§ 80a-3a. — Protection of philanthropy under State law.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC80a-3a]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2D--INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER I--INVESTMENT COMPANIES
Sec. 80a-3a. Protection of philanthropy under State law
(a) Registration requirements
A security issued by or any interest or participation in any pooled
income fund, collective trust fund, collective investment fund, or
similar fund that is excluded from the definition of an investment
company under section 80a-3(c)(10)(B) of this title, and the offer or
sale thereof, shall be exempt from any statute or regulation of a State
that requires registration or qualification of securities.
(b) Treatment of charitable organizations
No charitable organization, or any trustee, director, officer,
employee, or volunteer of a charitable organization acting within the
scope of such person's employment or duties, shall be required to
register as, or be subject to regulation as, a dealer, broker, agent, or
investment adviser under the securities laws of any State because such
organization or person buys, holds, sells, or trades in securities for
its own account in its capacity as trustee or administrator of, or
otherwise on behalf of or for the account of one or more of the
following:
(1) a charitable organization;
(2) a fund that is excluded from the definition of an investment
company under section 80a-3(c)(10)(B) of this title; or
(3) a trust or other donative instrument described in section
80a-3(c)(10)(B) of this title, or the settlors (or potential
settlors) or beneficiaries of any such trusts or other instruments.
(c) State action
Notwithstanding subsections (a) and (b) of this section, during the
3-year period beginning on December 8, 1995, a State may enact a statute
that specifically refers to this section and provides prospectively that
this section shall not preempt the laws of that State referred to in
this section.
(d) Definitions
For purposes of this section--
(1) the term ``charitable organization'' means an organization
described in paragraphs (1) through (5) of section 170(c) or section
501(c)(3) of title 26;
(2) the term ``security'' has the same meaning as in section 78c
of this title; and
(3) the term ``State'' means each of the several States of the
United States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth
of the Northern Mariana Islands.
(Pub. L. 104-62, Sec. 6, Dec. 8, 1995, 109 Stat. 685.)
Codification
Section was enacted as part of the Philanthropy Protection Act of
1995, and not as part of the Investment Company Act of 1940 which
comprises this subchapter.
Effective Date
Section applicable as defense to any claim in administrative and
judicial actions pending on or commenced after Dec. 8, 1995, that any
person, security, interest, or participation of type described in Pub.
L. 104-62 is subject to the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, the Investment
Advisers Act of 1940, or any State statute or regulation preempted as
provided in this section, except as specifically provided in such
statutes, see section 7 of Pub. L. 104-62, set out as an Effective Date
of 1995 Amendment note under section 77c of this title.
