1. Recodifying Title 50 WAC (banking regulations) into Title 208 WAC and housekeeping measures including amending certain outdated internal references.

DIVISION OF CONSUMER SERVICES

1. Amendments to chapter 208-620 WAC, Consumer Loan Act, to correct errors in internal references.

2. Amendments to chapter 208-630 WAC, Check cashers and sellers, to correct errors in internal references.

3. Amendments to chapter 208-660 WAC, Mortgage brokers, to implement statutory changes and make technical amendments to trust accounting and disclosure provisions.

4. Amendments to chapter 208-680 WAC, Escrow, to implement statutory changes.

DIVISION OF SECURITIES

1. Amend WAC 460-80-110 Franchise registration application, to correct outdated reference to "Director of Licensing" with a reference to "Director of Financial Institutions."

2. Amend WAC 460-80-125 Franchise registration application instructions, to eliminate duplicative requirements that are currently contained in the Uniform Franchise Offering Circular (UFOC), a disclosure format adopted by WAC 460-80-315.

3. Amend WAC 460-80-140 Financial statements, to eliminate an outdated reference to a repealed provision (WAC 460-60A-100) and to eliminate requirements currently contained in the UFOC.

4. Amend WAC 460-80-440 Depository, to allow any financial institution, trust company, or any other person acceptable to the administrator, to hold funds subject to a franchise registration impound condition. The current rule only allows national banks located in Washington to hold such funds.

5. Convert franchise interpretive and policy statements into rules. RCW 34.05.230 of the Administrative Procedure Act encourages agencies to convert long-standing interpretive and policy statements into rules.

6. Amend WAC 460-44A-504 Uniform limited offering exemption, to increase limitation on aggregate offering price from $500,000 to $1,000,000.

7. Amend WAC 460-24A-150 Performance compensation arrangements, to recognize updated federal Securities and Exchange Commission release on permitted investment adviser performance compensation arrangements.

8. Housekeeping amendments to chapter 460-24A WAC, Investment advisers, are needed to reflect statutory renumbering that occurred in the 1998 amendments to the Securities Act, chapter 21.20 RCW. WAC 460-24A-050 needs to be amended to allow for the changes to the Series 65 examination which will occur on January 1, 2000; WAC 460-24A-150 needs to be amended to reflect the adoption by the SEC of Release IA-1731, which amended its rule regarding performance-based compensation. In addition, the division is considering whether to amend WAC 460-24A-170 by adopting the North American Securities Administrators Association (NASAA) model rules on net worth and bonding, and WAC 460-24A-200 by adopting the NASAA model rule on recordkeeping standards for investment advisers.

9. Adopt a new rule governing securities sales on financial institution premises, similar to standards recently adopted by the National Association of Securities Dealers Regulation, Inc. (NASDR).

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