Bill Details

S.616 - 119th Congress

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Status
  1. Introduced
  2. Passed House
  3. Passed Senate
  4. To President
  5. Law
Latest action
2025-12-12 - Became Public Law No: 119-57.
Introduced Date
2025-02-18
Policy Area
Law
Committees
View committees (1)
8
0

AI Summary This summary was generated by AI from the bill text. AI can get information wrong.

This law updates the federal charter for the Foundation of the Federal Bar Association. It mainly modernizes the group’s governing rules, gives its board more flexibility to manage the organization through its bylaws, and keeps important limits in place so the group cannot act like a political organization or give money to insiders. It also changes where the organization’s main office can be located, clarifies how legal papers must be served, and sets rules for what happens to any remaining assets if the organization is dissolved.

  • It changes the membership rules so eligibility and member rights will be set mostly by the organization’s bylaws, unless the law says otherwise.
  • It makes the board of directors the main governing body and says the details for board duties and officer selection will be handled in the bylaws.
  • It keeps strong restrictions: the organization cannot issue stock, pay dividends, use its funds for political activity, try to influence legislation, or make loans to directors, officers, members, or employees.
  • It allows the principal office to be located anywhere in the United States, as chosen by the board and listed in the bylaws, and says any remaining assets after dissolution must be handled as directed by the board and in line with the charter and bylaws.

Official Summaries

Foundation of the Federal Bar Association Charter Amendments Act of 2025

This bill revises the federal charter for the Foundation of the Federal Bar Association to shift authority from the charter to the bylaws.

Specifically, it makes the following changes:

  • removes the requirement for the foundation to be incorporated and domiciled in the District of Columbia;
  • requires the board of directors to decide, and specify in the bylaws, the location of the principal office;
  • specifies that the bylaws—not the charter—must provide for the terms of membership, the responsibilities of the board of directors, and the election of officers;
  • prohibits a director or officer, in his or her corporate capacity, from contributing to, supporting, or participating in political activities;
  • 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;
  • expands a prohibition on loans for directors and officers to include members and employees; and
  • 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.

Foundation of the Federal Bar Association Charter Amendments Act of 2025

This act revises the federal charter for the Foundation of the Federal Bar Association to shift authority from the charter to the bylaws.

Specifically, it makes the following changes:

  • removes the requirement for the foundation to be incorporated and domiciled in the District of Columbia;
  • requires the board of directors to decide, and specify in the bylaws, the location of the principal office;
  • specifies that the bylaws—not the charter—must provide for the terms of membership, the responsibilities of the board of directors, and the election of officers;
  • prohibits a director or officer, in his or her corporate capacity, from contributing to, supporting, or participating in political activities;
  • 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;
  • expands a prohibition on loans for directors and officers to include members and employees; and
  • 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.

Current Full Text

[119th Congress Public Law 57]
[From the U.S. Government Publishing Office]



[[Page 139 STAT. 711]]

Public Law 119-57
119th Congress

                                 An Act


 
To amend title 36, United States Code, to revise the Federal charter for 
    the Foundation of the Federal Bar Association. <<NOTE: Dec. 12, 
                           2025 -  [S. 616]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Foundation of 
the Federal Bar Association Charter Amendments Act of 2025.>> 
SECTION <<NOTE: 36 USC 101 note.>> 1. SHORT TITLE.

    This Act may be cited as the ``Foundation of the Federal Bar 
Association Charter Amendments Act of 2025''.
SEC. 2. ORGANIZATION.

    Section 70501 of title 36, United States Code, is amended--
            (1) by striking subsection (b); and
            (2) by 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.--

[[Page 139 STAT. 712]]

            ``(1) In general.--The activities, funds, income, and 
        property of the corporation may not be used to carry on 
        political activity or attempt to influence legislation.
            ``(2) No contribution, support, or participation.--The 
        corporation or a director or officer in the corporate capacity 
        of the director of officer 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.--
            ``(1) In general.--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--
                    ``(A) reasonable compensation; or
                    ``(B) reimbursement for expenses incurred in 
                undertaking the corporation's business, to officers, 
                directors, or members.
            ``(2) Rule of construction.--This subsection shall not be 
        construed to--
                    ``(A) prevent the award of a grant to a Federal Bar 
                Association chapter of which an officer, director, or 
                member may be a member; or
                    ``(B) 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--
            ``(1) may not claim congressional approval or the authority 
        of the United States Government for any of its activities; and
            ``(2) may 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. <<NOTE: Compliance.>>  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--

[[Page 139 STAT. 713]]

    ``(a) as provided by the board of directors; and
    ``(b) <<NOTE: Compliance.>> 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 Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

    Approved December 12, 2025.

LEGISLATIVE HISTORY--S. 616:
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CONGRESSIONAL RECORD, Vol. 171 (2025):
            Apr. 30, considered and passed Senate.
            Dec. 1, considered and passed House.

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