OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa SB-1035 AN ACT CONCERNING LIMITATIONS ON THE USE OF NONDISCLOSURE AGREEMENTS. Primary Analyst: CR 4/2/25 Contributing Analyst(s): LG, WL, BP Reviewer: MM OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 26 $ FY 27 $ Various State Agencies App Fund - Potential Cost See Below See Below Note: App Fund=All Appropriated Funds Municipal Impact: Municipalities Effect FY 26 $ FY 27 $ All Municipalities Potential Cost See Below See Below Explanation The bill creates a specific state civil cause of action for violations of the bill’s provisions. This could potentially result in a cost to the state and municipalities in their capacity as employers beginning in FY 26 to the extent they violate the provisions of the bill. Each violation may result in a cost of $10,000 for actual or statutory damages. The court system disposes of over 250,000 cases annually and the number of cases is not anticipated to be great enough to need additional resources. The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of violations of the provisions of the bill.