Fiscal Note - 1673 HB, Public works board/broadband (Multiple Agency Summary and Department of Commerce, Final)

Summary

A Multiple Agency Fiscal Note Summary for 1673 HB, Public works board/broadband, marked Final, followed by a revised Individual State Agency Fiscal Note from the Department of Commerce. Part I of the agency note estimates no cash receipts and no operating expenditures, and lists the capital budget impact as "Non-zero but indeterminate cost and/or savings". The narrative says Section 1(12)(a) authorizes the Public Works Board to make low-interest or interest-free loans or grants for emergency public works broadband projects, and that Section 2 amends RCW 42.56.270. The agency states there is no impact to the department and that the board would conduct rule-making to establish program eligibility and funding parameters.

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“Fiscal Note - 1673 HB, Public works board/broadband (Multiple Agency Summary and Department of Commerce, Final).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-01-14-a29399-d237201-1673-fn-final-15630bc873/, SHA-256 ce38443dd000b33eff9cf88a15582aa8b95e7d64488d381ac338e419e08a4d95.

Full text

Multiple Agency Fiscal Note Summary
Bill Number: 1673 HB Title: Public works board/broadband.

Estimated Cash Receipts
NONE

Agency Name 2021-23 2023-25 2025-27
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.

Local Gov. Total

Estimated Operating Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Commerce

Total $ 0.0 0 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 Non-zero but indeterminate cost and/or savings. Please see discussion.

Local Gov. Total

Estimated Capital Budget Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Department of Commerce Non-zero but indeterminate cost and/or savings. Please see discussion.

Total $ 0.0 0 0 0.0 0 0 0.0 0 0

Local Gov. Total

Estimated Capital Budget Breakout
Department of Commerce Non-zero but indeterminate cost and/or savings. Please see discussion.

FNPID 63449
:
FNS029 Multi Agency rollup
Prepared by: Myra Baldini, OFM Phone: Date Published:
(360) 688-8208 Final

FNPID 63449
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note Revised

Bill Number: 1673 HB Title: Public works board/broadband. Agency: 103-Department of
Commerce

Part I: Estimates
No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:
Non-zero but indeterminate cost and/or savings . Please see discussion.

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).

X Capital budget impact, complete Part IV.

X Requires new rule making, complete Part V.

Legislative Contact: Cassie Jones Phone: 360-786-7303 Date: 01/05/2022
Agency Preparation: Buck Lucas Phone: 360-725-3180 Date: 01/12/2022
Agency Approval: Joyce Miller Phone: 360-725-2710 Date: 01/12/2022
OFM Review: Myra Baldini Phone: (360) 688-8208 Date: 01/12/2022

Form FN (Rev 1/00) 171,304.00 Request # 010-600-3
FNS063 Individual State Agency Fiscal Note 1 Bill # 1673 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(1) amends RCW 43.155.160 to improve the application, objection and review processes and create an
emergency public works board (PWB) broadband program.

Section 1(5)(o) removes the time requirement for the applicant to contact all entities providing broadband service near the
proposed project area. The applicant is required to submit evidence of notification, however it removes the requirement
for contact to be made no later than six weeks prior to the submission of the application.

Section 1(5)(q) adds the requirement for the applicant to show evidence of submission of the proposed geographic
broadband service area and the proposed broadband speeds to the PWB.

Section 1(6)(a) adds the requirement for the PWB to publish on its website for at least 30 days the proposed geographic
broadband service area and the proposed broadband speeds for each application submitted.

Section 1(7)(e) changes the objection to a proposed broadband project rather than an application so that objections can be
made prior to the applicant submitting their application.

Section 1(10) removes the requirement for the Washington Utilities and Transportation Commission (UTC) consultation
and review as part of the proposed project application.

Section 1(12)(a) authorizes the Public Works Board to make low-interest or interest-free loans or grants to eligible
applicants for emergency public works broadband projects.
-Eligible emergency projects include construction, repair, reconstruction, replacement, rehabilitation, or improvement to
critical broadband infrastructure that has been damaged by unforeseen events.
-The loans or grants may be used to help fund all or part of an emergency broadband infrastructure project less any
reimbursement from federal disaster or emergency funds; state disaster or emergency funds; insurance settlements; and
litigation.
-Eligible applicants are those who are eligible under the existing PWB broadband infrastructure program.

Section 2 amends RCW 42.56.270 to protect financial, commercial and proprietary information.

Section 2(4) RCW 43.155.160, the Public Works Board Broadband Infrastructure program, is added to the list of
exemptions from public disclosure related solely to financial and commercial information and records supplied by
businesses or individuals during application for loans or program services.
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 .

There is no impact to the department. The activities stated in HB 1673 are already part of the normal operating
procedures within the Local Government Division.

Public works board/broadband. 103-Department of Commerce
Form FN (Rev 1/00) 171,304.00 Request # 010-600-3
FNS063 Individual State Agency Fiscal Note 2 Bill # 1673 HB
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
Non-zero but indeterminate cost and/or savings . Please see discussion.

IV. B - Expenditures by Object Or Purpose
Non-zero but indeterminate cost and/or savings . Please see discussion.

IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
Non-zero but indeterminate cost and/or savings . Please see discussion.
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part IVB

NONE
The Legislature could appropriate funding directly to the proposed emergency broadband program, and the Public Works
Board could, under existing statutory authority, allocate up to 10 percent of a biennial appropriation for the purpose of grants
and loans that address emergency needs for broadband infrastructure. This action will not result in revenue impacts to the
Public Works Board or State Broadband Account. The amount of a potential appropriation is unclear, and the number of
awards would vary based on funding level and emergency events that damage broadband infrastructure.

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 .

Once enacted the PWB would conduct rule-making, consistent with WAC 399-30-045 (3) to establish program eligibility and
funding parameters for the program.

Public works board/broadband. 103-Department of Commerce
Form FN (Rev 1/00) 171,304.00 Request # 010-600-3
FNS063 Individual State Agency Fiscal Note 3 Bill # 1673 HB
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce

Bill Number: 1673 HB Title: Public works board/broadband.

Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
X Cities: Cities can choose to apply for funding
X Counties: Counties can choose to apply for funding
X Special Districts: Special districts can choose to apply for funding

Specific jurisdictions only:
Variance occurs due to:

Part II: Estimates
No fiscal impacts.

Expenditures represent one-time costs:

X Legislation provides local option: Local governments would have an opportunity to apply for loan or grant funds for emergency
public works broadband projects
X Key variables cannot be estimated with certainty at this time: It is unknown how many cities, counties, or special districts would
choose to apply for emergency funding or how much they would be
awarded.
Estimated revenue impacts to:

Non-zero but indeterminate cost and/or savings . Please see discussion.

Estimated expenditure impacts to:

Non-zero but indeterminate cost and/or savings . Please see discussion.

Part III: Preparation and Approval
Fiscal Note Analyst: Tammi Alexander Phone: 360-725-5038 Date: 01/07/2022
Leg. Committee Contact: Cassie Jones Phone: 360-786-7303 Date: 01/05/2022
Agency Approval: Alice Zillah Phone: 360-725-5035 Date: 01/07/2022
OFM Review: Myra Baldini Phone: (360) 688-8208 Date: 01/07/2022
Page 1 of 2 Bill Number: 1673 HB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Provide a clear, succinct description of the bill with an emphasis on how it impacts local government .
This bill would amend RCW 43.155.160 to:
- remove the six week requirement that an applicant contacted , in writing, all entities providing broadband service near the proposed project
area to ask each broadband service provider's plan to upgrade broadband service
in the project area to speeds that meet or exceed the state's definition for broadband service
- add a requirement for applicants to submit the proposed geographic broadband service area and the proposed broadband speeds to the
public works board no later than 30 days prior to submitting the application
- remove the requirement for the Public Works Board to consult with the Washington Utilities and Transportation Commission for their
feasibility assessment
- allow the Public Works Board to make low-interest or interest-free loans or grants to eligible applicants for emergency public works
broadband projects for construction, repair, reconstruction, replacement, rehabilitation, or improvement to critical broadband infrastructure
that has been damaged by unforeseen events

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 bill would have indeterminate impact on local government expenditures .

It is unknown which local governments would apply for emergency funding through the authority established by this bill . Applicants
would have administrative costs to prepare the application and other necessary documentation .

Applicants receiving grants or loans would incur costs to construct , repair, replace, rehabilitate, or otherwise improve critical broadband
infrastructure that has been damaged by unforeseen events . Funding issued as a loan must be repaid by the local government with any
applicable interest applied. There may be potential costs associated with monitoring , auditing, or evaluating the emergency funds for those
local governments awarded a loan or grant .

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 bill would have indeterminate impact on local government revenues .

It is unknown which local governments would be awarded emergency funding and what amount they would receive .

Page 2 of 2 Bill Number: 1673 HB
FNS060 Local Government Fiscal Note

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