Page:United States Statutes at Large Volume 83.djvu/569

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

"(2) which has made an election before October 9, 1969, under section 456(c) or which is affiliated with such an organization, or " (3) which for each day of any taxable year is a national securities exchange subject to regulation under the Securities Exchange Act of 1934 or a contract market subject to regulation under the Conmiodity Exchange Act." (B) The table of sections for part IX of subchapter B of chapter 1 is amended by adding at the end thereof the following: "Sec. 277. Deductions incurred by certain membership organizations in transactions with members." (4) LOCAL EMPLOYEE ASSOCIATION.—Section 513(a)(2) (relating to exception to definition of unrelated trade or business) is amended by striking out "employees; or" and inserting in lieu thereof the following: "employees, or, in the case of a local association of employees described in section 501(c)(4) organized before May 27, 1969, which is the selling by the organization of items of work-related clothes and equipment and items normallj^ sold through vending machines, through food dispensing facilities, or by snack bars, for the convenience of its members at their usual places of employment; or".

541

75 Stat. 222. 26 USC 456.

^s sta^. SM 42 Stat. 998 7 USC i.

68A Stat. 172.

(5) VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATIONS AND CERTAIN FRATERNAL SOCIETIES.

(A) IN GENERAL.—Section 501(c) (relating to list of 26 USC soi. exempt organizations) is amended by striking out paragraphs (9) and (10) and inserting in lieu thereof the following: "(9) Voluntary employees' Deneficiary associations providing for the payment of life, sick, accident, or other benefits to the members of such association or their dependents or designated beneficiaries, if no part of the net earnings of such association inures (other than through such payments) to the benefit of any private shareholder or individual. " (10) Domestic fraternal societies, orders, or associations, operating under the lodge system— " (A) the net earnings of which are devoted exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes, and " (B) which do not provide for the payment of life, sick, accident, or other benefits." (B) CONFORMING AMENDMENTS.—Section 801(b)(2) (re- ^3 Stat. 112. lating to life insurance reserves) is amended— (i) by inserting "and" at the end of subparagraph (ii) by striking out subparagraph (B), and (iii) by redesignating subparagraph (C) as (B). Section 810 (relating to rules for certain reserves) is amended by striking out subsection (e). (6) CERTAIN FUNDED PENSION TRUSTS.— (A) EXEMPTION FROM TAXATION.—Section

501(c) (relating to list of exempt organizations) is amended by adding at the end thereof the following new paragraph: "(18) A trust or trusts created before June 25, 1959, forming part of a plan providing for the payment of benefits under a pension plan funded only by contributions of employees, if— " (A) under the plan, it is impossible, at any time prior to the satisfaction of all liabilities with respect to employees under the plan, for any part of the corpus or income to be

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