House Bill 1406, Associate Development Organizations (Washington, 2025)

Summary

House Bill 1406, State of Washington, 2025 Regular Session, by Representatives Barnard, Ryu, Leavitt, Waters, Rule, Ybarra, Schmidt, Ramel, Paul, Reeves, and Springer, read first time 01/20/25 and referred to Committee on Technology, Economic Development, & Veterans. The act relates to associate development organizations and amends RCW 43.330.082 and 43.330.086. Contracting associate development organizations must provide the department with measures of their performance, and annual reports must include current employment and economic information for the community or regional area and the amount of funds received through the contract with the department. The text also covers a per county allocation and a matched allocation, which may be provided through cash, in-kind, or a combination.

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Full text

     H-0586.1

                                HOUSE BILL 1406


     State of Washington        69th Legislature         2025 Regular Session

     By Representatives Barnard, Ryu, Leavitt,        Waters,   Rule,   Ybarra,
     Schmidt, Ramel, Paul, Reeves, and Springer

     Read first time 01/20/25.      Referred   to   Committee   on   Technology,
     Economic Development, & Veterans.




 1       AN ACT Relating to associate development         organizations;    and
 2   amending RCW 43.330.082 and 43.330.086.


 3   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 4       Sec. 1. RCW 43.330.082 and 2014 c 112 s 112 are each amended to
 5   read as follows:
 6       (1)(((a))) Contracting associate development organizations must
 7   provide the department with measures of their performance and a
 8   summary of best practices shared and implemented by the contracting
 9   organizations. Annual reports must include the following information
10   to show the contracting organization's impact on employment and
11   overall changes in employment: Current employment and economic
12   information for the community or regional area produced by the
13   employment security department; the net change from the previous
14   year's employment and economic information using data produced by the
15   employment security department; other relevant information on the
16   community or regional area; the amount of funds received by the
17   contracting organization through its contract with the department;
18   the amount of funds received by the contracting organization through
19   all sources; and the contracting organization's impact on employment
20   through all funding sources. Annual reports may include the impact of
21   the contracting organization on wages, exports, tax revenue, small
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 1   business creation, foreign direct investment, business relocations,
 2   expansions, terminations, and capital investment. Data must be input
 3   into a common web-based business information system managed by the
 4   department. Specific measures, data standards, and data definitions
 5   must be developed in the contracting process between the department
 6   and the contracting organization every two years. ((Except as
 7   provided in (b) of this subsection, performance)) Performance
 8   measures should be consistent across regions to allow for statewide
 9   evaluation.
10       (((b) In addition to the measures required in (a) of this
11   subsection,   contracting  associate  development  organizations  in
12   counties with a population greater than one million five hundred
13   thousand persons must include the following measures in reports to
14   the department:
15       (i) The number of small businesses that received retention and
16   expansion services, and the outcome of those services;
17       (ii) The number of businesses located outside of the boundaries
18   of the largest city within the contracting associate development
19   organization's region that received recruitment, retention, and
20   expansion services, and the outcome of those services.))
21       (2)(a) The department and contracting associate development
22   organizations must agree upon specific target levels for the
23   performance measures in subsection (1) of this section. Comparison of
24   agreed thresholds and actual performance must occur annually.
25       (b) Contracting organizations that fail to achieve the agreed
26   performance targets in more than one-half of the agreed measures must
27   develop   remediation  plans   to   address   performance  gaps.   The
28   remediation plans must include revised performance thresholds
29   specifically chosen to provide evidence of progress in making the
30   identified service changes.
31       (c) Contracts and state funding must be terminated for one year
32   for organizations that fail to achieve the agreed upon progress
33   toward improved performance defined under (b) of this subsection.
34   During the year in which termination for nonperformance is in effect,
35   organizations must review alternative delivery strategies to include
36   reorganization of the contracting organization, merging of previous
37   efforts with existing regional partners, and other specific steps
38   toward improved performance. At the end of the period of termination,
39   the   department   may  contract   with   the   associate  development
40   organization or its successor as it deems appropriate.
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 1       (3) The department must submit a final report to the legislature
 2   by December 31st of each even-numbered year on the performance
 3   results of the contracts with associate development organizations.


 4       Sec. 2.   RCW 43.330.086 and 2008 c 131 s 3 are each amended to
 5   read as follows:
 6       (1) To the extent that funds are specifically appropriated
 7   therefor, contracts with associate development organizations for the
 8   provision of services under RCW 43.330.080(1)(b)(i) shall be awarded
 9   according to the following annual schedule:
10       (((1))) (a) For associate development associations serving urban
11   counties, which are counties other than rural counties as defined in
12   RCW 82.14.370, a ((locally matched allocation of up to ninety cents
13   per capita,)) per county allocation totaling no more than ((three
14   hundred thousand dollars)) $500,000 per organization and a matched
15   allocation; and
16       (((2))) (b) For associate development associations in rural
17   counties, as defined in RCW 82.14.370, a per county base allocation
18   of ((up to forty thousand dollars)) at least $85,000 and up to
19   $150,000 and a ((locally)) matched allocation ((of up to ninety cents
20   per capita)).
21       (2) The matched allocation may be provided through cash, in-kind,
22   or a combination, with the in-kind match limited to 25 percent of the
23   local match.

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