BILL REQ. #: S-2376.1
| State of Washington | 59th Legislature | 2005 Regular Session |
READ FIRST TIME 03/08/05.
AN ACT Relating to the linked deposit program; amending RCW 43.86A.060, 39.19.240, and 43.63A.690; adding a new section to chapter 43.86A RCW; creating a new section; and repealing RCW 43.131.381 and 43.131.382.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature intends that funds provided
under the linked deposit program shall be used to create jobs and
economic opportunity as well as to remedy the problem of a lack of
access to capital by minority and women's business enterprises.
Sec. 2 RCW 43.86A.060 and 2002 c 305 s 1 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:
(a) Having terms that do not exceed ten years;
(b) Where an individual loan does not exceed one million dollars;
(c) That are made to a minority or women's business enterprise that
has received state certification under chapter 39.19 RCW;
(((c))) (d) 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, except that, if the preference given by the state treasurer to
the qualified public depositary under subsection (3) of this section is
less than two hundred basis points, the qualified public depositary may
reduce the preference given on the loan by an amount that corresponds
to the reduction in preference below two hundred basis points given to
the qualified public depositary; and
(((d))) (e) 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, except
that the treasurer shall lower the amount of the preference to ensure
that the effective interest rate on the time certificate of deposit is
not less than two percent.
(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.
NEW SECTION. Sec. 3 A new section is added to chapter 43.86A RCW
to read as follows:
Public depositories participating in the linked deposit program are
encouraged to increase the funds available to certified minority and
women's business enterprises by taking full advantage of the linked
deposit program loans to qualify for the community reinvestment act
community programs under federal law (12 U.S.C. Sec. 2901 et seq.).
Sec. 4 RCW 39.19.240 and 2002 c 305 s 2 are each amended 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.
(3) The office shall, in consultation with the state treasurer and
the department of community, trade, and economic development, monitor
the performance of loans made to minority and women-owned business
enterprises under RCW 43.86A.060.
Sec. 5 RCW 43.63A.690 and 2002 c 305 s 3 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 enterprises,
monitor the performance of loans made to minority and women-owned
business enterprises under RCW 43.86A.060.)) The department, in consultation with the office of minority
and women's business enterprises, 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.
(3)
NEW SECTION. Sec. 6 The following acts or parts of acts are each
repealed:
(1) RCW 43.131.381 (Linked deposit program -- Termination) and 2002
c 305 s 4, 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 2002 c 305
s 5, 2001 c 316 s 2, 1994 c 126 s 3, & 1993 c 512 s 36.