|Passed by the House April 20, 2009|
Speaker of the House of Representatives
Passed by the Senate April 2, 2009
President of the Senate
I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1166 as passed by the House of Representatives and the Senate on the dates hereon set forth.
Governor of the State of Washington
Secretary of State
State of Washington
|State of Washington||61st Legislature||2009 Regular Session|
Read first time 01/14/09. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to allowing loans to community development financial institutions under the linked deposit program; and amending RCW 43.86A.060 and 43.86A.030.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 43.86A.060 and 2008 c 187 s 3 are each amended to read
(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; ((
(ii) That are made to a veteran-owned business that has received state certification under RCW 43.60A.190; or
(iii) That are made to a community development financial institution that is: (A) Certified by the United States department of the treasury pursuant to 12 U.S.C. Sec. 4701 et seq.; and (B) using that loan to make qualifying loans under (c)(i) of this subsection;
(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; ((
(d) Limit the total amount of any one qualified loan made under the linked deposit program; and
(e) Ensure that loans made by community development financial institutions are qualifying loans under subsection (2)(c)(i) of this section.
Sec. 2 RCW 43.86A.030 and 2008 c 187 s 2 are each amended to read
(1) Funds held in public depositaries not as demand deposits, as provided in RCW 43.86A.020 and ((
43.86A.030)) this section, 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) Of all funds available under this section, the state treasurer may use up to one hundred seventy-five million dollars per year for the purposes of RCW 43.86A.060(2)(c) (i) and (iii) and up to fifteen 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.