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.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2679 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2679
To amend title 36, United States Code, to revise the Federal charter
for the Foundation of the Federal Bar Association.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 20, 2021
Mr. Chabot (for himself and Mr. Raskin) introduced the following bill;
which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Ms. Jackson Lee moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H2984-2986; text: CR H2984-2985)
DEBATE - The House proceeded with forty minutes of debate on H.R. 2679.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
Pursuant to the provisions of H. Res. 486, proceedings on H.R. 2679 are considered vacated.
Passed/agreed to in House: Pursuant to section 11 of H. Res. 486, and the motion offered by Mr. McGovern, the following bills passed under suspension of the rules: H.R. 482; H.R. 704; H.R. 961, as amended; H.R. 1314; H.R. 2571, as amended; H.R. 2679, as amended; H.R. 2694; H.R. 2922, as amended; H.R. 3182; H.R. 3239; H.R. 3241, as amended; H.R. 3723; H.R. 3752; H.R. 3841; S. 409; and S. 1340.(consideration: CR H3026-3052; text: CR H3028-3029)
Pursuant to section 11 of H. Res. 486, and the motion offered by Mr. McGovern, the following bills passed under suspension of the rules: H.R. 482; H.R. 704; H.R. 961, as amended; H.R. 1314; H.R. 2571, as amended; H.R. 2679, as amended; H.R. 2694; H.R. 2922, as amended; H.R. 3182; H.R. 3239; H.R. 3241, as amended; H.R. 3723; H.R. 3752; H.R. 3841; S. 409; and S. 1340. (consideration: CR H3026-3052; text: CR H3028-3029)
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Received in the Senate and Read twice and referred to the Committee on the Judiciary.