WSR 08-03-116

PERMANENT RULES

OFFICE OF MINORITY AND

WOMEN'S BUSINESS ENTERPRISES

[ Filed January 22, 2008, 2:30 p.m. , effective February 22, 2008 ]


Effective Date of Rule: Thirty-one days after filing.

Purpose: To establish rules governing eligibility criteria; priority consideration; limits on the number of enrollments for a business or an owner; and a lifetime cap on the total principal amount that a business owner may enroll in the linked deposit program.

Citation of Existing Rules Affected by this Order: Amending chapters 326-02 and 326-20 WAC.

Statutory Authority for Adoption: RCW 39.19.030.

Other Authority: RCW 43.86A.060 (sections 1 and 2, chapter 500, Laws of 2007).

Adopted under notice filed as WSR 07-17-184 on August 22, 2007.

Changes Other than Editing from Proposed to Adopted Version: In subsection (3) of WAC 326-70-035, the total principal amount of qualified loans that an owner could enroll in the program is reduced from $10 million in the proposed version to $5 million in the adopted version.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 1, Amended 2, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: January 15, 2008.

Cynthia Cooper

Director


NEW SECTION
WAC 326-70-010   Linked deposit program -- Purpose and intent.   The purpose of this program is to facilitate access to capital for minority and women's business enterprises certified under chapter 39.19 RCW. The intent of these rules is to increase the number of minority and women business owners participating in the program and decrease the wait period between enrollment approval and funding.

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[NEW SECTION]WAC 326-70-020   Definitions.   The following words and terms have specific meaning as used in this chapter which may be different from their meaning elsewhere in this title.

(1) "Business" means an entity that is certified as a MBE, WBE, MWBE or CBE under chapter 39.19 RCW.

(2) "Office" means the Washington State Office of Minority and Women's Business Enterprises (OMWBE).

(3) "Owner" means any person(s) holding a majority ownership interest in a business certified under chapter 39.19 RCW.

(4) "Person" means one or more individuals, partnerships, associations, organizations, corporations, cooperatives, limited liability companies, legal representatives, trustees and receivers, or any group of persons.

(5) "Principal Amount" means the amount of the loan as of the time the loan is initiated (not its declining balance from time to time).

(6) "Program" means the Linked Deposit Program authorized under RCW 43.86A.060.

(7) "Treasurer" means the Office of the State Treasurer.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-035   Loan and enrollment limits.   (1) The total principal amount of a single qualified loan shall not exceed one million dollars.

(2) The total principal amount of qualified loans under the program that any one business may receive over the lifetime of the business shall not exceed $5,000,000.00.

(3) The total principal amount of qualified loans that an owner of one or more businesses may enroll in the program during her/his lifetime shall be $5,000,000.00.

(4) The number of qualified loans that any one business may enroll in the program over the lifetime of the business shall not be limited: PROVIDED, That a statement regarding the number of full-time or part-time jobs to be created or saved by each new enrollment is filed with the office at the time of enrollment.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-040   Funding eligibility.   All qualified public depositaries desiring to enroll a qualified loan in the Linked Deposit Program shall complete and submit a loan enrollment form to the office for approval. The loan must be to a business certified under chapter 39.19 RCW and the form must be signed by the owner having the majority ownership interest in the business. The office shall review all forms received by the twenty-fifth day of each calendar month and forward a list of approved enrollments to the treasurer by the fifth working day of the following month.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-050   Funding priority -- Established.   Funding shall occur on a monthly basis as funds are available. First-time enrollments must be first to receive funding in the month they are approved. If available funds are insufficient to cover the remaining enrollments in a given month, the unfunded enrollments must be first to receive funding in the subsequent month. First-time enrollments in that month will be funded following the funding of enrollments brought forward from the previous month(s). See illustration below.

Loan Application Funded?
Loan

ID

First Loan? Dec.

07

Jan.

08

Feb.

08

Mar.

08

D-1 Y Y
D-2 Y Y
D-3 N Y
D-4 N N Y
D-5 N N N Y
D-6 N N N N Y
J-1 Y -- N N Y
J-2 N -- N N N
J-3 N -- N N N
F-1 Y -- -- N Y
F-2 Y -- -- N Y
F-3 N -- -- N N
F-4 N -- -- N N
M-1 Y -- -- -- N
M-2 N -- -- -- N

Note: In the Loan ID column, the alpha character identifies the month in which the enrollment was approved. After three months on the list, unfunded enrollments (other than first-timers) will be funded in alternating order with first-time enrollments. First-timers that are unfunded after six months will be given priority and not subjected to alternating. (See WAC 326-70-060)

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-060   Funding priority -- Adjusted.   (a) Approved but unfunded enrollments on the effective date of these rules shall be funded prior to enrollments approved after the effective date of these rules.

(b) The funding list will be reviewed and updated each month in a manner that maintains the priority of first-time enrollments for the current month while providing funding for others that have been unfunded for at least three months.

(c) When a first-time enrollment remains unfunded after six months due to lack of available funds, it must be funded with available funds before all other enrollments.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-065   Accountability.   Qualified public depositaries shall report current loan balances each month on all loans to the Treasurer.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-070   Applicability of rules.   This chapter shall apply to all enrollment requests to the Linked Deposit Program: PROVIDED, That sections 326-70-050 and 326-70-060 shall apply only to enrollments approved after the effective date of the rules' adoption. Enrollments received prior to the effective date of the rule shall be funded in the order received, subject to availability of funds.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.
AMENDATORY SECTION(Amending WSR 04-08-093 [92-11-007], filed 4/6/04 [5/11/92], effective 5/7/04 [6/11/92])

WAC 326-02-020   Applicability.   Title 326 applies to all applications for certification, the Linked Deposit Program, and to all public works and procurement by state agencies and educational institutions: ((Provided)) PROVIDED, That this title does not apply where it is found to be in conflict with federal requirements which are a prescribed condition to the allocation of federal funds to the state. In such a case, the conflicting portions of this chapter are inoperative solely to the extent of the conflict and with respect to the agencies directly affected.

[Statutory Authority: RCW 39.19.030(7). 92-11-007, 326-02-020, filed 5/11/92, effective 6/11/92. Statutory Authority: 1983 c 120 3(7). 83-22-045 (Order 83-3), 326-02-020, filed 10/28/83.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.
AMENDATORY SECTION(Amending WSR 92-11-007 [04-08-093], filed 5/11/92 [4/6/04], effective 6/11/92 [5/7/04])

WAC 326-20-180   Effect of certification.   Certification by OMWBE under the state program shall have the following effects:

(3) Certification as a minority business enterprise (MBE), minority woman business enterprise (MWBE), women's business enterprise (WBE), or combination business enterprise (CBE) satisfies the threshold requirement for a qualifying loan under RCW 43.86A.060 (2)(c).

[Statutory Authority: RCW 39.19.030 and 39.19.120. 04-08-093, 326-20-180, filed 4/6/04, effective 5/7/04. Statutory Authority: RCW 39.19.030(7). 92-11-007, 326-20-180, filed 5/11/92, effective 6/11/92. Statutory Authority: Chapter 39.19 RCW. 88-09-047 (Order 88-5), 326-20-180, filed 4/18/88; 84-09-002 (Order 84-5), 326-20-180, filed 4/5/84. Statutory Authority: 1983 c 120 3(7). 83-22-045 (Order 83-3), 326-20-180, filed 10/28/83.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

Washington State Code Reviser's Office