Virginia 2022 Regular Session Status: Enacted

HB 1237 — Financial institutions; definition of trust business.

Last action — Approved by Governor-Chapter 323 (effective 7/1/22)

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House of Delegates
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 19, 2022. Enacted.

Signed by Governor Glenn Youngkin (Republican) on April 11, 2022.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Definition of trust business. Clarifies the definition of "trust business" to specify that engaging in trust business does not include rendering services as an individual attorney at law or through an entity wholly owned by attorneys at law in the performance of duties as a fiduciary.

Bill Text

What changed in the latest version

49 added · 48 removed

Plain-language change summary

The recent amendment to HB 1237 clarifies the definition of "trust business" in Virginia law by specifying that it includes actions where a person or entity publicly advertises their fiduciary services. Additionally, certain activities, such as providing legal services or acting as a trustee in bankruptcy, are explicitly excluded from being categorized as trust business. These changes are significant because they help define when a company must comply with regulations governing fiduciary responsibilities, ensuring that both consumers and professionals understand the boundaries of trust services.

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SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY –– CHAPTER E An Act to amend and reenact § 6.2-1000 of the Code of Virginia, relating to financial institutions;
VIRGINIA ACTS OF ASSEMBLY -- 2022 SESSION CHAPTER 323 An Act to amend and reenact § 6.2-1000 of the Code of Virginia, relating to financial institutions;
R O [H 1237] Approved L L 1.
[H 1237] Approved April 11, 2022 Be it enacted by the General Assembly of Virginia:
1.
E As used in this chapter, unless the context requires otherwise:
As used in this chapter, unless the context requires otherwise:
D "Affiliated trust company" means a trust company that is controlled by a trust company holding company.
"Affiliated trust company" means a trust company that is controlled by a trust company holding company.
"Trust business" means the holding out by a person or legal entity to the public at large by advertising, solicitation or other means that the person or legal entity is available to act as a fiduciary in course of its business.
"Trust business" means the holding out by a person or legal entity to the public at large by the Commonwealth or is accepting and undertaking to perform the duties of a fiduciary in the regularduciary in course of its business.
of a fiduciary in the regular 1.
1.
Rendering services as an attorney at law, either individually or through an entity whollyHowned by attorneys at law, in the performance of duties as a fiduciary;
Rendering services as an attorney at law, either individually or through an entity wholly owned by attorneys at law, in the performance of duties as a fiduciary;
B 2.
2.
Rendering services as a certified or registered public accountant in the performance of d2ties as such;
Rendering services as a certified or registered public accountant in the performance of duties as such;
7 3.
3.
Acting as trustee under a deed of trust made only as security for the payment of money orRfor the performance of another act;
Acting as trustee under a deed of trust made only as security for the payment of money or for the performance of another act;
4.
Acting as a trustee in bankruptcy or as a receiver;
The trust is (i) exempt from federal income taxes under § 501(c) (3) of the Internal Revenue income fund described in § 642(c) (5) of the Internal Revenue Code;
The trust is (i) exempt from federal income taxes under § 501(c) (3) of the Internal Revenue Code;
or (iv) a trust the charitableooled interest in which is either a guaranteed annuity or a fixed percentage distributed yearly of the fair market value of the trust property, described in § 2055(e) (2) (B) or § 2522(c) (2) (B) of the Internal Revenue Code;
(ii) a charitable remainder trust described in § 664 of the Internal Revenue Code;
(iii) a pooled income fund described in § 642(c) (5) of the Internal Revenue Code;
or (iv) a trust the charitable interest in which is either a guaranteed annuity or a fixed percentage distributed yearly of the fair market value of the trust property, described in § 2055(e) (2) (B) or § 2522(c) (2) (B) of the Internal Revenue Code;
"Trust company" means a corporation, including an affiliated trust company, that is authorized to expressly restricted to the conduct of trust business.13 et seq.) of this chapter, the powers of which are "Trust company holding company" means a corporation that controls a trust company.
"Trust company" means a corporation, including an affiliated trust company, that is authorized to engage in the trust business under Article 2 (§ 6.2-1013 et seq.) of this chapter, the powers of which are expressly restricted to the conduct of trust business.
"Trust company holding company" means a corporation that controls a trust company.
(§ 13.1-601 et seq.) of Title 13.1, or an association organized under the National Banking Act with its main office located in the Commonwealth, that is authorized to transact trust business and business incidental thereto, but not to accept deposits except as incidental to such trust business.
"Trust subsidiary" or "subsidiary trust company" means a corporation organized under Chapter 9 (§ 13.1-601 et seq.) of Title 13.1, or an association organized under the National Banking Act with its main office located in the Commonwealth, that is authorized to transact trust business and business incidental thereto, but not to accept deposits except as incidental to such trust business.
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Action History

  1. Approved by Governor-Chapter 323 (effective 7/1/22)

  2. Governor's Action Deadline 11:59 p.m., April 11, 2022

  3. Enrolled Bill communicated to Governor on March 22, 2022

  4. Signed by President

  5. Signed by Speaker

  6. Impact statement from SCC (HB1237ER)

  7. Enrolled

  8. Passed Senate (39-Y 0-N)

  9. Read third time

  10. Constitutional reading dispensed (40-Y 0-N)

  11. Reported from Commerce and Labor (15-Y 0-N)

  12. Referred to Committee on Commerce and Labor

  13. Constitutional reading dispensed

  14. VOTE: Block Vote Passage (99-Y 0-N)

  15. Read third time and passed House BLOCK VOTE (99-Y 0-N)

  16. Engrossed by House - committee substitute HB1237H1

  17. Committee substitute agreed to 22105427D-H1

  18. Read second time

  19. Read first time

  20. Committee substitute printed 22105427D-H1

  21. Reported from Commerce and Energy with substitute (21-Y 0-N)

  22. Subcommittee recommends reporting with substitute (10-Y 0-N)

  23. House subcommittee amendments and substitutes offered

  24. Impact statement from SCC (HB1237)

  25. Assigned sub: Subcommittee #2

  26. Referred to Committee on Commerce and Energy

  27. Presented and ordered printed 22104791D

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 147 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (147)

147 members have not signed on to this bill.

Show all 147 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed Senate (39-Y 0-N)

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 39001
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
McClellan, Jennifer L. — Yea
Morrissey, Joseph D. — Yea
Spruill, Lionell, Sr. — Yea
Barbara A. Favola — Yea
Barker, George L. — Yea
Bell, John J. — Yea
Bill DeSteph — Yea
Bryce E. Reeves — Yea
Chase, Amanda F. — Yea
Cosgrove, John A., Jr. — Yea
David R. Suetterlein — Yea
David W. Marsden — Yea
Dunnavant, Siobhan S. — Yea
Ebbin, Adam P. — Yea
Edwards, John S. — Yea
Hanger, Emmett W., Jr. — Yea
Hashmi, Ghazala F. — Yea
Howell, Janet D. — Yea
Jennifer B. Boysko — Yea
Jeremy S. McPike — Yea
Kiggans, Jennifer A. — Yea
L. Louise Lucas — Yea
Lewis, Lynwood W., Jr. — Yea
Mamie E. Locke — Yea
Mark D. Obenshain — Yea
Mark J. Peake — Yea
Mason, T. Montgomery "Monty" — Yea
Newman, Stephen D. — Yea
Norment, Thomas K., Jr. — Yea
Petersen, J. Chapman — Yea
R. Creigh Deeds — Yea
Richard H. Stuart — Yea
Ruff, Frank M., Jr. — Yea
Ryan T. McDougle — Yea
Saslaw, Richard L. — Yea
Scott A. Surovell — Yea
T. Travis Hackworth — Yea
Todd E. Pillion — Yea
Vogel, Jill Holtzman — Not Voting
William M. Stanley, Jr. — Yea

Official roll call →

Constitutional reading dispensed (40-Y 0-N)

Passed 40 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 40000
Total 40000
% of votes cast 100%0%0%0%
How each member voted (40)
Member Party Vote
McClellan, Jennifer L. — Yea
Morrissey, Joseph D. — Yea
Spruill, Lionell, Sr. — Yea
Barbara A. Favola — Yea
Barker, George L. — Yea
Bell, John J. — Yea
Bill DeSteph — Yea
Bryce E. Reeves — Yea
Chase, Amanda F. — Yea
Cosgrove, John A., Jr. — Yea
David R. Suetterlein — Yea
David W. Marsden — Yea
Dunnavant, Siobhan S. — Yea
Ebbin, Adam P. — Yea
Edwards, John S. — Yea
Hanger, Emmett W., Jr. — Yea
Hashmi, Ghazala F. — Yea
Howell, Janet D. — Yea
Jennifer B. Boysko — Yea
Jeremy S. McPike — Yea
Kiggans, Jennifer A. — Yea
L. Louise Lucas — Yea
Lewis, Lynwood W., Jr. — Yea
Mamie E. Locke — Yea
Mark D. Obenshain — Yea
Mark J. Peake — Yea
Mason, T. Montgomery "Monty" — Yea
Newman, Stephen D. — Yea
Norment, Thomas K., Jr. — Yea
Petersen, J. Chapman — Yea
R. Creigh Deeds — Yea
Richard H. Stuart — Yea
Ruff, Frank M., Jr. — Yea
Ryan T. McDougle — Yea
Saslaw, Richard L. — Yea
Scott A. Surovell — Yea
T. Travis Hackworth — Yea
Todd E. Pillion — Yea
Vogel, Jill Holtzman — Yea
William M. Stanley, Jr. — Yea

Official roll call →

Reported from Commerce and Labor (15-Y 0-N)

Passed 15 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 15000
Total 15000
% of votes cast 100%0%0%0%
How each member voted (15)
Member Party Vote
Spruill, Lionell, Sr. — Yea
Barker, George L. — Yea
Bell, John J. — Yea
David W. Marsden — Yea
Ebbin, Adam P. — Yea
Edwards, John S. — Yea
L. Louise Lucas — Yea
Lewis, Lynwood W., Jr. — Yea
Mark D. Obenshain — Yea
Mason, T. Montgomery "Monty" — Yea
Newman, Stephen D. — Yea
Norment, Thomas K., Jr. — Yea
R. Creigh Deeds — Yea
Saslaw, Richard L. — Yea
Scott A. Surovell — Yea

Official roll call →

VOTE: Block Vote Passage (99-Y 0-N)

Passed 98 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 98001
Total 98001
% of votes cast 99%0%0%1%
How each member voted (99)
Member Party Vote
Greenhalgh, Karen S. — Yea
March, Marie E. — Yea
Adams, Dawn M. — Yea
Adams, Les R. — Yea
Alfonso H. Lopez — Yea
Angelia Williams Graves — Not Voting
Anne Ferrell Tata — Yea
Avoli, G. "John" — Yea
Batten, Amanda E. — Yea
Bell, Robert B. — Yea
Betsy B. Carr — Yea
Bill Wiley — Yea
Bourne, Jeffrey M. — Yea
Briana D. Sewell — Yea
Bulova, David L. — Yea
Byron, Kathy J. — Yea
C.E. Cliff Hayes, Jr. — Yea
Campbell, Jeffrey L. — Yea
Campbell, Ronnie R. — Yea
Charniele L. Herring — Yea
Chris S. Runion — Yea
Christopher T. Head — Yea
Convirs-Fowler, Kelly K. — Yea
Cordoza, A.C. — Yea
Coyner, Carrie E. — Yea
Dan I. Helmer — Yea
Danica A. Roem — Yea
David A. Reid — Yea
Davis, Glenn R. — Yea
Delores L. McQuinn — Yea
Don Scott — Yea
Edmunds, James E., II — Yea
Elizabeth B. Bennett-Parker — Yea
Emily M. Jordan — Yea
Fariss, C. Matthew — Yea
Filler-Corn, Eileen — Yea
Fowler, Hyland F."Buddy," Jr. — Yea
Freitas, Nicholas J. — Yea
Gooditis, Wendy W. — Yea
Guzman, Elizabeth R. — Yea
H. Otto Wachsmann, Jr. — Yea
Hudson, Sally L. — Yea
Irene Shin — Yea
Israel D. O'Quinn — Yea
Jackie H. Glass — Yea
James A. "Jay" Leftwich — Yea
James W. Morefield — Yea
Jason S. Ballard — Yea
Jeion A. Ward — Yea
Jenkins, Clinton L. — Yea
Jessica L. Anderson — Yea
Joseph P. McNamara — Yea
Karrie K. Delaney — Yea
Kathy K.L. Tran — Yea
Keam, Mark L. — Yea
Knight, Barry D. — Yea
Kory, Kaye — Yea
LaRock, Dave A. — Yea
Lamont Bagby — Yea
Luke E. Torian — Yea
M. Keith Hodges — Yea
Maldonado, Michelle Lopes — Yea
Marcia S. "Cia" Price — Yea
Marcus B. Simon — Yea
Marshall, Daniel W., III — Yea
McGuire, John J., III — Yea
Michael J. Webert — Yea
Mike A. Cherry — Yea
Mullin, Michael P. — Yea
Mundon King, Candi — Yea
Murphy, Kathleen — Yea
Nadarius E. Clark — Yea
Orrock, Robert D., Sr. — Yea
Patrick A. Hope — Yea
Paul E. Krizek — Yea
Phillip A. Scott — Yea
Plum, Kenneth R. — Yea
R. Lee Ware — Yea
Ransone, Margaret B. — Yea
Richard C. "Rip" Sullivan, Jr. — Yea
Robert S. Bloxom, Jr. — Yea
Robinson, Roxann L. — Yea
Rodney T. Willett — Yea
Sam Rasoul — Yea
Schuyler T. VanValkenburg — Yea
Scott A. Wyatt — Yea
Shelly A. Simonds — Yea
Sickles, Mark D. — Yea
Subramanyam, Suhas — Yea
Tara A. Durant — Yea
Taylor, Kim A. — Yea
Terry G. Kilgore — Yea
Terry L. Austin — Yea
Thomas C. Wright, Jr. — Yea
Tony O. Wilt — Yea
Vivian E. Watts — Yea
Wampler, William C., III — Yea
Wendell S. Walker — Yea
Wren M. Williams — Yea

Official roll call →

Reported from Commerce and Energy with substitute (21-Y 0-N)

Passed 21 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 21001
Total 21001
% of votes cast 95%0%0%5%
How each member voted (22)
Member Party Vote
Adams, Les R. — Yea
Alfonso H. Lopez — Yea
Batten, Amanda E. — Yea
Byron, Kathy J. — Yea
Christopher T. Head — Yea
Don Scott — Yea
Gooditis, Wendy W. — Yea
Guzman, Elizabeth R. — Yea
Israel D. O'Quinn — Yea
Jeion A. Ward — Yea
Joseph P. McNamara — Yea
Keam, Mark L. — Yea
Kory, Kaye — Yea
Lamont Bagby — Yea
Marshall, Daniel W., III — Yea
Michael J. Webert — Yea
Mullin, Michael P. — Yea
R. Lee Ware — Yea
Ransone, Margaret B. — Yea
Richard C. "Rip" Sullivan, Jr. — Yea
Terry G. Kilgore — Not Voting
Tony O. Wilt — Yea

Official roll call →

Subcommittee recommends reporting with substitute (10-Y 0-N)

Passed 10 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 10001
Total 10001
% of votes cast 91%0%0%9%
How each member voted (11)
Member Party Vote
Adams, Les R. — Yea
Byron, Kathy J. — Not Voting
Christopher T. Head — Yea
Gooditis, Wendy W. — Yea
Jeion A. Ward — Yea
Joseph P. McNamara — Yea
Lamont Bagby — Yea
Michael J. Webert — Yea
R. Lee Ware — Yea
Ransone, Margaret B. — Yea
Richard C. "Rip" Sullivan, Jr. — Yea

Official roll call →

Subjects

finance
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Frequently asked questions

What does HB 1237 do?
Definition of trust business. Clarifies the definition of "trust business" to specify that engaging in trust business does not include rendering services as an individual attorney at law or through an entity wholly owned by attorneys at law in the performance of duties as a fiduciary.
Who sponsors HB 1237?
HB 1237 is sponsored by James A. "Jay" Leftwich.
What is the current status of HB 1237?
This bill has been enacted into law. Introduced January 19, 2022. Enacted.
Where can I track HB 1237?
Track HB 1237 free on One Click Politics — get push/email alerts when it moves.

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