Additional Bills Tracked in the 2013 Session

The NWCUA legislative team is constantly engaged in policy advancement and tracked numerous additional bills of interest to credit unions.

Selections of bills passed and signed into law:


WHAT THE MEASURE DOES: Addresses condo liens, fixing the issue of condominium associations having super lien priority. The bill clarifies that where a condominium association uses its super lien priority to foreclose on a unit owner for unpaid assessments, the lender’s priority is not extinguished for failing to pay off the association’s lien.

HB1325, SB5207, HB1327, SB5210-

WHAT THE MEASURES DO: A suite of bills by request of the Department of Financial Institutions (DFI) modified provisions relating to banks, savings banks, savings associations, and trust companies. Made technical corrections and updated licensing and enforcement provisions of the Consumer Loan Act. Modified provisions relating to licensing and enforcement of money transmitters. Addressed the regulation of mortgage brokers by the department and clarified DFI’s existing regulatory authority regarding residential mortgage loan modification services.


WHAT THE MEASURE DOES: Requires exchange facilitators to provide clients, and post on their website a disclosure notice which explicitly states that facilitator services are not regulated by any state agency. The bill also requires exchange facilitators to deposit client funds into a separately identifiable account and the client must have access to the current account statement from the financial institution in order to verify that the exchange funds have been deposited by the facilitator.

More background and details on any operation and compliance requirements will be issued by the NWCUA compliance and regulatory affairs departments as appropriate.


Selection of bills that died or failed:

HB1467- Would have modified procedures for the collection of unpaid wages by the Department of Labor & Industries (L&I). As part of the bill, L&I would have been authorized to match its outstanding warrants against deposit accounts held by financial institutions registered in Washington State. The Association had significant concerns with this bill creating a new regulatory burden, but ended up supporting a floor amendment that would have required L&I to use the same process that the Department of Revenue (DOR) currently uses to perform data matching with financial institutions.

HB1870- Pertained to credit card surcharging and would have prohibited a person accepting credit cards for the transaction of business from imposing a surcharge for the use of a credit card in lieu of payment by cash, check, or similar means. The substitute version of the bill would have simply required a person that imposes a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check, or similar means to clearly and conspicuously disclose the surcharge.

HB 1173- Would have modified membership and certain procedures and duties of the Financial Education Public-Private Partnership (FEPPP), which the Association is a part of. The bill also would have required the Office of the Superintendent of Public Instruction (OSPI) to make available to all school districts the curriculum for a course or courses in financial education.

SB5191- Would have provided reporting requirements for the assignment and transfer of a real property encumbrance, and modified provisions governing a trustee’s sale. As part of the Foreclosure Work Group which worked with a wide array of stakeholders to pass the Foreclosure Fairness Act (FFA) two years ago, the Association strongly opposed legislation that would again seek to make significant changes to foreclosure laws, outside of the work group.

HB1440- Would have created a new test to determine whether an individual is an independent contractor for purposes of the Employee Fair Classification Act, the Minimum Wage Act, the Wage Payment Act, and laws on prevailing wage, wage deductions, industrial insurance, and unemployment compensation. The Association opposed the bill as it would have allowed for creation of a statutory lien for wage claims that would have priority over all other liens.

HB1440- Would have created the Small Consumer Installment Act and required businesses offering the small consumer installment loan to be licensed and regulated by DFI.

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