Multiple Agency Fiscal Note - 2396 HB, Bot communication (2020)

Summary

A multiple agency fiscal note summary for 2396 HB, titled "Bot communication," published Final 1/17/2020, with individual fiscal notes from the Public Disclosure Commission and the Office of Attorney General. The Public Disclosure Commission note says its cost estimates are indeterminate and that it would engage in rulemaking on Section 6 within its normal rulemaking schedule. The Office of Attorney General note puts the workload impact at a cost of $30,000 for FY 2021 and $64,000 for FY 2022 and each FY thereafter. It describes Section 5 as making violations of the chapter an unfair business practice under chapter 19.86 RCW.

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“Multiple Agency Fiscal Note - 2396 HB, Bot communication (2020).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-01-24-a26338-d210482-2396-fn-2738ed831e/, SHA-256 2292bb6f4dd26a74756d111c2462455859e024c3796534b3b01458af7a015fbc.

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Multiple Agency Fiscal Note Summary
Bill Number: 2396 HB Title: Bot communication.

Estimated Cash Receipts
Agency Name 2019-21 2021-23 2023-25
GF- State Total GF- State Total GF- State Total
Public Disclosure Commission Non-zero but indeterminate cost and/or savings. Please see discussion.

Total $ 0 0 0 0 0 0

Estimated Operating Expenditures
Agency Name 2019-21 2021-23 2023-25
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Public Disclosure Non-zero but indeterminate cost and/or savings. Please see discussion.
Commission
Office of Attorney .1 30,000 30,000 .4 128,000 128,000 .4 128,000 128,000
General

Total $ 0.1 30,000 30,000 0.4 128,000 128,000 0.4 128,000 128,000

Estimated Capital Budget Expenditures
Agency Name 2019-21 2021-23 2023-25
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Public Disclosure .0 0 0 .0 0 0 .0 0 0
Commission
Office of Attorney .0 0 0 .0 0 0 .0 0 0
General

Total $ 0.0 0 0 0.0 0 0 0.0 0 0

Estimated Capital Budget Breakout

Prepared by: Gwen Stamey, OFM Phone: Date Published:
(360) 902-9810 Final 1/17/2020

FNPID: 58424

FNS029 Multi Agency rollup
Individual State Agency Fiscal Note

Bill Number: 2396 HB Title: Bot communication. Agency: 082-Public Disclosure
Commission

Part I: Estimates
No Fiscal Impact

Estimated Cash Receipts to:
Non-zero but indeterminate cost and/or savings. Please see discussion.

Estimated Operating Expenditures from:
Non-zero but indeterminate cost and/or savings. Please see discussion.

Estimated Capital Budget Impact:

NONE

The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.

Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).

Capital budget impact, complete Part IV.

X Requires new rule making, complete Part V.

Legislative Contact: Kyle Raymond Phone: 360-786-7190 Date: 01/13/2020
Agency Preparation: Barbara Sandahl Phone: 360-586-1042 Date: 01/16/2020
Agency Approval: Barbara Sandahl Phone: 360-586-1042 Date: 01/16/2020
OFM Review: Gwen Stamey Phone: (360) 902-9810 Date: 01/17/2020

Form FN (Rev 1/00) 154,169.00 Request # 2396-1-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2396 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.

Section 6 of the bill prohibits the use of an online automated account (bot) to communicate political advertising
with the intent to deceive the recipient about the content of the communication, unless the advertisement includes
a disclaimer that is has been communicated by a bot. The PDC has jurisdiction to enforce the prohibition and
compliance with the disclosure.

Cost estimates are indeterminate. The PDC does not currently investigate bot activity and has no data or method
to estimate the number of qualifying bots that are currently used to communicate online political advertising, in
order to estimate how many inquiries or complaints will be received by the agency regarding the new prohibition.
The PDC does not currently have the technical expertise to determine the amount of resources required to
conduct such investigations per case. However, the PDC assumes that some investigatory activity would be
referred to the AGO, under the AGO’s authority provided by this bill for the AGO to requires reports from online
platforms.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.

None
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.

Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Non-zero but indeterminate cost and/or savings. Please see discussion.
III. B - Expenditures by Object Or Purpose
Non-zero but indeterminate cost and/or savings. Please see discussion.

III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
NONE

III. D - Expenditures By Program (optional)
NONE

Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE

Bot communication. 082-Public Disclosure Commission
Form FN (Rev 1/00) 154,169.00 Request # 2396-1-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2396 HB
IV. B - Expenditures by Object Or Purpose
NONE

IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE

Part V: New Rule Making Required
Identify provisions of the measure that require the agency to adopt new administrative rules or repeal/revise existing rules.

The PDC would engage in rulemaking to expound on the required intent and the knowing deception of the communication,
as prohibited under Section 6(1), as well as the disclosure standard under section 6(3). This would be completed within the
PDC’s normal rulemaking schedule without the need for additional resources.

Bot communication. 082-Public Disclosure Commission
Form FN (Rev 1/00) 154,169.00 Request # 2396-1-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2396 HB
Individual State Agency Fiscal Note

Bill Number: 2396 HB Title: Bot communication. Agency: 100-Office of Attorney
General

Part I: Estimates
No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
FY 2020 FY 2021 2019-21 2021-23 2023-25
FTE Staff Years 0.0 0.2 0.1 0.4 0.4
Account
General Fund-State 001-1 0 30,000 30,000 128,000 128,000
Total $ 0 30,000 30,000 128,000 128,000

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Kyle Raymond Phone: 360-786-7190 Date: 01/13/2020
Agency Preparation: Michael Shinn Phone: 360-759-2122 Date: 01/16/2020
Agency Approval: Diana Arens Phone: 3605869346 Date: 01/16/2020
OFM Review: Gwen Stamey Phone: (360) 902-9810 Date: 01/17/2020

Form FN (Rev 1/00) 155,083.00 Request # 027-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2396 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.

All sections are new; Sections 1 through 5 are a new chapter in Title 19 RCW; Section 6 is a new section in
Chapter 42.17A RCW.

Section 1 is a definition section, and defines bot as an automated online account where the actions or posts are
not the result of a person. Online platform is also defined.

Section 2 prohibits using a bot to contact a Washington person online for purposes of making a purchase or sale
of goods or services. The prohibition does not apply if a person using a bot discloses that fact clearly and
conspicuously.

Section 3 requires online platforms to enable users to identify and report bots. Platforms are obligated to
investigate and remove bots and provided with a 72 hour response window.

Section 4 is a severance clause.

Section 5 makes violations of the chapter an unfair business practice under chapter 19.86 RCW.

Section 6 prohibits the undisclosed use of bots to communicate with persons in Washington for purposes of
political advertising.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.

AGO Consumer Protection activities are funded with General Fund-State dollars. No cash receipt impact. There
is no client agency to bill for legal services.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.

AGO Agency Assumptions:

1. Legal services associated with the enactment of this bill will begin on January 1, 2021.

2. If there is a legal challenge to the bill, it will be defended by the Solicitor General’s Office (SGO). These
costs are not included in this request. The SGO has reviewed this bill and determined it will not increase or
decrease the division’s workload. None of SGO’s clients will need additional advice or representation based on
the new requirements in this bill. New legal services are assumed to be nominal and costs are not included in
this request.

Assumptions for the AGO Consumer Protection (CPR) Division Legal Services:

Bot communication. 100-Office of Attorney General
Form FN (Rev 1/00) 155,083.00 Request # 027-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2396 HB
1. AGO CPR activities are funded with General Fund-State dollars. CPR enforces the Consumer Protection Act
with respect to conduct that is made unlawful under RCW 19.86.020, which broadly prohibits unfair or deceptive
acts or practices in trade or commerce. CPR focus is on representations and failures to disclose terms and
conditions.

2. Beginning January 2022, CPR assumes three investigations per year with one resulting in a court-filed
resolution. Resolution will not require a trial.

3. Assistant Attorney General (AAG) workload includes, but is not limited to investigation of potential
violations; draw conclusions from investigation; draft Civil Investigative Demand (CID)/discovery requests,
engage in settlement negotiations, file lawsuit.

4. A high-tech Investigator (INV) will play large role in investigations. Workload includes, but is not limited to
Interviews of witnesses; test/copy/investigate websites to determine if bots are used; review investigative records.

5. Paralegal (PL) workload includes, but is not limited to management of documents, draft CID/discovery
requests and manage responses; assist with legal pleadings and research.

6. Investigation costs include:

A. FY 2021:
$500 per FY for investigation deposition and travel costs.
$1,300 per FY for document management costs (e-discovery).

B. FY 2022:
$1,000 per FY for investigation deposition and travel costs.
$2,500 per FY for document management costs (e-discovery).

7. Total workload impact:
FY 2021: 0.05 AAG-SEA and 0.10 INV-SEA at a cost of $30,000 (this includes direct litigation costs of
$1,800).
FY 2022 and in each FY thereafter: 0.10 AAG-SEA, 0.05 Legal Assistant (LA-SEA), 0.05 PL and 0.20 INV
at a cost of $64,000 (this includes direct litigation costs of $3,500 per FY).
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2020 FY 2021 2019-21 2021-23 2023-25
001-1 General Fund State 0 30,000 30,000 128,000 128,000
Total $ 0 30,000 30,000 128,000 128,000

Bot communication. 100-Office of Attorney General
Form FN (Rev 1/00) 155,083.00 Request # 027-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2396 HB
III. B - Expenditures by Object Or Purpose
FY 2020 FY 2021 2019-21 2021-23 2023-25
FTE Staff Years 0.2 0.1 0.4 0.4
A-Salaries and Wages 18,000 18,000 78,000 78,000
B-Employee Benefits 6,000 6,000 26,000 26,000
C-Professional Service Contracts
E-Goods and Other Services 5,000 5,000 20,000 20,000
G-Travel 1,000 1,000 4,000 4,000
J-Capital Outlays
Total $ 0 30,000 30,000 128,000 128,000

III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA

Job Classification Salary FY 2020 FY 2021 2019-21 2021-23 2023-25
Assistant Attorney General-Seattle 110,256 0.1 0.0 0.1 0.1
Legal Assistant 3 (Seattle) 64,944 0.1 0.1
Paralegal 2-Seattle 70,608 0.1 0.1
Senior Investigator-Seattle 92,652 0.1 0.1 0.2 0.2
Total FTEs 0.2 0.1 0.4 0.4

III. D - Expenditures By Program (optional)
Program FY 2020 FY 2021 2019-21 2021-23 2023-25
Consumer Protection Division (CPR) 30,000 30,000 128,000 128,000

Total $ 30,000 30,000 128,000 128,000

Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE

IV. B - Expenditures by Object Or Purpose
NONE

IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE

Part V: New Rule Making Required

Bot communication. 100-Office of Attorney General
Form FN (Rev 1/00) 155,083.00 Request # 027-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 2396 HB

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