Bill Summary
The "Protecting Federal Funds from Human Trafficking and Smuggling Act of 2023" is a bill that was passed by the United States Congress to prevent the misuse of federal funds by non-profit organizations. The bill requires all non-profit organizations that receive federal funding to disclose any violations of federal law related to human trafficking or alien smuggling. This includes fraud, bribery, and gratuity. Non-profit organizations that fail to comply with this requirement will not be eligible for federal funding and may also lose their tax exemption status. The Secretary of Homeland Security is required to develop a strategy and best practices guide for non-profit organizations to detect, deter, and report human trafficking and alien smuggling. The Comptroller General of the United States is also required to report to Congress on any violations by non-profit organizations. The bill also removes the verification requirement for non-profit organizations under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. This bill is applicable to all non-profit organizations that receive federal funding, including those with existing agreements or contracts with the federal government.
Possible Impacts
1. The legislation could affect non-profit organizations, as they would be required to submit certifications and potentially repay funds if they are found to be in violation of federal laws related to human trafficking or alien smuggling.
2. The legislation could affect the Department of Homeland Security, as they would be responsible for developing a strategy and best practices guide for non-profit entities to ensure compliance with federal laws.
3. The legislation could affect individuals who rely on non-profit charitable organizations, as the verification requirement for these organizations could potentially impact their ability to receive services or assistance.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3638 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 3638
To direct the Director of the Office of Management and Budget to
require the disclosure of violations of Federal law with respect to
human trafficking or alien smuggling, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 24, 2023
Mr. Gooden of Texas (for himself, Mr. Tiffany, Mr. Rosendale, Mr.
Donalds, Mr. Gosar, Mr. Babin, Mr. Weber of Texas, Mr. Sessions, Mr.
Moore of Alabama, Mr. Santos, and Mr. Brecheen) introduced the
following bill; which was referred to the Committee on the Judiciary,
and in addition to the Committees on Oversight and Accountability, and
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To direct the Director of the Office of Management and Budget to
require the disclosure of violations of Federal law with respect to
human trafficking or alien smuggling, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Federal Funds from Human
Trafficking and Smuggling Act of 2023''.
SEC. 2. MANDATORY DISCLOSURES OF HUMAN TRAFFICKING AND ALIEN SMUGGLING.
(a) Limitation on Award of Federal Funds.--
(1) Future recipients.--Beginning not later than 120 days
after the date of the enactment of this Act, no Federal funds
may be awarded to a non-profit entity unless such entity
submits to the Director of the Office of Management and Budget
a certification that the entity is in compliance with Federal
law with respect to human trafficking, alien smuggling, fraud,
bribery, or gratuity and has not been convicted of an offense
under section 274 of the Immigration and Nationality Act (8
U.S.C. 1324).
(2) Current and prior recipients.--Not later than 60 days
after the date of the enactment of this Act, each non-profit
entity that is in receipt of awarded Federal funds as of the
date of the enactment of this Act, or was awarded Federal funds
prior to January 1, 2021, shall submit to the Director of the
Office of Management and Budget a certification that the entity
is in compliance with Federal law with respect to human
trafficking, alien smuggling, fraud, bribery, or gratuity and
has not been convicted of an offense under section 274 of the
Immigration and Nationality Act (8 U.S.C. 1324). If the entity
does not submit the certification, or is determined by the
Director of the Office of Management and Budget to have
violated section 274 of the Immigration and Nationality Act (8
U.S.C. 1324), the entity shall repay any such funds awarded.
(b) Denial of Tax Exemption.--Section 503 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:
``(g) Denial of Exemption for Not Meeting Certain Certification
Requirement.--
``(1) In general.--An organization described in section
501(c) shall not be exempt from taxation under section 501(a)
if such organization does not submit the certification required
pursuant to section 2(a) of the `Protecting Federal Funds from
Human Trafficking and Smuggling Act of 2023', or is determined
by the Director of the Office of Management and Budget to have
violated section 274 of the Immigration and Nationality Act (8
U.S.C. 1324).
``(2) Re-application for exemption.--Not sooner than one
year after the date on which an organization described in
section 501(c) is not exempt pursuant to paragraph (1), such
organization may reapply to be exempt from taxation under
section 501(a).''.
(c) Reporting Requirement.--Not later than 120 days after the date
of the enactment of this Act, the Secretary of Homeland Security
shall--
(1) develop a written strategy and best practices guide for
non-profit entities to ensure they are in compliance with
Federal law, including how to detect, deter, and report human
trafficking and alien smuggling;
(2) publish on the internet website of the Department of
Homeland Security information on violations of any non-profit
entity as it pertains to compliance with State and Federal laws
with respect to human trafficking, and alien smuggling; and
(3) develop a written strategy to improve cooperation with
non-profit entities, State, and Federal law enforcement
agencies with respect to improving cooperation on deterring,
detecting, reporting, and removing aliens.
(d) Report by Comptroller General.--Not later than 180 days after
the date of the enactment of this Act, and annually thereafter, the
Comptroller General of the United States shall report to Congress on
each violation by a non-profit entity to certify under subsection (a).
(e) Applicability.--The requirement under subsection (a) shall
apply to any non-profit entity awarded Federal funding, including a
non-profit entity who has an agreement, contract, award, or
relationship with the Federal Government on the date of the enactment
of this Act.
SEC. 3. VERIFICATION REQUIREMENT FOR NONPROFIT CHARITABLE
ORGANIZATIONS.
Section 432 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1642) is amended by striking
subsection (d).
<all>