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Committee reports ADO funding bill after amending allocation formula
Summary
The committee reported out engrossed substitute Senate Bill 5,677 (companion to a House bill), adopting a striking amendment that changes allocation language for associate development organizations and includes a limited null‑and‑void clause for the appropriation change.
On March 21, 2025, the Technology, Economic Development and Veterans Committee voted to report engrossed substitute Senate Bill 5,677 out of committee with a do‑pass as amended recommendation after adopting a striking amendment.
The adopted amendment (H‑1956.1) changes the statutory allocation language for associate development organizations (ADOs) from a maximum to a minimum allocation. Under the amendment, urban counties would receive a minimum allocation of $300,000 (the bill previously referenced a $500,000 maximum), and rural counties’ allocations were adjusted in the packet language to a minimum of $40,000 (the packet noted prior language that included a minimum of $85,000 and a maximum of $150,000). Because changing a ceiling to a floor could affect the fiscal note, the amendment includes a narrowly tailored null‑and‑void clause that applies only to the allocation change; other policy changes in the bill would remain effective.
Committee members spoke in favor of the bill’s cleanup and support for ADOs’ work. Representative Barnard framed ADOs as “vital to our economic development” and said the bill removes COVID‑era language and clarifies funding and reporting requirements. Representative Bernard and others urged support; the staff roll call recorded 10 ayes and 3 excused.
Votes at a glance - Motion: Report engrossed substitute Senate Bill 5,677 b out of committee with a do pass as amended recommendation. - Outcome: Approved (reported out of committee) - Tally: 10 yes, 0 no, 3 excused
Why it matters: The shift from maximum to minimum allocations changes the baseline funding guarantees for ADOs and could alter how Commerce distributes state dollars to regional development organizations. The null‑and‑void carve‑out preserves other policy changes while allowing appropriation language to be reconsidered if fiscal impacts differ from current estimates.
What the transcript does not specify: The final fiscal note amount after the amendment and whether the full Legislature will adopt the amended allocation language; the transcript records committee recommendation only.
