House of Representatives

HB 2244

private fiduciaries

Sponsors: Representatives Voss: Tully

DPA	Committee on Financial Institutions and Insurance
DPA	Caucus and COW
X	As Transmitted to the Governor

HB 2244 exempts private fiduciaries employed by banks and bank affiliated trust companies from regulation by the Arizona Supreme Court.

History

Current law requires that the Supreme Court regulate all court-appointed private fiduciaries. The Court is required to adopt rules for private fiduciaries that include, at a minimum, a code of conduct, the posting of a cash deposit or surety bond with the Court, minimum qualifications, and registration once every two years. Financial institutions and their employees are exempt from posting a cash deposit or surety bond with the Supreme Court.

Private fiduciaries are further required to submit a full set of fingerprints to the Supreme Court for a criminal background check as a condition of appointment.

Provisions

· Removes language exempting financial institutions from posting a cash deposit or surety bond with the Supreme Court.

· Adds language exempting a bank or bank affiliated trust company from the requirements imposed on private fiduciaries by the Supreme Court under this section.

· Specifies that the exemption does not prevent the Superior Court from appointing a bank or bank affiliated trust company as a private fiduciary.

· Removes language defining financial institution.

· Modifies definition of private fiduciary by deleting the section of law that distinguishes between a person employed by a financial institution as a private fiduciary and the employees that work under the fiduciary’s supervision.

· Restores existing law exempting financial institutions from posting a cash deposit or surety bond with the Supreme Court.

· States that the exemption from the requirements imposed on private fiduciaries by the Supreme Court applies to banks with trust powers and bank affiliated trust companies.

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44th Legislature

Second Regular Session 2 May 2, 2001

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