Legislature(2021 - 2022)BARNES 124
05/10/2022 09:00 AM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB301 | |
| HB405 | |
| HB406 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 405 | TELECONFERENCED | |
| += | HB 406 | TELECONFERENCED | |
| += | HB 408 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 301 | TELECONFERENCED | |
HB 405-ESTABLISHMENT OF TRUSTS
9:08:00 AM
CO-CHAIR SPOHNHOLZ announced that the next order of business
would be HOUSE BILL NO. 405, "An Act relating to the
establishment of trusts; requiring the filing of certain trust
information; and requiring compliance with a federal law."
9:09:28 AM
CO-CHAIR FIELDS, to give context on the [three] amendments about
to be proposed, recounted that the committee listened to input
from various stakeholders. He offered his appreciation to the
committee for taking up the amendments to provide a template
that future legislatures can work with, given it is too late
this session to move the bill. He encouraged stakeholders to
again weigh in after the amendments to relate the extent to
which the amendments resolve suggestions and concerned.
9:09:56 AM
CO-CHAIR FIELDS moved to adopt Amendment 1 to HB 405, labeled
32-LS1620\B.1, Bannister, 4/26/22, which read:
Page 1, line 1, following the first occurrence of
"of":
Insert "certain"
Page 2, line 2:
Following "to":
Insert "certain"
Following "trusts;":
Insert "relating to Alaska Native corporation
settlement trusts;"
Delete "requiring"
Insert "relating to"
Page 1, line 5, through page 2, line 6:
Delete all material and insert:
"* Section 1. AS 13.36.005 is amended by adding a
new subsection to read:
(c) If the establishment or relocation of a
trust is subject to AS 13.36.030, the trust must be
established or relocated under AS 13.36.030 before
registering under this section."
Page 4, following line 1:
Insert a new subsection to read:
"(g) This section does not apply to a trust that
constitutes a settlement trust as defined in 43 U.S.C.
1602 (Alaska Native Claims Settlement Act), or to a
settlor, trustee, or beneficiary of a trust that
constitutes a settlement trust as defined in 43 U.S.C.
1602 (Alaska Native Claims Settlement Act)."
Reletter the following subsections accordingly.
9:10:00 AM
CO-CHAIR SPOHNHOLZ objected for the purpose of explanation.
9:10:06 AM
EVAN ANDERSON, Staff, Representative Zack Fields, Alaska State
Legislature, on behalf of Co-Chair Fields, sponsor of the
amendment, explained that Amendment 1 was created after
conversations with several Alaska Native regional corporations.
They stated that Alaska Native Settlement Trusts (ANSTs) were
established through the 1971 Alaska Native Claims Settlement Act
(ANCSA), but that these trusts were largely not utilized until
the 2017 Tax Cuts and Jobs Act (TCJA). From these
conversations, they continued, it seemed clear that the
reporting requirements being sought for all trusts through HB
405 should not count for these settlement trusts. Therefore,
Mx. Anderson said, Amendment 1 would create a broad exemption
for those settlement trusts.
9:11:17 AM
CO-CHAIR FIELDS offered his understanding that Amendment 1 would
entirely resolve any concerns had by Alaska Native corporations.
He requested that the corporations let him know if any further
refinement is needed.
CO-CHAIR SPOHNHOLZ expressed her appreciation for the intent of
Co-Chair Fields in working on HB 405, as well as the
collaborative process in fine tuning the legislation to prevent
creating any unintentional harm. She noted that the committee
is seeking to improve the bill through these amendments and then
work with stakeholders on further refinements over the interim.
9:12:06 AM
CO-CHAIR SPOHNHOLZ removed her objection to Amendment 1. There
being no further objection, Amendment 1 was adopted.
9:12:16 AM
CO-CHAIR FIELDS moved to adopt Amendment 2 to HB 405, labeled
32-LS1620\B.2, Bannister, 4/28/22, which read:
Page 3, lines 16 - 17:
Delete "within 30 days after"
Insert "on or before January 30 of the calendar year
that follows the calendar year in which"
9:12:18 AM
CO-CHAIR SPOHNHOLZ objected for the purpose of explanation.
9:12:23 AM
MX. ANDERSON, on behalf of Co-Chair Fields, sponsor of the
amendment, noted that Amendment 2 came after feedback from
representatives of the trust industry. They said the bill had a
strong reporting requirement for any time changes are made to a
trust, such as a new beneficiary or new settlor. For example,
they related, the committee heard testimony that every time a
new grandchild is born a trust might be subject to fines. So,
Amendment 2 was built in direct response to that feedback, they
said. The disclosure requirement would instead be on an annual
basis any changes would be reported by January 30 of the
following year to the Department of Commerce, Community, and
Economic Development (DCCED). This would line it up with the
federal tax cycle, Mx. Anderson continued, making it reliable
and easy to plan for. They noted that people can also report
changes at the time those changes occur [rather than waiting
until January 30 of the following year].
MX. ANDERSON, in response to Co-Chair Spohnholz, confirmed that
this is just when there is a change to the trust, this is not a
requirement to report annually or file documents on an annual
basis if there haven't been any changes to the trust.
9:14:02 AM
CO-CHAIR SPOHNHOLZ removed her objection to Amendment 2. There
being no further objection, Amendment 2 was adopted.
9:14:11 AM
CO-CHAIR FIELDS moved to a adopt Amendment 3 to HB 405, labeled
32-LS1620\B.3, Bannister, 4/29/22, which read:
Page 1, line 1, following the first occurrence of
"of":
Insert "certain"
Page 1, line 2:
Following "to":
Insert "certain"
Following "trusts;":
Insert "relating to charitable trusts;"
Delete "requiring"
Insert "relating to"
Page 4, following line 1:
Insert a new subsection to read:
"(g) This section does not apply to a trust that
is described as a charitable trust under 26 U.S.C.
4947(a)(1) (Internal Revenue Code of 1954)."
Reletter the following subsections accordingly.
9:14:13 AM
CO-CHAIR SPOHNHOLZ objected for the purpose of explanation.
9:14:15 AM
CO-CHAIR FIELDS explained Amendment 3 would exempt charitable
trusts, which was a suggestion made by stakeholders.
9:14:36 AM
CO-CHAIR SPOHNHOLZ removed her objection to Amendment 3. There
being no further objection, Amendment 3 was adopted.
CO-CHAIR SPOHNHOLZ said the committee looks forward to any
feedback that stakeholders want to provide on the legislation,
as amended.
[HB 405 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 405 Completed Amendment Packet_5.10.22.pdf |
HL&C 5/10/2022 9:00:00 AM |
HB 405 |
| HB 406 Completed Amendment Packet_5.10.22.pdf |
HL&C 5/10/2022 9:00:00 AM |
HB 406 |