[Senate Report 110-399]
[From the U.S. Government Publishing Office]
Calendar No. 834
110th Congress Report
2d Session SENATE 110-399
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GRANT OF FEDERAL CHARTER TO THE MILITARY OFFICERS ASSOCIATION OF
AMERICA ACT OF 2008
_______
June 24 (legislative day June 23), 2008.--Ordered to be printed
_______
Mr. Leahy, from the Committee on the Judiciary, submitted the following
R E P O R T
[To accompany S. 2504]
[Including cost estimate of the Congressional Budget Office]
The Committee on the Judiciary, to which was referred the
bill (S. 2504), to amend title 36, United States Code, to grant
a Federal charter to the Military Officers Association of
America, and for other purposes, having considered the same,
reports favorably thereon, without amendment, and recommends
that the bill do pass.
CONTENTS
Page
I. Background and Purpose of the Grant of Federal Charter to the
Military Officers Association of America Act of 2008............ 1
II. History of the Bill and Committee Consideration..................2
III. Section-by-Section Summary of the Bill...........................3
IV. Congressional Budget Office Cost Estimate........................3
V. Regulatory Impact Evaluation.....................................4
VI. Conclusion.......................................................4
VII. Changes to Existing Law Made by the Bill, as Reported............4
I. Background and Purpose of the Grant of Federal Charter to the
Military Officers Association of America Act of 2008
The Grant of Federal Charter to the Military Officers
Association of America Act of 2008 would establish a Federal
charter for the Association by amending title 36 of the United
States Code by inserting a new chapter (1404) in Part B--
Organizations, subtitle II. Subtitle II lists patriotic and
national organizations that have been granted a Federal
charter. National organizations that qualify as a veterans
service organization under section 501(c)(19) of the Internal
Revenue Code of 1986 and are otherwise eligible may be granted
a Federal charter. The Military Officers Association of America
is a 501(c)(19) veterans service organization and is organized
under the laws of the Commonwealth of Virginia.
The Military Officers Association of America (MOAA) was
founded in Los Angeles, California in 1929 to give retired
officers, their family members, and survivors a collective
voice in matters relating to all officers retirement status and
benefits. Today, MOAA has approximately 370,000 members
nationwide, including 63,000 surviving spouses of deceased
members and is the largest veterans association representing
military officers and their families. Membership in MOAA is
open to any person who holds or has ever held a warrant or a
commission in any of the uniformed services, including National
Guard and Reserve. Surviving spouses of deceased members or
other individuals who had been eligible for membership qualify
for auxiliary membership in the association.
The National Headquarters, located in Alexandria, Virginia,
oversees and administers a variety of programs that MOAA offers
its members. These services include legislative and policy
advocacy focused on benefits for veterans, a scholarship fund
that offers interest-free loans and grants to students of
military families, supplemental heath coverage, occupational
resources and training, and financial services.
About a quarter of all MOAA members belong to a local MOAA
Chapter, that work with state and local governments on issues
affecting all the uniformed services. Unfortunately, some local
MOAA Chapters are unable to participate in State advisory
boards on veterans' issues because of State law requirements
mandating that groups wishing to participate on these panels
have a Federal Charter.
The Military Officers Association of America has been an
invaluable resource to Congress by providing bipartisan
recommendations on matters affecting our armed service members.
Senator Bill Nelson of Florida introduced this bill to ensure
that all members of MOAA have a voice in policy matters that
affect veterans.
II. History of the Bill and Committee Consideration
A. INTRODUCTION OF THE BILL
The Grant of Federal Charter to the Military Officers
Association of America Act of 2008 is a bipartisan measure
introduced on December 18, 2007 by Senator Nelson of Florida
and original cosponsors Senators Leahy, Hagel, Corker, Akaka,
Clinton, Inouye, Kennedy, Kerry, Lautenberg, Lincoln, Menendez,
Mikulski, Obama, and Tester. Senators Allard, Brown, Cardin,
Collins, Dodd, Dorgan, Ensign, Feingold, Murkowski, Sessions,
Smith, Thune, and Whitehouse have also joined the bill as
cosponsors.
B. COMMITTEE CONSIDERATION
The bill was introduced and referred to the Judiciary
Committee on December 18, 2007. On May 8, 2008, the Committee
voted to report the Grant of Federal Charter to Military
Officers Association of America Act of 2008, without amendment,
favorably to the Senate, by voice vote.
III. Section-by-Section Summary of the Bill
Section 1. Short title
This section amends part B of subtitle II of title 36 by
inserting after chapter 1403, ``Chapter 1404--Grant of Federal
Charter to the Military Officers Association of America''.
CHAPTER 1404--GRANT OF FEDERAL CHARTER TO THE MILITARY OFFICERS
ASSOCIATION OF AMERICA
Section 140401 establishes the Military Officers
Association of America as a federally chartered corporation.
Section 140402 sets out the purposes of the corporation as
provided in its bylaws and articles of incorporation.
Section 140403 contains a membership eligibility provision.
Section 140404 contains a provision on the corporation's
governing body.
Section 140405 contains a provision on the powers of the
corporation as provided in its bylaws and articles of
incorporation.
Section 140406 contains restrictions to which the
corporation is subject.
Section 140407 contains a provision concerning the tax-
exempt status of the corporation.
Section 140408 defines records and inspection requirements.
Section 140409 requires the corporation to comply with the
law on service of process of each State in which it is
incorporated and each State in which it carries on activities.
Section 140410 contains a provision that the corporation is
liable for the acts of any officer or agent of the corporation
acting within the scope of the authority of the corporation.
Section 140411 requires an annual report from the
corporation.
Section 140412 sets out definitions used in the chapter.
IV. Congressional Budget Office Cost Estimate
The cost estimate provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974 was not available for inclusion in this report. The
estimate will be printed in the Congressional Record. The
Committee believes that the grant of a Federal charter does not
impose any cost to the United States other than routine
administrative costs.
May 23, 2008.
Hon. Patrick J. Leahy,
Chairman, Committee on the Judiciary,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2504, a bill to
amend title 36, United States Code, to grant a federal charter
to the Military Officers Association of America, and for other
purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dawn Regan.
Sincerely,
Peter R. Orszag.
Enclosure.
S. 2504--To amend title 36, United States Code, to grant a Federal
charter to the Military Officers Association of America, and
for other purposes
S. 2504 would amend title 36 of the U.S. Code to grant a
federal charter to the Military Officers Association of
America, a nonprofit, tax-exempt, veterans organization.
Because chartered organizations listed in title 36 are not
agencies of the U.S. government and are conferred no federal
benefits, CBO estimates that enacting this bill would have no
impact on the federal budget.
S. 2504 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Dawn Regan. This
estimate was approved by Peter H. Fontaine, Assistant Director
for Budget Analysis.
V. Regulatory Impact Evaluation
In compliance with rule XXVI of the Standing Rules of the
Senate, the Committee finds that no significant regulatory
impact will result from the enactment of S. 2504.
VI. Conclusion
Since 1929, the Military Officers Association of America
has provided service to its members, the military community,
and the broader public. The Military Officers Association of
America has a record of public service and deserves to be
listed with other patriotic and national organizations in title
36 and granted a federal charter.
VII. Changes to Existing Law Made by the Bill, as Reported
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
S. 2504 as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
UNITED STATES CODE
TITLE 36--Patriotic and National Observances, Ceremonies, and
Organizations
* * * * * * *
CHAPTER 1404--GRANT OF FEDERAL CHARTER TO MILITARY OFFICERS ASSOCIATION
OF AMERICA
140401. Organization.
140402. Purposes.
140403. Membership.
140404. Governing body.
140405. Powers.
140406. Restrictions.
140407. Tax-exempt status required as condition of charter.
140408. Records and inspection.
140409. Service of process.
140410. Liability for acts of officers and agents.
140411. Annual report.
140412. Definition.
Sec. 140401. Organization
(a) Federal Charter.--Military Officers Association of
America (in this chapter, the `corporation'), a nonprofit
organization that meets the requirements for a veterans service
organization under section 501(c)(19) of the Internal Revenue
Code of 1986 and is organized under the laws of the
Commonwealth of Virginia, is a federally chartered corporation.
(b) Expiration of Charter.--If the corporation does not
comply with the provisions of this chapter, the charter granted
by subsection (a) shall expire.
Sec. 140402. Purposes
(a) General.--The purposes of the corporation are as
provided in its bylaws and articles of incorporation and
include--
(1) to inculcate and stimulate love of the United
States and the flag;
(2) to defend the honor, integrity, and supremacy of
the Constitution of the United States and the United
States Government;
(3) to advocate military forces adequate to the
defense of the United States;
(4) to foster the integrity and prestige of the Armed
Forces;
(5) to foster fraternal relations between all
branches of the various Armed Forces from which members
are drawn;
(6) to further the education of children of members
of the Armed Forces;
(7) to aid members of the Armed Forces and their
family members and survivors in every proper and
legitimate manner;
(8) to present and support legislative proposals that
provide for the fair and equitable treatment of members
of the Armed Forces, including the National Guard and
Reserves, military retirees, family members, survivors,
and veterans; and
(9) to encourage recruitment and appointment in the
Armed Forces.
Sec. 140403. Membership
Eligibility for membership in the corporation, and the
rights and privileges of members of the corporation, are as
provided in the bylaws of the corporation.
Sec. 140404. Governing body
(a) Board of Directors.--The composition of the board of
directors of the corporation, and the responsibilities of the
board, are as provided in the articles of incorporation and
bylaws of the corporation.
(b) Officers.--The positions of officers of the
corporation, and the election of the officers, are as provided
in the articles of incorporation and bylaws.
Sec. 140405. Powers
The corporation has only those powers provided in its
bylaws and articles of incorporation filed in each State in
which it is incorporated.
Sec. 140406. Restrictions
(a) Stock and Dividends.--The corporation may not issue
stock or declare or pay a dividend.
(b) 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 of the
corporation during the life of the charter granted by this
chapter. This subsection does not prevent the payment of
reasonable compensation to an officer or employee of the
corporation or reimbursement for actual necessary expenses in
amounts approved by the board of directors.
(c) Loans.--The corporation may not make a loan to a
director, officer, employee, or member of the corporation.
(d) 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.
(e) Corporate Status.--The corporation shall maintain its
status as a corporation incorporated under the laws of the
Commonwealth of Virginia.
Sec. 140407. Tax-exempt status required as condition of charter
If the corporation fails to maintain its status as an
organization exempt from taxation under the Internal Revenue
Code of 1986, the charter granted under this chapter shall
terminate.
Sec. 140408. Records and inspection
(a) Records.--The corporation shall keep--
(1) correct and complete records of account;
(2) minutes of the proceedings of the members, board
of directors, and committees of the corporation having
any of the authority of the board of directors of the
corporation; and
(3) at the principal office of the corporation, a
record of the names and addresses of the members of the
corporation entitled to vote on matters relating to the
corporation.
(b) Inspection.--A member entitled to vote on any matter
relating to the corporation, or an agent or attorney of the
member, may inspect the records of the corporation for any
proper purpose at any reasonable time.
Sec. 140409. Service of process
The corporation shall comply with the law on service of
process of each State in which it is incorporated and each
State in which it carries on activities.
Sec. 140410. Liability for acts of officers and agents
The corporation is liable for any act of any officer or
agent of the corporation acting within the scope of the
authority of the corporation.
Sec. 140411. Annual report
The corporation shall submit to Congress an annual report
on the activities of the corporation during the preceding
fiscal year. The report shall be submitted at the same time as
the report of the audit required by section 10101(b) of this
title. The report may not be printed as a public document.
Sec. 140412. Definition
In this chapter, the term `State' includes the District of
Columbia and the territories and possessions of the United
States.''.
(b) Clerical Amendment.--The table of chapters at the
beginning of subtitle II of title 36, United States Code, is
amended by inserting after the item relating to chapter 1403
the following new item:
1404. Military Officers Association of America...................140401