Multiple Agency Fiscal Note Summary — 5677 E S SB: Associate development orgs
Summary
A Multiple Agency Fiscal Note Summary for Bill Number 5677 E S SB, titled Associate development orgs, with the rollup marked Final 3/20/2025. It lists estimated cash receipts as NONE and 600,820 in operating expenditures for the Department of Commerce in 2025-27. The attached Individual State Agency Fiscal Note from the 103-Department of Commerce lists 300,410 for FY 2026 and 300,410 for FY 2027, and describes Section 2 as increasing the urban county maximum allocation to $500,000 from $300,000 and the rural minimum base allocation to $85,000 from $40,000. A Local Government Fiscal Note states that the bill would not impact local government expenditures or revenues.
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“Multiple Agency Fiscal Note Summary — 5677 E S SB: Associate development orgs.”
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Multiple Agency Fiscal Note Summary
Bill Number: 5677 E S 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 1.8 600,820 600,820 600,820 1.8 600,820 600,820 600,820 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 $ 1.8 600,820 600,820 600,820 1.8 600,820 600,820 600,820 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 74468
:
FNS029 Multi Agency rollup
Prepared by: Marie Davis, OFM Phone: Date Published:
(360) 890-1163 Final 3/20/2025
FNPID 74468
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note Revised
Bill Number: 5677 E S 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 001-1 300,410 300,410 600,820 600,820 600,820
Total $ 300,410 300,410 600,820 600,820 600,820
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: Martha Wehling Phone: 360-786-7067 Date: 03/10/2025
Agency Preparation: Lucas Rubstello Phone: (206) 613-7565 Date: 03/19/2025
Agency Approval: Justin Rogers Phone: 360-810-1148 Date: 03/19/2025
OFM Review: Marie Davis Phone: (360) 890-1163 Date: 03/20/2025
Form FN (Rev 1/00) 205,593.00 Request # 304-700-2
FNS063 Individual State Agency Fiscal Note 1 Bill # 5677 E S 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.
Comparing ESSB 5677 to SB 5677:
Section 1 (1) maintains the 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 (1) is updated to add additional reporting requirements for demographic information on race and ethnicity,
following the Office of Management and Budgets statistical policy directive No. 15.
Section 1 (2)(a) maintains the requirement 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) is amended to require the final report described to be delivered to the appropriate legislative committees.
Section 1 (3) maintains the requirement that the Department submit a final report by December 31st of each
even-numbered year on the performance results of the contracts with ADOs. It is amended to require that the report is
delivered to the appropriate legislative committees.
Section 2 (1)(a) maintains 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) maintains an increase in annual funding allocations for ADOs serving rural counties, raising the rural
per county base allocation to $85,000 and up to $150,000, and a matched allocation.
Section 2 (2) maintains the requirement 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.
ESSB 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
Associate development orgs 103-Department of Commerce
Form FN (Rev 1/00) 205,593.00 Request # 304-700-2
FNS063 Individual State Agency Fiscal Note 2 Bill # 5677 E S SB
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.
Under the current program funding level for FY25 ($4,853,645), the funding breakdown is as follows:
31 ADOs funded between $85,360-$292,429
4 ADOs reaching their $300K max funding cap
The Rural and Urban ADO breakdown is as follows:
24 ADOs serving Rural counties.
10 ADOs serving Urban counties.
1 ADO serving two counties, one Urban, One Rural
ESSB 5677 creates annual funding requirements under current ADO populations as follows:
Minimum:
25 Rural x $85,000 = $2,125,000
10 Urban x $(0) = $0
Minimum Total = $2,125,000
*No minimum is defined for Urban ADOs within ESSB 5677 or current RCW.
**The ADO that serves both an Urban and Rural County is counted as Rural for the purpose of minimum funding
requirements.
Maximum:
24 Rural x $150,000 = $ 3,600,000
11 x Urban $500,000 = $5,500,000
Max Total = $9,100,000
**The ADO that serves both an Urban and Rural County is counted as Urban for the purpose of maximum funding
requirements.
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.
OEDC will continue to manage the contracting process and funding allocations for ADO’s. 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.
Associate development orgs 103-Department of Commerce
Form FN (Rev 1/00) 205,593.00 Request # 304-700-2
FNS063 Individual State Agency Fiscal Note 3 Bill # 5677 E S SB
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 subject to appropriation.
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
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 26-31: $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 300,410 300,410 600,820 600,820 600,820
Total $ 300,410 300,410 600,820 600,820 600,820
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) 205,593.00 Request # 304-700-2
FNS063 Individual State Agency Fiscal Note 4 Bill # 5677 E S 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
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-
Total $ 300,410 300,410 600,820 600,820 600,820
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 300,410 300,410 600,820 600,820 600,820
Competativeness (700)
Total $ 300,410 300,410 600,820 600,820 600,820
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) 205,593.00 Request # 304-700-2
FNS063 Individual State Agency Fiscal Note 5 Bill # 5677 E S SB
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce
Bill Number: 5677 E S 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: Tammi Alexander Phone: 360-725-5038 Date: 03/10/2025
Leg. Committee Contact: Martha Wehling Phone: 360-786-7067 Date: 03/10/2025
Agency Approval: Allan Johnson Phone: 360-725-5033 Date: 03/10/2025
OFM Review: Marie Davis Phone: (360) 890-1163 Date: 03/13/2025
Page 1 of 3 Bill Number: 5677 E S 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.
Note: A fiscal note was not completed for the first substitute, this analysis is based on a comparison with the analysis
completed for the original version. This fiscal note reflects language in ESSB 5677, 2025 Legislative Session.
CHANGES BETWEEN THIS ENGROSSED SUBSTITUTE VERSION AND ORIGINAL BILL:
- Modifies annual reporting requirements to include demographic information
- Authorizes the Department of Commerce to consult with state economic commissions and the Governor's Office of
Indian Affairs for technical assistance
SUMMARY OF CURRENT BILL:
- Increases the amount of assistance that Associate Development Organizations can provide for direct assistance in urban
and rural areas
- Permits the matched portion of the allocation to be provided through cash, in-kind, or a combination
- Requires Associate Development Organizations to meet the standards for maintaining, collecting, and presenting federal
data on race and ethnicity
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.
CHANGES IN EXPENDITURE IMPACTS BETWEEN THIS VERSION AND PREVIOUS BILL VERSION:
None
EXPENDITURE IMPACTS OF CURRENT BILL:
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.
CHANGES IN REVENUE IMPACTS BETWEEN THIS VERSION AND PREVIOUS BILL VERSION:
None
REVENUE IMPACTS OF CURRENT BILL:
This bill would not impact local government revenues.
SOURCES:
Senate Bill Report, ESSB 5677, As Passed Senate (03/04/25)
Local Government Division Fiscal Note, 1870 HB (2024)
Page 2 of 3 Bill Number: 5677 E S SB
FNS060 Local Government Fiscal Note
Associate Development Organization Biennial Report (2020)
Page 3 of 3 Bill Number: 5677 E S SB
FNS060 Local Government Fiscal Note
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