Final Multiple Agency Fiscal Note — E S SB 5544, Blockchain Work Group (2/18/2022)
Summary
This is the final multiple-agency fiscal note summary for E S SB 5544, the blockchain work group bill, prepared by Gwen Stamey of OFM and dated 2/18/2022, followed by individual agency notes. It shows no estimated cash receipts and estimated operating expenditures of $81,171 in 2021-23 and $72,201 in 2023-25, with 0.3 FTEs and 0.6 FTEs. The Department of Commerce accounts for $63,131 in 2021-23, the Office of the Secretary of State for $8,740, and the Department of Agriculture for $9,300. The Lieutenant Governor, Department of Financial Institutions, Health Care Authority and Consolidated Technology Services show no fiscal impact. The Secretary of State's note says the work group has 21 members, must hold its inaugural meeting by August 1, 2022, and is dissolved January 1, 2024.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Final Multiple Agency Fiscal Note — E S SB 5544, Blockchain Work Group (2/18/2022).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-02-22-a29911-d243613-5544-fn-final-72c42707d9/
, SHA-256 78eeef208c0272fce518e2bc4d47222398e96712a947f8969e16aa090ef571f0.Full text
Multiple Agency Fiscal Note Summary
Bill Number: 5544 E S SB Title: Blockchain work group
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 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
Office of .0 0 0 0 .0 0 0 0 .0 0 0 0
Lieutenant
Governor
Office of the .0 8,740 8,740 8,740 .0 4,370 4,370 4,370 .0 0 0 0
Secretary of State
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Financial
Institutions
Department of .3 63,131 63,131 63,131 .6 63,131 63,131 63,131 .6 0 0 0
Commerce
Washington State .0 0 0 0 .0 0 0 0 .0 0 0 0
Health Care
Authority
Consolidated .0 0 0 0 .0 0 0 0 .0 0 0 0
Technology
Services
Department of .0 9,300 9,300 9,300 .0 4,700 4,700 4,700 .0 0 0 0
Agriculture
Total $ 0.3 81,171 81,171 81,171 0.6 72,201 72,201 72,201 0.6 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 Expenditures
FNPID 64983
:
FNS029 Multi Agency rollup
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Office of Lieutenant .0 0 0 .0 0 0 .0 0 0
Governor
Office of the Secretary of .0 0 0 .0 0 0 .0 0 0
State
Department of Financial .0 0 0 .0 0 0 .0 0 0
Institutions
Department of Commerce .0 0 0 .0 0 0 .0 0 0
Washington State Health .0 0 0 .0 0 0 .0 0 0
Care Authority
Consolidated Technology .0 0 0 .0 0 0 .0 0 0
Services
Department of .0 0 0 .0 0 0 .0 0 0
Agriculture
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: Gwen Stamey, OFM Phone: Date Published:
(360) 790-1166 Final 2/18/2022
FNPID 64983
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 5544 E S SB Title: Blockchain work group Agency: 080-Office of Lieutenant
Governor
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: Sarian Scott Phone: 360-786-7729 Date: 02/12/2022
Agency Preparation: Paul Bitar Phone: 360-407-8129 Date: 02/15/2022
Agency Approval: Paul Bitar Phone: 360-407-8129 Date: 02/15/2022
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 02/15/2022
Form FN (Rev 1/00) 175,880.00 Request # 805544ESSB-2
FNS063 Individual State Agency Fiscal Note 1 Bill # 5544 E S 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 .
5544 ES SB would require the lieutenant governor, as president of the senate, to appoint two senators to serve on the
blockchain work group. This version of the bill does not require anything else of the lieutenant governor's office.
Accordingly, the lieutenant governor does not expect this bill to have a fiscal impact.
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
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
Blockchain work group 080-Office of Lieutenant Governor
Form FN (Rev 1/00) 175,880.00 Request # 805544ESSB-2
FNS063 Individual State Agency Fiscal Note 2 Bill # 5544 E S SB
Part V: New Rule Making Required
Blockchain work group 080-Office of Lieutenant Governor
Form FN (Rev 1/00) 175,880.00 Request # 805544ESSB-2
FNS063 Individual State Agency Fiscal Note 3 Bill # 5544 E S SB
Individual State Agency Fiscal Note
Bill Number: 5544 E S SB Title: Blockchain work group Agency: 085-Office of the Secretary of
State
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.0 0.1 0.0 0.0 0.0
Account
General Fund-State 001-1 0 8,740 8,740 4,370 0
Total $ 0 8,740 8,740 4,370 0
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: Sarian Scott Phone: 360-786-7729 Date: 02/12/2022
Agency Preparation: Mike Woods Phone: (360) 704-5215 Date: 02/14/2022
Agency Approval: Mike Woods Phone: (360) 704-5215 Date: 02/14/2022
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 02/15/2022
Form FN (Rev 1/00) 175,620.00 Request # ESSB 5544-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5544 E S 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 .
Changes in ESSB 5544 compared to the previous version (SSB 5544):
ESSB 5544 removes a representative from the Office of the Lieutenant Governor from the work group; staffing of the
work group is now provided by the Department of Commerce (instead of the Office of the Lieutenant Governor ); and adds
an individual representing a federally recognized tribe located in Washington to the work group.
Summary of ESSB 5544:
The bill creates the Washington Blockhain Work Group to examine various potential applications for blockchain technology
including but not limited to applications in computing, banking and other financial services, the real estate transaction
process, health care, supply chain management, higher education, and public recordkeeping.
The work group has 21 members, one of which is the Secretary of State or the Secretary’s designee.
The work group must have its inaugural meeting by August 1, 2022. Staff support to the work group will be provided by the
Department of Commerce.
By December 1, 2023 the workgroup must submit a report to the Governor and legislature on potential uses and impacts of
blockchain, and recommended policies that will facilitate the development of blockchain applications in Washington.
The work group is dissolved January 1, 2024.
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.
The Office of the Secretary of State (OSOS) assumes the work group will meet monthly, and each meeting will require 8
hours of staff time that includes meeting and preparation time for an 18 month period between July, 2022 and December,
2023.
The cost of a WMS III would be $8,740 in FY23 and $4,370 in FY 24 for compensation and standard goods and services.
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 0 8,740 8,740 4,370 0
Total $ 0 8,740 8,740 4,370 0
Blockchain work group 085-Office of the Secretary of State
Form FN (Rev 1/00) 175,620.00 Request # ESSB 5544-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5544 E S SB
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.0 0.0
A-Salaries and Wages 6,443 6,443 3,221
B-Employee Benefits 2,004 2,004 1,002
C-Professional Service Contracts
E-Goods and Other Services 293 293 147
G-Travel
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 0 8,740 8,740 4,370 0
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
WMS III 128,856 0.1 0.0 0.0
Total FTEs 0.1 0.0 0.0 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
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
Blockchain work group 085-Office of the Secretary of State
Form FN (Rev 1/00) 175,620.00 Request # ESSB 5544-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5544 E S SB
Individual State Agency Fiscal Note
Bill Number: 5544 E S SB Title: Blockchain work group Agency: 102-Department of Financial
Institutions
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: Sarian Scott Phone: 360-786-7729 Date: 02/12/2022
Agency Preparation: Emily Fitzgerald Phone: (360) 902-8780 Date: 02/15/2022
Agency Approval: Levi Clemmens Phone: (360) 902-8818 Date: 02/15/2022
OFM Review: Cheri Keller Phone: (360) 584-2207 Date: 02/15/2022
Form FN (Rev 1/00) 175,680.00 Request # 22-017-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5544 E S 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 .
This bill creates the Washington Blockchain Work Group. Section 1 (e) states that the director of the Department of
Financial Institutions, or the director's designee, will be a member of this workgroup. While we cannot predict the amount
of time that DFI's participation in this work group will entail, we assume it will be no more than 40 hours. This cost will be
absorbed by the Department.
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
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
Blockchain work group 102-Department of Financial Institutions
Form FN (Rev 1/00) 175,680.00 Request # 22-017-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5544 E S SB
Part V: New Rule Making Required
Blockchain work group 102-Department of Financial Institutions
Form FN (Rev 1/00) 175,680.00 Request # 22-017-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5544 E S SB
Individual State Agency Fiscal Note
Bill Number: 5544 E S SB Title: Blockchain work group Agency: 103-Department of Commerce
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.0 0.6 0.3 0.6 0.6
Account
General Fund-State 001-1 0 63,131 63,131 63,131 0
Total $ 0 63,131 63,131 63,131 0
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: Sarian Scott Phone: 360-786-7729 Date: 02/12/2022
Agency Preparation: Josh Woodson Phone: 360-725-4048 Date: 02/18/2022
Agency Approval: Darrell Stoa Phone: (360) 725-2723 Date: 02/18/2022
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 02/18/2022
Form FN (Rev 1/00) 175,610.00 Request # 161-700-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5544 E S 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 .
Differences between ESSB 5544 and the Substitute Senate Bill :
Section 1 removes the Lieutenant Governor and replaces with an individual representing a federally recognized tribe located
in Washington, as a member of the work group.
Section 1(7) moves staff support for the work group from the Lieutenant Governor’s office to the Department of
Commerce (department).
Summary of ESSB 5544:
Section 1 adds a new section and establishes the Washington blockchain work group.
Section 1(7) requires the department to provide staff support for the work group, including arranging the inaugural meeting.
Section 1(11) the Washington blockchain work group must submit recommended policies report that facilitates the
development of blockchain application in Washington to the governor and the appropriate legislative committees by
December 1, 2023.
Section 1(12) expires section 1 and dissolves the work group on January 1, 2024.
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.
To accomplish this work the department estimates :
0.5 FTE Administrative Assistant 3 (1,044 hours) in FY23-FY24 to provide support for work group including arrange the
inaugural meeting, subsequent meetings and work with sector lead in preparing the report.
Salaries and Benefits:
FY23-FY24: $38,444 per fiscal year
Goods and Services:
FY23-FY24: $10,416 per fiscal year
Travel:
The department assumes travel to cover to support set-up of meetings and staffing needs.
FY23-FY24: $1,200 per fiscal year
Intra-agency Reimbursements:
Blockchain work group 103-Department of Commerce
Form FN (Rev 1/00) 175,610.00 Request # 161-700-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5544 E S SB
FY23-FY24: $13,071 per fiscal year
Note: Standard goods and services costs include supplies and materials, employee development and training, Attorney
General costs, central services charges and agency administration. Agency administration costs (e.g., payroll, HR, IT) are
funded under a federally approved cost allocation plan.
==========================
Total Costs:
FY23-FY24: $63,131 per fiscal year
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 0 63,131 63,131 63,131 0
Total $ 0 63,131 63,131 63,131 0
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.6 0.3 0.6 0.6
A-Salaries and Wages 26,519 26,519 26,519
B-Employee Benefits 11,925 11,925 11,925
C-Professional Service Contracts
E-Goods and Other Services 10,416 10,416 10,416
G-Travel 1,200 1,200 1,200
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements 13,071 13,071 13,071
9-
Total $ 0 63,131 63,131 63,131 0
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
Administrative Assistant 3 53,038 0.5 0.3 0.5 0.5
Administrative Services - Indirect 69,552 0.1 0.0 0.1 0.1
Total FTEs 0.6 0.3 0.6 0.6
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
Blockchain work group 103-Department of Commerce
Form FN (Rev 1/00) 175,610.00 Request # 161-700-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5544 E S SB
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
Blockchain work group 103-Department of Commerce
Form FN (Rev 1/00) 175,610.00 Request # 161-700-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 5544 E S SB
Individual State Agency Fiscal Note
Bill Number: 5544 E S SB Title: Blockchain work group Agency: 107-Washington State Health
Care Authority
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: Sarian Scott Phone: 360-786-7729 Date: 02/12/2022
Agency Preparation: Kathryn Kingman Phone: 360-725-0455 Date: 02/17/2022
Agency Approval: Michael Paquette Phone: 360-725-0875 Date: 02/17/2022
OFM Review: Jason Brown Phone: (360) 742-7277 Date: 02/17/2022
Form FN (Rev 1/00) 175,611.00 Request # 22-141-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5544 E S 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 .
See attached narrative
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 .
See attached narrative
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.
See attached narrative
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
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation . Totals need to agree with total FTEs in
Part IVB
NONE
Blockchain work group 107-Washington State Health Care Authority
Form FN (Rev 1/00) 175,611.00 Request # 22-141-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5544 E S SB
None
Part V: New Rule Making Required
Blockchain work group 107-Washington State Health Care Authority
Form FN (Rev 1/00) 175,611.00 Request # 22-141-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5544 E S SB
HCA Fiscal Note
Bill Number: 5544 ESSB HCA Request #: 22-141-1
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
This bill establishes the Washington blockchain work group and provides an expiration date for the
workgroup of January 1, 2024. The inaugural meeting will occur by August 1, 2022.
This engrossed bill differs from the substitute bill in that it removes the Office of the Lieutenant
Governor from the work group membership and adds a representative from a federally recognized tribe
located in Washington. It also moves support of the work group from the Office of the Lieutenant
Governor to the Department of Commerce.
-------------------------------------------------------------------------------------------------------------------------------------
The work group will elect a chair from among its members and will examine potential applications for
blockchain technology.
The work group will include the director of the Health Care Authority (HCA) or the director's designee.
The work group must submit a report on potential uses and impacts of blockchain, including impacts on
existing industries, utilities, demand for electricity, and demand for computer processing capacity, and
recommended policies that will facilitate the development of blockchain applications in Washington to
the governor and the appropriate committees of the legislature by December 1, 2023.
II. B - Cash Receipts Impact
None
II. C – Expenditures
No fiscal impact.
HCA will be represented on this work group but does not have responsibilities to manage it. Staff
support for this work group will be provided by the Department of Commerce.
Part IV: Capital Budget Impact
None
Part V: New Rule Making Required
None
Prepared by: K. Kingman Page 1 9:19 AM 02/17/22
Individual State Agency Fiscal Note
Bill Number: 5544 E S SB Title: Blockchain work group Agency: 163-Consolidated Technology
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: Sarian Scott Phone: 360-786-7729 Date: 02/12/2022
Agency Preparation: Christina Winans Phone: 360-407-8908 Date: 02/17/2022
Agency Approval: Tim Gallivan Phone: (360) 407-8215 Date: 02/17/2022
OFM Review: Tyler Lentz Phone: (360) 790-0055 Date: 02/17/2022
Form FN (Rev 1/00) 175,695.00 Request # 5544 ESSB-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5544 E S 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 .
ESSB 5544 establishes the Washington blockchain workgroup to examine various potential applications for blockchain
technology including but not limited to applications in computing, banking and other financial services, the real estate
transaction process, health care, and public record-keeping.
The amendments in ESSB 5544 have no fiscal impact on Consolidated Technology Services (WaTech).
ESSB 5544 changes from SSB 5544:
Section 1(2) the engross substitute bill removes the Lieutenant Governor from participating in the workgroup and directs
Department of Commerce (instead of the office of Lieutenant Governor) to provide support to the workgroup.
SSB 5544 changes from the original bill :
Section 1(2) the substitute bill adds more members to the workgroup.
SB 5544:
Section 1(2) establishes members of the workgroup to include the director of Consolidated Technology Services (WaTech)
or his/her designee.
There is no fiscal impact from this bill to WaTech. It is assumed WaTech can absorb the costs for this proposed bill in its
base budget if the workload of other enacted legislation does not exceed current staffing levels.
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
Blockchain work group 163-Consolidated Technology Services
Form FN (Rev 1/00) 175,695.00 Request # 5544 ESSB-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5544 E S SB
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
Blockchain work group 163-Consolidated Technology Services
Form FN (Rev 1/00) 175,695.00 Request # 5544 ESSB-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5544 E S SB
Individual State Agency Fiscal Note
Bill Number: 5544 E S SB Title: Blockchain work group Agency: 495-Department of Agriculture
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.0 0.1 0.0 0.0 0.0
Account
General Fund-State 001-1 0 9,300 9,300 4,700 0
Total $ 0 9,300 9,300 4,700 0
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: Sarian Scott Phone: 360-786-7729 Date: 02/12/2022
Agency Preparation: Susie Olsen Phone: 3609022077 Date: 02/16/2022
Agency Approval: Nicholas Johnson Phone: (360) 902-2055 Date: 02/16/2022
OFM Review: Jim Cahill Phone: (360) 790-2630 Date: 02/17/2022
Form FN (Rev 1/00) 175,891.00 Request # 22-54-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 5544 E S 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 .
Engrossed Substitute Senate Bill 5544 establishes the Washington blockchain workgroup to examine various potential
applications for blockchain technology.
Section 1 (2)(g) adds the director of the Washington State Department of Agriculture (WSDA) or directors designee as one
of the work group members. (6) requires the work group to hold its inaugural meeting by August 1, 2022. (11) requires the
work group to submit a report on recommended policies to the governor and appropriate legislative committees by
December 1, 2023. (12) section expiries January 1, 2024 and dissolves the work group.
The agency’s official voting member would likely be an agency executive leader from the Director’s Office, Food Safety
and Consumer Services Division, or Animal Services Division. This individual would participate in workgroup meetings,
workgroup projects as appropriate, and function as a liaison to relevant sectors of the agriculture industry. Relevant
agricultural connections include food and animal traceability. The agency would likely recommend that the chair invite a
second agency representative to participate in an advisory capacity to ensure that both food and animal traceability interests
are represented.
Based on lead agency assumptions by the Office of the Lieutenant Governor the work group will meet monthly for an
18-month period, assuming a start date of July 1, 2022 and expiration date of January 1, 2024.
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.
WSDA assumes 8 hours a month that includes meeting and preparation for an 18-month period, assuming a start date of
July 1, 2022 and expiration date of January 1, 2024.
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 0 9,300 9,300 4,700 0
Total $ 0 9,300 9,300 4,700 0
Blockchain work group 495-Department of Agriculture
Form FN (Rev 1/00) 175,891.00 Request # 22-54-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 5544 E S SB
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.0 0.0
A-Salaries and Wages 5,300 5,300 2,700
B-Employee Benefits 1,700 1,700 800
C-Professional Service Contracts
E-Goods and Other Services 600 600 300
G-Travel
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-Agency Administrative Overhead 1,700 1,700 900
Total $ 0 9,300 9,300 4,700 0
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
EMS 115,000 0.1 0.0 0.0
Total FTEs 0.1 0.0 0.0 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
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
Blockchain work group 495-Department of Agriculture
Form FN (Rev 1/00) 175,891.00 Request # 22-54-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 5544 E S SB
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce
Bill Number: 5544 E S SB Title: Blockchain work group
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: Lauren Gilmore Phone: 564-999-3560 Date: 02/17/2022
Leg. Committee Contact: Sarian Scott Phone: 360-786-7729 Date: 02/12/2022
Agency Approval: Alice Zillah Phone: 360-725-5035 Date: 02/17/2022
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 02/17/2022
Page 1 of 2 Bill Number: 5544 E S SB
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 FROM PRIOR BILL VERSION:
Amends the Washington Blockchain Work Group members to include :
--An individual representing a federally recognized tribe located in Washington
Amends the Washington Blockchain Work Group members to remove :
-- The lieutenant governor or the lieutenant governor's designee
SUMMARY OF CURRENT BILL VERSION:
This bill would establish the Washington Blockchain Work Group under a new section with an expiration date of January
1, 2024. The workgroup would include members of :
--An individual representing an association for county government officials in Washington, appointed by the governor
--Casualty insurance companies that do business in Washington, appointed by the governor
--An individual representing an association for public utility districts in Washington, appointed by the governor.
-- An individual representing an environmental advocacy organization with expertise in energy policy
-- An individual representing an environmental advocacy organization with expertise in sustainability
The legislation requires the work group to submit a report on potential uses and impacts of block chain, including impacts
on existing industries, utilities, demand for electricity, and demand for computer processing capacity, and recommended
policies that facilitate the development of block chain applications in Washington by December 1, 2023.
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.
NO EXPENDITURE CHANGES FROM PRIOR BILL VERSION.
SUMMARY OF CURRENT BILL VERSION:
This bill would have no fiscal impact on local governments due to the membership including associations representing
county government officials and public utility districts. The identified associations are independent nonprofit organizations
and as such, the Local Government Fiscal Note Program does not assess their costs.
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.
NO CHANGES FROM PRIOR BILL VERSION:
This legislation would not impact local government revenues.
SOURCES:
Washington Association of County Officials
Local Government Fiscal Note, SB 5544 (2022)
Senate Bill Report ESSB 5544, 2022
Page 2 of 2 Bill Number: 5544 E S SB
FNS060 Local Government Fiscal Note
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