CLINTON Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Contributions Legally Interdicted 
from Noncitizens To Our Nonprofits Act of 2016'' or as the ``CLINTON 
Act of 2016''.

SEC. 2. CERTAIN CHARITABLE ORGANIZATIONS PROHIBITED FOR ACCEPTING 
              CONTRIBUTIONS FROM PERSONS CONNECTED TO FOREIGN 
              GOVERNMENTS.

    (a) In General.--Section 501 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(s) Prohibition on Acceptance of Contributions From Persons 
Connected to Foreign Governments by 501(c)(3) Organizations Established 
by Certain Federal Officials.--
            ``(1) Termination of tax-exempt status.--A Federal official 
        organization shall not be treated as described in subsection 
        (c)(3) with respect to any period after the date on which such 
        organization knowingly or willingly accepts or solicits any 
        contribution from any person connected to a foreign government. 
        If a Federal official organization accepts a contribution from 
        any person and learns that such person is connected to a 
        foreign government after such acceptance, such organization 
        shall not be treated for purposes of this subsection as 
        knowingly or willingly accepting such contribution from such 
        person if such contribution is returned to such person not 
        later than the date which is 30 days after the date on which 
        the organization so learns the status of such person.
            ``(2) Forfeiture of prohibited contributions.--There is 
        hereby imposed a tax on any Federal official organization which 
        knowingly or willingly accepts any contribution from any person 
        connected to any foreign government in an amount equal to the 
        amount of such contribution.
            ``(3) Federal official organization.--For purposes of this 
        subsection, the term `Federal official organization' means any 
        organization described in subsection (c)(3) (or which would be 
        so described without regard to paragraph (1)) if one or more 
        Federal officials established, control, or actively participate 
        in the management of, such organization. For purposes of the 
        preceding sentence, service in a merely honorary capacity shall 
        note be treated as control or active participation in 
        management.
            ``(4) Federal official.--For purposes of this subsection, 
        the term `Federal official' means any individual who--
                    ``(A) at any time prior the date of the 
                contribution referred to in paragraph (1) or (2), is 
                serving or has served as President or Vice-President, 
                or
                    ``(B) at any time during the 20-year period ending 
                on the date of the contribution referred to in 
                paragraph (1) or (2), holds or has held any of the 
                following positions in the Federal government:
                            ``(i) Any Member of Congress (including any 
                        Delegate and Resident Commissioner).
                            ``(ii) Any officer or employee appointed by 
                        the President, Vice-President, or any agency 
                        head and subject to confirmation by the Senate.
                            ``(iii) Any of the following positions 
                        which are held at the pleasure of the 
                        President:
                                    ``(I) Assistant to the President.
                                    ``(II) Chief of staff.
                                    ``(III) National security advisor.
                                    ``(IV) Deputy chief of staff.
                            ``(iv) Any Federal judge, without regard to 
                        the article of the Constitution pursuant to 
                        which appointed.
            ``(5) Persons connected to foreign government.--For 
        purposes of this subsection, the term `person connected to a 
        foreign government' means the following:
                    ``(A) Any department, agency, or instrumentality of 
                a foreign government.
                    ``(B) Any public international organization (as 
                defined in section 104 of the Foreign Corrupt Practices 
                Act of 1977 (15 U.S.C. 78dd-2)).
                    ``(C) Any officer or employee of any entity 
                described in subparagraph (A) or (B).
                    ``(D) Any individual who was described in 
                subparagraph (C) at any time during the 20-year period 
                ending on the date on which the contribution from such 
                individual is accepted or solicited.
                    ``(E) Any person acting in an official capacity for 
                or on behalf of any entity described in subparagraph 
                (A) or (B).
                    ``(F) Any person belonging to a ruling or royal 
                family by virtue of sanguinity or marriage.
                    ``(G) Any person related within four degrees of 
                consanguinity to a person described in subparagraph (E) 
                or (F).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after the date of the enactment of this Act in 
taxable years ending after such date.

Summary: Contributions Legally Interdicted from Noncitizens To Our Nonprofits Act of 2016 or the CLINTON Act of 2016  This bill amends the Internal Revenue Code to prohibit a federal official organization from being treated as a tax-exempt organization under section 501(c)(3) for any period after the date on which the organization knowingly or willingly accepts or solicits any contribution from any person connected to a foreign government.  A tax-exempt organization is a &quot;federal official organization&quot; if one or more current or former specified federal officials established, control, or actively participate in the management of the organization.  If the organization accepts a contribution from any person and learns that that the person is connected to a foreign government after the acceptance, it will not be treated as knowingly or willingly accepting the contribution if the contribution is returned within 30 days of learning of the status of the person.  The bill imposes a tax on any federal official organization that knowingly or willingly accepts any contribution from any person connected to any foreign government in an amount equal to the amount of the contribution.