SENATE BILL REPORT

HB 1916

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background: The Department of Commerce (department) works with businesses to facilitate resolution of siting, regulatory, expansion, and retention problems.

Associate development organizations (ADOs) are local organizations designated by each county to serve as the department's primary partner in local economic development activities in their county. ADOs deliver direct assistance to companies, and support research, planning, and implementation of regional and local economic development strategies.

The department currently contracts with 34 ADOs serving the 39 counties in Washington. ADOs are required to work with businesses on site location and selection assistance and provide business retention and expansion services. The ADOs are required to submit annual performance reports to the department.

Summary of Bill: The department must establish protocols to be followed by ADOs and department staff for the recruitment and retention of businesses, including protocols relating to the sharing of information between ADOs and the department. The protocols may not require the release of proprietary or confidential information.

The ADOs must provide business-related assistance and work with partners throughout the county in which they operate.

The ADOs serving counties with a population greater than 1.5 million (King County) must include the following additional information in performance reports:

the number of small businesses that received retention and expansion services, and the outcome of those services; and
the number of businesses located outside of the boundaries of the largest city in its region that received recruitment, retention, and expansion services, and the outcome of those services.

Small business is defined as an in-state business, including a sole proprietorship, corporation, partnership, or other legal entity that is owned and operated independently from all other businesses and has either (1) 50 or fewer employees, or (2) a gross revenue of less than $7 million annually as reported on its federal income tax return or its return filed with the Department of Revenue over the previous three consecutive years.