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 Founda-
tion to carry out activities to support and supplement
the mission of the President’s Council on Physical Fit-
ness and Sports, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Physical Fit-
ness and Sports Foundation Establishment Act’’.
SEC. 2. ESTABLISHMENT AND PURPOSE OF FOUNDATION.
(a) ESTABLISHMENT.—There is established the Na-
tional Physical Fitness and Sports Foundation (herein-
after in this Act referred to as the ‘‘Foundation’’). The
Foundation shall be a charitable and not-for-profit cor-
poration and shall not be an agency or establishment of
the United States.
(b) PURPOSES.—It is the purpose of the Foundation
to—
(1) in conjunction with the President’s Council
on Physical Fitness and Sports, develop a list and
description of programs, events and other activities
which would further the goals outlined in Executive
Order 12345 and with respect to which combined
private and governmental efforts would be beneficial;
and
(2) encourage and promote the participation by
private organizations in the activities referred to in
paragraph (1) and to encourage and promote private
gifts of money and other property to support those
activities.
(c) DISPOSITION OF MONEY AND PROPERTY.—At
least annually the Foundation shall transfer, after the de-
duction of the administrative expenses of the Foundation,
the balance of any contributions received for the activities
referred to in subsection (b), to the Public Health Service
Gift Fund pursuant to section 231 of the Public Health
Service Act (42 U.S.C. 238) for expenditure pursuant to
the provisions of that section and consistent with the pur-
poses for which the funds were donated.
SEC. 3. BOARD OF DIRECTORS OF THE FOUNDATION.
(a) ESTABLISHMENT AND MEMBERSHIP.—
(1) IN GENERAL.—The Foundation shall have a
governing Board of Directors (hereinafter referred
to in this Act as the ‘‘Board’’), which shall consist
of nine Directors, to be appointed not later than 90
days after the date of the enactment of this Act,
each of whom shall be a United States citizen and—
(A) three of whom must be knowledgeable
or experienced in one or more fields directly
connected with physical fitness, sports, or the
relationship between health status and physical
exercise; and
(B) six 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 (one of
whom shall be a representative of the United
States Olympic Committee).
(d) QUORUM.—A majority of the sitting members of
the Board shall constitute a quorum for the transaction
of business.
(e) MEETINGS.—The Board shall meet at the call of
the Chairperson, but in no event less than once each year.
If a Director misses three consecutive regularly scheduled
meetings, that individual may be removed from the Board
and the vacancy filled in accordance with subsection
(b)(2).
(f) REIMBURSEMENT OF EXPENSES.—The members
of the Board shall serve without pay. The members of the
Board shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for employees
of agencies under subchapter I of chapter 57 of title 5,
United States Code, while away from their homes or regu-
lar places of business in the performance of services for
the Board.
(g) GENERAL POWERS.—
(1) ORGANIZATION.—The Board may complete
the organization of the Foundation by—
(A) appointing officers and employees;
(B) adopting a constitution and bylaws
consistent with the purposes of the Foundation
and the provisions of this Act; and
(C) undertaking such other acts as may be
necessary to carry out the provisions of this
Act.
In establishing bylaws under this paragraph, the
Board shall provide for policies with regard to finan-
cial conflicts of interest and ethical standards for the
acceptance, solicitation, and disposition of donations
and grants to the Foundation.
(2) LIMITATIONS ON OFFICERS AND EMPLOY-
EES.—The following limitations apply with respect
to the appointment of officers and employees of the
Foundation:
(A) Officers and employees may not be ap-
pointed until the Foundation has sufficient
funds to compensate such individuals for their
service. No individual so appointed may receive
pay in excess of the annual rate of basic pay in
effect for Executive Level V in the Federal
service.
(B) The first officer or employee appointed
by the Board shall be the secretary of the
Board who—
(i) shall serve, at the direction of the
Board, as its chief operating officer; and
(ii) shall be knowledgeable and experi-
enced in matters relating to physical fit-
ness and sports.
(C) No Public Health Service employee nor
the spouse or dependent relative of such an em-
ployee may serve as an officer or member of the
Board of Directors or as an employee of the
Foundation.
(D) Any individual who is an officer, em-
ployee, or member of the Board of the Founda-
tion may not (in accordance with the policies
developed under paragraph (1)(B)) personally
or substantially participate in the consideration
or determination by the Foundation of any mat-
ter 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 of 1978) of the
individual, of any business organization or other
entity, or of which the individual is an officer
or employee, or is negotiating for employment,
or in which the individual has any other finan-
cial interest.
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 States, territories, and possessions of the Unit-
ed States;
(3) shall locate 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 the purposes under sec-
tion 2, 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, among other things, easements or
other rights for preservation, conservation, protection, or
enhancement by and for the public of natural, scenic, his-
toric, scientific, educational, inspirational, or recreational
resources. A gift, devise, 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 interest 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, to induce the sale of any goods or serv-
ices, or to promote any theatrical exhibition, athletic per-
formance, 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 the name ‘‘President’s Council on
Physical Fitness and Sports’’;
(2) the official seal of the Foundation; and
(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 for in the Act of July 5, 1946 (60
Stat. 427; commonly 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