Fiscal Note - HB 2446 Quantum Technology Industry (Department of Commerce)
Summary
Individual State Agency Fiscal Note for HB 2446, Quantum technology industry, from the Department of Commerce, listing the legislative contact date as 01/13/2026, agency preparation 01/16/2026 and OFM review 01/19/2026. Part I estimates operating expenditures of 872,259 from General Fund-State for FY 2026 and 0 for FY 2027, with 0.4 FTE staff years in FY 2026. The narrative states that HB 2446 requires the Department of Commerce to develop a state quantum strategy and walks through Section 2(2) of the bill. The cost detail lists Professional Services of $750,000 and Goods and Services of $42,150 for FY26, with Total Costs FY26 of $872,259. Parts III through V give expenditure, capital budget and rule-making detail.
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“Fiscal Note - HB 2446 Quantum Technology Industry (Department of Commerce).”
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Individual State Agency Fiscal Note
Bill Number: 2446 HB Title: Quantum technology industry Agency: 103-Department of
Commerce
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 0.4 0.0 0.2 0.0 0.0
Account
General Fund-State 001-1 872,259 0 872,259 0 0
Total $ 872,259 0 872,259 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: Martha Wehling Phone: 360-786-7067 Date: 01/13/2026
Agency Preparation: Kate Carney-Taylor Phone: (360) 915-4686 Date: 01/16/2026
Agency Approval: Lucas Rubstello Phone: (206) 613-7565 Date: 01/16/2026
OFM Review: Marie Davis Phone: (360) 890-1163 Date: 01/19/2026
Form FN (Rev 1/00) 208,228.00 Request # 31-700-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2446 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 2446 requires the Department of Commerce to develop a state quantum strategy to ensure Washington maintains its
industry competitiveness
Section 2(2) establishes what the state quantum strategy shall include:
• Section 2(2)(a): Overview of current industry, projected growth, strategies to increase jobs and capital investments.
• Section 2(2)(b): Identification of projects and programs that improve the economic vitality of the quantum technology
industry.
• Section 2(2)(c): Identify key partnerships that will provide critical funding and networks to accelerate the quantum
technology industry.
• Section 2(2)(d): Provide analysis of state policies that will provide opportunities to grow the quantum technology
industry
• Section 2(2)(e): Exploration of quantum application research in the following specific industry areas; nuclear physics,
energy and renewables, material sciences, and chemistry
• Section 2(2)(f): Identify research and development opportunities with Washington based research institutions.
• Section 2(2)(g): Develop partnerships with industry and a regional organization of companies, universities, national
labs, and business organizations to develop plans to attract federal investment
• Section 2(2)(h): Analysis of the anticipated impacts of a quantum technology industry, including overall economic
opportunities and workforce development.
Section 2(3): The department may contract with a Washington State based quantum computing manufacturing entity or
regional organization of companies, universities, national labs, and business organization to assist with the development of
the industry strategy.
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.
The Department of Commerce's (the department) assumes all work must commence and be completed within FY 2026, as
defined in Section 2 (5) with the final strategy submitted by June 30th 2026. Additionally, work cannot start until the
budget bill is passed, assumed to be April 2026. This results in all work being completed within a three-month period.
This compressed timeline is assumed to incur additional costs.
Section 2(2) and subsections 2(2)(a) through 2(2)(h):
The quantum strategy development activities identified within these subsections will be supported through existing
staffing in the Office of Economic Development and Competitiveness’ (OEDC) Industry Sector Development Team.
The Knowledge Economy Lead is a strategic role within the Industry Sector Development Program focused on advancing
Washington State’s leadership in global health, life sciences, and information and communication technology (ICT). The
primary purpose of this position is to develop, coordinate, and implement initiatives that strengthen key knowledge-based
industry sectors and ensure Washington’s global competitiveness in health innovation, biotech, digital health, software,
and advanced computing.
Quantum technology industry 103-Department of Commerce
Form FN (Rev 1/00) 208,228.00 Request # 31-700-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2446 HB
Consulting Assumption:
Section 2(3)
The department assumes $750,000 of service contracts in FY 26, which recognizes a $250,000 base cost and 500,000 of
costs associated with the compressed timeline. These contracts will be with a Washington State based quantum computing
manufacturing entity and/or regional organization of companies, universities, national labs, and business organization to
assist with the development of the industry strategy.
Office of Economic Development and Competitiveness (OEDC) Staffing Assumptions:
0.2 FTE from April to June, or 0.05 annual FTE, of the Knowledge Economy Lead, EMS 3, will be managed within
existing resources.
Total Cost managed within existing resources, including Salaries, Wages and Indirect: $14,305
0.75 FTE April-June, or 0.18 annual FTE, of a Commerce Specialist 3, to manage service procurement and contract
management duties related to the development of the quantum industry strategy. This includes managing post-award
contract specifics as it relates to disbursement of state funds.
1 FTE April-June, or 0.25 annual FTE, of a Commerce Specialist 4, to assist in the discovery and development activities
related to the quantum industry strategy, including conducting primary and secondary research, facilitating industry
outreach, and contributing to drafting the strategy. (This temporary role is a direct impact from the compressed timeline)
OEDC Translation Services:
The Department assumes $40,000 in FY 26 to translate outreach materials into 20 languages and verified by first language
speakers ahead of program launch.
Cost Summary
Salaries and Benefits
FY26: $57,030
Professional Services
FY26: $750,000
Goods and Services
FY26: $42,150
Includes 40,000 of translation services.
Capital Outlays
FY27: $5,000
Intra-agency Reimbursement
FY26: $18,259
Total Costs
FY26: $872,259
Quantum technology industry 103-Department of Commerce
Form FN (Rev 1/00) 208,228.00 Request # 31-700-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2446 HB
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 872,259 0 872,259 0 0
Total $ 872,259 0 872,259 0 0
III. B - Expenditures by Object Or Purpose
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 0.4 0.2
A-Salaries and Wages 38,534 38,534
B-Employee Benefits 18,496 18,496
C-Professional Service Contracts 750,000 750,000
E-Goods and Other Services 42,150 42,150
G-Travel
J-Capital Outlays 5,000 5,000
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements 18,079 18,079
9-
Total $ 872,259 0 872,259 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
Commerce Specialist 3 87,054 0.2 0.1
Commerce Specialist 4 91,458 0.3 0.1
Total FTEs 0.4 0.2 0.0
III. D - Expenditures By Program (optional)
Program FY 2026 FY 2027 2025-27 2027-29 2029-31
Office of Economic Development and 872,259 872,259
Competitiveness (700)
Total $ 872,259 872,259
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
Quantum technology industry 103-Department of Commerce
Form FN (Rev 1/00) 208,228.00 Request # 31-700-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 2446 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.
Quantum technology industry 103-Department of Commerce
Form FN (Rev 1/00) 208,228.00 Request # 31-700-1
FNS063 Individual State Agency Fiscal Note 5 Bill # 2446 HB
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