Texas 2009 - 81st Regular

Texas House Bill HB2650 Compare Versions

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

Old	New	Differences
1	1	81R4725 PMO-D
2	2	By: Smithee H.B. No. 2650
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the sale of certain annuities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 102.002, Insurance Code, is amended to
10	10	read as follows:
11	11	Sec. 102.002. QUALIFIED CHARITABLE GIFT ANNUITY. (a) 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.
26	26	(b) The department may investigate as necessary to verify
27	27	that an organization that issues an annuity meets the criteria
28	28	described by Subsection (a).
29	29	SECTION 2. Section 102.102(c), Insurance Code, is amended
30	30	to read as follows:
31	31	(c) The charitable organization may not be required to
32	32	submit additional information except to:
33	33	(1) aid the department in an investigation and
34	34	verification of the organization conducted under Section
35	35	102.002(b); and
36	36	(2) determine appropriate penalties under Section
37	37	102.104.
38	38	SECTION 3. Section 1107.006, Insurance Code, is amended to
39	39	read as follows:
40	40	Sec. 1107.006. MATURITY DATE. (a) In determining the value
41	41	of benefits under Sections 1107.102, 1107.103, and 1107.104, [and
42	42	subject to Subsection (b), if an annuity contract permits an
43	43	election to have annuity payments begin on optional maturity
44	44	dates,] the maturity date is considered to be [the latest date on
45	45	which an election is permitted by the contract.
46	46	[(b) A maturity date determined under this section may not
47	47	be later than] the later of:
48	48	(1) the next anniversary of the annuity contract that
49	49	follows the annuitant's 70th birthday; or
50	50	(2) the 10th anniversary of the contract.
51	51	(b) Subject to Subsection (a), if an annuity contract
52	52	permits an election to have annuity payments begin on optional
53	53	maturity dates, the maturity date is considered to be the latest
54	54	date on which an election is permitted by the contract.
55	55	SECTION 4. Section 1115.005, Insurance Code, is amended to
56	56	read as follows:
57	57	Sec. 1115.005. RULES. (a) The commissioner may adopt
58	58	reasonable rules in the manner prescribed by Subchapter A, Chapter
59	59	36, to accomplish and enforce the purpose of this chapter.
60	60	(b) The commissioner by rule shall limit the commission or
61	61	other compensation that may be paid to an agent for the sale of an
62	62	annuity.
63	63	SECTION 5. This Act applies only to an annuity that is
64	64	delivered, issued for delivery, or renewed on or after January 1,
65	65	2010. An annuity that is delivered, issued for delivery, or renewed
66	66	before January 1, 2010, is governed by the law as it existed
67	67	immediately before the effective date of this Act, and that law is
68	68	continued in effect for that purpose.
69	69	SECTION 6. This Act takes effect September 1, 2009.