[Congressional Record Volume 142, Number 134 (Wednesday, September 25, 1996)]
[Senate]
[Pages S11329-S11331]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   NATIONAL PHYSICAL FITNESS AND SPORTS FOUNDATION ESTABLISHMENT ACT

  Mr. GRASSLEY. Mr. President, I ask unanimous consent the Senate 
proceed to the immediate consideration of Calendar No. 550, and that 
happens to be S. 1311.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       A bill (S. 1311) to establish a National 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.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill.


                           Amendment No. 5403

       (Purpose: To make minor and technical changes in the bill 
     as reported)
  Mr. GRASSLEY. Senator Pressler has an amendment at the desk that 
would make technical corrections. I ask for its consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Iowa [Mr. Grassley], for Mr. Pressler, 
     proposes an amendment numbered 5403.

  Mr. GRASSLEY. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       On page 2, line 8, strike ``nonprofit'' and insert ``not 
     for profit''.
       On page 2, line 10, after the period insert the following: 
     ``The Foundation shall be established as an organization 
     described in section 501(c)(3) of the Internal Revenue Code 
     of 1986 and shall be presumed, for purposes of such Code, to 
     be such an organization until the Secretary of the Treasury 
     determines that the Foundation does not meet the requirements 
     applicable to such an organization. Section 508(a) of such 
     Code does not apply to the Foundation.''.
       On page 5, line 8, after the period, insert the following: 
     ``The three members appointed by the Secretary shall include 
     the representative of the United States Olympic Committee.''.
       On page 5, line 21, after the period insert the following: 
     ``The Chairman of the President's Council on Physical Fitness 
     shall

[[Page S11330]]

     serve as Chairperson until a Chairperson is elected by the 
     Board.''.
       On page 12, line 4, strike ``contributions,'' and insert 
     ``contributions,''.

  Mr. PRESSLER. Mr. President, I am pleased to bring to the Senate S. 
1311, the National Physical Fitness and Sports Foundation Establishment 
Act. S. 1311, would create a charitable, not-for-profit foundation to 
actively raise private funds to support the activities of the 
President's Council on Physical Fitness, President's Council.
  In the past, the President's Council has relied on Federal 
appropriations to support its activities. Future appropriations for the 
President's Council are unlikely as we strive to balance the Federal 
budget.
  The Foundation created by this bill would raise private funds to 
sustain the President's Council on Physical Fitness. To facilitate 
fund-raising, the Foundation is permitted to offer the use of the seal 
of the President's Council for promotional purposes in exchange for 
sponsorship funds. The bill does not authorize the expenditure of 
Federal funds.
  The goals of the President's Council are identified in Executive 
Order 12345. The primary goal is to foster programs that encourage 
people of all ages to participate regularly in sports and physical 
activities. Perhaps the Council's most well known activity is the 
President's Challenge Physical Fitness Awards Program which is 
administered by teachers and youth programs in every State. We should 
act to preserve the President's Council. Its activities are 
particularly important because our Nation's children are becoming 
increasingly less physically fit even as we learn that physical fitness 
in one's youth is important to living a healthy life during adulthood.
  Senators Campbell and Bradley introduced this bill in October 1995. 
The Committee on Commerce, Science, and Transportation unanimously 
ordered the bill reported on June 6, 1996. I have an amendment that 
makes certain technical modifications to the bill. I urge my colleagues 
to support this worthy legislation.
  Mr. GRASSLEY. I ask unanimous consent the amendment be agreed to, the 
bill be deemed read a third time, passed, the motion to reconsider be 
laid upon the table, and that any statements relating to the bill be 
printed at the appropriate place in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 5403) was agreed to.
  The bill (S. 1311), as amended, was deemed read for a third time and 
passed as follows:

                                S. 1311

       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. The 
     Foundation shall be established as an organization described 
     in section 501(c)(3) of the Internal Revenue Code of 1986 and 
     shall be presumed, for purposes of such Code, to be such an 
     organization until the Secretary of the Treasury determines 
     that the Foundation does not meet the requirements applicable 
     to such an organization. Section 508(a) of such Code does not 
     apply to the Foundation.
       (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 subsection 
     (b)(1) and to encourage and promote private gifts of money 
     and other property to support those activities.
       (c) Disposition of Money and Property.--At least annually 
     the Foundation 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 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 which 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 
     serving 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.
       (c) Chairperson.--A Chairperson shall be elected by the 
     Board from among its 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 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 provision of this Act; and
       (C) undertaking such other acts as may be necessary to 
     carry out the 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--

[[Page S11331]]

       (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.
       (C) No Public Health Service employee nor the spouse or 
     dependent 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.
       (c) Powers.--To carry out the purposes under section 2, the 
     Foundation shall 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 
     name ``President's Council on Physical Fitness and Sports'';
       (2) the official seal of the Foundation;
       (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 9, 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, or 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.
       (c) Relief With Respect to Certain Foundation Acts or 
     Failure To Act.--If the 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 threaten 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.

                          ____________________