[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3073 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 3073

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 10, 2003

 Mr. Ramstad (for himself, Mr. Gutknecht, Mr. Kline, Ms. McCollum, Mr. 
  Sabo, Mr. Kennedy of Minnesota, Mr. Peterson of Minnesota, and Mr. 
  Oberstar) 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 provide that the 
   conducting of certain games of chance 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) (relating to 
certain bingo games) is amended to read as follows:
            ``(1) In General.--The term `unrelated trade or business' 
        does not include--
                    ``(A) any trade or business which consists of 
                conducting bingo games, and
                    ``(B) any trade or business which consists of 
                conducting qualified games of chance if the net 
                proceeds from such trade or business are paid or set 
                aside for payments for purposes described in section 
                170(c)(2)(B), for the promotion of social welfare 
                (within the meaning of section 501(c)(4)), or for a 
                purpose for which State law specifically authorizes the 
                expenditure of such proceeds.''.
    (b) Qualified Games of Chance.--Subsection (f) of section 513 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 
        change (other than bingo) conducted by the 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) 
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 December 31, 2003.
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