Panel hears SPARK Act to fund AI economic-development grants, staff estimate modest administrative costs

Committee staff briefed members on substitute House Bill 1833, known in the briefing as the SPARK Act, which would create a Commerce-administered grant program to promote economic development around innovative uses of artificial intelligence. Jessica Van Horn said eligible applicants must propose technology that will be shared with the state and that Commerce should prioritize factors listed in the bill report, consult the AG's AI task force at least annually through 2027, and report to the legislature on program results every two years.

Van Horn said Commerce assumes costs for one full-time equivalent staff position to administer the program at "around $160,000 per fiscal year," with additional grant costs dependent on legislative appropriations or successful solicitation of federal and private funding. "A reasonable total estimate of the program would be $660,000 to $1,600,000 per fiscal year," she said, while noting that the revenue source is likely to be the general fund in the program's first year unless other funds are secured.

Supporters at the public hearing said the SPARK Act would signal Washington's commitment to harnessing AI for economic growth while some witnesses suggested reducing task-force size and adding a right-to-compute provision. Kevin Frazier (Abundance Institute) and Crystal Leatherman (Washington Retail Association) urged the committee to move the bill forward and refine details through amendments.

The committee did not vote on HB 1833 at the hearing. Staff materials and the fiscal note in the electronic bill book contain further administration and grant-cost details.