[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4255 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4255

To assist States in providing individuals a credit against State income 
     taxes or a comparable benefit for contributions to charitable 
 organizations working to prevent or reduce poverty and to protect and 
            encourage donations to charitable organizations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 1998

 Mr. Kasich (for himself, Mr. Souder, Mr. English of Pennsylvania, Mr. 
   Knollenberg, Mr. Kolbe, Mr. McIntosh, Mr. Packard, Mr. Pitts, Mr. 
 Talent, Mr. Wamp, and Mr. Watts of Oklahoma) introduced the following 
  bill; which was referred to the Committee on Ways and Means, and in 
    addition to the Committee on the Judiciary, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To assist States in providing individuals a credit against State income 
     taxes or a comparable benefit for contributions to charitable 
 organizations working to prevent or reduce poverty and to protect and 
            encourage donations to charitable organizations.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``REAL Life 
Community Renewal Act of 1998''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
     TITLE I--ASSISTANCE TO STATES IN PROVIDING CHARITY TAX CREDITS

Sec. 101. Authority to use certain Federal grant funds for State 
                            charity tax credit.
Sec. 102. Definitions.
Sec. 103. Study and report.
Sec. 104. Effective date.
                        TITLE II--BUDGET OFFSET

Sec. 201. Reduction of earned income credit for individuals without 
                            children.
       TITLE III--BANKRUPTCY PROTECTIONS FOR CHARITABLE DONATIONS

Sec. 301. Definitions.
Sec. 302. Treatment of prepetition qualified charitable contributions.
Sec. 303. Treatment of post-petition charitable contributions.
Sec. 304. Applicability.
Sec. 305. Rule of construction.
      TITLE IV--TORT REFORMS RELATING TO CHARITABLE CONTRIBUTIONS

Sec. 401. Definitions.
Sec. 402. Liability.
Sec. 403. Exceptions.
Sec. 404. Superseding provision.
Sec. 405. Election of State regarding nonapplicablity.
Sec. 406. Effective date.

     TITLE I--ASSISTANCE TO STATES IN PROVIDING CHARITY TAX CREDITS

SEC. 101. AUTHORITY TO USE CERTAIN FEDERAL GRANT FUNDS FOR STATE 
              CHARITY TAX CREDIT.

    (a) In General.--Notwithstanding any other provision of law, if 
there is in effect under State law a charity tax credit, then the State 
may use for any purpose--
            (1) not more than 50 percent of the total amount paid to 
        the State during the fiscal year under the provisions of law 
        specified in subsection (d)(1);
            (2) not more than 50 percent of the total amount paid to 
        the State during the fiscal year under the provisions of law 
        specified in subsection (d)(2);
            (3) not more than 50 percent of the total amount paid to 
        the State during the fiscal year under the provisions of law 
        specified in subsection (d)(3);
            (4) not more than 50 percent of the total amount paid to 
        the State during the fiscal year under the law specified in 
        subsection (d)(4);
            (5) not more than 50 percent of the total amount paid to 
        the State during the fiscal year under the law specified in 
        subsection (d)(5);
            (6) not more than 50 percent of the total amount paid to 
        the State during the fiscal year under the law specified in 
        subsection (d)(6); and
            (7) not more than 50 percent of the total amount paid to 
        the State during the fiscal year under the law specified in 
        subsection (d)(7).
    (b) Limitation.--The aggregate amount a State may use under 
subsection (a) during a fiscal year shall not exceed 100 percent of the 
revenue loss of the State during the fiscal year that is attributable 
to the charity tax credit, as determined by the Secretary of the 
Treasury without regard to any such revenue loss occurring before 
January 1, 1999.
    (c) Certain Credit Amounts Treated as State Payment for Temporary 
Assistance for Needy Families.--For purposes of title IV of the Social 
Security Act, an amount equal to the excess (if any) of--
            (1) the amount of the revenue loss of a State (not to 
        exceed 100 percent) during a fiscal year that is attributable 
        to the charity tax credit, as determined under subsection (b), 
        over
            (2) the aggregate amount used by the State under subsection 
        (a) during the fiscal year,
shall be treated as an amount used during the fiscal year by the State 
to carry out a State program funded under part A of such title.
    (d) Provisions of Law.--The provisions of law referred to in this 
subsection are the following:
            (1) Paragraphs (1) through (4) of section 403(a) of the 
        Social Security Act (42 U.S.C. 603(a)).
            (2) The Child Care and Development Block Grant Act of 1990 
        (42 U.S.C. 9858-9858q), and section 418 of the Social Security 
        Act (42 U.S.C. 618).
            (3) Sections 2002 and 2007 of the Social Security Act (42 
        U.S.C. 1397a and 1397f).
            (4) The Community Services Block Grant Act (42 U.S.C. 9901-
        9912).
            (5) The Low-Income Home Energy Assistance Act of 1981.
            (6) The Job Training Partnership Act (29 U.S.C. 1501 et 
        seq.).
            (7) Title I of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5301 et seq.).

SEC. 102. DEFINITIONS.

    (a) Charity Tax Credit.--For purposes of this title, the term 
``charity tax credit'' means a nonrefundable credit against State 
income tax (or, in the case of a State which does not impose an income 
tax, a comparable benefit)--
            (1) which is allowable only to individuals for cash 
        contributions to qualified charities,
            (2) the maximum amount of which for each taxable year does 
        not exceed $250 ($500 in the case of a joint or combined return 
        of individuals who are married to each other), and
            (3) under which the annual amount of the credit allowed per 
        taxpayer is not more than $50 ($100 in the case of a joint or 
        combined return of individuals who are married to each other) 
        in the first year and increased by not more than $50 ($100 in 
        the case of a joint or combined return of individuals who are 
        married to each other) for each subsequent year.
    (b) Qualified Charity.--For purposes of this title--
            (1) In general.--The term ``qualified charity'' means any 
        organization--
                    (A) which is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from tax under 
                section 501(a) of such Code,
                    (B) which is certified by the appropriate State 
                authority as meeting the requirements of paragraphs (3) 
                and (4), and
                    (C) if such organization is otherwise required to 
                file a return under section 6033 of such Code, which 
                elects to treat the information required to be 
                furnished by paragraph (5) as being specified in 
                section 6033(b) of such Code.
            (2) Certain contributions to collection organizations 
        treated as contributions to qualified charity.--
                    (A) In general.--A contribution to a collection 
                organization shall be treated as a contribution to a 
                qualified charity if the donor designates in writing 
                that the contribution is for the qualified charity.
                    (B) Collection organization.--The term ``collection 
                organization'' means an organization described in 
                section 501(c)(3) of such Code and exempt from tax 
                under section 501(a) of such Code--
                            (i) which solicits and collects gifts and 
                        grants which, by agreement, are distributed to 
                        qualified charities described in paragraph (1),
                            (ii) which distributes to qualified 
                        charities described in paragraph (1) at least 
                        90 percent of the gifts and grants it receives 
                        that are designated for such qualified 
                        charities, and
                            (iii) which meets the requirements of 
                        paragraph (6).
            (3) Charity must primarily assist poor individuals.--
                    (A) In general.--An organization meets the 
                requirements of this paragraph only if the appropriate 
                State authority reasonably expects that the predominant 
                activity of such organization will be the provision of 
                direct services within the United States to individuals 
                and families whose annual incomes generally do not 
                exceed 185 percent of the official poverty line (as 
                defined by the Office of Management and Budget) in 
                order to prevent or alleviate poverty among such 
                individuals and families.
                    (B) No recordkeeping in certain cases.--An 
                organization shall not be required to establish or 
                maintain records with respect to the incomes of 
                individuals and families for purposes of subparagraph 
                (A) if such individuals or families are members of 
                groups which are generally recognized as including 
                substantially only individuals and families described 
                in subparagraph (A).
                    (C) Food aid and homeless shelters.--Except as 
                otherwise provided by the appropriate State authority, 
                for purposes of subparagraph (A), services to 
                individuals in the form of--
                            (i) donations of food or meals, or
                            (ii) temporary shelter to homeless 
                        individuals,
                shall be treated as provided to individuals described 
                in subparagraph (A) if the location and operation of 
                such services are such that the service provider may 
                reasonably conclude that the beneficiaries of such 
                services are predominantly individuals described in 
                subparagraph (A).
            (4) Minimum expense requirement.--
                    (A) In general.--An organization meets the 
                requirements of this paragraph only if the appropriate 
                State authority reasonably expects that the annual 
                poverty program expenses of such organization will not 
                be less than 75 percent of the annual aggregate 
                expenses of such organization.
                    (B) Poverty program expense.--For purposes of 
                subparagraph (A)--
                            (i) In general.--The term ``poverty program 
                        expense'' means any expense in providing 
program services referred to in paragraph (3).
                            (ii) Exceptions.--Such term shall not 
                        include--
                                    (I) any management or general 
                                expense,
                                    (II) any expense for the purpose of 
                                influencing legislation (as defined in 
                                section 4911(d) of the Internal Revenue 
                                Code of 1986),
                                    (III) any expense for the purpose 
                                of fundraising,
                                    (IV) any expense for a legal 
                                service provided on behalf of any 
                                individual referred to in paragraph 
                                (3), and
                                    (V) any expense which consists of a 
                                payment to an affiliate of the 
                                organization.
            (5) Reporting requirement.--The information required to be 
        furnished under this paragraph is--
                    (A) the percentages determined by dividing the 
                following categories of the organization's expenses for 
                the year by its total expenses for the year: program 
                services, management expenses, general expenses, 
                fundraising expenses, and payments to affiliates, and
                    (B) the category or categories (including food, 
                shelter, education, substance abuse, job training, or 
                otherwise) of services which constitute its predominant 
                activities.
            (6) Additional requirements for solicitation 
        organizations.--The requirements of this paragraph are met if 
        the organization--
                    (A) maintains separate accounting for revenues and 
                expenses, and
                    (B) makes available to the public its 
                administrative and fundraising costs and information as 
                to the organizations receiving funds from it and the 
                amount of such funds.
            (7) Recommendations.--It is recommended, but not required, 
        that--
                    (A) the definition of ``qualified charity'' be 
                further limited under State law to organizations--
                            (i) which have been operating for at least 
                        1 year or are controlled by, or operated under 
                        the auspices of, organizations which have been 
                        operating for at least one year, and
                            (ii) with expenses of less than 5 percent 
                        of total expenses for the purpose of 
                        influencing legislation, litigation on behalf 
                        of any individual referred to in paragraph (3), 
                        voter registration, political organizing, 
                        public policy advocacy, or public policy 
                        research,
                    (B) subject to subsection (a)(2), the amount of the 
                credit be at least 50 percent and not more than 90 
                percent of the amount of the cash contributions to 
                qualified charities, and
                    (C) contributions made not later than the time 
                prescribed by law for filing the return of the State 
                income tax for a taxable year (not including extensions 
                thereof) be treated as made (at the taxpayer's 
                election) on the last day of such year.
            (8) Special rule for states requiring tax uniformity.--In 
        the case of a State--
                    (A) which has a constitutional requirement of tax 
                uniformity, and
                    (B) which, as of December 31, 1997, imposed a tax 
                on personal income with--
                            (i) a single flat rate applicable to all 
                        earned and unearned income (except insofar as 
                        any amount is not taxed pursuant to tax 
                        forgiveness provisions), and
                            (ii) no generally available exemptions or 
                        deductions to individuals,
        the requirement of subsection (a)(2) shall be treated as met if 
        the amount of the credit is limited to a uniform percentage 
        (but not greater than 25 percent) of State personal income tax 
        liability (determined without regard to credits).
            (9) Coordination with federal charitable contribution 
        deduction.--The amount of the deduction allowed under the 
        Internal Revenue Code of 1986 for contributions which are taken 
        into account in determining any charity tax credit shall be 
        reduced by the amount of such credit which is allowed.
    (c) State.--For purposes of this title, 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.

SEC. 103. STUDY AND REPORT.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the effects of the charity tax credit under this 
title, including--
            (1) the types of organizations which receive contributions 
        during the first year to which the credit applies, and
            (2) the types of services provided to the poor by such 
        organizations.
    (b) Report.--The Comptroller General shall report to the Congress 
the results of such study, including--
            (1) the geographical distribution of funding from charity 
        tax credit contributions, and an analysis of Internal Revenue 
        Service Form 990's of qualified charities to determine if the 
        broad categories of services provided to the poor (including 
        food, shelter, education, substance abuse, job training, or 
        otherwise) match the services that would otherwise be provided 
        by Federal welfare program funds without the enactment of the 
        reductions in the programs permitted by this legislation, and
            (2) any recommendations for legislative changes.

SEC. 104. EFFECTIVE DATE.

    This title shall take effect on January 1, 1999.

                        TITLE II--BUDGET OFFSET

SEC. 201. REDUCTION OF EARNED INCOME CREDIT FOR INDIVIDUALS WITHOUT 
              CHILDREN.

    (a) In General.--The table in subparagraph (A) of section 32(b)(1) 
of the Internal Revenue Code of 1986 is amended by striking the item 
relating to no qualifying children and inserting the following:

                                                                        
                                                                        
                                                                        
   ``No qualifying children.....  3.825                    7.651.''.    
                                                                        

    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2000.

       TITLE III--BANKRUPTCY PROTECTIONS FOR CHARITABLE DONATIONS

SEC. 301. DEFINITIONS.

    Section 548(d) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(3) In this section, the term `charitable contribution' means a 
charitable contribution, as that term is defined in section 170(c) of 
the Internal Revenue Code of 1986, if that contribution--
            ``(A) is made by a natural person; and
            ``(B) consists of--
                    ``(i) a financial instrument (as that term is 
                defined in section 731(c)(2)(C) of the Internal Revenue 
                Code of 1986); or
                    ``(ii) cash.
    ``(4) In this section, the term `qualified religious or charitable 
entity or organization' means--
            ``(A) an entity described in section 170(c)(1) of the 
        Internal Revenue Code of 1986; or
            ``(B) an entity or organization described in section 
        170(c)(2) of the Internal Revenue Code of 1986.''.

SEC. 302. TREATMENT OF PREPETITION QUALIFIED CHARITABLE CONTRIBUTIONS.

    (a) In General.--Section 548(a) of title 11, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by striking ``(1) made'' and inserting ``(A) made'';
            (3) by striking ``(2)(A)'' and inserting ``(B)(i);
            (4) by striking ``(B)(i)'' and inserting ``(ii)(I)'';
            (5) by striking ``(ii) was'' and inserting ``(II) was'';
            (6) by striking ``(iii)'' and inserting ``(III)''; and
            (7) by adding at the end the following:
    ``(2) A transfer of a charitable contribution to a qualified 
religious or charitable entity or organization shall not be considered 
to be a transfer covered under paragraph (1)(B) in any case in which--
            ``(A) the amount of that contribution does not exceed 15 
        percent of the gross annual income of the debtor for the year 
        in which the transfer of the contribution is made; or
            ``(B) the contribution made by a debtor exceeded the 
        percentage amount of gross annual income specified in 
        subparagraph (A), if the transfer was consistent with the 
        practices of the debtor in making charitable contributions.''.
    (b) Trustee as Lien Creditor and as Successor to Certain Creditors 
and Purchasers.--Section 544(b) of title 11, United States Code, is 
amended--
            (1) by striking ``(b) The trustee'' and inserting ``(b)(1) 
        Except as provided in paragraph (2), the trustee''; and
            (2) by adding at the end the following:
    ``(2) Paragraph (1) shall not apply to a transfer of a charitable 
contribution (as that term is defined in section 548(d)(3)) that is not 
covered under section 548(a)(1)(B), by reason of section 548(a)(2).''.
    (c) Conforming Amendments.--Section 546 of title 11, United States 
Code, is amended--
            (1) in subsection (e)--
                    (A) by striking ``548(a)(2)'' and inserting 
                ``548(a)(1)(B)''; and
                    (B) by striking ``548(a)(1)'' and inserting 
                ``548(a)(1)(A)'';
            (2) in subsection (f)--
                    (A) by striking ``548(a)(2)'' and inserting 
                ``548(a)(1)(B)''; and
                    (B) by striking ``548(a)(1)'' and inserting 
                ``548(a)(1)(A)''; and
            (3) in subsection (g)--
                    (A) by striking ``section 548(a)(1)'' each place it 
                appears and inserting ``section 548(a)(1)(A)''; and
                    (B) by striking ``548(a)(2)'' and inserting 
                ``548(a)(1)(B)''.

SEC. 303. TREATMENT OF POST-PETITION CHARITABLE CONTRIBUTIONS.

    (a) Confirmation of Plan.--Section 1325(b)(2)(A) of title 11, 
United States Code, is amended by inserting before the semicolon the 
following: ``, including charitable contributions (that meet the 
definition of `charitable contribution' under section 548(d)(3)) to a 
qualified religious or charitable entity or organization (as that term 
is defined in section 548(d)(4)) in an amount not to exceed 15 percent 
of the gross income of the debtor for the year in which the 
contributions are made''.
    (b) Dismissal.--Section 707(b) of title 11, United States Code, is 
amended by adding at the end the following: ``In making a determination 
whether to dismiss a case under this section, the court may not take 
into consideration whether a debtor has made, or continues to make, 
charitable contributions (that meet the definition of `charitable 
contribution' under section 548(d)(3)) to any qualified religious or 
charitable entity or organization (as that term is defined in section 
548(d)(4)).''.

SEC. 304. APPLICABILITY.

    This title and the amendments made by this title shall apply to any 
case brought under an applicable provision of title 11, United States 
Code, that is pending or commenced on or after the date of enactment of 
this Act.

SEC. 305. RULE OF CONSTRUCTION.

    Nothing in the amendments made by this title is intended to limit 
the applicability of the Religious Freedom Restoration Act of 1993 (42 
U.S.C. 2002bb et seq.).

      TITLE IV--TORT REFORMS RELATING TO CHARITABLE CONTRIBUTIONS

SEC. 401. DEFINITIONS.

    In this title:
            (1) Aircraft.--The term ``aircraft'' has the meaning 
        provided that term in section 40102(6) of title 49, United 
        States Code.
            (2) Business entity.--The term ``business entity'' means a 
        firm, corporation, association, partnership, consortium, joint 
        venture, or other form of enterprise.
            (3) Equipment.--The term ``equipment'' includes mechanical 
        equipment, electronic equipment, and office equipment.
            (4) Facility.--The term ``facility'' means any real 
        property, including any building, improvement, or appurtenance.
            (5) 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.
            (6) 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.
            (7) Motor vehicle.--The term ``motor vehicle'' has the 
        meaning provided that term in section 30102(6) of title 49, 
        United States Code.
            (8) 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.
            (9) 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.

SEC. 402. LIABILITY.

    (a) Liability of Business Entities That Donate Equipment to 
Nonprofit Organizations.--
            (1) In general.--Subject to section 403, a business entity 
        shall not be subject to civil liability relating to any injury 
        or death that results from the use of equipment donated by a 
        business entity to a nonprofit organization.
            (2) Application.--This subsection shall apply with respect 
        to civil liability under Federal and State law.
    (b) Liability of Business Entities Providing Use of Facilities to 
Nonprofit Organizations.--
            (1) In general.--Subject to section 403, 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) Liability of Business Entities Providing Use of a Motor Vehicle 
or Aircraft.--
            (1) In general.--Subject to section 403, a business entity 
        shall not be subject to civil liability relating to any injury 
        or death occurring as a result of the operation of aircraft or 
        a motor vehicle of a business entity loaned to a nonprofit 
        organization for use outside of the scope of business of the 
        business entity if--
                    (A) such injury or death occurs during a period 
                that such motor vehicle or aircraft is used by a 
                nonprofit organization; and
                    (B) the business entity authorized the use by the 
                nonprofit organization of motor vehicle or aircraft 
                that resulted in the injury or death.
            (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 the aircraft or motor vehicle.
    (d) Liability of Business Entities Providing Tours of Facilities.--
            (1) In general.--Subject to section 403, a business entity 
        shall not be subject to civil liability relating to any injury 
        to, or death of an individual occurring at a facility of the 
        business entity if--
                    (A) such injury or death occurs during a tour of 
                the facility in an area of the facility that is not 
                otherwise accessible to the general public; and
                    (B) the business entity authorized the tour.
            (2) Application.--This subsection shall apply--
                    (A) with respect to civil liability under Federal 
                and State law; and
                    (B) regardless of whether an individual pays for 
                the tour.

SEC. 403. EXCEPTIONS.

    Section 402 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.

SEC. 404. SUPERSEDING PROVISION.

    (a) In General.--Subject to subsection (b) and section 405, this 
title preempts the laws of any State to the extent that such laws are 
inconsistent with this title, except that this title shall not preempt 
any State law that provides additional protection for a business entity 
for an injury or death described in a subsection of section 402 with 
respect to which the conditions specified in such subsection apply.
    (b) Limitation.--Nothing in this title shall be construed to 
supersede any Federal or State health or safety law.

SEC. 405. ELECTION OF STATE REGARDING NONAPPLICABILITY.

    (a) Election of State Regarding Nonapplicability.--A provision of 
this title 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 section;
            (2) declaring the election of such State that such 
        provision shall not apply to such civil action in the State; 
        and
            (3) containing no other provisions.

SEC. 406. EFFECTIVE DATE.

    This title shall apply to injuries (and deaths resulting therefrom) 
occurring after the date of the enactment of this Act.
                                 <all>