S.Ct. Religion Docket - 2/24/98

[Mark S. Scarberry]

Here is S.1244, which "[t]he Senate Judiciary Committee today approved by
unanimous consent on a
voice vote," according to the American Bankruptcy Institute.   The ABI expects
it to pass both the House and Senate easily.  Note especially the reference to
RFRA at the end of the bill.  If this bill passes, it will include a message
from Congress that RFRA still applies to the federal government.
--
Mark S. Scarberry
Pepperdine University School of Law
(310) 456-4667
mscarber at pepperdine.edu

[from Thomas]

Religious Liberty and Charitable Donation Protection Act of 1997 (Introduced
in the Senate)

S 1244 IS

                                          105th CONGRESS

                                             1st Session

                                               S. 1244

To amend title 11, United States Code, to protect certain charitable
contributions, and for other purposes.

                              IN THE SENATE OF THE UNITED STATES

                                          October 1, 1997

Mr. GRASSLEY (for himself, Mr. SESSIONS, and Mr. GRAMS) introduced the
following bill; which was read twice and referred
to the Committee on the Judiciary



                                               A BILL

To amend title 11, United States Code, to protect certain charitable
contributions, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the `Religious Liberty and Charitable Donation
Protection Act of 1997'.

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--

        `(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).'.

    (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. APPLICABILITY.

    This Act and the amendments made by this Act shall apply to any case
brought under an applicable provision of title 11,
    United States Code, that is pending or commenced on or after the date of
enactment of this Act.

SEC. 6. RULE OF 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.).