Legislature(2001 - 2002)
04/25/2001 01:24 PM House JUD
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 157 - TRUST COMPANIES & FIDUCIARIES Number 0073 CHAIR ROKEBERG announced that the first order of business would be HOUSE BILL NO. 157, "An Act relating to trust companies and providers of fiduciary services; amending Rules 6 and 12, Alaska Rules of Civil Procedure, Rule 40, Alaska Rules of Criminal Procedure, and Rules 204, 403, 502, 602, and 611, Alaska Rules of Appellate Procedure; and providing for an effective date." [Before the committee was CSHB 157(L&C).] Number 0078 REPRESENTATIVE LISA MURKOWSKI, Alaska State Legislature, sponsor, noted that the [statutes related to trust companies] have been around since 1949 and have remained practically unchanged since then. She suggested that it is time to update these statutes, which she referred to [informally] as the "Trust Company Act." Via HB 157, regulations pertaining to trust companies will be put into place; up to this point in time, the [Division of Banking, Securities & Corporations (DBSC)] has been regulating Alaska's few trust companies by referencing the statutes that pertain to banking. She remarked that she and the DBSC have been working together on this legislation since her first term of office, and now the DBSC, the banking industry, and all other persons who have looked at HB 157 are comfortable with it. In conclusion, HB 157 will simply provide a regulatory process for the trust companies already in Alaska, and companies that are being encouraged to come to Alaska. CHAIR ROKEBERG, after noting that there are two proposed amendments, asked the sponsor whether she has objections to either. REPRESENTATIVE MURKOWSKI said she does not. Number 0336 TERRY LUTZ, Chief Financial Institution Examiner, Central Office, Division of Banking, Securities & Corporations (DBSC), Department of Community & Economic Development (DCED), said that he thinks HB 157 is an important bill and is badly needed. REPRESENTATIVE COGHILL asked whether there would be "any major earthquakes within the industry as a result of defining all of these responsibilities." MR. LUTZ said, "We really don't know; we've put out as much information as we could, and [gotten] as may comments as we could .... One can only guess what might come out of the woodwork." He opined that HB 157 is a good product and would not be "stepping on any toes." REPRESENTATIVE MURKOWSKI added that those who work with trust companies have been involved with the DBSC every step of the way; therefore, she opined, no one is anticipating any great shakeups. CHAIR ROKEBERG also affirmed that those in the legal community who work on trusts have been intimately involved in developing HB 157. REPRESENTATIVE COGHILL asked whether HB 157 puts a higher barrier on entrepreneurs who might want to enter this industry. MR. LUTZ opined that HB 157 would make the process of entering the industry easier. Although the "numbers are higher for capital standards," he noted, the director can adjust "the capital." Number 0611 CHAIR ROKEBERG closed the public testimony on HB 157. He then asked for an explanation of Amendment 1 [22-LS0139\O.1, Bannister, 4/25/01], which read: Page 3, following line 27: Insert a new paragraph to read: "(6) handles escrow transactions and is a title insurance company that has a certificate of authority issued under AS 21.09, a title insurance limited producer that is licensed as required by AS 21.66.270, or an employee of the title insurance company or title insurance producer when acting in the scope of the employee's employment; in this paragraph, (A) "escrow transaction" has the meaning given in AS 34.80.090; (B) "title insurance company" has the meaning given in AS 21.66.480; (C) "title insurance limited producer" has the meaning given in AS 21.66.480;" Renumber the following paragraphs accordingly. Page 5, line 5: Delete "(a)(1) or (8)" Insert "(a)(1) or (9)" REPRESENTATIVE MURKOWSKI explained that Amendment 1 would clarify how title insurance companies fit into HB 157. CHAIR ROKEBERG noted that this new subsection (6) "just refers to title insurance companies and the escrow transactions relating to those." He added that current statute makes a distinction between escrow agents and title companies acting as escrow agents. Number 0708 CHAIR ROKEBERG made a motion to adopt Amendment 1. There being no objection, Amendment 1 was adopted. Number 0722 CHAIR ROKEBERG referred to Conceptual Amendment 2, which read [original punctuation provided]: Page 5, Line 2, after "settlors" Delete ";" Insert: "." Page 5, Line 2, after "settlors" Insert: "However, the limitation on the number of settlors listed above may be changed by the Dept by regulation or order in accordance with (b), of this section." Page 5, Line2 Delete: "in" Insert: "In" Page 5, Line 5, after "(8)" Insert: or (17) CHAIR ROKEBERG noted that Conceptual Amendment 2 allows the DCED flexibility when it is appropriate in a particular situation to have more than ten settlors. Number 0779 CHAIR ROKEBERG made a motion to adopt Conceptual Amendment 2. There being no objection, Conceptual Amendment 2 was adopted. REPRESENTATIVE BERKOWITZ asked whether HB 157 is based on model legislation. MR. LUTZ explained that the DBSC used a combination of the model act provided by the Conference of State Bank Supervisors (CSBS), and trust acts in place in 15-20 other states. He noted that he has not encountered any strenuous objections to HB 157. Over the years, he explained, there have been a lot of questions and amendments to the legislation, but the entities involved have indicated that they are now comfortable with the result. Number 0907 REPRESENTATIVE MEYER moved to report CSHB 157(L&C), as amended, out of committee with individual recommendations and the accompanying fiscal note. There being no objection, CSHB 157(JUD) was reported from the House Judiciary Standing Committee.
| Document Name | Date/Time | Subjects |
|---|