department of
Economic and Community Development (DECD) to establish a state-
wide research collaborative among health care providers to develop
advanced AI with ethical considerations. It is anticipated that DECD
will require one full-time equivalent staff at an annualized cost of
$90,000 in salary, $37,125 in fringe benefits, and $5,000 in other expenses
to administer the collaborative. 2024SB-00002-R000188-FN.DOCX Page 5 of 6
This section results in an additional one-time cost of $25,000 by
requiring DECD to host the “CT AI Symposium” amongst academia,
government and industry to establish and promote AI businesses in this
state. The actual cost will depend upon the number of participants and
the location of the event.
This section also requires DECD to develop a plan to offer high-
performance computing services to businesses and researchers in this
state by December 1, 2024. It is anticipated that DECD can develop the
plan within existing resources.
Section 26 results in a cost to DECD to administer a competitive grant
program to fund pilot studies regarding using AI to reduce health
inequities in the state. The bill caps each grant at $20,000 but does not
limit the number of grants that may be awarded. The actual cost will
therefore be dependent upon the number of grants awarded.
In order to implement this program, it is anticipated that DECD will
require 1.5 full-time equivalent staff at an annualized cost of $187,156
($132,500 in salary and $54,656 in fringe). This includes one economic
development agent to administer the program and 0.5 fiscal
administrative officer to process the grants.
Section 27 results in a cost to DECD to administer a competitive grant
program to fund pilot programs on clinically integrating algorithms or
utilizing virtual trainings. The bill caps each grant at $75,000 but does
not limit the number of grants that may be awarded. The actual cost will
therefore be dependent upon the number of grants awarded.
In order to implement this program, it is anticipated that DECD will
require 1.5 full-time equivalent staff at an annualized cost of $187,156
($132,500 in salary and $54,656 in fringe). This includes one economic
development agent to administer the program and 0.5 fisc al
administrative officer to process the grants.
Section 28 has no fiscal impact by requiring DECD to designate an
employee as a point of contact for economic development in AI. The 2024SB-00002-R000188-FN.DOCX Page 6 of 6
Chief Innovation Officer (CIO) position within DECD should be able to
act as point of contact in their capacity as CIO.
Section 30 results in a one-time FY 25 Department of Public Health
cost estimated between $50,000 and $200,000 for a study of governance
standards for the use of artificial intelligence by health care providers as
the department lacks required expertise.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to employee wage increases, the number
of fees and fines collected, the number of grants distributed, and
inflation.
The costs associated with section 21 can grow to up to $200,000 per
year based on increased usage.
The costs associated with section 24 are one-time and do not continue
into the out years.