[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3197 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3197

To amend the Internal Revenue Code of 1986 to prevent the abuse of the 
       enhanced charitable deduction for contributions of drugs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 2, 1999

Mr. Doggett (for himself, Mr. Stark, Mr. Matsui, Mr. Coyne, Mr. Levin, 
 Mr. McDermott, Mr. Neal of Massachusetts, Mr. Becerra, Mrs. Thurman, 
 Mr. Waxman, Mr. Brown of Ohio, Mr. Allen, Mr. Frank of Massachusetts, 
  Mr. Ackerman, Mr. Barrett of Wisconsin, Mr. Bentsen, Mr. Berry, Mr. 
    Bishop, Mrs. Capps, Mr. Capuano, Mr. Cummings, Ms. DeGette, Mr. 
 Edwards, Mr. Evans, Mr. Filner, Mr. Ford, Mr. Gonzalez, Mr. Green of 
Texas, Mr. Hinchey, Ms. Hooley of Oregon, Ms. Jackson-Lee of Texas, Ms. 
   Kilpatrick, Mr. Kind, Mr. Kucinich, Mr. Lampson, Mr. Lantos, Mr. 
Markey, Mr. McGovern, Ms. McKinney, Mrs. Meek of Florida, Mr. Menendez, 
Mr. George Miller of California, Mr. Olver, Ms. Pelosi, Ms. Rivers, Mr. 
 Rodriguez, Mr. Sanders, Mr. Sandlin, Ms. Schakowsky, Mr. Serrano, Ms. 
Slaughter, Mr. Strickland, Mr. Tierney, Mrs. Jones of Ohio, Mr. Vento, 
 and Ms. Woolsey) 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 prevent the abuse of the 
       enhanced charitable deduction for contributions of drugs.

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

SECTION 1. MODIFICATION OF ENHANCED DEDUCTION FOR CHARITABLE 
              CONTRIBUTIONS OF DRUGS.

    (a) In General.--Paragraph (3) of section 170(e) of the Internal 
Revenue Code of 1986 (relating to special rule for certain 
contributions of inventory and other property) is amended by 
redesignating subparagraph (C) as subparagraph (D) and by inserting 
after subparagraph (B) the following new subparagraph:
                    ``(C) Special rules relating to contributions of 
                drugs.--
                            ``(i) In general.--In any case in which the 
                        property referred to in subparagraph (A) is a 
                        drug to be administered outside the United 
                        States, subparagraph (A) shall apply only if--
                                    ``(I) the period during which such 
                                drug is considered to be safe and 
                                effective under the regulations 
                                referred to in subparagraph (A)(iv) 
                                does not expire before the date which 
                                is 1 year after the date of such 
                                transfer,
                                    ``(II) the representations in the 
                                statement referred to in subparagraph 
                                (A)(iii) include a representation by 
                                the donee that the donee has received a 
                                request (from the person or government 
                                outside the United States which will 
                                administer such drug) for drugs which 
                                treat conditions for which such drug is 
                                a suitable treatment, and
                                    ``(III) the drug is labeled (in a 
                                manner easily understood by health 
                                professionals in the country where it 
                                is to be administered) as to the drug's 
                                intended uses, dosages, and other 
                                matters affecting its safety and 
                                effectiveness.
                            ``(ii) Special rules for drugs with short 
                        lives.--
                                    ``(I) \1/3\ of life must remain 
                                after transfer.--In the case of a drug 
                                which is considered to be safe and 
                                effective under such regulations for 
                                less than 2 years, clause (i)(I) shall 
                                be applied by substituting \1/3\ of the 
                                period that such drug is so considered 
                                to be safe and effective for the 1-year 
                                period referred to in such clause.
                                    ``(II) Waiver for facility-specific 
                                donations.--Clause (i)(I) shall not 
                                apply to drugs to be administered at a 
                                facility if the representations 
                                referred to in subparagraph (A)(iii) 
                                include the representation that a 
                                responsible official for such facility 
                                has acknowledged that such official is 
                                aware that the requirement of clause 
                                (i)(I) is not met and has determined 
                                the quantity and remaining useful life 
                                of the drugs are adequate for proper 
                                administration of the drugs.
                            ``(iii) Drug includes biological.--For 
                        purposes of this subparagraph, the term `drug' 
                        includes a biological.''
    (b) Effective Date.--The amendment made by this section shall apply 
to charitable contributions made after the date of the enactment of 
this Act.
                                 <all>