Fiscal Note - 1263 HB Rural infrastructure (Preliminary, Multiple Agency)
Summary
Preliminary Multiple Agency Fiscal Note Summary for bill 1263 HB, titled Rural infrastructure, followed by individual state agency fiscal notes and a local government fiscal note. The Bond Retirement and Interest note says the bill creates the rural infrastructure assistance account in the state treasury and does not specify the amount of bonds, so it is unable to calculate the fiscal impact of such bonds. The Utilities and Transportation Commission note estimates $251,636 from the Public Service Revolving Account-State in each of FY 2022 and FY 2023, with 0.6 FTE staff years, for technical feasibility analysis of grant applications. The summary lists the Department of Commerce fiscal note as not available.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Fiscal Note - 1263 HB Rural infrastructure (Preliminary, Multiple Agency).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-02-05-a28445-d227514-1263-preliminary-fn-7429edec68/
, SHA-256 dd12fe9e0433c69a6e3d043adb46d530bde8713a50eaf30a1eab98c98569f5ad.Full text
Multiple Agency Fiscal Note Summary
Bill Number: 1263 HB Title: Rural infrastructure
Estimated Cash Receipts
Agency Name 2021-23 2023-25 2025-27
GF-State NGF-Outlook Total GF-State NGF-Outlook Total GF-State NGF-Outlook Total
Bond Retirement and Non-zero but indeterminate cost and/or savings. Please see discussion.
Interest
Total $ 0 0 0 0 0 0 0 0 0
Agency Name 2021-23 2023-25 2025-27
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.
Local Gov. Total
Estimated Operating Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Bond Retirement Non-zero but indeterminate cost and/or savings. Please see discussion.
and Interest
Department of Fiscal note not available
Commerce
Utilities and .6 0 0 503,272 .0 0 0 0 .0 0 0 0
Transportation
Commission
Total $ 0.6 0 0 503,272 0.0 0 0 0 0.0 0 0 0
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.
Local Gov. Total
Estimated Capital Budget Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Bond Retirement and .0 0 0 .0 0 0 .0 0 0
Interest
Department of Commerce Fiscal note not available
Utilities and .0 0 0 .0 0 0 .0 0 0
Transportation
Commission
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
FNPID: 61695
FNS029 Multi Agency rollup
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.
Local Gov. Total
Estimated Capital Budget Breakout
NONE
Prepared by: Myra Baldini, OFM Phone: Date Published:
(360) 688-8208 Preliminary 2/ 4/2021
FNPID: 61695
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 1263 HB Title: Rural infrastructure Agency: 010-Bond Retirement and
Interest
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.
Requires new rule making, complete Part V.
Legislative Contact: Kyle Raymond Phone: 360-786-7190 Date: 01/25/2021
Agency Preparation: Leslie Yonkers Phone: (360) 902-9020 Date: 01/28/2021
Agency Approval: Leslie Yonkers Phone: (360) 902-9020 Date: 01/28/2021
OFM Review: Les Myhre Phone: (360) 902-0614 Date: 01/28/2021
Form FN (Rev 1/00) 163,413.00 Request # HB 1263-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1263 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.
Sec. 2 creates the rural infrastructure assistance account in the state treasury. The proceeds of bond sales, when
authorized by the legislature, must be deposited into the account. Expenditures from the account may be used
only for grants to local governments located in rural counties for public facilities, including costs incurred by the
Department of Commerce to administer the grant program.
The bill allows for bond proceeds to be deposited into the rural infrastructure account. However, the bill does not
specify the amount of bonds to be issued in connection with the program. As such, we are unable to calculate the
fiscal impact of such bonds. [Believe, as the bill does not provide a bond authorization, the incremental
difference of the bill itself (fiscal impact from the bill) is $0].
OST recommends against the use of separate accounts for the deposit of bond proceeds. Depositing tax-exempt
proceeds into the state building construction account or taxable proceeds into the state taxable building
construction account is considered best practice. Proceeds will be used as appropriated. This eliminates the
potential of unspent balances in segregated accounts that may lose appropriation authority over multiple biennia,
causing federal tax compliance concerns.
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.
N/A
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.
N/A
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
Rural infrastructure 010-Bond Retirement and Interest
Form FN (Rev 1/00) 163,413.00 Request # HB 1263-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1263 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
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Rural infrastructure 010-Bond Retirement and Interest
Form FN (Rev 1/00) 163,413.00 Request # HB 1263-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1263 HB
Individual State Agency Fiscal Note
Bill Number: 1263 HB Title: Rural infrastructure Agency: 215-Utilities and
Transportation
Commission
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.6 0.6 0.6 0.0 0.0
Account
Public Service Revolving 251,636 251,636 503,272 0 0
Account-State 111-1
Total $ 251,636 251,636 503,272 0 0
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: Kyle Raymond Phone: 360-786-7190 Date: 01/25/2021
Agency Preparation: Amanda Hathaway Phone: 360-664-1249 Date: 01/28/2021
Agency Approval: Amy Andrews Phone: 360-481-1335 Date: 01/28/2021
OFM Review: Jenna Forty Phone: (564) 999-1671 Date: 01/28/2021
Form FN (Rev 1/00) 163,570.00 Request # 21-39-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1263 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 (h) requires that the Utilities and Transportation Commission to provide technical feasibility analysis
for a number of applications for the rural infrastructure development grant program. The program plans to offer
two grant cycles each fiscal year for a total of four per biennium.
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.
These numbers are based off implementing 2019's SB 5511, using staff's time codes and previous costs
associated with the consultants. The UTC anticipates applications will triple if this passes.
Costs of coordinating and providing technical assistance to the Department of Commerce for this program would
include 1,200 UTC staff hours per fiscal year.
$86,635 starting in FY 2022 annual expenditures for providing Department of Commerce technical assistance:
(Assistant Director Telecommunications, 0.29; Regulatory Analyst 3, 0.29)
Depending on the level of assistance requested by the Department, the UTC will need new resources to retain a
part/full time engineering consulting firm at an estimated cost of $165,000 per fiscal year.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
111-1 Public Service State 251,636 251,636 503,272 0 0
Revolving Account
Total $ 251,636 251,636 503,272 0 0
Rural infrastructure 215-Utilities and Transportation Commission
Form FN (Rev 1/00) 163,570.00 Request # 21-39-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1263 HB
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.6 0.6 0.6
A-Salaries and Wages 58,936 58,936 117,872
B-Employee Benefits 20,628 20,628 41,256
C-Professional Service Contracts 165,000 165,000 330,000
E-Goods and Other Services 7,072 7,072 14,144
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 $ 251,636 251,636 503,272 0 0
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 2022 FY 2023 2021-23 2023-25 2025-27
Asst. Director, Regulatory Services 115,908 0.3 0.3 0.3
Regulatory Analyst 3 90,883 0.3 0.3 0.3
Total FTEs 0.6 0.6 0.6 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
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Rural infrastructure 215-Utilities and Transportation Commission
Form FN (Rev 1/00) 163,570.00 Request # 21-39-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1263 HB
LOCAL GOVERNMENT FISCAL NOTE Revised
Department of Commerce
Bill Number: 1263 HB Title: Rural infrastructure
Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
X Cities: Cities located in rural counties applying for public facility grants
X Counties: Rural counties applying for public facility grants
X Special Districts: Special districts in rural counties applying for public facility grants
Specific jurisdictions only:
Variance occurs due to:
Part II: Estimates
No fiscal impacts.
Expenditures represent one-time costs:
X Legislation provides local option: Local governments in rural counties would have an opportunity to apply for grant funds for
qualifying public facilities
X Key variables cannot be estimated with certainty at this time: Which jurisdictions would apply for funding; which jurisdictions
would receive the funding; amount of funding
Estimated revenue impacts to:
Non-zero but indeterminate cost and/or savings. Please see discussion.
Estimated expenditure impacts to:
Non-zero but indeterminate cost and/or savings. Please see discussion.
Part III: Preparation and Approval
Fiscal Note Analyst: Tammi Vellinga Phone: 360-725-5038 Date: 02/01/2021
Leg. Committee Contact: Kyle Raymond Phone: 360-786-7190 Date: 01/25/2021
Agency Approval: Alice Zillah Phone: 360-725-5035 Date: 02/01/2021
OFM Review: Myra Baldini Phone: (360) 688-8208 Date: 02/01/2021
Page 1 of 3 Bill Number: 1263 HB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Provide a clear, succinct description of the bill with an emphasis on how it impacts local government .
This bill would amend Title 43 RCW by adding a new chapter.
Section 1
Defines in Section 1(5) of the bill department, broadband infrastructure, local government, public facilities, and rural county.
Section 2
Creates the rural infrastructure assistance account in the state treasury. The account may be used to issue grants to local governments
located in rural counties for public facilities.
Section 3
Requires the Department of Commerce to establish a competitive grant program to award funding to local governments located in rural
counties for public facilities. Commerce is required to develop administrative procedures governing the application and award process , act
as fiscal agent for the program, and is responsible for administering, accepting, and reviewing the applications to select recipients for grant
awards. Commerce must consider the following factors when prioritizing applications:
-whether the project is critical in nature and would affect the health and safety of many people ;
-the extent to which the project leverages other funds;
-the extent to which the project is ready to proceed to construction;
-whether the project is located in a distressed area; whether the project promotes the sustainable use of resources and environmental
quality, as applicable;
-whether the project consolidates or regionalizes systems;
-whether the project encourages economic development through mixed-use and mixed income development ;
-whether the facility is being well managed in the present and for long-term sustainability;
-achieving equitable distribution of funds by geography and population;
-whether the applicant sought or is seeking funding for the project from other sources ;
-whether the completion of the project will directly or indirectly achieve net negative greenhouse gas emissions ; and
-whether the project will increase the opportunity for individuals to work from home
Commerce must also consider the extent to which the project meets the following objectives :
-efficient use of state resources;
-reservation and enhancement of health and safety;
-abatement of pollution and protection of the environment;
-creation of new, family-wage jobs, and avoidance of shifting existing jobs from one Washington state community to another ;
-fostering economic development;
-efficiency in delivery of goods and services and transportation; and
-reduction of the overall cost of public infrastructure
Section 4
Requires Commerce to develop and submit a report by November 1 , 2022 and each year thereafter containing the following information:
-the total number of applications and amount of funding requested
-a list and description of projects approved in the preceding fiscal year with project scores against the department's prioritization criteria
-the total amount of grant disbursements made in the preceding fiscal year ;
-the total amount of funds obligated and timing of when the funds were obligated in the preceding fiscal year ; and
-for projects funded in the prior biennium, the outcomes achieved by the approved projects, including the reduction to net negative
greenhouse gas emissions, where applicable
Commerce may gather data from the local governments awarded the grant funding in order to develop the report .
B. SUMMARY OF EXPENDITURE IMPACTS
Briefly describe and quantify the expenditure impacts of the legislation on local governments , identifying the expenditure provisions by
section number, and when appropriate, the detail of expenditures. Delineate between city, county and special district impacts.
Local government expenditure impacts are indeterminate.
There are 32 counties that meet the definition of rural: Adams, Asotin, Benton, Chelan, Clallam, Columbia. Cowlitz, Douglas, Ferry,
Page 2 of 3 Bill Number: 1263 HB
FNS060 Local Government Fiscal Note
Franklin, Garfield, Grant, Grays Harbor, Island, Jefferson, Kittitas, Klickitat, Lewis, Lincoln, Mason, Okanogan, Pacific, Pend Oreille,
San Juan, Skagit, Skamania, Stevens, Wahkiakum, Walla Walla, Whatcom, Whitman, and Yakima.
Local governments include: air pollution districts, area agency on aging, behavioral health organizations, cemetery districts, cities/towns,
conservation districts, counties, diking/drainage districts, emergency management service, fire protection districts, flood control districts,
health districts, hospital districts, housing authorities, industrial development corporations, irrigation and reclamation districts, library
districts, local/regional trauma care councils, mosquito/pest/weed districts, park and recreation districts, port/airport districts, public
development authorities, public facilities districts, public utility districts, regional planning councils, stadium authorities, transportation
authorities, transportation benefit districts, tv reception districts, and water/sewer districts. The total number of these local governments in
the 32 rural counties in unknown.
The number of projects that would qualify for a grant established by this bill is unknown .
The application and process must be established by Commerce . Local government's staff time commitment and other potential costs are
unknown. However, based on similar grant programs through the Public Works Board at the Department of Commerce , the application
process generally takes 1-2 hours to complete. Most local governments have a person on staff that completes financing applications as part
of their normal duties, so expenditures of this type are likely minimal.
If awarded a grant, there could be potential costs, likely minimal, to gather and provide data to the Department of Commerce per Section
4(2) in order for Commerce to develop the report required in Section 4 of the bill.
C. SUMMARY OF REVENUE IMPACTS
Briefly describe and quantify the revenue impacts of the legislation on local governments , identifying the revenue provisions by section
number, and when appropriate, the detail of revenue sources. Delineate between city, county and special district impacts.
Local government revenue impacts are indeterminate. This bill would establish a program through the Department of Commerce to award
grants to local governments as defined in Section 1(3) in rural counties as defined in Section 1(5) for public facilities as defined in Section
1(4).
There are 32 counties that meet the definition of rural: Adams, Asotin, Benton, Chelan, Clallam, Columbia. Cowlitz, Douglas, Ferry,
Franklin, Garfield, Grant, Grays Harbor, Island, Jefferson, Kittitas, Klickitat, Lewis, Lincoln, Mason, Okanogan, Pacific, Pend Oreille,
San Juan, Skagit, Skamania, Stevens, Wahkiakum, Walla Walla, Whatcom, Whitman, and Yakima.
Local governments include: air pollution districts, area agency on aging, behavioral health organizations, cemetery districts, cities/towns,
conservation districts, counties, diking/drainage districts, emergency management service, fire protection districts, flood control districts,
health districts, hospital districts, housing authorities, industrial development corporations, irrigation and reclamation districts, library
districts, local/regional trauma care councils, mosquito/pest/weed districts, park and recreation districts, port/airport districts, public
development authorities, public facilities districts, public utility districts, regional planning councils, stadium authorities, transportation
authorities, transportation benefit districts, tv reception districts, and water/sewer districts. The total number of these local governments in
the 32 rural counties in unknown.
The number of potential applications from local governments is unknown. The number of grants that will be awarded, for what amount,
and how much these grants would leverage is unknown.
Sources
House Bill Report, HB 1263, Community & Economic Development Committee (2021)
Department of Commerce fiscal note, 1263 HB (2021)
Page 3 of 3 Bill Number: 1263 HB
FNS060 Local Government Fiscal Note
File and source
- File
- 2021-02-05_a28445_d227514_1263-preliminary-fn.pdf
- Size
- 383,685 bytes
- SHA-256
- dd12fe9e0433c69a6e3d043adb46d530bde8713a50eaf30a1eab98c98569f5ad
- Original
- No public link identified.