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HOUSE DOCKET, NO. 614         FILED ON: 1/14/2013

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 965

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

William Smitty Pignatelli

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
              Court assembled:

              The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act authorizing charitable life insurance policies.

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PETITION OF:

 

Name:

District/Address:

William Smitty Pignatelli

4th Berkshire

Randy Hunt

5th Barnstable

Paul McMurtry

11th Norfolk

Bradley H. Jones, Jr.

20th Middlesex

Jason Lewis

 

Ryan C. Fattman

18th Worcester

Nicholas A. Boldyga

3rd Hampden


HOUSE DOCKET, NO. 614        FILED ON: 1/14/2013

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 965

By Mr. Pignatelli of Lenox, a petition (accompanied by bill, House, No. 965) of William Smitty Pignatelli and others for legislation to allow the designation of a donor's retirement account as a collateral assignee of certain life insurance policies.  Financial Services. 


The Commonwealth of Massachusetts
 

_______________

In the Year Two Thousand Thirteen

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An Act authorizing charitable life insurance policies.
 

              Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

              SECTION 1. This Act shall be known as the “Massachusetts Charitable Investment Recovery Act of 2013”.

              Whereas, the General Court desires to support the economic development goals of this Commonwealth by improving the availability of capital for bona fide charities and not-for-profit enterprises in Massachusetts, and seeks to advance these goals through this Act as set forth in this preamble; and

              Whereas, this act intends to support the social structure of this Commonwealth through private capital by encouraging charitably inclined donors to invest in and redirect private retirement capital to bona fide charities resulting in continuity of services for local communities, job creation, and economic activity; and

              Whereas, this act also seeks to encourage monetary velocity from passive treatment accounts to state and local communities for the active use and betterment of our Commonwealth as determined by private citizens; and

              Whereas, an addition intention of this act is to expand the economy of this Commonwealth by preserving and enlarging its base of bona fide charities and fostering the use of private capital for social programs desired by private citizens; and

              Whereas, a final intention of this act is to foster continued gratuity in the citizenry of this Commonwealth without increasing individual taxation or depleting the tax base.

              SECTION 2. The definition of “Professional fund-raising counsel” contained in section 18 of chapter 68 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out the second sentence and inserting in place thereof the following:-

              A bona fide salaried officer or regular, non-temporary employee of a charitable organization maintaining a permanent establishment within the commonwealth shall not be deemed to be a professional fund-raising counsel. An insurance commission paid by an insurer to a licensed insurance agent pursuant to an insurance policy issued in accordance with the provisions of sub-section (3) of section 123A of chapter 175 shall not be deemed to be consideration paid by a charitable organization;

              SECTION 3. The definition of “Professional solicitor” contained in said section 18 of said chapter 68, as so appearing, is hereby amended by striking out the fourth sentence and inserting the following:- No attorney, investment counselor or banker who advises an individual corporation or association to make a charitable contribution shall be deemed, as a result of such advice, to be a professional fund-raising counsel or a professional solicitor. An insurance commission paid by an insurer to a licensed insurance agent pursuant to an insurance policy issued in accordance with the provisions of sub-section 3 of chapter 175 shall not be deemed to be consideration paid by a charitable organization;

              SECTION 4. Section 123A of chapter 175 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by adding the following sub-section:-

              (3) A donor’s retirement account may be designated as a collateral assignee of a life insurance policy made to secure the repayment of a loan made to the charitable institution from the retirement account; provided that no further assignment may be made by the retirement account.

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