HB527 (2021) Detail

Relative to the charitable gift annuities exemption.


HB 527  - AS INTRODUCED

 

 

2021 SESSION

21-0662

04/08

 

HOUSE BILL 527

 

AN ACT relative to the charitable gift annuities exemption.

 

SPONSORS: Rep. Infantine, Hills. 13

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill adds an additional definition for qualified charitable gift annuity issued by a charitable organization.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21-0662

04/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT relative to the charitable gift annuities exemption.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Charitable Gift Annuities Exemption; Definition of Qualified Charitable Gift Annuity Amended.  Amend RSA 403-E:1, V to read as follows:

V.(a)  "Qualified charitable gift annuity" means a charitable gift annuity described by section 501(m)(5), Internal Revenue Code of 1986 (26 U.S.C. section 501(m)(5)), and section 514(c)(5), Internal Revenue Code of 1986 (26 U.S.C. 514(c)(5)), that is issued by a charitable organization that on the date of the annuity agreement:

[(a)] (1) Has a minimum of $300,000 in unrestricted cash, cash equivalents, or publicly traded securities, exclusive of the assets funding the annuity agreement;

[(b)] (2)  Has been in continuous operation for at least 3 years or is a successor or affiliate of a charitable organization that has been in continuous operation for at least 3 years;

[(c)] (3)  Issues charitable gift annuities with payout ratios no greater than recommended by the American Council on Gift Annuities at the time of issuance;

[(d)] (4)  Retains 100 percent of the contribution made in exchange for each charitable gift annuity, increased by earnings on the contribution and decreased by annuity payments and expenses properly allocated to the annuity, until the annuity is terminated; and

[(e)] (5)  Invests contributions made in exchange for charitable gift annuities solely in conformance with article 9 of RSA 564-B, general standards of prudent investment; or

(b)(1)  Has a minimum of $25,000 in unrestricted cash, cash equivalents, or publicly traded securities, exclusive of the assets funding the annuity agreement;

(2)  Has been in continuous operation for at least one year or is a successor or affiliate of a charitable organization that has been in continuous operation for at least one year, including Donor Advised Foundations and any sub-foundations affiliated with a 501(c)(3) organization;

(3)  Issues charitable gift annuities with payout ratios no greater than recommended by the American Council on Gift Annuities at the time of issuance; and

(4)  Within 5 business days of receiving funds for a charitable gift annuity, re-insures said annuity by purchasing an annuity contract from a commercial insurance company licensed to transact business in the state of New Hampshire, and such insurer carrier assumes all risk, administration, and payment responsibility.

(c)  A charitable organization that issues a qualified charitable gift annuity which meets the requirements of subparagraph (b) may expend, or reallocate for current of future use, any residual balance that remains after purchasing the commercially-insured annuity.

2  Effective Date.  This act shall take effect 60 days after its passage.

Links

HB527 at GenCourtMobile
HB527 Discussion

Action Dates

Date Body Type
Feb. 10, 2021 House Hearing
March 2, 2021 House Exec Session
March 3, 2021 House Exec Session

Bill Text Revisions

HB527 Revision: 31855 Date: Jan. 12, 2021, 12:33 p.m.

Docket


Sept. 21, 2021: Subcommittee Work Session: 09/21/2021 02:00 pm LOB 302-304


: Retained in Committee


March 3, 2021: Executive Session: 03/03/2021 01:30 pm Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/98917516497 (if necessary)


March 2, 2021: Executive Session: 03/02/2021 09:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/95215897452


Feb. 10, 2021: Public Hearing: 02/10/2021 10:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/95521072179 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Jan. 6, 2021: Introduced (in recess of) 01/06/2021 and referred to Commerce and Consumer Affairs HJ 2 P. 52