WSR 13-21-084

PROPOSED RULES

[Filed October 17, 2013, 4:23 p.m.]

Preproposal statement of inquiry was filed as WSR 13-17-019.

Title of Rule and Other Identifying Information: Definitions—Precious metal, the division is proposing to adopt a rule to expand the subject matter covered by the term "precious metal" in the Washington Commodities Act to include palladium and copper, in addition to gold, silver, and platinum.

Hearing Location(s): Washington State Department of Financial Institutions, 3rd Floor, Room 319, 150 Israel Road S.W., Tumwater, WA 98501, on December 3, 2013, at 2:00 p.m.

Date of Intended Adoption: December 4, 2013.

Submit Written Comments to: Jordan Rood, Associate General Counsel, Washington State Department of Financial Institutions, 150 Israel Road S.W., Tumwater WA, 98501, e-mail Jordan.Rood@dfi.wa.gov, fax (360) 704-6992, by December 2, 2013.

Assistance for Persons with Disabilities: Contact Carolyn Hawkey, P.O. Box 9033, Olympia, WA 98507-9033, TTY (360) 664-8126 or (360) 902-8824.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Washington adopted its Commodities Act in 1986, based on the North American Securities Administrators Association (NASAA) Model State Commodity Act (Model Act). Since that time, NASAA has amended the Model Act to expand the definition of "precious metal" to include palladium and copper, in addition to the initially covered metals of gold, silver, and platinum. A majority of other states that have adopted the Model Act have amended their own laws to reflect this expanded definition. A primary reason to expand this definition would be to broaden the subject matter covered by the exemption for precious metal commodity contracts in RCW 21.30.040 (1)(b).

Reasons Supporting Proposal: The expansion of this definition will expand the scope of the precious metal commodity contract exemption, which will ease the regulatory requirements for businesses and individuals buying and selling these metals under coverage of the exemption.

Statutory Authority for Adoption: RCW 21.30.400, 21.30.010 (17)(d), 21.30.040 (1)(b).

Statute Being Implemented: Chapter 21.30 RCW.

Name of Proponent: Department of financial institutions, governmental.

Name of Agency Personnel Responsible for Drafting: Jordan Rood, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8797; Implementation: J. Scott Jarvis, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8723; and Enforcement: William Beatty, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8734.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The primary effect of this rule would be to expand the subject matter covered by precious metal commodity contract exemption, which would have the effect of lowering regulatory burden, and thus likely costs, for individuals and businesses effecting transactions in these metals. As a result, the rule will not have more than a "minor cost" as defined in chapter 19.85 RCW. As such, the agency is not required to prepare a small business economic impact statement under RCW 19.85.030.

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.

October 14, 2013

Scott Jarvis

Director

Chapter  460-300  WAC