SENATE BILL REPORT

                   HB 1187

              As Reported By Senate Committee On:

               Commerce & Labor, March 27, 1997

Title:  An act relating to associate development organizations.

Brief Description:  Contracting with associate development organizations.

Sponsors:  Representatives Alexander, Van Luven, McMorris, DeBolt, Morris, Veloria, Sheldon, Pennington, Sump and Hatfield.

Brief History:

Committee Activity:  Commerce & Labor:  3/20/97, 3/27/97 [DP].

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.

  Signed by Senators Schow, Chair; Horn, Vice Chair; Anderson, Franklin and Newhouse.

Staff:  Patrick Woods (786-7430)

Background:  Associate Development Organizations (ADO) are local economic development nonprofit corporations with board members representing local governments, local chambers of commerce, private industry councils, port districts, labor groups, and institutions of higher education.

The purpose of an ADO is to work with public and private sectors in their service area to identify key economic and community development problems, develop appropriate solutions, and mobilize broad support for recommended initiatives.  The ADO then assumes the leadership role in the coordination of efficient delivery of services designed to implement the recommended initiatives. There are 33 ADOs in the state that operate on either a county-wide basis or consist of a consortium of two or more counties.

The Department of Community, Trade, and Economic Development is the primary state agency charged with assisting communities or regional areas in their community and economic development efforts.  The department may enter into contracts with ADOs to provide funding that either supports or coordinates the delivery of community and economic development services in communities or regional areas.  The department funding has been used by local ADOs for feasibility studies for specific projects, development of an economic development or action plan, and general support for the budget of the local ADO.

Summary of Bill:  The Department of Community, Trade, and Economic Development is required to contract with Associate Development Organizations or other local organizations for coordinated community and economic development services in communities and regional areas.

Appropriation:  None.

Fiscal Note:  Requested March 18, 1997.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill will ensure that local associate development agencies continue to be an integral part of the state=s economic development program.

Testimony Against:  None.

Testified:  Bill Lotto, Lewis Co. Econ. Devel. Council (pro).