WSR 09-03-107

EXPEDITED RULES

DEPARTMENT OF

FINANCIAL INSTITUTIONS
(Division of Banks)

[ Filed January 21, 2009, 9:01 a.m. ]

Title of Rule and Other Identifying Information: Semi-annual assessments of state-chartered commercial banks (Title 30 RCW) and savings banks (Title 32 RCW).

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 Gloria McVey, Program Manager, Division of Banks, Washington Department of Financial Institutions, 150 Israel Road S.W., Tumwater, WA 98501, P.O. Box 41200, Olympia, WA 98504-1200 , AND RECEIVED BY March 23, 2009.


Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Technical amendment of WAC 208-544-039 (1)(d) to correct two typographical errors. In place of "8,373," the number should have been "8,732." In place of "165,562," the number should have been "165,560." The formula contained in the table at WAC 208-544-039 (1)(d) is correct and results in the correct number.

Reasons Supporting Proposal: To amend WAC 208-544-039 (1)(d) to correct two typographical errors inconsistent with the mathematical formula set forth in the table at WAC 208-544-039 (1)(d). The correct calculation reflects the fully allowable semi-annual assessment increase authorized by section 30, chapter 285, Laws of 2008.

Statutory Authority for Adoption: Section 30, chapter 285, Laws of 2008; RCW 30.04.030, 43.320.040, and 34.05.353 (1)(c).

Statute Being Implemented: Section 30, chapter 285, Laws of 2008.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Washington department of financial institutions, division of banks, governmental.

Name of Agency Personnel Responsible for Drafting: Joseph M. Vincent, General Counsel, 150 Israel Road S.W., Tumwater, WA 98501, P.O. Box 41200, Olympia, WA 98504-1200, (360) 902-0516; Implementation and Enforcement: Gloria McVey, Program Manager, Division of Banks, 150 Israel Road S.W., Tumwater, WA 98501, P.O. Box 41200, Olympia, WA 98504-1200, (360) 902-8704.

January 21, 2009

Brad Williamson

Director of Banks


AMENDATORY SECTION(Amending 08-18-079, filed 9/3/08, effective 10/6/08)

WAC 208-544-039   Charges and fees effective October 6, 2008.   (1) Effective October 6, 2008, the rate of charges and fees under WAC 208-512-045, 208-544-020 and 208-544-030 shall be as follows:

(a) WAC 208-512-045 (1)(c) and (d) - The fee shall be $100.00 for the issuance and filing of certificates.

(b) WAC 208-512-045 (1)(e) - The fee shall be 50 cents per page.

(c) WAC 208-512-045(2) - The fee shall be $111.64 per employee hour expended.

(d) WAC 208-544-020(1) - The rates shall be the following:


If total assets are: The assessment is:
Over But not

Over

This Amount Plus Of Excess

Over

Million Million Million
0 500 0 0.000017464 0
500 1,000 ((8,373))

8,732

0.000016746 500
1,000 10,000 17,105 0.000016495 1,000
10,000 ((165,562))

165,560

.000 10,000

(e) WAC 208-544-020(2) - The rate shall be 0.04005.

(f) WAC 208-544-030(1) - The fee shall be $80.60 per hour.

(g) WAC 208-544-030(2) - The fee shall be $111.64 per hour.

(2) The director may waive any or all of the charges and/or fees imposed under this section, in whole or in part, when he or she determines that both of the following factors are present:

(a) The banking program fund exceeds the projected acceptable minimum fund balance level approved by the office of financial management (OFM); and

(b) That such course of action would be fiscally prudent.

(3)(a) If the charges and fees assessed under WAC 208-544-020(1) relating to a semiannual asset charge and WAC 208-544-030(1) relating to the hourly examination fee exceed ninety-five percent of the charges and fees applicable for a two-year period of the comparable federal chartering regulator (CFCR) or its successor then the charges and fees paid in excess of such amount shall be rebated to the institution pursuant to (d) of this subsection unless abated by the director as provided in (e) of this subsection.

(b) For purposes of determining rebate entitlement, the total of semiannual asset charges and examination fees will be determined by adding the monthly average semiannual asset charge and the monthly average examination fee for any twenty-four month period beginning on or after July 1, 2000. The monthly average semiannual asset charge is determined by dividing the semiannual asset charges by six and applying the monthly average to the previous six months. The monthly average examination fee is determined by dividing the examination fee for each examination during the averaging period by the number of months between each such examination and the previous examination as determined by the date of the examinations and applying the monthly average to those months. The CFCR charge is determined in the same manner. Under no circumstances will an institution be permitted to calculate a rebate based on a period of time that was included, in whole or in part, in the calculation of another rebate under this section.

(c) The rebate is determined by the difference between the sum of the applicable monthly average state charges and fees for the twenty-four month period minus ninety-five percent of the sum of the applicable monthly average CFCR charges and fees for the same period, as each are determined in (b) of this subsection.

(d) Entitlement of the rebate will occur only upon petition and satisfactory proof to the director.

(e) Rebate abatement. At the discretion of the director, all or part of the rebate determined under (d) of this subsection may be denied if the director determines that:

(i) The institution required a substantially greater than average amount of supervisory time for reasons other than as a result of economic, legal, regulatory, or other conditions beyond the control of competent management;

(ii) The institution required a substantially greater than average amount of examination time for an institution of its size for reasons other than as a result of economic, legal, regulatory, or other conditions beyond the control of competent management;

(iii) Examinations or investigations were performed by third parties under personal services contracts;

(iv) The banking program fund does not exceed the projected acceptable minimum fund balance level approved by OFM or is insufficient to satisfy the rebates under this subsection and still maintain the operations of the department at a fiscally prudent level;

(v) The institution maintained a composite uniform financial institution rating (CAMELS) of 3, 4 or 5 during any time during the rebate period; or

(vi) Such other factors as the director may deem equitable or relevant.

(f) Institutions may become eligible to receive a rebate after June 30, 2002, for amounts paid on or after July 1, 2000.

[Statutory Authority: 2008 c 285, RCW 30.04.030, [30.04.]070, 43.320.040. 08-18-079, 208-544-039, filed 9/3/08, effective 10/6/08. Statutory Authority: RCW 30.04.030, 33.04.025, 43.320.040. 01-12-003 and 01-20-086, 208-544-039, filed 5/23/01 and 10/2/01, effective 7/1/01 and 11/2/01. Statutory Authority: RCW 30.04.030 and 43.320.040. 01-06-024, 208-544-039, filed 2/27/01, effective 3/30/01; 00-17-141, recodified as 208-544-039, filed 8/22/00, effective 9/22/00. Statutory Authority: RCW 30.04.030, 30.04.070, 30.08.095, 33.04.025 and 43.320.040. 99-10-024, 50-44-039, filed 4/28/99, effective 6/25/99.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Washington State Code Reviser's Office