I

104TH CONGRESS

1ST SESSION H. R. 2209

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.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 4, 1995

Mr. EHRLICH introduced the following bill; which was referred to the

Committee on Economic and Educational Opportunities

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘National Foundation

5 on Physical Fitness and Sports Establishment Act’’.

6 SEC. 2. ESTABLISHMENT AND PURPOSE OF FOUNDATION.

7 (a) ESTABLISHMENT.—There is established the Na8 tional Foundation on Physical Fitness and Sports (herein-
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1 after in this Act referred to as the ‘‘Foundation’’). The

2 Foundation is a charitable and nonprofit corporation and

3 is not an agency or establishment of the United States.

4 (b) PURPOSES.—The purposes of the Foundation

5 are—

6 (1) in conjunction with the President’s Council

7 on Physical Fitness and Sports, to develop a list and

8 description of programs, events and other activities

9 which would further the goals outlined in Executive

10 Order 12345 and with respect to which combined

11 private and governmental efforts would be beneficial;

12 and

13 (2) to encourage and promote the participation

14 by private organizations in the activities referred to

15 in subsection (b)(1) and to encourage and promote

16 private gifts of money and other property to support

17 those activities.

18 (c) DISPOSITION OF MONEY AND PROPERTY.—At

19 least annually the Foundation shall transfer, after the de20 duction of the administrative expenses of the Foundation,

21 the balance of any contributions received for the activities

22 referred to in subsection (b), to the United States Public

23 Health Service Gift Fund pursuant to section 2701 of the

24 Public Health Service Act (42 U.S.C. 300aaa) for expendi-
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1 ture pursuant to the provisions of that section and consist2 ent with the purposes for which the funds were donated.

3 SEC. 3. BOARD OF DIRECTORS OF THE FOUNDATION.

4 (a) ESTABLISHMENT AND MEMBERSHIP.—The

5 Foundation shall have a governing Board of Directors

6 (hereinafter referred to in this Act as the ‘‘Board’’), which

7 shall consist of 9 members each of whom shall be a United

8 States citizen and—

9 (1) 3 of whom must be knowledgeable or experi10 enced in one or more fields directly connected with

11 physical fitness, sports, or the relationship between

12 health status and physical exercise; and

13 (2) 6 of whom must be leaders in the private

14 sector with a strong interest in physical fitness,

15 sports, or the relationship between health status and

16 physical exercise.

17 The membership of the Board, to the extent practicable,

18 shall represent diverse professional specialties relating to

19 the achievement of physical fitness through regular par20 ticipation in programs of exercise, sports, and similar ac21 tivities. The Assistant Secretary for Health, the Executive

22 Director of the President’s Council on Physical Fitness

23 and Sports, the Director for the National Center for

24 Chronic Disease Prevention and Health Promotion, the

25 Director of the National Heart, Lung, and Blood Insti-
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1 tute, and the Director for the Centers for Disease Control

2 and Prevention shall be ex officio, nonvoting members of

3 the Board. Appointment to the Board or its staff shall

4 not constitute employment by, or the holding of an office

5 of, the United States for the purposes of any Federal em6 ployment or other law.

7 (b) APPOINTMENTS.—Within 90 days from the date

8 of enactment of this Act, the members of the Board will

9 be appointed. 3 members of the Board will be appointed

10 by the Secretary (hereinafter referred to in this Act as

11 the ‘‘Secretary’’), 2 by the Majority Leader of the Senate,

12 1 by the Minority Leader of the Senate, 2 by the Speaker

13 of the House of Representatives, 1 by the Minority Leader

14 of the House of Representative.

15 (c) TERMS.—The members of the Board shall serve

16 for a term of 6 years. A vacancy on the Board shall be

17 filled within 60 days of the vacancy in the same manner

18 in which the original appointment was made and shall be

19 for the balance of the term of the individual who was re20 placed. No individual may serve more than 2 consecutive

21 terms as a member.

22 (d) CHAIRMAN.—The Chairman shall be elected by

23 the Board from its members for a 2 year term and will

24 not be limited in terms or service.
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1 (e) QUORUM.—A majority of the current membership

2 of the Board shall constitute a quorum for the transaction

3 of business.

4 (f) MEETINGS.—The Board shall meet at the call of

5 the Chairman at least once a year. If a member misses

6 3 consecutive regularly scheduled meetings, that member

7 may be removed from the Board and the vacancy filled

8 in accordance with subsection (c).

9 (g) REIMBURSEMENT OF EXPENSES.—Members of

10 the Board shall serve without pay, but may be reimbursed

11 for the actual and necessary traveling and subsistence ex12 penses incurred by them in the performance of the duties

13 of the Foundation, subject to the same limitations on re14 imbursement that are imposed upon employees of Federal

15 agencies.

16 (h) LIMITATIONS.—The following limitations apply

17 with respect to the appointment of officers and employees

18 of the Foundation:

19 (1) Officers and employees may not be ap20 pointed until the Foundation has sufficient funds to

21 pay them for their service. No individual so ap22 pointed may receive pay in excess of the annual rate

23 of basic pay in effect for Executive Level V in the

24 Federal service.
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1 (2) The first officer or employee appointed by

2 the Board shall be the Secretary of the Board who

3 shall serve, at the direction of the Board, as its chief

4 operating officer and shall be knowledgeable and ex5 perienced in matters relating to physical fitness and

6 sports.

7 (3) No Public Health Service employee nor the

8 spouse or dependent relative of such an employee

9 may serve as an officer or member of the Board of

10 Directors or as an employee of the Foundation.

11 (4) Any individual who is an officer, employee,

12 or member of the Board of the Foundation may not

13 (in accordance with the policies developed under sub14 section (i)) personally or substantially participate in

15 the consideration or determination by the Founda16 tion of any matter that would directly or predictably

17 affect any financial interest of the individual or a

18 relative (as such term is defined in section 109(16)

19 of the Ethics in Government Act, 1978) of the indi20 vidual, of any business organization, or other entity,

21 or of which the individual is an officer or employee,

22 is negotiating for employment, or in which the indi23 vidual has any other financial interest.

24 (i) GENERAL POWERS.—The Board may complete

25 the organization of the Foundation by—
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1 (1) appointing officers and employees;

2 (2) adopting a constitution and bylaws consist3 ent with the purposes of the Foundation and the

4 provision of this Act; and

5 (3) undertaking such other acts as may be nec6 essary to carry out the provisions of this Act.

7 In establishing bylaws under this subsection, the Board

8 shall provide for policies with regard to financial conflicts

9 of interest and ethical standards for the acceptance, solici10 tation and disposition of donations and grants to the

11 Foundation.

12 SEC. 4. RIGHTS AND OBLIGATIONS OF THE FOUNDATION.

13 (a) IN GENERAL.—The Foundation—

14 (1) shall have perpetual succession;

15 (2) may conduct business throughout the sev16 eral State, territories, and possessions of the United

17 States;

18 (3) shall have its principal offices in or near the

19 District of Columbia; and

20 (4) shall at all times maintain a designated

21 agent authorized to accept service of process for the

22 Foundation.

23 The serving of notice to, or service of process upon, the

24 agent required under paragraph (4), or mailed to the busi-
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1 ness address of such agent, shall be deemed as service

2 upon or notice to the Foundation.

3 (b) SEAL.—The Foundation shall have an official seal

4 selected by the Board which shall be judicially noticed.

5 (c) POWERS.—To carry out its purposes under sec6 tion 2, and subject to the specific provisions thereof, the

7 Foundation shall have the usual powers of a corporation

8 acting as a trustee in the District of Columbia, including

9 the power—

10 (1) except as otherwise provided herein, to ac11 cept, receive, solicit, hold, administer and use any

12 gift, devise, or bequest, either absolutely or in trust,

13 of real or personal property or any income therefrom

14 or other interest therein;

15 (2) to acquire by purchase or exchange any real

16 or personal property or interest therein;

17 (3) unless otherwise required by the instrument

18 of transfer, to sell, donate, lease, invest, reinvest, re19 tain or otherwise dispose of any property or income

20 therefrom.

21 (4) to sue and be sued, and complain and de22 fend itself in any court of competent jurisdiction, ex23 cept for gross negligence;

24 (5) to enter into contracts or other arrange25 ments with public agencies and private organizations
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1 and persons and to make such payments as may be

2 necessary to carry out its functions; and

3 (6) to do any and all acts necessary and proper

4 to carry out the purposes of the Foundation.

5 For purposes of this Act, an interest in real property shall

6 be treated as including easements or other rights for pres7 ervation, conservation, protection, or enhancement by and

8 for the public of natural, scenic, historic, scientific, edu9 cational inspirational or recreational resources. A gift, de10 vise, or bequest may be accepted by the Foundation even

11 though it is encumbered, restricted, or subject to beneficial

12 interests of private persons if any current or future inter13 est therein is for the benefit of the Foundation.

14 SEC. 5. PROTECTION AND USES OF TRADEMARKS AND

15 TRADE NAMES

16 (a) PROTECTION.—Without the consent of the Foun17 dation in conjunction with the President’s Council on

18 Physical Fitness and Sports, any person who uses for the

19 purpose of trade, uses to induce the sale of any goods or

20 services, or uses to promote any theatrical exhibition, ath21 letic performance or competition—

22 (1) the official seal of the President’s Council

23 on Physical Fitness and Sports consisting of the

24 eagle holding an olive branch and arrows with shield

25 breast encircled by name ‘‘President’s Council on
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1 Physical Fitness and Sports’’ and consisting, de2 pending upon placement, of diagonal stripes;

3 (2) the official seal of the Foundation; or

4 (3) any trademark, trade name, sign, symbol,

5 or insignia falsely representing association with or

6 authorization by the President’s Council on Physical

7 Fitness and Sports or the Foundation;

8 shall be subject in a civil action by the Foundation for

9 the remedies provided in the Act of July 9, 1946 (60 Stat.

10 427; popularly known as the Trademark Act of 1946).

11 (b) USES.—The Foundation, in conjunction with the

12 President’s Council on Physical Fitness and Sports, may

13 authorize contributors and suppliers of goods or services

14 to use the trade name or the President’s Council on Phys15 ical Fitness and Sports and the Foundation as well as any

16 trademark, seal, symbol, insignia, or emblem of the Presi17 dent’s Council on Physical Fitness and Sports or the

18 Foundation in advertising that the contributors, goods, or

19 services when donated, supplied, or furnished to or for the

20 use of, or approved, selected, or used by the President’s

21 Council on Physical Fitness and Sports or the Founda22 tion.

23 SEC. 6. VOLUNTEER STATUS.

24 The Foundation may accept, without regard to the

25 civil service classification laws, rules, or regulations, the
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1 services of volunteers in the performance of the functions

2 authorized herein, in the manner provided for under sec3 tion 7(c) of the Fish and Wildlife Act of 1956 (16 U.S.C.

4 742f(c)).

5 SEC. 7. AUDIT, REPORT REQUIREMENTS, AND PETITION OF

6 ATTORNEY GENERAL FOR EQUITABLE RE7 LIEF.

8 (a) AUDITS.—For purposes of the Act entitled ‘‘An

9 Act for audit of accounts of private corporations estab10 lished under Federal law’’, approved August 30, 1964

11 (Public Law 88–504, 36 U.S.C. 1101–1103) the Founda12 tion shall be treated as a private corporation under Fed13 eral law. The Inspector General of the Department of

14 Health and Human Services and the Comptroller General

15 of the United States shall have access to the financial and

16 other records of the Foundation, upon reasonable notice.

17 (b) REPORT.—The Foundation shall, as soon as prac18 ticable after the end of each fiscal year, transmit to the

19 Secretary of Health and Human Services and to Congress

20 a report of its proceedings and activities during such year,

21 including a full and complete statement of its receipts, ex22 penditures, and investments.

23 (c) RELIEF WITH RESPECT TO CERTAIN FOUNDA24 TION ACTS OR FAILURE TO ACT.—If the Foundation—
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1 (1) engages in, or threatens to engage in, any

2 act, practice or policy that is inconsistent with its

3 purposes set forth in section 2(b); or

4 (2) refuses, fails, or neglects to discharge its

5 obligations under this Act, or threaten to do so;

6 the Attorney General of the United States may petition

7 in the United States District Court for the District of Co8 lumbia for such equitable relief as may be necessary or

9 appropriate.

10 SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

11 For the (year, periodll) beginning on October 1,

12 19ll, there are authorized to be appropriated [ll]

13 to be made available to the Foundation for organizational

14 costs.

Æ