AN ACT Relating to the
time certificate of deposit investment program; amending RCW 43.131.381, 43.131.382,
43.86A.060, and 43.63A.690; 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parts of acts, as now existing or hereafter amended, are each repealed,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.
(4) For purposes of
this section, "socially and economically disadvantaged business
enterprise" means any small business concern where at least fifty-one
percent is unconditionally owned by one or more socially or economically
disadvantaged individuals.
(a) "Socially
disadvantaged individuals" are those who have been subjected to racial or
ethnic prejudice or cultural bias because of their identity as a member of a
group without regard to their individual qualities.
(b)
"Economically disadvantaged individuals" are those individuals,
including first-time small business owners that are under the age of
twenty-five, whose ability to compete in the free enterprise system has been
impaired due to diminished capital and credit opportunities as compared to
others in the same business area.
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)) socially and economically disadvantaged 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, monitor the performance of
loans made to ((minority and women-owned)) socially and economically
disadvantaged business enterprises under RCW 43.86A.060.
NEW
SECTION. Sec. 5. 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.
