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119-s-616119th Congress

Foundation of the Federal Bar Association Charter Amendments Act of 2025

Sponsored By: Senator Kennedy, John [R-LA]

Became Law

Summary

This law revises the Foundation of the Federal Bar Association's federal charter to clarify governance and membership rules. It names the board of directors as the governing body, tightens limits on political activity, updates legal and location rules, and requires Pay-As-You-Go (PAYGO) budget effects to be recorded.

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  • Membership and chapters: Eligibility and member rights are set by the corporation's bylaws. The charter explicitly allows grants to local Federal Bar Association chapters even when officers, directors, or members belong to those chapters.
  • Board and officers: The board of directors is the governing body and may exercise the corporation's powers. Officer roles and elections are governed by the bylaws.
  • Restrictions on conduct and finances: The corporation may not issue stock or pay dividends. It may not engage in political activity, make loans to insiders, or distribute income to officers or members, though reasonable compensation and expense reimbursement are allowed.
  • Legal and administrative rules: The board decides the United States location and specifies it in the bylaws. The corporation must follow state service-of-process law and direct how remaining assets are distributed on dissolution.
  • Budget accounting: Budgetary effects for Pay-As-You-Go (PAYGO) purposes are to be determined by reference to the Senate Budget Committee Chairman's statement submitted for the Congressional Record.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Board and bylaws control the Foundation

The law makes the board of directors the governing body. The bylaws set who can be a member, member rights, and officer election rules. The board picks the main office anywhere in the United States and lists it in the bylaws. The Foundation follows the service‑of‑process rules of the state or district where it is incorporated. If the Foundation dissolves, it pays debts first, then distributes any remaining assets as the board directs under the charter and bylaws.

No politics or government endorsement

The law bans using Foundation money or property for political activity or to influence laws. Directors and officers acting for the Foundation also must not contribute to or join such activity. The Foundation cannot claim U.S. Government approval or authority for its work, though it may say it has a congressional charter.

Nonprofit safeguards and member protections

The law bars issuing stock or paying dividends. It forbids loans to directors, officers, members, or employees. Income and assets cannot personally benefit insiders, but the board may approve fair pay and reimburse expenses. Grants to chapters and normal employee pay are allowed. Members and private individuals are not personally liable for the Foundation’s debts.

PAYGO accounting for this Act

For budget scoring, the law uses the latest PAYGO statement for this Act that the Senate Budget Committee chair printed before the vote. This sets which official estimate governs how the Act’s budget effects are recorded.

Sponsors & CoSponsors

Sponsor

Kennedy, John [R-LA]

LA • R

Cosponsors

  • Sen. Whitehouse, Sheldon [D-RI]

    RI • D

    Sponsored 2/18/2025

Roll Call Votes

No roll call votes available for this bill.

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