HOUSE BILL REPORT

                 SSB 5222

             As Reported By House Committee On:

            Trade, Economic Development & Housing

Title:  An act relating to urban/rural economic partnerships.

Brief Description:  Establishing a project to assist urban/rural economic partnerships.

Sponsors:  Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Skratek, Erwin, Bluechel, M. Rasmussen, Deccio, Winsley and Barr).

Brief History:

  Reported by House Committee on:

Trade, Economic Development & Housing, March 29, 1993, DP.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

Majority Report:  Do pass.  Signed by 13 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Forner, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Campbell; Casada; Conway; Morris; Quall; Schoesler; Sheldon; Springer; and Valle.

Staff:  Charlie Gavigan (786-7340).

Background:  In 1990, the Legislature established an Urban/Rural Linkage Program within the Department of Community Development as part of the Growth Management Act. The program makes grants to local nonprofit organizations for rural development or for sharing growth outside the Puget Sound region.

Summary of Bill:  The Urban/Rural Linkage Program is not limited to local nonprofit organizations.

The Department of Community Development (DCD) shall endeavor to establish a project within the department's Urban/Rural Linkage Program to assist businesses in high growth urban areas within the Puget Sound region locate new or expanded business operations in rural communities throughout the state.  DCD must establish contracts with organizations in high growth areas that wish to assist businesses find alternative locations in rural areas.  In addition, the department may also establish contracts with organizations in rural areas that wish to attract businesses to their locality.

The department is required to develop criteria, in consultation with local governments and corporations, outlining the scope, level, and time frame of services to be provided to businesses.  DCD, in consultation with the Department of Trade and Economic Development, the Employment Security Department and the Department of Revenue, is to provide contract parties with general information on possible industrial sites and local labor market and economic conditions.

DCD must report to the Legislature on the project by January 1, 1994.

Fiscal Note:  Available on original bill.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The Department of Community Development will continue to assist businesses in high growth urban areas to expand or relocate in rural communities.  This helps address the congestion and environmental issues in urban areas and helps the economies of rural areas.

Testimony Against:  None.

Witnesses:  Senator Sylvia Skratek, prime sponsor (supports).