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