2456-S AMS LCF S4555.1

2456-S AMS LCF S4555.1

SHB 2456 - S COMM AMD

By Committee on Labor, Commerce & Financial Institutions

ADOPTED 03/07/02

Strike everything after the enacting clause and insert the following:

"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 ((~~that~~)):

(a) ((~~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;

(c) ((~~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; 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.

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;

(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 enterprises, 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 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.

Sec. 4. RCW 43.131.381 and 2001 c 316 s 1 are each amended to read as follows:

The linked deposit program shall be terminated on June 30, ((~~2003~~)) 2008, as provided in RCW 43.131.382.

Sec. 5. RCW 43.131.382 and 2001 c 316 s 2 are each amended to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, ((~~2004~~)) 2009:

(1) RCW 43.86A.060 and 1993 c 512 s 30;

(2) RCW 43.63A.690 and 1993 c 512 s 31; ((~~and~~))

(3) RCW 43.86A.070 and 1993 c 512 s 34; and

(4) Section 2 of this act."

SHB 2456 - S COMM AMD

By Committee on Labor, Commerce & Financial Institutions

ADOPTED 03/07/02

On page 1, line 1 of the title, after "program;" strike the remainder of the title and insert "amending RCW 43.86A.060, 43.63A.690, 43.131.381, and 43.131.382; and adding a new section to chapter 39.19 RCW."