SECTION 1. Exemption of qualified charitable organizations from regulation as commodity pool operators.

(1) by striking “Sec. 4m. (1) It” and inserting the following:

(2) in the second sentence—

(A) by striking “The provisions of this section” and inserting the following:

“(2) EXCEPTIONS.—

“(A) COMMODITY TRADING ADVISORS.—

“(i) IN GENERAL.—Subject to clause (ii) and except as provided in subparagraphs (B) and (C), this section”;

(B) by striking “commodity trading advisor who is a (1) dealer” and inserting the following: “commodity trading advisor who is a—

“(I) dealer”;

(C) by striking “or (2) nonprofit” and inserting the following: “; or

“(II) nonprofit”;

(D) by striking “Commodity Futures Trading Commission Act of 1974; if the advice by the person described in clause (1) or (2) of this sentence” and inserting the following: “Commodity Futures Trading Commission Act of 1974.

“(ii) APPLICABILITY.—Clause (i) only applies if the advice by the person described in subclause (I) or (II) of clause (i)”;

(E) by striking “business:” and inserting “business.”; and

(F) by striking “Provided, That such person shall be subject to proceedings under section 14 of this Act.” and inserting the following:

“(B) COMPLAINTS AGAINST EXCEPTED PERSONS.—A person described in subclause (I) or (II) of clause (i) shall be subject to proceedings under section 14.

“(C) CHARITABLE ORGANIZATIONS.—This section shall not apply to any commodity trading advisor or commodity pool operator that is—

“(i) a charitable organization, as defined in section 3(c)(10)(D)(iii) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(c)(10)(D)(iii)), or a trustee, director, officer, employee, or volunteer of such a charitable organization acting within the scope of the employment or duties of the person with the organization, whose trading advice is provided only to, or with respect to, one or more of—

“(I) any such charitable organizations; or

“(II) an investment trust, syndicate, or similar form of enterprise excluded from the definition of ‘investment company’ pursuant to section 3(c)(10) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(c)(10)); or

“(ii) any plan, company, or account described in section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(c)(14)), any person or entity who establishes or maintains such a plan, company, or account, or any trustee, director, officer, employee, or volunteer for any of the foregoing plans, persons, or entities acting within the scope of the employment or duties of the person with the organization, whose trading advice is provided only to, or with respect to, any investment trust, syndicate, or similar form of enterprise excluded from the definition of ‘investment company’ pursuant to section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(c)(14)).”;

(3) by striking “(2) Nothing in this Act” and inserting the following:

“(b) Relationship to other law.—Nothing in this Act”;

(4) by striking “(3) Exception.—” and all that follows through “Paragraph (1) shall not apply” and inserting the following:

“(c) Exception.—

“(1) IN GENERAL.—Subsection (a) shall not apply”;

(5) by striking “(B) Engaged primarily.—For purposes of subparagraph (A)” and inserting the following:

“(2) ENGAGED PRIMARILY.—For purposes of paragraph (1)”;

(6) by striking “(C) Commodity interests.—For purposes of this paragraph” and inserting the following:

“(3) COMMODITY INTERESTS.—For purposes of this subsection”; and

(7) by adding at the end the following:

“(d) Disclosure concerning exempted charitable organizations.—A commodity trading advisor or commodity pool operator that is an organization or person described in subsection (a)(2)(C)(i) to or of any investment trust, syndicate, or similar form of enterprise excluded from the definition of ‘investment company’ pursuant to section 3(c)(10)(B) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(c)(10)(B)) shall provide disclosure in accordance with section 7(e) of that Act (15 U.S.C. 80a–7(e)).”.