Foundation of the Federal Bar Association Charter Amendments Act of 2016

To amend title 36, United States Code, to revise the Federal charter for the Foundation of the Federal Bar Association. 1. Short title This Act may be cited as the Foundation of the Federal Bar Association Charter Amendments Act of 2016 2. Organization Section 70501 of title 36, United States Code, is amended by striking subsection (b) and redesignating subsection (c) as subsection (b). 3. Membership Section 70503 of title 36, United States Code, is amended— (1) by striking subsections (a) and (b) and inserting the following: (a) Eligibility Except as provided in this chapter, eligibility for membership in the corporation and the rights and privileges of members are as provided in the bylaws. ; (2) by redesignating subsection (c) as subsection (b); and (3) by adding at the end the following: (c) Nondiscrimination The terms of membership may not discriminate on the basis of race, color, religion, sex, disability, age, sexual orientation, or national origin. . 4. Governing body Section 70504 of title 36, United States Code, is amended to read as follows: 70504. Governing body (a) Board of directors The board of directors is the governing body of the corporation. The board may exercise, or provide for the exercise of, the powers of the corporation. The board of directors and the responsibilities of the board are as provided in the bylaws. (b) Officers The officers and the election of the officers are as provided for in the bylaws. (c) Nondiscrimination The requirements for serving as a director or officer may not discriminate on the basis of race, color, religion, sex, disability, age, sexual orientation, or national origin. . 5. Restrictions Section 70507 of title 36, United States Code, is amended to read as follows: 70507. Restrictions (a) Stock and dividends The corporation may not issue stock or declare or pay a dividend. (b) Political activities The corporation or a director or officer in his or her corporate capacity may not contribute to, support, or participate in any political activity or in any manner attempt to influence legislation. (c) Distribution of income or assets The income or assets of the corporation may not inure to the benefit of, or be distributed to, a director, officer, or member during the life of the charter granted by this chapter. This subsection does not prevent the payment, in amounts approved by the board of directors, of— (1) reasonable compensation; or (2) reimbursement for expenses incurred in undertaking the corporation’s business, to officers, directors, or members. This subsection does not prevent the award of a grant to a Federal Bar Association chapter of which an officer, director, member may be a member. This subsection also does not prevent the payment of reasonable compensation to the corporation’s employees for services undertaken on behalf of the corporation. (d) Loans The corporation may not make a loan to a director, officer, member, or employee. (e) Immunity from liability Members and private individuals are not liable for the obligations of the corporation. (f) Claim of governmental approval or authority The corporation may not claim congressional approval or the authority of the United States Government for any of its activities; it may, however, acknowledge this charter. . 6. Principal office Section 70508 of title 36, United States Code, is amended by striking the District of Columbia, a United States location decided by the board of directors and specified in the bylaws, 7. Service of process Section 70510 of title 36, United States Code, is amended to read as follows: 70510. Service of process The corporation shall comply with the law on service of process of the State or District in which it is incorporated. . 8. Deposit of assets on dissolution or final liquidation Section 70512 of title 36, United States Code, is amended to read as follows: 70512. Deposit of assets on dissolution or final liquidation On dissolution or final liquidation of the corporation, any assets of the corporation remaining after the discharge of all liabilities shall be distributed as provided by the board of directors, but in compliance with the charter and bylaws. .

Summary: Foundation of the Federal Bar Association Charter Amendments Act of 2016 This bill revises the federal charter for the Foundation of the Federal Bar Association (the corporation) to remove provisions that declare the corporation to be incorporated and domiciled in the District of Columbia. Its principal office may be in any U.S. location. The procedures for membership of the National Council of the Federal Bar Association and the election of the board of directors and officers are to be as provided for in the bylaws instead of under charter requirements. But the bill prohibits the terms of membership, or the requirements for serving as a director or officer, from discriminating on the basis of race, color, religion, sex, disability, age, sexual orientation, or national origin. Prohibitions on the distribution of income or assets to a director, officer, or member shall not prevent: (1) board-approved payments of reasonable compensation or reimbursement for expenses incurred in undertaking the corporation's business; (2) the award of a grant to a Federal Bar Association chapter of an officer, director, or member; or (3) payment of reasonable compensation to the corporation's employees for services undertaken on the corporation's behalf. The prohibition on loans to directors or officers is expanded to include members or employees. The bill removes a provision that makes directors or officers jointly and severally liable to the corporation for assenting to a loan to a director or officer. The corporation may not claim congressional approval or the authority of the federal government for its activities. On dissolution or final liquidation of the corporation, any assets remaining after the discharge of all liabilities shall be distributed as provided by the board of directors in compliance with the charter and bylaws. (Currently, any remaining assets shall be deposited in the Treasury.)