04/14/2017 01:00 PM House JUDICIARY

         HB 208-TRUSTS; COMM PROP TRUSTS; POWERS OF APPT                                                                    
                                                                                                                                
1:51:20 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced  that the next order of  business would be                                                               
HOUSE BILL  NO. 208,  "An Act  relating to  trusts and  powers of                                                               
appointment; and providing for an effective date."                                                                              
                                                                                                                                
CHAIR  CLAMAN advised  that  Representative  Kopp had  previously                                                               
requested that the  Department of Law (DOL) offer  an analysis of                                                               
its fiscal note.                                                                                                                
                                                                                                                                
1:51:53 PM                                                                                                                    
                                                                                                                                
RENEE WARDLAW,  Assistant Attorney  General, Commercial  and Fair                                                               
Business Section,  Department of Law,  said she was  available to                                                               
answer questions regarding the fiscal note.                                                                                     
                                                                                                                                
CHAIR  CLAMAN   reiterated  that  during  a   previous  committee                                                               
hearing, Representative  Kopp had  requested a brief  analysis of                                                               
the  fiscal note,  and that  questions may  be prompted  from her                                                               
analysis.                                                                                                                       
                                                                                                                                
MS. WARDLAW responded that this  bill does not necessarily affect                                                               
the Department of  Law (DOL), and as such the  DOL had requested,                                                               
prior  to  this  hearing,  that Legislative  Legal  and  Research                                                               
Services have someone online to speak  to a summary of the fiscal                                                               
note.  She  said the only information she could  offer is limited                                                               
to what is contained in the fiscal note.                                                                                        
                                                                                                                                
1:53:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP noted  that the DOL fiscal  note was detailed                                                               
and due to the technical nature  of the bill asked whether it was                                                               
legally sound.                                                                                                                  
                                                                                                                                
MS. WARDLAW asserted  that this bill is legally  sound based upon                                                               
DOL's review.   She explained  there are two sections  within DOL                                                               
relating  to trusts,  and she  is  more familiar  with Title  26.                                                               
Therefore, she  said she was  hesitant to offer  information with                                                               
regard to  Title 13,  as opposed  to information  regarding Title                                                               
26.                                                                                                                             
                                                                                                                                
1:54:04 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  noted  that  the  bill  sponsor  did  contact  all                                                               
committee members  to determine whether anyone  was interested in                                                               
offering an amendment.   He related that no one  was interest and                                                               
thus did not previously notice amendments.                                                                                      
                                                                                                                                
1:55:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP  referred to  a  spreadsheet  by Peak  Trust                                                               
Company, titled "Reasons to Decant  a Trust," and related that it                                                               
offers  five  different   scenarios  as  to  why   this  bill  is                                                               
important.  This legislation, he  commented, will update Alaska's                                                               
trust statutes, and  keep Alaska in a leadership  role for estate                                                               
planning and investments to continue in Alaska.                                                                                 
                                                                                                                                
1:56:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN commented  that  there were  a number  of                                                               
letters of support.                                                                                                             
                                                                                                                                
REPRESENTATIVE  REINBOLD  commented   that  she  appreciated  the                                                               
explanation  of  the  bill  from  the  Peak  Trust  Company,  the                                                               
multiple letters of  support, and the bill  sponsor visiting each                                                               
office, which  was a  good example of  how the  committee process                                                               
should work and  how it was handled in this  committee.  She said                                                               
she supports the legislation.                                                                                                   
                                                                                                                                
REPRESENTATIVE FANSLER  thanked the bill sponsor  for bringing it                                                               
forward, and  related that  he is  extremely leery  anytime there                                                               
are changes in  trust and estate laws, especially  at the request                                                               
of  the  industry.     He  pointed  out  that   Alaska  has  well                                                               
established and longstanding  trust and estate laws  and any time                                                               
the legislature starts to fiddle  with something it creates great                                                               
pause for  him, and requires the  highest level of review  at all                                                               
times.                                                                                                                          
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS noted that  the subject is Greek to                                                               
him and he doesn't really understand  what is being passed out of                                                               
committee.   He pointed to  the lack of opposition  and commented                                                               
that it  would have been  helpful for him  to have a  third party                                                               
assess the  nature of  the modernization  of trust  laws, explain                                                               
consumer protection, revenue  to the state, and  whether this was                                                               
purely a modernization process.                                                                                                 
                                                                                                                                
2:00:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN agreed  that  modernization  was part  of                                                               
this  legislation and  said he  echoes Representative  Fansler in                                                               
that anytime  someone offers a bill  and says not to  worry about                                                               
the  bill because  it  is just  modernizing  things, he  worries.                                                               
Another aspect, he said, is that  each state has its own laws and                                                               
depending upon  the quality and  flexibility of those  laws there                                                               
would be  migrations of professions  and capital.   Therefore, it                                                               
is not just modernization that is  taking place in a bill such as                                                               
this,  it  is also  looking  at  how  competitive Alaska  can  be                                                               
against  other  states  for  market share  in  order  to  attract                                                               
investment into Alaska.                                                                                                         
                                                                                                                                
2:01:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX   commented  that  she  could   see  where                                                               
Representative  Fansler was  coming  from, and  noted that  "this                                                               
trust law stuff" is not generally  a matter of hugely rich people                                                               
on one side  and hugely poor people on the  other side.  Perhaps,                                                               
she  commented,   the  hugely  rich  people   may  have  lawyers,                                                               
lobbyists,  and  so forth;  therefore,  it  is the  legislature's                                                               
obligation to  be certain the  legislation is not  skewed against                                                               
poor  people.   The  whole  trust  field  is  made up  of  fairly                                                               
affluent   sophisticated  people,   and   while   trust  law   is                                                               
complicated,  there  is  the  fact that  the  committee  did  not                                                               
receive one single letter of opposition.                                                                                        
                                                                                                                                
2:02:49 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  said he  supports  the  bill,  and referred  to  a                                                               
previous  question regarding  how this  bill fit  with the  other                                                               
states  which, he  said, gets  to  the competitiveness  question.                                                               
There certainly  are areas  of the law  where the  legislature is                                                               
well served to wait until the  movement of an issue starts coming                                                               
in from  all of  the states.   For  example, the  revised Uniform                                                               
Fiduciary  Access to  Digital Assets  Act, from  the Uniform  Law                                                               
Commission, was a  response to people bringing  forward issues of                                                               
people having  access to information  on the internet.   In those                                                               
types of instances,  the legislature is asked that  the laws keep                                                               
up  with society,  rather than  the  laws leading  society.   The                                                               
folks involved in trusts have an  interest in Alaska being at the                                                               
forefront  of  the  most  modern  laws  because  that  brings  in                                                               
opportunities   for   the   state,  investment   companies,   and                                                               
individuals  who  set up  trusts.    For  example, the  State  of                                                               
Delaware made  a point of  becoming the leader in  corporate law,                                                               
and has gotten  on a cycle of  being at the head of  the curve in                                                               
being a  good place for corporations  to operate.  This  bill, he                                                               
explained,  is an  instance in  which legislators  are trying  to                                                               
make  it possible  for  the Alaska  trust laws  to  draw in  more                                                               
trusts to  incorporate in Alaska, thereby  bringing opportunities                                                               
to Alaskans  they wouldn't have had  if Alaska was in  49th place                                                               
in terms of sophistication of trust laws.                                                                                       
                                                                                                                                
CHAIR CLAMAN agreed with Representative  LeDoux that he, too, was                                                               
struck by  the fact there  were zero  letters of opposition.   He                                                               
said he  was also  struck when the  practicing attorney  from the                                                               
Law  Offices of  Faulkner  Banfield discussed  her  work in  this                                                               
area, and  how Alaska's ability to  stay in the top  two or three                                                               
states  has  helped  her  business and  her  ability  to  provide                                                               
service  to Alaskans  looking for  this type  of work.   For  all                                                               
those reasons, he said he supports this bill.                                                                                   
                                                                                                                                
2:05:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP  moved to report HB  208, Version 30-LS0770\A                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying  fiscal notes.   There  being no  objection, HB  208                                                               
passed out of committee.