[Congressional Record Volume 150, Number 86 (Monday, June 21, 2004)]
[Senate]
[Pages S7106-S7110]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FRIST (for himself and Mr. Wyden):
  S. 2551. A bill to reduce and prevent childhood obesity by 
encouraging schools and school districts to develop and implement 
local, school-based programs designed to reduce and prevent childhood 
obesity, promote increased physical activity, and improve nutritional 
choices; to the Committee on Health, Education, Labor, and Pensions.
  Mr. FRIST. Madam President, last Thursday, the Centers for Disease 
Control and Prevention announced that smoking among high school 
students has dropped to its lowest level in more than a decade. As a 
heart and lung surgeon, as one who has seen the travesty of smoking and 
the devastation it causes in people's lungs and on their heart, this is 
great news. We are making great strides in this battle against smoking, 
especially in the teenage years.
  Fewer students now say they have never tried cigarettes. The CDC 
gives part of the credit to effective antismoking media campaigns and 
antismoking education in the classroom. I mention this demonstrated 
success, because it energizes us in the battle against an issue that is 
equally important and, in fact, actually growing among young people, 
and that is childhood obesity.
  The CDC report demonstrates that aggressive education can steer kids 
away from harmful behaviors and toward making healthier choices. While 
food is not exactly like cigarettes, one cannot just say no. Childhood 
obesity is a serious public health threat and a threat that is growing. 
In fact, the CDC reports that obesity is on its way to surpassing 
smoking as the leading preventable killer in the United States of 
America, and that is why Senator Wyden and I today are introducing a 
bill called the Childhood Obesity Reduction Act.
  We believe early intervention with community and school support at 
the grassroots level is key to preventing lifelong obesity and the 
obesity-related illnesses that result. Ten percent of American children 
are clinically obese. More than 30 percent of American children are 
overweight, and we know that overweight and obese children have a lower 
quality of life than their healthy peers. They suffer significantly 
higher rates of type II diabetes and cardiovascular--that is, heart--
and blood vessel disease, including heart attack, stroke, and 
congestive heart failure. Later in life, they are more likely to suffer 
from lung disease or pulmonary disease complications like sleep apnea, 
musculoskeletal problems--that is, bone and muscle problems--which 
include degenerative joint disease and disk disease, and also are more 
likely to suffer psychosocial problems, including poor self-image, 
depression, lack of self-esteem, and isolation.
  A recent study published in Pediatrics Magazine found that obese boys 
and girls were two times more likely than normal weight children to be 
intentionally left out of social activities. After adolescence, 
overweight kids have a 70-percent chance of becoming overweight or 
obese adults.
  The good news is that we can reverse these trends. We need to reverse 
these trends, and we can reverse these trends. Our kids simply should 
not have to suffer from a condition that is preventable and treatable 
based on what we know today. The best way is to start in those earliest 
of years.
  The bill Senator Wyden and I are introducing today encourages schools 
to promote physical activity and to teach children how to make healthy 
food decisions. It also sets up a public-private partnership foundation 
to fund innovative projects that improve eating and exercise habits in 
school.
  The Childhood Obesity Reduction Act authorizes $2.2 million for a 
Congressional council on childhood obesity. The council will seek out 
model anti-obesity programs in both public and private schools and will 
award these schools with the Congressional Achievement Award. After 2 
years of selecting model programs for other schools to follow, the 
council will create a public-private partnership called the National 
Foundation for the Prevention and Reduction of Childhood Obesity. The 
foundation will give challenge awards to schools that implement those 
model anti-obesity programs.
  In closing, we know that kids need to run, jump, and play. We know 
that is good for their bodies. We know it is good for their spirits. 
They need nutritional food that gives them energy, the type of food 
that really does keep them sharp. They need a school environment that 
encourages healthy habits, vigor, expenditure of energy, and vitality.

  I thank my colleague, Senator Wyden, for his leadership in this 
important public health effort. I urge my colleagues to be a part of 
the solution and am delighted to be able to join with my colleague, 
Senator Wyden, in submitting and ultimately passing this legislation, 
all of which will help Americans keep fit.
  Mr. WYDEN. Madam President, the majority leader has given an 
excellent statement with respect to this issue, and I want to express 
my appreciation to him for the chance to make this yet another 
bipartisan kind of effort.

[[Page S7107]]

  If ever there were a cause that ought to bring the Senate together, 
fighting childhood obesity is exactly the kind of thing where we ought 
to be teaming up. I thank my colleague for his excellent statement and 
for the chance to work with him.
  The majority leader and I believe our legislation will help launch a 
national mobilization to reduce and prevent the epidemic of childhood 
obesity and help our kids grow up healthy in America. Today, kids are 
eating greater quantities of less healthy foods. They are exercising 
less and less.
  Childhood obesity has doubled during the past 30 years. In my home 
State, it is far and away one of our most serious emerging health 
problems. Ten percent of the 8th graders and 7 percent of the 11th 
graders in my State are overweight. So, in my view, what we have is 
nothing short of an epidemic of kids who are not as healthy as they 
could be and they need to be and not as healthy as children were in 
previous generations. These kids today have a host of health problems 
that promise to worsen if nothing is done to change them.
  I was particularly pleased that the majority leader highlighted some 
of the concerns we want to tackle. The situation with respect to type 
II diabetes is completely unacceptable. This is an illness that used to 
be virtually unheard of in children. Yet the increase in this disease 
is literally on a parallel with the documented track of an increase in 
childhood obesity. One-quarter of children 5 to 10 years of age show 
early warning signs for health problems such as elevated cholesterol 
and high blood pressure. Doctors at the Oregon Health Sciences 
University Obesity Clinic say that referrals of youngsters as young as 
6 are becoming virtually routine.
  We are not going to see this change happen by osmosis. It is going to 
come about because adults working with parents, schools, and 
communities provide some real leadership, and that is what this 
bipartisan legislation seeks to do. We recognize in this bill that 
there is a fair amount of good work going on in our communities 
already, and we recognize this is an issue that needs to be addressed 
not from Washington, DC, with a one-size-fits-all approach, but it 
needs to be addressed in our schools and in our communities.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  What we seek to do is to encourage this kind of bottom-up approach, 
where schools and communities across the country, relying on leaders in 
their own hometowns, consulting with experts here from the Congress, 
will get out state-of-the-art information with respect to making sure 
we are using all the tools that are out there to fight obesity. We are 
going to be consulting and coordinating this effort with the 
President's Council on Physical Fitness so that both sides of the 
equation, nutrition and exercise, are addressed in the fight against 
childhood obesity.
  We have also concluded it is absolutely critical to use state-of-the-
art technology to get out this information. We have proposed a Web site 
be created to link schools to community groups and leaders who are 
already working to help kids stay healthy. With a few clicks of the 
``enter'' button, it will be possible for kids in Des Moines to find 
out what the best approaches are for kids, say, in the rural West.
  We believe using this kind of technology is going to allow us to use 
scarce resources, at a time when we are all concerned about the 
deficit, to better meet the health needs of children in our 
communities. Whether it is enlisting local organic farmers to make 
their produce available to schools or helping our kids become more 
physically active, what we propose in this bipartisan legislation is a 
wide variety of options for schools and communities to work together.
  I am very pleased that an important feature of the legislation, as 
noted by the majority leader, is the foundation that would allow us to 
continue the work of our Congressional Council, which would end once 
the foundation is established.
  Finally, it seems to me the point of this legislation is to target 
the area where we can make the most difference and that is our schools. 
Schools, of course, are where the children are. It is where they spend 
a lot of time. It is a place where they eat, and very often several 
meals a day. If children can learn in school how to balance their 
choices, wherever they go and whenever they are confronted with a 
variety of food options, they can make better choices for themselves.
  I see the distinguished chair of the Armed Services Committee is back 
on the floor. He has an extensive schedule, I know. I don't want to 
hold this up. I want to wrap this up by saying to the majority leader 
how much I have enjoyed working with him. We have long felt that health 
care is one of the issues that can bring the Senate together. If ever 
there was a health cause that requires what I think is appropriately 
called a national mobilization in our schools and our communities, 
fighting childhood obesity is it.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2551

       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 ``Childhood Obesity Reduction 
     Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) According to the Centers for Disease Control and 
     Prevention, obesity may soon overtake tobacco as the leading 
     preventable cause of death.
       (2) In 1999, 13 percent of children aged 6 to 11 years and 
     14 percent of adolescents aged 12 to 19 years in the United 
     States were overweight. This prevalence has nearly tripled 
     for adolescents in the past 2 decades.
       (3) Risk factors for heart disease, such as high 
     cholesterol and high blood pressure, occur with increased 
     frequency in overweight children and adolescents compared to 
     children with a healthy weight.
       (4) Type 2 diabetes, previously considered an adult 
     disease, has increased dramatically in children and 
     adolescents. Overweight and obesity are closely linked to 
     type 2 diabetes.
       (5) Obesity in children and adolescents is generally caused 
     by a lack of physical activity, unhealthy eating patterns, or 
     a combination of the 2, with genetics and lifestyle both 
     playing important roles in determining a child's weight.
       (6) Overweight adolescents have a 70 percent chance of 
     becoming overweight or obese adults.
       (7) The 2001 report ``The Surgeon General's Call to Action 
     to Prevent and Decrease Overweight and Obesity'' suggested 
     that obesity and its complications were already costing the 
     United States $117,000,000,000 annually.
       (8) Substantial evidence shows that public health risks can 
     be reduced through increased public awareness and community 
     involvement.
       (9) Congress needs to challenge students, teachers, school 
     administrators, and local communities to voluntarily 
     participate in the development and implementation of 
     activities to successfully reduce and prevent childhood 
     obesity.

          TITLE I--CONGRESSIONAL COUNCIL ON CHILDHOOD OBESITY

     SEC. 101. CONGRESSIONAL COUNCIL ON CHILDHOOD OBESITY.

       (a) Establishment of Council.--There is established a 
     ``Congressional Council on Childhood Obesity'' (referred to 
     in this title as the ``Council'').
       (b) Purposes.--The purposes of the Council shall be--
       (1) to encourage every elementary school and middle school 
     in the United States, whether public or private, to develop 
     and implement a plan to reduce and prevent obesity, promote 
     improved nutritional choices, and promote increased physical 
     activity among students; and
       (2) to provide information as necessary to secondary 
     schools.

     SEC. 102. MEMBERSHIP OF THE COUNCIL.

       (a) Composition of the Council.--The Council shall be 
     composed of 8 members as follows:
       (1) The majority leader of the Senate or the designee of 
     the majority leader of the Senate.
       (2) The minority leader of the Senate or the designee of 
     the minority leader of the Senate.
       (3) The Speaker of the House of Representatives or the 
     designee of the Speaker of the House of Representatives.
       (4) The minority leader of the House of Representatives or 
     the designee of the minority leader of the House of 
     Representatives.
       (5) 4 citizen members to be appointed in accordance with 
     subsection (b).
       (b) Appointment of Citizen Council Members.--
       (1) Method of appointment.--For the purpose of subsection 
     (a)(5), each of the 4 members described in paragraphs (1) 
     through (4) of subsection (a) shall appoint to the Council a 
     citizen who is an expert on children's health, nutrition, or 
     physical activity.
       (2) Date of appointment.--The appointments made under 
     paragraph (1) shall be made not later than 120 days after the 
     date of enactment of this Act.
       (c) Vacancies.--Any vacancy in the Council shall not affect 
     its powers, but shall be filled in the manner in which the 
     original appointment was made under subsection (a).

[[Page S7108]]

       (d) Chairperson.--The members of the Council shall elect, 
     from among the members of the Council, a Chairperson.
       (e) Initial Meeting.--The Council shall hold its first 
     meeting not later than 120 days after the date of enactment 
     of this Act.

     SEC. 103. RESPONSIBILITIES OF THE COUNCIL.

       (a) In General.--The Council shall engage in the following 
     activities:
       (1) Work with outside experts to develop the Congressional 
     Challenge to Reduce and prevent Childhood Obesity, which 
     shall include the development of model plans to reduce and 
     prevent childhood obesity that can be adopted or adapted by 
     elementary schools or middle schools that participate.
       (2) Develop and maintain a website that is updated not less 
     than once a month on best practices in the United States for 
     reducing and preventing childhood obesity.
       (3) Assist in helping elementary schools and middle schools 
     in establishing goals for the healthy reduction and 
     prevention of childhood obesity.
       (4) Consult and coordinate with the President's Council on 
     Physical Fitness and other Federal Government initiatives 
     conducting activities to reduce and prevent childhood 
     obesity.
       (5) Reward elementary schools, middle schools, and local 
     educational agencies promoting innovative, successful 
     strategies in reducing and preventing childhood obesity.
       (6) Provide information to secondary schools.
       (b) Congressional Challenge Winners.--
       (1) In general.--The Council shall--
       (A) evaluate plans submitted by elementary schools, middle 
     schools, and local educational agencies under paragraph (2);
       (B) designate the plans submitted under paragraph (2) that 
     meet the criteria under paragraph (3) as Congressional 
     Challenge winners; and
       (C) post the plans of the Congressional Challenge winners 
     designated under subparagraph (B) on the website of the 
     Council as model plans for reducing and preventing childhood 
     obesity.
       (2) Submission of plans.--Each elementary school, middle 
     school, or local educational agency that desires to have the 
     plan to reduce and prevent childhood obesity of such entity 
     designated as a Congressional Challenge winner shall submit 
     to the Council such plan at such time, in such manner, and 
     accompanied by such information as the Council may reasonably 
     require.
       (3) Selection criteria.--
       (A) In general.--The Council shall evaluate plans submitted 
     by elementary schools, middle schools, and local educational 
     agencies under paragraph (2) and shall designate as 
     Congressional Challenge winners the plans that--
       (i) show promise in successfully increasing physical 
     activity, improving nutrition, and reducing and preventing 
     obesity; or
       (ii) have maintained efforts in assisting children in 
     increasing physical activity, improving nutrition, and 
     reducing and preventing obesity.
       (B) Criteria.--The Council shall make the determination 
     under subparagraph (A) based on the following criteria:
       (i) Strategies based on evaluated interventions.
       (ii) The number of children in the community in need of 
     assistance in addressing obesity and the potential impact of 
     the proposed plan.
       (iii) The involvement in the plan of the community served 
     by the school or local educational agency.
       (iv) Other criteria as determined by the Council.
       (c) Meetings.--The Council shall hold not less than 1 
     meeting each year, and all meetings of the Council shall be 
     public meetings, preceded by a publication of notice in the 
     Federal Register.

     SEC. 104. ADMINISTRATIVE MATTERS.

       (a) Pay and Travel Expenses.--
       (1) Prohibition of pay.--Members of the Council shall 
     receive no pay, allowances, or benefits by reason of their 
     service on the Council.
       (2) Travel expenses.--
       (A) Compensation for travel.--Each member of the Council 
     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 Council, to 
     the extent funds are available under subparagraph (B) for 
     such expenses.
       (B) Limit on travel expenses.--Travel expenses under 
     subparagraph (A) shall be appropriated from the amounts 
     appropriated to the legislative branch and shall not exceed 
     $1,000,000.
       (b) Staff.--The Chairperson of the Council may appoint and 
     terminate, as may be necessary to enable the Council to 
     perform its duties, not more than 5 staff personnel, all of 
     whom shall be considered employees of the Senate.

     SEC. 105. TERMINATION OF COUNCIL.

       The Council shall terminate on September 30 of the second 
     full fiscal year following the date of enactment of this Act.

     SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title $2,200,000 for each of fiscal years 2005 and 2006.

   TITLE II--NATIONAL FOUNDATION FOR THE PREVENTION AND REDUCTION OF 
                           CHILDHOOD OBESITY

     SEC. 201. ESTABLISHMENT AND DUTIES OF FOUNDATION.

       (a) In General.--There shall be established in accordance 
     with this section a nonprofit private corporation to be known 
     as the National Foundation for the Prevention and Reduction 
     of Childhood Obesity (referred to in this title as the 
     ``Foundation''). The Foundation shall not be an agency or 
     instrumentality of the Federal Government, and officers, 
     employees, and members of the board of the Foundation shall 
     not be officers or employees of the Federal Government.
       (b) Purpose of Foundation.--The purpose of the Foundation 
     shall be to support and carry out activities for the 
     prevention and reduction of childhood obesity through school-
     based activities.
       (c) Endowment Fund.--
       (1) In general.--In carrying out subsection (b), the 
     Foundation shall establish a fund for providing endowments 
     for positions that are associated with the Congressional 
     Council on Childhood Obesity and the Department of Health and 
     Human Services (referred to in this title as the 
     ``Department'') and dedicated to the purpose described in 
     such subsection. Subject to subsection (g)(1)(B), the fund 
     shall consist of such donations as may be provided by non-
     Federal entities and such non-Federal assets of the 
     Foundation (including earnings of the Foundation and the 
     fund) as the Foundation may elect to transfer to the fund.
       (2) Authorized expenditures of fund.--The provision of 
     endowments under paragraph (1) shall be the exclusive 
     function of the fund established under such paragraph. Such 
     endowments may be expended only for the compensation of 
     individuals holding the positions, for staff, equipment, 
     quarters, travel, and other expenditures that are appropriate 
     in supporting the positions, and for recruiting individuals 
     to hold the positions endowed by the fund.
       (d) Certain Activities of Foundation.--In carrying out 
     subsection (b), the Foundation may provide for the following 
     with respect to the purpose described in such subsection:
       (1) Evaluate and make known the effectiveness of model 
     plans used by schools to reduce and prevent childhood 
     obesity.
       (2) Create a website to assist in the distribution of 
     successful plans, best practices, and other information to 
     assist elementary schools, middle schools, and the public to 
     develop and implement efforts to reduce and prevent childhood 
     obesity.
       (3) Participate in meetings, conferences, courses, and 
     training workshops.
       (4) Assist in the distribution of data concerning childhood 
     obesity.
       (5) Make Challenge awards, pursuant to subsection (e), to 
     elementary schools, middle schools, and local educational 
     agencies for the successful development and implementation of 
     school-based plans.
       (6) Other activities to carry out the purpose described in 
     subsection (b).
       (e) Challenge Awards.--
       (1) Program authorized.--The Foundation may provide 
     Challenge awards to elementary schools, middle schools, and 
     local educational agencies that submit applications under 
     paragraph (2).
       (2) Application.--Each elementary school, middle school, or 
     local educational agency that desires to receive a Challenge 
     award under this subsection shall submit an application that 
     includes a plan to reduce and prevent childhood obesity to 
     the Foundation at such time, in such manner, and accompanied 
     by such additional information as the Foundation may 
     reasonably require.
       (3) Selection criteria.--In the program authorized under 
     paragraph (1), the Foundation shall provide Challenge awards 
     based on--
       (A) the success of the plans of the elementary schools, 
     middle schools, and local educational agencies in meeting the 
     plans' stated goals;
       (B) the number of children in the community served by the 
     elementary school, middle school, or local educational agency 
     who are in need of assistance in addressing obesity; and
       (C) other criteria as determined by the Foundation.
       (f) General Structure of Foundation; Nonprofit Status.--
       (1) Board of directors.--The Foundation shall have a board 
     of directors (referred to in this title as the ``Board''), 
     which shall be established and conducted in accordance with 
     subsection (g). The Board shall establish the general 
     policies of the Foundation for carrying out subsection (b), 
     including the establishment of the bylaws of the Foundation.
       (2) Executive director.--The Foundation shall have an 
     executive director (referred to in this title as the 
     ``Director''), who shall be appointed by the Board, who shall 
     serve at the pleasure of the Board, and for whom the Board 
     shall establish the rate of compensation. Subject to 
     compliance with the policies and bylaws established by the 
     Board pursuant to paragraph (1), the Director shall be 
     responsible for the daily operations of the Foundation in 
     carrying out subsection (b).
       (3) Nonprofit status.--In carrying out subsection (b), the 
     Board shall establish such policies and bylaws under 
     paragraph (1), and the Director shall carry out such 
     activities under paragraph (2), as may be necessary to ensure 
     that the Foundation maintains status as an organization 
     that--
       (A) is described in subsection (c)(3) of section 501 of the 
     Internal Revenue Code of 1986; and
       (B) is, under subsection (a) of such section, exempt from 
     taxation.
       (g) Board of Directors.--

[[Page S7109]]

       (1) Certain bylaws.--
       (A) Inclusions.--In establishing bylaws under subsection 
     (f)(1), the Board shall ensure that the bylaws of the 
     Foundation include bylaws for the following:
       (i) Policies for the selection of the officers, employees, 
     agents, and contractors of the Foundation.
       (ii) Policies, including ethical standards, for the 
     acceptance and disposition of donations to the Foundation and 
     for the disposition of the assets of the Foundation.
       (iii) Policies for the conduct of the general operations of 
     the Foundation.
       (iv) Policies for writing, editing, printing, and 
     publishing of books and other materials, and the acquisition 
     of patents and licenses for devices and procedures developed 
     by the Foundation.
       (B) Exclusions.--In establishing bylaws under subsection 
     (f)(1), the Board shall ensure that the bylaws of the 
     Foundation (and activities carried out under the bylaws) do 
     not--
       (i) reflect unfavorably upon the ability of the Foundation, 
     or the Department, to carry out its responsibilities or 
     official duties in a fair and objective manner; or
       (ii) compromise, or appear to compromise, the integrity of 
     any governmental program or any officer or employee involved 
     in such program.
       (2) Composition.--
       (A) In general.--Subject to subparagraph (B), the Board 
     shall be composed of 7 individuals, appointed in accordance 
     with paragraph (4), who collectively possess education or 
     experience appropriate for representing the fields of 
     children's health, nutrition, and physical fitness or 
     organizations active in reducing and preventing childhood 
     obesity. Each such individual shall be a voting member of the 
     Board.
       (B) Greater number.--The Board may, through amendments to 
     the bylaws of the Foundation, provide that the number of 
     members of the Board shall be a greater number than the 
     number specified in subparagraph (A).
       (3) Chairperson.--The Board shall, from among the members 
     of the Board, designate an individual to serve as the 
     Chairperson of the Board (referred to in this subsection as 
     the ``Chairperson'').
       (4) Appointments, vacancies, and terms.--Subject to 
     subsection (k) (regarding the initial membership of the 
     Board), the following shall apply to the Board:
       (A) Any vacancy in the membership of the Board shall be 
     filled by appointment by the Board, after consideration of 
     suggestions made by the Chairperson and the Director 
     regarding the appointments. Any such vacancy shall be filled 
     not later than the expiration of the 180-day period beginning 
     on the date on which the vacancy occurs.
       (B) The term of office of each member of the Board 
     appointed under subparagraph (A) shall be 5 years. A member 
     of the Board may continue to serve after the expiration of 
     the term of the member until the expiration of the 180-day 
     period beginning on the date on which the term of the member 
     expires.
       (C) A vacancy in the membership of the Board shall not 
     affect the power of the Board to carry out the duties of the 
     Board. If a member of the Board does not serve the full term 
     applicable under subparagraph (B), the individual appointed 
     to fill the resulting vacancy shall be appointed for the 
     remainder of the term of the predecessor of the individual.
       (5) Compensation.--Members of the Board may not receive 
     compensation for service on the Board. The members may be 
     reimbursed for travel, subsistence, and other necessary 
     expenses incurred in carrying out the duties of the Board.
       (h) Certain Responsibilities of Executive Director.--In 
     carrying out subsection (f)(2), the Director shall carry out 
     the following functions:
       (1) Hire, promote, compensate, and discharge officers and 
     employees of the Foundation, and define the duties of the 
     officers and employees.
       (2) Accept and administer donations to the Foundation, and 
     administer the assets of the Foundation.
       (3) Establish a process for the selection of candidates for 
     holding endowed positions under subsection (c).
       (4) Enter into such financial agreements as are appropriate 
     in carrying out the activities of the Foundation.
       (5) Take such action as may be necessary to acquire patents 
     and licenses for devices and procedures developed by the 
     Foundation and the employees of the Foundation.
       (6) Adopt, alter, and use a corporate seal, which shall be 
     judicially noticed.
       (7) Commence and respond to judicial proceedings in the 
     name of the Foundation.
       (8) Other functions that are appropriate in the 
     determination of the Director.
       (i) General Provisions.--
       (1) Authority for accepting funds.--The Secretary of Health 
     and Human Services (referred to in this title as the 
     ``Secretary'') may accept and utilize, on behalf of the 
     Federal Government, any gift, donation, bequest, or devise of 
     real or personal property from the Foundation for the purpose 
     of aiding or facilitating the work of the Department. Funds 
     may be accepted and utilized by the Secretary under the 
     preceding sentence without regard to whether the funds are 
     designated as general-purpose funds or special-purpose funds.
       (2) Authority for acceptance of voluntary services.--
       (A) In general.--The Secretary may accept, on behalf of the 
     Federal Government, any voluntary services provided to the 
     Department by the Foundation for the purpose of aiding or 
     facilitating the work of the Department. In the case of an 
     individual, the Secretary may accept the services provided 
     under the preceding sentence by the individual for not more 
     than 2 years.
       (B) Non-federal government employees.--The limitation 
     established in subparagraph (A) regarding the period of time 
     in which services may be accepted applies to each individual 
     who is not an employee of the Federal Government and who 
     serves in association with the Department pursuant to 
     financial support from the Foundation.
       (3) Administrative control.--No officer, employee, or 
     member of the Board may exercise any administrative or 
     managerial control over any Federal employee.
       (4) Applicability of certain standards to non-federal 
     employees.--In the case of any individual who is not an 
     employee of the Federal Government and who serves in 
     association with the Department pursuant to financial support 
     from the Foundation, the Foundation shall negotiate a 
     memorandum of understanding with the individual and the 
     Secretary specifying that the individual--
       (A) shall be subject to the ethical and procedural 
     standards regulating Federal employment, scientific 
     investigation, and research findings (including publications 
     and patents) that are required of individuals employed by the 
     Department, including standards under this Act, the Ethics in 
     Government Act of 1978 (5 U.S.C. App.), and the Federal 
     Technology Transfer Act of 1986 (Public Law 99-502; 100 Stat. 
     1785); and
       (B) shall be subject to such ethical and procedural 
     standards under chapter 11 of title 18, United States Code 
     (relating to conflicts of interest), as the Secretary 
     determines is appropriate, except such memorandum may not 
     provide that the individual shall be subject to the standards 
     of section 209 of such chapter.
       (5) Financial conflicts of interest.--Any individual who is 
     an officer, employee, or member of the Board may not directly 
     or indirectly participate in the consideration or 
     determination by the Foundation of any question affecting--
       (A) any direct or indirect financial interest of the 
     individual; or
       (B) any direct or indirect financial interest of any 
     business organization or other entity of which the individual 
     is an officer or employee or in which the individual has a 
     direct or indirect financial interest.
       (6) Audits; availability of records.--The Foundation 
     shall--
       (A) provide for biennial audits of the financial condition 
     of the Foundation; and
       (B) make such audits, and all other records, documents, and 
     other papers of the Foundation, available to the Secretary 
     and the Comptroller General of the United States for 
     examination or audit.
       (7) Reports.--
       (A) In general.--Not later than February 1 of each fiscal 
     year, the Foundation shall publish a report describing the 
     activities of the Foundation during the preceding fiscal 
     year. Each such report shall include for the fiscal year 
     involved a comprehensive statement of the operations, 
     activities, financial condition, and accomplishments of the 
     Foundation.
       (B) Inclusions.--With respect to the financial condition of 
     the Foundation, each report under subparagraph (A) shall 
     include the source, and a description, of all gifts to the 
     Foundation of real or personal property, and the source and 
     amount of all gifts to the Foundation of money. Each such 
     report shall include a specification of any restrictions on 
     the purposes for which gifts to the Foundation may be used.
       (C) Public inspection.--The Foundation shall make copies of 
     each report submitted under subparagraph (A) available for 
     public inspection, and shall upon request provide a copy of 
     the report to any individual for a charge not exceeding the 
     cost of providing the copy.
       (8) Liaisons.--The Secretary shall appoint liaisons to the 
     Foundation from relevant Federal agencies, including the 
     Office of the Surgeon General and the Centers for Disease 
     Control and Prevention. The Secretary of Agriculture shall 
     designate liaisons to the Foundation as appropriate.
       (9) Inclusion of the president's council.--The Foundation 
     shall ensure that the President's Council on Physical Fitness 
     is included in the activities of the Foundation.
       (j) Federal Funding.--
       (1) Authority for annual grants.--
       (A) In general.--The Secretary shall--
       (i) for fiscal year 2005, make a grant to an entity 
     described in subsection (k)(9) (relating to the establishment 
     of a committee to establish the Foundation);
       (ii) for fiscal years 2006 and 2007, make a grant to the 
     committee established under such subsection, or if the 
     Foundation has been established, to the Foundation; and
       (iii) for fiscal year 2008 and each subsequent fiscal year, 
     make a grant to the Foundation.
       (B) Rules on expenditures.--A grant under subparagraph (A) 
     may be expended--
       (i) in the case of an entity receiving the grant under 
     subparagraph (A)(i), only for the purpose of carrying out the 
     duties established in subsection (k)(9) for the entity;
       (ii) in the case of the committee established under 
     subsection (k)(9), only for the purpose of carrying out the 
     duties established in subsection (k) for the committee; and

[[Page S7110]]

       (iii) in the case of the Foundation, only for the purpose 
     of the administrative expenses of the Foundation.
       (C) Restriction.--A grant under subparagraph (A) may not be 
     expended to provide amounts for the fund established under 
     subsection (c).
       (D) Unobligated grant funds.--For the purposes described in 
     subparagraph (B)--
       (i) any portion of the grant made under subparagraph (A)(i) 
     for fiscal year 2005 that remains unobligated after the 
     entity receiving the grant completes the duties established 
     in subsection (k)(9) for the entity shall be available to the 
     committee established under such subsection; and
       (ii) any portion of a grant under subparagraph (A) made for 
     fiscal year 2005 or 2006 that remains unobligated after such 
     committee completes the duties established in such subsection 
     for the committee shall be available to the Foundation.
       (2) Funding for grants.--
       (A) In general.--For the purpose of grants under paragraph 
     (1), there is authorized to be appropriated $2,200,000 for 
     each fiscal year.
       (B) Programs of the department.--For the purpose of grants 
     under paragraph (1), the Secretary may for each fiscal year 
     make available not more than $2,200,000 from the amounts 
     appropriated for the fiscal year for the programs of the 
     Department. Such amounts may be made available without regard 
     to whether amounts have been appropriated under subparagraph 
     (A).
       (3) Certain restriction.--If the Foundation receives 
     Federal funds for the purpose of serving as a fiscal 
     intermediary between Federal agencies, the Foundation may not 
     receive such funds for the indirect costs of carrying out 
     such purpose in an amount exceeding 10 percent of the direct 
     costs of carrying out such purpose. The preceding sentence 
     may not be construed as authorizing the expenditure of any 
     grant under paragraph (1) for such purpose.
       (k) Committee for Establishment of Foundation.--
       (1) In general.--There shall be established, in accordance 
     with this subsection and subsection (j)(1), a committee to 
     carry out the functions described in paragraph (2) (referred 
     to in this subsection as the ``Committee'').
       (2) Functions.--The functions referred to in paragraph (1) 
     for the Committee are as follows:
       (A) To carry out such activities as may be necessary to 
     incorporate the Foundation under the laws of the State 
     involved, including serving as incorporators for the 
     Foundation. Such activities shall include ensuring that the 
     articles of incorporation for the Foundation require that the 
     Foundation be established and operated in accordance with the 
     applicable provisions of this title (or any successor to this 
     title), including such provisions as may be in effect 
     pursuant to amendments enacted after the date of enactment of 
     this Act.
       (B) To ensure that the Foundation qualifies for and 
     maintains the status described in subsection (f)(3) 
     (regarding taxation).
       (C) To establish the general policies and initial bylaws of 
     the Foundation, which bylaws shall include the bylaws 
     described in subsections (f)(3) and (g)(1).
       (D) To provide for the initial operation of the Foundation, 
     including providing for quarters, equipment, and staff.
       (E) To appoint the initial members of the Board in 
     accordance with the requirements established in subsection 
     (g)(2)(A) for the composition of the Board, and in accordance 
     with such other qualifications as the Committee may determine 
     to be appropriate regarding such composition. Of the members 
     so appointed--
       (i) 2 shall be appointed to serve for a term of 3 years;
       (ii) 2 shall be appointed to serve for a term of 4 years; 
     and
       (iii) 3 shall be appointed to serve for a term of 5 years.
       (3) Completion of functions of committee; initial meeting 
     of board.--
       (A) Completion of functions.--The Committee shall complete 
     the functions required in paragraph (1) not later than 
     September 30, 2007. The Committee shall terminate upon the 
     expiration of the 30-day period beginning on the date on 
     which the Secretary determines that the functions have been 
     completed.
       (B) Initial meeting.--The initial meeting of the Board 
     shall be held not later than November 1, 2007.
       (4) Composition.--The Committee shall be composed of 5 
     members, each of whom shall be a voting member. Of the 
     members of the Committee--
       (A) no fewer than 2 of the members shall have expertise in 
     children's health, nutrition, and physical activity; and
       (B) no fewer than 2 of the members shall have broad, 
     general experience in nonprofit private organizations 
     (without regard to whether the individuals have experience in 
     children's health, nutrition, and physical activity).
       (5) Chairperson.--The Committee shall, from among the 
     members of the Committee, designate an individual to serve as 
     the Chairperson of the Committee.
       (6) Terms; vacancies.--The term of members of the Committee 
     shall be for the duration of the Committee. A vacancy in the 
     membership of the Committee shall not affect the power of the 
     Committee to carry out the duties of the Committee. If a 
     member of the Committee does not serve the full term, the 
     individual appointed by the Secretary to fill the resulting 
     vacancy shall be appointed for the remainder of the term of 
     the predecessor of the individual.
       (7) Compensation.--Members of the Committee may not receive 
     compensation for service on the Committee. Members of the 
     Committee may be reimbursed for travel, subsistence, and 
     other necessary expenses incurred in carrying out the duties 
     of the Committee.
       (8) Committee support.--The Secretary may, from amounts 
     available to the Secretary for the general administration of 
     the Department, provide staff and financial support to assist 
     the Committee with carrying out the functions described in 
     paragraph (2). In providing such staff and support, the 
     Director may both detail employees and contract for 
     assistance.
       (9) Grant for establishment of committee.--
       (A) In general.--With respect to a grant under paragraph 
     (1)(A)(i) of subsection (j) for fiscal year 2005, an entity 
     described in this paragraph is a private nonprofit entity 
     with significant experience in children's health, nutrition, 
     and physical activity. Not later than 180 days after the date 
     of enactment of this Act, the Secretary shall make the grant 
     to such an entity (subject to the availability of funds under 
     paragraph (2) of such subsection).
       (B) Conditions.--The grant referred to in subparagraph (A) 
     may be made to an entity only if the entity agrees that--
       (i) the entity will establish a committee that is composed 
     in accordance with paragraph (4); and
       (ii) the entity will not select an individual for 
     membership on the Committee unless the individual agrees that 
     the Committee will operate in accordance with each of the 
     provisions of this subsection that relate to the operation of 
     the Committee.
       (C) Agreement.--The Secretary may make a grant referred to 
     in subparagraph (A) only if the applicant for the grant makes 
     an agreement that the grant will not be expended for any 
     purpose other than carrying out subparagraph (B). Such a 
     grant may be made only if an application for the grant is 
     submitted to the Secretary containing such agreement, and the 
     application is in such form, is made in such manner, and 
     contains such other agreements and such assurances and 
     information as the Secretary determines to be necessary to 
     carry out this paragraph.
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