II 

118TH CONGRESS 

1ST SESSION S. 2694 

To amend title 36, United States Code, to revise the Federal charter for 

the Foundation of the Federal Bar Association. 

IN THE SENATE OF THE UNITED STATES 

JULY 27, 2023 

Mr. KENNEDY (for himself and Mr. WHITEHOUSE) introduced the following 

bill; which was read twice and referred to the Committee on the Judiciary 

A BILL 

To amend title 36, United States Code, to revise the Federal 

charter for the Foundation of the Federal Bar Association. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Foundation of the Fed5 eral Bar Association Charter Amendments Act of 2023’’. 

6 SEC. 2. ORGANIZATION. 

7 Section 70501 of title 36, United States Code, is 

8 amended— 

9 (1) by striking subsection (b); and 


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1 (2) by redesignating subsection (c) as sub2 section (b). 

3 SEC. 3. MEMBERSHIP. 

4 Section 70503 of title 36, United States Code, is 

5 amended— 

6 (1) by striking subsections (a) and (b) and in7 serting the following: 

8 ‘‘(a) ELIGIBILITY.—Except as provided in this chap9 ter, eligibility for membership in the corporation and the 

10 rights and privileges of members are as provided in the 

11 bylaws.’’; and 

12 (2) by redesignating subsection (c) as sub13 section (b). 

14 SEC. 4. GOVERNING BODY. 

15 Section 70504 of title 36, United States Code, is 

16 amended to read as follows: 

17 ‘‘§ 70504. Governing body 

18 ‘‘(a) BOARD OF DIRECTORS.—The board of directors 

19 is the governing body of the corporation. The board may 

20 exercise, or provide for the exercise of, the powers of the 

21 corporation. The board of directors and the responsibilities 

22 of the board are as provided in the bylaws. 

23 ‘‘(b) OFFICERS.—The officers and the election of the 

24 officers are as provided for in the bylaws.’’. 


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1 SEC. 5. RESTRICTIONS. 

2 Section 70507 of title 36, United States Code, is 

3 amended to read as follows: 

4 ‘‘§ 70507. Restrictions 

5 ‘‘(a) STOCK AND DIVIDENDS.—The corporation may 

6 not issue stock or declare or pay a dividend. 

7 ‘‘(b) POLITICAL ACTIVITIES.— 

8 ‘‘(1) IN GENERAL.—The activities, funds, in9 come, and property of the corporation may not be 

10 used to carry on political activity or attempt to in11 fluence legislation. 

12 ‘‘(2) NO CONTRIBUTION, SUPPORT, OR PARTICI13 PATION.—The corporation or a director or officer in 

14 the corporate capacity of the director of officer may 

15 not contribute to, support, or participate in any po16 litical activity or in any manner attempt to influence 

17 legislation. 

18 ‘‘(c) DISTRIBUTION OF INCOME OR ASSETS.— 

19 ‘‘(1) IN GENERAL.—The income or assets of the 

20 corporation may not inure to the benefit of, or be 

21 distributed to, a director, officer, or member during 

22 the life of the charter granted by this chapter. This 

23 subsection does not prevent the payment, in 

24 amounts approved by the board of directors, of— 

25 ‘‘(A) reasonable compensation; or 


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1 ‘‘(B) reimbursement for expenses incurred 

2 in undertaking the corporation’s business, to of3 ficers, directors, or members. 

4 ‘‘(2) RULE OF CONSTRUCTION.—This sub5 section shall not be construed to— 

6 ‘‘(A) prevent the award of a grant to a 

7 Federal Bar Association chapter of which an of8 ficer, director, or member may be a member; or 

9 ‘‘(B) prevent the payment of reasonable 

10 compensation to the corporation’s employees for 

11 services undertaken on behalf of the corpora12 tion. 

13 ‘‘(d) LOANS.—The corporation may not make a loan 

14 to a director, officer, member, or employee. 

15 ‘‘(e) IMMUNITY FROM LIABILITY.—Members and pri16 vate individuals are not liable for the obligations of the 

17 corporation. 

18 ‘‘(f) CLAIM OF GOVERNMENTAL APPROVAL OR AU19 THORITY.—The corporation— 

20 ‘‘(1) may not claim congressional approval or 

21 the authority of the United States Government for 

22 any of its activities; and 

23 ‘‘(2) may acknowledge this charter.’’. 


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1 SEC. 6. PRINCIPAL OFFICE. 

2 Section 70508 of title 36, United States Code, is 

3 amended by striking ‘‘the District of Columbia,’’ and in4 serting ‘‘a United States location decided by the board of 

5 directors and specified in the bylaws,’’. 

6 SEC. 7. SERVICE OF PROCESS. 

7 Section 70510 of title 36, United States Code, is 

8 amended to read as follows: 

9 ‘‘§ 70510. Service of process 

10 ‘‘The corporation shall comply with the law on service 

11 of process of the State or District in which it is incor12 porated.’’. 

13 SEC. 8. DEPOSIT OF ASSETS ON DISSOLUTION OR FINAL 

14 LIQUIDATION. 

15 Section 70512 of title 36, United States Code, is 

16 amended to read as follows: 

17 ‘‘§ 70512. Deposit of assets on dissolution or final liq18 uidation 

19 ‘‘On dissolution or final liquidation of the corpora20 tion, any assets of the corporation remaining after the dis21 charge of all liabilities shall be distributed— 

22 ‘‘(a) as provided by the board of directors; and 

23 ‘‘(b) in compliance with the charter and bylaws.’’. 

24 SEC. 9. DETERMINATION OF BUDGETARY EFFECTS. 

25 The budgetary effects of this Act, for the purpose of 

26 complying with the Statutory Pay-As-You-Go Act of 2010, 


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1 shall be determined by reference to the latest statement 

2 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

3 Act, submitted for printing in the Congressional Record 

4 by the Chairman of the Senate Budget Committee, pro5 vided that such statement has been submitted prior to the 

6 vote on passage. 

Æ 


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