,,ii  #aagth ,,congress  #b;d ,session  
,s4 #cfec  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,february #ae1 
#bjbb,mr4 ,kennedy introduced the       
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,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 smuggling1 and for 
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,protecting    
,federal ,funds from ,human ,trafficking
 and ,smuggling ,act of #bjbb4  #b4     
,mandatory disclosures of human         
trafficking and alien smuggling  7a7    
,limitation on award of ,federal funds  
7#a7 ,future recipients ,beginning not  
later than #abj days after the date of  
the enactment of this ,act1 no ,federal 
funds may be awarded to a nonprofit     
entity unless such entity submits to the
 ,director of the ,office of ,management
 and ,budget a certification that the   

entity-- 7,a7 is in compliance with     
,federal law with respect to human      
trafficking1 alien smuggling1 fraud1    
bribery1 and gratuity2 and  7,b7 has not
 been convicted of an offense under     
section #bgd of the ,immigration and    
,nationality ,act 7#h ,u4,s4,c4 #acbd74 
7#b7 ,current and prior recipients  7,a7
 ,in general ,not later than #fj days   
after the date of the enactment of this 
,act1 each nonprofit entity that is in  
receipt of awarded ,federal funds as of 
the date of the enactment of this ,act1 
or was awarded ,federal funds before    
,january #a1 #bjba1 and remains engaged 
in the activities for which such        
,federal funds were awarded1 shall      
submit to the ,director of the ,office  
of ,management and ,budget a            
certification that the entity-- 7i7 is  
in compliance with ,federal law with    
respect to human trafficking1 alien     
smuggling1 fraud1 bribery1 and gratuity2
 and  7ii7 has not been convicted of an 
offense under section #bgd of the       

,immigration and ,nationality ,act 7#h  
,u4,s4,c4 #acbd74  7,b7 ,effect of      
noncompliance ,if an entity referred to 
in subparagraph 7,a7 does not submit the
 certification required under such      
subparagraph before the date referred to
 in such subparagraph1 or the ,director 
of the ,office of ,management and       
,budget determines that the entity has  
violated section #bgd7;a77#a77;,a7 of   
the ,immigration and ,nationality ,act  
7#h ,u4,s4,c4 #acbd7;a77#a77;,a771 the  
entity shall reimburse the ,federal     
,government for any ,federal funds the  
entity received for the fiscal year in  
which such noncompliance occurred4  7b7 
,denial of tax exemption ,section #ejc  
of the ,internal ,revenue ,code of #aihf
 is amended by adding at the end the    
following3  7g7 ,denial of exemption for
 not meeting certain certification      
requirement  7#a7 ,in general ,an       
organization described in section       
#eja7;c7 shall not be exempt from       
taxation under section #eja7;a7 if--    

7,a7 such organization does not submit  
the certification required under section
 #b7;a7 of the ,protecting ,federal     
,funds from ,human ,trafficking and     
,smuggling ,act of #bjbb2 or  7,b7 the  
,director of the ,office of ,management 
and ,budget determines that such        
organization has violated section #bgd  
of the ,immigration and ,nationality    
,act 7#h ,u4,s4,c4 #acbd74  7#b7        
,re-application for exemption ,beginning
 on the date that is one year after the 
date on which an organization described 
in section #eja7;c7 is determined not to
 be exempt under paragraph 7#a71 such   
organization may reapply to be exempt   
from taxation under section #eja7;a74  4
  7c7 ,reporting requirement ,not later 
than #abj days after the date of the    
enactment of this ,act1 the ,secretary  
of ,homeland ,security shall-- 7#a7     
develop a written strategy and best     
practices guide for nonprofit entities  
to ensure the entities comply with      
,federal law1 including how to detect1  

deter1 and report human trafficking and 
alien smuggling2  7#b7 publish1 on an   
internet website of the ,department of  
,homeland ,security1 information        
regarding violations of any nonprofit   
entity that pertains to compliance with 
,federal and ,state laws involving human
 trafficking and alien smuggling2 and   
7#c7 develop a written strategy to      
improve cooperation with nonprofit      
entities and ,federal and ,state law    
enforcement agencies with respect to    
improving cooperation on deterring1     
detecting1 reporting1 and removing      
aliens4  7d7 ,report by ,comptroller    
,general ,not later than #ahj days after
 the date of the enactment of this ,act1
 and annually thereafter1 the           
,comptroller ,general of the ,united    
,states shall submit a report to        
,congress that identifies each failure  
by a nonprofit entity to comply with the
 certification requirement under        
subsection 7a7 during the reporting     
period4  7e7 ,applicability ,the        

requirement under subsection 7a7 shall  
apply to any nonprofit entity awarded   
,federal funding1 including any         
nonprofit entity that has an agreement1 
contract1 award1 or relationship with   
the ,federal ,government on the date of 
the enactment of this ,act4