HR 756 IH

105th CONGRESS

1st Session

H. R. 756

To establish a National Physical Fitness and Sports Foundation to carry out

activities to support and supplement the mission of the President's Council on

Physical Fitness and Sports, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

February 13, 1997

Mr. EHRLICH introduced the following bill; which was referred to the Committee

on Education and the Workforce

A BILL

To establish a National Physical Fitness and Sports Foundation to carry out

activities to support and supplement the mission of the President's Council on

Physical Fitness and Sports, 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 `National Physical Fitness and Sports

Foundation Establishment Act'.

SEC. 2. ESTABLISHMENT AND PURPOSE OF FOUNDATION.

(a) ESTABLISHMENT- There is established the National Physical Fitness and

Sports Foundation (hereinafter in this Act referred to as the `Foundation').

The Foundation shall be a charitable and not-for-profit corporation and

shall not be an agency or establishment of the United States.

(b) PURPOSES- It is the purpose of the Foundation to--

(1) in conjunction with the President's Council on Physical Fitness and

Sports, develop a list and description of programs, events and other

activities which would further the goals outlined in Executive Order

12345 and with respect to which combined private and governmental

efforts would be beneficial; and

(2) encourage and promote the participation by private organizations in

the activities referred to in paragraph (1) and to encourage and promote

private gifts of money and other property to support those activities.

shall transfer, after the deduction of the administrative expenses of the

Foundation, the balance of any contributions received for the activities

referred to in subsection (b), to the Public Health Service Gift Fund

pursuant to section 231 of the Public Health Service Act (42 U.S.C. 238) for

expenditure pursuant to the provisions of that section and consistent with

the purposes for which the funds were donated.

SEC. 3. BOARD OF DIRECTORS OF THE FOUNDATION.

(a) ESTABLISHMENT AND MEMBERSHIP-

(1) IN GENERAL- The Foundation shall have a governing Board of Directors

(hereinafter referred to in this Act as the `Board'), which shall

consist of nine Directors, to be appointed not later than 90 days after

the date of the enactment of this Act, each of whom shall be a United

States citizen and--

(A) three of whom must be knowledgeable or experienced in one or

more fields directly connected with physical fitness, sports, or the

relationship between health status and physical exercise; and

(B) six of whom must be leaders in the private sector with a strong

interest in physical fitness, sports, or the relationship between

health status and physical exercise (one of whom shall be a

representative of the United States Olympic Committee).

The membership of the Board, to the extent practicable, shall represent

diverse professional specialties relating to the achievement of physical

fitness through regular participation in programs of exercise, sports,

and similar activities.

(2) EX OFFICIO MEMBERS- The Assistant Secretary for Health, the

Executive Director of the President's Council on Physical Fitness and

Sports, the Director for the National Center for Chronic Disease

Prevention and Health Promotion, the Director of the National Heart,

Lung, and Blood Institute and the Director for the Centers for Disease

Control and Prevention shall serve as ex officio, nonvoting members of

the Board.

(3) NOT FEDERAL EMPLOYMENT- Appointment to the Board or service as a

member of the staff of the Board shall not constitute employment by, or

the holding of an office of, the United States for the purposes of any

Federal employment or other law.

(b) APPOINTMENT AND TERMS-

(1) APPOINTMENT- Of the members of the Board appointed under subsection

(a)(1), three shall be appointed by the Secretary of Health and Human

Services (hereinafter referred to in this Act as the `Secretary'), two

shall be appointed by the majority leader of the Senate, one shall be

appointed by the minority leader of the Senate, two shall be appointed

by the Speaker of the House of Representatives, and one shall be appointed by

the minority leader of the House of Representatives. The three members appointed

by the Secretary shall include the representative of the United States Olympic

Committee.

(2) TERMS- Members appointed to the Board under subsection (a)(1) shall

serve for a term of 6 years. A vacancy on the Board shall be filled

within 60 days of the date on which such vacancy occurred in the manner

in which the original appointment was made. A member appointed to fill a

vacancy shall serve for the balance of the term of the individual who

was replaced. No individual may serve more than two consecutive terms as

a Director.

members and serve for a 2-year term. The Chairperson shall not be limited in

terms or service. The Chairman of the President's Council on Physical

Fitness and Sports shall serve as Chairperson until a Chairperson is elected

by the Board.

(d) QUORUM- A majority of the sitting members of the Board shall constitute

a quorum for the transaction of business.

(e) MEETINGS- The Board shall meet at the call of the Chairperson, but in no

event less than once each year. If a Director misses three consecutive

regularly scheduled meetings, that individual may be removed from the Board

and the vacancy filled in accordance with subsection (b)(2).

(f) REIMBURSEMENT OF EXPENSES- The members of the Board shall serve without

pay. The members of the Board shall be allowed travel expenses, including

per diem in lieu of subsistence, at rates authorized for employees of

agencies under subchapter I of chapter 57 of title 5, United States Code,

while away from their homes or regular places of business in the performance

of services for the Board.

(g) GENERAL POWERS-

(1) ORGANIZATION- The Board may complete the organization of the

Foundation by--

(A) appointing officers and employees;

(B) adopting a constitution and bylaws consistent with the purposes

of the Foundation and the provisions of this Act; and

provisions of this Act.

In establishing bylaws under this paragraph, the Board shall provide for

policies with regard to financial conflicts of interest and ethical

standards for the acceptance, solicitation, and disposition of donations

and grants to the Foundation.

(2) LIMITATIONS ON OFFICERS AND EMPLOYEES- The following limitations

apply with respect to the appointment of officers and employees of the

Foundation:

(A) Officers and employees may not be appointed until the Foundation

has sufficient funds to compensate such individuals for their

service. No individual so appointed may receive pay in excess of the

annual rate of basic pay in effect for Executive Level V in the

Federal service.

(B) The first officer or employee appointed by the Board shall be

the secretary of the Board who--

(i) shall serve, at the direction of the Board, as its chief

operating officer; and

(ii) shall be knowledgeable and experienced in matters relating

to physical fitness and sports.

relative of such an employee may serve as an officer or member of

the Board of Directors or as an employee of the Foundation.

(D) Any individual who is an officer, employee, or member of the

Board of the Foundation may not (in accordance with the policies

developed under paragraph (1)(B)) personally or substantially

participate in the consideration or determination by the Foundation

of any matter that would directly or predictably affect any

financial interest of the individual or a relative (as such term is

defined in section 109(16) of the Ethics in Government Act of 1978)

of the individual, of any business organization or other entity, or

of which the individual is an officer or employee, or is negotiating

for employment, or in which the individual has any other financial

interest.

SEC. 4. RIGHTS AND OBLIGATIONS OF THE FOUNDATION.

(a) IN GENERAL- The Foundation--

(1) shall have perpetual succession;

(2) may conduct business throughout the several States, territories, and

possessions of the United States;

(3) shall locate its principal offices in or near the District of

Columbia; and

(4) shall at all times maintain a designated agent authorized to accept

service of process for the Foundation.

The serving of notice to, or service of process upon, the agent required

under paragraph (4), or mailed to the business address of such agent, shall

be deemed as service upon or notice to the Foundation.

(b) SEAL- The Foundation shall have an official seal selected by the Board

which shall be judicially noticed.

have the usual powers of a corporation acting as a trustee in the District

of Columbia, including the power--

(1) except as otherwise provided herein, to accept, receive, solicit,

hold, administer, and use any gift, devise, or bequest, either

absolutely or in trust, of real or personal property or any income

therefrom or other interest therein;

(2) to acquire by purchase or exchange any real or personal property or

interest therein;

(3) unless otherwise required by the instrument of transfer, to sell,

donate, lease, invest, reinvest, retain, or otherwise dispose of any

property or income therefrom;

(4) to sue and be sued, and complain and defend itself in any court of

competent jurisdiction, except for gross negligence;

(5) to enter into contracts or other arrangements with public agencies

and private organizations and persons and to make such payments as may

be necessary to carry out its functions; and

(6) to do any and all acts necessary and proper to carry out the

purposes of the Foundation.

For purposes of this Act, an interest in real property shall be treated as

including, among other things, easements or other rights for preservation,

conservation, protection, or enhancement by and for the public of natural,

scenic, historic, scientific, educational, inspirational, or recreational

resources. A gift, devise, or bequest may be accepted by the Foundation even

though it is encumbered, restricted, or subject to beneficial interests of

private persons if any current or future interest therein is for the benefit

of the Foundation.

SEC. 5. PROTECTION AND USES OF TRADEMARKS AND TRADE NAMES.

(a) PROTECTION- Without the consent of the Foundation, in conjunction with

the President's Council on Physical Fitness and Sports, any person who uses

for the purpose of trade, to induce the sale of any goods or services, or to

promote any theatrical exhibition, athletic performance, or competition--

(1) the official seal of the President's Council on Physical Fitness and

Sports consisting of the eagle holding an olive branch and arrows with

shield breast encircled by the name `President's Council on Physical

Fitness and Sports';

(2) the official seal of the Foundation; and

(3) any trademark, trade name, sign, symbol, or insignia falsely

representing association with, or authorization by, the President's

Council on Physical Fitness and Sports or the Foundation;

shall be subject in a civil action by the Foundation for the remedies

provided for in the Act of July 5, 1946 (60 Stat. 427; commonly known as the

Trademark Act of 1946).

(b) USES- The Foundation, in conjunction with the President's Council on

Physical Fitness and Sports, may authorize contributors and suppliers of

goods or services to use the trade name of the President's Council on

Physical Fitness and Sports and the Foundation, as well as any trademark,

seal, symbol, insignia, or emblem of the President's Council on Physical

Fitness and Sports or the Foundation, in advertising that the contributions,

goods or services when donated, supplied, furnished to or for the use of,

approved, selected, or used by the President's Council on Physical Fitness

and Sports or the Foundation.

SEC. 6. VOLUNTEER STATUS.

The Foundation may accept, without regard to the civil service

classification laws, rules, or regulations, the services of volunteers in

the performance of the functions authorized herein, in the same manner as

provided for under section 7(c) of the Fish and Wildlife Act of 1956 (16

U.S.C. 742f(c)).

SEC. 7. AUDIT, REPORT REQUIREMENTS, AND PETITION OF ATTORNEY GENERAL FOR

EQUITABLE RELIEF.

(a) AUDITS- For purposes of Public Law 88-504 (36 U.S.C. 1101 et seq.), the

Foundation shall be treated as a private corporation under Federal law. The

Inspector General of the Department of Health and Human Services and the

Comptroller General of the United States shall have access to the financial

and other records of the Foundation, upon reasonable notice.

(b) REPORT- The Foundation shall, as soon as practicable after the end of

each fiscal year, transmit to the Secretary and to Congress a report of its

proceedings and activities during such year, including a full and complete

statement of its receipts, expenditures, and investments.

Foundation--

(1) engages in, or threatens to engage in, any act, practice, or policy

that is inconsistent with the purposes described in section 2(b); or

(2) refuses, fails, or neglects to discharge its obligations under this

Act, or threatens to do so;

the Attorney General may petition in the United States District Court for

the District of Columbia for such equitable relief as may be necessary or

appropriate.

END