By Smithee                                            H.B. No. 3601

         Substitute the following for H.B. No. 3601:

         By Smithee                                        C.S.H.B. No. 3601

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the treatment of certain annuities as charitable gift

 1-3     annuities and the application of the Insurance Code and certain

 1-4     other laws to charitable gift annuities.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Article 1.14-1A, Insurance Code, is amended by

 1-7     adding Section 7 to read as follows:

 1-8           Sec. 7.  TREATMENT OF ANNUITY AS CHARITABLE GIFT ANNUITY: Any

 1-9     annuity treated by the donor as a charitable gift annuity for any

1-10     federal tax purpose shall be considered in any litigation or

1-11     proceeding brought by or on behalf of the donor or the donor's

1-12     heirs or distributees, as a charitable gift annuity issued by a

1-13     charitable organization for purposes of Section 1, 2, and 6 of this

1-14     article and Section 2(b), Article 1.14-1 of this code.

1-15           SECTION 2.  Sections 1, 2, 6 and 7, Article 1.14-1A,

1-16     Insurance Code, and Section 2(b), Article 1.14-1, Insurance Code,

1-17     as those sections exist on the effective date of this Act., apply

1-18     to any charitable gift annuity issued before, on, or after the

1-19     effective date of this Act, including any charitable gift annuity

1-20     that is the subject of any litigation or other proceeding that is

1-21     pending before, on or after the effective date of this Act.

1-22           SECTION 3.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

 2-2     days in each house be suspended, and this rule is hereby suspended,

 2-3     and that this Act take effect and be in force from and after its

 2-4     passage, and it is so enacted.