1-1     By:  Sibley                                           S.B. No. 1948

 1-2           (In the Senate - Filed May 7, 1997; May 7, 1997, read first

 1-3     time and referred to Committee on Economic Development;

 1-4     May 9, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 10, Nays 0; May 9, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1948                  By:  Sibley

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the treatment of certain annuities as charitable gift

1-11     annuities and the application of the Insurance Code and certain

1-12     other laws to charitable gift annuities.

1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-14           SECTION 1.  Article 1.14-1A, Insurance Code, is amended by

1-15     adding Section 7 to read as follows:

1-16           Sec. 7.  TREATMENT OF ANNUITY AS CHARITABLE GIFT ANNUITY.

1-17     Any annuity treated by the donor as a charitable gift annuity for

1-18     any federal tax purpose shall be considered in any litigation or

1-19     proceeding brought by or on behalf of the donor or the donor's

1-20     heirs or distributees as a charitable gift annuity issued by a

1-21     charitable organization for purposes of Sections 1, 2, and 6 of

1-22     this article and Section 2(b), Article 1.14-1 of this code.

1-23           SECTION 2.  Sections 1, 2, 6, and 7, Article 1.14-1A,

1-24     Insurance Code, and Subsection (b), Section 2, Article 1.14-1,

1-25     Insurance Code, as those sections exist on the effective date of

1-26     this Act, apply to any charitable gift annuity issued before, on,

1-27     or after the effective date of this Act, including any charitable

1-28     gift annuity that is the subject of any litigation or other

1-29     proceeding that is pending before, on, or after the effective date

1-30     of this Act.

1-31           SECTION 3.  The importance of this legislation and the

1-32     crowded condition of the calendars in both houses create an

1-33     emergency and an imperative public necessity that the

1-34     constitutional rule requiring bills to be read on three several

1-35     days in each house be suspended, and this rule is hereby suspended,

1-36     and that this Act take effect and be in force from and after its

1-37     passage, and it is so enacted.

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