[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
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(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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