HOUSE BILL REPORT

HB 373

BYRepresentatives Grant, Jacobsen, Nealey, Rayburn, Brooks, Kremen, Holm, Sutherland and Rasmussen

Directing the department of community development to conduct rural development studies.

House Committe on Agriculture & Rural Development

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

     Signed by Representatives Rayburn, Chair; Kremen, Vice Chair; Baugher, Bristow, Brooks, Chandler, Doty, Grant, Holm, Jacobsen, McLean, Moyer, Nealey and Rasmussen.

House Staff:Kenneth Hirst (786-7105)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:     The substitute bill by Committee on Agriculture & Rural Development be substituted therefor and the substitute bill do pass.  (22)

     Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, Holland, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Silver, H. Sommers, Sprenkle and B. Williams.

House Staff:    Ron Morrison (786-7178)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

MARCH 7, 1987

BACKGROUND:

The Department of Community Development was created to aid in providing financial and technical assistance to communities and to assist in improving the delivery of governmental programs. Among the utilities regulated by the Utilities and Transportation Commission under state laws are certain telecommunications companies.

SUMMARY:

SUBSTITUTE BILL:  The Department of Community Development and the Utilities and Transportation Commission are directed to investigate the feasibility of introducing office intensive industry into agriculturally based rural communities.

The department shall:  examine trends in office intensive industry and the extent to which it decentralizes its facilities; compare the cost of conducting work for these industries in the rural and nearby urban areas ; determine whether the rural community has a sufficient telecommunications infrastructure to accommodate potential facilities; and examine certain related issues. The sum of $42,000 is appropriated to the department to conduct this study.

The commission shall conduct a study to determine the number of party and private lines in the rural community selected by the department. The commission shall determine the cost, feasibility, and desirability of converting to private lines.

The department and the commission shall jointly develop recommendations for a program to update rural communities about telecommunications and computer applications to certain enterprises.  The department and commission shall submit the results of their studies to the governor and the Joint Committee on Telecommunications by January 1, 1988.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The appropriation to the department is increased by the substitute bill to $42,000 (from $30,000); and the enterprises are expanded for which the commission and the department must make recommendations regarding telecommunications and computer applications.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS:  None.

Appropriation:  $42,000 is appropriated to the Department of Community Development.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     (Agriculture & Rural Development)  Hal Lincoln, Contel; and Greg Dohrn, Department of Community Development.

(Ways & Means/Appropriations)  Same as in Committee on Agriculture & Rural Development.

House Committee - Testified Against: (Agriculture & Rural Development)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:     (Agriculture & Rural Development)  If state government is going to be successful in its economic revitalization efforts, it must find new ideas and new opportunities; the telecommunications study in this bill may provide both.

(Ways & Means/Appropriations)  Same as in Committee on Agriculture & Rural Development.

House Committee - Testimony Against: (Agriculture & Rural Development)  None Presented.

(Ways & Means/Appropriations)  None Presented.