[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3240 Introduced in House (IH)]


104th CONGRESS
  2d Session
                                H. R. 3240

 To amend the Internal Revenue Code of 1986 to clarify the prohibition 
                           against lobbying.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 15, 1996

 Mr. Dornan (for himself and Mr. Wolf) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to clarify the prohibition 
                           against lobbying.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF LOBBYING PROHIBITION APPLICABLE TO CERTAIN 
              CHARITIES.

    (a) In General.--Subsection (h) of section 501 of the Internal 
Revenue Code of 1986 (relating to expenditures by public charities to 
influence legislation) is amended by adding at the end the following 
new paragraph:
            ``(9) Clarification of substantiality test.--An 
        organization described in paragraph (5), or an organization 
        described in paragraph (3) which does not make the election 
        described in paragraph (3), shall be denied exemption from 
        taxation under subsection (a) because a substantial part of the 
        activities of such organization consists of carrying on 
        propaganda, or otherwise attempting, to influence legislation 
        only if more than 5 percent of the total expenditures of the 
        organization for the taxable year are for carrying on 
        propaganda, or otherwise attempting, to influence 
        legislation.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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