[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 97 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 97
To treat certain hospital support organizations as qualified
organizations for purposes of determining acquisition indebtedness.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 7, 2003
Mr. Inouye introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To treat certain hospital support organizations as qualified
organizations for purposes of determining acquisition indebtedness.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TREATMENT OF CERTAIN HOSPITAL SUPPORT ORGANIZATIONS AS
QUALIFIED ORGANIZATIONS FOR PURPOSES OF DETERMINING
ACQUISITION INDEBTEDNESS.
(a) In General.--Subparagraph (C) of section 514(c)(9) of the
Internal Revenue Code of 1986 (relating to real property acquired by a
qualified organization) is amended by striking ``or'' at the end of
clause (ii), by striking the period at the end of clause (iii) and
inserting ``; or'', and by adding at the end the following new clause:
``(iv) a qualified hospital support
organization (as defined in
subparagraph (I)).''.
(b) Qualified Hospital Support Organizations.--Paragraph (9) of
section 514(c) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new subparagraph:
``(I) Qualified hospital support organizations.--
For purposes of subparagraph (C)(iv), the term
`qualified hospital support organization' means, with
respect to any eligible indebtedness (including any
qualified refinancing of such eligible indebtedness), a
support organization (as defined in section 509(a)(3))
which supports a hospital described in section
119(d)(4)(B) and with respect to which--
``(i) more than half of its assets
(by value) at any time since its
organization--
``(I) were acquired,
directly or indirectly, by
testamentary gift or devise,
and
``(II) consisted of real
property, and
``(ii) the fair market value of the
organization's real estate acquired,
directly or indirectly, by gift or
devise, exceeded 25 percent of the fair
market value of all investment assets
held by the organization immediately
prior to the time that the eligible
indebtedness was incurred.
For purposes of this subparagraph, the term `eligible
indebtedness' means indebtedness secured by real
property acquired by the organization, directly or
indirectly, by gift or devise, the proceeds of which
are used exclusively to acquire any leasehold interest
in such real property or for improvements on, or
repairs to, such real property. A determination under
clauses (i) and (ii) of this subparagraph shall be made
each time such an eligible indebtedness (or the
qualified refinancing of such an eligible indebtedness)
is incurred. For purposes of this subparagraph, a
refinancing of such an eligible indebtedness shall be
considered qualified if such refinancing does not
exceed the amount of the refinanced eligible
indebtedness immediately before the refinancing.''.
(c) Effective Date.--The amendments made by this section shall
apply to indebtedness incurred after December 31, 2003.
<all>