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ID H0416

Bill

Status

Passed

3/18/2020

Primary Sponsor

Business Committee

Click for details

Origin

House of Representatives

2020 Regular Session

AI Summary

  • Authorizes banks without trust powers to act as custodians or fiduciaries and receive reasonable compensation for such services

  • Permits custodial accounts under written trust instruments created in the United States that qualify for tax-advantaged treatment under Internal Revenue Code sections 401(d), 403(b), or 408(a)

  • Restricts investment of custodial account funds to savings accounts, deposits, or securities issued by the bank acting as custodian

  • Requires custodians to maintain individual records for each participant showing all transactions in proper detail

  • Allows commingling of funds held in custodial or fiduciary capacity for appropriate investment purposes

Legislative Description

Amends existing law to revise provisions regarding a bank acting as a custodian or fiduciary.

BANKS

Last Action

Reported Signed by Governor on March 18, 2020 Session Law Chapter 181 Effective: 07/01/2020

3/18/2020

Committee Referrals

Commerce and Human Resources2/24/2020
Business2/7/2020

Full Bill Text

No bill text available