Fiscal Note - 2644 HB AI-Enabled Profiling (Final 1/31/2020)

Summary

A multiple agency fiscal note summary for bill number 2644 HB, titled AI-enabled profiling, final 1/31/2020, with the Administrative Office of the Courts and the Office of Attorney General as listed agencies. The summary lists estimated cash receipts as none. It lists the Office of Attorney General's General Fund-State operating expenditures as 171,000 for 2019-21, 259,500 for 2021-23 and 88,500 for 2023-25. The judicial impact fiscal note for the Administrative Office of the Courts gives a non-zero but indeterminate cost, and its narrative states the expenditures are indeterminate but expected to be minimal and that the bill would create a new civil cause of action.

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“Fiscal Note - 2644 HB AI-Enabled Profiling (Final 1/31/2020).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-01-29-a26392-d212483-2644-fn-941f493374/, SHA-256 0de5cb226c716b8a2836468a03b6b20119fd9ae7e25f97415818cceeaa9be30f.

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Multiple Agency Fiscal Note Summary
Bill Number: 2644 HB Title: AI-enabled profiling

Estimated Cash Receipts
NONE

Estimated Operating Expenditures
Agency Name 2019-21 2021-23 2023-25
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Administrative Office of Non-zero but indeterminate cost and/or savings. Please see discussion.
the Courts
Office of Attorney .5 171,000 171,000 .7 259,500 259,500 .2 88,500 88,500
General

Total $ 0.5 171,000 171,000 0.7 259,500 259,500 0.2 88,500 88,500

Local Gov. Courts Non-zero but indeterminate cost and/or savings. Please see discussion.

Loc School dist-SPI
Local Gov. Other
Local Gov. Total

Estimated Capital Budget Expenditures
Agency Name 2019-21 2021-23 2023-25
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Administrative Office of .0 0 0 .0 0 0 .0 0 0
the Courts
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 1/31/2020

FNPID: 59265

FNS029 Multi Agency rollup
Judicial Impact Fiscal Note

Bill Number: 2644 HB Title: AI-enabled profiling Agency: 055-Administrative Office
of the Courts

Part I: Estimates
No Fiscal Impact

Estimated Cash Receipts to:

NONE

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

The revenue and expenditure estimates on this page represent the most likely fiscal impact. Responsibility for expenditures may be
subject to the provisions of RCW 43.135.060.
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
form Parts I-V.
X 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.

Legislative Contact Yelena Baker Phone: 360-786-7301 Date: 01/27/2020
Agency Preparation: Sam Knutson Phone: 360-704-5528 Date: 01/28/2020
Agency Approval: Sam Knutson Phone: 360-704-5528 Date: 01/28/2020
OFM Review: Gaius Horton Phone: (360) 902-0608 Date: 01/28/2020

156,907.00 Request # 2644 HB-1
Form FN (Rev 1/00) 1 Bill # 2644 HB
FNS061 Judicial Impact Fiscal Note
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact on the Courts
Please see attached Judicial Impact Note (JIN).

II. B - Cash Receipts Impact

II. C - Expenditures

Part III: Expenditure Detail
III. A - Expenditure By Object or Purpose (State)
Non-zero but indeterminate cost and/or savings. Please see discussion.

III. B - Expenditure By Object or Purpose (County)
Non-zero but indeterminate cost and/or savings. Please see discussion.

III. C - Expenditure By Object or Purpose (City)
Non-zero but indeterminate cost and/or savings. Please see discussion.
III. D - FTE Detail
NONE
III. E - Expenditures By Program (optional)
NONE

Part IV: Capital Budget Impact

156,907.00 Request # 2644 HB-1
Form FN (Rev 1/00) 2 Bill # 2644 HB
FNS061 Judicial Impact Fiscal Note
Part II: Narrative Explanation

This bill would prohibit operation or installation of equipment that incorporates artificial
intelligence (AI) enabled profiling in any public place. The bill would prohibit the use of AI-
enabled profiling to make decisions that would produce legal or similar effects.

Part II.A – Brief Description of what the Measure does that has fiscal impact on
the Courts

Section 3(1) – Would provide that a person may not operate, install, or commission the
operation or installation of equipment incorporating AI-enabled profiling in any place of public
resort, accommodation, assemblage, or amusement.

Section 3(2) – Would provide that a person may not use AI-enabled profiling to make decisions
that produce legal effects or similarly significant effects concerning consumers.

Section 4 – Would provide that any consumer aggrieved by a violation of this bill would have a
right of action in any court against the offending party. A plaintiff prevailing in an action under
this bill could recover actual damages, reasonable attorneys’ fees and costs, and other relief as
appropriate.

There is no effective date provided for this bill, so it is assumed that the bill would be effective
90 days sine die.

II.B - Cash Receipt Impact

None.

II.C – Expenditures

Indeterminate, but expected to be minimal. There is no data available to estimate the number of
civil cases that would result from this bill.

This bill would create a new civil cause of action. IT system modifications and judicial education
would be required. These impacts would be managed within existing resources.

JUDICIAL IMPACT FISCAL NOTE BILL# 2644 HB
Individual State Agency Fiscal Note

Bill Number: 2644 HB Title: AI-enabled profiling 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 0.9 0.5 0.7 0.2
Account
General Fund-State 001-1 0 171,000 171,000 259,500 88,500
Total $ 0 171,000 171,000 259,500 88,500

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.

Requires new rule making, complete Part V.

Legislative Contact: Yelena Baker Phone: 360-786-7301 Date: 01/27/2020
Agency Preparation: Michael Shinn Phone: 360-759-2122 Date: 01/30/2020
Agency Approval: Edd Giger Phone: 360-586-2104 Date: 01/30/2020
OFM Review: Gwen Stamey Phone: (360) 902-9810 Date: 01/31/2020

Form FN (Rev 1/00) 157,702.00 Request # 94-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2644 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, and create a new chapter in Title 19 RCW.

Section 1 is a findings section, finding that profiling using artificial intelligence to surveil and classify consumers
threatens the rights and privileges of Washingtonians.

Section 2 is a definitions section, and defines artificial intelligence-enabled profiling.

Section 3 bars operation or installation of equipment incorporating artificial intelligence-enabled profiling in any
place of public accommodation as defined in RCW 49.60.040.

Section 4 makes violations of the chapter unfair business practices under chapter 19.86 RCW. A private cause of
action is created, and prevailing plaintiffs are allowed to recover actual damages and statutory damages of not
less than $1,000 per violation, attorney fees and costs, and expert witness fees and expenses.
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.

The Attorney General’s Office (AGO) Civil Rights Division (CRD) activities are funded with General
Fund-State dollars. No cash receipt impact. There is no client agency to bill for legal services.

AGO Consumer Protection Division (CPR) 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.

Attorney General’s Office (AGO) Agency Assumptions:

1. This bill is assumed effective 90 days after the end of the 2020 legislative session.

2. Expenditures associated with the enactment of this bill and identified in this report are assumed to be
activities that will be co-litigated by the AGO Civil Rights Division (CRD) and the Consumer Protection
Division (CPR). Both divisions are funded with State General Funds.

3. Agency administration support FTEs are included in the tables below, using a Management Analyst 5 as a
representative classification.

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

1. AGO CPR activities are funded with General Fund-State dollars. There is no appropriate client agency to bill

AI-enabled profiling 100-Office of Attorney General
Form FN (Rev 1/00) 157,702.00 Request # 94-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2644 HB
for legal services.

2. CPR assumes most investigations will be for the use of artificial intelligence, rather than installation.

3. CPR assumes two full investigations in both FY 2021 and FY 2022.

4. CPR assumes one full investigation per FY in FY 2023 and FY 2024.

5. CPR assumes investigations will result in court action, but the cases can be resolved on summary judgment
with no trial.

6. Litigation Costs:

A. Absolute prohibitions will not require expert review. If expert witnesses are needed, that will increase
direct costs by $200,000 per investigation or case. These costs are not included in this request.

B. FY 2021 and FY 2022: $15,000 for depositions and deposition-related costs; $25,000 for
e-discovery/Everlaw capacity.

C. FY 2023 and FY 2024: $7,500 for deposition and deposition-related costs; $12,500 for
ediscovery/-Everlaw platform storage.

7. CPR assumes the industry will adapt to restrictions and investigations will subside beginning in FY 2025.
Legal services necessary are assumed nominal and will be provided with existing resources.

8. Total CPR workload impact:
FY 2021 and FY 2022: 0.25 Assistant Attorney General (AAG), 0.13 Legal Assistant (LA), 0.11 Investigator
(INV) and 0.17 Paralegal (PL) at a cost of $141,000 per FY (this includes $40,000 of litigation costs per FY).
FY 2023 and FY 2024: 0.13 AAG, 0.07 LA, 0.06 INV and 0.08 PL at a cost of $71,500 per FY (this includes
$20,000 of litigation costs per FY).

9. Total CRD workload impact (co-litigation):
FY 2021 and FY 2022: 0.12 AAG and 0.06 LA at a cost of $30,000 per FY.
FY 2023 and FY 2024: 0.07 AAG at a cost of $17,000 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 0 171,000 171,000 259,500 88,500
Total $ 0 171,000 171,000 259,500 88,500

AI-enabled profiling 100-Office of Attorney General
Form FN (Rev 1/00) 157,702.00 Request # 94-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2644 HB
III. B - Expenditures by Object Or Purpose
FY 2020 FY 2021 2019-21 2021-23 2023-25
FTE Staff Years 0.9 0.5 0.7 0.2
A-Salaries and Wages 85,000 85,000 130,000 45,000
B-Employee Benefits 29,000 29,000 44,000 15,000
C-Professional Service Contracts 15,000 15,000 22,500 7,500
E-Goods and Other Services 40,000 40,000 61,000 21,000
G-Travel 1,000 1,000 1,000
J-Capital Outlays 1,000 1,000 1,000
Total $ 0 171,000 171,000 259,500 88,500

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 0.4 0.2 0.3 0.1
Legal Assistant 3-Seattle 63,048 0.2 0.1 0.2 0.1
Management Analyst 5 88,644 0.1 0.1 0.1
Paralegal 2-Seattle 70,608 0.2 0.1 0.1 0.0
Senior Investigator-Seattle 92,652 0.1 0.1 0.1 0.0
Total FTEs 0.9 0.5 0.7 0.2

III. D - Expenditures By Program (optional)
Program FY 2020 FY 2021 2019-21 2021-23 2023-25
Consumer Protection Division (CPR) 141,000 141,000 212,500 71,500

Civil Rights Division (CRD) 30,000 30,000 47,000 17,000

Total $ 171,000 171,000 259,500 88,500

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

AI-enabled profiling 100-Office of Attorney General
Form FN (Rev 1/00) 157,702.00 Request # 94-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 2644 HB

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