[Congressional Record Volume 141, Number 195 (Friday, December 8, 1995)]
[Extensions of Remarks]
[Page E2329]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          CHARITABLE GIFT ANNUITY ANTITRUST RELIEF ACT OF 1995

                                 ______


                           HON. HENRY J. HYDE

                              of illinois

                    in the house of representatives

                       Thursday, December 7, 1995

  Mr. HYDE. Mr. Speaker, on December 5, 1995, the Congressional Budget 
Office transmitted to me a revised letter regarding the budgetary 
impact of H.R. 2525, the ``Charitable Gift Annuity Antitrust Relief Act 
of 1995.'' The report of the Judiciary Committee on this bill, which 
contains the text of the original CBO letter, has already been filed 
and printed. Therefore, I am inserting the text of the new, corrected 
letter in the Record. To the extent that the CBO letter is part of the 
legislative history of H.R. 2525, the December 5, 1995 text, rather 
than the November 8, 1995 text, should be referenced.
                                                    U.S. Congress,


                                  Congressional Budget Office,

                                 Washington, DC, December 5, 1995.
     Hon. Henry J. Hyde,
     Chairman, Committee on the Judiciary,
     House of Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     reviewed H.R. 2525, the Charitable Gift Annuity Antitrust 
     Relief Act of 1995, as ordered reported by the House 
     Committee on the Judiciary on October 31, 1995. This revised 
     estimate supersedes the estimate provided on November 8, 
     1995. Specifically, this estimate clarifies the description 
     of potential antitrust violations under current law; our 
     estimate of no significant cost for enacting the bill is 
     unchanged from the earlier estimate. Because enactment of 
     H.R. 2525 would not affect direct spending or receipts, pay-
     as-you-go procedures would not apply to the bill.
       This bill would provide antitrust protection to certain 
     non-profit organizations which issue charitable gift 
     annuities. Under current law, it is unclear whether it is a 
     violation of the antitrust laws for two or more charitable 
     organizations to use or agree to use the same annuity rate 
     for the purpose of issuing one or more charitable gift 
     annuities. According to the Administrative Office of the 
     United States Courts (AOUSC), only one lawsuit alleging such 
     a violation is currently pending in federal court. Based on 
     information from the AOUSC, CBO estimates that while enacting 
     this bill would preclude certain antitrust cases from being 
     litigated, any reduction in future cases would not be 
     significant. Thus, this bill could result in some savings to 
     the federal government, but the amount of such savings would 
     not be significant.
       While enacting H.R. 2525 could reduce the future antitrust 
     caseload in state courts, CBO estimates that any reduction in 
     litigation would not result in any significant savings to 
     states or local governments.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contacts are Susanne 
     S. Mehlman, for federal costs, and Karen McVey, for state and 
     local costs.
           Sincerely,
                                                  June E. O'Neill,
     Director.

                          ____________________