[Senate Report 104-340]
[From the U.S. Government Publishing Office]
Calendar No. 550
104th Congress Report
SENATE
2d Session 104-340
_______________________________________________________________________
NATIONAL PHYSICAL FITNESS AND SPORTS FOUNDATION ESTABLISHMENT ACT
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 1311
July 31, 1996.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred fourth congress
second session
LARRY PRESSLER, South Dakota,
Chairman
ERNEST F. HOLLINGS, South Carolina TED STEVENS, Alaska
DANIEL K. INOUYE, Hawaii JOHN McCAIN, Arizona
WENDELL H. FORD, Kentucky CONRAD BURNS, Montana
J. JAMES EXON, Nebraska SLADE GORTON, Washington
JOHN D. ROCKEFELLER IV, West VirginiaTRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts KAY BAILEY HUTCHISON, Texas
JOHN B. BREAUX, Louisiana OLYMPIA J. SNOWE, Maine
RICHARD H. BRYAN, Nevada JOHN ASHCROFT, Missouri
BYRON L. DORGAN, North Dakota BILL FRIST, Tennessee
RON WYDEN, Oregon SPENCER ABRAHAM, Michigan
Patric G. Link, Chief of Staff
Kevin G. Curtin, Democratic Chief
Counsel and Staff Director
Calendar No. 550
104th Congress Report
SENATE
2d Session 104-340
_______________________________________________________________________
NATIONAL PHYSICAL FITNESS AND SPORTS FOUNDATION ESTABLISHMENT ACT
_______
July 31, 1996.--Ordered to be printed
_______________________________________________________________________
Mr. Pressler, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 1311]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 1311) ``A bill to establish a
National Physical Fitness and Sports Foundation to carry out
activities to support and supplement the mission of the
President's Council on Physical Fitness and Sports, and for
other purposes,'' having considered the same, reports favorably
thereon without amendment and recommends that the bill do pass.
purpose of the bill
The bill would establish a not-for-profit foundation to raise
funds from the private sector to support the activities of the
President's Council on Physical Fitness.
background and needs
The President's Council on Physical Fitness (President's
Council) advises the President and the Secretary of Health and
Human Services on the enhancement of ``opportunities for
participation in physical fitness and sports activities'' and
``on State, local, and private actions to extend and improve
physical activity programs and services'' (Executive Order
12345 of February 2, 1982). Physical fitness and sports
activities are widely recognized as an essential activity for
fostering and maintaining good health.
The President's Council has been supported by appropriations
of federal funds but future appropriations are unlikely. This
bill would create a not-for-profit corporation called the
National Physical Fitness and Sports Foundation to raise
private funds to support the activities of the President's
Council.
legislative history
Senators Campbell and Bradley introduced S. 1311 on October
11, 1995. On June 6, 1996, the Committee on Commerce, Science,
and Transportation considered S. 1311 in open Executive Session
and ordered the bill reported without objection and without
amendment.
Summary of Major Provisions
The bill would create the National Physical Fitness and
Sports Foundation (Foundation). The Foundation would be a not-
for-profit corporation and would not be an agency or
establishment of the United States Government. The Foundation's
purpose would be to raise private funds to support the
activities of the President's Council.
The bill establishes a Board of Directors (Board) to govern
the Foundation's activities. The Board would have nine
Directors: three appointed by the Secretary of Health and Human
Services, two by the Majority Leader of the Senate, two by the
Speaker of the House, and one by each of the minority leaders
of the Senate and House of Representatives. The bill requires
that one of the Board members be a representative of the U.S.
Olympic Committee. The bill permits the Board to organize the
Foundation by hiring officers and employees, and by adopting a
constitution and bylaws.
To foster the Foundation's fund-raising efforts, the bill
would grant the Foundation trademark rights to the Foundation's
seal and the seal of the President's Council. The Foundation
would be permitted to authorize the use of these trademarks in
exchange for contributions.
estimated costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and Section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 28, 1996.
Hon. Larry Pressler,
Chairman, Committee on Commerce, Science, and Transportation, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
reviewed S. 1311, the National Fitness and Sports Foundation
Establishment Act, as ordered reported by the Senate Committee
on Commerce, Science, and Transportation on June 6, 1996. The
proposed foundation would have no net budgetary impact over
time, but creating it would allow for lower appropriations for
the President's Council on Physical Fitness and Sports,
potentially saving about $1 million annually beginning in
fiscal year 1998.
S. 1311 would establish a federally chartered, nonprofit
corporation, the National Physical Fitness and Sports
Foundation, to assist the President's Council on Physical
Fitness and Sports in planning, fundraising, and promoting
physical fitness and sports. A board of nine directors, each
appointed for a six-year term, would govern the foundation. The
bill would direct the Secretary of the Department of Health and
Human Services (HHS) to appoint three members, the Majority
Leader of the Senate to appoint two members, the Minority
Leader of the Senate to appoint one member, the Speaker of the
House to appoint two members, and the Minority Leader of the
House to appoint one member. Income to the foundation would be
derived entirely from private donations.
The bill would require the foundation to deposit any excess
funds into a special fund at the United States Treasury, which
would then be available for use by HSS. Because the foundation
would be created by the government, its board would be
appointed by the government, and it would raise funds for
spending by the government, CBO concludes that it would be a
governmental entity. Hence, all of the foundation's income and
spending should be recorded in the federal budget. Donations to
the foundations should be recorded as governmental receipts,
and spending by the foundation should be recorded as federal
outlays. The foundation's spending, along with that of HHS,
would not be subject to appropriations action. Hence, pay-as-
you-go procedures would apply to this bill.
CBO expects the foundation would eventually raise enough
donations to cover not only its own expenses, but also those of
the President's Council on Physical Fitness and Sports--an
entity within HHS. The council received an appropriation of $1
million for fiscal year 1996. CBO estimates that enacting S.
1311 would increase federal receipts by less than $500,000 in
fiscal year 1997 and by about $2 million annually thereafter.
We expect that the government would spend all donations
collected, resulting in no net budgetary impact for the
foundation. The estimated pay-as-you-go impact is as follows:
[By fiscal year in millions of dollars]
------------------------------------------------------------------------
1996 1997 1998
------------------------------------------------------------------------
Change in outlays................ 0 0 2
Change in receipts............... 0 0 2
------------------------------------------------------------------------
By funding the President's Council on Physical Fitness and
Sports through private donations. S. 1311 would eliminate the
need for future appropriations to the council. Relative to the
1996 appropriations level, the potential discretionary savings
would be $1 million a year beginning in fiscal year 1998. (CBO
expects that the council would receive funding in the fiscal
year 1997 appropriations bill; the House Committee on
Appropriations has recommended $1 million for the council for
next fiscal year.)
S. 1311 contains no intergovernmental or private-sector
mandates as defined by Public Law 104-4, and would not have a
direct impact on the budgets of state, local or tribal
governments.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is John R.
Righter.
Sincerely,
June E. O'Neill, Director.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported.
This legislation would simply create a not-for-profit
Foundation to raise funds from private sources to support the
activities of the President's Council on Physical Fitness. To
foster those fund raising efforts the Foundation would be given
certain intellectual property rights. As the legislation makes
no programmatic changes concerning the President's Council on
Physical Fitness and its activities, it will have no effect on
the number of individuals regulated or on the personal privacy
of regulated individuals. The legislation should not have any
significant economic impact and it will not create any
paperwork requirements.
Section-by-section Analysis
Section 1. Short title
This section provides that the bill may be cited as the
``National Physical Fitness and Sports Foundation Establishment
Act''.
Section 2. Establishment and purpose of Foundation
This section would establish the Foundation as a
charitable, nonprofit corporation to promote the contribution
of private gifts to support the activities of the President's
Council on Physical Fitness. At least annually, after deduction
of administrative expenses, the Foundation would transfer the
balance of any contributions to the Public Health Service Gift
Fund for expenditure consistent with the purposes for which the
funds were donated.
Section 3. Board of Directors of the Foundation
Section 3 would establish the Foundation's Board of
Directors, provide for the appointment of directors and set
their term of office. The section also provides for the
election of a Chairperson of the Board. The Board of Directors
would be given the power to organize the Foundation by
appointing officers and employees, by adopting a constitution
and bylaws, and by undertaking other acts necessary to fulfill
the Foundation's mission. This section would require the
members of the Board to serve without pay but would permit
reimbursement for certain expenses.
Section 4. Rights and obligations of the Foundation
In addition to establishing the basic powers of the
Foundation, this section provides that the Foundation shall
have an official seal to be selected by the Board.
Section 5. Protection and uses of trademarks and trade names
This section would provide the Foundation with certain
intellectual property rights that it may use to facilitate the
contribution of funds or the supply of goods or services. The
Foundation could, for example, permit the use of its official
seal, or the official seal of the President's Council, in
exchange for contributions to the Foundation.
Section 6. Volunteer status
Section 6 would permit the Foundation to utilize the
services of volunteers.
Section 7. Audit, report requirements, and petition of Attorney General
for equitable relief
This section would provide for audits of the Foundation and
require the Foundation to report to Congress and the Secretary
of Health and Human Services, at the end of each fiscal year,
on the Foundation's proceedings and activities. This section
would permit the Attorney General to seek equitable relief if
the Foundation acts in a manner inconsistent with its
established purpose or if the Foundation refuses to discharge
its obligations under the legislation.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee states that the
bill as reported would make no change to existing law.