House Bill Analysis, HB 1057, Technology, Economic Development, & Veterans Committee
Summary
House of Representatives Office of Program Research bill analysis of HB 1057, with the brief description Promoting economic development by increasing support for local communities to access federal funds, for the Technology, Economic Development, & Veterans Committee hearing date of 1/17/25. The brief summary says the bill requires the Department of Commerce to assist economic development organizations applying for federal funds by developing scoring criteria to prioritize awards of state matching funds. It expands eligibility for the grant writer program to economic development organizations and rural and frontier counties, and expands the state's website to include federal funding opportunities. The analysis lists the appropriation as none and a fiscal note requested on January 6, 2025.
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“House Bill Analysis, HB 1057, Technology, Economic Development, & Veterans Committee.”
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Washington State BILL
House of Representatives
Office of Program Research ANALYSIS
Technology, Economic Development, &
Veterans Committee
HB 1057
Brief Description: Promoting economic development by increasing support for local
communities to access federal funds.
Sponsors: Representatives Barnard, Ryu, Leavitt, Barkis, Taylor, Jacobsen, Reed, Callan,
Keaton, Timmons, Tharinger, Simmons, Duerr, Nance, Davis, Bernbaum and Donaghy.
Brief Summary of Bill
• Requires the Department of Commerce (Commerce) to assist economic
development organizations applying for federal funds by developing
scoring criteria to prioritize awards of state matching funds.
• Expands eligibility for Commerce's grant writer program to include
economic development organizations and rural and frontier counties.
• Expands the state's website to include federal funding opportunities for
economic development.
• Requires biannual reporting on applications for federal funds, state
matching funds awarded, federal funds received, and number of federal
funding opportunities.
Hearing Date: 1/17/25
Staff: Martha Wehling (786-7067).
Background:
The Department of Commerce's (Commerce) responsibilities include soliciting private and
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 1057
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.
Recent federal grants for economic development projects included 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. Most federal grants 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 through:
• developing competitive applications for federal funds;
• developing and implementing strategic development plans;
• assisting businesses;
• encouraging investment in public infrastructure; and
• expanding employment opportunities.
Commerce is required to make training and technical assistance available through centralized
and user-friendly information and referral, and coordinated community and economic
development efforts.
Associate Development Organization Grant Writer Program.
Commerce was required to establish a grant program to recruit, hire, and retain grant writers for
associate development organizations by July 1, 2024. An "associate development organization"
is a local economic development nonprofit corporation that is broadly representative of
community interests. Commerce is required to award grants annually and to prioritize grants for
distressed areas and applications for federal funds.
Inventory of Grant Opportunities for Entities Engaged in Economic Development Activities.
Commerce is required to inventory 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 federal fund prospects 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 is also required to facilitate joint efforts that will increase
the likelihood of success for applicants seeking grants.
Federal Funding Roadmap Project.
The Governor's Office initiated a Federal Funding Roadmap Project in 2023 to access federal
House Bill Analysis -2- HB 1057
funds available for climate, natural resource protection, workforce development, sustainable
economic development, and equity goals. Project recommendations that were implemented
included hiring a federal funding coordinator and creating a shared database and management
system for tracking funding opportunities, available at fundhub.wa.gov.
Reporting.
Commerce is required to track the amount of federal economic development funding received
and disbursed, along with any matching requirements, and provide the information to the
economic development committees of the House of Representatives and the Senate annually.
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. Commerce is required
to include information on grant award funding and use in its annual reports to the Legislature on
associate development organization contracts, beginning December 31, 2026.
Summary of Bill:
Expansion of Grant Program Eligibility.
The Department of Commerce's (Commerce) grant program to recruit, hire, and retain grant
writers is expanded to include economic development organizations, frontier counties, and rural
counties. Economic development organization means "an organization whose primary purpose
is to support the economic development of a community or region."
Inventory of Grant Opportunities for Entities Engaged in Economic Development Activities.
Commerce is required to develop an inventory of economic development grant opportunities,
including:
• regularly reviewing the federal register;
• maintaining an inventory of private grants;
• providing a resource guide for federal grant applicants; and
• consulting with federal agencies, private foundations, and businesses on fund prospects for
economic development.
Commerce is required to expand the fundhub.wa.gov website to include all federal funding
opportunities that are available for economic development by July 1, 2026.
Support for Federal Grant Applicants.
Commerce is required to create scoring criteria to prioritize applications for matching state
funds. The criteria must prioritize rural and frontier counties and include:
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• number of jobs created;
• number of households affected;
• number of businesses impacted; and
• amount of federal funding applied for.
To prioritize the federal funds that will have the most significant impact on economic
development, Commerce must solicit input on the scoring criteria from associate development
organizations, ports, chambers of commerce, workforce development boards, and the governor's
office.
Commerce is required to provide a letter for federal grant applicants that identifies the
availability of state matching funds. Successful applicants for state matching funds will receive
100 percent of the matching funds requested if the applicant is a political subdivision, federally-
recognized Indian tribe, institution of higher education, consumer-owned utility, small business,
regional planning organization, economic development organization, nonprofit, or if the grant
will increase the likelihood of receiving federal funds, increase the award of federal funds, or
will benefit a distressed area. Investor-owned utilities and other entities are eligible for 50
percent of the required match.
When no match is required for federal funds, the applicant may receive up to $100,000 if state
funds would increase the likelihood of receiving federal funds or increase the award of federal
funds. This amount may be increased to $500,000 if a project will benefit a distressed area.
Reporting.
Beginning in 2026, Commerce is required to include information on state matching dollars in its
annual reports to the Legislature on associate development organization contracts.
Beginning in 2027, Commerce is required to report biannually on the use of state matching
dollars to obtain federal funds. The report must identify the number of supporting letters
provided to applicants, awards made of state matching funds, amount of federal funds received,
and the number of funding opportunities listed on the fundhub.wa.gov website.
Moving Assets to Create Healthy Economic Development Account.
The Moving Assets to Create Healthy Economic Development (MATCHED) Account is created.
Expenditures are limited to provide matching state funds for applications for federal funds that
will promote economic development, including broadband, equity, housing, public infrastructure,
innovation, regional development, skills training, transportation, or workforce development.
When Commerce approves an application for matching funds, the state funds will be reserved for
the project until the applicant notifies Commerce the federal application was withdrawn or
denied.
Reserved funds will not be disbursed unless the federal application is approved, no other state
funding is provided, the project will produce long-term economic benefits, no ongoing state
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support is required, the project will provide new jobs or higher income, and the state funds will
not replace private investment.
Appropriation: None.
Fiscal Note: Requested on January 6, 2025.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.
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