[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 651 Introduced in Senate (IS)]




                             April 25, 1997


105th CONGRESS
  1st Session
                                 S. 651

    To amend the Internal Revenue Code of 1986 to provide that the 
   conducting of certain games of change shall not be treated as an 
                      unrelated trade or business


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                   IN THE SENATE OF THE UNITED STATES

                             April 25, 1997

  Mr. Grams (for himself and Mr. Wellstone) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide that the 
   conducting of certain games of change shall not be treated as an 
                      unrelated trade or business

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

SECTION 1. CONDUCT OF CERTAIN GAMES OF CHANCE NOT TREATED AS UNRELATED 
              TRADE OR BUSINESS.

    (a) In General.--Paragraph (1) of section 513(f) of the Internal 
Revenue Code of 1986 (relating to certain bingo games) is amended by 
inserting before the period ``or qualified games of chance''.
    (b) Qualified Games of Chance.--Subsection (f) of section 513 of 
such Code is amended by adding at the end the following new paragraph:
            ``(3) Qualified games of chance.--For purposes of paragraph 
        (1), the term `qualified game of chance' means any game of 
        chance (other than bingo) conducted by an organization if--
                    ``(A) such organization is licensed pursuant to 
                State law to conduct such game,
                    ``(B) only organizations which are organized as 
                nonprofit corporations or are exempt from tax under 
                section 501(a) may be so licensed to conduct such game 
                within the State, and
                    ``(C) the conduct of such game does not violate 
                State or local law.''
    (c) Clerical Amendment.--The subsection heading of section 513(f) 
of such Code is amended by striking ``Bingo Games'' and inserting 
``Games of Chance''.
    (d) Effective Date.--The amendments made by this section shall 
apply to games conducted after the date of enactment of this Act.
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