[Congressional Record Volume 149, Number 104 (Tuesday, July 15, 2003)]
[Senate]
[Pages S9416-S9419]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN (for himself and Mr. Stevens):

  S. 1404. A bill to amend the Ted Stevens Olympic and Amateur Sports 

Act; to the Committee on Commerce, Science, and Transportation.

  Mr. McCAIN. Mr. President, today, I am joined by Senator Stevens in 

introducing the United States Olympic Committee Reform Act of 2003. 

This legislation is designed to reform the governance structure of the 

United States Olympic Committee, USOC, in response to a series of 

embarrassing events that has beset the USOC and threatened the 

organization's credibility in the eyes of our athletes, the American 

people, and the international sports community.

  While the current mission of the USOC is to ``preserve and promote 

the Olympic ideal as an effective, positive role model that inspires 

all Americans,'' turmoil within the organization over the past decade 

has seriously compromised that mission and has amplified significant 

problems that exist within its governance structure and culture. By 

failing to place the organization ahead betrayed the Olympic ideals 

that they pledged to preserve.

  The bill that we are introducing today is the product of three 

hearings held this year by the Senate Committee on Commerce, Science, 

and Transportation in response to several USOC scandals and in an 

effort to help begin reforming the organization. It also is informed by 

the report of an independent commission requested by the Commerce 

Committee to review the USOC, and a review by an internal USOC task 

force, both of which were released last month.

  The bill would make significant improvements to the governance 

structure of the USOC by reducing the size of the current board of 

directors from





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124 to nine members and by creating an assembly of USOC stakeholders. 

Unlike the current duopolistic leadership structure of the USOC, the 

board would be the primary governing body of the USOC, and it would 

appoint a chief executive officer to carry out its policies and run its 

day-to-day operations. As such, the USOC will become a more efficient 

and effective organization, as well as one with a more logical and 

transparent structure.

  In addition, the bill would maintain the authority of athletes and 

national governing bodies in the operation of the USOC, require 

increased financial transparency, and provide whistle-blower protection 

for USOC employees. Most importantly, however, this bill would 

streamline the organization to allow a larger percentage of USOC 

revenues to be dedicated to support amateur athletes. Instead of 

supporting a large and wasteful corporate structure, the reformed USOC 

will be able to dedicate fewer resources to a small and more effective 

governing body.

  We must be mindful that the Olympic movement is not about people who 

attach themselves to the USOC for their own benefit. It is a movement 

that is driven by athletes who dedicate their bodies and souls to 

improving their God-given talent with the hope of someday realizing 

their Olympic dreams. The USOC is an entity entrusted by the American 

people with the privilege of being the custodian of these dreams. We 

must act quickly to ensure that the self-serving agendas of individual 

USOC constituencies are no longer paramount to the common objectives of 

the organization.

  The problems that plague the USOC compromise the organization's 

ability to operate effectively and efficiently and undermine the 

credibility of the organization. I believe this bill would provide 

realistic remedial measures to these problems, and I urge my colleagues 

to support its expeditious enactment.

  I ask unanimous consent that the text of the bill be printed in the 

Record.

  There being no objection, the bill was ordered to be printed in the 

Record, as follows:



                                S. 1404



       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





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     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.''.

       (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 of title 36, United States Code, 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''.



     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''.





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