Bill > HB1406

This bill amends existing state law regarding Associate Development Organizations (ADOs), which are local economic development entities that help promote business growth and job creation. The bill requires ADOs to provide detailed annual performance reports to the state department, including current employment data, net employment changes, funding sources, and potential impacts on wages, exports, tax revenue, and business activities. The legislation introduces more stringent performance accountability measures, mandating that ADOs and the state department agree on specific performance targets. If an ADO fails to meet more than half of its agreed performance measures, it must develop a remediation plan, and can face contract and funding termination for one year if improvements are not made. Additionally, the bill adjusts funding allocation methods for urban and rural ADOs, specifying per capita and base allocation amounts, and clarifying that local matching funds can include up to 25% in-kind contributions. The department is also required to submit a biennial report to the legislature detailing the performance results of ADO contracts. These changes aim to enhance the effectiveness and accountability of economic development organizations across Washington state.

Budget and Finance, Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=1406&Year=2025&Initiative=false