Page:United States Statutes at Large Volume 90 Part 2.djvu/460

 90 STAT. 1928 Ante, p. 1926. Ante, p. 1927.

PUBLIC LAW 94-455—OCT. 4, 1976 a qualified group legal services plan or plans, within the meaning of section 120. A n organization or trust which receives contributions because of section 120(c)(5)(C) shall not be prevented from qualifying as an organization described in section 501(c) (20) merely because i t provides legal services or indemnification against the cost of legal services unassociated with a qualified group legal services plan." (c) T E C H N I C A L AMENDMENT. — The table of sections for part III of

subchapter B of chapter 1 is amended by inserting after the item relating to section 119 the following new item: "Sec. 120. Amounts received under qualified group legal services plans."

26 USC 120 note.

Report to President and Congress.

26 USC 120 note.

(d) STUDY AND REPORT BY SECRETARIES OF TREASURY AND LABOR.—

(1) A complete study and investigation with respect to the desirability and feasibility of continuing the exclusion from income of certain prepaid group legal services benefits under section 120 of the I n t e r n a l Revenue Code of 1954 shall be made by the Secretary of Labor and by the Secretary of the Treasury. (2) The Secretary of Labor and the Secretary of the Treasury shall report to the President and the Congress with respect to the study and investigation conducted under paragraph (1) not later than December 31, 1980. (e) EFFECTIVE D A T E S. —

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1976, and ending before January 1, 1982. (2) NOTICE REQUIREMENT. — For purposes of section 120(d)(6)

of the I n t e r n a l Revenue Code of 1954, the time prescribed by the Secretary of the Treasury by regulations for giving the notice required by section 120(c)(4) of such Code shall not expire before the 90th d a y after the day on which regulations prescribed under such section 120(c)(4) first become final. (3) EXISTING PLANS.—

"Compliance date."

26 USC 170.

(A) For purposes of section 120 of the I n t e r n a l Revenue Code of 1954, a written group legal services plan which was in existence on June 4, 1976, shall be considered as satisfying the requirements of subsections (b) and (c) of such section 120 for the period ending with the compliance date (determined under subparagraph (B)). (B) COMPLIANCE DATE.—For purposes of this paragraph, the term "compliance date " means— (i) the date occurring 180 days after the date of the enactment of this Act, o r (ii) if later, in the case of a plan which is maintained pursuant to one or more agreements which the Secretary of Labor finds to be collective bargaining agreements, the earlier of December 31, 1981, or the date on which the last of the collective bargaining agreements relating to the plan terminates (determined without regard to any extension thereof agreed to after the date of the enactment of this Act). JSEC. 2135. SPECIAL RULE FOR CERTAIN CHARITABLE CONTRIBUTIONS OF INVENTORY AND OTHER PROPERTY. (a) IN GENERAL.—Section 170(e) (relating to certain contributions of ordinary income and capital gain property) is amended by a d d i n g at the end thereof the following new paragraph:

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