AN
ACT Relating to the linked deposit program; 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.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
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;
(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.
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.
