Fiscal Note — 1266 S HB, Insurance Commissioner Email (Office of Insurance Commissioner)
Summary
Individual State Agency Fiscal Note for 1266 S HB, titled Insurance comnr./email, prepared for the Office of Insurance Commissioner. The note describes Section 1(12) as requiring licensees to inform the Office of Insurance Commissioner of any change of email address within 30 days of the change, with a possible penalty for failure to do so. It says Sections 2(3)(b) and 4(3)(b) require every insurance licensee and surplus line broker to provide a current email address and allow the Office to send written communication by email if the person has affirmatively consented.
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
“Fiscal Note — 1266 S HB, Insurance Commissioner Email (Office of Insurance Commissioner).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-03-09-a30915-d256335-1266-shb-fn-final-02-06-23-c7da4fcb5a/
, SHA-256 2f62995a4322f9e526374dce404788ec17e6634d6a60af1df137ab3e92eb12e3.Full text
Individual State Agency Fiscal Note
Bill Number: 1266 S HB Title: Insurance comnr./email Agency: 160-Office of Insurance
Commissioner
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
ACCOUNT FY 2024 FY 2025 2023-25 2025-27 2027-29
Insurance Commissioners Regulatory (96,360) (96,360)
Account-State 138-1
Total $ (96,360) (96,360)
Estimated Operating Expenditures from:
FY 2024 FY 2025 2023-25 2025-27 2027-29
FTE Staff Years 1.3 0.3 0.8 0.3 0.3
Account
Insurance Commissioners Regulatory 161,701 28,368 190,069 56,736 56,736
Account-State 138-1
Total $ 161,701 28,368 190,069 56,736 56,736
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: Meghan Morris Phone: 360-786-7119 Date: 02/02/2023
Agency Preparation: David Forte Phone: 360-725-7042 Date: 02/06/2023
Agency Approval: Michael Wood Phone: 360-725-7007 Date: 02/06/2023
OFM Review: Jason Brown Phone: (360) 742-7277 Date: 02/06/2023
Form FN (Rev 1/00) 181,661.00 Request # 23-64-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1266 S HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.
Section 1(12) requires licensees to inform the Office of Insurance Commissioner (OIC) of any change of email address
within 30 days of the change. Failure to timely inform the OIC of a change in email address may result in a penalty.
Sections 2(3)(b) and 4(3)(b) require every insurance licensee and surplus line broker to provide the OIC with a current
email address and allows the OIC to send written communication by email to a licensee’s last email address of record if the
person has affirmatively consented to receive communications from the OIC by email.
Sections 2(4) and 4(9) exclude email communication sent to an applicant prior to the issuance of a license, and
auto-generated system emails regarding a license application or license renewal processes, from the requirements of
Sections 2(3) and 4(8)
Section 5(1)(a) requires OIC to develop and implement a process for affected licensees to petition for the removal of any
disciplinary investigations and orders on the affected licensee’s public disciplinary record related solely to an email-based
violation of RCW 48.15.103 or 48.17.475 as those sections existed prior to July 1, 2023. Upon receipt of a petition with
appropriate documentation, the OIC is required to immediately remove any related disciplinary investigations and orders
from the affected licensee’s public disciplinary record.
Section 5(2) requires the OIC to identify the amount of money collected as fines from each affected licensee solely for
email-based violations of RCW 48.15.103 or 48.17.475 as those sections existed prior to July 1, 2023, and, as soon as
practicable, refund such money to each affected licensee from the existing operating budget for the OIC.
Section 7 states that this law would take effect on July 1, 2023.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate, the
detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived. Explanation
of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
For purposes of this fiscal note, the Office of Insurance Commissioner (OIC) assumes the OIC will need to look back 20
years.
Section 5(2) requires the Office of Insurance Commissioner (OIC) to identify the amount of money collected as fines from
each affected licensee solely for email-based violations of RCW 48.15.103 or 48.17.475 as those sections existed prior to
July 1, 2023, and, as soon as practicable, refund such money to each affected licensee from the existing operating budget
for the OIC.
From 2002 through 2022, there were approximately 324 cases (162 cases between 2018 and 2022; and an assumed 162
cases between 2002 and 2017) where licensees only violated RCW 48.17.475 failure to respond.
The OIC assumes that 90% of the 324 cases, or 292 cases, where licensees only violated RCW 48.17.475 failure to
respond will request a refund. The average fine amount for this type of violation is $330, requiring one-time refunds totaling
$96,360 (292 cases x $330) in FY2024.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.
Insurance comnr./email 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 181,661.00 Request # 23-64-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1266 S HB
For purposes of this fiscal note, the Office of Insurance Commissioner (OIC) assumes the OIC will need to look back 20
years.
Sections 2(3)(b) and 4(3)(b) require every insurance licensee and surplus line broker to provide the OIC with a current
email address and allows the OIC to send written communication by email to a licensee’s last email address of record if the
person has affirmatively consented to receive communications from the OIC by email. The OIC will be required to
develop a process for licensees to affirmatively consent to receiving emails, as well as sending notices via USPS. OIC
assumes, beginning in FY2024, it will require 10 hours a week, or a total of 520 hours a year, of an Insurance Technician 3
to monitor compliance, print, scan, and mail notices, and track those who have attested to receive emails.
Section 5(1)(a) requires OIC to develop and implement a process for affected licensees to petition for the removal of any
disciplinary investigations and orders on the affected licensee’s public disciplinary record related solely to an email-based
violation of RCW 48.15.103 or 48.17.475. Upon receipt of a petition with appropriate documentation, the OIC is required to
immediately remove any related disciplinary investigations and orders from the affected licensee’s public disciplinary
record. From 2002 through 2022, there were 324 cases where licensees only violated RCW 48.17.475 failure to respond.
The OIC assumes that 90% of the 324 cases, or 292 cases, where licensees only violated RCW 48.17.475 failure to
respond will petition for the removal of disciplinary investigations and order from their disciplinary record. The OIC will
require one-time costs, in FY2024, of 73 hours (292 cases x 15 minutes), of an Insurance Technician 3 to review petitions
and refer them to OIC Legal Affairs. The OIC assumes it will take three hours of a Paralegal 2 and one hour of an
Insurance Enforcement Specialist to process each petition requiring a one-time cost in FY2024 of 876 hours (292 cases x 3
hour) of a Paralegal 2 and 292 hours (292 cases x 1 hour) of an Insurance Enforcement Specialist.
Section 5(2) requires the OIC to identify the amount of money collected as fines from each affected licensee for
email-based violations of RCW 48.15.103 or 48.17.475 and, as soon as practicable, refund such money to each affected
licensee from the existing operating budget for the OIC. From 2002 through 2022, there were 324 cases where licensees
only violated RCW 48.17.475 failure to respond. The OIC assumes that 90% of the 324 cases, or 292 cases will request a
refund. The OIC assumes one-time costs, in FY2024, of 5 hours for a Functional Program Analyst 4 to identify the amount
of money collected and 12 hours of a Fiscal Technician 3 to process up to 292 refunds.
Many of the email requirements of this bill are currently provided in WAC 284-17. These rules would need to be eliminated
for duplicity reasons. As the bill is currently written, it would require ‘normal’ rulemaking, in FY2024, to clarify areas in
question and work with industry.
Section 7 states that this law would take effect on July 1, 2023.
Ongoing Costs:
Salary, benefits and associated costs for .32 FTE Insurance Technician 3.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2024 FY 2025 2023-25 2025-27 2027-29
138-1 Insurance State 161,701 28,368 190,069 56,736 56,736
Commissioners
Regulatory Account
Total $ 161,701 28,368 190,069 56,736 56,736
Insurance comnr./email 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 181,661.00 Request # 23-64-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1266 S HB
III. B - Expenditures by Object Or Purpose
FY 2024 FY 2025 2023-25 2025-27 2027-29
FTE Staff Years 1.3 0.3 0.8 0.3 0.3
A-Salaries and Wages 94,084 15,410 109,494 30,820 30,820
B-Employee Benefits 35,277 7,284 42,561 14,568 14,568
C-Professional Service Contracts
E-Goods and Other Services 32,340 5,674 38,014 11,348 11,348
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 $ 161,701 28,368 190,069 56,736 56,736
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 2024 FY 2025 2023-25 2025-27 2027-29
Fiscal Technician 3 37,152 0.0 0.0
Functional Program Analyst 4 80,952 0.1 0.0
Insurance Enforcement Specialist 99,516 0.2 0.1
Insurance Technician 3 48,156 0.4 0.3 0.4 0.3 0.3
Paralegal 2 69,756 0.5 0.3
Senior Policy Analyst 108,432 0.2 0.1
Total FTEs 1.3 0.3 0.8 0.3 0.3
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
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
Many of the email requirements of this bill are currently provided in WAC 284-17. These rules would need to be eliminated
for duplicity reasons. As the bill is currently written, it would require ‘normal’ rulemaking, in FY2024, to clarify areas in
Insurance comnr./email 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 181,661.00 Request # 23-64-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1266 S HB
question and work with industry.
Insurance comnr./email 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 181,661.00 Request # 23-64-1
FNS063 Individual State Agency Fiscal Note 5 Bill # 1266 S HB
File and source
- File
- 2023-03-09_a30915_d256335_1266-shb-fn-final-02-06-23.pdf
- Size
- 119,866 bytes
- SHA-256
- 2f62995a4322f9e526374dce404788ec17e6634d6a60af1df137ab3e92eb12e3
- Original
- No public link identified.