[105th Congress Public Law 183]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ183.105]
[[Page 112 STAT. 517]]
Public Law 105-183
105th Congress
An Act
To amend title 11, United States Code, to protect certain charitable
contributions, and for other purposes. <<NOTE: June 19, 1998 - [S.
1244]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Religious
Liberty and Charitable Donation Protection Act of 1998.>>
SECTION 1. SHORT <<NOTE: 11 USC 101 note.>> TITLE.
This Act may be cited as the ``Religious Liberty and Charitable
Donation Protection Act of 1998''.
SEC. 2. DEFINITIONS.
Section 548(d) of title 11, United States Code, is amended by adding
at the end the following:
``(3) In this section, the term `charitable contribution' means a
charitable contribution, as that term is defined in section 170(c) of
the Internal Revenue Code of 1986, if that contribution--
``(A) is made by a natural person; and
``(B) consists of--
``(i) a financial instrument (as that term is
defined in section 731(c)(2)(C) of the Internal Revenue
Code of 1986); or
``(ii) cash.
``(4) In this section, the term `qualified religious or charitable
entity or organization' means--
``(A) an entity described in section 170(c)(1) of the
Internal Revenue Code of 1986; or
``(B) an entity or organization described in section
170(c)(2) of the Internal Revenue Code of 1986.''.
SEC. 3. TREATMENT OF PRE-PETITION QUALIFIED CHARITABLE
CONTRIBUTIONS.
(a) In General.--Section 548(a) of title 11, United States Code, is
amended--
(1) by inserting ``(1)'' after ``(a)'';
(2) by striking ``(1) made'' and inserting ``(A) made'';
(3) by striking ``(2)(A)'' and inserting ``(B)(i)'';
(4) by striking ``(B)(i)'' and inserting ``(ii)(I)'';
(5) by striking ``(ii) was'' and inserting ``(II) was'';
(6) by striking ``(iii)'' and inserting ``(III)''; and
(7) by adding at the end the following:
``(2) A transfer of a charitable contribution to a qualified
religious or charitable entity or organization shall not be considered
to be a transfer covered under paragraph (1)(B) in any case in which--
[[Page 112 STAT. 518]]
``(A) the amount of that contribution does not exceed 15
percent of the gross annual income of the debtor for the year in
which the transfer of the contribution is made; or
``(B) the contribution made by a debtor exceeded the
percentage amount of gross annual income specified in
subparagraph (A), if the transfer was consistent with the
practices of the debtor in making charitable contributions.''.
(b) Trustee as Lien Creditor and as Successor to Certain Creditors
and Purchasers.--Section 544(b) of title 11, United States Code, is
amended--
(1) by striking ``(b) The trustee'' and inserting ``(b)(1)
Except as provided in paragraph (2), the trustee''; and
(2) by adding at the end the following:
``(2) Paragraph (1) shall not apply to a transfer of a charitable
contribution (as that term is defined in section 548(d)(3)) that is not
covered under section 548(a)(1)(B), by reason of section 548(a)(2). Any
claim by any person to recover a transferred contribution described in
the preceding sentence under Federal or State law in a Federal or State
court shall be preempted by the commencement of the case.''.
(c) Conforming Amendments.--Section 546 of title 11, United States
Code, is amended--
(1) in subsection (e)--
(A) by striking ``548(a)(2)'' and inserting
``548(a)(1)(B)''; and
(B) by striking ``548(a)(1)'' and inserting
``548(a)(1)(A)'';
(2) in subsection (f)--
(A) by striking ``548(a)(2)'' and inserting
``548(a)(1)(B)''; and
(B) by striking ``548(a)(1)'' and inserting
``548(a)(1)(A)''; and
(3) in subsection (g)--
(A) by striking ``section 548(a)(1)'' each place it
appears and inserting ``section 548(a)(1)(A)''; and
(B) by striking ``548(a)(2)'' and inserting
``548(a)(1)(B)''.
SEC. 4. TREATMENT OF POST-PETITION CHARITABLE CONTRIBUTIONS.
(a) Confirmation of Plan.--Section 1325(b)(2)(A) of title 11, United
States Code, is amended by inserting before the semicolon the following:
``, including charitable contributions (that meet the definition of
`charitable contribution' under section 548(d)(3)) to a qualified
religious or charitable entity or organization (as that term is defined
in section 548(d)(4)) in an amount not to exceed 15 percent of the gross
income of the debtor for the year in which the contributions are made''.
(b) Dismissal.--Section 707(b) of title 11, United States Code, is
amended by adding at the end the following: ``In making a determination
whether to dismiss a case under this section, the court may not take
into consideration whether a debtor has made, or continues to make,
charitable contributions (that meet the definition of `charitable
contribution' under section 548(d)(3)) to any qualified religious or
charitable entity or organization (as that term is defined in section
548(d)(4)).''.
SEC. 5. <<NOTE: 11 USC 544 note.>> APPLICABILITY.
This Act and the amendments made by this Act shall apply to any case
brought under an applicable provision of title 11,
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United States Code, that is pending or commenced on or after the date of
enactment of this Act.
SEC. 6. RULE OF <<NOTE: 11 USC 544 note.>> CONSTRUCTION.
Nothing in the amendments made by this Act is intended to limit the
applicability of the Religious Freedom Restoration Act of 1993 (42
U.S.C. 2002bb et seq.).
Approved June 19, 1998.
LEGISLATIVE HISTORY--S. 1244 (H.R. 2604):
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HOUSE REPORTS: No. 105-556 accompanying H.R. 2604 (Comm. on the
Judiciary).
CONGRESSIONAL RECORD, Vol. 144 (1998):
May 13, considered and passed Senate.
June 3, considered and passed House.
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