HOUSE BILL REPORT

HB 1925

BYRepresentatives Holm, Vekich, Cooper, Basich, Moyer, Pruitt, Wineberry and P. King 

Establishing the local education and enterprise development program.

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass. (14)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Cantwell, Doty, Fox, Grant, Hargrove, Heavey, Holm, Moyer, Rasmussen, B. Williams and J. Williams.

Minority Report:  Do not pass. (3)

      Signed by Representatives Beck, Kremen and Schoon.

House Staff:Bonnie Austin (786-7107)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

FEBRUARY 1, 1988

BACKGROUND:

In several states, new school-based community development enterprise programs have been developed to help students start and maintain their own small businesses.  Through these programs, the schools act as small business incubators for enterprises created and operated by students.

To develop these enterprises, students first conduct a survey of the local economy to identify market gaps. New businesses are then created that are designed to fill these market gaps.  Thus, in addition to providing hands-on academic, entrepreneurial, and vocational training as well as helping students to find ways to tap their potential for self employment and small business development, these businesses stimulate the local economy.

Existing pilot school-based enterprises in North Carolina and Georgia include the following types of businesses: a child development center, a printing company, a community theatre, a feeder pig operation, a retail store, a tourist railway, a sheep farm, a community newspaper, and a construction company.

SUMMARY:

SUBSTITUTE BILL:  The Local Education and Enterprise Development Program is established in the Department of Community Development (DCD).  The program shall be developed in conjunction with the Superintendent of Public Instruction.  DCD shall contract with a local school district in an economically distressed area to operate a pilot program in at least one secondary school having an enrollment of over 100 students.  Program activities shall include: (a) A student-conducted survey of unmet local marketing needs; (b) Business- skills training for students; and (c) The development and operation of school-based businesses that meet local market needs.  The business may be sold to the students upon graduation.

The program shall use the services of the local Associate Development Organization, the Business Assistance Center, the Small Business Development Center, local Vocational Education Advisory Committees, and local governments.

DCD and the local school district shall report back to the legislature by December 31, 1989.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The appropriation is made from the federal interest payment fund instead of from the general fund.

Appropriation:    $40,000 to the Department of Community Development.

Fiscal Note:      Requested January 29, 1988.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Representative Holm; Don Hays, Centralia College; Bill Lotto, Economic Development Executives of Washington.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This is an excellent opportunity to provide rural students with entrepreneurial training.  Students need to be trained to avoid the pitfalls many small business people encounter.

House Committee - Testimony Against:      None Presented.