I 

108TH CONGRESS 

2D SESSION H. R. 4265

To provide that when a company makes a charitable donation of equipment, 

the company is generally not liable for harm later caused by that equipment, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 4, 2004

Mr. GREEN of Wisconsin introduced the following bill; which was referred to 

the Committee on the Judiciary 

A BILL

To provide that when a company makes a charitable donation 

of equipment, the company is generally not liable for 

harm later caused by that equipment, and for other 

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. CHARITABLE DONATIONS LIABILITY REFORM 

4 FOR IN-KIND CORPORATE CONTRIBUTIONS. 

5 (a) DEFINITIONS.—For purposes of this section: 

6 (1) AIRCRAFT.—The term ‘‘aircraft’’ has the 

7 meaning provided that term in section 40102(6) of 

8 title 49, United States Code. 
2

•HR 4265 IH 

1 (2) BUSINESS ENTITY.—The term ‘‘business 

2 entity’’ means a firm, corporation, association, part3 nership, consortium, joint venture, or other form of 

4 enterprise. 

5 (3) EQUIPMENT.—The term ‘‘equipment’’ in6 cludes mechanical equipment, electronic equipment, 

7 and office equipment. 

8 (4) FACILITY.—The term ‘‘facility’’ means any 

9 real property, including any building, improvement, 

10 or appurtenance. 

11 (5) GROSS NEGLIGENCE.—The term ‘‘gross 

12 negligence’’ means voluntary and conscious conduct 

13 by a person with knowledge (at the time of the con14 duct) that the conduct is likely to be harmful to the 

15 health or well-being of another person. 

16 (6) INTENTIONAL MISCONDUCT.—The term 

17 ‘‘intentional misconduct’’ means conduct by a person 

18 with knowledge (at the time of the conduct) that the 

19 conduct is harmful to the health or well-being of an20 other person. 

21 (7) MOTOR VEHICLE.—The term ‘‘motor vehi22 cle’’ has the meaning provided that term in section 

23 30102(6) of title 49, United States Code. 

24 (8) NONPROFIT ORGANIZATION.—The term 

25 ‘‘nonprofit organization’’ means—
3

•HR 4265 IH 

1 (A) any organization described in section 

2 501(c)(3) of the Internal Revenue Code of 1986 

3 and exempt from tax under section 501(a) of 

4 such Code; or 

5 (B) any not-for-profit organization orga6 nized and conducted for public benefit and op7 erated primarily for charitable, civic, edu8 cational, religious, welfare, or health purposes. 

9 (9) STATE.—The term ‘‘State’’ means each of 

10 the several States, the District of Columbia, the 

11 Commonwealth of Puerto Rico, the Virgin Islands, 

12 Guam, American Samoa, the Northern Mariana Is13 lands, any other territory or possession of the 

14 United States, or any political subdivision of any 

15 such State, territory, or possession. 

16 (b) LIABILITY.—

17 (1) LIABILITY OF BUSINESS ENTITIES THAT

18 DONATE EQUIPMENT TO NONPROFIT ORGANIZA19 TIONS.—

20 (A) IN GENERAL.—Subject to subsection 

21 (c), a business entity shall not be subject to 

22 civil liability relating to any injury or death that 

23 results from the use of equipment donated by a 

24 business entity to a nonprofit organization. 
4

•HR 4265 IH 

1 (B) APPLICATION.—This paragraph shall 

2 apply with respect to civil liability under Fed3 eral and State law. 

4 (2) LIABILITY OF BUSINESS ENTITIES PRO5 VIDING USE OF FACILITIES TO NONPROFIT ORGANI6 ZATIONS.—

7 (A) IN GENERAL.—Subject to subsection 

8 (c), a business entity shall not be subject to 

9 civil liability relating to any injury or death oc10 curring at a facility of the business entity in 

11 connection with a use of such facility by a non12 profit organization, if—

13 (i) the use occurs outside of the scope 

14 of business of the business entity; 

15 (ii) such injury or death occurs during 

16 a period that such facility is used by the 

17 nonprofit organization; and 

18 (iii) the business entity authorized the 

19 use of such facility by the nonprofit orga20 nization. 

21 (B) APPLICATION.—This paragraph shall 

22 apply—

23 (i) with respect to civil liability under 

24 Federal and State law; and 
5

•HR 4265 IH 

1 (ii) regardless of whether a nonprofit 

2 organization pays for the use of a facility. 

3 (3) LIABILITY OF BUSINESS ENTITIES PRO4 VIDING USE OF A MOTOR VEHICLE OR AIRCRAFT.—

5 (A) IN GENERAL.—Subject to subsection 

6 (c), a business entity shall not be subject to 

7 civil liability relating to any injury or death oc8 curring as a result of the operation of aircraft 

9 or a motor vehicle of a business entity loaned 

10 to a nonprofit organization for use outside of 

11 the scope of business of the business entity, if—

12 (i) such injury or death occurs during 

13 a period that such motor vehicle or aircraft 

14 is used by a nonprofit organization; and 

15 (ii) the business entity authorized the 

16 use by the nonprofit organization of motor 

17 vehicle or aircraft that resulted in the in18 jury or death. 

19 (B) APPLICATION.—This paragraph shall 

20 apply—

21 (i) with respect to civil liability under 

22 Federal and State law; and 

23 (ii) regardless of whether a nonprofit 

24 organization pays for the use of the air25 craft or motor vehicle. 
6

•HR 4265 IH 

1 (c) EXCEPTIONS.—Subsection (b) shall not apply to 

2 an injury or death that results from an act or omission 

3 of a business entity that constitutes gross negligence or 

4 intentional misconduct. 

5 (d) SUPERSEDING PROVISION.—

6 (1) IN GENERAL.—Subject to paragraph (2) 

7 and subsection (e), this section preempts the laws of 

8 any State to the extent that such laws are incon9 sistent with this section, except that this section 

10 shall not preempt any State law that provides addi11 tional protection for a business entity for an injury 

12 or death described in a paragraph of subsection (b) 

13 with respect to which the conditions specified in 

14 such paragraph apply. 

15 (2) LIMITATION.—Nothing in this section shall 

16 be construed to supersede any Federal or State 

17 health or safety law. 

18 (e) ELECTION OF STATE REGARDING NONAPPLICA19 BILITY.—A provision of this section shall not apply to any 

20 civil action in a State court against a business entity in 

21 which all parties are citizens of the State if such State 

22 enacts a statute—

23 (1) citing the authority of this section; 
7

•HR 4265 IH 

1 (2) declaring the election of such State that 

2 such provision shall not apply to such civil action in 

3 the State; and 

4 (3) containing no other provisions. 

5 (f) EFFECTIVE DATE.—This section shall apply to in6 juries (and deaths resulting therefrom) occurring on or 

7 after the date of the enactment of this Act.

Æ