SENATE BILL 6388
State of Washington 57th Legislature 2002 Regular Session
By Senators Prentice, Franklin, Regala, Kline, Keiser and Gardner; by request of Department of Trade and Economic Development
Read first time 01/16/2002. Referred to Committee on Labor, Commerce & Financial Institutions.
AN ACT Relating to the linked deposit program; amending RCW 43.86A.060 and 43.63A.690; adding a new section to chapter 39.19 RCW; and repealing RCW 43.131.381 and 43.131.382.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. 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 ((
Are loans that
have)) Having terms that do not exceed ten years;
(b) That are made to a minority or women's business enterprise that has received state certification under chapter 39.19 RCW;
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))
(d) 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. 2. 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 received 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;
(c) Name of the minority or women's business enterprise;
(d) Date of last certification by the office and certification number;
(e) Type of business;
(f) Amount and term of the loan to the minority or women's business enterprise; and
(g) 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. 3. 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.
NEW SECTION. Sec. 4. The following acts or parts of acts are each repealed:
(1) RCW 43.131.381 (Linked deposit program--Termination) and 2001 c 316 s 1, 1994 c 126 s 2, & 1993 c 512 s 35; and
(2) RCW 43.131.382 (Linked deposit program--Repeal) and 2001 c 316 s 2, 1994 c 126 s 3, & 1993 c 512 s 36.
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