WSR 18-01-094
[Filed December 18, 2017, 1:17 p.m.]
Semi-Annual Agenda for Rules under Development
January 1 – June 30, 2018
Public Records Act. Finalize adoption of rules under chapter 208-12 WAC (public records) to be consistent with recent amendments to the Public Records Act, chapter 42.56 RCW (EHB 1595, chapter 304, Laws of 2017). The rules will be amended to adopt the statutory fee schedule, update information that is out-of-date (e.g., agency address), update statutory references that are out-of-date, add some definitions, and update information related to the public records request process. Technical amendments may be made and there will likely be some small housekeeping changes as well. This chapter applies to all divisions within the agency.
Banks and trusts. Amend chapter 208-536 WAC for technical clean-up 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 checks 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 antimoney laundering requirements.
Compatibility with OCC collective investment trust fund rules.
Other miscellaneous changes including updating to gender-neutral language, updating internal citations to RCW and WAC, and any other technical clean up, as needed.
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.
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.
Member business lending. On March 14, 2016, the National Credit Union Administration (NCUA) published in the Federal Register its approved final rule amending NCUA's member business loans rule (federal MBL rule) to provide federally insured credit unions (including Washington state-chartered credit unions), as NCUA describes it, "greater flexibility and individual autonomy in safely and soundly providing commercial and business loans to serve members." DFI is engaged and will continue rule making to update the state MBL to be more consistent with the federal MBL rule and to modernize the state MBL rule.
Low income designated credit unions. Initiate rule making on low-income designated credit unions in RCW 31.12.413 to authorize a five year period to come back into compliance if the credit union no longer meets the criteria for the designation, similar to requirements for federal credit unions as shown below. 12 C.F.R. 701.34 (a)(4) reads: If NCUA determines a low-income designated federal credit union no longer meets the criteria for the designation, NCUA will notify the federal credit union in writing, and the federal credit union must, within five years, meet the criteria for the designation or come into compliance with the regulatory requirements applicable to federal credit unions that do not have a low-income designation. The designation will remain in effect during the five-year period. If a federal credit union does not requalify and has secondary capital or nonmember deposit accounts with a maturity beyond the five-year period, NCUA may extend the time for a federal credit union to come into compliance with regulatory requirements to allow the federal credit union to satisfy the terms of any account agreements. A federal credit union may appeal NCUA's determination that the credit union no longer meets the criteria for a low-income designation to the board within sixty days of the date of the notice from NCUA. An appeal must be submitted through NCUA.
Electronic offering documents and electronic signatures. 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.
Investment adviser rules. Amendments to investment adviser rules contained in chapter 460-24A WAC to adopt newly promulgated NASAA model rules applicable to investment advisers, make revisions to reflect changes in state and federal law, and make other clarifying and technical updates.
Municipal securities. Amendment of WAC 460-42A-030, which establishes an exemption from registration for municipal securities that are highly rated and to make technical corrections.
Franchise registration. Amendment to chapter 460-80 WAC to mandate electronic filing of applications for franchise registration.