An Act to facilitate the amendment of the governing instruments of certain charitable trusts and corporations subject to the jurisdiction of the District of Columbia, in order to conform to the requirements of section 508 and section 664 of the Internal Revenue Code of 1954, as added by the Tax Reform Act of 1969
PL 92-177 (H.R.11489), enacted 12/06/1971

494 
PUBLIC LAW 92-176-DEC. 2, 1971 
[85 
STAT. 
78 Stat, 333. 
42 u s e 1961C-6. 
80 Stat. 130. 
42 u s e 1961C-7. 
Land convey-
ance. 
78 Stat, 329. 
42 u s e 1961 
note, 
63 Stat. 377, 
40 u s e 471 
note. 
SEC. 0. Section 306 of the Water Resources Keseaich Act of 1964 is 
amended by changing the period to a comma and adding "the District 
of Columbia, and the territories of the Virgin Islands and Guam.". 
SEC. 7. Section 307 of the Water Resources Research Act of 1964 is 
amended by striking out "March 1" and inserting in lieu thereof 
"October 1" and by striking out "calendar'* and inserting in lieu thereof 
"fiscal". 
SEC. 8. The Water Resources Research Act of 1964 is amended by 
inserting the following new section: 
"SEC. 308. Excess personal property acquired by the Secretary under 
the Federal Property and Administrative Services Act of 1949, as 
amended, for use in furtherance of the purposes of this Act may be 
conveyed by the Secretarj^ to a cooperating institute, educational insti-
tution, or nonprofit organization, with or without consideratioji, under 
such terms and conditions as the Secretary may prescril)e.". 
Approved December 2, 1971. 
December 2, 1971 
[H. R. 8356] 
Public Law 92-176 
AN ACT 
To make pennaiient tlie authority to pay si)-t^cial allowances to (lejjendHiits of 
inenibers of tlin imifornied services to offset expenses incident to tlieir 
evacuation. 
Uniformed serv-
ices. 
37 u s e 405a 
note. 
Be It enacted 
hy the Senate 
and Home 
of Liepi'e.scntatict'^ 
of the 
United 
States 
of America 
hi Congress 
asiienihlcd. That section 2 of 
the Act of May 22, 1965, Public Law 89-26 ( 79 Stat. 117), as amended 
(80 Stat. 851), is amended by striking out", and tei-minates on June 30, 
197r\ 
Approved December 2, 1971. 
December 6,1971 
[H, R, 11489] 
Public Law 92-177 
AN ACT 
To facilitate the amendment of the governing instruments of certain charitable 
trusts and corporations subject to the jurisdiction of the District of Columbia, 
in order to conform to the requirements of section 508 and section 664 of the 
Internal Revenue Code of 1954, as added by the Tax Reform Act of 1969. 
D,c, 
eharitable 
trusts, 
79 Stat, 736, 
D . e . eode 21-
101. 
83 Stat. 496. 
26 u s e 509, 
Be It enacted 
hy the Senate 
and House 
of Representatives 
of the 
United States 
of America 
in Congress 
assembled^ T h a t title 21 of the 
District of Columbia Code is amended by adding the following new 
chapter: 
"Chapter 18.—CHARITABLE A N D 
S P L I T - I N T E R E S T 
T R U S T S 
"Sec. 
"21-1801. Charitable and split-interest trusts. 
"§ 21-1801. Charitable and split-interest trusts 
"(a) Notwithstanding any provision to the contrary in the govern-
ing instrument or under any law applicable to the District of Colum-
bia, except as provided in subsection (e) of this section), the governing 
instrument of any trust which is treated during a particular year as a 
private foundation described in section 509 of the Internal Revenue 
Code of 1954: (including any nonexempt charitable trust described in 
section 4947(a) (1) of the Code which is treated as a private founda-
85 STAT. ] 
PUBLIC LAW 92-177-DEC. 6, 1971 
495 
83 Stat. 517. 
26 u s e 4947. 
tion) and the governing- instrument of any nonexempt split-interest 
trust described in section 4947(a) (2) of the Code (but only to the 
extent that section 508(e) of the Code is applicable to such nonexempt 
split-interest trust) shall be deemed during such particular year to 
contain all of the following provisions: 
"(1) The trust shall not engage in any act of self-dealing which 
is taxable under section 4941 of the Code. 
"(2) The trust shall make distributions at such time and in such 
manner as not to subject it to tax under section 4942 of the Code. 
"(8) The trust shall not retain any excess business holdings 
which would subject it to tax under section 4948 of the Code. 
"(4) The trust shall not make any investments wliich would 
subject it to tax under section 4944 of the Code. 
"(5) The trust shall not make any taxable expenditures wdiich 
would subject it to tax under section 4945 of the Code. 
Witli respect to any sucli trust created prior to January 1, 1970, 
Effective date, 
subsection (a) shall apply to taxable years beginning on or after 
January 1, 1972. 
"(b) Notwithstanding any provision to the contrary in the govern-
ing instrument, the trustee or trustees of any trust described in sub-
section (a), other than a trust described in section 4947(a) (2) of the 
Code, may, without application to any court, amend the governing 
instrument expressly to include the provisions required by section 
508(e) of the Code by executing a written amendment to the trust 
and delivering a copy thereof, by certified mail, to each named bene-
ficiary, if any. 
"(c) Xotwithstanding any [jiovision to the contrai'v in the govern-
ing instrument, the ti'ustee or ti'ustees of any trust described in sec-
tion 4947(a)(2) of the Code to which subsection (a) is applicable 
may, after obtaining tlie written consent of the creator of such trust 
if then living and competent to give such consent, and without ap-
plication to any court, amend the governing instrument expressly to 
include the provisions required by section 508(e) of the Code by 
executing a written amendment to the trust and delivering a copy 
tliereof by certified mail, to each named beneficiary, if any. 
"(d) Xotwithstanding any provision to the contrary in tlie govern-
ing instrument, the trustee or trustees of any trust described in section 
4947(a)(2) of the Code to which subsection (a) is applicable, with 
the consent of each beneticiaiy named in such governing insti'ument, 
may, without application to any court, amend the gover-ning instru-
ment to conform to the provisions of section 664 of the Code by execut- 
^^ stat. 562. 
ing a written amendment to the trust foi- such purpose. Consent shall 
not be required as to individual named beneficiaries not living at the 
time of the amendment. In the case of any individual beneficiary not 
competent to give consent, the consent of a guardian, appointed by a 
court of competent jurisdiction, shall be treated as consent of the 
beneficiary. In the case of any amendment to a trust created by will, 
such amendment may, if provided in the amendment, be deemed to 
apply as of the date of death of tlie testator. 
"(e) The provisions of subsection (a) shall not apply to any trust 
to the extent that a court of competent jurisdiction shall determine 
that such application would be contrary to the terms of the governing 
instrument and that such instrument may not properly be amended 
to confor-m with subsection (a). 
496 
PUBLIC LAW 92-177-DEC. 6, 1971 
[85 STAT. 
"Trust." 
"(f) For purposes of this section, the term 'trust' includes (1) any 
trust created by will of a resident of the District of Columbia admitted 
to [)robate in the District of Columbia, (2) any trust created by a resi-
dent of the District of Columbia and executed in the District of 
Columbia, (l^) any trust of which the trustee or a co-trustee is a 
bank or trust company doing- business in the District of (^olumbia, (4) 
any trust of which a niajority of the trustees are resident in the Dis-
trict of (^olumbia, (5) any trust of real property located in the 
District of Columbia, and ((>) any trust the governino" instrument of 
which provides that it is ooverned by the laws of the District of 
(^olumbia. 
"Code." 
"(g") For the purposes of this section, the term 'Code' means the 
68A Stat. 3. 
Internal Revenue (\)de of 15)54." 
26 use 1 etseq. 
^
^
^
^
^ .^ ^
^
^
^ ]S'otwithstaudiuo- any provision to the contrary in the 
governing instrument or under any law applicable to the District of 
Columbia (except as provided in subsection (c) of this section), 
the governing in«trunient of any corporation organized vuider the laws 
of the District of Columbia, or under any Act of Congress applicable 
to the District of Columbia, which is treated during a particular year 
as a private foundation described in section 509 of the Internal Revenue 
83 Stat. 496. 
Code of 1954 shall be deemed during such particular year to contain 
the following provisions: 
(1) The corporation shall not engage in any act of self-dealing 
which is taxable under secticm 4941 of the Code. 
(•2) The corporation shall make distributions at such time and 
in such manner as not to subject it to tax under section 4942 of the 
('ode. 
(o) The corporation shall Jiot retain any excess bu^siness hold-
ings which would subject it to tax under section 4943 of the Code. 
(4) The corporation shall not make any investments which 
would subject it to tax under section 4944 of the Code. 
(5) The corporation shall not niake any taxable expenditures 
which would subject it to tax under section 4945 of the Code. 
Effective date. 
\Yith respect to any such corporation organized prior to January 1, 
1970, subsection (a) shall apply to taxable years beginning on or after 
January 1,1972. ' 
(b) The govei'ning instrument of any corporation described in sub-
section (a) may be amended, in the manner provided by law for 
amendment of such governing instrument, expressly to include the 
[)rovisions required by section 508 (e) of the Code. 
(c) The provisions of subsection (a) shall not apply to any corpora-
ti<m to the extent that its go\erning instruinent is amended in the man-
ner provided l)y law for amendment of such governing instrument, 
expressly to exclude the application of subsection (a). 
"Corporation." 
((^^ YQ^ purposes of tliis sectlou, the term "corporation" includes an 
association (other than an association treated as a trust described in 
Ante, p.^494. 
sectlou 1801 of title 21 of the District of Columbia Code). 
"Code." 
^g^ Yov the purposes of this section, the term "Code" means the 
[nternal Revenue Code of 1954. 
Effective date. 
j^j^^. 3. Exccpt as othcrwise provided in this Act, or in the amend-
ments made by this Act, the provisions of this Act shall first apply 
with respect to taxable years of trusts and corporations beginning on 
or after January 1,1970. 
SEC. 4. The table of chapters for title 21 of the District of Columbia 
Code is amended by inserting after the item relating to chapter 17 the 
following: 
is. C'haritablo ami split-interest trusts." 
Approved December 6, 1971.