Legislative Changes

Legislative Changes

EHB 1166 - Relating to allowing loans to community development financial institutions under the linked deposit program

Engrossed House Bill 1166 expands the definition of a “qualifying loan” to include a loan made to a community development financial institution, provided the loan is used to make a “qualifying loan” according to the linked deposit program.

The bill also authorizes OMWBE to adopt rules to ensure that the loans made to community development financial institutions are “qualifying loans” according to the linked deposit program.

This legislation is effective July 26, 2009.

EHB 1167- Relating to the linked deposit program

Engrossed House Bill 1167, Section 3 was passed allowing the State Treasurer to reduce the effective interest rate the state receives on the certificates of deposit (CD) from a two percent (2%) floor to a zero percent (0%) floor.  

This legislation is effective July 26, 2009.

Governor Gregoire vetoed Sections 1 and 2 of EHB 1167.  These sections would have created a new obligation to produce a report by the Office of Minority and Women’s Business Enterprises.   In vetoing these sections, the Governor’s veto message stated, in part: “While I support the aim of identifying ways the linked deposit program can be improved and how small businesses can access capital more readily, this bill places a large, unfunded financial burden on a small agency during very tough budget times.”