ESSB 5677 — H COMM AMD by Committee on Technology, Economic Development, & Veterans

Summary

A committee amendment, H-1956.1, to ESSB 5677 by the Committee on Technology, Economic Development, & Veterans, which strikes everything after the enacting clause and inserts new text amending RCW 43.330.082 and 43.330.086. Its stated effect removes the requirement that associate development organizations include demographic information in annual reports to the Department of Commerce. It requires the Department of Commerce to allocate a minimum of $300,000 per organization to urban counties and a minimum of $40,000 per county to rural counties, and removes the maximum amount of $150,000. Section 4 makes section 3 null and void if specific funding is not provided by June 30, 2025, in the omnibus appropriations act.

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     5677-S.E AMH TEDV H1956.1


     ESSB 5677 - H COMM AMD
         By Committee on Technology, Economic Development, & Veterans




1        Strike   everything   after   the       enacting   clause   and   insert   the
2    following:


 3       "Sec. 1. RCW 43.330.082 and 2014 c 112 s 112 are each amended to
 4   read as follows:
 5       (1)(((a))) Contracting associate development organizations must
 6   provide the department with measures of their performance and a
 7   summary of best practices shared and implemented by the contracting
 8   organizations. Annual reports must include the following information
 9   to show the contracting organization's impact on employment and
10   overall changes in employment: Current employment and economic
11   information for the community or regional area produced by the
12   employment security department; the net change from the previous
13   year's employment and economic information using data produced by the
14   employment security department; other relevant information on the
15   community or regional area; the amount of funds received by the
16   contracting organization through its contract with the department;
17   the amount of funds received by the contracting organization through
18   all sources; and the contracting organization's impact on employment
19   through all funding sources. Annual reports may include the impact of
20   the contracting organization on wages, exports, tax revenue, small
21   business creation, foreign direct investment, business relocations,
22   expansions, terminations, and capital investment. Data must be input
23   into a common web-based business information system managed by the
24   department. Specific measures, data standards, and data definitions
25   must be developed in the contracting process between the department
26   and the contracting organization every two years. ((Except as
27   provided in (b) of this subsection, performance)) Performance
28   measures should be consistent across regions to allow for statewide
29   evaluation.
30       (((b) In addition to the measures required in (a) of this
31   subsection,   contracting  associate  development   organizations  in
32   counties with a population greater than one million five hundred

     Code Rev/KS:jlb                         1                             H-1956.1/25
 1   thousand persons must include the following measures in reports to
 2   the department:
 3       (i) The number of small businesses that received retention and
 4   expansion services, and the outcome of those services;
 5       (ii) The number of businesses located outside of the boundaries
 6   of the largest city within the contracting associate development
 7   organization's region that received recruitment, retention, and
 8   expansion services, and the outcome of those services.))
 9       (2)(a) The department and contracting associate development
10   organizations must agree upon specific target levels for the
11   performance measures in subsection (1) of this section. Comparison of
12   agreed thresholds and actual performance must occur annually.
13       (b) Contracting organizations that fail to achieve the agreed
14   performance targets in more than one-half of the agreed measures must
15   develop   remediation  plans   to   address  performance   gaps.  The
16   remediation plans must include revised performance thresholds
17   specifically chosen to provide evidence of progress in making the
18   identified service changes.
19       (c) Contracts and state funding must be terminated for one year
20   for organizations that fail to achieve the agreed upon progress
21   toward improved performance defined under (b) of this subsection.
22   During the year in which termination for nonperformance is in effect,
23   organizations must review alternative delivery strategies to include
24   reorganization of the contracting organization, merging of previous
25   efforts with existing regional partners, and other specific steps
26   toward improved performance. At the end of the period of termination,
27   the   department  may   contract   with  the   associate  development
28   organization or its successor as it deems appropriate.
29       (3) The department must submit a final report to the appropriate
30   committees of the legislature by December 31st of each even-numbered
31   year on the performance results of the contracts with associate
32   development organizations.


33       Sec. 2.   RCW 43.330.086 and 2008 c 131 s 3 are each amended to
34   read as follows:
35       (1) To the extent that funds are specifically appropriated
36   therefor, contracts with associate development organizations for the
37   provision of services under RCW 43.330.080(1)(b)(i) shall be awarded
38   according to the following annual schedule:


     Code Rev/KS:jlb                   2                       H-1956.1/25
 1       (((1))) (a) For associate development associations serving urban
 2   counties, which are counties other than rural counties as defined in
 3   RCW 82.14.370, a locally matched allocation of up to ninety cents per
 4   capita, totaling no more than three hundred thousand dollars per
 5   organization; and
 6       (((2))) (b) For associate development associations in rural
 7   counties, as defined in RCW 82.14.370, a per county base allocation
 8   of up to forty thousand dollars and a locally matched allocation of
 9   up to ninety cents per capita.
10       (2) The matched allocation may be provided through cash, in-kind,
11   or a combination, with the in-kind match limited to 25 percent of the
12   local match.

13       Sec. 3. RCW 43.330.086 and 2025 c . . . s 2 (section 2 of this
14   act) are each amended to read as follows:
15       (1) To the extent that funds are specifically appropriated
16   therefor, contracts with associate development organizations for the
17   provision of services under RCW 43.330.080(1)(b)(i) shall be awarded
18   according to the following annual schedule:
19       (a)   For  associate   development   associations  serving  urban
20   counties, which are counties other than rural counties as defined in
21   RCW 82.14.370, a ((locally matched allocation of up to ninety cents
22   per capita,)) per county allocation totaling ((no more than three
23   hundred thousand dollars)) at least $300,000 per organization and a
24   matched allocation; and
25       (b) For associate development associations in rural counties, as
26   defined in RCW 82.14.370, a per county base allocation of ((up to
27   forty thousand dollars)) at least $40,000 and a ((locally)) matched
28   allocation ((of up to ninety cents per capita)).
29       (2) The matched allocation may be provided through cash, in-kind,
30   or a combination, with the in-kind match limited to 25 percent of the
31   local match.


32       NEW SECTION.   Sec. 4.  If specific funding for the purposes of
33   section 3 of this act, referencing section 3 of this act by bill or
34   chapter number and section number, is not provided by June 30, 2025,
35   in the omnibus appropriations act, section 3 of this act is null and
36   void."

37       Correct the title.

     Code Rev/KS:jlb                   3                       H-1956.1/25
    EFFECT:   •  Removes   requirement   that  associate development
organizations include demographic information in annual reports to
the Department of Commerce.
    • Requires the Department of Commerce to allocate a minimum
amount of $300,000 per organization to urban counties.
    • Requires the Department of Commerce to allocate a minimum
amount of $40,000 per county to rural counties, and removes maximum
amount of $150,000.



                            --- END ---




Code Rev/KS:jlb                  4                       H-1956.1/25


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