Multiple Agency Fiscal Note Summary - 2773 HB, Motor vehicle share & rental
Summary
A Multiple Agency Fiscal Note Summary for 2773 HB, titled Motor vehicle share & rental, prepared by Jason Brown of OFM, followed by the individual fiscal note of the Office of Attorney General. The summary lists estimated cash receipts as NONE and estimated operating expenditures for the Office of Attorney General, the Department of Revenue and the Office of Insurance Commissioner. For the Office of Attorney General it shows 89,000 in the 2019-21 column and 269,000 in the 2021-23 column. The Office of Insurance Commissioner shows a total of 20,853 in the 2019-21 column.
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“Multiple Agency Fiscal Note Summary - 2773 HB, Motor vehicle share & rental.”
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, SHA-256 7c22703a5c3a9f4dfee0dc26584e78625e02edc6b0d6453b447b10c4012a7677.Full text
Multiple Agency Fiscal Note Summary
Bill Number: 2773 HB Title: Motor vehicle share & rental
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
Office of Attorney .3 89,000 89,000 .8 269,000 269,000 .5 178,000 178,000
General
Department of Revenue .0 0 0 .0 0 0 .0 0 0
Office of Insurance .1 0 20,853 .1 0 23,553 .0 0 5,400
Commissioner
Total $ 0.4 89,000 109,853 0.9 269,000 292,553 0.5 178,000 183,400
Estimated Capital Budget Expenditures
Agency Name 2019-21 2021-23 2023-25
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Office of Attorney .0 0 0 .0 0 0 .0 0 0
General
Department of Revenue .0 0 0 .0 0 0 .0 0 0
Office of Insurance .0 0 0 .0 0 0 .0 0 0
Commissioner
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
Prepared by: Jason Brown, OFM Phone: Date Published:
(360) 902-0539 Final 2/ 8/2020
FNPID: 59829
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 2773 HB Title: Motor vehicle share & rental 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 0.5 0.3 0.9 0.5
Account
General Fund-State 001-1 0 89,000 89,000 269,000 178,000
Total $ 0 89,000 89,000 269,000 178,000
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: Robbi Kesler Phone: 360-786-7153 Date: 02/03/2020
Agency Preparation: Cam Comfort Phone: (360) 664-9429 Date: 02/06/2020
Agency Approval: Dianna Wilks Phone: 360-709-6463 Date: 02/06/2020
OFM Review: Gwen Stamey Phone: (360) 902-9810 Date: 02/07/2020
Form FN (Rev 1/00) 158,535.00 Request # 121-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2773 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.
Sections 3 and 4 are new sections providing requirements for the peer-to-peer vehicle-sharing program.
Section 5 is a new section pertaining to authorized insurers.
Section 6 is a new section requiring the program to collect and verify certain records.
Section 7 is a new section authorizing a motor vehicle insurer to seek contribution against the program.
Section 8 is a new section granting the program an insurable interest in a vehicle during the sharing period.
Section 9 is a new section requiring certain disclosures to an owner and driver.
Section 10 is a new section imposing sole responsibility on the program for equipment.
Section 11 is a new section imposing requirements on the program when the owner registers a vehicle for use in a
program.
Section 12 is a new section imposing certain restrictions on a program with respect to entering into an agreement
with a driver.
Section 13 is a new section creating a consumer protection violation for any violation of this chapter.
Section 14 is a new section pertaining to taxes under Title 82 RCW.
Sections 16 and 17 are new sections pertaining to disclosure.
Section 18 is a new section pertaining to agreements with airports.
Section 19 is a new section pertaining to inspecting a customer’s drivers license.
Section 22 provides this act takes effect January 1, 2021.
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.
Attorney General’s Office (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.
Motor vehicle share & rental 100-Office of Attorney General
Form FN (Rev 1/00) 158,535.00 Request # 121-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2773 HB
Attorney General’s Office (AGO) Agency Assumptions:
1. Legal services associated with the enactment of this bill will begin on January 1, 2021.
2. Agency administration support FTEs are included in the tables below, using a Management Analyst 5 as a
representative classification.
3. The AGO Government Compliance & Enforcement Division (GCE) has reviewed this bill and determined it
will not significantly increase the division’s workload in representing the Office of the Insurance Commissioner.
This bill requires peer-to-peer vehicle sharing programs to maintain liability coverage for loss or injury that
occurs during a defined sharing period. It also permits personal auto insurers to add certain exclusion to policies
issued to “owners.” GCE assumes to be asked for advice regarding the new auto policy form exclusions, and
legal services will be provided with existing resources. Costs are not included in this request.
Assumptions for the AGO Consumer Protection Division (CPR) Legal Services:
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.
1. The AGO assumes the Office of the Insurance Commissioner (OIC) will handle complaints about insurance
coverage and insurance denial and CPR will not investigate or handle these complaints.
2. CPR assumes many consumers will start using service without being fully aware of the program so they will
file a lot of complaints in FY 2021 and FY 2022.
3. CPR assumes most CPR investigations and legal action will involve failure to disclose information about
liability limits, proper use and care of vehicle, and other issues that are legally required or required to avoid being
unfair or deceptive.
4. CPR assumes three investigations in FY 2021, five investigations in FY 2022, and three investigations in
FY2023 and in each FY thereafter. CPR assumes one case per FY will be investiagted through litigation, but
resolved before trial. Legal services include, but are not limited to:
A. Assistant Attorney General (AAG): Oversee investigation, issue Civil Investigative Demands, obtain and
review documentary evidence, evaluate evidence, make recommendations on potential legal action, and handle
legal action.
B. Investigators (INV): Review documents, interview witnesses, perform other investigative tasks as assigned
by AAG.
C. Paralegal (PL): Manage and review documents and assist with investigation and litigation as requested by
AAG.
D. Program Specialist 3 (PS3): New law will result in a need for consumer outreach and education.
Motor vehicle share & rental 100-Office of Attorney General
Form FN (Rev 1/00) 158,535.00 Request # 121-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2773 HB
E. Program Specialist 2 (PS2): New law will result in increased need for handling consumer complaint;
additional work processing consumer complaints and telephone calls added to current workload
5. Additional litigation costs:
FY 2021: $5,000 for depositions and deposition-related costs; $5,000 for e-discovery/Everlaw capacity.
FY 2022: $10,000 for depositions and deposition-related costs; $10,000 for e-discovery/Everlaw capacity.
FY 2023 and in each FY thereafter: $5,000 for depositions and deposition-related costs; $5,000 for
e-discovery/Everlaw capacity.
6. Total workload impact of Seattle based FTE:
FY 2021: 0.13 AAG, 0.11 PL, 0.22 INV and 0.07 Legal Assistant (LA) at a cost of $89,000 (this includes
litigation costs of $10,000).
FY 2022: 0.25 AAG, 0.17 PL, 0.44 INV, 0.13 LA, 0.05 PS3 and 0.6 PS2 at a cost of $180,000 (this includes
litigation costs of $20,000).
FY 2023 and in each FY thereafter: 0.13 AAG, 0.11 PL, 0.22 INV and 0.07 Legal Assistant (LA) at a cost of
$89,000 (this includes litigation costs of $10,000).
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 89,000 89,000 269,000 178,000
Total $ 0 89,000 89,000 269,000 178,000
III. B - Expenditures by Object Or Purpose
FY 2020 FY 2021 2019-21 2021-23 2023-25
FTE Staff Years 0.5 0.3 0.9 0.5
A-Salaries and Wages 51,000 51,000 154,000 102,000
B-Employee Benefits 17,000 17,000 52,000 34,000
E-Goods and Other Services 20,000 20,000 60,000 40,000
G-Travel 1,000 1,000 2,000 2,000
J-Capital Outlays 1,000
Total $ 0 89,000 89,000 269,000 178,000
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 0.1 0.2 0.1
Legal Assistant 3-Seattle 64,944 0.1 0.0 0.1 0.1
Management Analyst 5 88,644 0.0
Paralegal 2-Seattle 70,608 0.1 0.1 0.1 0.1
Program Specialist 2-Seattle 52,429 0.0
Program Specialist 3-Seattle 68,872 0.0
Senior Investigator-Seattle 92,652 0.2 0.1 0.3 0.2
Total FTEs 0.5 0.3 0.9 0.5
III. D - Expenditures By Program (optional)
Program FY 2020 FY 2021 2019-21 2021-23 2023-25
Consumer Protection Division (CPR) 89,000 89,000 269,000 178,000
Total $ 89,000 89,000 269,000 178,000
Motor vehicle share & rental 100-Office of Attorney General
Form FN (Rev 1/00) 158,535.00 Request # 121-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 2773 HB
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
Motor vehicle share & rental 100-Office of Attorney General
Form FN (Rev 1/00) 158,535.00 Request # 121-1
FNS063 Individual State Agency Fiscal Note 5 Bill # 2773 HB
Department of Revenue Fiscal Note
Bill Number: 2773 HB Title: Motor vehicle share & rental Agency: 140-Department of
Revenue
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Expenditures from:
NONE
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
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).
X Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Robbi Kesler Phone: 360-786-7153 Date: 02/03/2020
Agency Preparation: Marianne McIntosh Phone: 360-534-1505 Date: 02/04/2020
Agency Approval: Don Gutmann Phone: 360-534-1510 Date: 02/04/2020
OFM Review: Ramona Nabors Phone: (360) 902-0547 Date: 02/04/2020
Request # 2773-1-1
Form FN (Rev 1/00) 158,244.00 1 Bill # 2773 HB
FNS062 Department of Revenue Fiscal Note
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.
CURRENT LAW:
Motor vehicle sharing and rental marketplace facilitators are not required to provide motor vehicle insurance to those who
use the platform to rent vehicles or possess an insurable interest in the vehicles offered on its platform. State statutes do
not provide consumer protection measures ensuring vehicles available on such platforms have responded to vehicle safety
recalls and other passenger safety measures. Motor vehicle sharing and rental marketplace facilitators are not required to
collect and transmit certain types of data to state agencies.
PROPOSAL:
This bill adds new chapters to Title 46 RCW to establish a regulatory framework for peer-to-peer vehicle sharing programs
particularly emphasizing insurance coverage. The bill does not affect the taxability of peer-to-peer vehicle sharing
pursuant to Title 82 RCW.
EFFECTIVE DATE:
This bill takes effect on January 1, 2021.
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.
This legislation results in no revenue impact to taxes administered by the Department of Revenue.
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.
The Department of Revenue will not incur any costs with the implementation of this legislation.
Part III: Expenditure Detail
III. A - Expenditures by Object Or Purpose
NONE
III. B - Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in Part I
and Part IIIA
NONE
III. C - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
NONE
Request # 2773-1-1
Form FN (Rev 1/00) 158,244.00 2 Bill # 2773 HB
FNS062 Department of Revenue Fiscal Note
None.
Part V: New Rule Making Required
Request # 2773-1-1
Form FN (Rev 1/00) 158,244.00 3 Bill # 2773 HB
FNS062 Department of Revenue Fiscal Note
Individual State Agency Fiscal Note
Bill Number: 2773 HB Title: Motor vehicle share & rental Agency: 160-Office of Insurance
Commissioner
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 0.1 0.0
Account
Insurance Commissioners Regulatory 0 20,853 20,853 23,553 5,400
Account-State 138-1
Total $ 0 20,853 20,853 23,553 5,400
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
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.
Requires new rule making, complete Part V.
Legislative Contact: Robbi Kesler Phone: 360-786-7153 Date: 02/03/2020
Agency Preparation: David Forte Phone: 360-725-7042 Date: 02/06/2020
Agency Approval: Bryon Welch Phone: 360-725-7037 Date: 02/06/2020
OFM Review: Jason Brown Phone: (360) 902-0539 Date: 02/08/2020
Form FN (Rev 1/00) 157,966.00 Request # 20-69-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2773 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 3(1) requires, in the event of a loss or injury that occurs during the sharing period defined in section 2(8),
the program to: a) assume the liability of an owner for any loss or injury during the sharing period in an amount
stated in an agreement defined in section 2(3); and b) retain such liability irrespective of a lapse in, or otherwise
absence of, any coverage under which the program is insured.
Section 5 permits an authorized insurer that writes motor vehicle liability insurance to add exclusions to policies
issued to the registered owner of a peer-to-peer vehicle made available for sharing facilitated by a peer-to-peer
vehicle sharing program.
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.
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.
Section 3(1) requires, in the event of a loss or injury that occurs during the sharing period defined in section 2(8),
the program to: a) assume the liability of an owner for any loss or injury during the sharing period in an amount
stated in an agreement defined in section 2(3); and b) retain such liability irrespective of a lapse in, or otherwise
absence of, any coverage under which the program is insured. The Office of the Insurance Commissioner (OIC)
assumes the peer-to-peer program will be required to purchase liability coverage. The coverage is assumed to be
a new commercial auto insurance product requiring insurers to file rate and policy form filings for the product
with the OIC. OIC assumes 10 additional rate and policy form filings on an ongoing basis starting in FY2021.
For FY2021 and FY2022 these would require more in-depth review of four hours per filing, followed a reduction
in time to only review updates FY2023 onward only requiring 2 hours per filing. OIC assumes for FY2021 and
FY2022 that would require 40 hours for an Actuarial Analyst 3 and 40 hours for a Functional Program Analyst 3
(FPA3). For FY2023 onward, 20 hours for an Actuarial Analyst 3 and 20 hours for a FPA3 will be required.
Section 5 permits an authorized insurer that writes motor vehicle liability insurance to add exclusions to policies
issued to the registered owner of a peer-to-peer vehicle made available for sharing facilitated by a peer-to-peer
vehicle sharing program. The OIC will need to review these policy form filings and assumes nearly all personal
automobile insurers will file an update. There were 213 personal automobile insurers in the 2018 market. OIC
assumes 100 companies will file an update in FY2021 and another 100 companies will file an update in FY2022
requiring two hours to review each filing. OIC assumes a one-time expense of 200 hours for a FPA3 in FY2021
and also in FY2022.
Ongoing costs:
Salary, benefits and associated costs for .01 FTE Functional Program Analyst 3 and .01 FTE Actuarial Analyst 3.
Motor vehicle share & rental 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 157,966.00 Request # 20-69-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2773 HB
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2020 FY 2021 2019-21 2021-23 2023-25
138-1 Insurance State 0 20,853 20,853 23,553 5,400
Commissioners
Regulatory Account
Total $ 0 20,853 20,853 23,553 5,400
III. B - Expenditures by Object Or Purpose
FY 2020 FY 2021 2019-21 2021-23 2023-25
FTE Staff Years 0.2 0.1 0.1 0.0
A-Salaries and Wages 12,142 12,142 13,735 3,186
B-Employee Benefits 4,540 4,540 5,107 1,134
C-Professional Service Contracts
E-Goods and Other Services 4,171 4,171 4,711 1,080
G-Travel
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 0 20,853 20,853 23,553 5,400
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
Actuarial Analyst 3 90,420 0.0 0.0 0.0 0.0
Functional Program Analyst 3 68,892 0.2 0.1 0.1 0.0
Total FTEs 0.2 0.1 0.1 0.0
III. D - Expenditures By Program (optional)
NONE
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
Motor vehicle share & rental 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 157,966.00 Request # 20-69-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2773 HB
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