Texas 2009 - 81st Regular

Texas House Bill HB1857 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R11218 PMO-F
2	2	By: Eiland H.B. No. 1857
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the sale of charitable gift annuities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 102.002, 102.051, 102.102, and 102.152,
10	10	Insurance Code, are amended to read as follows:
11	11	Sec. 102.002. QUALIFIED CHARITABLE GIFT ANNUITY. A
12	12	charitable gift annuity is a qualified charitable gift annuity for
13	13	purposes of this chapter if it was issued before September 1, 1995,
14	14	or if it is:
15	15	(1) described by Section 501(m)(5), Internal Revenue
16	16	Code of 1986; and
17	17	(2) issued by a charitable organization that on the
18	18	date of the annuity agreement:
19	19	(A) has, exclusive of the assets funding the
20	20	annuity agreement, a minimum of $100,000 in unrestricted cash, cash
21	21	equivalents, or publicly traded securities; [and]
22	22	(B) has been in continuous operation for at least
23	23	three years or is a successor or affiliate of a charitable
24	24	organization that has been in continuous operation for at least
25	25	three years; and
26	26	(C) is approved by the department under Section
27	27	102.102.
28	28	Sec. 102.051. [NOT INSURANCE;] EFFECT OF CERTAIN
29	29	LAWS. (a) The issuance of a qualified charitable gift annuity:
30	30	(1) does not constitute engaging in the business of
31	31	insurance in this state;
32	32	(2) does not violate Section 15.05 or 17.46, Business &
33	33	Commerce Code; and
34	34	(3) is not an unconscionable action or course of
35	35	action for purposes of Section 17.50(a)(3), Business & Commerce
36	36	Code.
37	37	(b) Notwithstanding Subsection (a)(1), an organization that
38	38	issues a charitable gift annuity without the approval of the
39	39	department under Section 102.102 engages in the unauthorized
40	40	business of insurance and is subject to Chapter 101.
41	41	Sec. 102.102. NOTICE AND APPROVAL OF QUALIFIED STATUS [TO
42	42	DEPARTMENT]. (a) Not later than the 60th day before the date on
43	43	which a charitable organization sells the organization's first
44	44	qualified charitable gift annuity, the [A charitable] organization
45	45	[that issues qualified charitable gift annuities] shall:
46	46	(1) notify the department's annuities division in
47	47	writing of the organization's intention to issue a charitable gift
48	48	annuity; and
49	49	(2) request in writing the department's approval of
50	50	the organization as a qualified charitable organization under this
51	51	chapter [not later than the date on which the organization enters
52	52	into the organization's first qualified charitable gift annuity
53	53	agreement].
54	54	(b) The notice required by this section must:
55	55	(1) be signed by an officer or director of the
56	56	organization;
57	57	(2) identify the organization; [and]
58	58	(3) certify that:
59	59	(A) the organization is a charitable
60	60	organization; and
61	61	(B) the annuities issued by the organization are
62	62	[qualified] charitable gift annuities; and
63	63	(4) be submitted in a form and manner adopted by the
64	64	commissioner by rule under Subsection (c).
65	65	(c) The commissioner may adopt rules that establish the form
66	66	and manner of information that a charitable organization must [may
67	67	not be required to] submit to request approval under this section
68	68	[additional information except to determine appropriate penalties
69	69	under Section 102.104].
70	70	(d) A postsecondary educational institution authorized to
71	71	grant degrees under a certificate of authority issued by the Texas
72	72	Higher Education Coordinating Board is exempt from Subsections
73	73	(b)(4) and (c).
74	74	(e) On receipt of notice and request for approval under this
75	75	section, the department may:
76	76	(1) approve a request for a charitable organization to
77	77	issue charitable gift annuities; or
78	78	(2) disapprove a request and notify the issuer in
79	79	writing of the grounds for the disapproval in sufficient detail to
80	80	allow remediation.
81	81	(f) A request under Subsection (b) is considered approved if
82	82	the commissioner does not act on the request on or before the 60th
83	83	day after the date that the department received the request.
84	84	(g) The department may withdraw the approval of a request
85	85	for qualified status of a charitable organization if the
86	86	organization no longer satisfies the requirements for approval.
87	87	The department shall notify the organization in writing of the
88	88	grounds for the withdrawal of approval in sufficient detail to
89	89	allow remediation.
90	90	(h) A proceeding under this chapter for the disapproval or
91	91	withdrawal of approval is a contested case subject to Chapter 2001,
92	92	Government Code.
93	93	Sec. 102.152. TREATMENT OF ANNUITY AS CHARITABLE GIFT
94	94	ANNUITY; ESTOPPEL. In any litigation or other proceeding brought
95	95	by or on behalf of a donor or the donor's heirs or distributees, an
96	96	annuity that the donor has treated as a charitable gift annuity in a
97	97	filing with the United States Internal Revenue Service shall be
98	98	considered to be a qualified charitable gift annuity issued by a
99	99	charitable organization, as described by Subchapters A and B and
100	100	Section 101.053(b).
101	101	SECTION 2. Subchapter B, Chapter 4005, Insurance Code, is
102	102	amended by adding Section 4005.056 to read as follows:
103	103	Sec. 4005.056. MODIFICATION OF METHOD OF COMPENSATION FOR
104	104	SALE OF ANNUITIES. In addition to any other remedy available, the
105	105	commissioner may order the modification of a method of compensation
106	106	for the sale of an annuity that the commissioner finds, after
107	107	notice and an opportunity for hearing, results in a pattern or
108	108	practice that violates Chapter 1115.
109	109	SECTION 3. (a) Section 1 of this Act applies only to an
110	110	annuity that is delivered, issued for delivery, or renewed on or
111	111	after January 1, 2010. An annuity that is delivered, issued for
112	112	delivery, or renewed before January 1, 2010, is governed by the law
113	113	as it existed immediately before the effective date of this Act, and
114	114	that law is continued in effect for that purpose.
115	115	(b) Section 2 of this Act applies only to a method of
116	116	compensation resulting in a sale occurring on or after September 1,
117	117	2009. A method of compensation resulting in a sale occurring before
118	118	September 1, 2009, is governed by the law as it existed immediately
119	119	before the effective date of this Act, and that law is continued in
120	120	effect for that purpose.
121	121	SECTION 4. This Act takes effect September 1, 2009.