Bill > SB5677

This bill modifies state law regarding Associate Development Organizations (ADOs), which are local economic development entities that help support business growth and retention. 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 reporting must now use a common web-based system, with performance measures designed to be consistent across regions for better statewide evaluation. The bill introduces a more rigorous performance accountability system where ADOs must agree on specific performance targets with the state department, and organizations that fail to meet more than half of their agreed measures must develop remediation plans. If an organization continues to underperform, its state funding can be terminated for one year, during which it must review and potentially restructure its strategies. For funding purposes, the bill maintains different allocation levels for urban and rural counties, with urban county ADOs eligible for up to 90 cents per capita (max $300,000) and rural county ADOs receiving a base $40,000 allocation plus per capita funding. The bill also clarifies that locally matched allocations cannot include state general funds and can include non-state funds, cash, or in-kind contributions.

Budget and Finance, Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=5677&Year=2025&Initiative=false