SENATE BILL REPORT

HB 1926

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.

As Reported by Senate Committee On:

Economic Development, Trade & Innovation, March 17, 2011

Majority Report: Do pass.

Signed by Senators Kastama, Chair; Chase, Vice Chair; Baumgartner, Ranking Minority Member; Hatfield, Holmquist Newbry, Kilmer and Shin.

Minority Report: That it be referred without recommendation.

Signed by Senator Ericksen.

Background: Associate development organizations (ADO) deliver direct assistance to companies and support research, planning, and implementation of regional and local economic development strategies. The Department of Commerce (Department) currently contracts with 34 ADOs serving the 39 counties in Washington.

The Department is required to report to the Legislature and the Washington Economic Development Commission by December 31 of each even-numbered year on the performance results of the contracts with the ADOs. Certain limitations to the current ADO performance measures have been identified including the lack of a common data-collection system and difficulty determining the value of particular input measurements.

Summary of Bill: By January 1, 2013, the Department must use a web-based information system to coordinate work with other economic development partners on business recruitment, retention, expansion, and trade. The web-based information system must be used to input data, track outcomes, and provide accurate and verifiable information which the Department will use to create comprehensive reports. The Department must make the system available to provide training and require its use by ADOs. The ADOs that do not provide the specified data in the web-based business information system must develop remediation plans to address performance gaps. The Department may also make the system available to other economic development partners.

Staff Summary of Public Testimony: PRO: This is a simple bill that gives some direction to Commerce to make a shared web-based information system available. As we seek how to track our dollars, understand how our dollars are being spent, and expect program accountability, this bill will allow for a common data system to be created in order to track such information. This will help Commerce create comprehensive reports that verify such data, which is something Commerce cannot do currently. This bill will also allow Commerce to provide the Legislature with information necessary to make sound policy decisions.