[105th Congress Public Law 26]
[From the U.S. Government Printing Office]
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[DOCID: f:publ26.105]
[[Page 111 STAT. 241]]
Public Law 105-26
105th Congress
An Act
To immunize donations made in the form of charitable gift annuities and
charitable remainder trusts from the antitrust laws and State laws
similar to the antitrust laws. <<NOTE: July 3, 1997 - [H.R. 1902]>>
Be it enacted by the Senate and House of Representatives of the
United States of America <<NOTE: Charitable Donation Antitrust Immunity
Act of 1997.>> in Congress assembled,
SECTION 1. SHORT <<NOTE: 15 USC 1 note.>> TITLE.
This Act may be cited as the ``Charitable Donation Antitrust
Immunity Act of 1997''.
SEC. 2. IMMUNITY FROM ANTITRUST LAWS.
The Charitable Gift Annuity Antitrust Relief Act of 1995 (15 U.S.C.
37 et seq.) is amended--
(1) by amending <<NOTE: 15 USC 37.>> section 2 to read as
follows:
``SEC. 2. IMMUNITY FROM ANTITRUST LAWS.
``(a) Inapplicability of Antitrust Laws.--Except as provided in
subsection (d), the antitrust laws, and any State law similar to any of
the antitrust laws, shall not apply to charitable gift annuities or
charitable remainder trusts.
``(b) Immunity.--Except as provided in subsection (d), any person
subjected to any legal proceeding for damages, injunction,
penalties, or other relief of any kind under the antitrust laws, or any
State law similar to any of the antitrust laws, on account of setting or
agreeing to rates of return or other terms for, negotiating, issuing,
participating in, implementing, or otherwise being involved in the
planning, issuance, or payment of charitable gift annuities or
charitable remainder trusts shall have immunity from suit under the
antitrust laws, including the right not to bear the cost, burden, and
risk of discovery and trial, for the conduct set forth in this
subsection.
``(c) Treatment of Certain Annuities and Trusts.--Any annuity
treated as a charitable gift annuity, or any trust treated as a
charitable remainder trust, either--
``(1) in any filing by the donor with the Internal Revenue
Service; or
``(2) in any schedule, form, or written document provided by
or on behalf of the donee to the donor;
shall be conclusively presumed for the purposes of this Act to be
respectively a charitable gift annuity or a charitable remainder trust,
unless there has been a final determination by the Internal Revenue
Service that, for fraud or otherwise, the donor's
annuity or trust did not qualify respectively as a charitable
gift annuity or charitable remainder trust when created.
[[Page 111 STAT. 242]]
``(d) Limitation.--Subsections (a) and (b) shall not apply with
respect to the enforcement of a State law similar to any of the
antitrust laws, with respect to charitable gift annuities, or
charitable remainder trusts, created after the State enacts a statute,
not later than December 8, 1998, that expressly provides that
subsections (a) and (b) shall not apply with respect to such charitable
gift annuities and such charitable remainder trusts.''; and
(2) in <<NOTE: 15 USC 37a.>> section 3--
(A) by striking paragraph (1);
(B) by redesignating paragraph (2) as paragraph (1);
(C) by inserting after paragraph (1), as so
redesignated, the following:
``(2) Charitable remainder trust.--The term `charitable
remainder trust' has the meaning given it in section 664(d) of
the Internal Revenue Code of 1986 (26 U.S.C. 664(d)).'';
(D) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(E) by inserting after paragraph (3) the following:
``(4) Final determination.--The term `final determination'
includes an Internal Revenue Service determination, after
exhaustion of donor's and donee's administrative remedies,
disallowing the donor's charitable deduction for the year in
which the initial contribution was made because of the donee's
failure to comply at such time with the requirements of section
501(m)(5) or 664(d), respectively, of the Internal Revenue Code
of 1986 (26 U.S.C. 501(m)(5), 664(d)).''.
SEC. 3. APPLICATION <<NOTE: 15 USC 37 note.>> OF ACT.
This Act, and the amendments made by this Act, shall apply with
respect to all conduct occurring before, on, or after the date of the
enactment of this Act and shall apply in all administrative and judicial
actions pending on or commenced after the date of the enactment of this
Act.
SEC. 4. STUDY <<NOTE: 15 USC 37 note.>> AND REPORT.
(a) Study and Report.--The Attorney General shall carry out a study
to determine the effect of this Act on markets for noncharitable
annuities, charitable gift annuities, and charitable remainder trusts.
The Attorney General shall prepare a report summarizing the results of
the study.
(b) Details of Study and Report.--The report referred to in
subsection (a) shall include any information on possible inappropriate
activity resulting from this Act and any recommendations for legislative
changes, including recommendations for additional enforcement resources.
[[Page 111 STAT. 243]]
(c) Submission of Report.--The Attorney General shall submit the
report referred to in subsection (a) to the Chairman and the ranking
member of the Committee on the Judiciary of the House of
Representatives, and to the Chairman and the ranking member of the
Committee on the Judiciary of the Senate, not later than 27 months after
the date of the enactment of this Act.
Approved July 3, 1997.
LEGISLATIVE HISTORY--H.R. 1902:
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HOUSE REPORTS: No. 105-146 (Comm. on the Judiciary).
CONGRESSIONAL RECORD, Vol. 143 (1997):
June 23, considered and passed House.
June 24, considered and passed Senate.
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