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Multiple Agency Fiscal Note Summary — 5420 SB: Veteran benefits access

Summary

A Multiple Agency Fiscal Note Summary for Bill Number 5420 SB, titled Veteran benefits access, with the rollup marked Final 2/28/2025. It lists the Department of Licensing with estimated cash receipts of 27,416 and estimated operating expenditures of 29,000 for 2025-27, and shows Fiscal note not available for the Office of Attorney General. The attached Individual State Agency Fiscal Notes from the 105-Office of Financial Management and the 124-Department of Retirement Systems each mark No Fiscal Impact. The Department of Licensing note describes Sections 3, 4 and 7 as amending the definitions of service member and uniformed services to include the US public health service commissioned corps and the national oceanic and atmospheric administration commissioned officer corps.

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“Multiple Agency Fiscal Note Summary — 5420 SB: Veteran benefits access.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-03-21-a33026-d285300-5420-fn-final-f552ecd28d/, SHA-256 941b43be56b83caf45cee67556082d7b5f726d78d89096f4979e2f06df75f3b8.

Full text

                                              Multiple Agency Fiscal Note Summary
   Bill Number: 5420 SB                                                Title: Veteran benefits access

 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
   Department of                              0                    0         27,416                     0                 0                    0                0               0                     0
   Licensing

            Total $                       0                        0         27,416                     0                 0                    0                0                0                    0




 Estimated Operating Expenditures
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
Office of           Fiscal note not available
Attorney
General
Office of               .0                0                 0                     0       .0                0              0               0           .0               0               0                   0
Financial
Management
Department of           .0                0                 0                     0       .0                0              0               0           .0               0               0                   0
Retirement
Systems
Department of           .0                0                 0              29,000         .0                0              0               0           .0               0               0                   0
Licensing
Military                .0                0                 0                     0       .0                0              0               0           .0               0               0                   0
Department
Department of           .0                0                 0                     0       .0                0              0               0           .0               0               0                   0
Veterans Affairs
Actuarial Fiscal    Non-zero but indeterminate cost and/or savings. Please see discussion.
Note - State
Actuary

          Total $       0.0               0                 0              29,000       0.0                 0              0               0         0.0                0               0                   0

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
 Local Gov. Other                Non-zero but indeterminate cost and/or savings. Please see discussion.

 Local Gov. Total

 Estimated Capital Budget Expenditures




         FNPID 73938
              :
  FNS029 Multi Agency rollup
Agency Name                              2025-27                              2027-29                              2029-31
                           FTEs        Bonds           Total       FTEs     Bonds         Total          FTEs     Bonds         Total
Office of Attorney         Fiscal note not available
General
Office of Financial            .0               0              0     .0               0              0      .0              0           0
Management
Department of                  .0               0              0     .0               0              0      .0              0           0
Retirement Systems
Department of Licensing        .0               0              0     .0               0              0      .0              0           0
Military Department            .0               0              0     .0               0              0      .0              0           0
Department of Veterans         .0               0              0     .0               0              0      .0              0           0
Affairs
Actuarial Fiscal Note -        .0               0              0     .0               0              0      .0              0           0
State Actuary

                 Total $      0.0               0              0     0.0              0              0     0.0              0           0


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
 Local Gov. Other           Non-zero but indeterminate cost and/or savings. Please see discussion.

 Local Gov. Total


Estimated Capital Budget Breakout




 Prepared by:     Arnel Blancas, OFM                                                        Phone:                Date Published:
                                                                                            (360) 000-0000        Final 2/28/2025




      FNPID 73938
           :
 FNS029 Multi Agency rollup
                              Individual State Agency Fiscal Note

Bill Number:        5420 SB                Title:     Veteran benefits access                                   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




     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:     William Bridges                                                 Phone: 360-786-7367              Date: 02/05/2025
     Agency Preparation:      Kathy Cody                                                      Phone: (360) 480-7237            Date: 02/10/2025
     Agency Approval:         Jamie Langford                                                  Phone: 360-902-0422              Date: 02/10/2025
  OFM Review:                 Gwen Stamey                                                     Phone: (360) 790-1166            Date: 02/10/2025

Form FN (Rev 1/00) 201,025.00                                                                                                       Request # 25-136-1
FNS063 Individual State Agency Fiscal Note                               1                                                               Bill # 5420 SB
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 bill amends access to state benefits and opportunities for veterans, uniformed service members, and military spouses by
  - Modifying eligibility criteria for pension and retirement benefits related to military service.
  - Broadening eligibility for veterans' benefits, adding a definition for "uniformed services" to include federal commissioned
 corps.
  - Expanding the types of military service that qualify military spouses and dependents for benefits.

 OFM can incorporate these changes within routine business practices. 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.

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

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




Veteran benefits access                                                                                            105-Office of Financial Management
Form FN (Rev 1/00) 201,025.00                                                                                                      Request # 25-136-1
FNS063 Individual State Agency Fiscal Note                                2                                                              Bill # 5420 SB
 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.




Veteran benefits access                                                                                             105-Office of Financial Management
Form FN (Rev 1/00) 201,025.00                                                                                                       Request # 25-136-1
FNS063 Individual State Agency Fiscal Note                               3                                                                Bill # 5420 SB
                              Individual State Agency Fiscal Note

Bill Number:        5420 SB                Title:     Veteran benefits access                                   Agency: 124-Department of Retirement
                                                                                                                        Systems

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:     William Bridges                                                 Phone: 360-786-7367              Date: 02/05/2025
     Agency Preparation:      Candice Myrum                                                   Phone: 360-664-7124              Date: 02/11/2025
     Agency Approval:         Mark Feldhausen                                                 Phone: 360-664-7194              Date: 02/11/2025
  OFM Review:                 Marcus Ehrlander                                                Phone: (360) 489-4327            Date: 02/12/2025

Form FN (Rev 1/00) 201,747.00                                                                                                       Request # 25-015-1
FNS063 Individual State Agency Fiscal Note                               1                                                               Bill # 5420 SB
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 would expand the definitions used to qualify military veterans and uniformed service members for particular
 benefits. The proposed changes would apply to certain members of the Public Employees’ Retirement System (PERS) Plan
 1 and the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System Plan 1.

 These changes do not have a fiscal impact on the Department of Retirement Systems (DRS). DRS already has the
 necessary systems and processes in place for allowing service credit for military time, and we only anticipate a small
 number of transactions.
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

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




Veteran benefits access                                                                                          124-Department of Retirement Systems
Form FN (Rev 1/00) 201,747.00                                                                                                     Request # 25-015-1
FNS063 Individual State Agency Fiscal Note                                2                                                             Bill # 5420 SB
 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.




Veteran benefits access                                                                                         124-Department of Retirement Systems
Form FN (Rev 1/00) 201,747.00                                                                                                    Request # 25-015-1
FNS063 Individual State Agency Fiscal Note                               3                                                             Bill # 5420 SB
                         Individual State Agency Fiscal Note

Bill Number:    5420 SB             Title:     Veteran benefits access                         Agency: 240-Department of Licensing


Part I: Estimates
      No Fiscal Impact

Estimated Cash Receipts to:
 ACCOUNT                                              FY 2026            FY 2027      2025-27           2027-29       2029-31
 Architects' License Account-State                               179                            179
     003-1
 Real Estate Commission Account-State                         3,646                            3,646
     026-1
 Business and Professions Account-State                      23,322                         23,322
          06L-1
 Funeral and Cemetery Account-State                              194                            194
     15V-1
 Geologists' Account-State     298-1                             75                             75
                                     Total $                 27,416                         27,416


Estimated Operating Expenditures from:
                                                  FY 2026              FY 2027       2025-27           2027-29        2029-31
 Account
 Architects' License Account-State                         179                   0         179                    0             0
     003-1
 Real Estate Commission Account-State                    3,646                   0        3,646                   0             0
          026-1
 Business and Professions                               23,322                   0       23,322                   0             0
 Account-State         06L-1
 Motor Vehicle Account-State        108                  1,584                   0        1,584                   0             0
 -1
 Funeral and Cemetery Account-State                        194                   0         194                    0             0
          15V-1
 Geologists' Account-State     298-1                        75                   0           75                   0             0
                                   Total $              29,000                   0       29,000                   0             0


Estimated Capital Budget Impact:

   NONE




Form FN (Rev 1/00) 201,674.00                                                                                Request # SB 5420-2
FNS063 Individual State Agency Fiscal Note                       1                                                 Bill # 5420 SB
   The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
   and alternate ranges (if appropriate), are explained in Part II.

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

      Capital budget impact, complete Part IV.

      Requires new rule making, complete Part V.


  Legislative Contact:      William Bridges                                                 Phone: 360-786-7367              Date: 02/05/2025
  Agency Preparation:       Gina Rogers                                                     Phone: 360-634-5036              Date: 02/11/2025
  Agency Approval:          Gerrit Eades                                                    Phone: (360) 902-3931            Date: 02/11/2025
  OFM Review:               Kyle Siefering                                                  Phone: (360) 995-3825            Date: 02/11/2025

Veteran benefits access                                                                                                 240-Department of Licensing
Form FN (Rev 1/00) 201,674.00                                                                                                 Request # SB 5420-2
FNS063 Individual State Agency Fiscal Note                             2                                                            Bill # 5420 SB
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 3 – Amends RCW 38.42.010(8) Amends the definition “service member” to include members of the US public
 health service commissioned corps or national oceanic and atmospheric administration commissioned officer corps.
 Section 4 – Amends RCW 41.18.150(2) Defines “uniformed services” to include the US public health service
 commissioned corps or national oceanic and atmospheric administration commissioned officer corps. Includes references to
 uniformed as well as armed forces.
 Section 7 – Amends RCW 43.24.130 (1) – (2) Includes references to the national oceanic and atmospheric administration
 commissioned officer corps along with other military and spouse licensing provisions.

 Per RCW 43.24.086, the cost of administering professional and business licensing programs must be funded by those
 industry’s licensing fees impacted by the proposed legislation. The expenditures will be spread between professions
 associated with 06L, Business and Professions, 026 Real Estate Commission
 and 108, Motor Vehicle Transportation
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.

 Please see attached fiscal note.

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.


 Please see attached fiscal note.

Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title           Type                      FY 2026               FY 2027               2025-27               2027-29              2029-31
 003-1      Architects' License State                            179                          0             179                          0                    0
            Account
 026-1      Real Estate         State                             3,646                       0               3,646                      0                    0
            Commission Account
 06L-1      Business and        State                            23,322                       0             23,322                       0                    0
            Professions Account
 108-1      Motor Vehicle       State                             1,584                       0               1,584                      0                    0
            Account
 15V-1      Funeral and         State                               194                       0                 194                      0                    0
            Cemetery Account
 298-1      Geologists' Account State                                75                       0                 75                       0                    0
                                  Total $                        29,000                       0             29,000                       0                    0




Veteran benefits access                                                                                                     240-Department of Licensing
Form FN (Rev 1/00) 201,674.00                                                                                                     Request # SB 5420-2
FNS063 Individual State Agency Fiscal Note                                3                                                             Bill # 5420 SB
 III. B - Expenditures by Object Or Purpose
                                                      FY 2026                FY 2027           2025-27              2027-29          2029-31
  FTE Staff Years
  A-Salaries and Wages
  B-Employee Benefits
  C-Professional Service Contracts
  E-Goods and Other Services                                 29,000                                   29,000
  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 $                      29,000                    0              29,000                     0             0


 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

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




Veteran benefits access                                                                                                  240-Department of Licensing
Form FN (Rev 1/00) 201,674.00                                                                                                  Request # SB 5420-2
FNS063 Individual State Agency Fiscal Note                               4                                                           Bill # 5420 SB
                           Individual State Agency Fiscal Note

 Agency 240 – Department of Licensing

 Bill Number: SB 5420             Bill Title: Access to state benefits and opportunities for veterans


Part 1: Estimates
☐ No Fiscal Impact
Estimated Cash Receipts:
Indeterminate - Potential revenue loss from irregular license renewals due to active service
Revenue                           Fund         FY 26       FY 27      25-27 Total    27-29 Total   29-31 Total
Architects' License                  003            179                        179           -              -
Real Estate Commission               026          3,646                      3,646           -              -
Business and Professions             06L         23,322                     23,322           -              -
Funeral and Cemetery                 15V            194                        194           -              -
Geologists'                          298             75                         75           -              -
                             Account Totals      27,416         -           27,416           -              -
Per RCW 43.24.086, the cost of administering professional and business licensing programs must be
funded by those industry’s licensing fees. Cash receipt impacts are driven by fee increases to satisfy this
requirement.
Estimated Expenditures:
Operating Expenditures            Fund         FY 26       FY 27      25-27 Total    27-29 Total   29-31 Total
Architects' License                  003            179         -              179           -              -
Real Estate Commission               026          3,646         -            3,646           -              -
Business and Professions             06L         23,322         -           23,322           -              -
Motor Vehicle                        108          1,584         -            1,584           -              -
Funeral and Cemetery                 15V            194         -              194           -              -
Geologists'                          298             75         -               75           -              -
                             Account Totals      29,000         -           29,000           -              -




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:                                      Phone: (360)                 Date:
 Agency Preparation: Gina Rogers                           Phone: (360) 360-5036        Date: 02/10/2025
 Agency Approval: Gerrit Eades                             Phone: (360) 902-3931        Date: 02/10/2025

 Request #       1
 Bill #          5420




                                                                                                    Page 1 of 4
Part 2 – Explanation
This bill allows individuals of the National Oceanic and Atmospheric Administration (NOAA)
commissioned officer corps to operate with their license similarly to those in the armed forces by:
    • allowing licenses to remain in effect during service and
    • allowing licenses to be placed in inactive status if requested by the licensee or their
          spouse/registered domestic partner.

2.A – Brief Description Of What The Measure Does That Has Fiscal Impact
Section 3 – Amends RCW 38.42.010(8) Amends the definition “service member” to include members of
the US public health service commissioned corps or national oceanic and atmospheric administration
commissioned officer corps.

Section 4 – Amends RCW 41.18.150(2) Defines “uniformed services” to include the US public health
service commissioned corps or national oceanic and atmospheric administration commissioned officer
corps. Includes references to uniformed as well as armed forces.

Section 7 – Amends RCW 43.24.130 (1) – (2) Includes references to the national oceanic and
atmospheric administration commissioned officer corps along with other military and spouse licensing
provisions.

Per RCW 43.24.086, the cost of administering professional and business licensing programs must be
funded by those industry’s licensing fees impacted by the proposed legislation. The expenditures will be
spread between professions associated with 06L, Business and Professions, 026 Real Estate Commission
and 108, Motor Vehicle Transportation.

2.B - Cash receipts Impact
Potential revenue loss from irregular license renewals due to active service and additional authority is
needed for the IS required programing in FY26, onetime.
The Cash impacts differ from expenditures impacts from exclusion of transportation fund, 108.
Revenue                            Fund         FY 26      FY 27     25-27 Total    27-29 Total   29-31 Total
Architects' License                   003            179                      179           -              -
Real Estate Commission                026          3,646                    3,646           -              -
Business and Professions              06L         23,322                   23,322           -              -
Funeral and Cemetery                  15V            194                      194           -              -
Geologists'                           298             75                       75           -              -
                              Account Totals      27,416       -           27,416           -              -


2.C – Expenditures
Assumption based on profession participation, expedited applications for military members and their
spouses, 7/1/23 through 6/30/24

Licenses Processed FY24 Fund            FY24
Architects' License            003         12
Real Estate Commission         026        244
Business and Professions       06L      1,561
Motor Vehicle                  108        106
Funeral and Cemetery          15V          13
Geologists'                    298          5
                       License Totals   1,941




                                                                                                   Page 2 of 4
Per RCW 43.24.086, the cost of administering professional and business licensing programs must be
funded by those industry’s licensing fees. Cash receipt impacts are driven by fee increases to satisfy this
requirement. The funds impacted by this legislation are listed in Operating Expenditure table below.

 Operating Expenditures                          Fund                   FY 26               FY 27        25-27 Total          27-29 Total          29-31 Total
 Architects' License                                003                      179                 -                179                 -                     -
 Real Estate Commission                             026                    3,646                 -              3,646                 -                     -
 Business and Professions                           06L                   23,322                 -             23,322                 -                     -
 Motor Vehicle                                      108                    1,584                 -              1,584                 -                     -
 Funeral and Cemetery                               15V                      194                 -                194                 -                     -
 Geologists'                                        298                       75                 -                 75                 -                     -
                                            Account Totals                29,000                 -             29,000                 -                     -
The fund distributions of expenditures are based on profession participation, expedited applications
for military members and their spouses, 7/1/2023 through 6/30/24 as shown in the Licenses
Processed FY24 table above.

Information Services:
The agency will use appropriated funds to hire contract programmers to accomplish this work or to
support current staff implementing this legislation within the required timeline. Appropriated funds may
also be used to hire agency temporary staff to support permanent staff assigned to this legislative effort.

Any change requires a process to ensure changes are correctly applied to the system. This involves
Project Managers that manage the team that completes the update, business analyst that documents
and reviews the system changes, architect services that analyzes how the update could have an effect
on other systems or DOL processes, developers who create the change, and testers and quality
assurance teams that ensure the update is working correctly.
Deloitte contracted Commercial Off the Shelf product $12,584, onetime FY26.

What IS Will Implement:
Update wording on questions on new, comity or reciprocity applications in the POLARIS application to
allow for identification of qualifying applicants.
    Cost Category                           Description                           Rate      2026      2027       2028       2029       2030       2031       Total Cost
                    Test to verify individual components meet
TESTER              requirements; ensure that other business transactions     $    27,144     8,100          -          -          -          -          -        8,100
                    have not been impacted.
                    Determine business requirements; translate
                    requirements into what changes are needed to various
BUSINESS ANALYST                                                              $    19,836     2,000          -          -          -          -          -        2,000
                    systems including account codes, inventory codes,
                    testing considerations, etc.
                    Create the conceptual model that defines the
                    structure, behavior and framework of a computerized
                    system including a breakdown of the system into
SECURITY AND
                    components, the component interactions and                $    19,836     2,000          -          -          -          -          -        2,000
ARCHITECT SERVICES
                    interfaces (including with the environment, especially
                    the user), and the technologies and resources to be
                    used in the design.
                    Trains business partners and employees in new system
TRAINER                                                                       $    27,144     2,700          -          -          -          -          -        2,700
                    processes and capabilities.
                    Office of the Chief Information Officer designated rate
PROJECT CONTINGENCY                                                           $    27,394     1,500          -          -          -          -          -        1,500
                    of 10%
                                         Totals                                              16,300          -          -          -          -          -       16,300

Per RCW 43.24.086, the cost of administering professional and business licensing programs must be
funded by those industry’s licensing fees impacted by the proposed legislation.




                                                                                                                                                    Page 3 of 4
Part 3 – Expenditure Detail
Operating Expenditures          Fund        FY 26       FY 27     25-27 Total    27-29 Total   29-31 Total
Architects' License                003           179         -             179           -              -
Real Estate Commission             026         3,646         -           3,646           -              -
Business and Professions           06L        23,322         -          23,322           -              -
Motor Vehicle                      108         1,584         -           1,584           -              -
Funeral and Cemetery               15V           194         -             194           -              -
Geologists'                        298            75         -              75           -              -
                           Account Totals     29,000         -          29,000           -              -
The fund distributions of expenditures are based on profession participation, expedited applications
for military members and their spouses, 7/1/2023 through 6/30/24 as shown in the Licenses
Processed FY24 table above.

Part 4 – Capital Budget Impact
None.

Part 5 – New Rule Making Required
None.




                                                                                                Page 4 of 4
                              Individual State Agency Fiscal Note

Bill Number:        5420 SB                Title:     Veteran benefits access                                   Agency: 245-Military Department


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:     William Bridges                                                 Phone: 360-786-7367              Date: 02/05/2025
     Agency Preparation:      Serina Roberts                                                  Phone: 2535127388                Date: 02/10/2025
     Agency Approval:         Regan Hesse                                                     Phone: 253-512-7498              Date: 02/10/2025
  OFM Review:                 Gwen Stamey                                                     Phone: (360) 790-1166            Date: 02/12/2025

Form FN (Rev 1/00) 201,561.00                                                                                                     Request # 5420 SB-1
FNS063 Individual State Agency Fiscal Note                               1                                                              Bill # 5420 SB
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 expands access to state benefits and opportunities for veterans, uniformed service members, and military spouses.
 There is no substantial impact to the Military Department.

 In several sections of the bill, the definition of armed services is expanded to include uniformed services which it defines as
 “member of the uniformed United States public health service commissioned corps and the national oceanic and
 atmospheric administration commissioned officer corps."

 The bill also expands rights to spouses of active service members.

 For the sections that do apply (Section 1, Section 2, Section 3, Section 6, Section 8, Section 12, Section 13), there is no
 substantial change as this work is already performed by Military Department employees.

 Therefore, the expansions included in the bill do not have a fiscal impact on our agency.
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


Veteran benefits access                                                                                                          245-Military Department
Form FN (Rev 1/00) 201,561.00                                                                                                      Request # 5420 SB-1
FNS063 Individual State Agency Fiscal Note                                2                                                                Bill # 5420 SB
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.




Veteran benefits access                                                                                                          245-Military Department
Form FN (Rev 1/00) 201,561.00                                                                                                      Request # 5420 SB-1
FNS063 Individual State Agency Fiscal Note                               3                                                                 Bill # 5420 SB
                              Individual State Agency Fiscal Note

Bill Number:        5420 SB                Title:     Veteran benefits access                                   Agency: 305-Department of Veterans
                                                                                                                        Affairs

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:     William Bridges                                                 Phone: 360-786-7367              Date: 02/05/2025
     Agency Preparation:      Mirach Sebhat                                                   Phone: (360) 451-2296            Date: 02/12/2025
     Agency Approval:         Yacob Zekarias                                                  Phone: 253-545-1942              Date: 02/12/2025
  OFM Review:                 Arnel Blancas                                                   Phone: (360) 000-0000            Date: 02/12/2025

Form FN (Rev 1/00) 201,840.00                                                                                                 Request # 305-25-017-2
FNS063 Individual State Agency Fiscal Note                               1                                                             Bill # 5420 SB
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.

 Senate Bill 5420 will have no fiscal impact on the Washington Department of Veterans Affairs (WDVA).

 The main intent of the bill is to enhance and clarify existing statutes regarding benefits, employment preferences, and
 service credit for service members, veterans, and their families. These changes primarily involve expanding definitions of
 uniformed services, expanded eligibility for employment preferences and pension service credits, and equitable access to
 existing benefits. The bill does not impose a fiscal burden on WDVA.
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

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




Veteran benefits access                                                                                              305-Department of Veterans Affairs
Form FN (Rev 1/00) 201,840.00                                                                                                 Request # 305-25-017-2
FNS063 Individual State Agency Fiscal Note                                2                                                             Bill # 5420 SB
 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.




Veteran benefits access                                                                                             305-Department of Veterans Affairs
Form FN (Rev 1/00) 201,840.00                                                                                                Request # 305-25-017-2
FNS063 Individual State Agency Fiscal Note                               3                                                             Bill # 5420 SB
                            Individual State Agency Fiscal Note

Bill Number:      5420 SB                Title:     Veteran benefits access                                   Agency: AFN-Actuarial Fiscal Note -
                                                                                                                      State Actuary

Part I: Estimates
      No Fiscal Impact

Estimated Cash Receipts to:

      NONE


Estimated Operating Expenditures from:
                             Non-zero but indeterminate cost and/or savings. Please see discussion.



Estimated Capital Budget Impact:

    NONE




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

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

      Capital budget impact, complete Part IV.

      Requires new rule making, complete Part V.


   Legislative Contact:     William Bridges                                                 Phone: 360-786-7367              Date: 02/05/2025
   Agency Preparation:      Darren Painter                                                  Phone: 360-786-6155              Date: 02/26/2025
   Agency Approval:         Sarah Baker                                                     Phone: 3607866160                Date: 02/26/2025
  OFM Review:               Marcus Ehrlander                                                Phone: (360) 489-4327            Date: 02/26/2025

Form FN (Rev 1/00) 204,024.00                                                                                                   Request # SB 5420-1
FNS063 Individual State Agency Fiscal Note                             1                                                              Bill # 5420 SB
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.

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
                                  Non-zero but indeterminate cost and/or savings. Please see discussion.
III. B - Expenditures by Object Or Purpose
                            Non-zero but indeterminate cost and/or savings. Please see discussion.


 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

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




Veteran benefits access                                                                                      AFN-Actuarial Fiscal Note - State Actuary
Form FN (Rev 1/00) 204,024.00                                                                                                  Request # SB 5420-1
FNS063 Individual State Agency Fiscal Note                                2                                                            Bill # 5420 SB
                                                       Office of the State Actuary’s Fiscal Note

                                    SUMMARY OF RESULTS
BRIEF SUMMARY OF BILL: This bill extends various state veteran's benefits to veterans
of the federal uniformed services including expanding access to fully subsidized military
service credit for pension benefits in PERS 1.
COST SUMMARY
    This bill has an Indeterminate Cost to PERS 1 because data was not available for
     members that could receive additional service credit under this bill at retirement.
    Plan costs that arise from this bill will be reflected in future PERS actuarial valuations
     and impact the UAAL rate described in RCW 41.45.060. UAAL rates are prescribed
     through Fiscal Year 2027.
HIGHLIGHTS OF ACTUARIAL ANALYSIS
    This bill increases total PERS 1 plan costs because fully subsidized service credit is
     provided at no cost to members with eligible uniformed service, and the resulting
     increase in pension benefits was not anticipated or funded during the members’
     careers. Other retirement systems administered by local governments may also be
     impacted; however, impacts to these systems are outside the scope of our analysis.
    Eligible members must claim the uniformed service credit prior to retirement to
     receive additional pension benefits under this bill. As of June 30, 2023, there were 506
     active members and 149 terminated vested members in PERS 1. Data was not available
     on the amount of service or number of members that may have eligible uniformed
     service.
    We anticipate any additional PERS 1 plan costs resulting from this bill will have a
     limited impact on future UAAL rates given the relatively small number of remaining
     active members, the 5-year cap on additional pension service credit, the requirement
     of 25 years of service credit or interruption of state employment to be eligible for these
     benefits, and the requirement that uniformed service must have been earned during a
     period of war. Please see the UAAL Contribution Rate Example Impacts section
     for an example of how these costs could impact contribution rates.




        See the remainder of this fiscal note for additional details on this summary and highlights.
     February 26, 2025                          SB 5420/HB 1738                                   Page 1 of 4
                                                   Office of the State Actuary’s Fiscal Note
WHAT IS THE PROPOSED CHANGE?

Summary of Bill

This bill impacts the following state-administered system:

        Public Employees’ Retirement System (PERS) Plan 1.

This bill extends state veteran’s benefits to individuals with service in the Public Health
Service Commissioned Corps (PHSCC) or the National Oceanic and Atmospheric
Administration Commissioned Officer Corps (NOAACOC) of the federal uniformed services.
These benefits include civil protections, hiring preferences, employment & reemployment
benefits, licensing benefits, and “military” service credit in state-administered and non-state
administered retirement systems.

This bill impacts PERS 1 by adding uniformed service to the federal service that is eligible for
military service credit benefits in the retirement system. Under this bill, members may receive
up to five Years Of Service (YOS) credit in PERS 1 for eligible uniformed service in the PHSCC
or NOAACOC.

Eligible uniformed service must be during a period of war as defined in the Revised Code of
Washington (RCW) 41.04.005 and the member must have served honorably or been
honorably discharged. Members must apply for uniformed service credit prior to retirement,
and no member or employer payments are required for this service.

The bill also adds uniformed service to the federal service that is eligible for military service
credit benefits in police, firefighter, and city employee retirement plans that pre-date the
current state retirement systems. These plans are administered by local governments, have
been closed for decades, and have no active members remaining.

Effective Date: 90 days after session

In this summary, we only include changes pertinent to our Actuarial Fiscal Note (AFN). See
the legislative bill report for a complete summary of the bill.

What Is the Current Situation?

PERS 1 provides up to five years of no-cost retirement system service credit for members with
eligible service in the armed forces. This service is also referred to as military service credit.

Eligible military service must be during a period of war as defined in RCW 41.04.005 and the
member must have been honorably discharged. Members must have 25 YOS in PERS 1 to
receive service credit for military service that occurred prior to state employment. There is no
minimum plan service required for military service that interrupts state employment.

Members must apply for military service credit prior to retirement, and no member or
employer payments are required for this service.




     February 26, 2025                     SB 5420/HB 1738                              Page 2 of 4
                                                  Office of the State Actuary’s Fiscal Note
Who Is Impacted and How?

We estimate this bill could affect active and terminated vested members of PERS 1 who have
eligible uniformed service by providing them additional retirement system service credit,
resulting in larger pension benefits. Data was not available on the number of members who
have eligible uniformed service or the amount of the service.

Members with eligible uniformed service may receive up to five years of PERS 1 service credit.
The example below compares pension benefits under current law and this bill if a member
with 25 years of PERS 1 service and a $75,000 Average Final Compensation (AFC) includes
the full five years in their benefit calculation. As you’d expect, a 20% increase in total service
credit translates to a 20% increase in annual pension benefits for this hypothetical member.

        Current Law: (25 YOS) x (2% Benefit Multiplier) x ($75,000 AFC) = $37,500
         per year
        Bill: (25 YOS + 5 Years Uniformed Service) x (2% Benefit Multiplier) x ($75,000
         AFC) = $45,000 per year

This bill could impact all PERS, the School Employees’ Retirement System, and the Public
Safety Employees’ System employers through increased Unfunded Actuarial Accrued Liability
(UAAL) contribution rates. This bill will not affect member contribution rates.

UAAL Contribution Rate Example Impacts

Any plan costs arising from this bill will be funded through future PERS 1 UAAL contribution
rates calculated with each rate-setting Actuarial Valuation Report (AVR). To understand the
potential impacts to the UAAL rate, we calculated the number of PERS 1 members receiving
the maximum five years of uniformed service required to change the UAAL rate by 0.01% or
1 basis point. We relied on assumptions disclosed in the 2023 AVR and further assumed each
example member has the PERS 1 average age of 71 with 25 YOS and $75,000 AFC. Based on
these assumptions, we found approximately 100 members would need to receive the full five
years of uniformed service credit to impact the UAAL rate by 1 basis point. As a comparison,
as of June 30, 2023, there are 506 active members and 149 terminated vested members in
PERS 1.

The Department of Retirement Systems shared that ten PERS 1 members from 2019-2024
received an average of 3.5 years of fully subsidized military service credit under current law
plan provisions. Given the scope of eligible military service under current law compared to
the uniformed service being added under this bill, we anticipate the number of members
receiving fully subsidized uniformed service credit in the future will occur at a lower rate than
the observed amount over the past five years for current law benefits.

In other words, we expect this bill to have a limited impact on future PERS 1 UAAL
contribution rates. Additionally, while the actual amount of uniformed service credit granted
may exceed these historical averages, we do not anticipate this bill to materially increase the
underlying risk to the system.




     February 26, 2025                     SB 5420/HB 1738                             Page 3 of 4
                                                      Office of the State Actuary’s Fiscal Note
ACTUARY’S CERTIFICATION

The undersigned certifies that:

       1. The actuarial assumptions, methods, and data used are reasonable for the
          purposes of this pricing exercise. The use of another set of assumptions,
          methods, and data may also be reasonable and might produce different results.
       2. Unless noted otherwise in this AFN, the disclosures included in the 2023 AVR
          regarding the methods used to determine a plan’s actuarially determined
          contribution, and the expected outcome of those methods, apply to this pricing
          exercise and remain unchanged.
       3. The risk analysis summarized in this AFN involves the interpretation of many
          factors and the application of professional judgment.
       4. The models used are appropriate for the purpose of this pricing. We are not
          aware of any known weaknesses or limitations of the models that have a
          material impact on the results.
       5. We prepared this AFN based on our current understanding of the bill as of the
          date shown in the footer. If the bill or our understanding of the bill changes, the
          results of a future AFN based on those changes may vary. Additionally, the
          results presented here may change after our next annual update of the
          underlying actuarial measurements.
       6. We prepared this AFN and provided opinions in accordance with Washington
          State law and accepted Actuarial Standards of Practice as of the date shown in
          the footer.

We prepared this AFN to support legislative deliberations during the 2025 Legislative Session
and it may not be appropriate for other purposes. We advise readers of this AFN to seek
professional guidance as to its content and interpretation, and not to rely on this
communication without such guidance. Please read the analysis shown in this AFN as a
whole; distribution of, or reliance on, only parts of this AFN could result in its misuse and
may mislead others.

The undersigned, with actuarial credentials, meets the Qualification Standards of the
American Academy of Actuaries to render the actuarial opinions contained herein. While this
AFN is meant to be complete, the undersigned is available to provide extra advice and
explanations as needed.




Sarah Baker, ASA, MAAA
Actuary

O:\Legislature\Session\2025\FiscalNotes\5420.SB.1738.HB.docx




      February 26, 2025                       SB 5420/HB 1738                         Page 4 of 4
                           LOCAL GOVERNMENT FISCAL NOTE
                                                     Department of Commerce

Bill Number:       5420 SB               Title:     Veteran benefits access


Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
X Cities:     All cities. Indeterminate increase in Unfunded Actuarial Accrued Liability (UAAL) contribution rates. Increase in
              administrative costs.
X Counties:      All counties. Same as above.
X Special Districts: All special districts. Same as above.

   Specific jurisdictions only:
   Variance occurs due to:

Part II: Estimates
    No fiscal impacts.

    Expenditures represent one-time costs:

    Legislation provides local option:

X Key variables cannot be estimated with certainty at this time:    The number of active or retired members of the uniformed services,
                                                                    and their spouses that will submit a request for retirement system
                                                                    credits. Increase in staff workload.
Estimated revenue impacts to:
  None

Estimated expenditure impacts to:

                              Non-zero but indeterminate cost and/or savings. Please see discussion.




Part III: Preparation and Approval
  Fiscal Note Analyst: Kristine Williams                                         Phone: (564) 250-5931         Date:    02/27/2025
  Leg. Committee Contact: William Bridges                                        Phone: 360-786-7367           Date:    02/05/2025
  Agency Approval:       Alice Zillah                                            Phone: 360-725-5035           Date:    02/27/2025
  OFM Review: Arnel Blancas                                                      Phone: (360) 000-0000         Date:    02/28/2025
Page 1 of 2                                                                Bill Number:    5420 SB
FNS060 Local Government Fiscal Note
 Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
   This legislation extends certain hiring preferences and no-cost retirement system service credits to members of the
   uniformed services, and their spouses, who choose to continue public service employment in Washington state. Members
   of the Public Health Service Commissioned Corps, and the National Oceanic and Atmospheric Administration
   Commissioned Officer Corps are included in the following categories:

   -    protection under the Washington Service Members’ Civil Relief Act (WSCRA),
   -    state-sponsored fire, police, and public employee retirement systems; and
   -    state and local civil service exams.

   This legislation would take effect 90 days after adjournment of the session in which the bill is passed.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.


   This legislation would have an indeterminate expenditure impact on local governments.

   The State Actuary's Office (actuary) estimates that this bill could affect active and terminated members of PERS 1 who
   have eligible uniformed service by providing them additional retirement system services credit, resulting in larger pension
   benefits. This legislation could impact all PERS, School Employees' Retirement System, and Public Safety Employees'
   systems through increased Unfunded Actuarial Accrued Liability (UAAL) employer contribution rates, but not member
   contribution rates. The Department of Veteran Affairs does not have population data available on the number of
   nonmilitary uniformed service members in Washington state or an estimate for the number of military members or
   dependents that would be impacted by this legislation. Therefore, these costs are indeterminate.

   The Local Government Fiscal Note Program assumes that local governments will incur staff and training costs necessary
   to update human resource policies and examination procedures. These costs will vary by jurisdiction and cannot be
   estimated.
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when
appropriate, the detail of revenue sources. Delineated between city, county and special district impacts.


   This bill would not impact local government revenues.

   SOURCES
   Department of Retirement Systems FN SB 5420 (2025)
   Department of Veterans Affairs
   State Actuary FN SB 5420 (2025)




 Page 2 of 2                                                              Bill Number:   5420 SB
 FNS060 Local Government Fiscal Note


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