108th CONGRESS
2d Session
H. R. 3825
To amend title 36, United States Code, to amend the Federal charter
of the United States Olympic Committee, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 24, 2004
Mr. STEARNS (for himself, Mr. STUPAK, and Ms. SCHAKOWSKY) introduced the
following bill; which was referred to the Committee on the Judiciary, and
in addition to the Committee on Energy and Commerce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend title 36, United States Code, to amend the Federal charter
of the United States Olympic Committee, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `United States Olympic Committee Reform Act'.
SEC. 2. DEFINITIONS.
Section 220501(b) of title 36, United States Code, is amended--
(1) by redesignating paragraphs (5) through (8) as paragraphs (6) through
(9), respectively; and
(2) by inserting after paragraph (4) the following:
`(5) `independent director' means an independent director, as defined by
the bylaws of the corporation, who, at minimum--
`(A) has not been an officer or director of the Executive Committee of
the corporation, during the 3-year period prior to appointment as an independent
director;
`(B) has not been an officer or a member of the Athlete's Advisory Council,
the National Governing Bodies Council, or of the International Olympic
Committee, during the 3-year period prior to appointment as an independent
director;
`(C) has not, during the 3-year period prior to appointment as an independent
director, received any compensation from, and does not have a personal
service contract with, the corporation, any United States Olympic Entity,
any International Olympic entity, or a member of the corporation's senior
management;
`(D) has not, during the 3-year period prior to appointment as an independent
director, had such a close affiliation with a company or firm that is
counsel, auditor, advisor, paid consultant of, or has a material business
relationship with, the corporation, any United States Olympic entity,
any International Olympic entity, or a member of the corporation's senior
management, that in the judgment of the Nominating and Governance Committee
would adversely affect the director's ability to represent the interests
of the United State public in the activities of the corporation;
`(E) has no relationship with the corporation, any United States Olympic
entity, any International Olympic entity, or a member of the corporation's
senior management that in the judgment of the Nominating and Governance
Committee would adversely affect the director's ability to represent the
interests of the United State public in the activities of the corporation;
and
`(F) is not an immediate family member of any person described in subparagraphs
(A) through (E).'.
SEC. 3. PURPOSES.
Section 220503 of title 36, United States Code, is amended to read as follows:
`Sec. 220503. Purposes
`The purposes of this corporation are--
`(1) to exercise exclusive jurisdiction directly or through constituent
members or committees, over--
`(A) all matters pertaining to the United States participation in the
Olympic Games, the Paralympic Games, and the Pan American Games, including
representation of the United States in such games; and
`(B) the organization of the Olympic Games, the Paralympic Games, and
the Pan American Games when held in the United States;
`(2) to obtain for the United States, directly or by delegation to the appropriate
national governing body or paralympic sports organization, the most competent
amateur representation possible in each event of the Olympic Games, the
Paralympic games, and the Pan American Games;
`(3) to provide for swift resolution of conflicts or disputes involving
amateur athletes, national governing bodies, paralympic sports organizations,
and amateur sports organizations, and protect the opportunity of any amateur
athlete, coach, trainer, manager, administrator, or official to participate
in amateur competition; and
`(4) to encourage and provide assistance to amateur athletic programs and
activities for women and men, athletes with disabilities, and athletes who
are racial and ethnic minorities.'.
SEC. 4. GOVERNANCE.
(a) In General- Chapter 2205 of title 36, United States Code, is amended by
redesignating sections 220505 through 220512 as sections 220506 through 220513,
respectively, and inserting after section 220504 the following new section:
`Sec. 220505. Governance
`(a) In General- Consistent with the provisions of this chapter, the corporation
shall adopt bylaws to establish and maintain provisions with respect to its
governance which shall include the requirements contained in subsections (b)
through (f):
`(1) In general- The corporation shall be governed by a Board of Directors
(in this chapter referred to as the `Board') as follows:
`(A) Elected members- The Board shall be composed of 9 elected members
who shall be nominated by the Nominating and Governance Committee (described
in paragraph (7)(C)). The elected members shall consist of--
`(i) 5 members who shall be independent directors;
`(ii) 2 members who shall be elected from among individuals proposed
by the National Governing Bodies Council; and
`(iii) 2 members who shall be elected from among individuals proposed
by the Athlete's Advisory Council.
`(B) Ex officio members- The Board shall have as ex officio members the
members of the International Olympic Committee (IOC) that are required
by that committee's charter.
`(i) Liaison of the olympic assembly- The liaison of the Olympic Assembly
(described in subsection (d)(3)) shall serve as a nonvoting ex officio
member of the Board.
`(ii) Representation of paralympic sports organization- Unless at least
1 of the elected members under subparagraph (A) is a representative
of a paralympic sports organization, such a representative shall be
appointed by the Nominating and Governance Committee of the Board to
serve as a nonvoting member of the Board.
`(2) Terms- Members of the Board shall serve for appointed terms in accordance
with the bylaws of the corporation. Except as provided in paragraph (6),
no member shall serve on the Board for a period greater than 6 years.
`(3) Qualifications- Each member shall have demonstrated the highest character
and integrity, significant professional success, and a commitment to public
service, and shall have demonstrated by their vocation or experience the
capacity to further the objectives and purposes of the United States Olympic
Committee, and shall have such other specific qualities or expertise as
the Board considers necessary.
`(4) Removal- Members may be removed from the Board only for cause, in accordance
with the bylaws of the corporation.
`(i) Elected members- Each of the 9 elected members described in paragraph
(1)(A) shall have the number of votes equal to the number of ex officio
members described in paragraph (1)(B).
`(ii) Ex officio members- The ex officio members described in paragraph
(1)(B) shall each have 1 vote on all matters on which the Board votes
except--
`(I) the selection of the chair of the Board;
`(II) the election of new members;
`(III) the composition of Board committees; and
`(IV) any matter which presents such members with a conflict of interest.
`(B) Tie votes- A tie vote shall be broken as provided for in the bylaws
of the corporation, in accordance with the following:
`(i) Matters of purely business and governance- On matters related purely
to the business and governance of the corporation, a tie vote of the
Board shall be broken by the majority of the votes cast by the independent
directors described in paragraph (1)(A)(i).
`(ii) Matters related to sport- On matters related to sport and all
matters other than those described in clause (i), a tie vote of the
Board shall be broken by a majority of the votes cast by the members
described in clauses (ii) and (iii) of paragraph (1)(A), and the ex
officio members described in paragraph (1)(B).
`(6) Chair- The Board shall elect 1 of the members to serve as chair of
the Board, who shall serve as chair for a term of 4 years. The chair may
serve an additional 2 years (beyond the term established for the Board in
paragraph (2)) in order to complete his or her 4 year term as chair. The
first chair elected after the date of enactment of the United States Olympic
Committee Reform Act shall be an independent member.
`(7) Committees- In addition to any committees, subcommittees, and task
forces as may be necessary or appropriate and for which sufficient funds
exist, the Board shall establish the following standing committees:
`(A) An Audit Committee, consisting of--
`(i) 3 Board members described in paragraph (1)(A)(i); and
`(ii) 1 Board member described in paragraph (1)(A)(iii).
`(B) An Ethics Committee, consisting of--
`(i) 3 persons who meet the definition of `independent director' in
section 220501(b)(5) and who are not members of the Board;
`(ii) 1 person who meets the definition of `amateur athlete' in section
220501(b)(1) and who is not a member of the Board; and
`(iii) 1 elected member of the Board described in paragraph (1)(A).
`(C) A Nominating and Governance Committee and a Compensation Committee,
each consisting of--
`(i) 3 Board members described in paragraph (1)(A)(i);
`(ii) 1 Board member described in paragraph (1)(A)(ii); and
`(iii) 1 Board member described in paragraph (1)(A)(iii).
`(8) Remuneration and travel expenses- The members of the Board shall not
receive any compensation, fee, salary, or other remuneration for their service
on the Board, but shall be reimbursed for actual and reasonable travel expenses
incurred for attending Board meetings or in furtherance of duties that they
have been requested to perform by the Chair.
`(9) Duties- The Board shall have the following duties:
`(A) To oversee the corporation's business and operations in the United
States and abroad, including all matters relating to financial, commercial,
legal, personnel, and governance.
`(B) To set the policy and direction of the corporation consistent with
the corporation's mission and purposes.
`(C) To establish a Nominating and Governance Committee to provide for
a process for nominating new Board members.
`(D) To elect new Board members from among those persons nominated by
the Nominating and Governance Committee.
`(E) To elect the chair of the Board.
`(F) To select and evaluate the Chief Executive Officer.
`(G) To oversee the bid city process in the United States, and to monitor
the organizing committee of the Olympic Games when the Games are held
in the United States.
`(c) Chief Executive Officer-
`(1) In general- The corporation shall have a chief executive officer who
shall not be a member of the Board of Directors. The chief executive officer
shall be elected by, and report to, the Board, as provided in the bylaws
of the corporation. The chief executive officer shall be responsible, with
Board approval, for filling other key senior management positions as provided
in the bylaws of the corporation.
`(2) Duties- The chief executive officer shall, either directly or by delegation--
`(A) manage all staff functions and the day-to-day affairs and business
operations of the corporation, including relations with international
organizations; and
`(B) implement the mission and policies of the corporation, as determined
by the Board.
`(1) In general- The corporation shall have an Olympic Assembly (in this
chapter referred to as the Assembly) in which all of the constituencies
of the corporation shall be represented. The size and composition of the
Assembly shall be determined by the Board and shall include--
`(A) Olympic athletes and former Olympic athletes;
`(B) representatives of Olympic sports organizations;
`(C) representatives of Pan American sports organizations;
`(D) a representative of an affiliated sports organization;
`(E) representatives of community-based and education-based multisport
organizations;
`(F) representatives of the United States Armed Forces; and
`(G) a representative of a State Olympic organization.
`(2) Terms- Each member of the Assembly shall serve for a term of 4 years,
beginning with the first meeting following a Summer Olympic Games and extending
until the first meeting following the subsequent Summer Olympic Games. There
shall be no limit to the number of terms which a member may serve.
`(3) Liaison- Each Assembly shall elect a liaison from among its members
who shall preside over the annual meetings of the Assembly, and who shall
be limited to serving 1 term of 4 years.
`(4) Role and responsibilities-
`(A) Required activities- The Assembly shall--
`(i) meet annually, at the time of a meeting of the Board of Directors,
to represent the interests of its members; and
`(ii) receive and review reports from the Board concerning sport matters
and the business of the corporation.
`(B) Permitted activities- The Assembly may--
`(i) propose items for consideration by the chair to be included on
the agenda for the Board; and
`(ii) perform other functions as the Board determines to be appropriate.
`(5) Expenses- The Board shall set the budget for the Assembly, which may
pay the actual and reasonable expenses of members of the Assembly to attend
the annual meeting, and any special meetings called by the Board.
`(e) Standards and Compliance Program- The corporation shall maintain a standards
and compliance program that includes, at minimum, the following requirements:
`(1) The development and distribution of written standards of conduct, as
well as written policies, procedures, and protocols that promote the United
States Olympic Committee's commitment to compliance with such standards
and address specific areas of potential infractions of compliance.
`(2) The designation of a compliance or ethics officer at the executive
level who shall report to the Board and shall be charged with the responsibility
for developing, operating, and monitoring the compliance program.
`(3) The development and implementation of regular, effective education
and training programs for all affected United States Olympic Committee employees,
including paid senior management, officers, volunteers, and directors of
a member organization.
`(4) The creation and maintenance of an effective line of communication
between the compliance officer and all United States Olympic Committee employees
and volunteers, including a process, such as a hotline or other reporting
system, to receive complaints, and the adoption of procedures to protect
the anonymity of complainants and to protect complainants from retaliation.
`(5) The use of audits and other risk evaluation techniques to monitor compliance,
identify problem areas, affecting the United States Olympic Committee, its
officers, employees, and volunteers, and assist in the reduction of identified
problems.
`(6) The development of policies and procedures with respect to the investigation
of identified systemic problems, which include direction regarding the prompt
and proper response to detected offenses, such as the initiation of appropriate
corrective action and preventive measures.
`(7) The development of a system to respond to allegations of illegal or
improper activities and the enforcement of appropriate disciplinary action
against United States Olympic Committee employees who have violated internal
compliance policies, applicable statutes, regulations, or other United states
Olympic Committee requirements.
`(f) 10-Year Review- Not later than January 1, 2014, and every 10 years thereafter,
the Board shall appoint an independent commission to study and determine whether
the governance structure of the corporation continues to serve the purpose
for which it was created. Such commission shall transmit to Congress a report
which shall include recommendations for changes to the governance structure
of the corporation.'.
(b) Table of Sections- The table of sections for subchapter I of chapter 2205
of title 36, United States Code, is amended to read as follows:
`SUBCHAPTER I--CORPORATION
`220501. Title and definitions.
`220507. Exclusive right to name, seals, emblems, and badges.
`220509. Headquarters, principle office, and meetings.
`220510. Resolution of disputes.
`220511. Services of process.
`220513. Complete teams.'.
(c) Powers Related to Amateur Athletics and the Olympic, Paralympic, and Pan-American
Games- Section 220506(c) of title 36, United States Code, (as amended by this
Act) is amended--
(1) in the subsection heading by inserting `, Paralympic, and Pan-American'
after `Olympic'; and
(2) in paragraph (3), by inserting `or paralympic sports organization' after
`governing body'.
(1) Continuance of existing board during transition- The individuals serving
as members of the Board of Directors of the United States Olympic Committee
on the date of enactment of this Act shall continue to serve as the Board
until a Board of Directors has been elected under paragraph (2)(B) of this
subsection.
(2) Initial nominating and governance committee-
(A) In general- Until the initial Board of Directors has been elected
and taken office, the Nominating and Governance Committee required by
section 220505(b)(6)(C) of title 36, United States Code, (as amended by
this Act) shall consist of--
(i) 1 individual selected by the Athlete's Advisory Council from among
its members;
(ii) 1 individual selected by the National Governing Bodies' Council
from among its members;
(iii) 1 individual selected by the public-sector directors of the United
States Olympic Committee from among such directors serving on the date
of enactment of this Act;
(iv) 1 individual selected by the Governance and Ethics Task Force established
by the United States Olympic Committee in February, 2003, from among
its members; and
(v) 1 individual selected by the Independent Commission on Reform established
by the United States Olympic Committee in March, 2003, from among its
members, who shall chair the committee.
(B) Election of new board of directors- The Nominating and Governance
Committee established by paragraph (2) shall--
(i) elect an initial Board of Directors who shall serve for the terms
provided in section 220505(b)(2)(C) of title 36, United States Code
(as amended by this Act); and
(ii) elect 1 of the independent members described in section 220505(b)(1)(A)(i)
of that title (as amended by this Act) to serve as chair until the terms
of the members elected under clause (i) have expired.
(C) Eligibility for new board of directors- Members of the initial Nominating
and Governance Committee shall not be eligible to serve on the initial
Board of Directors that has been elected under subparagraph (B), but shall
be eligible for election to subsequent Boards.
SEC. 5. OMBUDSMAN.
Section 220510(b) of title 36, United States Code, (as amended by this Act)
is amended--
(1) in paragraph (1), by striking `corporation' and inserting `Board';
(2) in paragraph (2)(A)(i), by striking `corporation's executive director'
and inserting `Board';
(3) by striking clause (ii) of paragraph (2)(A) and redesignating clause
(iii) of such paragraph as clause (ii);
(4) in clause (ii) of paragraph (2)(A) (as so redesignated), by striking
`corporation's executive committee' and inserting `Board';
(5) in paragraph (2)(B), by striking `corporation' and inserting `Board';
(6) in paragraph (2)(B)(ii), by striking `corporation's executive committee
by either the corporation's executive director or' and inserting `Board';
and
(7) in paragraph (2)(B)(iii), by striking `corporation's executive committee'
and inserting `Board'.
SEC. 6. REPORTING.
(a) Annual Report- Section 220512 of title 36, United States Code, (as amended
by this Act) is amended--
(1) by striking `every fourth' and inserting `each';
(2) by striking `4 years' and inserting `year'; and
(3) in paragraph (2) by striking `such 4-year period' and inserting `the
preceding year'.
(b) Special Report- Notwithstanding any other provision of law, the corporation
shall not be required to submit to Congress any additional report, other than
a report required by section 220512 of title 36, United States Code, (as amended
by this Act) until 2 years after the date of enactment of this Act.
SEC. 7. PROMOTION OF TRAVEL AND TOURISM IN THE UNITED STATES.
(a) In General- The Secretary of Commerce shall make grants to qualifying
State entities to encourage international visitors to travel to and within
the United States for tourism purposes in conjunction with the United States
hosting the Olympic or Pan-American Games. The Secretary may require a State
entity seeking a grant authorized by this section to submit an application
for such grant at such time and in such form and manner as the Secretary may
prescribe.
(b) Qualifying State Entity- As used in this section, the term `qualifying
State entity' means a State or local agency having authority under State or
local law to conduct programs to promote travel and tourism, including State
and local convention and visitor bureaus, multi-State entities governed by
State tourism directors, and multi-jurisdiction entities governed by local
tourism directors.
(c) Support of Other Programs or Costs Prohibited- Amounts appropriated under
subsection (d) shall not be available to--
(1) cover the cost of any Federal, State, or local government program or
marketing activity other than those authorized under this Act;
(2) reimburse the Federal Government for any function performed by an employee
or agent of the Federal Government; or
(3) create any additional full-time equivalent positions within the Federal
Government.
(1) Authorization of appropriations- There is authorized to be appropriated
to the Secretary of Commerce $1,000,000 for any year in which the United
States hosts the Olympic or the Pan-American Games, to remain available
until expended.
(2) Reversion of unobligated amounts- Funds appropriated pursuant to paragraph
(1) that remain unexpended and unobligated at the end of the fiscal year
in which such games are hosted in the United States shall revert to the
Treasury of the United States.
SEC. 8. STUDY OF IMPACT TO INTERSTATE COMMERCE OF HOSTING OLYMPIC GAMES.
(a) Study- The Secretary of Commerce shall conduct a study on the projected
impact on commerce of a United States bid city hosting the Olympic Games.
The study shall include--
(1) a projection of the costs and benefits to the host city and surrounding
region of hosting the Olympic Games;
(2) an analysis of the future economic benefit to be derived from any new
infrastructure resulting from hosting the Olympic Games;
(3) an assessment of the benefits to interstate commerce from preparing
for and hosting the Olympic Games, including new infrastructure, job creation,
travel and tourism, and the marketing of goods and services; and
(4) a comparison of projected benefits of hosting the Olympic Games to the
benefits derived by former United States Olympic host cities.
(b) Report- Not later than 1 year after the date of the enactment of this
Act, the Secretary of Commerce shall transmit to the Committee on Energy and
Commerce of the House of Representatives and the Committee on Commerce, Science,
and Transportation of the Senate a report of the findings of the study required
by this section.
SEC. 9. CONFORMING AND TECHNICAL AMENDMENTS.
Chapter 2205 of title 36, United States Code, (as amended by this Act) is
amended--
(1) in section 220501, by moving paragraph (7) 2 ems to the right;
(2) in section 220504, by striking `constitution and' both places it appears;
(i) in the subsection heading, by striking `Constitution And';
(ii) by striking `constitution and'; and
(iii) by striking `may amend its constitution' and inserting `may amend
its bylaws'; and
(B) in subsection (b)(9), by striking `this Act' and inserting `this chapter';
(C) in subsection (c)(5), by striking `constitution and';
(4) in section 220507(d)--
(A) by moving paragraph (3) 2 ems to the left; and
(B) in paragraph (3)(A), by striking `subsections' and inserting `subsection';
(A) in subsection (a), by striking `constitution and' each place it appears;
(B) in subsection (b)(1)(A)--
(i) by striking `constitution and' both places it appears;
(ii) by striking `a paralympic sports organizations' and inserting `paralympic
sports organizations';
(6) in section 220513, by striking `Corporation' and inserting `corporation';
(7) in section 220521, by striking `subsections (a) or (b)' and inserting
`subsection (a) or (b)';
(8) in section 220522(a)(4)(B), by striking `constitution and'; and
(9) in section 220529, by striking `constitution and' both places it appears.
END
