H-1806              _______________________________________________

                                           SUBSTITUTE HOUSE BILL NO. 373

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By House Committee on Agriculture & Rural Development (originally sponsored by Representatives Grant, Jacobsen, Nealey, Rayburn, Brooks, Kremen, Holm, Sutherland and Rasmussen)

Read first time 2/16/87 and referred to Committee on Ways & Means.

AN ACT Relating to rural development; creating new sections; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     It is the intent of the legislature to:

          (1) Promote economic development in the rural community through the use of telecommunications;

          (2) Find ways to diversify the rural economy by using information-intensive service-sector type businesses; and

          (3) Find ways to use telecommunications applications to stimulate the economy in agricultural areas.

          The legislature therefore directs the department of community development, and the utilities and transportation commission, to investigate the feasibility of introducing office-intensive industry into agriculturally based rural communities in Washington state.

NEW SECTION. Sec. 2.     In its study, the department of community development shall:

          (1) Examine the trends in office-intensive industry and the extent to which the industry decentralizes its facilities to determine how locating such facilities in rural areas can benefit the industry and the communities in which such facilities are located.

          (2) Compare the cost of locating the office sector work for these industries in the rural community to conducting the work in a nearby urban setting in Washington state.  The department shall base this comparison on a specific agriculturally based rural community in this state.  This comparison should include:

          (a) Cost of labor;

          (b) Turn-over rates;

          (c) Availability and cost of office space;

          (d) Occupancy costs;

          (e) Availability and qualification of labor force; and

          (f) Such other factors found pertinent to the study.

          (3) Determine whether the rural community has the sufficient telecommunications infrastructure to accommodate the potential facilities.  The department should consider:

          (a) The type of local exchange facilities available;

          (b) The level of sophistication of central office switching technology;

          (c) The type, availability, and choice of long distance carriers; and

          (d) A comparison of party line and private line technology and cost.

          (4) Determine the feasibility and the advantages and disadvantages of an industry locating its office sector branch in a rural community as opposed to a local entrepreneur setting up the branch and contracting with the industry to supply office services.

NEW SECTION. Sec. 3.     (1) The utilities and transportation commission shall conduct a study to determine the number of party versus private lines in the rural community selected for study under section 2 of this act, and determine the cost, feasibility, and desirability of converting to private lines.  This information shall be supplied to the department of community development.

          (2) The department of community development and the utilities and transportation commission shall jointly develop recommendations for a program to update rural communities about telecommunications and computer applications to farming, logging, wood products manufacturing, and aquaculture and fishing enterprises.

NEW SECTION. Sec. 4.     The department of community development and the utilities and transportation commission shall submit the results of their studies and their recommendations to the governor and the joint committee on telecommunications by January 1, 1988.

NEW SECTION. Sec. 5.     The sum of forty-two thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1989, from the general fund to the department of community development for the purposes of this act.