FUNERAL TRUSTS

This act allows up to $9,999 to be set aside in an irrevocable personal funeral trust without that trust being considered an asset when determining eligibility for public assistance. The trust must be designated to pay for certain burial and funeral costs, and the trustee must be a state or federally chartered financial institution authorized to exercise trust powers.

No person or entity may charge more than 10% of trust assets for creation of the trust and no more than 3% for maintenance of the trust. Trustees may commingle personal funeral trust accounts so long as accurate records are kept. The standard of care for investments by the trustee is that of a prudent investor.

Excess money left in the account not required for burial or funeral purposes, shall be paid to the state up to the amount of public assistance provided. Any money remaining after paying the state is paid to those designated in the trust.

These provisions are similar to provisions contained in SB 1025 (2010), SB 365 (2011), SB 875 (2012), and identical to provisions contained in SB 405 (2013).

REORGANIZATION

The act also changes the division name "division of family services" to the "family support division" to reflect the reorganization of the Department of Social Services.

This provision is identical to a provision in HB 507 (2013).

TRUST COMPANY EXAMINATION

Currently, trust companies, including private trust companies, are examined by the Director of Finance every twelve or eighteen months. This act provides that private trust companies will be examined at least once every thirty-six months.

This provision is similar to a provision contained in SB 196 (2013) and HB 144 (2013).

LOAN INTEREST

Currently, for loans of 30 days or longer other than open-end credit, lenders may charge a fee not to exceed 5% of the principal amount not to exceed $75. This act raises the fee to 10% of the principal amount not to exceed $75.

This provision is identical to a provision contained in HCS/HB 176 (2013).

Currently, for an open-end credit contract that provides for open-end credit loans of 31 days or longer, the lender may charge a credit advance fee of the lesser of $25 or 5% of the credit advanced from the line of credit. This act raises the fee to up to the lesser of $75 and 10%.

This provision is identical to a provision contained in HCS/HB 176 (2013), HB 748 (2013), and the truly agreed SCS/SB 254 (2013) that was signed by the Governor.

RESIDENTIAL REAL ESTATE LOANS

Currently, the directors of the Division of Finance and the Division of Credit Unions are required to examine and determine the number and total dollar amount of residential real estate loans originated, purchased, or foreclosed and the number of residential real estate loan applications denied by financial institutions with offices in counties or cities with a population over 250,000. The directors are required to conclude whether such institutions have violated state law and report such conclusions along with information required under the Federal Home Mortgage Disclosure Act to the Governor and the Director of the Department of Insurance Financial Institutions and Professional Registration. This act requires that the report only include the number and type of violation, a statement of enforcement actions taken, names of institutions found to be in violation, the number and nature of complaints received, and action taken on each complaint.

Currently, the division directors have the authority to conduct hearings when he or she has reason to believe there is a violation based on examination, investigation of a complaint, a report by the financial institution, or the contents of a public document. This act repeals the provision enumerating the basis for reasonable belief.

The act repeals a provision requiring that certain institutions that are not regulated by a division director file a report with the Division of Finance containing the number and dollar amount of residential real estate loans originated, purchased, or foreclosed.

These provisions are identical to provisions contained in the truly agreed SB 235 (2013) that was signed by the Governor.

BANKRUPTCY EXEMPTIONS

Under current law, a person, either as a participant or a beneficiary, can exempt from attachment in bankruptcy proceedings the right to receive money from a retirement or profit-sharing plan. This act includes a person's interest in health savings plans and inherited accounts to this list of exemptions.

This provision is identical to a provision contained in HCS/HB 371 (2013), HB 447 (2013), and the truly agreed CCS/HCS/HB 100 (2013) and CCS/SS/SCS/HCS/HB 100 (2013) that were both signed by the Governor.

CHRIS HOGERTY