WSR 17-01-066
[Filed December 15, 2016, 12:12 p.m.]
Semi-Annual Agenda for Rules Under Development
January 1 – June 30, 2017
Adopt 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 lawyers rules of professional conduct to participant behavior; a requirement to provide contact information for represented parties; expansion of the discovery rule; and a rule on the validity of an unsworn declaration. This rule is beneficial to or requested or supported by the regulated entities, local governments or small businesses that it affects.
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:
Frequency of trust company examinations.
Insurance requirements.
Background check requirements for officers, directors, and principal shareholders.
Additional "outside" director requirements.
Call report definitions and submission requirements.
Capital requirements.
Pledging prohibitions and exceptions.
Patriot Act, Bank Secrecy Act, and anti-money laundering requirements.
These rules are required by state law.
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 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.
"Lending Limits" Rule re: Derivatives & Securities Lending. Decide whether Office of the Comptroller of the Currency 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.
Propose and adopt provisions for a technical cleanup of the existing chapter 208-512 WAC and provide for consistency of this chapter with Section 939[A] of the Dodd-Frank Act with respect to qualified bank investments. This rule is necessary to conform with federal law.
Complete the rule making to repeal chapter 208-424 WAC, Regulatory relief for small credit unions. Chapter 208-424 WAC is not compliant with recent amendments to the Credit Union Act and federal policy interpretations. These rule changes are mandated by amendments to state law, and by federal policy.
Resume rule making to update chapter 208-460 WAC, Member business loans (MBL), to be more consistent with the federal MBL rule and to modernize the state MBL rule. These rules are requested by regulated entities.
Amendments to the crowdfunding rules contained in chapter 460-99C WAC and the limited offering exemption under WAC 460-44A-504. On October 31, 2016, the Securities and Exchange Commission (SEC) adopted amendments to federal Rules 147 and 504. In addition, the commission created a new intrastate offering exemption in Rule 147A. 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 adopted a number of amendments to Rule 147 to modernize it. Further, the SEC increased the offering amount limit under federal Rule 504 from $1 to $5 million. 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.
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 has ceased publishing its securities manual. Rules are beneficial to or requested or supported by regulated entities, local governments or affected small businesses.