WSR 14-07-062

EXPEDITED RULES

[Filed March 17, 2014, 7:59 a.m.]

Title of Rule and Other Identifying Information: Updating reference to securities manuals, the securities division is proposing to update a reference contained in WAC 460-10A-160 to securities manuals that are no longer in existence. We are proposing to remove the outdated reference and replace it with a reference to the current manuals.

NOTICE

THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Dan Matthews, Department of Financial Institutions, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033, AND RECEIVED BY May 20, 2014.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Several years ago, the credit rating agency and securities manual publisher known as "Moody's Investor Service" (Moody's) sold to a company named Mergent's, Inc. (Mergent's). The services and functions provided by Moody's continue to operate under the Mergent's title. WAC 460-44A-100(5) provides that certain nonissuer transactions are exempt provided that, inter alia, the issuer and other key information is contained in a "nationally recognized securities manual." WAC 460-10A-160 defines "nationally recognized securities manual" as securities manuals published by "Fitch Investors Service, Moodys Investors Service, and Standard and Poor's Corporation Records." Because Moody's is no longer in existence, we are proposing to remove the reference in WAC 460-10A-160 to "Moody's Investor Service" and replace it with a reference to "Mergent's Investor Service."

Reasons Supporting Proposal: The proposed rule making is beneficial to local and national businesses that may engage in exempt transactions. It is also beneficial to regulated entities and local governments that refer to and rely on the WAC. By engaging in this rule making, the public and the government would be benefited through more clear and accurate regulations.

Statutory Authority for Adoption: RCW 21.20.450, 21.20.320(2).

Statute Being Implemented: Chapter 21.20 RCW.

Name of Proponent: Department of financial institutions, governmental.

Name of Agency Personnel Responsible for Drafting: Dan Matthews, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8760; Implementation: Scott Jarvis, Director, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8760; and Enforcement: William M. Beatty, Director [of] Securities, 150 Israel Road S.W., Tumwater, WA 98501, (360) 902-8760.

March 14, 2014

Scott Jarvis

Director