Engrossed Substitute Senate Bill 5677 — Associate Development Organizations (Washington, 2025)

Summary

Engrossed Substitute Senate Bill 5677 of the State of Washington 69th Legislature, 2025 Regular Session, by Senate Business, Financial Services & Trade, read first time February 20, 2025. The bill is an act relating to associate development organizations that amends RCW 43.330.082 and 43.330.086. Section 1 covers the performance measures and annual reports that contracting associate development organizations provide to the department, and a final report to the legislature by December 31st of each even-numbered year. Section 2 sets contract allocations, including no more than $500,000 per organization for urban counties and at least $85,000 and up to $150,000 for a per county base allocation in rural counties.

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                     ENGROSSED SUBSTITUTE SENATE BILL 5677


     State of Washington         69th Legislature     2025 Regular Session

     By Senate Business, Financial Services & Trade (originally sponsored
     by Senators Cortes, Frame, Riccelli, and Schoesler)

     READ FIRST TIME 02/20/25.




 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; demographic information that meet the standards for
20   maintaining, collecting, and presenting federal data on race and
21   ethnicity as described by the office of management and budget,
                                       p. 1                         ESSB 5677
 1   statistical policy directive No. 15 as published on March 29, 2024,
 2   that provide common language for uniformity and comparability in the
 3   collection and use of race and ethnicity data; and the contracting
 4   organization's impact on employment through all funding sources.
 5   Annual reports may include the impact of the contracting organization
 6   on wages, exports, tax revenue, small business creation, foreign
 7   direct investment, business relocations, expansions, terminations,
 8   and capital investment. Data must be input into a common web-based
 9   business information system managed by the department. Specific
10   measures, data standards, and data definitions must be developed in
11   the contracting process between the department and the contracting
12   organization every two years. ((Except as provided in (b) of this
13   subsection, performance)) Performance measures should be consistent
14   across regions to allow for statewide evaluation.
15       (((b) In addition to the measures required in (a) of this
16   subsection,   contracting   associate   development   organizations  in
17   counties with a population greater than one million five hundred
18   thousand persons must include the following measures in reports to
19   the department:
20       (i) The number of small businesses that received retention and
21   expansion services, and the outcome of those services;
22       (ii) The number of businesses located outside of the boundaries
23   of the largest city within the contracting associate development
24   organization's region that received recruitment, retention, and
25   expansion services, and the outcome of those services.))
26       (2)(a) The department and contracting associate development
27   organizations must agree upon specific target levels for the
28   performance measures in subsection (1) of this section. Comparison of
29   agreed thresholds and actual performance must occur annually.
30       (b) Contracting organizations that fail to achieve the agreed
31   performance targets in more than one-half of the agreed measures must
32   develop   remediation   plans   to   address   performance   gaps.  The
33   remediation plans must include revised performance thresholds
34   specifically chosen to provide evidence of progress in making the
35   identified service changes.
36       (c) Contracts and state funding must be terminated for one year
37   for organizations that fail to achieve the agreed upon progress
38   toward improved performance defined under (b) of this subsection.
39   During the year in which termination for nonperformance is in effect,
40   organizations must review alternative delivery strategies to include
                                      p. 2                        ESSB 5677
 1   reorganization of the contracting organization, merging of previous
 2   efforts with existing regional partners, and other specific steps
 3   toward improved performance. At the end of the period of termination,
 4   the   department   may   contract  with   the  associate  development
 5   organization or its successor as it deems appropriate.
 6       (3) The department must submit a final report to the appropriate
 7   committees of the legislature by December 31st of each even-numbered
 8   year on the performance results of the contracts with associate
 9   development organizations.
10       (4)   The   department   and  contracting  associate  development
11   organizations may consult with state ethnic commissions as defined in
12   RCW 44.28.005 and the governor's office of Indian affairs for
13   technical assistance on complying with the standards for maintaining,
14   collecting, and presenting federal data on race and ethnicity as
15   described by the office of management and budget, statistical policy
16   directive No. 15 as published on March 29, 2024, that provide common
17   language for uniformity and comparability in the collection and use
18   of race and ethnicity data.


19       Sec. 2.   RCW 43.330.086 and 2008 c 131 s 3 are each amended to
20   read as follows:
21       (1) To the extent that funds are specifically appropriated
22   therefor, contracts with associate development organizations for the
23   provision of services under RCW 43.330.080(1)(b)(i) shall be awarded
24   according to the following annual schedule:
25       (((1))) (a) For associate development associations serving urban
26   counties, which are counties other than rural counties as defined in
27   RCW 82.14.370, a ((locally matched allocation of up to ninety cents
28   per capita,)) per county allocation totaling no more than ((three
29   hundred thousand dollars)) $500,000 per organization and a matched
30   allocation; and
31       (((2))) (b) For associate development associations in rural
32   counties, as defined in RCW 82.14.370, a per county base allocation
33   of ((up to forty thousand dollars)) at least $85,000 and up to
34   $150,000 and a ((locally)) matched allocation ((of up to ninety cents
35   per capita)).




                                     p. 3                        ESSB 5677
1       (2) The matched allocation may be provided through cash, in-kind,
2   or a combination, with the in-kind match limited to 25 percent of the
3   local match.

                                 --- END ---




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