OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-428
AN ACT CONCERNING BUSINESS REGISTRATIONS FILED WITH
THE SECRETARY OF THE STATE.
Primary Analyst: TM 4/16/24
Contributing Analyst(s): ME, LG, MM, BP
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $
Secretary of the State GF - Potential
Revenue Gain
Minimal Minimal
Secretary of the State GF - Cost Approximately
200,000
None
Attorney General GF - Potential
Cost
Significant Significant
Judicial Dept. (Probation);
Correction, Dept.
GF - Potential
Cost
Minimal Minimal
Resources of the General Fund GF - Potential
Revenue Gain
Minimal Minimal
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 25 $ FY 26 $
All Municipalities Revenue
Gain
Potential Potential
Explanation
The bill makes various changes in laws that govern certain business
entities and results in the costs and revenue gains outlined below.
Sections 17-21, requires companies to file an amendment under
certain conditions and imposes a $25 fee for doing so, resulting in
potential revenue to the Secretary of the State (SOTS). The exact revenue
gain will depend on the number of amended filings created by the bill. 2024SB-00428-R000533-FN.DOCX Page 2 of 3
Section 36, requires SOTS to develop an electronic system for filing
and searching for trade name certificates. This has a cost of
approximately $200,000 to develop and implement. SOTS expects to be
able to provide the training necessary for municipalities to utilize the
new system within existing resources.
Section 39 results in a potential revenue gain to municipalities
beginning in FY 25 associated with a $20 fee collected by town clerks for
recording trade name renewals, amendments, and cancellation fees.
Any revenue gain will depend on the number of filings.
Sections 41-43 46 and 47, create a requirement for the Office of the
Attorney General to take certain enforcement actions within a
designated timeline and results in a potential cost. The cost associated
depends on the additional staffing and resources required to meet the
provisions of the bill.
Section 44 empowers the SOTS to issue interrogatories to LLCs under
the Connecticut Uniform Limited Liability Company Act or a statutory
trust operating under the Connecticut Trust Act and any of the trustees
and results in potential revenue to the Resources of the General Fund.
The bill requires compliance in response to interrogatories and imposes
a penalty of $500 for any member, manager, trust, or trustees who fail
to respond in a manner that is timely, truthful, and complete. The exact
revenue created and will depend on the number of violations and
penalties imposed.
Section 52 expands an existing class D felony for perjury, which
results in a potential cost to the Department of Correction and the
Judicial Department for incarceration or probation and a potential
revenue gain to the General Fund from fines. On average, the marginal
cost to the state for incarcerating an offender for the year is $3,300
1
while
the average marginal cost for supervision in the community is less than
1
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. 2024SB-00428-R000533-FN.DOCX Page 3 of 3
$800
2
each year for adults.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation, the number of violations,
and applications completed.
2
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.