Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 21.20.450; section 12 of SB 6202 (chapter 15, Laws of 1998).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Section 12 of SB 6202 (chapter 15, Laws of 1998) grants to the director the power to adopt rules governing the filing requirements for federal covered securities pursuant to the National Securities Markets Improvement Act of 1996 (NSMIA).

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Securities are regulated by the federal Securities and Exchange Commission (SEC) and most states. The division proposes using existing federal and other uniform forms where appropriate to satisfy Washington's filing requirements.

Process for Developing New Rule: Proposed rules would codify existing practices that are well accepted.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting William M. Beatty, Securities Division, Department of Financial Institutions, P.O. Box 9033, Olympia, WA 98507-9033, (360) 902-8760, FAX (360) 704-6923, bbeatty@dfi.wa.gov, Securities Division Web Site http://www.wa.gov/dfi/securities.

May 11, 1998

Michael E. Stevenson

Program Manager