II
105TH CONGRESS
1ST SESSION
H. R. 1902
IN THE SENATE OF THE UNITED STATES
JUNE 23, 1997
Received
AN ACT
To immunize donations made in the form of charitable gift
annuities and charitable remainder trusts from the anti-
trust laws and State laws similar to the antitrust laws.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Charitable Donation
Antitrust Immunity Act of 1997’’.
SEC. 2. IMMUNITY FROM ANTITRUST LAWS.
The Charitable Gift Annuity Antitrust Relief Act of
1995 (15 U.S.C. 37 et seq.) is amended—
(1) by amending section 2 to read as follows:
‘‘SEC. 2. IMMUNITY FROM ANTITRUST LAWS.
‘‘(a) INAPPLICABILITY OF ANTITRUST LAWS.—Ex-
cept as provided in subsection (d), the antitrust laws, and
any State law similar to any of the antitrust laws, shall
not apply to charitable gift annuities or charitable remain-
der trusts.
‘‘(b) IMMUNITY.—Except as provided in subsection
(d), any person subjected to any legal proceeding for dam-
ages, injunction, penalties, or other relief of any kind
under the antitrust laws, or any State law similar to any
of the antitrust laws, on account of setting or agreeing
to rates of return or other terms for, negotiating, issuing,
participating in, implementing, or otherwise being involved
in the planning, issuance, or payment of charitable gift
annuities or charitable remainder trusts shall have immu-
nity from suit under the antitrust laws, including the right
not to bear the cost, burden, and risk of discovery and
trial, for the conduct set forth in this subsection.
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‘‘(c) TREATMENT
OF
CERTAIN
ANNUITIES
AND
TRUSTS.—Any annuity treated as a charitable gift annu-
ity, or any trust treated as a charitable remainder trust,
either—
‘‘(1) in any filing by the donor with the Inter-
nal Revenue Service; or
‘‘(2) in any schedule, form, or written document
provided by or on behalf of the donee to the donor;
shall be conclusively presumed for the purposes of this Act
to be respectively a charitable gift annuity or a charitable
remainder trust, unless there has been a final determina-
tion by the Internal Revenue Service that, for fraud or
otherwise, the donor’s annuity or trust did not qualify re-
spectively as a charitable gift annuity or charitable re-
mainder trust when created.
‘‘(d) LIMITATION.—Subsections (a) and (b) shall not
apply with respect to the enforcement of a State law simi-
lar to any of the antitrust laws, with respect to charitable
gift annuities, or charitable remainder trusts, created after
the State enacts a statute, not later than December 8,
1998, that expressly provides that subsections (a) and (b)
shall not apply with respect to such charitable gift annu-
ities and such charitable remainder trusts.’’; and
(2) in section 3—
(A) by striking paragraph (1);
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(B) by redesignating paragraph (2) as
paragraph (1);
(C) by inserting after paragraph (1), as so
redesignated, the following:
‘‘(2) CHARITABLE
REMAINDER
TRUST.—The
term ‘charitable remainder trust’ has the meaning
given it in section 664(d) of the Internal Revenue
Code of 1986 (26 U.S.C. 664(d)).’’;
(D) by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively; and
(E) by inserting after paragraph (3) the
following:
‘‘(4) FINAL DETERMINATION.—The term ‘final
determination’ includes an Internal Revenue Service
determination, after exhaustion of donor’s and
donee’s administrative remedies, disallowing the do-
nor’s charitable deduction for the year in which the
initial contribution was made because of the donee’s
failure to comply at such time with the requirements
of section 501(m)(5) or 664(d), respectively, of the
Internal Revenue Code of 1986 (26 U.S.C.
501(m)(5), 664(d)).’’.
SEC. 3. APPLICATION OF ACT.
This Act, and the amendments made by this Act,
shall apply with respect to all conduct occurring before,
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on, or after the date of the enactment of this Act and
shall apply in all administrative and judicial actions pend-
ing on or commenced after the date of the enactment of
this Act.
SEC. 4. STUDY AND REPORT.
(a) STUDY
AND REPORT.—The Attorney General
shall carry out a study to determine the effect of this Act
on markets for noncharitable annuities, charitable gift an-
nuities, and charitable remainder trusts. The Attorney
General shall prepare a report summarizing the results of
the study.
(b) DETAILS OF STUDY AND REPORT.—The report
referred to in subsection (a) shall include any information
on possible inappropriate activity resulting from this Act
and any recommendations for legislative changes, includ-
ing recommendations for additional enforcement re-
sources.
(c) SUBMISSION OF REPORT.—The Attorney General
shall submit the report referred to in subsection (a) to
the Chairman and the ranking member of the Committee
on the Judiciary of the House of Representatives, and to
the Chairman and the ranking member of the Committee
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on the Judiciary of the Senate, not later than 27 months
after the date of the enactment of this Act.
Passed the House of Representatives June 23, 1997.
Attest:
ROBIN H. CARLE,
Clerk.
By JULIE PERRIER,
Assistant to the Clerk.