SENATE BILL REPORT

SHB 1189

BYHouse Committee on Trade & Economic Development (originally sponsored by Representatives Holm, Rayburn, Vekich, Rasmussen, Jacobsen, Moyer, Chandler, Jesernig, C. Smith and Todd)

Studying economic development and marketing needs of rural businesses.

House Committe on Trade & Economic Development

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 27, 1987

Majority Report:  Do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Anderson, Lee, Sellar, Tanner, Vognild, Williams, Wojahn.

Minority Report:  Do not pass.

      Signed by Senator West.

Senate Staff:Jack Brummel (786-7428); Bill Lynch (786-7427)

                  March 27, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, MARCH 27, 1987

BACKGROUND:

The rural areas of the state have experienced severe economic hardships which began during the recessions of 1980-82 as a result of sharp declines worldwide in the prices of natural resources and commodities relative to manufactured goods and traded services.  These problems have affected areas dependent on the wood products industry, fisheries, and minerals, and have begun to have severe repercussions in areas dependent on agriculture, impacted by the collapse of wheat prices.  The economic significance of the state's metropolitan areas has increased as a market for rural businesses, both in the case of tourism and as a market for processed goods.  There is a need for additional information on the economic and marketing problems faced by businesses in rural areas.  The information which does exist is not available in a form which would allow the Legislature to address these problems coherently so as to formulate state action as required.

SUMMARY:

The Department of Trade and Economic Development undertakes a study of the economic development and marketing needs of rural businesses.  The Department is authorized to enter into contracts in the process of carrying out the study.  The Department reports its findings to the appropriate standing committees of the Legislature in January, 1988.

Fiscal Note:      available

Senate Committee - Testified: Representative Barbara Holm