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Code · BILL · 118th Congress · H.R. 3638 (Introduced in House) — To direct the Director of the Office of Management and Budget to require the disclosure of violations of Federal law... · Sec. 2

Sec. 2. Mandatory disclosures of human trafficking and alien smuggling

552 words·~3 min read·/bill/118/hr/3638/ih/section-2

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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 ). 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. Section 503 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: 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 , or is determined by the Director of the Office of Management and Budget to have violated section 274 of the Immigration and Nationality Act ( Protecting Federal Funds from Human Trafficking and Smuggling Act of 2023 8 U.S.C. 1324 ).
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). . Not later than 120 days after the date of the enactment of this Act, the Secretary of Homeland Security shall— 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; 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 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.
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). 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.
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Sec. 2
Mandatory disclosures of human trafficking and alien smuggling
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