H-1207

AN ACT Relating to minority and women-owned businesses; amending RCW 43.31.085, 43.31.055, and 39.19.030; adding a new chapter to Title 43 RCW; and making appropriations.

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

NEW SECTION. Sec. 1. INTENT. It is the intent of the legislature to combat discrimination in the economy.

(1) The legislature finds that discrimination is in part responsible for:

(a) The disproportionately small percentage of the state's businesses that are owned by minorities and women;

(b) The limited and unequal opportunity minority and women entrepreneurs and business owners have to procure small business financing; and

(2) The legislature further finds that:

(a) Many minority and women entrepreneurs and business owners lack training in how to establish and operate a business. This lack of training inhibits their competitiveness when they apply for business loans, bonds, and contracts;

(b) Minorities and women are an increasingly expanding portion of the population and work force. In order for these individuals to fully contribute to the society and economy it is necessary to ensure that minority and women entrepreneurs and business owners are provided an equal opportunity to procure small business financing, bonds, and contracts; and

(c) The growth of small businesses will have a favorable impact on the Washington economy by creating jobs, increasing competition in the marketplace, and expanding tax revenues. Access to financial markets, bonds, and contracts by entrepreneurs and small business owners is vital to this process. Without reasonable access to financing, bonds, and contracts, talented and aggressive entrepreneurs and small business owners are cut out of the economic system and the state's economy suffers.

(3) Therefore, the legislature declares there to be a substantial public purpose in providing technical assistance in the areas of marketing, finance, and management, and access to capital resources, bonds, and contracts, to help start or expand a minority or women-owned business, and specifically to encourage and make possible greater participation by minorities and women in international trade, public works and construction, and public facility concessions. To accomplish these purposes, it is the intent of the legislature to:

(a) Develop training courses in financing, marketing, managing, accounting, and recordkeeping for a small business and to make these programs available to minority and women entrepreneurs and small business owners;

(b) Make public works and construction projects and public facility concessions accessible to a greater number of minority and women-owned businesses;

(c) Provide for the lending of nonstate funds to qualified minority and women entrepreneurs and business owners in order to provide the maximum practicable opportunity for innovative minority and women entrepreneurs and business owners to compete for small business financing; and

(d) Provide professional services assistance grants and bond guarantees on behalf of qualified contractors in order to provide the maximum practicable opportunity for minority and women-owned contracting businesses to participate in the Washington state economy by bidding and completing various public and private contracting jobs.

I. EDUCATION AND TECHNICAL ASSISTANCE

Sec. 2. RCW 43.31.085 and 1989 c 430 s 2 are each amended to read as follows:

MARKETING, FINANCE, AND MANAGEMENT ASSISTANCE. The business assistance center shall:

(1) Serve as the state's lead agency and advocate for the development and conservation of businesses.

(2) Coordinate the delivery of state programs to assist businesses.

(3) Provide comprehensive referral services to businesses requiring government assistance.

(4) Serve as the business ombudsman within state government and advise the governor and the legislature of the need for new legislation to improve the effectiveness of state programs to assist businesses.

(5) Aggressively promote business awareness of the state's business programs and distribute information on the services available to businesses.

(6) Develop, in concert with local economic development and business assistance organizations, coordinated processes that complement both state and local activities and services.

(7) The business assistance center shall work with other federal, state, and local agencies and organizations to ensure that business assistance services including small business, trade services, and distressed area programs are provided in a coordinated and cost-effective manner.

(8) Provide technical assistance to minority and women-owned business enterprises in a variety of areas, including, but not limited to, marketing, finance, and management.

(9) In collaboration with the child care coordinating committee in the department of social and health services, prepare and disseminate information on child care options for employers and the existence of the program. As much as possible, and through interagency agreements where necessary, such information should be included in the routine communications to employers from (a) the department of revenue, (b) the department of labor and industries, (c) the department of community development, (d) the employment security department, (e) the department of trade and economic development, (f) the small business development center, and (g) the department of social and health services.

((~~(9)~~)) (10) In collaboration with the child care coordinating committee in the department of social and health services, compile information on and facilitate employer access to individuals, firms, organizations, and agencies that provide technical assistance to employers to enable them to develop and support child care services or facilities.

((~~(10)~~)) (11) Actively seek public and private money to support the child care facility fund described in RCW 43.31.502, staff and assist the child care facility fund committee as described in RCW 43.31.504, and work to promote applications to the committee for loan guarantees, loans, and grants.

Sec. 3. RCW 43.31.055 and 1985 c 466 s 6 are each amended to read as follows:

EXPORT ASSISTANCE. The department shall assist in expanding the state's role as a major international gateway for landing and transshipping goods bound for domestic and foreign markets. The department shall identify and work with Washington businesses which can utilize state assistance to increase domestic and foreign exports and are capable of increasing production of goods and services, including but not limited to manufactured goods, raw materials, services, and retail trade. The department shall participate in trade and industry exhibitions both foreign and domestic to promote and market state products and services. The department's activities shall include, but not be limited to:

(1) Operating an active and vigorous effort to market the state's products and services internationally, coordinated with private and public international trade efforts throughout the state.

(2) Coordinating with the domestic and foreign export market development activities of the state department of agriculture.

(3) Sending delegations to foreign countries and other states to promote trade with Washington.

(4) Acting as a centralized location for the assimilation and distribution of trade information.

(5) Identifying domestic and international markets in which minority and women-owned businesses may have an advantage and providing technical assistance to those minority and women-owned businesses with the capacity to participate in international trade.

NEW SECTION. Sec. 4. STANDARD COURSE OF INSTRUCTION. The business assistance center within the department of trade and economic development shall establish a standard course of instruction available to resident minority and women small business owners and entrepreneurs. The instruction shall be intensive, practical training courses in financing, marketing, managing, accounting, and recordkeeping for a small business, with an emphasis on federal, state, local, or private programs available to assist small businesses. The business assistance center shall appoint professional instructors, with practical knowledge and experience on how to start and operate a business, to teach the courses. Instruction shall be offered in major population centers throughout the state at times and locations which are convenient for minority and women small business owners and entrepreneurs.

NEW SECTION. Sec. 5. CERTIFICATE OF ACCREDITATION. Any small business which is certified as a women's business enterprise or minority business enterprise may select a key management employee or employees to attend any course of instruction established under section 4 of this act. Minority and women residents planning to start businesses are eligible to apply for admission to the courses pursuant to section 6 of this act. When the records, maintained by the business assistance center, indicate that a key management employee of a small business has attended all of the courses offered, and has successfully completed any tests required, the center shall award the course participant a certificate of accreditation which acknowledges successful completion of the courses. The center may also award a certificate of accreditation if a review of a key management employee's education, experience, and business history indicates that the business already possesses the knowledge and skills offered through the course of instruction, or if the key management employee successfully completes all tests required of those who attend the course of instruction.

NEW SECTION. Sec. 6. ENTREPRENEUR ELIGIBILITY. Any resident woman or minority may apply to participate in the standard course of instruction. All applications will be reviewed by the business assistance center. If the center determines that the applicant has sufficient capability to benefit from the instruction and a viable business plan that will likely lead to the establishment of a new business, then the center may admit the applicant.

II. FAIRNESS IN CONTRACTING AND CONCESSIONS

Sec. 7. RCW 39.19.030 and 1989 c 175 s 85 are each amended to read as follows:

PARTICIPATION IN PUBLIC WORKS AND CONSTRUCTION. There is hereby created the office of minority and women's business enterprises. The governor shall appoint a director for the office, subject to confirmation by the senate. The director may employ a deputy director and a confidential secretary, both of which shall be exempt under chapter 41.06 RCW, and such staff as are necessary to carry out the purposes of this chapter.

The office shall consult with the minority and women's business enterprises advisory committee to:

(1) Develop, plan, and implement programs to provide an opportunity for participation by qualified minority and women-owned and controlled businesses in public works and the process by which goods and services are procured by state agencies and educational institutions from the private sector;

(2) Develop a comprehensive plan insuring that qualified minority and women-owned and controlled businesses are provided an opportunity to participate in public contracts for public works and goods and services;

(3) Identify barriers to equal participation by qualified minority and women-owned and controlled businesses in all state agency and educational institution contracts;

(4) Establish annual overall goals for participation by qualified minority and women-owned and controlled businesses for each state agency and educational institution to be administered on a contract-by-contract basis or on a class-of-contracts basis;

(5) Require that each state agency adopt a plan, developed by each agency in consultation with the director and the advisory committee, to insure that minority and women-owned businesses are afforded the maximum practicable opportunity to directly and meaningfully participate in the execution of public contracts for public works and construction. In order to achieve the established participation goals, this plan shall include, but not be limited to, the agency contracting directly with certified minority and women-owned businesses for public works and construction;

(6) Develop and maintain a central minority and women's business enterprise certification list for all state agencies and educational institutions. No business is entitled to certification under this chapter unless it meets the definition of small business concern as established by the office. All applications for certification under this chapter shall be sworn under oath;

((~~(6)~~)) (7) Develop, implement, and operate a system of monitoring compliance with this chapter;

((~~(7)~~)) (8) Adopt rules under chapter 34.05 RCW, the Administrative Procedure Act, governing: (a) Establishment of agency goals; (b) development and maintenance of a central minority and women's business enterprise certification program, including a definition of "small business concern" which shall be consistent with the small business requirements defined under section 3 of the Small Business Act, 15 U.S.C. Sec. 632, and its implementing regulations as guidance; (c) procedures for monitoring and enforcing compliance with goals, regulations, contract provisions, and this chapter; and (d) utilization of standard clauses by state agencies and educational institutions, as specified in RCW 39.19.050;

((~~(8)~~)) (9) Submit an annual report to the governor and the legislature outlining the progress in implementing this chapter;

((~~(9)~~)) (10) Investigate complaints of violations of this chapter with the assistance of the involved agency or educational institution; and

((~~(10)~~)) (11) Cooperate and act jointly or by division of labor with the United States or other states, and with political subdivisions of the state of Washington and their respective minority, socially and economically disadvantaged and women business enterprise programs to carry out the purposes of this chapter. However, the power which may be exercised by the office under this subsection permits investigation and imposition of sanctions only if the investigation relates to a possible violation of chapter 39.19 RCW, and not to violation of local ordinances, rules, regulations, however denominated, adopted by political subdivisions of the state.

NEW SECTION. Sec. 8. PUBLIC FACILITIES CONCESSIONS. All public facilities with concessions shall provide that at least thirty percent of concessions are done by certified minority or women's business enterprises. This section shall apply to all present concession contracts when they are renewed, extended, or renegotiated and to all new concession contracts established after July 1, 1991.

III. LOAN FUND

NEW SECTION. Sec. 9. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 10 through 16 of this act.

(1) "Committee" means the Washington state minority and women-owned businesses loan fund committee.

(2) "Department" means the department of community development.

(3) "Director" means the director of the department of community development.

(4) "Fund" means the Washington state minority and women-owned businesses loan fund.

(5) "Qualified business owner" means any resident owner of a Washington state certified minority business enterprise or women's business enterprise, certified as such by the office of minority and women's business enterprises under chapter 39.19 RCW, who has received a certificate of accreditation from the business assistance center.

(6) "Qualified entrepreneur" means any resident woman or minority who has received a certificate of accreditation from the business assistance center.

NEW SECTION. Sec. 10. COMMITTEE ESTABLISHED. There is established within the department of community development the Washington state minority and women-owned businesses loan fund committee. The committee shall have seven members. The director shall appoint the members, subject to the following requirements:

(1) Three members shall be experienced in investment finance and have skills in providing capital to new and innovative businesses, starting and operating businesses, and providing professional services to small or expanding businesses.

(2) Two members shall represent minority business enterprises.

(3) Two members shall represent women's business enterprises.

(4) Each member appointed by the director shall serve a term of three years, except that of the seven members first appointed, two shall serve two-year terms and two shall serve one-year terms. A person appointed to fill a vacancy shall serve only the unexpired term of the member replaced. A member is eligible for reappointment. A member may be removed by the director only for cause.

(5) The director shall designate a committee member as committee chairperson. The committee may select such other officers as it deems appropriate. Four members of the committee constitute a quorum. Four affirmative votes are necessary for the transaction of business or the exercise of any power or function of the committee.

(6) Committee members serve without compensation, but are entitled to reimbursement for actual and necessary expenses incurred in the performance of official duties in accordance with RCW 43.03.050 and 43.03.060.

(7) Committee members are not liable to the state, to the fund, or to any other person as a result of their activities, whether ministerial or discretionary, except for willful dishonesty or intentional violations of law.

NEW SECTION. Sec. 11. LOAN FUND ESTABLISHED. There is established the Washington state minority and women-owned businesses loan fund. The fund is an account in the state treasury. All loan payments of principal and interest which are transferred under section 13 of this act shall be deposited into the account. Moneys in the account may be spent without legislative appropriation for loans under this chapter. However, any expenditures of these moneys shall conform to federal law. The department shall make available for use by the committee an amount of federal funds equal to the amount of state funds transferred or appropriated to the department for purposes of supplementing the department's federal funds.

NEW SECTION. Sec. 12. LENDING AUTHORITY ESTABLISHED. Subject to the restrictions contained in this chapter, the committee is authorized to approve applications of qualified business owners and qualified entrepreneurs for loans from the fund. Applications approved by the committee under this chapter shall conform to applicable federal requirements.

NEW SECTION. Sec. 13. LIMITATIONS ON LENDING AUTHORITY. (1) The committee shall receive and approve loan applications on a quarterly basis for each fiscal year. Department staff shall process and assist in the preparation of applications. Each application shall show in detail the nature of the business and the purpose intended for the loan. Each application shall include a credit analysis of the business to receive the loan. The committee chairperson may convene the committee on short notice to respond to applications of an immediate nature.

(2) The committee may only approve an application providing a loan to a qualified business owner or qualified entrepreneur that:

(a) Will likely lead to the establishment of a new business or improve an existing business;

(b) Would probably not be completed without the loan because other capital or financing at feasible terms is unavailable or the return on investment is inadequate.

(3) The committee shall not approve any application which would result in a loan in excess of seventy-five thousand dollars without the director's approval. The committee may approve an application which results in a loan of up to one hundred fifty thousand dollars if the application is approved by the director.

(4) The committee shall fix the terms and rates pertaining to its loans.

(5) To the extent permitted under federal law the committee shall require applicants to provide for the transfer of all payments of principal and interest on loans to the fund created under this chapter. Under circumstances where the federal law does not permit the committee to require such transfer, the committee shall give priority to applicants who provide for the transfer.

NEW SECTION. Sec. 14. OVERSIGHT. The committee shall keep performance records on the loans made and the successes of the businesses that receive loans, and the committee shall develop performance standards for judging the effectiveness of its lending practices. The committee shall report to the fiscal committees in the legislature each January.

NEW SECTION. Sec. 15. COMMITTEE SUPPORT. The department shall provide adequate and appropriate staff to the committee. A record of committee proceedings shall be maintained by the department. The department is encouraged to work with local development organizations to promote applications for loans by the fund. The department shall also provide assistance to local development organizations and lending organizations to identify viable projects for consideration by the committee. The department shall adopt such rules as are appropriate for the committee to carry out its authority under this chapter.

NEW SECTION. Sec. 16. ELIGIBILITY FOR LOANS. The committee, with the cooperation of the business assistance center, shall require all loan applicants to be certified as either a qualified business owner or a qualified entrepreneur under the terms of sections 4, 5, and 6 of this act.

IV. BONDING ASSISTANCE

NEW SECTION. Sec. 17. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 18 through 38 of this act.

(1) "Approved surety company" means a surety company approved by the program supervisor for participation in providing direct bonding assistance to qualified contractors.

(2) "Bond" means any bond or security required for bid, payment, or performance of contracts.

(3) "Department" means the department of trade and economic development.

(4) "Program" means the Washington state small business bonding assistance program provided for in this chapter.

(5) "Program supervisor" means the program supervisor of the Washington state small business bonding assistance program, or a person duly authorized by the program supervisor to act on the program supervisor's behalf.

(6) "Qualified contractor" means any resident minority business enterprise or women's business enterprise, certified as such by the office of minority and women's business enterprises under chapter 39.19 RCW and engaged in the contracting business, which has obtained a certificate of accreditation from the Washington state small business bonding assistance program.

NEW SECTION. Sec. 18. PROGRAM ESTABLISHED. There is established within the department of trade and economic development the Washington state small business bonding assistance program. The director of the department shall appoint the program supervisor.

NEW SECTION. Sec. 19. PROGRAM SUPERVISOR'S DUTIES. The program supervisor's primary duty is to assist resident minority and women‑owned small contracting businesses to acquire the managerial and financial skills, standards, and assistance necessary to enable them to obtain bid, payment, and performance bonds from surety companies for either advertised or designated contracts. The program supervisor shall implement the program by establishing a course of instruction as set forth in section 24 of this act. The program supervisor shall encourage surety companies and other private interests to help implement this course of instruction to assist minority and women-owned small contracting businesses.

NEW SECTION. Sec. 20. RULES. The program supervisor shall promulgate rules to implement the program set forth in this chapter. Such rules shall include, but are not limited to, the following:

(1) The standards and procedures for determining the course content and other requirements of the specialized course of instruction provided for in section 24 of this act including the standards to be used to determine whether a certificate of accreditation should be awarded pursuant to section 25 of this act.

(2) The standards to be used to determine whether a qualified contractor has the need, level of capability, and is otherwise eligible for professional services assistance as provided in this chapter.

(3) The standards to be used to determine the amount of compensation which may be deducted by an approved surety company from fees and charges and other amounts paid by a qualified contractor to the company pursuant to a bond issued under section 32 of this act.

(4) The terms and conditions under which the program supervisor may guarantee a bond issued by an approved surety company, including the actions and procedures which are required of the company in the event of a default by the contractor.

NEW SECTION. Sec. 21. OUTSIDE ASSISTANCE. The following departments, offices, and agencies shall, at the request of the program supervisor, provide information, advice, and assistance to the program supervisor:

(1) The department of general administration;

(2) The Washington state business assistance center;

(3) The office of the insurance commissioner;

(4) The Washington state economic development finance authority;

(5) The office of minority and women's business enterprises.

NEW SECTION. Sec. 22. OTHER ASSISTANCE. The program supervisor shall seek information, advice, and assistance from the association of general contractors, regional minority contractor organizations, and the United States small business administration and any other appropriate organization or agency.

NEW SECTION. Sec. 23. ELIGIBILITY FOR BOND GUARANTEES. The program supervisor, with the cooperation of the business assistance center, shall require a contractor to be certified as a qualified contractor under the terms of sections 4, 5, 6, 24, and 25 of this act before a bond guarantee can be issued on the contractor's behalf.

NEW SECTION. Sec. 24. SPECIALIZED INSTRUCTION FOR SMALL CONTRACTING BUSINESSES. The program supervisor shall work with the business assistance center to modify the standard course of instruction established in section 4 of this act in order to provide instruction which is appropriate to the specific needs of contracting businesses. This course of instruction shall be available to resident minority and women small business contractors. The instruction shall be intensive, practical training courses in financing, bidding for contracts, managing, accounting, and recordkeeping for a contracting business, with an emphasis on federal, state, local, or private programs available to assist small contractors. The program supervisor shall assist the business assistance center to appoint professional instructors, with practical knowledge and experience in the field of small business contracting, to teach those courses developed to meet the specific needs of contracting businesses. Instruction shall be offered in major population centers throughout the state at times and locations which are convenient for people in the contracting business.

NEW SECTION. Sec. 25. ACCREDITATION OF SMALL CONTRACTING BUSINESSES. Any resident minority or woman small business contractor may select a key management employee or employees to attend any course of instruction established under section 4 of this act. When the records, maintained by the business assistance center, indicate that a key management employee of a small contracting business has attended all the courses offered, and has successfully completed any tests required, the program supervisor shall award the small contracting business a certificate of accreditation which acknowledges successful completion of the courses. The program supervisor may also award a certificate of accreditation if a review of the key management employee's education, experience, and business history indicates that the business already possesses the knowledge and skills offered through the course of instruction, or if the key management employee successfully completes all tests required of those who attend the standard course of instruction.

NEW SECTION. Sec. 26. PROFESSIONAL SERVICES ASSISTANCE. The program supervisor may provide assistance as described under sections 27 through 30 of this act to qualified contractors. Any qualified contractor seeking a grant for professional services assistance must apply for such assistance.

NEW SECTION. Sec. 27. GRANTS. The program supervisor may provide a grant of up to two thousand five hundred dollars on behalf of a qualified contractor for the acquisition of the professional services of certified public accountants, construction management companies, or any other technical, surety, financial, or managerial professionals. Such professionals may assess or audit the operations, finances, bookkeeping, and recordkeeping of the qualified contractor and make recommendations, prepare statements and reports, and consult with and train the qualified contractor's personnel in order to assist the qualified contractor to obtain a bond for a particular contract and, over time, enhance the competitiveness and self-sufficiency of the qualified contractor. This assistance is only available to a qualified contractor on a one-time basis.

NEW SECTION. Sec. 28. INITIAL EVALUATION. Based upon standards established by the program supervisor, an initial evaluation of a qualified contractor's application for professional services assistance shall be performed by a program representative to determine whether the applicant is eligible to receive a grant and whether the applicant has sufficient capability to benefit from the grant, the level of such capability, and the applicant's corresponding need for the types of assistance provided for in section 27 of this act. After the initial evaluation, applications shall be forwarded to the program supervisor together with an initial evaluation statement.

NEW SECTION. Sec. 29. APPLICATION APPROVAL. If the program supervisor determines that an applicant is a qualified contractor that could benefit from professional services assistance the program supervisor shall approve the application. If the application is approved, the program supervisor has the authority to enter into an agreement with the qualified contractor. Under the terms of this agreement the qualified contractor shall abide by the program rules and fully cooperate and comply with the advice and recommendations of the program supervisor and any professionals rendering service pursuant to section 27 of this act. The qualified contractor also agrees that a failure to cooperate, comply, or abide by the rules may result in the loss of services and the program supervisor's demand for reimbursement of the grant. Upon agreement to these conditions by the qualified contractor, the program supervisor shall provide a grant in an amount deemed sufficient by the program supervisor to meet the needs of the qualified contractor, but in no case may any single contractor receive more than two thousand five hundred dollars in grant-related services from the program.

NEW SECTION. Sec. 30. GRANT MONITORING. The program supervisor shall administer all grants issued to assist qualified contractors and shall monitor the performance of all grant recipients in order to provide such further assistance as is necessary to insure that all program requirements are met and that the program's purpose is fulfilled. However, nothing in this chapter should be construed to restrict the rendering of program services to any qualified contractor over and above the services provided by the grant.

NEW SECTION. Sec. 31. BOND GUARANTEE APPLICATIONS. If a qualified contractor makes a bond application to an approved surety company for a public or private contracting job, but fails to obtain the bond because the contractor is unable to meet the requirements of the surety company on such bonding contracts, for reasons other than nonperformance, and if the approved surety company applies to the program supervisor to have the bond confected and issued by the program, then the program supervisor may provide a bond guarantee of up to seventy-five thousand dollars on behalf of the qualified contractor.

NEW SECTION. Sec. 32. BOND GUARANTEE APPROVAL. Upon receipt of an approved surety company's application for a bond guarantee, the program supervisor shall review the application in order to verify that:

(1) The bond being sought by the qualified contractor is needed;

(2) The contracting job is within the qualified contractor's capability to perform; and

(3) The qualified contractor has not been denied a bond due to nonperformance.

Based upon subsections (1) through (3) of this section, the program supervisor shall either approve or disapprove the application. If the application is approved, the program supervisor has the authority to enter into a contract with the approved surety company. Under the terms of this contract the approved surety company shall enter into a contract with, and issue the required bond to, the qualified contractor at the standard fees and charges usually made by the company for the type and amount of the bond issued. The bond issued by the approved surety company shall be guaranteed by money in the program fund. In return, the approved surety company agrees to promptly remit to the program supervisor all fees, charges, or other amounts collected by the company from the qualified contractor, except for the standard fees and charges the program supervisor has agreed the company may retain. The approved surety company also agrees to make a reasonable, good-faith effort to pursue and collect any claims it may have against a qualified contractor who defaults on a bond guaranteed by the program, including, but not limited to, the institution of legal proceedings against the defaulting contractor, prior to collecting on the guarantee.

NEW SECTION. Sec. 33. FUNDING. The funds used to provide professional services grants, guarantee bonds, and to pay defaulted bonds pursuant to sections 26 through 32 of this act shall be all the money in the program fund not otherwise expended, encumbered, or allocated for the purposes provided in this chapter. However, the full faith and credit of the state of Washington shall not be used to secure the bonds and the state's liability shall be limited to the money appropriated by the legislature.

NEW SECTION. Sec. 34. PROGRAM FUND ESTABLISHED. The Washington state small business bonding assistance program fund is created as a special fund in the state treasury. Any amounts appropriated, donated, or granted to the program shall be deposited and credited to the program fund established in this section. All fees, charges, or other amounts collected by the program supervisor from the issuance of bond guarantees as provided in section 32 of this act shall be deposited immediately upon receipt into the program fund. The money in the fund shall be appropriated by the legislature to be used solely as provided for in this chapter.

NEW SECTION. Sec. 35. FUND SUPPORT. The program supervisor shall solicit funds and support from surety companies and other public and private entities with an interest in assisting Washington's small business contractors and may enter into agreements with such companies and interests by which they provide funds to the program fund to be matched with funds from nonstate sources.

NEW SECTION. Sec. 36. MATCHING FUNDS. Prior to the money being placed in the state general fund, an amount equal to money received by the program supervisor from surety companies as payment on performance bonds guaranteed by the program pursuant to section 32 of this act shall be credited to the program fund established in this chapter.

NEW SECTION. Sec. 37. UNEXPENDED FUNDS. All unexpended and unencumbered money in the program fund at the end of the fiscal year shall remain in the program fund. The money in the program fund shall be invested by the state treasurer in the same manner as money in the state general fund and interest earned on the investment of the money shall be credited to the program fund.

NEW SECTION. Sec. 38. FUND USE RESTRICTIONS. The money in the program fund shall only be used as follows:

(1) To pay the salary and related benefits of the program supervisor provided for in this chapter.

(2) To be disbursed by the program supervisor to enable qualified contractors to obtain services provided for in this chapter.

(3) To guarantee bonds issued pursuant to sections 31 and 32 of this act and to pay such bonds in the event of default by a qualified contractor.

V. MISCELLANEOUS

NEW SECTION. Sec. 39. CAPTIONS NOT LAW. Section headings as used in this act do not constitute part of the law.

NEW SECTION. Sec. 40. This chapter may be known and cited as the omnibus minority and women-owned businesses assistance act.

NEW SECTION. Sec. 41. Sections 1, 4 through 6, and 8 through 40 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 42. The sum of ......... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the Washington state small business bonding assistance program fund for the purposes of this act.

NEW SECTION. Sec. 43. The sum of five million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the Washington state minority and women‑owned businesses loan fund for the purposes of this act.

NEW SECTION. Sec. 44. The sum of .......... dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1993, from the general fund to the department of trade and economic development for the purposes of this act.