California Senate Bill SB308 Introduced / Bill

 BILL NUMBER: SB 308INTRODUCED BILL TEXT INTRODUCED BY Senator Harman FEBRUARY 25, 2009 An act to amend Section 6501 of the Business and Professions Code, relating to professional fiduciaries. LEGISLATIVE COUNSEL'S DIGEST SB 308, as introduced, Harman. Professional fiduciaries. Existing law, the Professional Fiduciaries Act, defines professional fiduciaries required to be licensed by the Professional Fiduciaries Bureau within the Department of Consumer Affairs as a person who acts as a conservator or guardian for 2 or more persons who are related to the professional fiduciary or each other, or a person who acts as a trustee or agent under a durable power of attorney for more than 3 people or families who are not related to the professional fiduciary. This bill would specify how individuals are counted to determine whether a person is a professional fiduciary, including that individuals related to the fiduciary would not be counted and individuals or trustors who are related to each other would be counted as one individual. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 6501 of the Business and Professions Code is amended to read: 6501. As used in this chapter, the following terms have the following meanings: (a) "Act" means this chapter. (b) "Bureau" means the Professional Fiduciaries Bureau within the Department of Consumer Affairs, established pursuant to Section 6510. (c) "Client" means an individual who is served by a professional fiduciary. (d) "Department" means the Department of Consumer Affairs. (e) "Licensee" means a person who is licensed under this chapter as a professional fiduciary. (f)  (1)    "Professional fiduciary" means a person who acts as a conservator  of the person, the estate, or person and estate,  or guardian  of the estate, or person and estate,  for two or more  persons   individuals  at the same time who are not related to the professional fiduciary or to each other  by blood, adoption, marriage, or registered domestic partnership  . "Professional fiduciary" also means a person who acts as a trustee, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, for more than three  people or more than three families, or a combination of people and families that totals more than three   individuals  , at the same time  , who are not related to the   .   (2)     In counting individuals under th   is   subdivision t   o determine whether a person is a  professional fiduciary  the following shall apply:   (A) Individuals who are related to the fiduciary shall not be counted.   (B) All individuals who are related to each other shall be counted as one individual.   (C) All trustors who are related to each other shall be counted as one individual, and neither the number of trusts nor the number of beneficiaries of those trusts shall be counted.   (3)     For purposes of this subdivision, "related" means related  by blood, adoption, marriage, or registered domestic partnership.  "Professional   (4)     "Professional  fiduciary" does not include any of the following:  (1)   (A)  A trust company, as defined in Section 83 of the Probate Code.  (2)   (B) An FDIC-insured institution, or its holding companies, subsidiaries, or affiliates. For the purposes of this  paragraph   subparagraph  , "affiliate" means any entity that shares an ownership interest with, or that is under the common control of, the FDIC-insured institution.  (3) A person employed by an entity described in paragraph (1) or (2) who is acting in the course and scope of that employment.   (4)   (C)  Any  public officer or  public agency, including the public guardian, public conservator, or other agency of the State of California or of a county of California  , when that public officer or public agency is acting in the course and scope of official duties,  or any regional center for persons with developmental disabilities as defined in Section 4620 of the Welfare and Institutions Code.  (D) A person employed by an entity or agency described in subparagraph (A), (B), or (C) who is acting within the course and scope of that employment, and a public officer of an agency described in subparagraph (C) acting in the course and scope of official duties.   (5)   (E)  Any person whose sole activity as a professional fiduciary is as a broker-dealer, broker-dealer agent, investment adviser, or investment adviser representative registered and regulated under the Corporate Securities Law of 1968 (Division 1 (commencing with Section 25000) of Title 4 of the Corporations Code), the Investment Advisers Act of 1940 (15 U.S.C. Sec. 80b-1 et seq.), or the Securities Exchange Act of 1934 (15 U.S.C. Sec. 78a et seq.), or involves serving as a trustee to a company regulated by the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). (g) "Committee" means the Professional Fiduciaries Advisory Committee, as established pursuant to Section 6511.