2025 · Regular session · House bill
HB3806
HB3806 expands restrictions on a state trust company placed under a formal supervision order.
Official caption: Relating to prohibited activities of a state trust company under supervision.
Official report lists House author(s): Lambert. This does not identify sponsors or amendment drafters.
Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.
Bill highlights
Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.
- HB3806 expands restrictions on a state trust company placed under a formal supervision order.
- These restrictions retain the existing qualifications for prior approval by the commissioner or supervisor and for what the supervision order otherwise permits or restricts.
- Existing restrictions remain for disposing of or encumbering company assets, lending or investing company funds, incurring obligations, accepting or soliciting new client accounts, and changing executive officers or directors.
- A formal supervision order is a protective intervention: existing law requires evidence of a hazardous condition and a determination that supervision appears necessary and in the relevant parties’ or public’s best interest.
What does it do?
HB3806 expands restrictions on a state trust company placed under a formal supervision order. Beginning September 1, 2025, the restricted activities include any dividend, rather than only a cash dividend, and any other activity the banking commissioner determines threatens the company’s safety and soundness. Final law.
These restrictions retain the existing qualifications for prior approval by the commissioner or supervisor and for what the supervision order otherwise permits or restricts. The act is therefore not an absolute ban on every dividend, and it does not impose these special restrictions on every trust company merely because it is regulated. Updated duties.
Existing restrictions remain for disposing of or encumbering company assets, lending or investing company funds, incurring obligations, accepting or soliciting new client accounts, and changing executive officers or directors. The new catch-all provision allows the commissioner to address other threatening activities rather than relying only on that list.
A formal supervision order is a protective intervention: existing law requires evidence of a hazardous condition and a determination that supervision appears necessary and in the relevant parties’ or public’s best interest. Existing hearing procedures allow the company to contest the order or demonstrate that the conditions for ending it have been met. HB3806 does not replace those procedures or automatically put any particular company under supervision. Supervision authority and hearing rights.
What changed along the way?
The introduced, House-report, engrossed, Senate-report and final operative provisions match. The amendment index reports no amendments, and both committees reported it without amendments. Version index.
The House passed it 131–0 with three present but not voting; the Senate passed it 31–0. The governor signed it June 20, 2025. Despite those votes, its express effective date is September 1, 2025, not the signing date. Official history.
For the full amendment record, open the official amendment index.
Official bill versions
Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.
Who could benefit—and who could bear the costs?
Clients, creditors and owners may benefit when a troubled trust company cannot avoid dividend controls by making a noncash distribution or pursue another activity the commissioner finds threatens its soundness. A supervised company and its owners face broader approval requirements and less freedom to make distributions or undertake risky activities. Actual effects depend on the company, its supervision order and regulatory decisions.
The May 9 fiscal note, like the introduced note, anticipates no significant state or local fiscal impact. It says the self-directed, semi-independent Department of Banking pays its own operating costs and is prohibited from imposing costs on General Revenue. It does not estimate private compliance expenses, shareholder losses or avoided customer losses.
Review boundary: This describes the change in supervision powers, not an assessment of any company’s financial health, an insurance guarantee or a claim that supervision has been ordered.
Official sources
- Bill history and latest recorded action
- Bill versions, analyses and fiscal notes
- Action history and votes
- Amendment index
Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.
