AN
ACT Relating to the time certificate of deposit investment program; amending
RCW 43.131.381, 43.131.382, 43.86A.060, and 43.63A.690; and declaring an
emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
43.131.381 and 1994 c 126 s 2 are each amended to read as follows:
The
linked deposit program shall be terminated on June 30, ((2000)) 2003,
as provided in RCW 43.131.382.
Sec.
2. RCW
43.131.382 and 1994 c 126 s 3 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repealed, effective June 30, ((2001)) 2004:
(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.
*Sec.
3.
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 terms that do not exceed ten years;
(b)
Are made to a ((minority or women's)) socially and economically
disadvantaged business enterprise that has received state certification
under chapter 39.19 RCW;
(c)
Are made to ((minority or women's)) socially and economically
disadvantaged 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))
socially and economically disadvantaged 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 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)
For purposes of this section, "socially and economically disadvantaged
business enterprise" means any small business concern where at least
fifty-one percent is unconditionally owned by one or more socially or
economically disadvantaged individuals.
(a)
"Socially disadvantaged individuals" are those who have been
subjected to racial or ethnic prejudice or cultural bias because of their
identity as a member of a group without regard to their individual qualities.
(b)
"Economically disadvantaged individuals" are those individuals,
including first-time small business owners that are under the age of
twenty-five, whose ability to compete in the free enterprise system has been
impaired due to diminished capital and credit opportunities as compared to
others in the same business area.
*Sec. 3 was vetoed. See message at end of chapter.
*Sec.
4.
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)) socially and economically
disadvantaged 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, monitor the
performance of loans made to ((minority and women-owned)) socially
and economically disadvantaged business enterprises under RCW 43.86A.060.
*Sec. 4 was vetoed. See message at end of chapter.
NEW
SECTION. Sec. 5. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect immediately.
Note:
Governor's explanation of partial veto is as follows:
"I
am returning herewith, without my approval as to sections 3 and 4, Second
Substitute House Bill No. 1445 entitled:
"AN
ACT Relating to the time certificate of deposit investment program;"
Second Substitute House
Bill No. 1445 continues the state's Linked Deposit Program, under which
low-interest loans are made available for women and minority-owned businesses
beyond its June 30, 2001 sunset date. This is an important program that aids
in the creation and expansion of many businesses. Additionally, the program
has spurred economic development in distressed areas of our state.
Section 3 of the bill was
an amendment to the original bill and would have directed the program to
socially and economically disadvantaged business enterprises, deleting all references
to women or minority-owned businesses. As such, several legislators who
supported the bill believe section 3 would have significantly diluted the
Linked Deposit Program, making it inconsistent with the original legislative
intent.
Section 4 also references
socially and economically disadvantaged business enterprises, and it would
create confusion if section 3 were vetoed alone.
For these reasons, I have
vetoed sections 3 and 4 of Second Substitute House Bill No. 1445.
With
the exception of sections 3 and 4, Second Substitute House Bill No. 1445 is
approved."
