[Congressional Record Volume 148, Number 131 (Tuesday, October 8, 2002)]
[Senate]
[Pages S10119-S10120]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SESSIONS (for himself, Mr. Leahy, Mr. Nickles, Mr. Hatch, 
        Mr. Shelby, Ms. Snowe, Mr. Bunning, Mr. Enzi, and Mr. 
        McConnell):
  S. 3073. A bill to encourage the establishment of Johnny Michael 
Spann Patriot Trusts; to the Committee on Armed Services.
  Mr. SESSIONS. Mr. President, I rise today to introduce the Johnny 
Michael Spann Patriot Trusts Act. Members of the United States 
military, CIA personnel, FBI personnel, and other Federal employees 
defend the freedom and security of our Nation each day, often at high 
risk to their own safety, and sometimes at the cost of their own lives. 
This bill will help facilitate the flow of private charitable money to 
the widows and orphans of our American servicemen, CIA officers, FBI 
agents, and other Federal employees who give their lives in the War on 
Terrorism.
  In the days following the terrorist attacks of September 11, we 
passed the Victims Compensation Fund of 2001 to provide compensation to 
the victims of those attacks. The September 11 Fund only covers those 
who were injured or killed on September 11 as a result of the September 
11 attacks. It is estimated that the September 11 Fund will provide the 
families of the September 11 victims with an average of $1.85 million 
each.
  The September 11 Fund, however, does not cover military or government 
personnel who have been killed while fighting against terrorists in the 
new War on Terrorism after September 11, 2001. For example, it does not 
cover Alabama native Johnny Michael Spann and his family. CIA officer 
Johnny Michael Spann was the first American to give his life for his 
country in the War on Terrorism launched by President George W. Bush 
following the September 11 terrorist attacks. Because individuals like 
Mr. Spann are not included in the fund, their beneficiaries will 
receive far less than the $1.85 million that the beneficiaries of the 
September 11 fund will receive. Instead, family members of our 
soldiers, sailors, airmen, and marines killed in action while fighting 
terrorists will receive only relatively minor benefits currently $6,000 
plus a small monthly payment. If the military man or women had 
purchased life insurance, the most the family can hope to receive is 
$250,000. CIA and FBI benefits are somewhat better, but still do not 
approach the $1.85 million mark. Now is the time to remedy this 
inequity and to meet the responsibility of taking care of the families 
of the military and government personnel who give their lives defending 
us from terrorism.
  So today, I offer this bill to narrow the gap in the current 
compensation system. This bill will facilitate and encourage private 
charitable giving for the benefit of spouses and dependents of 
military, CIA, FBI, and other Federal employees killed in the line of 
duty while combating terrorism. The bill will use no government monies 
and will not affect the September 11 Fund. Instead, the bill will allow 
private monies to fill in the gap.
  If a Section 501(c)(3) charity meets the requirements of the bill, it 
can designate itself as a ``Johnny Michael Spann Patriot Trust.'' The 
requirements are: 1. Beneficiaries--The trust must benefit government 
employees or contractors whose death occur in the line of duty and 
arise out of terrorist attacks, military operations, intelligence 
operations, law enforcement operations, or accidents connected with 
activities occurring after September 11, 2001, and related to domestic 
or foreign efforts to curb international terrorism, including the 
Authorization for Use of Military Force that we passed last year.
  2. Tax Rules--The trust must qualify under existing tax rules for 
charitable trusts or private foundations. Thus, contributions to the 
fund will be tax deductible.
  3. Distrubutions--The trust must distribute at least eighty-five 
percent of funds collected to beneficiaries. Thus, administrative 
expenses can be no more than fifteen percent, after the initial 
organizing expenses are made.
  4. Audit--If contributions to the trust exceed $1 million, it must be 
audited by an independent certified public accountant.
  5. McCain-Feingold--The trust must comply with the existing exemption 
in the McCain-Feingold campaign finance law for charities.
  Once a trust meets the requirements, it will be entitled to two key 
benefits. First, the Secretary of Defense will be authorized to contact 
the Patriot Trusts on behalf of surviving spouses, thus eliminating the 
indignity widows often face when they are forced to go to a charity and 
ask for money.
  Second, the bill will ensure that federally elected officials can 
raise money for Patriot Trusts without any problem under the McCain-
Feingold campaign finance law. This encouragement of Senators and 
Congressmen to raise money for the families of slain military, CIA, or 
FBI personnel should help build real resources to help families with 
real needs.
  Overall, this bill will help private charities provide a level 
playing field for those who give their lives for our freedom and 
security. It will address the current inequity between those who died 
in their office and those who died on the battle field defending 
America, and it will seek a fair and patriotic way for charities to 
recognize those who died defending their country against terrorism.
  Who among us can look into the eyes of the widow of a soldier who 
lost his life fighting for his country and say, ``Sorry, you only get 
$6,000, but the widow of the securities broker in New York gets almost 
$2 Million.'' This bill takes a modest step toward ensuring fair and 
equitable treatment to all of those making the ultimate sacrifice, 
giving their lives to protect the United States and her citizens 
against terrorists around the world.
  It is our moral duty and obligation to assist these service members 
and federal employees who are giving their lives in service to our 
country. Helping charities fill the gap is the least that we can do. I 
would urge all of my colleagues to support this bill as a way to show 
our Armed Forces and other employees that they are deserving of fair 
and equitable treatment.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 3073

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

     SECTION 1. TREATMENT OF CHARITABLE TRUSTS FOR MEMBERS OF THE 
                   ARMED FORCES OF THE UNITED STATES AND OTHER 
                   GOVERNMENTAL ORGANIZATIONS.

       (a) Findings.--Congress finds the following:
       (1) Members of the Armed Forces of the United States defend 
     the freedom and security of our Nation.
       (2) Members of the Armed Forces of the United States have 
     lost their lives while battling the evils of terrorism around 
     the world.
       (3) Personnel of the Central Intelligence Agency (CIA) 
     charged with the responsibility of covert observation of 
     terrorists around the world are often put in harm's way 
     during their service to the United States.
       (4) Personnel of the Central Intelligence Agency have also 
     lost their lives while battling the evils of terrorism around 
     the world.
       (5) Employees of the Federal Bureau of Investigation (FBI) 
     and other Federal agencies charged with domestic protection 
     of the United States put their lives at risk on a daily basis 
     for the freedom and security of our Nation.
       (6) United States military personnel, CIA personnel, FBI 
     personnel, and other Federal agents in the service of the 
     United States are patriots of the highest order.
       (7) CIA officer Johnny Micheal Spann became the first 
     American to give his life for his country in the War on 
     Terrorism launched by President George W. Bush following the 
     terrorist attacks of September 11, 2001.
       (8) Johnny Micheal Spann left behind a wife and children 
     who are very proud of the heroic actions of their patriot 
     father.
       (9) Surviving dependents of members of the Armed Forces of 
     the United States who lose their lives as a result of 
     terrorist attacks or

[[Page S10120]]

     military operations abroad receive a $6,000 death benefit, 
     plus a small monthly benefit.
       (10) The current system of compensating spouses and 
     children of American patriots is inequitable and needs 
     improvement.
       (b) Designation of Johnny Micheal Spann Patriot Trusts.--
     Any charitable corporation, fund, foundation, or trust (or 
     separate fund or account thereof) which otherwise meets all 
     applicable requirements under law with respect to charitable 
     entities and meets the requirements described in subsection 
     (c) shall be eligible to characterize itself as a ``Johnny 
     Micheal Spann Patriot Trust''.
       (c) Requirements for the Designation of Johnny Micheal 
     Spann Patriot Trusts.--The requirements described in this 
     subsection are as follows:
       (1) Not taking into account funds or donations reasonably 
     necessary to establish a trust, at least 85 percent of all 
     funds or donations (including any earnings on the investment 
     of such funds or donations) received or collected by any 
     Johnny Micheal Spann Patriot Trust must be distributed to 
     (or, if placed in a private foundation, held in trust for) 
     surviving spouses, children, or dependent parents, 
     grandparents, or siblings of 1 or more of the following:
       (A) members of the Armed Forces of the United States;
       (B) personnel, including contractors, of elements of the 
     intelligence community, as defined in section 3(4) of the 
     National Security Act of 1947;
       (C) employees of the Federal Bureau of Investigation; and
       (D) officers, employees, or contract employees of the 
     United States Government,
     whose deaths occur in the line of duty and arise out of 
     terrorist attacks, military operations, intelligence 
     operations, law enforcement operations, or accidents 
     connected with activities occurring after September 11, 2001, 
     and related to domestic or foreign efforts to curb 
     international terrorism, including the Authorization for Use 
     of Military Force (Public Law 107-40; 115 Stat. 224).
       (2) Other than funds or donations reasonably necessary to 
     establish a trust, not more than 15 percent of all funds or 
     donations (or 15 percent of annual earnings on funds invested 
     in a private foundation) may be used for administrative 
     purposes.
       (3) No part of the net earnings of any Johnny Micheal Spann 
     Patriot Trust may inure to the benefit of any individual 
     based solely on the position of such individual as a 
     shareholder, an officer or employee of such Trust.
       (4) None of the activities of any Johnny Micheal Spann 
     Patriot Trust shall be conducted in a manner inconsistent 
     with any law with respect to attempting to influence 
     legislation.
       (5) No Johnny Micheal Spann Patriot Trust may participate 
     in or intervene in any political campaign on behalf of (or in 
     opposition to) any candidate for public office, including by 
     publication or distribution of statements.
       (6) Each Johnny Micheal Spann Patriot Trust shall comply 
     with the instructions and directions of the Director of 
     Central Intelligence, the Attorney General, or the Secretary 
     of Defense relating to the protection of intelligence sources 
     and methods, sensitive law enforcement information, or other 
     sensitive national security information, including methods 
     for confidentially disbursing funds.
       (7) Each Johnny Micheal Spann Patriot Trust that receives 
     annual contributions totaling more than $1,000,000 must be 
     audited annually by an independent certified public 
     accounting firm. Such audits shall be filed with the Internal 
     Revenue Service, and shall be open to public inspection, 
     except that the conduct, filing, and availability of the 
     audit shall be consistent with the protection of intelligence 
     sources and methods, of sensitive law enforcement 
     information, and of other sensitive national security 
     information.
       (8) Each Johnny Micheal Spann Patriot Trust shall make 
     distributions to beneficiaries described in paragraph (1) at 
     least once every calendar year, beginning not later than 12 
     months after the formation of such Trust, and all funds and 
     donations received and earnings not placed in a private 
     foundation dedicated to such beneficiaries must be 
     distributed within 36 months after the end of the fiscal year 
     in which such funds, donations, and earnings are received.
       (9)(A) When determining the amount of a distribution to any 
     beneficiary described in paragraph (1), a Johnny Micheal 
     Spann Patriot Trust should take into account the amount of 
     any collateral source compensation that the beneficiary has 
     received or is entitled to receive as a result of the death 
     of an individual described in subsection (c)(1).
       (B) Collateral source compensation includes all 
     compensation from collateral sources, including life 
     insurance, pension funds, death benefit programs, and 
     payments by Federal, State, or local governments related to 
     the death of an individual described in subsection (c)(1).
       (d) Treatment of Johnny Micheal Spann Patriot Trusts.--Each 
     Johnny Micheal Spann Patriot Trust shall refrain from 
     conducting the activities described in clauses (i) and (ii) 
     of section 301(20)(A) of the Federal Election Campaign Act of 
     1971 so that a general solicitation of funds by an individual 
     described in paragraph (1) of section 323(e) of such Act will 
     be permissible if such solicitation meets the requirements of 
     paragraph (4)(A) of such section.
       (e) Notification of Trust Beneficiaries.--Notwithstanding 
     any other provision of law, and in a manner consistent with 
     the protection of intelligence sources and methods, sensitive 
     law enforcement information, and other sensitive national 
     security information, the Secretary of Defense, the Director 
     of the Federal Bureau of Investigation, or the Director of 
     Central Intelligence, or their designees, as applicable, may 
     forward information received from an executor, administrator, 
     or other legal representative of the estate of a decedent 
     described in subparagraph (A), (B), (C), or (D) of subsection 
     (c)(1), to a Johnny Micheal Spann Patriot Trust on how to 
     contact individuals eligible for a distribution under 
     subsection (c)(1) for the purpose of providing assistance 
     from such Trust; provided that, neither forwarding nor 
     failing to forward any information under this subsection 
     shall create any cause of action against any Federal 
     department, agency, officer, agent, or employee.
       (f) Regulations.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary of Defense, in 
     coordination with the Attorney General, the Director of the 
     Federal Bureau of Investigation, and the Director of Central 
     Intelligence, shall prescribe regulations to carry out this 
     section.

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