ture pursuant to the provisions of that section and consist-
ent with the purposes for which the funds were donated.
SEC. 3. BOARD OF DIRECTORS OF THE FOUNDATION.
(a) 
ESTABLISHMENT
AND
MEMBERSHIP.—The
Foundation shall have a governing Board of Directors
(hereinafter referred to in this Act as the ‘‘Board’’), which
shall consist of 9 members each of whom shall be a United
States citizen and—
(1) 3 of whom must be knowledgeable or experi-
enced in one or more fields directly connected with
physical fitness, sports, or the relationship between
health status and physical exercise; and
(2) 6 of whom must be leaders in the private
sector with a strong interest in physical fitness,
sports, or the relationship between health status and
physical exercise.
The membership of the Board, to the extent practicable,
shall represent diverse professional specialties relating to
the achievement of physical fitness through regular par-
ticipation in programs of exercise, sports, and similar ac-
tivities. The Assistant Secretary for Health, the Executive
Director of the President’s Council on Physical Fitness
and Sports, the Director for the National Center for
Chronic Disease Prevention and Health Promotion, the
Director of the National Heart, Lung, and Blood Insti-
tute, and the Director for the Centers for Disease Control
and Prevention shall be ex officio, nonvoting members of
the Board. Appointment to the Board or its staff shall
not constitute employment by, or the holding of an office
of, the United States for the purposes of any Federal em-
ployment or other law.
(b) APPOINTMENTS.—Within 90 days from the date
of enactment of this Act, the members of the Board will
be appointed. 3 members of the Board will be appointed
by the Secretary (hereinafter referred to in this Act as
the ‘‘Secretary’’), 2 by the Majority Leader of the Senate,
1 by the Minority Leader of the Senate, 2 by the Speaker
of the House of Representatives, 1 by the Minority Leader
of the House of Representative.
(c) TERMS.—The members of the Board shall serve
for a term of 6 years. A vacancy on the Board shall be
filled within 60 days of the vacancy in the same manner
in which the original appointment was made and shall be
for the balance of the term of the individual who was re-
placed. No individual may serve more than 2 consecutive
terms as a member.
(d) CHAIRMAN.—The Chairman shall be elected by
the Board from its members for a 2 year term and will
not be limited in terms or service.
(e) QUORUM.—A majority of the current membership
of the Board shall constitute a quorum for the transaction
of business.
(f) MEETINGS.—The Board shall meet at the call of
the Chairman at least once a year. If a member misses
3 consecutive regularly scheduled meetings, that member
may be removed from the Board and the vacancy filled
in accordance with subsection (c).
(g) REIMBURSEMENT OF EXPENSES.—Members of
the Board shall serve without pay, but may be reimbursed
for the actual and necessary traveling and subsistence ex-
penses incurred by them in the performance of the duties
of the Foundation, subject to the same limitations on re-
imbursement that are imposed upon employees of Federal
agencies.
(h) LIMITATIONS.—The following limitations apply
with respect to the appointment of officers and employees
of the Foundation:
(1) Officers and employees may not be ap-
pointed until the Foundation has sufficient funds to
pay them for their service. No individual so ap-
pointed may receive pay in excess of the annual rate
of basic pay in effect for Executive Level V in the
Federal service.
(2) The first officer or employee appointed by
the Board shall be the Secretary of the Board who
shall serve, at the direction of the Board, as its chief
operating officer and shall be knowledgeable and ex-
perienced in matters relating to physical fitness and
sports.
(3) No Public Health Service employee nor the
spouse or dependent relative of such an employee
may serve as an officer or member of the Board of
Directors or as an employee of the Foundation.
(4) Any individual who is an officer, employee,
or member of the Board of the Foundation may not
(in accordance with the policies developed under sub-
section (i)) personally or substantially participate in
the consideration or determination by the Founda-
tion of any matter that would directly or predictably
affect any financial interest of the individual or a
relative (as such term is defined in section 109(16)
of the Ethics in Government Act, 1978) of the indi-
vidual, of any business organization, or other entity,
or of which the individual is an officer or employee,
is negotiating for employment, or in which the indi-
vidual has any other financial interest.
(i) GENERAL POWERS.—The Board may complete
the organization of the Foundation by—
(1) appointing officers and employees;
(2) adopting a constitution and bylaws consist-
ent with the purposes of the Foundation and the
provision of this Act; and
(3) undertaking such other acts as may be nec-
essary to carry out the provisions of this Act.
In establishing bylaws under this subsection, the Board
shall provide for policies with regard to financial conflicts
of interest and ethical standards for the acceptance, solici-
tation and disposition of donations and grants to the
Foundation.
SEC. 4. RIGHTS AND OBLIGATIONS OF THE FOUNDATION.
(a) IN GENERAL.—The Foundation—
(1) shall have perpetual succession;
(2) may conduct business throughout the sev-
eral State, territories, and possessions of the United
States;
(3) shall have its principal offices in or near the
District of Columbia; and
(4) shall at all times maintain a designated
agent authorized to accept service of process for the
Foundation.
The serving of notice to, or service of process upon, the
agent required under paragraph (4), or mailed to the busi-
ness address of such agent, shall be deemed as service
upon or notice to the Foundation.
(b) SEAL.—The Foundation shall have an official seal
selected by the Board which shall be judicially noticed.
(c) POWERS.—To carry out its purposes under sec-
tion 2, and subject to the specific provisions thereof, the
Foundation shall have the usual powers of a corporation
acting as a trustee in the District of Columbia, including
the power—
(1) except as otherwise provided herein, to ac-
cept, receive, solicit, hold, administer and use any
gift, devise, or bequest, either absolutely or in trust,
of real or personal property or any income therefrom
or other interest therein;
(2) to acquire by purchase or exchange any real
or personal property or interest therein;
(3) unless otherwise required by the instrument
of transfer, to sell, donate, lease, invest, reinvest, re-
tain or otherwise dispose of any property or income
therefrom.
(4) to sue and be sued, and complain and de-
fend itself in any court of competent jurisdiction, ex-
cept for gross negligence;
(5) to enter into contracts or other arrange-
ments with public agencies and private organizations
and persons and to make such payments as may be
necessary to carry out its functions; and
(6) to do any and all acts necessary and proper
to carry out the purposes of the Foundation.
For purposes of this Act, an interest in real property shall
be treated as including easements or other rights for pres-
ervation, conservation, protection, or enhancement by and
for the public of natural, scenic, historic, scientific, edu-
cational inspirational or recreational resources. A gift, de-
vise, or bequest may be accepted by the Foundation even
though it is encumbered, restricted, or subject to beneficial
interests of private persons if any current or future inter-
est therein is for the benefit of the Foundation.
SEC. 5. PROTECTION AND USES OF TRADEMARKS AND
TRADE NAMES
(a) PROTECTION.—Without the consent of the Foun-
dation in conjunction with the President’s Council on
Physical Fitness and Sports, any person who uses for the
purpose of trade, uses to induce the sale of any goods or
services, or uses to promote any theatrical exhibition, ath-
letic performance or competition—
(1) the official seal of the President’s Council
on Physical Fitness and Sports consisting of the
eagle holding an olive branch and arrows with shield
breast encircled by name ‘‘President’s Council on
Physical Fitness and Sports’’ and consisting, de-
pending upon placement, of diagonal stripes;
(2) the official seal of the Foundation; or
(3) any trademark, trade name, sign, symbol,
or insignia falsely representing association with or
authorization by the President’s Council on Physical
Fitness and Sports or the Foundation;
shall be subject in a civil action by the Foundation for
the remedies provided in the Act of July 9, 1946 (60 Stat.
427; popularly known as the Trademark Act of 1946).
(b) USES.—The Foundation, in conjunction with the
President’s Council on Physical Fitness and Sports, may
authorize contributors and suppliers of goods or services
to use the trade name or the President’s Council on Phys-
ical Fitness and Sports and the Foundation as well as any
trademark, seal, symbol, insignia, or emblem of the Presi-
dent’s Council on Physical Fitness and Sports or the
Foundation in advertising that the contributors, goods, or
services when donated, supplied, or furnished to or for the
use of, or approved, selected, or used by the President’s
Council on Physical Fitness and Sports or the Founda-
tion.
SEC. 6. VOLUNTEER STATUS.
The Foundation may accept, without regard to the
civil service classification laws, rules, or regulations, the
services of volunteers in the performance of the functions
authorized herein, in the manner provided for under sec-
tion 7(c) of the Fish and Wildlife Act of 1956 (16 U.S.C.
742f(c)).
SEC. 7. AUDIT, REPORT REQUIREMENTS, AND PETITION OF
ATTORNEY GENERAL FOR EQUITABLE RE-
LIEF.
(a) AUDITS.—For purposes of the Act entitled ‘‘An
Act for audit of accounts of private corporations estab-
lished under Federal law’’, approved August 30, 1964
(Public Law 88–504, 36 U.S.C. 1101–1103) the Founda-
tion shall be treated as a private corporation under Fed-
eral law. The Inspector General of the Department of
Health and Human Services and the Comptroller General
of the United States shall have access to the financial and
other records of the Foundation, upon reasonable notice.
(b) REPORT.—The Foundation shall, as soon as prac-
ticable after the end of each fiscal year, transmit to the
Secretary of Health and Human Services and to Congress
a report of its proceedings and activities during such year,
including a full and complete statement of its receipts, ex-
penditures, and investments.
(c) RELIEF WITH RESPECT TO CERTAIN FOUNDA-
TION ACTS OR FAILURE TO ACT.—If the Foundation—
(1) engages in, or threatens to engage in, any
act, practice or policy that is inconsistent with its
purposes set forth in section 2(b); or
(2) refuses, fails, or neglects to discharge its
obligations under this Act, or threaten to do so;
the Attorney General of the United States may petition
in the United States District Court for the District of Co-
lumbia for such equitable relief as may be necessary or
appropriate.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
For the (year, periodll) beginning on October 1,
19ll, there are authorized to be appropriated [ll]
to be made available to the Foundation for organizational
costs.
Æ