I 
112TH CONGRESS 
2D SESSION 
H. R. 6667 
To establish the Financial Consumers Association to advance the rights and 
remedies available to consumers with respect to financial services trans-
actions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2012 
Mr. KUCINICH introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To establish the Financial Consumers Association to advance 
the rights and remedies available to consumers with re-
spect to financial services transactions, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Financial Consumers 
Association Act of 2012’’. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds that— 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(1) financial services consumers and depositors 
are an integral part of the financial system and are 
affected by the safety and soundness of the financial 
industry; 
(2) deceptive, illegal, and speculative financial 
practices have harmed public confidence in the integ-
rity and fairness of many United States financial in-
stitutions, and threaten the basic strengths of the 
United States economic system; 
(3) contributing to the loss of public confidence 
are perceptions of inadequate oversight and insuffi-
cient independence between financial institutions and 
their regulators; 
(4) major factors contributing to the recent fi-
nancial crisis include regulatory failures to ade-
quately police the financial services markets for 
crime, unfair or deceptive practices, fraud, lack of 
transparency, and mismanagement; 
(5) the financial industry has enjoyed virtually 
unlimited access to represent its interest before Con-
gress, the courts, and State and Federal regulators, 
while financial services consumers have had limited 
representation before Congress and financial regu-
latory entities; 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(6) the resources available for organized rep-
resentation of consumers in the financial industry 
need to be expanded so citizens can better monitor 
the performance of State and Federal agencies that 
regulate their financial institutions and participate 
in public policy debates regarding the oversight of 
these financial institutions; 
(7) the creation of a public purpose, democrat-
ically controlled, self-funded, nationwide membership 
association of financial services consumers is an ef-
fective way to enhance the representation of con-
sumers in the financial services industry and to meet 
the expanding information needs of consumers in the 
financial services market; 
(8) the requirement that informational and 
statutory inserts be included in the paper mailings 
and email correspondence, digital or other electronic 
means, of covered persons is essential to the cre-
ation, maintenance, and funding of such an associa-
tion; 
(9) the Federal Government has a substantial 
interest in the creation of a public purpose, demo-
cratically controlled, self-funded, nationwide mem-
bership association of financial services consumers to 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
enhance their representation and to effectively com-
bat unsound financial practices; 
(10) the creation of such an Association is not 
meant to substitute for, but augment, the activities 
of existing or future regulatory bodies whose sole or 
partial focus is the protection of financial services 
consumers; and 
(11) consumers have more complex financial 
choices today than ever before, but not enough infor-
mation with which to make those choices. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to establish a public purpose, nonprofit, 
democratically controlled, membership association of 
financial services consumers; 
(2) to give the Association a mandate to inform 
and represent financial services consumers, and to 
further the effective and vigorous oversight of cov-
ered persons; 
(3) to establish democratic rules of governance 
for the Association; and 
(4) to require any covered person to periodically 
include inserts concerning the Association within 
their statements and billing statements to financial 
services consumers. 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
SEC. 3. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) ASSOCIATION.—The term ‘‘Association’’ 
means the Financial Consumers Association estab-
lished in accordance with this Act. 
(2) ASSOCIATION DIRECTOR.—The terms ‘‘As-
sociation director’’ and ‘‘director’’ mean any person 
duly elected or appointed to the Association board of 
directors pursuant to this Act, except as the context 
otherwise requires. 
(3) INSERT CARRIER.—The term ‘‘insert car-
rier’’ includes any email, digital, or other electronic 
notice or paper deposit account statement which— 
(A) indicates the balance on a deposit ac-
count; or 
(B) involves an outstanding deposit ac-
count contract or agreement between an insured 
depository institution and a customer of such 
institution. 
(4) MEMBER.—The term ‘‘member’’ means any 
person who meets the requirements for membership 
in the Association, as set forth in this Act. 
(5) REGULATORY AGENCY.—The term ‘‘regu-
latory agency’’ means any governmental office, agen-
cy, department, or commission of the Federal Gov-
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
ernment, that regulates, monitors, directs, or gov-
erns publicly traded corporations, financial services, 
or consumer transactions. 
(6) REGULATORY
PROCEEDING.—The term 
‘‘regulatory proceeding’’ means any rulemaking, ad-
judication, or ancillary proceeding conducted by any 
governmental office, agency, department, or commis-
sion at the Federal, State, or local level, that affects 
any covered person. 
(7) STATUTORY INSERT.—The term ‘‘statutory 
insert’’ means any digital or printed statement, card, 
or envelope and statement combination, or a state-
ment, application, and pre-addressed business reply 
envelope used by the Association to solicit informa-
tion and contributions or membership fees from con-
sumers, financial services customers, and to explain 
the purpose, history, nature, activities, achievements, 
and membership criteria of the Association. 
(8) 
APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—The term ‘‘appropriate committees of Con-
gress’’ means the Committee on Banking, Housing, 
and Urban Affairs and the Subcommittee on Finan-
cial Services and General Government of the Com-
mittee on Appropriations of the Senate, and the 
Committee on Financial Services and the Sub-
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
committee on Financial Services and General Gov-
ernment of the Committee on Appropriations of the 
House of Representatives, and any successor com-
mittees, as may be constituted. 
(9) 
CAMPAIGN
CONTRIBUTION.—The 
term 
‘‘campaign contribution’’ means any money, good, 
service, credit, or other benefit provided or promised 
for the purpose of electing an Association Director. 
(10) 
CAMPAIGN
EXPENDITURE.—The 
term 
‘‘campaign expenditure’’ means any payment, use, 
distribution, or gift of money or anything of value 
made or promised for the purpose of electing an As-
sociation Director. 
(11) IMMEDIATE
FAMILY.—The term ‘‘imme-
diate family’’ means a person’s spouse and legal de-
pendents. 
SEC. 4. ESTABLISHMENT OF THE ASSOCIATION. 
(a) CHARTER.—There is authorized to be established 
a nonprofit corporation by the interim board of directors 
to be known as the ‘‘Financial Consumers Association’’. 
The Association shall be subject to the provisions of this 
Act, and, to the extent consistent with this Act, to the 
District of Columbia Nonprofit Corporations Act. The 
main office of the Association shall be located in Wash-
ington, DC. 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(b) NONGOVERNMENTAL STATUS.—The Association 
shall be a private corporation and shall not, for any pur-
pose, be considered to be a department, agency, or instru-
mentality of the United States Government. An officer or 
employee of the corporation shall not, for any purpose, be 
considered to be an officer or employee of the Federal Gov-
ernment. 
(c) REGIONAL AND LOCAL OFFICES.—The Associa-
tion may establish regional offices as needed, in any of 
the several States. 
(d) BYLAWS.—Except as provided in this Act and in 
the District of Columbia Nonprofit Corporations Act, the 
affairs of the Association shall be regulated as determined 
in the bylaws of the Association. 
(e) NONPROFIT, NONSTOCK STATUS.—The Associa-
tion chartered under this section— 
(1) shall be a nonprofit corporation; and 
(2) may not issue any shares of stock or other 
securities or pay any dividends. 
(f) MEMBERSHIP.—The membership of the Associa-
tion shall consist solely of individuals who— 
(1) are 16 years of age or older; and 
(2) have contributed the required annual mem-
bership fee to the Association. 
(g) MEMBERSHIP FEE.— 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(1) INITIAL FEE.—Until the end of the 180-day 
period beginning on the date of the first election of 
directors, the annual membership fee of the Associa-
tion shall be $10. 
(2) PERMANENT
MEMBERSHIP
FEES
DETER-
MINED BY BOARD OF DIRECTORS.—After the end of 
the 180-day period referred to in this subsection, the 
Association may, by vote of the board of directors, 
alter the annual membership fee. The board of direc-
tors shall adopt a reduced fee structure, offering re-
duced-cost membership fees for low-income popu-
lations and senior citizens. 
(h) POLITICAL CONTRIBUTIONS PROHIBITED.—The 
Association shall not make any contributions to any polit-
ical candidate or party, or to any national or State polit-
ical committee, as defined in the Federal Election Cam-
paign Act of 1971, or participate in or intervene in any 
political campaign on behalf of, or in opposition to, any 
candidate for public office. 
SEC. 5. AUTHORIZATION OF APPROPRIATIONS AND ALLOT-
MENTS OF GRANTS. 
There is authorized to be appropriated to the Bureau, 
for 
the 
purpose 
of 
establishing 
the 
Association, 
$5,000,000 for the fiscal year ending 1 year after the date 
of enactment of this Act. 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
SEC. 6. MISSION, DUTIES, AND POWERS OF THE ASSOCIA-
TION. 
(a) MISSION.—The Association shall advance the 
rights and remedies available to consumers with respect 
to financial services, by developing initiatives to reduce the 
use of dangerous features in financial products and serv-
ices, and to improve the flow of accurate information from 
covered persons to consumers. 
(b) DUTIES.—The duties of the Association shall 
be— 
(1) to inform, educate, and advise consumers 
about the actions of covered persons; 
(2) to represent and promote the interests of 
consumers in financial services, collectively, and, 
when necessary, to negotiate on behalf of financial 
services consumers, individually, with respect to cov-
ered persons; 
(3) to take affirmative measures to encourage 
membership by low- and moderate-income and mi-
nority consumers, and to disseminate information 
and advice to consumers; 
(4) to inform, insofar as possible, consumers 
about the mission of the Association, including the 
procedures for obtaining membership in the Associa-
tion; 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(5) to provide consumers with information 
about how initiatives of covered person will affect 
consumers; 
(6) to monitor the availability and quality of fi-
nancial services to low- and moderate-income con-
stituencies and the elderly; and 
(7) to develop data to assist financial services 
consumers in making informed decisions in the mar-
ketplace. 
(c) POWERS.—In addition to the rights and powers 
provided by other provisions of this Act, the Association 
shall— 
(1) represent the interests of consumers in gen-
eral before Federal regulatory agencies, legislative 
bodies, the courts, and in other public forums; 
(2) initiate, intervene as a party, or otherwise 
participate on behalf of consumers in any regulatory 
proceeding that the Association reasonably deter-
mines may affect the interests of consumers; 
(3) conduct, support, and assist research, sur-
veys, and investigations in financial services con-
sumer matters; 
(4) maintain up-to-date membership rolls, and 
to keep them in confidence to the extent required by 
the provisions of this Act; 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(5) contract for services which cannot reason-
ably be performed by its employees; and 
(6) solicit and accept gifts, loans, grants, or 
other aid in order to support activities concerning 
the interests of financial services consumers, except 
that the Association may not accept gifts, loans, or 
other aid from any financial services providers or 
from any director, employee, agent, or member of 
the immediate family of a director, employee, or 
agent of any covered person. 
SEC. 7. INSERT AND NOTICE PROVISIONS. 
(a) INCLUSION IN STATEMENTS OF COVERED PER-
SONS.— 
(1) IN GENERAL.—Each covered person shall 
include, or cause its agent to prominently include, a 
statutory insert or an Association insert in quarterly 
mailings to its customers each year. 
(2) STATUTORY INSERT.—The Association shall 
have the right to have statutory inserts prominently 
included in the paper mailings to the customers of 
each covered person once each calendar quarter. The 
Association shall also have the right to have covered 
persons send the information contained in the statu-
tory insert to financial services consumers once each 
calendar quarter via email, digital or other electronic 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
means. The Association shall only pay the reason-
able incremental costs of the email, digital, or elec-
tronic distribution of such information. 
(3) ASSOCIATION INSERTS.— 
(A) IN GENERAL.—In addition, the Asso-
ciation shall have the right to include in the 
mailings and via email, digital or other elec-
tronic means, referred to in paragraph (2) once 
each calendar quarter, an insert that it pre-
pares and furnishes to any institution required 
to carry a statutory insert. 
(B) LIMITATION.—An insert furnished by 
the Association shall be limited to— 
(i) soliciting information and contribu-
tions or membership fees from financial 
services consumers; and 
(ii) explaining— 
(I) the purpose, history, nature, 
activities, and achievements of the As-
sociation; 
(II) that the Association member-
ship is open to any resident of the 
United States who is 16 years of age 
or older; 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(III) that the Association is not 
connected to any covered person; 
(IV) that the Association is a 
nonprofit association directed by its 
financial services consumer members; 
(V) the procedure for contrib-
uting to or becoming a member of the 
Association; and 
(VI) the yearly membership fee. 
(b) FEDERAL TRADE COMMISSION OVERSIGHT.— 
Any covered person may, if it believes that the contents 
of an insert are false or misleading, submit the insert to 
the Federal Trade Commission for review. The Federal 
Trade Commission shall review the insert and make a de-
termination promptly, but in no event later than 21 cal-
endar days after receipt of the insert. The Federal Trade 
Commission may disapprove the insert for mailing if it 
finds that the insert is false or misleading, or contains 
information not permitted by this section. 
(c) CONTENT OF STATUTORY INSERTS.—Each statu-
tory insert required by this Act shall contain— 
(1) a written statement of the following infor-
mation: 
‘‘(A) The Financial Consumers Association 
is a financial services consumer membership or-
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
ganization established under Federal law to in-
form and represent financial services con-
sumers. 
‘‘(B) The Association will work on behalf 
of financial services consumers to prevent cor-
porate fraud, deceptive and criminal business 
practices, and to ensure the protection of retire-
ment funds and investments. 
‘‘(C) The Association provides financial 
services consumers with information and advice 
on a range of consumer issues. 
‘‘(D) The Association also represents fi-
nancial services consumers before regulatory 
agencies and legislative bodies. 
‘‘(E) The Association is a democratically 
controlled consumer membership organization. 
‘‘(F) Although the Association has been es-
tablished under Federal law, as a consumer 
membership organization, the Association is pri-
marily supported by membership fees, not pub-
lic funds. Thus the Financial Consumers Asso-
ciation depends on its membership base for 
funding to undertake its information and rep-
resentation activities. 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
‘‘(G) Anyone who is 16 years of age or 
older may become a member of the Association 
by paying the annual membership fee. The 
amount of the annual membership fee shall be 
determined annually by the Association. 
‘‘(H) You may become a member simply by 
filling out the attached application and mailing 
it and the membership fee to the Financial 
Consumers Association in the attached pre-ad-
dressed envelope.’’; 
(2) an application for Association membership, 
which requests the name and address of the appli-
cant, and indicates the annual membership fee; and 
(3) a pre-addressed business reply envelope for 
mailing the application and membership fee to the 
Association. 
(d) OTHER REQUIREMENTS APPLICABLE TO STATU-
TORY INSERTS.—With respect to a statutory insert re-
quired by this Act— 
(1) the statement, application, and pre-ad-
dressed business reply envelope specified in this Act 
shall be presented to the customer as a single docu-
ment (except that the document may be separable 
into different parts by tearing along perforated 
lines); 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(2) the statement and application shall be 
printed in at least 10-point type; and 
(3) the Association shall pay the cost of print-
ing and placement of the statutory insert in all ap-
propriate mailings, but shall not pay any postage 
costs if the insert weighs less than 0.35 ounces. 
SEC. 8. INTERIM BOARD. 
(a) ESTABLISHMENT OF INTERIM BOARD.—Members 
of the interim board of directors of the Association shall 
be appointed not later than 6 months after the date of 
enactment of this Act, as follows: 
(1) 3 members shall be appointed by the Presi-
dent of the United States. 
(2) 3 members shall be appointed by the Speak-
er of the House of Representatives. 
(3) 3 members shall be appointed by the Presi-
dent Pro Tempore of the Senate. 
(4) 1 member shall be appointed by the Minor-
ity Leader of the House of Representatives. 
(5) 1 member shall be appointed by the Minor-
ity Leader of the Senate. 
(b) MEMBER CRITERIA.—Individuals considered for 
appointment to the interim board shall, to the extent pos-
sible, represent different regions of the United States, and 
represent categories of citizens’ organizations including— 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(1) consumer groups; 
(2) organizations representing low-income per-
sons; 
(3) labor unions; 
(4) civil rights groups; 
(5) neighborhood groups; and 
(6) elderly groups. 
(c) ELIGIBILITY.—To qualify for nomination or ap-
pointment as an interim director of the Association rep-
resenting a designated category of citizens’ organizations, 
an individual shall be an active officer, employee, or mem-
ber of a citizens’ organization within such category or pre-
viously have been an officer or employee of 1 or more such 
citizens’ organizations within such category for a cumu-
lative period of at least 2 years. 
(d) DUTIES OF INTERIM BOARD.—The interim board 
of directors of the Association shall— 
(1) not later than 60 days after the date of ap-
pointment of all members, incorporate the Associa-
tion under the laws of the District of Columbia, sub-
ject to the provisions and limitations of this Act; 
(2) manage the affairs of the Association until 
the first elected board of directors takes office; 
(3) inform the public of the existence, nature, 
and purpose of the Association, and encourage such 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
persons to join the Association, participate in its ac-
tivities, and contribute to the Association; 
(4) adopt procedures and standards, consistent 
with the requirements of this Act, for the nomina-
tion and election of the first elected board of direc-
tors of the Association; 
(5) make all necessary preparations for the first 
election of the board of directors of the Association, 
oversee the election campaign, and tally the votes; 
(6) conduct meetings of the interim board of di-
rectors at least once every 3 months; 
(7) keep minutes, financial books, and records 
which shall reflect the acts and transactions of the 
interim board of directors; and 
(8) employ such interim staff as the interim 
board of directors deem necessary to carry out their 
responsibilities under this Act. 
(e) APPLICABILITY OF CERTAIN OTHER PROVISIONS 
OF THIS ACT.—Members of the interim board of directors 
shall be subject to the requirements of the applicable pro-
visions of this Act. 
(f) LIMITATION ON AUTHORITY TO APPEAR BEFORE 
OTHER BODIES.—The interim board of directors shall not 
engage in representation or intervention on behalf of fi-
nancial services consumers, except to the extent necessary 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
to maintain or exercise the powers granted and the duties 
imposed upon interim directors by this Act. 
(g) CONDUCT FIRST GENERAL ELECTION.— 
(1) IN GENERAL.—Once the membership of the 
Association reaches 50,000, or within 18 months of 
the date of the appointment of the last interim di-
rector, whichever occurs first, the interim board of 
directors shall set a date for the first general elec-
tion of the board of directors, and shall promptly no-
tify each member of the Association. 
(2) TIMELY
ELECTION
REQUIREMENT.—The 
date set for the election shall be not more than 90 
days after notification as provided in this Act. 
(3) EXCEPTION.—Notwithstanding the provi-
sions of this Act, no election shall be held in an elec-
tion district unless there are at least 500 residents 
of any such district who are Association members. 
SEC. 9. DELEGATES. 
(a) IN GENERAL.—Members of the Association shall 
have duly elected representatives who shall be elected in 
accordance with the provisions of this Act. 
(b) ONE DELEGATE TO BE ELECTED FROM EACH 
DISTRICT.—1 delegate shall be elected by the Association 
members from each Association election district, except 
that an election shall not take place in an election district 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
if there is no candidate who has satisfied the qualification 
requirements of this Act. 
(c) ELECTION DISTRICTS.— 
(1) IN GENERAL.—Each State of the United 
States shall be considered an Association election 
district. The District of Columbia shall also be con-
sidered an Association election district. 
SEC. 10. ELECTIONS OF DELEGATES. 
(a) VOTING STANDARD.—Each member of the Asso-
ciation shall be entitled to cast 1 vote for a candidate for 
a delegate to represent such member’s district. Voting 
shall be by secret mail ballot. 
(b) ELIGIBILITY STANDARDS FOR NOMINATION AS A 
DELEGATE.—To qualify for nomination as a candidate for 
election as a delegate of the Association, an individual 
shall— 
(1) be a member of the Association and a resi-
dent of the election district that such individual 
seeks to represent; 
(2) submit to the Association, not less than 60 
days and not more than 120 days before the elec-
tion, a nomination petition signed by at least 25 As-
sociation members from the election district that 
such individual seeks to represent; 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(3) submit to the Association the statements re-
quired by this Act; and 
(4) satisfy all other requirements of this Act 
and any applicable bylaws of the Association. 
(c) DISTRIBUTION OF ELECTION MATERIAL.— 
(1) IN GENERAL.—The Association shall mail 
to each member the following documents concerning 
duly nominated candidates for election as a delegate: 
(A) An official ballot listing all such can-
didates from the member’s election district. 
(B) The candidate’s statement required by 
this Act for each such candidate from the mem-
ber’s election district. 
(2) SUMMARY AND COSTS.—The delegate sum-
maries shall have a uniform format and shall provide 
information on the same characteristics for each 
candidate. The costs for all mailings described in 
this Act shall be borne by the Association. 
(d) LIMITATION ON CAMPAIGN EXPENDITURES.—No 
candidate for election as a delegate or director shall incur 
campaign expenditures for any such election in an amount 
greater than the amount determined by multiplying the 
number of members in the candidate’s election district by 
150 percent of the cost of postage for a 1-ounce 1st class 
mailing. 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(e) LIMITATION ON USE OF CAMPAIGN CONTRIBU-
TIONS.—No candidate for election as a delegate or to the 
board of directors may use any campaign contribution for 
any purpose other than campaign expenditures. Any un-
used contributions shall be donated to the Association not 
later than 60 days after the election. 
(f) LIMITATION ON AMOUNT OF CAMPAIGN CON-
TRIBUTIONS.—No candidate for election as a delegate 
shall accept more than $250 in campaign contributions 
from any one contributor in any election. 
(g) PROHIBITION ON ACCEPTANCE OF CERTAIN CON-
TRIBUTIONS.—A candidate for election as a delegate may 
not accept political action committee contributions or 
other campaign contributions the board of directors deter-
mines to be unacceptable. 
(h) DUTIES AND POWERS OF DELEGATES.—Each 
delegate shall have the following duties and powers: 
(1) ANNUAL SURVEY.—To survey Association 
members in the delegate’s election district at least 1 
time each year to ascertain members’ concerns using 
written surveys provided by the Association up to 50 
percent of the survey questions in which may be pro-
vided by the delegate. 
(2) LIAISON.—To act as a liaison between the 
board of directors and the members in the delegate’s 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
election district, including transmitting any com-
ments, writings, and suggestions concerning the As-
sociation from members in the delegate’s election 
district to the board of directors and informing such 
members of the board’s response to their statements. 
(3) OFFICE PLANNING.—To develop plans for 
the organization of regional and local offices. 
(4) VOTING ON CHANGES IN ARTICLES OF IN-
CORPORATION, BYLAWS, AND MAJOR POLICIES.—To 
vote at the annual meeting of delegates and at spe-
cial meetings of delegates called by the board of di-
rectors on amendments to the bylaws or the articles 
of incorporation or on matters involving changes in 
major policies or operations of the Association. 
(5) APPROVAL OF RULES.—To approve rules 
proposed by the board of directors for the nomina-
tion and election of the directors. 
(6) VOTING AT ANNUAL AND SPECIAL MEET-
INGS.—To vote on other items submitted to dele-
gates by the board of directors at annual and special 
meetings. 
(7) OTHER
DUTIES
AND
POWERS.—To carry 
out all other duties and exercise all other powers ac-
corded to delegates under this Act. 
(i) ANNUAL MEETINGS.— 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(1) TIME AND PLACE.—An annual meeting of 
delegates shall be held in the month of July on a 
date and in a manner determined by the board of di-
rectors at least 6 months in advance of the meeting. 
(2) PROCEDURES.— 
(A) VOTING.—All delegates shall be eligi-
ble to attend, participate in, and vote in the an-
nual meeting of delegates. 
(B) QUORUM.—A majority of the delegates 
shall constitute a quorum. 
(C) ONE PERSON; ONE VOTE.—Each dele-
gate shall have 1 vote at such meetings. 
(D) MAJORITY VOTE.—A majority vote of 
the delegates shall indicate approval by the del-
egates of any items submitted for the consider-
ation of the delegates. 
(E) ABSENTEE VOTING.—The first elected 
board of directors shall establish procedures for 
absentee voting. 
(3) AGENDA.—Items may be placed on the 
meeting’s agenda by any of the following methods: 
(A) By request of any director or delegate 
not less than 5 days and not more than 4 
months in advance of the date of such meeting. 
(B) By petition which— 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(i) contains the valid signatures of at 
least 5 percent of the members in any dele-
gate’s election district or at least 1 percent 
of the total membership; and 
(ii) was filed with the board of direc-
tors not less than 5 days and not more 
than 4 months in advance of the date of 
such meeting. 
(4) FORM OF MEETING.—The form of the an-
nual meeting of delegates shall be as provided in the 
laws of the District of Columbia regarding nonprofit 
corporations. 
(5) OPEN MEETINGS.— 
(A) MEETINGS OPEN TO PUBLIC.—The an-
nual meeting of delegates shall be open to the 
public. 
(B) 
MEMBERS
OPPORTUNITY
TO
BE 
HEARD.—Members shall be given a reasonable 
opportunity at any annual meeting to present 
any comment, criticism, or suggestion con-
cerning the Association, but members may not 
vote at such meetings. 
(6) MINUTES.—Complete minutes of each an-
nual meeting shall be kept and shall be distributed 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
to 1 Federal depository library in each election dis-
trict. 
(j) TERMS AND CONDITIONS OF OFFICE.— 
(1) IN GENERAL.—The term of office for any 
delegate shall be 3 years. 
(2) MAXIMUM NUMBER OF TERMS.—No dele-
gate shall serve more than 2 terms. 
(3) SERVICE WITHOUT PAY OTHER THAN REIM-
BURSEMENT FOR EXPENSES.—Delegates of the As-
sociation shall serve without compensation, except 
that delegates may be reimbursed for actual ex-
penses incurred by them in the performance of their 
duties. 
(k) VACANCY.— 
(1) IN GENERAL.—If a vacancy occurs in any 
position of delegate, the board of directors shall ap-
point, as the successor for the balance of the term, 
the person who— 
(A) meets the requirements specified in 
this Act; and 
(B) had the highest vote total in the most 
recent delegate election from the district in 
which such vacancy occurred of all candidates 
(who meet the requirements specified in this 
Act) other than the candidate whose failure to 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
continue to serve as delegate created the va-
cancy. 
(2) 
ALTERNATIVE
METHOD
OF
APPOINT-
MENT.—If any vacancy referred to in paragraph (1) 
cannot be filled in the manner described in such 
paragraph, the board of directors, by vote of not less 
than 2⁄3 of all directors, shall appoint within 60 days 
of the occurrence of the vacancy a successor from 
the same election district for the remainder of the 
current term. The person appointed by the board of 
directors shall meet the qualifications for delegate. 
(l) RECALL.—Any delegate shall be removed from of-
fice by the board of directors if not less than 40 percent 
of the members from the delegate’s election district who 
voted in the last election have signed a petition for recall. 
SEC. 11. BOARD OF DIRECTORS. 
(a) MANAGEMENT OF ASSOCIATION.—The affairs of 
the Association shall be managed by a board of directors, 
which shall be elected by the delegates of the Association 
in accordance with the provisions of this Act. The board 
of directors shall consist of 17 members. Twelve directors 
shall constitute a quorum. 
(b) ONE PERSON; ONE VOTE.—Each director shall 
have one vote on the board of directors. 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(c) TERMS OF OFFICE.—The term of office for a di-
rector shall be 3 years, except as provided otherwise in 
this Act, and no director shall serve more than 2 consecu-
tive terms. 
(d) POWERS AND DUTIES OF BOARD.—The board of 
directors, shall, in addition to its other responsibilities 
under this Act— 
(1) conduct meetings of the board of directors 
at least once every 6 months, which shall be open to 
the public, unless the board of directors by a major-
ity votes to adjourn into executive session; 
(2) conduct an annual delegate meeting; 
(3) limit matters discussed in executive session 
only to personnel actions, potential or pending civil 
or criminal proceedings involving the Association, 
and material which would result in an unwarranted 
invasion of personal privacy if discussed in open ses-
sions; 
(4) keep minutes, financial records, and other 
records which shall reflect the acts and transactions 
of the board of directors; 
(5) cause the financial books of the Association 
to be audited by a qualified certified public account-
ant at least once each fiscal year; 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(6) prepare quarterly statements and an annual 
report indicating the substantive activities and fi-
nancial operations of the Association; 
(7) approve the bylaws of the Association, con-
sistent with the requirements of this Act; 
(8) make available to the public and include on 
the Association’s web page, documents prepared by 
or filed with the Association within the preceding 5 
years, including— 
(A) minutes of the board of directors meet-
ing; 
(B) director’s or executive director’s finan-
cial statements; 
(C) candidates’ financial statements; and 
(D) candidates’ personal statements; and 
(9) conduct 4 mailings each year to the mem-
bership of the Association, to inform the member-
ship about the work of the Association and to con-
duct the business of the Association. 
(e) ELECTION OF OFFICERS.—At the first regular 
meeting of the board of directors at which a majority of 
its members are present, subsequent to the installation of 
new directors following each annual election, the board 
shall elect by majority vote of directors present and voting, 
and from among the directors, a president, a vice presi-
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
dent, a secretary, and a treasurer. The board may also 
elect a comptroller and such other officers as it deems nec-
essary. 
(f) EXECUTIVE DIRECTOR OF ASSOCIATION.— 
(1) IN GENERAL.—The board of directors shall 
hire and supervise an executive director for the As-
sociation. 
(2) DUTIES
OF
EXECUTIVE
DIRECTOR.—The 
executive director shall implement the policies estab-
lished by the board of directors, employ and dis-
charge Association employees, and manage the of-
fices, facilities, and employees of the Association. 
(3) ELIGIBILITY
STANDARDS.—Any applicant 
for the position of executive director, and each exec-
utive director, shall satisfy the requirements for di-
rector eligibility established by this Act. 
(4) TERM LIMIT.—The executive director shall 
only be eligible to serve as an employee of the Asso-
ciation for 6 consecutive years. After such 6-year 
term, the executive director shall be prohibited from 
serving as an agent, consultant, attorney, account-
ant, or subcontractor for the Association, and shall 
be ineligible to receive any monetary compensation 
from the Association. 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with
(g) NO COMPENSATION FOR ASSOCIATION DIREC-
TORS.—A member of the board of directors of the Associa-
tion may not receive any compensation for his or her serv-
ices as a director, but shall be reimbursed for wages actu-
ally lost in an amount not to exceed $160 per day, and 
for necessary expenses including travel expenses incurred 
in the discharge of Association duties. 
(h) BONDING REQUIREMENT FOR STAFF.—Any di-
rector or staff of the Association eligible to receive, handle, 
or disburse funds on behalf of the Association shall be 
bonded. The cost of such bonds shall be paid for by the 
Association. 
(i) ANNUAL FINANCIAL STATEMENTS
OF DIREC-
TORS.—Each director and the executive director of the As-
sociation shall file annually with the board of directors a 
director’s financial statement, which shall include the 
same information required by this Act for members seek-
ing election as delegates or directors of the Association. 
(j) ANNUAL MEETINGS.— 
(1) IN GENERAL.—An annual meeting of mem-
bers of the Association shall be held in the month 
of July, on a date and at a place within the United 
States to be determined by the board of directors at 
least 6 months in advance of the meeting. 
VerDate Mar 15 2010 
03:42 Dec 21, 2012
Jkt 029200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H6667.IH
H6667
smartinez on DSK6TPTVN1PROD with