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H0584...........................................................by BUSINESS
TRANSFERS ON DEATH - Amends existing law relating to transfers on death
(TOD) to further define "security account" to include equivalents and
certain investment management or custody accounts with a trust company or a
trust division of a bank with trust powers.
02/08 House intro - 1st rdg - to printing
02/11 Rpt prt - to Bus
02/20 Rpt out - rec d/p - to 2nd rdg
02/21 2nd rdg - to 3rd rdg
02/26 3rd rdg - PASSED - 66-0-4
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black,
Block, Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark,
Collins, Crow, Cuddy, Deal, Denney, Ellis, Eskridge, Field(13),
Field(20), Gagner, Gould, Hadley, Harwood, Henbest, Higgins,
Hornbeck, Jaquet, Jones, Kellogg(Duncan), Kendell, Kunz, Lake,
Langford, Loertscher, Mader, Martinez, McKague, Meyer, Montgomery,
Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger,
Roberts, Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33),
Smith(23), Smylie, Stevenson, Stone, Tilman, Trail, Wood, Young
NAYS -- None
Absent and excused -- Ellsworth, Hammond, Wheeler, Mr. Speaker
Floor Sponsor - Gagner
Title apvd - to Senate
02/27 Senate intro - 1st rdg - to Com/HuRes
03/11 Rpt out - rec d/p - to 2nd rdg
03/12 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Boatright, Branch Brandt, Bunderson, Burtenshaw,
Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge, Marley,
Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
Stennett, Thorne, Wheeler, Williams
NAYS -- None
Absent and excused -- Hawkins
Floor Sponsor - Goedde
Title apvd - to House
03/15 To enrol - Rpt enrol - Sp signed
03/18 Pres signed - to Governor
03/20 Governor signed
Session Law Chapter 122
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 584
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE UNIFORM TOD SECURITY REGISTRATION ACT; AMENDING SECTION
3 15-6-301, IDAHO CODE, TO FURTHER DEFINE "SECURITY ACCOUNT" TO INCLUDE CASH
4 EQUIVALENTS AND INVESTMENT MANAGEMENT OR CUSTODY ACCOUNTS WITH A TRUST
5 COMPANY OR A TRUST DIVISION OF A BANK WITH TRUST POWERS, INCLUDING THE
6 SECURITIES IN THE ACCOUNT, A CASH BALANCE IN THE ACCOUNT, CASH, CASH
7 EQUIVALENTS, INTEREST, EARNINGS, OR DIVIDENDS EARNED OR DECLARED ON A
8 SECURITY IN THE ACCOUNT, WHETHER OR NOT CREDITED TO THE ACCOUNT BEFORE THE
9 OWNER'S DEATH.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 15-6-301, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 15-6-301. DEFINITIONS. In this part:
14 (1) "Beneficiary form" means a registration of a security which indicates
15 the present owner of the security and the intention of the owner regarding the
16 person who will become the owner of the security upon the death of the owner.
17 (2) "Register," including its derivatives, means to issue a certificate
18 showing the ownership of a certificated security or, in the case of an
19 uncertificated security, to initiate or transfer an account showing ownership
20 of securities.
21 (3) "Registering entity" means a person who originates or transfers a
22 security title by registration, and includes a broker maintaining security
23 accounts for customers and a transfer agent or other person acting for or as
24 an issuer of securities.
25 (4) "Security" means a share, participation, or other interest in prop-
26 erty, in a business, or in an obligation of an enterprise or other issuer, and
27 includes a certificated security, an uncertificated security, and a security
28 account.
29 (5) "Security account" means: (i) a reinvestment account associated with
30 a security, a securities account with a broker, a cash balance in a brokerage
31 account, cash, cash equivalents, interest, earnings, or dividends earned or
32 declared on a security in an account, a reinvestment account, or a brokerage
33 account, whether or not credited to the account before the owner's death; (ii)
34 an investment management or custody account with a trust company or a trust
35 division of a bank with trust powers, including the securities in the account,
36 a cash balance in the account, cash, cash equivalents, interest, earnings, or
37 dividends earned or declared on a security in the account, whether or not
38 credited to the account before the owner's death; or (iii) a cash balance or
39 other property held for or due to the owner of a security as a replacement for
40 or product of an account security, whether or not credited to the account
41 before the owner's death.
STATEMENT OF PURPOSE
RS 11928
Currently under Idaho law, securities and brokerage accounts may
have beneficiary designations that will take effect upon the death
of the owner pursuant to the Uniform TOD (Transfer On Death)
Security Registration Act. This option, however, is not available
to the investment management and custody accounts that are
generally used by bank trust departments. This in turn creates
both a competitive disadvantage for bank trust departments, while
at the same time penalizes those Idaho residents who choose to
invest in these types of accounts. The purpose of this bill is to
eliminate this disadvantage by extending to investment management
and custody accounts the same beneficiary designation rights that
currently exists for securities and brokerage accounts.
FISCAL IMPACT
This bill will have no impact on the general fund
Contact
Name: Patrick V. Collins
Hawley Troxell Ennis & Hawley LLP
Counsel for the Idaho Bankers Association
(208) 334-6000
STATEMENT OF PURPOSE/FISCAL NOTE H 584