WSR 98-04-029
AGENDA
DEPARTMENT OF
FINANCIAL INSTITUTIONS
[Filed January 29, 1998, 9:40 a.m.]
Department of Financial Institutions
Semi-Annual Rules Development Agenda
January 1, 1998 - June 30, 1998
division of consumer services
1. Amendments to chapter 208-660 WAC to reflect statutory changes
to definitions, exemptions from licensing, branch office licensing
requirements, records retention requirements, bonding requirements, and
trust accounting requirements applying to mortgage brokers.
division of credit unions
1. Review of all Division of Credit Unions rules in accordance with Executive Order No. 97-02. Affects the following rules: Chapters 208-418, 208-436, 208-440, 208-444, 208-464, 208-472, and 208-480 WAC. May involve adoption, amendment or repeal of various rules.
2. Revision to field of membership rules. Affects chapter 208-472
WAC. May involve adoption, amendment or repeal of various rules.
division of securities
1. If the departmental request securities bill is passed by the legislature in 1998, amendments to chapter 460-42A WAC may be necessary. If the bill is passed into law, these changes will be identified. This may not take place before June 30.
2. Changes are expected to be made in WAC 460-44A-500 through 460-44A-508. The passage of the National Securities Markets Improvement Act of 1996 (NSMIA) has created the need to amend the Reg D rules. NSMIA created "covered securities" which are preempted from substantive state regulation. Securities issued pursuant to federal rule 506 are now classified as covered securities. As a result, state Reg D provisions need to be amended to reflect this change. In addition, the division has proposed amending RCW 21.20.320(9) to allow offerings greater than $500,000 under that provision. If such a change is passed, it will be necessary to make further amendments to Reg D rules, particularly WAC 460-44A-504.
3. WAC 460-32A-400 is the last remaining rule under chapter 460-32A WAC. This title was named real estate related securities programs, and all other rules within the chapter were repealed in 1993 because the rules were no longer deemed necessary. The last remaining provision was retained because it recognizes Securities and Exchange Commission Securities Act Release No. 5347, which continues to be in effect. The remaining rule is largely composed of the text of the SEC release; the rule should be amended to delete the full text of the release and to simply incorporate the release by reference.
4. It is expected that WAC 460-44A-050 will be revised to clarify its meaning. The rule currently addresses only nonissuer transactions. However, the statutory provision of RCW 21.20.320(1) contains no limitation that it covers only nonissuer transactions. Consistent with treatment given Securities Act Section 4(2) by the SEC, the Washington exemption may appropriately be considered to cover issuer as well as nonissuer transactions. The rule may be revised to eliminate this impression by incorporating the position contained in current Interpretive Statement #8 and subsequently withdrawing or repealing the interpretive statement.
5. The 1998 legislative session may result in changes in the state's manual exemption contained in RCW 21.20.320(2), and it is anticipated that a manual exemption similar to that adopted recently by the North American Securities Administrators Association will be adopted. If the departmental request securities bill is passed by the legislature in 1998, changes will need to be made in the associated provision of WAC 460-44A-200.
6. NASAA Statements of Policy that were revised as part of the coordinated equity review process need to be adopted and any conflicting or overlapping regulations repealed. This should be done by March 31, 1998. The policy statements would be adopted in WAC 460-16A-205. Any repealed sections would be in chapter 460-16A WAC as well.
7. WAC 460-17A-070 may need to be amended in connection with
adoption of the NASAA policy statements. This rule covers application
of the provisions of chapter 460-16A WAC to SCOR offerings, and
references parts of chapter 460-16A WAC that will probably be repealed
in favor of the NASAA policies.
division of banks
1. Repeal of chapter 50-52 WAC, Washington Land Bank. The legislature is now in the process of repealing the land bank statute.
2. Amend various sections of chapter 50-36 WAC, Administration of trust companies, investments, etc. The purpose of the amendments is to clarify that the posting of net asset values in a newspaper or website is not to be considered advertising, and to bring the regulations in line with Regulation 9 of the federal regulations for competitive reasons.