Individual State Agency Fiscal Note - Foreclosure assistance, Department of Commerce (Bill 1108 HB)

Summary

Individual State Agency Fiscal Note from the Department of Commerce for Bill Number 1108 HB, titled Foreclosure assistance. It states that Section 2 (2) amends RCW 61.24.166 to change the exemption from mediation to be based on 2019 activity as opposed to 2020, and that Section 3 (5)(b) amends RCW 61.24.173 to change the exemption from the fee to be based on 2019 activity. The note says the cash receipts impact is indeterminate and that it is unknown what full effect the change will have but it is likely to increase revenue to the program. On expenditures, it states that there is no impact to the department.

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Full text

                           Individual State Agency Fiscal Note

Bill Number:      1108 HB                Title:     Foreclosure assistance                                   Agency:      103-Department of
                                                                                                                          Commerce

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:
 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
  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: 01/12/2021
   Agency Preparation:      Leah Snow                                                       Phone: 360-725-2724             Date: 01/18/2021
   Agency Approval:         Joyce Miller                                                    Phone: 360-725-2710             Date: 01/18/2021
  OFM Review:               Gwen Stamey                                                     Phone: (360) 902-9810           Date: 01/18/2021

Form FN (Rev 1/00) 162,479.00                                                                                                   Request # 017-300-2
FNS063 Individual State Agency Fiscal Note                            1                                                               Bill # 1108 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 1 states the intent of the legislation as it pertains to the exemption change due to the federal moratoriums
 that prevented the activity on which the exemptions are based.

 Section 2 (2) amends RCW 61.24.166 changing the exemption from mediation to be based on 2019 activity as
 opposed to 2020.

 Section 3 (5)(b) amends RCW 61.24.173 changing the exemption from the fee to be based on 2019 activity.
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.

 Cash receipts impacts associated with this legislation is Indeterminate. The department assumes revenue would
 increase to match the foreclosure activity volume but due to continued efforts of new federal and state policies to
 address the effects of the pandemic, the amount is indeterminate.

 Section 2 (2) changes exemption from mediation, this activity will require staff to update the exemption list.
 Increase in the number of referrals that are received due to preventing certain beneficiaries from claiming an
 exemption are likely to occur.

 Section 3 (5)(b) changes the exemption from the fee to be based on 2019 activity. It is unknown what full effect
 this change will have but it is likely to increase revenue to the program. As a result of the federally imposed
 moratoriums on foreclosure during 2020, there was a significantly reduced activity level that would allow some
 unknown number of beneficiaries to claim an exemption from the fee that under normal circumstances would not
 have been able to do so. Changing the exemption to be based on 2019 data should prevent this and should result
 in increased revenue for calendar year 2021.
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.

 There is no impact to the department. Any increase in referrals associated with this legislation will be
 incorporated into the normal operating procedures with the Foreclosure Fairness Program.

Part III: Expenditure Detail
III. A - Operating Budget Expenditures
     NONE
 III. B - Expenditures by Object Or Purpose
         NONE


 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
Foreclosure assistance                                                                                                  103-Department of Commerce
Form FN (Rev 1/00) 162,479.00                                                                                                  Request # 017-300-2
FNS063 Individual State Agency Fiscal Note                              2                                                            Bill # 1108 HB
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




Foreclosure assistance                                                                                                 103-Department of Commerce
Form FN (Rev 1/00) 162,479.00                                                                                                 Request # 017-300-2
FNS063 Individual State Agency Fiscal Note                             3                                                            Bill # 1108 HB


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