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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 checks 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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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 & Poor's, Moody's, and Fitch) and to establish new standards of creditworthiness. 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. These rules are beneficial to or requested or supported by regulated entities, and are either required by federal law, or to eliminate rule provisions superseded by more recent state statute.

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"Lending limits" rule re: Derivatives and securities lending. Decide whether Office of the Comptroller of the Currency (OCC) revisions in this area are necessary to be adopted for Titles 30A and 32 RCW banks, and if so, propose and make amendments to chapter 208-512A WAC. This would be necessary to bring Titles 30A and 32 RCW banks into parity with national banks unless existing state rules would benefit Titles 30A and 32 RCW banks more. These rules are beneficial to or requested or supported by regulated entities.

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Propose and adopt rules for a technical cleanup of the existing chapter 208-512 WAC consistent with the rule making to be proposed and adopted above. These rules are beneficial to or requested or supported by regulated entities.

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Consumer Loan Act - adopt rules under chapter 208-620 WAC to implement chapter 229, Laws of 2015. The amended rules will be based on changes to the law implementing liquidity, operating reserves and tangible net worth requirements for residential loan servicers. These rules are required by federal or state law.

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Amendments to modernize chapter 208-460 WAC, Member business loans, and provide similar authority as authorized for federal chartered credit unions (FCU). The rule for FCUs was amended in 2016 with an effective date of January 1, 2017, eliminated many requirements, and will provide more flexibility to make member business loans. The state rule was last updated in 2001 and contains requirements that have been removed for FCUs. Modernizing the state rule will provide parity between state and FCUs. This rule making is by request of the credit union industry and is beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects.

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Amendments to the crowdfunding rules contained in chapter 460-99C WAC and the limited offering exemption under WAC 460-44A-504. On October 30, 2015, the Securities and Exchange Commission (SEC) proposed amendments to federal Rule 147 and federal Rule 504. The Washington crowdfunding rules contained in chapter 460-99C WAC are currently only available to offerings that are exempt federally under Section 3 (a)(11) of the Securities Act of 1933 and Rule 147 adopted thereunder. In addition, the limited offering exemption under WAC 460-44A-504 is premised on the offering being exempt under federal Rule 504 of Regulation D. The SEC has proposed a number of amendments to Rule 147 to modernize it. Further, the SEC has proposed to increase the offering amount limit under federal Rule 504 from $1 million to $5 million. Should the SEC adopt any of the proposed amendments to either Rule 147 or Rule 504, the division plans to amend its own related rules in the interest of facilitating capital formation. Rules are beneficial to or requested or supported by regulated entities, local governments or affected small businesses.

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Amendments to WAC 460-10A-160 and 460-44A-100 to update the exemption from securities registration for transactions in securities of an issuer that has a class of securities listed in a nationally recognized securities manual. The securities division plans to update the manual exemption in light of the fact that the publisher of one of the securities manuals referenced in this exemption, Standard & Poor's, has announced that it will cease publishing its securities manual. Rules are beneficial to or requested or supported by regulated entities, local governments or affected small businesses.