Rep. Barnard’s bill to improve accountability of associate development organizations advances from committee

A bill sponsored by Rep. Stephanie Barnard, R-Pasco, to enhance the performance and accountability of associate development organizations was approved by the House Technology, Economic Development, and Veterans Committee. House Bill 1406 seeks to strengthen oversight, revise funding allocations, and ensure data-driven evaluation of ADOs to promote economic growth across Washington State.

“This legislation would ensure that taxpayer dollars are being used effectively to support economic development in every community, from our largest cities to our most rural areas,” said Barnard. “By setting clear performance expectations and holding ADOs accountable, we can maximize job creation, business retention, and local investment.”

The bill focuses on several key areas, including standardized reporting requirements, performance targets, funding allocations, and a structured remediation process for underperforming ADOs. Among its provisions:

  • Performance Reporting and Accountability: ADOs must report standardized performance metrics such as employment impact, business retention, small business creation, exports, and capital investments. The Department of Commerce will oversee these reports using a centralized web-based system. Organizations failing to meet performance targets must develop remediation plans, with state funding at risk for non-compliance.
  • Revised Funding Allocations: Urban counties may receive up to $500,000 annually with a matching requirement, while rural counties will receive between $85,000 and $150,000 annually, with flexible matching criteria including up to 25% in-kind contributions.
  • Biennial Legislative Reporting: The Department of Commerce must submit a comprehensive report to the Legislature every two years, summarizing ADO performance and contract outcomes.

Barnard, who serves as the ranking Republican on the House Technology, Economic Development, and Veterans Committee, emphasized the need for accountability and measurable results.

“Our local economies depend on smart, targeted investments,” Barnard added. “This bill would give ADOs the tools they need to succeed while ensuring taxpayers see a return on their investment. If an organization isn’t meeting its goals, we’re putting in place safeguards to fix the problem and, if necessary, shift resources to more effective economic development strategies.”

By balancing support and accountability, the bill ensures that both urban and rural areas receive fair access to resources while promoting a higher standard of transparency and efficiency in economic development efforts.

“Economic development is only as strong as the partnerships that drive it,” Barnard concluded. “This legislation would foster collaboration between ADOs, businesses, and the state to build a more resilient and prosperous Washington.”

The bill now moves to the House Rules Committee, where it awaits further consideration and scheduling for a vote on the House floor.

###

Washington State House Republican Communications
houserepublicans.wa.gov