ARIZONA STATE SENATE
Phoenix, Arizona
Exempts banks, bank affiliated trust companies, and
independent trust companies from private fiduciary regulation by the Arizona
Supreme Court.
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, bank-affiliated trust companies, and independent
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.
1. Exempts banks with trust powers, bank-affiliated trust companies, or the independent 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, bank affiliated trust company, or an independent trust company as a private fiduciary.
3. Provides for a general effective date.
Amendments
Adopted by the Banking & Insurance Committee
Includes independent trust companies into the exemption of private fiduciaries' oversight requirements.
3rd Read 2/19/01 58-0-2-0
Prepared by Senate Staff
March 16, 2001