Senate Bill 2326c1

    Florida Senate - 1999                           CS for SB 2326

    By the Committee on Banking and Insurance; and Senator Laurent





    311-2004-99

  1                      A bill to be entitled

  2         An act relating to annuities; amending s.

  3         627.481, F.S.; prescribing conditions under

  4         which a subunit of an organized domestic or

  5         foreign nonstock corporation or an

  6         unincorporated charitable trust may enter into

  7         annuity agreements; providing an effective

  8         date.

  9

10  Be It Enacted by the Legislature of the State of Florida:

11

12         Section 1.  Subsection (1) of section 627.481, Florida

13  Statutes, is amended to read:

14         627.481  Requirements for certain annuity agreements.--

15         (1)  Any duly organized domestic or foreign nonstock

16  corporation, or any unincorporated charitable trust, that: if

17  such corporation or trust

18         (a)  Has been in active operation for at least 5 years

19  prior thereto and has qualified as an exempt organization

20  under the Internal Revenue Code, 26 U.S.C. s. 501(c)(3), or

21         (b)  Has been wholly controlled for at least 10 years

22  by a corporation or trust qualified under paragraph (a), has

23  been a corporation or trust for at least 2 years, and has

24  engaged in the selling of annuity agreements authorized under

25  this section in at least three other states without complaint,

26

27  may enter into annuity agreements with donors in accordance

28  with this section. Such corporation or trust may receive gifts

29  conditioned upon, or in return for, its agreement to pay an

30  annuity to the donor or other designated beneficiary or

31  beneficiaries and to make and carry out such annuity

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1999                           CS for SB 2326
    311-2004-99




  1  agreement. Annuity benefits under any such annuity agreement

  2  must be calculated to return to such corporation or trust upon

  3  the death of the annuitant a residue at least equal to

  4  one-half the original gift or other consideration for such

  5  annuity.

  6         Section 2.  This act shall take effect upon becoming a

  7  law.

  8

  9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                         Senate Bill 2326

11

12  Requires that a corporation or trust selling charitable
    annuity agreements must have been wholly controlled for at
13  least 10 years by a non-profit corporation or trust which has
    been active for at least 5 years.
14
    Changes the effective date from July 1, 1999, to upon becoming
15  law.

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  2