[Senate Report 104-299]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 474
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-299
_______________________________________________________________________


 
                        NATIONAL PARK FOUNDATION

                                _______
                                

                 June 27, 1996.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1703]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1703) to amend the Act establishing the 
National Park Foundation, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

    That the Act of December 18, 1967 (U.S.C. 19e-19n), entitled ``An 
Act to establish the National Park Foundation'', is amended:
          (1) in section 1--
                  (A) by striking ``therein'' and inserting in lieu 
                thereof ``therein, and to develop and implement means 
                of securing funds from the private sector, to enhance 
                funding for the National Park System without 
                supplanting appropriated funds otherwise available for 
                the National Park System,''; and
                  (B) by striking ``to accept and administer such 
                gifts'';
          (2) in section 3--
                  (i) by inserting ``(a)'' after ``SEC. 3.''; and
                  (ii) by inserting at the end:
    ``(b)(1) In furtherance of the purposes of this Act, the Foundation 
shall have exclusive authority to license or authorize persons to use 
such trademarks, tradenames, signs, symbols, emblems, insignia, logos, 
likenesses or slogans that are or may be in the future adopted and 
owned by the Foundation, and for which the Foundation has filed an 
application or applications with the U.S. Patent and Trademark Office, 
for the purposes of representing, promoting or advertising for 
commercial purposes or pecuniary gain that an individual, company, or 
particular good or service is an official sponsor or official supporter 
of the National Park System or National Park Service.
    ``(2) The authority provided in paragraph (1) shall be subject to 
the following conditions:
          ``(A) The criteria and guidelines for the competitive 
        issuance and the maintenance of a license or authorization, and 
        the issuance of each license or authorization, shall be subject 
        to the prior written approval of the Secretary as being 
        appropriate to the image of the National Park System and 
        consistent with the management policies and practices of the 
        National Park Service, and such approval authority may not be 
        delegated.
          ``(B) Neither the Secretary of the Interior, the Foundation, 
        nor any other person may authorize an individual, company, or 
        particular good or service to represent, promote, or advertise, 
        and no person may represent or imply, for commercial purposes 
        or for pecuniary gain that it is an official sponsor or 
        official supporter of any individual unit of the National Park 
        System.
          ``(C) The advertisements and promotional activities 
        undertaken by a licensee or authorized person shall be 
        appropriate to the image of the National Park System and 
        consistent with the management policies and practices of the 
        National Park Service.
          ``(D) Neither the Secretary of the Interior, the Foundation, 
        nor any other person may authorize an individual, company, or 
        particular good or service to represent that it is endorsed by 
        the National Park Service.
          ``(E) Nothing in this Act shall in any way restrict or 
        preclude the Statue of Liberty-Ellis Island Foundation, Inc. 
        (the ``Statue of Liberty Foundation''), so long as its 
        activities are authorized by a Memorandum of Agreement with the 
        Secretary of the Interior, from raising donations for the 
        restoration of the Statue of Liberty and Ellis Island by, among 
        other things, offering to any third parties exclusive rights to 
        any trademark, tradename, sign, symbol, insignia, emblem, logo, 
        likeness, or slogan owned by the Statue of Liberty Foundation.
          ``(F) Activities of the Foundation undertaken pursuant to 
        this Act, including the licensing or authorizing of official 
        sponsors and official supporters of the National Park System or 
        National Park Service by the Foundation, shall not preclude 
        charitable organizations or cooperating associations from 
        conducting fundraising activities or selling merchandise to 
        generate support for a unit or units of the National Park 
        System or the National Park Service, so long as such activities 
        do not convey a right to be considered as an official sponsor 
        or official supporter of such unit or units as prohibited by 
        subparagraph (B) or of the National Park System or National 
        Park Service.
    ``(c) No license or authorization referred to in subsection (b) 
shall grant any person any right or authority to market, advertise, 
display, sell, or promote, any goods, products or services in any unit 
of the National Park System or in any related facility operated outside 
the boundaries of any unit, or to advertise or promote that it is an 
official sponsor or official supporter within the meaning of subsection 
(b) in any such unit or related facility: Provided, That the Secretary 
of the Interior may authorize limited recognition of official sponsors 
or official supporters within the meaning of subsection (b) in units of 
the National Park System or any related facility operated outside the 
boundaries of any unit but only under such appropriate policies and 
procedures which ensure that status as an official sponsor or official 
supporter within the meaning of subsection (b) shall not be 
commercially exploited in any manner within any such unit or related 
facility.'';
          (3) in section 4--
                  (A) by inserting ``and section 8(b)'' between 
                ``transfer'' and the comma;
                  (B) by inserting ``license,'' between ``lease,'' and 
                ``invest''; and
                  (C) by striking ``any business, nor shall the 
                Foundation'' and inserting in lieu thereof ``business 
                for pecuniary profit or gain, except for the purposes 
                set forth in this Act; operate any commercial 
                establishment or enterprise within any unit of the 
                National Park System; engage in any lobbying activities 
                as defined in section 3(7) of the Lobbying Disclosure 
                Act of 1995 (2 U.S.C. 1602(7)) concerning the 
                management of the National Park System; or'';
          (4) in section 8--
                  (A) by inserting ``(a)'' after ``SEC. 8.''; and
                  (B) by inserting at the end:
    ``(b) All of the income in the Foundation, net of reasonable 
operating expenses, any contributions to local government pursuant to 
subsection (a), and reserves determined necessary or appropriate by the 
Board, shall be provided to or for the benefit of the National Park 
Service: Provided, That all such net income derived from the licenses 
and authorizations referred to in section 3(b) shall be expended in 
accordance with policies and priorities of the National Park Service on 
programs, projects, or activities that benefit the National Park System 
or National Park Service as identified by the Secretary in consultation 
with the Foundation.'';
          (5) in section 10--
                  (A) by inserting ``(a)'' after ``SEC. 10.''; and
                  (B) by inserting at the end:
    ``(b) Within 30 days of the execution of each license or 
authorization referred to in section 3(b), the Foundation shall 
transmit a copy thereof to the Committee on Resources of the United 
States House of Representatives and the Committee on Energy and Natural 
Resources of the United States Senate.
    ``(c) No later than 5 years after the date of enactment of this 
subsection, the Secretary of the Interior shall submit to the Committee 
on Resources of the House of Representatives and the Committee on 
Energy and Natural Resources of the United States Senate a report 
assessing the cost, effectiveness, and effects of the licensing and 
authorization program established pursuant to section 3(b). The report 
shall include, but not be limited to, assessments of the effect of such 
program on--
          ``(1) visitation levels in the National Park System;
          ``(2) the image of the National Park System;
          ``(3) achievement of the needs and priorities of the National 
        Park Service;
          ``(4) appropriations for the National Park System; and
          ``(5) the costs of the Foundation and the Secretary of the 
        Interior to administer the program.''.
          (6) at the end, by inserting:
    ``Sec. 11. Whoever, without the authorization of the Foundation, 
uses for purposes of trade, to induce the sale of any good or service, 
to promote any commercial activity, or for other commercial purpose the 
name of the Foundation or any trademark, tradename, sign, symbol, 
emblem, insignia, logo, likeness, or slogan referred to in section 
3(b)(1), or any facsimile or simulation thereof tending to cause 
confusion, to cause mistake, to deceive, or to suggest falsely that an 
individual, company, or particular good or service is an official 
sponsor or official supporter of the National Park System or National 
Park Service, shall be subject to suit in a civil action by the 
Foundation for the remedies provided in the Act of July 5, 1946, 60 
Stat. 427 (15 U.S.C. sec. 1051 et seq.).
    ``Sec. 12. Section 1 of Public Law 88-504 (36 U.S.C. 1101), as 
amended, is further amended by adding at the end, `(78) The National 
Park Foundation.' ''.

                         Purpose of the Measure

    The purpose of S. 1703 is to authorize the National Park 
Foundation to engage in business relationships with appropriate 
private partners to raise revenue for the National Park System, 
including authorizing or licensing such private entities as 
``official sponsors or supporters'' of the National Park 
System.

                          Background and Need

    The National Park Foundation was established by Congress on 
December 18, 1967 (Public Law 90-209) as the official, 
nonprofit partner of the National Park Service. The Foundation 
provides a vehicle for donors who want to contribute to the 
National Parks with assurances that gifts will be carefully 
managed and used wholly and exclusively for the purpose 
specified by the donor. The Foundation is currently authorized 
to solicit, accept and administer gifts of real and personal 
property and utilize them for the benefit of the National 
Parks.
    The Foundation provides a direct way for individuals, 
corporations and private foundations to help conserve and 
preserve the natural, cultural and historical value of the 
National Parks for the employment of future generations. The 
Foundation also raises money for the Parks through cause-
related marketing programs.
    The Foundation is governed by a Board of civic and business 
leaders. By law, the Secretary of the Interior serves as 
Chairman of the Board and the Director of the National Park 
Service serves as Secretary of the Board.
    A partnership between the public and private sector, the 
Foundation provides direct support for park units through a 
competitive program that grants venture capital to seed 
creative efforts to conserve park resources. With the help of 
private partners, The National Park Foundation has made grants 
totaling over $10 million to support projects in the National 
Parks during the last five years.
    Administration funding requests and Congressional 
appropriations are not keeping pace with increased visitation 
and other demands placed on the National Park System. With the 
current demands on Congress to balance the budget and eliminate 
the Federal deficit, it will be more difficult than even for 
Congress to authorize sufficient funding. There is a need for 
additional support to protect, conserve and enhance our 
National Parks, and the National Park Foundation is well 
positioned to meet that need.
    The National Park Foundation Act explicitly states that the 
Foundation ``shall not engage in any business.'' This 
prohibition on engaging in business is unique among the three 
national conservation associations established by Congress. In 
most respects the acts establishing the three foundations are 
quite similar. In fact, the Senate Committee report states 
twice that the National Fish and Wildlife Foundation was 
modeled after the National Parks Foundation. The laws 
establishing both the National Fish and Wildlife Foundation and 
the National Forest Foundation, however, expressly permit those 
foundations to conduct business. The legislative histories of 
the three acts provide no enlightenment on why the prohibition 
on engaging in business was included in the National Park 
Foundation Act and omitted in the National Fish and Wildlife 
Foundation Establishment Act and the National Forest Foundation 
Act. The proposed legislation would modify this prohibition.
    As commercial advertisers have long demonstrated, the 
National Parks have great commercial value. The National Park 
Foundation believes that with the new authority provided in 
this bill, it can annually raise significant revenues without 
in any way compromising the integrity or traditions of the 
Parks.

                          Legislative History

    S. 1703 was introduced by Senators Murkowski, Johnston, 
Bennett and Kempthorne on April 25, 1996. Senator Lieberman was 
added as a cosponsor on June 4, 1996. The Parks, Historic 
Preservation and Recreation Subcommittee held a hearing on the 
bill on June 6, 1996. Senator Campbell was added as a cosponsor 
on June 6, 1996. At the business meeting on June 19, 1996, the 
Committee on Energy and Natural Resources ordered S. 1703, as 
amended, favorably reported.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on June 19, 1996, by a unanimous voice vote of 
a quorum present, recommends that the Senate pass S. 1703, if 
amended as described herein.

                          Committee Amendment

    During the consideration of S. 1703, the Committee adopted 
an amendment in the nature of a substitute. The amendment makes 
a number of technical, clarifying and conforming changes.
    S. 1703 as introduced modified the Foundation's prohibition 
on engaging in business, providing authority similar to that 
already granted to the National Fish and Wildlife Foundation 
and other congressionally chartered foundation. The bill also 
provided a method of raising revenue in support of the National 
Park System through a sponsorship program. The Committee 
amendment adds guidance and a series of restrictions on the 
sponsorship program to ensure that the public interest is 
served. The following is a summary of those changes:
    1. The Foundation must file an application with the U.S. 
Patent and Trademark Office for any logo or slogan associated 
with the official sponsorship program.
    2. In addition to approving each official sponsor, the 
Secretary of the Interior must approve guidelines and criteria 
for the selection of official sponsor licensees and maintenance 
of the licensees.
    3. Official sponsors must be selected competitively from 
candidates which meet the selection criteria and guidelines.
    4.  No one may become an official sponsor of an individual 
unit of the National Park System.
    5.  The National Park Foundation must transmit each 
executed sponsorship contract to the House Resources Committee 
and the Senate Energy and National Resources Committee within 
30 days.
    6.  An official sponsor may not sell, advertise or promote 
its goods, products or services within a unit of the National 
Park System or in a related facility operated outside the 
boundaries of any unit.
    7.  Only with the approval of the Secretary of the Interior 
may an official sponsor receive limited in-park recognition; 
however, such recognition shall not allow commercial 
exploitation within the parks.
    8.  Any advertising or promotional activities conducted by 
an official sponsor must be appropriate to the image of the 
National Park System.
    9.  No official sponsor can represent that its company, 
product or service is endorsed by the National Park Service.
    10. The ability of friends groups and cooperating 
associations to conduct authorized fund raising for individual 
parks is explicitly protected.
    11. The National Park Foundation must spend the funds 
raised through this sponsorship program in accordance with the 
policies and priorities of the National Park Service, after 
retaining funds for reasonable operating and other expenses.
    12. Penalties for unauthorized use of the Foundation 
sponsorship program are limited to those available under the 
Lanham Act.
    13. In addition to its current yearly reporting 
requirements to Congress, the National Park Foundation will now 
be subject to a complete annual audit in accordance with a 
federal law governing audits of Congressionally-chartered 
entities.
    14. Within five years of enactment, the Secretary of the 
Interior must submit a report to Congress which assesses the 
cost, effectiveness and impact of this official sponsorship 
program.

                      Section-by-Section Analysis

    S. 1703 amends the 1967 Act to establish the National Park 
Foundation.
    Paragraph 1 adds private sector fundraising to the 1967 
Act's statement of purpose, and clarifies that the new 
authority is to provide funding not generally available for the 
National Park Service. These funds are intended to supplement 
appropriated funds and are not intended to be used for fixed 
operating costs or permanent employee salaries, except in 
unusual circumstances.
    Paragraph 2 amends section 3 of the 1967 Act, by adding new 
subsections (b) and (c) to the existing statute to augment the 
authority to conduct business provided by paragraph 3 of S. 
1703. New section (b)(1) establishes the Foundation's exclusive 
authority to conduct a corporate sponsorship program as a 
fundraising activity in support of the National Park System. 
Corporate sponsors and others licensed by the Foundation will 
be able to use logos, slogans, and other marks as developed by 
the Foundation for the purpose of advertising their official 
sponsorship or official support of the National Park Service or 
National Park System. The Foundation will be required to file 
applications for such logos, slogans, etc., with the U.S. 
Patent and Trademark Office, to ensure that the Foundations's 
marks are not in conflict with the registered trademarks of 
others. This authority to license official sponsors or official 
supporters is similar to that provided by the Congress to the 
United States Olympic Committee in the Amateur Sports Act of 
1978, but with more numerous and rigorous limitations (provided 
in subsection (b)(2), (c) as described below).
    New section (b)(2) imposes these limitations on the 
sponsorship program to ensure that it serves the public 
interest. The Secretary of the Interior shall approve all 
licenses or authorities for official sponsors and official 
supporters under this program, as well as competitive selection 
criteria. Official sponsors and official supporters must be 
selected competitively from candidates which meet the selection 
criteria. No license or authorization which would be 
detrimental to the goals or the public image of the National 
Park Service or the National Park System may be approved. To 
that end, another limitation requires that licensees' 
advertisements and other promotional activities be appropriate 
to the image of the National Park System and consistent with 
its management policies.
    To meet a common concern expressed by witnesses and others 
during Committee consideration of the bill, official 
sponsorships of individual units of the National Park System 
are prohibited. Another provision provides statutory assurance 
that charitable organizations and cooperating associations may 
continue to engage in authorized fundraising and sales 
activities in support of parks, the Service, and the System, as 
long as those activities do not conflict with the Foundation's 
authority to license sponsorships or with the prohibition on 
individual park sponsorships. To avoid disruption of the 
successful and extensive efforts of the Statue of Liberty-Ellis 
Island Foundation, that foundation is authorized to continue 
fundraising for restoration activities associated with the 
Statue of Liberty and Ellis Island as provided under an 
agreement with the Secretary of the Interior, including 
offering exclusive rights on third parties to use that 
foundation's trademarks, signs, etc.
    New subsection (c) states that licenses and authorizations 
for sponsorship under subsection (b) do not confer a right or 
authority to sell or advertise their products or services 
within park units or in related, off-site facilities (for 
example, visitor centers built outside park boundaries). 
However, the Secretary may authorize limited recognition of 
official sponsors or supporters (as he may do for donors now), 
but only as allowed by approved policies and procedures, such 
as National Park Service donor recognition guidelines, so long 
as such recognition does not allow sponsors to commercially 
exploit their sponsor or supporter status within park units or 
related facilities. The sponsorship program will not influence 
what products are sold in parks by concessionaires under 
contract with the National Park Service, nor will it preclude 
the selling of merchandise bearing images or names of parks 
within park boundaries pursuant to the Concessions Policy Act 
of 1965 or elsewhere.
    Paragraph 3 amends section 4 of the 1967 Act to modify the 
prohibition on the Foundation's ability to engage in business. 
The modification would prohibit the Foundation from conducting 
business for pecuniary profit or gain other than for the 
purpose of benefit to the National Park Service. The Foundation 
is prohibited from operating any commercial establishment or 
enterprise within a park. This paragraph also confirms the 
Foundation's practice of not engaging in lobbying activities 
relating to management of the National Park System.
    Paragraph 4 provides a new subsection (b) to section 8 of 
the 1967 Act to require that all of the Foundation's income, 
less reasonable operating and other expenses, must be used to 
benefit the National Park Service. It further directs that 
income from the sponsorship program must be used to fund--in 
accordance with National Park Service policies and priorities--
projects, programs, and activities identified by the Secretary 
in consultation with the Foundation.
    Paragraph 5 amends section 10, the annual report provision, 
of the 1967 Act to impose two new reporting requirements. New 
subsection (b) requires the Foundation to forward copies of all 
approved sponsorship licenses and authorizations to Congress 
within 30 days of execution. New subsection (c) provides the 
Congress an opportunity to conduct informed oversight, and 
consider any alteration, expansion or reduction, of the 
sponsorship program. Within five years after enactment of this 
Act, the Secretary of the Interior is directed to submit a 
special report to Congress assessing the cost, effectiveness 
and effects of the sponsorship program. The report must include 
effects of the program on park visitation, the image of the 
National Park System, achievement of National Park Service 
needs and priorities, appropriations for the National Park 
Service, and program administration costs to both the agency 
and Foundation.
    Paragraph 6 adds two new sections to the 1967 Act providing 
enforcement authority and an auditing requirement. Section 11 
allows the Foundation to bring civil action under the Lanham 
Act against those who make unauthorized use of the Foundation's 
sponsorship program logos, slogans, etc. Section 12 requires 
the Foundation to comply with the requirements of Public Law 
88-504 as a federally chartered private corporation by 
preparing and submitting to Congress an annual audit of its 
accounts.

                   Cost and Budgetary Considerations

    On June 20, 1996 the Committee on Energy and Natural 
Resources requested a Congressional Budget Office estimate on 
S. 1703. This estimate had not been received at the time the 
report on S. 1703 was filed. When this estimate becomes 
available, the Chairman will request that it be printed in the 
Congressional Record for the advice of the Senate.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 1703. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1703, as ordered reported.

                        Executive Communications

    On June 20, 1996, the Committee on Energy and Natural 
Resources requested legislative reports from the Department of 
the Interior and the Office of Management and Budget setting 
forth Executive agency recommendations on S. 1703. These 
reports had not been received at the time the report on S. 1703 
was filed. When these reports become available, the Chairman 
will request that they be printed in the Congressional Record 
for the advice of the Senate. The testimony of the Department 
of the Interior at the Subcommittee hearing follows:

     Statement of Roger G. Kennedy, Director of the National Park 
          Service, Before the Subcommittee on Parks, Historic 
      Preservation and Recreation of the Committee on Energy and 
      Natural Resources of the United States Senate on S. 1703, a 
         Bill To Amend the Act Establishing the National Park 
                        Foundation, June 6, 1996

          Thank you for the opportunity to offer the views of 
        the Department of the Interior on S. 1703, a bill to 
        amend the Act establishing the National Park 
        Foundation. We support this bill if amended in 
        conformance with this testimony. We strongly endorse 
        the basic goal of S. 1703--to grant additional 
        statutory authority to the National Park Foundation to 
        allow it to realize more fully its potential as a 
        support organization for the National Park Service and 
        System. We also note that reinvigorating the National 
        Park Foundation was a key provision of the President's 
        ``Parks for Tomorrow'' initiative announced on Earth 
        Day. Expanding the Foundation's authority, as 
        envisioned in S. 1703, can be done in such a way that 
        the integrity of the individual park units, the 
        National Park System, and the agency are protected, and 
        that the roles of other park partners in supporting the 
        parks are preserved and reaffirmed. To meet those 
        criteria for expanding the Foundation's authority, we 
        suggest several key amendments, that I will describe 
        later in my testimony.
          The National Park Foundation was established by 
        Congress in 1967 to encourage, accept and administer 
        gifts for the benefit of the National Park Service, its 
        activities and its services. Since the National Park 
        Foundation was established, Congress has created two 
        other foundations charged with supporting land 
        management agencies and their programs--the National 
        Fish and Wildlife Foundation and the National Forest 
        Foundation. While both were originally patterned after 
        the National Park Foundation, their charters have been 
        amended to allow them to engage in a greater variety of 
        business activities to generate revenue to support 
        their respective agencies and programs. We believe it 
        is time to allow the National Park Foundation to 
        exercise the same types of authorities.
          The National Park Foundation has provided a 
        commendable level of support to the National Park 
        System and individual park units over its 29-year 
        existence. With the help of private partners, the 
        Foundation has made grants totalling more than $10 
        million in the last five years to fund projects in the 
        national parks. That such support is possible under the 
        Foundation's narrow existing statutory authority speaks 
        well of the enthusiasm and expertise of its officials 
        and staff. With the enactment of S. 1703, incorporating 
        our recommended amendments, the Foundation will be 
        poised to increase revenues exponentially and provide 
        far greater support to National Park Service units and 
        programs.
          Mr. Chairman, we have identified five areas for 
        amendment. First, we recommend that the stated purpose 
        of the Foundation be amended to make clear that funds 
        derived from its activities are intended to enhance 
        Congressional appropriations rather than to supplant 
        them. Second, we recommend modifications to the 
        sponsorship program to protect park units and related 
        facilities from commercialization. Third, we recommend 
        adding language to clarify that the Foundation can 
        retain funds from its total revenues only for 
        ``reasonable'' operating expenses and that all other 
        funds must be spent on established National Park 
        Service priorities. Fourth, we recommend broadening the 
        provision granting the Foundation the right to sue 
        those who would misuse a logo or other feature 
        associated with the sponsorship program. Fifth, we 
        believe that the Foundation should provide information 
        to Congress on an annual basis detailing the allocation 
        and use of revenues generated by the sponsorship 
        program.
          Section 1 of the 1967 Act lays out the purpose for 
        which the National Park Foundation was created and 
        outlines the basic scope of support activities in which 
        the Foundation can engage. We support the changes to 
        that section as proposed in S. 1703, but recommend 
        additional, qualifying language that conveys the intent 
        to use funds generated by Foundation activities to 
        enhance the funding the National Park Service receives 
        through the annual appropriations process. These 
        revenues should not be viewed as an alternative means 
        to fund basic park operations, land acquisition, or 
        construction projects.
          The most important changes proposed by S. 1703 are in 
        section 3 of the existing statute, the centerpiece of 
        which is the authorization to undertake a corporate 
        sponsorship program with the Foundation as exclusive 
        agent to license official sponsors or supporters of the 
        national parks. Under S. 1703, these sponsors and 
        supporters would be approved by the Secretary of the 
        Interior prior to licensing by the Foundation, and 
        would be authorized to use a newly created logo and 
        other program identifiers in commercial advertising to 
        declare their status as official sponsors or supporters 
        of the National Park System, National Park Service, or 
        a particular unit of the National Park System. We 
        support the concept of a sponsorship program managed by 
        the Foundation for the benefit of the National Park 
        Service, and believe there are appropriate ways in 
        which official sponsors and supporters can use their 
        sponsorship in commercial advertising. We do, however, 
        have some concerns with the provisions in S. 1703 as 
        drafted.
          A corporate sponsorship program must not result in 
        inappropriate commercialization of our national parks. 
        We believe the potential for such commercialization is 
        greatest if the entire field of individual park 
        sponsorships opens up, as is possible under S. 1703. As 
        a protection measure, we suggest that neither the 
        Foundation nor the Secretary should be authorized to 
        license corporate sponsorship of single national park 
        units.
          Our amendments do, however, acknowledge the work of 
        the Statue of Liberty-Ellis Island Foundation, Inc., 
        and would allow it to continue its current activities 
        as authorized by the Secretary in a Memorandum of 
        Agreement just last year. Its campaign has been the 
        most successful fundraising effort in the history of 
        the National Park Service. The Statue of Liberty-Ellis 
        Island Foundation has raised more than $420 million and 
        invested in the restoration of the Statue of Liberty 
        and Main Building at Ellis Island, as well as other 
        buildings and museum exhibits. The current agreement 
        charges this foundation with raising funds and 
        providing other assistance to establish an American 
        Family Immigration History Center at Ellis Island, and 
        to explore the options for rehabilitating the Baggage/
        Dormitory building to complete rehabilitation on the 
        north side of Ellis Island. Adding a grandfather clause 
        to the bill to cover the Statue of Liberty-Ellis Island 
        Foundation will ensure that these important projects 
        will be completed.
          Our proposed language in section 3 would not preclude 
        corporations from making philanthropic donations to 
        individual units, either directly or through the many 
        park-specific, direct-support organizations or the 
        Foundation. In fact, we recommend adding a proviso to 
        clarify that the sponsorship program will not affect 
        the fundraising or sales activities conducted by these 
        recognized direct-support organizations as long as 
        those fundraising or sales activities do not infringe 
        upon the rights of official sponsors as reserved by the 
        Foundation. We also recommend adding assurance that the 
        sponsorship program will not result in corporate 
        advertising within park units or associated facilities 
        operated by the National Park Service outside park 
        boundaries.
          In addition to these changes, we recommend that the 
        Secretary retain the flexibility to delegate the 
        authority to approve each licensing agreement as he/she 
        determines appropriate.
          The bill does not give the Foundation or anyone the 
        right to use the National Park Service arrowhead or any 
        park symbol as part of the sponsorship program. A newly 
        created logo, slogan and other identifiers will be 
        developed for program sponsors. We do, however, 
        recommend adding a provision that these program 
        identifiers are property of the government and that the 
        Foundation would be authorized to license their use to 
        official sponsors and official supporters.
          The language in S. 1703 restricting the use of 
        certain types of intellectual property is too broad and 
        may have the unintended effect of removing some images, 
        photos, designs, etc., from the public domain. Our 
        recommended amendment to section 3 will ensure that the 
        bill will not remove from the public domain any 
        intellectual property already in the public domain. We 
        also recommend modifying section 11 as proposed in S. 
        1703, the provision regarding the Foundation's ability 
        to bring civil action against those infringing on the 
        use of program identifiers. We suggest an amendment to 
        clarify that this authority is not solely restricted to 
        actual use of a logo, slogan, etc., as grounds for 
        civil action by the Foundation. This combination of 
        provisions will make it more difficult for the value of 
        the program identifiers to be reduced through 
        misappropriation and give enforcement authority against 
        those who might seek improperly to identify or imply 
        that they are official sponsors of our national parks. 
        The Foundation's symbols will also be protected under 
        standard copyright laws.
          We believe that removing the Foundation's existing 
        prohibition on engaging in any business combined with 
        authorization of a sponsorship program has the 
        potential to produce substantially increased revenues. 
        We recommend modifying section 8(b) to state that all 
        of these revenues, less ``reasonable'' operating 
        expenses of the Foundation, must be directed at meeting 
        established National Park Service priorities.
          As noted above, expanding the Foundation's authority 
        should result in greater income. There should be 
        accountability accompanying the use of funds. We 
        recommend that documentation of the allocation and use 
        of funds derived through the sponsorship program be 
        added to the Foundation's annual report to Congress, as 
        required by section 10 of the 1967 Act. Additionally, 
        we suggest a conforming amendment to Public Law 88-504, 
        which would require the Foundation, as a federally 
        chartered corporation, to conduct an annual, 
        independent audit to be submitted to Congress.
          Mr. Chairman, in addition to these programmatic and 
        policy amendments, there are other technical and 
        conforming amendments we recommend incorporating into 
        S. 1703. Attached you will find the 1967 Act 
        incorporating the provisions of S. 1703 and our 
        proposed amendments which are shown in bolded text.
          We are encouraged by the support for reinvigorating 
        the National Park Foundation and the National Park 
        Service as endorsed by the President's ``Parks for 
        Tomorrow'' initiative and in this legislation 
        introduced by Senators Murkowski, Bennett, Chafee, 
        Kempthorne, Johnston, and Lieberman. We believe the 
        provisions of S. 1703, if amended as recommended in 
        this testimony, will position the National Park 
        Foundation to provide far greater support to the 
        national parks than it can under the current statutory 
        limitations. The time is right for corporate America to 
        join the National Park Foundation in a productive 
        national partnership to help the National Park Service, 
        the United States Congress and the American people 
        preserve our national parks for the future.
          Mr. Chairman, this concludes my prepared remarks. We 
        welcome the opportunity to work with members of the 
        Committee where we have recommended changes to this 
        bill. I would be pleased to answer any questions you 
        may have at this time.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1703, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                  Public Law 90-209 (16 U.S.C. 19e-n)

            AN ACT To establish the National Park Foundation

    [Be it enacted by the Senate and House of Representatives 
of the United States of America in Congress assembled,] Be it 
enacted by the Senate and the House of Representatives of the 
United States of America in Congress assembled, That the Act of 
December 18, 1967 (U.S.C. 19e-19n), entitled ``An Act to 
establish the National Park Foundation'', is amended: That in 
order to encourage private gifts of real and personal property 
or any income therefrom or other interest [therein] therein, 
and to develop and implement means of securing funds from the 
private sector, to enhance funding for the National Park System 
without supplanting appropriated funds otherwise available for 
the National Park System; and for the benefit of, or in 
connection with, the National Park Service, its activities, or 
its services, and thereby to further the conservation of 
natural, scenic, historic, scientific, educational, 
inspirational, or recreational resources for future generations 
of Americans, there is hereby established a charitable and 
nonprofit corporation to be known as the National Park 
Foundation [to accept and administer such gifts].
    Sec. 2. The National Park Foundation shall consist of a 
Board having as members the Secretary of the Interior, the 
Director of the National Park Service, ex officio, and no less 
than six private citizens of the United States appointed by the 
Secretary of the Interior whose initial terms shall be 
staggered to assure continuity of administration. Thereafter, 
the term shall be six years, unless a successor is chosen only 
for the remainder of that term. The Secretary of the Interior 
shall be the Chairman of the Board and the Director of the 
National Park Service shall be the Secretary of the Board. 
Membership on the Board shall not be deemed to be an office 
within the meaning of the Statutes of the United States. A 
majority of the members of the Board serving at any one time 
shall constitute a quorum for the transaction of business, and 
the Foundation shall have an official seal, which shall be 
judicially noticed. The Board shall meet at the call of the 
Chairman and there shall be at least one meeting each year.
    No compensation shall be paid to the members of the Board 
for their services as members, but they shall be reimbursed for 
actual and necessary traveling and subsistence expenses 
incurred by them in the performance of their duties as such 
members out of the National Park Foundation funds available to 
the Board for such purposes. The Foundation shall succeed all 
right, title and interest of the National Park Trust Fund Board 
established in any property or funds, including the National 
Park Trust Fund, subject to the terms and conditions thereof. 
The National Park Trust Fund is hereby abolished, and the Act 
of July 10, 1935 (49 Stat. 477; 16 U.S.C. 19 et seq.), as 
amended, is hereby repealed.
    Sec. 3(a). The Foundation is authorized to accept, receive, 
solicit, hold, administer, and use any gifts, devises, or 
bequests, either absolutely or in trust of real or personal 
property or any income therefrom or other interest therein for 
the benefit of or in connection with, the National Park 
Service, its activities, or its services: Provided, that the 
Foundation may not accept any such gift, devise or bequest 
which entails any expenditure other than from the resources of 
the Foundation. An interest in the real property includes, 
among other things, easements or other rights for preservation, 
conservation, protection, or enhancement by and for the public 
of natural, scenic, historic, scientific, educational, 
inspirational, or recreational resources. A gift, devise, or 
bequest may be accepted by the Foundation even though it is 
encumbered, restricted, or subject to beneficial interests of 
private persons if any current or future interest therein is 
for the benefit of the National Park Service, its activities, 
or its services
    (b)(1) In furtherance of the purposes of this Act, the 
Foundation shall have exclusive authority to license or 
authorize persons to use such trademarks, tradenames, signs, 
symbols, emblems, insignias, logos, likenesses or slogans that 
are or may be in the future adopted and owned by the 
Foundation, and for which the Foundation has filed for an 
application or applications with the U.S. Patent and Trademark 
Office, for the purposes of representing, promoting or 
advertising for commercial purposes or pecuniary gain that an 
individual, company, or particular good or service is an 
official sponsor of the National Park System or National Park 
Service.
    (2) The authority provided in paragraph (1) shall be 
subject to the following conditions:
          (A) The criteria and guidelines for the competitive 
        issuance and maintenance of a license or authorization, 
        shall be subject to the prior written approval of the 
        Secretary as being appropriate to the image of the 
        National Park System and consistent with the management 
        policies and practices of the National Park Service, 
        and such approval authority may not be delegated.
          (B) Neither the Secretary of the Interior, the 
        Foundation, nor any other person may authorize an 
        individual, company, or particular good or service to 
        represent, promote, or advertise, and no person may 
        represent or imply, for commercial purposes or for 
        pecuniary gain that it is an official sponsor or 
        official supporter of any individual unit of the 
        National Park System.
          (C) The advertisements and promotional activities 
        undertaken by a licensee or authorized person shall be 
        appropriate to the image of the National Park System 
        and consistent with the management policies and 
        practices of the National Park Service.
          (D) Neither the Secretary of the Interior, the 
        Foundation, nor any other person may authorize an 
        individual, company, or particular good or service to 
        represent that it is endorsed by the National Park 
        Service.
          (E) Nothing in this Act shall in any way restrict or 
        preclude the Statue of Liberty-Ellis Island Foundation, 
        Inc. (The ``Statute of Liberty Foundation''), so long 
        as its activities are authorized by a Memorandum of 
        Agreement with the Secretary of the Interior, from 
        raising donations for the restoration of the Statue of 
        Liberty and Ellis Island by, among other things, 
        offering to any third parties exclusive rights to any 
        trademark, tradename, sign, symbol, insignia, emblem, 
        logo, likeness, or slogan owned by the Statue of 
        Liberty Foundation.
          (F) Activities of the Foundation undertaken pursuant 
        to this Act, including the licensing or authorizing of 
        official sponsors and official supporters of the 
        National Park System or National Park Service by the 
        Foundation, shall not preclude charitable organizations 
        or cooperating associations from conducting fundraising 
        activities or selling merchandise to generate support 
        for a unit or units of the National Park System or the 
        National Park Service, so long as such activities do 
        not convey a right to be considered as an official 
        sponsor or supporter of such unit or units as 
        prohibited by subparagraph (b) in any such unit or 
        related facility: Provided, That the Secretary of the 
        Interior may authorize limited recognition of the 
        official sponsors or official supporters within the 
        meaning of subsection (b) shall not be commercially 
        exploited in any manner within any such unit or related 
        facility.
    Sec. 4. Except as otherwise required by the instrument of 
transfer and section 8(b), the Foundation may sell, lease, 
license, invest, reinvest, retain, or otherwise dispose of or 
deal with any property or income thereof as the Board may from 
time to time determine. The Foundation shall not engage in [any 
business, nor shall the Foundation] business for pecuniary 
profit or gain, except for the purposes set forth in this Act; 
operate any commercial establishment or enterprise within any 
unit of the National Park System; engage in any lobbying 
activities as defined in section 3(7) of the Lobbying 
Disclosure Act of 1995 (2 U.S.C. 1602(7)) concerning the 
management of the National Park System; or make any investment 
that may not lawfully be made by a trust company in the 
District of Columbia, except that the Foundation may make any 
investment authorized by the instrument of transfer, and may 
retain any property accepted by the Foundation. The Foundation 
may utilize the services and facilities of the Department of 
the Interior and the Department of Justice, and such services 
and facilities may be made available on request to the extent 
practicable without reimbursement therefor.
    Sec. 5. The Foundation shall have perpetual succession, 
with all the usual powers and obligations of a corporation 
acting as a trustee, including the power to sue and to be sued 
in its own name, but the members of the Board shall not be 
personally liable, except for malfeasance.
    Sec. 6. The Foundation shall have the power to enter into 
contracts, to execute instruments, and generally to do any and 
all lawful acts necessary or appropriate to its purposes.
    Sec. 7. In carrying out the provisions of this Act, the 
Board may adopt bylaws, rules and regulations necessary for the 
administration of its functions and contract for any necessary 
services.
    Sec. 8(a). The Foundation and any income or property 
received or owned by it, and all transactions relating to such 
income or property, shall be exempt from all Federal, State, 
and local taxation with respect thereto. The Foundation may, 
however, in the discretion of its directors, contribute toward 
the costs of local government in amounts not in excess of those 
which it would be obligated to pay such government if it were 
not exempt from taxation by virtue of the foregoing or by 
virtue of its being a charitable and nonprofit corporation and 
may agree so to contribute with respect to property transferred 
to it and the income derived therefrom if such agreement is a 
condition for the transfer. Contributions, gifts, and other 
transfers made to or for the use of the Foundation shall be 
regarded as contributions, gifts, or transfers to or for the 
use of the United States.
    (b) All of the income in the Foundation, net of reasonable 
operating expenses, any contributions to local government 
pursuant to subsection (a), and reserves determined necessary 
or appropriate by the Board, shall be provided to or for the 
benefit of the National Park Service: Provided, that all such 
net income derived from the licenses and authorizations 
referred to in section 3(b) shall be expended in accordance 
with policies and priorities of the National Park Service on 
programs, projects, or activities that benefit the National 
Park System or National Park Service as identified by the 
Secretary in consultation with the Foundation.
    Sec. 9. The United States shall not be liable for any 
debts, defaults, acts, or omissions of the Foundation.
    Sec. 10(a). The Foundation shall, as soon as practicable 
after the end of each fiscal year, transmit to Congress an 
annual report of its proceedings and activities, including a 
full and complete statement of its receipts, expenditures, and 
investments.
    (b) Within thirty days of the execution of each license or 
authorization referred to in section 3(b), the Foundation shall 
transmit a copy thereof to the Committee on Resources of the 
United States House of Representatives and the Committee on 
Energy and Natural Resources of the United States Senate a 
report assessing the cost, effectiveness, and effects of the 
licensing and authorization program established pursuant to 
section 3(b). The report shall include, but not be limited to, 
assessments of the effect of such program on--
          (1) visitation levels in the National Park System;
          (2) the image of the National Park System;
          (3) achievement of the needs and priorities of the 
        National Park Service;
          (4) appropriations for the National Park System; and
          (5) the costs of the Foundation and Secretary of the 
        Interior to administer the program.
    Sec. 11. Whoever without the authorization of the 
Foundation, uses for the purposes of trade, to induce the sale 
of any good or service, to promote any commercial activity, or 
for the commercial purpose the name of the Foundation or any 
trademark, tradename, sign, symbol, emblem, insignia, logo, 
likeness, or slogan referred to in section 3(b)(1), or any 
facsimile or simulation thereof tending to cause confusion, to 
cause mistake, to deceive, or to suggest falsely that an 
individual, company or particular good or service is an 
official sponsor or official supporter of the National Park 
System or National Park Service, shall be subject to suit in a 
civil action by the Foundation for the remedies provided by the 
Act of July 5, 1946, 60 Stat. 427 (15 U.S.C. sec. 1051, et 
seq.).
    Sec. 12. Section 1 of Public Law 88-504 (36 U.S.C. 1101), 
as amended, is further amended by adding at the end, ``(78) The 
National Park Foundation.''.