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. Section 2, Article 1.14-1A, Insurance Code, is
1-6 amended by adding Subsection (c) to read as follows:
1-7 (c) Any person or entity involved in the issuance of a
1-8 qualified charitable gift annuity shall have immunity from suit,
1-9 including both a defense to liability and the right not to bear the
1-10 cost, burden, and risk of discovery and trial, as to any claim
1-11 brought by or on behalf of the donor or the donor's heirs or
1-12 distributees alleging that the issuance of a charitable gift
1-13 annuity constitutes engaging in the business of insurance in this
1-14 state. An interlocutory appeal may be taken if a court denies or
1-15 otherwise fails to grant a motion for summary judgment that is
1-16 based on an assertion of the immunity provided in this subsection.
1-17 SECTION 2. Article 1.14-1A, Insurance Code, is amended by
1-18 adding Section 7 to read as follows:
1-19 Sec. 7. TREATMENT OF ANNUITY AS CHARITABLE GIFT ANNUITY;
1-20 ESTOPPEL. In any litigation or other proceeding brought by or on
1-21 behalf of a donor or the donor's heirs or distributees, an annuity
1-22 that the donor has treated as a charitable gift annuity in a filing
1-23 with the United States Internal Revenue Service shall be considered
1-24 to be a charitable gift annuity issued by a charitable
2-1 organization, as described by Sections 1, 2, and 6 of this article
2-2 and Section 2(b), Article 1.14-1 of this code.
2-3 SECTION 3. (a) Sections 1, 2, 6, and 7, Article 1.14-1A,
2-4 Insurance Code, and Subsection (b), Section 2, Article 1.14-1,
2-5 Insurance Code, as those sections exist on the effective date of
2-6 this Act, apply to any charitable gift annuity issued before, on,
2-7 or after the effective date of this Act, including any charitable
2-8 gift annuity that is the subject of litigation or another
2-9 proceeding that is pending before, on, or after the effective date
2-10 of this Act.
2-11 (b) This section applies without regard to the effective
2-12 date of the legislation enacting Article 1.14-1A, Insurance Code,
2-13 or any other legislation enacted by any legislature that amended
2-14 the provisions of Article 1.14-1A, Insurance Code.
2-15 SECTION 4. This Act applies to any charitable gift annuity
2-16 issued before, on, or after the effective date of this Act,
2-17 including any charitable gift annuity that is the subject of
2-18 litigation or another proceeding that is pending before, on, or
2-19 after the effective date of this Act.
2-20 SECTION 5. The importance of this legislation and the
2-21 crowded condition of the calendars in both houses create an
2-22 emergency and an imperative public necessity that the
2-23 constitutional rule requiring bills to be read on three several
2-24 days in each house be suspended, and this rule is hereby suspended,
2-25 and that this Act take effect and be in force from and after its
2-26 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 333 passed the Senate on
March 2, 1999, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 18, 1999, by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 333 passed the House, with
amendment, on May 14, 1999, by the following vote: Yeas 140,
Nays 0, one present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor