Bill Updates Federal Bar Foundation Rules: Bylaws to Govern Membership, Board Gets Office Location Power

This bill proposes several updates to the federal charter governing the Foundation of the Federal Bar Association, essentially tweaking the rulebook for this federally recognized non-profit organization.

Shifting the Rulebook: More Power to Bylaws and the Board

The core change here involves shifting power away from the fixed language of the federal charter and towards the organization's internal bylaws and its board of directors. Here’s the breakdown:

• Membership Rules: Previously, the charter had specific language about who could be a member. Section 3 of this bill scraps that, stating that eligibility, rights, and privileges will now be determined by the Foundation's own bylaws. This gives the organization more flexibility to define its membership structure internally.
• Governing Body: Section 4 clarifies that the board of directors runs the show, exercising the Foundation's powers as laid out in the bylaws. It also specifies that officer roles and how they're elected will be detailed in the bylaws, moving these specifics out of the main charter.
• Office Location: The Foundation's main office was previously mandated to be in the District of Columbia (36 U.S.C. 70508). Section 6 amends this, allowing the board of directors to choose the principal office location anywhere in the U.S., with the location specified in the bylaws.
• Dissolution: If the Foundation ever dissolves, Section 8 changes how leftover assets are handled. Instead of automatically going to the U.S. Treasury, the board will determine how to distribute remaining assets according to the charter and bylaws, after paying off liabilities.

Keeping it Clean: Financial and Political Guardrails

Section 5 updates the restrictions on the Foundation. While the core principles remain, the language is refreshed:

• No Politics: It reinforces the ban on using corporate resources for political activities or lobbying. This includes contributions or support by the corporation, directors, or officers acting in their official capacity.
• No Personal Profit: It prohibits income or assets from benefiting directors, officers, or members, except for reasonable compensation or expense reimbursement approved by the board. It explicitly allows grants to Federal Bar Association chapters (even if officers/members belong) and reasonable pay for employees.
• No Loans: Loans to directors, officers, members, or employees are forbidden.
• No Government Seal of Approval: The Foundation can't claim congressional or U.S. government approval for its activities, though it can acknowledge its federal charter.

Legal Housekeeping

Finally, the bill includes some procedural updates:

• Service of Process: Section 7 requires the Foundation to follow the legal notification rules (service of process) of the state or district where it's incorporated.
• Budget Impact: Section 9 notes that the official cost estimate for this bill will follow the standard procedure under the Pay-As-You-Go Act, relying on the Senate Budget Committee Chairman's assessment.

Essentially, this bill modernizes the Foundation's charter, giving the organization more internal control over its structure and operations while maintaining standard non-profit restrictions, particularly regarding political activity and personal enrichment.