Declares an intent to bolster the partnership between state and local economic development efforts, provide increased funding for local economic development services, and increase local economic development service effectiveness, efficiency, and outcomes.

Requires contracting associate development organizations to provide the department with measures of their performance. Annual reports shall include information on the impact of the contracting organization on employment, wages, tax revenue, and capital investment. Specific measures shall be developed in the contracting process between the department and the contracting organization every two years. Performance measures should be consistent across regions to allow for statewide evaluation.

Provides that up to five associate development organizations per year contracting with the department under this act that apply for the Washington state quality award or its equivalent shall receive reimbursement for the award application fee, but may not be reimbursed more than once every three years.

Provides that contracts with associate development organizations shall be awarded according to the following annual schedule: (1) For associate development associations in urban counties, which are counties other than rural counties as defined in RCW 43.160.020, a locally matched ninety cents per capita allocation totaling no more than three hundred thousand dollars per organization each state fiscal year;

(2) For associate development associations in rural counties, as defined in RCW 43.160.020, a per county base allocation of forty thousand dollars and a locally matched ninety cents per capita allocation.

Provides that the act shall be null and void if appropriations are not approved.