Amends TCA Title 45, Chapter 1 and Title 45, Chapter 2.

ASSESSMENTS AGAINST STATE BANKS Present law requires the assessment against each state bank ("banking fee") to be allocated in proportion to the total assets beneficially owned by each state bank. However, the commissioner of financial institutions ("commissioner") may establish a minimum assessment in lieu of any pro rata assessment, which must not exceed $5,000; and the maximum assessment must not exceed the annualized fee that a state bank would pay if it were a national bank of equivalent asset size. This bill deletes these provisions. Additionally, this bill requires the banking fee to be allocated in proportion to the total assets beneficially owned by each state bank. ASSESSMENTS AGAINST NON DEPOSITORY TRUST COMPANIES Under present law, nondepository trust companies that are regulated by the department must, in lieu of a banking fee based on asset size, pay to the commissioner, by July 1 of each year, $1,000 for each office operated by the trust company. In addition, nondepository trust companies must pay the actual expenses of examination at the time of examination. The fees are payable in addition to other fees and taxes now required by law and are expendable receipts for the use of the commissioner in defraying a portion of the cost of administration. This bill deletes these provisions. ASSESSMENTS AGAINST TRUST COMPANIES This bill changes how the department of financial institutions ("department") must calculate annual assessments for trust companies. Unlike the present law, this bill differentiates between public and private trust companies in regard to how their assessments will be determined, and the procedures for how their assessments must be paid. PUBLIC TRUSTS This bill provides that the amount of the department's annual budget attributable to the regulation and examination of public trust companies must be allocated and assessed among all public trust companies in proportion to each public trust company's total assets under the public trust company's administration. In determining the allocation, the following criteria applies: (1) Safekeeping and custody agency assets, where the public trust company is neither acting as trustee nor responsible for managing the asset selection for account assets, must be weighted at 50 percent of their total amount and all other assets must be weighted at 100 percent of their total amount; and (2) The minimum amount assessed to any public trust company must be $10,000. This bill requires, each public trust company's assessment to be calculated based on assets under the public trust company's administration as reported in the public trust company's report of financial condition as of June 30 of the prior fiscal year. If, for any reason, a company that was a public trust company on July 1 does not file a June 30 report of financial condition, then the commissioner must determine the public trust company's assets under administration for purposes of making the assessment from other sources of information. This bill requires a company that is a public trust company on the first day of a fiscal year to pay the full assessment for that fiscal year, and the public trust company's assessment must not be prorated for any reason. Unless public trust companies receive a different notification from the department, the department will send each public trust company, or its successor, notice of the public trust company's assessment in December of the fiscal year in which the fee is being collected. The assessment must be paid into the state treasury upon notice from the commissioner, and all moneys collected by the commissioner must be used solely by the department for administration expenses. PRIVATE TRUSTS This bill provides that the amount of the department's annual budget attributable to the regulation and examination of private trust companies must be allocated and assessed among all private trust companies such that each private trust company is assessed an equal amount. This bill requires a company that is a private trust company on the first day of a fiscal year to pay the full assessment for that fiscal year, and the private trust company's assessment must not be prorated for any reason. Unless private trust companies receive different notification by the department, the department must send each private trust company, or its successor, notice of the private trust company's assessment in December of the fiscal year in which the fee is being collected. The assessment must be paid into the state treasury upon notice from the commissioner, and all moneys collected by the commissioner must be used solely by the department for administration expenses. APPRAISAL FOR REAL PROPERTY ACQUIRED BY A BANK Under present law, if the real property is valued: (1) At $250,000 or less, then the bank may obtain an evaluation in lieu of an appraisal for real property acquired by the bank; and (2) At $100,000 or less, no appraisal or evaluation is required. This bill changes the thresholds at which a bank may obtain an evaluation in lieu of an appraisal for real property acquired by the bank by revising the provisions above to provide, instead, that if the real property is valued at $500,000 or less, then the bank may obtain an evaluation in lieu of an appraisal for real property acquired by the bank, but if the real property is valued at $250,000 or less, no appraisal or evaluation is required. USE OF THE TERM TRUST Under present law, it is unlawful for any person, firm, or corporation, other than those defined as a trust institution, to use or employ in any manner the term “trust” in connection with the carrying on or operation of business in this state. However, a person or entity may use the word "trust" if the commissioner determines it will not mislead the public that financial services are being offered. This bill revises the last sentence above to provide, instead, that the commissioner may permit the use of the term "trust" to be used upon application, if the commissioner, in the commissioner's discretion, determines that the person, corporation, partnership, or business entity will not mislead the public by employing the term, and the person, corporation, partnership, or business entity does not engage in trust activity. Upon proper showing, the commissioner may rescind approval if the commissioner determines that the public welfare so requires it.