WSR 08-09-132

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF

FINANCIAL INSTITUTIONS
(Division of Banks)

[ Filed April 23, 2008, 8:20 a.m. ]

Subject of Possible Rule Making: Rule making would implement the 2008 legislature's authorization to the department that the department may increase its hourly examination and fees in the division of banks, as follows: (1) Hourly examination fees for state-chartered commercial banks, mutual savings banks and stock savings banks may be increased in fiscal year 2008 by not more than 5.53%; (2) semi-annual assessments for state-chartered commercial banks, mutual savings banks and stock savings banks may be increased in fiscal year 2008 by not more than 5.53%; and (3) semi-annual assessments for state-chartered commercial banks, mutual savings banks and stock savings banks based upon interstate assets may be increased in fiscal year 2008 by not more than $183,321. This rule making would allow for a change to fully assess assets, including interstate assets, of Washington state-chartered commercial banks, mutual savings banks, and stock savings banks.

Statutes Authorizing the Agency to Adopt Rules on this Subject: Section 30 (6), (7) and (8), chapter 285, Laws of 2008, RCW 30.04.030, 30.04.070, and 43.320.040.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The division of banks needs additional revenues to pay for its operation and to maintain a fund balance reserve. The division's revenues in the 05-07 fiscal biennium did not fully cover operating expenses. This rule making will bolster revenues to help cover increasing operating expenses. The division of banks also lost revenues as a result of federal legislation which limited the division's ability to assess assets of out-of-state banks operating with branches in Washington. The rule change replaces the lost revenues from a recent change in federal legislation by fully assessing the assets of Washington state-chartered commercial banks, mutual savings banks and stock savings banks which operate with branches in other states.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Consultation with stakeholders.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Brad Williamson, Director of the Division of Banks, 150 Israel Road S.W., Tumwater, WA 98501, P.O. Box 41200, Olympia, WA 98504, phone (360) 902-8704, fax (360) 704-6947, e-mail bwilliamson@dfi.wa.gov, at or before any public hearing on the rule.

April 17, 2008

Brad Williamson, Director

Division of Banks

Washington State Code Reviser's Office