Florida Senate - 2012 CS for SB 458 By the Committee on Banking and Insurance; and Senator Bennett 597-03060-12 2012458c1 1 A bill to be entitled 2 An act relating to the Uniform Fraudulent Transfer 3 Act; amending s. 726.102, F.S.; defining the terms 4 “charitable contribution” and “qualified religious or 5 charitable entity or organization”; amending s. 6 726.109, F.S.; exempting certain transfers of 7 charitable contributions from the provisions of ch. 8 726, F.S.; providing for application of the act; 9 providing an effective date. 10 11 Be It Enacted by the Legislature of the State of Florida: 12 13 Section 1. Subsections (3), (4), (5), (6), (7), (8), (9), 14 (10), (11), (12), and (13) of section 726.102, Florida Statutes, 15 are renumbered as subsections (4), (5), (6), (7), (8), (9), 16 (10), (11), (13), (14), and (15), respectively, and new 17 subsections (3) and (12) are added to that section, to read: 18 726.102 Definitions.—As used in ss. 726.101-726.112: 19 (3) “Charitable contribution” means a charitable 20 contribution as that term is defined in s. 170(c) of the 21 Internal Revenue Code of 1986, if that contribution: 22 (a) Is made by a natural person or a qualified religious or 23 charitable entity or organization; and 24 (b) Consists of: 25 1. A financial instrument as that term is defined in s. 26 731(c)(2)(C) of the Internal Revenue Code of 1986; or 27 2. Cash. 28 (12) “Qualified religious or charitable entity or 29 organization” means: 30 (a) An entity described in s. 170(c)(1) of the Internal 31 Revenue Code of 1986; or 32 (b) An entity or organization described in s. 170(c)(2) of 33 the Internal Revenue Code of 1986. 34 Section 2. Subsection (7) is added to section 726.109, 35 Florida Statutes, to read: 36 726.109 Defenses, liability, and protection of transferee.— 37 (7)(a) Except as provided in paragraph (b), a transfer of a 38 charitable contribution that is received in good faith by a 39 qualified religious or charitable entity or organization is not 40 a transfer that is covered by this chapter. 41 (b) A transfer of a charitable contribution that was 42 received on or within 2 years before the date of commencement of 43 an action under this chapter or the commencement of proceedings 44 under any state or federal law, including the appointment of an 45 assignee for the benefit of creditors, appointment of a trustee 46 or receiver, or the filing of a petition under the Federal 47 Bankruptcy Code, is not entitled to the protection of paragraph 48 (a) unless the transfer was received in good faith, and: 49 1. The amount of the contribution does not exceed 15 50 percent of the gross annual income of the transferor for the 51 year in which the transfer of the contribution is made; or 52 2. The contribution made by the transferor exceeded the 53 percentage amount of gross annual income specified in 54 subparagraph 1., if the transfer was consistent with the 55 practices of the transferor in making charitable contributions. 56 Section 3. This act shall take effect July 1, 2012, but 57 does not apply to transfers that are avoided by the entry of a 58 judgment prior to July 1, 2012.