To establish a National Foundation on Physical Fitness and Sports to carry out activities to support and supplement the mission of the President's Council on Physical Fitness and Sports.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Foundation on Physical 
Fitness and Sports Establishment Act''.

SEC. 2. ESTABLISHMENT AND PURPOSE OF FOUNDATION.

    (a) Establishment.--There is established the National Foundation on 
Physical Fitness and Sports (hereinafter in this Act referred to as the 
``Foundation''). The Foundation is a charitable and nonprofit 
corporation and is not an agency or establishment of the United States.
    (b) Purposes.--The purposes of the Foundation are--
            (1) in conjunction with the President's Council on Physical 
        Fitness and Sports, to 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) to encourage and promote the participation by private 
        organizations in the activities referred to in subsection 
        (b)(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 deduction of the administrative 
expenses of the Foundation, the balance of any contributions received 
for the activities referred to in subsection (b), to the United States 
Public Health Service Gift Fund pursuant to section 2701 of the Public 
Health Service Act (42 U.S.C. 300aaa) for expenditure pursuant to the 
provisions of that section and consistent 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 11 members each of whom shall be 
a United States citizen and--
            (1) 4 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
            (2) 7 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 participation in programs of exercise, 
sports, and similar activities. 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 Institute, 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 employment or other law.
    (b) Appointments.--Within 90 days from the date of enactment of 
this Act, the members of the Board will be appointed. Three 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, 1 by the President Pro 
Tempore of the Senate, 2 by the Speaker of the House of 
Representatives, 1 by the majority leader of the House of 
Representatives, 1 by the minority leader of the House of 
Representatives.
    (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 
replaced. 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 expenses incurred by them in the performance 
of the duties of the Foundation, subject to the same limitations on 
reimbursement 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 appointed until the 
        Foundation has sufficient funds to pay them 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.
            (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 experienced 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 subsection (i)) personally or 
        substantially participate in the consideration or determination 
        by the Foundation 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 individual, 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 individual 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 consistent with the 
        purposes of the Foundation and the provision of this Act; and
            (3) undertaking such other acts as may be necessary 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, solicitation 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 several States, 
        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 business 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 section 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 accept, 
        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, retain or 
        otherwise dispose of any property or income therefrom;
            (4) to sue and be sued, and complain and defend itself in 
        any court of competent jurisdiction, except for gross 
        negligence;
            (5) to enter into contracts or other arrangements 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 preservation, conservation, 
protection, or enhancement by and for the public of natural, scenic, 
historic, 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 Foundation 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, athletic 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, depending 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 Physical Fitness and Sports and the Foundation as well as 
any trademark, seal, symbol, insignia, or emblem of the President'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 Foundation.

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 section 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 RELIEF.

    (a) Audits.--For purposes of the Act entitled ``An Act for audit of 
accounts of private corporations established under Federal law'', 
approved August 30, 1964 (Public Law 88-504, 36 U.S.C. 1101-1103) the 
Foundation shall be treated as a private corporation under Federal 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 practicable 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, expenditures, and investments.
    (c) Relief With Respect to Certain Foundation 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 Columbia for such equitable 
relief as may be necessary or appropriate.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    For fiscal year 2011, there are authorized to be appropriated such 
sums as may be necessary, to be made available to the Foundation for 
organizational costs.

Summary: National Foundation on Physical Fitness and Sports Establishment Act - Establishes the National Foundation on Physical Fitness and Sports as a charitable, nonprofit corporation to promote participation by private organizations in the activities of the President's Council on Physical Fitness and Sports. Subjects any person who uses the Council's or Foundation's official seal or any trademark, trade name, sign, symbol, or insignia falsely representing association with, or authorization by, the Council or Foundation for the purpose of trade, to induce the sale of any goods or services, or to promote any theatrical exhibition, athletic performance, or competition without the Foundation's consent to a civil action for remedies provided in the Trademark Act of 1946. Allows the Foundation, in conjunction with the Council, to authorize contributors and suppliers of goods or services to use such trade name, trademark, seal, symbol, insignia, or emblem in advertising under specified conditions.