Fiscal Note - 5880 SB Fire Sprinkler Contractors, Multiple Agency Summary (Final 1/21/2022)
Summary
Multiple Agency Fiscal Note Summary for Bill Number 5880 SB, Fire sprinkler contractors, final 1/21/2022, covering the Office of State Treasurer and Washington State Patrol. Estimated cash receipts for both agencies read "Non-zero but indeterminate cost and/or savings". Washington State Patrol operating expenditures are shown as 1.8 FTEs and 638,444 in 2021-23, and 3.5 FTEs and 1,080,260 in each of 2023-25 and 2025-27. The individual fiscal note for the Office of State Treasurer marks fiscal impact less than $50,000 per fiscal year. A narrative in the note says that if fees and fines are increased to the maximum allowed in the proposed legislation, it would expect $326,000 in revenue in the first year and $653,000 ongoing to the Fire Protection Contractor License Account (210).
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“Fiscal Note - 5880 SB Fire Sprinkler Contractors, Multiple Agency Summary (Final 1/21/2022).”
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Multiple Agency Fiscal Note Summary
Bill Number: 5880 SB Title: Fire sprinkler contractors
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 State Non-zero but indeterminate cost and/or savings. Please see discussion.
Treasurer
Washington State Non-zero but indeterminate cost and/or savings. Please see discussion.
Patrol
Total $ 0 0 0 0 0 0 0 0 0
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
Office of State .0 0 0 0 .0 0 0 0 .0 0 0 0
Treasurer
Washington State 1.8 0 0 638,444 3.5 0 0 1,080,260 3.5 0 0 1,080,260
Patrol
Total $ 1.8 0 0 638,444 3.5 0 0 1,080,260 3.5 0 0 1,080,260
Estimated Capital Budget Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Office of State Treasurer .0 0 0 .0 0 0 .0 0 0
Washington State Patrol .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
NONE
Prepared by: Ruth Roberson, OFM Phone: Date Published:
(360) 995-3826 Final 1/21/2022
FNPID 63812
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 5880 SB Title: Fire sprinkler contractors Agency: 090-Office of State Treasurer
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
Non-zero but indeterminate cost and/or savings . Please see discussion.
Estimated Operating Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact . Factors impacting the precision of these estimates ,
and alternate ranges (if appropriate ), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50 ,000 per fiscal year in the current biennium or in subsequent biennia , complete entire fiscal note
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.
Requires new rule making, complete Part V.
Legislative Contact: Clinton McCarthy Phone: 360-786-7319 Date: 01/17/2022
Agency Preparation: Dan Mason Phone: (360) 902-8990 Date: 01/19/2022
Agency Approval: Dan Mason Phone: (360) 902-8990 Date: 01/19/2022
OFM Review: Cheri Keller Phone: (360) 584-2207 Date: 01/20/2022
Form FN (Rev 1/00) 172,624.00 Request # 029-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5880 SB
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 .
SB 5880 creates the fire protection compliance account, coupled with the general fund as the recipient of the earnings from
investments under RCW 43.79A.040(4).
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 .
Projected cash flows are currently unavailable; therefore, estimated earnings from investments are indeterminable.
There may be an impact on the debt service limitation calculation. Any change to the earnings credited to the general fund
will change, by an equal amount, general state revenues.
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
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
Fire sprinkler contractors 090-Office of State Treasurer
Form FN (Rev 1/00) 172,624.00 Request # 029-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5880 SB
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
Fire sprinkler contractors 090-Office of State Treasurer
Form FN (Rev 1/00) 172,624.00 Request # 029-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5880 SB
Individual State Agency Fiscal Note
Bill Number: 5880 SB Title: Fire sprinkler contractors Agency: 225-Washington State Patrol
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
Non-zero but indeterminate cost and/or savings . Please see discussion.
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.0 3.5 1.8 3.5 3.5
Account
Fire Protection Contractor License 0 638,444 638,444 1,080,260 1,080,260
Account-Non-Appropriated 210
-6
Total $ 0 638,444 638,444 1,080,260 1,080,260
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: Clinton McCarthy Phone: 360-786-7319 Date: 01/17/2022
Agency Preparation: Yvonne Ellison Phone: 360-596-4042 Date: 01/20/2022
Agency Approval: Walter Hamilton Phone: 360-596-4046 Date: 01/20/2022
OFM Review: Ruth Roberson Phone: (360) 995-3826 Date: 01/21/2022
Form FN (Rev 1/00) 172,137.00 Request # 22-040-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5880 SB
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 .
The proposed legislation will have a fiscal impact to the Washington State Patrol (WSP).
Section 1 increases the maximum fee for contractors installing, inspecting, maintaining and servicing NFPA 13-D fire
sprinkler systems from $100 to $200, and for NFPA 13-R systems from $300 to $600.
Section 2 removes penalties received under RCW 18.160.120 from the receipts deposited into the Fire Protection
Contractor License Account (210).
Section 5(1) increases the fine range for infractions of rule as defined under RCW 18.16.030 (2) (b) (iii) from not less than
$200 and not more than $5,000 to not less than $400 and not more than $10,000 for the first infraction, not less than $800
and not more than $15,000 for a second infraction, and not less than $1,500 and not more than $20,000 for the third and any
subsequent infractions by the same contractor.
Section 5(2) increases the fine range for infractions for failure to obtain a certificate of competency from not less than
$1,000 and not more than $5,000 to not less than $2,000 and not more than $10,000 for the first infraction, not less than
$5,000 and not more than $20,000 for a second infraction, and not less than $10,000 and not more than $50,000 for the third
and any subsequent infractions by the same contractor.
Section 5(3) directs fines collected under the section be deposited into the Fire Protection Compliance Account.
New Section 6 creates and defines the Fire Protection Compliance Account.
Section 7(5) requires renewals of certificates under RCW 18.270.050 to be provided to the certificate holder directly
through certified mail.
Sections 3,4,8 and 9 change permissive language ‘may’ to mandatory language ‘must’ regarding responsibilities of licensure,
civil proceedings, investigations, and rulemaking.
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 full impact of the proposed legislation to cash receipts will not be known until after rulemaking is complete.
The proposed legislation increases the cost structure of fees and fines related to Chapter 18.160 RCW Fire Sprinkler
System Contractors, creates the Fire Protection Compliance Account, and moves the deposit of fines collected under the
chapter from the Fire Protection Contractor License Account (210) to the new Fire Protection Compliance Account.
Changes in the distribution of revenue for fines is expected to reduce revenues to the Fire Protection Contractor License
Account (210), but this is expected to be more than offset by the increases in revenue related to licensing fees.
Rulemaking will be required to determine and implement the final level of fees and fines enforced. If all the fees and fines
are increased consistent with the maximum amount allowed in the proposed legislation we would expect to see an increase
of $326,000 in the first year, and $653,000 ongoing in revenue to the Fire Protection Contractor License Account (210), and
$16,000 in the first year, and $32,000 ongoing in revenue to the Fire Protection Compliance Account. However, we expect
that after the rulemaking process is complete the final increases implemented would be limited to the level necessary to
Fire sprinkler contractors 225-Washington State Patrol
Form FN (Rev 1/00) 172,137.00 Request # 22-040-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5880 SB
support the additional work required.
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 .
Sections 3, 4 and 8 require the WSP to investigate all potential violations of Chapter 18.160 RCW and Chapter 18.270
RCW. Our current workload is at capacity with 12 investigations per year. Any increased investigation responsibility will
require additional FTEs.
Section 7 requires renewals of certificates under RCW 18.270.050 to be provided to the certificate holder directly through
certified mail. There are approximately 1,900 certified sprinkler fitters in Washington State. Certifications are currently sent
to the employer on file (approximately 1750) or directly to sprinkler fitter if no employer on file (approximately 150). We
estimated a workload impact of an additional 250-300 hours to mail individual certificates via certified mail.
We estimate that the mandatory increase in the licensing and enforcement responsibilities in the proposed legislation will
require an additional three (3) Deputy State Fire Marshal FTEs and one-half (0.5) Office Assistant 3 FTE. The estimated
cost is approximately $638,500 in the first fiscal year and $540,000 per fiscal year ongoing.
Additional rulemaking will also be required as a result of this proposed legislation. Rulemaking within the WSP requires
input from various individuals including the Government and Media Relations Captain and Legislative Analyst, the impacted
division, the Assistant Chief for the impacted bureau, the Risk Management Division Commander, and the Chief or his
designee.
We base estimated salary expenditures on current levels for the positions requested per published salary schedules, plus any
applicable incentive or assignment pay. We compute estimated benefits expenditures based on federal or state mandated
rates plus state provided amounts for health insurance and workers’ compensation insurance. We assume that any
increases in these rates or amounts will be covered by legislation establishing the increase.
We compute estimated support expenditures such as supplies & materials, communications, computer costs (hardware and
software), vehicle and vehicle operating costs, among others, using average costs to support agency FTEs. We adjust the
estimated support costs to reflect the needs of individual divisions or positions within the agency.
We base our estimate for agency indirect costs on the approved federal indirect cost rate of 30.84 percent. We apply this
indirect cost rate percentage to all categories of expenditure with only two exceptions: capital equipment and expenditures
after $25,000 of each projected contract. Indirect costs include, but are not limited to, computer and telecommunications
support, payroll processing, vendor payments, general accounting, procurement administration, inventory control, and human
resource management.
The costs associated with legislative rule making are dependent upon the individuals working on the effort and how much
time is required of each, but generally include the Government and Media Relations staff (8.5 hours), Subject Matter Expert
(SME – 40 hours), and various reviewers (16 hours). The estimated agency cost for rule making on this legislation would be
approximately $6,000.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
210-6 Fire Protection Non-Appr 0 638,444 638,444 1,080,260 1,080,260
Contractor License opriated
Account
Total $ 0 638,444 638,444 1,080,260 1,080,260
Fire sprinkler contractors 225-Washington State Patrol
Form FN (Rev 1/00) 172,137.00 Request # 22-040-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5880 SB
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 3.5 1.8 3.5 3.5
A-Salaries and Wages 256,434 256,434 512,868 512,868
B-Employee Benefits 98,288 98,288 196,576 196,576
C-Professional Service Contracts
E-Goods and Other Services 36,242 36,242 64,588 64,588
G-Travel 8,400 8,400 16,800 16,800
J-Capital Outlays 114,620 114,620 42,944 42,944
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-Agency Indirect Costs 124,460 124,460 246,484 246,484
Total $ 0 638,444 638,444 1,080,260 1,080,260
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
Deputy State Fire Marshal 78,408 3.0 1.5 3.0 3.0
Office Assistant 3 42,450 0.5 0.3 0.5 0.5
Total FTEs 3.5 1.8 3.5 3.5
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Identify provisions of the measure that require the agency to adopt new administrative rules or repeal/revise existing rules .
Rulemaking is required as follows:
Section 1: WAC 212-080-073;
Section 3 & 4: WAC 212-080-205, WAC 212-080-210;
Section 5: WAC 212-080-215;
Fire sprinkler contractors 225-Washington State Patrol
Form FN (Rev 1/00) 172,137.00 Request # 22-040-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 5880 SB
Multiple Agency Ten-Year Analysis Summary
Bill Number Title
5880 SB Fire sprinkler contractors
This ten-year analysis is limited to the estimated cash receipts associated with the proposed tax or fee increases.
Estimated Cash Receipts
Office of State Treasurer 0 0 0 0 0 0 0 0 0 0 0
Washington State Patrol 0 0 0 0 0 0 0 0 0 0 0
Indeterminate Impact
Total 0 0 0 0 0 0 0 0 0 0 0
FNS067 Multiple Agency Ten -Year Analysis Summary 1
Ten-Year Analysis
Bill Number Title Agency
5880 SB Fire sprinkler contractors 090 Office of State Treasurer
This ten-year analysis is limited to agency estimated cash receipts associated with the proposed tax or fee increases. The Office of Financial Management
ten-year projection can be found at http://www.ofm.wa.gov/tax/default.asp .
Estimates
X No Cash Receipts Partially Indeterminate Cash Receipts Indeterminate Cash Receipts
Name of Tax or Fee Acct
Code
Agency Preparation: Dan Mason Phone: (360) 902-8990 Date: 1/19/2022 11:53:08 pm
Agency Approval: Dan Mason Phone: (360) 902-8990 Date: 1/19/2022 11:53:08 pm
OFM Review: Phone: Date:
FNS066 Ten-Year Analysis 1
Ten-Year Analysis
Bill Number Title Agency
5880 SB Fire sprinkler contractors 225 Washington State Patrol
This ten-year analysis is limited to agency estimated cash receipts associated with the proposed tax or fee increases. The Office of Financial Management
ten-year projection can be found at http://www.ofm.wa.gov/tax/default.asp .
Estimates
No Cash Receipts Partially Indeterminate Cash Receipts X Indeterminate Cash Receipts
Estimated Cash Receipts
Name of Tax or Fee Acct
Code
Total
Biennial Totals
Narrative Explanation (Required for Indeterminate Cash Receipts)
The full impact of the proposed legislation to cash receipts will not be known until after rulemaking is complete.
The proposed legislation increases the cost structure of fees and fines related to Chapter 18.160 RCW Fire Sprinkler System Contractors, creates the Fire Protection
Compliance Account, and moves the deposit of fines collected under the chapter from the Fire Protection Contractor License Account (210) to the new Fire Protection
Compliance Account.
Changes in the distribution of revenue for fines is expected to reduce revenues to the Fire Protection Contractor License Account (210), but this is expected to be more than
offset by the increases in revenue related to licensing fees.
Rulemaking will be required to determine and implement the final level of fees and fines enforced. If all the fees and fines are increased consistent with the maximum
amount allowed in the proposed legislation we would expect to see an increase of $326,000 in the first year, and $653,000 ongoing in revenue to the Fire Protection
Contractor License Account (210), and $16,000 in the first year, and $32,000 ongoing in revenue to the Fire Protection Compliance Account. However, we expect that after
the rulemaking process is complete the final increases implemented would be limited to the level necessary to support the additional work required.
FNS066 Ten-Year Analysis 1
Ten-Year Analysis
Bill Number Title Agency
5880 SB Fire sprinkler contractors 225 Washington State Patrol
Agency Preparation: Yvonne Ellison Phone: 360-596-4042 Date: 1/20/2022 7:16:46 pm
Agency Approval: Walter Hamilton Phone: 360-596-4046 Date: 1/20/2022 7:16:46 pm
OFM Review: Phone: Date:
FNS066 Ten-Year Analysis 2
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