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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of certain annuities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 102.002, Insurance Code, is amended to |
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read as follows: |
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Sec. 102.002. QUALIFIED CHARITABLE GIFT ANNUITY. (a) A |
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charitable gift annuity is a qualified charitable gift annuity for |
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purposes of this chapter if it was issued before September 1, 1995, |
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or if it is: |
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(1) described by Section 501(m)(5), Internal Revenue |
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Code of 1986; and |
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(2) issued by a charitable organization that on the |
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date of the annuity agreement: |
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(A) has, exclusive of the assets funding the |
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annuity agreement, a minimum of $100,000 in unrestricted cash, cash |
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equivalents, or publicly traded securities; and |
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(B) has been in continuous operation for at least |
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three years or is a successor or affiliate of a charitable |
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organization that has been in continuous operation for at least |
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three years. |
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(b) The department may investigate as necessary to verify |
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that an organization that issues an annuity meets the criteria |
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described by Subsection (a). |
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SECTION 2. Subsection (c), Section 102.102, Insurance Code, |
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is amended to read as follows: |
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(c) The charitable organization may not be required to |
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submit additional information except to: |
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(1) aid the department in an investigation and |
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verification of the organization conducted under Section |
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102.002(b); and |
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(2) determine appropriate penalties under Section |
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102.104. |
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SECTION 3. Section 1107.006, Insurance Code, is amended to |
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read as follows: |
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Sec. 1107.006. MATURITY DATE. [(a)] In determining the |
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value of benefits under Sections 1107.102, 1107.103, and 1107.104, |
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[and subject to Subsection (b), if an annuity contract permits an
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election to have annuity payments begin on optional maturity
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dates,] the maturity date is [considered to be the latest date on
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which an election is permitted by the contract.
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[(b)
A maturity date determined under this section may not
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be later than] the later of: |
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(1) the next anniversary of the annuity contract that |
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follows the annuitant's 70th birthday; or |
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(2) the 10th anniversary of the contract. |
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SECTION 4. Subchapter B, Chapter 4005, Insurance Code, is |
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amended by adding Section 4005.056 to read as follows: |
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Sec. 4005.056. MODIFICATION OF METHOD OF COMPENSATION FOR |
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SALE OF ANNUITIES. In addition to any other remedy available, the |
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commissioner may order the modification of a method of compensation |
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for the sale of an annuity that the commissioner finds, after notice |
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and an opportunity for hearing, results in a pattern or practice |
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that violates Chapter 1115. |
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SECTION 5. This Act applies only to an annuity that is |
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delivered, issued for delivery, or renewed on or after January 1, |
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2011. An annuity that is delivered, issued for delivery, or renewed |
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before January 1, 2011, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2009. |
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