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Senate Bill Report — SHB 1717 on Innovation at Associate Development Organizations (as of March 14, 2023)

Summary

Senate Bill Report on SHB 1717, as of March 14, 2023, for the Senate Committee on Business, Financial Services, Gaming & Trade, on an act relating to supporting innovation at associate development organizations. The bill requires the Department of Commerce to establish an annual competitive grant program to support and catalyze initiatives to foster innovation, sustainability, partnerships, and equity at associate development organizations. Money in the Associate Development Organization Innovation, Sustainability, Partnerships, and Equity Grant Account, created in the custody of the state treasurer, may be spent only after an appropriation. The report summarizes testimony in support from Suzanne Dale Estey and Michael Cade.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2023-03-21
Case
2023 03 21 A31087 D258535 Bill Report 1717 S Sbr Bfgt Ta 23

Cite this document

“Senate Bill Report — SHB 1717 on Innovation at Associate Development Organizations (as of March 14, 2023).” Original at app.leg.wa.gov, dated 2023-03-21. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-03-21-2023-03-21-a31087-d258535-bill-report-1717-s-sbr-bfgt-ta-23/, SHA-256 553f4171185b4bb79f0ec85874f2ce0aa855e616830ba9714c301f2aa52dc753.

Full text

                            SENATE BILL REPORT
                                 SHB 1717

                                      As of March 14, 2023

Title: An act relating to supporting innovation at associate development organizations.

Brief Description: Supporting innovation at associate development organizations.

Sponsors: House Committee on Appropriations (originally sponsored by Representatives Rule,
    Corry, Paul, Stonier, Chapman, Duerr and Timmons).

Brief History: Passed House: 3/4/23, 90-6.
     Committee Activity: Business, Financial Services, Gaming & Trade: 3/14/23.


                                     Brief Summary of Bill
           • Requires the Department of Commerce to establish an annual
             competitive grant program to support and catalyze initiatives to foster
             innovation, sustainability, partnerships, and equity at associate
             development organizations.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE

     Staff: Kellee Gunn (786-7429)

     Background:      Associate Development Organizations.          Associate Development
     Organizations (ADOs) are under contract with the state to provide economic development
     services in the communities that they represent. As part of their contracts, ADOs are
     required to submit annual performance reports to the Department of Commerce
     (Commerce), which Commerce compiles as a report and submits to the Legislature
     biennially.

     The annual base funding an ADO receives from the state is dependent on local matching
     funds as well as whether the county served is a rural county. Funding is provided on a per
     capita basis. Commerce may consider an ADO's total resources when making contracting



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                        SHB 1717
     and fund allocation decisions.

     Summary of Bill: Commerce must establish an annual competitive grant program to
     support and catalyze initiatives to foster innovation, sustainability, partnerships, and equity
     at ADOs. Commerce shall develop grant criteria with relevant stakeholders and award
     funding based on initiatives aligned with its work and priorities. Awards must be given
     equitably across the state.

     Grant recipients must provide information on the use of their award funding to Commerce,
     and Commerce must provide that information in its report to the Legislature beginning with
     its December 31, 2026, report.

     The Associate Development Organization Innovation, Sustainability, Partnerships, and
     Equity Grant Account is created in the custody of the state treasurer. Moneys in the account
     may be spent only after an appropriation. The account may consist of state appropriations,
     private contributions, and other sources, to fund the grant program. Expenditures may only
     be used for the grant program.

     Appropriation: None.

     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: I've been in my role at Thurston County's
     ADO since 2004. The 34 ADOs have worked together, in coordination, to recover and
     reengage the economy. This bill is about growing the number of jobs, reinvesting money to
     bring in more revenue, and increasing economic activity. ADOs have a strong ROI for the
     communities they serve. For every dollar that goes into our ADO, we bring back $16 to the
     local community. Our ADO serves just under 10,000 businesses and we would use this as a
     tool to launch new businesses and entrepreneurs. Our center for business innovation, and
     our women's business center could serve more people as a result of this legislation. The last
     few years have not been easy for economic development. ADO funding models have
     remained stagnant. ADOs do not receive COLAs, or other adjustments.

     As Washington's only trade organization focused on economic development, we think this
     is just the right investment to support economic development and foster innovation. Passage
     of this bill is a critical step to support an intergovernmental network that will be a resource
     to catalyze innovative initiatives. This will build facilities and create and retain jobs. Please
     consider making the strong ADO partnership with the state even more impactful.

     Persons Testifying: PRO: Suzanne Dale Estey, Washington Economic Development


Senate Bill Report                              -2-                                         SHB 1717
     Association; Michael Cade, Thurston Economic Development Council.

     Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                         -3-                           SHB 1717

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app.leg.wa.gov
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