HOUSE BILL REPORT

HB 1189

BYRepresentatives 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

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (17)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Cantwell, Doty, Grant, Hargrove, Holm, Kremen, McLean, McMullen, Moyer, Rasmussen, Schoon, B. Williams and J. Williams.

House Staff:Stephen Hodes (786-7092)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

MARCH 5, 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 impacted areas dependent on the wood products industry, fisheries, and minerals, and have begun to have severe impacts in areas dependent on agriculture, impacted by the collapse of wheat prices.  The increased economic significance of the state's metropolitan areas 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:

SUBSTITUTE BILL:  The Department of Trade and Economic Development is directed to undertake 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 is directed to report its findings to the appropriate standing committees of the legislature in January, 1988.

SUBSTITUTE BILL COMPARED TO ORIGINAL: The appropriation of $30,000 from the General Fund in the original has been removed in the substitute.

Fiscal Note:      Requested March 6, 1987.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.