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WashingtonSB 56772025-2026 Regular SessionSenateWALLET

Concerning associate development organizations.

Sponsored By: Adrian Cortes (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

New reporting and performance rules for ADOs

Beginning July 27, 2025, associate development organizations (ADOs) with state contracts must file a yearly report. Reports must use Employment Security Department data, show net changes from last year, list money from the state contract and all sources, and explain the ADO’s impact on jobs. Reports may also cover wages, exports, tax revenue, small business growth, and other results. ADOs must share best practices with the department. ADOs must enter data into one web system run by the Department of Commerce. Every two years, Commerce and each ADO set common measures and data standards, with extra measures in counties over 1,500,000 people. They also set yearly performance targets and compare results to the targets each year. If an ADO misses more than half of its measures, it must make a remediation plan with new thresholds to show progress. If it then fails to make the agreed progress, the state ends the contract and funding for one year while the ADO reviews other delivery options. Commerce sends lawmakers a statewide performance report by December 31 of every even-numbered year.

New state funding formula for ADOs

Beginning July 27, 2025, the state sets a new funding formula for ADOs, subject to appropriation. Urban counties: up to $0.90 per person with a $300,000 cap per organization, with a local match. Rural counties: a $40,000 base per county plus up to $0.90 per person, with a local match. Local match cannot use state general fund dollars. It may be nonstate funds, cash, or in-kind support. Rural and urban county definitions follow state law.

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Sponsors & Cosponsors

Sponsor

  • Adrian Cortes

    Democratic • Senate

Cosponsors

  • Marcus Riccelli

    Democratic • Senate

  • Mark Schoesler

    Republican • Senate

  • Noel Frame

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 179 • No: 13

Senate vote • 4/21/2025

Final Passage as Amended by the House

Yes: 38 • No: 10

House vote • 4/11/2025

Final Passage as Amended by the House

Yes: 95 • No: 0 • Other: 3

Senate vote • 3/4/2025

3rd Reading & Final Passage

Yes: 46 • No: 3

Actions Timeline

  1. Effective date 7/27/2025.

    5/20/2025Senate

  2. Chapter 392, 2025 Laws.

    5/20/2025Senate

  3. Governor signed.

    5/20/2025legislature

  4. Delivered to Governor.

    4/24/2025legislature

  5. Speaker signed.

    4/23/2025legislature

  6. President signed.

    4/22/2025legislature

  7. Passed final passage; yeas, 38; nays, 10; absent, 0; excused, 0.

    4/21/2025Senate

  8. Senate concurred in House amendments.

    4/21/2025House

  9. Third reading, passed; yeas, 95; nays, 0; absent, 0; excused, 3.

    4/11/2025Senate

  10. Rules suspended. Placed on Third Reading.

    4/11/2025Senate

  11. Committee amendment(s) adopted as amended.

    4/11/2025Senate

  12. Rules Committee relieved of further consideration. Placed on second reading.

    4/10/2025Senate

  13. Referred to Rules 2 Review.

    4/8/2025Senate

  14. Minority; without recommendation.

    4/5/2025Senate

  15. APP - Majority; do pass with amendment(s) but without amendment(s) by Technology, Economic Development, & Veterans.

    4/5/2025Senate

  16. APP - Executive action taken by committee.

    4/5/2025Senate

  17. Referred to Appropriations.

    3/25/2025Senate

  18. TEDV - Executive action taken by committee.

    3/21/2025Senate

  19. TEDV - Majority; do pass with amendment(s).

    3/21/2025Senate

  20. First reading, referred to Technology, Economic Development, & Veterans.

    3/6/2025Senate

  21. Third reading, passed; yeas, 46; nays, 3; absent, 0; excused, 0.

    3/4/2025Senate

  22. Rules suspended. Placed on Third Reading.

    3/4/2025Senate

  23. Floor amendment(s) adopted.

    3/4/2025Senate

  24. 1st substitute bill substituted.

    3/4/2025Senate

  25. Placed on second reading by Rules Committee.

    3/3/2025Senate

Bill Text

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