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Senate Bill Report SB 5787 — Linked Deposit Program (January 13, 2022)

Summary

Senate Bill Report SB 5787, as of January 13, 2022, concerns the linked deposit program and is sponsored by Senators Nguyen, Dhingra, Frockt, Keiser, Kuderer, Liias, Lovick and Pedersen, by request of State Treasurer. The brief summary states that the bill authorizes the Office of the State Treasurer to expand the types of investments used to invest short-term surplus funds in the Linked Deposit program. The background says the state treasurer may use up to $190 million of the state's short-term surplus funds for reduced interest rate loans to certified businesses. The summary of the bill says the certificate of deposit investment program is renamed the surplus property investment program.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2022-01-18
Case
2022 01 18 A29483 D237692 Bill Report 5787 Sbr Bfst Ta 22

Cite this document

“Senate Bill Report SB 5787 — Linked Deposit Program (January 13, 2022).” Original at app.leg.wa.gov, dated 2022-01-18. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-01-18-2022-01-18-a29483-d237692-bill-report-5787-sbr-bfst-ta-22/, SHA-256 5338228d8e42328b639f10cb69e66b40d6293d9a879d66c8d0e370fd30d14495.

Full text

                            SENATE BILL REPORT
                                  SB 5787

                                      As of January 13, 2022

Title: An act relating to the linked deposit program.

Brief Description: Concerning the linked deposit program.

Sponsors: Senators Nguyen, Dhingra, Frockt, Keiser, Kuderer, Liias, Lovick and Pedersen; by
    request of State Treasurer.

Brief History:
     Committee Activity: Business, Financial Services & Trade: 1/13/22.


                                     Brief Summary of Bill
           • Authorizes the Office of the State Treasurer to expand the types of
             investments used to invest short-term surplus funds in the Linked
             Deposit program.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clinton McCarthy (786-7319)

     Background: The Linked Deposit Program (program) was created to increase access to
     business capital for the state's certified minority-owned, women-owned, and veteran-owned
     businesses. Under the program, the state treasurer may use up to $190 million of the state’s
     short-term surplus funds to allow certified businesses to obtain reduced interest rate loans
     from participating financial institutions using certificate of deposits as an investment. Up to
     $15 million per year of the total program amount is provided for veteran-owned businesses,
     with the remaining $175 million in funding allocated to minority-owned and women-owned
     businesses. A qualifying loan is one to certified minority-owned, women-owned, and
     veteran-owned businesses, and cannot exceed $1 million per business or have a repayment
     period greater than ten years.




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5787
     Summary of Bill: The short-term surplus funds used to allow certified businesses to obtain
     reduced interest rate loans from participating financial institutions are expanded to include
     investment instruments, rather than just certificates of deposits. The certificate of deposit
     investment program is renamed the surplus property investment program. The deposits and
     interest accrued through the investment of surplus funds are protected against loss.

     Appropriation: None.

     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: This is a good little bill. It is a technical fix
     that allows the state treasurer to take deposits beyond certificates of deposits. This provides
     the state treasurer and our lending partners more flexibility. This bill will allow the use of
     deposit accounts with no fixed maturity date. This change will only enhance the security of
     the program for the participants.

     Persons Testifying: PRO: Senator Joe Nguyen, Prime Sponsor; James Rosenkoetter,
     Washington State Treasurer's Office; Megan Managan, Washington Bankers Association.

     Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                              -2-                                         SB 5787

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app.leg.wa.gov
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