HR 6227, U.S. House Bill - To exempt longstanding nonfunctionally-integrated supporting organizations from certain provisions of the Pension Protection Act

Mr. LEWIS of Georgia (for himself, Mr. RAMSTAD, and Mr. THOMPSON of California) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To exempt longstanding nonfunctionally-integrated supporting organizations from certain provisions of the Pension Protection Act of 2006.

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

SECTION 1. EXCEPTION FROM HOLDINGS AND PAYOUT REQUIREMENTS FOR CERTAIN LONGSTANDING, FULLY-FUNDED TYPE III SUPPORTING ORGANIZATIONS.

(a) Excess Business Holdings- Subsection (f) of section 4943 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

`(8) EXCEPTION FOR CERTAIN LONGSTANDING FULLY FUNDED TYPE III SUPPORTING ORGANIZATIONS- Paragraph (1) shall not apply to any organization if--

`(A) the organization was established before January 1, 1970,

`(B) the organization has not accepted any substantial contributions after December 31, 1970,

`(C) no donor to the organization was alive on August 17, 2006, and

`(D) no family member (within the meaning of section 4958(f)(4)) of any donor is an organization manager (as defined in section 4958(f)(2)).'.

(b) Payout Requirements- Section 1241(d)(1) of the Pension Protection Act of 2006 shall not apply to any organization described in section 4943(f)(8) of the Internal Revenue Code of 1986, as added by subsection (a).

(c) Effective Date- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

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