A bill to encourage the establishment of Johnny Micheal Spann Patriot Trusts.

SECTION 1. TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE ARMED 
              FORCES OF THE UNITED STATES AND OTHER GOVERNMENTAL 
              ORGANIZATIONS.

    (a) Findings.--Congress finds the following:
            (1) Members of the Armed Forces of the United States defend 
        the freedom and security of our Nation.
            (2) Members of the Armed Forces of the United States have 
        lost their lives while battling the evils of terrorism around 
        the world.
            (3) Personnel of the Central Intelligence Agency (CIA) 
        charged with the responsibility of covert observation of 
        terrorists around the world are often put in harm's way during 
        their service to the United States.
            (4) Personnel of the Central Intelligence Agency have also 
        lost their lives while battling the evils of terrorism around 
        the world.
            (5) Employees of the Federal Bureau of Investigation (FBI) 
        and other Federal agencies charged with domestic protection of 
        the United States put their lives at risk on a daily basis for 
        the freedom and security of our Nation.
            (6) United States military personnel, CIA personnel, FBI 
        personnel, and other Federal agents in the service of the 
        United States are patriots of the highest order.
            (7) CIA officer Johnny Micheal Spann became the first 
        American to give his life for his country in the War on 
        Terrorism launched by President George W. Bush following the 
        terrorist attacks of September 11, 2001.
            (8) Johnny Micheal Spann left behind a wife and children 
        who are very proud of the heroic actions of their patriot 
        father.
            (9) Surviving dependents of members of the Armed Forces of 
        the United States who lose their lives as a result of terrorist 
        attacks or military operations abroad receive a $6,000 death 
        benefit, plus a small monthly benefit.
            (10) The current system of compensating spouses and 
        children of American patriots is inequitable and needs 
        improvement.
    (b) Designation of Johnny Micheal Spann Patriot Trusts.--Any 
charitable corporation, fund, foundation, or trust (or separate fund or 
account thereof) which otherwise meets all applicable requirements 
under law with respect to charitable entities and meets the 
requirements described in subsection (c) shall be eligible to 
characterize itself as a ``Johnny Micheal Spann Patriot Trust''.
    (c) Requirements for the Designation of Johnny Micheal Spann 
Patriot Trusts.--The requirements described in this subsection are as 
follows:
            (1) Not taking into account funds or donations reasonably 
        necessary to establish a trust, at least 85 percent of all 
        funds or donations (including any earnings on the investment of 
        such funds or donations) received or collected by any Johnny 
        Micheal Spann Patriot Trust must be distributed to (or, if 
        placed in a private foundation, held in trust for) surviving 
        spouses, children, or dependent parents, grandparents, or 
        siblings of 1 or more of the following:
                    (A) members of the Armed Forces of the United 
                States;
                    (B) personnel, including contractors, of elements 
                of the intelligence community, as defined in section 
                3(4) of the National Security Act of 1947;
                    (C) employees of the Federal Bureau of 
                Investigation; and
                    (D) officers, employees, or contract employees of 
                the United States Government,
        whose deaths occur in the line of duty and arise out of 
        terrorist attacks, military operations, intelligence 
        operations, law enforcement operations, or accidents connected 
        with activities occurring after September 11, 2001, and related 
        to domestic or foreign efforts to curb international terrorism, 
        including the Authorization for Use of Military Force (Public 
        Law 107-40; 115 Stat. 224).
            (2) Other than funds or donations reasonably necessary to 
        establish a trust, not more than 15 percent of all funds or 
        donations (or 15 percent of annual earnings on funds invested 
        in a private foundation) may be used for administrative 
        purposes.
            (3) No part of the net earnings of any Johnny Micheal Spann 
        Patriot Trust may inure to the benefit of any individual based 
        solely on the position of such individual as a shareholder, an 
        officer or employee of such Trust.
            (4) None of the activities of any Johnny Micheal Spann 
        Patriot Trust shall be conducted in a manner inconsistent with 
        any law with respect to attempting to influence legislation.
            (5) No Johnny Micheal Spann Patriot Trust may participate 
        in or intervene in any political campaign on behalf of (or in 
        opposition to) any candidate for public office, including by 
        publication or distribution of statements.
            (6) Each Johnny Micheal Spann Patriot Trust shall comply 
        with the instructions and directions of the Director of Central 
        Intelligence, the Attorney General, or the Secretary of Defense 
        relating to the protection of intelligence sources and methods, 
        sensitive law enforcement information, or other 
sensitive national security information, including methods for 
confidentially disbursing funds.
            (7) Each Johnny Micheal Spann Patriot Trust that receives 
        annual contributions totaling more than $1,000,000 must be 
        audited annually by an independent certified public accounting 
        firm. Such audits shall be filed with the Internal Revenue 
        Service, and shall be open to public inspection, except that 
        the conduct, filing, and availability of the audit shall be 
        consistent with the protection of intelligence sources and 
        methods, of sensitive law enforcement information, and of other 
        sensitive national security information.
            (8) Each Johnny Micheal Spann Patriot Trust shall make 
        distributions to beneficiaries described in paragraph (1) at 
        least once every calendar year, beginning not later than 12 
        months after the formation of such Trust, and all funds and 
        donations received and earnings not placed in a private 
        foundation dedicated to such beneficiaries must be distributed 
        within 36 months after the end of the fiscal year in which such 
        funds, donations, and earnings are received.
            (9)(A) When determining the amount of a distribution to any 
        beneficiary described in paragraph (1), a Johnny Micheal Spann 
        Patriot Trust should take into account the amount of any 
        collateral source compensation that the beneficiary has 
        received or is entitled to receive as a result of the death of 
        an individual described in subsection (c)(1).
            (B) Collateral source compensation includes all 
        compensation from collateral sources, including life insurance, 
        pension funds, death benefit programs, and payments by Federal, 
        State, or local governments related to the death of an 
        individual described in subsection (c)(1).
    (d) Treatment of Johnny Micheal Spann Patriot Trusts.--Each Johnny 
Micheal Spann Patriot Trust shall refrain from conducting the 
activities described in clauses (i) and (ii) of section 301(20)(A) of 
the Federal Election Campaign Act of 1971 so that a general 
solicitation of funds by an individual described in paragraph (1) of 
section 323(e) of such Act will be permissible if such solicitation 
meets the requirements of paragraph (4)(A) of such section.
    (e) Notification of Trust Beneficiaries.--Notwithstanding any other 
provision of law, and in a manner consistent with the protection of 
intelligence sources and methods, sensitive law enforcement 
information, and other sensitive national security information, the 
Secretary of Defense, the Director of the Federal Bureau of 
Investigation, or the Director of Central Intelligence, or their 
designees, as applicable, may forward information received from an 
executor, administrator, or other legal representative of the estate of 
a decedent described in subparagraph (A), (B), (C), or (D) of 
subsection (c)(1), to a Johnny Micheal Spann Patriot Trust on how to 
contact individuals eligible for a distribution under subsection (c)(1) 
for the purpose of providing assistance from such Trust; provided that, 
neither forwarding nor failing to forward any information under this 
subsection shall create any cause of action against any Federal 
department, agency, officer, agent, or employee.
    (f) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Secretary of Defense, in coordination with 
the Attorney General, the Director of the Federal Bureau of 
Investigation, and the Director of Central Intelligence, shall 
prescribe regulations to carry out this section.

Summary: Sets forth requirements a charitable corporation, fund, foundation, or trust must meet to designate itself as a Johnny Micheal Spann Patriot Trust (a charitable trust for the spouses, dependents, and relatives of military and Federal personnel who lose their lives in the battle against terrorism that is named after the first American to die in such service following the September 11th terrorist attacks). Requires at least 85 percent of each Trust corpus to be distributed to such survivors and prohibits more than 15 percent from being used for administrative purposes. Prohibits any such Trust from participating in any political campaign on behalf of a candidate for public office. Requires: (1) audits of each Trust that annually receives contributions of more than $1 million; and (2) Trust distributions to be made at least once a year.Provides for the notification of Trust beneficiaries.