Title of Rule and Other Identifying Information: Chapter 208-690 WAC, implementing the Uniform Money Services Act (chapter 19.230 RCW) must be amended to implement section 6, chapter 73, Laws of 2010. Section 6 amends the annual assessment formula. If the rules are not amended by July 1, 2010, the existing annual assessment formula in the rules will be inconsistent with the law as amended by chapter 73.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Chapter 208-690 WAC must be amended to be consistent with chapter 73, Laws of 2010.

     See the text of the proposed rule shown below.

     Reasons Supporting Proposal: If the rule is not amended it will be inconsistent with recently passed legislation.

     Statutory Authority for Adoption: RCW 43.320.040; chapter 19.230 RCW.

     Statute Being Implemented: Chapter 19.230 RCW.

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

     Name of Proponent: Department of financial institutions, governmental.

     Name of Agency Personnel Responsible for Drafting: Cindy Fazio, 150 Israel Road, Tumwater, WA, (360) 902-8800; Implementation and Enforcement: Deborah Bortner, 150 Israel Road, Tumwater, WA, (360) 902-0511.

March 23, 2010

Deborah Bortner, Director

Division of Consumer Services

OTS-3143.4

AMENDATORY SECTION(Amending WSR 04-15-005, filed 7/7/04, effective 8/7/04)

WAC 208-690-100   ((Late penalty.)) Is there a penalty for not filing my annual report and annual assessment on time?   (1) If ((a licensee)) you fail((s)) to submit the required annual report or ((license)) annual assessment fee by August 2, 2010, or by July 1, each year thereafter, the director ((shall send the licensee a notice of suspension)) may suspend your license and assess a late fee ((equal to)). The late fee is ten percent of the annual assessment if paid thirty or fewer days late and twenty-five percent of the ((license)) annual assessment ((fee)) if paid more than thirty days late. If ((a licensee whose)) your license has been suspended under this section and you submit((s)) a completed annual report, the annual assessment and the late fee to the department office no later than 5:00 p.m., ((July 31)) thirty calendar days after the original due date, the license suspension ((shall)) may be removed. If the delay extends past ((July 31, the director shall send a notice to the licensee that its)) thirty days, your license has expired effective ((August 1)) thirty-one days after the original due date.

     (2) The director may reinstate an expired license under this section if, ((by August 20, the licensee)) within forty-five days after the original due date, you:

     (a) File((s)) the complete annual report and pay((s)) both the annual license assessment and the late fee; and

     (b) ((The licensee or its)) You or your delegates did not engage in providing money services during the period ((its)) the license was expired.

     (3) If any of the deadlines in this section occur on a day that is not a business day, the deadline shall be the next business day.

[Statutory Authority: RCW 19.230.310 and 43.320.040. 04-15-005, § 208-690-100, filed 7/7/04, effective 8/7/04.]

((MONTH LICENSE ISSUED			INITIAL ANNUAL ASSESSMENT
	July		$500
	August		458
	September		416
	October		374
	November		332
	December		290
	January		248
	February		206
	March		164
	April		122
	May		80
	June		38))

     (2) For each subsequent year a licensee shall pay an annual license assessment of five hundred dollars plus fifty dollars for each additional location where the licensee or an authorized delegate provides money services, up to a maximum of fifteen thousand dollars.)) (1) The annual assessment is calculated by multiplying 0.0004 by the previous year's adjusted Washington volume of money transmission, currency exchange, stored value sales, and payment instrument sales, with a minimum assessment of one thousand dollars and a maximum assessment of one hundred thousand dollars.

     (a) For purposes of this section, "adjusted Washington volume" means:

     (i) For money transmission, ninety-five percent of all funds transmitted;

     (ii) For currency exchange, five percent of all currency exchanged;

     (iii) For stored value sales, ninety-five percent of all funds loaded onto open-loop stored value devices; and

     (iv) For payment instrument sales, seventy percent of the first ten million dollars of payment instrument sales, twenty percent of the volume over ten million through five hundred million dollars, and one percent of any amount over five hundred million dollars.

     (b) For the assessment paid on the adjusted Washington volume for 2009 and 2010, any examination fees (excluding actual travel expenses) paid to the department during those years will be subtracted from the total amount owed.

     (2) The annual assessment is due August 2, 2010, and July 1 each year thereafter.

[Statutory Authority: RCW 19.230.310 and 43.320.040. 04-15-005, § 208-690-140, filed 7/7/04, effective 8/7/04.]

     The following section of the Washington Administrative Code is repealed:

WAC 208-690-160

Late fees.

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