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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4736 Introduced in House (IH)]

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.

    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 ``Library of Congress Financial Reform 
Act of 1994''.

              TITLE I--LIBRARY OF CONGRESS REVOLVING FUND

SEC. 101. DEFINITIONS.

    For the purposes of this title:
            (1) Fund.--The term ``Fund'' means the Library of Congress 
        Revolving Fund.
            (2) Library of congress revolving fund.--The term ``Library 
        of Congress Revolving Fund'' means that fiscal resource 
        established in the United States Treasury to enable the Library 
        of Congress to conduct a cycle of operations in which 
        expenditures generate income, which is then credited directly 
        to that resource.
            (3) Fund service activities.--The term ``Fund service 
        activities'' means the library information products and 
        services authorized by section 102.
            (4) Fund service units.--The term ``Fund service units'' 
        means those organizational entities that, at the direction of 
        the Librarian of Congress, are partially or fully sustained 
        through the collection of fees credited to the Fund.

SEC. 102. FUND SERVICE ACTIVITIES AUTHORIZED.

    The Fund service activities that are authorized by this Act and 
that may be conducted by Fund service units are limited to the 
following:
            (1) Research reports, translations, and analytical studies, 
        where such materials are prepared for Federal agencies.
            (2) Centralized acquisition of publications, information 
        services, and library materials, and training in library and 
        information services, for Federal agencies.
            (3) Decimal classification development.
            (4) Gift shop activities involving sale of items associated 
        with Library collections, exhibits, performances, or special 
        events.
            (5) Document location, copying and delivery services, and 
        international interlibrary lending.
            (6) Centralized acquisition activities for libraries 
        participating in the Library of Congress overseas programs.
            (7) Special events and programs, such as performances, 
        exhibits, workshops, and meetings.

SEC. 103. OPERATION OF THE LIBRARY OF CONGRESS REVOLVING FUND.

    (a) Establishment of Fund.--
            (1) In general.--There is established in the Treasury of 
        the United States the Library of Congress Revolving Fund. The 
        Fund shall be available to the Librarian, without fiscal year 
        limitation, for use as a revolving fund to carry out Fund 
        service activities.
            (2) Restriction.--Obligations for Fund service activities 
        are limited to the total amounts specified in the appropriation 
        Act for any fiscal year.
    (b) Fund Capital.--The capital of the Fund shall consist of the 
aggregate of--
            (1) appropriations made to provide capital for the Fund 
        which appropriations are authorized under this Act; and
            (2) the difference between--
                    (A) the sum of the fair and reasonable value of 
                such supplies, equipment, and other assets as the 
                Library from time to time transfers to the Fund, 
                including the amount of the unexpended balances of gift 
                funds relating to activities the financing of which is 
                transferred to the Fund, and
                    (B) the sum of the amounts of related liabilities 
                and unpaid obligations, and the value of accrued annual 
                leave of employees, which amounts and value are 
                attributable to those activities whose financing is 
                transferred to the Fund.
    (c) Crediting to the Fund.--The Fund shall be credited with--
            (1) all fees, advances, and reimbursements received from 
        any source for products and services furnished or to be 
        furnished by the Fund service units as authorized Fund service 
        activities under this Act, including transfers of monies 
        received during the year by Fund service units for services and 
        products furnished under Economy Act agreements;
            (2) receipts from sales or exchanges of property, and 
        payments for loss or damage to property, accounted for under 
        the Fund;
            (3) all receivables, inventories, and other assets 
        associated with Fund service activities;
            (4) any sums appropriated by law for the conduct of Fund 
        service activities; and
            (5) any sums accruing from interest paid on Fund 
        investments.
    (d) Authority To Set and Charge Fees.--With respect to the Fund 
service activities authorized by section 102, the Librarian of Congress 
is authorized to set fees to recover the production and distribution 
costs of library products and services provided by each Fund service 
unit, to charge those fees to the institutions and individuals 
purchasing the products and services, and to furnish said products and 
services. The activities of each individual Fund service unit shall, to 
the maximum extent feasible, be conducted on an actual cost basis over 
a reasonable period of time.
    (e) Availability of Fund.--The Fund shall be available to the 
Librarian of Congress for the payment of all costs of conducting Fund 
service activities, including the payment of any financial obligations 
related to these activities that were undertaken by the Librarian 
before the establishment of the Fund and that were later transferred to 
the Fund by law or in conjunction with any reorganization authorized by 
law.
    (f) Responsibilities of Fund Service Units.--The nonappropriated 
capital of the Fund shall be accounted for by Fund service units. Any 
unobligated and unexpended balances of these Fund service unit accounts 
shall be available to provide reserve accounts and to support research 
and development activities of that Fund service unit. Fund service unit 
accounts shall not be commingled with other Fund service unit accounts.
    (g) Interest on Appropriated Capital.--An annual interest charge 
shall be paid by the Fund to the general fund of the Treasury for 
appropriations made to provide capital for Fund service units that 
predominantly sell library products and services to non-Federal 
customers. The interest rate used to calculate an annual interest 
charge shall be determined by the Secretary of the Treasury taking into 
consideration average market yields on outstanding marketable 
obligations of the United States with approximately one year remaining 
to maturity during the month preceding each fiscal year.
    (h) Investment of Funds.--Upon the request of the Librarian of 
Congress, the Secretary of the Treasury shall invest such portion of 
the Fund, except for amounts appropriated to the Fund, as is not in the 
judgment of the Librarian of Congress required to meet current 
withdrawals. Such investments shall be in public debt securities with 
maturities suitable to the needs of the Fund, as determined by the 
Librarian of Congress, and bearing interest at rates determined by the 
Secretary of the Treasury, taking into consideration current market 
yields on outstanding marketable obligations of the United States of 
comparable maturity. The income on such investments shall be credited 
to and form a part of the Fund.
    (i) Mistaken Payment or Overpayment From Fund.--The Librarian of 
Congress shall make provisions for the refund from the Fund of any fees 
paid by mistake or overpayment.
    (j) Excess Funds.--Any unobligated and unexpended balances of the 
Fund that the Librarian determines to be in excess of amounts needed 
for activities financed by the Fund shall be deposited in the Treasury 
of the United States as miscellaneous receipts.
    (k) Audits.--The General Accounting Office shall audit the 
financial activities of the Fund pursuant to the regulations of the 
Comptroller General and shall furnish reports of such audits to the 
Congress and to the Librarian.

               TITLE II--CATALOGING PRODUCTS AND SERVICES

SEC. 201. DEFINITION.

    For the purposes of this title, the term ``cataloging products and 
services'' means those information products and services, in any format 
now known or later developed, that are used by libraries and library 
organizations, including bibliographic products and services, other 
Library-created data bases, and related technical publications.

SEC. 202. FURNISHING CATALOGING PRODUCTS AND SERVICES.

    (a) In General.--The Librarian of Congress is authorized to furnish 
cataloging products and services to institutions or individuals for 
purchase.
    (b) Charging for Cataloging Products and Services.--The Librarian 
of Congress may charge a price for products and services referred to in 
subsection (a) that is limited to the distribution costs of the 
products and services. All monies received through the distribution of 
cataloging products and services shall be deposited in the Treasury and 
shall be credited to the Library of Congress salaries and expenses 
appropriation to remain available until expended for necessary 
distribution of such products and services of the Library.

        TITLE III--RETENTION OF PROCEEDS BY LIBRARY OF CONGRESS

SEC. 301. SALE OF EXCESS MATERIALS.

    (a) Sales Authorized.--Except as provided by subsections (b) and 
(c), personal property, including books, periodicals, phonorecords, and 
other material, that the Librarian of Congress determines to be excess 
to the collections of the Library of Congress or the exchange and 
donation programs of the Library may be sold by the Librarian pursuant 
to regulations promulgated by the Administrator of General Services for 
the disposal of personal property by sale.
    (b) Copyright Deposits.--
            (1) Sales not authorized.--The Librarian shall not be 
        authorized to sell copies, phonorecords, or identifying 
        material deposited in the Copyright Office under title 17, 
        United States Code, in cases where--
                    (A) the work was unpublished at the time of 
                deposit;
                    (B) the work is subject to a request for retention 
                under section 704(e) of title 17, United States Code;
                    (C) the articles deposited are still under the 
                control of the Copyright Office, and the joint decision 
                as to their disposition required by section 704(d) of 
                title 17, United States Code, has not been taken by the 
                Librarian of Congress and the Register of Copyrights;
                    (D) the articles deposited under section 407 of 
                title 17, United States Code, in response to a demand 
                specifically identifying the work in question; or
                    (E) the Library and the depositor of the articles 
                deposited under title 17, United States Code, have 
                entered into a written agreement that addresses 
                disposition of said articles, and the sale would not be 
                authorized under such agreement.
            (2) Sales authorized in certain cases.--Subject to the 
        provisions of subsection (a) and of paragraph (1), the 
        Librarian shall be authorized to sell copies, phonorecords, or 
        identifying material deposited in the Copyright Office under 
        title 17, United States Code, where--
                    (A) the articles are sold exclusively as scrap for 
                purposes of recycling, under an agreement with the 
                purchaser that they will not be resold or used for any 
                other purpose; or
                    (B) the Library of Congress has owned the articles 
                for at least 5 years, or there is no reasonable 
                likelihood that their later resale or commercial use by 
                the purchaser or the purchaser's successors in title 
                would materially impair the market value of the work.
            (3) Sales authorized; expired copyrights.--Notwithstanding 
        the provisions of paragraphs (1) and (2), the Librarian shall 
        be authorized to sell any articles deposited under title 17, 
        United States Code, when the term of copyright in the work has 
        expired.
    (c) Other Sales Not Authorized.--The Librarian shall not be 
authorized to sell--
            (1) materials received by the Library under a written deed 
        of gift, a license, or other contractual agreement signed by 
        the Library, where the agreement expressly precludes the 
        transfer of ownership or possession by the Library of such 
        material, or the proposed sale is not authorized by the terms 
        of the agreement;
            (2) audio books, braille books, and sound production 
        equipment distributed by the National Library Service for the 
        Blind and Physically Handicapped; or
            (3) products of the Congressional Research Service, unless 
        approved by Congress.

SEC. 302. ACCEPTANCE OF PAYMENTS OR RESTITUTION.

    The Librarian is authorized to accept all sums tendered as payment 
or restitution for lost, stolen, damaged, or destroyed books, 
periodicals, newspapers, phonorecords, or other materials from the 
Library's collection if such sums are--
            (1) ordered by any judicial or administrative authority to 
        be paid to the Library; or
            (2) received from a borrower or other Library user.

SEC. 303. RETENTION OF PROCEEDS OF SALES, PAYMENTS, OR RESTITUTION.

    (a) Account Established.--There is established in the Treasury of 
the United States an account consisting of the proceeds of any sale 
described in section 301 or of any payment or restitution described in 
section 302.
    (b) Expenditures.--Amounts in the account described in subsection 
(a) shall be available to the Librarian, to the extent provided in 
appropriations Acts, until expended, for the acquisition of books, 
periodicals, phonorecords, and other materials, including the costs of 
administering the national and international acquisition programs of 
the Library.

  TITLE IV--AMENDMENTS TO THE LIBRARY OF CONGRESS TRUST FUND BOARD ACT

SEC. 401. ADDITIONAL MEMBERSHIP ON THE LIBRARY OF CONGRESS TRUST FUND 
              BOARD.

    The first sentence of the first paragraph of the first section of 
the Act entitled ``An Act to create a Library of Congress Trust Fund 
Board, and for other purposes'', approved March 3, 1925 (2 U.S.C. 154), 
is amended by inserting after ``the chairman'' the following: ``and the 
vice chairman''.

SEC. 402. LIMIT ON AMOUNT ON DEPOSIT IN THE PERMANENT LOAN ACCOUNT, 
              UNITED STATES TREASURY.

    The proviso in the third undesignated paragraph of section 2 of the 
Act entitled ``An Act to create a Library of Congress Trust Fund Board, 
and for other purposes'', approved March 3, 1925 (2 U.S.C. 158), is 
amended by striking out ``$10,000,000'' and inserting in lieu thereof 
``$20,000,000''.

SEC. 403. TEMPORARY INVESTMENT AUTHORITY.

    Section 2 of the Act entitled ``An Act to create a Library of 
Congress Trust Fund Board, and for other purposes'', approved March 3, 
1925, is amended--
            (1) in the third undesignated paragraph (2 U.S.C. 158), by 
        inserting after ``subject to'' the following: ``subsequent''; 
        and
            (2) in the second sentence of the fourth undesignated 
        paragraph (2 U.S.C. 158a), by inserting after ``retained'' the 
        following: ``by the Librarian''.

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

    Section 4 of the Act entitled ``An Act to create a Library of 
Congress Trust Fund Board, and for other purposes'', approved March 3, 
1925 (2 U.S.C. 160), is amended by adding at the end the following new 
undesignated paragraph:
    ``Gifts or bequests accepted by the Librarian under the authority 
of this section may subsequently be offered by the Librarian to the 
Board in cases where the Librarian determines, and the Board agrees, 
that the purposes of the gift or bequest would best be accomplished by 
the Board's authority to invest and reinvest monies or securities 
donated or bequeathed.''.

TITLE V--AMENDMENTS TO COPYRIGHT ARBITRATION ROYALTY PANELS LEGISLATION

SEC. 501. ARBITRATION PROCEEDINGS.

    Section 802(c) of title 17, United States Code, is amended by 
striking out the last two sentences.

SEC. 502. ADMINISTRATIVE MATTERS.

    Section 802(h) of title 17, United States Code, is amended by 
striking out paragraph (1), by redesignating paragraph (2) as paragraph 
(5), and by inserting after the section heading the following new 
paragraphs:
            ``(1) Deduction or assessment of costs of the library of 
        congress and the copyright office.--The Librarian of Congress 
        and the Register of Copyrights may, to the extent not otherwise 
        provided under this title, deduct from royalty fees deposited 
        or collected under this title the reasonable costs incurred by 
        the Library of Congress and the Copyright Office under this 
        chapter. Such deduction may be made before the fees are 
        distributed to any copyright claimants. If no royalty pool 
        exists from which their costs can be deducted, the Librarian of 
        Congress and the Copyright Office may assess their reasonable 
        costs directly to the parties to the most recent relevant 
        arbitration proceeding.
            ``(2) Deduction of costs of the copyright arbitration 
        royalty panels in distribution proceedings from royalty fees.--
        In distribution proceedings, the Librarian of Congress and the 
        Register of Copyrights may deduct from royalty fees deposited 
        or collected under this title the reasonable costs incurred by 
        the copyright arbitration royalty panels, and pay the 
        arbitrators from such deductions at such intervals and in such 
        manner as the Librarian of Congress shall by regulation 
        provide. Such deduction may be made before the fees are 
        distributed to any copyright claimants. Claimants shall bear 
        the costs of the copyright arbitration royalty panels in direct 
        proportion to their share of the distribution.
            ``(3) Payment of costs of the copyright arbitration royalty 
        panels in ratemaking proceedings.--In ratemaking proceedings, 
        the Librarian of Congress and the Register of Copyrights may 
        require the parties to pay the costs of the copyright 
        arbitration royalty panels to the Librarian of Congress who 
        shall, in turn, make payments to the arbitrators, at such 
        intervals and in such manner as the Librarian of Congress shall 
        by regulation provide. The parties to such proceedings shall 
        bear the entire cost thereof in such manner and proportion as 
        the arbitration panels shall direct.
            ``(4) Payment and status of the arbitrators.--Arbitrators 
        are independent contractors acting on behalf of the United 
        States. Arbitrators shall be paid pursuant to a signed 
        agreement between the Library of Congress and the 
        arbitrators.''.

                   TITLE VI--SUPPLEMENTARY PROVISIONS

SEC. 601. PRESERVATION OF SECURITY CLASSIFICATION.

    (a) In General.--Notwithstanding any other provision of this Act, 
the Librarian of Congress shall respect and preserve the security 
classification of any scientific or technical information, data, 
patents, inventions, or discoveries in, or coming into, the possession 
or control of the Library of Congress. The President or a designee 
shall certify the classified status of any classified items received by 
the Librarian of Congress as being essential in the interest of 
national defense.
    (b) Effect on Other Laws.--Nothing in this Act shall be construed 
as modifying or limiting any other statute relating to the 
classification of information for reasons of national defense or 
security.

SEC. 602. APPLICATION OF ACT.

    (a) Copyright.--Subject to the provisions of sections 501 and 502, 
nothing in this Act shall be construed as modifying or limiting any 
provision of title 17, United States Code.
    (b) CRS.--In keeping with the intent and purposes of provisions of 
section 203 of the Legislative Reorganization Act of 1946 (2 U.S.C. 
166)--
            (1) the resources of the Congressional Research Service 
        shall not be utilized to generate fee-based research and 
        information services; and
            (2) the products of the Congressional Research Service 
        shall not be marketed or published by the Library of Congress 
        without prior approval of either the Committee on House 
        Administration of the House of Representatives or the Senate 
        Committee on Rules and Administration.

SEC. 603. REGULATIONS.

    Pursuant to the first paragraph under the heading ``library of 
congress'' in the first section of the Act entitled ``An Act making 
appropriations for the legislative, executive, and judicial expenses of 
the Government for the fiscal year ending June thirtieth, eighteen 
hundred and ninety-eight, and for other purposes'', approved February 
19, 1897 (2 U.S.C. 136), the Librarian of Congress shall promulgate 
such regulations as are necessary to implement this Act.

SEC. 604. ANNUAL REPORT.

    The Librarian shall each year report the activities and financial 
transactions resulting from implementation of this Act in the annual 
report of the Librarian of Congress.

SEC. 605. REPEAL.

    The paragraph beginning ``The Librarian of Congress'' under the 
heading ``PUBLIC PRINTING AND BINDING'' in section 1 of the Act 
entitled ``An Act making appropriations for sundry civil expenses of 
the Government for the fiscal year ending June thirtieth, nineteen 
hundred and three, and for other purposes'', approved June 28, 1902 (2 
U.S.C. 150), is repealed.
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