FIRST REGULAR SESSION

[TRULY AGREED TO AND FINALLY PASSED]

HOUSE BILL NO. 319

89TH GENERAL ASSEMBLY

L0191.01T 1997

AN ACT

To repeal sections 352.500 and 352.515, RSMo Supp. 1996, relating to certain incorporated and nonincorporated entities, and to enact in lieu thereof two new sections relating to the same subject.

Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Sections 352.500 and 352.515, RSMo Supp. 1996, are repealed and two new sections enacted in lieu thereof, to be known as sections 352.500 and 352.515, to read as follows:

352.500. As used in sections 352.500 to 352.520, the following terms shall mean:

(1) "Charitable gift annuity", a transfer of cash or other property by a donor to a charitable organization in return for an annuity payable over one or two lives, under which the actuarial value of the annuity is less than the value of the cash or other property transferred and the difference in value constitutes a charitable deduction for federal tax purposes;

(2) "Qualified charitable gift annuity", a charitable gift annuity described in section 501(m)(5) of the Internal Revenue Code, and section 514(c)(5) of the Internal Revenue Code that is issued by a charitable organization that on the date of the annuity agreement:

(a) Has a minimum of one hundred thousand dollars in unrestricted cash, cash equivalents, or publicly traded securities, exclusive of the assets funding the annuity agreement; 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;

(3) "Qualified organization", an entity [which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code as a charitable organization; or exempt from taxation under section 501(c)(3) of the Internal Revenue Code as a religious organization] described in:

(a) 26 U.S.C. section 501(c)(3) (1986); or

(b) 26 U.S.C. section 170(c) (1986).

352.515. The issuance of a qualified charitable gift annuity does not constitute engaging in the business of insurance in this state. A charitable gift annuity issued before August 28, 1996, is a qualified charitable gift annuity for purposes of this chapter and the issuance of such charitable gift annuity does not constitute engaging in the business of insurance in the state.

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