SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Physical Fitness and Sports 
Foundation Establishment Act''.

SEC. 2. ESTABLISHMENT AND PURPOSE OF FOUNDATION.

    (a) Establishment.--There is established the National Physical 
Fitness and Sports Foundation (hereinafter in this Act referred to as 
the ``Foundation''). The Foundation shall be a charitable and not for 
profit corporation and shall not be an agency or establishment of the 
United States. The Foundation shall be established as an organization 
described in section 501(c)(3) of the Internal Revenue Code of 1986 and 
shall be presumed, for purposes of such Code, to be such an 
organization until the Secretary of the Treasury determines that the 
Foundation does not meet the requirements applicable to such an 
organization. Section 508(a) of such Code does not apply to the 
Foundation.
    (b) Purposes.--It is the purpose of the Foundation to--
            (1) in conjunction with the President's Council on Physical 
        Fitness and Sports, develop a list and description of programs, 
        events and other activities which would further the goals 
        outlined in Executive Order 12345 and with respect to which 
        combined private and governmental efforts would be beneficial; 
        and
            (2) encourage and promote the participation by private 
        organizations in the activities referred to in subsection 
        (b)(1) and to encourage and promote private gifts of money and 
        other property to support those activities.
    (c) Disposition of Money and Property.--At least annually the 
Foundation shall transfer, after the deduction of the administrative 
expenses of the Foundation, the balance of any contributions received 
for the activities referred to in subsection (b), to the Public Health 
Service Gift Fund pursuant to section 231 of the Public Health Service 
Act (42 U.S.C. 238) for expenditure pursuant to the provisions of that 
section and consistent with the purposes for which the funds were 
donated.

SEC. 3. BOARD OF DIRECTORS OF THE FOUNDATION.

    (a) Establishment and Membership.--
            (1) In general.--The Foundation shall have a governing 
        Board of Directors (hereinafter referred to in this Act as the 
        ``Board''), which shall consist of nine Directors, to be 
        appointed not later than 90 days after the date of enactment of 
        this Act, each of whom shall be a United States citizen and--
                    (A) three of whom must be knowledgeable or 
                experienced in one or more fields directly connected 
                with physical fitness, sports or the relationship 
                between health status and physical exercise; and
                    (B) six of whom must be leaders in the private 
                sector with a strong interest in physical fitness, 
                sports or the relationship between health status and 
                physical exercise (one of which shall be a 
                representative of the United States Olympic Committee).
        The membership of the Board, to the extent practicable, shall 
        represent diverse professional specialties relating to the 
        achievement of physical fitness through regular participation 
        in programs of exercise, sports and similar activities.
            (2) Ex officio members.--The Assistant Secretary for 
        Health, the Executive Director of the President's Council on 
        Physical Fitness and Sports, the Director for the National 
        Center for Chronic Disease Prevention and Health Promotion, the 
        Director of the National Heart, Lung, and Blood Institute and 
        the Director for the Centers for Disease Control and Prevention 
        shall serve as ex officio, nonvoting members of the Board.
            (3) Not federal employment.--Appointment to the Board or 
        serving as a member of the staff of the Board shall not 
        constitute employment by, or the holding of an office of, the 
        United States for the purposes of any Federal employment or 
        other law.
    (b) Appointment and Terms.--
            (1) Appointment.--Of the members of the Board appointed 
        under subsection (a)(1), three shall be appointed by the 
        Secretary of Health and Human Services (hereinafter referred to 
        in this Act as the ``Secretary''), two shall be appointed by 
        the Majority Leader of the Senate, one shall be appointed by 
        the Minority Leader of the Senate, two shall be appointed by 
        the Speaker of the House of representatives, and one shall be 
        appointed by the Minority Leader of the House of 
        Representatives. The three members appointed by the Secretary 
        shall include the representative of the United States Olympic 
        Committee.
            (2) Terms.--Members appointed to the Board under subsection 
        (a)(1) shall serve for a term of 6 years. A vacancy on the 
        Board shall be filled within 60 days of the date on which such 
        vacancy occurred in the manner in which the original 
        appointment was made. A member appointed to fill a vacancy 
        shall serve for the balance of the term of the individual who 
        was replaced. No individual may serve more than two consecutive 
        terms as a Director.
    (c) Chairperson.--A Chairperson shall be elected by the Board from 
among its members and serve for a 2-year term. The Chairperson shall 
not be limited in terms or service. The Chairman of the President's 
Council on Physical Fitness shall serve as Chairperson until a 
Chairperson is elected by the Board.
    (d) Quorum.--A majority of the sitting members of the Board shall 
constitute a quorum for the transaction of business.
    (e) Meetings.--The Board shall meet at the call of the Chairperson, 
but in no event less than once each year. If a Director misses three 
consecutive regularly scheduled meetings, that individual may be 
removed from the Board and the vacancy filled in accordance with 
subsection (b)(2).
    (f) Reimbursement of Expenses.--The members of the Board shall 
serve without pay. The members of the Board 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 Board.
    (g) General Powers.--
            (1) Organization.--The Board may complete the organization 
        of the Foundation by--
                    (A) appointing officers and employees;
                    (B) adopting a constitution and bylaws consistent 
                with the purposes of the Foundation and the provision 
                of this Act; and
                    (C) undertaking such other acts as may be necessary 
                to carry out the provisions of this Act.
        In establishing bylaws under this paragraph, the Board shall 
        provide for policies with regard to financial conflicts of 
        interest and ethical standards for the acceptance, solicitation 
        and disposition of donations and grants to the Foundation.
            (2) Limitations on officers and employees.--The following 
        limitations apply with respect to the appointment of officers 
        and employees of the Foundation:
                    (A) Officers and employees may not be appointed 
                until the Foundation has sufficient funds to compensate 
                such individuals for their service. No individual so 
                appointed may receive pay in excess of the annual rate 
                of basic pay in effect for Executive Level V in the 
                Federal service.
                    (B) The first officer or employee appointed by the 
                Board shall be the secretary of the Board who--
                            (i) shall serve, at the direction of the 
                        Board, as its chief operating officer; and
                            (ii) shall be knowledgeable and experienced 
                        in matters relating to physical fitness and 
                        sports.
                    (C) No Public Health Service employee nor the 
                spouse or dependent relative of such an employee may 
                serve as an officer or member of the Board of Directors 
                or as an employee of the Foundation.
                    (D) Any individual who is an officer, employee, or 
                member of the Board of the Foundation may not (in 
                accordance with the policies developed under paragraph 
                (1)(B)) personally or substantially participate in the 
                consideration or determination by the Foundation of any 
                matter that would directly or predictably affect any 
                financial interest of the individual or a relative (as 
                such term is defined in section 109(16) of the Ethics 
                in Government Act of 1978) of the individual, of any 
                business organization or other entity, or of which the 
                individual is an officer or employee, or is negotiating 
                for employment, or in which the individual has any 
                other financial interest.

SEC. 4. RIGHTS AND OBLIGATIONS OF THE FOUNDATION.

    (a) In General.--The Foundation--
            (1) shall have perpetual succession;
            (2) may conduct business throughout the several States, 
        territories, and possessions of the United States;
            (3) shall locate its principal offices in or near the 
        District of Columbia; and
            (4) shall at all times maintain a designated agent 
        authorized to accept service of process for the Foundation.
The serving of notice to, or service of process upon, the agent 
required under paragraph (4), or mailed to the business address of such 
agent, shall be deemed as service upon or notice to the Foundation.
    (b) Seal.--The Foundation shall have an official seal selected by 
the Board which shall be judicially noticed.
    (c) Powers.--To carry out the purposes under section 2, the 
Foundation shall have the usual powers of a corporation acting as a 
trustee in the District of Columbia, including the power--
            (1) except as otherwise provided herein, to accept, 
        receive, solicit, hold, administer and use any gift, devise, or 
        bequest, either absolutely or in trust, of real or personal 
        property or any income therefrom or other interest therein;
            (2) to acquire by purchase or exchange any real or personal 
        property or interest therein;
            (3) unless otherwise required by the instrument of 
        transfer, to sell, donate, lease, invest, reinvest, retain or 
        otherwise dispose of any property or income therefrom;
            (4) to sue and be sued, and complain and defend itself in 
        any court of competent jurisdiction, except for gross 
        negligence;
            (5) to enter into contracts or other arrangements with 
        public agencies and private organizations and persons and to 
        make such payments as may be necessary to carry out its 
        functions; and
            (6) to do any and all acts necessary and proper to carry 
        out the purposes of the Foundation.
For purposes of this Act, an interest in real property shall be treated 
as including, 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 Foundation.

SEC. 5. PROTECTION AND USES OF TRADEMARKS AND TRADE NAMES.

    (a) Protection.--Without the consent of the Foundation, in 
conjunction with the President's Council on Physical Fitness and 
Sports, any person who uses for the purpose of trade, to induce the 
sale of any goods or services, or to promote any theatrical exhibition, 
athletic performance or competition--
            (1) the official seal of the President's Council on 
        Physical Fitness and Sports consisting of the eagle holding an 
        olive branch and arrows with shield breast encircled by name 
        ``President's Council on Physical Fitness and Sports'';
            (2) the official seal of the Foundation;
            (3) any trademark, trade name, sign, symbol or insignia 
        falsely representing association with or authorization by the 
        President's Council on Physical Fitness and Sports or the 
        Foundation;
shall be subject in a civil action by the Foundation for the remedies 
provided for in the Act of July 9, 1946 (60 Stat. 427; commonly known 
as the Trademark Act of 1946).
    (b) Uses.--The Foundation, in conjunction with the President's 
Council on Physical Fitness and Sports, may authorize contributors and 
suppliers of goods or services to use the trade name of the President's 
Council on Physical Fitness and Sports and the Foundation, as well as 
any trademark, seal, symbol, insignia, or emblem of the President's 
Council on Physical Fitness and Sports or the Foundation, in 
advertising that the contributions, goods or services when donated, 
supplied, or furnished to or for the use of, approved, selected, or 
used by the President's Council on Physical Fitness and Sports or the 
Foundation.

SEC. 6. VOLUNTEER STATUS.

    The Foundation may accept, without regard to the civil service 
classification laws, rules, or regulations, the services of volunteers 
in the performance of the functions authorized herein, in the same 
manner as provided for under section 7(c) of the Fish and Wildlife Act 
of 1956 (16 U.S.C. 742f(c)).

SEC. 7. AUDIT, REPORT REQUIREMENTS, AND PETITION OF ATTORNEY GENERAL 
              FOR EQUITABLE RELIEF.

    (a) Audits.--For purposes of Public Law 88-504 (36 U.S.C. 1101 et 
seq.), the Foundation shall be treated as a private corporation under 
Federal law. The Inspector General of the Department of Health and 
Human Services and the Comptroller General of the United States shall 
have access to the financial and other records of the Foundation, upon 
reasonable notice.
    (b) Report.--The Foundation shall, as soon as practicable after the 
end of each fiscal year, transmit to the Secretary and to Congress a 
report of its proceedings and activities during such year, including a 
full and complete statement of its receipts, expenditures, and 
investments.
    (c) Relief With Respect to Certain Foundation Acts or Failure To 
Act.--If the Foundation--
            (1) engages in, or threatens to engage in, any act, 
        practice or policy that is inconsistent with the purposes 
        described in section 2(b); or
            (2) refuses, fails, or neglects to discharge its 
        obligations under this Act, or threaten to do so;
the Attorney General may petition in the United States District Court 
for the District of Columbia for such equitable relief as may be 
necessary or appropriate.

            Passed the Senate September 25, 1996.

            Attest:

                                                             Secretary.
104th CONGRESS

  2d Session

                                S. 1311

_______________________________________________________________________

                                 AN ACT

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.
National Physical Fitness and Sports Foundation Establishment Act - Establishes the National Physical Fitness and Sports Foundation as a charitable and not for profit corporation to promote participation by private organizations in the activities of the President's Council on Physical Fitness and Sports.
National Physical Fitness and Sports Foundation Establishment Act