Foundation of the Federal Bar Association Charter Amendments Act of 2025 in plain language
1: Short title
This section gives the Act its short title, the Foundation of the Federal Bar Association Charter Amendments Act of 2025.
Show official text
1. Short title This Act may be cited as the Foundation of the Federal Bar Association Charter Amendments Act of 2025 .
2: Organization
Show official text
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).
3: Membership
This section would replace the current subsections (a) and (b) of 36 U.S.C. 70503 (Membership) with a single new subsection (a). Under the new rule, except as otherwise provided elsewhere in the chapter, who can be a member of the corporation and what rights and privileges members have would be set entirely by the corporation's bylaws rather than fixed in the statute. The section would also renumber the current subsection (c) as subsection (b), with no stated change to its content.
Show official text
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).
4: Governing body
This section would rewrite 36 U.S.C. 70504 (Governing body) in full. Under the new text, the board of directors would be the corporation's governing body, and the board could exercise the corporation's powers itself or arrange for others to exercise them on the corporation's behalf. Who sits on the board and what responsibilities the board has would be set by the corporation's bylaws rather than fixed in the statute. The corporation's officers, and how those officers are elected, would likewise be set by the bylaws.
Show official text
4. Governing body Section 70504 of title 36, United States Code, is amended to read as follows: 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. .
5: Restrictions
This section would rewrite 36 U.S.C. 70507 (Restrictions) in full, covering several separate limits on the corporation. The corporation could not issue stock or declare or pay a dividend. Its activities, funds, income, and property could not be used to carry on political activity or to attempt to influence legislation, and neither the corporation itself nor a director or officer acting in that corporate capacity could contribute to, support, or take part in any political activity or attempt to influence legislation in any way. The corporation's income or assets could not be used to benefit, or be distributed to, a director, officer, or member while the charter granted by this chapter remains in effect; however, the board of directors could still approve reasonable compensation to officers, directors, or members and reimbursement for expenses those individuals incur while conducting the corporation's business. This restriction would not be read to block a grant to a Federal Bar Association chapter merely because an officer, director, or member belongs to that chapter, and would not be read to block reasonable compensation paid to the corporation's employees for work done on the corporation's behalf. The corporation could not make a loan to a director, officer, member, or employee. Members and private individuals would not be personally liable for the corporation's obligations. The corporation could not claim congressional approval or the authority of the United States Government for any of its activities, though it could acknowledge that it holds this Federal charter.
Show official text
5. Restrictions Section 70507 of title 36, United States Code, is amended to read as follows: 70507. Restrictions (a) Stock and dividends The corporation may not issue stock or declare or pay a dividend. (b) Political activities (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. .
6: Principal office
This section would amend 36 U.S.C. 70508 (Principal office) by removing the requirement that the corporation's principal office be in the District of Columbia and replacing it with a requirement that the principal office be at a United States location chosen by the board of directors and specified in the bylaws.
Show official text
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, .
7: Service of process
This section would rewrite 36 U.S.C. 70510 (Service of process) in full. Under the new text, the corporation would have to comply with the service-of-process law of whichever State or District it is incorporated in.
Show official text
7. Service of process Section 70510 of title 36, United States Code, is amended to read as follows: 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. .
8: Deposit of assets on dissolution or final liquidation
This section would rewrite 36 U.S.C. 70512 (Deposit of assets on dissolution or final liquidation) in full. Under the new text, if the corporation dissolves or undergoes final liquidation, any assets left after all liabilities are paid off would have to be distributed as the board of directors provides and in a way that complies with the charter and bylaws.
Show official text
8. Deposit of assets on dissolution or final liquidation Section 70512 of title 36, United States Code, is amended to read as follows: 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— (a) as provided by the board of directors; and (b) in compliance with the charter and bylaws. .
9: Determination of budgetary effects
This section states that, for purposes of complying with the Statutory Pay-As-You-Go Act of 2010, the Act's budgetary effects would be determined by looking 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, as long as that statement is submitted before the vote on passage.
Show official text
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.