April 13, 2004

The Honorable F. James Sensenbrenner, Jr.

Chairman, Committee on the Judiciary

U.S. House of Representatives

Washington, DC 20515

Dear Mr. Chairman:

Thank you for the opportunity to comment on the “United States Olympic Committee Reform Act” (H.R. 3825). For the reasons explained below, the Department of Commerce recommends that sections 7 and 8 of H.R. 3825 be deleted.

Section 7 of H.R. 3825 states that 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, and authorizes to be appropriated for this purpose $1,000,000 for any year in which the United States hosts the Olympic or the Pan-American Games. The Department does not believe that these events would need special grants to encourage international attendance.

Section 8 of H.R. 3825 requires the Secretary of Commerce to conduct a study on the projected impact on commerce of a United States bid city hosting the Olympic Games. However, as set forth in the bill, the proposed study lacks the requisite specificity and concreteness for such an endeavor to have sufficient value to merit its undertaking. Cost-benefit analyses of potential host sites, as called for in the bill, are effective only when sufficient details regarding actual locations are known. Because the study here would focus on a generic U.S. host city, necessary details, such as existing infrastructure, are unknown. The Administration believes, therefore, that undertaking a study such as that proposed in the bill would not be an effective use of resources at this time.

In conclusion, we would request that H.R. 3825 be amended to delete sections 7 and 8. We have been advised by the Office of Management and Budget that there is no objection to the transmittal of these views from the standpoint of the Administration’s program.

                                                                                           Sincerely,

                                                                                           Theodore W. Kassinger 

cc:        The Honorable John Conyers, Jr.

             Ranking Member