HOUSE BILL REPORT
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.
As Passed House:
February 28, 2018
Title: An act relating to the disposition of certain fees collected by the department of financial institutions for the securities division.
Brief Description: Addressing the disposition of certain fees collected by the department of financial institutions for the securities division.
Sponsors: Senators Mullet and Angel; by request of Department of Financial Institutions.
Business & Financial Services: 2/20/18, 2/21/18 [DP];
Appropriations: 2/24/18, 2/26/18 [DP].
Passed House: 2/28/18, 89-9.
HOUSE COMMITTEE ON BUSINESS & FINANCIAL SERVICES
Majority Report: Do pass. Signed by 8 members: Representatives Kirby, Chair; Reeves, Vice Chair; Vick, Ranking Minority Member; Barkis, Bergquist, Blake, Santos and Stanford.
Minority Report: Do not pass. Signed by 3 members: Representatives Walsh, Assistant Ranking Minority Member; Jenkin and McCabe.
Staff: Robbi Kesler (786-7153).
HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: Do pass. Signed by 30 members: Representatives Ormsby, Chair; Robinson, Vice Chair; MacEwen, Assistant Ranking Minority Member; Stokesbary, Assistant Ranking Minority Member; Bergquist, Buys, Caldier, Cody, Fitzgibbon, Graves, Haler, Hansen, Harris, Hudgins, Jinkins, Kagi, Lytton, Manweller, Pettigrew, Pollet, Sawyer, Schmick, Senn, Springer, Stanford, Sullivan, Tharinger, Vick, Volz and Wilcox.
Minority Report: Do not pass. Signed by 3 members: Representatives Chandler, Ranking Minority Member; Condotta and Taylor.
Staff: Linda Merelle (786-7092).
The Department of Financial Institutions (DFI), through its Securities Division, is responsible for the regulation of the securities market in this state. The Securities Division collects various fees for activities such as the registration of securities, licensing fees for securities broker-dealers, advisors and salespersons, filing fees, and other administrative fees. The fees range from $5 for a duplicate license to calculated fees based upon the securities
initial issue price.
The Securities Division must deposit 13 percent of all money received, except as otherwise required to be deposited into the Securities Prosecution Fund, into an account in the custody of the State Treasurer. Money deposited shall be used for costs associated with the proper regulation of individuals and entities as required by the Securities Act, including:
supplies and equipment;
salaries, wages, and utilities;
reserve funds; and
other incidental costs as necessary.
Summary of Bill:
The DFI, through rulemaking, may increase fees specified in RCW 21.20.340, by no more than $15 after a finding that the increase in the fee is necessary to defray the cost of administering the Securities Act.
All money collected that is attributable to the increase in fees implemented by rule must be deposited into the account held in the custody of the State Treasurer for the purpose of administering the Securities Act.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony (Business & Financial Services):
(In support) This bill is the same as the House version that was previously passed by the Committee. The fees have not been increased since 1988, and in some instances since 1965.
Staff Summary of Public Testimony (Appropriations):
(In support) The Securities Division of the Department of Financial Institutions has incurred expenses that exceeded revenue for the past 10 years. The fees for this division were last updated in 1988.
Persons Testifying (Business & Financial Services): Bill Beatty, Department of Financial Institutions.
Persons Testifying (Appropriations): Bill Beatty, Department of Financial Institutions.
Persons Signed In To Testify But Not Testifying (Business & Financial Services): None.
Persons Signed In To Testify But Not Testifying (Appropriations): None.