II 

108TH CONGRESS 

2D SESSION S. 2551 

To reduce and prevent childhood obesity by encouraging schools and school 

districts to develop and implement local, school-based programs designed 

to reduce and prevent childhood obesity, promote increased physical activity, and improve nutritional choices. 

IN THE SENATE OF THE UNITED STATES 

JUNE 21, 2004 

Mr. FRIST (for himself and Mr. WYDEN) introduced the following bill; which 

was read twice and referred to the Committee on Health, Education, 

Labor, and Pensions 

A BILL 

To reduce and prevent childhood obesity by encouraging 

schools and school districts to develop and implement 

local, school-based programs designed to reduce and prevent childhood obesity, promote increased physical activity, and improve nutritional choices. 

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 ‘‘Childhood Obesity Re5 duction Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 
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1 (1) According to the Centers for Disease Con2 trol and Prevention, obesity may soon overtake to3 bacco as the leading preventable cause of death. 

4 (2) In 1999, 13 percent of children aged 6 to 

5 11 years and 14 percent of adolescents aged 12 to 

6 19 years in the United States were overweight. This 

7 prevalence has nearly tripled for adolescents in the 

8 past 2 decades. 

9 (3) Risk factors for heart disease, such as high 

10 cholesterol and high blood pressure, occur with in11 creased frequency in overweight children and adoles12 cents compared to children with a healthy weight. 

13 (4) Type 2 diabetes, previously considered an 

14 adult disease, has increased dramatically in children 

15 and adolescents. Overweight and obesity are closely 

16 linked to type 2 diabetes. 

17 (5) Obesity in children and adolescents is gen18 erally caused by a lack of physical activity, 

19 unhealthy eating patterns, or a combination of the 

20 2, with genetics and lifestyle both playing important 

21 roles in determining a child’s weight. 

22 (6) Overweight adolescents have a 70 percent 

23 chance of becoming overweight or obese adults. 

24 (7) The 2001 report ‘‘The Surgeon General’s 

25 Call to Action to Prevent and Decrease Overweight 
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1 and Obesity’’ suggested that obesity and its com2 plications were already costing the United States 

3 $117,000,000,000 annually. 

4 (8) Substantial evidence shows that public 

5 health risks can be reduced through increased public 

6 awareness and community involvement. 

7 (9) Congress needs to challenge students, teach8 ers, school administrators, and local communities to 

9 voluntarily participate in the development and imple10 mentation of activities to successfully reduce and 

11 prevent childhood obesity. 

12 TITLE I—CONGRESSIONAL 

13 COUNCIL ON CHILDHOOD 

14 OBESITY 

15 SEC. 101. CONGRESSIONAL COUNCIL ON CHILDHOOD OBE16 SITY. 

17 (a) ESTABLISHMENT OF COUNCIL.—There is estab18 lished a ‘‘Congressional Council on Childhood Obesity’’ 

19 (referred to in this title as the ‘‘Council’’). 

20 (b) PURPOSES.—The purposes of the Council shall 

21 be— 

22 (1) to encourage every elementary school and 

23 middle school in the United States, whether public 

24 or private, to develop and implement a plan to re25 duce and prevent obesity, promote improved nutri-
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1 tional choices, and promote increased physical activ2 ity among students; and 

3 (2) to provide information as necessary to sec4 ondary schools. 

5 SEC. 102. MEMBERSHIP OF THE COUNCIL. 

6 (a) COMPOSITION OF THE COUNCIL.—The Council 

7 shall be composed of 8 members as follows: 

8 (1) The majority leader of the Senate or the 

9 designee of the majority leader of the Senate. 

10 (2) The minority leader of the Senate or the 

11 designee of the minority leader of the Senate. 

12 (3) The Speaker of the House of Representa13 tives or the designee of the Speaker of the House of 

14 Representatives. 

15 (4) The minority leader of the House of Rep16 resentatives or the designee of the minority leader of 

17 the House of Representatives. 

18 (5) 4 citizen members to be appointed in ac19 cordance with subsection (b). 

20 (b) APPOINTMENT OF CITIZEN COUNCIL MEM21 BERS.— 

22 (1) METHOD OF APPOINTMENT.—For the pur23 pose of subsection (a)(5), each of the 4 members de24 scribed in paragraphs (1) through (4) of subsection 

25 (a) shall appoint to the Council a citizen who is an 
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1 expert on children’s health, nutrition, or physical ac2 tivity. 

3 (2) DATE OF APPOINTMENT.—The appoint4 ments made under paragraph (1) shall be made not 

5 later than 120 days after the date of enactment of 

6 this Act. 

7 (c) VACANCIES.—Any vacancy in the Council shall 

8 not affect its powers, but shall be filled in the manner 

9 in which the original appointment was made under sub10 section (a). 

11 (d) CHAIRPERSON.—The members of the Council 

12 shall elect, from among the members of the Council, a 

13 Chairperson. 

14 (e) INITIAL MEETING.—The Council shall hold its 

15 first meeting not later than 120 days after the date of 

16 enactment of this Act. 

17 SEC. 103. RESPONSIBILITIES OF THE COUNCIL. 

18 (a) IN GENERAL.—The Council shall engage in the 

19 following activities: 

20 (1) Work with outside experts to develop the 

21 Congressional Challenge to Reduce and prevent 

22 Childhood Obesity, which shall include the develop23 ment of model plans to reduce and prevent childhood 

24 obesity that can be adopted or adapted by elemen25 tary schools or middle schools that participate. 
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1 (2) Develop and maintain a website that is up2 dated not less than once a month on best practices 

3 in the United States for reducing and preventing 

4 childhood obesity. 

5 (3) Assist in helping elementary schools and 

6 middle schools in establishing goals for the healthy 

7 reduction and prevention of childhood obesity. 

8 (4) Consult and coordinate with the President’s 

9 Council on Physical Fitness and other Federal Gov10 ernment initiatives conducting activities to reduce 

11 and prevent childhood obesity. 

12 (5) Reward elementary schools, middle schools, 

13 and local educational agencies promoting innovative, 

14 successful strategies in reducing and preventing 

15 childhood obesity. 

16 (6) Provide information to secondary schools. 

17 (b) CONGRESSIONAL CHALLENGE WINNERS.— 

18 (1) IN GENERAL.—The Council shall— 

19 (A) evaluate plans submitted by elemen20 tary schools, middle schools, and local edu21 cational agencies under paragraph (2); 

22 (B) designate the plans submitted under 

23 paragraph (2) that meet the criteria under 

24 paragraph (3) as Congressional Challenge win25 ners; and 
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1 (C) post the plans of the Congressional 

2 Challenge winners designated under subpara3 graph (B) on the website of the Council as 

4 model plans for reducing and preventing child5 hood obesity. 

6 (2) SUBMISSION OF PLANS.—Each elementary 

7 school, middle school, or local educational agency 

8 that desires to have the plan to reduce and prevent 

9 childhood obesity of such entity designated as a Con10 gressional Challenge winner shall submit to the 

11 Council such plan at such time, in such manner, and 

12 accompanied by such information as the Council 

13 may reasonably require. 

14 (3) SELECTION CRITERIA.— 

15 (A) IN GENERAL.—The Council shall 

16 evaluate plans submitted by elementary schools, 

17 middle schools, and local educational agencies 

18 under paragraph (2) and shall designate as 

19 Congressional Challenge winners the plans 

20 that— 

21 (i) show promise in successfully in22 creasing physical activity, improving nutri23 tion, and reducing and preventing obesity; 

24 or 
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1 (ii) have maintained efforts in assist2 ing children in increasing physical activity, 

3 improving nutrition, and reducing and pre4 venting obesity. 

5 (B) CRITERIA.—The Council shall make 

6 the determination under subparagraph (A) 

7 based on the following criteria: 

8 (i) Strategies based on evaluated 

9 interventions. 

10 (ii) The number of children in the 

11 community in need of assistance in ad12 dressing obesity and the potential impact 

13 of the proposed plan. 

14 (iii) The involvement in the plan of 

15 the community served by the school or 

16 local educational agency. 

17 (iv) Other criteria as determined by 

18 the Council. 

19 (c) MEETINGS.—The Council shall hold not less than 

20 1 meeting each year, and all meetings of the Council shall 

21 be public meetings, preceded by a publication of notice in 

22 the Federal Register. 

23 SEC. 104. ADMINISTRATIVE MATTERS. 

24 (a) PAY AND TRAVEL EXPENSES.— 
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1 (1) PROHIBITION OF PAY.—Members of the 

2 Council shall receive no pay, allowances, or benefits 

3 by reason of their service on the Council. 

4 (2) TRAVEL EXPENSES.— 

5 (A) COMPENSATION FOR TRAVEL.—Each 

6 member of the Council shall be allowed travel 

7 expenses, including per diem in lieu of subsist8 ence, at rates authorized for employees of agen9 cies under subchapter I of chapter 57 of title 5, 

10 United States Code, while away from their 

11 homes or regular places of business in the per12 formance of services for the Council, to the ex13 tent funds are available under subparagraph 

14 (B) for such expenses. 

15 (B) LIMIT ON TRAVEL EXPENSES.—Travel 

16 expenses under subparagraph (A) shall be ap17 propriated from the amounts appropriated to 

18 the legislative branch and shall not exceed 

19 $1,000,000. 

20 (b) STAFF.—The Chairperson of the Council may ap21 point and terminate, as may be necessary to enable the 

22 Council to perform its duties, not more than 5 staff per23 sonnel, all of whom shall be considered employees of the 

24 Senate. 
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1 SEC. 105. TERMINATION OF COUNCIL. 

2 The Council shall terminate on September 30 of the 

3 second full fiscal year following the date of enactment of 

4 this Act. 

5 SEC. 106. AUTHORIZATION OF APPROPRIATIONS. 

6 There are authorized to be appropriated to carry out 

7 this title $2,200,000 for each of fiscal years 2005 and 

8 2006. 

9 TITLE II—NATIONAL FOUNDA10 TION FOR THE PREVENTION 

11 AND REDUCTION OF CHILD12 HOOD OBESITY 

13 SEC. 201. ESTABLISHMENT AND DUTIES OF FOUNDATION. 

14 (a) IN GENERAL.—There shall be established in ac15 cordance with this section a nonprofit private corporation 

16 to be known as the National Foundation for the Preven17 tion and Reduction of Childhood Obesity (referred to in 

18 this title as the ‘‘Foundation’’). The Foundation shall not 

19 be an agency or instrumentality of the Federal Govern20 ment, and officers, employees, and members of the board 

21 of the Foundation shall not be officers or employees of 

22 the Federal Government. 

23 (b) PURPOSE OF FOUNDATION.—The purpose of the 

24 Foundation shall be to support and carry out activities 

25 for the prevention and reduction of childhood obesity 

26 through school-based activities. 
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1 (c) ENDOWMENT FUND.— 

2 (1) IN GENERAL.—In carrying out subsection 

3 (b), the Foundation shall establish a fund for pro4 viding endowments for positions that are associated 

5 with the Congressional Council on Childhood Obesity 

6 and the Department of Health and Human Services 

7 (referred to in this title as the ‘‘Department’’) and 

8 dedicated to the purpose described in such sub9 section. Subject to subsection (g)(1)(B), the fund 

10 shall consist of such donations as may be provided 

11 by non-Federal entities and such non-Federal assets 

12 of the Foundation (including earnings of the Foun13 dation and the fund) as the Foundation may elect 

14 to transfer to the fund. 

15 (2) AUTHORIZED EXPENDITURES OF FUND.— 

16 The provision of endowments under paragraph (1) 

17 shall be the exclusive function of the fund estab18 lished under such paragraph. Such endowments may 

19 be expended only for the compensation of individuals 

20 holding the positions, for staff, equipment, quarters, 

21 travel, and other expenditures that are appropriate 

22 in supporting the positions, and for recruiting indi23 viduals to hold the positions endowed by the fund. 

24 (d) CERTAIN ACTIVITIES OF FOUNDATION.—In car25 rying out subsection (b), the Foundation may provide for 
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1 the following with respect to the purpose described in such 

2 subsection: 

3 (1) Evaluate and make known the effectiveness 

4 of model plans used by schools to reduce and pre5 vent childhood obesity. 

6 (2) Create a website to assist in the distribution 

7 of successful plans, best practices, and other infor8 mation to assist elementary schools, middle schools, 

9 and the public to develop and implement efforts to 

10 reduce and prevent childhood obesity. 

11 (3) Participate in meetings, conferences, 

12 courses, and training workshops. 

13 (4) Assist in the distribution of data concerning 

14 childhood obesity. 

15 (5) Make Challenge awards, pursuant to sub16 section (e), to elementary schools, middle schools, 

17 and local educational agencies for the successful de18 velopment and implementation of school-based plans. 

19 (6) Other activities to carry out the purpose de20 scribed in subsection (b). 

21 (e) CHALLENGE AWARDS.— 

22 (1) PROGRAM AUTHORIZED.—The Foundation 

23 may provide Challenge awards to elementary schools, 

24 middle schools, and local educational agencies that 

25 submit applications under paragraph (2). 
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1 (2) APPLICATION.—Each elementary school, 

2 middle school, or local educational agency that de3 sires to receive a Challenge award under this sub4 section shall submit an application that includes a 

5 plan to reduce and prevent childhood obesity to the 

6 Foundation at such time, in such manner, and ac7 companied by such additional information as the 

8 Foundation may reasonably require. 

9 (3) SELECTION CRITERIA.—In the program au10 thorized under paragraph (1), the Foundation shall 

11 provide Challenge awards based on— 

12 (A) the success of the plans of the elemen13 tary schools, middle schools, and local edu14 cational agencies in meeting the plans’ stated 

15 goals; 

16 (B) the number of children in the commu17 nity served by the elementary school, middle 

18 school, or local educational agency who are in 

19 need of assistance in addressing obesity; and 

20 (C) other criteria as determined by the 

21 Foundation. 

22 (f) GENERAL STRUCTURE OF FOUNDATION; NON23 PROFIT STATUS.— 

24 (1) BOARD OF DIRECTORS.—The Foundation 

25 shall have a board of directors (referred to in this 
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1 title as the ‘‘Board’’), which shall be established and 

2 conducted in accordance with subsection (g). The 

3 Board shall establish the general policies of the 

4 Foundation for carrying out subsection (b), includ5 ing the establishment of the bylaws of the Founda6 tion. 

7 (2) EXECUTIVE DIRECTOR.—The Foundation 

8 shall have an executive director (referred to in this 

9 title as the ‘‘Director’’), who shall be appointed by 

10 the Board, who shall serve at the pleasure of the 

11 Board, and for whom the Board shall establish the 

12 rate of compensation. Subject to compliance with the 

13 policies and bylaws established by the Board pursu14 ant to paragraph (1), the Director shall be respon15 sible for the daily operations of the Foundation in 

16 carrying out subsection (b). 

17 (3) NONPROFIT STATUS.—In carrying out sub18 section (b), the Board shall establish such policies 

19 and bylaws under paragraph (1), and the Director 

20 shall carry out such activities under paragraph (2), 

21 as may be necessary to ensure that the Foundation 

22 maintains status as an organization that— 

23 (A) is described in subsection (c)(3) of sec24 tion 501 of the Internal Revenue Code of 1986; 

25 and 
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1 (B) is, under subsection (a) of such sec2 tion, exempt from taxation. 

3 (g) BOARD OF DIRECTORS.— 

4 (1) CERTAIN BYLAWS.— 

5 (A) INCLUSIONS.—In establishing bylaws 

6 under subsection (f)(1), the Board shall ensure 

7 that the bylaws of the Foundation include by8 laws for the following: 

9 (i) Policies for the selection of the of10 ficers, employees, agents, and contractors 

11 of the Foundation. 

12 (ii) Policies, including ethical stand13 ards, for the acceptance and disposition of 

14 donations to the Foundation and for the 

15 disposition of the assets of the Foundation. 

16 (iii) Policies for the conduct of the 

17 general operations of the Foundation. 

18 (iv) Policies for writing, editing, print19 ing, and publishing of books and other ma20 terials, and the acquisition of patents and 

21 licenses for devices and procedures devel22 oped by the Foundation. 

23 (B) EXCLUSIONS.—In establishing bylaws 

24 under subsection (f)(1), the Board shall ensure 
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1 that the bylaws of the Foundation (and activities 

2 carried out under the bylaws) do not— 

3 (i) reflect unfavorably upon the ability 

4 of the Foundation, or the Department, to 

5 carry out its responsibilities or official du6 ties in a fair and objective manner; or 

7 (ii) compromise, or appear to com8 promise, the integrity of any governmental 

9 program or any officer or employee in10 volved in such program. 

11 (2) COMPOSITION.— 

12 (A) IN GENERAL.—Subject to subpara13 graph (B), the Board shall be composed of 7 in14 dividuals, appointed in accordance with para15 graph (4), who collectively possess education or 

16 experience appropriate for representing the 

17 fields of children’s health, nutrition, and phys18 ical fitness or organizations active in reducing 

19 and preventing childhood obesity. Each such in20 dividual shall be a voting member of the Board. 

21 (B) GREATER NUMBER.—The Board may, 

22 through amendments to the bylaws of the 

23 Foundation, provide that the number of mem24 bers of the Board shall be a greater number 

25 than the number specified in subparagraph (A). 
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1 (3) CHAIRPERSON.—The Board shall, from 

2 among the members of the Board, designate an indi3 vidual to serve as the Chairperson of the Board (re4 ferred to in this subsection as the ‘‘Chairperson’’). 

5 (4) APPOINTMENTS, VACANCIES, AND TERMS.— 

6 Subject to subsection (k) (regarding the initial mem7 bership of the Board), the following shall apply to 

8 the Board: 

9 (A) Any vacancy in the membership of the 

10 Board shall be filled by appointment by the 

11 Board, after consideration of suggestions made 

12 by the Chairperson and the Director regarding 

13 the appointments. Any such vacancy shall be 

14 filled not later than the expiration of the 180- 

15 day period beginning on the date on which the 

16 vacancy occurs. 

17 (B) The term of office of each member of 

18 the Board appointed under subparagraph (A) 

19 shall be 5 years. A member of the Board may 

20 continue to serve after the expiration of the 

21 term of the member until the expiration of the 

22 180-day period beginning on the date on which 

23 the term of the member expires. 

24 (C) A vacancy in the membership of the 

25 Board shall not affect the power of the Board 
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1 to carry out the duties of the Board. If a mem2 ber of the Board does not serve the full term 

3 applicable under subparagraph (B), the indi4 vidual appointed to fill the resulting vacancy 

5 shall be appointed for the remainder of the 

6 term of the predecessor of the individual. 

7 (5) COMPENSATION.—Members of the Board 

8 may not receive compensation for service on the 

9 Board. The members may be reimbursed for travel, 

10 subsistence, and other necessary expenses incurred 

11 in carrying out the duties of the Board. 

12 (h) CERTAIN RESPONSIBILITIES OF EXECUTIVE DI13 RECTOR.—In carrying out subsection (f)(2), the Director 

14 shall carry out the following functions: 

15 (1) Hire, promote, compensate, and discharge 

16 officers and employees of the Foundation, and define 

17 the duties of the officers and employees. 

18 (2) Accept and administer donations to the 

19 Foundation, and administer the assets of the Foun20 dation. 

21 (3) Establish a process for the selection of can22 didates for holding endowed positions under sub23 section (c). 
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1 (4) Enter into such financial agreements as are 

2 appropriate in carrying out the activities of the 

3 Foundation. 

4 (5) Take such action as may be necessary to ac5 quire patents and licenses for devices and procedures 

6 developed by the Foundation and the employees of 

7 the Foundation. 

8 (6) Adopt, alter, and use a corporate seal, 

9 which shall be judicially noticed. 

10 (7) Commence and respond to judicial pro11 ceedings in the name of the Foundation. 

12 (8) Other functions that are appropriate in the 

13 determination of the Director. 

14 (i) GENERAL PROVISIONS.— 

15 (1) AUTHORITY FOR ACCEPTING FUNDS.—The 

16 Secretary of Health and Human Services (referred 

17 to in this title as the ‘‘Secretary’’) may accept and 

18 utilize, on behalf of the Federal Government, any 

19 gift, donation, bequest, or devise of real or personal 

20 property from the Foundation for the purpose of 

21 aiding or facilitating the work of the Department. 

22 Funds may be accepted and utilized by the Sec23 retary under the preceding sentence without regard 

24 to whether the funds are designated as general-pur25 pose funds or special-purpose funds. 
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1 (2) AUTHORITY FOR ACCEPTANCE OF VOL2 UNTARY SERVICES.— 

3 (A) IN GENERAL.—The Secretary may ac4 cept, on behalf of the Federal Government, any 

5 voluntary services provided to the Department 

6 by the Foundation for the purpose of aiding or 

7 facilitating the work of the Department. In the 

8 case of an individual, the Secretary may accept 

9 the services provided under the preceding sen10 tence by the individual for not more than 2 

11 years. 

12 (B) NON-FEDERAL GOVERNMENT EMPLOY13 EES.—The limitation established in subpara14 graph (A) regarding the period of time in which 

15 services may be accepted applies to each indi16 vidual who is not an employee of the Federal 

17 Government and who serves in association with 

18 the Department pursuant to financial support 

19 from the Foundation. 

20 (3) ADMINISTRATIVE CONTROL.—No officer, 

21 employee, or member of the Board may exercise any 

22 administrative or managerial control over any Fed23 eral employee. 

24 (4) APPLICABILITY OF CERTAIN STANDARDS TO

25 NON-FEDERAL EMPLOYEES.—In the case of any in-
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1 dividual who is not an employee of the Federal Gov2 ernment and who serves in association with the De3 partment pursuant to financial support from the 

4 Foundation, the Foundation shall negotiate a memo5 randum of understanding with the individual and 

6 the Secretary specifying that the individual— 

7 (A) shall be subject to the ethical and pro8 cedural standards regulating Federal employ9 ment, scientific investigation, and research find10 ings (including publications and patents) that 

11 are required of individuals employed by the De12 partment, including standards under this Act, 

13 the Ethics in Government Act of 1978 (5 

14 U.S.C. App.), and the Federal Technology 

15 Transfer Act of 1986 (Public Law 99–502; 100 

16 Stat. 1785); and 

17 (B) shall be subject to such ethical and 

18 procedural standards under chapter 11 of title 

19 18, United States Code (relating to conflicts of 

20 interest), as the Secretary determines is appro21 priate, except such memorandum may not pro22 vide that the individual shall be subject to the 

23 standards of section 209 of such chapter. 

24 (5) FINANCIAL CONFLICTS OF INTEREST.—Any 

25 individual who is an officer, employee, or member of 
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1 the Board may not directly or indirectly participate 

2 in the consideration or determination by the Founda3 tion of any question affecting— 

4 (A) any direct or indirect financial interest 

5 of the individual; or 

6 (B) any direct or indirect financial interest 

7 of any business organization or other entity of 

8 which the individual is an officer or employee or 

9 in which the individual has a direct or indirect 

10 financial interest. 

11 (6) AUDITS; AVAILABILITY OF RECORDS.—The 

12 Foundation shall— 

13 (A) provide for biennial audits of the fi14 nancial condition of the Foundation; and 

15 (B) make such audits, and all other 

16 records, documents, and other papers of the 

17 Foundation, available to the Secretary and the 

18 Comptroller General of the United States for 

19 examination or audit. 

20 (7) REPORTS.— 

21 (A) IN GENERAL.—Not later than Feb22 ruary 1 of each fiscal year, the Foundation 

23 shall publish a report describing the activities of 

24 the Foundation during the preceding fiscal 

25 year. Each such report shall include for the fis-
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1 cal year involved a comprehensive statement of 

2 the operations, activities, financial condition, 

3 and accomplishments of the Foundation. 

4 (B) INCLUSIONS.—With respect to the fi5 nancial condition of the Foundation, each re6 port under subparagraph (A) shall include the 

7 source, and a description, of all gifts to the 

8 Foundation of real or personal property, and 

9 the source and amount of all gifts to the Foun10 dation of money. Each such report shall include 

11 a specification of any restrictions on the pur12 poses for which gifts to the Foundation may be 

13 used. 

14 (C) PUBLIC INSPECTION.—The Founda15 tion shall make copies of each report submitted 

16 under subparagraph (A) available for public in17 spection, and shall upon request provide a copy 

18 of the report to any individual for a charge not 

19 exceeding the cost of providing the copy. 

20 (8) LIAISONS.—The Secretary shall appoint li21 aisons to the Foundation from relevant Federal 

22 agencies, including the Office of the Surgeon Gen23 eral and the Centers for Disease Control and Pre24 vention. The Secretary of Agriculture shall designate 

25 liaisons to the Foundation as appropriate. 
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1 (9) INCLUSION OF THE PRESIDENT’S COUN2 CIL.—The Foundation shall ensure that the Presi3 dent’s Council on Physical Fitness is included in the 

4 activities of the Foundation. 

5 (j) FEDERAL FUNDING.— 

6 (1) AUTHORITY FOR ANNUAL GRANTS.— 

7 (A) IN GENERAL.—The Secretary shall— 

8 (i) for fiscal year 2005, make a grant 

9 to an entity described in subsection (k)(9) 

10 (relating to the establishment of a com11 mittee to establish the Foundation); 

12 (ii) for fiscal years 2006 and 2007, 

13 make a grant to the committee established 

14 under such subsection, or if the Founda15 tion has been established, to the Founda16 tion; and 

17 (iii) for fiscal year 2008 and each sub18 sequent fiscal year, make a grant to the 

19 Foundation. 

20 (B) RULES ON EXPENDITURES.—A grant 

21 under subparagraph (A) may be expended— 

22 (i) in the case of an entity receiving 

23 the grant under subparagraph (A)(i), only 

24 for the purpose of carrying out the duties 
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1 established in subsection (k)(9) for the en2 tity; 

3 (ii) in the case of the committee es4 tablished under subsection (k)(9), only for 

5 the purpose of carrying out the duties es6 tablished in subsection (k) for the com7 mittee; and 

8 (iii) in the case of the Foundation, 

9 only for the purpose of the administrative 

10 expenses of the Foundation. 

11 (C) RESTRICTION.—A grant under sub12 paragraph (A) may not be expended to provide 

13 amounts for the fund established under sub14 section (c). 

15 (D) UNOBLIGATED GRANT FUNDS.—For 

16 the purposes described in subparagraph (B)— 

17 (i) any portion of the grant made 

18 under subparagraph (A)(i) for fiscal year 

19 2005 that remains unobligated after the 

20 entity receiving the grant completes the 

21 duties established in subsection (k)(9) for 

22 the entity shall be available to the com23 mittee established under such subsection; 

24 and 
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1 (ii) any portion of a grant under sub2 paragraph (A) made for fiscal year 2005 

3 or 2006 that remains unobligated after 

4 such committee completes the duties estab5 lished in such subsection for the committee 

6 shall be available to the Foundation. 

7 (2) FUNDING FOR GRANTS.— 

8 (A) IN GENERAL.—For the purpose of 

9 grants under paragraph (1), there is authorized 

10 to be appropriated $2,200,000 for each fiscal 

11 year. 

12 (B) PROGRAMS OF THE DEPARTMENT.— 

13 For the purpose of grants under paragraph (1), 

14 the Secretary may for each fiscal year make 

15 available not more than $2,200,000 from the 

16 amounts appropriated for the fiscal year for the 

17 programs of the Department. Such amounts 

18 may be made available without regard to wheth19 er amounts have been appropriated under sub20 paragraph (A). 

21 (3) CERTAIN RESTRICTION.—If the Foundation 

22 receives Federal funds for the purpose of serving as 

23 a fiscal intermediary between Federal agencies, the 

24 Foundation may not receive such funds for the indi25 rect costs of carrying out such purpose in an amount 
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1 exceeding 10 percent of the direct costs of carrying 

2 out such purpose. The preceding sentence may not 

3 be construed as authorizing the expenditure of any 

4 grant under paragraph (1) for such purpose. 

5 (k) COMMITTEE FOR ESTABLISHMENT OF FOUNDA6 TION.— 

7 (1) IN GENERAL.—There shall be established, 

8 in accordance with this subsection and subsection 

9 (j)(1), a committee to carry out the functions de10 scribed in paragraph (2) (referred to in this sub11 section as the ‘‘Committee’’). 

12 (2) FUNCTIONS.—The functions referred to in 

13 paragraph (1) for the Committee are as follows: 

14 (A) To carry out such activities as may be 

15 necessary to incorporate the Foundation under 

16 the laws of the State involved, including serving 

17 as incorporators for the Foundation. Such ac18 tivities shall include ensuring that the articles 

19 of incorporation for the Foundation require 

20 that the Foundation be established and oper21 ated in accordance with the applicable provi22 sions of this title (or any successor to this title), 

23 including such provisions as may be in effect 

24 pursuant to amendments enacted after the date 

25 of enactment of this Act. 
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1 (B) To ensure that the Foundation quali2 fies for and maintains the status described in 

3 subsection (f)(3) (regarding taxation). 

4 (C) To establish the general policies and 

5 initial bylaws of the Foundation, which bylaws 

6 shall include the bylaws described in subsections 

7 (f)(3) and (g)(1). 

8 (D) To provide for the initial operation of 

9 the Foundation, including providing for quar10 ters, equipment, and staff. 

11 (E) To appoint the initial members of the 

12 Board in accordance with the requirements es13 tablished in subsection (g)(2)(A) for the com14 position of the Board, and in accordance with 

15 such other qualifications as the Committee may 

16 determine to be appropriate regarding such 

17 composition. Of the members so appointed— 

18 (i) 2 shall be appointed to serve for a 

19 term of 3 years; 

20 (ii) 2 shall be appointed to serve for 

21 a term of 4 years; and 

22 (iii) 3 shall be appointed to serve for 

23 a term of 5 years. 

24 (3) COMPLETION OF FUNCTIONS OF COM25 MITTEE; INITIAL MEETING OF BOARD.— 
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•S 2551 IS 

1 (A) COMPLETION OF FUNCTIONS.—The 

2 Committee shall complete the functions re3 quired in paragraph (1) not later than Sep4 tember 30, 2007. The Committee shall termi5 nate upon the expiration of the 30-day period 

6 beginning on the date on which the Secretary 

7 determines that the functions have been com8 pleted. 

9 (B) INITIAL MEETING.—The initial meet10 ing of the Board shall be held not later than 

11 November 1, 2007. 

12 (4) COMPOSITION.—The Committee shall be 

13 composed of 5 members, each of whom shall be a 

14 voting member. Of the members of the Committee— 

15 (A) no fewer than 2 of the members shall 

16 have expertise in children’s health, nutrition, 

17 and physical activity; and 

18 (B) no fewer than 2 of the members shall 

19 have broad, general experience in nonprofit pri20 vate organizations (without regard to whether 

21 the individuals have experience in children’s 

22 health, nutrition, and physical activity). 

23 (5) CHAIRPERSON.—The Committee shall, from 

24 among the members of the Committee, designate an 
30 

•S 2551 IS 

1 individual to serve as the Chairperson of the Com2 mittee. 

3 (6) TERMS; VACANCIES.—The term of members 

4 of the Committee shall be for the duration of the 

5 Committee. A vacancy in the membership of the 

6 Committee shall not affect the power of the Com7 mittee to carry out the duties of the Committee. If 

8 a member of the Committee does not serve the full 

9 term, the individual appointed by the Secretary to 

10 fill the resulting vacancy shall be appointed for the 

11 remainder of the term of the predecessor of the indi12 vidual. 

13 (7) COMPENSATION.—Members of the Com14 mittee may not receive compensation for service on 

15 the Committee. Members of the Committee may be 

16 reimbursed for travel, subsistence, and other nec17 essary expenses incurred in carrying out the duties 

18 of the Committee. 

19 (8) COMMITTEE SUPPORT.—The Secretary 

20 may, from amounts available to the Secretary for 

21 the general administration of the Department, pro22 vide staff and financial support to assist the Com23 mittee with carrying out the functions described in 

24 paragraph (2). In providing such staff and support, 
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•S 2551 IS 

1 the Director may both detail employees and contract 

2 for assistance. 

3 (9) GRANT FOR ESTABLISHMENT OF COM4 MITTEE.— 

5 (A) IN GENERAL.—With respect to a grant 

6 under paragraph (1)(A)(i) of subsection (j) for 

7 fiscal year 2005, an entity described in this 

8 paragraph is a private nonprofit entity with sig9 nificant experience in children’s health, nutri10 tion, and physical activity. Not later than 180 

11 days after the date of enactment of this Act, 

12 the Secretary shall make the grant to such an 

13 entity (subject to the availability of funds under 

14 paragraph (2) of such subsection). 

15 (B) CONDITIONS.—The grant referred to 

16 in subparagraph (A) may be made to an entity 

17 only if the entity agrees that— 

18 (i) the entity will establish a com19 mittee that is composed in accordance with 

20 paragraph (4); and 

21 (ii) the entity will not select an indi22 vidual for membership on the Committee 

23 unless the individual agrees that the Com24 mittee will operate in accordance with each 
32 

•S 2551 IS 

1 of the provisions of this subsection that re2 late to the operation of the Committee. 

3 (C) AGREEMENT.—The Secretary may 

4 make a grant referred to in subparagraph (A) 

5 only if the applicant for the grant makes an 

6 agreement that the grant will not be expended 

7 for any purpose other than carrying out sub8 paragraph (B). Such a grant may be made only 

9 if an application for the grant is submitted to 

10 the Secretary containing such agreement, and 

11 the application is in such form, is made in such 

12 manner, and contains such other agreements 

13 and such assurances and information as the 

14 Secretary determines to be necessary to carry 

15 out this paragraph. 

Æ