S-3735               _______________________________________________

                                                   SENATE BILL NO. 6222

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators Anderson, Fleming, Conner and Smitherman

Read first time 1/14/88 and referred to Committee on Economic Development & Labor.

AN ACT Relating to the small business export finance assistance center; and amending RCW 43.210.040.

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

        Sec. 1.  Section 4, chapter 20, Laws of 1983 1st ex. sess. as last amended by section 43, chapter 505, Laws of 1987 and RCW 43.210.040 are each amended to read as follows:

          (1) The small business export finance assistance center formed under RCW 43.210.020 and 43.210.030 shall have the powers granted under chapter 24.03 RCW.  In exercising such powers, the center may:

          (a) Solicit and accept grants, contributions, and any other financial assistance from the federal government, federal agencies, and any other sources to carry out its purposes;

          (b) Make loans to Washington businesses with annual sales of twenty-five million dollars or less for the purpose of financing exports of goods or services by those businesses to buyers in foreign countries.  Loans by the small business export finance assistance center under this chapter shall not compete with nor be a substitute for available loans by a bank or other financial institution and shall only be considered upon a financial institution's assurance that such loan is not available;

          (c) Provide loan guarantees on loans made by financial institutions to businesses with annual sales of one hundred million dollars or less for the purpose of financing exports of goods or services by those businesses to buyers in foreign countries;

          (d) Establish and regulate the terms and conditions of any such loans and loan guarantees and charges for interest and services connected therewith;

          (e) Provide export financial counseling to Washington exporters with annual sales of one hundred million dollars or less, provided that such counseling is not available from a Washington for-profit business.  For such counseling, the center may charge such fees as it determines are necessary((.));

          (f) Provide financial counseling to companies that manufacture goods that are alternatives to imported products;

(g) Provide financial counseling to companies that are entering into joint ventures with firms from foreign countries and that intend to locate in Washington;

(h) Contract with the federal government and its agencies to become a program administrator for federally provided country risk insurance programs and  for the purposes of this chapter; and

          (((g))) (i) Take whatever action may be necessary to accomplish the purposes set forth in this chapter.

          (2) The center may not use any Washington state funds or funds which come from the public treasury of the state of Washington to make loans or to make any payment under a loan guarantee agreement.  Under no circumstances may the center use any funds received under RCW 43.210.050 to make or assist in making any loan or to pay or assist in paying any amount under a loan guarantee agreement.  Debts of the center shall be center debts only and may be satisfied only from the resources of the center.  The state of Washington shall not in any way be liable for such debts.

          (3) The center may contract with out-of-state agencies and firms to provide authorized services if the services are funded by the contractual agreement and not by public moneys.

(4) The small business export finance assistance center shall make every effort to seek nonstate funds for its continued operation.

          (((4))) (5) The small business export finance assistance center may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the small business export finance assistance center and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.