I

105TH CONGRESS

1ST SESSION H. R. 756

To establish a National Physical Fitness and Sports Foundation to carry

out activities to support and supplement the mission of the President’s

Council on Physical Fitness and Sports, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 13, 1997

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

Committee on Education and the Workforce

A BILL

To establish a National Physical Fitness and Sports Foundation to carry out activities to support and supplement

the mission of the President’s Council on Physical Fitness and Sports, 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 Physical Fit5 ness and Sports Foundation Establishment Act’’.
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1 SEC. 2. ESTABLISHMENT AND PURPOSE OF FOUNDATION.

2 (a) ESTABLISHMENT.—There is established the Na3 tional Physical Fitness and Sports Foundation (herein4 after in this Act referred to as the ‘‘Foundation’’). The

5 Foundation shall be a charitable and not-for-profit cor6 poration and shall not be an agency or establishment of

7 the United States.

8 (b) PURPOSES.—It is the purpose of the Foundation

9 to—

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

11 on Physical Fitness and Sports, develop a list and

12 description of programs, events and other activities

13 which would further the goals outlined in Executive

14 Order 12345 and with respect to which combined

15 private and governmental efforts would be beneficial;

16 and

17 (2) encourage and promote the participation by

18 private organizations in the activities referred to in

19 paragraph (1) and to encourage and promote private

20 gifts of money and other property to support those

21 activities.

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

23 least annually the Foundation shall transfer, after the de24 duction of the administrative expenses of the Foundation,

25 the balance of any contributions received for the activities

26 referred to in subsection (b), to the Public Health Service
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1 Gift Fund pursuant to section 231 of the Public Health

2 Service Act (42 U.S.C. 238) for expenditure pursuant to

3 the provisions of that section and consistent with the pur4 poses for which the funds were donated.

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

6 (a) ESTABLISHMENT AND MEMBERSHIP.—

7 (1) IN GENERAL.—The Foundation shall have a

8 governing Board of Directors (hereinafter referred

9 to in this Act as the ‘‘Board’’), which shall consist

10 of nine Directors, to be appointed not later than 90

11 days after the date of the enactment of this Act,

12 each of whom shall be a United States citizen and—

13 (A) three of whom must be knowledgeable

14 or experienced in one or more fields directly

15 connected with physical fitness, sports, or the

16 relationship between health status and physical

17 exercise; and

18 (B) six of whom must be leaders in the

19 private sector with a strong interest in physical

20 fitness, sports, or the relationship between

21 health status and physical exercise (one of

22 whom shall be a representative of the United

23 States Olympic Committee).
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1 The membership of the Board, to the extent prac2 ticable, shall represent diverse professional special3 ties relating to the achievement of physical fitness

4 through regular participation in programs of exer5 cise, sports, and similar activities.

6 (2) EX OFFICIO MEMBERS.—The Assistant Sec7 retary for Health, the Executive Director of the

8 President’s Council on Physical Fitness and Sports,

9 the Director for the National Center for Chronic

10 Disease Prevention and Health Promotion, the Di11 rector of the National Heart, Lung, and Blood Insti12 tute and the Director for the Centers for Disease

13 Control and Prevention shall serve as ex officio, non14 voting members of the Board.

15 (3) NOT FEDERAL EMPLOYMENT.—Appoint16 ment to the Board or service as a member of the

17 staff of the Board shall not constitute employment

18 by, or the holding of an office of, the United States

19 for the purposes of any Federal employment or other

20 law.

21 (b) APPOINTMENT AND TERMS.—

22 (1) APPOINTMENT.—Of the members of the

23 Board appointed under subsection (a)(1), three shall

24 be appointed by the Secretary of Health and Human

25 Services (hereinafter referred to in this Act as the
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1 ‘‘Secretary’’), two shall be appointed by the majority

2 leader of the Senate, one shall be appointed by the

3 minority leader of the Senate, two shall be appointed

4 by the Speaker of the House of Representatives, and

5 one shall be appointed by the minority leader of the

6 House of Representatives. The three members ap7 pointed by the Secretary shall include the represent8 ative of the United States Olympic Committee.

9 (2) TERMS.—Members appointed to the Board

10 under subsection (a)(1) shall serve for a term of 6

11 years. A vacancy on the Board shall be filled within

12 60 days of the date on which such vacancy occurred

13 in the manner in which the original appointment was

14 made. A member appointed to fill a vacancy shall

15 serve for the balance of the term of the individual

16 who was replaced. No individual may serve more

17 than two consecutive terms as a Director.

18 (c) CHAIRPERSON.—A Chairperson shall be elected

19 by the Board from among its members and serve for a

20 2-year term. The Chairperson shall not be limited in terms

21 or service. The Chairman of the President’s Council on

22 Physical Fitness and Sports shall serve as Chairperson

23 until a Chairperson is elected by the Board.
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1 (d) QUORUM.—A majority of the sitting members of

2 the Board shall constitute a quorum for the transaction

3 of business.

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

5 the Chairperson, but in no event less than once each year.

6 If a Director misses three consecutive regularly scheduled

7 meetings, that individual may be removed from the Board

8 and the vacancy filled in accordance with subsection

9 (b)(2).

10 (f) REIMBURSEMENT OF EXPENSES.—The members

11 of the Board shall serve without pay. The members of the

12 Board shall be allowed travel expenses, including per diem

13 in lieu of subsistence, at rates authorized for employees

14 of agencies under subchapter I of chapter 57 of title 5,

15 United States Code, while away from their homes or regu16 lar places of business in the performance of services for

17 the Board.

18 (g) GENERAL POWERS.—

19 (1) ORGANIZATION.—The Board may complete

20 the organization of the Foundation by—

21 (A) appointing officers and employees;

22 (B) adopting a constitution and bylaws

23 consistent with the purposes of the Foundation

24 and the provisions of this Act; and
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1 (C) undertaking such other acts as may be

2 necessary to carry out the provisions of this

3 Act.

4 In establishing bylaws under this paragraph, the

5 Board shall provide for policies with regard to finan6 cial conflicts of interest and ethical standards for the

7 acceptance, solicitation, and disposition of donations

8 and grants to the Foundation.

9 (2) LIMITATIONS ON OFFICERS AND EMPLOY10 EES.—The following limitations apply with respect

11 to the appointment of officers and employees of the

12 Foundation:

13 (A) Officers and employees may not be ap14 pointed until the Foundation has sufficient

15 funds to compensate such individuals for their

16 service. No individual so appointed may receive

17 pay in excess of the annual rate of basic pay in

18 effect for Executive Level V in the Federal

19 service.

20 (B) The first officer or employee appointed

21 by the Board shall be the secretary of the

22 Board who—

23 (i) shall serve, at the direction of the

24 Board, as its chief operating officer; and
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1 (ii) shall be knowledgeable and experi2 enced in matters relating to physical fit3 ness and sports.

4 (C) No Public Health Service employee nor

5 the spouse or dependent relative of such an em6 ployee may serve as an officer or member of the

7 Board of Directors or as an employee of the

8 Foundation.

9 (D) Any individual who is an officer, em10 ployee, or member of the Board of the Founda11 tion may not (in accordance with the policies

12 developed under paragraph (1)(B)) personally

13 or substantially participate in the consideration

14 or determination by the Foundation of any mat15 ter that would directly or predictably affect any

16 financial interest of the individual or a relative

17 (as such term is defined in section 109(16) of

18 the Ethics in Government Act of 1978) of the

19 individual, of any business organization or other

20 entity, or of which the individual is an officer

21 or employee, or is negotiating for employment,

22 or in which the individual has any other finan23 cial interest.

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

25 (a) IN GENERAL.—The Foundation—
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1 (1) shall have perpetual succession;

2 (2) may conduct business throughout the sev3 eral States, territories, and possessions of the Unit4 ed States;

5 (3) shall locate its principal offices in or near

6 the District of Columbia; and

7 (4) shall at all times maintain a designated

8 agent authorized to accept service of process for the

9 Foundation.

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

11 agent required under paragraph (4), or mailed to the busi12 ness address of such agent, shall be deemed as service

13 upon or notice to the Foundation.

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

15 selected by the Board which shall be judicially noticed.

16 (c) POWERS.—To carry out the purposes under sec17 tion 2, the Foundation shall have the usual powers of a

18 corporation acting as a trustee in the District of Columbia,

19 including the power—

20 (1) except as otherwise provided herein, to ac21 cept, receive, solicit, hold, administer, and use any

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

23 of real or personal property or any income therefrom

24 or other interest therein;
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1 (2) to acquire by purchase or exchange any real

2 or personal property or interest therein;

3 (3) unless otherwise required by the instrument

4 of transfer, to sell, donate, lease, invest, reinvest, re5 tain, or otherwise dispose of any property or income

6 therefrom;

7 (4) to sue and be sued, and complain and de8 fend itself in any court of competent jurisdiction, ex9 cept for gross negligence;

10 (5) to enter into contracts or other arrange11 ments with public agencies and private organizations

12 and persons and to make such payments as may be

13 necessary to carry out its functions; and

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

15 to carry out the purposes of the Foundation.

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

17 be treated as including, among other things, easements or

18 other rights for preservation, conservation, protection, or

19 enhancement by and for the public of natural, scenic, his20 toric, scientific, educational, inspirational, or recreational

21 resources. A gift, devise, or bequest may be accepted by

22 the Foundation even though it is encumbered, restricted,

23 or subject to beneficial interests of private persons if any

24 current or future interest therein is for the benefit of the

25 Foundation.
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1 SEC. 5. PROTECTION AND USES OF TRADEMARKS AND

2 TRADE NAMES.

3 (a) PROTECTION.—Without the consent of the Foun4 dation, in conjunction with the President’s Council on

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

6 purpose of trade, to induce the sale of any goods or serv7 ices, or to promote any theatrical exhibition, athletic per8 formance, or competition—

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

10 on Physical Fitness and Sports consisting of the

11 eagle holding an olive branch and arrows with shield

12 breast encircled by the name ‘‘President’s Council on

13 Physical Fitness and Sports’’;

14 (2) the official seal of the Foundation; and

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

16 or insignia falsely representing association with, or

17 authorization by, the President’s Council on Physical

18 Fitness and Sports or the Foundation;

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

20 the remedies provided for in the Act of July 5, 1946 (60

21 Stat. 427; commonly known as the Trademark Act of

22 1946).

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

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

25 authorize contributors and suppliers of goods or services
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1 to use the trade name of the President’s Council on Phys2 ical Fitness and Sports and the Foundation, as well as

3 any trademark, seal, symbol, insignia, or emblem of the

4 President’s Council on Physical Fitness and Sports or the

5 Foundation, in advertising that the contributions, goods

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

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

8 Council on Physical Fitness and Sports or the Founda9 tion.

10 SEC. 6. VOLUNTEER STATUS.

11 The Foundation may accept, without regard to the

12 civil service classification laws, rules, or regulations, the

13 services of volunteers in the performance of the functions

14 authorized herein, in the same manner as provided for

15 under section 7(c) of the Fish and Wildlife Act of 1956

16 (16 U.S.C. 742f(c)).

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

18 ATTORNEY GENERAL FOR EQUITABLE RE19 LIEF.

20 (a) AUDITS.—For purposes of Public Law 88–504

21 (36 U.S.C. 1101 et seq.), the Foundation shall be treated

22 as a private corporation under Federal law. The Inspector

23 General of the Department of Health and Human Services

24 and the Comptroller General of the United States shall
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1 have access to the financial and other records of the Foun2 dation, upon reasonable notice.

3 (b) REPORT.—The Foundation shall, as soon as prac4 ticable after the end of each fiscal year, transmit to the

5 Secretary and to Congress a report of its proceedings and

6 activities during such year, including a full and complete

7 statement of its receipts, expenditures, and investments.

8 (c) RELIEF WITH RESPECT TO CERTAIN FOUNDA9 TION ACTS OR FAILURE TO ACT.—If the Foundation—

10 (1) engages in, or threatens to engage in, any

11 act, practice, or policy that is inconsistent with the

12 purposes described in section 2(b); or

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

14 obligations under this Act, or threatens to do so;

15 the Attorney General may petition in the United States

16 District Court for the District of Columbia for such equi17 table relief as may be necessary or appropriate.

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