organization or person which seeks to obtain a sanction to conduct international amateur athletic competition in order to ensure that the event is run with sufficient financial backing and in a manner which will provide athletes with proper officiating, records validation, medical attention, personal safety, and protection of eligibility status. The national governing body may refuse to grant a sanction if it determines that the international competition would be detrimental to the best interests of the sport. An amateur sports organization which sets itself up in competition with an existing national governing body could be denied a sanction on this ground if it refuses to seek membership with a national governing body or pursue its appropriate remedies under the dispute section of this bill. The Committee does not feel that any amateur sports organization should be allowed to frustrate the purpose of the vertical structure. Additionally, the Committee believes an NGB could be justified in charging a higher sanctioning fee to a nonmember amateur sports organization for the conduct of such events. This higher fee for a nonmember would not be considered discriminatory by the Committee if it were designed to make up for the financial burden borne by the members of the NGB for the development and administration of the sport. The Committee considered and rejected a requirement for an amateur sports organization or person to associate itself with the national governing body in order to be eligible to obtain a sanction. Such membership requirement was not recommended by the PCOS. Further, the Committee felt the decision to affiliate with an NGB ought to be determined on the basis of the advantages such memberships could bring, bearing in mind the opportunity to participate through reasonable representation in the development of policy in the NGB. By not coercing membership in any way, the Committee feels that the national governing body will be provided with greater incentive to improve its programs and policies in order to encourage potential members to affiliate. RESOLUTION OF CONFLICTS The bill provides for possible arbitration, before a board of arbitrators appointed by the American Arbitration Association, in three circumstances: first, if a national governing body is dissatisfied with the action taken against it by the Olympic Committee for alleged failure to meet the requirements for national governing body status; second, if a complainant under the above-mentioned complaint procedure, or the national governing body against which the complaint is filed, is dissatisfied with the determination of the USOC on the complaint; and third, following a challenge under USOC procedures against an existing NGB, by an amateur sports organization believing itself better qualified than the incumbent to act as a national governing body in a particular sport. The USOC Constitution, as a result of actions taken in 1977, now contains similar detailed provisions concerning the challenge process. These provisions essentially involve a requirement that the challenger reasonably pursue its remedies within the national governing body, and if then dissatisfied, file an application with the USOC to replace an incumbent national governing body. The USOC procedure contemplates a prompt hearing by the USOC on this application, in which both the challenger and the incumbent are given an opportunity to be heard. After the USOC has acted, a dissatisfied party may file for arbitration of the issue before a panel of arbitrators appointed in accordance with the commercial rules of the American Arbitration Association. The arbitration provisions of S. 2727 provide for a fair determination of the respective merits of the two contending parties for national governing body status and establish a mechanism by which these merits may be fully and efficiently developed and presented. The arbitrators may issue subpenas to compel attendance of witnesses and production of documents, with the district courts of the United States being given jurisdiction to enforce such subpena authority. The district courts are also given jurisdiction to enforce the decisions of the arbitrators. The Olympic Committee is given general authority on a continuing basis to review matters related to the recognition of national governing bodies, and is authorized to seek injunctive relief in the district courts of the United States in the event a national governing body is committing, or is about to commit, an act inconsistent with the requirements or duties imposed upon it by the bill. RESTRICTED COMPETITION The Amateur Sports Act makes clear that amateur sports organizations which conduct amateur athletic competition in which participation is restricted to a specific class of athletes (such as high school students, college students, members of the Armed Forces, or similar groups or categories), shall have jurisdiction over that competition. However, if such amateur sports organizations wish to conduct international amateur athletic competition, or sponsor athletes to participate in international amateur athletic competition, they must obtain a sanction from the appropriate national governing body. FINANCIAL ASSISTANCE The Amateur Sports Act authorizes a one-time Federal grant of $30 million to the USOC. Consistent with the provisions of the bill, the USOC may use not to exceed $18 million for the further development and improvement of its programs, those of the national governing bodies, and other amateur sports organizations. Twelve million dollars may be used by the Olympic Committee in connection with the support of the training centers and for a feasibility study to determine the cost of, need for, and most appropriate means of providing continuing funding to the training centers and sports medicine facilities. ESTIMATED COSTS CONGRESSIONAL BUDGET OFFICE, Hon. Howard W. Cannon, U.S. CONGRESS, Washington, D.C., April 3, 1978. Chairman, Committee on Commerce, Science, and Transportation, DEAR MR. CHAIRMAN: Pursuant to Section 403 of the Congressional Budget Act of 1974, the Congressional Budget Office has prepared the attached cost estimate for S. 2727, the Amateur Sports Act of 1978. Should the Committee so desire, we would be pleased to provide further details on the attached cost estimate. 2. Bill title: Amateur Sports Act of 1978. 3. Bill status: As ordered reported by the Senate Committee on Commerce, Science, and Transportation, March 21, 1978. 4. Bill purpose: The purpose of this bill is to encourage participation in amateur athletic activities by citizens of the United States. To accomplish this goal, this bill would expand the authority of the United States Olympic Committee to serve as the coordinating body for all United States amateur athletic activities. The committee would be organized as a corporation, with the exclusive power to organize, finance, and control the representation of the United States in the Olympics and Pan-American Games, and obtain and select amateur representation for such games. The committee would also have power to recognize eligible amateur sports organizations as national governing bodies for any sport which is included in these games, and to develop and implement procedures for resolution of disputes involving amateur athletic personnel, events, or organizations. The bill also authorizes funds to be used by the Secretary of Commerce to award grants to the committee to finance feasibility studies to determine appropriate locations for training centers to further amateur sports development; the administration and operation of these centers; an information retrieval service for the analysis and dissemination of sports medicine information; and program development and operation. 5. Cost estimate: Fiscal year 1979: Authorization level_ Fiscal year 1980: Authorization level.. Fiscal year 1981: Authorization level. Fiscal year 1982: Authorization level. Estimated cost-- Fiscal year 1983: Authorization level.. Estimated cost---. The costs of this bill fall within budget subfunction 376. Millions $30.0 10. 5 7.5 7.5 4. 5 6. Basis of estimate: The authorization level is the level specified in the bill, which includes $18 million for program development and operation, and $12 million for the review and operation of training centers, and a medical information system. Based on United States Olympic Committee estimates, it is projected that the $18 million for program development and operation would be spent in equal installments of $4.5 million in each fiscal year through 1982. It is estimated that 50 percent, or $6 million, of the other $12 million would be spent in fiscal year 1979, and 25 percent, or $3 million, in each of the fiscal years 1980 and 1981. 7. Estimate comparison: None. 8. Previous CBO estimate: None. 9. Estimate prepared by: Mary Maginniss. 10. Estimate approved by: C. G. NUCKOLS Assistant Director for Budget Analysis). U.S. OLYMPIC COMMITTEE, Hon. TED STEVENS, DEAR SENATOR STEVENS: This letter is being written in the interest of providing the Senate Commerce Committee with an appreciation and better understanding of the need of amateur sports for financial assistance as outlined in Section 210 of S. 2727. On behalf of the United States Olympic Committee, I take this opportunity to express our deepest appreciation for your outstanding efforts on behalf of amateur sports to provide a firm base for the enhancement of amateur athletes in the United States. As indicated in the Final Report of the President's Commission on Olympic Sports (1975-1977), the development of a successful amateur sports program in the United States is tantamount to the availability of Federal financial assistance at an early date. It must be recognized that broad-scale amateur sports opportunities for a maximum number of individuals at all ages and all levels of ability not only serve as a deterrent to many of our current social problems, but also make a substantial contribution to the development of the individual and to our society. If the United States is to benefit from these opportunities, it is imperative that adequate funding be provided for the full spectrum of amateur sports programs designed for the beginner as well as the elite athlete. Many of our national sports governing bodies, particularly those whose sports are designated as underdeveloped and emerging, are unable to generate sufficient financial support to provide the youth of our country with even the basic opportunities to participate in sports. The United States Olympic Committee does, as a result of the concern and generosity of the American public and corporations, provide some financial assistance to all national governing bodies; however, it is far from adequate. During this quadrennial period (1977-1980), the United States Olympic Committee has a budgetary goal of $26 million of which $9.2 million is disbursed to national governing bodies as direct grants to assist them in the grass roots development of their respective sports. This sum is not enough to satisfy the full requirements of these bodies. The justified grant requests from national governing bodies is approximately four times the amount of money which has been budgeted by our Committee. The only way this extreme dollar shortage can be resolved in the immediate future is through the Federal government providing onetime assistance under S. 2727. The $18 million set forth in S. 2727 to finance the development and operation of programs approved by the Corporation, consistent with the provisions of the act, is essential if the restructuring of amateur sports in the United States is to be successfully and quickly consummated under effective and efficient leadership. Many of our national amateur sports governing bodies do not have full-time paid adminstrators to help effectively plan, organize and administer the sport. If expanded opportunities are to be provided to satisfy the inherent interests and needs of our society, and if available resources (fiscal physical and human) are to be used wisely, sufficient professional experts must be placed in charge of administering the sports programs. However, the professional experts cannot be provided without Federal financial assistance, available through S. 2727. In addition, these monies are needed for the development and dissemination of publications, training aids, films and other audio-visual aids to help create greater public awareness of the benefits of amateur sports and to expose a greater number of our youth to these wholesome activities. These funds will also be available to help defray the cost of amateur sports development activities of coaches, athletes and officials-from grass roots level up, but not including, elite development for specific international competitions. Further, these monies will be used to broaden the competitive base of amateur sports. For example, typical expenditures include. the cost of conducting local and national competitions or exhibitions, the cost of domestic and international travel, per diem allowances, and room and board charges which are all the responsibility of national governing bodies. If Congress does not favorably consider this one-time appropriation of funds it will have a deleterious impact on the opportunity to expand the amateur sports programs for our nation's youth. We firmly believe that without an expanded grass roots development program for amateur sports, our country will have difficulty in putting together representative teams to participate equitably in international competitions with other countries, particularly those of Eastern Europe. S Rept. 95-770-78-3 |