Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. TREATMENT OF CERTAIN CHARITABLE RISK POOLS.

(a) General Rule.--Section 501 of the Internal Revenue Code of 1986
(relating to exemption from tax on corporations, certain trusts, etc.)
is amended by redesignating subsection (n) as subsection (o) and by
inserting after subsection (m) the following new subsection:
''(n) Charitable Risk Pools.--
''(1) In general.--For purposes of this title--
''(A) a qualified charitable risk pool shall be
treated as an organization organized and operated
exclusively for charitable purposes, and
''(B) subsection (m) shall not apply to a qualified
charitable risk pool.
''(2) Qualified charitable risk pool.--For purposes of this
subsection, the term 'qualified charitable risk pool' means any
organization--
''(A) which is organized and operated solely to
pool insurable risks of its members (other than risks
related to medical malpractice) and to provide
information to its members with respect to loss control
and risk management,
''(B) no part of the net earnings of which inures
to the benefit of any member or other person other than
through providing insurance coverage (or information)
described in subparagraph (A),
''(C) which is comprised solely of members that are
organizations described in subsection (c)(3) and exempt
from tax under subsection (a), and
''(D) which meets the organizational requirements
of paragraph (3).
''(3) Organizational requirements.--An organization
(hereinafter in this subsection referred to as the 'risk pool')
meets the organizational requirements of this paragraph if--
''(A) such risk pool is organized as a nonprofit
organization under State law provisions authorizing
risk pooling arrangements for charitable organizations,
''(B) such risk pool is exempt from any income tax
imposed by the State (or will be so exempt after such
pool qualifies as an organization exempt from tax under
this title),
''(C) such risk pool has obtained at least
$1,000,000 in startup capital from nonmember charitable
organizations,
''(D) such risk pool is controlled by a board of
directors elected by its members, and
''(E) the organizational documents of such risk
pool require that--
''(i) each member of such pool shall at all
times be an organization described in
subsection (c)(3) and exempt from tax under
subsection (a),
''(ii) any member which receives a final
determination that it no longer qualifies as an
organization described in subsection (c)(3)
shall immediately notify the pool of such
determination and the effective date of such
determination, and
''(iii) each policy of insurance issued by
the risk pool shall provide that such policy
will not cover the insured with respect to
events occurring after the date such final
determination was issued to the insured.
An organization shall not cease to qualify as a qualified
charitable risk pool solely by reason of the failure of any of
its members to continue to be an organization described in
subsection (c)(3) if, within a reasonable period of time after
such pool is notified as required under subparagraph (C)(ii),
such pool takes such action as may be reasonably necessary to
remove such member from such pool.
''(4) Other definitions.--For purposes of this subsection--
''(A) Startup capital.--The term 'startup capital'
means any capital contributed to, and any program-
related investments (within the meaning of section
4944(c)) made in, the risk pool before such pool
commences operations.
''(B) Nonmember charitable organization.--The term
'nonmember charitable organization' means any
organization which is described in subsection (c)(3)
and exempt from tax under subsection (a) and which is
not a member of the risk pool and does not benefit
(directly or indirectly) from the insurance coverage
provided by the pool to its members.''
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 1991.
Student:
Amends the Internal Revenue Code to allow a tax exemption for charitable risk pools organized and operated exclusively for charitable purposes.