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WashingtonSB 56772025-2026 Regular SessionSenate

Concerning associate development organizations.

Sponsored By: Adrian Cortes (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

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

Development groups face performance and funding checks

Beginning July 27, 2025, contracting associate development organizations must give the state performance measures and a summary of best practices. Annual reports must include current employment and economic data from the Employment Security Department, plus changes from the prior year. They must also include other relevant regional information, state contract funding, total funding, and employment impacts using all funding sources. Reports can also cover wages, exports, tax revenue, small business creation, foreign investment, business moves, expansions, closures, and capital investment. All data must go into a common state-managed web system. Every two years, the state and each group must develop shared measures, data standards, and definitions through contracting. They must agree on targets and compare them with actual results each year. Groups missing targets on more than half the measures must make improvement plans, including revised targets to show progress. Failure to make the agreed progress ends their contracts and state funding for one year. During that year, groups must review other service options, including reorganizing or merging with regional partners. The state can contract with the group or its successor after termination. By December 31 of each even-numbered year, the state must report contract performance results to the appropriate legislative committees.

Funding and matching rules for development groups

Beginning July 27, 2025, Washington sets annual funding amounts for local associate development organizations. Rural counties get a $40,000 base amount, replacing a base of up to $40,000, plus locally matched funding of up to 90 cents per resident. Urban county organizations get up to 90 cents per resident, capped at $300,000 per organization. Rural and urban status follows the state's county definitions. Local matches can use nonstate cash or in-kind contributions, but cannot include Washington State General Fund money. These service contracts depend on funds specifically appropriated by the state. The money supports economic development groups, not direct payments to households or businesses.

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. APP - Executive action taken by committee.

    4/5/2025Senate

  15. Minority; without recommendation.

    4/5/2025Senate

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

    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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