81R4725 PMO-D
By: Smithee H.B. No. 2650
A BILL TO BE ENTITLED
AN ACT
relating to the sale of certain annuities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 102.002, Insurance Code, is amended to
read as follows:
Sec. 102.002. QUALIFIED CHARITABLE GIFT ANNUITY. (a) A
charitable gift annuity is a qualified charitable gift annuity for
purposes of this chapter if it was issued before September 1, 1995,
or if it is:
(1) described by Section 501(m)(5), Internal Revenue
Code of 1986; and
(2) issued by a charitable organization that on the
date of the annuity agreement:
(A) has, exclusive of the assets funding the
annuity agreement, a minimum of $100,000 in unrestricted cash, cash
equivalents, or publicly traded securities; and
(B) has been in continuous operation for at least
three years or is a successor or affiliate of a charitable
organization that has been in continuous operation for at least
three years.
(b) The department may investigate as necessary to verify
that an organization that issues an annuity meets the criteria
described by Subsection (a).
SECTION 2. Section 102.102(c), Insurance Code, is amended
to read as follows:
(c) The charitable organization may not be required to
submit additional information except to:
(1) aid the department in an investigation and
verification of the organization conducted under Section
102.002(b); and
(2) determine appropriate penalties under Section
102.104.
SECTION 3. Section 1107.006, Insurance Code, is amended to
read as follows:
Sec. 1107.006. MATURITY DATE. (a) In determining the value
of benefits under Sections 1107.102, 1107.103, and 1107.104, [and
subject to Subsection (b), if an annuity contract permits an
election to have annuity payments begin on optional maturity
dates,] the maturity date is considered to be [the latest date on
which an election is permitted by the contract.
[(b) A maturity date determined under this section may not
be later than] the later of:
(1) the next anniversary of the annuity contract that
follows the annuitant's 70th birthday; or
(2) the 10th anniversary of the contract.
(b) Subject to Subsection (a), if an annuity contract
permits an election to have annuity payments begin on optional
maturity dates, the maturity date is considered to be the latest
date on which an election is permitted by the contract.
SECTION 4. Section 1115.005, Insurance Code, is amended to
read as follows:
Sec. 1115.005. RULES. (a) The commissioner may adopt
reasonable rules in the manner prescribed by Subchapter A, Chapter
36, to accomplish and enforce the purpose of this chapter.
(b) The commissioner by rule shall limit the commission or
other compensation that may be paid to an agent for the sale of an
annuity.
SECTION 5. This Act applies only to an annuity that is
delivered, issued for delivery, or renewed on or after January 1,
2010. An annuity that is delivered, issued for delivery, or renewed
before January 1, 2010, is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 6. This Act takes effect September 1, 2009.