Part 1. Definition
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Part 2. Example
SECTION 1. LIABILITY OF BUSINESS ENTITIES PROVIDING USE OF FACILITIES
TO NONPROFIT ORGANIZATIONS.

(a) Definitions.--In this section:
(1) Business entity.--The term ''business entity'' means a
firm, corporation, association, partnership, consortium, joint
venture, or other form of enterprise.
(2) Facility.--The term ''facility'' means any real
property, including any building, improvement, or appurtenance.
(3) Gross negligence.--The term ''gross negligence'' means
voluntary and conscious conduct by a person with knowledge (at
the time of the conduct) that the conduct is likely to be
harmful to the health or well-being of another person.
(4) Intentional misconduct.--The term ''intentional
misconduct'' means conduct by a person with knowledge (at the
time of the conduct) that the conduct is harmful to the health
or well-being of another person.
(5) Nonprofit organization.--The term ''nonprofit
organization'' means--
(A) any organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 and exempt from
tax under section 501(a) of such Code; or
(B) any not-for-profit organization organized and
conducted for public benefit and operated primarily for
charitable, civic, educational, religious, welfare, or
health purposes.
(6) State.--The term ''State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, the Northern
Mariana Islands, any other territory or possession of the
United States, or any political subdivision of any such State,
territory, or possession.
(b) Limitation on Liability.--
(1) In general.--Subject to subsection (c), a business
entity shall not be subject to civil liability relating to any
injury or death occurring at a facility of the business entity
in connection with a use of such facility by a nonprofit
organization if--
(A) the use occurs outside of the scope of business
of the business entity;
(B) such injury or death occurs during a period
that such facility is used by the nonprofit
organization; and
(C) the business entity authorized the use of such
facility by the nonprofit organization.
(2) Application.--This subsection shall apply--
(A) with respect to civil liability under Federal
and State law; and
(B) regardless of whether a nonprofit organization
pays for the use of a facility.
(c) Exception for Liability.--Subsection (b) shall not apply to an
injury or death that results from an act or omission of a business
entity that constitutes gross negligence or intentional misconduct,
including any misconduct that--
(1) constitutes a crime of violence (as that term is
defined in section 16 of title 18, United States Code) or act
of international terrorism (as that term is defined in section
2331 of title 18) for which the defendant has been convicted in
any court;
(2) constitutes a hate crime (as that term is used in the
Hate Crime Statistics Act (28 U.S.C. 534 note));
(3) involves a sexual offense, as defined by applicable
State law, for which the defendant has been convicted in any
court; or
(4) involves misconduct for which the defendant has been
found to have violated a Federal or State civil rights law.
(d) Superseding Provision.--
(1) In general.--Subject to paragraph (2) and subsection
(e), this Act preempts the laws of any State to the extent that
such laws are inconsistent with this Act, except that this Act
shall not preempt any State law that provides additional
protection from liability for a business entity for an injury
or death with respect to which conditions under subparagraphs
(A) through (C) of subsection (b)(1) apply.
(2) Limitation.--Nothing in this Act shall be construed to
supersede any Federal or State health or safety law.
(e) Election of State Regarding Nonapplicability.--This Act shall
not apply to any civil action in a State court against a business
entity in which all parties are citizens of the State if such State
enacts a statute--
(1) citing the authority of this subsection;
(2) declaring the election of such State that this Act
shall not apply to such civil action in the State; and
(3) containing no other provision.
Answer: Shields a business entity from civil liability relating to any injury or death occurring at a facility of that entity in connection with a use of such facility by a nonprofit organization if: (1) the use occurs outside the scope of business of the business entity; (2) such injury or death occurs during a period that such facility is used by such organization; and (3) the business entity authorized the use of such facility by the organization.
Makes this Act inapplicable to an injury or death that results from an act or omission of a business entity that constitutes gross negligence or intentional misconduct, including misconduct that: (1) constitutes a hate crime or a crime of violence or act of international terrorism for which the defendant has been convicted in any court; or (2) involves a sexual offense for which the defendant has been convicted in any court or misconduct for which the defendant has been found to have violated a Federal or State civil rights law.
Preempts State laws to the extent that such laws are inconsistent with this Act, except State law that provides additional protection from liability. Specifies that this Act shall not be construed to supersede any Federal or State health or safety law.
Makes this Act inapplicable to any civil action in a State court against a business entity in which all parties are citizens of the State if such State, citing this Act's authority and containing no other provision, enacts a statute declaring the State's election that this Act shall not apply to such action in the State.
Explanation: This Bill focuses on shielding business entities from civil liability relating to an injury or death depending on the conditions of injury, hence the generated summary is correct.
Part 3. Exercise
SECTION 1. SHORT TITLE.

This Act may be cited as the ''Children's Financial Security Act of
1996''.

SEC. 2. FEDERAL CONTRIBUTIONS TO CHILD RETIREMENT ACCOUNTS.

(a) In General.--As soon as practicable after the close of each
calendar year, the Secretary of the Treasury or his delegate shall
transfer for such calendar year, from amounts in the general fund of
the Treasury not otherwise appropriated, $1,000 to the Child Retirement
Account of each individual who is an eligible child for such calendar
year.
(b) Eligible Child.--For purposes of this section, the term
''eligible child'' means, with respect to any calendar year, any
individual who, as of the close of such calendar year--
(1) is a citizen or resident alien of the United States,
and
(2) has not attained age 6.
(c) Reduction in Contribution for Children of High Income
Parents.--
(1) In general.--If, with respect to an eligible child, the
adjusted gross income of the applicable taxpayer for the
taxable year ending with or within a calendar year exceeds the
threshold amount, the $1,000 amount in subsection (a) with
respect to such child for such calendar year shall be reduced
(but not below zero) by the amount which bears the same ratio
to $1,000 as such excess bears to the phaseout range.
(2) Applicable taxpayer may make-up reduced contribution.--
If there is a reduction under this subsection in the amount
transferred under subsection (a) to the Child Retirement
Account of an eligible child for any calendar year, the
applicable taxpayer with respect to such child may (at such
time and in such manner as the Secretary may prescribe)
transfer an amount equal to the amount of such reduction to the
Child Retirement Account of such child.
(d) Children Below Age 19 as of Enactment.--
(1) In general.--In the case of an individual who, as of
the close of 1996--
(A) is a citizen or resident alien of the United
States, and
(B) has not attained age 19,
the applicable taxpayer with respect to such individual may (at
such time and in such manner as the Secretary may prescribe)
contribute to the Child Retirement Account of such child an
amount equal to the lesser of $6,000 or the product of $1,000
and the age of such child as of the close of 1996. Any
contribution under the preceding sentence may be made only
during 1997 and 1998.
(2) Reduction of contribution for children of high income
parents.--If, with respect to an individual described in
paragraph (1), the adjusted gross income of the applicable
taxpayer for the taxable year ending with or within 1997
exceeds the threshold amount, the amount otherwise determined
under paragraph (1) with respect to such individual shall be
reduced (but not below zero) by the amount which bears the same
ratio to the amount so otherwise determined as such excess
bears to the phaseout range.
(e) Definitions.--For purposes of subsections (c) and (d)--
(1) Phaseout range.--The term ''phaseout range'' means--
(A) $50,000 in the case of a joint return,
(B) $33,000 in the case of an individual who is not
married, and
(C) $25,000 in the case of a married individual
filing a separate return.
(2) Threshold amount.--The term ''threshold amount''
means--
(A) $100,000 in the case of a joint return for such
taxable year,
(B) $67,000 in the case of an individual who is not
married, and
(C) $50,000 in the case of a married individual
filing a separate return.
(3) Applicable taxpayer.--The term ''applicable taxpayer''
means, with respect to an eligible child--
(A) the taxpayer to whom a deduction is allowable
under section 151(c) of the Internal Revenue Code of
1986 for such child, or
(B) if no taxpayer is described in subparagraph
(A), such child.

SEC. 3. CHILD RETIREMENT ACCOUNTS.

(a) In General.--Subchapter F of chapter 1 of the Internal Revenue
Code of 1986 (relating to exempt organizations) is amended by adding at
the end the following new part:

''PART VIII--CHILD RETIREMENT ACCOUNTS

''Sec. 529. Child Retirement Accounts.

''SEC. 529. CHILD RETIREMENT ACCOUNTS.

''(a) Child Retirement Account.--For purposes of this part, the
term 'Child Retirement Account' means any trust created or organized in
the United States for the exclusive benefit of the account beneficiary
but only if the written governing instrument creating the trust meets
the following requirements:
''(1) No contribution will be accepted unless it is in
cash.
''(2) The only contributions which will be accepted are--
''(A) contributions under section 2 of the
Children's Financial Security Act of 1996,
''(B) contributions of not more than $100 for each
calendar year after the calendar year in which the
account beneficiary attains age 5 and before the
calendar year in which such beneficiary attains age 19,
and
''(C) trustee-to-trustee transfers to such trust
from another Child Retirement Account of the account
beneficiary.
''(3) The assets of the trust are invested only in an
approved mutual fund.
''(4) The requirements of paragraphs (2) through (6) of
section 408(a) are met.
''(b) Tax Treatment of Accounts.--
''(1) In general.--A Child Retirement Account is exempt
from taxation under this subtitle unless such account has
ceased to be a Child Retirement Account. Notwithstanding the
preceding sentence, any such Account is subject to the taxes
imposed by section 511 (relating to imposition of tax on
unrelated business income of charitable, etc., organizations).
''(2) Account terminations.--Rules similar to the rules of
paragraphs (2) and (4) of section 408(e) shall apply to Child
Retirement Accounts; except that such paragraph (4) shall not
apply to loans which are qualified special purpose
distributions.
''(c) Tax Treatment of Distributions.--
''(1) In general.--
''(A) Withholding.--The trustee of a Child
Retirement Account shall deduct and withhold from any
distribution from such Account a tax equal to 20
percent of such distribution.
''(B) No other tax.--Distributions from a Child
Retirement Account shall not be includible in gross
income.
''(C) Credit for amounts withheld only on qualified
special purpose loan distributions which are repaid.--
In the case of an amount withheld under subparagraph
(A) on a qualified special purpose distribution from a
Child Retirement Account in the form of a loan, there
shall be allowed as a credit against the tax imposed by
this subtitle for any taxable year an amount which
bears the same ratio to the amount withheld as the
principal amount of such loan which is repaid during
such taxable year bears to the total principal amount
of the loan. The credit allowed under the preceding
sentence shall be treated as a credit allowed under
subpart C of part IV of subchapter A of this chapter
and shall be allowed to the account beneficiary.
''(2) Penalty on distributions not used for qualified
purposes.--If any distribution is made from a Child Retirement
Account which is not a qualified distribution, the account
beneficiary's tax imposed by this chapter for the taxable year
in which such distribution is made shall be increased by an
amount equal to 50 percent of such distribution.
''(3) Qualified distribution.--For purposes of paragraph
(2), the term 'qualified distribution' means any distribution--
''(A) made on or after the date on which the
account beneficiary attains age 59/2\,
''(B) made to a beneficiary (or to the estate of
the individual) on or after the death of the account
beneficiary,
''(C) attributable to the account beneficiary being
disabled (within the meaning of section 72(m)(7)), or
''(D) which is a qualified special purpose
distribution.
''(4) Qualified special purpose distribution.--For purposes
of paragraph (3), the term 'qualified special purpose
distribution' means any distribution (including in the form of
a loan) from a Child Retirement Account to the account
beneficiary--
''(A) if such distribution is a qualified first-
time homebuyer distribution, or
''(B) to the extent the aggregate distributions
from the Account does not exceed the qualified higher
education expenses of the account beneficiary for the
taxable year in which received.
Such term shall not include any distribution from such an
Account during a calendar year to the extent such distribution,
when added to the amount of all prior distributions from such
Account during the calendar year and all prior calendar years,
exceeds an amount equal to 50 percent of the balance in such
Account as of the close of the prior calendar year.
''(5) Qualified first-time homebuyer distributions.--
''(A) In general.--For purposes of this subsection,
the term 'qualified first-time homebuyer distribution'
means any payment or distribution received by the
account beneficiary to the extent such payment or
distribution is used by such beneficiary within a
reasonable period to pay qualified acquisition costs
with respect to a principal residence for such
beneficiary as a first-time homebuyer.
''(B) Qualified acquisition costs.--For purposes of
this paragraph, the term 'qualified acquisition costs'
means the costs of acquiring, constructing, or
reconstructing a residence. Such term includes any
usual or reasonable settlement, financing, or other
closing costs.
''(C) First-time homebuyer; other definitions.--For
purposes of this paragraph--
''(i) First-time homebuyer.--The term
'first-time homebuyer' means any individual if
such individual (and, if married, such
individual's spouse) had no present ownership
interest in a principal residence during the 3-
year period ending on the date of acquisition
of the principal residence to which this
paragraph applies.
''(ii) Principal residence.--The term
'principal residence' has the same meaning as
when used in section 1034.
''(iii) Date of acquisition.--The term
'date of acquisition' means the date--
''(I) on which a binding contract
to acquire the principal residence to
which subparagraph (A) applies is
entered into, or
''(II) on which a binding contract
to construct or reconstruct such a
principal residence is entered into.
''(6) Qualified higher education expenses.--For purposes of
this subsection--
''(A) In general.--The term 'qualified higher
education expenses' means--
''(i) expenses for tuition, fees, books,
supplies, and equipment required for the
enrollment or attendance of the account
beneficiary at an eligible educational
institution (as defined in section 135(c)(3)),
and
''(ii) reasonable living expenses while
away from home while attending such
institution.
''(B) Coordination with savings bond provisions.--
The amount of qualified higher education expenses for
any taxable year shall be reduced by any amount
excludable from gross income under section 135.
''(7) Exceptions from withholding tax and penalty for
trustee-to-trustee transfers.--Paragraphs (1)(A) and (2) shall
not apply to any trustee-to-trustee transfers from a Child
Retirement Account to another Child Retirement Account of the
same account beneficiary.
''(d) Approved Mutual Fund.--For purposes of this section--
''(1) In general.--The term 'approved mutual fund' means
any fund of any regulated investment company (as defined in
section 851(a)) if--
''(A) an election under section 851(b)(1) is in
effect with respect to such company, and
''(B) such fund is designated by the Federal
Retirement Thrift Investment Board for purposes of this
section.
''(2) Standards for designation.--A fund may be designated
under paragraph (1) only if the Federal Retirement Thrift
Investment Board determines that it is reasonable to expect
that not less than 75 percent of the total value of the assets
of such fund are represented by equity securities.
''(e) Certain Rules To Apply.--Rules similar to the following rules
shall apply for purposes of this section:
''(1) Section 219(f)(3) (relating to time when
contributions deemed made).
''(2) Section 408(g) (relating to community property laws).
''(3) Section 408(h) (relating to custodial accounts).
''(f) Reports.--The Secretary may require the trustee of a Child
Retirement Account to make such reports regarding such Account to the
Secretary and to the account beneficiary with respect to contributions,
distributions, and such other matters as the Secretary determines
appropriate. The reports required by this subsection shall be filed at
such time and in such manner and furnished to such individuals at such
time and in such manner as may be required by the Secretary.''
(b) Conforming Amendments.--
(1) Tax on prohibited transactions.--
(A) Section 4975 of such Code (relating to tax on
prohibited transactions) is amended by adding at the
end of subsection (c) the following new paragraph:
''(5) Special rule for child retirement accounts.--An
individual for whose benefit a Child Retirement Account (within
the meaning of section 529(a)) is established shall be exempt
from the tax imposed by this section with respect to any
transaction concerning such account (which would otherwise be
taxable under this section) if, with respect to such
transaction, the account ceases to be a Child Retirement
Account by reason of the application of section 529(b)(2) to
such Account.''
(B) Paragraph (1) of section 4975(e) of such Code
is amended by striking ''or'' at the end of
subparagraph (D), by redesignating subparagraph (E) as
subparagraph (F), and by inserting after subparagraph
(D) the following new subparagraph:
''(E) a Child Retirement Account described in
section 529(a), or''.
(2) Failure to provide reports on child retirement
accounts.--Paragraph (2) of section 6693(a) of such Code is
amended by striking ''and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting '', and'', and by adding at the end the following new
subparagraph:
''(C) section 529(f) (relating to Child Retirement
Accounts).''
(3) Clerical amendment.--The table of parts for subchapter
F of chapter 1 of such Code is amended by adding at the end the
following new item:

''Part VIII. Child Retirement Accounts.''
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1996.
Answer:
Children's Financial Security Act of 1996 -
Directs the Secretary of the Treasury or a delegate to transfer each calendar year, from the general fund of the Treasury and for each calendar year, $1,000 to the Child Retirement Account (CRA) of each eligible child. Makes eligible any individual who as of the close of such calendar year: (1) is a citizen or resident alien of the United States; and (2) has not attained age six. Allows the applicable taxpayer, in the case of children below age 19 as of the close of 1996, to contribute, during 1997 and 1998 only, to the child's CRA an amount equal to the lesser of $6,000 or the product of $1,000 and the child's age as of the close of 1996. Reduces the amount of any Federal or parental contribution for children of high-income parents, according to a phaseout range formula.
Amends the Internal Revenue Code to exempt CRAs from the income tax, but not from the tax on unrelated business income of charitable organizations. Requires the withholding of a 20 percent tax on any distribution from a CRA (although such distributions shall not be included in gross income). Provides for qualified special purpose distributions for first-time homebuying and for higher education expenses (along with a specified credit against the 20 percent distribution tax).