SRC-PNG S.B. 333 76(R)BILL ANALYSIS


Senate Research CenterS.B. 333
By: Sibley
Economic Development
6/23/1999
Enrolled


DIGEST 

Currently, charitable annuities have been used for over 50 years in Texas.
The 74th Legislature passed H.B. 3104 to clarify that, under existing law,
charitable gift annuities have always been recognized as legal in Texas.
However, a federal court ruled that current Texas law is unclear as to
whether H.B. 3104 was intended to apply to those charitable gift annuities
whose status was being challenged in pending lawsuits.  This bill clarifies
that H.B. 3104 applies to all charitable gift annuities, and that certain
annuities are treated as charitable gift annuities.  

PURPOSE

As enrolled, S.B. 333 provides that certain annuities are treated as
charitable gift annuities, and applies the Insurance Code and certain other
laws to charitable gift annuities. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2, Article 1.14-1A, Insurance Code, by adding
Subsection (c), to require any person or entity involved in the issuance of
a qualified charitable gift annuity to have immunity from suit as to any
claim brought by certain people alleging that the issuance of a charitable
gift annuity constitutes engaging in the business of insurance.  Authorizes
an interlocutory appeal to be taken if a court denies or otherwise fails to
grant a motion for summary judgment that is based on an assertion of the
immunity provided in this subsection. 

SECTION 2. Amends Article 1.14-1A, Insurance Code, by adding Section 7, as
follows: 

Sec.  7.  TREATMENT OF ANNUITY AS CHARITABLE GIFT ANNUITY; ESTOPPEL.
Requires an annuity that the donor has treated as a charitable gift annuity
in an Internal Revenue Service filing to be considered a qualified
charitable gift annuity issued by a charitable organization,  in any
litigation or other proceeding brought by or on behalf of a donor or the
donor's heirs. 

SECTION 3. Provides that Sections 1, 2, 6 and 7, Article 1.14-1A, Insurance
Code; Section 2(b), Article 1.14-1, Insurance Code,  apply to any
charitable gift annuity issued before, on, or after the effective date of
this Act.  Provides that this section applies without regard to the
effective date of the legislation enacting Article 1.14-1A, Insurance Code,
or any other legislation that amended Article 1.14-1A, Insurance Code. 

SECTION 4. Provides that this Act applies to any charitable gift annuity
issued before, on, or after the effective date of this Act, including any
charitable gift annuity that is the subject of litigation or another
proceeding that is pending before, on, or after the effective date of this
Act. 

SECTION 5. Emergency clause.
  Effective date: upon passage.