[105th Congress Public Law 26]
[From the U.S. Government Printing Office]


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[DOCID: f:publ26.105]


[[Page 111 STAT. 241]]

Public Law 105-26
105th Congress

                                 An Act


 
To immunize donations made in the form of charitable gift annuities and 
   charitable remainder trusts from the antitrust laws and State laws 
  similar to the antitrust laws. <<NOTE: July 3, 1997 -  [H.R. 1902]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America <<NOTE: Charitable Donation Antitrust Immunity 
Act of 1997.>>  in Congress assembled,

SECTION 1. SHORT <<NOTE: 15 USC 1 note.>>  TITLE.

    This Act may be cited as the ``Charitable Donation Antitrust 
Immunity Act of 1997''.

SEC. 2. IMMUNITY FROM ANTITRUST LAWS.

    The Charitable Gift Annuity Antitrust Relief Act of 1995 (15 U.S.C. 
37 et seq.) is amended--
            (1) by amending <<NOTE: 15 USC 37.>>  section 2 to read as 
        follows:

``SEC. 2. IMMUNITY FROM ANTITRUST LAWS.

    ``(a) Inapplicability of Antitrust Laws.--Except as provided in 
subsection (d), the antitrust laws, and any State law similar to any of 
the antitrust laws, shall not apply to charitable gift annuities or 
charitable remainder trusts.
    ``(b) Immunity.--Except as provided in subsection (d), any person 
subjected to any legal proceeding for damages, injunction, 
penalties, or other relief of any kind under the antitrust laws, or any 
State law similar to any of the antitrust laws, on account of setting or 
agreeing to rates of return or other terms for, negotiating, issuing, 
participating in, implementing, or otherwise being involved in the 
planning, issuance, or payment of charitable gift annuities or 
charitable remainder trusts shall have immunity from suit under the 
antitrust laws, including the right not to bear the cost, burden, and 
risk of discovery and trial, for the conduct set forth in this 
subsection.
    ``(c) Treatment of Certain Annuities and Trusts.--Any annuity 
treated as a charitable gift annuity, or any trust treated as a 
charitable remainder trust, either--
            ``(1) in any filing by the donor with the Internal Revenue 
        Service; or
            ``(2) in any schedule, form, or written document provided by 
        or on behalf of the donee to the donor;

shall be conclusively presumed for the purposes of this Act to be 
respectively a charitable gift annuity or a charitable remainder trust, 
unless there has been a final determination by the Internal Revenue 
Service that, for fraud or otherwise, the donor's 
annuity or trust did not qualify respectively as a charitable 
gift annuity or charitable remainder trust when created.

[[Page 111 STAT. 242]]

    ``(d) Limitation.--Subsections (a) and (b) shall not apply with 
respect to the enforcement of a State law similar to any of the 
antitrust laws, with respect to charitable gift annuities, or 
charitable remainder trusts, created after the State enacts a statute, 
not later than December 8, 1998, that expressly provides that 
subsections (a) and (b) shall not apply with respect to such charitable 
gift annuities and such charitable remainder trusts.''; and
            (2) in <<NOTE: 15 USC 37a.>>  section 3--
                    (A) by striking paragraph (1);
                    (B) by redesignating paragraph (2) as paragraph (1);
                    (C) by inserting after paragraph (1), as so 
                redesignated, the following:
            ``(2) Charitable remainder trust.--The term `charitable 
        remainder trust' has the meaning given it in section 664(d) of 
        the Internal Revenue Code of 1986 (26 U.S.C. 664(d)).'';
                    (D) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively; and
                    (E) by inserting after paragraph (3) the following:
            ``(4) Final determination.--The term `final determination' 
        includes an Internal Revenue Service determination, after 
        exhaustion of donor's and donee's administrative remedies, 
        disallowing the donor's charitable deduction for the year in 
        which the initial contribution was made because of the donee's 
        failure to comply at such time with the requirements of section 
        501(m)(5) or 664(d), respectively, of the Internal Revenue Code 
        of 1986 (26 U.S.C. 501(m)(5), 664(d)).''.

SEC. 3. APPLICATION <<NOTE: 15 USC 37 note.>>  OF ACT.

    This Act, and the amendments made by this Act, shall apply with 
respect to all conduct occurring before, on, or after the date of the 
enactment of this Act and shall apply in all administrative and judicial 
actions pending on or commenced after the date of the enactment of this 
Act.

SEC. 4. STUDY <<NOTE: 15 USC 37 note.>>  AND REPORT.

    (a) Study and Report.--The Attorney General shall carry out a study 
to determine the effect of this Act on markets for noncharitable 
annuities, charitable gift annuities, and charitable remainder trusts. 
The Attorney General shall prepare a report summarizing the results of 
the study.
    (b) Details of Study and Report.--The report referred to in 
subsection (a) shall include any information on possible inappropriate 
activity resulting from this Act and any recommendations for legislative 
changes, including recommendations for additional enforcement resources.

[[Page 111 STAT. 243]]

    (c) Submission of Report.--The Attorney General shall submit the 
report referred to in subsection (a) to the Chairman and the ranking 
member of the Committee on the Judiciary of the House of 
Representatives, and to the Chairman and the ranking member of the 
Committee on the Judiciary of the Senate, not later than 27 months after 
the date of the enactment of this Act.

    Approved July 3, 1997.

LEGISLATIVE HISTORY--H.R. 1902:
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HOUSE REPORTS: No. 105-146 (Comm. on the Judiciary).
CONGRESSIONAL RECORD, Vol. 143 (1997):
            June 23, considered and passed House.
            June 24, considered and passed Senate.

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