To create certified capital companies. This bill is intended to assist small start-up enterprises to succeed in their business and to contribute to the future of Washington. See companion SB 5621.   Official Text and Analysis.

To change the regulatory agency overseeing the CAPCO program from the Department of Community, Trade and Economic Development (DCTED) to the Department of Financial Institutions. The definition of "affiliate" is changed to have the same meaning as in the Insurer Holding Company Act and the Health Carrier Holding Company Act. A qualified debt instrument must be the highest rating category of the Securities Valuation Office of the National Association of Insurance Commissioners. Investments by CAPCOs must be consistent with the current Insurance Investment Code requirements, and investments in CAPCOs are an authorized miscellaneous investment under the Insurance Investment Code. The CAPCO management qualifications are expanded to include persons with two years of experience in private equity funds management. The requirements for the continuance of certification are simplified. The redemption of the premium tax credit is delayed until 2009. The premium tax credit is increased from 75 percent of the qualified investment in a CAPCO to 80 percent. The premium tax credit redemption schedule is changed to be 10 percent per year.