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A02172
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
520
Session of
2021
INTRODUCED BY R. MACKENZIE, HENNESSEY, JONES, JOZWIAK, MILLARD,
ROTHMAN AND RYAN, FEBRUARY 11, 2021
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 11, 2021
AN ACT
Amending the act of October 16, 1996 (P.L.712, No.127), entitled
"An act exempting the issuance by a qualified charity of a
qualified charitable gift annuity from regulation under
insurance laws," further providing for definitions and for
exemption from regulation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Paragraph (2)(iv) of the definition of "qualified
charitable gift annuity" and paragraph (3) of the definition of
"qualified charity" in section 2 of the act of October 16, 1996
(P.L.712, No.127), known as the Charitable Gift Annuity
Exemption Act, are amended and the section is amended by adding
a definition to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"De-risking annuity contract." An annuity purchased from a
commercial annuity company an insurance company licensed,
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authorized or otherwise approved by the Insurance Department by
a charity that matches substantially all future payments of the
charity arising from a charitable gift annuity contract
obligation.
"Qualified charitable gift annuity." An annuity which:
* * *
(2) Contains in a written agreement substantially all of
the following provisions:
* * *
(iv) A statement as to whom the donor may contact to
obtain a copy of the following information:
(A) the organization's status under section
170(c) of the Internal Revenue Code of 1986 (Public
Law 99-514, 26 U.S.C. ยง 170(c)) or any successor
provisions; and
(B) financial statements filed with a
governmental agency or audited financial statements
from the charity showing that the charity has
unrestricted and unencumbered assets in the form of
cash, cash equivalents, de-risking annuity contracts
or publicly traded securities of at least $100,000
plus one-half of the principal value of any annuities
issued by the organization and then in effect.
* * *
"Qualified charity." An organization which on the date a
qualified charitable gift annuity is issued meets all of the
following criteria:
* * *
(3) Has unrestricted and unencumbered assets in the form
of cash, cash equivalents, de-risking annuity contracts or
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publicly traded securities of at least $100,000 plus one-half
of the principal value of any annuities issued by the
organization and then in effect.
* * *
Section 2. Section 3 of the act is amended to read:
Section 3. Exemption from regulation.
The laws of this Commonwealth regulating insurance,
including, but not limited to, the act of May 17, 1921 (P.L.682,
No.284), known as The Insurance Company Law of 1921, and the act
of May 17, 1921 (P.L.789, No.285), known as The Insurance
Department Act of 1921, shall not apply to the issuance by a
qualified charity of a qualified charitable gift annuity. This
section shall not apply to de-risking annuity contracts.
Section 2 3. This act shall take effect in 60 days.
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