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103D CONGRESS

2D SESSION H. R. 4736

To establish in the Treasury of the United States the Library of Congress

Revolving Fund, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 13, 1994

Mr. ROSE (by request) introduced the following bill; which was referred jointly

to the Committees on House Administration and the Judiciary

A BILL

To establish in the Treasury of the United States the Library

of Congress Revolving Fund, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Library of Congress

5 Financial Reform Act of 1994’’.

6 TITLE I—LIBRARY OF CONGRESS

7 REVOLVING FUND

8 SEC. 101. DEFINITIONS.

9 For the purposes of this title:
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1 (1) FUND.—The term ‘‘Fund’’ means the Li2 brary of Congress Revolving Fund.

3 (2) LIBRARY OF CONGRESS REVOLVING

4 FUND.—The term ‘‘Library of Congress Revolving

5 Fund’’ means that fiscal resource established in the

6 United States Treasury to enable the Library of

7 Congress to conduct a cycle of operations in which

8 expenditures generate income, which is then credited

9 directly to that resource.

10 (3) FUND SERVICE ACTIVITIES.—The term

11 ‘‘Fund service activities’’ means the library informa12 tion products and services authorized by section 102.

13 (4) FUND SERVICE UNITS.—The term ‘‘Fund

14 service units’’ means those organizational entities

15 that, at the direction of the Librarian of Congress,

16 are partially or fully sustained through the collection

17 of fees credited to the Fund.

18 SEC. 102. FUND SERVICE ACTIVITIES AUTHORIZED.

19 The Fund service activities that are authorized by

20 this Act and that may be conducted by Fund service units

21 are limited to the following:

22 (1) Research reports, translations, and analyt23 ical studies, where such materials are prepared for

24 Federal agencies.
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1 (2) Centralized acquisition of publications, in2 formation services, and library materials, and train3 ing in library and information services, for Federal

4 agencies.

5 (3) Decimal classification development.

6 (4) Gift shop activities involving sale of items

7 associated with Library collections, exhibits, per8 formances, or special events.

9 (5) Document location, copying and delivery

10 services, and international interlibrary lending.

11 (6) Centralized acquisition activities for librar12 ies participating in the Library of Congress overseas

13 programs.

14 (7) Special events and programs, such as per15 formances, exhibits, workshops, and meetings.

16 SEC. 103. OPERATION OF THE LIBRARY OF CONGRESS RE17 VOLVING FUND.

18 (a) ESTABLISHMENT OF FUND.—

19 (1) IN GENERAL.—There is established in the

20 Treasury of the United States the Library of Con21 gress Revolving Fund. The Fund shall be available

22 to the Librarian, without fiscal year limitation, for

23 use as a revolving fund to carry out Fund service ac24 tivities.
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1 (2) RESTRICTION.—Obligations for Fund serv2 ice activities are limited to the total amounts speci3 fied in the appropriation Act for any fiscal year.

4 (b) FUND CAPITAL.—The capital of the Fund shall

5 consist of the aggregate of—

6 (1) appropriations made to provide capital for

7 the Fund which appropriations are authorized under

8 this Act; and

9 (2) the difference between—

10 (A) the sum of the fair and reasonable

11 value of such supplies, equipment, and other as12 sets as the Library from time to time transfers

13 to the Fund, including the amount of the unex14 pended balances of gift funds relating to activi15 ties the financing of which is transferred to the

16 Fund, and

17 (B) the sum of the amounts of related li18 abilities and unpaid obligations, and the value

19 of accrued annual leave of employees, which

20 amounts and value are attributable to those ac21 tivities whose financing is transferred to the

22 Fund.

23 (c) CREDITING TO THE FUND.—The Fund shall be

24 credited with—
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1 (1) all fees, advances, and reimbursements re2 ceived from any source for products and services fur3 nished or to be furnished by the Fund service units

4 as authorized Fund service activities under this Act,

5 including transfers of monies received during the

6 year by Fund service units for services and products

7 furnished under Economy Act agreements;

8 (2) receipts from sales or exchanges of prop9 erty, and payments for loss or damage to property,

10 accounted for under the Fund;

11 (3) all receivables, inventories, and other assets

12 associated with Fund service activities;

13 (4) any sums appropriated by law for the con14 duct of Fund service activities; and

15 (5) any sums accruing from interest paid on

16 Fund investments.

17 (d) AUTHORITY TO SET AND CHARGE FEES.—With

18 respect to the Fund service activities authorized by section

19 102, the Librarian of Congress is authorized to set fees

20 to recover the production and distribution costs of library

21 products and services provided by each Fund service unit,

22 to charge those fees to the institutions and individuals

23 purchasing the products and services, and to furnish said

24 products and services. The activities of each individual

25 Fund service unit shall, to the maximum extent feasible,
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1 be conducted on an actual cost basis over a reasonable

2 period of time.

3 (e) AVAILABILITY OF FUND.—The Fund shall be

4 available to the Librarian of Congress for the payment of

5 all costs of conducting Fund service activities, including

6 the payment of any financial obligations related to these

7 activities that were undertaken by the Librarian before the

8 establishment of the Fund and that were later transferred

9 to the Fund by law or in conjunction with any reorganiza10 tion authorized by law.

11 (f) RESPONSIBILITIES OF FUND SERVICE UNITS.—

12 The nonappropriated capital of the Fund shall be ac13 counted for by Fund service units. Any unobligated and

14 unexpended balances of these Fund service unit accounts

15 shall be available to provide reserve accounts and to sup16 port research and development activities of that Fund

17 service unit. Fund service unit accounts shall not be com18 mingled with other Fund service unit accounts.

19 (g) INTEREST ON APPROPRIATED CAPITAL.—An an20 nual interest charge shall be paid by the Fund to the gen21 eral fund of the Treasury for appropriations made to pro22 vide capital for Fund service units that predominantly sell

23 library products and services to non-Federal customers.

24 The interest rate used to calculate an annual interest

25 charge shall be determined by the Secretary of the Treas-
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1 ury taking into consideration average market yields on

2 outstanding marketable obligations of the United States

3 with approximately one year remaining to maturity during

4 the month preceding each fiscal year.

5 (h) INVESTMENT OF FUNDS.—Upon the request of

6 the Librarian of Congress, the Secretary of the Treasury

7 shall invest such portion of the Fund, except for amounts

8 appropriated to the Fund, as is not in the judgment of

9 the Librarian of Congress required to meet current with10 drawals. Such investments shall be in public debt securi11 ties with maturities suitable to the needs of the Fund, as

12 determined by the Librarian of Congress, and bearing in13 terest at rates determined by the Secretary of the Treas14 ury, taking into consideration current market yields on

15 outstanding marketable obligations of the United States

16 of comparable maturity. The income on such investments

17 shall be credited to and form a part of the Fund.

18 (i) MISTAKEN PAYMENT OR OVERPAYMENT FROM

19 FUND.—The Librarian of Congress shall make provisions

20 for the refund from the Fund of any fees paid by mistake

21 or overpayment.

22 (j) EXCESS FUNDS.—Any unobligated and unex23 pended balances of the Fund that the Librarian deter24 mines to be in excess of amounts needed for activities fi-
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1 nanced by the Fund shall be deposited in the Treasury

2 of the United States as miscellaneous receipts.

3 (k) AUDITS.—The General Accounting Office shall

4 audit the financial activities of the Fund pursuant to the

5 regulations of the Comptroller General and shall furnish

6 reports of such audits to the Congress and to the Librar7 ian.

8 TITLE II—CATALOGING

9 PRODUCTS AND SERVICES

10 SEC. 201. DEFINITION.

11 For the purposes of this title, the term ‘‘cataloging

12 products and services’’ means those information products

13 and services, in any format now known or later developed,

14 that are used by libraries and library organizations, in15 cluding bibliographic products and services, other Library16 created data bases, and related technical publications.

17 SEC. 202. FURNISHING CATALOGING PRODUCTS AND SERV18 ICES.

19 (a) IN GENERAL.—The Librarian of Congress is au20 thorized to furnish cataloging products and services to in21 stitutions or individuals for purchase.

22 (b) CHARGING FOR CATALOGING PRODUCTS AND

23 SERVICES.—The Librarian of Congress may charge a

24 price for products and services referred to in subsection

25 (a) that is limited to the distribution costs of the products
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1 and services. All monies received through the distribution

2 of cataloging products and services shall be deposited in

3 the Treasury and shall be credited to the Library of Con4 gress salaries and expenses appropriation to remain avail5 able until expended for necessary distribution of such

6 products and services of the Library.

7 TITLE III—RETENTION OF PRO8 CEEDS BY LIBRARY OF CON9 GRESS

10 SEC. 301. SALE OF EXCESS MATERIALS.

11 (a) SALES AUTHORIZED.—Except as provided by

12 subsections (b) and (c), personal property, including

13 books, periodicals, phonorecords, and other material, that

14 the Librarian of Congress determines to be excess to the

15 collections of the Library of Congress or the exchange and

16 donation programs of the Library may be sold by the Li17 brarian pursuant to regulations promulgated by the Ad18 ministrator of General Services for the disposal of per19 sonal property by sale.

20 (b) COPYRIGHT DEPOSITS.—

21 (1) SALES NOT AUTHORIZED.—The Librarian

22 shall not be authorized to sell copies, phonorecords,

23 or identifying material deposited in the Copyright

24 Office under title 17, United States Code, in cases

25 where—
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1 (A) the work was unpublished at the time

2 of deposit;

3 (B) the work is subject to a request for re4 tention under section 704(e) of title 17, United

5 States Code;

6 (C) the articles deposited are still under

7 the control of the Copyright Office, and the

8 joint decision as to their disposition required by

9 section 704(d) of title 17, United States Code,

10 has not been taken by the Librarian of Con11 gress and the Register of Copyrights;

12 (D) the articles deposited under section

13 407 of title 17, United States Code, in response

14 to a demand specifically identifying the work in

15 question; or

16 (E) the Library and the depositor of the

17 articles deposited under title 17, United States

18 Code, have entered into a written agreement

19 that addresses disposition of said articles, and

20 the sale would not be authorized under such

21 agreement.

22 (2) SALES AUTHORIZED IN CERTAIN CASES.—

23 Subject to the provisions of subsection (a) and of

24 paragraph (1), the Librarian shall be authorized to

25 sell copies, phonorecords, or identifying material de-
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1 posited in the Copyright Office under title 17,

2 United States Code, where—

3 (A) the articles are sold exclusively as

4 scrap for purposes of recycling, under an agree5 ment with the purchaser that they will not be

6 resold or used for any other purpose; or

7 (B) the Library of Congress has owned the

8 articles for at least 5 years, or there is no rea9 sonable likelihood that their later resale or com10 mercial use by the purchaser or the purchaser’s

11 successors in title would materially impair the

12 market value of the work.

13 (3) SALES AUTHORIZED; EXPIRED COPY14 RIGHTS.—Notwithstanding the provisions of para15 graphs (1) and (2), the Librarian shall be authorized

16 to sell any articles deposited under title 17, United

17 States Code, when the term of copyright in the work

18 has expired.

19 (c) OTHER SALES NOT AUTHORIZED.—The Librar20 ian shall not be authorized to sell—

21 (1) materials received by the Library under a

22 written deed of gift, a license, or other contractual

23 agreement signed by the Library, where the agree24 ment expressly precludes the transfer of ownership

25 or possession by the Library of such material, or the
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1 proposed sale is not authorized by the terms of the

2 agreement;

3 (2) audio books, braille books, and sound pro4 duction equipment distributed by the National Li5 brary Service for the Blind and Physically Handi6 capped; or

7 (3) products of the Congressional Research

8 Service, unless approved by Congress.

9 SEC. 302. ACCEPTANCE OF PAYMENTS OR RESTITUTION.

10 The Librarian is authorized to accept all sums ten11 dered as payment or restitution for lost, stolen, damaged,

12 or destroyed books, periodicals, newspapers, phonorecords,

13 or other materials from the Library’s collection if such

14 sums are—

15 (1) ordered by any judicial or administrative

16 authority to be paid to the Library; or

17 (2) received from a borrower or other Library

18 user.

19 SEC. 303. RETENTION OF PROCEEDS OF SALES, PAYMENTS,

20 OR RESTITUTION.

21 (a) ACCOUNT ESTABLISHED.—There is established in

22 the Treasury of the United States an account consisting

23 of the proceeds of any sale described in section 301 or

24 of any payment or restitution described in section 302.
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1 (b) EXPENDITURES.—Amounts in the account de2 scribed in subsection (a) shall be available to the Librar3 ian, to the extent provided in appropriations Acts, until

4 expended, for the acquisition of books, periodicals,

5 phonorecords, and other materials, including the costs of

6 administering the national and international acquisition

7 programs of the Library.

8 TITLE IV—AMENDMENTS TO THE

9 LIBRARY OF CONGRESS

10 TRUST FUND BOARD ACT

11 SEC. 401. ADDITIONAL MEMBERSHIP ON THE LIBRARY OF

12 CONGRESS TRUST FUND BOARD.

13 The first sentence of the first paragraph of the first

14 section of the Act entitled ‘‘An Act to create a Library

15 of Congress Trust Fund Board, and for other purposes’’,

16 approved March 3, 1925 (2 U.S.C. 154), is amended by

17 inserting after ‘‘the chairman’’ the following: ‘‘and the vice

18 chairman’’.

19 SEC. 402. LIMIT ON AMOUNT ON DEPOSIT IN THE PERMA20 NENT LOAN ACCOUNT, UNITED STATES

21 TREASURY.

22 The proviso in the third undesignated paragraph of

23 section 2 of the Act entitled ‘‘An Act to create a Library

24 of Congress Trust Fund Board, and for other purposes’’,

25 approved March 3, 1925 (2 U.S.C. 158), is amended by
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1 striking out ‘‘$10,000,000’’ and inserting in lieu thereof

2 ‘‘$20,000,000’’.

3 SEC. 403. TEMPORARY INVESTMENT AUTHORITY.

4 Section 2 of the Act entitled ‘‘An Act to create a Li5 brary of Congress Trust Fund Board, and for other pur6 poses’’, approved March 3, 1925, is amended—

7 (1) in the third undesignated paragraph (2

8 U.S.C. 158), by inserting after ‘‘subject to’’ the fol9 lowing: ‘‘subsequent’’; and

10 (2) in the second sentence of the fourth undes11 ignated paragraph (2 U.S.C. 158a), by inserting

12 after ‘‘retained’’ the following: ‘‘by the Librarian’’.

13 SEC. 404. AUTHORITY TO TRANSFER GIFT FUNDS TO THE

14 BOARD.

15 Section 4 of the Act entitled ‘‘An Act to create a Li16 brary of Congress Trust Fund Board, and for other pur17 poses’’, approved March 3, 1925 (2 U.S.C. 160), is

18 amended by adding at the end the following new undesig19 nated paragraph:

20 ‘‘Gifts or bequests accepted by the Librarian under

21 the authority of this section may subsequently be offered

22 by the Librarian to the Board in cases where the Librar23 ian determines, and the Board agrees, that the purposes

24 of the gift or bequest would best be accomplished by the
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1 Board’s authority to invest and reinvest monies or securi2 ties donated or bequeathed.’’.

3 TITLE V—AMENDMENTS TO

4 COPYRIGHT ARBITRATION

5 ROYALTY PANELS LEGISLA6 TION

7 SEC. 501. ARBITRATION PROCEEDINGS.

8 Section 802(c) of title 17, United States Code, is

9 amended by striking out the last two sentences.

10 SEC. 502. ADMINISTRATIVE MATTERS.

11 Section 802(h) of title 17, United States Code, is

12 amended by striking out paragraph (1), by redesignating

13 paragraph (2) as paragraph (5), and by inserting after

14 the section heading the following new paragraphs:

15 ‘‘(1) DEDUCTION OR ASSESSMENT OF COSTS OF

16 THE LIBRARY OF CONGRESS AND THE COPYRIGHT

17 OFFICE.—The Librarian of Congress and the Reg18 ister of Copyrights may, to the extent not otherwise

19 provided under this title, deduct from royalty fees

20 deposited or collected under this title the reasonable

21 costs incurred by the Library of Congress and the

22 Copyright Office under this chapter. Such deduction

23 may be made before the fees are distributed to any

24 copyright claimants. If no royalty pool exists from

25 which their costs can be deducted, the Librarian of
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1 Congress and the Copyright Office may assess their

2 reasonable costs directly to the parties to the most

3 recent relevant arbitration proceeding.

4 ‘‘(2) DEDUCTION OF COSTS OF THE COPYRIGHT

5 ARBITRATION ROYALTY PANELS IN DISTRIBUTION

6 PROCEEDINGS FROM ROYALTY FEES.—In distribu7 tion proceedings, the Librarian of Congress and the

8 Register of Copyrights may deduct from royalty fees

9 deposited or collected under this title the reasonable

10 costs incurred by the copyright arbitration royalty

11 panels, and pay the arbitrators from such deductions

12 at such intervals and in such manner as the Librar13 ian of Congress shall by regulation provide. Such de14 duction may be made before the fees are distributed

15 to any copyright claimants. Claimants shall bear the

16 costs of the copyright arbitration royalty panels in

17 direct proportion to their share of the distribution.

18 ‘‘(3) PAYMENT OF COSTS OF THE COPYRIGHT

19 ARBITRATION ROYALTY PANELS IN RATEMAKING

20 PROCEEDINGS.—In ratemaking proceedings, the Li21 brarian of Congress and the Register of Copyrights

22 may require the parties to pay the costs of the copy23 right arbitration royalty panels to the Librarian of

24 Congress who shall, in turn, make payments to the

25 arbitrators, at such intervals and in such manner as
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1 the Librarian of Congress shall by regulation pro2 vide. The parties to such proceedings shall bear the

3 entire cost thereof in such manner and proportion as

4 the arbitration panels shall direct.

5 ‘‘(4) PAYMENT AND STATUS OF THE ARBITRA6 TORS.—Arbitrators are independent contractors act7 ing on behalf of the United States. Arbitrators shall

8 be paid pursuant to a signed agreement between the

9 Library of Congress and the arbitrators.’’.

10 TITLE VI—SUPPLEMENTARY

11 PROVISIONS

12 SEC. 601. PRESERVATION OF SECURITY CLASSIFICATION.

13 (a) IN GENERAL.—Notwithstanding any other provi14 sion of this Act, the Librarian of Congress shall respect

15 and preserve the security classification of any scientific or

16 technical information, data, patents, inventions, or discov17 eries in, or coming into, the possession or control of the

18 Library of Congress. The President or a designee shall

19 certify the classified status of any classified items received

20 by the Librarian of Congress as being essential in the in21 terest of national defense.

22 (b) EFFECT ON OTHER LAWS.—Nothing in this Act

23 shall be construed as modifying or limiting any other stat24 ute relating to the classification of information for reasons

25 of national defense or security.
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1 SEC. 602. APPLICATION OF ACT.

2 (a) COPYRIGHT.—Subject to the provisions of sec3 tions 501 and 502, nothing in this Act shall be construed

4 as modifying or limiting any provision of title 17, United

5 States Code.

6 (b) CRS.—In keeping with the intent and purposes

7 of provisions of section 203 of the Legislative Reorganiza8 tion Act of 1946 (2 U.S.C. 166)—

9 (1) the resources of the Congressional Research

10 Service shall not be utilized to generate fee-based re11 search and information services; and

12 (2) the products of the Congressional Research

13 Service shall not be marketed or published by the

14 Library of Congress without prior approval of either

15 the Committee on House Administration of the

16 House of Representatives or the Senate Committee

17 on Rules and Administration.

18 SEC. 603. REGULATIONS.

19 Pursuant to the first paragraph under the heading

20 ‘‘LIBRARY OF CONGRESS’’ in the first section of the Act

21 entitled ‘‘An Act making appropriations for the legislative,

22 executive, and judicial expenses of the Government for the

23 fiscal year ending June thirtieth, eighteen hundred and

24 ninety-eight, and for other purposes’’, approved February

25 19, 1897 (2 U.S.C. 136), the Librarian of Congress shall
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1 promulgate such regulations as are necessary to imple2 ment this Act.

3 SEC. 604. ANNUAL REPORT.

4 The Librarian shall each year report the activities

5 and financial transactions resulting from implementation

6 of this Act in the annual report of the Librarian of Con7 gress.

8 SEC. 605. REPEAL.

9 The paragraph beginning ‘‘The Librarian of Con10 gress’’ under the heading ‘‘PUBLIC PRINTING AND

11 BINDING’’ in section 1 of the Act entitled ‘‘An Act mak12 ing appropriations for sundry civil expenses of the Govern13 ment for the fiscal year ending June thirtieth, nineteen

14 hundred and three, and for other purposes’’, approved

15 June 28, 1902 (2 U.S.C. 150), is repealed.

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