WSR 97-23-086




[Filed November 19, 1997, 11:24 a.m.]

Subject of Possible Rule Making: The proposed rule making establishes the criteria and procedures pursuant to which the state treasurer may grant written approval of certain securities offered for sale through a private placement which use or refer to state agency leases as collateral or security for payment.

Statutes Authorizing the Agency to Adopt Rules on this Subject: Chapter 117, Laws of 1997.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The state's name in the national public securities market is of significant value in obtaining cost-effective borrowings to support the state's capital programs. Preservation of the state's name in the securities markets and maintaining the integrity of the state's debt management program are essential in being able to access the capital markets economically. The state experienced the consequences of market confusion when a private party issued securities which fraudulently reflected the state's obligations, and then subsequently defaulted on the payment of such securities. This rule is needed to ensure that the state's name in the securities market is properly protected.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Not applicable.

Process for Developing New Rule: The Office of the State Treasurer will hold a public meeting to receive comments and input regarding formulation of the rule on Friday, December 12, 1997, at 9:30 a.m. in the State Treasurer's Conference Room in the Legislative Building, Olympia, Washington. Written comments may also be submitted to the agency rules coordinator at the address listed below.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Interested parties may be included on the mailing list for notices regarding the rule making by contacting the agency rules coordinator listed herein. Agency rules coordinator Kay L. King, Office of the State Treasurer, Legislative Building, 416 14th Avenue S.W., 2nd Floor, Olympia, WA 98504-0200, (360) 902-9027, FAX (360) 902-9044. All interested parties are invited to attend the public meeting at the date and time noted above. Written comments may be addressed to the agency rules coordinator at the address noted above or faxed to the number listed above.

November 19, 1997

Kay L. King

Regulatory Affairs Officer

Agency Rules Coordinator

Legislature Code Reviser


Washington State Code Reviser's Office