By Smithee                                             H.B. No. 823
         76R4114 DLF-D                           
                                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;
 1-9     ESTOPPEL.  In any litigation or other proceeding brought by or on
1-10     behalf of a donor or the donor's heirs or distributees, an annuity
1-11     that the donor has treated as a charitable gift annuity in a filing
1-12     with the United States Internal Revenue Service shall be considered
1-13     to be a qualified charitable gift annuity issued by a charitable
1-14     organization, as described by Sections 1, 2, and 6 of this article
1-15     and Section 2(b), Article 1.14-1 of this code.
1-16           SECTION 2.  (a)  The purpose of this section is to clarify
1-17     the intent of the legislature with respect to the effect of
1-18     Sections 1, 2, and 6, Article 1.14-1A, Insurance Code, and Section
1-19     2(b), Article 1.14-1, Insurance Code, as those sections existed
1-20     immediately before the effective date of this Act.
1-21           (b)  Sections 1, 2, and 6, Article 1.14-1A, Insurance Code,
1-22     and Section 2(b), Article 1.14-1, Insurance Code, as those sections
1-23     existed immediately before the effective date of this Act, apply to
1-24     any charitable gift annuity issued before, on, or after the
 2-1     effective date of this Act, including any charitable gift annuity
 2-2     that is the subject of litigation or another proceeding that is
 2-3     pending on the effective date of this Act.
 2-4           (c)  This section applies without regard to the effective
 2-5     date of the legislation enacting Article 1.14-1A, Insurance Code,
 2-6     or any other legislation enacted by any legislature that amended
 2-7     the provisions of Article 1.14-1A, Insurance Code.
 2-8           SECTION 3.  This Act applies to any charitable gift annuity
 2-9     issued before, on, or after the effective date of this Act,
2-10     including any charitable gift annuity that is the subject of
2-11     litigation or another proceeding that is pending on the effective
2-12     date of this Act.
2-13           SECTION 4.  The importance of this legislation and the
2-14     crowded condition of the calendars in both houses create an
2-15     emergency and an imperative public necessity that the
2-16     constitutional rule requiring bills to be read on three several
2-17     days in each house be suspended, and this rule is hereby suspended,
2-18     and that this Act take effect and be in force from and after its
2-19     passage, and it is so enacted.