S.Amdt. 3135

SA 3135. Mr. BENNET (for himself and Mr. Crapo) submitted an
amendment intended to be proposed to amendment SA 3060 proposed by Mr.
Wyden to the bill H.R. 3474, to amend the Internal Revenue Code of 1986
to allow employers to exempt employees with health coverage under
TRICARE or the Veterans Administration from being taken into account
for purposes of the employer mandate under the Patient Protection and
Affordable Care Act; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE--OTHER PROVISIONS

SEC. _01. FACILITATE WATER LEASING AND WATER TRANSFERS TO
PROMOTE CONSERVATION AND EFFICIENCY.

(a) In General.--Paragraph (12) of section 501(c) is
amended by adding at the end the following new subparagraph:
``(I) Treatment of mutual ditch irrigation companies.--
``(i) In general.--In the case of a mutual ditch or
irrigation company or like organization, subparagraph (A)
shall be applied without taking into account any income
received or accrued--

``(I) from the sale, lease, or exchange of fee or other
interests in real property, including interests in water,
``(II) from the sale or exchange of stock in a mutual ditch
or irrigation company or like organization or contract rights
for the delivery or use of water, or
``(III) from the investment of proceeds from sales, leases,
or exchanges under subclauses (I) and (II),

except that any income received under subclause (I), (II), or
(III) which is distributed or expended for expenses (other
than for operations, maintenance, and capital improvements)
of the mutual ditch or irrigation company or like
organization shall be treated as nonmember income in the year
in which it is distributed or expended. For purposes of the
preceding sentence, expenses (other than for operations,
maintenance, and capital improvements) include expenses for
the construction of conveyances designed to deliver water
outside of the mutual ditch or irrigation company or like
organization system.
``(ii) Treatment of organizational governance.--In the case
of a mutual ditch or irrigation company or like organization,
where State law provides that such a company or organization
may be organized in a manner that permits voting on a basis
which is pro rata to share ownership on corporate governance
matters, subparagraph (A) shall be applied without taking
into account whether its member shareholders have one vote on
corporate governance matters per share held in the
corporation. Nothing in this clause shall be construed to
create any inference about the requirements of this
subsection for companies or organizations not included in
this clause.''.

[[Page S3098]]

(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after the date of the
enactment of this Act.
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