A bill to establish a National Foundation on Physical Fitness and Sports to carry out activities to support and supplement the mission of the President's Council on Physical Fitness and Sports.

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``National Foundation on Fitness, 
Sports, and Nutrition Establishment Act''.
SEC. 2. ESTABLISHMENT AND PURPOSE OF FOUNDATION.
    (a) Establishment.--There is established the National Foundation on 
Fitness, Sports, and Nutrition (hereinafter in this Act referred to as 
the ``Foundation''). The Foundation is a charitable and nonprofit 
corporation and is not an agency or establishment of the United States.
    (b) Purposes.--The purposes of the Foundation are--
        (1) in conjunction with the Office of the President's Council 
    on Fitness, Sports and Nutrition, to develop a list and description 
    of programs, events and other activities which would further the 
    purposes and functions outlined in Executive Order 13265, as 
    amended, and with respect to which combined private and 
    governmental efforts would be beneficial;
        (2) to 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; and
        (3) in consultation with such Office, to undertake and support 
    activities to further the purposes and functions of such Executive 
    Order.
    (c) Prohibition on Federal Funding.--The Foundation may not accept 
any Federal funds.
SEC. 3. BOARD OF DIRECTORS OF THE FOUNDATION.
    (a) Establishment and Membership.--The Foundation shall have a 
governing Board of Directors (hereinafter referred to in this Act as 
the ``Board''), which shall consist of 9 members each of whom shall be 
a United States citizen and--
        (1) 3 of whom should be knowledgeable or experienced in one or 
    more fields directly connected with physical fitness, sports, 
    nutrition, or the relationship between health status and physical 
    exercise; and
        (2) 6 of whom should be leaders in the private sector with a 
    strong interest in physical fitness, sports, nutrition, or the 
    relationship between health status and physical exercise.
The membership of the Board, to the extent practicable, should 
represent diverse professional specialties relating to the achievement 
of physical fitness through regular participation in programs of 
exercise, sports, and similar activities, or to nutrition. The 
Assistant Secretary for Health, the Executive Director of the 
President's Council on Fitness, Sports and Nutrition, 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 be ex officio, nonvoting members of the Board. 
Appointment to the Board or its staff shall not constitute employment 
by, or the holding of an office of, the United States for the purposes 
of laws relating to Federal employment.
    (b) Appointments.--Within 90 days from the date of enactment of 
this Act, the members of the Board shall be appointed by the Secretary 
in accordance with this subsection. In selecting individuals for 
appointments to the Board, the Secretary should consult with--
        (1) the Speaker of the House of Representatives concerning the 
    appointment of one member;
        (2) the Majority Leader of the House of Representatives 
    concerning the appointment of one member;
        (3) the Majority Leader of the Senate concerning the 
    appointment of one member;
        (4) the President Pro Tempore concerning the appointment of one 
    member;
        (5) the Minority Leader of the House of Representatives 
    concerning the appointment of one member; and
        (6) the Minority Leader of the Senate concerning the 
    appointment of one member.
    (c) Terms.--The members of the Board shall serve for a term of 6 
years, except that the original members of the Board shall be appointed 
for staggered terms as determined appropriate by the Secretary. A 
vacancy on the Board shall be filled within 60 days of the vacancy in 
the same manner in which the original appointment was made and shall be 
for the balance of the term of the individual who was replaced. No 
individual may serve more than 2 consecutive terms as a member.
    (d) Chairman.--The Chairman shall be elected by the Board from its 
members for a 2-year term and shall not be limited in terms or service, 
other than as provided in subsection (c).
    (e) Quorum.--A majority of the current membership of the Board 
shall constitute a quorum for the transaction of business.
    (f) Meetings.--The Board shall meet at the call of the Chairman at 
least once a year. If a member misses 3 consecutive regularly scheduled 
meetings, that member may be removed from the Board and the vacancy 
filled in accordance with subsection (c).
    (g) Reimbursement of Expenses.--Members of the Board shall serve 
without pay, but may be reimbursed for the actual and necessary 
traveling and subsistence expenses incurred by them in the performance 
of the duties of the Foundation, subject to the same limitations on 
reimbursement that are imposed upon employees of Federal agencies.
    (h) Limitations.--The following limitations apply with respect to 
the appointment of employees of the Foundation:
        (1) Employees may not be appointed until the Foundation has 
    sufficient funds to pay them for their service. No individual so 
    appointed may receive a salary in excess of the annual rate of 
    basic pay in effect for Executive Level V in the Federal service. A 
    member of the Board may not receive compensation for serving as an 
    employee of the Foundation.
        (2) The first employee appointed by the Board shall be the 
    Secretary of the Board who shall serve, at the direction of the 
    Board, as its chief operating officer and shall be knowledgeable 
    and experienced in matters relating to physical fitness, sports, 
    and nutrition.
        (3) No Public Health Service employee nor the spouse or 
    dependent relative of such an employee may serve as a member of the 
    Board of Directors or as an employee of the Foundation.
        (4) Any individual who is an employee or member of the Board of 
    the Foundation may not (in accordance with the policies developed 
    under subsection (i)) 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--
            (A) the individual or a relative (as such term is defined 
        in section 109(16) of the Ethics in Government Act, 1978) of 
        the individual; or
            (B) any business organization, or other entity, of which 
        the individual is an officer or employee, is negotiating for 
        employment, or in which the individual has any other financial 
        interest.
    (i) General Powers.--The Board may complete the organization of the 
Foundation by--
        (1) appointing employees;
        (2) adopting a constitution and bylaws consistent with the 
    purposes of the Foundation and the provision of this Act; and
        (3) undertaking such other acts as may be necessary to carry 
    out the provisions of this Act.
In establishing bylaws under this subsection, 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.
SEC. 4. POWERS AND DUTIES 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 have 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 may be used as provided for in section 5.
    (c) Incorporation; Nonprofit Status.--To carry out the purposes of 
the Foundation under section 2, the Board shall--
        (1) incorporate the Foundation in the District of Columbia; and
        (2) establish such policies and bylaws as may be necessary to 
    ensure that the Foundation maintains status as an organization that 
    is described in section 501(c)(3) of the Internal Revenue Code of 
    1986.
    (d) Powers.--Subject to the specific provisions of section 2, the 
Foundation, in consultation with the Office of the President's Council 
on Fitness, Sports, and Nutrition, shall have the power, directly or by 
the awarding of contracts or grants, to carry out or support activities 
for the purposes described in such section.
    (e) Treatment of Property.--For purposes of this Act, an interest 
in real property shall be treated as including 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) Trademarks of the Foundation.--Authorization for a contributor, 
or a supplier of goods or services, to use, in advertising regarding 
the contribution, goods, or services, the trade name of the Foundation, 
or any trademark, seal, symbol, insignia, or emblem of the Foundation 
may be provided only by the Foundation with the concurrence of the 
Secretary or the Secretary's designee.
    (b) Trademarks of the Council.--Authorization for a contributor or 
supplier described in subsection (a) to use, in such advertising, the 
trade name of the President's Council on Fitness, Sports, and 
Nutrition, or any trademark, seal, symbol, insignia, or emblem of such 
Council, may be provided--
        (1) by the Secretary or the Secretary's designee; or
        (2) by the Foundation with the concurrence of the Secretary or 
    the Secretary's designee.
SEC. 6. AUDIT, REPORT REQUIREMENTS, AND PETITION OF ATTORNEY GENERAL 
FOR EQUITABLE RELIEF.
    (a) Audits.--For purposes of the Act entitled ``An Act for audit of 
accounts of private corporations established under Federal law'', 
approved August 30, 1964 (Public Law 88-504, 36 U.S.C. 1101-1103), 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, not later than 60 days 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 its purposes set forth 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 of the United States may petition in the United 
States District Court for the District of Columbia for such equitable 
relief as may be necessary or appropriate.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: National Foundation on Fitness, Sports, and Nutrition Establishment Act - Establishes the National Foundation on Fitness, Sports, and Nutrition as a charitable, nonprofit corporation: (1) to develop, in conjunction with the Office of the President's Council on Fitness, Sports and Nutrition, a list and description of activities which would further the purposes and functions outlined in Executive Order 13265 and with respect to which combined private and governmental efforts would be beneficial. (2) to promote private organization participation in, and private gifts to support, those activities. And (3) in consultation with such Office, to undertake and support activities to further the purposes and functions of such Executive Order. Prohibits the Foundation from accepting any federal funds.