By: Ellis, et al. S.B. No. 961
(In the Senate - Filed February 19, 2009; March 9, 2009,
read first time and referred to Committee on State Affairs;
April 6, 2009, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 8, Nays 0; April 6, 2009,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 961 By: Ellis
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. Subsection (c), Section 102.102, 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.
SECTION 4. Subchapter B, Chapter 4005, Insurance Code, is
amended by adding Section 4005.056 to read as follows:
Sec. 4005.056. MODIFICATION OF METHOD OF COMPENSATION FOR
SALE OF ANNUITIES. In addition to any other remedy available, the
commissioner may order the modification of a method of compensation
for the sale of an annuity that the commissioner finds, after notice
and an opportunity for hearing, results in a pattern or practice
that violates Chapter 1115.
SECTION 5. This Act applies only to an annuity that is
delivered, issued for delivery, or renewed on or after January 1,
2011. An annuity that is delivered, issued for delivery, or renewed
before January 1, 2011, 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.
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