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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.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-03-25-a28816-d233527-1259-fn-final-3-23-21-d79cf77a85/, SHA-256 169e30ee20662690812f1afc50ec80d499be79b1a55c7882e7534d74f8e713a9.

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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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