BILL REQ. #:  H-0035.6 

Read first time 02/12/2003.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to linked deposit loans for assistive technology; amending RCW 43.86A.030; and adding a new chapter to Title 43 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   (1) The legislature finds that providing access to appropriate assistive technology for children and adults with disabilities, including seniors with age-related conditions such as vision and hearing loss, is a matter of public interest. Access to such technology can play a vital role in achieving high quality of life. Investments in assistive technology also are cost-effective because they reduce the risk of secondary injuries, make it possible for people to live at home rather than in long-term care, and provide a foundation for success in education and employment, thereby reducing the high rates of unemployment and poverty experienced by Washington residents with disabilities.
     (2) The legislature also finds that current public and private funding sources are inadequate, or not suited, to meet the assistive technology needs of many sectors of the population and that it is necessary for the state to establish a program to create alternative financing arrangements to help individuals with disabilities acquire the assistive technology they need to achieve their potential in education, employment, independent living, transportation, recreation, and community life. Access to such technology can play a vital role in achieving high quality of life.
     (3) The legislature further finds that many small businesses and nonprofit organizations do not have the financial resources they need to make their places of business and business activities accessible to and usable by clients and employees with disabilities. Many small businesses and nonprofit entities also lack the financing they need to acquire the assistive devices and services that enable them to hire and retain employees with disabilities. Low interest loans and other alternative financing arrangements are needed to help small businesses, nonprofits, and other qualified entities purchase the assistive devices and services and make the program and building access modifications needed to fully include individuals with disabilities.

NEW SECTION.  Sec. 2   The disabilities access linked deposit lending program is created. The program will be administered by the department of community, trade, and economic development. The director shall contract with other public and private entities and undertake all other activities necessary to carry out the purposes of this chapter.

NEW SECTION.  Sec. 3   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Access modifications" means modifications to facilities, programs, and buildings, including residential and nonresidential buildings, to improve access and use by individuals with disabilities.
     (2) "Assistive technology" means any item, piece of equipment, or device that enables an individual with a disability to improve his or her functional capabilities, independence, or quality of life, and any service that directly assists an individual with a disability in the selection, acquisition, or use of an assistive technology device.
     (3) "Individual with a disability" means an individual with a physical, mental, or sensory disability within the meaning of chapter 49.60 RCW.
     (4) "Qualifying borrowers" means nonprofit community development financial institutions that provide low interest loans for purchases of assistive technology and access modifications.

NEW SECTION.  Sec. 4   (1) Funds made available under this chapter may be used to make low interest loans to, and equity equivalent investments in, community development financial institutions that provide financing and related services for purchases of assistive technology and access modifications. As used in this chapter, qualifying loans are loans that:
     (a) Have terms that do not exceed ten years;
     (b) Are made to qualified borrowers;
     (c) Are made where the interest rate on the loan to the qualified borrower 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
     (d) Are made where the points or fees charged at loan closing do not exceed one percent of the loan amount.
     (2) In setting interest rates of time certificates of deposits, the state treasurer shall offer rates so that a two hundred basis point preference will be given to the qualified public depositary. In no case shall the state treasurer give a preference where the effective interest rates on the time certificates of deposits are less than two percent.

NEW SECTION.  Sec. 5   The state treasurer shall establish a linked deposit program for investment of deposits into qualified public depositaries. As a condition of participating in the program, qualified public depositaries must make qualifying loans as provided in section 4 of this act. 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.

Sec. 6   RCW 43.86A.030 and 1993 c 512 s 33 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) The state treasurer may use up to fifty million dollars per year of all funds available under this section for the purposes of RCW 43.86A.060 and up to two million five hundred thousand dollars per year of all funds available under this section for the purposes of chapter 43.-- RCW (sections 1 through 5 and 7 of this act). The amounts made available to these public depositaries shall be equal to the amounts of outstanding loans made under RCW 43.86A.060 and chapter 43.-- RCW (sections 1 through 5 and 7 of this act).
     (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.

NEW SECTION.  Sec. 7   The state and those acting as its agents are not liable in any manner for payment of the principal or interest on qualifying loans made under this chapter. Any delay in payments or defaults on the part of the borrower does not in any manner affect the deposit agreement between the qualified public depositary and the state treasurer.

NEW SECTION.  Sec. 8   Sections 1 through 5 and 7 of this act constitute a new chapter in Title 43 RCW.