private fiduciaries

Purpose

Exempts banks and bank affiliated trust companies from private fiduciary regulation by the Arizona Supreme Court.

Background

Court-appointed private fiduciaries are those individuals who are responsible for managing assets of individuals unable to manage their own affairs for various reasons. Currently, the Arizona Supreme Court regulates Arizona’s 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. Additionally, private fiduciaries are required to submit a set of fingerprints to the Supreme Court for a criminal background check as a condition of appointment. Currently, financial institutions and their employees are exempt from posting a cash deposit or surety bond with the Supreme Court. Under H.B. 2244, banks and bank-affiliated trust companies that act as private fiduciaries are exempted from specified requirements currently in statute and from regulatory oversight by the Arizona Supreme Court.

According to Joint Legislative Budget Committee staff, there is no state general fund impact associated with H.B. 2244.

Provisions

1. Exempts banks with trust powers or bank-affiliated trust companies from the requirements imposed on private fiduciaries under this section.

2. Specifies that the exemption does not prevent the superior court from appointing a bank or bank affiliated trust company as a private fiduciary.

3. Removes language defining financial institution.

4. Provides for a general effective date.

House Action

FII 2/7/01 DPA 10-0-0-0

3^rd Read 2/19/01 58-0-2-0

Prepared by Senate Staff