To amend title 36, United States Code, to repeal the Federal charter for Retired Enlisted Association, Incorporated.

February 27, 2002

Mr. KLECZKA (for himself, Mr. SHAW, Mr. MATSUI, Mr. BRADY of Texas, Mr. DOGGETT, Mr. SAM JOHNSON of Texas, Mr. POMEROY, Mr. RANGEL, Mr. RYAN of Wisconsin, and Mr. LAHOOD) introduced the following bill; which was referred to the Committee on the Judiciary

To amend title 36, United States Code, to repeal the Federal charter for Retired Enlisted Association, Incorporated.

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 `Seniors Protection Act'.

SEC. 2. FINDINGS.

Congress finds the following:

(1) Federal charters are prestigious distinctions awarded to organizations with a patriotic, charitable, or educational purpose.

(2) Although intended as an honorific title, a Federal charter implies Government support for such organizations.

(3) In 1992, the Federal Government granted a Federal charter to the Retired Enlisted Association (TREA), and in 1993 TREA established the TREA Senior Citizens League (TSCL).

(4) TREA and TSCL operate as one entity, and TREA should be held accountable for TSCL's actions because there is no real distinction between the two organizations, except in name only.

(5) The interconnectedness of TREA and TSCL is evidenced by the following:

(A) Independently conducted audit reports for fiscal years 1999 and 2000 concluded that TREA's and TSCL's financial statements should be consolidated because their financial activities are inseparable.

(B) Amendments to TSCL's articles of incorporation and bylaws must be ratified by a majority vote of TREA's Board of Directors.

(C) TSCL's Board of Trustees are appointed or elected by TREA's National Board of Directors.

(D) TSCL may only be dissolved by a two-thirds vote of TREA's National Board of Directors.

(6) TSCL has solicited contributions from seniors through the use of misleading tactics, and seniors who received deceptive mailings from TSCL have filed numerous complaints with the Social Security Administration, State Attorney General offices, and Members of Congress requesting remedial action.

(7) TCSL's misleading tactics include the following:

(A) Mailing solicitations containing replicas of United States Government Social Security Trust Fund checks written in the amount of $5,000.

(B) Purporting to have the authority to handle distribution of Social Security payments by mailing seniors an official looking `Notch Registry' plastic identification card and a `National Notch Victim Register' form that asks seniors to specify whether they prefer their $5,000 notch payment sent to them in one lump sum or in four installment payments, in spite of the fact that any such payment (if offered) would be handled exclusively by the Social Security Administration.

(C) Aggressively soliciting seniors to support misleading activities, including requesting seniors to add a bequest in their wills to TSCL, along with instructions for such will preparation.

(8) TSCL's actions are clearly not patriotic, charitable, or educational, and failure to revoke TREA's Federal charter sends a signal to the American public that the Federal Government condones such unethical and misleading behavior.

SEC. 3. REPEAL OF FEDERAL CHARTER OF RETIRED ENLISTED ASSOCIATION, INCORPORATED.

(a) REPEAL- Chapter 1903 of title 36, United States Code (relating to a Federal charter for Retired Enlisted Association, Incorporated), is repealed.

(b) CLERICAL AMENDMENT- The analysis at the beginning of subtitle II of title 36, United States Code, is amended by striking the item relating to chapter 1903.

END