Revises provisions governing trust companies. (BDR 55-162)
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AB 61 — Revises provisions governing trust companies. (BDR 55-162)
Last action — Approved by the Governor. Chapter 125.
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed Assembly
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced November 17, 2016. Enacted.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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.
Bill Text
What changed in the latest version
604 added · 644 removed604 line(s) added, 644 removed.
REQUIRESAssembly TWO-THIRDSBill MAJORITYNo. VOTE (§§ 8, 11, 12) (Reprinted with amendments adopted on April 19, 2017) FIRST REPRINT A.B.
6161–Committee ASSEMBLYon BCommerce ILLNOand .Labor CHAPTER..........
61–COMMITTEE ON C OMMERCE AND L ABOR (ON BEHALF OF THE D IVISION OFFINANCIAL INSTITUTIONS OF THE D EPARTMENT OF BUSINESS AND INDUSTRY ) PREFILED NOVEMBER 17, 2016 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions governing trust companies.
(BDR 55-162) FISCAL NOTE:
Effect on Local Government:
No.
Effect on the State:
Yes.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
-LegiUnder *AB61_R1*existing –law, 2the –Commissioner Legislativeof Counsel’sFinancial Digest:Institutions is charged with regulating and licensing certain business entities that act as a trustee in Nevada.
Under(Chapter existing669 law,of theNRS) CommissionerExisting oflaw Financialauthorizes Institutionsa isforeign chargedtrust withcompany regulatingthat anddoes licensingnot certainmaintain businessan entitiesoffice thatin Nevada to be appointed to act as a trusteefiduciary by any court or by authority of any law of this State without being licensed as a trust company in Nevada.Nevada if the home state of the foreign trust company allows trust companies basis.
(Chapter(NRS 669662.245)o ofbe NRS)appointed Existingin lawthe authorizeshome state as a foreignfiduciary truston companya thatreciprocal doesSection not8 maintainof anthis officebill inauthorizes Nevadaa toforeign beindependent appointedtrust tocompany, actwhich is defined in section 5 of this bill as a fiduciarytrust bycompany anythat courtis orlicensed byunder authoritythe laws of anya lawstate ofother thisthan StateNevada withoutand beingis licensednot assubject ato trustregulation, companysupervision inand Nevadaexamination ifby thecertain homefederal stateregulators, ofto therequest foreignapproval trustfrom companythe allowsCommissioner trustof companiesFinancial licensedInstitutions infor Nevadaauthorization to besolicit appointedtrust incompany thebusiness homein stateNevada aswithout obtaining a fiduciarylicense onto aengage reciprocalin basis.that activity.
(NRSSection 662.245)8 definedindependent in section 5 of this bill as a trust company thatwith issuch licensedauthorization underfrom theacting lawsin ofany afiduciary statecapacities otheror thanotherwise Nevadaengaging andin isany notactivity subjectas toa regulation, supervision and examination by certain federal regulators, to request approval from the Commissioner of Financial Institutions for authorization to solicit trust company businessfor inwhich Nevada without obtaining a license tois engagerequired. in that activity.
Section 89 providesof athis procedurebill forauthorizes renewalthe Commissioner of suchFinancial authorizationInstitutions andto prohibitsrequire a foreign independent trust company with such authorization fromto actingsolicit trust company business in anyNevada fiduciaryto capacitiesmaintain ora otherwisesurety engagingbond inand anysets activityforth asthe arequirements trustassociated companywith forthe whichmaintenance of a licensesurety isbond. required.
Sectionsection 96 of this bill authorizesas thea Commissionertrust ofcompany Financiallicensed solicitin trusta companystate businessother inthan Nevada toand maintainwhich ais suretysubject bondto regulation, supervision and setsexamination forthon the requirementsstate associatedand withfederal thelevels, maintenanceto ofact as a suretyfiduciary bond.and engage in solicitation of trust company business in Nevada if:
Section(1) 10the of this bill authorizes a foreign trust company,company which is definedauthorized inby sectionits 6home ofstate thisto billact as a trust- company79th licensedSession in(2017) a– state2 other– than Nevada and which is subject to regulation, supervision and examination on the state and federal levels, to act as a fiduciary andor engage in the solicitation of trust companybusiness; business in Nevada if:
(1)(2) the foreign trust company is authorizeda bysubsidiary itsof homea statebank, tosavings actassociation, asbank aholding fiduciarycompany or engagesavings inand theloan solicitationholding ofcompany trustthat business;is subject to certain federal regulation;
(2)and the foreign trust company is a subsidiary of a bank, savings association, bank holding company or (3) certain entities that act as fiduciaries or are engaged in the solicitation of trust company business in Nevada are allowed to engage in those activities in the home state of the foreign trust company in a reciprocal manner.
Section 11 of this bill requires that such a foreign trust company is deemed to have appointed the Commissioner as its agent for service of process in actions or proceedings related to its activities in Nevada.
Section 12 of this bill authorizes a foreign trust company, upon the approval of the Commissioner, to engage in the business of a trust company and establish and maintain one or more retail trust company offices in Nevada if the foreign trust company meets certain requirements, including whether the foreign trust company is authorized by its home state to conduct business as a trust company and whether in Nevada to engage in similar activities in the home state on a reciprocal basis.d Under existing law, to qualify as a trustee of thea foreignspendthrift trust companyin allowsNevada, certaina trust companiescompany licensedis inrequired Nevada to engagebe inorganized similarunder activitiesfederal inor thestate homelaw stateand onmaintain aan reciprocaloffice basis.in Nevada for the transaction of business.
Under(NRS existing166.015) law,Section to16 qualifyof asthis abill trusteeprovides ofthat a spendthrift trust incompany Nevada,does not include a foreign independent trust company isauthorized required to beengage organizedin underthe federalsolicitation orof statetrust lawcompany andbusiness maintain an office in Nevadathis forState thepursuant transactionto ofsection business.8.
(NRS 166.015) Section 16 of this bill provides that a trust company does not include a foreign independent trust company authorized to engage in the solicitation of trust company business in this StaExisting law authorizes the Commissioner of Financial Institutions to impose administrative fines for violations of the laws governing trust companies, andandse certain such violations are gross misdemeanors.
-EXPLANATION *AB61_R1* – 3Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
and - 79th Session (2017) – 3 – (3) Before the appointment as fiduciary, files with the Secretary of State a document, acknowledged before a notarial officer, which:
(I) Appoints the Secretary of State as its agent upon whomserved;l all process in any action or proceeding against it may be served;(II) Contains its agreement that the appointment continues in force as long as any liability remains outstanding against it in this State, and that any process against it which is served on the Secretary of State is of the same legal validity as if served on it personally;
(II) Contains its agreement that the appointment continues in force as long as any liability remains outstanding against it in this State, and that any process against it which is served on the Secretary of State is of the same legal validity as if served on it personally;
- *AB61_R1* – 4 – 3.
The copies must include a specificState citationmay refuse to accept such service if the provisionsproper ofcitation thisis section.not included in each copy.
The Secretary of State may refuse to accept such service if the proper citation is not included in each copy.
- 79th Session (2017) – 4 – (c) “State” means any state or territory of the United States or the District of Columbia.
Chapter 669 of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 12, inclusive, of this act.actSec.
Sec.
If a foreign independent trust company seeks to engage only in the solicitation of trust company business in this State, regardless of whether the foreign independent trust - *AB61_R1* – 5 – company has a physical location in this State, the foreign independent trust company must submit to the Commissioner a written request on a form prescribed by the Commissioner for authorization to solicit trust company business in this State.
- 79th Session (2017) – 5 – (2) The names of all persons who will be representing the foreign independent trust company at the trust representative office;
and (3) Evidence of compliance with all applicable requirementslicenses.nts for state and local business registrations and licenses.(e) Confirmation that the foreign independent trust company is authorized to conduct business as a trust company in its home state.
(e) Confirmation that the foreign independent trust company is authorized to conduct business as a trust company in its home state.
(j) Confirmation that the home state regulator subscribes to and is a signatory of the Nationwide Cooperative Agreement for - *AB61_R1* – 6 – Supervision and Examination of Multi-State Trust Institutions as adoptedado2.ed byThe Commissioner may deny the Conferenceapproval of a foreign independent trust company to engage in the solicitation of trust company business or have a trust representative office in this State Bankif Supervisors.the Commissioner, in acting on the written request submitted pursuant to subsection 1 after consultation with the home state regulator, finds:
Show all 86 changed lines (46 more)
2.
The Commissioner may deny the approval of a foreign independent trust company to engage in the solicitation of trust company business or have a trust representative office in this State if the Commissioner, in acting on the written request submitted pursuant to subsection 1 after consultation with the home state regulator, finds:
If the Commissioner approves a written request for authorization to solicit trust company business submitted pursuant - 79th Session (2017) – 6 – to subsection 1, the foreign independent trust company must renew the request annually on a date and form prescribed by the Commissioner to continue such authorization.
(a)(b) AConfirmation nonrefundablethat renewalthe feeinformation previously provided pursuant to paragraphs (b) to (j), inclusive, of $500;subsection 1 remains accurate.
and (b) Confirmation that the information previously provided pursuant to paragraphs (b) to (j), inclusive, of subsection 1 remains accurate.
(a) Rely on the applicable regulatory authority of the home state of a foreign independent trust company to examine and investigate activity conducted by the foreign independent trust company;com(b) Investigate any trust representative office established and maintained in this State by a foreign independent trust company as the Commissioner may deem necessary to determine if the trust representative office is being operated in compliance with the applicable laws of this State and in accordance with safe and sound business practices;
- *AB61_R1* – 7 – (b) Investigate any trust representative office established and maintained in this State by a foreign independent trust company as the Commissioner may deem necessary to determine if the trust representative office is being operated in compliance with the applicable laws of this State and in accordance with safe and sound business practices;
and - 79th Session (2017) – 7 – (b) From the payment of renewal fees pursuant to paragraph (a) of subsection 3 must be deposited in the State Treasury pursuant to the provisions of NRS 658.091.
As used in this section, “trust representative office” means a place of business in this State from which a foreign independent trust company may solicit trust company business and contactcontactendent existing or prospective customers.
A foreign independent trust company shall, within 10 days after the commencement of any action or notice of entry of any judgment against the foreign independent trust company by any creditor or claimant arising out of business regulated by section 8 of this act, give notice thereof to the Commissioner by certified 8 mail with details sufficient to identify the action or judgment.
The surety that executed the bond of the foreign independent trust - *AB61_R1* – 8 – company shall, within 10 days after it pays any claim or judgment to a creditor or claimant, give notice thereof to the Commissioner by certified mail with details sufficient to identify the creditor or claimant and the claim or judgment so paid.
or - 79th Session (2017) – 8 – (b) An endorsement, duly executed by the surety reinstating the bond to the required principal sum.
The liability of the surety on a bond to the Division for a creditor or claimant of the foreign independent trust company is notnot(a) affectedAny by:misrepresentation, breach of warranty, failure to pay a premium or other act or omission of the foreign independent trust company;
(a) Any misrepresentation, breach of warranty, failure to pay a premium or other act or omission of the foreign independent trust company;
In addition to the authority provided in NRS 662.245 and section 12 of this act, a foreign trust company may act as a fiduciary in this State, whether the appointment is by will, deed, court order or otherwise, without complying with the laws of this State relating to the qualification of corporations or limited- liability companies organized under the laws of this State to conduct trust company business or laws relating to the - *AB61_R1* – 9 – qualification of foreign corporations or foreign limited-liability companies if:
and - 79th Session (2017) – 9 – (c) A trust company organized under the laws of this State, a national banking association having its main office in this State and a federal savings and loan association or federal savings bank having its main office in this State and authorized to act as a fiduciary in this State may, in such other state, act in a similar fiduciary capacity or capacities, as applicable, upon conditionsconditionsar and qualifications which the Commissioner finds are not unduly restrictive compared to those imposed by the laws of this State.
and (c) A trust company organized under the laws of this State, a national banking association having its main office in this State and a federal savings and loan association or federal savings bank having its main office in this State and authorized to engage in the solicitation of trust company business in this State may, in such other state, similarly engage in the solicitation of trust company business upon conditions and qualifications which the Commissioner finds are not unduly restrictive compared to those imposed by the laws of this State.
A foreign trust company acting in this State in a fiduciary capacity or engaging in this State in the solicitation of trust company business pursuant to section 10 of this act shall be - *AB61_R1* – 10 – deemed to have appointed the Commissioner as the agent of the foreign trust company for service of process in any action or proceeding against the foreign trust company that relates to or arises out of any matter in which the foreign trust company has:
- 79th Session (2017) – 10 – 2.
The commission of or engagement in this State in any act described in paragraph (a) or (b) of subsection 1 by a foreign trust company is deemed to signify the agreement of the foreign trust company that any legal process served upon the Commissioner pursuant to subsection 1 is of the same legal force and validity as if the legal process were served directly upon the foreign trust as company.
(a) Notice of such service and a copy of the process are, within 10 days after delivery to the Commissioner, sent by certified mail by the plaintiff to the principal office of the foreign trust company named in the action or proceeding in the state or territory in which it is located;
The Commissioner shall keep a record of each legal process served on the Commissioner pursuant to this section which contains the date and time of each such service of process.
If a foreign trust company seeks to establish and maintain a retail trust company office and engage in the business of a trust company in this State, the foreign trust company must, in addition to any other requirements of law, submit to the Commissioner a written request on a form prescribed by the Commissioner for authorization to establish and maintain a retail trust company office and engage in the business of a trust - *AB61_R1* – 11 – company in this State.
- 79th Session (2017) – 11 – (c) The following information about each retail trust company office in this State:
(2) The name of all persons who will be employed at the retailretail(3) trustEvidenceny companyofofce;compliance office;with all applicable requirements for state and local business registrations and licenses.
and (3) Evidence of compliance with all applicable requirements for state and local business registrations and licenses.
The Commissioner, after considering the views of the home state regulator and the federal banking regulator to the extent available, may deny the approval of a foreign trust company to establish and maintain a retail trust company office and engage in the business of a trust company in this State if the Commissioner finds, after notice and hearing:
If the Commissioner approves a written request for authorization to establish and maintain a retail trust company - *AB61_R1* – 12 – office and engage in the business of a trust company in this State submitted pursuant to subsection 1, the foreign trust company must renew the request annually on a date and form prescribed by - 79th Session (2017) – 12 – the Commissioner to continue such authorization.
and (b) Confirmation that the information previously provided pursuant to paragraphs (b) to (g), inclusive, of subsection 1 remains accurate.
(b) Investigate any retail trust company office established and maintained in this State by a foreign trust company as the Commissioner may deem necessary to determine if the retail trust company office is being operated in compliance with the applicable laws of this State and in accordance with safe and sound business practices;
- *AB61_R1*79th Session (2017) – 13 – 7.
669.090 [It] Except as otherwise provided in sections 3 to 12, inclusive, of this act, it is unlawful for any retail trust company to engage in the business of a trust company without complying with the provisions of this chapter and having a license issued by the Commissioner.
(d) Is authorized to act as a fiduciary or solicit trust company business pursuant to section 10 of this act or establish and maintain a retail trust company office and engage in the business of a trust company in this State pursuant to section 12 of this act;
The applicant must also pay such - 79th Session (2017) – 14 – reasonable additional expenses incurred in the process of investigation as the Commissioner deems necessary.
In addition, a - *AB61_R1* – 14 – fee of not less than $200 or more than $500, prorated on the basis of the licensing year as provided by the Commissioner, must be paid at thethe3.imeExcept timeas ofotherwise makingprovided thein application.NRS 669.092, a trust company may maintain offices in this and other states.
3.
Except as otherwise provided in NRS 669.092, a trust company may maintain offices in this and other states.
If an applicationifplanatiapplicantmedotherwisethdwithdrawsuantano istapplication,onthe deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.
- 79th Session (2017) – 15 – (c) The declared domicile of the creator of a spendthrift trust affecting personal property is in this State;
or (d) At least one trustee qualified under subsection 2 has powers that include maintaining records and preparing income tax returns - *AB61_R1* – 15 – for the trust, and all or part of the administration of the trust is performed in this State.
(b) A(1) trustIs companyorganized that:under federal law or under the laws of this State or another state;
and (2) Maintains an office in this State for the transaction of business;
or (c) A bank that:
and (2) Maintains an office in this State for the transaction of bus(c) A bank that:
(1) Is organized under federal law or under the laws of this State or another state;
H~~~~~ 17 - *AB61_R1*79th Session (2017)
Show all 86 changed rows (46 more)
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- Enrolled As Enrolled Current pdf
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Action History
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Approved by the Governor. Chapter 125.
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Enrolled and delivered to Governor.
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In Assembly. To enrollment.
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Read third time. Passed. Title approved. (Yeas: 21, Nays: None.) To Assembly.
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Read second time.
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Placed on Second Reading File.
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From committee: Do pass.
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Read first time. Referred to Committee on Commerce, Labor and Energy. To committee.
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In Senate.
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Read third time. Passed, as amended. Title approved. (Yeas: 38, Nays: None, Excused: 4.) To Senate.
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Taken from General File. Placed on General File for next legislative day.
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From printer. To engrossment. Engrossed. First reprint .
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Read second time. Amended. (Amend. No. 29.) To printer.
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From committee: Amend, and do pass as amended.
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Read first time. To committee.
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From printer.
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Prefiled. Referred to Committee on Commerce and Labor. To printer.
Sponsors
- Commerce and Labor · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 66 not signed on
Sponsors (1)
- Commerce and Labor
Co-sponsors (0)
None.
Not signed on (66)
66 members have not signed on to this bill.
Show all 66 →"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.
Subjects
Frequently asked questions
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- AB 61 is sponsored by Commerce and Labor.
- What is the current status of AB 61?
- This bill has been enacted into law. Introduced November 17, 2016. Enacted.
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