3360 AMH KELL MITC 229
HB 3360 - H AMD 1260
By Representative Kelley
ADOPTED 2/18/2008
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 43.60A.190 and 2007 c 11 s 1 are each amended
to read as follows:
(1) The department shall:
(a) Develop and maintain a current list of veteran-owned
businesses; and
(b) Make the list available on the department's public web
site.
(2) ((In order)) To qualify as a veteran-owned business, the business must be at least fifty-one percent owned and controlled by:
(a) A veteran as defined in RCW 41.04.007; or
(b) An active or reserve member in any branch of the armed
forces of the United States, including the national guard, coast
guard, and armed forces reserves.
(3) To participate in the linked deposit program under
chapter 43.86A RCW, a veteran-owned business qualified under this
section must be certified by the department as a business:
(a) In which the veteran owner possesses and exercises
sufficient expertise specifically in the business's field of
operation to make decisions governing the long-term direction and
the day-to-day operations of the business;
(b) That is organized for profit and performing a
commercially useful function; and
(c) That meets the criteria for a small business concern as
established under chapter 39.19 RCW.
(4) The department shall create a logo for the purpose of
identifying veteran-owned businesses to the public. The
department shall put the logo on an adhesive sticker or decal
suitable for display in a business window and distribute the
stickers or decals to veteran-owned businesses listed with the
department.
(((4))) (5)(a) Businesses may submit an application on a form
prescribed by the department for inclusion on the list or to
apply for certification under this section.
(b) The department must notify the state treasurer of
veteran-owned businesses that are no longer certified under this
section. The written notification to the state treasurer must
contain information regarding the reasons for the decertification
and information on financing provided to the veteran-owned
business under RCW 43.86A.060.
(((5))) (6) The department may adopt rules necessary to
implement this section.
Sec. 2. RCW 43.86A.030 and 2007 c 500 s 1 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) Of all funds available under this section, the state
treasurer may use up to ((one hundred fifty)) two hundred million
dollars per year ((of all funds available under this section))
for the purposes of RCW 43.86A.060(2)(c)(i) and up to twenty-five
million dollars per year for the purposes of RCW
43.86A.060(2)(c)(ii). The amounts made available to these public
depositaries shall be equal to the amounts of outstanding loans
made under RCW 43.86A.060.
(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.
Sec. 3. RCW 43.86A.060 and 2007 c 500 s 2 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)(i) That are made to a minority or women's business
enterprise that has received state certification under chapter
39.19 RCW; or
(ii) That are made to a veteran-owned business that has
received state certification under RCW 43.60A.190;
(d) Where the interest rate on the loan to the minority or
women's business enterprise or veteran-owned business 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
(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 or that a veteran-owned business is no longer
certified under RCW 43.60A.190, 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 or the veteran-owned business, as
applicable.
(5) The office of minority and women's business enterprises
has the authority to adopt rules to:
(a) Ensure that when making a qualified loan under the
linked deposit program, businesses that have never received a
loan under the linked deposit program are given first priority;
(b) Limit the total principal loan amount that any one
business receives in qualified loans under the linked deposit
program over the lifetime of the businesses;
(c) Limit the total principal loan amount that an owner of
one or more businesses receives in qualified loans under the
linked deposit program during the owner's lifetime; and
(d) Limit the total amount of any one qualified loan made
under the linked deposit program.
NEW SECTION. Sec. 4. The department of veterans affairs shall report to the governor and appropriate committees of the legislature by December 1, 2008, on the progress made in implementing this act."
Correct the title.
EFFECT: In addition to the $50 million dollars in the underlying bill for loans to minority or women's businesses, up to an additional $25 million dollars may be used for loans to veteran-owned businesses. To participate in the Program, a veteran-owned business must be certified by the Department of Veterans Affairs. The DVA must notify the Treasurer if a veteran-owned business is no longer certified under this section. The DVA must report on the progress and implementation of the act to the Governor and to the appropriate committees of the Legislature.