S-1368.3 _______________________________________________
SUBSTITUTE SENATE BILL 5220
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State of Washington 53rd Legislature 1993 Regular Session
By Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Skratek, Erwin, Bluechel, Sheldon, M. Rasmussen, Deccio and Winsley)
Read first time 02/19/93.
AN ACT Relating to funds for loans to small businesses in certain economically distressed areas; amending RCW 43.85.230 and 43.86A.030; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that many communities throughout the state are experiencing economic stagnation or decline. The unemployment and underemployment is these distressed areas threaten the safety, health, and welfare of residents of these areas, decreasing the value of private investment and jeopardizing the sources of public revenue. The revitalization of distressed areas requires the development of new business ventures and the stimulation of private investment. It is the intent of the legislature to provide capital to promote economic development and job creation in distressed areas by authorizing the state treasurer to operate a program which links state deposits to business loans by financial institutions.
Sec. 2. RCW 43.85.230 and 1984 c 177 s 20 are each amended to read as follows:
The state treasurer may deposit moneys not
required to meet current demands upon a term deposit basis not to exceed ((one
year)) five years at such interest rates and upon such conditions as
to withdrawals of such moneys as may be agreed upon between the state treasurer
and any qualified public depositary.
Sec. 3. RCW 43.86A.030 and 1982 c 74 s 1 are each amended to read as follows:
Funds held in public depositaries not as demand deposits as provided in RCW 43.86A.020 and 43.86A.030, shall be available for a time certificate of deposit investment program according to the following formula: The state treasurer shall apportion to all participating depositaries an amount equal to five percent of the three year average mean of general state revenues as certified in accordance with Article VIII, section 1(b) of the state Constitution, or fifty percent of the total surplus treasury investment availability, whichever is less. Within thirty days after certification, those funds determined to be available according to this formula for the time certificate of deposit investment program shall be deposited in qualified public depositaries. These deposits shall be allocated among the participating depositaries on a basis to be determined by the state treasurer. Fifty percent of all funds available for the time certificate of deposit program shall be available for deposit in qualified public depositaries that lend money in economically distressed areas as defined in RCW 43.165.010 for the following:
(1) Small businesses as defined in RCW 43.31.025; or
(2) Residential loans affordable to low and moderate income persons as determined under RCW 43.180.020(5).
The amounts made available to these public depositaries shall be equal to the amounts of outstanding loans they have under subsections (1) and (2) of this section. The formula so devised shall be a matter of public record giving consideration to, but not limited to deposits, assets, loans, capital structure, investments or some combination of these factors: PROVIDED, That, if in the judgment of the state treasurer the amount of allocation for certificates of deposit as determined by this section will impair the cash flow needs of the state treasury, the state treasurer may adjust the amount of the allocation accordingly.
NEW SECTION. Sec. 4. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
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