I
106TH CONGRESS
1ST SESSION
H. R. 3197
To amend the Internal Revenue Code of 1986 to prevent the abuse of
the enhanced charitable deduction for contributions of drugs.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 2, 1999
Mr. DOGGETT (for himself, Mr. STARK, Mr. MATSUI, Mr. COYNE, Mr. LEVIN,
Mr. MCDERMOTT, Mr. NEAL of Massachusetts, Mr. BECERRA, Mrs.
THURMAN, Mr. WAXMAN, Mr. BROWN of Ohio, Mr. ALLEN, Mr. FRANK
of Massachusetts, Mr. ACKERMAN, Mr. BARRETT of Wisconsin, Mr.
BENTSEN, Mr. BERRY, Mr. BISHOP, Mrs. CAPPS, Mr. CAPUANO, Mr.
CUMMINGS, Ms. DEGETTE, Mr. EDWARDS, Mr. EVANS, Mr. FILNER, Mr.
FORD, Mr. GONZALEZ, Mr. GREEN of Texas, Mr. HINCHEY, Ms. HOOLEY
of Oregon, Ms. JACKSON-LEE of Texas, Ms. KILPATRICK, Mr. KIND, Mr.
KUCINICH, Mr. LAMPSON, Mr. LANTOS, Mr. MARKEY, Mr. MCGOVERN,
Ms. MCKINNEY, Mrs. MEEK of Florida, Mr. MENENDEZ, Mr. GEORGE
MILLER of California, Mr. OLVER, Ms. PELOSI, Ms. RIVERS, Mr.
RODRIGUEZ, Mr. SANDERS, Mr. SANDLIN, Ms. SCHAKOWSKY, Mr.
SERRANO, Ms. SLAUGHTER, Mr. STRICKLAND, Mr. TIERNEY, Mrs.
JONES of Ohio, Mr. VENTO, and Ms. WOOLSEY) introduced the following
bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to prevent
the abuse of the enhanced charitable deduction for con-
tributions of drugs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. MODIFICATION OF ENHANCED DEDUCTION
FOR 
CHARITABLE 
CONTRIBUTIONS 
OF
DRUGS.
(a) IN GENERAL.—Paragraph (3) of section 170(e)
of the Internal Revenue Code of 1986 (relating to special
rule for certain contributions of inventory and other prop-
erty) is amended by redesignating subparagraph (C) as
subparagraph (D) and by inserting after subparagraph
(B) the following new subparagraph:
‘‘(C) SPECIAL RULES RELATING TO CON-
TRIBUTIONS OF DRUGS.—
‘‘(i) IN
GENERAL.—In any case in
which the property referred to in subpara-
graph (A) is a drug to be administered
outside the United States, subparagraph
(A) shall apply only if—
‘‘(I) the period during which such
drug is considered to be safe and ef-
fective under the regulations referred
to in subparagraph (A)(iv) does not
expire before the date which is 1 year
after the date of such transfer,
‘‘(II) the representations in the
statement referred to in subparagraph
(A)(iii) include a representation by
the donee that the donee has received
a request (from the person or govern-
ment outside the United States which
will administer such drug) for drugs
which treat conditions for which such
drug is a suitable treatment, and
‘‘(III) the drug is labeled (in a
manner easily understood by health
professionals in the country where it
is to be administered) as to the drug’s
intended uses, dosages, and other
matters affecting its safety and effec-
tiveness.
‘‘(ii) SPECIAL
RULES
FOR
DRUGS
WITH SHORT LIVES.—
‘‘(I) 1⁄3 OF LIFE MUST REMAIN
AFTER TRANSFER.—In the case of a
drug which is considered to be safe
and effective under such regulations
for less than 2 years, clause (i)(I)
shall be applied by substituting 1⁄3 of
the period that such drug is so consid-
ered to be safe and effective for the 1-
year period referred to in such clause.
‘‘(II) WAIVER FOR FACILITY-SPE-
CIFIC DONATIONS.—Clause (i)(I) shall
not apply to drugs to be administered
at a facility if the representations re-
ferred to in subparagraph (A)(iii) in-
clude the representation that a re-
sponsible official for such facility has
acknowledged that such official is
aware that the requirement of clause
(i)(I) is not met and has determined
the quantity and remaining useful life
of the drugs are adequate for proper
administration of the drugs.
‘‘(iii) DRUG INCLUDES BIOLOGICAL.—
For purposes of this subparagraph, the
term ‘drug’ includes a biological.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to charitable contributions made
after the date of the enactment of this Act.
Æ