2002 Legislation
Print Friendly

HOUSE BILL NO. 584 – Transfer on death, security acct

HOUSE BILL NO. 584

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



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

Bill Text


                                                                        
                                                                        
  ||||              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 / Fiscal Impact


                  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