I

104TH CONGRESS

1ST SESSION H. R. 735

To establish a national commission to oversee and regulate major league

and minor league baseball, to promote the interests of consumers, local

communities, and taxpayers, to recommend modification of the antitrust

exemption for Major League Baseball, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 30, 1995

Mr. LAFALCE introduced the following bill; which was referred to the Committee on Commerce and, in addition, to the Committees on Economic and

Educational Opportunities and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such

provisions as fall within the jurisdiction of the committee concerned

A BILL

To establish a national commission to oversee and regulate

major league and minor league baseball, to promote the

interests of consumers, local communities, and taxpayers,

to recommend modification of the antitrust exemption

for Major League Baseball, and for other purposes.

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 Commission

5 on Professional Baseball Act of 1995’’.
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1 SEC. 2. ESTABLISHMENT.

2 There is hereby established the National Commission

3 on Professional Baseball (hereafter in this Act referred to

4 as the ‘‘Commission’’).

5 SEC. 3. MEMBERSHIP.

6 (a) NUMBER AND APPOINTMENT.—The Commission

7 shall be composed of seven members, all of whom shall

8 be appointed by the President. The President shall ap9 point—

10 (1) one member after consultation with the

11 owners of Major League Baseball;

12 (2) one member after consultation with the

13 Major League Baseball Players Association;

14 (3) one member after consultation with the Na15 tional Association of Professional Baseball Leagues,

16 Incorporated;

17 (4) one member after solicitation of rec18 ommendations from government officials of cities,

19 towns, or counties in which major league and minor

20 league baseball teams are located; and

21 (5) three members after consultation with base22 ball fan organizations and the informal solicitation

23 of recommendations from the general public, one of

24 whom the President shall designate as Chairman of

25 the Commission.
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1 (b) TERM.—Members of the Commission shall be ap2 pointed for a five-year term. In the event that the term

3 of the Commission is extended by the Congress pursuant

4 to section 10 of this Act, the term of individual members

5 shall also be extended, except that no individual may serve

6 as a member for more than six years.

7 (c) QUORUM.—A majority of the members of the

8 Commission shall constitute a quorum, but the Commis9 sion may provide for the taking of testimony and the re10 ception of evidence at meetings at which there are present

11 not less than three members of the Commission.

12 (d) APPOINTMENT DATE.—The first appointments

13 made under subsection (a) shall be made within sixty days

14 after the date of enactment of this Act.

15 (e) FIRST MEETING.—The first meeting of the Com16 mission shall be called by the Chairman and shall be held

17 within ninety days after the date of enactment of this Act.

18 (f) PUBLIC MEETINGS.—All Commission meetings

19 and hearings shall be open to the public.

20 (g) VACANCY.—If any member of the Commission is

21 unable to serve a full term or becomes unqualified to serve

22 in such position, a new member shall be appointed to serve

23 the remainder of such term of office, within forty-five days

24 of the vacancy, in the same manner in which the original

25 appointment was made.
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1 SEC. 4. DUTIES OF THE COMMISSION.

2 The duties of the Commission are to oversee and in3 vestigate any aspect of major league baseball and minor

4 league baseball, where, in the opinion of the Commission,

5 it is in the best interests of baseball to intervene, including

6 but not limited to the—

7 (1) negotiation of contract agreements between

8 major league team owners and players;

9 (2) renegotiation of the professional baseball

10 agreement between major league and minor league

11 team owners;

12 (3) setting of ticket prices;

13 (4) expansion and relocation of major league

14 and minor league team franchises;

15 (5) structural requirements and financing of

16 baseball stadiums and facilities;

17 (6) terms and conditions of minor league player

18 contracts;

19 (7) licensing of television broadcast rights and

20 allocation of television revenues;

21 (8) licensing and marketing of merchandise and

22 allocation of revenues; and

23 (9) revenue sharing among owners of major

24 league teams and among the major and minor

25 leagues.
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1 (b) ARBITRATION AND MEDIATION.—The duty of the

2 Commission to intervene in any aspect of major league or

3 minor league baseball, pursuant to subsection (a) of this

4 section, shall include but not be limited to the—

5 (1) conduct of binding arbitration in the event

6 of a labor impasse between Major League Baseball

7 and players; and

8 (2) mediation or arbitration of disputes between

9 Major League Baseball or individual owners of

10 major league teams and minor league baseball team

11 owners.

12 SEC. 5. POWERS OF THE COMMISSION.

13 (a) HEARINGS AND MEETINGS.—The Commission or,

14 on authorization of the Commission, a panel of at least

15 three members of the Commission, may hold such hear16 ings, sit and act at such times and places, take such testi17 mony, and receive such evidence, as the Commission con18 siders appropriate.

19 (b) OBTAINING INFORMATION.—The Commission

20 may secure directly from any Federal department, agency,

21 or court information and assistance necessary to enable

22 it to carry out this Act. Upon request of the Chairman

23 of the Commission, the head of such agency or department

24 shall furnish such information or assistance to the Com25 mission. In addition, the Commission may request any rel-
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1 evant information from any appropriate parties with an

2 interest in major league or minor league baseball.

3 (c) SUBPOENA POWER.—

4 (1) ISSUANCE.—The Commission may issue

5 subpoenas requiring the attendance and testimony of

6 witnesses and the production of any evidence that

7 relates to any matter under investigation by the

8 Commission. The attendance of witnesses and the

9 production of evidence may be required from any

10 place within a judicial district at any designated

11 place of hearing within the judicial district.

12 (2) ENFORCEMENT.—If a person issued a sub13 poena under paragraph (1) refuses to obey the sub14 poena or is guilty of contumacy, any court of the

15 United States within the judicial district within

16 which the hearing is conducted or within the judicial

17 district within which the person is found or resides

18 or transacts business may (upon application by the

19 Commission) order the person to appear before the

20 Commission to produce evidence or to give testimony

21 relating to the matter under investigation. Any fail22 ure to obey the order of the court may be punished

23 by the court as a contempt of the court.

24 (3) MANNER OF SERVICE.—A subpoena of the

25 Commission shall be served in the manner provided
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1 for subpoenas issued by a United States district

2 court under the Federal Rules of Civil Procedure for

3 the United States district courts.

4 (4) PLACE OF SERVICE.—All process of any

5 court to which application may be made under this

6 section may be served in the judicial district in

7 which the person required to be served resides or

8 may be found.

9 (d) ORDERS AND INJUNCTIONS.—Whenever the

10 Commission has reason to believe that an act or practice

11 of Major League Baseball or of any individual owner of

12 a major league baseball team may not be in the public

13 interest or in the best interest of baseball, the Commission

14 shall have authority—

15 (1) to issue orders to stay temporarily such act

16 or practice pending review by the Commission or

17 pending a request for mediation or arbitration of

18 disputes involving such action submitted to the Com19 mission by baseball players, minor league team own20 ers, or public officials; and

21 (2) to bring a civil action in an appropriate dis22 trict court of the United States to enjoin such act

23 or practice and, upon proper showing that such ac24 tion would be in the public interest, to obtain a tem25 porary restraining order or a preliminary injunction
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1 against such act or practice: Provided, however, That

2 in proper cases the Commission may seek, and upon

3 proper showing of proof, the court may grant a per4 manent injunction.

5 (f) FACILITIES AND SUPPORT SERVICES.—The Ad6 ministrator of General Services shall provide to the Com7 mission on a reimbursable basis such facilities and support

8 services as the Commission may request. Upon request of

9 the Commission, the head of a Federal department or

10 agency may make any of the facilities and services of such

11 agency available to the Commission to assist the Commis12 sion in carrying out its duties under this Act.

13 (g) EXPENDITURES AND CONTRACTS.—The Commis14 sion or, on authorization of the Commission, a member

15 of the Commission may make expenditures and enter into

16 contracts for the procurement of such supplies, services,

17 and property as the Commission or members consider ap18 propriate for the purposes of carrying out the duties of

19 the Commission. Such expenditures and contracts may be

20 made only to such extent or in such amounts as appro21 priated under section 9 of this Act.

22 (h) MAILS.—The Commission may use the United

23 States mails in the same manner and under the same con24 ditions as other Federal departments and agencies of the

25 United States.
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1 SEC. 6. COMPENSATION OF THE COMMISSION.

2 (a) COMPENSATION.—Each member of the Commis3 sion shall be a full-time Federal employee and shall be

4 paid at an annual rate of basic pay payable for level II

5 of the Executive Schedule under section 5313 of title 5,

6 United States Code.

7 (b) EXPENSES.—Members of the Commission shall

8 be reimbursed for travel, subsistence, and other necessary

9 expenses incurred by them in the performance of their du10 ties.

11 SEC. 7. STAFF OF COMMISSION; EXPERTS AND CONSULT12 ANTS.

13 (a) STAFF.—

14 (1) APPOINTMENT.—The Chairman of the

15 Commission may appoint and terminate no more

16 than ten staff personnel to enable the Commission to

17 perform its duties.

18 (2) COMPENSATION.—The Chairman of the

19 Commission may fix the compensation of personnel

20 without regard to the provision of chapter 51 and

21 subchapter II of chapter 53 of title 5, United States

22 Code, relating to classification of position and Gen23 eral Schedule pay rates, except that the rate of pay

24 may not exceed the rate payable for level V of the

25 Executive Schedule under section 5316 of such title.
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1 (b) EXPERTS AND CONSULTANTS.—The Commission

2 may procure temporary and intermittent services of ex3 perts and consultants under section 3109(b) of title 5,

4 United States Code.

5 SEC. 8. REPORT TO CONGRESS.

6 (a) COMMISSION STUDY.—The Commission shall un7 dertake a study of the antitrust exemption for Major

8 League Baseball that shall include but not be limited to

9 analysis of the—

10 (1) effects of the antitrust exemption on major

11 league and minor league baseball players, minor

12 league baseball teams, baseball fans, local govern13 ments, and taxpayers of municipalities in which

14 baseball teams are located;

15 (2) possible effects of continuing the antitrust

16 exemption;

17 (3) possible effects of proposals for modification

18 of the antitrust exemption on Major League Base19 ball, minor league baseball teams, major league and

20 minor league baseball players, baseball fans, local

21 governments, and taxpayers, including but not lim22 ited to proposals for—

23 (A) elimination of the antitrust exemption;

24 (B) partial elimination of the antitrust ex25 emption for purposes of labor relations between
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1 Major League Baseball and professional base2 ball players or for purposes of major league

3 team franchise expansion or relocation; and

4 (C) elimination of the antitrust exemption

5 with protections to hold harmless existing con6 tractual relationships between major league and

7 minor league baseball teams with respect to

8 player development, territorial arrangements,

9 and other activities that might otherwise be

10 subject to the antitrust laws.

11 (b) REPORT.—Not later than three years after the

12 date of the enactment of the Act, the Commission shall

13 submit to the Congress a report containing its findings

14 and conclusions pursuant to this section, together with its

15 recommendations as to any legislation it may consider ap16 propriate for modification of the antitrust exemption for

17 Major League Baseball.

18 SEC. 9. AUTHORIZATION AND FEES.

19 (a) AUTHORIZATION.—There are authorized to be ap20 propriated such funds as may be necessary to carry out

21 this title, except that the amount of such funds shall not

22 exceed the amount of funds made available pursuant to

23 subsection (b) of this section. All funds appropriated

24 under this section shall remain available until expended.
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1 (b) FEES.—Major League Baseball shall pay to the

2 Treasury of the United States on or before March 15 of

3 each calendar year a fee in the amount of two-tenths of

4 1 per centum of the aggregate dollar amount of combined

5 team revenues received during each preceding calendar

6 year, except that the Commission, by rule, may exempt

7 any revenue or class of revenue from any fee imposed by

8 this subsection, if the Commission finds that such exemp9 tion is consistent with the public interest. The Commis10 sion, by rule, shall set forth the manner and terms under

11 which such payment shall be made after consultation with

12 the Secretary of the Treasury and Major League Baseball.

13 Payment of any fee under this subsection shall be made

14 for each of the five years that this Act shall be effective,

15 and for any additional years the Congress shall determine

16 pursuant to section 10 of this Act.

17 SEC. 10. TERM OF THE COMMISSION.

18 The duties and powers set forth in this Act shall

19 cease to be effective five years after the date of enactment,

20 unless otherwise extended by the Congress.

21 SEC. 11. EFFECTIVE DATE.

22 This Act shall take effect on the date of enactment.

Æ