10 Year Analysis Complete for House Bill 1497

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UPDATE: The 10 year analysis for HB 1497, titled AN ACT Relating to improving outcomes associated with waste material management systems, including organic materials management systems, has been completed. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Department of Agriculture:

Section 9 would create a new account to which voluntary contributions may be deposited.  Section 15 would incorporate section 9 into Title 15 RCW.

Because section 9 would be included in Title 15, WSDA would collect the revenue from the program once established.  WSDA would not be able to collect revenue until infrastructure has been developed to collect donations electronically, which would require one year of Information Technology development.  If a public or private entity were to start a program in FY 2026, revenue collections to the new account would begin in FY 2027.

This fiscal note assumes the intent of this revenue source would be to replicate non-profit programs in California and Colorado.  From a review of earnings data for California’s program (https://projects.propublica.org/nonprofits/organizations/473642630), calendar year 2023 revenue was $1.87 million.  

From a review of readily available data on restaurants in Washington State and California, this fiscal note assumes California has seven times more restaurants than Washington State.  Assuming a similar program and participation in Washington, this fiscal note assumes annual revenue of $1,870,000 would represent an upper threshold for potential revenue, with a lower threshold of $260,000.  The average of these values ($1,065,000) is used as a basis for the cost estimates in the expenditures section.

Revenue collections could vary based on the following factors:

The program in section 9 would not be mandatory and could be started by any public or private entity.  The program(s) created under the authority of this section may or may not be like the example chosen for purposes of creating an estimated range for revenue.  Collection of revenue would depend on the creation of a program which is not required.

The revenue estimates above are based on restaurant participation in an existing non-profit model applied in other states.

While food services are referenced as an example of the venue for generating revenue, section 9 does not restrict the scope to a single type of business.  

Based on the factors described above, cash receipts and number of impacted payers starting in FY 2027 are indeterminate.

Ten-year projection prepared in consultation with the following agencies:

Department of Agriculture
Department of Commerce


Bill sponsors and contact information:

Representative Beth Doglio, Prime Sponsor
Democrat
(360) 786-7940
beth.doglio@leg.wa.gov

Representative Kristine Reeves
Democrat
(360) 786-7830
kristine.reeves@leg.wa.gov

Representative Liz Berry
Democrat
(360) 786-7860
Liz.Berry@leg.wa.gov

Representative Julia Reed
Democrat
(360) 786-7814
Julia.Reed@leg.wa.gov

Representative Lisa Parshley
Democrat
(360) 786-7992
Lisa.Parshley@leg.wa.gov

Representative Alex Ramel
Democrat
(360) 786-7970
alex.ramel@leg.wa.gov

Representative Gerry Pollet
Democrat
(360) 786-7886
gerry.pollet@leg.wa.gov

Representative Natasha Hill
Democrat
(360) 786-7888
Natasha.Hill@leg.wa.gov

Representative Shaun Scott
Democrat
(360) 786-7920
Shaun.Scott@leg.wa.gov




Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp