802 
by striking the period at the end of clause (ii) and 
inserting ‘‘, or’’, and by adding after clause (ii) the 
following: 
‘‘(iii) sold to a qualified blood collector 
organization for its exclusive use in con-
nection with a vehicle the organization cer-
tifies will be primarily used in the collec-
tion, storage, or transportation of blood.’’. 
(f) DEFINITION OF QUALIFIED BLOOD COLLECTOR 
ORGANIZATION.—Section 7701(a) is amended by inserting 
at the end the following new paragraph: 
‘‘(49) QUALIFIED BLOOD COLLECTOR ORGANI-
ZATION.—The term ‘qualified blood collector organi-
zation’ means an organization which is— 
‘‘(A) described in section 501(c)(3) and ex-
empt from tax under section 501(a), 
‘‘(B) primarily engaged in the activity of 
the collection of human blood, 
‘‘(C) registered with the Secretary for pur-
poses of excise tax exemptions, and 
‘‘(D) registered by the Food and Drug Ad-
ministration to collect blood.’’. 
(g) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall take effect on January 1, 2007. 
VerDate Aug 31 2005 
00:27 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00802
Fmt 6652
Sfmt 6201
E:\BILLS\H4.CPH
H4
ccoleman on PROD1PC71 with BILLS
803 
(2) SUBSECTION (d).—The amendment made 
by subsection (d) shall apply to taxable periods be-
ginning on or after July 1, 2007. 
Subtitle B—Reforming Exempt 
Organizations 
PART 1—GENERAL REFORMS 
SEC. 1211. REPORTING ON CERTAIN ACQUISITIONS OF IN-
TERESTS 
IN 
INSURANCE 
CONTRACTS 
IN 
WHICH CERTAIN EXEMPT ORGANIZATIONS 
HOLD AN INTEREST. 
(a) REPORTING REQUIREMENTS.— 
(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61 (relating to information 
concerning transactions with other persons), as 
amended by this Act, is amended by adding at the 
end the following new section: 
‘‘SEC. 6050V. RETURNS RELATING TO APPLICABLE INSUR-
ANCE CONTRACTS IN WHICH CERTAIN EX-
EMPT ORGANIZATIONS HOLD INTERESTS. 
‘‘(a) IN GENERAL.—Each applicable exempt organi-
zation which makes a reportable acquisition shall make the 
return described in subsection (c). 
‘‘(b) TIME FOR MAKING RETURN.—Any applicable 
exempt organization required to make a return under sub-
VerDate Aug 31 2005 
00:27 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00803
Fmt 6652
Sfmt 6201
E:\BILLS\H4.CPH
H4
ccoleman on PROD1PC71 with BILLS
804 
section (a) shall file such return at such time as may be 
established by the Secretary. 
‘‘(c) FORM AND MANNER OF RETURNS.—A return 
is described in this subsection if such return— 
‘‘(1) is in such form as the Secretary pre-
scribes, 
‘‘(2) contains the name, address, and taxpayer 
identification number of the applicable exempt orga-
nization and the issuer of the applicable insurance 
contract, and 
‘‘(3) contains such other information as the 
Secretary may prescribe. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) REPORTABLE
ACQUISITION.—The term 
‘reportable acquisition’ means the acquisition by an 
applicable exempt organization of a direct or indirect 
interest in any applicable insurance contract in any 
case in which such acquisition is a part of a struc-
tured transaction involving a pool of such contracts. 
‘‘(2) APPLICABLE INSURANCE CONTRACT.— 
‘‘(A) IN GENERAL.—The term ‘applicable 
insurance contract’ means any life insurance, 
annuity, or endowment contract with respect to 
which both an applicable exempt organization 
and a person other than an applicable exempt 
VerDate Aug 31 2005 
00:27 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00804
Fmt 6652
Sfmt 6201
E:\BILLS\H4.CPH
H4
ccoleman on PROD1PC71 with BILLS
805 
organization have directly or indirectly held an 
interest in the contract (whether or not at the 
same time). 
‘‘(B) EXCEPTIONS.—Such term shall not 
include a life insurance, annuity, or endowment 
contract if— 
‘‘(i) all persons directly or indirectly 
holding any interest in the contract (other 
than applicable exempt organizations) have 
an insurable interest in the insured under 
the contract independent of any interest of 
an applicable exempt organization in the 
contract, 
‘‘(ii) the sole interest in the contract 
of an applicable exempt organization or 
each person other than an applicable ex-
empt organization is as a named bene-
ficiary, or 
‘‘(iii) the sole interest in the contract 
of each person other than an applicable ex-
empt organization is— 
‘‘(I) as a beneficiary of a trust 
holding an interest in the contract, 
but only if the person’s designation as 
such beneficiary was made without 
VerDate Aug 31 2005 
00:27 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00805
Fmt 6652
Sfmt 6201
E:\BILLS\H4.CPH
H4
ccoleman on PROD1PC71 with BILLS
806 
consideration and solely on a purely 
gratuitous basis, or 
‘‘(II) as a trustee who holds an 
interest in the contract in a fiduciary 
capacity solely for the benefit of appli-
cable exempt organizations or persons 
otherwise described in subclause (I) or 
clause (i) or (ii). 
‘‘(3) APPLICABLE
EXEMPT
ORGANIZATION.— 
The term ‘applicable exempt organization’ means— 
‘‘(A) an organization described in section 
170(c), 
‘‘(B) an organization described in section 
168(h)(2)(A)(iv), or 
‘‘(C) an organization not described in 
paragraph (1) or (2) which is described in sec-
tion 2055(a) or section 2522(a). 
‘‘(e) TERMINATION.—This section shall not apply to 
reportable acquisitions occurring after the date which is 
2 years after the date of the enactment of this section.’’. 
(2) CONFORMING AMENDMENT.—The table of 
sections for subpart B of part III of subchapter A 
of chapter 61 is amended by adding at the end the 
following new item: 
‘‘Sec. 6050V. Returns relating to applicable insurance contracts in which cer-
tain exempt organizations hold interests.’’. 
VerDate Aug 31 2005 
00:27 Jul 30, 2006
Jkt 049200
PO 00000
Frm 00806
Fmt 6652
Sfmt 6211
E:\BILLS\H4.CPH
H4
ccoleman on PROD1PC71 with BILLS