By:  Sibley                                           S.B. No. 1948

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     annuities and the application of the Insurance Code and certain

 1-3     other laws to charitable gift annuities.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Article 1.14-1A, Insurance Code, is amended by

 1-6     adding Section 7 to read as follows:

 1-7           Sec. 7.  TREATMENT OF ANNUITY AS CHARITABLE GIFT ANNUITY;

 1-8     ESTOPPEL.  A donor who treats an annuity as a charitable gift

 1-9     annuity in a filing with the United States Internal Revenue Service

1-10     is estopped from asserting in any litigation or proceeding that the

1-11     annuity is not a qualified charitable gift annuity issued by a

1-12     charitable organization, as described by Sections 1, 2, and 6 of

1-13     this article and Section 2(b), Article 1.14-1 of this code.

1-14           SECTION 2.  (a)  The purpose of this section is to clarify

1-15     the intent of the legislature with respect to the effect of

1-16     Sections 1, 2, and 6, Article 1.14-1A, Insurance Code, as those

1-17     sections existed immediately before the effective date of this Act.

1-18           (b)  Sections 1, 2, and 6, Article 1.14-1A, Insurance Code,

1-19     as those sections existed immediately before the effective date of

1-20     this Act, apply to any charitable gift annuity issued before, on,

1-21     or after the effective date of this Act, including any charitable

 2-1     gift annuity that is the subject of litigation or another

 2-2     proceeding that is pending on the effective date of this Act.

 2-3           (c)  This section applies without regard to the effective

 2-4     date of the legislation enacting Article 1.14-1A, Insurance Code,

 2-5     or any other legislation enacted by any legislature that amended

 2-6     the provisions of Article 1.14-1A, Insurance Code.

 2-7           SECTION 3.  This Act applies to any charitable gift annuity

 2-8     issued before, on, or after the effective date of this Act,

 2-9     including any charitable gift annuity that is the subject of

2-10     litigation or another proceeding that is pending on the effective

2-11     date of this Act.

2-12           SECTION 4.  The importance of this legislation and the

2-13     crowded condition of the calendars in both houses create an

2-14     emergency and an imperative public necessity that the

2-15     constitutional rule requiring bills to be read on three several

2-16     days in each house be suspended, and this rule is hereby suspended,

2-17     and that this Act take effect and be in force from and after its

2-18     passage, and it is so enacted.