04/18/2022 03:15 PM House LABOR & COMMERCE

                 HB 405-ESTABLISHMENT OF TRUSTS                                                                             
                                                                                                                                
3:25:08 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that  the final  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."                                                                      
                                                                                                                                
3:25:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS  moved to adopt the proposed  committee substitute                                                              
(CS) for HB  405, Version 32-LS1620\B, Bannister,  4/14/22, as the                                                              
working  document.    There  being no  objection,  Version  B  was                                                              
before the committee.                                                                                                           
                                                                                                                                
3:25:32 PM                                                                                                                    
                                                                                                                                
EVAN  ANDERSON, Staff,  Representative Zack  Fields, Alaska  State                                                              
Legislature, on  behalf of  Representative Fields, prime  sponsor,                                                              
offered the  summary of changes for  HB 405, Version B  [hard copy                                                              
included  in  the  committee  packet].    He  explained  that  the                                                              
changes  largely   came  about   from  suggestions   from  various                                                              
stakeholders.   He  pointed out  that the  major changes  provided                                                              
more clarity in  the statute.  He paraphrased from  the summary of                                                              
changes [copy  included in  the committee  packet], which  read as                                                              
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     1. Ver  G: p  1. Line  1. Amends  bill title to  include                                                                   
     "relocation of foreign trusts"                                                                                             
                                                                                                                                
     2. Ver  G: p  1. Line  2. Amends  bill title to  include                                                                   
     "relating to trusts"                                                                                                       
                                                                                                                                
     3.  Ver G:  p  2.  lines 1,  4.  Re-words Section  1  to                                                                   
     clarify   the  court  filing   requirements  for   trust                                                                   
     establishment.  Requires disclosure  of  an address  for                                                                   
     both corporate and individual trustees.                                                                                    
                                                                                                                                
     4. Ver  G: p 2. lines  8, 11-13. adds "or  relocation of                                                                   
     trust" to  expand DCCED's  statutory authority  to treat                                                                   
     trusts relocating  to the State of Alaska  as new trusts                                                                   
     &  require both  new  and  relocating trusts  to  submit                                                                   
     beneficial ownership information.                                                                                          
                                                                                                                                
     5.  Ver G:  p 2.  Line 15.  Requires  disclosure of  the                                                                   
     "trust address"                                                                                                            
                                                                                                                                
     6. Ver G: p  2. Lines 17-18. Adds a new  line to require                                                                   
     disclosure  of information  for  the  person filing  the                                                                   
     trust establishment  document, previously,  "applicant."                                                                   
     Lines  19-31. Requires  disclosure  for  this person  of                                                                   
     the  legal name,  address,  alias, state  or country  of                                                                   
     organization, and  a legal identifier, such as  a Tax ID                                                                   
     number.                                                                                                                    
                                                                                                                                
     7.  Ver G:  p  3. Lines  1-9. Provides  definitions  and                                                                   
     requires  disclosure   of  name  and  address   for  the                                                                   
     following categories:  trustee, protector,  beneficiary,                                                                   
     grantor, and settlor.                                                                                                      
                                                                                                                                
     8. Ver G:  p 3. Lines 10-11. Requires disclosure  of any                                                                   
     other name of the trust being established.                                                                                 
                                                                                                                                
     9.  Ver G:  p  3. Lines  15-22. Requires  disclosure  of                                                                   
     changes  to the  legal structure  of a  trust within  30                                                                   
     days.  This   change  will  keep  DCCED's   registry  of                                                                   
     beneficial  ownership information  current.  Establishes                                                                   
     a $500 fine for non-compliance.                                                                                            
                                                                                                                                
     10.  Ver G:  p 3.  Lines 26-28.  Allows  DCCED to  share                                                                   
     information  with  another  department or  division  for                                                                   
     enforcement and verification purposes.                                                                                     
                                                                                                                                
     11.  Ver G: p  3. Lines  29-31. Classifies  all new  and                                                                   
     relocating trusts  as "reporting company" to  align with                                                                   
     federal regulatory framework.                                                                                              
                                                                                                                                
     12. Ver  G: p  4. Lines 4-5.  Provides a definition  for                                                                   
     "address."  13.  Ver G:  p  4. Lines  16-19.  Conforming                                                                   
     change   to  Section   A  of   this  statute;   confirms                                                                   
     eligibility  of  foreign  trusts  to  establish  in  the                                                                   
     State of Alaska.                                                                                                           
                                                                                                                                
     14.  Ver  G: p  4.  Lines 20-23.  Conforming  change  to                                                                   
     Section  C  of this  statute;  confirms  eligibility  of                                                                   
     foreign trusts to establish in the State of Alaska.                                                                        
                                                                                                                                
     15.  Ver  G:  p 4.  Lines  27-30.  Defines  and  exempts                                                                   
     'testamentary  trusts' created  prior  to the  effective                                                                   
     date  of   this  legislation  from  the   new  reporting                                                                   
     framework.  All   testamentary  trusts   established  by                                                                   
     wills   filed  after   the   effective   date  of   this                                                                   
     legislation  will  be  subject   to  the  new  reporting                                                                   
     requirements.                                                                                                              
                                                                                                                                
3:32:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ announced that HB 405 was held over.