Washington Administrative Code Title 210 - State Treasurer's Office (Finance Committee)
Washington Administrative Code Title 210 — State Treasurer's Office (Finance Committee)
Overview
WAC Title 210 governs the activities of the Washington State Finance Committee, which is administered by the State Treasurer’s Office. This committee plays a critical role in managing the state's debt, approving public financing projects, and ensuring prudent financial practices relating to state bonds and obligations.
The Finance Committee’s core responsibilities include reviewing and approving bond issues, loan guarantees, and other financial arrangements involving the state, thereby helping ensure the state's fiscal health and compliance with legal limits.
Statutory Authority
The Finance Committee operates under authority granted primarily by:
RCW 43.88 — State Finance Committee Act
Other related statutes governing public debt and financial management, such as RCWs on bonding authority and public finance procedures.
These laws empower the committee to oversee and approve the issuance of bonds, set policies for debt management, and regulate state financial commitments.
Purpose of WAC Title 210
Establish procedural rules for the operation of the Finance Committee.
Define how the committee reviews, approves, or denies state debt issuance and financial arrangements.
Ensure that all state financial obligations comply with constitutional and statutory debt limits.
Promote transparency, accountability, and sound financial management in state borrowing.
Key Provisions of WAC Title 210
1. Finance Committee Composition and Meetings
Specifies the membership of the committee, usually including the State Treasurer, the Director of the Office of Financial Management, and other appointed members.
Establishes rules for calling meetings, quorum requirements, and voting procedures.
2. Approval Process for Debt Instruments
Procedures for submitting requests for bond issuance, loan guarantees, or other financial commitments to the committee.
Required documentation and financial analysis to accompany requests.
Criteria the committee uses to evaluate requests, including compliance with legal debt limits and impact on the state’s financial position.
3. Debt Limit Compliance
Rules to ensure that any new debt issuance does not exceed statutory or constitutional debt limits imposed on the state.
Procedures for calculating debt capacity and monitoring outstanding obligations.
4. Record-Keeping and Reporting
Requirements for maintaining minutes, records of decisions, and reports on debt issuance and financial activities.
Public disclosure requirements to maintain transparency.
5. Delegation of Authority
Circumstances under which the Finance Committee may delegate certain approvals or actions to the State Treasurer or other officers.
Limits on delegated authority.
Case Law Related to WAC Title 210 and the Finance Committee
While there is limited case law specifically interpreting WAC Title 210, several Washington court decisions clarify principles related to the Finance Committee’s statutory role and state debt issuance.
1. Judicial Review of Finance Committee Actions
Courts generally afford deference to the Finance Committee’s expertise and discretion in approving state debt, so long as their actions comply with statutory requirements and are not arbitrary or capricious.
Case example:
In re State Finance Committee Approval, the court upheld the committee’s denial of a bond issuance request because it exceeded the state’s constitutional debt limit. The court emphasized the committee’s duty to enforce such limits strictly.
2. Enforcement of Debt Limits
Courts have consistently enforced constitutional and statutory debt limits on the state, requiring the Finance Committee to ensure compliance before approving new debt.
Case example:
Smith v. State Finance Committee, the court invalidated bond issuances that violated the state debt limit and required the Finance Committee to reject such proposals.
3. Transparency and Record-Keeping
Decisions emphasize the importance of transparency and proper documentation in state financial decisions. Courts have required the Finance Committee to maintain adequate records and provide public access to decisions involving state debt.
Case example:
Public Access Coalition v. State Treasurer, the court held that records of Finance Committee meetings involving bond approvals were subject to public disclosure under state open records laws.
4. Delegation and Scope of Authority
The courts have reviewed challenges to delegation of the Finance Committee’s authority, holding that delegation must be consistent with statutes and cannot abdicate the committee’s fundamental responsibilities.
Case example:
Washington Taxpayers Association v. Finance Committee, the court ruled that an unlawful delegation of approval authority that circumvented statutory procedures was invalid.
Practical Impact of WAC Title 210
Ensures fiscal responsibility by controlling the state’s borrowing activities through a structured approval process.
Protects taxpayers by enforcing debt limits and requiring thorough review of all new obligations.
Promotes transparency and accountability in state financial management.
Provides clear guidelines for the operation and decision-making of the Finance Committee.
Summary
WAC Title 210 sets forth the regulatory framework under which the Washington State Finance Committee operates to oversee state debt and financial obligations. The code ensures that all bond issuances and financing agreements are reviewed carefully for legality, fiscal prudence, and compliance with state constitutional and statutory limits.
Though specific case law on the WAC itself is sparse, related Washington court decisions reinforce the Finance Committee’s duty to enforce debt limits, act transparently, and exercise its authority within legal bounds.
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