Individual State Agency Fiscal Note — 1516 S HB, Insurance/Affordable Units, Office of Insurance Commissioner
Summary
Individual State Agency Fiscal Note for Bill Number 1516 S HB (Insurance/affordable units), from Agency 160, the Office of Insurance Commissioner, with agency preparation dated February 24, 2025. Part I lists estimated operating expenditures of $184,109 in FY 2026 and in FY 2027 from the Insurance Commissioners Regulatory Account-State. The narrative says Section 1 requires the Office of Insurance Commissioner to conduct a study and provide a report to the Legislature by December 31st, 2026. It states that a total of $350,000 ($175,000 in FY2026 and FY2027) will be required to contract with a vendor to conduct the actuarial analysis required for the study.
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“Individual State Agency Fiscal Note — 1516 S HB, Insurance/Affordable Units, Office of Insurance Commissioner.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-03-26-a33141-d285982-1516-shb-fn-final-02-24-25-09c5e4cf95/
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Individual State Agency Fiscal Note
Bill Number: 1516 S HB Title: Insurance/affordable units Agency: 160-Office of Insurance
Commissioner
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 0.0 0.0 0.0 0.0 0.0
Account
Insurance Commissioners Regulatory 184,109 184,109 368,218 0 0
Account-State 138-1
Total $ 184,109 184,109 368,218 0 0
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Meghan Morris Phone: 360-786-7119 Date: 02/23/2025
Agency Preparation: David Forte Phone: 360-725-7268 Date: 02/24/2025
Agency Approval: Stacey Warick Phone: (360) 725-0000 Date: 02/24/2025
OFM Review: Jason Brown Phone: (360) 742-7277 Date: 02/24/2025
Form FN (Rev 1/00) 203,766.00 Request # 25-102-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1516 S HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.
Section 1 requires the Office of Insurance Commissioner (OIC) to conduct a study regarding how projects that develop
new permanently affordable homeownership units may utilize different insurance coverage options or approaches to reduce
costs related to condominium construction defect liability and maintain commensurate access to insurance coverage.
Section 1(2) requires the OIC consult with various identified entities.
Section 1(4) requires the report be provided to the Legislature by December 31st, 2026.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate, the
detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived. Explanation
of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.
Section 1 requires the Office of Insurance Commissioner (OIC) to conduct a study regarding how projects that develop
new permanently affordable homeownership units may utilize different insurance coverage options or approaches to reduce
costs related to condominium construction defect liability and maintain commensurate access to insurance coverage.
Section 1(2) requires the OIC consult with various identified entities.
Section 1(4) requires the report be provided to the Legislature by December 31st, 2026.
OIC assumes completing the study will require the OIC to spend time preparing for and facilitating meetings with the
identified entities we are required to consult with. OIC assumes we will need to research the property and liability market to
better understand the coverages available to housing providers. Additional research will be required to understand the
insurance framework for condominium builders, transfer of ownership and how the nonprofit and government entities that
are subject of the study differ from for profit entities before drafting a report. The OIC anticipates holding 12 meetings
with multiple entities in attendance with each meeting requiring 2 hours for preparation and facilitation. The OIC will
require the equivalent of 70 hours in FY2026 and FY2027 of a Senior Policy Analyst to prepare for and facilitate the
stakeholder meetings, conduct research and analysis, collect data, procure and manage the contractor, and draft the report.
In addition, based on OIC’s prior experience with procuring contractors for actuarial studies and accounting for the short
turnaround of the study, a total of $350,000 ($175,000 in FY2026 and FY2027) will be required to contract with a vendor to
conduct the actuarial analysis required for the study.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2026 FY 2027 2025-27 2027-29 2029-31
138-1 Insurance State 184,109 184,109 368,218 0 0
Commissioners
Regulatory Account
Total $ 184,109 184,109 368,218 0 0
Insurance/affordable units 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 203,766.00 Request # 25-102-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1516 S HB
III. B - Expenditures by Object Or Purpose
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 0.0 0.0 0.0
A-Salaries and Wages 5,691 5,691 11,382
B-Employee Benefits 1,596 1,596 3,192
C-Professional Service Contracts 175,000 175,000 350,000
E-Goods and Other Services 1,822 1,822 3,644
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 $ 184,109 184,109 368,218 0 0
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2026 FY 2027 2025-27 2027-29 2029-31
Senior Policy Analyst 131,328 0.0 0.0 0.0
Total FTEs 0.0 0.0 0.0 0.0
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
Insurance/affordable units 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 203,766.00 Request # 25-102-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1516 S HB
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