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


Senate Research Center   S.B. 333
76R4114 DLF-DBy: Sibley
Economic Development
2/11/1999
As Filed


DIGEST 

Charitable gift 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 would
clarify that H.B. 3104 applies to all charitable gift annuities, and that
certain annuities are treated as charitable gift annuities.  

PURPOSE

As proposed, 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 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 2. Sets forth the purpose of this section.  Provides that Sections
1, 2, and 6, Article 1.141A, Insurance Code, and 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 3. 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 on the effective date of this Act. 

SECTION 4. Emergency clause.
  Effective date: upon passage.