Multiple Agency Fiscal Note Summary — 1259 S HB: Women & minority contracting
Summary
Multiple Agency Fiscal Note Summary for Bill Number 1259 S HB, titled Women & minority contracting, with a final date of March 23, 2021 and a preparer line naming Ramona Nabors of OFM. It is followed by a Judicial Impact Fiscal Note for the Administrative Office of the Courts that reports No Fiscal Impact, and an Individual State Agency Fiscal Note for the Office of Attorney General. The Attorney General note estimates Legal Services Revolving Account-State amounts of 148,000 in FY 2022 and 146,000 in FY 2023, with 1.1 FTE staff years, and states workload of 0.62 AAG and 0.31 Legal Assistant at a cost of $148,000 for FY 2022. A later narrative states that the substitute bill would not impact local government expenditures or revenues.
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“Multiple Agency Fiscal Note Summary — 1259 S HB: Women & minority contracting.”
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Multiple Agency Fiscal Note Summary
Bill Number: 1259 S HB Title: Women & minority contracting
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
Office of Attorney 0 0 294,000 0 0 292,000 0 0 292,000
General
Office of Minority 0 0 210,000 0 0 168,000 0 0 168,000
and Women's
Business Enterprises
Total $ 0 0 504,000 0 0 460,000 0 0 460,000
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 No fiscal impact
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
Administrative .0 0 0 0 .0 0 0 0 .0 0 0 0
Office of the
Courts
Office of Attorney 1.1 0 0 294,000 1.1 0 0 292,000 1.1 0 0 292,000
General
Office of Minority 4.0 1,525,858 1,525,858 1,525,858 4.0 1,349,710 1,349,710 1,349,710 .0 1,349,710 1,349,710 1,349,710
and Women's
Business
Enterprises
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Enterprise Services
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Labor and
Industries
Total $ 5.1 1,525,858 1,525,858 1,819,858 5.1 1,349,710 1,349,710 1,641,710 1.1 1,349,710 1,349,710 1,641,710
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 No fiscal impact
Local Gov. Total
Estimated Capital Budget Expenditures
FNPID 62973
:
FNS029 Multi Agency rollup
Agency Name 2021-23 2023-25 2025-27
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
Office of Minority and .0 0 0 .0 0 0 .0 0 0
Women's Business
Enterprises
Department of Enterprise .0 0 0 .0 0 0 .0 0 0
Services
Department of Labor and .0 0 0 .0 0 0 .0 0 0
Industries
Total $ 0.0 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 No fiscal impact
Local Gov. Total
Estimated Capital Budget Breakout
Prepared by: Ramona Nabors, OFM Phone: Date Published:
(360) 902-0547 Final 3/23/2021
FNPID 62973
:
FNS029 Multi Agency rollup
Judicial Impact Fiscal Note
Bill Number: 1259 S HB Title: Women & minority contracting Agency: 055-Administrative Office
of the Courts
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
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 Kellee Gunn Phone: 786-7429 Date: 03/09/2021
Agency Preparation: Pam Kelly Phone: 360-705-5318 Date: 03/15/2021
Agency Approval: Ramsey Radwan Phone: 360-357-2406 Date: 03/15/2021
OFM Review: Gaius Horton Phone: (360) 819-3112 Date: 03/15/2021
167,941.00 Request # 1259 SHB-1
Form FN (Rev 1/00) 1 Bill # 1259 S 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)
NONE
III. B - Expenditure By Object or Purpose (County)
NONE
III. C - Expenditure By Object or Purpose (City)
NONE
III. D - FTE Detail
NONE
III. E - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B1 - Expenditures by Object Or Purpose (State)
NONE
IV. B2 - Expenditures by Object Or Purpose (County)
NONE
IV. B3 - Expenditures by Object Or Purpose (City)
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and dexcribe potential financing methods
NONE
167,941.00 Request # 1259 SHB-1
Form FN (Rev 1/00) 2 Bill # 1259 S HB
FNS061 Judicial Impact Fiscal Note
Part II: Narrative Explanation
This bill would expand public contracting opportunities for women and minority business owners
by increasing the regulatory oversight and accountability of the Office of Minority and Women’s
Business Enterprises.
The impacts to the courts remain the same in this bill as they were in the prior version.
Part II.A – Brief Description of what the Measure does that has fiscal impact on
the Courts
Section 4(4)(b) – Would allow for the director or the director’s designee to administer oaths, and
affirmations, subpoena witnesses, compel their attendance, take evidence, and require the
production of any documentation the director or director designee that is determined relevant to
the inquiry.
Section 4(4)(c) – Subpoenas issued under this section may be enforced under RCW 34.05.588
in the Superior Court of any county where the hearing is conducted.
Section 5(1) – Would allow the director or director designee to apply for and obtain a Superior
Court order approving a subpoena in advance of its issuance. The application can be made in
the county where the person resides, or the county where the subpoenaed documents, or
evidence is located in or in Thurston County.
Section 5(2) – Would require the court issue an order approving the subpoena when the
application under this section is made to the satisfaction for the court.
Section 5(3) – Would allow for the director or director designee to seek approval and the court
may issue an order without prior notice to any, including the person to whom the subpoena is
directed and the person who is the subject of the investigations.
II.B - Cash Receipt Impact
None
II.C – Expenditures
There would be a change in the published legislative changes master answer list for the
Superior Court. No significant impact to court operations. These impacts would be managed
within existing resources.
Part III: Expenditure Detail
III.A – Expenditures by Object or Purpose
FY 2021 FY 2022 2021-23 2023-25 2025-27
FTE – Staff Years
A – Salaries & Wages
B – Employee Benefits
C – Prof. Service Contracts
E – Goods and Services
G – Travel
J – Capital Outlays
JUDICIAL IMPACT FISCAL NOTE BILL# 1259 SHB
sHB
P – Debt Service
Total:
III.B – Detail:
Job Classification Salary FY 2021 FY 2022 2021-23 2023-25 2025-27
Total FTE’s
Part IV: Capital Budget Impact
None.
Part V: New Rule Making Required
None.
JUDICIAL IMPACT FISCAL NOTE BILL# 1259 SHB
sHB
Individual State Agency Fiscal Note
Bill Number: 1259 S HB Title: Women & minority contracting Agency: 100-Office of Attorney
General
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
ACCOUNT FY 2022 FY 2023 2021-23 2023-25 2025-27
Legal Services Revolving Account-State 148,000 146,000 294,000 292,000 292,000
405-1
Total $ 148,000 146,000 294,000 292,000 292,000
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 1.1 1.1 1.1 1.1 1.1
Account
Legal Services Revolving 148,000 146,000 294,000 292,000 292,000
Account-State 405-1
Total $ 148,000 146,000 294,000 292,000 292,000
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: Kellee Gunn Phone: 786-7429 Date: 03/09/2021
Agency Preparation: Amy Flanigan Phone: 509-456-3123 Date: 03/12/2021
Agency Approval: Edd Giger Phone: 360-586-2104 Date: 03/12/2021
OFM Review: Tyler Lentz Phone: (360) 790-0055 Date: 03/16/2021
Form FN (Rev 1/00) 168,115.00 Request # 197-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1259 S 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.
Bill amends portions of RCW 39.19 and 39.04
Section 1 – Amends RCW 39.19.020 by adding a definition for debar.
Section 2 – Amends RCW 39.19.060 to require all state agencies and educational institutions to identify certain metrics
of contracts awarded to minority and women-owned businesses.
Section 3 – Amends RCW 39.19.080 removing penalty clause.
Section 4 – Amends RCW 39.19.090 – Imposed certain types of penalties and rules required for penalties. It also
requires an investigation and audit.
Section 5 – A new section is added to chapter 39.19 to permit the issuance of subpoenas and other court type matters.
Section 6 – Amends RCW 39.19.200 to add civil penalties.
Section 7 – Amends RCW 39.19.250 – Adding particular requirements to reports.
Section 8 – Repeals enforcement provisions of RCW 39.19.100 and RCW 39.19.110.
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 are assumed to equal the Legal Services Revolving Account (LSRA) cost estimates. These will be billed
through the revolving account to the client agency.
The client agency is the Office of Minority & Women’s Business Enterprises (OMWBE). The Attorney General’s Office
(AGO) will bill all clients for legal services rendered.
These cash receipts represent the AGO’s authority to bill and are not a direct appropriation to the AGO. The direct
appropriation is reflected in the client agency’s fiscal note. Appropriation authority is necessary in the AGO budget.
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 2021 legislative session.
Women & minority contracting 100-Office of Attorney General
Form FN (Rev 1/00) 168,115.00 Request # 197-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1259 S HB
2. Total workload impact in this request includes standard assumption costs for good & services, travel, and capital
outlays for all FTE identified.
3. Agency administration support FTE are included in the tables below, using a Management Analyst 5 as a
representative classification.
4. The Solicitor General’s Office (SGO) has reviewed this bill and determined it will not increase or decrease the
division’s workload. New legal services are nominal and costs are not included in this request.
5. The AGO Transportation & Public Construction Division (TPC) has reviewed this bill and determined it will not
significantly increase the division’s workload in representing the Department of Enterprise Services (DES). DES indicate
that it has sufficient resources to administer the programs affected and the amendments will require little or no Assistant
Attorney General (AAG) involvement. New legal services are assumed to be nominal and costs are not included in this
request.
Assumptions for the AGO Government Compliance & Enforcement Division (GCE) Legal Services for the
Office of Minority & Women’s Business Enterprises (OMWBE):
1. The AGO will bill OMWBE for legal services based on the enactment of this bill.
2. This bill is amended to increase utilization of OMWBE-certified contractors by public
agencies in the contracting process and provides new processes for debarment from bidding on public contracts and for
monetary penalty assessments. Additionally, it creates a new audit and review unit within OMWBE and provides the unit
and director with certain investigative and subpoena authority.
3. Although Section 9 repeals two statutes that contain certain enforcement responsibilities for the AGO, this will not
have any impact as the AGO has never acted under these statutes.
4. OMWBE assumes that this bill will result in five to seven new enforcement cases each year, beginning FY
2022. GCE concurs with this assumption. Additionally, GCE anticipates up to one new administrative appeal
each year.
5. GCE assumes that the new litigation generated by this bill will be document-intensive, and hearings will be scheduled
for multiple days.
6. Based on past experience with the services expended in representing OMWBE in similar enforcement cases, and
assuming an average of six new cases each year, GCE assumes that each new case will utilize approximately 180 AAG
hours to litigate. Therefore, GCE assumes the new litigation generated by this bill will require 1,080 AAG hours (6 x
180) beginning in FY 2022 and each year thereafter.
7. GCE assumes that the new investigative and subpoena authority granted to OMWBE under this bill will result in
approximately 10 hours of legal advice beginning in FY 2022 and each FY thereafter. This bill will also require OMWBE
to engage in rulemaking. This rulemaking will be completed during FY 2022 and will generate 25 AAG hours of legal
advice.
Women & minority contracting 100-Office of Attorney General
Form FN (Rev 1/00) 168,115.00 Request # 197-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1259 S HB
8. Total workload impact:
FY 2022: 0.62 AAG and 0.31 Legal Assistant (LA) at a cost of $148,000.
FY 2023 and in each FY thereafter: 0.61 AAG and 0.31 LA at a cost of $146,000 per FY.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
405-1 Legal Services State 148,000 146,000 294,000 292,000 292,000
Revolving Account
Total $ 148,000 146,000 294,000 292,000 292,000
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 1.1 1.1 1.1 1.1 1.1
A-Salaries and Wages 97,000 96,000 193,000 192,000 192,000
B-Employee Benefits 31,000 30,000 61,000 60,000 60,000
E-Goods and Other Services 17,000 18,000 35,000 36,000 36,000
G-Travel 1,000 1,000 2,000 2,000 2,000
J-Capital Outlays 2,000 1,000 3,000 2,000 2,000
Total $ 148,000 146,000 294,000 292,000 292,000
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 2022 FY 2023 2021-23 2023-25 2025-27
Assistant Attorney General 108,600 0.6 0.6 0.6 0.6 0.6
Legal Assistant 3 54,108 0.3 0.3 0.3 0.3 0.3
Management Analyst 5 88,644 0.2 0.2 0.2 0.2 0.2
Total FTEs 1.1 1.1 1.1 1.1 1.1
III. D - Expenditures By Program (optional)
Program FY 2022 FY 2023 2021-23 2023-25 2025-27
Government Compliance & Enforcement 148,000 146,000 294,000 292,000 292,000
Division (GCE)
Total $ 148,000 146,000 294,000 292,000 292,000
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
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Women & minority contracting 100-Office of Attorney General
Form FN (Rev 1/00) 168,115.00 Request # 197-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1259 S HB
Part V: New Rule Making Required
Women & minority contracting 100-Office of Attorney General
Form FN (Rev 1/00) 168,115.00 Request # 197-1
FNS063 Individual State Agency Fiscal Note 5 Bill # 1259 S HB
Individual State Agency Fiscal Note
Bill Number: 1259 S HB Title: Women & minority contracting Agency: 147-Office of Minority and
Women's Business
Enterprises
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
ACCOUNT FY 2022 FY 2023 2021-23 2023-25 2025-27
OMWBE Enterprises Account-State 105,000 105,000 210,000 168,000 168,000
453-1
Total $ 105,000 105,000 210,000 168,000 168,000
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 4.0 4.0 4.0 4.0 0.0
Account
General Fund-State 001-1 851,003 674,855 1,525,858 1,349,710 1,349,710
Total $ 851,003 674,855 1,525,858 1,349,710 1,349,710
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: Kellee Gunn Phone: 786-7429 Date: 03/09/2021
Agency Preparation: Paul Bitar Phone: 360-407-8129 Date: 03/12/2021
Agency Approval: Paul Bitar Phone: 360-407-8129 Date: 03/12/2021
OFM Review: Ramona Nabors Phone: (360) 902-0547 Date: 03/14/2021
Form FN (Rev 1/00) 168,286.00 Request # 1471259SHB-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1259 S 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.
This bill will increase the regulatory oversight and accountability by the Office of Minority and Women’s Business
Enterprises (OMWBE). The costs reported for this fiscal note are identical to those reported under the original version of
the bill because changes made in the substitute do not affect OMWBE's costs.
Section 2 (3) would require OMWBE to identify state agencies and educational institutions with low levels of
participation by minority- and women-owned businesses in their public contracts, and to report on this annually.
OMWBE is in the process of implementing new software, the Business Diversity Management System, that will track
and identify spending in public contracting statewide that will also help to meet the direction in Section 2(3) of the bill.
Initial funding to begin this project was provided by the Legislature in the 2020 session, and the Governor’s proposed
budget for the 21-23 biennium includes the remaining funding needed to fully implement the project. We are assuming
that funding will be included in the final budget as adopted by the Legislature so we are not including any cost impacts fo
this bill for that system, though it will be necessary to carry out the work as fully intended by the bill.
Section 4 (1) (a) states that if a person, firm, corporation, or business does not comply with a contract requirement the
state may impose one or more penalties.
Section 4 (1) (b) states if a person firm, corporation, or business commits any of the prohibited activities in RCW
39.19.080, the state must impose one of the above mentioned sanctions. The fiscal note assumption is that two additional
staff will be needed to satisfy these investigations and subsequent requirements.
Section 4 (1) (c) requires that if a penalty is imposed and then an entity willfully repeats violations, exceeding a single
violation, OMWBE must disqualify the contractor from further participation in state contracts for a period of three years.
The monitoring and enforcing of these violation and sanctions will require the above mentioned additional staff.
Section 4 (3) requires OMWBE to adopt, by rule, criteria for the imposition of penalties. This section allows the rule to
incorporate the debarment process authorized for the Department of Enterprise Services in RCW 39.26.200. However,
debarment activities would not be housed within OMWBE because there are existing processes in place outside of
OMWBE more appropriate for this work.
Section 4 (4)(a) allows OMWBE to establish an audit and review unit for the purposes of detecting and investigating
fraud and violations of certification requirements. Per this section, the office must employ qualified personnel for the unit
and must audit or visit at least 3% of businesses under this chapter per year. OMWBE has determined that the new staff
should consist of two experienced investigators to conduct audits/investigations of certified firms who receive public
contracts. OMWBE assumes each investigator would conduct 3-4 audits/investigations per year and that the agency
would receive between 6-7 per year based on historical data. The number of investigations would likely increase over
time as the number of certifications increase, consistent with the trends that OMWBE is seeing.
Section 6 clarifies that the OMWBE account (managed by the State Treasurer) will receive the civil penalties imposed
under RCW 39.19.090 and will deposit receipts to this account. This account is for expenditures for defraying all or part
of the costs of the office in administering this chapter (bill).
Women & minority contracting 147-Office of Minority and Women's Business Enterprise
Form FN (Rev 1/00) 168,286.00 Request # 1471259SHB-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1259 S HB
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 fiscal note assumption is that a portion of the costs incurred by OMWBE will be reimbursed by the collection of
fines from entities in violation. OMWBE assumes fines will first be assessed in FY 22. During FY 22 and FY 23,
OMWBE estimates approximately 15 violations per year and subsequent imposed fines of not more than $7,000 each
for a total of $105,000 for each of the first two fiscal years. For FY 24 onward the expectation is 12 violations per year
for a total of $84,000 per year. The slight reduction is anticipated from removing violating entities from contractual
participation.
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.
OBJECT A & B
In reviewing S HB 1259, the Office of Minority and Women’s Business Enterprises (OMWBE) estimates it will need 4.0
additional staff to satisfy S HB 1259's purpose of increasing the regulatory oversight and accountability of OMWBE.
Hiring for these 4.0 positions would begin July 1, 2021, with the recruitment 90 days prior. The total costs for staff
(Objects A and B) in FY 22 are estimated at $426,488, and $426,488 for the following fiscal years.
OBJECT C
S HB 1259 would require OMWBE to incur IT costs to update its server security to ensure it meets the requirements to
hold sensitive information such as discoverable items and subpoenas. OMWBE estimates a one-time implementation cost
of $150,000 in FY 22.
OBJECT E
In FY22, OMWBE estimates that it will incur an additional $18,567 in Goods and Service costs (Object E) related to
the four new FTEs, and $16,647 each year thereafter.
Additional costs include $20,000 per year in Office of Administrative Hearings (OAH), $148,000 in Attorney General
(ATG) costs in FY 2022, and $146,000 in ATG costs each year thereafter. The anticipation is 6-7 hearings per year - the
cost estimate is based on 6-7 hearings estimated at about $3,000 per hearing. Due to the creation of the audit and review
unit, the number of hearings may increase in later fiscal years, but the potential increase in volume is unknown.
Ongoing maintenance costs related to OMWBE's updated server security are estimated at $50,000 per year, starting in
FY 22. This would be needed to ensure that the agency meets security requirements associated with holding discoverable
items and subpoenas.
OBJECT G
Travel costs estimated at $15,720 per year, starting in FY 22.
OBJECT J
The addition of four new FTEs will necessitate the purchase of new computer equipment and furniture. This is estimated
to be a one-time cost of $22,228 in FY22.
Women & minority contracting 147-Office of Minority and Women's Business Enterprise
Form FN (Rev 1/00) 168,286.00 Request # 1471259SHB-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1259 S HB
*See attached document titled "Cost Estimate Detail 1259 S HB" for additional information on costs described above.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
001-1 General Fund State 851,003 674,855 1,525,858 1,349,710 1,349,710
Total $ 851,003 674,855 1,525,858 1,349,710 1,349,710
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 4.0 4.0 4.0 4.0
A-Salaries and Wages 312,768 312,768 625,536 625,536 625,536
B-Employee Benefits 113,720 113,720 227,440 227,440 227,440
C-Professional Service Contracts 150,000 150,000
E-Goods and Other Services 236,567 232,647 469,214 465,294 465,294
G-Travel 15,720 15,720 31,440 31,440 31,440
J-Capital Outlays 22,228 22,228
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 851,003 674,855 1,525,858 1,349,710 1,349,710
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
Attorney 96,000 1.0 1.0 1.0 1.0
Contract Specialist 2 67,560 1.0 1.0 1.0 1.0
Investigator 3 74,604 2.0 2.0 2.0 2.0
Total FTEs 4.0 4.0 4.0 4.0 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
Women & minority contracting 147-Office of Minority and Women's Business Enterprise
Form FN (Rev 1/00) 168,286.00 Request # 1471259SHB-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1259 S HB
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
Identify provisions of the measure that require the agency to adopt new administrative rules or repeal/revise existing rules.
Per HB 1259, OMWBE would be required to amend WAC 326-08 to include debarment as a reason for the procedures.
There would also need to be a fines/sanction schedule, and rules governing the investigation unit outlined in Section 4 of the
bill.
Women & minority contracting 147-Office of Minority and Women's Business Enterprise
Form FN (Rev 1/00) 168,286.00 Request # 1471259SHB-1
FNS063 Individual State Agency Fiscal Note 5 Bill # 1259 S HB
Individual State Agency Fiscal Note
Bill Number: 1259 S HB Title: Women & minority contracting Agency: 179-Department of
Enterprise Services
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
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
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: Kellee Gunn Phone: 786-7429 Date: 03/09/2021
Agency Preparation: Michael Diaz Phone: (360) 407-8131 Date: 03/11/2021
Agency Approval: Ashley Howard Phone: (360) 407-8159 Date: 03/11/2021
OFM Review: Tyler Lentz Phone: (360) 790-0055 Date: 03/16/2021
Form FN (Rev 1/00) 168,172.00 Request # -1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1259 S 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 has been amended to include the definition for “Debar”. This has no fiscal impact to the Department of
Enterprise Services (DES).
Section 2 has been amended to include a new subsection that requires the Office of Minority and Women Owned
Enterprises (OMWBE) to review public works and goods and services contract spend and identify agencies in the
lowest quintile in terms of utilization and dollar value awarded. OMWBE must also determine if an agency is performing
below their established goals.. This has no fiscal impact to DES.
Section 4 (3) allows OMWBE to incorporate the debarment processes authorized by the Department of Enterprise
Services (DES) under RCW 39.26.200 into OWMBEs criteria for imposition of penalties outlined in section 4 of this
bill. This has no fiscal impact to DES.
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.
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
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
Women & minority contracting 179-Department of Enterprise Services
Form FN (Rev 1/00) 168,172.00 Request # -1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1259 S HB
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
Women & minority contracting 179-Department of Enterprise Services
Form FN (Rev 1/00) 168,172.00 Request # -1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1259 S HB
Individual State Agency Fiscal Note
Bill Number: 1259 S HB Title: Women & minority contracting Agency: 235-Department of Labor
and Industries
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
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
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: Kellee Gunn Phone: 786-7429 Date: 03/09/2021
Agency Preparation: Jenifer Colley Phone: (360) 902-6983 Date: 03/22/2021
Agency Approval: Trent Howard Phone: 360-902-6698 Date: 03/22/2021
OFM Review: Anna Minor Phone: (360) 790-2951 Date: 03/22/2021
Form FN (Rev 1/00) 167,939.00 Request # 083-FPLS-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1259 S 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.
This bill would expand public contracting opportunities for women and minority business enterprises by increasing the
regulatory oversight and accountability of the Office of Minority and Women’s Business Enterprises (OMWBE).
SHB 1259 is different from HB 1259 in that it:
• Removes Section 8 from the original bill. Section 8 increased the allowable maximum dollar amounts for small works
roster and limited public works contracts.
Section 2
Modifies RCW 39.19.060 to require OMWBE activities and identify agencies that have the least utilization of OMWBE
contractors and coach those agencies on ways to increase that participation in their contracts.
Section 7
Modifies RCW 39.19.250 to add actions taken under RCW 39.19.060(3) to existing reporting requirements.
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.
At this time there is not a fiscal impact. However, L&I believes this bill will require a resource once enacted to gather all
agency procurement data, adding it to the electronic dashboard, determine gaps and collaborate with other areas of the
agency and tracking the data daily/weekly along with goal setting and quarterly reporting.
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
III. D - Expenditures By Program (optional)
NONE
Women & minority contracting 235-Department of Labor and Industries
Form FN (Rev 1/00) 167,939.00 Request # 083-FPLS-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1259 S 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
Women & minority contracting 235-Department of Labor and Industries
Form FN (Rev 1/00) 167,939.00 Request # 083-FPLS-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1259 S HB
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce
Bill Number: 1259 S HB Title: Women & minority contracting
Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
Cities:
Counties:
Special Districts:
Specific jurisdictions only:
Variance occurs due to:
Part II: Estimates
X No fiscal impacts.
Expenditures represent one-time costs:
Legislation provides local option:
Key variables cannot be estimated with certainty at this time:
Estimated revenue impacts to:
None
Estimated expenditure impacts to:
None
Part III: Preparation and Approval
Fiscal Note Analyst: Tammi Alexander Phone: 360-725-5038 Date: 03/10/2021
Leg. Committee Contact: Kellee Gunn Phone: 786-7429 Date: 03/09/2021
Agency Approval: Allan Johnson Phone: 360-725-5033 Date: 03/10/2021
OFM Review: Carly Fa ataualofa Phone: (360) 790-7909 Date: 03/12/2021
Page 1 of 2 Bill Number: 1259 S 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.
CHANGES IN THIS SUBSTITUTE VERSION:
This substitute version removes section 8 of the original bill that pertained to local governments.
SUMMARY OF ORIGINAL BILL VERSION AFFECTING LOCAL GOVERNMENTS:
The original legislation would make changes to the small works roster contract procedures and the contract thresholds for small works
roster no-bid and maximum contract amounts.
Sec. 8: Amends RCW 39.04.155 (Public Works, Small Works Roster Contract Procedures)
(1) Increases the small public works roster provisions to award limited public works contracts from $350,000 or less, to $500,000 or less.
(2)(c) Increases the range of estimated costs that local governments may solicit bids from applicable small public works roster participants
for limited public works projects. This range would be $150,000 to $500,000, previously $250,000 to $350,000.
(3)(a) If a limited public works project has an estimated cost of $150,000 or less, a local government may award a participant of the small
public works roster the contract to perform that work, instead of soliciting bids for such work. Previously this amount of $50,000.
BACKGROUND:
The small public works roster are lists of qualified contractors who can bid for an eligible limited public works project under $350,000. These
rosters help streamline the bidding process as opposed to the full formal competitive bid process for public works projects. (MRSC)
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.
This substitute bill removes the action required by local governments outlined in the original bill. This substitute bill would not impact
local government expenditures.
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.
This substitute bill would not impact local government revenues.
SOURCES:
House Bill Report, SHB 1259 (03/03/2021)
Local Government Fiscal Note, 1259 HB (2021)
Page 2 of 2 Bill Number: 1259 S HB
FNS060 Local Government Fiscal Note
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