Bills / Cases / IRS

H.R.7
Community Solutions Act of 2001 (Engrossed in House )
HR 7 EH
107th CONGRESS
1st Session
H. R. 7
AN ACT
To provide incentives for charitable contributions by individuals and businesses, to improve the effectiveness and efficiency of government program delivery to individuals and families in need, and to enhance the ability of low-income Americans to gain financial security by building assets.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Community Solutions Act of 2001'.
(b) TABLE OF CONTENTS- The table of contents is as follows:
Sec. 1. Short title; table of contents.
TITLE I--CHARITABLE GIVING INCENTIVES PACKAGE
Sec. 101. Deduction for portion of charitable contributions to be allowed to individuals who do not itemize deductions.
Sec. 102. Tax-free distributions from individual retirement accounts for charitable purposes.
Sec. 103. Increase in cap on corporate charitable contributions.
Sec. 104. Charitable deduction for contributions of food inventory.
Sec. 105. Reform of excise tax on net investment income of private foundations.
Sec. 106. Excise tax on unrelated business taxable income of charitable remainder trusts.
Sec. 107. Expansion of charitable contribution allowed for scientific property used for research and for computer technology and equipment used for educational purposes.
Sec. 108. Adjustment to basis of S corporation stock for certain charitable contributions.
TITLE II--EXPANSION OF CHARITABLE CHOICE
Sec. 201. Provision of assistance under government programs by religious and community organizations.
TITLE III--INDIVIDUAL DEVELOPMENT ACCOUNTS
Sec. 301. Additional qualified entities eligible to conduct projects under the Assets for Independence Act.
Sec. 302. Increase in limitation on net worth.
Sec. 303. Change in limitation on deposits for an individual.
Sec. 304. Elimination of limitation on deposits for a household.
Sec. 305. Extension of program.
Sec. 306. Conforming amendments.
Sec. 307. Applicability.
TITLE IV--CHARITABLE DONATIONS LIABILITY REFORM FOR IN-KIND CORPORATE CONTRIBUTIONS
Sec. 401. Charitable donations liability reform for in-kind corporate contributions.
TITLE I--CHARITABLE GIVING INCENTIVES PACKAGE
SEC. 101. DEDUCTION FOR PORTION OF CHARITABLE CONTRIBUTIONS TO BE ALLOWED TO INDIVIDUALS WHO DO NOT ITEMIZE DEDUCTIONS.
(a) IN GENERAL- Section 170 of the Internal Revenue Code of 1986 (relating to charitable, etc., contributions and gifts) is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection:
`(m) DEDUCTION FOR INDIVIDUALS NOT ITEMIZING DEDUCTIONS-
`(1) IN GENERAL- In the case of an individual who does not itemize his deductions for the taxable year, there shall be taken into account as a direct charitable deduction under section 63 an amount equal to the lesser of--
`(A) the amount allowable under subsection (a) for the taxable year for cash contributions, or
`(B) the applicable amount.
`(2) APPLICABLE AMOUNT- For purposes of paragraph (1), the applicable amount shall be determined as follows:

'For taxable years beginning in	--The applicable: -amount is:
2002 and 2003	$25
2004, 2005, 2006	$50
2007, 2008, 2009	$75
2010 and thereafter	$100.

In the case of a joint return, the applicable amount is twice the applicable amount determined under the preceding table.'.
(b) DIRECT CHARITABLE DEDUCTION-
(1) IN GENERAL- Subsection (b) of section 63 of such Code is amended by striking `and' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting `, and', and by adding at the end thereof the following new paragraph:
`(3) the direct charitable deduction.'.
(2) DEFINITION- Section 63 of such Code is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:
`(g) DIRECT CHARITABLE DEDUCTION- For purposes of this section, the term `direct charitable deduction' means that portion of the amount allowable under section 170(a) which is taken as a direct charitable deduction for the taxable year under section 170(m).'.
(3) CONFORMING AMENDMENT- Subsection (d) of section 63 of such Code is amended by striking `and' at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting `, and', and by adding at the end thereof the following new paragraph:
`(3) the direct charitable deduction.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2001.
SEC. 102. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT ACCOUNTS FOR CHARITABLE PURPOSES.
(a) IN GENERAL- Subsection (d) of section 408 of the Internal Revenue Code of 1986 (relating to individual retirement accounts) is amended by adding at the end the following new paragraph:
`(8) DISTRIBUTIONS FOR CHARITABLE PURPOSES-
`(A) IN GENERAL- No amount shall be includible in gross income by reason of a qualified charitable distribution.
`(B) QUALIFIED CHARITABLE DISTRIBUTION- For purposes of this paragraph, the term `qualified charitable distribution' means any distribution from an individual retirement account--
`(i) which is made on or after the date that the individual for whose benefit the account is maintained has attained age 70 1/2 , and
`(ii) which is made directly by the trustee--
`(I) to an organization described in section 170(c), or
`(II) to a split-interest entity.
A distribution shall be treated as a qualified charitable distribution only to the extent that the distribution would be includible in gross income without regard to subparagraph (A) and, in the case of a distribution to a split-interest entity, only if no person holds an income interest in the amounts in the split-interest entity attributable to such distribution other than one or more of the following: the individual for whose benefit such account is maintained, the spouse of such individual, or any organization described in section 170(c).
`(C) CONTRIBUTIONS MUST BE OTHERWISE DEDUCTIBLE- For purposes of this paragraph--
`(i) DIRECT CONTRIBUTIONS- A distribution to an organization described in section 170(c) shall be treated as a qualified charitable distribution only if a deduction for the entire distribution would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph).
`(ii) SPLIT-INTEREST GIFTS- A distribution to a split-interest entity shall be treated as a qualified charitable distribution only if a deduction for the entire value of the interest in the distribution for the use of an organization described in section 170(c) would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph).
`(D) APPLICATION OF SECTION 72- Notwithstanding section 72, in determining the extent to which a distribution is a qualified charitable distribution, the entire amount of the distribution shall be treated as includible in gross income without regard to subparagraph (A) to the extent that such amount does not exceed the aggregate amount which would be so includible if all amounts were distributed from all individual retirement accounts otherwise taken into account in determining the inclusion on such distribution under section 72. Proper adjustments shall be made in applying section 72 to other distributions in such taxable year and subsequent taxable years.
`(E) SPECIAL RULES FOR SPLIT-INTEREST ENTITIES-
`(i) CHARITABLE REMAINDER TRUSTS- Distributions made from an individual retirement account to a trust described in subparagraph (G)(ii)(I) shall be treated as income described in section 664(b)(1) except to the extent that the beneficiary of the individual retirement account notifies the trustee of the trust of the amount which is not allocable to income under subparagraph (D).
`(ii) POOLED INCOME FUNDS- No amount shall be includible in the gross income of a pooled income fund (as defined in subparagraph (G)(ii)(II)) by reason of a qualified charitable distribution to such fund.
`(iii) CHARITABLE GIFT ANNUITIES- Qualified charitable distributions made for a charitable gift annuity shall not be treated as an investment in the contract.
`(F) DENIAL OF DEDUCTION- Qualified charitable distributions shall not be taken into account in determining the deduction under section 170.
`(G) SPLIT-INTEREST ENTITY DEFINED- For purposes of this paragraph, the term `split-interest entity' means--
`(i) a charitable remainder annuity trust or a charitable remainder unitrust (as such terms are defined in section 664(d)),
`(ii) a pooled income fund (as defined in section 642(c)(5)), and
`(iii) a charitable gift annuity (as defined in section 501(m)(5)).'.
(b) MODIFICATIONS RELATING TO INFORMATION RETURNS BY CERTAIN TRUSTS-
(1) RETURNS- Section 6034 of such Code (relating to returns by trusts described in section 4947(a)(2) or claiming charitable deductions under section 642(c)) is amended to read as follows:
`SEC. 6034. RETURNS BY TRUSTS DESCRIBED IN SECTION 4947(a)(2) OR CLAIMING CHARITABLE DEDUCTIONS UNDER SECTION 642(c).
`(a) TRUSTS DESCRIBED IN SECTION 4947(a)(2)- Every trust described in section 4947(a)(2) shall furnish such information with respect to the taxable year as the Secretary may by forms or regulations require.
`(b) TRUSTS CLAIMING A CHARITABLE DEDUCTION UNDER SECTION 642(c)-
`(1) IN GENERAL- Every trust not required to file a return under subsection (a) but claiming a charitable, etc., deduction under section 642(c) for the taxable year shall furnish such information with respect to such taxable year as the Secretary may by forms or regulations prescribe, including:
`(A) the amount of the charitable, etc., deduction taken under section 642(c) within such year,
`(B) the amount paid out within such year which represents amounts for which charitable, etc., deductions under section 642(c) have been taken in prior years,
`(C) the amount for which charitable, etc., deductions have been taken in prior years but which has not been paid out at the beginning of such year,
`(D) the amount paid out of principal in the current and prior years for charitable, etc., purposes,
`(E) the total income of the trust within such year and the expenses attributable thereto, and
`(F) a balance sheet showing the assets, liabilities, and net worth of the trust as of the beginning of such year.
`(2) EXCEPTIONS- Paragraph (1) shall not apply in the case of a taxable year if all the net income for such year, determined under the applicable principles of the law of trusts, is required to be distributed currently to the beneficiaries. Paragraph (1) shall not apply in the case of a trust described in section 4947(a)(1).'.
(2) INCREASE IN PENALTY RELATING TO FILING OF INFORMATION RETURN BY SPLIT-INTEREST TRUSTS- Paragraph (2) of section 6652(c) of such Code (relating to returns by exempt organizations and by certain trusts) is amended by adding at the end the following new subparagraph:
`(C) SPLIT-INTEREST TRUSTS- In the case of a trust which is required to file a return under section 6034(a), subparagraphs (A) and (B) of this paragraph shall not apply and paragraph (1) shall apply in the same manner as if such return were required under section 6033, except that--
`(i) the 5 percent limitation in the second sentence of paragraph (1)(A) shall not apply,
`(ii) in the case of any trust with gross income in excess of $250,000, the first sentence of paragraph (1)(A) shall be applied by substituting `$100' for `$20', and the second sentence thereof shall be applied by substituting `$50,000' for `$10,000', and
`(iii) the third sentence of paragraph (1)(A) shall be disregarded.
If the person required to file such return knowingly fails to file the return, such person shall be personally liable for the penalty imposed pursuant to this subparagraph.'.
(3) CONFIDENTIALITY OF NONCHARITABLE BENEFICIARIES- Subsection (b) of section 6104 of such Code (relating to inspection of annual information returns) is amended by adding at the end the following new sentence: `In the case of a trust which is required to file a return under section 6034(a), this subsection shall not apply to information regarding beneficiaries which are not organizations described in section 170(c).'.
(c) EFFECTIVE DATES-
(1) SUBSECTION (a)- The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2001.
(2) SUBSECTION (b)- The amendments made by subsection (b) shall apply to returns for taxable years beginning after December 31, 2001.
SEC. 103. INCREASE IN CAP ON CORPORATE CHARITABLE CONTRIBUTIONS.
(a) IN GENERAL- Paragraph (2) of section 170(b) of the Internal Revenue Code of 1986 (relating to corporations) is amended by striking `10 percent' and inserting `the applicable percentage'.
(b) APPLICABLE PERCENTAGE- Subsection (b) of section 170 of such Code is amended by adding at the end the following new paragraph:
`(3) APPLICABLE PERCENTAGE DEFINED- For purposes of paragraph (2), the applicable percentage shall be determined in accordance with the following table:
`For taxable years beginning
--The applicable
in calendar year--
--percentage is--
2002 through 2007
--11
2008
--12
2009
--13
2010 and thereafter
--15.'.
(c) CONFORMING AMENDMENTS-
(1) Sections 512(b)(10) and 805(b)(2)(A) of such Code are each amended by striking `10 percent' each place it occurs and inserting `the applicable percentage (determined under section 170(b)(3))'.
(2) Sections 545(b)(2) and 556(b)(2) of such Code are each amended by striking `10-percent limitation' and inserting `applicable percentage limitation'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2001.
SEC. 104. CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY.
(a) IN GENERAL- Paragraph (3) of section 170(e) of the Internal Revenue Code of 1986 (relating to special rule for certain contributions of inventory and other property) is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph:
`(C) SPECIAL RULE FOR CONTRIBUTIONS OF FOOD INVENTORY-
`(i) GENERAL RULE- In the case of a charitable contribution of food, this paragraph shall be applied--
`(I) without regard to whether the contribution is made by a C corporation, and
`(II) only for food that is apparently wholesome food.
`(ii) DETERMINATION OF FAIR MARKET VALUE- In the case of a qualified contribution of apparently wholesome food to which this paragraph applies and which, solely by reason of internal standards of the taxpayer or lack of market, cannot or will not be sold, the fair market value of such food shall be determined by taking into account the price at which the same or similar food items are sold by the taxpayer at the time of the contribution (or, if not so sold at such time, in the recent past).
`(iii) APPARENTLY WHOLESOME FOOD- For purposes of this subparagraph, the term `apparently wholesome food' shall have the meaning given to such term by section 22(b)(2) of the Bill Emerson Good Samaritan Food Donation Act (42 U.S.C. 1791(b)(2)), as in effect on the date of the enactment of this subparagraph.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2001.
SEC. 105. REFORM OF EXCISE TAX ON NET INVESTMENT INCOME OF PRIVATE FOUNDATIONS.
(a) IN GENERAL- Subsection (a) of section 4940 of the Internal Revenue Code of 1986 (relating to excise tax based on investment income) is amended by striking `2 percent' and inserting `1 percent'.
(b) REPEAL OF REDUCTION IN TAX WHERE PRIVATE FOUNDATION MEETS CERTAIN DISTRIBUTION REQUIREMENTS- Section 4940 of such Code is amended by striking subsection (e).
(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2001.
SEC. 106. EXCISE TAX ON UNRELATED BUSINESS TAXABLE INCOME OF CHARITABLE REMAINDER TRUSTS.
(a) IN GENERAL- Subsection (c) of section 664 of the Internal Revenue Code of 1986 (relating to exemption from income taxes) is amended to read as follows:
`(c) TAXATION OF TRUSTS-
`(1) INCOME TAX- A charitable remainder annuity trust and a charitable remainder unitrust shall, for any taxable year, not be subject to any tax imposed by this subtitle.
`(2) EXCISE TAX-
`(A) IN GENERAL- In the case of a charitable remainder annuity trust or a charitable remainder unitrust that has unrelated business taxable income (within the meaning of section 512, determined as if part III of subchapter F applied to such trust) for a taxable year, there is hereby imposed on such trust or unitrust an excise tax equal to the amount of such unrelated business taxable income.
`(B) CERTAIN RULES TO APPLY- The tax imposed by subparagraph (A) shall be treated as imposed by chapter 42 for purposes of this title other than subchapter E of chapter 42.
`(C) CHARACTER OF DISTRIBUTIONS AND COORDINATION WITH DISTRIBUTION REQUIREMENTS- The amounts taken into account in determining unrelated business taxable income (as defined in subparagraph (A)) shall not be taken into account for purposes of--
`(i) subsection (b),
`(ii) determining the value of trust assets under subsection (d)(2), and
`(iii) determining income under subsection (d)(3).
`(D) TAX COURT PROCEEDINGS- For purposes of this paragraph, the references in section 6212(c)(1) to section 4940 shall be deemed to include references to this paragraph.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2001.
SEC. 107. EXPANSION OF CHARITABLE CONTRIBUTION ALLOWED FOR SCIENTIFIC PROPERTY USED FOR RESEARCH AND FOR COMPUTER TECHNOLOGY AND EQUIPMENT USED FOR EDUCATIONAL PURPOSES.
(a) SCIENTIFIC PROPERTY USED FOR RESEARCH- Clause (ii) of section 170(e)(4)(B) of the Internal Revenue Code of 1986 (defining qualified research contributions) is amended by inserting `or assembled' after `constructed'.
(b) COMPUTER TECHNOLOGY AND EQUIPMENT FOR EDUCATIONAL PURPOSES- Clause (ii) of section 170(e)(6)(B) of such Code is amended by inserting `or assembled' after `constructed' and `or assembling' after `construction'.
(c) CONFORMING AMENDMENT- Subparagraph (D) of section 170(e)(6) of such Code is amended by inserting `or assembled' after `constructed' and `or assembling' after `construction'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2001.
SEC. 108. ADJUSTMENT TO BASIS OF S CORPORATION STOCK FOR CERTAIN CHARITABLE CONTRIBUTIONS.
(a) IN GENERAL- Paragraph (1) of section 1367(a) of such Code (relating to adjustments to basis of stock of shareholders, etc.) is amended by striking `and' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting `, and', and by adding at the end the following new subparagraph:
`(D) the excess of the amount of the shareholder's deduction for any charitable contribution made by the S corporation over the shareholder's proportionate share of the adjusted basis of the property contributed.'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply to taxable years beginning after December 31, 2001.
TITLE II--EXPANSION OF CHARITABLE CHOICE
SEC. 201. PROVISION OF ASSISTANCE UNDER GOVERNMENT PROGRAMS BY RELIGIOUS AND COMMUNITY ORGANIZATIONS.
Title XXIV of the Revised Statutes of the United States is amended by inserting after section 1990 (42 U.S.C. 1994) the following:
`SEC. 1991. CHARITABLE CHOICE.
`(a) SHORT TITLE- This section may be cited as the `Charitable Choice Act of 2001'.
`(b) PURPOSES- The purposes of this section are--
`(1) to enable assistance to be provided to individuals and families in need in the most effective and efficient manner;
`(2) to supplement the Nation's social service capacity by facilitating the entry of new, and the expansion of existing, efforts by religious and other community organizations in the administration and distribution of government assistance under the government programs described in subsection (c)(4);
`(3) to prohibit discrimination against religious organizations on the basis of religion in the administration and distribution of government assistance under such programs;
`(4) to allow religious organizations to participate in the administration and distribution of such assistance without impairing the religious character and autonomy of such organizations; and
`(5) to protect the religious freedom of individuals and families in need who are eligible for government assistance, including expanding the possibility of their being able to choose to receive services from a religious organization providing such assistance.
`(c) RELIGIOUS ORGANIZATIONS INCLUDED AS PROVIDERS; DISCLAIMERS-
`(1) IN GENERAL-
`(A) INCLUSION- For any program described in paragraph (4) that is carried out by the Federal Government, or by a State or local government with Federal funds, the government shall consider, on the same basis as other nongovernmental organizations, religious organizations to provide the assistance under the program, and the program shall be implemented in a manner that is consistent with the establishment clause and the free exercise clause of the first amendment to the Constitution.
`(B) DISCRIMINATION PROHIBITED- Neither the Federal Government, nor a State or local government receiving funds under a program described in paragraph (4), shall discriminate against an organization that provides assistance under, or applies to provide assistance under, such program on the basis that the organization is religious or has a religious character.
`(2) FUNDS NOT AID TO RELIGION- Federal, State, or local government funds or other assistance that is received by a religious organization for the provision of services under this section constitutes aid to individuals and families in need, the ultimate beneficiaries of such services, and not support for religion or the organization's religious beliefs or practices. Notwithstanding the provisions in this paragraph, title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) shall apply to organizations receiving assistance funded under any program described in subsection (c)(4).
`(3) FUNDS NOT ENDORSEMENT OF RELIGION- The receipt by a religious organization of Federal, State, or local government funds or other assistance under this section is not an endorsement by the government of religion or of the organization's religious beliefs or practices.
`(4) PROGRAMS- For purposes of this section, a program is described in this paragraph--
`(A) if it involves activities carried out using Federal funds--
`(i) related to the prevention and treatment of juvenile delinquency and the improvement of the juvenile justice system, including programs funded under the Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C. 5601 et seq.);
`(ii) related to the prevention of crime and assistance to crime victims and offenders' families, including programs funded under title I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3701 et seq.);
`(iii) related to the provision of assistance under Federal housing statutes, including the Community Development Block Grant Program established under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.);
`(iv) under subtitle B or D of title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.);
`(v) under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.);
`(vi) related to the intervention in and prevention of domestic violence, including programs under the Child Abuse Prevention and Treatment Act (42 U.S.C. 5101 et seq.) or the Family Violence Prevention and Services Act (42 U.S.C. 10401 et seq.);
`(vii) related to hunger relief activities; or
`(viii) under the Job Access and Reverse Commute grant program established under section 3037 of the Federal Transit Act of 1998 (49 U.S.C. 5309 note); or
`(B)(i) if it involves activities to assist students in obtaining the recognized equivalents of secondary school diplomas and activities relating to nonschool hours programs, including programs under--
`(I) chapter 3 of subtitle A of title II of the Workforce Investment Act of 1998 (Public Law 105-220); or
`(II) part I of title X of the Elementary and Secondary Education Act (20 U.S.C. 6301 et seq.); and
`(ii) except as provided in subparagraph (A) and clause (i), does not include activities carried out under Federal programs providing education to children eligible to attend elementary schools or secondary schools, as defined in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
`(d) ORGANIZATIONAL CHARACTER AND AUTONOMY-
`(1) IN GENERAL- A religious organization that provides assistance under a program described in subsection (c)(4) shall have the right to retain its autonomy from Federal, State, and local governments, including such organization's control over the definition, development, practice, and expression of its religious beliefs.
`(2) ADDITIONAL SAFEGUARDS- Neither the Federal Government, nor a State or local government with Federal funds, shall require a religious organization, in order to be eligible to provide assistance under a program described in subsection (c)(4), to--
`(A) alter its form of internal governance or provisions in its charter documents; or
`(B) remove religious art, icons, scripture, or other symbols, or to change its name, because such symbols or names are of a religious character.
`(e) EMPLOYMENT PRACTICES- A religious organization's exemption provided under section 702 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-1) regarding employment practices shall not be affected by its participation in, or receipt of funds from, programs described in subsection (c)(4), and any provision in such programs that is inconsistent with or would diminish the exercise of an organization's autonomy recognized in section 702 or in this section shall have no effect. Nothing in this section alters the duty of a religious organization to comply with the nondiscrimination provisions of title VII of the Civil Rights Act of 1964 in the use of funds from programs described in subsection (c)(4).
`(f) EFFECT ON OTHER LAWS- Nothing in this section shall alter the duty of a religious organization receiving assistance or providing services under any program described in subsection (c)(4) to comply with the nondiscrimination provisions in title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) (prohibiting discrimination on the basis of race, color, and national origin), title IX of the Education Amendments of 1972 (20 U.S.C. 1681-1688) (prohibiting discrimination in education programs or activities on the basis of sex and visual impairment), section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) (prohibiting discrimination against otherwise qualified disabled individuals), and the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) (prohibiting discrimination on the basis of age).
`(g) RIGHTS OF BENEFICIARIES OF ASSISTANCE-
`(1) IN GENERAL- If an individual described in paragraph (3) has an objection to the religious character of the organization from which the individual receives, or would receive, assistance funded under any program described in subsection (c)(4), the appropriate Federal, State, or local governmental entity shall provide to such individual (if otherwise eligible for such assistance) within a reasonable period of time after the date of such objection, assistance that--
`(A) is an alternative that is accessible to the individual and unobjectionable to the individual on religious grounds; and
`(B) has a value that is not less than the value of the assistance that the individual would have received from such organization.
`(2) NOTICE- The appropriate Federal, State, or local governmental entity shall guarantee that notice is provided to the individuals described in paragraph (3) of the rights of such individuals under this section.
`(3) INDIVIDUAL DESCRIBED- An individual described in this paragraph is an individual who receives or applies for assistance under a program described in subsection (c)(4).
`(h) NONDISCRIMINATION AGAINST BENEFICIARIES-
`(1) GRANTS AND COOPERATIVE AGREEMENTS- A religious organization providing assistance through a grant or cooperative agreement under a program described in subsection (c)(4) shall not discriminate in carrying out the program against an individual described in subsection (g)(3) on the basis of religion, a religious belief, or a refusal to hold a religious belief.
`(2) INDIRECT FORMS OF ASSISTANCE- A religious organization providing assistance through a voucher, certificate, or other form of indirect assistance under a program described in subsection (c)(4) shall not deny an individual described in subsection (g)(3) admission into such program on the basis of religion, a religious belief, or a refusal to hold a religious belief.
`(i) ACCOUNTABILITY-
`(1) IN GENERAL- Except as provided in paragraphs (2) and (3), a religious organization providing assistance under any program described in subsection (c)(4) shall be subject to the same regulations as other nongovernmental organizations to account in accord with generally accepted accounting principles for the use of such funds and its performance of such programs.
`(2) LIMITED AUDIT-
`(A) GRANTS AND COOPERATIVE AGREEMENTS- A religious organization providing assistance through a grant or cooperative agreement under a program described in subsection (c)(4) shall segregate government funds provided under such program into a separate account or accounts. Only the separate accounts consisting of funds from the government shall be subject to audit by the government.
`(B) INDIRECT FORMS OF ASSISTANCE- A religious organization providing assistance through a voucher, certificate, or other form of indirect assistance under a program described in subsection (c)(4) may segregate government funds provided under such program into a separate account or accounts. If such funds are so segregated, then only the separate accounts consisting of funds from the government shall be subject to audit by the government.
`(3) SELF AUDIT- A religious organization providing services under any program described in subsection (c)(4) shall conduct annually a self audit for compliance with its duties under this section and submit a copy of the self audit to the appropriate Federal, State, or local government agency, along with a plan to timely correct variances, if any, identified in the self audit.
`(j) LIMITATIONS ON USE OF FUNDS; VOLUNTARINESS- No funds provided through a grant or cooperative agreement to a religious organization to provide assistance under any program described in subsection (c)(4) shall be expended for sectarian instruction, worship, or proselytization. If the religious organization offers such an activity, it shall be voluntary for the individuals receiving services and offered separate from the program funded under subsection (c)(4). A certificate shall be separately signed by religious organizations, and filed with the government agency that disburses the funds, certifying that the organization is aware of and will comply with this subsection.
`(k) EFFECT ON STATE AND LOCAL FUNDS- If a State or local government contributes State or local funds to carry out a program described in subsection (c)(4), the State or local government may segregate the State or local funds from the Federal funds provided to carry out the program or may commingle the State or local funds with the Federal funds. If the State or local government commingles the State or local funds, the provisions of this section shall apply to the commingled funds in the same manner, and to the same extent, as the provisions apply to the Federal funds.
`(l) INDIRECT ASSISTANCE- When consistent with the purpose of a program described in subsection (c)(4), the Secretary of the department administering the program may direct the disbursement of some or all of the funds, if determined by the Secretary to be feasible and efficient, in the form of indirect assistance. For purposes of this section, `indirect assistance' constitutes assistance in which an organization receiving funds through a voucher, certificate, or other form of disbursement under this section receives such funding only as a result of the private choices of individual beneficiaries and no government endorsement of any particular religion, or of religion generally, occurs.
`(m) TREATMENT OF INTERMEDIATE GRANTORS- If a nongovernmental organization (referred to in this subsection as an `intermediate grantor'), acting under a grant or other agreement with the Federal Government, or a State or local government with Federal funds, is given the authority under the agreement to select nongovernmental organizations to provide assistance under the programs described in subsection (c)(4), the intermediate grantor shall have the same duties under this section as the government when selecting or otherwise dealing with subgrantors, but the intermediate grantor, if it is a religious organization, shall retain all other rights of a religious organization under this section.
`(n) COMPLIANCE- A party alleging that the rights of the party under this section have been violated by a State or local government may bring a civil action for injunctive relief pursuant to section 1979 against the State official or local government agency that has allegedly committed such violation. A party alleging that the rights of the party under this section have been violated by the Federal Government may bring a civil action for injunctive relief in Federal district court against the official or government agency that has allegedly committed such violation.
`(o) TRAINING AND TECHNICAL ASSISTANCE FOR SMALL NONGOVERNMENTAL ORGANIZATIONS-
`(1) IN GENERAL- From amounts made available to carry out the purposes of the Office of Justice Programs (including any component or unit thereof, including the Office of Community Oriented Policing Services), funds are authorized to provide training and technical assistance, directly or through grants or other arrangements, in procedures relating to potential application and participation in programs identified in subsection (c)(4) to small nongovernmental organizations, as determined by the Attorney General, including religious organizations, in an amount not to exceed $50 million annually.
`(2) TYPES OF ASSISTANCE- Such assistance may include--
`(A) assistance and information relative to creating an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 to operate identified programs;
`(B) granting writing assistance which may include workshops and reasonable guidance;
`(C) information and referrals to other nongovernmental organizations that provide expertise in accounting, legal issues, tax issues, program development, and a variety of other organizational areas; and
`(D) information and guidance on how to comply with Federal nondiscrimination provisions including, but not limited to, title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), the Fair Housing Act, as amended (42 U.S.C. 3601 et seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 1681-1688), section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 694), and the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107).
`(3) RESERVATION OF FUNDS- An amount of no less than $5,000,000 shall be reserved under this section. Small nongovernmental organizations may apply for these funds to be used for assistance in providing full and equal integrated access to individuals with disabilities in programs under this title.
`(4) PRIORITY- In giving out the assistance described in this subsection, priority shall be given to small nongovernmental organizations serving urban and rural communities.'.
TITLE III--INDIVIDUAL DEVELOPMENT ACCOUNTS
SEC. 301. ADDITIONAL QUALIFIED ENTITIES ELIGIBLE TO CONDUCT PROJECTS UNDER THE ASSETS FOR INDEPENDENCE ACT.
Section 404(7)(A)(iii)(I)(aa) of the Assets for Independence Act (42 U.S.C. 604 note) is amended to read as follows:
`(aa) a federally insured credit union; or'.
SEC. 302. INCREASE IN LIMITATION ON NET WORTH.
Section 408(a)(2)(A) of the Assets for Independence Act (42 U.S.C. 604 note) is amended by striking `$10,000' and inserting `$20,000'.
SEC. 303. CHANGE IN LIMITATION ON DEPOSITS FOR AN INDIVIDUAL.
Section 410(b) of the Assets for Independence Act (42 U.S.C. 604 note) is amended to read as follows:
`(b) LIMITATION ON DEPOSITS FOR AN INDIVIDUAL- Not more than $500 from a grant made under section 406(b) shall be provided per year to any one individual during the project.'.
SEC. 304. ELIMINATION OF LIMITATION ON DEPOSITS FOR A HOUSEHOLD.
Section 410 of the Assets for Independence Act (42 U.S.C. 604 note) is amended by striking subsection (c) and redesignating subsections (d) and (e) as subsections (c) and (d), respectively.
SEC. 305. EXTENSION OF PROGRAM.
Section 416 of the Assets for Independence Act (42 U.S.C. 604 note) is amended by striking `2001, 2002, and 2003' and inserting `and 2001, and $50,000,000 for each of fiscal years 2002 through 2008'.
SEC. 306. CONFORMING AMENDMENTS.
(a) AMENDMENTS TO TEXT- The text of each of the following provisions of the Assets for Independence Act (42 U.S.C. 604 note) is amended by striking `demonstration' each place it appears:
(1) Section 403.
(2) Section 404(2).
(3) Section 405(a).
(4) Section 405(b).
(5) Section 405(c).
(6) Section 405(d).
(7) Section 405(e).
(8) Section 405(g).
(9) Section 406(a).
(10) Section 406(b).
(11) Section 407(b)(1)(A).
(12) Section 407(c)(1)(A).
(13) Section 407(c)(1)(B).
(14) Section 407(c)(1)(C).
(15) Section 407(c)(1)(D).
(16) Section 407(d).
(17) Section 408(a).
(18) Section 408(b).
(19) Section 409.
(20) Section 410(e).
(21) Section 411.
(22) Section 412(a).
(23) Section 412(b)(2).
(24) Section 412(c).
(25) Section 413(a).
(26) Section 413(b).
(27) Section 414(a).
(28) Section 414(b).
(29) Section 414(c).
(30) Section 414(d)(1).
(31) Section 414(d)(2).
(b) AMENDMENTS TO SUBSECTION HEADINGS- The heading of each of the following provisions of the Assets for Independence Act (42 U.S.C. 604 note) is amended by striking `DEMONSTRATION':
(1) Section 405(a).
(2) Section 406(a).
(3) Section 413(a).
(c) AMENDMENTS TO SECTION HEADINGS- The headings of sections 406 and 411 of the Assets for Independence Act (42 U.S.C. 604 note) are amended by striking `DEMONSTRATION'.
SEC. 307. APPLICABILITY.
(a) IN GENERAL- The amendments made by this title shall apply to funds provided before, on or after the date of the enactment of this Act.
(b) PRIOR AMENDMENTS- The amendments made by title VI of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2001 (as enacted into law by Public Law 106-554) shall apply to funds provided before, on or after the date of the enactment of such Act.
TITLE IV--CHARITABLE DONATIONS LIABILITY REFORM FOR IN-KIND CORPORATE CONTRIBUTIONS
SEC. 401. CHARITABLE DONATIONS LIABILITY REFORM FOR IN-KIND CORPORATE CONTRIBUTIONS.
(a) DEFINITIONS- For purposes of this section:
(1) AIRCRAFT- The term `aircraft' has the meaning provided that term in section 40102(6) of title 49, United States Code.
(2) BUSINESS ENTITY- The term `business entity' means a firm, corporation, association, partnership, consortium, joint venture, or other form of enterprise.
(3) EQUIPMENT- The term `equipment' includes mechanical equipment, electronic equipment, and office equipment.
(4) FACILITY- The term `facility' means any real property, including any building, improvement, or appurtenance.
(5) GROSS NEGLIGENCE- The term `gross negligence' means voluntary and conscious conduct by a person with knowledge (at the time of the conduct) that the conduct is likely to be harmful to the health or well-being of another person.
(6) INTENTIONAL MISCONDUCT- The term `intentional misconduct' means conduct by a person with knowledge (at the time of the conduct) that the conduct is harmful to the health or well-being of another person.
(7) MOTOR VEHICLE- The term `motor vehicle' has the meaning provided that term in section 30102(6) of title 49, United States Code.
(8) NONPROFIT ORGANIZATION- The term `nonprofit organization' means--
(A) any organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; or
(B) any not-for-profit organization organized and conducted for public benefit and operated primarily for charitable, civic, educational, religious, welfare, or health purposes.
(9) STATE- The term `State' means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, any other territory or possession of the United States, or any political subdivision of any such State, territory, or possession.
(b) LIABILITY-
(1) LIABILITY OF BUSINESS ENTITIES THAT DONATE EQUIPMENT TO NONPROFIT ORGANIZATIONS-
(A) IN GENERAL- Subject to subsection (c), a business entity shall not be subject to civil liability relating to any injury or death that results from the use of equipment donated by a business entity to a nonprofit organization.
(B) APPLICATION- This paragraph shall apply with respect to civil liability under Federal and State law.
(2) LIABILITY OF BUSINESS ENTITIES PROVIDING USE OF FACILITIES TO NONPROFIT ORGANIZATIONS-
(A) IN GENERAL- Subject to subsection (c), a business entity shall not be subject to civil liability relating to any injury or death occurring at a facility of the business entity in connection with a use of such facility by a nonprofit organization, if--
(i) the use occurs outside of the scope of business of the business entity;
(ii) such injury or death occurs during a period that such facility is used by the nonprofit organization; and
(iii) the business entity authorized the use of such facility by the nonprofit organization.
(B) APPLICATION- This paragraph shall apply--
(i) with respect to civil liability under Federal and State law; and
(ii) regardless of whether a nonprofit organization pays for the use of a facility.
(3) LIABILITY OF BUSINESS ENTITIES PROVIDING USE OF A MOTOR VEHICLE OR AIRCRAFT-
(A) IN GENERAL- Subject to subsection (c), a business entity shall not be subject to civil liability relating to any injury or death occurring as a result of the operation of aircraft or a motor vehicle of a business entity loaned to a nonprofit organization for use outside of the scope of business of the business entity, if--
(i) such injury or death occurs during a period that such motor vehicle or aircraft is used by a nonprofit organization; and
(ii) the business entity authorized the use by the nonprofit organization of motor vehicle or aircraft that resulted in the injury or death.
(B) APPLICATION- This paragraph shall apply--
(i) with respect to civil liability under Federal and State law; and
(ii) regardless of whether a nonprofit organization pays for the use of the aircraft or motor vehicle.
(c) EXCEPTIONS- Subsection (b) shall not apply to an injury or death that results from an act or omission of a business entity that constitutes gross negligence or intentional misconduct.
(d) SUPERSEDING PROVISION-
(1) IN GENERAL- Subject to paragraph (2) and subsection (e), this title preempts the laws of any State to the extent that such laws are inconsistent with this title, except that this title shall not preempt any State law that provides additional protection for a business entity for an injury or death described in a paragraph of subsection (b) with respect to which the conditions specified in such paragraph apply.
(2) LIMITATION- Nothing in this title shall be construed to supersede any Federal or State health or safety law.
(e) ELECTION OF STATE REGARDING NONAPPLICABILITY- A provision of this title shall not apply to any civil action in a State court against a business entity in which all parties are citizens of the State if such State enacts a statute--
(1) citing the authority of this section;
(2) declaring the election of such State that such provision shall not apply to such civil action in the State; and
(3) containing no other provisions.
(f) EFFECTIVE DATE- This section shall apply to injuries (and deaths resulting therefrom) occurring on or after the date of the enactment of this Act.
Passed the House of Representatives July 19, 2001.
Attest:
Clerk.