H-2133.1  _______________________________________________

 

                    SUBSTITUTE HOUSE BILL 1445

          _______________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Kessler, Lambert, Ogden, Edmonds, Kagi, Dickerson, Jackley, Fromhold, Keiser, Veloria, Miloscia, Cody and McDermott; by request of State Treasurer)

 

Read first time 02/27/2001.  Referred to Committee on .

Retaining the linked deposit program.


    AN ACT Relating to the time certificate of deposit investment program; amending RCW 43.131.381, 43.131.382, and 43.86A.060; and declaring an emergency.

 

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

 

    Sec. 1.  RCW 43.131.381 and 1994 c 126 s 2 are each amended to read as follows:

    The linked deposit program shall be terminated on June 30, ((2000)) 2003, as provided in RCW 43.131.382.

 

    Sec. 2.  RCW 43.131.382 and 1994 c 126 s 3 are each amended to read as follows:

    The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, ((2001)) 2004:

    (1) RCW 43.86A.060 and 1993 c 512 s 30;

    (2) RCW 43.63A.690 and 1993 c 512 s 31; and

    (3) RCW 43.86A.070 and 1993 c 512 s 34.

 

    Sec. 3.  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 terms that do not exceed ten years;

    (b) Are made to a ((minority or women's)) socially and economically disadvantaged business enterprise that has received state certification under chapter 39.19 RCW;

    (c) Are made to ((minority or women's)) socially and economically disadvantaged 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)) socially and economically disadvantaged 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; 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.

 

    NEW SECTION.  Sec. 4.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

 


                            --- END ---