WSR 97-08-057

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF

FINANCIAL INSTITUTIONS

[Filed April 1, 1997, 8:38 a.m.]

Subject of Possible Rule Making: Amendments to WAC 460-44A-506 and related sections to reflect the recent passage of the National Securities Markets Improvement Act of 1996 (NSMIA).

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 21.20.450.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: NSMIA preempts certain securities and transactions from state registration and exemption requirements. One of the affected provisions in WAC 460-44A-506, which provides an exemption from registration. Amendment is needed so that Washington's regulations conform to federal law.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The federal Securities and Exchange Commission and other states also regulate securities. The North American Securities Administrators Association (NASAA) has formed a committee to draft model language and has circulated that language for comment by the states and the SEC.

Process for Developing New Rule: The need for, and the language of, the amendment is dictated by NSMIA. The North American Securities Administrators Association (NASAA) has formed a committee to draft model language and has circulated that language for comment by the states and the SEC.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Bill Beatty, Securities Division, Department of Financial Institutions, P.O. Box 9033, Olympia, WA 98507-9033, (360) 902-8760, FAX (360) 586-5068, e-mail bbeatty@dfi.wa.gov.

March 27, 1997

John L. Bley

Securities Administrator

Legislature Code Reviser

Register

Washington State Code Reviser's Office