Protecting Federal Funds from Human Trafficking and Smuggling Act of 2022
Bill: S.3653 | Sponsor: Sen. Kennedy, John (R-LA)
Policy area: Crime and Law Enforcement

Summary:
Protecting Federal Funds from Human Trafficking and Smuggling Act of 2022
This bill prohibits a nonprofit entity from receiving federal funds (and denies a tax exemption) unless the entity certifies compliance with certain federal laws (e.g., laws with respect to human trafficking and smuggling). It also establishes reporting requirements, including that the Government Accountability Office must annually report to Congress on those nonprofit entities that do not certify their compliance with these laws.

To direct the Director of the Office of Management and Budget to 
  require the disclosure of violations of Federal law with respect to 
     human trafficking or alien smuggling, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Federal Funds from Human 
Trafficking and Smuggling Act of 2022''.

SEC. 2. MANDATORY DISCLOSURES OF HUMAN TRAFFICKING AND ALIEN SMUGGLING.

    (a) Limitation on Award of Federal Funds.--
            (1) Future recipients.--Beginning not later than 120 days 
        after the date of the enactment of this Act, no Federal funds 
        may be awarded to a nonprofit entity unless such entity submits 
        to the Director of the Office of Management and Budget a 
        certification that the entity--
                    (A) is in compliance with Federal law with respect 
                to human trafficking, alien smuggling, fraud, bribery, 
                and gratuity; and
                    (B) has not been convicted of an offense under 
                section 274 of the Immigration and Nationality Act (8 
                U.S.C. 1324).
            (2) Current and prior recipients.--
                    (A) In general.--Not later than 60 days after the 
                date of the enactment of this Act, each nonprofit 
                entity that is in receipt of awarded Federal funds as 
                of the date of the enactment of this Act, or was 
                awarded Federal funds before January 1, 2021, and 
                remains engaged in the activities for which such 
                Federal funds were awarded, shall submit to the 
                Director of the Office of Management and Budget a 
                certification that the entity--
                            (i) is in compliance with Federal law with 
                        respect to human trafficking, alien smuggling, 
                        fraud, bribery, and gratuity; and
                            (ii) has not been convicted of an offense 
                        under section 274 of the Immigration and 
                        Nationality Act (8 U.S.C. 1324).
                    (B) Effect of noncompliance.--If an entity referred 
                to in subparagraph (A) does not submit the 
                certification required under such subparagraph before 
                the date referred to in such subparagraph, or the 
                Director of the Office of Management and Budget 
                determines that the entity has violated section 
                274(a)(1)(A) of the Immigration and Nationality Act (8 
                U.S.C. 1324(a)(1)(A)), the entity shall reimburse the 
                Federal Government for any Federal funds the entity 
                received for the fiscal year in which such 
                noncompliance occurred.
    (b) Denial of Tax Exemption.--Section 503 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following:
    ``(g) Denial of Exemption for Not Meeting Certain Certification 
Requirement.--
            ``(1) In general.--An organization described in section 
        501(c) shall not be exempt from taxation under section 501(a) 
        if--
                    ``(A) such organization does not submit the 
                certification required under section 2(a) of the 
                Protecting Federal Funds from Human Trafficking and 
                Smuggling Act of 2022; or
                    ``(B) the Director of the Office of Management and 
                Budget determines that such organization has violated 
                section 274 of the Immigration and Nationality Act (8 
                U.S.C. 1324).
            ``(2) Re-application for exemption.--Beginning on the date 
        that is one year after the date on which an organization 
        described in section 501(c) is determined not to be exempt 
        under paragraph (1), such organization may reapply to be exempt 
        from taxation under section 501(a).''.
    (c) Reporting Requirement.--Not later than 120 days after the date 
of the enactment of this Act, the Secretary of Homeland Security 
shall--
            (1) develop a written strategy and best practices guide for 
        nonprofit entities to ensure the entities comply with Federal 
        law, including how to detect, deter, and report human 
        trafficking and alien smuggling;
            (2) publish, on an internet website of the Department of 
        Homeland Security, information regarding violations of any 
        nonprofit entity that pertains to compliance with Federal and 
        State laws involving human trafficking and alien smuggling; and
            (3) develop a written strategy to improve cooperation with 
        nonprofit entities and Federal and State law enforcement 
        agencies with respect to improving cooperation on deterring, 
        detecting, reporting, and removing aliens.
    (d) Report by Comptroller General.--Not later than 180 days after 
the date of the enactment of this Act, and annually thereafter, the 
Comptroller General of the United States shall submit a report to 
Congress that identifies each failure by a nonprofit entity to comply 
with the certification requirement under subsection (a) during the 
reporting period.
    (e) Applicability.--The requirement under subsection (a) shall 
apply to any nonprofit entity awarded Federal funding, including any 
nonprofit entity that has an agreement, contract, award, or 
relationship with the Federal Government on the date of the enactment 
of this Act.
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