Foundation of the Federal Bar Association Charter Amendments Act of 2021
Bill: H.R.2679 | Sponsor: Rep. Chabot, Steve (R-OH)
Policy area: Law

Summary:
Foundation of the Federal Bar Association Charter Amendments Act of 2021
This bill revises the federal charter for the Foundation of the Federal Bar Association.
Specifically, the bill (1) eliminates the provision that requires the foundation to be incorporated and domiciled in the District of Columbia; and (2) requires the board of directors to decide, and specify in the bylaws, the location of the principal office.
Additionally, the bylaws—not the charter—must provide for the terms of membership, the responsibilities of the board of directors, and the election of officers. A director or officer, in his or her corporate capacity, is prohibited from contributing to, supporting, or participating in political activities.
The bill allows income and assets of the corporation to be used to reasonably compensate or reimburse expenses of an officer, director, or member; to award a grant to the Federal Bar Association chapter of an officer, director, or member; and to reasonably compensate employees.
Furthermore, the bill expands a prohibition on loans for directors and officers to include members and employees.
Finally, the bill specifies that on dissolution or final liquidation, any remaining assets must be distributed as provided by the board of directors instead of deposited in the Treasury.

To amend title 36, United States Code, to revise the Federal charter 
           for the Foundation of the Federal Bar Association.

    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 ``Foundation of the Federal Bar 
Association Charter Amendments Act of 2021''.

SEC. 2. ORGANIZATION.

    Section 70501 of title 36, United States Code, is amended by 
striking subsection (b) and redesignating subsection (c) as subsection 
(b).

SEC. 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.''; and
            (2) by redesignating subsection (c) as subsection (b).

SEC. 4. GOVERNING BODY.

    Section 70504 of title 36, United States Code, is amended to read 
as follows:
``Sec. 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.''.

SEC. 5. RESTRICTIONS.

    Section 70507 of title 36, United States Code, is amended to read 
as follows:
``Sec. 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, or 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.''.

SEC. 6. PRINCIPAL OFFICE.

    Section 70508 of title 36, United States Code, is amended by 
striking ``the District of Columbia,'' and inserting ``a United States 
location decided by the board of directors and specified in the 
bylaws,''.

SEC. 7. SERVICE OF PROCESS.

    Section 70510 of title 36, United States Code, is amended to read 
as follows:
``Sec. 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.''.

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

    Section 70512 of title 36, United States Code, is amended to read 
as follows:
``Sec. 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.''.

SEC. 9. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

            Passed the House of Representatives June 23, 2021.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.