Senate Study Bill 1026 SENATE/HOUSE FILE BY (PROPOSED ATTORNEY GENERAL BILL) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to charitable trusts by providing for filing 2 documents with the attorney general. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1320DP 83 5 da/sc/5 PAG LIN 1 1 Section 1. NEW SECTION. 633A.5107 FILING REQUIREMENTS. 1 2 1. This section applies to a charitable trust in which one 1 3 or more charitable purposes or beneficiaries has a 1 4 noncontingent vested interest. 1 5 2. a. Within sixty days from the creation of a charitable 1 6 trust, the trustee shall register the trust with the attorney 1 7 general. The trustee shall register the charitable trust on a 1 8 form provided by the attorney general. The trustee shall also 1 9 submit a copy of the trust instrument to the attorney general 1 10 as required by the attorney general. 1 11 b. The trustee of a charitable trust shall annually file a 1 12 copy of the trust's annual report with the attorney general. 1 13 The annual report may be the same report submitted to the 1 14 persons specified in section 633A.4213 or an annual report 1 15 completed on a form provided by the attorney general. 1 16 c. The attorney general may require that documents be 1 17 filed electronically, including forms, trust instruments, and 1 18 reports. In addition, the attorney general may require the 1 19 use of electronic signatures as defined in section 554D.103. 1 20 3. At any time, the attorney general may investigate a 1 21 charitable trust to determine whether or not the charitable 1 22 trust is being administered in accordance with law and the 1 23 terms and purposes of the trust. The attorney general may, at 1 24 any time, make application to the court for such orders that 1 25 are reasonable to carry out the terms and purposes of the 1 26 trust. 1 27 Sec. 2. PRIOR EXISTING CHARITABLE TRUSTS. Not later than 1 28 sixty days after the effective date of this Act, the trustee 1 29 of a charitable trust created prior to the effective date of 1 30 this Act and still in existence shall register the trust with 1 31 and submit a current copy of the trust instrument to the 1 32 attorney general. The trustee shall comply with the remainder 1 33 of this Act as if the charitable trust were created on or 1 34 after the effective date of this Act. 1 35 Sec. 3. Section 633.303, Code 2009, is repealed. 2 1 EXPLANATION 2 2 This bill amends Code chapter 633A, the "Iowa Trust Code", 2 3 and specifically subchapter V which governs charitable trusts, 2 4 created for beneficial purposes (the relief of poverty, the 2 5 advancement of education or religion, or the promotion of 2 6 health). 2 7 A trust may be created by a settlor who transfers property 2 8 to the trust which is administered by a trustee on behalf of a 2 9 beneficiary. A settlor may create a trust using a number of 2 10 methods including by executing a trust instrument during the 2 11 settlor's lifetime or a will that takes effect upon the 2 12 settlor's death (see Code section 633A.2101). 2 13 The bill provides that within a time certain after the 2 14 creation of a charitable trust, the trustee must register the 2 15 trust with and submit a copy of the trust instrument to the 2 16 attorney general. In addition, the trustee must annually file 2 17 an annual report with the attorney general. The attorney 2 18 general may require that the documents be filed 2 19 electronically. The bill also authorizes the attorney general 2 20 to investigate a charitable trust to determine whether it is 2 21 administered in accordance with the law and the terms and 2 22 purposes of the trust and to bring legal action if necessary. 2 23 The bill provides that within 60 days after the effective 2 24 date of the bill, the trustee of a charitable trust created 2 25 prior to the effective date of the bill must comply with the 2 26 registration requirements applicable to charitable trusts 2 27 created on and after that date. 2 28 The bill eliminates a provision in Code chapter 633, the 2 29 "Iowa Trust Code", which provides that when a will creating a 2 30 charitable trust has been admitted to probate, the clerk of 2 31 court must mail a copy of the will to the attorney general, 2 32 and authorizes the attorney general to conduct an 2 33 investigation to determine whether the trust is being properly 2 34 administered and to bring any necessary action in court to 2 35 ensure compliance. 3 1 LSB 1320DP 83 3 2 da/sc/5