Subject of Possible Rule Making: Newly incorporated city or town.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 35.02.135.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Pursuant to RCW 35.02.135, the State Treasurer is directed to adopt by rule procedures to facilitate the borrowing and repayment of the moneys authorized by the above statute on a reasonable and equitable basis over the three-year period of the loan. WAC 474-02-010(2) states that each loan shall bear interest for the duration of the loan at the closing offering yield of the then current three-year treasury note, as quoted by the Wall Street Journal, on the day prior to the loan disbursement. The federal government no longer issues three-year treasury notes, consequently, a new basis for the interest rate of such loans must be established.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Agency study with local government input into the rule development process.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Greg Rosen, Legal Counsel, (360) 902-9093. Alternate Contact: Douglas Extine, Deputy Treasurer, (360) 902-9012. Mailing address: P.O. Box 40200, Olympia, WA 98504-0200, fax (360) 902-9044.

July 26, 1999

Gregory J. Rosen

Legal Counsel