PROPOSED RULES
FINANCIAL INSTITUTIONS
(Securities Division)
Original Notice.
Preproposal statement of inquiry was filed as WSR 08-01-128.
Title of Rule and Other Identifying Information: The rule making will create rules for administering the securities prosecution fund.
Hearing Location(s): Department of Financial Institutions, 150 Israel Road S.W., Tumwater, WA 98501, on June 11, 2008, at 10 a.m.
Date of Intended Adoption: June 11, 2008.
Submit Written Comments to: Jill M. Vallely, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, e-mail jvallely@dfi.wa.gov, fax (360) 704-7035, by June 10, 2008.
Assistance for Persons with Disabilities: Contact Jill Vallely, TTY (360) 664-8126 or (360) 902-8760.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: 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. Funds may be made available to reimburse expenses related to securities fraud investigations and prosecutions. The proposed rule making will codify the procedures to be followed by prosecuting attorneys who seek reimbursement funds.
Reasons Supporting Proposal: The rule making will provide notice and guidance to prosecuting attorneys who may be eligible for reimbursement from the securities prosecution fund. The rules will provide additional information on the application procedure to be followed. The rules will also outline the record-keeping and reporting requirements for prosecuting attorneys who receive reimbursement from the securities prosecution fund.
Statutory Authority for Adoption: RCW 21.20.450.
Statute Being Implemented: Chapter 21.20 RCW.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of financial institutions, securities division, governmental.
Name of Agency Personnel Responsible for Drafting: Jill M. Vallely, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8760; Implementation: Scott Jarvis, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8760; and Enforcement: Michael E. Stevenson, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8760.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposal does not impose additional costs on business.
A cost-benefit analysis is not required under RCW 34.05.328. The department of financial institutions is not one of the agencies listed in RCW 34.05.328.
May 6, 2008
Scott Jarvis
Director
PROCESSING APPLICATIONS FOR GRANTS FROM THE SECURITIES PROSECUTION FUND
(2) Application and reimbursement process.
(a) An applicant shall complete an application form provided by the securities division of the department of financial institutions.
(b) If the director or his or her designee approves the reimbursement request, the applicant may be required to complete and submit additional forms and information during the reimbursement process.
(c) The attorney general or prosecuting attorney requesting reimbursement of expenditures related to a criminal investigation or prosecution must maintain books, records, documents, and other evidence that sufficiently and properly reflect those expenditures.
(d) At the closing of each case for which reimbursement has been approved, the attorney general or prosecuting attorney must submit a closing report to the department of financial institutions. The closing report shall summarize the outcome of the case, provide an accounting for reimbursed expenditures, and certify that all reimbursement funds have been used for the purpose requested. If a closing report is not filed, or if the closing report indicates that funds were not used for the purpose requested, the attorney general or prosecuting attorney is required to repay the funds received from the securities prosecution fund.
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