I

106TH CONGRESS

1ST SESSION H. R. 1370

To amend the Foreign Corrupt Practices Act of 1977 to prevent persons

doing business in interstate commerce from providing financial support

to the International Olympic Committee until the International Olympic

Committee adopts institutional reforms.

IN THE HOUSE OF REPRESENTATIVES

APRIL 12, 1999

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

Committee on Commerce

A BILL

To amend the Foreign Corrupt Practices Act of 1977 to

prevent persons doing business in interstate commerce

from providing financial support to the International

Olympic Committee until the International Olympic Committee adopts institutional reforms.

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 ‘‘International Olympic

5 Committee Reform Act of 1999’’.

6 SEC. 2. FINDINGS AND PURPOSE.

7 (a) FINDINGS.—The Congress finds the following:
2

•HR 1370 IH

1 (1) The International Olympic Committee has

2 been beset by allegations of illegal and improper

3 gifts made to IOC members during the bid process

4 in which cities compete to host the Olympic games.

5 (2) In order to maintain the integrity of the

6 Olympic games, reforms are necessary to ensure that

7 future Olympic games are awarded to host cities in

8 an impartial manner.

9 (3) Financial sponsorship by American corpora10 tions comprises a significant source of revenues for

11 the IOC and the Olympic games.

12 (b) PURPOSE.—The purpose of this Act is to prevent

13 persons doing business in interstate commerce from pro14 viding financial support to the IOC until the IOC adopts

15 institutional reforms to ensure that future Olympic games

16 are awarded to host cities in an impartial manner.

17 SEC. 3. AMERICAN CORPORATE SPONSORSHIP OF THE

18 INTERNATIONAL OLYMPIC COMMITTEE.

19 The Foreign Corrupt Practices Act of 1977 (15

20 U.S.C. 78dd–2) is amended by adding the following new

21 section after section 104:
3

•HR 1370 IH

1 ‘‘SEC. 104A. PROHIBITION AGAINST AMERICAN CORPORATE

2 SPONSORSHIP OF THE INTERNATIONAL

3 OLYMPIC COMMITTEE.

4 ‘‘(a) REFORMS TO BE IMPLEMENTED BY THE

5 IOC.—No person doing business in interstate commerce

6 in the United States may knowingly provide financial sup7 port to the IOC, unless and until the Secretary of Com8 merce certifies to Congress that the IOC has implemented

9 the recommendations contained in the March 1, 1999, Re10 port of the Special Bid Oversight Commission established

11 by the United States Olympic Committee, including the

12 following:

13 ‘‘(1) Establishing a policy that IOC members

14 may not accept gifts of more than nominal value

15 from any city bidding to host the Olympic games, or

16 any representative of such city.

17 ‘‘(2) Prohibiting IOC members from receiving

18 any money for travel expenses directly from any city

19 bidding to host the Olympic games, or any rep20 resentative of such city.

21 ‘‘(3) Establishing an independent office to mon22 itor, investigate, and enforce violations of its gift

23 giving and travel expense rules by any city bidding

24 to host the Olympic games, any representative of

25 such city, or any IOC member.
4

•HR 1370 IH

1 ‘‘(4) Establishing a procedure by which a ma2 jority of IOC members are elected by national Olym3 pic committees or by other constituent organizations.

4 ‘‘(5) Subjecting IOC members and leaders to

5 periodic reelection.

6 ‘‘(b) SAVINGS PROVISIONS.—

7 ‘‘(1) Nothing in this section shall restrict the

8 first amendment rights of any person.

9 ‘‘(2) Nothing in this section shall prohibit a

10 person from providing financial support to the

11 United States Olympic Committee, any United

12 States sports governing body, or any organizing

13 committee for any Olympic games already awarded

14 by the IOC at the date of enactment of this section.

15 (c) CIVIL PENALTY.—An action may be brought by

16 the Secretary of Commerce in an appropriate United

17 States district court to enjoin any failure or refusal to

18 comply with this section or to impose a civil penalty for

19 such failure or refusal of not more than $25,000 per day.

20 ‘‘(d) DEFINITIONS.—In this section:

21 ‘‘(1) PERSON.—The term ‘person’ means—

22 ‘‘(A) any United States citizen; or

23 ‘‘(B) any other legal entity which is orga24 nized under the laws of the United States, or

25 of any State, the District of Columbia, or any
5

•HR 1370 IH

1 commonwealth, territory, or possession of the

2 United States, and which has its principal place

3 of business in the United States.

4 ‘‘(2) FINANCIAL SUPPORT.—The term ‘financial

5 support’ means any direct or indirect transfer of

6 funds, property, or benefits, including, but not lim7 ited to, loans, credits, financing, investment, spon8 sorship, or in-kind contribution.

9 ‘‘(3) IOC.—The term ‘IOC’ means the Inter10 national Olympic Committee.’’.

11 SEC. 4. EFFECTIVE DATE.

12 The amendments made by this Act shall take effect

13 with respect to the providing of financial support after the

14 date of enactment of this Act.

Æ