SENATE BILL REPORT

2SSB 5872

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Anderson, Smitherman, Lee, Murray, West, McMullen, Benitz, Saling, Barr and Patterson)

Establishing a rural affairs revitalization committee and undertaking rural development projects.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 17, 1989; February 20, 1989; January 10, 1990; January 11, 1990

Majority Report:  That Second Substitute Senate Bill No. 5872 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Murray, Saling, Smitherman, Williams.

Senate Staff:Patrick Woods (786-7430)

                  February 6, 1990

AS PASSED SENATE, FEBRUARY 2, 1990

BACKGROUND:

During the last decade, the state's rural counties experienced continued economic downturns that proved disproportionately severe compared with the urbanized counties in the central Puget Sound region.  Twenty-two of the state's 39 counties, all of which are rural, fall within the category "distressed" as defined under several state programs.  It is estimated that distressed counties have lost approximately 14,000 jobs between 1980 and 1986, opposed to a net gain of 185,000 jobs in the rest of the state.  The contrast between the two regions is further demonstrated by the difference in per capita income. The average income level of the central Puget Sound area is 15 percent over the state's average, while other regions are 10 percent below the average income level (1987 average state per capita income was $12,615).  The reasons for the economic disparity within the state are complex and varied.  However, the dependence of rural regions on agriculture, timber, fishing and resource-based industries, along with the depressed markets for the majority of these products during the 1980s, is considered to be a major factor driving this phenomena.  In an effort to promote rural economic development, the Legislature established a number of programs administered by several agencies including the Department of Community Development, the Department of Trade and Economic Development and the Department of Agriculture.

SUMMARY:

The Rural Revitalization Interagency Council is established within the Department of Community Development to provide policy direction and promote coordination of the state's rural development programs.  The council is appointed by the Governor and chaired by the Director of the Department of Community Development. 

The Department of Community Development, in consultation with the committee and other interest groups, is directed to develop a rural development plan and establish revitalization projects.  The goals of the projects are to encourage the formation of new businesses and industries in rural areas; retain existing businesses; maintain and develop infrastructure conducive to revitalization; and build local development capacity with an emphasis on local decision making.  The department in consultation with the council is authorized to develop an application and evaluation process for the projects.  The council, in choosing project sites, is to consider the degree of economic distress in an area and the feasibility of significantly impacting the community's economy.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested

Senate Committee - Testified: Don Krupp, Washington State Department of Community Development (pro); Art Yoshioka, Pacific County Economic Development Council (pro); Judith St. Claire, Clallam County Economic Development Council (pro)