S-4498

AN ACT Relating to the linked deposit program; amending RCW 43.86A.030, 43.86A.060, and 43.63A.690; adding a new section to chapter 39.19 RCW; repealing RCW 43.131.381, 43.131.382, 43.63A.690, and 43.86A.060; and providing an effective date.

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

Sec. 1. RCW 43.86A.030 and 1993 c 512 s 33 are each amended to read as follows:

(1) 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.

(2) The state treasurer may use up to ((~~fifty~~)) seventy-five million dollars per year of all funds available under this section for the purposes of RCW 43.86A.060. The amounts made available to these public depositaries shall be equal to the amounts of outstanding loans made under RCW 43.86A.060.

(3) 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. However, 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.

Sec. 2. RCW 43.86A.060 and 1993 c 512 s 30 are each amended to read as follows:

(1) The state treasurer shall establish a linked deposit program for investment of deposits in qualified public depositaries. As a condition of participating in the program, qualified public depositaries must make qualifying loans as provided in this section. The state treasurer may purchase a certificate of deposit that is equal to the amount of the qualifying loan made by the qualified public depositary or may purchase a certificate of deposit that is equal to the aggregate amount of two or more qualifying loans made by one or more qualified public depositaries.

(2) Qualifying loans made under this section are those ((~~that~~)):

(a) ((~~Are loans that have~~)) Having terms that do not exceed ten years;

(b) Where the total amount of the loan or loans per minority or women's business enterprise does not exceed seven hundred fifty thousand dollars, unless the loan application states that the purpose of the loan is to start, enlarge, maintain, or otherwise enhance a construction business, in which case the total amount of a qualifying loan or loans per minority or women's business enterprise may not exceed one million dollars. For the purpose of this subsection, "construction business" means any person, firm, or corporation who or which undertakes, or offers to undertake, or submits a bid to construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish, for another, any building, highway, road, railroad, excavation, or other structure, project, development, or improvement to real property, or to do any part thereof; or who, to do similar work upon his or her own property, employs members of one or more building trade on a single project or under a single building permit;

((~~Are~~)) (c) Made to a minority or women's business enterprise that has received state certification under chapter 39.19 RCW;

((~~(c) Are made to minority or women's business enterprises that are considered a small business as defined in RCW 43.31.025;~~))

(d) ((~~Are made~~)) Where the interest rate on the loan to the minority or women's business enterprise does not exceed ((~~an interest rate that is two hundred basis points below the interest rate~~)) the qualified public ((~~depositary would charge for a loan for a similar purpose and a similar term~~)) depositary's prime interest rate; and

(e) ((~~Are made~~)) Where the points or fees charged at loan closing do not exceed one percent of the loan amount.

(3) In setting interest rates of time certificate of deposits, the state treasurer shall offer rates so that a two hundred basis point preference will be given to the qualified public depositary.

(4) Upon notification by the state treasurer that a minority or women's business enterprise is no longer certified under chapter 39.19 RCW, the qualified public depositary shall reduce the amount of qualifying loans by the outstanding balance of the loan made under this section to the minority or women's business enterprise.

(5) As used in this section, "prime interest rate" means the interest rate that a qualified public depositary charges to its lowest credit risk commercial customer.

NEW SECTION. Sec. 3. A new section is added to chapter 39.19 RCW to read as follows:

(1) The office shall, in consultation with the state treasurer and the department of community, trade, and economic development, compile information on minority and women's business enterprises that have requested financial assistance through a qualified public depositary under the provisions of RCW 43.86A.060. The information shall include, but is not limited to:

(a) Name of the qualified public depositary;

(b) Geographic location of the minority or women's business enterprise;

(d) Date of last certification by the office and certification number;

(e) Type of business;

(f) Race and ownership status of the minority or women's business enterprise;

(g) Amount and term of the loan to the minority or women's business enterprise; and

(h) Other information the office deems necessary for the implementation of this section.

(2) The office shall notify the state treasurer of minority or women's business enterprises that are no longer certified under the provisions of this chapter. The written notification shall contain information regarding the reason for the decertification and information on financing provided to the minority or women's business enterprise under RCW 43.86A.060.

Sec. 4. RCW 43.63A.690 and 1993 c 512 s 31 are each amended to read as follows:

(1) The department shall provide technical assistance and loan packaging services that enable minority and women-owned business enterprises to obtain financing under the linked deposit program created under RCW 43.86A.060.

(2) The department shall, in consultation with the state treasurer and office of minority and women's business enterprise, monitor the performance of loans made to minority and women-owned business enterprises under RCW 43.86A.060.

(3) The department, in consultation with the office of minority and women's business enterprise, shall develop indicators to measure the performance of the linked deposit program in the areas of job creation or retention and providing access to capital to minority or women's business enterprises. By November 1, 2003, the department shall report to the appropriate committees of the legislature on the performance of the linked deposit program in creating and retaining employment and improving access to capital.

NEW SECTION. Sec. 5. The following acts or parts of acts are each repealed:

(1) RCW 43.131.381 (Linked deposit program--Termination) and 1994 c 126 s 2 & 1993 c 512 s 35; and

(2) RCW 43.131.382 (Linked deposit program--Repeal) and 1994 c 126 s 3 & 1993 c 512 s 36.

NEW SECTION. Sec. 6. The following acts or parts of acts are each repealed, effective June 30, 2004:

(1) RCW 43.63A.690 (Minority and women-owned business enterprises--Linked deposit program) and 2000 c ... s 4 (section 4 of this act) & 1993 c 512 s 31;

(2) RCW 43.86A.060 (Linked deposit program--Minority and women's business enterprises) and 2000 c ... s 2 (section 2 of this act) & 1993 c 512 s 30; and

(3) RCW 39.19.--- and 2000 c ... s 3 (section 3 of this act).