I

104TH CONGRESS

1ST SESSION H. R. 1520

To amend National Foundation on the Arts and the Humanities Act of

1995; to establish the American Cultural Trust Fund, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 7, 1995

Mr. WILLIAMS introduced the following bill; which was referred to the

Committee on Economic and Educational Opportunities

A BILL

To amend National Foundation on the Arts and the Humanities Act of 1995; to establish the American Cultural

Trust 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; TABLE OF CONTENTS.

4 This Act may be cited as the ‘‘1% For Culture Act

5 of 1995’’.

6 SEC. 2. AMENDMENTS.

7 (a) AMENDMENT TO THE NATIONAL FOUNDATION

8 ON THE ARTS AND THE HUMANITIES ACT OF 1965.—The

9 National Foundation on the Arts and the Humanities Act
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1 of 1965 (20 U.S.C. 951–960) is amended to read as fol2 lows:

3 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 ‘‘(a) SHORT TITLE.—This Act may be cited as the

5 ‘Arts, Humanities, and Museums Act of 1995’.

6 ‘‘(b) TABLE OF CONTENTS.—The table of contents

7 of this Act is as follows:

‘‘Sec. 1. Short title; table of contents.

‘‘TITLE I—NATIONAL FOUNDATION ON THE ARTS AND THE

HUMANITIES

‘‘Sec. 101. Declaration of findings and purposes.

‘‘Sec. 102. National Foundation on the Arts and the Humanities.

‘‘TITLE II—NATIONAL ENDOWMENT FOR THE ARTS

‘‘Sec. 201. Definitions.

‘‘Sec. 202. National Endowment for the Arts.

‘‘Sec. 203. National Council on the Arts.

‘‘Sec. 204. National medal of arts.

‘‘Sec. 205. Administrative provisions.

‘‘Sec. 206. Authorization of appropriations.

‘‘TITLE III—NATIONAL ENDOWMENT FOR THE HUMANITIES

‘‘Sec. 301. Definitions.

‘‘Sec. 302. Establishment of the National Endowment for the Humanities.

‘‘Sec. 303. Establishment of the National Council on the Humanities.

‘‘Sec. 304. Administrative provisions.

‘‘Sec. 305. Authorization of appropriations.

‘‘TITLE IV—MUSEUM SERVICES

‘‘Sec. 401. Purpose.

‘‘Sec. 402. Institute of Museum Services; establishment.

‘‘Sec. 403. National Museum Services Board.

‘‘Sec. 404. Director of the Institute.

‘‘Sec. 405. Activities of the Institute.

‘‘Sec. 406. Contributions.

‘‘Sec. 407. Authorization of appropriations.

‘‘Sec. 408. Definitions.

‘‘TITLE V—AMERICAN CULTURAL TRUST FUND

‘‘Sec. 501. Establishment of American Cultural Trust Fund.

‘‘Sec. 502. Administration of trust fund.
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1 ‘‘TITLE I—NATIONAL FOUNDA2 TION ON THE ARTS AND THE

3 HUMANITIES

4 ‘‘SEC. 101. DECLARATION OF FINDINGS AND PURPOSES.

5 ‘‘The Congress finds and declares the following:

6 ‘‘(1) The arts and the humanities benefit and

7 belong to all the people of the United States. They

8 are essential to cultural survival and social, cultural,

9 and economic progress.

10 ‘‘(2) The encouragement and support of na11 tional progress and scholarship in the humanities

12 and the arts, while primarily a matter for private

13 and local initiative, are also appropriate matters of

14 concern to the Federal Government.

15 ‘‘(3) An advanced civilization must not limit its

16 efforts to science and technology alone but must give

17 full value and support to the other great branches

18 of scholarly and cultural activity in order to achieve

19 a better understanding of the past, a better analysis

20 of the present, and a better view of the future.

21 ‘‘(4) Democracy demands wisdom and vision in

22 its citizens. It must therefore foster and support a

23 form of education, and access to the arts and the

24 humanities, designed to make people of all back-
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1 grounds and wherever located masters of their tech2 nology and not its unthinking servants.

3 ‘‘(5) It is necessary and appropriate for the

4 Federal Government to further the advancement of

5 the humanities and the arts and the access of all

6 Americans to the humanities and the arts, in part7 nership with local, State, regional, and private agen8 cies, organizations, and individuals. In doing so, the

9 Government must be sensitive to the nature of pub10 lic support and the need to use public funding to ad11 vance the public good. Public funding of the arts

12 and humanities should contribute to public support

13 and confidence in the use of taxpayer funds. Public

14 funds provided by the Federal Government must ul15 timately serve public purposes the Congress defines

16 and must be subject to the conditions that tradition17 ally govern the use of public money.

18 ‘‘(6) Federal support of the arts and the hu19 manities reflects the high place accorded by the

20 American people to the Nation’s rich cultural herit21 age and to the fostering of mutual respect for the

22 diverse beliefs and values of all persons and groups.

23 ‘‘(7) The practice of art and the study of the

24 humanities require constant dedication and devotion.

25 While no government can call a great artist or schol-
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1 ar into existence, it is necessary and appropriate for

2 the Federal Government to help create and sustain

3 not only a climate encouraging freedom of thought,

4 imagination, and inquiry but also the material condi5 tions facilitating the release of this creative talent.

6 ‘‘(8) The world leadership which has come to

7 the United States cannot rest solely upon superior

8 power, wealth, and technology, but must be solidly

9 founded upon worldwide respect and admiration for

10 the Nation’s high qualities as a leader in the realm

11 of ideas and of the spirit.

12 ‘‘(9) Americans should receive in school, back13 ground and preparation in the arts and humanities

14 to enable them to recognize and appreciate the aes15 thetic dimensions of our lives, the diversity of excel16 lence that comprises our cultural heritage, and artis17 tic and scholarly expression. Increased access to the

18 arts and the humanities for all Americans, including

19 diverse cultures and urban and rural populations, re20 quires encouraging and developing quality education

21 in the arts and humanities at all levels, in conjunc22 tion with programs of lifelong learning in the arts

23 and humanities for all age groups and with formal

24 systems of elementary, secondary, and postsecondary

25 education; developing and stimulating research to
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1 teach quality education in the arts and humanities;

2 and encouraging and facilitating the work of schol3 ars, artists, arts institutions, and Federal, State, re4 gional, and local agencies in the area of education

5 in the arts and humanities.

6 ‘‘(10) It is vital to a democracy to honor and

7 preserve its multicultural artistic heritage as well as

8 support new ideas, and therefore it is essential to

9 provide financial assistance to its artists and the or10 ganizations that support their work.

11 ‘‘(11) To fulfill its educational mission, achieve

12 an orderly continuation of a free society, and provide

13 models of excellence to the American people, the

14 Federal Government must transmit the achievement

15 and values of civilization from the past via the

16 present to the future, and make widely available the

17 greatest achievements of art.

18 ‘‘(12) In order to implement these findings and

19 purposes, it is desirable to establish a National

20 Foundation on the Arts and the Humanities.

21 ‘‘SEC. 102. NATIONAL FOUNDATION ON THE ARTS AND THE

22 HUMANITIES.

23 ‘‘(a) There is established a National Foundation on

24 the Arts and the Humanities (hereinafter referred to as

25 the ‘Foundation’), which shall be composed of a National
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1 Endowment for the Arts, a National Endowment for the

2 Humanities, a Federal Council on the Arts and the Hu3 manities, and an Institute of Museum Services.

4 ‘‘(b) The purpose of the Foundation shall be to de5 velop and promote a broadly conceived national policy of

6 support for the humanities and the arts in the United

7 States and for institutions which preserve the cultural her8 itage of the United States pursuant to this title.

9 ‘‘(c) In the administration of this Act no department,

10 agency, officer, or employee of the United States shall ex11 ercise any direction, supervision, or control over the policy

12 determination, personnel, or curriculum, or the adminis13 tration or operation of any school or other non-Federal

14 agency, institution, organization, or association.

15 ‘‘(d) In any case in which any money or other prop16 erty is donated, bequeathed, or devised to the Foundation

17 without designation of the Endowment for the benefit of

18 which the gift is intended, each Chairperson of an Endow19 ment shall have authority to receive such gift. The gift

20 shall be deemed to have been to that Endowment whose

21 function it is to carry out the purpose of any condition

22 or restriction on the gift. Unless the Chairpersons of the

23 Endowments agree otherwise, the gift shall be deemed to

24 have been in equal shares to each Endowment if the gift

25 is unrestricted, if some purposes of a restriction are cov-
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1 ered by one Endowment and some by the other Endow2 ment, or if one or more of the purposes of a restriction

3 is covered by both Endowments.

4 ‘‘(e) For the purpose of the income tax, gift tax, and

5 estate tax laws of the United States, any money or other

6 property donated, bequeathed, or devised to the Founda7 tion or one of its Endowments and received by the Chair8 person of an Endowment pursuant to authority derived

9 under this section shall be deemed to have been donated,

10 bequeathed, or devised to or for the use of the United

11 States.

12 ‘‘TITLE II—NATIONAL

13 ENDOWMENT FOR THE ARTS

14 ‘‘SEC. 201. DEFINITIONS.

15 ‘‘As used in this title—

16 ‘‘(1) the term ‘the arts’ includes, but is not lim17 ited to, music, dance, drama, creative writing, archi18 tecture, design, painting, sculpture, photography,

19 motion pictures, television, radio, film, videotape,

20 and sound recording; folk and traditional arts prac21 ticed by the diverse peoples of this country; graphic,

22 digital, craft, and multimedia arts; the arts related

23 to the presentation, performance, execution, and ex24 hibition of such major art forms; and the study and

25 application of the arts to the human environment;
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1 ‘‘(2) the term ‘Challenge funds’ means those

2 funds appropriated under section 206(a)(3)(A) for

3 the purpose of the Challenge Program, as that Pro4 gram is authorized in section 202(e);

5 ‘‘(3) the term ‘developing arts organization’

6 means a local arts organization of high artistic

7 promise which—

8 ‘‘(A) serves as an important source of local

9 arts programming in a community; and

10 ‘‘(B) has the potential to develop artis11 tically and institutionally to broaden public ac12 cess to the arts in rural and innercity areas and

13 other areas that are underserved artistically;

14 ‘‘(4) the term ‘determined to be obscene’ means

15 determined, in a final judgment of a court of record

16 and of competent jurisdiction in the United States,

17 to be obscene;

18 ‘‘(5) the term ‘final judgment’ means a judg19 ment that is either—

20 ‘‘(A) not reviewed by any other court that

21 has authority to review such judgment; or

22 ‘‘(B) is not reviewable by any other court;

23 ‘‘(6) for purposes of programs established pur24 suant to section 202, the term ‘grant’ includes loan,

25 contract, and cooperative agreement;
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1 ‘‘(7) the term ‘group’ includes any State or

2 other public agency, and any nonprofit society, insti3 tution, organization, association, museum, or estab4 lishment in the United States, whether or not incor5 porated;

6 ‘‘(8) the term ‘local arts agency’ means a com7 munity organization, or an agency of local govern8 ment, that primarily provides financial support, serv9 ices, or other programs for a variety of artists and

10 arts organizations, for the benefit of the community

11 as a whole;

12 ‘‘(9) the term ‘obscene’ means with respect to

13 a project, production, or workshop, that—

14 ‘‘(A) the average person, applying contem15 porary community standards, would find that

16 such project, production, or workshop, when

17 taken as a whole, appeals to the prurient inter18 est;

19 ‘‘(B) such project, production, or workshop

20 depicts or describes sexual conduct in a pa21 tently offensive way; and

22 ‘‘(C) such project, production, or work23 shop, when taken as a whole, lacks serious lit24 erary, artistic, political or scientific value;
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1 ‘‘(10) the term ‘production’ means plays (with

2 or without music), ballet, dance, choral perform3 ances, concerts, recitals, operas, exhibitions, read4 ings, motion pictures, television, radio, film, video5 tape, sound recordings, and any other activities in6 volving the execution or rendition of the arts and

7 meeting such standards as may be approved by the

8 Endowment;

9 ‘‘(11) the term ‘Program funds’ means those

10 funds appropriated under section 206(a)(1)(A) for

11 projects, productions, and workshops consistent with

12 those activities authorized in section 202;

13 ‘‘(12) the term ‘project’ means programs orga14 nized to carry out the purposes of this title, includ15 ing programs to foster American artistic creativity,

16 to commission works of art, to create opportunities

17 for individuals to develop artistic talents when car18 ried on as a part of a program otherwise included

19 in this definition, and to develop and enhance the

20 widest public access, knowledge and understanding

21 of the arts, and includes, where appropriate, rental

22 or purchase of facilities, purchase or rental of land,

23 and acquisition of equipment. Such term also in24 cludes—

25 ‘‘(A) the renovation of facilities if—
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1 ‘‘(i) the amount of the expenditure of

2 Federal funds for such purpose in the case

3 of any project does not exceed $250,000;

4 or

5 ‘‘(ii) two-thirds of the members of the

6 National Council on the Arts (who are

7 present and voting) approve of the grant

8 involving an expenditure for such purpose;

9 and

10 ‘‘(B) for purposes of Challenge grants

11 under section 202(e), the construction of facili12 ties if—

13 ‘‘(i) such construction is for dem14 onstration purposes or under unusual cir15 cumstances where there is no other man16 ner in which to accomplish an artistic pur17 pose; and

18 ‘‘(ii) two-thirds of the members of the

19 National Council on the Arts (who are

20 present and voting) approve of the grant

21 involving an expenditure for such purpose;

22 ‘‘(13) the term ‘regional group’ means any

23 multistate group, whether or not representative of

24 contiguous States;
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1 ‘‘(14) the term ‘State’ includes, in addition to

2 the several States, the Commonwealth of Puerto

3 Rico, the District of Columbia, Guam, American

4 Samoa, the Northern Mariana Islands, and the Vir5 gin Islands;

6 ‘‘(15) the term ‘Treasury funds’ means those

7 funds appropriated under section 206(a)(2)(A) for

8 the purposes of designated projects and productions,

9 consistent with those activities authorized in section

10 202; and

11 ‘‘(16) the term ‘workshop’ means a program

12 the primary purpose of which is to encourage the ar13 tistic development or enjoyment of amateur, student,

14 or other participants.

15 ‘‘SEC. 202. NATIONAL ENDOWMENT FOR THE ARTS.

16 ‘‘(a) There is established within the Foundation a

17 National Endowment for the Arts.

18 ‘‘(b)(1) The Endowment shall be headed by a chair19 person, to be known as the Chairperson of the National

20 Endowment for the Arts, who shall be appointed by the

21 President, by and with the advice and consent of the Sen22 ate.

23 ‘‘(2) The term of office of the Chairperson shall be

24 four years and the Chairperson shall be eligible for re25 appointment. The provisions of this subsection shall apply
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1 to any person appointed to fill a vacancy in the office of

2 Chairperson. Upon expiration of the Chairperson’s term

3 of office the Chairperson shall serve until the Chair4 person’s successor shall have been appointed and shall

5 have qualified.

6 ‘‘(c) The Chairperson, with the advice of the National

7 Council on the Arts, is authorized to establish and carry

8 out a program of grants to groups, or, in appropriate

9 cases, individuals of exceptional talent engaged in or con10 cerned with the arts, for the purpose of enabling them to

11 provide or support projects, productions, and workshops

12 that—

13 ‘‘(1) have substantial national or international

14 artistic and cultural significance, giving emphasis to

15 American creativity and cultural diversity and to the

16 maintenance and encouragement of professional ex17 cellence;

18 ‘‘(2) meet professional standards of authenticity

19 or tradition, irrespective of origin, which are of sig20 nificant merit and which, without such assistance,

21 might otherwise be unavailable to our citizens for ge22 ographic or economic reasons;

23 ‘‘(3) will encourage and assist artists and en24 able them to achieve wider distribution of their

25 works, to work in residence at an educational or cul-
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1 tural institution, to achieve standards of professional

2 excellence, or to be honored for their significant con3 tributions;

4 ‘‘(4) have substantial artistic and cultural sig5 nificance and that reach, or reflect the culture of a

6 racial, ethnic, inner city, rural, or tribal community;

7 ‘‘(5) will encourage and develop public access,

8 knowledge, education, understanding, enjoyment,

9 and appreciation of the arts;

10 ‘‘(6) encourage arts at the local level;

11 ‘‘(7) enhance managerial and organizational

12 skills and capabilities;

13 ‘‘(8) use technology, including film, radio, video,

14 computers, and other advances in telecommuni15 cations to broaden public access to the arts; or

16 ‘‘(9) involve otherwise relevant activities, includ17 ing surveys, research, evaluation, planning, and pub18 lications, relating to the purposes of this subsection.

19 Any grant under this subsection awarded with Program

20 funds must be matched in a ratio of at least one non21 Federal dollar for every one Federal dollar. Any grant

22 under this subsection awarded with Treasury funds must

23 be matched in a ratio of at least three non-Federal dollars

24 for every one Federal dollar.
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1 ‘‘(d)(1) The Chairperson, with the advice of the Na2 tional Council on the Arts, is authorized to establish and

3 carry out a program of grants to assist the several States

4 in supporting projects, productions, or workshops that

5 meet the standards enumerated in subsection (c) of this

6 section, and in developing projects, productions, or work7 shops in the arts in such a manner as will furnish ade8 quate programs, facilities, and services in the arts to all

9 the people and communities in each of the several States.

10 ‘‘(2) In order to receive assistance under this sub11 section in any fiscal year, a State shall submit an applica12 tion for such grants at such time as shall be specified by

13 the Chairperson and accompany such application with a

14 plan which the Chairperson finds—

15 ‘‘(A) designates or provides for the establish16 ment of a State agency (hereinafter in this section

17 referred to as the ‘State agency’) as the sole agency

18 for the administration of the State plan;

19 ‘‘(B) provides that funds paid to the State

20 under this subsection will be expended solely on

21 projects, productions, or workshops approved by the

22 State agency which carry out one or more of the ob23 jectives of subsection (c) of this section;

24 ‘‘(C) provides that the State agency will make

25 such reports, in such form and containing such in-
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1 formation, as the Chairperson may from time to

2 time require, including a description of the progress

3 made toward achieving the goals of the State plan;

4 ‘‘(D) provides—

5 ‘‘(i) assurances that the State agency has

6 held, after reasonable notice, public meetings in

7 the State to allow all groups of artists, inter8 ested organizations, and the public to present

9 views and make recommendations regarding the

10 State plan; and

11 ‘‘(ii) a summary of such recommendations

12 and the State agency’s response to such rec13 ommendations; and

14 ‘‘(E) contains—

15 ‘‘(i) a description of the level of participa16 tion during the most recent preceding year for

17 which information is available by artists, art18 ists’ organizations, and arts organizations in

19 projects, productions, or workshops for which

20 financial assistance is provided under this sub21 section;

22 ‘‘(ii) for the most recent preceding year for

23 which information is available, a description of

24 the extent projects, productions, or workshops

25 receiving financial assistance from the State
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1 agency are available to all people and commu2 nities in the State; and

3 ‘‘(iii) a description of projects, productions,

4 or workshops receiving financial assistance

5 under this subsection that exist or are being de6 veloped to secure wider participation of artists,

7 artists’ organizations, and arts organizations

8 identified under clause (i) of this subparagraph

9 or that address the availability of the arts to all

10 people or communities identified under clause

11 (ii) of this subparagraph.

12 No application may be approved unless the accompanying

13 plan satisfies the requirements specified in this subsection.

14 ‘‘(3) Of the sums available to carry out this sub15 section for any fiscal year, each State which has a plan

16 approved by the Chairperson shall be allotted at least

17 $200,000. If the sums appropriated are insufficient to

18 make the allotments under the preceding sentence in full,

19 such sums shall be allotted among such States in equal

20 amounts. In any case where the sums available to carry

21 out this subsection for any fiscal year are in excess of the

22 amount required to make the allotments under the first

23 sentence of this paragraph—

24 ‘‘(A) the amount of such excess which is no

25 greater than 25 per centum of the sums available to
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1 carry out this subsection for any fiscal year shall be

2 available only to the Chairperson for making grants

3 under this subsection to States and regional groups;

4 and

5 ‘‘(B) the amount of such excess, if any, which

6 remains after reserving in full for the Chairperson

7 the amount required under clause (A) shall be allot8 ted among the States which have plans approved by

9 the Chairperson in equal amounts but in no event

10 shall any State be allotted less than $200,000.

11 ‘‘(4)(A) The amount of each allotment to a State for

12 any fiscal year under this subsection shall be available to

13 each State, which has a plan approved by the Chairperson

14 in effect on the first day of such fiscal year, to pay not

15 more than 50 per centum of the total cost of any project

16 or production described in paragraph (1). The amount of

17 any allotment made under paragraph (3) for any fiscal

18 year which exceeds $125,000 shall be available, at the dis19 cretion of the Chairperson, to pay up to 100 per centum

20 of such cost of projects, productions, or workshops if such

21 projects, productions, or workshops would otherwise be

22 unavailable to the residents of that State: Provided, that

23 the total amount of any such allotment for any fiscal year

24 which is exempted from such 50 per centum limitation
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1 shall not exceed 20 per centum of the total of such allot2 ment for such fiscal year.

3 ‘‘(B) Any amount allotted to a State under the first

4 sentence of paragraph (3) for any fiscal year which is not

5 obligated by the State prior to 60 days prior to the end

6 of the fiscal year for which such sums are appropriated

7 shall be available for making grants to regional groups.

8 ‘‘(C) Funds made available under this subsection

9 shall not be used to supplant non-Federal funds.

10 ‘‘(D) For purposes of paragraph (3)(B), the term

11 ‘State’ includes, in addition to the several States, only

12 those special jurisdictions specified in section 201(f) which

13 have a population of 200,000 or more, according to the

14 latest decennial census.

15 ‘‘(5) All amounts allotted or made available under

16 paragraph (3) for a fiscal year which are not granted to

17 a State during such year shall be available at the end of

18 such year to the National Endowment for the Arts for the

19 purpose of carrying out subsection (c) of this section.

20 ‘‘(e) The Chairperson, with the advice of the National

21 Council on the Arts, is authorized to establish and carry

22 out a Challenge Program of grants to cultural organiza23 tions and institutions for the purpose of strengthening

24 their quality by—
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1 ‘‘(1) providing administrative and management

2 improvements for cultural organizations and institu3 tions, particularly in the field of long-range financial

4 planning including, but not limited to, increasing

5 levels of community support and the range of con6 tributors to the programs of such cultural organiza7 tions and institutions;

8 ‘‘(2) fostering greater citizen involvement in

9 planning the cultural development of their commu10 nities and enabling cultural organizations and insti11 tutions to increase audience participation in and ap12 preciation of programs sponsored by the cultural or13 ganizations and institutions;

14 ‘‘(3) providing additional support and stimulat15 ing greater cooperation among State, local and pri16 vate cultural organizations and institutions to pro17 mote effective arts activity and to better serve the

18 communities in which the cultural organizations and

19 institutions are located; and

20 ‘‘(4) stimulating artistic activity and awareness

21 which are in keeping with the varied cultural tradi22 tions of this Nation.

23 Challenge funds must be matched in a ratio of at least

24 three non-Federal dollars for every one Federal dollar.
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1 ‘‘(f) The Chairperson of the National Endowment for

2 the Arts, with the advice of the National Council on the

3 Arts, is authorized to carry out a program of grants to

4 States for the purposes of—

5 ‘‘(1) enhancing the artistic capabilities of devel6 oping arts organizations through artistic, pro7 grammatic, and staff development;

8 ‘‘(2) providing technical assistance to develop9 ing arts organizations to improve managerial and or10 ganizational skills, financial systems management,

11 and long-range fiscal planning; and

12 ‘‘(3) stimulating artistic activity and awareness,

13 and broadening public access to the arts, in rural,

14 innercity and other areas that are underserved artis15 tically.

16 Grants under this subsection are subject to the matching

17 requirements set forth in subsection (c).

18 ‘‘(g) The Chairperson of the National Endowment for

19 the Arts, with the advice of the National Council on the

20 Arts, is authorized to establish and carry out a program

21 of grants to any State or other public agency, individual,

22 artist, any nonprofit society, performing and

23 nonperforming arts and educational institution or organi24 zation, association, or museum in the United States, in

25 order to foster and encourage exceptional talent, public
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1 knowledge, understanding, and appreciation of the arts,

2 and to support the education, training, and development

3 of this Nation’s artists, through projects, productions, and

4 workshops that will—

5 ‘‘(1) promote and improve the availability of

6 arts instruction and improve the quality of arts edu7 cation through support of life-long learning in the

8 arts;

9 ‘‘(2) enhance the quality of arts instruction in

10 programs of teacher education;

11 ‘‘(3) develop arts faculty resources and talents;

12 ‘‘(4) support and encourage the development of

13 improved curriculum materials in the arts;

14 ‘‘(5) improve evaluation and assessment of edu15 cation in the arts programs and instruction;

16 ‘‘(6) foster cooperative programs with the De17 partment of Education and other Federal agencies

18 and encourage partnerships between arts and edu19 cation agencies and organizations at State and local

20 levels as well as among arts organizations, busi21 nesses, and educational and cultural institutions;

22 ‘‘(7) support apprenticeships, internships, and

23 other career oriented work-study experiences for art24 ists and arts teachers, and encourage residencies of

25 artists at all educational levels;
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1 ‘‘(8) support the use of technology and im2 proved facilities and resources in education in the

3 arts programs at all levels; and

4 ‘‘(9) foster the development of demonstration

5 projects, demonstration productions, demonstration

6 workshops, and demonstration programs in arts edu7 cation and collect, and make available to the public,

8 information on their implementation and effective9 ness.

10 Grants under this subsection are subject to the matching

11 requirements set forth in subsection (c).

12 ‘‘(h) The Chairperson of the National Endowment for

13 the Arts shall, in ongoing consultation with State and local

14 agencies, relevant organizations, and relevant Federal

15 agencies, continue to develop and implement a practical

16 system of national information and data collection and

17 public dissemination on the arts, artists and arts groups,

18 and their audiences. Such system shall include artistic and

19 financial trends in the arts, trends in audience participa20 tion, and trends in arts education on national, regional,

21 and State levels. Such system shall also include informa22 tion regarding the availability of the arts to various audi23 ence segments, including rural communities. Such system

24 shall be used, along with a summary of the data submitted

25 with State plans under subsection (d) of this section, to
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1 prepare a periodic report on the state of the arts in the

2 Nation. The state of the arts report shall include a de3 scription of the availability of the Endowment’s programs

4 to emerging, rural, and culturally diverse artists, arts or5 ganizations, and communities and of the participation by

6 such artists, organizations, and communities in such pro7 grams. The state of the arts report shall be submitted to

8 the President and the Congress, and provided to the

9 States, not later than October l, l996, and quadrennially

10 thereafter.

11 ‘‘(i) No grant shall be made under this section except

12 upon application therefor which is submitted to the Na13 tional Endowment for the Arts in accordance with proce14 dures established by the Chairperson. In establishing such

15 procedures, the Chairperson shall ensure that—

16 ‘‘(1) artistic excellence and artistic merit are

17 the criteria by which applications are judged by re18 view panels, taking into consideration general stand19 ards of decency and respect for the diverse beliefs

20 and values of the American public;

21 ‘‘(2) in selecting individuals and groups of ex22 ceptional talent as recipients of financial assistance,

23 the Chairperson shall give particular regard to artis24 tically underserved areas and artists and artistic
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1 groups that have traditionally been

2 underrepresented;

3 ‘‘(3) applications and awards of financial assist4 ance are consistent with the purposes of this section.

5 Such procedures shall clearly indicate that obscenity

6 is without artistic merit, is not protected speech, and

7 shall not be funded. Projects, productions, and work8 shops that are determined to be obscene are prohib9 ited from receiving financial assistance under this

10 title from the National Endowment for the Arts.

11 The disapproval or approval of an application by the

12 Chairperson shall not be construed to mean, and shall not

13 be considered as evidence that, the project, production, or

14 workshop, for which the applicant requested financial as15 sistance, is or is not obscene.

16 ‘‘(j) The Chairperson of the National Endowment for

17 the Arts shall utilize advisory panels as the first step in

18 the review of applications, and to make recommendations

19 to the National Council on the Arts in all cases except

20 cases in which the Chairperson exercises authority dele21 gated under section 203(f). When reviewing applications,

22 such panels shall recommend applications for projects,

23 productions, and workshops solely on the basis of artistic

24 excellence and artistic merit. The Chairperson shall estab25 lish procedures to—
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1 ‘‘(1) ensure that all panels are composed, to the

2 extent practicable, of individuals reflecting a wide

3 geographic, ethnic, and minority representation as

4 well as individuals reflecting diverse artistic and cul5 tural points of view;

6 ‘‘(2) ensure that all panels include representa7 tion of lay individuals who are knowledgeable about

8 the arts but who are not engaged in the arts as a

9 profession and are not employees of either artists’

10 organizations or arts organizations;

11 ‘‘(3) ensure that, when feasible, the procedures

12 used by panels to carry out their responsibilities are

13 standardized;

14 ‘‘(4) require panels—

15 ‘‘(A) to create written records summariz16 ing—

17 ‘‘(i) all meetings and discussions of

18 such panel; and

19 ‘‘(ii) the recommendations made by

20 such panel to the Council; and

21 ‘‘(B) make such records available to the

22 public in a manner that protects the privacy of

23 individual applicants and panel members;

24 ‘‘(5) require, when necessary and feasible, the

25 use of site visits to view the work of the applicant
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1 and deliver a written report on the work being re2 viewed, in order to assist panelists in making their

3 recommendations; and

4 ‘‘(6) require that the membership of each panel

5 change substantially from year to year and to pro6 vide that each individual is ineligible to serve on a

7 panel for more than 3 consecutive years.

8 In making appointments to panels, the Chairperson shall

9 ensure that an individual who has a pending application

10 for financial assistance under this chapter, or who is an

11 employee or agent of an organization with a pending appli12 cation, does not serve as a member of any panel before

13 which such application is pending. The prohibition de14 scribed in the preceding sentence shall commence with re15 spect to such individual beginning on the date such appli16 cation is submitted and shall continue for so long as such

17 application is pending.

18 ‘‘(k) It shall be a condition of the receipt of financial

19 assistance provided under this section by the Chairperson

20 that—

21 ‘‘(1) each applicant for such assistance include

22 in its application—

23 ‘‘(A) a detailed description of the proposed

24 project, production, or workshop for which as25 sistance is requested; and
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1 ‘‘(B) a timetable for the completion of such

2 proposed project, production, or workshop.

3 ‘‘(2) each grant recipient shall agree to and

4 comply with requirements to submit—

5 ‘‘(A) an assurance that the grant recipient

6 will strive to meet the standard of artistic excel7 lence and artistic merit;

8 ‘‘(B) interim reports, including an annual

9 report for each project, production or workshop

10 carried out during a period exceeding one year,

11 describing the grant recipient’s progress in car12 rying out such project, production, or workshop

13 and compliance with the conditions of receipt of

14 such assistance;

15 ‘‘(C) financial reports containing such in16 formation as the Chairperson deems necessary

17 to ensure that such financial assistance is ex18 pended in accordance with the terms and condi19 tions under which it is provided;

20 ‘‘(D) a final report to the Chairperson de21 scribing the project, production, or workshop

22 carried out with such financial assistance and

23 the grant recipient’s compliance with the condi24 tions of receipt of such assistance; and
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1 ‘‘(E) if practicable, as determined by the

2 Chairperson, a copy of such project or produc3 tion.

4 The Chairperson shall determine the appropriate form and

5 timing of interim reporting for grant recipients. The final

6 report shall be due not later than 90 days after the end

7 of the period for which the grant recipient receives assist8 ance or the completion of the project, production, or work9 shop, whichever occurs earlier. The Chairperson may ex10 tend the 90-day period only if the recipient shows good

11 cause why such an extension should be granted.

12 ‘‘(l) The Chairperson of the National Endowment for

13 the Arts shall conduct a post-award evaluation of projects,

14 productions, and workshops for which financial assistance

15 is provided by the Endowment under section 202. Such

16 evaluation may include an audit to determine the accuracy

17 of the reports required to be submitted by recipients under

18 subsection (k).

19 ‘‘(m) The Chairperson shall establish procedures to

20 provide for the distribution of financial assistance to re21 cipients in installments except in those cases where the

22 Chairperson determines that installments are not prac23 ticable. In implementing any such installments, the Chair24 person shall ensure that—
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1 ‘‘(1) not more than two-thirds of such assist2 ance may be provided at the time such application

3 is approved; and

4 ‘‘(2) the remainder of such assistance may not

5 be provided until the Chairperson receives an in6 terim report described in subsection (k)(2)(B) and

7 finds that the recipient of such assistance is comply8 ing substantially with this section and with the con9 ditions under which such assistance is provided to

10 such recipient.

11 ‘‘(n) The Inspector General of the Endowment shall

12 conduct appropriate reviews to ensure that recipients of

13 financial assistance under this section comply with the ap14 plicable regulations and procedures established under this

15 title including regulations relating to accounting and fi16 nancial matters.

17 ‘‘(o) It shall be a condition of the receipt of any grant

18 under this section that the group or individual of excep19 tional talent or the State or State agency receiving such

20 grant furnish adequate assurances to the Secretary of

21 Labor that—

22 ‘‘(1) all professional performers and related or

23 supporting professional personnel (other than labor24 ers and mechanics with respect to whom labor

25 standards are prescribed in subsection (p) of this
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1 section) employed on projects or productions which

2 are financed in whole or in part under this section

3 will be paid, without subsequent deduction or rebate

4 on any account, not less than the minimum com5 pensation as determined by the Secretary of Labor

6 to be the prevailing minimum compensation for per7 sons employed in similar activities; and

8 ‘‘(2) no part of any project or production which

9 is financed in whole or in part under this section will

10 be performed or engaged in under working condi11 tions which are unsanitary or hazardous or dan12 gerous to the health and safety of the employees en13 gaged in such project or production. Compliance

14 with the safety and sanitary laws of the State in

15 which the performance or part thereof is to take

16 place shall be prima facie evidence of compliance.

17 The Secretary of Labor shall have the authority to

18 prescribe standards, regulations, and procedures as

19 the Secretary of Labor may deem necessary or ap20 propriate to carry out the provisions of this sub21 section.

22 ‘‘(p) It shall be a condition of the receipt of any grant

23 under this section that the group or individual of excep24 tional talent or the State or State agency receiving such

25 grant furnish adequate assurances to the Secretary of
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1 Labor that all laborers and mechanics employed by con2 tractors or subcontractors on construction projects as3 sisted under this section shall be paid wages at rates not

4 less than those prevailing on similar construction in the

5 locality as determined by the Secretary of Labor in accord6 ance with the Davis-Bacon Act, as amended (40 U.S.C.

7 276a-5). The Secretary of Labor shall have with respect

8 to the labor standards specified in this subsection the au9 thority and functions set forth in Reorganization Plan

10 Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z-15)

11 and section 2 of the Act of June 13, 1934, as amended

12 (40 U.S.C. 276c).

13 ‘‘(q) The Chairperson shall correlate the programs of

14 the National Endowment for the Arts, insofar as prac15 ticable, with existing Federal programs and with those un16 dertaken by other public agencies or private groups, and

17 shall develop the programs of the Endowment with due

18 regard to the contribution to the objectives of this title

19 which can be made by other Federal agencies under exist20 ing programs. The Chairperson may enter into inter21 agency agreements to promote or assist with the arts-re22 lated activities of other Federal agencies, on a reimburs23 able or nonreimbursable basis, and may use funds author24 ized to be appropriated for the purposes of this title for

25 the costs of such activities.
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1 ‘‘SEC. 203. NATIONAL COUNCIL ON THE ARTS.

2 ‘‘(a) There shall be, within the National Endowment

3 for the Arts, a National Council on the Arts (hereinafter

4 in this section referred to as the ‘Council’).

5 ‘‘(b) The Council shall be composed of the Chair6 person of the National Endowment for the Arts, who shall

7 be Chairperson of the Council, and twenty-six other mem8 bers appointed by the President, by and with the advice

9 and consent of the Senate, who shall be selected—

10 ‘‘(1) from among private citizens of the United

11 States who (A) are widely recognized for their broad

12 knowledge of, or expertise in, or for their profound

13 interest in, the arts and (B) have established records

14 of distinguished service, or achieved eminence, in the

15 arts;

16 ‘‘(2) so as to include practicing artists, civic

17 cultural leaders, members of the museum profession,

18 and others who are professionally engaged in the

19 arts; and

20 ‘‘(3) so as collectively to provide an appropriate

21 distribution of membership among the major art

22 fields.

23 The President is requested, in the making of such appoint24 ments, to give consideration to such recommendations as

25 may, from time to time, be submitted to the President by

26 leading national organizations in these fields. In making
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1 such appointments, the President shall give due regard to

2 equitable representation of women, racially and ethnically

3 diverse individuals, and individuals with disabilities who

4 are involved in the arts. Members of the Council shall be

5 appointed so as to represent equitably all geographical

6 areas in the United States.

7 ‘‘(c) Each member shall hold office for a term of six

8 years, and the terms of office shall be staggered. The

9 terms of office of all Council members shall expire on the

10 third day of September in the year of expiration. No mem11 ber shall be eligible for reappointment during the two-year

12 period following the expiration of such member’s term.

13 Any member appointed to fill a vacancy shall serve for

14 the remainder of the term for which such member’s prede15 cessor was appointed. Notwithstanding any other provi16 sion of this subsection, a member shall serve after the ex17 piration of such member’s term until such member’s suc18 cessor takes office.

19 ‘‘(d) Members shall receive compensation at a rate

20 to be fixed by the Chairperson but not to exceed the per

21 diem equivalent of the maximum rate of pay payable under

22 section 5376 of title 5 of the United States Code and be

23 allowed travel expenses including per diem in lieu of sub24 sistence, as authorized by law (section 5703 of title 5 of
36

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1 the United States Code) for persons in the Government

2 service employed intermittently.

3 ‘‘(e)(1) The Council shall meet at the call of the

4 Chairperson but not less often than twice during each cal5 endar year. Fourteen members of the Council shall con6 stitute a quorum. All policy meetings of the Council shall

7 be open to the public.

8 ‘‘(2) The Council shall—

9 ‘‘(A) create written records summarizing—

10 ‘‘(i) all meetings and discussions of the

11 Council; and

12 ‘‘(ii) the recommendations made by the

13 Council to the Chairperson;

14 ‘‘(B) make such records available to the public

15 in a manner that protects the privacy of individual

16 applicants, panel members, and Council members;

17 ‘‘(C) advise the Chairperson with respect to

18 policies, programs, and procedures for carrying out

19 the Chairperson’s functions, duties, or responsibil20 ities under this title, and review applications for fi21 nancial assistance under this subchapter and make

22 recommendations to the Chairperson with respect to

23 the approval of each application and the amount of

24 financial assistance (if any) to provide to each appli25 cant;
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•HR 1520 IH

1 ‘‘(D) make recommendations to the Chair2 person concerning—

3 ‘‘(i) whether to approve particular applica4 tions for financial assistance under this title

5 that have been determined by panels to have ar6 tistic excellence and artistic merit; and

7 ‘‘(ii) the amount of financial assistance the

8 Chairperson should provide with respect to each

9 such application the Council recommends for

10 approval.

11 ‘‘(f) The Chairperson shall not approve or disapprove

12 any application until the Chairperson has received the rec13 ommendation of the Council on such application. The

14 Chairperson shall have final authority to approve each ap15 plication, except that the Chairperson may only provide

16 to an applicant the amount of financial assistance rec17 ommended by the Council and may not approve an appli18 cation with respect to which the Council makes a negative

19 recommendation. In the case of an application or amend20 ment involving $35,000 or less or a change in the grant

21 amount of 20 percent or less, the Chairperson may ap22 prove or disapprove such request if such action is taken

23 pursuant to the terms of an expressed and direct delega24 tion of authority from the Council to the Chairperson, and

25 provided that each such action by the Chairperson shall
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1 be reported to the Council at its next regularly scheduled

2 meeting. Such action by the Chairperson shall be used

3 with discretion and shall not become a normal practice of

4 providing assistance. In addition, the terms of any such

5 delegation of authority shall not permit obligations for ex6 penditure of funds under such delegation for any fiscal

7 year which exceed an amount equal to 10 per centum of

8 the sums appropriated for that fiscal year pursuant to sec9 tion 206(a)(1)(A).

10 ‘‘SEC. 204. NATIONAL MEDAL OF ARTS.

11 ‘‘(a) There is hereby established a National Medal of

12 Arts, which shall be a medal of such design as is deemed

13 appropriate by the President, on the basis of recommenda14 tions submitted by the National Council on the Arts, and

15 which shall be awarded as provided in subsection (b) of

16 this section.

17 ‘‘(b)(1) The President shall from time to time award

18 the National Medal of Arts, on the basis of recommenda19 tions from the National Council on the Arts, to individuals

20 or groups who in the President’s judgment are deserving

21 of special recognition by reason of their outstanding con22 tributions to the excellence, growth, support, and availabil23 ity of the arts in the United States.

24 ‘‘(2) Not more than twelve of such medals may be

25 awarded in any calendar year.
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1 ‘‘(3) An individual may be awarded the National

2 Medal of Arts only if at the time such award is made such

3 individual—

4 ‘‘(A) is a citizen or other national of the United

5 States; or

6 ‘‘(B) is an alien lawfully admitted to the United

7 States for permanent residence who (i) has filed an

8 application or petition for naturalization in the man9 ner prescribed by section 334 of the Immigration

10 and Nationality Act (8 U.S.C. 1445) and (ii) is not

11 permanently ineligible to become a citizen of the

12 United States.

13 ‘‘(4) A group may be awarded the National Medal

14 of Arts only if such group is organized or incorporated

15 in the United States.

16 ‘‘(5) The presentation of the National Medal of Arts

17 shall be made by the President with such ceremonies as

18 the President may deem proper, including attendance by

19 appropriate Members of Congress.

20 ‘‘(c) Funds made available to the National Endow21 ment for the Arts shall be used to carry out this section.

22 ‘‘SEC. 205. ADMINISTRATIVE PROVISIONS.

23 ‘‘(a) In addition to any authorities vested in the

24 Chairperson by other provisions of this title, the Chair25 person of the National Endowment for the Arts in carry-
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1 ing out the Chairperson’s functions, shall have authority

2 to—

3 ‘‘(1) prescribe such regulations and procedures

4 as the Chairperson deems necessary governing the

5 manner in which the Chairperson’s functions shall

6 be carried out;

7 ‘‘(2) solicit, accept, receive, invest, and use

8 money and property donated, bequeathed, or devised

9 to such Endowment, either absolutely or in trust,

10 with or without a condition or restriction, including

11 a condition that the Chairperson use other funds of

12 the Endowment for the purposes of the gift, and to

13 use, sell, or otherwise dispose of such property for

14 purposes of carrying out the Endowment’s functions.

15 All such gifts shall be added to the appropriation for

16 the Endowment for purposes of carrying out the En17 dowment’s functions under this title;

18 ‘‘(3) appoint employees, subject to the civil

19 service laws, as necessary to carry out the Chair20 person’s functions, define their duties, and supervise

21 and direct their activities;

22 ‘‘(4) utilize experts and consultants, including

23 panels of experts, who may be employed as author24 ized by section 3109 of title 5, United States Code;
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1 ‘‘(5) accept and utilize the services of voluntary

2 and uncompensated personnel and reimburse them

3 for travel expenses, including per diem, as author4 ized by law (section 5703 of title 5 of the United

5 States Code) for persons in the Government service

6 employed without compensation;

7 ‘‘(6) make advance, progress, and other pay8 ments without regard to section 3324 of title 31,

9 United States Code;

10 ‘‘(7) rent office space in the District of Colum11 bia; and

12 ‘‘(8) make other necessary expenditures.

13 ‘‘(b) Any group shall be eligible for financial assist14 ance pursuant to this title only if—

15 ‘‘(1) no part of its net earnings inures to the

16 benefit of any private stockholder or stockholders, or

17 individual or individuals, and

18 ‘‘(2) donations to such group are allowable as

19 a charitable contribution under the standards of sec20 tion 170(c) of the Internal Revenue Code of 1986

21 (26 U.S.C. 170(c)).

22 ‘‘(c) Any loans made by the Chairperson under this

23 title shall be made in accordance with terms and condi24 tions approved by the Secretary of the Treasury.
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1 ‘‘(d) The Chairperson may waive matching require2 ments under section 202 for designated grantees, except

3 that not more than 20 percent of the funds allotted by

4 the National Endowment for the Arts for grants under

5 section 202 in any fiscal year may be available for grants

6 in that fiscal year without regard to such limitation.

7 ‘‘(e) The Chairperson of the National Endowment for

8 the Arts shall submit an annual report to the President

9 for transmittal to the Congress on or before the 15th day

10 of April of each year. The report shall summarize the ac11 tivities of the Endowment for the preceding year, and may

12 include such recommendations as the Chairperson deems

13 appropriate.

14 ‘‘(f) The National Council on the Arts may submit

15 an annual report to the President for transmittal to the

16 Congress on or before the 15th day of April of each year

17 setting forth a summary of its activities during the preced18 ing year or its recommendations for any measures which

19 it considers necessary or desirable.

20 ‘‘(g) Official publications of the Endowment under

21 this title may be supported without regard for the provi22 sions of section 501 of title 44, United States Code, only

23 if the Chairperson consults with the Joint Committee on

24 Printing of the Congress and the Chairperson submits to

25 the Committee on Labor and Human Resources of the
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1 Senate and the Committee on Economic and Educational

2 Opportunities of the House of Representatives a report

3 justifying any exemption from such section 501.

4 ‘‘(h) If any grant recipient substantially fails to sat5 isfy the purposes for which such financial assistance is

6 provided or the requirements of subsection (k) of section

7 202, as determined by the Chairperson, then the Chair8 person may—

9 ‘‘(1) for purposes of determining whether to

10 provide any subsequent financial assistance, take

11 into consideration the results of the post-award eval12 uation conducted under subsection (l) of section 202;

13 ‘‘(2) prohibit the recipient of such financial as14 sistance to use the name of, or in any way associate

15 such project, production, or program with the En16 dowment; and

17 ‘‘(3) if such project, production, or program is

18 published, require that the publication contain the

19 following statement: ‘The opinions, findings, conclu20 sions, and recommendations expressed herein do not

21 reflect the views of the National Endowment for the

22 Arts.’.

23 ‘‘(i) Whenever the Chairperson, after reasonable no24 tice and opportunity for hearing, finds that—
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1 ‘‘(1) a grantee is not complying substantially

2 with the provisions of this title;

3 ‘‘(2) a State agency is not complying substan4 tially with terms and conditions of its State plan ap5 proved under this title; or

6 ‘‘(3) any funds granted to a grantee or State

7 agency under this title have been diverted from the

8 purposes for which they were allotted or paid, the

9 Chairperson shall immediately notify the grantee or

10 State agency with respect to which such finding was

11 made that no further grants will be made under this

12 subtitle to such grantee or agency until there is no

13 longer any default or failure to comply or the diver14 sion has been corrected, or, if compliance or correc15 tion is impossible, until such grantee or agency re16 pays or arranges the repayment of the Federal funds

17 which have been improperly diverted or expended.

18 ‘‘(j)(1) If, after reasonable notice and opportunity for

19 a hearing on the record, the Chairperson determines that

20 a recipient of financial assistance provided under this title

21 by the Chairperson or any non-Federal entity, used such

22 financial assistance for a project, production, or workshop

23 that is determined to be obscene, then the Chairperson

24 shall require that until such recipient repays such assist25 ance (in such amount, and under such terms and condi-
45

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1 tions, as the Chairperson determines to be appropriate)

2 to the Endowment, no subsequent financial assistance be

3 provided under this title to such recipient.

4 ‘‘(2) Financial assistance repaid under this section to

5 the Endowment shall be deposited in the Treasury of the

6 United States and credited as miscellaneous receipts.

7 ‘‘(3)(A) This subsection shall not apply with respect

8 to financial assistance provided before October 1, 1990.

9 ‘‘(B) This subsection shall not apply with respect to

10 a project, production, or workshop after the expiration of

11 the 7-year period beginning on the latest date on which

12 financial assistance is provided under this title for such

13 project, production, or workshop.

14 ‘‘SEC. 206. AUTHORIZATION OF APPROPRIATIONS.

15 ‘‘(a)(1)(A) For the purpose of carrying out sub16 sections (c), (d), (f), and (g) of section 202, there are au17 thorized to be appropriated to the National Endowment

18 for the Arts such sums as may be necessary for fiscal

19 years 1996, 1997, 1998, 1999, 2000, and 2001.

20 ‘‘(B) Not less than 27.5 percent of the amount appro21 priated for the respective fiscal year under subsection (A)

22 shall be for carrying out section 202(d).

23 ‘‘(C) Not less than 7.5 percent of the amount appro24 priated for the respective fiscal year under subsection (A)

25 shall be for carrying out programs under section 202(f)(3)
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1 (relating to programs to expand public access to the arts

2 in rural and innercity areas). Not less than 50 percent

3 of the funds required by this clause to be used for carrying

4 out such programs shall be used for carrying out such pro5 grams in rural areas.

6 ‘‘(D) In any fiscal year in which the aggregate

7 amount of funds appropriated to the National Endowment

8 for the Arts under subsection (A) exceeds $175,000,000,

9 50 percent of such excess shall be available to carry out

10 section 202(g), except that in each fiscal year, the amount

11 made available to carry out section 202(g) shall not exceed

12 $40,000,000, in the aggregate.

13 ‘‘(2) There are authorized to be appropriated for each

14 fiscal year ending before October 1, 2001, to the National

15 Endowment for the Arts an additional amount for Treas16 ury Funds, equal to the sum of—

17 ‘‘(A) the total amounts received by such En18 dowment under section 205(a)(2), including the

19 value of property donated, bequeathed, or devised to

20 such Endowment; and

21 ‘‘(B) the total amounts received by the grantees

22 of such Endowment from non-Federal sources, in23 cluding the value of property donated, bequeathed,

24 or devised to such grantees, for use in carrying out

25 projects and other activities under section 202(c).
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1 ‘‘(3) There are authorized to be appropriated for each

2 fiscal year ending before October 1, 2001, to the National

3 Endowment for the Arts an additional amount for Chal4 lenge Funds, equal to the sum of—

5 ‘‘(A) the total amounts received by such En6 dowment under section 205(a)(2) for use in carrying

7 out activities under section 202(e); and

8 ‘‘(B) the total amounts received by the grantees

9 of such Endowment from non-Federal sources, in10 cluding the value of property donated, bequeathed,

11 or devised to such grantees, for use in carrying out

12 activities under section 202(e).

13 ‘‘(b)(1) Sums appropriated pursuant to subsection

14 (a) of this section for any fiscal year shall remain available

15 for obligation and expenditure until expended.

16 ‘‘(2) In order to afford adequate notice to interested

17 persons of available assistance under this title, appropria18 tions authorized under subsection (a) of this section are

19 authorized to be included in the measure making appro20 priations for the fiscal year preceding the fiscal year for

21 which such appropriations become available for obligation.

22 ‘‘(c) There are authorized to be appropriated to the

23 National Endowment for the Arts such sums as may be

24 necessary for fiscal years 1996, 1997, 1998, 1999, 2000,

25 and 2001, to administer the provisions of this title, or any
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1 other program for which the Chairperson of the National

2 Endowment for the Arts is responsible, including not to

3 exceed $100,000 for each such fiscal year for official re4 ception and representation expenses.

5 ‘‘TITLE III—NATIONAL ENDOW6 MENT FOR THE HUMANITIES

7 ‘‘SEC. 301. DEFINITIONS.

8 ‘‘As used in this title—

9 ‘‘(1) the term ‘humanities’ includes, but is not

10 limited to, the study and interpretation of the follow11 ing: language, both modern and classical; linguistics;

12 literature; history; jurisprudence; philosophy; archae13 ology; comparative religion; ethics; the history, criti14 cism, and theory of the arts; folklore and folklife;

15 those aspects of the social sciences which have hu16 manistic content and employ humanistic methods;

17 and the study and application of the humanities to

18 the human environment with particular attention to

19 reflecting our diverse heritage, traditions, and his20 tory and to the relevance of the humanities to the

21 current conditions of national life;

22 ‘‘(2) the term ‘project’ means programs orga23 nized to carry out the purposes of this title, such

24 term also includes—

25 ‘‘(A) the renovation of facilities if—
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1 ‘‘(i) the amount of the expenditure of

2 Federal funds for such purpose in the case

3 of any project does not exceed $250,000,

4 or

5 ‘‘(ii) two-thirds of the members of the

6 National Council on the Humanities (who

7 are present and voting) approve of the

8 grant or contract involving an expenditure

9 for such purpose; and

10 ‘‘(B) for purposes of sections 302(c)(10)

11 and 302(h) only, the construction of facilities

12 if—

13 ‘‘(i) such construction is for dem14 onstration purposes or under unusual cir15 cumstances where there is no other man16 ner in which to accomplish a humanistic

17 purpose; and

18 ‘‘(ii) two-thirds of the members of the

19 National Council on the Humanities (who

20 are present and voting) approve of the

21 grant or contract involving an expenditure

22 for such purpose;

23 ‘‘(3) the term ‘State’ includes, in addition to

24 the several States, the Commonwealth of Puerto

25 Rico, the District of Columbia, Guam, American
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1 Samoa, the Commonwealth of the Northern Mariana

2 Islands, and the Virgin Islands of the United States;

3 ‘‘(4) the term ‘workshop’ means an activity the

4 primary purpose of which is to promote scholarship

5 and teaching among the participants;

6 ‘‘(5) the term ‘arrangements’ means any form

7 of financial assistance, including contracts, grants,

8 or other forms of assistance and loans made in ac9 cordance with terms and conditions approved by the

10 Secretary of the Treasury; and

11 ‘‘(6) the term ‘program income’ means any

12 money that is earned or received by a grantee or a

13 subrecipient from the activities supported by grant

14 funds or from products resulting from or related to

15 grant activities. It includes, but is not limited to, in16 come from fees for services performed and from the

17 sale of items fabricated under a grant; income from

18 licensing fees on products related to the grant activi19 ties; usage or rental fees for equipment or property

20 acquired under a grant; admission fees; broadcast or

21 distribution rights; and royalties on patents and

22 copyrights.
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1 ‘‘SEC. 302. ESTABLISHMENT OF THE NATIONAL ENDOW2 MENT FOR THE HUMANITIES.

3 ‘‘(a) There is established within the Foundation the

4 National Endowment for the Humanities.

5 ‘‘(b)(1) The Endowment shall be headed by a chair6 person, who shall be appointed by the President, by and

7 with the advice and consent of the Senate.

8 ‘‘(2) The term of office of the Chairperson shall be

9 four years, and the Chairperson shall be eligible for re10 appointment. The provisions of this paragraph shall apply

11 to any person appointed to fill a vacancy in the office of

12 the Chairperson. Upon expiration of the Chairperson’s

13 term of office the Chairperson shall serve until the Chair14 person’s successor shall have been appointed and shall

15 have qualified.

16 ‘‘(c) The Chairperson, with the advice of the National

17 Council on the Humanities (hereinafter established), is au18 thorized to enter into arrangements to—

19 ‘‘(1) develop and encourage the pursuit of a na20 tional policy for the promotion of progress and

21 scholarship in the humanities;

22 ‘‘(2) initiate and support research and pro23 grams to strengthen the research and teaching po24 tential of the United States in the humanities;

25 ‘‘(3) initiate and support training and work26 shops in the humanities (fellowships awarded to in-
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1 dividuals under this authority may be for the pur2 pose of study or research at appropriate non-profit

3 institutions selected by the recipient of such aid, for

4 stated periods of time);

5 ‘‘(4) initiate and support programs and re6 search which have substantial scholarly and cultural

7 significance and that reach, or reflect the diversity

8 and richness of our American cultural heritage, in9 cluding the culture of, a minority, inner city, rural,

10 or tribal community;

11 ‘‘(5) foster international programs and ex12 changes;

13 ‘‘(6) foster the interchange of information in

14 the humanities;

15 ‘‘(7) foster education in, and public understand16 ing and appreciation of the humanities;

17 ‘‘(8) support the publication of scholarly works

18 in the humanities;

19 ‘‘(9) insure that the benefit of its programs will

20 also be available to our citizens where such pro21 grams would otherwise be unavailable due to geo22 graphic or economic reasons; and

23 ‘‘(10) foster programs and projects that provide

24 access to, and preserve materials important to re-
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1 search, education, and public understanding of, the

2 humanities.

3 In selecting individuals and groups of exceptional talent

4 as recipients of financial assistance to be provided under

5 this subsection, the Chairperson shall give particular re6 gard to underserved scholars, and educational and cultural

7 institutions, that have traditionally been

8 underrepresented.

9 ‘‘(d) The Chairperson shall coordinate the programs

10 of the National Endowment for the Humanities, insofar

11 as practicable, with existing Federal programs, designated

12 State humanities agencies and with those undertaken by

13 other public agencies or private groups, and shall develop

14 the programs of the Endowment with due regard to the

15 contribution to the objectives of this title which can be

16 made by other Federal agencies under existing programs.

17 ‘‘(e) The total amount of any grant under subsection

18 (c)(3) to any group engaging in workshop activities for

19 which an admission or other charge is made to the general

20 public shall not exceed 30 per centum of the total cost

21 of such activities.

22 ‘‘(f)(1) The Chairperson, with the advice of the Na23 tional Council on the Humanities, is authorized, in accord24 ance with the provisions of this subsection, to establish

25 and carry out a program of grant-in-aid in each of the
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•HR 1520 IH

1 several States in order to support not more than 50 per

2 centum of the cost of existing activities which meet the

3 standards enumerated in subsection (c) of this section or

4 to match contributions from non-Federal sources made to

5 a trust fund the purpose of which is to provide long-term

6 financial support for programs which meet the standards

7 enumerated in subsection (c) of this section and in order

8 to develop a program in the humanities in such a manner

9 as will furnish adequate programs in the humanities in

10 each of the several States.

11 ‘‘(2)(A) Whenever a State desires to designate or to

12 provide for the establishment of a State agency as the sole

13 agency for the administration of the State plan, such State

14 shall designate the humanities council in existence on the

15 date the State agency is established as the State agency,

16 and shall match from State funds a sum equal to 50 per

17 centum of that portion of Federal financial assistance re18 ceived by such State under this subsection which is de19 scribed in the first sentence of paragraph (4) relating to

20 the minimum State grant, or 25 per centum of the total

21 amount of Federal financial assistance received by such

22 State under this subsection, whichever is greater, for the

23 fiscal year involved. In any State in which the State selects

24 the option described in this subparagraph, the State shall

25 submit, before the beginning of each fiscal year, an appli-
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1 cation for grants and accompany such application with a

2 plan which the Chairperson finds—

3 ‘‘(i) designates or provides for the establish4 ment of a State agency (hereinafter in this section

5 referred to as the ‘State agency’) as the sole agency

6 for the administration of the State plan;

7 ‘‘(ii) provides that the chief executive officer of

8 the State will appoint new members to the State hu9 manities council designated under the provisions of

10 this subparagraph, as vacancies occur as a result of

11 the expiration of the terms of members of such

12 council, until the chief executive officer has ap13 pointed all of the members of such council;

14 ‘‘(iii) provides, from State funds, an amount

15 equal to 50 per centum of that portion of Federal

16 financial assistance received by such State under

17 this subsection which is described in the first sen18 tence of paragraph (4) relating to the minimum

19 State grant, or 25 per centum of the total amount

20 of Federal financial assistance received by such

21 State under this subsection, whichever is greater, for

22 the fiscal year involved;

23 ‘‘(iv) provides that funds paid to the State

24 under this subsection will be expended solely on pro25 grams approved by the State agency which carry out
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1 the objectives of subsection (c) of this section and

2 which are designed to bring the humanities to the

3 public;

4 ‘‘(v) provides assurances that State funds will

5 be newly appropriated for the purpose of meeting

6 the requirements of this subparagraph;

7 ‘‘(vi) provides that the State agency will make

8 such reports, in such form and containing such in9 formation, as the Chairperson may require, includ10 ing a description of the progress made toward

11 achieving the goals of the State plan;

12 ‘‘(vii) provides—

13 ‘‘(I) assurances that the State agency has

14 held, after reasonable notice, public meetings in

15 the State to allow scholars, interested organiza16 tions, and the public to present views and make

17 recommendations regarding the State plan; and

18 ‘‘(II) a summary of such recommendations

19 and of the response of the State agency to such

20 recommendations; and

21 ‘‘(viii) contains—

22 ‘‘(I) a description of the level of participa23 tion during the most recent preceding year for

24 which information is available by scholars and
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1 scholarly organizations in programs receiving fi2 nancial assistance under this subsection;

3 ‘‘(II) for the most recent preceding year

4 for which information is available, a description

5 of the extent to which the programs receiving

6 financial assistance under this subsection are

7 available to all people and communities in the

8 State; and

9 ‘‘(III) a description of programs receiving

10 financial assistance under this subsection that

11 exist or are being developed to secure wider

12 participation of scholars and scholarly organiza13 tions identified under subclause (I) of this

14 clause or that address the availability of the hu15 manities to all people or communities identified

16 under subclause (II) of this clause.

17 No application may be approved unless the accompanying

18 plan satisfies the requirements specified in this subsection.

19 ‘‘(B) In any State in which the chief executive officer

20 of the State fails to submit an application under subpara21 graph (A), the grant recipient in such State shall—

22 ‘‘(i) establish a procedure which assures that

23 six members of the governing body of such grant re24 cipient shall be appointed by an appropriate officer

25 or agency of such State, except that in no event may
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•HR 1520 IH

1 the number of such members exceed 25 per centum

2 of the total membership of such governing body; and

3 ‘‘(ii) provide, from any source, an amount equal

4 to the amount of Federal financial assistance re5 ceived by such grant recipient under this subsection

6 for the fiscal year involved.

7 ‘‘(3) Whenever a State selects to receive Federal fi8 nancial assistance under this subsection for any fiscal year

9 under paragraph (2)(B), any appropriate entity desiring

10 to receive such assistance shall submit an application for

11 such assistance at such time as shall be specified by the

12 Chairperson. Each such application shall be accompanied

13 by a plan which the Chairperson finds—

14 ‘‘(A) provides assurances that the grant recipi15 ent will comply with the requirements of paragraph

16 (2)(B);

17 ‘‘(B) provides that funds paid to the grant re18 cipient will be expended solely on programs which

19 carry out the objectives of subsection (c) of this sec20 tion;

21 ‘‘(C) establishes a membership policy which is

22 designed to assure broad public representation with

23 respect to programs administered by such grant re24 cipient;
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1 ‘‘(D) provides a nomination process which

2 assures opportunities for nomination to membership

3 from various groups within the State involved and

4 from a variety of segments of the population of such

5 State, and including individuals who by reason of

6 their achievement, scholarship, or creativity in the

7 humanities, are especially qualified to serve;

8 ‘‘(E) provides for a membership rotation proc9 ess which assures the regular rotation of the mem10 bership and officers of such grant recipient;

11 ‘‘(F) establishes reporting procedures which are

12 designed to inform the chief executive officer of the

13 State involved, and other appropriate officers and

14 agencies, of the activities of such grant recipient;

15 ‘‘(G) establishes procedures to assure public ac16 cess to information relating to such activities;

17 ‘‘(H) provides that such grant recipient will

18 make reports to the Chairperson, in such form, at

19 such times, and containing such information, as the

20 Chairperson may require, including a description of

21 the progress made toward achieving the goals of the

22 plan;

23 ‘‘(I) provides—

24 ‘‘(i) assurances that the grant recipient

25 has held, after reasonable notice, public meet-
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1 ings in the State to allow scholars, interested

2 organizations, and the public to present views

3 and make recommendations regarding the plan;

4 and

5 ‘‘(ii) a summary of such recommendations

6 and of the response of the grant recipient to

7 such recommendations; and

8 ‘‘(J) contains—

9 ‘‘(i) a description of the level of participa10 tion during the most recent preceding year for

11 which information is available by scholars and

12 scholarly organizations in programs receiving fi13 nancial assistance under this subsection;

14 ‘‘(ii) for the most recent preceding year for

15 which information is available, a description of

16 the extent to which the programs receiving fi17 nancial assistance under this subsection are

18 available to all people and communities in the

19 State; and

20 ‘‘(iii) a description of programs receiving

21 financial assistance under this subsection that

22 exist or are being developed to secure wider

23 participation of scholars and scholarly organiza24 tions identified under clause (i) of this subpara25 graph or that address the availability of the hu-
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1 manities to all people or communities identified

2 under clause (ii) of this subparagraph.

3 No application may be approved unless the accompanying

4 plan satisfies the requirements specified in this subsection.

5 ‘‘(4) Of the sums available to carry out this sub6 section for any fiscal year, each State and each grant re7 cipient which has a plan approved by the Chairperson shall

8 be allotted at least $200,000. If the sums appropriated

9 are insufficient to make the allotments under the preced10 ing sentence in full, such sums shall be allotted among

11 such States and grant recipients in equal amounts. In any

12 case where the sums available to carry out this subsection

13 for any fiscal year are in excess of the amount required

14 to make the allotments under the first sentence of this

15 paragraph—

16 ‘‘(A) 34 per centum of the amount of such ex17 cess for such fiscal year shall be available to the

18 Chairperson for making grants under this subsection

19 to States and regional groups and entities applying

20 for such grants;

21 ‘‘(B) 44 per centum of the amount of such ex22 cess for such fiscal year shall be allotted in equal

23 amounts among the States and grant recipients

24 which have plans approved by the Chairperson; and
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1 ‘‘(C) 22 per centum of the amount of such ex2 cess for such fiscal year shall be allotted among the

3 States and grant recipients which have plans ap4 proved by the Chairperson in amounts which bear

5 the same ratio to such excess as the population of

6 the State for which the plan is approved (or, in the

7 case of a grant recipient other than a State, the pop8 ulation of the State in which such grant recipient is

9 located) bears to the population of all the States.

10 ‘‘(5)(A) The amount of each allotment to a State for

11 any fiscal year under this subsection shall be available to

12 each State or grant recipient, which has a plan or applica13 tion approved by the Chairperson in effect on the first day

14 of such fiscal year, to pay not more than 50 per centum

15 of the total cost of any project or production described

16 in paragraph (1). The amount of any allotment made

17 under paragraph (4) for any fiscal year—

18 ‘‘(i) which exceeds $125,000, but

19 ‘‘(ii) which does not exceed 20 per centum of

20 such allotment, shall be available, at the discretion

21 of the Chairperson, to pay up to 100 per centum of

22 the cost of programs under this subsection if such

23 programs would otherwise be unavailable to the resi24 dents of that State.
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1 ‘‘(B) Any amount allotted to a State under the first

2 sentence of paragraph (4) for any fiscal year which is not

3 obligated by the State agency or grant recipient prior to

4 sixty days prior to the end of the fiscal year for which

5 such sums are appropriated shall be available to the Chair6 person.

7 ‘‘(C) Funds made available under this subsection

8 shall not be used to supplant non-Federal funds.

9 ‘‘(D) For purposes of paragraph (4)(B), the term

10 ‘State’ and the term ‘grant recipient’ include, in addition

11 to the several States, only those special jurisdictions speci12 fied in section 102(c) which have a population of 200,000

13 or more, according to the latest decennial census.

14 ‘‘(6) All amounts allotted or made available under

15 paragraph (4) for a fiscal year which are not granted to

16 any entity during such fiscal year shall be available to the

17 National Endowment for the Humanities for the purpose

18 of carrying out subsection (c) of this section.

19 ‘‘(7) Whenever the Chairperson, after reasonable no20 tice and opportunity for hearing, finds that—

21 ‘‘(A) a group or grant recipient is not comply22 ing substantially with the provisions of this sub23 section;

24 ‘‘(B) a State agency or grant recipient is not

25 complying substantially with terms and conditions of
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1 its State plan or grant recipient application ap2 proved under this subsection; or

3 ‘‘(C) any funds granted to any group or State

4 agency or grant recipient under this subsection have

5 been diverted from the purposes for which they are

6 allotted or paid, the Chairperson shall immediately

7 notify the Secretary of the Treasury and the group,

8 State agency, or grant recipient with respect to

9 which such finding was made that no further grants

10 will be made under this subsection to such group,

11 State agency, or grant recipient until there is no

12 longer a default or failure to comply or the diversion

13 has been corrected, or, if the compliance or correc14 tion is impossible, until such group, State agency, or

15 grant recipient repays or arranges the repayment of

16 the Federal funds which have been improperly di17 verted or expended.

18 ‘‘(8) Except as provided in paragraphs (4), (5), and

19 (6), the Chairperson may not make grants under this sub20 section to more than one entity in any State.

21 ‘‘(g) It shall be a condition of the receipt of any grant

22 under this section that the group, individual, or State

23 agency or entity receiving such grant furnish adequate as24 surances to the Secretary of Labor that (1) all profes25 sional performers and related or supporting professional
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1 personnel employed on projects or productions which are

2 financed in whole or in part under this section will be paid,

3 without subsequent deduction or rebate on any account,

4 not less than the minimum compensation as determined

5 by the Secretary of Labor to be the prevailing minimum

6 compensation for persons employed in similar activities;

7 and (2) no part of any project or production which is fi8 nanced in whole or in part under this section will be per9 formed or engaged in under working conditions which are

10 unsanitary or hazardous or dangerous to the health and

11 safety of the employees engaged in such project or produc12 tion. Compliance with the safety and sanitary laws of the

13 State in which the performance or part thereof is to take

14 place shall be prima facie evidence of compliance. The Sec15 retary of Labor shall prescribe standards, regulations, and

16 procedures necessary to carry out this subsection.

17 ‘‘(h)(1) The Chairperson of the National Endowment

18 for the Humanities, with the advice of the National Coun19 cil on the Humanities, is authorized, in accordance with

20 the provisions of this subsection, to establish and carry

21 out a program of contracts with, or grants-in-aid to, public

22 agencies and private nonprofit organizations for the pur23 pose of—

24 ‘‘(A) enabling cultural organizations and insti25 tutions to increase the levels of continuing support
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1 and to increase the range of contributors to the pro2 gram of such organizations or institutions;

3 ‘‘(B) providing administrative and management

4 improvements for cultural organizations and institu5 tions, particularly in the field of long-range financial

6 planning;

7 ‘‘(C) enabling cultural organizations and insti8 tutions to increase audience participation in, and ap9 preciation of, programs sponsored by such organiza10 tions and institutions;

11 ‘‘(D) stimulating greater cooperation among

12 cultural organizations and institutions especially de13 signed to serve better the communities in which such

14 organizations or institutions are located; and

15 ‘‘(E) fostering greater citizen involvement in

16 planning the cultural development of a community.

17 ‘‘(2) The total amount of any payment made under

18 this subsection for a program or project may not exceed

19 50 per centum of the cost of such program or project.

20 ‘‘(3) In carrying out the program authorized by this

21 subsection, the Chairperson of the National Endowment

22 for the Humanities shall have the same authority as is

23 established in subsection (c) of this section and section

24 304.
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1 ‘‘(i) The Chairperson may enter into interagency

2 agreements to promote or assist with the humanities-relat3 ed activities of other Federal agencies, on either a reim4 bursable or nonreimbursable basis, and may use funds au5 thorized to be appropriated for the purposes of subsection

6 (c) of this section for the costs of such activities.

7 ‘‘(j) It shall be a condition of the receipt of any grant

8 under this section that the group or individual of excep9 tional talent or the State, State agency, or entity receiving

10 such grant furnish adequate assurances to the Secretary

11 of Labor that all laborers and mechanics employed by con12 tractors or subcontractors on construction projects as13 sisted under this section shall be paid wages at rates not

14 less than those prevailing on similar construction in the

15 locality, as determined by the Secretary of Labor in ac16 cordance with the Davis-Bacon Act, as amended (40

17 U.S.C. 276a–276a–5). The Secretary of Labor shall have,

18 with respect to the labor standards specified in this sub19 section, the authority and functions set forth in Reorga20 nization Plan Numbered 14 of 1950 (15 F.R. 3175; 5

21 U.S.C. 133z–15) and section 2 of the Act of June 13,

22 1934, as amended (40 U.S.C. 276c).

23 ‘‘(k) The Chairperson of the National Endowment for

24 the Humanities shall, in ongoing consultation with State

25 and local agencies, other relevant organizations, and rel-
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1 evant Federal agencies, continue to develop and implement

2 a practical system of national information and data collec3 tion and public dissemination on the humanities, scholars,

4 educational and cultural groups, and their audiences. Such

5 system shall include cultural and financial trends in the

6 various humanities fields, trends in audience participation,

7 and trends in humanities education on national, regional,

8 and State levels. Such system shall be used, along with

9 a summary of the data submitted with plans under sub10 section (f) of this section, to prepare a report on the state

11 of the humanities in the Nation. The state of the human12 ities report shall include a description of the availability

13 of the Endowment’s programs to emerging and culturally

14 diverse scholars, cultural and educational organizations,

15 and communities and of the participation of such scholars,

16 organizations, and communities in such programs. The

17 state of the humanities report shall be submitted to the

18 President and the Congress, and provided the States, not

19 later than October 1, 1992, and quadrennially thereafter.

20 ‘‘(l)(1) For purposes of this section—

21 ‘‘(A) the term ‘group’ includes any State or

22 local government or public agency, Indian tribe, or

23 nonprofit association, organization or society;

24 ‘‘(B) the term ‘entity’ means any partnership,

25 corporation, business enterprise, or other organiza-
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1 tion engaged in the production of a film or publica2 tion;

3 ‘‘(C) the term ‘person’ means any individual;

4 and

5 ‘‘(D) the term ‘United States national’ or ‘U.S.

6 national’ means a citizen of the United States or an

7 individual person, who though not a citizen of the

8 United States, owes permanent allegiance to the

9 United States.

10 ‘‘(2) The Chairperson, with the advice of the National

11 Council on the Humanities, shall establish the criteria for

12 eligibility for financial assistance under this title, except

13 that—

14 ‘‘(A) any group shall be eligible for financial as15 sistance under this title if—

16 ‘‘(i) no part of its net earnings inures to

17 the benefit of any private stockholder or stock18 holders or individual or individuals; and

19 ‘‘(ii) donations to such groups are allow20 able as a charitable contribution under the

21 standards of section 170(c) of the Internal Rev22 enue Code of 1986;

23 ‘‘(B) any entity shall be eligible for financial as24 sistance under this title if the Chairman, with the

25 advice of the National Council on the Humanities,
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1 determines that providing such financial assistance

2 will significantly advance the knowledge or under3 standing of the humanities in the United States; and

4 ‘‘(C) Any person shall be eligible for financial

5 assistance under this title if the person is a United

6 Stated national. However, a person who is not a

7 United States national may be eligible for financial

8 assistance under this title if the Chairman, with the

9 advice of the National Council on the Humanities,

10 determines that providing such financial assistance

11 will significantly advance the knowledge or under12 standing of the humanities in the United States.

13 ‘‘(m) The Chairperson, with the advice of the Na14 tional Council on the Humanities, is authorized to make

15 the following annual awards:

16 ‘‘(1) The Jefferson Lecture in the Humanities

17 Award to one individual for distinguished intellectual

18 achievement in the humanities. The annual award

19 shall not exceed $10,000.

20 ‘‘(2) The Charles Frankel Prize to honor indi21 viduals who have made outstanding contributions to

22 the public understanding of the humanities. Not

23 more than 5 individuals may receive such prize each

24 year. Each prize shall not exceed $5,000.
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1 ‘‘(n) The Chairperson, with the advice of the National

2 Council on the Humanities, is authorized to require as a

3 term or condition of any grant that the grant recipient

4 remit to the National Endowment for the Humanities a

5 percentage of the program income derived from the grant

6 activities. This program income shall be received, invested

7 and expended by the Chairperson pursuant to his author8 ity under section 304(a)(2).

9 ‘‘SEC. 303. ESTABLISHMENT OF THE NATIONAL COUNCIL

10 ON THE HUMANITIES.

11 ‘‘(a) There is established in the National Endowment

12 for the Humanities a National Council on the Humanities.

13 ‘‘(b) The Council shall be composed of the Chair14 person of the National Endowment for the Humanities,

15 who shall be the Chairperson of the Council, and twenty16 six other members appointed by the President, by and

17 with the advice and consent of the Senate, from private

18 life. Such members shall be individuals who—

19 ‘‘(1) are selected from among private citizens of

20 the United States who are recognized for their broad

21 knowledge of, expertise in, or commitment to the hu22 manities; and

23 ‘‘(2) have established records of distinguished

24 service and scholarship or creativity and in a man25 ner which will provide a comprehensive representa-
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1 tion of the views of scholars and professional practi2 tioners in the humanities and of the public through3 out the United States. The President is requested in

4 the making of such appointments to give consider5 ation to such recommendations as may from time to

6 time be submitted to him by leading national organi7 zations concerned with the humanities. In making

8 such appointments, the President shall give due re9 gard to equitable representation of women, minori10 ties and individuals with disabilities who are involved

11 in the humanities.

12 ‘‘(c) Each member shall hold office for a term of six

13 years, except that—

14 ‘‘(1) the members first taking office shall serve,

15 as designated by the President, nine for terms of

16 two years, nine for terms of four years, and eight for

17 terms of six years; and

18 ‘‘(2) any member appointed to fill a vacancy

19 shall serve for the remainder of the term for which

20 such member’s predecessor was appointed. No mem21 ber shall be eligible for reappointment during the

22 two-year period following the expiration of such

23 member’s term. Notwithstanding any other provi24 sions of this subsection, a member shall serve after
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1 the expiration of such member’s term until such

2 member’s successor takes office.

3 ‘‘(d) The Council shall meet at the call of the Chair4 person but not less often than twice during each calendar

5 year. Fourteen members of the Council shall constitute a

6 quorum.

7 ‘‘(e) Members shall receive compensation at a rate to

8 be fixed by the Chairperson but not to exceed the per diem

9 equivalent of the maximum rate of pay payable under sec10 tion 5376 of title 5 of the United States Code, and be

11 allowed travel expenses including per diem in lieu of sub12 sistence, as authorized by law (section 5703 of title 5 of

13 the United States Code) for persons in the Government

14 service employed intermittently.

15 ‘‘(f) The Council shall—

16 ‘‘(1) advise the Chairperson with respect to

17 policies, programs, and procedures for carrying out

18 the Chairperson’s functions; and

19 ‘‘(2) shall review applications for financial sup20 port and make recommendations thereon to the

21 Chairperson. The Chairperson shall not approve or

22 disapprove any such application until the Chair23 person has received the recommendation of the

24 Council on such application, unless the Council fails

25 to make a recommendation thereon within a reason-
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1 able time. In the case of any application involving

2 $30,000, or less, the Chairperson may approve or

3 disapprove such request if such action is taken pur4 suant to the terms of a delegation of authority from

5 the Council to the Chairperson, and provided that

6 each such action by the Chairperson shall be re7 viewed by the Council: Provided, That the terms of

8 any such delegation of authority shall not permit ob9 ligations for expenditure of funds under such delega10 tion for any fiscal year which exceed an amount

11 equal to 10 per centum of the sums appropriated for

12 that fiscal year pursuant to subparagraph (B) of

13 paragraph (1) of section 305(a).

14 ‘‘SEC. 304. ADMINISTRATIVE PROVISIONS.

15 ‘‘(a) In addition to any authorities vested in the

16 Chairperson by other provisions of this title, the Chair17 person of the National Endowment for the Humanities,

18 in carrying out the Chairperson’s functions, shall have au19 thority—

20 ‘‘(1) to prescribe such regulations as the Chair21 person deems necessary governing the manner in

22 which the Chairperson’s functions shall be carried

23 out;

24 ‘‘(2) in the discretion of the Chairperson to so25 licit, receive, and invest money and other property
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1 donated, bequeathed, or devised to the Endowment

2 with or without a condition or restriction, including

3 a condition that the Chairperson use other funds of

4 that Endowment for the purposes of the gift or re5 mitted to the Endowment pursuant to section

6 302(n) or any other statutory authority and to re7 quest the Secretary of the Treasury to invest such

8 money in interest bearing obligations of the United

9 States or in obligations of the United States guaran10 teed as to both principal and interest by the United

11 States;

12 ‘‘(3) to appoint employees, subject to the civil

13 service laws, as necessary to carry out the Chair14 person’s functions, define their duties, and supervise

15 and direct their activities;

16 ‘‘(4) to utilize experts and consultants, includ17 ing panels of experts, who may be employed as au18 thorized by section 3109 of title 5, United States

19 Code;

20 ‘‘(5) to accept and utilize the services of vol21 untary and uncompensated personnel and reimburse

22 them for travel expenses, including per diem, as au23 thorized by law (section 5703 of title 5 of the United

24 States Code) for persons in the Government service

25 employed without compensation;
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1 ‘‘(6) to make advance, progress, and other pay2 ments without regard to section 3324 of title 31,

3 United States Code;

4 ‘‘(7) to rent office space in the District of Co5 lumbia; and

6 ‘‘(8) to make other necessary expenditures.

7 In selecting panels of experts under clause (4) to review

8 and make recommendations with respect to the approval

9 of applications for financial assistance under this Act, the

10 Chairperson shall appoint individuals who have exhibited

11 expertise and leadership in the field under review, who

12 broadly represent diverse characteristics in terms of hu13 manistic perspective, and geographical factors, and who

14 broadly represent cultural diversity.

15 ‘‘(b) The Chairperson of the National Endowment for

16 the Humanities shall submit an annual report to the

17 President for transmittal to the Congress on or before the

18 15th day of April of each year. The report shall summarize

19 the activities of the Endowment for the preceding year,

20 and may include such recommendations as the Chair21 person deems appropriate.

22 ‘‘(c) The National Council on the Humanities, respec23 tively, may submit an annual report to the President for

24 transmittal to the Congress on or before the 15th day of

25 April of each year setting forth a summary of its activities
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1 during the preceding year or its recommendations for any

2 measures which it considers necessary or desirable.

3 ‘‘(d)(1) The Chairperson of the National Endowment

4 for the Humanities shall conduct a post-award evaluation

5 of projects, productions, and programs for which financial

6 assistance is provided by the Endowment under section

7 302(c). Such evaluation may include an audit to determine

8 the accuracy of the reports required to be submitted by

9 recipients under clauses (i) and (ii) of paragraph (2)(A).

10 As a condition of receiving such financial assistance, a re11 cipient shall comply with the requirements specified in

12 paragraph (2) that are applicable to the project, produc13 tion, or program for which such financial assistance is re14 ceived.

15 ‘‘(2)(A) The recipient of financial assistance provided

16 by the Endowment shall submit to the Chairperson—

17 ‘‘(i) a financial report containing such informa18 tion as the Chairperson deems necessary to ensure

19 that such financial assistance is expended in accord20 ance with the terms and conditions under which it

21 is provided;

22 ‘‘(ii) a report describing the project, production

23 or program carried out with such financial assist24 ance; and
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1 ‘‘(iii) if practicable, as determined by the Chair2 person, a copy of such project, production, or pro3 gram.

4 ‘‘(B) Such recipient shall comply with the require5 ments of this paragraph not later than 90 days after the

6 end of the period for which such financial assistance is

7 provided. The Chairperson may extend the 90-day period

8 only if the recipient shows good cause why such an exten9 sion should be granted.

10 ‘‘(3) If such recipient substantially fails to satisfy the

11 purposes for which such financial assistance is provided

12 and the requirements of paragraph (2)(A) of this section,

13 as determined by the Chairperson of the Endowment that

14 provided such financial assistance, then such Chairperson

15 may—

16 ‘‘(A) for purposes of determining whether to

17 provide any subsequent financial assistance, take

18 into consideration the results of the post-award eval19 uation conducted under this subsection;

20 ‘‘(B) prohibit the recipient of such financial as21 sistance to use the name of, or in any way associate

22 such project, production, or program with the En23 dowment that provided such financial assistance;

24 and
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1 ‘‘(C) if such project, production, or program is

2 published, require that the publication contain the

3 following statement: ‘The opinions, findings, conclu4 sions, and recommendations expressed herein do not

5 reflect the views of the National Endowment for the

6 Humanities.’.

7 ‘‘(e) Official publications of the Endowment under

8 this title may be supported without regard for the provi9 sions of section 501 of title 44, United States Code, only

10 if the Chairperson consults with the Joint Committee on

11 Printing of the Congress and the Chairperson submits to

12 the Committee on Labor and Human Resources of the

13 Senate and the Committee on Economic and Educational

14 Opportunities of the House of Representatives a report

15 justifying any exemption from such section 501.

16 ‘‘SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

17 ‘‘(a)(1) For the purpose of carrying out section

18 302(c) of this title, there are authorized to be appropriated

19 to the National Endowment for the Humanities such sums

20 as may be necessary for fiscal years 1996 through 2001.

21 Of the sums so appropriated for any fiscal year, not less

22 than 20 per centum shall be for carrying out section

23 302(f).

24 ‘‘(2) There are authorized to be appropriated for each

25 fiscal year ending before October 1, 2001, to the National
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1 Endowment for the Humanities an amount equal to the

2 sum of—

3 ‘‘(A) the total amounts received by the Endow4 ment under section 304(a)(2), including the value of

5 property donated, bequeathed, or devised to the En6 dowment and any interest earned thereon; and

7 ‘‘(B) the total amounts received by the grantees

8 and subgrantees of the Endowment from non-Fed9 eral sources, including the value of property do10 nated, bequeathed, or devised to such grantees and

11 subgrantees, for use in carrying out activities under

12 paragraph (1) through paragraph (10) of section

13 302(c).

14 ‘‘(3)(A) There are authorized to be appropriated for

15 each fiscal year ending before October 1, 2001, to the Na16 tional Endowment for the Humanities an amount equal

17 to the sum of—

18 ‘‘(i) the total amounts received by the Endow19 ment, including the value of property donated, be20 queathed, or devised to the Endowment, for the pur21 poses set forth in section 302(h)(1) pursuant to the

22 authority of section 304(a)(2) of this title; and

23 ‘‘(ii) the total amounts received by the grantees

24 of the Endowment from non-Federal sources, includ25 ing the value of property donated, bequeathed, or
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1 devised to such grantees, for use in carrying out ac2 tivities under subparagraph (A) through subpara3 graph (E) of section 302(h)(1).

4 ‘‘(B) Sums appropriated pursuant to subparagraph

5 (A) for any fiscal year shall remain available for obligation

6 and expenditure until expended.

7 ‘‘(4) The Chairperson of the National Endowment for

8 the Humanities shall issue guidelines to implement the

9 provisions of paragraph (2) and paragraph (3). Such

10 guidelines shall be consistent with the requirements of sec11 tion 302(f) and section 302(h)(2) regarding total Federal

12 support of activities, programs, projects, or productions

13 carried out under authority of this title.

14 ‘‘(5) For the purpose of carrying out section 302(c),

15 the Endowment is authorized to expend such sums as re16 ceived pursuant to section 304(a)(2) and the interest

17 earned thereon without fiscal year limitation and without

18 regard to the availability of appropriated funds.

19 ‘‘(b)(1) Sums appropriated pursuant to subsection

20 (a) of this section for any fiscal year shall remain available

21 for obligation and expenditure until expended.

22 ‘‘(2) In order to afford adequate notice to interested

23 persons of available assistance under this title, appropria24 tions authorized under subsection (a) of this section are

25 authorized to be included in the measure making appro-
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1 priations for the fiscal year preceding the fiscal year for

2 which such appropriations become available for obligation.

3 ‘‘(c) There are authorized to be appropriated to the

4 National Endowment for the Humanities such sums as

5 may be necessary for fiscal years 1996 through 2001, to

6 administer the provisions of this title, or any other pro7 gram for which the Chairperson of the National Endow8 ment for the Humanities is responsible, including not to

9 exceed $100,000 for fiscal year 1996 for official reception

10 and representation expenses.

11 ‘‘(d) No grant shall be made to a workshop (other

12 than a workshop conducted by a school, college, or univer13 sity) for a production for which direct or indirect admis14 sion charge is asked if the proceeds, after deducting rea15 sonable costs, are used for purposes other than assisting

16 the grantee to develop high standards of scholarly excel17 lence or encourage greater appreciation of humanities by

18 our citizens.

19 ‘‘TITLE IV—MUSEUM SERVICES

20 ‘‘SEC. 401. PURPOSE.

21 ‘‘It is the purpose of this title to encourage and assist

22 museums in their educational role, in conjunction with for23 mal systems of elementary, secondary, and post-secondary

24 education and with programs of nonformal education for

25 all age groups; to assist museums in modernizing their
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1 methods and facilities so that they may be better able to

2 conserve our cultural, historic, and scientific heritage; and

3 to ease the financial burden borne by museums as a result

4 of their increasing use by the public.

5 ‘‘SEC. 402. INSTITUTE OF MUSEUM SERVICES; ESTABLISH6 MENT.

7 ‘‘There is hereby established within the National

8 Foundation on the Arts and the Humanities, an Institute

9 of Museum Services. The Institute shall consist of a Na10 tional Museum Services Board and a Director of the Insti11 tute.

12 ‘‘SEC. 403. NATIONAL MUSEUM SERVICES BOARD.

13 ‘‘(a) The Board shall consist of fifteen members ap14 pointed by the President by and with the advice and con15 sent of the Senate. Such members shall be selected from

16 among citizens of the United States who are members of

17 the general public and who are—

18 ‘‘(1) broadly representative of the various muse19 ums, including museums relating to science, history,

20 technology, art, zoos, and botanical gardens, and of

21 the curatorial, conservation, educational, and cul22 tural resources of the United States; and

23 ‘‘(2) recognized for their broad knowledge, ex24 pertise, or experience in museums or commitment to

25 museums.
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1 Members shall be appointed to reflect various geographical

2 regions of the United States. The Board may not include,

3 at any time, more than three members from a single State.

4 In making such appointments, the President shall give due

5 regard to equitable representation of women, minorities,

6 and persons with disabilities who are involved in such mu7 seums.

8 ‘‘(b) The term of office of the appointed members of

9 the Board shall be five years, except that—

10 ‘‘(1) any such member appointed to fill a va11 cancy shall serve only such portion of a term as shall

12 not have expired at the time of such appointment;

13 and

14 ‘‘(2) in the case of initial members, three shall

15 serve for terms of five years, three shall serve for

16 terms of four years, three shall serve for terms of

17 three years, three shall serve for terms of two years,

18 and three shall serve for terms of one year, as des19 ignated by the President at the time of nomination

20 for appointment.

21 Any appointed member who has been a member of the

22 Board for more than seven consecutive years shall there23 after be ineligible for reappointment to the Board during

24 the three-year period following the expiration of the last

25 such consecutive year. Notwithstanding any other provi-
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1 sion of this subsection, a member shall serve after the ex2 piration of such member’s term of office until such mem3 ber’s successor takes office.

4 ‘‘(c) The Chairperson of the Board shall be des5 ignated by the President from among the appointed mem6 bers of the Board. Except as provided in subsection (d)(2)

7 of this section, eight appointed members of the Board

8 shall constitute a quorum.

9 ‘‘(d) The Board shall meet at the call of the Chair10 person, except that—

11 ‘‘(1) it shall meet not less than three times each

12 year; and

13 ‘‘(2) it shall meet whenever one-third of the ap14 pointed members request a meeting in writing, in

15 which event seven of the appointed members shall

16 constitute a quorum.

17 ‘‘(e) Members of the Board who are not in the regular

18 full-time employ of the United States shall receive, while

19 engaged in the business of the Board, compensation for

20 service at a rate to be fixed by the President, except that

21 such rate shall not exceed the maximum rate of pay pay22 able under section 5376 of title 5, United States Code,

23 including traveltime, and, while so serving away from their

24 homes or regular places of business, they may be allowed

25 travel expenses, including per diem in lieu of subsistence,
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1 as authorized by section 5703 of title 5, United States

2 Code, for persons employed in Government service.

3 ‘‘(f) The Board shall have the responsibility for the

4 general policies with respect to the powers, duties, and au5 thorities vested in the Institute under this title. The Direc6 tor shall make available to the Board such information

7 and assistance as may be necessary to enable the Board

8 to carry out its functions.

9 ‘‘(g) The Board shall, with the advice of the Director,

10 take steps to assure that the policies and purposes of the

11 Institute are coordinated with other activities of the Fed12 eral Government.

13 ‘‘SEC. 404. DIRECTOR OF THE INSTITUTE.

14 ‘‘(a)(1) The Director of the Institute shall be ap15 pointed by the President, by and with the advice and con16 sent of the Senate, and shall serve at the pleasure of the

17 President. The Director shall perform such duties and ex18 ercise such powers as the Board may prescribe.

19 ‘‘(2) The Director shall not delegate any of the Direc20 tor’s functions to any other officer who is not directly re21 sponsible to the Director.

22 ‘‘(b) The Director shall advise the Board regarding

23 policies of the Institute to assure coordination of the Insti24 tute’s activities with other agencies and organizations of

25 the Federal Government having interest in and respon-
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1 sibilities for the improvement of museums. Such Govern2 ment agencies shall include the National Endowment for

3 the Arts, the National Endowment for the Humanities,

4 the National Science Foundation, appropriate units in the

5 Department of Education, the Library of Congress, and

6 the Smithsonian Institution and related organizations.

7 ‘‘(c) The Director may appoint without regard to the

8 provisions of title 5, United States Code, governing ap9 pointment in the competitive service and may compensate

10 without regard to the provisions of chapter 51 or sub11 chapter III of chapter 53 of such title relating to classi12 fication and General Schedule pay rates not to exceed one13 fifth of the number of full-time regular technical or profes14 sional employees of the Institute. The rate of basic com15 pensation for such employees may not equal or exceed

16 minimum rate of pay payable under section 5376 of title

17 5 of the United States Code.

18 ‘‘SEC. 405. ACTIVITIES OF THE INSTITUTE.

19 ‘‘(a) The Director, subject to the policy direction of

20 the Board, is authorized to make grants to museums to

21 increase and improve museum services, through such ac22 tivities as—

23 ‘‘(1) programs to enable museums to construct

24 or install displays, interpretations, and exhibitions in

25 order to improve their services to the public;
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1 ‘‘(2) assisting them in developing and maintain2 ing professionally-trained or otherwise experienced

3 staff to meet their needs;

4 ‘‘(3) assisting them to meet their administrative

5 costs in preserving and maintaining their collections,

6 exhibiting them to the public, and providing edu7 cational programs to the public through the use of

8 their collections;

9 ‘‘(4) assisting museums in cooperation with

10 each other in the development of traveling exhibi11 tions, meeting transportation costs, and identifying

12 and locating collections available for loan;

13 ‘‘(5) assisting them in conservation of their col14 lections; and

15 ‘‘(6) developing and carrying out specialized

16 programs for specific segments of the public, such as

17 programs for urban neighborhoods, rural areas, In18 dian reservations, and penal and other State institu19 tions.

20 ‘‘(b)(1) The Director, subject to the policy direction

21 of the National Museum Services Board, is authorized to

22 enter into contracts and cooperative agreements to provide

23 financial assistance in order to undertake projects de24 signed to strengthen museum services, except that any

25 contracts or cooperative agreements entered into pursuant
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1 to this subsection shall be effective only to such extent

2 or in such amounts as are provided in appropriations Acts.

3 ‘‘(2) No financial assistance may be provided under

4 this subsection to pay for operational expenses.

5 ‘‘(3) The aggregate amount of financial assistance

6 made under this subsection shall not exceed 15 percent

7 of the amount appropriated under this title for such fiscal

8 year.

9 ‘‘(c) Grants, contracts, and cooperative agreements

10 under this section for any fiscal year may not exceed 50

11 per centum of the cost of the program for which the grant

12 or financial assistance is made, except that not more than

13 20 per centum of the funds available under this section

14 for any fiscal year may be available for grants or financial

15 assistance in such fiscal year without regard to such limi16 tation.

17 ‘‘(d) The Director shall establish procedures for re18 viewing and evaluating grants, contracts, and cooperative

19 agreements made or entered into under this section. Pro20 cedures for reviewing grant applications or contracts and

21 cooperative agreements for financial assistance under this

22 section shall not be subject to any review outside of the

23 Institute.
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1 ‘‘SEC. 406. CONTRIBUTIONS.

2 ‘‘The Institute shall have authority to solicit, receive,

3 accept, and invest in the name of the United States,

4 grants, gifts, or bequests of money and other property or

5 services and to use such funds in furtherance of the func6 tions of the Institute. Such grants, gifts, or bequests, after

7 acceptance by the Institute, shall be paid by the donor

8 or his representative to the Treasurer of the United States

9 whose receipt shall be their acquittance. The Treasurer

10 of the United States shall enter them in a special interest11 bearing account to the credit of the Institute for the pur12 poses in each case specified.

13 ‘‘SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

14 ‘‘(a) For the purpose of making grants under section

15 405(a), there are authorized to be appropriated and such

16 sums as may be necessary for fiscal years 1996 through

17 2001.

18 ‘‘(b) There are authorized to be appropriated such

19 sums as may be necessary to administer the provisions of

20 this title.

21 ‘‘(c) Sums appropriated pursuant to subsection (a)

22 of this section for any fiscal year shall remain available

23 for obligation and expenditure until expended.

24 ‘‘(d) For the purpose of enabling the Institute to

25 carry out its functions under this title, there is authorized

26 to be appropriated for each fiscal year ending before Octo-
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1 ber 1, 2001, an amount equal to the amount contributed

2 during such fiscal year period to the Institute under sec3 tion 406.

4 ‘‘SEC. 408. DEFINITIONS.

5 ‘‘For the purpose of this title, the term—

6 ‘‘(1) ‘Board’ means the National Museum Serv7 ices Board established under section 402;

8 ‘‘(2) ‘Director’ means the Director of the Insti9 tute established under section 402;

10 ‘‘(3) ‘Institute’ means the Institute of Museum

11 Services established under section 402; and

12 ‘‘(4) ‘museum’ means a public or private non13 profit agency or institution organized on a perma14 nent basis for essentially educational or esthetic pur15 poses, which, utilizing a professional staff, owns or

16 utilizes tangible objects, cares for them, and exhibits

17 them to the public on a regular basis.

18 ‘‘TITLE V—AMERICAN CULTURAL

19 TRUST FUND

20 ‘‘SEC. 501. ESTABLISHMENT OF AMERICAN CULTURAL

21 TRUST FUND.

22 ‘‘There is hereby established in the Treasury a revolv23 ing fund to be known as the ‘American Cultural Trust

24 Fund’ (hereinafter in this title referred to as the ‘Fund’).
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1 ‘‘SEC. 502. ADMINISTRATION OF TRUST FUND.

2 ‘‘(a) INVESTMENTS—Monies appropriated to the

3 Fund shall be invested by the Secretary of the Treasury.

4 Proceeds of investments shall be deposited in the Fund.

5 ‘‘(b) TRIGGER FOR DISTRIBUTION OF ACCUMULATED

6 INVESTMENT PROCEEDS.—Whenever the aggregate

7 amount of proceeds deposited under subsection (a) in the

8 Fund equals $700,000,000, all investment proceeds then

9 and subsequently on deposit in the Fund shall be distrib10 uted in accordance with subsection (c) by the Secretary

11 of the Treasury as follows:

12 ‘‘(1) 25 percent to the National Endowment for

13 the Arts.

14 ‘‘(2) 26 percent to the National Endowment for

15 the Humanities.

16 ‘‘(3) 4 percent to the Institute of Museum Serv17 ices.

18 ‘‘(4) 45 percent to the Corporation for Public

19 Broadcasting.

20 ‘‘(c) ANNUAL DISTRIBUTION OF ACCUMULATED IN21 VESTMENT PROCEEDS.—On the first October 1 occurring

22 after a condition specified in subsection (b) is satisfied,

23 and on each October 1 thereafter, the Secretary of the

24 Treasury shall distribute in accordance with paragraphs

25 (1) through (4) of such subsection the investment proceeds

26 then on deposit in the fund.
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1 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—(1)

2 Subject to paragraph (2), there are authorized to be ap3 propriated to the Fund for fiscal year 1996, and for each

4 fiscal year thereafter, an amount equal to 1 percent of

5 the difference between the total budget outlays and the

6 budget outlays for gross interest on the public debt, for

7 such fiscal year as set forth in the then most recently

8 agreed to concurrent resolution on the budget for such fis9 cal year.

10 ‘‘(2) No funds are authorized to be appropriated

11 under paragraph (1) for any fiscal year beginning on or

12 after the date on which the Secretary of the Treasury first

13 distributes investment proceeds in accordance with sub14 section (c).

15 ‘‘(e) CONFORMING CHANGES.—No funds are author16 ized to be appropriated to the National Endowment for

17 the Arts, the National Endowment for the Humanities,

18 the Institute of Museum Services, or the Corporation for

19 Public Broadcasting for any fiscal year beginning on or

20 after the date on which the Secretary of the Treasury first

21 distributes investment proceeds in accordance with sub22 section (c).

23 ‘‘(f) REFERENCES.—For purposes of—

24 ‘‘(1) title II investment proceeds distributed

25 under subsection (c) to the National Endowment for
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1 the Arts shall be deemed to be funds appropriated

2 to carry out such title;

3 ‘‘(2) title III investment proceeds distributed

4 under subsection (c) to the National Endowment for

5 the Humanities shall be deemed to be funds appro6 priated to carry out such title;

7 ‘‘(3) title IV investment proceeds distributed

8 under subsection (c) to the Institute for Museum

9 Services shall be deemed to be funds appropriated to

10 carry out such title; and

11 ‘‘(4) section 396 of the Communications Act of

12 1934 (47 U.S.C. 396), investment proceeds distrib13 uted under subsection (c) to the Corporation for

14 Public Broadcasting shall be deemed to be funds ap15 propriated to carry out such section.’’.

16 (b) CONFORMING AMENDMENT.—The Museum Serv17 ices Act (10 U.S.C. 961–969) is repealed.

18 SEC. 3. EFFECTIVE DATE.

19 This Act and the amendments made by this Act shall

20 take effect on October 1, 1995.

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