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Amend rules on limits on loans and extensions of credit (WAC 208-512A-010) to conform to statutory changes in chapter 76, Laws of 2013, which updated the "parity" provisions by which state-chartered banks and savings banks may exercise the powers and authorities of national banks and federal savings associations. The amendments to the statute changed the "parity date" from July 27, 2003, to effectively July 28, 2013. Accordingly, the rule needs to be amended to conform to the statutory changes. There may be other minor proposed amendments to the lending limits rules for clean-up or tweaking purposes.

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Amend chapter 208-512 WAC to modernize securities investment standards rules. Section 939A of the Dodd-Frank Act authorized federal banking regulators to eliminate statutory protections for national credit rating agencies associated with investments (i.e., Standard & Poors, Moody's, and Fitch) and to establish new standards of credit-worthiness. In reviewing its compliance with Section 939A of the Dodd-Frank Act, the division of banks identified one or more sections of chapter 208-512 WAC which need modernization to conform to the Dodd-Frank Act and to also assure "parity" for Washington state-chartered banks and savings banks with national banks in relation to securities investment standards. Accordingly, the division of banks is anticipating repealing WAC 208-512-110 through 208-512-117 inclusive, and to propose and adopt a modern, comprehensive set of rules on bank investment standards set forth in a new chapter 208-512B WAC.

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Propose and adopt rules for a technical clean-up of the existing chapter 208-512 WAC consistent with the rule making to be proposed and adopted above. These rules benefit regulated entities.

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Adopt rules to implement chapters 29 and 64, Laws of 2013, Consumer Loan Act. Rules are required by state law and necessary for consumer protection and are beneficial to or requested or supported by regulated entities. The exemption for retail sales is amended pursuant to changes to the law to limit the exemption to true RISA transactions, not transactions involving the sale of stored value; the licensing requirement section is amended to clarify that a license is required for entities located outside of Washington as well as inside Washington and that the main office, wherever located, must be licensed; and that third party companies providing loan processing and underwriting must license to be in compliance with federal law. A new section on seller financing is added to clarify the process for requesting a license waiver for small numbers of sales of residential real estate financed by the seller of the property; a new section is added requiring the licensing of managers, including branch managers, as mortgage loan originators if they conduct the following activities—Take residential mortgage loan applications, negotiate the terms or conditions of residential mortgage loans or hold themselves out as being able to conduct these activities, supervise loan processor or underwriting employees, or supervise licensed mortgage loan originators; books and records must be maintained for three years; a high school diploma is no longer required to obtain a mortgage loan originator license; the requirements for rate lock agreements are clarified; the use of license names and numbers is clarified; loan servicers must service a loan pursuant to the loan documents unless a change is agreed to by the borrower; the department may require the refund of fees and interest when a lender is not licensed; some amendments clarify and make the rules consistent with the Mortgage Broker Practices Act.

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Adopt rules to implement chapter 64, Laws of 2013, Escrow Agent Registration Act. Rules are required by state law and necessary for consumer protection and are beneficial to or requested or supported by regulated entities. The rules are amended to waive the escrow officer license test for escrow officers conducting activities only in contract collection or escrow transactions involving only personal property and to waive the test for certain prior licensed escrow officers who let their license expire but who remained in the industry. The closure process for offices is clarified; companies have new requirements to report on the status of their trust account; combinations of bonds are allowed to meet the bond requirements; licensee must provide declarations as to the types of employees they employ.

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Adopt rules to implement chapter 30, Laws of 2013, Mortgage Broker Practices Act. Rules are required by state law and necessary for consumer protection and are beneficial to or requested or supported by regulated entities. The definitions are amended to be consistent with federal law; a high school diploma is no longer required to obtain a mortgage loan originator license; the requirements for rate lock agreements are clarified; the use of license names and numbers is clarified; some amendments clarify and make the rules consistent with the Consumer Loan Act.

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Adopt rules to implement chapter 106, Laws of 2013, Uniform Money Services Act. Rules are required by state law and necessary for consumer protection and are beneficial to or requested or supported by regulated entities. Definitions are amended to better define for industry who is an executive officer and that the responsible individual must meet certain eligibility requirements; a licensee must have a bank account for the business at the time of application or must agree to surrender the license within a certain time frame if they are not able to get a bank account for the business; out-of-state authorized delegates are not allowed without prior approval of the department; new companies with no prior history can apply with unaudited financial statements; certain changes in control to the company may result in a requirement for a new application.

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Add new section to chapter 208-444 WAC addressing credit union corporate governance. These new rules will address compensation paid to credit union directors and supervisory committee members. Rules are required by state law to implement chapter 34, Laws of 2013.

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Adopt new rules for corporate governance on the frequency of board meetings (RCW 31.12.225(5)). Rules are required by state law to implement chapter 34, Laws of 2013.

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Amendments and updates to chapter 460-24A WAC regarding investment advisers in light of changes in federal law and North American Securities Administrators Association (NASAA) model rules. Rules are required by federal law.

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Propose and adopt rule amendments under chapter 21.30 RCW, the Commodities Transactions Act, concerning the definition of "precious metals" as requested by the industry. Rules are beneficial to or requested or supported by regulated entities.

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Amendments to various chapters in Title 460 WAC to correct references to the National Association of Securities Dealers (NASD), which is now Financial Industry Regulatory Authority (FINRA). Rules are beneficial to or requested or supported by regulated entities.

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Amendments to WAC 460-44A-502 with updates regarding legends to clarify requirements. Rules are beneficial to or requested or supported by regulated entities.

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Amendments to WAC 460-42A-082 updating references to outdated securities manuals. Rules are beneficial to or requested or supported by regulated entities.

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Amendments to WAC 460-80-140 correcting cross-references to federal law. Rules are beneficial to or requested or supported by regulated entities.

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Propose new rule in chapter 460-23B WAC to clarify requirement to file termination notice for agents of issuers. Rules are beneficial to or requested or supported by regulated entities.

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Amendments to WAC 460-80-300 to allow electronic delivery of franchise disclosure document to franchisees. Rules are beneficial to or requested or supported by regulated entities.

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Amendments to WAC 460-42A-081 to include NASDAQ Global Select, Global, and Capital Markets securities in exemption. Rules are beneficial to or requested or supported by regulated entities.

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Amendments to WAC 460-44A-050 to remove outdated note. Rules are beneficial to or requested or supported by regulated entities.

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Propose new rule in chapter 460-16A WAC to clarify requirements for filing applications to renew securities offering registrations. Rules are beneficial to or requested or supported by regulated entities.

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Propose amendments to WAC 460-44A-506 to update cross references to federal law. Rules are beneficial to or requested or supported by regulated entities.