Protecting Federal Funds from Human Trafficking and Smuggling Act of 2023

I 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 traf- ficking 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 Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:06 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 3638 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Protecting Federal 2 Funds from Human Trafficking and Smuggling Act of 3 2023’’. 4 SEC. 2. MANDATORY DISCLOSURES OF HUMAN TRAF- 5 FICKING AND ALIEN SMUGGLING. 6 (a) LIMITATION ON AWARD OF FEDERAL FUNDS.— 7 (1) FUTURE RECIPIENTS.—Beginning not later 8 than 120 days after the date of the enactment of 9 this Act, no Federal funds may be awarded to a 10 non-profit entity unless such entity submits to the 11 Director of the Office of Management and Budget a 12 certification that the entity is in compliance with 13 Federal law with respect to human trafficking, alien 14 smuggling, fraud, bribery, or gratuity and has not 15 been convicted of an offense under section 274 of 16 the Immigration and Nationality Act (8 U.S.C. 17 1324). 18 (2) CURRENT AND PRIOR RECIPIENTS.—Not 19 later than 60 days after the date of the enactment 20 of this Act, each non-profit entity that is in receipt 21 of awarded Federal funds as of the date of the en- 22 actment of this Act, or was awarded Federal funds 23 prior to January 1, 2021, shall submit to the Direc- 24 tor of the Office of Management and Budget a cer- 25 tification that the entity is in compliance with Fed- 26 VerDate Sep 11 2014 23:06 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 3638 IH eral law with respect to human trafficking, alien 1 smuggling, fraud, bribery, or gratuity and has not 2 been convicted of an offense under section 274 of 3 the Immigration and Nationality Act (8 U.S.C. 4 1324). If the entity does not submit the certifi- 5 cation, or is determined by the Director of the Office 6 of Management and Budget to have violated section 7 274 of the Immigration and Nationality Act (8 8 U.S.C. 1324), the entity shall repay any such funds 9 awarded. 10 (b) DENIAL OF TAX EXEMPTION.—Section 503 of 11 the Internal Revenue Code of 1986 is amended by adding 12 at the end the following new subsection: 13 ‘‘(g) DENIAL OF EXEMPTION FOR NOT MEETING 14 CERTAIN CERTIFICATION REQUIREMENT.— 15 ‘‘(1) IN GENERAL.—An organization described 16 in section 501(c) shall not be exempt from taxation 17 under section 501(a) if such organization does not 18 submit the certification required pursuant to section 19 2(a) of the ‘Protecting Federal Funds from Human 20 Trafficking and Smuggling Act of 2023’, or is deter- 21 mined by the Director of the Office of Management 22 and Budget to have violated section 274 of the Im- 23 migration and Nationality Act (8 U.S.C. 1324). 24 VerDate Sep 11 2014 23:06 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 3638 IH ‘‘(2) RE-APPLICATION FOR EXEMPTION.—Not 1 sooner than one year after the date on which an or- 2 ganization described in section 501(c) is not exempt 3 pursuant to paragraph (1), such organization may 4 reapply to be exempt from taxation under section 5 501(a).’’. 6 (c) REPORTING REQUIREMENT.—Not later than 120 7 days after the date of the enactment of this Act, the Sec- 8 retary of Homeland Security shall— 9 (1) develop a written strategy and best prac- 10 tices guide for non-profit entities to ensure they are 11 in compliance with Federal law, including how to de- 12 tect, deter, and report human trafficking and alien 13 smuggling; 14 (2) publish on the internet website of the De- 15 partment of Homeland Security information on vio- 16 lations of any non-profit entity as it pertains to com- 17 pliance with State and Federal laws with respect to 18 human trafficking, and alien smuggling; and 19 (3) develop a written strategy to improve co- 20 operation with non-profit entities, State, and Fed- 21 eral law enforcement agencies with respect to im- 22 proving cooperation on deterring, detecting, report- 23 ing, and removing aliens. 24 VerDate Sep 11 2014 23:06 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3638.IH H3638 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 3638 IH (d) REPORT BY COMPTROLLER GENERAL.—Not later 1 than 180 days after the date of the enactment of this Act, 2 and annually thereafter, the Comptroller General of the 3 United States shall report to Congress on each violation 4 by a non-profit entity to certify under subsection (a). 5 (e) APPLICABILITY.—The requirement under sub- 6 section (a) shall apply to any non-profit entity awarded 7 Federal funding, including a non-profit entity who has an 8 agreement, contract, award, or relationship with the Fed- 9 eral Government on the date of the enactment of this Act. 10 SEC. 3. VERIFICATION REQUIREMENT FOR NONPROFIT 11 CHARITABLE ORGANIZATIONS. 12 Section 432 of the Personal Responsibility and Work 13 Opportunity Reconciliation Act of 1996 (8 U.S.C. 1642) 14 is amended by striking subsection (d). 15 Æ VerDate Sep 11 2014 01:36 Jun 16, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H3638.IH H3638 pbinns on DSKJLVW7X2PROD with $$_JOB