[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1404 Introduced in Senate (IS)]

<DOC>






108th CONGRESS
  1st Session
                                S. 1404

        To amend the Ted Stevens Olympic and Amateur Sports Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

July 15, 200347Mr. McCain (for himself and Mr. Stevens) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
        To amend the Ted Stevens Olympic and Amateur Sports Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,72SECTION 1. SHORT 
TITLE.20    This Act may be cited as the ``United States Olympic 
Committee Reform Act''.72SEC. 2. FINDINGS.20    The Congress finds the 
following:22    (1) There is a widespread loss of confidence in the 
United States Olympic Committee.22    (2) Restoring confidence in the 
United States Olympic Committee is critical to achieving the original 
intent of the Ted Stevens Amateur and Olympic Sports Act.22    (3) 
Confusion exists concerning the primary purposes and priorities of the 
United States Olympic Committee.22    (4) The current governance 
structure of the United States Olympic Committee is dysfunctional.22    
(5) The ongoing national corporate governance debate and recent reforms 
have important implications for the United States Olympic Committee.22  
  (6) There exists no clear line of authority between the United States 
Olympic Committee volunteers and the United States Olympic Committee 
paid staff. 22    (7) There is a widespread perception that the United 
States Olympic Committee lacks financial transparency.72SEC. 3. 
AMENDMENT OF TED STEVENS OLYMPIC AND AMATEUR SPORTS ACT.20    Except as 
otherwise expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of the Ted Stevens Olympic and 
Amateur Sports Act (36 U.S.C. 220501 et seq.).72SEC. 4. GOVERNANCE OF 
THE UNITED STATES OLYMPIC COMMITTEE.20    (a) In General.--The Act (36 
U.S.C. 220501) is amended by adding at the end the 
following:74``SUBCHAPTER III. GOVERNANCE75``Sec. 1A220541. Board of 
directors20    ``(a) In General.--The board of directors is the 
governing body of the corporation and shall establish the policies and 
priorities of the corporation. The board of directors shall have the 
full authority to manage the affairs of the corporation.20    ``(b) 
Structure of the Board.--22    ``(1) In general.--The board of 
directors shall consist of 9 elected members and the ex officio members 
described in paragraph (3). 22    ``(2) Elected members.--The elected 
directors, elected as provided in subsection (g), are--24    ``(A) 5 
independent directors, as defined in the constitution and bylaws of the 
corporation;24    ``(B) 2 directors elected from among those nominated 
by the Athletes' Advisory Council, who at the time of nomination meet 
the specifications of section 220504(b)(2)(B) of this title; and24    
``(C) 2 directors elected from among those nominated by the National 
Governing Bodies' Council.22    ``(3) Ex officio members.--The ex 
officio members are--24    ``(A) the speaker of the assembly; and24    
``(B) the International Olympic Committee member or members from the 
United States who are required to be ex officio members of the 
executive organ of the corporation under the terms of the Olympic 
Charter.20    ``(c) Terms of Office.--22    ``(1) Elected directors.--
The term of office of an elected director shall be 4 years. An 
individual elected to replace a director who does not serve a full 4-
year term shall be elected initially to serve only the balance of the 
expired term of the member that director replaces. No director shall be 
eligible for reelection, except a director whose total period of 
service, if elected, would not exceed 6 years. The chair of the board 
shall be eligible to serve an additional 2 years as required to 
complete his or her term as chair.
            ``(2) Staggered terms.--Notwithstanding paragraph (1), of 
        the directors first elected to the board after the date of 
        enactment of the United States Olympic Committee Reform Act--24  
          ``(A) 2 of the directors elected under paragraph (2)(A) shall 
        be elected for terms of 2 years;24    ``(B) 3 of the directors 
        elected under paragraph (2)(A) shall be elected for terms of 4 
        years;24    ``(C) 1 of the directors elected under paragraph 
        (2)(B) shall be elected for a term of 2 years;24    ``(D) 1 of 
        the directors elected under paragraph (2)(B) shall be elected 
        for a term of 4 years;24    ``(E) 1 of the directors elected 
        under paragraph (2)(C) shall be elected for a term of 2 years; 
        and24    ``(F) 1 of the directors elected under paragraph 
        (2)(C) shall be elected for a term of 4 years.22    ``(3) Ex 
        officio members.--The speaker of the assembly shall serve as a 
        non-voting ex officio member of the board while holding the 
        position of6201I70speaker of the assembly. An International 
        Olympic Committee member shall serve as an ex officio member of 
        the board for so long as the member is a member of that 
        Committee.20    ``(d) Voting.--22    ``(1) Elected members.--
        Each elected director shall have 1 vote on all matters on which 
        the board votes, consistent with the constitution and bylaws of 
        the corporation.22    ``(2) Ex officio members.--Each voting ex 
        officio member shall have 1 vote on matters on which the ex 
        officio members vote, consistent with the constitution and 
        bylaws of the corporation, and the votes of the ex officio 
        members shall be weighted such that, in the aggregate, the 
        votes of all voting ex officio members are equal to the vote of 
        one elected director.22    ``(3) Tie votes.--In the event of a 
        tie vote of the board, the vote of the chair of the board shall 
        serve to break the tie.22    ``(4) Quorum.--The board may not 
        take action in the absence of a quorum, which shall be 7 
        members, of whom at least 3 shall be members described in 
        subsection (b)(2)(A).20    ``(e) Chair of the Board.--The board 
        shall elect 1 of the members described in subsection (b)(2) to 
        serve as chair of the board first elected after the date of 
        enactment of the United States Olympic Committee Reform Act. 
        The chair of the board shall preside at all meetings of the 
        board and have such other duties as may be provided in the 
        constitution and bylaws of the corporation. No individual may 
        hold the position of chair of the board for more than 4 
        years.20    ``(f) Committees.--22    ``(1) In general.--The 
        board of directors shall establish the following 4 standing 
        committees:24    ``(A) The Audit Committee.24    ``(B) The 
        Compensation Committee.24    ``(C) The Ethics Committee.24    
        ``(D) The Nominating and Governance Committee.22    ``(2) 
        Committee membership.--The Compensation Committee shall consist 
        of 3 board members selected by the board. The Audit Committee, 
        Ethics Committee, and Nominating and Governance Committee shall 
        each consist of--24    ``(A) 3 board members described in 
        subsection (b)(2)(A), selected by the board;24    ``(B) 1 board 
        member described in subsection (b)(2)(B), selected by the 
        board; and24    ``(C) 1 board member described in subsection 
        (b)(2)(C), selected by the board.22    ``(3) Additional 
        committees.--The board may establish such additional 
        committees, subcommittees, and task forces as may be necessary 
        or appropriate and for which sufficient funds exist.20    ``(g) 
        Nomination and Election.--22    ``(1) In general.--The 
        nominating and governance committee shall recommend candidates 
        to the board of directors to fill vacancies on the board as 
        provided in the constitution and bylaws of the corporation. For 
        each vacancy that is to be filled by a nominee of the Athletes' 
        Advisory Council or the National Governing Bodies' Council, the 
        Athletes' Advisory Council or the National Governing Bodies' 
        Council shall recommend 3 individuals to the nominating and 
        governance committee, which shall nominate 1 of the recommended 
        individuals to the board of directors. 22    ``(2) Recusal of 
        members eligible for re-election.--Any member of the nominating 
        and governance committee who is eligible for re-election by 
        virtue of serving for an initial term of less than 2 years 
        shall be recused from participation in the nominating and 
        recommendation process.22    ``(3) Board to elect members.--
        Except as provided in section 4(c)(2) of the United States 
        Olympic Committee Reform Act, the board of directors shall 
        elect directors from the candidates proposed by the nominating 
        and governance committee.75``Sec. 1A220542. Assembly20    ``(a) 
        In General.--22    ``(1) Forum function.--The assembly shall be 
        a forum for all stakeholders of the corporation. The assembly 
        shall have an advisory function only, except as otherwise 
        expressly provided in this chapter.22    ``(2) Voting on 
        matters relating to the olympic games.--The assembly shall have 
        the right to vote on, and shall have ultimate authority to 
        decide, matters relating to the Olympic Games. The board of 
        directors shall determine whether a matter is a question 
        relating to the Olympic Games on which the assembly is entitled 
        to vote. The determination of the board shall be final and 
        binding.22    ``(3) Meetings.--The assembly shall convene 
        annually in a meeting open to the public. The board of 
        directors may convene special meetings of the assembly.22    
        ``(4) Annual budget.--The board of directors shall establish an 
        annual budget for the assembly, as provided in the constitution 
        and bylaws of the corporation. In establishing the budget, the 
        board of directors shall take into account the interest of the 
        corporation in minimizing the costs associated with the 
        assembly.20    ``(b) Structure of the Assembly.--22    ``(1) In 
        general.--The assembly shall consist of--24    ``(A) 
        representatives of the constituencies of the corporation 
        specified in section 220504 of this title (other than former 
        United States Olympic Committee members);24    ``(B) the 
        International Olympic Committee's members for the United 
        States; and 24    ``(C) not more than 3 individuals who have 
        represented the United States in an Olympic Games not within 
        the preceding 10 years, selected through a process to be 
        determined by the board of directors in accordance with the 
        constitution and bylaws of the corporation.6201I22    ``(2) 
        Amateur athlete representation.--Amateur athletes shall 
        constitute not less than 20 percent of the membership in the 
        assembly.20    ``(c) Voting.--22    ``(1) Representatives of 
        the national governing bodies.--Representatives of the national 
        governing bodies shall constitute not less than 51 percent of 
        the voting power held in the assembly. 22    ``(2) Amateur 
        athletes.--Amateur athletes shall constitute not less than 20 
        percent of the voting power held in the assembly.20    ``(d) 
        Speaker of the Assembly.--The speaker of the assembly shall be 
        a member of the assembly (who, as a member, is entitled to 
        vote) who is elected by the members of the assembly for a 4-
        year term. An individual may not serve as speaker for more than 
        4 years. The speaker shall preside at all meetings of the 
        assembly and serve as a non-voting ex officio member of the 
        board of directors as provided in section 220541. The speaker 
        shall have no other duties or powers (other than the right to 
        vote), except as may be expressly assigned by the board of 
        directors.75``Sec. 1A220543. Chief executive officer20    ``(a) 
        In General.--The corporation shall have a chief executive 
        officer who shall not be a member of the board of directors. 
        The chief executive officer shall be selected by, and shall 
        report to, the board of directors, as provided in the 
        constitution and bylaws of the corporation. The chief executive 
        officer shall be responsible, with board approval, for filling 
        other key senior management positions as provided in the 
        constitution and bylaws of the corporation.20    ``(b) 
        Duties.--The chief executive officer shall, either directly or 
        by delegation--22    ``(1) manage all staff functions and the 
        day-to-day affairs and business operations of the corporation, 
        including but not limited to relations with international 
        organizations; and22    ``(2) implement the mission and 
        policies of the corporation, as determined by the 
        Board.75``Sec. 1A220544. Whistleblower procedures and 
        protections20    ``The corporation, through the board of 
        directors, shall establish procedures for--22    ``(1) the 
        receipt, retention, and treatment of complaints received by the 
        corporation regarding accounting, auditing or ethical matters; 
        and22    ``(2) the protection against retaliation by any 
        officer, employee, director or member of the corporation 
        against any person who submits such complaints.''.20    (b) 
        Transition.--The individuals serving as members of the board of 
        directors of the United States Olympic Committee on the date of 
        enactment of this Act shall continue to serve as the board of 
        directors until a board of directors has been elected under 
        subsection (c)(2) of this section. 20    (c) Initial Nominating 
        and Governance Committee.--22    (1) In general.--Until the 
        initial board of directors has been elected and taken office, 
        the nominating and governance committee required by section 
        220541(f) of title 36, United States Code, shall consist of--24  
          (A) 1 individual selected by the Athlete's Advisory Council 
        from among its members;24    (B) 1 individual selected by the 
        National Governing Bodies' Council from among its members;24    
        (C) 1 individual selected by the public-sector directors of the 
        United States Olympic Committee from among such directors 
        serving on the date of enactment of this Act;24    (D) 1 
        individual selected by the Independent Commission on Reform 
        established by the United States Olympic Committee in March, 
        2003, from among its members, who shall chair the committee; 
        and24    (E) 1 individual selected by the Governance and Ethics 
        Task Force established by the United States Olympic Committee 
        in February, 2003, from among its members.22    (2) Election of 
        New Board of Directors.--The nominating and governance 
        committee established by paragraph (1) shall--24    (A) elect 
        an initial board of directors who shall serve for the terms 
        provided in section 220541(c)(2) of title 36, United States 
        Code; and24    (B) elect 1 of the members described in section 
        220541(b)(2)(A) of that title to serve as chair until the terms 
        of the members elected under subparagraph (A) have expired. 20  
          (d) Conforming Amendments.--22    (1) Representation 
        requirements.--Section 220504(b) is amended--24    (A) by 
        striking ``representation of--'' and inserting ``representation 
        on its board of directors and in its assembly of--''; and24    
        (B) by striking subparagraph (B) of paragraph (2) and inserting 
        the following:S6201I24    ``(B) ensure that--26    ``(i) the 
        membership and voting power of such amateur athletes is not 
        less than 20 percent of the membership and voting power of each 
        committee, subcommittee, working group, or other subordinate 
        decision-making group, of the corporation; and26    ``(ii) the 
        voting power held by members of the board of directors who were 
        nominated by the Athlete's Advisory Council is not less than 20 
        percent of the total voting power held in the board of 
        directors;''.22    (2) Constitution and bylaws.--Section 
        220505(a) is amended--24    (A) by striking ``bylaws.'' and 
        inserting ``bylaws consistent with this chapter, as determined 
        by the board of directors. The board of directors shall adopt 
        and amend the constitution and bylaws of the corporation, 
        consistent with this chapter.'';24    (B) by inserting ``the 
        board of directors proposes and approves by majority vote such 
        an amendment and'' after ``only if''; and24    (C) by striking 
        ``publication,'' in paragraph (1) and inserting ``publication 
        and on its website,''.22    (3) Ombudsman to report to board of 
        directors.--Section 220509(b) is amended--24    (A) by 
        inserting ``the board of directors and'' in paragraph (1)(C) 
        after ``report to'';24    (B) by striking ``corporation's 
        executive director'' in paragraph (2)(A)(i) and inserting 
        ``board of directors'';24    (C) by striking clauses (ii) and 
        (iii) of paragraph (2)(A) and inserting the following:26    
        ``(ii) The board of directors shall hire or not hire such 
        person after fully considering the advice and counsel of the 
        Athlete's Advisory Council.'';24    (D) by striking 
        ``corporation'' the first place it appears in paragraph (2)(B) 
        and inserting ``board of directors'';24    (E) by striking ``to 
        the corporation's executive committee by either the 
        corporation's executive director'' in paragraph (2)(B)(ii) and 
        inserting ``by 1 or more members of the board of directors''; 
        and24    (F) by striking ``corporation's executive committee'' 
        in paragraph (2)(B)(iii) and inserting ``board of 
        directors''.22    (4) Eligibility requirements.--Section 
        220522(a)(4)(B) is amended by striking ``corporation's 
        executive committee'' and inserting ``board of directors''.22    
        (5) Chapter analysis.--The chapter analysis for chapter 2205 of 
        title 36, United States Code, is amended by adding at the end 
        the following:10621174``SUBCHAPTER III. GOVERNANCE43``220541. 
        Board of directors43``220542. Assembly43``220543. Chief 
        executive officer43``220544. Whistleblower procedures and 
        protections''.620172SEC. 5. REPORTS.20    Section 220511 is 
        amended--22    (1) by striking so much of subsection (a) as 
        precedes paragraph (2) and inserting the following:20    ``(a) 
        Biennial Report.--On or before the first day of June of every 
        other year, the corporation shall transmit simultaneously to 
        the President and to each House of Congress a detailed report 
        of its operations for the preceding 2 years, including--
            ``(1) annual financial statements--
                    ``(A) audited in accordance with generally accepted 
                accounting principles by an independent certified 
                public accountant; and 
                    ``(B) certified by the chief executive officer and 
                the chief financial officer of the corporation as to 
                their accuracy and completeness;'';
            (2) by striking ``4-year period;'' in subsection (a)(2) and 
        inserting ``2-year period;''; and
            (3) by inserting ``free of charge on its website (or via a 
        similar medium that is widely available to the public), and 
        otherwise'' in subsection (b) after ``persons''.