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                                                       Calendar No. 550
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-340
_______________________________________________________________________


 
   NATIONAL PHYSICAL FITNESS AND SPORTS FOUNDATION ESTABLISHMENT ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1311



                                     

                 July 31, 1996.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred fourth congress
                             second session

  LARRY PRESSLER, South Dakota, 
             Chairman
ERNEST F. HOLLINGS, South Carolina   TED STEVENS, Alaska
DANIEL K. INOUYE, Hawaii             JOHN McCAIN, Arizona
WENDELL H. FORD, Kentucky            CONRAD BURNS, Montana
J. JAMES EXON, Nebraska              SLADE GORTON, Washington
JOHN D. ROCKEFELLER IV, West VirginiaTRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
JOHN B. BREAUX, Louisiana            OLYMPIA J. SNOWE, Maine
RICHARD H. BRYAN, Nevada             JOHN ASHCROFT, Missouri
BYRON L. DORGAN, North Dakota        BILL FRIST, Tennessee
RON WYDEN, Oregon                    SPENCER ABRAHAM, Michigan
  Patric G. Link, Chief of Staff
Kevin G. Curtin, Democratic Chief 
    Counsel and Staff Director


                                                       Calendar No. 550
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-340
_______________________________________________________________________


   NATIONAL PHYSICAL FITNESS AND SPORTS FOUNDATION ESTABLISHMENT ACT

                                _______
                                

                 July 31, 1996.--Ordered to be printed

_______________________________________________________________________


      Mr. Pressler, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1311]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1311) ``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,'' having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                          purpose of the bill

  The bill would establish a not-for-profit foundation to raise 
funds from the private sector to support the activities of the 
President's Council on Physical Fitness.

                          background and needs

  The President's Council on Physical Fitness (President's 
Council) advises the President and the Secretary of Health and 
Human Services on the enhancement of ``opportunities for 
participation in physical fitness and sports activities'' and 
``on State, local, and private actions to extend and improve 
physical activity programs and services'' (Executive Order 
12345 of February 2, 1982). Physical fitness and sports 
activities are widely recognized as an essential activity for 
fostering and maintaining good health.
  The President's Council has been supported by appropriations 
of federal funds but future appropriations are unlikely. This 
bill would create a not-for-profit corporation called the 
National Physical Fitness and Sports Foundation to raise 
private funds to support the activities of the President's 
Council.

                          legislative history

  Senators Campbell and Bradley introduced S. 1311 on October 
11, 1995. On June 6, 1996, the Committee on Commerce, Science, 
and Transportation considered S. 1311 in open Executive Session 
and ordered the bill reported without objection and without 
amendment.

                      Summary of Major Provisions

  The bill would create the National Physical Fitness and 
Sports Foundation (Foundation). The Foundation would be a not-
for-profit corporation and would not be an agency or 
establishment of the United States Government. The Foundation's 
purpose would be to raise private funds to support the 
activities of the President's Council.
  The bill establishes a Board of Directors (Board) to govern 
the Foundation's activities. The Board would have nine 
Directors: three appointed by the Secretary of Health and Human 
Services, two by the Majority Leader of the Senate, two by the 
Speaker of the House, and one by each of the minority leaders 
of the Senate and House of Representatives. The bill requires 
that one of the Board members be a representative of the U.S. 
Olympic Committee. The bill permits the Board to organize the 
Foundation by hiring officers and employees, and by adopting a 
constitution and bylaws.
  To foster the Foundation's fund-raising efforts, the bill 
would grant the Foundation trademark rights to the Foundation's 
seal and the seal of the President's Council. The Foundation 
would be permitted to authorize the use of these trademarks in 
exchange for contributions.

                            estimated costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and Section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 28, 1996.
Hon. Larry Pressler,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed S. 1311, the National Fitness and Sports Foundation 
Establishment Act, as ordered reported by the Senate Committee 
on Commerce, Science, and Transportation on June 6, 1996. The 
proposed foundation would have no net budgetary impact over 
time, but creating it would allow for lower appropriations for 
the President's Council on Physical Fitness and Sports, 
potentially saving about $1 million annually beginning in 
fiscal year 1998.
    S. 1311 would establish a federally chartered, nonprofit 
corporation, the National Physical Fitness and Sports 
Foundation, to assist the President's Council on Physical 
Fitness and Sports in planning, fundraising, and promoting 
physical fitness and sports. A board of nine directors, each 
appointed for a six-year term, would govern the foundation. The 
bill would direct the Secretary of the Department of Health and 
Human Services (HHS) to appoint three members, the Majority 
Leader of the Senate to appoint two members, the Minority 
Leader of the Senate to appoint one member, the Speaker of the 
House to appoint two members, and the Minority Leader of the 
House to appoint one member. Income to the foundation would be 
derived entirely from private donations.
    The bill would require the foundation to deposit any excess 
funds into a special fund at the United States Treasury, which 
would then be available for use by HSS. Because the foundation 
would be created by the government, its board would be 
appointed by the government, and it would raise funds for 
spending by the government, CBO concludes that it would be a 
governmental entity. Hence, all of the foundation's income and 
spending should be recorded in the federal budget. Donations to 
the foundations should be recorded as governmental receipts, 
and spending by the foundation should be recorded as federal 
outlays. The foundation's spending, along with that of HHS, 
would not be subject to appropriations action. Hence, pay-as-
you-go procedures would apply to this bill.
    CBO expects the foundation would eventually raise enough 
donations to cover not only its own expenses, but also those of 
the President's Council on Physical Fitness and Sports--an 
entity within HHS. The council received an appropriation of $1 
million for fiscal year 1996. CBO estimates that enacting S. 
1311 would increase federal receipts by less than $500,000 in 
fiscal year 1997 and by about $2 million annually thereafter. 
We expect that the government would spend all donations 
collected, resulting in no net budgetary impact for the 
foundation. The estimated pay-as-you-go impact is as follows:

                 [By fiscal year in millions of dollars]                
------------------------------------------------------------------------
                                       1996         1997         1998   
------------------------------------------------------------------------
Change in outlays................            0            0            2
Change in receipts...............            0            0            2
------------------------------------------------------------------------

    By funding the President's Council on Physical Fitness and 
Sports through private donations. S. 1311 would eliminate the 
need for future appropriations to the council. Relative to the 
1996 appropriations level, the potential discretionary savings 
would be $1 million a year beginning in fiscal year 1998. (CBO 
expects that the council would receive funding in the fiscal 
year 1997 appropriations bill; the House Committee on 
Appropriations has recommended $1 million for the council for 
next fiscal year.)
    S. 1311 contains no intergovernmental or private-sector 
mandates as defined by Public Law 104-4, and would not have a 
direct impact on the budgets of state, local or tribal 
governments.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                         June E. O'Neill, Director.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported.
    This legislation would simply create a not-for-profit 
Foundation to raise funds from private sources to support the 
activities of the President's Council on Physical Fitness. To 
foster those fund raising efforts the Foundation would be given 
certain intellectual property rights. As the legislation makes 
no programmatic changes concerning the President's Council on 
Physical Fitness and its activities, it will have no effect on 
the number of individuals regulated or on the personal privacy 
of regulated individuals. The legislation should not have any 
significant economic impact and it will not create any 
paperwork requirements.

                      Section-by-section Analysis

Section 1. Short title

    This section provides that the bill may be cited as the 
``National Physical Fitness and Sports Foundation Establishment 
Act''.

Section 2. Establishment and purpose of Foundation

    This section would establish the Foundation as a 
charitable, nonprofit corporation to promote the contribution 
of private gifts to support the activities of the President's 
Council on Physical Fitness. At least annually, after deduction 
of administrative expenses, the Foundation would transfer the 
balance of any contributions to the Public Health Service Gift 
Fund for expenditure consistent with the purposes for which the 
funds were donated.

Section 3. Board of Directors of the Foundation

    Section 3 would establish the Foundation's Board of 
Directors, provide for the appointment of directors and set 
their term of office. The section also provides for the 
election of a Chairperson of the Board. The Board of Directors 
would be given the power to organize the Foundation by 
appointing officers and employees, by adopting a constitution 
and bylaws, and by undertaking other acts necessary to fulfill 
the Foundation's mission. This section would require the 
members of the Board to serve without pay but would permit 
reimbursement for certain expenses.

Section 4. Rights and obligations of the Foundation

    In addition to establishing the basic powers of the 
Foundation, this section provides that the Foundation shall 
have an official seal to be selected by the Board.

Section 5. Protection and uses of trademarks and trade names

    This section would provide the Foundation with certain 
intellectual property rights that it may use to facilitate the 
contribution of funds or the supply of goods or services. The 
Foundation could, for example, permit the use of its official 
seal, or the official seal of the President's Council, in 
exchange for contributions to the Foundation.

Section 6. Volunteer status

    Section 6 would permit the Foundation to utilize the 
services of volunteers.

Section 7. Audit, report requirements, and petition of Attorney General 
        for equitable relief

    This section would provide for audits of the Foundation and 
require the Foundation to report to Congress and the Secretary 
of Health and Human Services, at the end of each fiscal year, 
on the Foundation's proceedings and activities. This section 
would permit the Attorney General to seek equitable relief if 
the Foundation acts in a manner inconsistent with its 
established purpose or if the Foundation refuses to discharge 
its obligations under the legislation.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
bill as reported would make no change to existing law.