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Finalize adoption of rules under chapter 208-08 WAC to modernize the chapter and make it more procedurally efficient. This chapter of rules applies to all divisions within the agency. Additional changes to the rules will be made for need, clarity and consistency, and to guide participants. Examples include a rule to provide for electronic submission of documents; application of the Washington rules of professional conduct to participant behavior; a requirement to provide contact information for represented parties; the administrative law judge's authority under the chapter; expansion of the discovery rule; and a rule on the validity of an unsworn declaration.

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Amend chapter 208-536 WAC for technical cleanup and compatibility with the enabling provisions of Title 30B RCW, Washington Trust Institutions Act, which became effective on January 5, 2015. Contemplated revisions include additional clarification on:

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Frequency of trust company examinations.

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Insurance requirements.

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Background check requirements for officers, directors, and principal shareholders.

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Additional "outside" director requirements.

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Call report definitions and submission requirements.

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Capital requirements.

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Dividends.

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Pledging prohibitions and exceptions.

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Patriot Act, Bank Secrecy Act, and antimoney laundering requirements.

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Currently amending 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 & Poor's, 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.

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Currently amending "lending limits" rule regarding derivatives and securities lending, chapter 208-512A WAC. Making some revisions that are congruent to the Office of the Comptroller of the Currency, which are necessary to be adopted for Titles 30A and 32 RCW banks. This is necessary to bring Titles 30A and 32 RCW banks into parity with national banks.

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Currently drafting and proposing to adopt rules for a technical cleanup, modernization, or repeal of certain outdated or inapplicable sections of the above-mentioned chapters 208-512 and 208-512A WAC. Amendments will be made to change citations from "Title 30" to "Title 30A" stemming from recodification of the Commercial Bank Act, 2014 c 37 § 1-701. Other miscellaneous changes include changing over to gender-neutral language, updating internal citations to RCW and WAC, and any other technical cleanup, as needed.

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Consumer Loan Act. Begin rule making under chapter 208-620 WAC to allocate the residential mortgage loan servicing requirements in the act between investors, master servicers and subservicers.

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Uniform Money Services Act. Begin rule making under chapter 208-690 WAC to implement chapter 30, Laws of 2017. Examples include clarifying, if necessary, the new definition of virtual currency; further clarifying the payment processing and other exemptions; delineating when a currency exchange company must have a bond for their online activity; further clarifying the new time frame by which companies must identify and report their authorized delegates to the department; further clarifying the permissible investment requirements for companies that transmit virtual currency; and further clarifying the disclosure requirements for virtual currency transmitters.

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Resume rule making to update chapter 208-460 WAC, Member business loans (MBL), to be more consistent with the federal MBL rule in 12 C.F.R. 723, which federal amendments became effective on January 1, 2017, and to modernize the state MBL rule which has not been amended since June 1, 2001.

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Amendments to the crowdfunding rules contained in chapter 460-99C WAC. On October 31, 2016, the Securities and Exchange Commission adopted amendments to federal Rule 147 and federal Rule 504. In addition, on April 25, 2017, Governor Inslee signed into law HB 1593, chapter 113, Laws of 2017, which amends the state crowdfunding exemption in the Securities Act of Washington. The rules contained in chapter 460-99C WAC implement the state crowdfunding exemption. The department of financial institutions, in the interest of facilitating capital formation, proposes to amend these rules to ensure coordination of our rules with federal regulations and the new state laws.

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Amendments to the rules relating to the Washington small business retirement marketplace contained in chapter 208-710 WAC. Governor Inslee recently signed a bill (SB [SSB] 5675, chapter 69, Laws of 2017) amending the Washington small business retirement marketplace (codified at RCW 43.330.730 through 43.330.750, and 43.320.180). The division is responsible for verifying that the retirement plans that apply to be listed on the marketplace meet the requirements set forth in RCW 43.330.732(7) and 43.330.735. The division intends to amend its rules in chapter 208-710 WAC in order to reflect the recent legislative amendments.

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Amendments to WAC 460-16A-205, which sets forth the North American Securities Administrators Association (NASAA) statements of policy adopted by the securities administrator. Since the rule was last amended, NASAA has recently amended or promulgated statements of policy in connection with state-registered securities offerings. The division intends to amend its rules to reference the updated statements of policy and incorporate a reference to a new statement of policy relating to electronic offering documents and electronic signatures in connection with registered securities offerings.