[Congressional Record (Bound Edition), Volume 153 (2007), Part 23]
[Senate]
[Pages 32057-32059]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1545
                HOKIE SPIRIT MEMORIAL FUND TAX EXEMPTION

  Mr. McDERMOTT. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4118) to exclude from gross income payments from the Hokie 
Spirit Memorial Fund to the victims of the tragic event, loss of life 
and limb, at Virginia Polytechnic Institute & State University, as 
amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 4118

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

     SECTION 1. EXCLUSION FROM INCOME FOR PAYMENTS FROM THE HOKIE 
                   SPIRIT MEMORIAL FUND.

       For purposes of the Internal Revenue Code of 1986, gross 
     income shall not include any amount received from the 
     Virginia Polytechnic Institute & State University, out of 
     amounts transferred from the Hokie Spirit Memorial Fund 
     established by the Virginia Tech Foundation, an organization 
     organized and operated as described in section 501(c)(3) of 
     the Internal Revenue Code of 1986, if such amount is paid on 
     account of the tragic event on April 16, 2007, at such 
     university.

     SEC. 2. MODIFICATION OF PENALTY FOR FAILURE TO FILE 
                   PARTNERSHIP RETURNS.

       For any return of a partnership required to be filed under 
     section 6031 of the Internal Revenue Code of 1986 for a 
     taxable year beginning in 2008, the dollar amount in effect 
     under section 6698(b)(1) of such Code shall be increased by 
     $1.

  The SPEAKER pro tempore (Mr. Holden). Pursuant to the rule, the 
gentleman from Washington (Mr. McDermott) and the gentleman from 
Virginia (Mr. Goodlatte) each will control 20 minutes.
  The Chair recognizes the gentleman from Washington.
  Mr. McDERMOTT. Mr. Speaker, I yield myself such time as I may 
consume.
  Today, we stand united in this House as Americans without regard to 
political party so that we may honor the memory of the 32 people who 
lost their lives last year in the tragedy at Virginia Tech. The Nation 
mourned the loss of these innocent young people, and people across 
America responded generously in every way they could, including sending 
financial donations.
  In a time of need, you can always count on the American people to 
open their hearts and their wallets and to show the world what it means 
to practice the common good. The Hokie Spirit Memorial Fund was 
established, and the American people collected and sent over $7 million 
to aid the families, establish scholarships, and help the Virginia Tech 
community through this tragedy.
  Today, our role in the people's House is a legislative one. We can 
make a difference by passing H.R. 4118, which will ensure that all the 
money received from the Hokie Spirit Memorial Fund is not subjected to 
Federal income taxes. I urge my colleagues to join me in voting for 
this bill and, in so doing, rededicate themselves to strengthening our 
collective will to create a more just and civil Nation.
  I reserve the balance of my time.
  Mr. GOODLATTE. Mr. Speaker, I yield myself such time as I may 
consume.
  Earlier this year, the tranquil campus of Virginia Tech and the town 
of Blacksburg was shattered by the actions of a lone gunman. The horror 
that the Virginia Tech community has experienced is something that 
every parent, every American, hopes never to learn has affected their 
families and friends.
  Although this horrendous and unspeakable violence showed the worst of 
mankind, it also showed what those of us who have been a part of 
Virginia Tech community for years have always known; the students, the 
instructors, the administrators, and the citizens of Blacksburg care 
deeply for one another and take great pride in their community.
  Even in the worst circumstances, the Virginia Tech community showed 
great compassion for their fellow man and did what they could to help 
each other. Liviu Librescu, a survivor of the Holocaust, blocked the 
doorway of his classroom so that his students could climb out of the 
windows to safety. Ryan Clark, a resident advisor in the West Ambler 
Johnston Hall, rushed into the hallway to help his fellow students when 
the first attack came, and became the second victim. And I was deeply 
saddened to learn that one of my constituents, Henry Lee, a graduate of 
William Fleming High School in Roanoke, was one of those who died in 
the attack on Norris Hall.
  In the days and months following this tragedy, the Virginia Tech 
community and Hokie Nation saw an outpouring of love and support from 
people around the country. The university saw donations come in excess 
of $7 million, as people sought to give aid to those affected. As time 
went on, the university had to decide how to use the money donated as a 
result of this horrific act, and the university made a wise and 
selfless choice. They decided that the best way to disburse this money 
was to put it in the hands of those who experienced and lost the most 
as a result of this unspeakable violence. So, recently Virginia Tech 
distributed the money to 79 families or individuals. These are the 
families that have lost the most and have experienced emotional trauma 
that no one should ever have to experience. This money, given by the 
people across our Nation, is a small way to help those directly 
affected by this horrendous act. These families can determine the best 
uses for these contributions. Some already have decided to endow 
memorial scholarships at Virginia Tech or elsewhere. Some simply have 
bills to pay.
  While the university has acted graciously to help the families, we 
have discovered that there is a new problem the families are facing, 
this time by the Federal Government. It has become apparent that the 
funds these families received will become significantly reduced because 
of taxes. These are funds some families desperately need to pay medical 
bills, funeral costs, and to simply rebuild their lives. The last thing 
these families need to worry about is an additional tax burden. And I 
guarantee that those who gave so generously want their money going to 
help those directly affected, not paying taxes. I do not believe that 
these funds

[[Page 32058]]

should be taxed or that it is Congress' intent that they should be 
taxed.
  In 2001, Congress passed Public Law 107-143. In this law, there is a 
provision that makes qualified disaster payments exempt from taxes. 
There is no doubt that the Virginia Tech tragedy was, in fact, a 
disaster. Ask any member of the Virginia Tech community, Hokie Nation, 
or citizen of the Commonwealth of Virginia, and to them it 
unequivocally was. In fact, the Governor of Virginia declared so that 
day.
  Despite this well-intentioned law that Congress passed to make tax-
exempt payments from qualified disasters, the families and the 
university have all been told it is likely these funds will be taxed. 
It was not the intention of the Congress that disaster payments should 
be taxed; and so, I am proud to join with my neighbor from the Ninth 
Congressional District, Congressman Rick Boucher, who actually 
represents Blacksburg and Virginia Tech, in introducing this 
legislation that seeks to have these funds, like those resulting from 
any other disaster, made tax exempt. I ask Members of this House to 
join us in passing this bill and help the Virginia Tech families 
rebuild their lives.
  The tragedy at Virginia Tech will never leave our minds, but we in 
Congress have an opportunity to help rebuild this community. I ask all 
Members of Congress to join us in supporting this legislation. Let us 
help the families and those so personally affected as they seek to 
rebuild their lives.
  I reserve the balance of my time.


                             General Leave

  Mr. McDERMOTT. Mr. Speaker, I ask unanimous consent that Members may 
have 5 legislative days to revise and extend their remarks on the bill, 
H.R. 4118.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Washington?
  There was no objection.
  Mr. McDERMOTT. Mr. Speaker, I yield 2 minutes to the gentleman from 
Virginia, Congressman Boucher.
  Mr. BOUCHER. I thank the gentleman from Washington for yielding.
  Before speaking on this measure, I wish to engage the gentleman from 
Washington State in colloquy.
  The bill provides that certain payments transferred from the Hokie 
Spirit Memorial Fund be excluded from the gross income of the 
recipients of those payments. It is my understanding that, in providing 
for the exclusion, it is intended that both the transfer of the amounts 
by the Hokie Spirit Memorial Fund and the making of the payments by 
Virginia Polytechnic Institute and State University are considered to 
be consistent with the exempt purpose of these respective entities, and 
that donors who made contributions to the fund are, in principle, 
allowed a charitable contribution deduction.
  I would ask the gentleman if this is also his understanding of the 
intent of the bill.
  Mr. McDERMOTT. Yes, it is.
  Mr. Speaker, I yield the balance of my time to the gentleman from 
Virginia (Mr. Boucher) to hold and manage the bill.
  The SPEAKER pro tempore. Without objection, the gentleman from 
Virginia will control the balance of the time.
  There was no objection.
  Mr. BOUCHER. I thank the gentleman from Washington for yielding, and 
I yield myself such time as I may consume.
  As my friend and colleague and neighbor from Virginia, Congressman 
Goodlatte, mentioned in his remarks, I have the privilege of 
representing Virginia's Ninth Congressional District in which Virginia 
Tech is situated.
  On April 16 of this year, a tragedy of a scale and senselessness that 
defies explanation befell that university, and it came to a campus that 
is known across our Nation for its friendliness, peacefulness, and for 
the normally close association that is found there among faculty and 
students.
  In the wake of the tragedy, Virginia Tech President Charles Steger 
and the professional staff of the university reacted with poise, with 
dignity, and with strength under the most difficult and challenging 
circumstances imaginable.
  The skilled first responders of the town of Blacksburg, of the 
university's own security staff, and of Montgomery County, Virginia 
provided an outstanding service that saved lives and that prevented the 
loss from being even greater.
  In the intervening time, much healing has occurred. Virginia Tech has 
a proud tradition of teaching, learning, and research. That tradition 
endures. Following the violent and senseless act, campuswide and 
communitywide determination and cohesion emerged. The resilience of 
southwest Virginians and the spirit of the region in which we live that 
has helped to make Virginia Tech a great institution is assuring for 
the university a strong recovery and an even stronger future.
  In the days following the tragedy, the university established a fund 
for the benefit of the tragedy's victims. It is called the Hokie Spirit 
Memorial Fund. In an outpouring of sympathy and generous support from 
Virginia Tech alumni and friends across our Nation, more than 21,000 
financial contributions totaling $8.5 million were made to the fund. 
Last month, Virginia Tech distributed these funds to the victims of the 
shooting in varying amounts based on the severity of the injuries that 
were sustained. Approximately $7 million in direct cash payments were 
made. An additional $1.5 million in the form of scholarships and 
tuition assistance were disbursed.
  Just as Congress acted in the wake of the Oklahoma and 9/11 tragedies 
to declare donations to the victims of those tragedies to be tax exempt 
to the recipients, the bill before the House this afternoon would 
declare that payments from the Hokie Spirit Memorial Fund not be 
taxable income to the victims and their families who received these 
payments. The colloquy in which I previously engaged with Mr. McDermott 
clarifies that it is our intent both that, in principle, contributions 
to the fund be eligible for a charitable deduction, and that payments 
from the fund not be taxed to the payments' recipients.
  I want to thank the gentleman from New York (Mr. Rangel), the 
chairman of the House Ways and Means Committee, and his able and very 
helpful staff, for the outstanding assistance they have provided to me 
and to my partner Mr. Goodlatte in the process of bringing this measure 
to the House floor today. I want to thank Subcommittee Chairman 
McDermott for his assistance and for his gracious allotment of time to 
me this afternoon. And, I thank my friend and colleague and neighbor in 
southwest Virginia Bob Goodlatte, the principle coauthor of this 
bipartisan measure. Mr. Goodlatte and I have consulted over the past 
several months in the shaping of this legislation, and I thank him for 
the partnership that we have on this measure and on many other 
initiatives to improve quality of life in the region that we both 
represent. It is truly a pleasure working with him.
  The bill before the House is also coauthored by our Virginia 
colleagues, Mr. Cantor, Mr. Scott, Mrs. Drake, Mr. Wolf, and Mr. Davis, 
and I want to thank them for their cosponsorship.
  Mr. Speaker, I urge the adoption of H.R. 4118.
  I reserve the balance of my time.
  Mr. GOODLATTE. Mr. Speaker, at this time it is my pleasure to yield 
such time as she may consume to the gentlewoman from Virginia, 
Congresswoman Drake.
  Mrs. DRAKE. Mr. Speaker, we all were deeply affected by the tragic 
events of this past April at Virginia Tech. Our hearts and prayers go 
out to the families and friends of those who lost loved ones and to 
those who are struggling to recover from their injuries. The days, 
weeks, and months since that dark day have been a time of healing for 
the Virginia Tech community, the Commonwealth of Virginia, and the 
Nation. I am moved by the outpouring of compassion and generosity that 
have been displayed since this tragedy.
  Virginia Tech University established the Hokie Spirit Memorial Fund 
in order to aid in the healing process and generate financial support 
for those affected. Thousands of individuals gave graciously in the 
hope of assisting the victims' families in their time of need.

[[Page 32059]]

In fact, Virginia Tech has distributed millions from the fund to the 
families of the 32 deceased victims and 47 injured students.
  The least that this Congress can do in assisting these families is to 
exempt payments made from the Hokie Spirit Memorial Fund from Federal 
taxes, and I would like to thank Congressman Boucher for his leadership 
in crafting this bill and bringing it to the floor.

                              {time}  1600

  Mr. GOODLATTE. Mr. Speaker, I want to thank the gentleman from the 
Ninth Congressional District of Virginia (Mr. Boucher), a good friend 
and colleague, for his leadership in introducing this legislation. It's 
been a pleasure to work with him.
  And it is, I think, fair to say on behalf of not only all members of 
the Virginia delegation, but all Members of Congress, our heart goes 
out to the families of the victims and to the Virginia Tech Community 
who suffered this horrendous tragedy. This is just a small way that we 
can make right a part of that by ensuring that the generosity of 
thousands of Americans across the country to the Virginia Tech Hokie 
Spirit Fund will see that money in its entirety go to the benefit 
intended by those who donated it and for the purposes designated by the 
family members of the victims of this tragedy. So again, I thank 
Congressman Boucher.
  I want to thank Congressman Cantor for his leadership on the Ways and 
Means Committee, as well as the effort that Congressman McCrery, our 
ranking member, and Chairman Rangel made in bringing this legislation 
to the floor as promptly as possible.
  And I want to also thank the staff of the Ways and Means Committee, 
and the staff of Congressman Boucher and myself for the hard work that 
they put in to making sure that this was done and done in a way that 
would benefit the families of the victims of this tragedy.
  Mr. Speaker, I yield back the balance of my time.
  Mr. BOUCHER. Mr. Speaker, I recognize myself for 1 minute to close.
  Mr. Speaker, I urge approval of this measure. It would simply make 
payments to the victims of the tragedy that occurred in April of this 
year at Virginia Tech tax exempt to the recipients of those payments. 
Congress responded in a similar way following the Oklahoma City and 9/
11 tragedies, and we ask that the House accord similar tax status to 
the payments that were recently made from the Hokie Spirit Memorial 
fund.
  I want to thank all who have assisted in the construction of this 
measure. Particular thanks to my colleague, Mr. Goodlatte, for his 
leadership and hard work in bringing this measure to the floor today. 
And thanks again to the Chair and the subcommittee Chair of the Ways 
and Means Committee and their very capable staff for the excellent 
assistance and cooperation they provided to us.
  Mr. CANTOR. Madam Speaker, when an act of random cruelty bewilders us 
and pulls us down, exceptional displays of generosity, courage and 
heroism can serve as a potent counterforce. They comfort and replenish 
the bereaved, and they remind us of the extraordinary selflessness our 
people are capable of. Nowhere has this been truer than in the 
aftermath of the Virginia Tech massacre.
  We saw numerous examples of students and faculty risking and giving 
their lives to spare others of the murderer's wrath. We saw a shaken 
Hokie Nation come together to begin a long healing process. But we also 
were moved by the outpouring of support from a deeply sympathetic 
Nation. Donors from across the country pumped over $7 million into the 
Hokie Spirit Memorial Fund, which makes direct contributions to the 
victims and their families, as well as to scholarships in the victims' 
names.
  Sadly, recipients have to pay taxes on their donations, an injustice 
that we hope this bill will promptly correct. There can be no denying 
that the kind folks who made contributions did not intend to enrich the 
Federal government's coffers.
  For many of the families and victims still suffering from the 
tragedy, this funding is urgent. As the grisly images and unprecedented 
horror of the Virginia Tech massacre recede further from the public's 
view, we mustn't turn our backs on Hokie Nation.
  Mr. GARRETT of New Jersey. Madam Speaker, I rise today in support of 
H.R. 4118, a bill that will exclude from gross income, payments 
received by the grieving families and victims of the tragic Virginia 
Tech massacre from the Hokie Spirit Memorial Fund.
  Madam Speaker, April 16, 2007 is a day that will forever be seared 
into the collective memory of the American people as a day of terror, 
tragedy, loss, and mourning. It was a day when we were reminded of the 
frailty of life; and a day when we were reminded how much we, as a 
Nation, value the sanctity and freedom of our schools, colleges, and 
universities. For on that day, we learned that because of the murderous 
intentions of one person, the lives of 32 students and faculty members 
at the Virginia Polytechnic Institute and State University had been 
snuffed out. One of the victims of this tragedy, Matthew La Porte, was 
a 20-year-old student from Dumont, New Jersey, and a constituent of 
mine.
  In the aftermath of this tragedy, and in response to the generosity 
of people across the country, Virginia Tech founded the Hokie Spirit 
Memorial Fund. Many donors contributed to this fund in memory of the 
victims of the massacre, and in support of those who survived it. 
Today, the fund has received contributions of over $7 million. And 
while no amount of money can ever replace the loss of a loved one, this 
legislation will ensure that all of the victims, families of victims, 
and survivors of this tragedy receive payments from this fund without 
interference from the Internal Revenue Service.
  Madam Speaker, it is during times of great tragedy that the kindness 
and generosity of the American people is most apparent. It is in that 
spirit of generosity, and in the memory of all the victims of the 
Virginia Tech massacre, that I ask my colleagues to support H.R. 4118.
  Mr. BOUCHER. Madam Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Ms. Jackson-Lee of Texas). The question is 
on the motion offered by the gentleman from Washington (Mr. McDermott) 
that the House suspend the rules and pass the bill, H.R. 4118, as 
amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  The title was amended so as to read: ``A bill to exclude from gross 
income payments from the Hokie Spirit Memorial Fund to the victims of 
the tragic event at Virginia Polytechnic Institute & State 
University.''.
  A motion to reconsider was laid on the table.

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