House Bill Analysis — HB 1870, Innovation, Community & Economic Development, & Veterans Committee
Summary
House Bill Analysis of HB 1870 from the Washington State House of Representatives Office of Program Research for the Innovation, Community & Economic Development, & Veterans Committee, with a hearing date of 1/9/24. The brief description is promoting economic development by increasing opportunities for local communities to secure federal funding. The brief summary says the bill creates a program providing a state pool of matching funds for communities submitting federal grant applications. It also requires the Department of Commerce (Commerce) to give technical assistance with applications, create a resource guide for applicants, and report on program effectiveness. The analysis lists a fiscal note requested on January 2, 2024.
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“House Bill Analysis — HB 1870, Innovation, Community & Economic Development, & Veterans Committee.”
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Washington State BILL
House of Representatives
Office of Program Research ANALYSIS
Innovation, Community & Economic
Development, & Veterans Committee
HB 1870
Brief Description: Promoting economic development by increasing opportunities for local
communities to secure federal funding.
Sponsors: Representatives Barnard, Ryu, Leavitt, Connors, Couture, Schmidt, Duerr and
Slatter.
Brief Summary of Bill
• Creates a program providing a state pool of matching funds for use by
local communities submitting applications for federal grants.
• Requires the Department of Commerce (Commerce) to assist local
communities by providing technical assistance with federal grant
applications, prioritizing applications for federal funds in an existing
grant program, and creating a resource guide for federal grant applicants.
• Requires Commerce to report on program effectiveness based on
performance measurements, including the amount of federal dollars
obtained relative to the state dollars expended.
Hearing Date: 1/9/24
Staff: Martha Wehling (786-7067).
Background:
The Department of Commerce (Commerce) is responsible for promoting community and
economic development within the state by assisting Washington's communities to increase the
quality of life of their citizens and their economic vitality and by assisting Washington's
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.
House Bill Analysis -1- HB 1870
businesses to maintain and increase their economic competitiveness. Commerce's
responsibilities include soliciting private and federal grants for economic and community
development programs and maximizing the impact of federal funding for economic development
through coordination with research facilities to leverage federal funding for research,
development, innovation of new technologies, and transfer of technology to the private sector to
promote business development and jobs in Washington.
Federal grant opportunities address multiple aspects of economic development, including
broadband, clean and efficient energy, climate change resiliency, disaster mitigation and
recovery, housing and homelessness, public infrastructure, semiconductor technology,
transportation, and water and waste management. The majority of the federal grant opportunities
require the applicant to provide a percentage of matching funds, also referred to as cost sharing.
State funds may be used to meet federal match requirements in limited circumstances, including
the Public Works Assistance Account and the Statewide Broadband Account.
Training and Technical Assistance to Local Communities.
Commerce provides training and technical assistance to local communities to promote local
development and encourage economic growth and opportunity, including developing and
implementing strategic development plans, assisting businesses, encouraging investment in
public infrastructure, and expanding employment opportunities. Commerce makes training and
technical assistance available through centralized and user-friendly information and referral, and
coordinated community and economic development efforts. Local communities most in need of
assistance are prioritized for training.
Associate Development Organization Grant Program.
By July 1, 2024, Commerce is required to establish a grant program to recruit, hire, and retain
grant writers for associate development organizations. An "associate development organization"
is a local economic development nonprofit corporation that is broadly representative of
community interests. After the grant program is established, Commerce is required to award
grants annually, and to prioritize grants for distressed areas.
Inventory of Grant Opportunities for Entities Engaged in Economic Development Activities.
Commerce inventories grant opportunities that are available for entities engaged in economic
development activities. The inventory includes grant and project opportunities in the federal
register. Commerce may consult with federal agencies on prospects for federal funds for
Washington's economic development purposes, including the Small Business Administration, the
Department of Labor, the Department of Commerce, the Department of Agriculture, and the
Department of Ecology. Commerce facilitates joint efforts that will increase the likelihood of
success in applicants seeking grants.
Reporting.
House Bill Analysis -2- HB 1870
Commerce tracks the amount of federal economic development funding received and disbursed,
along with any matching requirements, and provides the information annually to the economic
development committees of the House of Representatives and the Senate. Commerce's April
2022 report identifies four completed grants, two ongoing grants, and one partial grant providing
federal grants totaling $19,087,000 with a state match of $1,657,000. The grants provided
funding for small business expansion into international markets, advancement of manufacturing
in economically distressed areas, acceleration of innovation and modernization of the maritime
industry, creation of nine innovation clusters, adaption to changes in defense manufacturing, and
expansion of a training program from 75 to 292 businesses in rural counties.
Associate development organizations that receive grants provide annual reports to Commerce on
the use of the grant funds and the number and type of grants applied for, and Commerce must
include information on grant award funding and use in its reports on associate development
organization contracts.
Summary of Bill:
Moving Assets Towards Community Health Program.
The Department of Commerce (Commerce) is required to establish and administer the "Moving
Assets Towards Community Health" (MATCH) program. The program will provide a state pool
of matching funds to increase opportunities for local communities to compete for federal grants.
Commerce may adopt rules to implement the MATCH program.
Technical Assistance for Federal Grant Applications.
Commerce must provide technical assistance to local communities developing applications for
federal funding in Commerce's training and technical assistance that it provides to local
communities, community-based nonprofit organizations, regional areas, and businesses. To the
extent funding is made available, Commerce may provide the technical assistance through
contracts with external parties.
Prioritized Grants for Federal Funds in Associate Development Organization Grant Program.
Commerce's grant program supporting associate development organizations must prioritize
grants for applications for federal funds, in addition to grants for distressed areas.
Federal Resource Guide Included in Inventory of Grant Opportunities.
Commerce may include a resource guide for applicants for federal grants in its existing inventory
of grant opportunities. The resource guide should include links to federal applications and
relevant resources, as well as contact information for Commerce staff for grant applicants in
need of assistance.
House Bill Analysis -3- HB 1870
Reporting on Moving Assets Towards Community Health Program Effectiveness.
Beginning December 31, 2027, Commerce must provide a report on the MATCH program that
identifies the federal funds awarded to entities, efforts made to assist local communities with
obtaining federal funds, all applicants and projects receiving federal awards in the prior two
years, and program effectiveness based on performance measurement requirements, including
the amount of federal dollars obtained relative to the state dollars expended. The report must be
updated every two years, posted on Commerce's website, and provided to the Governor and
Legislature.
Appropriation: None.
Fiscal Note: Requested on January 2, 2024.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.
House Bill Analysis -4- HB 1870
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