HB 1406 Washington House · 2025-2026 Regular Session

Concerning associate development organizations.

HB 1406 requires associate development organizations (regional economic development groups) contracting with Washington’s Department of Commerce to submit detailed annual reports tracking employment impact, business services, and funding use. These reports must include metrics like net employment changes, small business outcomes, and regional economic data, all input into a shared web system. The bill establishes performance targets for these organizations, with consequences for failure - including remediation plans and potential one-year funding termination - to ensure accountability. It also adjusts funding allocations, providing urban organizations up to $300,000 annually (90 cents per capita) and rural organizations up to $40,000 plus matching funds. The bill directly affects regional economic development groups receiving state contracts, focusing on measurable outcomes rather than program creation.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 12, 2026 Last action Jan 12, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Bill → Substitute Bill · 6 edits

MODERATE

The bill was renumbered and transferred from the Technology committee to the House Appropriations committee, indicating a shift in focus toward funding and budgetary oversight. The primary substantive change involves adjusting the financial allocation limits for associate development organizations, increasing the base funding for rural counties while decreasing the maximum cap for urban organizations. Additionally, the text was cleaned up to remove redundant parenthetical explanations about 'associations' versus 'organizations'.

Scope change

The bill's scope regarding funding eligibility was modified by altering specific dollar amounts and per-capita limits for different county types.

TIMELINE

The bill's first reading date was updated from January 20, 2025, to February 26, 2025.

REQUIREMENT

The bill was transferred from the Committee on Technology, Economic Development, & Veterans to the House Appropriations committee.

FISCAL

Funding for urban associate development organizations was capped at $300,000 per organization, down from $500,000.

The base allocation for rural associate development organizations was set at up to $40,000 per county, replacing the previous range of $85,000 to $150,000.

The per capita match allocation for both urban and rural organizations remains at up to 90 cents.

TECHNICAL

Redundant text describing 'associations' versus 'organizations' was removed to clarify the terminology.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 12, 2026

Introduced

By resolution, reintroduced and retained in present status.

lower

Feb 27, 2025

Committee

Referred to Rules 2 Review.

lower

Feb 25, 2025

Lower · Passed

Executive action taken in the House Committee on Appropriations at 1:30 PM.

lower

Feb 22, 2025

Lower · Passed

Public hearing in the House Committee on Appropriations at 9:00 AM.

lower

Feb 7, 2025

Committee

Referred to Appropriations.

lower

Feb 5, 2025

Lower · Passed

TEDV - Majority; do pass.

lower

Feb 5, 2025

Lower · Passed

Executive action taken in the House Committee on Technology, Economic Development, & Veterans at 8:00 AM.

lower

Jan 29, 2025

Lower · Passed

Public hearing in the House Committee on Technology, Economic Development, & Veterans at 8:00 AM.

lower

1 primary · 10 co-sponsors