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Fiscal Note — 2329 S HB, Insurance Market/Housing (Multiple Agency Summary, Final 2/5/2024)

Summary

Multiple Agency Fiscal Note Summary for 2329 S HB, titled Insurance market/housing, marked Final, followed by individual state agency fiscal notes. The rollup lists estimated operating expenditures of 80,730 for the Department of Commerce and 315,093 for the Office of Insurance Commissioner for 2023-25, and no cost for the Department of Enterprise Services. The Office of Insurance Commissioner note says Section 2 requires a study due to the legislature by December 31, 2024, and authorizes the office to contract with a vendor to conduct an actuarial analysis. The Department of Enterprise Services note checks No Fiscal Impact.

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

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“Fiscal Note — 2329 S HB, Insurance Market/Housing (Multiple Agency Summary, Final 2/5/2024).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-02-20-a31985-d270484-2329-s-hb-fn-final-02-05-24-8b5c666b43/, SHA-256 323023f0229103d2e9748fc82f31fef3193837e7ae81e8f0d9bf8b695ac51251.

Full text

                                      Multiple Agency Fiscal Note Summary
   Bill Number: 2329 S HB                                         Title: Insurance market/housing

Estimated Cash Receipts
           NONE



Estimated Operating Expenditures
Agency Name                                2023-25                                                    2025-27                                                     2027-29
                       FTEs     GF-State       NGF-Outlook           Total       FTEs      GF-State       NGF-Outlook     Total       FTEs        GF-State       NGF-Outlook    Total
Department of            .3        80,730            80,730            80,730         .0              0              0            0     .0                   0              0           0
Commerce
Office of Insurance      .0                0             0           315,093          .0              0              0            0     .0                   0              0           0
Commissioner
Department of            .0                0             0                   0        .0              0              0            0     .0                   0              0           0
Enterprise Services

          Total $        0.3       80,730            80,730          395,823       0.0                0              0            0     0.0                  0              0           0




Estimated Capital Budget Expenditures
 Agency Name                                     2023-25                                                2025-27                                       2027-29
                                FTEs           Bonds                   Total            FTEs          Bonds              Total        FTEs           Bonds              Total
 Department of Commerce             .0                       0                    0        .0                    0                0          .0                  0              0
 Office of Insurance                .0                       0                    0        .0                    0                0          .0                  0              0
 Commissioner
 Department of Enterprise           .0                       0                    0        .0                    0                0          .0                  0              0
 Services

                      Total $      0.0                        0                   0        0.0                   0                0      0.0                     0              0




 Estimated Capital Budget Breakout
           NONE




  Prepared by:        Cheri Keller, OFM                                                                                   Phone:                     Date Published:
                                                                                                                          (360) 584-2207             Final 2/ 5/2024




        FNPID 70460
             :
  FNS029 Multi Agency rollup
                            Individual State Agency Fiscal Note

Bill Number:      2329 S HB              Title:     Insurance market/housing                                  Agency: 103-Department of Commerce


Part I: Estimates
      No Fiscal Impact

Estimated Cash Receipts to:

      NONE


Estimated Operating Expenditures from:
                                                       FY 2024               FY 2025              2023-25              2025-27              2027-29
 FTE Staff Years                                                  0.0                   0.5              0.3                      0.0              0.0
 Account
 General Fund-State            001-1                                0                80,730             80,730                      0                      0
                                       Total $                      0                80,730             80,730                      0                      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:     Michelle Rusk                                                     Phone: 360-786-7153            Date: 01/31/2024
   Agency Preparation:      Hayley Tresenriter                                                Phone: 360-725-3042            Date: 02/05/2024
   Agency Approval:         Hayley Tresenriter                                                Phone: 360-725-3042            Date: 02/05/2024
  OFM Review:               Cheri Keller                                                      Phone: (360) 584-2207          Date: 02/05/2024

Form FN (Rev 1/00) 193,544.00                                                                                                   Request # 148-300-1
FNS063 Individual State Agency Fiscal Note                              1                                                           Bill # 2329 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.

 Comparison of SHB 2329 and original bill:

 Section 2(2)(a): Is rewritten to include any identified insurers and requires the groups identified to provide the requested
 information to the commissioner.

 Section 2(4): Removes the commissioner's ability to cite data under RCW 34.05.010.

 Summary of SHB 2329:

 Section 2(1): A new section requires the Office of the Insurance Commissioner (OIC) to conduct a study, resulting in a
 legislative report recommending potential policy and budget options for creating an insurance pool for the study’s population.
 The OIC must consult with Commerce as part of the study. Commerce assumes staff time will be needed to support OIC
 during this study in FY25; Commerce assumes 0.1 of the following FTEs will be needed to meet the requirements of this
 bill. Management Analyst 4, Management Analyst 5, and a WMS 3. This will cost commerce $60,218 in FY25, which the
 program can handle with its current resources.

 Section 2(3&4): Requires the Insurance Commissioner (OIC) to submit a report to the legislature, due December 31st,
 2024. Where data may be requested from the Commerce for this study. Commerce assumes 0.1 FTE IT Data
 Management – Journey (208 hours) in FY25 will be used for the overall program and data coordination and management to
 assist with the report. The Data Management – Journey will oversee and establish data security and access protocols,
 manage data sharing agreement tasks, working with the agency contracts office. This will cost Commerce $20,512 in FY25,
 which the program can handle with its current resources.
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.

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.


 It is anticipated that Commerce will fulfill several requests for data from OIC and attend several meetings. The following
 FTEs will be needed to support OIC in the 12 2-hour meetings they are anticipating in FY25:

 0.1 Management Analyst 4
 0.1 Management Analyst 5
 0.1 WMS 3

 0.1 FTE IT Data Management – Journey (208 hours) in FY25 will be used for the overall program and data coordination
 and management to assist with the report. This will cost Commerce $20,512 in FY25, which the program can handle with its
 current resources.




Insurance market/housing                                                                                                   103-Department of Commerce
Form FN (Rev 1/00) 193,544.00                                                                                                     Request # 148-300-1
FNS063 Individual State Agency Fiscal Note                                2                                                           Bill # 2329 S HB
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title          Type                     FY 2024                 FY 2025             2023-25                2025-27           2027-29
 001-1      General Fund       State                                 0               80,730             80,730                       0                   0
                                 Total $                             0               80,730             80,730                       0                   0

III. B - Expenditures by Object Or Purpose
                                                     FY 2024                 FY 2025          2023-25                 2025-27        2027-29
  FTE Staff Years                                                                      0.5              0.3
  A-Salaries and Wages                                                            44,188             44,188
  B-Employee Benefits                                                             14,411             14,411
  C-Professional Service Contracts
  E-Goods and Other Services                                                       2,852              2,852
  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                                                   19,279             19,279
  9-
                                Total $                          0                80,730             80,730                      0                  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 2024            FY 2025       2023-25            2025-27         2027-29
  Administrative Services                                                                     0.1               0.1
  IT Data Management - Journey                                                                0.1               0.1
  Management Analyst 5                                                                        0.1               0.1
  Managment Analyst 4                                                                         0.1               0.1
  WMS Band 3                                                                                  0.1               0.1
                         Total FTEs                                                           0.5               0.3                                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
 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


Insurance market/housing                                                                                                  103-Department of Commerce
Form FN (Rev 1/00) 193,544.00                                                                                                    Request # 148-300-1
FNS063 Individual State Agency Fiscal Note                               3                                                           Bill # 2329 S HB
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.




Insurance market/housing                                                                                            103-Department of Commerce
Form FN (Rev 1/00) 193,544.00                                                                                              Request # 148-300-1
FNS063 Individual State Agency Fiscal Note                               4                                                     Bill # 2329 S HB
                            Individual State Agency Fiscal Note

Bill Number:      2329 S HB              Title:     Insurance market/housing                                  Agency: 160-Office of Insurance
                                                                                                                      Commissioner

Part I: Estimates
      No Fiscal Impact

Estimated Cash Receipts to:

      NONE


Estimated Operating Expenditures from:
                                                       FY 2024               FY 2025              2023-25              2025-27              2027-29
 FTE Staff Years                                                  0.0                   0.1              0.0                      0.0              0.0
 Account
 Insurance Commissioners Regulatory                                 0              315,093             315,093                      0                      0
 Account-State       138-1
                                Total $                             0              315,093             315,093                      0                      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:     Michelle Rusk                                                     Phone: 360-786-7153            Date: 01/31/2024
   Agency Preparation:      Andrew Davis                                                      Phone: 360-725-7170            Date: 02/01/2024
   Agency Approval:         Bryon Welch                                                       Phone: 360-725-7037            Date: 02/01/2024
  OFM Review:               Jason Brown                                                       Phone: (360) 742-7277          Date: 02/02/2024

Form FN (Rev 1/00) 193,140.00                                                                                                      Request # 24-59-1
FNS063 Individual State Agency Fiscal Note                              1                                                            Bill # 2329 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 2 requires the Office of Insurance Commissioner (OIC) to conduct a study, due to the legislature by December 31,
 2024, of the property and liability coverages available to housing providers receiving housing trust fund resources and
 serving extremely low-income households. Additionally, Section 2 authorizes the OIC to contract with a vendor to conduct
 an actuarial analysis to facilitate the development of recommendations concerning high-risk sharing pools. The OIC must
 conduct the study in consultation with multiple entities including:
 • housing providers receiving housing trust fund resources
 • authorized and unauthorized insurers
 • providers of nonprofit insurance services
 • risk-sharing pools for public housing authorities and nongovernmental owners of affordable housing properties
 • risk retention groups
 • relevant association groups including the surplus lines association of WA
 • other relevant state agencies including the Department of Enterprise Services, the Office of Risk Management and the
 Department of Commerce.
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.

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.


 Section 2 requires the Office of Insurance Commissioner (OIC) to conduct a study, due to the legislature by December 31,
 2024, of the property and liability coverages available to housing providers receiving housing trust fund resources and
 serving extremely low-income households. Additionally, Section 2 authorizes the OIC to contract with a vendor to conduct
 an actuarial analysis to facilitate the development of recommendations concerning high-risk sharing pools. The OIC must
 conduct the study in consultation with multiple entities. The report must make recommendations on potential policy or
 budget options, including considerations regarding the development of a single-state or multistate high-risk sharing pool and
 potential policy and budget options to address reinsurance market volatility.

 Completing the study will require the OIC to spend time preparing for and facilitating meetings with housing providers, the
 insurance industry, other state agencies and interested parties. The OIC will need to research the property and liability
 market to better understand the coverages available to housing providers. Additional research will be required to understand
 the insurance framework of risk-sharing pools for public housing authorities and nongovernmental owners of affordable
 housing properties before drafting a report. The OIC anticipates holding 12 meetings with multiple entities in attendance
 with each meeting requiring 2 hours for preparation and facilitation. The OIC will require the equivalent of 136 hours of a
 Senior Policy Analyst, in FY2025, to prepare for and facilitate the stakeholder meetings, conduct research and analysis,
 collect data, procure and manage the contractor, and draft the report. In addition, based on OIC’s prior experience with
 procuring contractors for actuarial studies and accounting for the short turnaround of the study, $300,000, in FY2025, will be
 required to contract with a vendor to conduct the actuarial analysis required for the study.




Insurance market/housing                                                                                         160-Office of Insurance Commissioner
Form FN (Rev 1/00) 193,140.00                                                                                                       Request # 24-59-1
FNS063 Individual State Agency Fiscal Note                                2                                                           Bill # 2329 S HB
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                                  0              315,093               315,093                       0                   0
            Commissioners
            Regulatory Account
                                 Total $                              0                 315,093             315,093                      0                   0

III. B - Expenditures by Object Or Purpose
                                                     FY 2024                  FY 2025             2023-25                 2025-27        2027-29
  FTE Staff Years                                                                       0.1                 0.0
  A-Salaries and Wages                                                              9,292                 9,292
  B-Employee Benefits                                                               2,782                 2,782
  C-Professional Service Contracts                                                300,000               300,000
  E-Goods and Other Services                                                        3,019                 3,019
  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               315,093               315,093                     0                   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 2024            FY 2025          2023-25            2025-27         2027-29
  Senior Policy Analyst                                 116,148                                   0.1               0.0
                             Total FTEs                                                           0.1               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
 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




Insurance market/housing                                                                                          160-Office of Insurance Commissioner
Form FN (Rev 1/00) 193,140.00                                                                                                        Request # 24-59-1
FNS063 Individual State Agency Fiscal Note                                3                                                            Bill # 2329 S HB
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.




Insurance market/housing                                                                                        160-Office of Insurance Commissioner
Form FN (Rev 1/00) 193,140.00                                                                                                      Request # 24-59-1
FNS063 Individual State Agency Fiscal Note                               4                                                           Bill # 2329 S HB
                              Individual State Agency Fiscal Note

Bill Number:        2329 S HB              Title:     Insurance market/housing                                  Agency: 179-Department of Enterprise
                                                                                                                        Services

Part I: Estimates
 X      No Fiscal Impact

Estimated Cash Receipts to:

       NONE


Estimated Operating Expenditures from:
 NONE


Estimated Capital Budget Impact:

      NONE




     The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
     and alternate ranges (if appropriate), are explained in Part II.

  Check applicable boxes and follow corresponding instructions:
        If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
        form Parts I-V.
        If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).

        Capital budget impact, complete Part IV.

        Requires new rule making, complete Part V.


     Legislative Contact:     Michelle Rusk                                                   Phone: 360-786-7153              Date: 01/31/2024
     Agency Preparation:      Sara Standish                                                   Phone: (360) 407-8229            Date: 02/04/2024
     Agency Approval:         Jessica Goodwin                                                 Phone: (360) 819-3719            Date: 02/04/2024
  OFM Review:                 Val Terre                                                       Phone: (360) 280-3973            Date: 02/05/2024

Form FN (Rev 1/00) 193,164.00                                                                                                               Request # -1
FNS063 Individual State Agency Fiscal Note                               1                                                              Bill # 2329 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.

 This bill is related to conducting a study of the insurance market for housing providers receiving housing trust fund
 resources.

 Section 2(1) requires the Office of the Insurance Commissioner (OIC) to conduct a study of the property and liability
 coverages available to housing providers who are receiving housing trust fund resources and serving extremely low-income
 households. In conducting the study, OIC must consult with a list of stakeholders, including the Department of Enterprise
 Services (DES).

 Section 2(3) states that OIC shall submit a report to the Legislature by December 31, 2024.

 The work associated with consulting with OIC can be completed within existing resources.

 There is no fiscal impact to the Department of Enterprise Services.
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.

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.


Part III: Expenditure Detail
III. A - Operating Budget Expenditures
     NONE
 III. B - Expenditures by Object Or Purpose
         NONE


 III. C - Operating FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals 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


Insurance market/housing                                                                                         179-Department of Enterprise Services
Form FN (Rev 1/00) 193,164.00                                                                                                           Request # -1
FNS063 Individual State Agency Fiscal Note                                2                                                         Bill # 2329 S HB
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.




Insurance market/housing                                                                                        179-Department of Enterprise Services
Form FN (Rev 1/00) 193,164.00                                                                                                          Request # -1
FNS063 Individual State Agency Fiscal Note                               3                                                         Bill # 2329 S HB


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