[Congressional Record Volume 162, Number 54 (Monday, April 11, 2016)]
[Senate]
[Page S1865]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3599. Mr. CRAPO (for himself and Mr. Bennet) submitted an 
amendment intended to be proposed to amendment SA 3464 submitted by Mr. 
Thune (for himself and Mr. Nelson) to the bill H.R. 636, to amend the 
Internal Revenue Code of 1986 to permanently extend increased expensing 
limitations, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. FACILITATE WATER LEASING AND WATER TRANSFERS TO 
                   PROMOTE CONSERVATION AND EFFICIENCY.

       (a) In General.--Paragraph (12) of section 501(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(I) Treatment of mutual ditch irrigation companies.--
       ``(i) In general.--In the case of a mutual ditch or 
     irrigation company or of a like organization to a mutual 
     ditch or irrigation company, subparagraph (A) shall be 
     applied without taking into account any income received or 
     accrued--

       ``(I) from the sale, lease, or exchange of fee or other 
     interests in real property, including interests in water,
       ``(II) from the sale or exchange of stock in a mutual ditch 
     or irrigation company (or in a like organization to a mutual 
     ditch or irrigation company) or contract rights for the 
     delivery or use of water, or
       ``(III) from the investment of proceeds from sales, leases, 
     or exchanges under subclauses (I) and (II),

     except that any income received under subclause (I), (II), or 
     (III) which is distributed or expended for expenses (other 
     than for operations, maintenance, and capital improvements) 
     of the mutual ditch or irrigation company or of the like 
     organization to a mutual ditch or irrigation company (as the 
     case may be) shall be treated as nonmember income in the year 
     in which it is distributed or expended. For purposes of the 
     preceding sentence, expenses (other than for operations, 
     maintenance, and capital improvements) include expenses for 
     the construction of conveyances designed to deliver water 
     outside of the system of the mutual ditch or irrigation 
     company or of the like organization.
       ``(ii) Treatment of organizational governance.--In the case 
     of a mutual ditch or irrigation company or of a like 
     organization to a mutual ditch or irrigation company, where 
     State law provides that such a company or organization may be 
     organized in a manner that permits voting on a basis which is 
     pro rata to share ownership on corporate governance matters, 
     subparagraph (A) shall be applied without taking into account 
     whether its member shareholders have one vote on corporate 
     governance matters per share held in the corporation. Nothing 
     in this clause shall be construed to create any inference 
     about the requirements of this subsection for companies or 
     organizations not included in this clause.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______