Multiple Agency Fiscal Note Summary, 1168 HB, Artificial intelligence info (Washington Technology Solutions)

Summary

Multiple Agency Fiscal Note Summary for 1168 HB, titled Artificial intelligence info, whose Estimated Cash Receipts table lists Washington Technology Solutions at 933,800 for 2025-27, 1,058,800 for 2027-29, and 558,800 for 2029-31. The operating expenditures rollup shows Washington Technology Solutions with 1.0 FTE and 933,800 in 2025-27, and Eastern Washington University with 1.0 FTE and 240,000. The total row reads 2.0 FTEs and 1,173,800 for 2025-27. The Attorney General's Office narrative says the bill will not increase or decrease the workload of its Transportation and Public Construction Division or its Consumer Protection Division, so no costs are included.

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“Multiple Agency Fiscal Note Summary, 1168 HB, Artificial intelligence info (Washington Technology Solutions).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-01-17-a32393-d275182-1168-fn-final-6f981b770f/, SHA-256 026d9b1405f33a3d312e9f7d1cfa6cfc94fc0371354694b5b53c33bd9f783d29.

Full text

Multiple Agency Fiscal Note Summary
Bill Number: 1168 HB Title: Artificial intelligence info

Estimated Cash Receipts
Agency Name 2025-27 2027-29 2029-31
GF-State NGF-Outlook Total GF-State NGF-Outlook Total GF-State NGF-Outlook Total
Washington 0 0 933,800 0 0 1,058,800 0 0 558,800
Technology
Solutions

Total $ 0 0 933,800 0 0 1,058,800 0 0 558,800

Agency Name 2025-27 2027-29 2029-31
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI No fiscal impact

Local Gov. Other
Local Gov. Total

Estimated Operating Expenditures

FNPID 71524
:
FNS029 Multi Agency rollup
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Washington .0 0 0 0 .0 0 0 0 .0 0 0 0
State Leadership
Board
Office of .0 0 0 0 .0 0 0 0 .0 0 0 0
Attorney
General
Office of .0 0 0 0 .0 0 0 0 .0 0 0 0
Financial
Management
Washington .0 0 0 0 .0 0 0 0 .0 0 0 0
State Health
Care Authority
Human Rights .0 0 0 0 .0 0 0 0 .0 0 0 0
Commission
Washington 1.0 0 0 933,800 1.0 0 0 1,058,800 1.0 0 0 558,800
Technology
Solutions
Board of .0 0 0 0 .0 0 0 0 .0 0 0 0
Registration for
Professional
Engineers &
Land Surveyors
Traffic Safety .0 0 0 0 .0 0 0 0 .0 0 0 0
Commission
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Licensing
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Social and
Health Services
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Corrections
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Services for the
Blind
Superintendent .0 0 0 0 .0 0 0 0 .0 0 0 0
of Public
Instruction
Washington .0 0 0 0 .0 0 0 0 .0 0 0 0
State Center for
Childhood
Deafness and
Hearing Loss
Eastern 1.0 240,000 240,000 240,000 1.0 240,000 240,000 240,000 1.0 240,000 240,000 240,000
Washington
University
Eastern In addition to the estimate above,there are additional indeterminate costs and/or savings. Please see individual fiscal note.
Washington
University
Central .0 0 0 0 .0 0 0 0 .0 0 0 0
Washington
University
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Transportation
County Road .0 0 0 0 .0 0 0 0 .0 0 0 0
Administration
Board
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Ecology

Total $ 2.0 240,000 240,000 1,173,800 2.0 240,000 240,000 1,298,800 2.0 240,000 240,000 798,800

FNPID 71524
:
FNS029 Multi Agency rollup
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI No fiscal impact

Local Gov. Other
Local Gov. Total

Estimated Capital Budget Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Washington State .0 0 0 .0 0 0 .0 0 0
Leadership Board
Office of Attorney .0 0 0 .0 0 0 .0 0 0
General
Office of Financial .0 0 0 .0 0 0 .0 0 0
Management
Washington State Health .0 0 0 .0 0 0 .0 0 0
Care Authority
Human Rights .0 0 0 .0 0 0 .0 0 0
Commission
Washington Technology .0 0 0 .0 0 0 .0 0 0
Solutions
Board of Registration for .0 0 0 .0 0 0 .0 0 0
Professional Engineers &
Land Surveyors
Traffic Safety .0 0 0 .0 0 0 .0 0 0
Commission
Department of Licensing .0 0 0 .0 0 0 .0 0 0
Department of Social and .0 0 0 .0 0 0 .0 0 0
Health Services
Department of .0 0 0 .0 0 0 .0 0 0
Corrections
Department of Services .0 0 0 .0 0 0 .0 0 0
for the Blind
Superintendent of Public .0 0 0 .0 0 0 .0 0 0
Instruction
Washington State Center .0 0 0 .0 0 0 .0 0 0
for Childhood Deafness
and Hearing Loss
Eastern Washington .0 0 0 .0 0 0 .0 0 0
University
Central Washington .0 0 0 .0 0 0 .0 0 0
University
Department of .0 0 0 .0 0 0 .0 0 0
Transportation
County Road .0 0 0 .0 0 0 .0 0 0
Administration Board
Department of Ecology .0 0 0 .0 0 0 .0 0 0

Total $ 0.0 0 0 0.0 0 0 0.0 0 0

FNPID 71524
:
FNS029 Multi Agency rollup
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI No fiscal impact

Local Gov. Other
Local Gov. Total

Estimated Capital Budget Breakout

Prepared by: Gwen Stamey, OFM Phone: Date Published:
(360) 790-1166 Final 1/17/2025

FNPID 71524
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 083-Washington State
Leadership Board

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: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Ian Shelley Phone: (360) 407-2243 Date: 01/09/2025
Agency Approval: Ian Shelley Phone: (360) 407-2243 Date: 01/09/2025
OFM Review: Brian Fechter Phone: (360) 688-4225 Date: 01/13/2025

Form FN (Rev 1/00) 196,417.00 Request # -1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 defines relevant terms used throughout the chapter.

Section 2 requires developers of generative artificial intelligence systems or services post on their website documentation
about the data used to train the generative artificial intelligences system or service.

Section 3 requires the Attorney General to enforce this chapter and imposes a civil penalty to any developer found in
violation of the chapter.

Section 4 indicates that sections 1 through 3 constitute a new chapter in Title 19 RCW.

The Washington State Leadership Board (WSLB) does not operate as a developer of generative artificial intelligence
systems. Further this legislation does not require WSLB to be involved in assessing or collecting civil penalties. Therefore,
WSLB expects no fiscal impact from this legislation.
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

Artificial intelligence info 083-Washington State Leadership Board
Form FN (Rev 1/00) 196,417.00 Request # -1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 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.

Artificial intelligence info 083-Washington State Leadership Board
Form FN (Rev 1/00) 196,417.00 Request # -1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 100-Office of Attorney
General

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Chad Standifer Phone: 3605863650 Date: 01/10/2025
Agency Approval: Leah Snow Phone: 360-586-2104 Date: 01/10/2025
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 01/15/2025

Form FN (Rev 1/00) 196,630.00 Request # 011-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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.

1. The Attorney General’s Office (AGO) Transportation and Public Construction Division (TPC) has reviewed this bill and
determined it will not increase or decrease the division’s workload. The enactment of this bill will not impact the provision of
legal services to Washington Technology Solutions (WaTech) or the Department of Enterprise Services (DES) because the
bill requirements focus on private entities, and neither WaTech nor DES will be directly involved in state enforcement
actions. Therefore, no costs are included in this request.

2. The AGO Consumer Protection Division (CPR) has reviewed this bill and determined it will not increase or decrease the
division’s workload. CPR does not anticipate any impact due to the likelihood of industry compliance and the presence of
other regulators enforcing similar requirements with respect to covered entities that do business in multiple states.
Therefore, no costs are included in this request.
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.

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

IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.

Artificial intelligence info 100-Office of Attorney General
Form FN (Rev 1/00) 196,630.00 Request # 011-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
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.

Artificial intelligence info 100-Office of Attorney General
Form FN (Rev 1/00) 196,630.00 Request # 011-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 105-Office of Financial
Management

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Kathy Cody Phone: (360) 480-7237 Date: 01/13/2025
Agency Approval: Jamie Langford Phone: 360-902-0422 Date: 01/13/2025
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 01/15/2025

Form FN (Rev 1/00) 196,540.00 Request # 25-012-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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.

Sec 2 (1) sets a mandate for developers of artificial intelligence and generative artificial intelligence systems and products to
post a web notice regarding the data used by the developer to train the generative artificial intelligence system or service.

OFM contract managers will have to verify that vendors comply with the bill's requirements when procuring or updating
technology tools. OFM will incorporate this work into the procurement and vendor management processes utilizing current
resources. Therefore, there is no fiscal impact to OFM.
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.

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

IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE

Artificial intelligence info 105-Office of Financial Management
Form FN (Rev 1/00) 196,540.00 Request # 25-012-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
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.

Artificial intelligence info 105-Office of Financial Management
Form FN (Rev 1/00) 196,540.00 Request # 25-012-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info 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

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Marcott Jami Phone: 360-725-1758 Date: 01/14/2025
Agency Approval: Catrina Lucero Phone: 360-725-7192 Date: 01/14/2025
OFM Review: Jason Brown Phone: (360) 742-7277 Date: 01/14/2025

Form FN (Rev 1/00) 196,338.00 Request # 25-004-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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
This bill requires developers of generative artificial intelligence (GenAI) services to publish information regarding the data
sets used to train a GenAI tool.
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.

There is no cash receipt impact on HCA as a result of this bill.

Section 2
The Health Care Authority (HCA) may use or procure GenAI tools that will be subject to the requirements of this section.
HCA assumes that it would not be responsible for providing oversight of GenAI vendors to ensure compliance with the new
mandates given language in section 3 directing the Attorney General to perform enforcement duties. The impact of this bill
does not result in a fiscal impact to HCA.

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

IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.

Artificial intelligence info 107-Washington State Health Care Authority
Form FN (Rev 1/00) 196,338.00 Request # 25-004-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
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.

Artificial intelligence info 107-Washington State Health Care Authority
Form FN (Rev 1/00) 196,338.00 Request # 25-004-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 120-Human Rights
Commission

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Barbara Harris Phone: (360) 359-4950 Date: 01/15/2025
Agency Approval: Andreta Armstrong Phone: (360) 753-2558 Date: 01/15/2025
OFM Review: Megan Tudor Phone: (360) 890-1722 Date: 01/15/2025

Form FN (Rev 1/00) 197,136.00 Request # 120-2
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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.

HB 1168 proposes a new chapter in Title 19 RCW to increase transparency in artificial intelligence (AI), specifically
concerning generative AI systems and the data used to train them. Transparency Requirements: The bill requires AI
developers to disclose information about datasets, including whether they contain personal data, and whether any aggregate
consumer information is used. This transparency could have indirect implications for how AI systems are used in contexts
that might intersect with discrimination laws.

HB 1168 does not seem to amend RCW 49.60 directly. It does not introduce new categories of discrimination or expand
existing protected classes under the law. Therefore, it does not alter the anti-discrimination provisions in RCW 49.60 in
terms of defining or adding new grounds for discrimination.

While HB 1168 does not modify RCW 49.60, it could create an environment where AI developers must ensure that their
systems comply with Washington's anti-discrimination laws.

HB 1168 introduces important transparency requirements for AI developers, particularly regarding the data used to train
generative AI systems. However, it does not directly amend or expand the provisions of RCW 49.60, which governs
anti-discrimination protections.

If AI systems are found to be discriminatory in their outcomes (e.g., hiring algorithms that disadvantage certain minority
groups), the Human Rights Commission or the Attorney General could potentially pursue action under RCW 49.60 for
violations of discrimination laws.
For example, if a generative AI system is used in decision-making processes in housing or employment, and the AI system's
data training includes biased information, transparency under HB 1168 could bring attention to potential violations of RCW
49.60.
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.

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

Artificial intelligence info 120-Human Rights Commission
Form FN (Rev 1/00) 197,136.00 Request # 120-2
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
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.

Artificial intelligence info 120-Human Rights Commission
Form FN (Rev 1/00) 197,136.00 Request # 120-2
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note Revised

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 163-Washington Technology
Solutions

Part I: Estimates
No Fiscal Impact

Estimated Cash Receipts to:
ACCOUNT FY 2026 FY 2027 2025-27 2027-29 2029-31
Washington Technology Solutions 529,400 404,400 933,800 1,058,800 558,800
Revolving Account-Non-Appropriated
458-6
Total $ 529,400 404,400 933,800 1,058,800 558,800

Estimated Operating Expenditures from:
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 1.0 1.0 1.0 1.0 1.0
Account
Washington Technology Solutions 529,400 404,400 933,800 1,058,800 558,800
Revolving Account-Non-Appropriated
458-6
Total $ 529,400 404,400 933,800 1,058,800 558,800

Estimated Capital Budget Impact:

NONE

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: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Kelly Moore Phone: 360-407-8427 Date: 01/16/2025
Agency Approval: Nenita Ching Phone: 360-407-8878 Date: 01/16/2025
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 01/17/2025

Form FN (Rev 1/00) 197,287.00 Request # 1168 HB-2
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 (Definitions) – Provides definitions, including:
• Developer: "Developer" means a person, partnership, state or local government agency, or corporation that designs,
codes, produces, or substantially modifies an artificial intelligence system or service for use by members of the public. For
the purposes of this definition, "members of the public" does not include an
affiliate as defined in RCW 19.146.010 or a hospital's medical staff member.

• Generative artificial intelligence: "Generative artificial intelligence" means artificial intelligence that can generate derived
synthetic content, such as text, images, video, and audio, that emulates the structure and characteristics of the artificial
intelligence's training data.

Section 2 –Prescribes a transparency requirement for any system or service, or modification of a system or service, that
uses Generative AI and is made publicly available to Washingtonians for use. This requirement goes into effect on or before
January 1, 2026 for all systems or services meeting the criteria that were released on or after January 1, 2022. Information
on the system or service must be posted on the developer website with several attributes including, but not limited to:

• Summary of datasets (their sources/owners).
• Purpose/relationship of datasets to the AI system’s intended use.
• Number of data points (or ranges) and their characteristics or labels.
• Intellectual property status of the data (e.g., copyright, trademark).
• Whether data were purchased or licensed by the developer.
• Presence of personal information, as defined by a state notice of security breach law.
• Presence of aggregate consumer data.
• Any data cleaning or processing performed.
• Time period during which the data were collected.
• Dates the datasets were first used for development.
• Use of synthetic data generation and its purpose.
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.

Enterprise Architecture and Innovation is funded from the Washington Technology Solutions Revolving Account (458-1).
Revenues for Enterprise Architecture and Innovation are collected from state agencies who receive allocations through the
Enterprise Architecture and Innovation allocation in the Central Services Model (CSM). It is assumed that the allocations in
the CSM will be adjusted by the Legislature to ensure WaTech revenues are sufficient to support the required expenditures.
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.

Enterprise:
Section 1. The AI system or service definition is very broad to include almost any system that generates outputs.
Section 1(2) states:
"Artificial intelligence" means an engineered or machine based system that varies in its level of autonomy and that can, for
explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual
environments.
Artificial intelligence info 163-Washington Technology Solutions
Form FN (Rev 1/00) 197,287.00 Request # 1168 HB-2
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
The definition of AI including in the bill is broad and will impact almost all agencies using AI, which requires support from
WaTech. For the purpose of this fiscal note, WaTech assumes that the requirements only apply to generative AI.

Section 2. This section prescribes a transparency requirement for any system or service, or modification of a system or
service, that uses Generative AI and is made publicly available to Washingtonians for use. This requirement goes into effect
on or before January 1, 2026 for all systems or services meeting the criteria that were released on or after January 1, 2022.
Information on the system or service must be posted on the developer website with several attributes, as listed in the bill.

WaTech assumes it will need to provide guidance to agencies on how to identify, document, and publish the required
information on covered deployments of GenAI. However, section 2 also includes requirements beyond GenAI systems in
that it requires the “whether there was any cleaning, processing or other modification to datasets by the developer including
the intended purpose of those efforts in relation to the AI system or service” and “dates the datasets were first used during
the development of the artificial intelligence system or service.” Our fiscal note assumes that the guidance WaTech will
provide to agencies will exclusively focus on covered GenAI systems, not other forms of AI.

As a leader for technology policy and privacy for the state of Washington, WaTech assumes that it will provide assistance
to agencies in implementing the requirements of the bill. WaTech assumes that the Office of Privacy and Data Protection
(OPDP) within WaTech will assist agencies with template development and analysis assistance to agencies regarding
requirements under Section 2. WaTech assumes that the workload impact on OPDP can be absorbed within its base
budget.

A Generative AI Data Management Senior Specialist (1.0 FTE, 11IT) will be required by WaTech beginning FY 2026 to:
• Create enterprise standards, guidelines, and best practices for agencies to document training data sets for public-facing
generative AI solutions, and
• Provide direct consulting with agencies for current or proposed GenAI use cases that are publicly available.

For FY 26 through FY 29, WaTech will also need to contract with consultants to assist in developing templates and contract
terms for industry partners, and to provide training data for genAI systems or services to state agencies. The work to
address Section 2 of the bill would require funding through FY 29. We expect the number of GenAI use cases in the State
to increase over time, and our guidance and tools/templates will need to be updated accordingly. We expect we will need
continued specialized expertise from contractors to update our guidance/templates/tools based on different use cases across
the state based on complexity and impact.
Calculated expenditures were generated based on estimates and our assessment of industry rates for data and AI
architects. Specifically, we anticipate the following number of consultant hours at a rate of $250 per hour:
FY 2026 – 1,000 hours
FY 2027 – 500 hours
FY 2028 – 1,000 hours
FY 2029 – 1,000 hours

WaTech Operations:
Section 2. This section prescribes a transparency requirement for any system or service, or modification of a system or
service, that uses Generative AI and is made publicly available to Washingtonians for use. This requirement goes into effect
on or before January 1, 2026 for all systems or services meeting the criteria that were released on or after January 1, 2022.
Information on the system or service must be posted on the developer website with several attributes, as listed in the bill.

The bill has no fiscal impact on WaTech operations. WaTech does not currently have any systems or applications that meet
the criteria in Section 2. In the future, if WaTech implements a system or application that meets the criteria, WaTech will
work closely with vendors to obtain information to comply with the requirements set forth in the proposed bill.

Artificial intelligence info 163-Washington Technology Solutions
Form FN (Rev 1/00) 197,287.00 Request # 1168 HB-2
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2026 FY 2027 2025-27 2027-29 2029-31
458-6 Washington Non-Appr 529,400 404,400 933,800 1,058,800 558,800
Technology opriated
Solutions Revolving
Account
Total $ 529,400 404,400 933,800 1,058,800 558,800

III. B - Expenditures by Object Or Purpose
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 1.0 1.0 1.0 1.0 1.0
A-Salaries and Wages 147,200 147,200 294,400 294,400 294,400
B-Employee Benefits 44,200 44,200 88,400 88,400 88,400
C-Professional Service Contracts 250,000 125,000 375,000 500,000
E-Goods and Other Services 1,500 1,500 3,000 3,000 3,000
G-Travel 500 500 1,000 1,000 1,000
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements 86,000 86,000 172,000 172,000 172,000
9-
Total $ 529,400 404,400 933,800 1,058,800 558,800

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 2026 FY 2027 2025-27 2027-29 2029-31
IT Data Management - Senior 147,200 1.0 1.0 1.0 1.0 1.0
Manager (11IT)
Total FTEs 1.0 1.0 1.0 1.0 1.0

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

Artificial intelligence info 163-Washington Technology Solutions
Form FN (Rev 1/00) 197,287.00 Request # 1168 HB-2
FNS063 Individual State Agency Fiscal Note 4 Bill # 1168 HB
No Capital Budget Impact.

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

Artificial intelligence info 163-Washington Technology Solutions
Form FN (Rev 1/00) 197,287.00 Request # 1168 HB-2
FNS063 Individual State Agency Fiscal Note 5 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 166-Board of Registration for
Professional Engineers &
Land Surveyors

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Ian Shelley Phone: (360) 407-2243 Date: 01/08/2025
Agency Approval: Ian Shelley Phone: (360) 407-2243 Date: 01/08/2025
OFM Review: Kyle Siefering Phone: (360) 995-3825 Date: 01/09/2025

Form FN (Rev 1/00) 196,342.00 Request # -1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 defines relevant terms used throughout the chapter.

Section 2 requires developers of generative artificial intelligence systems or services to post on their website documentation
about the data used to train the generative artificial intelligences system or service.

Section 3 requires the Attorney General to enforce this chapter and imposes a civil penalty to any developer found in
violation of the chapter.

Section 4 indicates that sections 1 through 3 constitute a new chapter in Title 19 RCW.

The Board of Registration for Professional Engineers and Land Surveyors (BRPELS) does not operate as a developer of
generative artificial intelligence systems. Further this legislation does not require BRPELS to be involved in assessing or
collecting civil penalties. Therefore, BRPELS expects no fiscal impact from this legislation.
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.

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

Artificial intelligence info 166-Board of Registration for Professional Engineers & L
Form FN (Rev 1/00) 196,342.00 Request # -1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 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.

Artificial intelligence info 166-Board of Registration for Professional Engineers & L
Form FN (Rev 1/00) 196,342.00 Request # -1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 228-Traffic Safety
Commission

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Mark McKechnie Phone: 3607259889 Date: 01/10/2025
Agency Approval: Mark McKechnie Phone: 3607259889 Date: 01/10/2025
OFM Review: Brooke Gore Phone: (564) 669-0703 Date: 01/13/2025

Form FN (Rev 1/00) 196,560.00 Request # 1168a-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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.

No fiscal impact at this time. This could change if the agency moves in the direction of using generative AI tools that are
publicly accessible.

AN ACT Relating to increasing transparency in artificial intelligence; adding a new chapter to Title 19 RCW; and
prescribing penalties.

Section 1: definitions of AI, information, and other terms. Developer includes a state or local government agency.
"Generative artificial intelligence" means artificial intelligence that can generate derived synthetic content, such as text,
images, video, and audio, that emulates the structure and characteristics of the artificial intelligence's training data.

Section 2: Each time a generative AI system or service is developed or substantially modified and made publicly available
for use in Washington, the developer shall post documentation on datasets used in development of AI, including sources or
owners of datasets, description of datasets, number of datapoints in datasets, description of data types, whether datasets are
protected by copyright or patent, whether datasets were purchased or licensed, whether datasets contain personal
information, any cleaning or modification to datasets, time period of datasets, etc.

Sec. 3: AG shall enforce this chapter. Imposes penalties for violations.

Sec. 4: Sections 1 -3 constitute a new chapter in Title 19 RCW.
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.

No impact.

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

Artificial intelligence info 228-Traffic Safety Commission
Form FN (Rev 1/00) 196,560.00 Request # 1168a-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
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
No impact.

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

Artificial intelligence info 228-Traffic Safety Commission
Form FN (Rev 1/00) 196,560.00 Request # 1168a-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 240-Department of Licensing

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Deb Williams Phone: 360-902-0015 Date: 01/09/2025
Agency Approval: Collin Ashley Phone: (564) 669-9190 Date: 01/09/2025
OFM Review: Kyle Siefering Phone: (360) 995-3825 Date: 01/10/2025

Form FN (Rev 1/00) 196,317.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 establishes requirements for artificial intelligence (AI) systems built on or after January 1, 2022. The law would
require developers of AI systems to publicly share the information related to how the system was trained and what data
was used by January 1, 2026. It also requires the Attorney General’s Office to enforce the requirements and levy a fine for
non-compliance.

The Department of Licensing (DOL) does not currently develop Generative AI products; therefore we will not have any
products requiring us to post the datasets on our website. DOL assumes that by January 1, 2026, WaTech policies,
standards and guidance to agencies regarding the use of AI will be complete, and that agency adherence to those mandates
will be sufficient to demonstrate compliance with the requirements of this bill. The only action DOL will need to take in
addition to our current processes is confirm these items are posted on the developer (vendor) website as part of our SAIT
(Security, Architecture, Infrastructure and Technology) process.
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.

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

Artificial intelligence info 240-Department of Licensing
Form FN (Rev 1/00) 196,317.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 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.

Artificial intelligence info 240-Department of Licensing
Form FN (Rev 1/00) 196,317.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Agency 240 – Department of Licensing

Bill Number: HB 1168 Bill Title: Artificial Intelligence Information

Part 1: Estimates
☒ No Fiscal Impact

Estimated Cash Receipts:
Not applicable

Estimated Expenditures:
Not applicable

Check applicable boxes and follow corresponding instructions.
☐ If the fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent
biennia, complete this page only (Part I).
☐ 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.
☐ Capital budget impact, complete Part IV.
☐ Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 1/7/25
Agency Preparation: Deb Williams Phone: (360) 634-5083 Date: 1/8/25
Agency Approval: Collin Ashley Phone: (360) 634-5384 Date: 1/8/25

Request # 1
Bill # HB 1168

Page 1 of 3
Part 2 – Explanation

2.A – Brief Description Of What The Measure Does That Has Fiscal Impact

This bill establishes requirements for artificial intelligence (AI) systems built on or after January 1, 2022. The
law would require developers of AI systems to publicly share the information related to how the system was
trained and what data was used by January 1, 2026. It also requires the Attorney General’s Office to enforce
the requirements and levy a fine for non-compliance.

The Department of Licensing (DOL) does not currently develop Generative AI products, therefore we will not
have any products requiring us to post the datasets on our website. DOL assumes that by January 1,
2026 WaTech policies, standards and guidance to agencies regarding the use of AI will be complete, and that
agency adherence to those mandates will be sufficient to demonstrate compliance with the requirements of
this bill. The only action DOL will need to take in addition to our current processes is confirm these items are
posted on the developer (vendor) website as part of our SAIT (Security, Architecture, Infrastructure and
Technology) process.

Workload Indicators: (if applicable)

2.B - Cash receipts Impact
No impact

2.C – Expenditures
No Impact

Information Services:

Information services will make necessary changes to the existing SAIT process to ensure that software is
properly reviewed, tracked, and documented. These changes are expected to take approximately 20
hours of effort from an IT Enterprise Architecture Architect. This effort can be absorbed by DOLs current
processes.

Support Services:

No Impact.

Part 3 – Expenditure Detail

3.A – Operating Budget Expenditures

Page 2 of 3
3.B – Expenditures by Object or Purpose

3.C – FTE Detail

3.D – Expenditures by Program (Optional)

Part 4 – Capital Budget Impact

None.

Part 5 – New Rule Making Required

None.

Page 3 of 3
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 300-Department of Social and
Health Services

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Douglas Hoffer Phone: 360-902-8187 Date: 01/13/2025
Agency Approval: Dan Winkley Phone: 360-902-8236 Date: 01/13/2025
OFM Review: Jason Brown Phone: (360) 742-7277 Date: 01/14/2025

Form FN (Rev 1/00) 196,306.00 Request # 1168-HB-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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.

There is no fiscal impact to the Department of Social and Health Services (DSHS). This proposal is intended to increase
transparency when Artificial Intelligence (AI) solutions are made publicly available to Washington Citizens. The bill
requires developers of AI solutions to post on the developer's internet website documentation regarding the data used by the
developer to train the generative artificial intelligence system or service.

DSHS does not currently have any deployed technologies that would qualify under the bill as a generative AI solution. It is
possible that there would be an impact on future projects for deploying generative AI solutions.
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.

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

IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE

Artificial intelligence info 300-Department of Social and Health Services
Form FN (Rev 1/00) 196,306.00 Request # 1168-HB-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
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.

Artificial intelligence info 300-Department of Social and Health Services
Form FN (Rev 1/00) 196,306.00 Request # 1168-HB-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 310-Department of
Corrections

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Steven Elwanger Phone: (360) 725-8428 Date: 01/10/2025
Agency Approval: Wendi Gunther Phone: 360-725-8428 Date: 01/10/2025
OFM Review: Danya Clevenger Phone: (360) 688-6413 Date: 01/12/2025

Form FN (Rev 1/00) 196,303.00 Request # 14-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 enhances transparency and accountability in the development and deployment of artificial intelligence (AI) systems.
It includes provisions for disclosing information about AI systems, regular reporting, public access to this information, and
requiring the Attorney General to enforce this bill.

The effective date is assumed 90 days after adjournment of the session in which this bill is passed.
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.

None.

The Department of Corrections (DOC) assumes no fiscal impact.

At present, DOC does not utilize generative artificial intelligence (AI), except as built-in to select security tools. According
to section 2(2)(a): a developer is not required to post documentation regarding the data used to train a generative artificial
intelligence system or service for any of the following: a generative artificial intelligence system or service whose sole
purpose is to help ensure security and integrity. Therefore, these tools are exempt from the required disclosure due to being
used to mitigate threats from cyber-attacks.

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

Artificial intelligence info 310-Department of Corrections
Form FN (Rev 1/00) 196,303.00 Request # 14-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
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
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.

Artificial intelligence info 310-Department of Corrections
Form FN (Rev 1/00) 196,303.00 Request # 14-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 315-Department of Services
for the Blind

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Lorie Christoferson Phone: (360) 725-3840 Date: 01/08/2025
Agency Approval: Joseph Kasperski Phone: 360-725-3847 Date: 01/08/2025
OFM Review: Anna Minor Phone: (360) 790-2951 Date: 01/09/2025

Form FN (Rev 1/00) 196,318.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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.

The Department of Services for the Blind does not have or plan to have a generative artificial intelligence system or service
that is made publicly available to Washingtonians for their use.
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.

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

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

Artificial intelligence info 315-Department of Services for the Blind
Form FN (Rev 1/00) 196,318.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 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.

Artificial intelligence info 315-Department of Services for the Blind
Form FN (Rev 1/00) 196,318.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 350-Superintendent of Public
Instruction

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Cindy Jendryka-Wirkkala Phone: 3607256292 Date: 01/14/2025
Agency Approval: Mike Woods Phone: 360 725-6283 Date: 01/14/2025
OFM Review: Brian Fechter Phone: (360) 688-4225 Date: 01/15/2025

Form FN (Rev 1/00) 196,574.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 (New Section)
This section requires developers, including state and local governments, of generative artificial intelligence (AI) systems or
services that are made publicly available to Washingtonians, to post documentation on their website regarding the data used
by the developer to train the generative artificial intelligence system or service.
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.

There is no impact to cash receipts.

OSPI does not develop or modify any AI systems for public use. There are no anticipated AI systems within OSPI. There
is no fiscal impact to OSPI.

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

IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE

Artificial intelligence info 350-Superintendent of Public Instruction
Form FN (Rev 1/00) 196,574.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.

NONE
There is no capital budget impact.

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

Artificial intelligence info 350-Superintendent of Public Instruction
Form FN (Rev 1/00) 196,574.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 353-Washington State Center
for Childhood Deafness and
Hearing Loss

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: April Rupe Phone: 360-901-4010 Date: 01/08/2025
Agency Approval: Shauna Bilyeu Phone: (360)418-0402 Date: 01/08/2025
OFM Review: Gaius Horton Phone: (360) 819-3112 Date: 01/09/2025

Form FN (Rev 1/00) 196,316.00 Request # 1168 HB-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 does not have a fiscal impact on CDHY.
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.

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

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

Artificial intelligence info 353-Washington State Center for Childhood Deafness an
Form FN (Rev 1/00) 196,316.00 Request # 1168 HB-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 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.

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 370-Eastern Washington
University

Part I: Estimates
No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 1.0 1.0 1.0 1.0 1.0
Account
General Fund-State 001-1 120,000 120,000 240,000 240,000 240,000
Total $ 120,000 120,000 240,000 240,000 240,000
In addition to the estimates above, there are additional indeterminate costs and/or savings. Please see discussion.

Estimated Capital Budget Impact:

NONE

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: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Tammy Felicijan Phone: (509) 359-7364 Date: 01/10/2025
Agency Approval: Tammy Felicijan Phone: (509) 359-7364 Date: 01/10/2025
OFM Review: Ramona Nabors Phone: (360) 742-8948 Date: 01/15/2025

Form FN (Rev 1/00) 196,450.00 Request # 25-03-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 requires developers of a generative artificial intelligence system or service released on or after January 1, 2022 that
is made publicly available to Washingtonians for use to post on the developer's internet website documentation regarding the
data used by the developer to train the generative artificial intelligence system or service. This includes a high level
summary of the datasets used such as sources, descriptions of the purposes, number and types of datasets, copyrights,
licenses, processing of datasets, time periods of collection, as well as other pertinent disclosure information. Violation of this
requirement would make developers liable for a civil penalty of $5,000 per violation. Each day in violation is considered a
discrete violation.

It is unclear if the meaning of "publicly available to Washingtonians" includes students using various tools such as Microsoft
for Copilot, Google for Gemini, etc. However, Eastern believes that interaction with internally developed/custom Artificial
Intelligence tools used for recruiting, fund raising, or other interactions with the public would meet the definitions outlined in
this bill. Also included would be any AI research projects that are made publicly available. With the acceleration of AI
creation for items such as specialized bots, workflows, and chat bots, used in regular business activities, costs for
compliance could also accelerate.

It is difficult to estimate the cost of compliance. Eastern would likely need a compliance officer, whether in IT or Risk and
Compliance, to manage the work. It would also raise the price of vendor contracts.
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.

Contracts with third-party vendors for creation of Artificial Intelligence tools would increase related to the requirement to
collection dataset inputs for posting disclosures to EWU's website.

Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2026 FY 2027 2025-27 2027-29 2029-31
001-1 General Fund State 120,000 120,000 240,000 240,000 240,000
Total $ 120,000 120,000 240,000 240,000 240,000
In addition to the estimates above, there are additional indeterminate costs and/or savings. Please see discussion.

Artificial intelligence info 370-Eastern Washington University
Form FN (Rev 1/00) 196,450.00 Request # 25-03-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
III. B - Expenditures by Object Or Purpose
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 1.0 1.0 1.0 1.0 1.0
A-Salaries and Wages 90,000 90,000 180,000 180,000 180,000
B-Employee Benefits 30,000 30,000 60,000 60,000 60,000
C-Professional Service Contracts
E-Goods and Other Services
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 $ 120,000 120,000 240,000 240,000 240,000
In addition to the estimates above, there are additional indeterminate costs and/or savings. Please see discussion.

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 2026 FY 2027 2025-27 2027-29 2029-31
Compliance Manager - AI 90,000 1.0 1.0 1.0 1.0 1.0
Total FTEs 1.0 1.0 1.0 1.0 1.0

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

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

Artificial intelligence info 370-Eastern Washington University
Form FN (Rev 1/00) 196,450.00 Request # 25-03-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 375-Central Washington
University

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Alexa Orcutt Phone: 5099632955 Date: 01/10/2025
Agency Approval: Lisa Plesha Phone: (509) 963-1233 Date: 01/10/2025
OFM Review: Ramona Nabors Phone: (360) 742-8948 Date: 01/15/2025

Form FN (Rev 1/00) 196,494.00 Request # 1168 HB-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 (New): Defines the following terms: aggregate consumer information; artificial intelligence (AI); developer;
generative artificial intelligence; security and integrity; substantially modifies; synthetic data generation; and train a
generative artificial intelligence system or service.

Section 2 (New): (1) On or before January 1, 2026, and before each subsequent release of a generative AI system or
substantial modification to a system, released on/after January 1, 2022, and made publicly available to Washingtonians,
developers must post documentation on their website regarding the data used to train the system. This documentation must
include (but not limited to) a high-level summary of the datasets, their sources, purposes, number of data points, types of
data points, and information on whether the datasets include copyrighted or personal information, aggregate consumer
information, or synthetic data. Additionally, it should detail any processing or modifications to the datasets, the timeframe of
data collection, and the dates the datasets were first used. (2) Exceptions to this requirement apply to generative AI
systems solely for security and integrity, aircraft operation in national airspace, or national security, military, or defense
purposes made available only to a federal entity.

Section 3 (New): The AG will enforce this chapter and there will be penalties for developers that violate this chapter.

Section 4 (New): The new sections constitute a new chapter in Title 19 RCW.

Currently, CWU believes the language of the bill is too vague to give a determinate answer regarding if this will cause a
fiscal impact to our university. To our knowledge, we aren’t a developer of artificial intelligence.

If the proposed house bill 1168 were to pass and we were to purchase products that have artificial intelligence capabilities,
we assume the fiscal liability for possible violations described in this proposed bill will fall to the vendor as the developer.
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.

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

Artificial intelligence info 375-Central Washington University
Form FN (Rev 1/00) 196,494.00 Request # 1168 HB-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
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.

Artificial intelligence info 375-Central Washington University
Form FN (Rev 1/00) 196,494.00 Request # 1168 HB-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 405-Department of
Transportation

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Bob Loveless Phone: 360-705-7860 Date: 01/14/2025
Agency Approval: Matthew Modarelli Phone: 360-705-7601 Date: 01/14/2025
OFM Review: Maria Thomas Phone: (360) 229-4717 Date: 01/14/2025

Form FN (Rev 1/00) 196,847.00 Request # 25-04-1168-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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.

See attached fiscal note
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.

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

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

Artificial intelligence info 405-Department of Transportation
Form FN (Rev 1/00) 196,847.00 Request # 25-04-1168-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 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.

Artificial intelligence info 405-Department of Transportation
Form FN (Rev 1/00) 196,847.00 Request # 25-04-1168-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note
Bill Number: HB-1168 Title: Transparency in Artificial Agency: 405-Department of Transportation
Intelligence

Part I: Estimates
No Fiscal Impact (Explain required in section II. A)
Indeterminate Cash Receipts Impact (Explain in section II. B)
Partially Indeterminate Cash Receipts Impact (Explain in section II. B)
Indeterminate Expenditure Impact (Explain in section II. C)
Partially Indeterminate Expenditure Impact (Explain in section II. C)

If fiscal impact is less 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 greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete
entire fiscal note form Parts I-V
Capital budget impact, complete Part IV
Requires new rule making, complete Part V
Revised

Fiscal Detail
N/A

Agency Assumptions
N/A

Agency Contacts:
Preparer: Bob Loveless Phone: 360-705-7716 Date:01/09/25
Approval: Matt Modarelli Phone: 360-790-4980 Date: 01/10/25
Budget Manager: My-Hanh Mai Phone: 360-705-7545 Date: 01/10/25

Part II: Narrative Explanation
II. A - Brief description of what the measure does that has fiscal impact

House Bill 1168 requires developers of generative Artificial Intelligence (AI) systems to publicly disclose
detailed information about the datasets used to train these systems by January 1, 2026, to enhance transparency
and accountability in AI development. Certain AI systems, such as those for national security or aircraft
operations, are exempt, and non-compliance will result in civil penalties enforced by the Office of Attorney
General. The bill aims to ensure AI technologies are developed responsibly and used in an informed, transparent
manner.

House Bill 1168 has no fiscal impact on WSDOT because the department does not currently develop or utilize
AI models trained on WSDOT data or created internally. WSDOT’s existing applications rely on commercially
available AI tools that are externally developed and managed, exempting the agency from the disclosure
requirements of the bill.

Individual State Agency Fiscal Note 405-Department of Transportation
Individual State Agency Fiscal Note
II. B – Cash Receipts Impact

N/A

II. C - Expenditures

N/A

Part III: Expenditure Detail
III. A - Expenditures by Object or Purpose

N/A

Part IV: Capital Budget Impact
N/A

Part V: New Rule Making Required
N/A

Individual State Agency Fiscal Note 405-Department of Transportation
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 406-County Road
Administration Board

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Drew Woods Phone: 360-753-5989 Date: 01/15/2025
Agency Approval: Drew Woods Phone: 360-753-5989 Date: 01/15/2025
OFM Review: Maria Thomas Phone: (360) 229-4717 Date: 01/15/2025

Form FN (Rev 1/00) 196,415.00 Request # 25-002-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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.

The County Road Administration Board does not currently utilize any generative AI products nor do we have any plans to
make any generative AI products available to the public.
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.

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

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

Artificial intelligence info 406-County Road Administration Board
Form FN (Rev 1/00) 196,415.00 Request # 25-002-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 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.

Artificial intelligence info 406-County Road Administration Board
Form FN (Rev 1/00) 196,415.00 Request # 25-002-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: 461-Department of Ecology

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Allen Robbins Phone: 360-706-3043 Date: 01/10/2025
Agency Approval: Garret Ward Phone: 360-789-7938 Date: 01/10/2025
OFM Review: Lisa Borkowski Phone: (360) 742-2239 Date: 01/16/2025

Form FN (Rev 1/00) 196,345.00 Request # 25-017-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 relates to increasing transparency in artificial intelligence and would add a new chapter to Title 19 RCW: Business
Regulations - Miscellaneous and would prescribe penalties.

Section 1 adds a definitions section.

Section 2(1) states that on or before January 1, 2026, and before each time thereafter that a generative artificial intelligence
system or service, or a substantial modification to a generative artificial intelligence system or service, released on or after
January 1, 2022, is made publicly available to Washingtonians for use, regardless of whether the terms of that use include
compensation, the developer of the system or service shall post on the developer’s internet website documentation
regarding the data used by the developer to train the generative artificial intelligence system or service.

Section 2(2) states that a developer would not be required to post documentation regarding the data used to train a
generative artificial intelligence system or service if, a) the sole purpose is to help ensure security and integrity; b) the sole
purpose is the operation of aircraft in the national airspace; or c) if the generative artificial intelligence system or service
developed for national security, military, or defense purposes that is made available only to a federal entity.

Section 3 states that the attorney general shall enforce this chapter and may impose penalties when a developer is found in
violation.

Ecology does not currently develop generative artificial intelligence products and therefore this bill would have no new fiscal
impact to Ecology.
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.

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

Artificial intelligence info 461-Department of Ecology
Form FN (Rev 1/00) 196,345.00 Request # 25-017-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
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.

Artificial intelligence info 461-Department of Ecology
Form FN (Rev 1/00) 196,345.00 Request # 25-017-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB
Individual State Agency Fiscal Note

Bill Number: 1168 HB Title: Artificial intelligence info Agency: SDF-School District Fiscal
Note - SPI

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

Capital budget impact, complete Part IV.

Requires new rule making, complete Part V.

Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/07/2025
Agency Preparation: Cindy Jendryka-Wirkkala Phone: 3607256292 Date: 01/13/2025
Agency Approval: Mike Woods Phone: (360) 725-6283 Date: 01/13/2025
OFM Review: Brian Fechter Phone: (360) 688-4225 Date: 01/13/2025

Form FN (Rev 1/00) 196,599.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1168 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 legislation requires developers, including state and local governments, of generative artificial intelligence to make
available documentation regarding the data used by the developer to train generative artificial intelligence.
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.

There is no impact to cash receipts.

We do not see any fiscal impact to school districts. They have little to no engagement in this activity.

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

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

Artificial intelligence info SDF-School District Fiscal Note - SPI
Form FN (Rev 1/00) 196,599.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1168 HB
There is no capital budget impact.

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

Artificial intelligence info SDF-School District Fiscal Note - SPI
Form FN (Rev 1/00) 196,599.00 Request # HB 1168-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1168 HB

File and source

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Our copy: 2025-01-17_a32393_d275182_1168-fn-final.pdf
Original: No public link identified.