WSR 07-17-184

PROPOSED RULES

OFFICE OF MINORITY AND

WOMEN'S BUSINESS ENTERPRISES

[ Filed August 22, 2007, 11:58 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 07-14-153.

Title of Rule and Other Identifying Information: Linked deposit program implementation. A new chapter is added to TITLE 326 WAC and chapters 326-02 and 326-20 WAC are amended.

Hearing Location(s): Office of Minority and Women's Business Enterprises, 406 South Water Street, Olympia, WA, on September 25, 2007, at 6:00 p.m. - 8:00 p.m.; and at the United States Small Business Administration, 801 West Riverside Avenue, Spokane, WA, on September 27, 2007, at 2:00 p.m. - 4:00 p.m. The public is also invited to attend information sessions to be scheduled in Olympia, Tacoma, Seattle, Federal Way, Bellevue, Mt. Vernon, Bellingham, Yakima, Spokane, Pasco, and Vancouver. Please contact OWMBE's rules coordinator or check OMWBE's web site (www.omwbe.wa.gov) for specific dates, times, and locations.

Date of Intended Adoption: October 23, 2007.

Submit Written Comments to: Juan Huey-Ray, 406 South Water Street, Olympia, WA 98504, e-mail jhuey-ray@omwbe.wa.gov, fax (360) 586-7079, by September 27, 2007.

Assistance for Persons with Disabilities: Contact Tammi Hazlitt by September 11, 2007, (360) 753-9691.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of the program is to facilitate access to capital for minority and women's business enterprises certified under chapter 39.19 RCW. The intent of the new section is to increase the number of minority and women's business enterprises participating in the program and to decrease the waiting period between application approval and funding. The intent of the amendments are [is] to include the program under the WAC title and to connect certification to the program as required by RCW 43.86A.060 (sections 1 and 2, chapter 500, Laws of 2007).

Statutory Authority for Adoption: RCW 39.19.030 and 43.86A.060 (sections 1 and 2, chapter 500, Laws of 2007).

Statute Being Implemented: RCW 43.86A.060 (sections 1 and 2, chapter 500, Laws of 2007).

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Office of minority and women's business enterprises, governmental.

Name of Agency Personnel Responsible for Drafting: Juan Huey-Ray, 406 South Water Street, Olympia, WA 98504, (360) 704-1197; Implementation and Enforcement: Cynthia Cooper, 406 South Water Street, Olympia, WA 98504, (360) 753-9693.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The rules do not impose more than a minor cost on businesses it impacts.

A cost-benefit analysis is not required under RCW 34.05.328. There are no costs imposed by the rules.

August 22, 2007

Cynthia Cooper

Director


NEW SECTION
WAC 326-70-010   Linked deposit program -- Purpose and intent.   The purpose of this program is to facilitate access to capital for minority and women's business enterprises certified under chapter 39.19 RCW. The intent of these rules is to increase the number of minority and women business owners participating in the program and decrease the wait period between application approval and funding.

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[NEW SECTION]WAC 326-70-020   Definitions.   The following words and terms have specific meaning as used in this chapter which may be different from their meaning elsewhere in this title.

(1) "Application" means the Loan Enrollment Form submitted by qualified public depositaries and processed by the office.

(2) "Business" means an entity that is certified under chapter 39.19 RCW.

(3) "Office" means the Washington State Office of Minority and Women's Business Enterprises (OMWBE).

(4) "Owner" means any person(s) holding an ownership interest in a business certified under chapter 39.19 RCW.

(5) "Person" means one or more individuals, partnerships, associations, organizations, corporations, cooperatives, limited liability companies, legal representatives, trustees and receivers, or any group of persons.

(6) "Program" means the Linked Deposit Program authorized under RCW 43.86A.060.

(7) "Treasurer" means the Office of the State Treasurer.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-035   Loan limits.   To increase the number of businesses gaining access to capital through participation in the program, the following limits shall apply:

(1) The total principal amount of a single qualified loan shall not exceed one million dollars.

(2) The total principal amount of qualified loans under the program that any one business may receive over the lifetime of the business shall not exceed $5,000,000.00.

(3) The total principal amount of qualified loans under the program that an owner of one or more businesses may receive during her/his lifetime shall not exceed $10,000,000.00.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-040   Funding eligibility.   All minority and women business enterprises certified under chapter 39.19 RCW desiring to participate in the Linked Deposit Program and the related qualified public depositary shall complete and submit an application to the office for approval. The office shall review all applications received by the 25th day of each calendar month and forward a list of approved applications to the Treasurer by the fifth working day of the following month.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-050   Funding priority -- Established.   Funding shall occur on a monthly basis as funds are available. First-time applications must be first to receive funding in the month they are approved. If available funds are insufficient to cover the remaining applications in a given month, the unfunded applications must be first to receive funding in the subsequent month. First-time applications in that month will be funded following the funding of holdovers from the previous month(s). See example below.

Loan Application Funded?
Loan

ID

First Loan? Dec.

07

Jan.

08

Feb.

08

Mar.

08

D-1 Y Y
D-2 Y Y
D-3 N Y
D-4 N N Y
D-5 N N N Y
D-6 N N N N Y
J-1 Y -- N N Y
J-2 N -- N N N
J-3 N -- N N N
F-1 Y -- -- N Y
F-2 Y -- -- N Y
F-3 N -- -- N N
F-4 N -- -- N N
M-1 Y -- -- -- N
M-2 N -- -- -- N

Note: In the Loan ID column, the alpha character identifies the month in which the application was received. After three months on the list, unfunded applications (other than first-timers) will be funded in alternating order with first-time applications. First-timers that are unfunded after six months will be given priority and not subjected to alternating. (See WAC 326-70-060)

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-060   Funding priority -- Adjusted.   (a) Approved but unfunded applications on the effective date of these rules shall be funded prior to applications received after the effective date of these rules.

(b) The Treasurer shall review and update the funding list each month in a manner that maintains the priority of first-time applications for the current month while providing funding for other applicants that have been unfunded for at least three months.

(c) First-time applications that are unfunded after six months shall not be subject to alternating with other applications that have been unfunded for three months.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-065   Accountability.   Qualified public depositaries shall report current loan balances each month on all loans to the Treasurer.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

[NEW SECTION]WAC 326-70-070   Applicability of rules.   This chapter shall apply to all applications to the Linked Deposit Program: PROVIDED, That sections 326-70-050 and 326-70-060 shall apply only to applications received after the effective date of the rules' adoption. Applications approved prior to the effective date of the rule shall be funded in the order received, subject to availability of funds.

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Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.
AMENDATORY SECTION(Amending WSR 04-08-093 [92-11-007], filed 4/6/04 [5/11/92], effective 5/7/04 [6/11/92])

WAC 326-02-020   Applicability.   TITLE 326 WAC applies to all applications for certification, to the Linked Deposit Program, and to all public works and procurement by state agencies and educational institutions: Provided, That this title does not apply where it is found to be in conflict with federal requirements which are a prescribed condition to the allocation of federal funds to the state. In such a case, the conflicting portions of this chapter are inoperative solely to the extent of the conflict and with respect to the agencies directly affected.

[Statutory Authority: RCW 39.19.030(7). 92-11-007, 326-02-020, filed 5/11/92, effective 6/11/92. Statutory Authority: 1983 c 120 3(7). 83-22-045 (Order 83-3), 326-02-020, filed 10/28/83.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.
AMENDATORY SECTION(Amending WSR 92-11-007 [04-08-093], filed 5/11/92 [4/6/04], effective 6/11/92 [5/7/04])

WAC 326-20-180   Effect of certification.   Certification by OMWBE under the state program shall have the following effects:

(3) Certification as a minority or women's business enterprise satisfies the threshold requirement for a qualifying loan under RCW 43.86A.060 (2)(c).

[Statutory Authority: RCW 39.19.030 and 39.19.120. 04-08-093, 326-20-180, filed 4/6/04, effective 5/7/04. Statutory Authority: RCW 39.19.030(7). 92-11-007, 326-20-180, filed 5/11/92, effective 6/11/92. Statutory Authority: Chapter 39.19 RCW. 88-09-047 (Order 88-5), 326-20-180, filed 4/18/88; 84-09-002 (Order 84-5), 326-20-180, filed 4/5/84. Statutory Authority: 1983 c 120 3(7). 83-22-045 (Order 83-3), 326-20-180, filed 10/28/83.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Washington State Code Reviser's Office