HB 943 Summary

• Establishes a new category of trust companies called "nondepository trust companies" that are prohibited from accepting deposits, engaging in banking business, real estate brokerage, insurance activities, or securities brokerage.

• Nondepository trust companies must contract with third parties for financial advisory services, property management, and real estate brokerage services rather than providing these services directly.

• Requires nondepository trust companies to maintain minimum paid-in capital and surplus of $1,000,000 and establishes tiered yearly assessment fees based on total assets under management ranging from $1,000 plus 0.00029111 times assets to maximum caps of $100,000-$150,000 for larger firms.

• Makes nondepository trust companies responsible for the performance of service providers they engage and requires assessments to be paid semiannually based on assets reported as of December 31 and June 30.

• Appropriates $4,000 for fiscal years 2021-2022 and 2022-2023 to the Division of Financial Institutions to administer nondepository trusts; effective July 1, 2021.