SENATE BILL NO. 128

INTRODUCED BY CHRISTIAENS C

BY REQUEST OF THE STATE AUDITOR

A BILL FOR AN ACT ENTITLED: "AN ACT MAKING PERMANENT THE MONTANA LIVING TRUST ACT; ELIMINATING THE LICENSE APPLICATION FEE AND LICENSE RENEWAL FEE FOR PERSONS REQUIRED TO BE LICENSED TO OFFER AND SELL LIVING TRUSTS; AMENDING SECTIONS 30-10-904 AND 30-10-907, MCA; REPEALING SECTION 18, CHAPTER 348, LAWS OF 1997; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 30-10-904, MCA, is amended to read:

"30-10-904. Licensure -- exemption. (1) A person may not offer or sell a living trust in this state unless the person:

(a) is registered as an investment adviser or investment adviser representative under 30-10-201; and

(b) has applied for and been granted a license under this section.

(2) Subsection (1) does not apply to the preparation, acceptance, or discussion of a living trust for an individual client, when the preparation of the living trust is based upon the client's particular financial circumstance, by:

(a) an attorney licensed to practice law in this state;

(b) an employee of a state or national bank with trust powers or a trust corporation; or

(c) a person on behalf of an educational, charitable, or religious institution, when done in conjunction with an attorney licensed to practice law in this state.

(3) In any proceeding under this part, the burden of proving that a person preparing a living trust is excluded from the license requirement is on the person claiming the exclusion.

(4) A person may apply for a license to offer and sell living trusts by filing an application in the form that the state auditor prescribes .

(5) The state auditor shall issue a license to offer or sell a living trust to a person who:

(a) is registered as an investment adviser or investment adviser representative under 30-10-201; and

(b) correctly files an application for the license with the state auditor

.

(6) The state auditor may issue an order denying, suspending, or revoking the effectiveness of any pending application or approved license if any provision of this part or any rule, order, or condition imposed by this part has been willfully violated in connection with the offer or sale of a living trust by a person involved in the assembling, drafting, executing, offering, or selling of the living trust.

(7) The license is effective until December 31 following issuance of the license or until another date that the state auditor establishes by rule unless the license is suspended or revoked.

(8) A person may renew a license annually, prior to the termination date of the license, if the person

is registered as an investment adviser or investment adviser representative under 30-10-201

. "

Section 2. Section 30-10-907, MCA, is amended to read:

"30-10-907. Fines -- deposit to general fund. All fines received by the state auditor pursuant to this part must be deposited in the general fund. "

NEW SECTION. Section 3. Repealer. Section 18, Chapter 348, Laws of 1997, is repealed.

NEW SECTION. Section 4. Effective date. [This act] is effective on passage and approval.

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