All Roll Calls
Yes: 114 • No: 9
UtahH.B. 1762026 General SessionHouseWALLET
Trust Business Modifications
Sponsored By: Anthony E. Loubet (Republican)
Signed by Governor
BusinessFiduciaries and TrustsDivision of Finance
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 3 benefits, 1 costs, 6 mixed.
Trust account details must stay private
Trust companies must keep communications and writings about agency and fiduciary accounts confidential. This covers an account’s existence, condition, management, and administration. Creditors and stockholders generally cannot obtain this information, though specified staff, auditors, attorneys, and service providers can receive it. A court can order disclosure in a case concerning the account.
Trust assets stay separate and protected
Trust companies must keep property held for others separate from company assets and keep separate transaction records. That property is protected from claims and debts against the company. Companies can register securities in a nominee’s name, but remain liable for the nominee’s acts involving those investments. Non-security investments can remain in nominee names only if held that way on June 30, 1981. Companies must keep ownership records for those older investments, retain possession or control, and keep them separate from company assets.
Trust companies face audits and inspections
Trust companies must let the commissioner, appointed examiners, and appropriate regulators inspect required trust-business records. A board committee excluding active trust-department officers must audit the business at least once every 15 months. It can use auditors who answer only to the board, and must review legal compliance and sound fiduciary practices. The audit is not required if a state or other trust-company regulator examines the company during that period. Regulators can request the audit report and resulting actions.
Trust company reorganizations face ownership limits
Authorized Utah trust companies have limited arrangements that qualify as reorganizations under the law. They can create a wholly owned subsidiary solely to conduct all or part of their trust business. They can also combine with a wholly owned trust-company subsidiary of themselves or their depository institution holding company.
Trust insider deals face safeguards
Trust companies cannot lend trust money to themselves or insiders without permission from the account document, an authorized person, or a court. An officer, director, or employee making or receiving a prohibited loan commits a third-degree felony. Buying company or insider investments, or trading account property with insiders, is barred unless trust law or the governing document allows it. Companies can retain and vote their own or affiliates’ stock received in an account unless the governing document says otherwise. Written securities policies must support compliance with securities laws and ban using material inside information in trading decisions or recommendations.
Trust deposits get collateral with exceptions
Trust companies can deposit money held for others in their own banking departments or affiliated banks. Deposits above applicable federal insurance limits require collateral; affiliated-bank collateral must follow federal rules. An account’s creating document can expressly allow deposits without collateral. Those unsecured deposits count as general deposits if the bank fails, and interest is limited to rates on comparable deposits.
Trust investments gain options and safeguards
Trust companies must invest or distribute account money promptly, following account terms, and avoid leaving it idle longer than reasonably necessary. Court-appointed accounts follow Utah trust-law investment and accounting rules unless their documents say otherwise; discretionary investments require board-approved security classes. Specified trustee powers and duties apply throughout a company’s trust business, even when it is not serving as trustee. Companies can pool their own and affiliates’ account investments under regulator rules unless the governing document or court order forbids it. Joining an affiliate’s fund also requires authorization under the affiliate’s chartering laws and explicit permission in the fund plan. Pooled funds need court accountings only when ordered, though companies can ask courts to approve accountings on court-set terms.
Trust company exits must protect accounts
A company seeking to leave trust business must prove it has been released from all trust duties and obligations. After permit revocation, it cannot conduct trust business or use “trust” in its name or business. The commissioner can seek revocation for unlawful or unsafe practices, permit or rule violations, or five consecutive years without trust activity. The company receives notice and a hearing; revocation can follow a proven allegation or failure to appear. An enforcement revocation bars new accounts but allows existing accounts to be served while promptly transferred or ended. That order takes effect 30 days after service unless the commissioner or a court pauses, changes, ends, or overturns it.
Trust helpers get exemptions and limits
Trust directors, protectors, advisors, similar helpers, and health-care decision surrogates are excluded from the definition of trust business. Beginning May 6, 2026, trust directors are also barred from conducting activities that do count as trust business. Covered court-supervised fiduciaries need professional credentials or must show the court they have the required skills. Court-appointed trustees and estate representatives need majority approval from current trust distributees or interested estate parties, or must show competence. Guardians qualify only when a conservator also serves or their duties are limited and non-financial. For covered attorneys and accountants, trust-law complaints go to professional regulators, not financial-department enforcement: the Utah State Bar or Division of Professional Licensing.
Who can provide Utah trust services
Beginning May 6, 2026, Utah defines a trust company as a person authorized to conduct trust business. Eligible providers remain limited to specified banks, related companies, and corporations operating lawfully and continuously since before July 1, 1981. Covered court- or law-appointed roles require a commissioner’s permit, with an exception for banks and corporations authorized and operating before July 1, 1981. Limited exceptions also cover employee trusts, organization-controlled charitable trusts, controlling-share holdings, retirement accounts, and authorized state agencies. Out-of-state trustees qualify only for trusts created and administered elsewhere; federal institutions act within their federal regulator’s authorization. Applicants must pay a fee and undergo review of finances, management, the proposed trust officer, community need, and expected business. Approval standards generally cannot be tougher for state-chartered institutions than comparable federal institutions, but the commissioner can impose public-protection standards.
Sponsors & Cosponsors
Sponsor
Anthony E. Loubet
Republican • House
Cosponsors
Todd Weiler
Republican • Senate
Roll Call Votes
Senate vote • 3/6/2026
Senate/ passed 2nd & 3rd readings/ suspension
Yes: 25 • No: 0
Senate vote • 3/3/2026
Senate Comm - Favorable Recommendation
Yes: 6 • No: 0
House vote • 2/27/2026
House/ passed 3rd reading
Yes: 65 • No: 1
House vote • 2/27/2026
House/ uncircled
Yes: 0 • No: 0
House vote • 2/27/2026
House/ substituted
Yes: 0 • No: 0
House vote • 2/24/2026
House/ circled
Yes: 0 • No: 0
House vote • 2/18/2026
House Comm - Favorable Recommendation
Yes: 8 • No: 5
House vote • 2/18/2026
House Comm - Substitute Recommendation
Yes: 10 • No: 3
Actions Timeline
Governor Signed
3/18/2026House/ to Governor
3/16/2026HouseHouse/ received enrolled bill from Printing
3/16/2026HouseHouse/ enrolled bill to Printing
3/12/2026HouseEnrolled Bill Returned to House or Senate
3/12/2026Draft of Enrolled Bill Prepared
3/10/2026Bill Received from House for Enrolling
3/10/2026House/ signed by Speaker/ sent for enrolling
3/6/2026HouseHouse/ received from Senate
3/6/2026HouseSenate/ to House
3/6/2026SenateSenate/ signed by President/ returned to House
3/6/2026SenateSenate/ passed 2nd & 3rd readings/ suspension
3/6/2026SenateSenate/ 2nd & 3rd readings/ suspension
3/6/2026SenateSenate/ Rules to 2nd Reading Calendar
3/6/2026SenateSenate/ 2nd Reading Calendar to Rules
3/4/2026SenateSenate/ placed on 2nd Reading Calendar
3/4/2026SenateSenate/ committee report favorable
3/4/2026SenateSenate Comm - Favorable Recommendation
3/3/2026Senate/ to standing committee
2/27/2026SenateSenate/ 1st reading (Introduced)
2/27/2026SenateSenate/ received from House
2/27/2026SenateHouse/ to Senate
2/27/2026HouseHouse/ passed 3rd reading
2/27/2026HouseHouse/ substituted
2/27/2026HouseHouse/ uncircled
2/27/2026House
Bill Text
Enrolled
3/12/2026
Substitute #3
2/27/2026
Substitute #2
2/25/2026
Substitute #1
2/18/2026
Introduced
1/7/2026