Multiple Agency Fiscal Note Summary — 5677 SB, Associate development orgs (Final 3/17/2025)
Summary
A Multiple Agency Fiscal Note Summary for Bill Number 5677 SB, titled Associate development orgs, final March 17, 2025, followed by a revised individual fiscal note from the Department of Commerce and a local government fiscal note. The summary lists Department of Commerce operating expenditures of $604,820 for 2025-27 and 1.8 FTE staff years. The Department of Commerce note describes Section 2 as increasing the urban county maximum allocation to $500,000 from $300,000 and the minimum base allocation of rural counties to $85,000 from $40,000, with a maximum allocation of $150,000. The local government fiscal note marks no fiscal impacts.
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“Multiple Agency Fiscal Note Summary — 5677 SB, Associate development orgs (Final 3/17/2025).”
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Multiple Agency Fiscal Note Summary
Bill Number: 5677 SB Title: Associate development orgs
Estimated Cash Receipts
NONE
Agency Name 2025-27 2027-29 2029-31
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other No fiscal impact
Local Gov. Total
Estimated Operating Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Department of 1.8 604,820 604,820 604,820 1.8 604,820 604,820 604,820 1.8 600,820 600,820 600,820
Commerce
Department of In addition to the estimate above,there are additional indeterminate costs and/or savings. Please see individual fiscal note.
Commerce
Total $ 1.8 604,820 604,820 604,820 1.8 604,820 604,820 604,820 1.8 600,820 600,820 600,820
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other No fiscal impact
Local Gov. Total
Estimated Capital Budget Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Department of Commerce .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other No fiscal impact
Local Gov. Total
Estimated Capital Budget Breakout
NONE
FNPID 74344
:
FNS029 Multi Agency rollup
Prepared by: Marie Davis, OFM Phone: Date Published:
(360) 890-1163 Final 3/17/2025
FNPID 74344
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note Revised
Bill Number: 5677 SB Title: Associate development orgs Agency: 103-Department of Commerce
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 1.8 1.8 1.8 1.8 1.8
Account
General Fund-State 001-1 304,410 300,410 604,820 604,820 600,820
Total $ 304,410 300,410 604,820 604,820 600,820
In addition to the estimates above, there are additional indeterminate costs and/or savings. Please see discussion.
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Clinton McCarthy Phone: 360-786-7319 Date: 02/07/2025
Agency Preparation: Lucas Rubstello Phone: (206) 613-7565 Date: 03/17/2025
Agency Approval: Justin Rogers Phone: 360-810-1148 Date: 03/17/2025
OFM Review: Marie Davis Phone: (360) 890-1163 Date: 03/17/2025
Form FN (Rev 1/00) 205,422.00 Request # 187-700-3
FNS063 Individual State Agency Fiscal Note 1 Bill # 5677 SB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.
Section 1 (1) updates funding and performance requirements for Associate Development Organizations (ADOs) in
Washington State. ADOs must provide the Department of Commerce (Department) with a report of specific performance
measures and a summary of best practices shared and implemented by the contracting organizations, annually. Data from
this report must be inputted into a common web-based business information system managed by the Department. Specific
measures, data standards, and data definitions must be developed in the contracting process between the Department and
the contracting organization every two years.
Section 1 (2)(a) states that the Department and contracting ADOs must agree upon specific target levels for the
performance measures in subsection (1) of this section on an annual basis.
Section 1 (3) states that the Department must submit a final report to the legislature by December 31st of each
even-numbered year on the performance results of the contracts with ADOs.
Section 2 (1)(a) states an increase in annual funding allocations for ADOs serving urban counties, raising the urban
per-county maximum to $500,000 per organization and a matched allocation.
Section 2 (1)(b) states an increase in annual funding allocations for ADOs serving rural counties, raising the urban per
county base allocation to $85,000 and up to $150,000, and a matched allocation.
Section 2 (2) states that the matched allocation may be provided through cash, in-kind, or a combination, with the in-kind
match limited to 25 percent of the local match.
The Department's Office of Economic Development and Competitiveness (OEDC) manages the contracting process and
funding allocations for ADOs. This bill requires updates to an existing program, specifically funding amounts and
adjustments to contracting and reporting requirements.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate, the
detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived. Explanation
of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.
SB 5677 affects two allocation requirements in the following way:
Section 2 (a) – Increases the urban county maximum allocation to $500,000 from $300,000.
Urban counties are defined as counties other than those defined as rural in RCW 82.14.370 (7).
Section 2 (b) - Increases the minimum base allocation of rural counties to $85,000 from $40,000 and introduces a maximum
allocation of $150,000.
Rural counties are defined under RCW 82.14.370 (7) as follows: "Rural County" means a county with a population density
of less than 100 persons per square mile or a county smaller than 225 square miles as determined by the Office of Financial
Management pursuant to RCW 43.62.035.
Associate development orgs 103-Department of Commerce
Form FN (Rev 1/00) 205,422.00 Request # 187-700-3
FNS063 Individual State Agency Fiscal Note 2 Bill # 5677 SB
Under the Current program funding level for FY25 ($4,853,645), the rural and urban breakdown is as follows:
31 Rural ADOs funded between $85,360-$292,429
4 Urban ADOs reaching their $300K max funding cap
SB 5677 creates annual funding requirements under current ADO populations as follows:
Minimum:
31 Rural x $85,000 = $2,635,000
4 Urban x $(0) = $0
Minimum Total = $2,635,000
*No minimum is defined for Urban ADO's within SB 5677 or current RCW.
Maximum:
31 Rural x $150,000 = $ 4,650,000
4 x Urban $500,000 = $2,000,000
Max Total = $6,500,000
The Department's OEDC manages the contracting process and funding allocations for ADOs. This bill requires updates to
an existing program, specifically funding amounts and adjustments to contracting and reporting requirements. Since OEDC
has already submitted a legislative report every two years, implementing this bill will have no additional administrative
impacts.
The Department's Office of Economic Development and Competitiveness (OEDC) division will continue to manage the
contracting process and funding allocations for associate development organizations. These updates will be implemented
within the framework of the existing program and handled by the current staff. The current 1.75 FTE will cover these
funding increases, and no additional staff is required as a result of this bill.
Staff Summary:
1.00 FTE Commerce Specialist 3 (2088 hours) – To manage the program, procurement and contract services to Associate
Development Organizations
0.50 FTE Commerce Specialist 5 (1044 hours) – Oversees staff, contracts, and program budget development
0.25 FTE WMS2 Managing Director (522 hours) – Provides program leadership and strategic oversight of program
outcomes
Fiscal impact is indeterminate as the funding levels for the program are to be determined.
Associate development orgs 103-Department of Commerce
Form FN (Rev 1/00) 205,422.00 Request # 187-700-3
FNS063 Individual State Agency Fiscal Note 3 Bill # 5677 SB
Total Fiscal Impact:
Salaries and Benefits:
FY 26-31: $218,897
Goods and Other Services:
FY 26-31: $7,750
Travel:
FY 26-31: $1,750
Capital Outlays:
FY 26: $4,000
FY 29: $4,000
Intra-agency Reimbursements:
FY 26-31: $72,016
Note: Standard goods and services costs include supplies and materials, employee development and training. Attorney
General costs, and agency administration. Intra-agency administration Reimbursement-Agency administrations costs (e.g.,
payroll, HR, IT are funded under a federally approved cost allocation plan.
====================
Summary of Total Costs:
FY 26: $304,410
FY 27-28: $300,410
FY 29: $304,410
FY 30-31: $300,410
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2026 FY 2027 2025-27 2027-29 2029-31
001-1 General Fund State 304,410 300,410 604,820 604,820 600,820
Total $ 304,410 300,410 604,820 604,820 600,820
In addition to the estimates above, there are additional indeterminate costs and/or savings. Please see discussion.
Associate development orgs 103-Department of Commerce
Form FN (Rev 1/00) 205,422.00 Request # 187-700-3
FNS063 Individual State Agency Fiscal Note 4 Bill # 5677 SB
III. B - Expenditures by Object Or Purpose
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 1.8 1.8 1.8 1.8 1.8
A-Salaries and Wages 165,170 165,170 330,340 330,340 330,340
B-Employee Benefits 53,724 53,724 107,448 107,448 107,448
C-Professional Service Contracts
E-Goods and Other Services 7,750 7,750 15,500 15,500 15,500
G-Travel 1,750 1,750 3,500 3,500 3,500
J-Capital Outlays 4,000 4,000 4,000
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements 72,016 72,016 144,032 144,032 144,032
9-720
Total $ 304,410 300,410 604,820 604,820 600,820
In addition to the estimates above, there are additional indeterminate costs and/or savings. Please see discussion.
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2026 FY 2027 2025-27 2027-29 2029-31
Commerce Specialist 3 84,518 1.0 1.0 1.0 1.0 1.0
Commerce Specialist 5 98,040 0.5 0.5 0.5 0.5 0.5
WMS Band 2 126,529 0.3 0.3 0.3 0.3 0.3
Total FTEs 1.8 1.8 1.8 1.8 1.8
III. D - Expenditures By Program (optional)
Program FY 2026 FY 2027 2025-27 2027-29 2029-31
Office of Economic Development and 304,410 300,410 604,820 604,820 600,820
Competativeness (700)
Total $ 304,410 300,410 604,820 604,820 600,820
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
Associate development orgs 103-Department of Commerce
Form FN (Rev 1/00) 205,422.00 Request # 187-700-3
FNS063 Individual State Agency Fiscal Note 5 Bill # 5677 SB
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce
Bill Number: 5677 SB Title: Associate development orgs
Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
Cities:
Counties:
Special Districts:
Specific jurisdictions only:
Variance occurs due to:
Part II: Estimates
X No fiscal impacts.
Expenditures represent one-time costs:
X Legislation provides local option: Local match limits have been adjusted, local governments could choose to provide more
matching funds.
Key variables cannot be estimated with certainty at this time:
Estimated revenue impacts to:
None
Estimated expenditure impacts to:
None
Part III: Preparation and Approval
Fiscal Note Analyst: Dalton Huey Phone: 360-725-5035 Date: 02/10/2025
Leg. Committee Contact: Clinton McCarthy Phone: 360-786-7319 Date: 02/07/2025
Agency Approval: Allan Johnson Phone: 360-725-5033 Date: 02/10/2025
OFM Review: Marie Davis Phone: (360) 890-1163 Date: 02/16/2025
Page 1 of 2 Bill Number: 5677 SB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
The amount of funds provided annually to an associate development organization (ADO) with a contract with the
Department of Commerce (Commerce) is adjusted:
ADOs serving urban counties receive a matched allocation, and a maximum of $500,000 per organization.
ADOs serving rural counties receive a matched allocation, and a minimum per county base allocation of $85,000 and a
maximum allocation of $150,000.
The matched allocation may be provided through cash, in-kind, or a combination. Any in-kind match is limited to 25
percent of the local match.
The bill takes effect 90 days after adjournment of the session in which the bill is passed.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.
This bill would not impact local government expenditures.
Local option - The legislation would remove the $.90 per capita limit and increase per organization maximum allocations.
Local governments could choose to increase matching funds to take advantage of these higher limits but are not required
to.
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when
appropriate, the detail of revenue sources. Delineated between city, county and special district impacts.
This bill would not impact local government revenues.
SOURCES:
House Bill Report, 1406 HB (2025)
Logal Government Division Fiscal Note, 1870 HB (2024)
Associate Development Organization Biennial Report (2020)
Page 2 of 2 Bill Number: 5677 SB
FNS060 Local Government Fiscal Note
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