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






                                                       Calendar No. 237
108th CONGRESS
  1st Session
                                S. 1404

                          [Report No. 108-114]

        To amend the Ted Stevens Olympic and Amateur Sports Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 15, 2003

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

                July 28 (legislative day, July 21), 2003

                Reported by Mr. McCain, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 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,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Olympic Committee 
Reform Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) There is a widespread loss of confidence in the United 
        States Olympic Committee.
            (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.
            (3) Confusion exists concerning the primary purposes and 
        priorities of the United States Olympic Committee.
            (4) The current governance structure of the United States 
        Olympic Committee is dysfunctional.
            (5) The ongoing national corporate governance debate and 
        recent reforms have important implications for the United 
        States Olympic Committee.
            (6) There exists no clear line of authority between the 
        United States Olympic Committee volunteers and the United 
        States Olympic Committee paid staff.
            (7) There is a widespread perception that the United States 
        Olympic Committee lacks financial transparency.

SEC. 3. AMENDMENT OF TED STEVENS OLYMPIC AND AMATEUR SPORTS ACT.

    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.).

SEC. 4. GOVERNANCE OF THE UNITED STATES OLYMPIC COMMITTEE.

    (a) In General.--The Act (36 U.S.C. 220501) is amended by adding at 
the end the following:

                      ``SUBCHAPTER III. GOVERNANCE

``Sec. 220541. Board of directors
    ``(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.
    ``(b) Structure of the Board.--
            ``(1) In general.--The board of directors shall consist of 
        9 elected members and the ex officio members described in 
        paragraph (3).
            ``(2) Elected members.--The elected directors, elected as 
        provided in subsection (g), are--
                    ``(A) 5 independent directors, as defined in the 
                constitution and bylaws of the corporation;
                    ``(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; and
                    ``(C) 2 directors elected from among those 
                nominated by the National Governing Bodies' Council.
            ``(3) Ex officio members.--The ex officio members are--
                    ``(A) the speaker of the assembly; and
                    ``(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.
    ``(c) Terms of Office.--
            ``(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--
                    ``(A) 2 of the directors elected under paragraph 
                (2)(A) shall be elected for terms of 2 years;
                    ``(B) 3 of the directors elected under paragraph 
                (2)(A) shall be elected for terms of 4 years;
                    ``(C) 1 of the directors elected under paragraph 
                (2)(B) shall be elected for a term of 2 years;
                    ``(D) 1 of the directors elected under paragraph 
                (2)(B) shall be elected for a term of 4 years;
                    ``(E) 1 of the directors elected under paragraph 
                (2)(C) shall be elected for a term of a term of 2 
                years; and
                    ``(F) 1 of the directors elected under paragraph 
                (2)(C) shall be elected for a term of a term of 4 
                years.
            ``(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 of speaker 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.
    ``(d) Voting.--
            ``(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.
            ``(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.
            ``(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.
            ``(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).
    ``(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.
    ``(f) Committees.--
            ``(1) In general.--The board of directors shall establish 
        the following 4 standing committees:
                    ``(A) The Audit Committee.
                    ``(B) The Compensation Committee.
                    ``(C) The Ethics Committee.
                    ``(D) The Nominating and Governance Committee.
            ``(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--
                    ``(A) 3 board members described in subsection 
                (b)(2)(A), selected by the board;
                    ``(B) 1 board member described in subsection 
                (b)(2)(B), selected by the board; and
                    ``(C) 1 board member described in subsection 
                (b)(2)(C), selected by the board.
            ``(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.
    ``(g) Nomination and Election.--
            ``(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.
            ``(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.
            ``(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.
``Sec. 220542. Assembly
    ``(a) In General.--
            ``(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.
            ``(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.
            ``(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.
            ``(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.
    ``(b) Structure of the Assembly.--
            ``(1) In general.--The assembly shall consist of--
                    ``(A) representatives of the constituencies of the 
                corporation specified in section 220504 of this title 
                (other than former United States Olympic Committee 
                members);
                    ``(B) the International Olympic Committee's members 
                for the United States; and
                    ``(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.
            ``(2) Amateur athlete representation.--Amateur athletes 
        shall constitute not less than 20 percent of the membership in 
        the assembly.
    ``(c) Voting.--
            ``(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.
            ``(2) Amateur athletes.--Amateur athletes shall constitute 
        not less than 20 percent of the voting power held in the 
        assembly.
    ``(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.
``Sec. 220543. Chief executive officer
    ``(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.
    ``(b) Duties.--The chief executive officer shall, either directly 
or by delegation--
            ``(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; and
            ``(2) implement the mission and policies of the 
        corporation, as determined by the Board.
``Sec. 220544. Whistleblower procedures and protections
    ``The corporation, through the board of directors, shall establish 
procedures for--
            ``(1) the receipt, retention, and treatment of complaints 
        received by the corporation regarding accounting, auditing or 
        ethical matters; and
            ``(2) the protection against retaliation by any officer, 
        employee, director or member of the corporation against any 
        person who submits such complaints.
``Sec. 220545. Ethics and compliance
    ``(a) In General.--The ethics committee shall be responsible for 
oversight of--
            ``(1) all matters relating to ethics policy and practices 
        of the corporation's employees, board members, and volunteers;
            ``(2) officers or directors of a member organization 
        insofar as their activities relate to corporation business; and
            ``(3) paid and volunteer leadership staff of a bid city 
        organization for activities that relate directly to the bid 
        city process.
    ``(b) Internal Ethics Officer.--
            ``(1) In general.--The board of directors shall employ and 
        fix the compensation of a chief ethics officer to implement the 
        ethics policy for the corporation.
            ``(2) Duties.--The ethics committee shall establish 
        policies and procedures to delineate the duties of the chief 
        ethics officer.
            ``(3) Line of authority.--
                    ``(A) In general.--The chief ethics officer shall 
                report to the chief executive officer of the 
                corporation.
                    ``(B) Certain parties.--Notwithstanding 
                subparagraph (A), the chief ethics officer shall report 
                to the ethics committee whenever an alleged violation 
                involves--
                            ``(i) senior management or directors of the 
                        corporation;
                            ``(ii) officers or directors of a member 
                        organization;
                            ``(iii) a bid city; or
                            ``(iv) the International Olympic Committee.
    ``(c) Ethics Policy.--The ethics committee shall establish an 
ethics policy for the corporation, subject to the approval of the board 
of directors, modeled upon the best practices used in corporate and 
government offices. The policy shall include--
            ``(1) a conflict of interest policy;
            ``(2) an anti-discrimination policy;
            ``(3) a workplace harassment policy;
            ``(4) a gift, travel reimbursement, honorarium, and outside 
        income policy;
            ``(5) a financial propriety policy, including a prohibition 
        on loans to corporation officers and employees;
            ``(6) a bid-city policy which includes a transparent and 
        objective set of criteria published in advance by which the 
        corporation will choose a United States city to submit a bid to 
        the International Olympic Committee for an Olympic games, which 
        adheres in all respects to the rules and ethics guidelines of 
        the Olympic Charter and the International Olympic Committee, 
        and which applies to the leaders and staff of a city, or 
        organizations representing a bid city, that file an official 
        bid with the corporation to host Olympic games;
            ``(7) potential sanctions and penalties for violations of 
        the ethics policy, which may include removal from corporation 
        duties;
            ``(8) a procedure for reporting and investigating potential 
        ethics violations; and
            ``(9) procedures to assure due process for any individual 
        accused of an ethics violation, including--
                    ``(A) a timely hearing before the ethics committee;
                    ``(B) the right to be represented by counsel; and
                    ``(C) access to all documentation and statements 
                that would be used in an ethics proceeding against that 
                individual.
    ``(d) Written Statement Required.--All members of the board, 
employees, and officers, directors of member organizations, and leaders 
or representatives of United States bid cities must sign a statement 
that they have read the corporation's ethics policy and agree to abide 
by its rules.
    ``(e) Ethics Committee Adjudication of Violations.--When the ethics 
committee determines that an individual has violated the corporation's 
ethics policy, it will report to the Board and may make recommendations 
for action to be taken.
    ``(f) Investigation, Reporting, and Review Procedures.--The ethics 
committee shall establish a procedure for the prompt review and 
investigation of ethics violations, and establish regular reporting and 
review procedures to document the number and types of complaints or 
issues brought to the ethics committee and the ethics officer.
    ``(g) Outside Counsel.--The ethics committee may hire outside 
counsel to conduct investigations, report findings, and make 
recommendations.
    ``(h) Bid City Defined.--In this section, the term `bid city' means 
1 or more cities, States, regional organizations, or other 
organizations that file an official bid with the corporation to be 
chosen as the site nominated by the United States to the International 
Olympic Committee to host an Olympic Games.''.
    (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.
    (c) Initial Nominating and Governance Committee.--
            (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--
                    (A) 1 individual selected by the Athlete's Advisory 
                Council from among its members;
                    (B) 1 individual selected by the National Governing 
                Bodies' Council from among its members;
                    (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;
                    (D) 1 individual selected by the Independent 
                Commission on Reform of the established by the United 
                States Olympic Committee in March, 2003, from among its 
                members, who shall chair the committee; and
                    (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.
            (2) Election of new board of directors.--The nominating and 
        governance committee established by paragraph (1) shall--
                    (A) elect an initial board or directors who shall 
                serve for the terms provided in section 220541(c)(2) of 
                title 36, United States Code; and
                    (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.
    (d) Conforming Amendments.--
            (1) Representation requirements.--Section 220504(b) is 
        amended--
                    (A) by striking ``representation of--'' and 
                inserting ``representation on its board of directors 
                and in its assembly of--''; and
                    (B) by striking subparagraph (B) of paragraph (2) 
                and inserting the following:
                    ``(B) ensure that--
                            ``(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; and
                            ``(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;''.
            (2) Constitution and bylaws.--Section 220505(a) is 
        amended--
                    (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.'';
                    (B) by inserting ``the board of directors proposes 
                and approves by majority vote such an amendment and'' 
                after ``only if''; and
                    (C) by striking ``publication,'' in paragraph (1) 
                and inserting ``publication and on its website,''.
            (3) Ombudsman to report to board of directors.--Section 
        220509(b) is amended--
                    (A) by inserting ``the board of directors and'' in 
                paragraph (1)(C) after ``report to'';
                    (B) by striking ``corporation's executive 
                director'' in paragraph (2)(A)(i) and inserting ``board 
                of directors'';
                    (C) by striking clauses (ii) and (iii) of paragraph 
                (2)(A) and inserting the following:
                            ``(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.'';
                    (D) by striking ``corporation'' the first place it 
                appears in paragraph (2)(B) and inserting ``board of 
                directors'';
                    (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''; and
                    (F) by striking ``corporation's executive 
                committee'' in paragraph (2)(B)(iii) and inserting 
                ``board of directors''.
            (4) Eligibility requirements.--Section 220522(a)(4)(B) is 
        amended by striking ``corporation's executive committee'' and 
        inserting ``board of directors''.
            (5) Chapter analysis.--The chapter analysis for chapter 
        2205 <DELETED>of title 36, United States Code, </DELETED>is 
        amended by adding at the end the following:

                      ``SUBCHAPTER III. GOVERNANCE

        ``220541. Board of directors
        ``220542. Assembly
        ``220543. Chief executive officer
        ``220544. Whistleblower procedures and protections
        ``220545. Ethics and compliance''.

SEC. 5. REPORTS.

    Section 220511 is amended--
            (1) by striking so much of subsection (a) as precedes 
        paragraph (2) and inserting the following:
    ``(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''.

SEC. 6. SENIOR OLYMPICS.

    Notwithstanding section 220506(a) of title 36, United States Code, 
the National Senior Games Association of Baton Rouge, Louisiana, is 
authorized to use the words ``Senior Olympics'' to promote national 
athletic competition among senior citizens.




                                                       Calendar No. 237

108th CONGRESS

  1st Session

                                S. 1404

                          [Report No. 108-114]

_______________________________________________________________________

                                 A BILL

        To amend the Ted Stevens Olympic and Amateur Sports Act.

_______________________________________________________________________

                July 28 (legislative day, July 21), 2003

                        Reported with amendments