6 U.S.C. § 331 : US Code - Section 331: Treatment of charitable trusts for members of the Armed Forces of the United States and other governmental organizations

Search 6 U.S.C. § 331 : US Code - Section 331: Treatment of charitable trusts for members of the Armed Forces of the United States and other governmental organizations

(a) Findings
Congress finds the following:
(1) Members of the Armed Forces of the United States defend the
freedom and security of our Nation.
(2) Members of the Armed Forces of the United States have lost
their lives while battling the evils of terrorism around the
world.
(3) Personnel of the Central Intelligence Agency (CIA) charged
with the responsibility of covert observation of terrorists
around the world are often put in harm's way during their service
to the United States.
(4) Personnel of the Central Intelligence Agency have also lost
their lives while battling the evils of terrorism around the
world.
(5) Employees of the Federal Bureau of Investigation (FBI) and
other Federal agencies charged with domestic protection of the
United States put their lives at risk on a daily basis for the
freedom and security of our Nation.
(6) United States military personnel, CIA personnel, FBI
personnel, and other Federal agents in the service of the United
States are patriots of the highest order.
(7) CIA officer Johnny Micheal Spann became the first American
to give his life for his country in the War on Terrorism declared
by President George W. Bush following the terrorist attacks of
September 11, 2001.
(8) Johnny Micheal Spann left behind a wife and children who
are very proud of the heroic actions of their patriot father.
(9) Surviving dependents of members of the Armed Forces of the
United States who lose their lives as a result of terrorist
attacks or military operations abroad receive a $6,000 death
benefit, plus a small monthly benefit.
(10) The current system of compensating spouses and children of
American patriots is inequitable and needs improvement.
(b) Designation of Johnny Micheal Spann Patriot Trusts
Any charitable corporation, fund, foundation, or trust (or
separate fund or account thereof) which otherwise meets all
applicable requirements under law with respect to charitable
entities and meets the requirements described in subsection (c) of
this section shall be eligible to characterize itself as a "Johnny
Micheal Spann Patriot Trust".
(c) Requirements for the designation of Johnny Micheal Spann
Patriot Trusts
The requirements described in this subsection are as follows:
(1) Not taking into account funds or donations reasonably
necessary to establish a trust, at least 85 percent of all funds
or donations (including any earnings on the investment of such
funds or donations) received or collected by any Johnny Micheal
Spann Patriot Trust must be distributed to (or, if placed in a
private foundation, held in trust for) surviving spouses,
children, or dependent parents, grandparents, or siblings of 1 or
more of the following:
(A) members of the Armed Forces of the United States;
(B) personnel, including contractors, of elements of the
intelligence community, as defined in section 401a(4) of title
50;
(C) employees of the Federal Bureau of Investigation; and
(D) officers, employees, or contract employees of the United
States Government,
whose deaths occur in the line of duty and arise out of terrorist
attacks, military operations, intelligence operations, or law
enforcement operations or accidents connected with activities
occurring after September 11, 2001, and related to domestic or
foreign efforts to curb international terrorism, including the
Authorization for Use of Military Force (Public Law 107-40; 115
Stat. 224).
(2) Other than funds or donations reasonably necessary to
establish a trust, not more than 15 percent of all funds or
donations (or 15 percent of annual earnings on funds invested in
a private foundation) may be used for administrative purposes.
(3) No part of the net earnings of any Johnny Micheal Spann
Patriot Trust may inure to the benefit of any individual based
solely on the position of such individual as a shareholder, an
officer or employee of such Trust.
(4) None of the activities of any Johnny Micheal Spann Patriot
Trust shall be conducted in a manner inconsistent with any law
that prohibits attempting to influence legislation.
(5) No Johnny Micheal Spann Patriot Trust may participate in or
intervene in any political campaign on behalf of (or in
opposition to) any candidate for public office, including by
publication or distribution of statements.
(6) Each Johnny Micheal Spann Patriot Trust shall comply with
the instructions and directions of the Director of Central
Intelligence, the Attorney General, or the Secretary of Defense
relating to the protection of intelligence sources and methods,
sensitive law enforcement information, or other sensitive
national security information, including methods for
confidentially disbursing funds.
(7) Each Johnny Micheal Spann Patriot Trust that receives
annual contributions totaling more than $1,000,000 must be
audited annually by an independent certified public accounting
firm. Such audits shall be filed with the Internal Revenue
Service, and shall be open to public inspection, except that the
conduct, filing, and availability of the audit shall be
consistent with the protection of intelligence sources and
methods, of sensitive law enforcement information, and of other
sensitive national security information.
(8) Each Johnny Micheal Spann Patriot Trust shall make
distributions to beneficiaries described in paragraph (1) at
least once every calendar year, beginning not later than 12
months after the formation of such Trust, and all funds and
donations received and earnings not placed in a private
foundation dedicated to such beneficiaries must be distributed
within 36 months after the end of the fiscal year in which such
funds, donations, and earnings are received.
(9)(A) When determining the amount of a distribution to any
beneficiary described in paragraph (1), a Johnny Micheal Spann
Patriot Trust should take into account the amount of any
collateral source compensation that the beneficiary has received
or is entitled to receive as a result of the death of an
individual described in paragraph (1).
(B) Collateral source compensation includes all compensation
from collateral sources, including life insurance, pension funds,
death benefit programs, and payments by Federal, State, or local
governments related to the death of an individual described in
paragraph (1).
(d) Treatment of Johnny Micheal Spann Patriot Trusts
Each Johnny Micheal Spann Patriot Trust shall refrain from
conducting the activities described in clauses (i) and (ii) of
section 431(20)(A) of title 2 so that a general solicitation of
funds by an individual described in paragraph (1) of section
441i(e) of title 2 will be permissible if such solicitation meets
the requirements of paragraph (4)(A) of such section.
(e) Notification of Trust beneficiaries
Notwithstanding any other provision of law, and in a manner
consistent with the protection of intelligence sources and methods
and sensitive law enforcement information, and other sensitive
national security information, the Secretary of Defense, the
Director of the Federal Bureau of Investigation, or the Director of
Central Intelligence, or their designees, as applicable, may
forward information received from an executor, administrator, or
other legal representative of the estate of a decedent described in
subparagraph (A), (B), (C), or (D) of subsection (c)(1) of this
section, to a Johnny Micheal Spann Patriot Trust on how to contact
individuals eligible for a distribution under subsection (c)(1) of
this section for the purpose of providing assistance from such
Trust: Provided, That, neither forwarding nor failing to forward
any information under this subsection shall create any cause of
action against any Federal department, agency, officer, agent, or
employee.
(f) Regulations
Not later than 90 days after November 25, 2002, the Secretary of
Defense, in coordination with the Attorney General, the Director of
the Federal Bureau of Investigation, and the Director of Central
Intelligence, shall prescribe regulations to carry out this
section.