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SB 15 (Crossover): Insurance - Charitable Gift Annuities - Special Permit Holders - Required Financial Statements

Position: SUPPORT with Amendment

The Maryland Catholic Conference represents the mutual public-policy interests of the three (arch)dioceses serving Maryland, including the Archdiocese of Baltimore, the Archdiocese of Washington, and the Diocese of Wilmington.  We offer this testimony in support of Senate Bill 15, which would require nonprofit organizations to submit audited financial statements instead of an annual report to the Maryland Insurance Commissioner if the nonprofit holds a special permit needed to make annuity agreements with donors.

In most cases, Catholic nonprofit organizations that hold special permits already submit audited financial statements to the Commissioner, and we therefore support this change in law.  Existing law requires these statements to be submitted within 90 days of an organization’s fiscal year.  

However, given the amount of time necessary to have the statements prepared and approved by the organizations’ governing boards, in practice we often must request an extension from the Commissioner.  In order to lessen the administrative burden of this step for both the Commissioner and our organizations, we respectfully request an amendment that would extend the period of time during which the reports must be submitted from 90 days to 180 days.  It is our understanding that the Maryland Insurance Commission is in support of this amendment as well.

With this small change, we urge a favorable report on Senate Bill 50.