FINAL BILL REPORT

SSB 6283

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background: A security is an interest or investment in a business venture in which the investment is risked with the expectation of some valuable benefit to the investor. Under both state and federal law, all securities offerings must be registered with state and federal regulators, or be exempt from registration under one of a variety of specified exemptions. The Securities Act of Washington sets out the requirements for registration and the various exemptions applicable under state law. The Department of Financial Institutions (DFI) is responsible for administering the Securities Act and regulating investment activities under the act.

In 2014, the Legislature adopted an exemption from registration under the Securities Act for certain small securities offerings. This exemption is more commonly referred to as the crowdfunding exemption.

Summary: The time period for appealing the entry of an order by DFI is changed from 15 days to 20 days, to be consistent with the Administrative Procedures Act.

Statutory references in the chapter listing exemptions have been updated to include the exemption for crowdfunding adopted in 2014. The director's authority to deny, revoke, or condition an exemption as it pertains to a security is extended to the crowdfunding exemption.

The registration renewal deadline for securities professionals is changed from December 31 of each year to the deadline specified in the registration depositories managed by the Financial Industry Regulatory Authority.

The statute outlining criminal penalties for violation of the Securities Act is reenacted to eliminate duplicate statutes passed in a previous session.

Various technical, spelling, and grammatical errors are corrected.

Votes on Final Passage:

Senate	47	0
House	96	1