Text: SF00101 Text: SF00103 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 102 1 2 1 3 AN ACT 1 4 RELATING TO CHARITABLE GIFT ANNUITIES, BY PROVIDING FOR 1 5 NOTICE AND FILING REQUIREMENTS AND PROVIDING FOR PENALTIES. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 507B.3, unnumbered paragraph 1, Code 1 10 2001, is amended to read as follows: 1 11NoA person shall not engage in this state in any trade 1 12 practice which is defined in this chapter as, or determined 1 13 pursuant to section 507B.6of this chapterto be, an unfair 1 14 method of competition, or an unfair or deceptive act or 1 15 practice in the business of insurance. The issuance of a 1 16 qualified charitable gift annuity as provided in chapter 508F 1 17 does not constitute a trade practice in violation of this 1 18 chapter. 1 19 Sec. 2. NEW SECTION. 508F.1 DEFINITIONS. 1 20 As used in this chapter, unless the context clearly 1 21 indicates otherwise: 1 22 1. "Charitable gift annuity" means a transfer of property 1 23 by a donor to a charitable organization in return for an 1 24 annuity payable over one or two lives, if the actuarial value 1 25 of the annuity is less than the value of the property 1 26 transferred and the difference in value constitutes a 1 27 charitable deduction for federal tax purposes. 1 28 2. "Charitable organization" means an entity described by 1 29 any of the following: 1 30 a. Section 501(c)(3) of the Internal Revenue Code. 1 31 b. Section 170(c) of the Internal Revenue Code. 1 32 3. "Commissioner" means the commissioner of insurance. 1 33 4. "Internal Revenue Code" means the Internal Revenue Code 1 34 of 1986 as designated by the Tax Reform Act of 1986, as 1 35 amended to a date designated by rules adopted by the 2 1 commissioner. 2 2 5. "Property" means anything of value that is subject to 2 3 ownership, and includes but is not limited to property 2 4 classified as real, personal, mixed, tangible or intangible, 2 5 or any present or future interest in such property. 2 6 6. "Qualified charitable gift annuity" means a charitable 2 7 gift annuity that is described by section 501(m)(5) or 2 8 514(c)(5) of the Internal Revenue Code, if all of the 2 9 following apply: 2 10 a. The annuity agreement is issued by a charitable 2 11 organization. 2 12 b. On the date that the annuity agreement is issued, the 2 13 charitable organization has a minimum value of the lesser of 2 14 three hundred thousand dollars or five times the face amount 2 15 of total outstanding annuities in unrestricted cash, cash 2 16 equivalents, or publicly traded securities. However, the 2 17 total outstanding annuities as provided in this paragraph do 2 18 not include assets funding the annuity agreement. 2 19 c. The charitable organization has been in continuous 2 20 operation for at least three years or is a successor or 2 21 affiliate of a charitable organization that has been in 2 22 continuous operation for at least three years. 2 23 Sec. 3. NEW SECTION. 508F.2 QUALIFIED CHARITABLE GIFT 2 24 ANNUITY IS NOT INSURANCE. 2 25 1. The issuance of a qualified charitable gift annuity 2 26 does not constitute engaging in the business of insurance in 2 27 this state. 2 28 2. A charitable gift annuity that meets the requirements 2 29 of a qualified charitable gift annuity shall be deemed to be a 2 30 qualified charitable gift annuity for purposes of this 2 31 chapter, regardless of whether the charitable gift annuity was 2 32 issued prior to the effective date of this Act. The issuance 2 33 of that charitable gift annuity shall not be construed as 2 34 engaging in the business of insurance in this state. 2 35 Sec. 4. NEW SECTION. 508F.3 ANNUITY AGREEMENT – NOTICE 3 1 TO DONOR. 3 2 An agreement for a qualified charitable gift annuity 3 3 executed by a charitable organization and a donor shall be in 3 4 writing. The annuity agreement shall include a notice stating 3 5 that a qualified charitable gift annuity is not insurance 3 6 under the laws of this state and is not subject to regulation 3 7 by the commissioner or protected by an insurance guaranty fund 3 8 or an insurance guaranty association. The notice required by 3 9 this section shall be in a separate paragraph and in a type 3 10 size no smaller than that generally used in the annuity 3 11 agreement. 3 12 Sec. 5. NEW SECTION. 508F.4 NOTICE FILED WITH THE 3 13 COMMISSIONER. 3 14 1. A charitable organization that issues qualified 3 15 charitable gift annuities in this state on and after the 3 16 effective date of this Act shall file a notice with the 3 17 commissioner in writing not later than the date on which it 3 18 executes the organization's first qualified charitable annuity 3 19 agreement. All of the following shall apply: 3 20 a. The notice must be signed by an officer or director of 3 21 the charitable organization. 3 22 b. The notice must identify the name and address of the 3 23 charitable organization. 3 24 c. The notice must include a copy of the determination 3 25 letter issued by the internal revenue service. 3 26 d. The notice must certify that the charitable 3 27 organization is a bona fide charitable organization and that 3 28 the annuities issued by the charitable organization are 3 29 qualified charitable gift annuities. 3 30 2. The charitable organization is not required to submit 3 31 additional information, unless the information is to be used 3 32 to determine appropriate penalties that may be applicable 3 33 under section 508F.5. 3 34 Sec. 6. NEW SECTION. 508F.5 FAILURE TO COMPLY WITH 3 35 REQUIREMENTS. 4 1 1. The failure of a charitable organization to comply with 4 2 the requirements of sections 508F.3 and 508F.4 does not 4 3 prevent a charitable gift annuity that otherwise meets the 4 4 requirements of this chapter from constituting a qualified 4 5 charitable gift annuity. 4 6 2. The commissioner shall enforce performance of the 4 7 requirements of sections 508F.3 and 508F.4. The commissioner 4 8 may do any of the following: 4 9 a. Send a letter by restricted certified mail to the 4 10 charitable organization demanding that the charitable 4 11 organization comply with this chapter. 4 12 b. Establish and impose civil penalties on the charitable 4 13 organization in an amount not to exceed one thousand dollars 4 14 for each qualified charitable gift annuity issued until the 4 15 charitable organization complies with the requirements of this 4 16 chapter. 4 17 Sec. 7. NEW SECTION. 508F.6 PENALTIES. 4 18 The commissioner may determine, after hearing, that the 4 19 issuance of an annuity is not in compliance with this chapter 4 20 and that the entity issuing the annuity is subject to the 4 21 provisions and penalties of chapters 507A and 507B. 4 22 Sec. 8. NEW SECTION. 508F.7 NOT UNFAIR OR DECEPTIVE 4 23 TRADE PRACTICE. 4 24 The issuance of a qualified charitable gift annuity does 4 25 not constitute a violation of chapter 507B. 4 26 Sec. 9. NEW SECTION. 508F.8 RULES. 4 27 The commissioner may adopt rules pursuant to chapter 17A 4 28 necessary to administer and enforce this chapter. 4 29 Sec. 10. NOTICE FILING REQUIREMENTS – DEADLINE. 4 30 Notwithstanding section 508F.4 as enacted in this Act, a 4 31 charitable organization that issues qualified charitable gift 4 32 annuities in this state on and after the effective date of 4 33 this Act shall have ninety days following the effective date 4 34 of this Act to file a notice with the commissioner as 4 35 otherwise provided in section 508F.4. 5 1 5 2 5 3 5 4 MARY E. KRAMER 5 5 President of the Senate 5 6 5 7 5 8 5 9 BRENT SIEGRIST 5 10 Speaker of the House 5 11 5 12 I hereby certify that this bill originated in the Senate and 5 13 is known as Senate File 102, Seventy-ninth General Assembly. 5 14 5 15 5 16 5 17 MICHAEL E. MARSHALL 5 18 Secretary of the Senate 5 19 Approved , 2001 5 20 5 21 5 22 5 23 THOMAS J. VILSACK 5 24 Governor
Text: SF00101 Text: SF00103 Text: SF00100 - SF00199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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