Associate development orgs

AN ACT Relating to associate development organizations; and 1
amending RCW 43.330.082 and 43.330.086. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: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
H-0586.1
HOUSE BILL 1406
State of Washington 69th Legislature 2025 Regular Session
By Representatives Barnard, Ryu, Leavitt, Waters, Rule, Ybarra,
Schmidt, Ramel, Paul, Reeves, and Springer
Read first time 01/20/25. Referred to Committee on Technology,
Economic Development, & Veterans.
p. 1 HB 1406
business creation, foreign direct investment, business relocations, 1
expansions, terminations, and capital investment. Data must be input 2
into a common web-based business information system managed by the 3
department. Specific measures, data standards, and data definitions 4
must be developed in the contracting process between the department 5
and the contracting organization every two years. ((Except as 6
provided in (b) of this subsection, performance )) Performance 7
measures should be consistent across regions to allow for statewide 8
evaluation. 9
(((b) In addition to the measures required in (a) of this 10
subsection, contracting associate development organizations in 11
counties with a population greater than one million five hundred 12
thousand persons must include the following measures in reports to 13
the department:14
(i) The number of small businesses that received retention and 15
expansion services, and the outcome of those services;16
(ii) The number of businesses located outside of the boundaries 17
of the largest city within the contracting associate development 18
organization's region that received recruitment, retention, and 19
expansion services, and the outcome of those services.))20
(2)(a) The department and contracting associate development 21
organizations must agree upon specific target levels for the 22
performance measures in subsection (1) of this section. Comparison of 23
agreed thresholds and actual performance must occur annually.24
(b) Contracting organizations that fail to achieve the agreed 25
performance targets in more than one-half of the agreed measures must 26
develop remediation plans to address performance gaps. The 27
remediation plans must include revised performance thresholds 28
specifically chosen to provide evidence of progress in making the 29
identified service changes. 30
(c) Contracts and state funding must be terminated for one year 31
for organizations that fail to achieve the agreed upon progress 32
toward improved performance defined under (b) of this subsection. 33
During the year in which termination for nonperformance is in effect, 34
organizations must review alternative delivery strategies to include 35
reorganization of the contracting organization, merging of previous 36
efforts with existing regional partners, and other specific steps 37
toward improved performance. At the end of the period of termination, 38
the department may contract with the associate development 39
organization or its successor as it deems appropriate.40
p. 2 HB 1406
(3) The department must submit a final report to the legislature 1
by December 31st of each even-numbered year on the performance 2
results of the contracts with associate development organizations.3
Sec. 2. RCW 43.330.086 and 2008 c 131 s 3 are each amended to 4
read as follows: 5
(1) To the extent that funds are specifically appropriated 6
therefor, contracts with associate development organizations for the 7
provision of services under RCW 43.330.080(1)(b)(i) shall be awarded 8
according to the following annual schedule: 9
(((1))) (a) For associate development associations serving urban 10
counties, which are counties other than rural counties as defined in 11
RCW 82.14.370, a ((locally matched allocation of up to ninety cents 12
per capita ,)) per county allocation totaling no more than ((three 13
hundred thousand dollars )) $500,000 per organization and a matched 14
allocation; and 15
(((2))) (b) For associate development associations in rural 16
counties, as defined in RCW 82.14.370, a per county base allocation 17
of ((up to forty thousand dollars )) at least $85,000 and up to 18
$150,000 and a ((locally)) matched allocation ((of up to ninety cents 19
per capita)). 20
(2) The matched allocation may be provided through cash, in-kind, 21
or a combination, with the in-kind match limited to 25 percent of the 22
local match.23
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