PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: Creation of rules to administer the securities prosecution fund authorized by RCW 43.320.115.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 43.320.115.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The securities prosecution fund was created by RCW 43.320.115. Fines collected by the Washington securities division are placed in a fund known as the securities prosecution fund which is under the custody of the state treasurer. Funds may be made available to reimburse expenses related to securities fraud investigations and prosecutions. The proposed rule making would codify the application procedure to be followed by prosecutors who seek reimbursement funds.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The securities prosecution fund is not regulated by any other state or federal agencies. The fund is held under the custody of the state treasurer.
Process for Developing New Rule: The proposed rule will codify the procedures the securities division has developed for administering the securities prosecution fund.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Jill M. Vallely, Department of Financial Institutions, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, voice (360) 902-8801, fax (360) 704-7035, e-mail firstname.lastname@example.org.
December 17, 2007
Michael E. Stevenson