Commentary on HB 823 and SB 333

1999 Legislation:

Commentary on HB 823 and SB 333 -- Protecting
Issuers of Charitable Gift Annuities

HB 823, by Rep. Smithee, and SB 333, by Sen. Sibley, are part of the backlash against the class action charitable gift annuity litigation in Wichita Falls. Although I believe that litigation is now over, it inspired at least three acts of Congress and two acts of the Texas legislature, all of which were intended to make various statutory bases for suing issuers of charitable gift annuities -- insurance regulation theories, anti-trust theories, trust company act theories -- unavailable. Most of these bills purported to act retroactively.

In 1997, SB 1948 by Sen. Sibley (which, along with its 1997 companion bill -- HB 3601 by Rep. Smithee -- are virtually identical to this session's HB 823 and SB 333) passed the Senate and was set to pass the House on May 26th when it became the victim of Rep. Wohlgemuth's procedural point of order -- a vindictive act which killed many other bills likely to pass as well.

Rep. Smithee and Sen. Sibley are back with the same legislation this time around -- notwithstanding the demise of the Wichita Falls litigation -- and if recent history is any indication, one of these companion bills is very likely to pass. [02/05/99]