FOR the purpose of altering the qualifications of an educational or religious
organization to which the Maryland Insurance Commissioner may issue a
special permit to make agreements for annuity payments with donors under
certain circumstances; and generally relating to the qualifications of educational
or religious organizations and the issuance of special permits for charitable gift
annuities.

BY repealing and reenacting, with amendments,
Article - Insurance
Section 16-114(c)
Annotated Code of Maryland
(1997 Volume and 1998 Supplement)

(As enacted by Chapter 70 of the Acts of the General Assembly of 1997)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

16-114.

(c) (1) On application, the Commissioner may issue a special permit to
make agreements for annuity payments with donors to an educational or religious
organization not conducted for profit and engaged [solely] in bona fide educational or
religious activities, to a hospital in the State, or to a community foundation if the
educational or religious organization, hospital, or community foundation:

(i) except as provided in paragraph (2) of this subsection, has been
in active operation in the State for at least 10 years before issuance of the special
permit; and

(ii) has been granted exemption from federal income taxation
under § 501 of the Internal Revenue Code.

(2) The Commissioner may issue a special permit to a community
foundation that has been in existence for at least 5 years but less than 10 years if the
community foundation maintains admitted assets, in an amount up to 100% of the
contributions made to the community foundation, as determined by the
Commissioner.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1999.