[Senate Report 110-399]
[From the U.S. Government Printing 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