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