[atlas:bill]

AN ACT Relating to community development financial institutions; amending RCW 43.86A.030; and adding new sections to chapter 43.86A RCW.

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)(a) The state treasurer may use up to fifty 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.

(b) The state treasurer may use up to twenty-five million dollars per year of all funds available under this section for the purposes of section 2 of this act.

(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.

NEW SECTION. Sec. 2. A new section is added to chapter 43.86A RCW to read as follows:

(1) The state treasurer shall deposit the funds available under RCW 43.86A.030(2)(b) in qualified public depositaries at market interest rates. The qualified public depositary shall remit two hundred basis points of interest on each deposit to entities that have:

(a) Received or administered funding during the previous two years for business loans from one of the following federal sources: (i) Department of housing and urban development under 42 U.S.C. Sec. 3535(d) and 5300-5320 et seq.; (ii) small business administration under 15 U.S.C. Sec. 633 et seq.; (iii) economic development administration under 42 U.S.C. Sec. 3243; (iv) department of agriculture under 7 U.S.C. Sec. 1932 and 1989; and (v) the treasury department through the community development financial institution fund under 12 U.S.C. Sec. 4701 et seq.;

(b) Been in continuous operation or administers a loan fund which has been in continuous operation for a minimum of three years;

(d) No more than fifty percent of operational funding from a single source.

The public depositary shall pay the remainder of the interest on each deposit to the state treasurer. As a condition of receiving the remittance of two hundred basis points of interest, the entity receiving the remittance must make qualifying loans as provided in this section.

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

(a) Have terms that do not exceed five years;

(b) Are made to business enterprises that are owned by persons qualified as low-income households under RCW 43.185A.010;

(d) Are for a principal amount not exceeding one hundred fifty thousand dollars.

(3) In addition to making loans under subsection (2) of this section, the entity receiving the remittance may use the remittance for technical assistance.

(4) The remittance of two hundred basis points of interest on each deposit must be approved by the department of community, trade, and economic development as being made to qualifying entities eligible to participate in this program. The qualifying public depositary providing the remittance has no obligation to the qualifying entity, legal or otherwise, other than providing the remittance.

(5) Participation of a qualified public depositary in this program contributes toward meeting the credit needs of the communities it serves as set forth under chapter 30.60 RCW for state banks, chapter 32.40 RCW for state savings banks, and the federal community reinvestment act of 1977 for federal savings banks, federal savings and loan associations, and national banks.

(6) In setting interest rates for funds deposited under this program, the state treasurer shall offer rates that are commensurate with other similar deposits made by the treasurer.

NEW SECTION. Sec. 3. A new section is added to chapter 43.86A RCW to read as follows:

The qualifying entities, as defined in section 2 of this act, shall compile information on loans made to business enterprises under section 2 of this act. The information shall include, but is not limited to:

(1) Name of the business enterprise;

(2) Geographic location of the business enterprise;

(3) Type of business;

(4) Total number and amount of loans requested by business enterprises;

(5) Amount and term of the loan made to the business enterprise;

(6) Amount of the funds under section 2 of this act that are used for technical assistance by the qualifying entity; and

(7) Other information the state treasurer, in consultation with the department of community, trade, and economic development deems necessary for the implementation of this section.