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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1520 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    This Act may be cited as the ``1% For Culture Act of 1995''.

SEC. 2. AMENDMENTS.

    (a) Amendment to the National Foundation on the Arts and the 
Humanities Act of 1965.--The National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 951-960) is amended to read as 
follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Arts, Humanities, 
and Museums Act of 1995'.
    ``(b) Table of Contents.--The table of contents 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.

     ``TITLE I--NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES

``SEC. 101. DECLARATION OF FINDINGS AND PURPOSES.

    ``The Congress finds and declares the following:
            ``(1) The arts and the humanities benefit and belong to all 
        the people of the United States. They are essential to cultural 
        survival and social, cultural, and economic progress.
            ``(2) The encouragement and support of national progress 
        and scholarship in the humanities and the arts, while primarily 
        a matter for private and local initiative, are also appropriate 
        matters of concern to the Federal Government.
            ``(3) An advanced civilization must not limit its efforts 
        to science and technology alone but must give full value and 
        support to the other great branches of scholarly and cultural 
        activity in order to achieve a better understanding of the 
        past, a better analysis of the present, and a better view of 
        the future.
            ``(4) Democracy demands wisdom and vision in its citizens. 
        It must therefore foster and support a form of education, and 
        access to the arts and the humanities, designed to make people 
        of all backgrounds and wherever located masters of their 
        technology and not its unthinking servants.
            ``(5) It is necessary and appropriate for the Federal 
        Government to further the advancement of the humanities and the 
        arts and the access of all Americans to the humanities and the 
        arts, in partnership with local, State, regional, and private 
        agencies, organizations, and individuals. In doing so, the 
        Government must be sensitive to the nature of public support 
        and the need to use public funding to advance the public good. 
        Public funding of the arts and humanities should contribute to 
        public support and confidence in the use of taxpayer funds. 
        Public funds provided by the Federal Government must ultimately 
        serve public purposes the Congress defines and must be subject 
        to the conditions that traditionally govern the use of public 
        money.
            ``(6) Federal support of the arts and the humanities 
        reflects the high place accorded by the American people to the 
        Nation's rich cultural heritage and to the fostering of mutual 
        respect for the diverse beliefs and values of all persons and 
        groups.
            ``(7) The practice of art and the study of the humanities 
        require constant dedication and devotion. While no government 
        can call a great artist or scholar into existence, it is 
        necessary and appropriate for the Federal Government to help 
        create and sustain not only a climate encouraging freedom of 
        thought, imagination, and inquiry but also the material 
        conditions facilitating the release of this creative talent.
            ``(8) The world leadership which has come to the United 
        States cannot rest solely upon superior power, wealth, and 
        technology, but must be solidly founded upon worldwide respect 
        and admiration for the Nation's high qualities as a leader in 
        the realm of ideas and of the spirit.
            ``(9) Americans should receive in school, background and 
        preparation in the arts and humanities to enable them to 
        recognize and appreciate the aesthetic dimensions of our lives, 
        the diversity of excellence that comprises our cultural 
        heritage, and artistic and scholarly expression. Increased 
        access to the arts and the humanities for all Americans, 
        including diverse cultures and urban and rural populations, 
        requires encouraging and developing quality education in the 
        arts and humanities at all levels, in conjunction with programs 
        of lifelong learning in the arts and humanities for all age 
        groups and with formal systems of elementary, secondary, and 
        postsecondary education; developing and stimulating research 
to teach quality education in the arts and humanities; and encouraging 
and facilitating the work of scholars, artists, arts institutions, and 
Federal, State, regional, and local agencies in the area of education 
in the arts and humanities.
            ``(10) It is vital to a democracy to honor and preserve its 
        multicultural artistic heritage as well as support new ideas, 
        and therefore it is essential to provide financial assistance 
        to its artists and the organizations that support their work.
            ``(11) To fulfill its educational mission, achieve an 
        orderly continuation of a free society, and provide models of 
        excellence to the American people, the Federal Government must 
        transmit the achievement and values of civilization from the 
        past via the present to the future, and make widely available 
        the greatest achievements of art.
            ``(12) In order to implement these findings and purposes, 
        it is desirable to establish a National Foundation on the Arts 
        and the Humanities.

``SEC. 102. NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES.

    ``(a) There is established a National Foundation on the Arts and 
the Humanities (hereinafter referred to as the `Foundation'), which 
shall be composed of a National Endowment for the Arts, a National 
Endowment for the Humanities, a Federal Council on the Arts and the 
Humanities, and an Institute of Museum Services.
    ``(b) The purpose of the Foundation shall be to develop and promote 
a broadly conceived national policy of support for the humanities and 
the arts in the United States and for institutions which preserve the 
cultural heritage of the United States pursuant to this title.
    ``(c) In the administration of this Act no department, agency, 
officer, or employee of the United States shall exercise any direction, 
supervision, or control over the policy determination, personnel, or 
curriculum, or the administration or operation of any school or other 
non-Federal agency, institution, organization, or association.
    ``(d) In any case in which any money or other property is donated, 
bequeathed, or devised to the Foundation without designation of the 
Endowment for the benefit of which the gift is intended, each 
Chairperson of an Endowment shall have authority to receive such gift. 
The gift shall be deemed to have been to that Endowment whose function 
it is to carry out the purpose of any condition or restriction on the 
gift. Unless the Chairpersons of the Endowments agree otherwise, the 
gift shall be deemed to have been in equal shares to each Endowment if 
the gift is unrestricted, if some purposes of a restriction are covered 
by one Endowment and some by the other Endowment, or if one or more of 
the purposes of a restriction is covered by both Endowments.
    ``(e) For the purpose of the income tax, gift tax, and estate tax 
laws of the United States, any money or other property donated, 
bequeathed, or devised to the Foundation or one of its Endowments and 
received by the Chairperson of an Endowment pursuant to authority 
derived under this section shall be deemed to have been donated, 
bequeathed, or devised to or for the use of the United States.

              ``TITLE II--NATIONAL ENDOWMENT FOR THE ARTS

``SEC. 201. DEFINITIONS.

    ``As used in this title--
            ``(1) the term `the arts' includes, but is not limited to, 
        music, dance, drama, creative writing, architecture, design, 
        painting, sculpture, photography, motion pictures, television, 
        radio, film, videotape, and sound recording; folk and 
        traditional arts practiced by the diverse peoples of this 
        country; graphic, digital, craft, and multimedia arts; the arts 
        related to the presentation, performance, execution, and 
        exhibition of such major art forms; and the study and 
        application of the arts to the human environment;
            ``(2) the term `Challenge funds' means those funds 
        appropriated under section 206(a)(3)(A) for the purpose of the 
        Challenge Program, as that Program is authorized in section 
        202(e);
            ``(3) the term `developing arts organization' means a local 
        arts organization of high artistic promise which--
                    ``(A) serves as an important source of local arts 
                programming in a community; and
                    ``(B) has the potential to develop artistically and 
                institutionally to broaden public access to the arts in 
                rural and innercity areas and other areas that are 
                underserved artistically;
            ``(4) the term `determined to be obscene' means determined, 
        in a final judgment of a court of record and of competent 
        jurisdiction in the United States, to be obscene;
            ``(5) the term `final judgment' means a judgment that is 
        either--
                    ``(A) not reviewed by any other court that has 
                authority to review such judgment; or
                    ``(B) is not reviewable by any other court;
            ``(6) for purposes of programs established pursuant to 
        section 202, the term `grant' includes loan, contract, and 
        cooperative agreement;
            ``(7) the term `group' includes any State or other public 
        agency, and any nonprofit society, institution, organization, 
        association, museum, or establishment in the United States, 
        whether or not incorporated;
            ``(8) the term `local arts agency' means a community 
        organization, or an agency of local government, that primarily 
        provides financial support, services, or other programs for a 
        variety of artists and arts organizations, for the benefit of 
        the community as a whole;
            ``(9) the term `obscene' means with respect to a project, 
        production, or workshop, that--
                    ``(A) the average person, applying contemporary 
                community standards, would find that such project, 
                production, or workshop, when taken as a whole, appeals 
                to the prurient interest;
                    ``(B) such project, production, or workshop depicts 
                or describes sexual conduct in a patently offensive 
                way; and
                    ``(C) such project, production, or workshop, when 
                taken as a whole, lacks serious literary, artistic, 
                political or scientific value;
            ``(10) the term `production' means plays (with or without 
        music), ballet, dance, choral performances, concerts, recitals, 
        operas, exhibitions, readings, motion pictures, television, 
        radio, film, videotape, sound recordings, and any other 
        activities involving the execution or rendition of the arts and 
        meeting such standards as may be approved by the Endowment;
            ``(11) the term `Program funds' means those funds 
        appropriated under section 206(a)(1)(A) for projects, 
        productions, and workshops consistent with those activities 
        authorized in section 202;
            ``(12) the term `project' means programs organized to carry 
        out the purposes of this title, including programs to foster 
        American artistic creativity, to commission works of art, to 
        create opportunities for individuals to develop artistic 
        talents when carried on as a part of a program otherwise 
        included in this definition, and to develop and enhance the 
        widest public access, knowledge and understanding of the arts, 
        and includes, where appropriate, rental or purchase of 
        facilities, purchase or rental of land, and acquisition of 
        equipment. Such term also includes--
                    ``(A) the renovation of facilities if--
                            ``(i) the amount of the expenditure of 
                        Federal funds for such purpose in the case of 
                        any project does not exceed $250,000; or
                            ``(ii) two-thirds of the members of the 
                        National Council on the Arts (who are present 
                        and voting) approve of the grant involving an 
                        expenditure for such purpose; and
                    ``(B) for purposes of Challenge grants under 
                section 202(e), the construction of facilities if--
                            ``(i) such construction is for 
                        demonstration purposes or under unusual 
                        circumstances where there is no other manner in 
                        which to accomplish an artistic purpose; and
                            ``(ii) two-thirds of the members of the 
                        National Council on the Arts (who are present 
                        and voting) approve of the grant involving an 
                        expenditure for such purpose;
            ``(13) the term `regional group' means any multistate 
        group, whether or not representative of contiguous States;
            ``(14) the term `State' includes, in addition to the 
        several States, the Commonwealth of Puerto Rico, the District 
        of Columbia, Guam, American Samoa, the Northern Mariana 
        Islands, and the Virgin Islands;
            ``(15) the term `Treasury funds' means those funds 
        appropriated under section 206(a)(2)(A) for the purposes of 
        designated projects and productions, consistent with those 
        activities authorized in section 202; and
            ``(16) the term `workshop' means a program the primary 
        purpose of which is to encourage the artistic development or 
        enjoyment of amateur, student, or other participants.

``SEC. 202. NATIONAL ENDOWMENT FOR THE ARTS.

    ``(a) There is established within the Foundation a National 
Endowment for the Arts.
    ``(b)(1) The Endowment shall be headed by a chairperson, to be 
known as the Chairperson of the National Endowment for the Arts, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate.
    ``(2) The term of office of the Chairperson shall be four years and 
the Chairperson shall be eligible for reappointment. The provisions of 
this subsection shall apply to any person appointed to fill a vacancy 
in the office of Chairperson. Upon expiration of the Chairperson's term 
of office the Chairperson shall serve until the Chairperson's successor 
shall have been appointed and shall have qualified.
    ``(c) The Chairperson, with the advice of the National Council on 
the Arts, is authorized to establish and carry out a program of grants 
to groups, or, in appropriate cases, individuals of exceptional talent 
engaged in or concerned with the arts, for the purpose of enabling them 
to provide or support projects, productions, and workshops that--
            ``(1) have substantial national or international artistic 
        and cultural significance, giving emphasis to American 
        creativity and cultural diversity and to the maintenance and 
        encouragement of professional excellence;
            ``(2) meet professional standards of authenticity or 
        tradition, irrespective of origin, which are of significant 
        merit and which, without such assistance, might otherwise be 
        unavailable to our citizens for geographic or economic reasons;
            ``(3) will encourage and assist artists and enable them to 
        achieve wider distribution of their works, to work in residence 
        at an educational or cultural institution, to achieve standards 
        of professional excellence, or to be honored for their 
        significant contributions;
            ``(4) have substantial artistic and cultural significance 
        and that reach, or reflect the culture of a racial, ethnic, 
        inner city, rural, or tribal community;
            ``(5) will encourage and develop public access, knowledge, 
        education, understanding, enjoyment, and appreciation of the 
        arts;
            ``(6) encourage arts at the local level;
            ``(7) enhance managerial and organizational skills and 
        capabilities;
            ``(8) use technology, including film, radio, video, 
        computers, and other advances in telecommunications to broaden 
        public access to the arts; or
            ``(9) involve otherwise relevant activities, including 
        surveys, research, evaluation, planning, and publications, 
        relating to the purposes of this subsection.
Any grant under this subsection awarded with Program funds must be 
matched in a ratio of at least one non-Federal dollar for every one 
Federal dollar. Any grant under this subsection awarded with Treasury 
funds must be matched in a ratio of at least three non-Federal dollars 
for every one Federal dollar.
    ``(d)(1) The Chairperson, with the advice of the National Council 
on the Arts, is authorized to establish and carry out a program of 
grants to assist the several States in supporting projects, 
productions, or workshops that meet the standards enumerated in 
subsection (c) of this section, and in developing projects, 
productions, or workshops in the arts in such a manner as will furnish 
adequate programs, facilities, and services in the arts to all the 
people and communities in each of the several States.
    ``(2) In order to receive assistance under this subsection in any 
fiscal year, a State shall submit an application for such grants at 
such time as shall be specified by the Chairperson and accompany such 
application with a plan which the Chairperson finds--
            ``(A) designates or provides for the establishment of a 
        State agency (hereinafter in this section referred to as the 
        `State agency') as the sole agency for the administration of 
        the State plan;
            ``(B) provides that funds paid to the State under this 
        subsection will be expended solely on projects, productions, or 
        workshops approved by the State agency which carry out one or 
        more of the objectives of subsection (c) of this section;
            ``(C) provides that the State agency will make such 
        reports, in such form and containing such information, as the 
        Chairperson may from time to time require, including a 
        description of the progress made toward achieving the goals of 
        the State plan;
            ``(D) provides--
                    ``(i) assurances that the State agency has held, 
                after reasonable notice, public meetings in the State 
                to allow all groups of artists, interested 
                organizations, and the public to present views and make 
                recommendations regarding the State plan; and
                    ``(ii) a summary of such recommendations and the 
                State agency's response to such recommendations; and
            ``(E) contains--
                    ``(i) a description of the level of participation 
                during the most recent preceding year for which 
                information is available by artists, artists' 
                organizations, and arts organizations in projects, 
                productions, or workshops for which financial 
                assistance is provided under this subsection;
                    ``(ii) for the most recent preceding year for which 
                information is available, a description of the extent 
                projects, productions, or workshops receiving financial 
                assistance from the State agency are available to all 
                people and communities in the State; and
                    ``(iii) a description of projects, productions, or 
                workshops receiving financial assistance under this 
                subsection that exist or are being developed to secure 
                wider participation of artists, artists' organizations, 
                and arts organizations identified under clause (i) of 
                this subparagraph or that address the availability of 
                the arts to all people or communities identified under 
                clause (ii) of this subparagraph.
No application may be approved unless the accompanying plan satisfies 
the requirements specified in this subsection.
    ``(3) Of the sums available to carry out this subsection for any 
fiscal year, each State which has a plan approved by the Chairperson 
shall be allotted at least $200,000. If the sums appropriated are 
insufficient to make the allotments under the preceding sentence in 
full, such sums shall be allotted among such States in equal amounts. 
In any case where the sums available to carry out this subsection for 
any fiscal year are in excess of the amount required to make the 
allotments under the first sentence of this paragraph--
            ``(A) the amount of such excess which is no greater than 25 
        per centum of the sums available to carry out this subsection 
        for any fiscal year shall be available only to the Chairperson 
        for making grants under this subsection to States and regional 
        groups; and
            ``(B) the amount of such excess, if any, which remains 
        after reserving in full for the Chairperson the amount required 
        under clause (A) shall be allotted among the States which have 
        plans approved by the Chairperson in equal amounts but in no 
        event shall any State be allotted less than $200,000.
    ``(4)(A) The amount of each allotment to a State for any fiscal 
year under this subsection shall be available to each State, which has 
a plan approved by the Chairperson in effect on the first day of such 
fiscal year, to pay not more than 50 per centum of the total cost of 
any project or production described in paragraph (1). The amount of any 
allotment made under paragraph (3) for any fiscal year which exceeds 
$125,000 shall be available, at the discretion of the Chairperson, to 
pay up to 100 per centum of such cost of projects, productions, or 
workshops if such projects, productions, or workshops would otherwise 
be unavailable to the residents of that State: Provided, that the total 
amount of any such allotment for any fiscal year which is exempted from 
such 50 per centum limitation shall not exceed 20 per centum of the 
total of such allotment for such fiscal year.
    ``(B) Any amount allotted to a State under the first sentence of 
paragraph (3) for any fiscal year which is not obligated by the State 
prior to 60 days prior to the end of the fiscal year for which such 
sums are appropriated shall be available for making grants to regional 
groups.
    ``(C) Funds made available under this subsection shall not be used 
to supplant non-Federal funds.
    ``(D) For purposes of paragraph (3)(B), the term `State' includes, 
in addition to the several States, only those special jurisdictions 
specified in section 201(f) which have a population of 200,000 or more, 
according to the latest decennial census.
    ``(5) All amounts allotted or made available under paragraph (3) 
for a fiscal year which are not granted to a State during such year 
shall be available at the end of such year to the National Endowment 
for the Arts for the purpose of carrying out subsection (c) of this 
section.
    ``(e) The Chairperson, with the advice of the National Council on 
the Arts, is authorized to establish and carry out a Challenge Program 
of grants to cultural organizations and institutions for the purpose of 
strengthening their quality by--
            ``(1) providing administrative and management improvements 
        for cultural organizations and institutions, particularly in 
        the field of long-range financial planning including, but not 
        limited to, increasing levels of community support and the 
        range of contributors to the programs of such cultural 
        organizations and institutions;
            ``(2) fostering greater citizen involvement in planning the 
        cultural development of their communities and enabling cultural 
        organizations and institutions to increase audience 
        participation in and appreciation of programs sponsored by the 
        cultural organizations and institutions;
            ``(3) providing additional support and stimulating greater 
        cooperation among State, local and private cultural 
        organizations and institutions to promote effective arts 
        activity and to better serve the communities in which the 
        cultural organizations and institutions are located; and
            ``(4) stimulating artistic activity and awareness which are 
        in keeping with the varied cultural traditions of this Nation.
Challenge funds must be matched in a ratio of at least three non-
Federal dollars for every one Federal dollar.
    ``(f) The Chairperson of the National Endowment for the Arts, with 
the advice of the National Council on the Arts, is authorized to carry 
out a program of grants to States for the purposes of--
            ``(1) enhancing the artistic capabilities of developing 
        arts organizations through artistic, programmatic, and staff 
        development;
            ``(2) providing technical assistance to developing arts 
        organizations to improve managerial and organizational skills, 
        financial systems management, and long-range fiscal planning; 
        and
            ``(3) stimulating artistic activity and awareness, and 
        broadening public access to the arts, in rural, innercity and 
        other areas that are underserved artistically.
Grants under this subsection are subject to the matching requirements 
set forth in subsection (c).
    ``(g) The Chairperson of the National Endowment for the Arts, with 
the advice of the National Council on the Arts, is authorized to 
establish and carry out a program of grants to any State or other 
public agency, individual, artist, any nonprofit society, performing 
and nonperforming arts and educational institution or organization, 
association, or museum in the United States, in order to foster and 
encourage exceptional talent, public knowledge, understanding, and 
appreciation of the arts, and to support the education, training, and 
development of this Nation's artists, through projects, productions, 
and workshops that will--
            ``(1) promote and improve the availability of arts 
        instruction and improve the quality of arts education through 
        support of life-long learning in the arts;
            ``(2) enhance the quality of arts instruction in programs 
        of teacher education;
            ``(3) develop arts faculty resources and talents;
            ``(4) support and encourage the development of improved 
        curriculum materials in the arts;
            ``(5) improve evaluation and assessment of education in the 
        arts programs and instruction;
            ``(6) foster cooperative programs with the Department of 
        Education and other Federal agencies and encourage partnerships 
        between arts and education agencies and organizations at State 
        and local levels as well as among arts organizations, 
        businesses, and educational and cultural institutions;
            ``(7) support apprenticeships, internships, and other 
        career oriented work-study experiences for artists and arts 
        teachers, and encourage residencies of artists at all 
        educational levels;
            ``(8) support the use of technology and improved facilities 
        and resources in education in the arts programs at all levels; 
        and
            ``(9) foster the development of demonstration projects, 
        demonstration productions, demonstration workshops, and 
        demonstration programs in arts education and collect, and make 
        available to the public, information on their implementation 
        and effectiveness.
Grants under this subsection are subject to the matching requirements 
set forth in subsection (c).
    ``(h) The Chairperson of the National Endowment for the Arts shall, 
in ongoing consultation with State and local agencies, relevant 
organizations, and relevant Federal agencies, continue to develop and 
implement a practical system of national information and data 
collection and public dissemination on the arts, artists and arts 
groups, and their audiences. Such system shall include artistic and 
financial trends in the arts, trends in audience participation, and 
trends in arts education on national, regional, and State levels. Such 
system shall also include information regarding the availability of the 
arts to various audience segments, including rural communities. Such 
system shall be used, along with a summary of the data submitted with 
State plans under subsection (d) of this section, to prepare a periodic 
report on the state of the arts in the Nation. The state of the arts 
report shall include a description of the availability of the 
Endowment's programs to emerging, rural, and culturally diverse 
artists, arts organizations, and communities and of the participation 
by such artists, organizations, and communities in such programs. The 
state of the arts report shall be submitted to the President and the 
Congress, and provided to the States, not later than October l, l996, 
and quadrennially thereafter.
    ``(i) No grant shall be made under this section except upon 
application therefor which is submitted to the National Endowment for 
the Arts in accordance with procedures established by the Chairperson. 
In establishing such procedures, the Chairperson shall ensure that--
            ``(1) artistic excellence and artistic merit are the 
        criteria by which applications are judged by review panels, 
        taking into consideration general standards of decency and 
        respect for the diverse beliefs and values of the American 
        public;
            ``(2) in selecting individuals and groups of exceptional 
        talent as recipients of financial assistance, the Chairperson 
        shall give particular regard to artistically underserved areas 
        and artists and artistic groups that have traditionally been 
        underrepresented;
            ``(3) applications and awards of financial assistance are 
        consistent with the purposes of this section. Such procedures 
        shall clearly indicate that obscenity is without artistic 
        merit, is not protected speech, and shall not be funded. 
        Projects, productions, and workshops that are determined to be 
        obscene are prohibited from receiving financial assistance 
        under this title from the National Endowment for the Arts.
The disapproval or approval of an application by the Chairperson shall 
not be construed to mean, and shall not be considered as evidence that, 
the project, production, or workshop, for which the applicant requested 
financial assistance, is or is not obscene.
    ``(j) The Chairperson of the National Endowment for the Arts shall 
utilize advisory panels as the first step in the review of 
applications, and to make recommendations to the National Council on 
the Arts in all cases except cases in which the Chairperson exercises 
authority delegated under section 203(f). When reviewing applications, 
such panels shall recommend applications for projects, productions, and 
workshops solely on the basis of artistic excellence and artistic 
merit. The Chairperson shall establish procedures to--
            ``(1) ensure that all panels are composed, to the extent 
        practicable, of individuals reflecting a wide geographic, 
        ethnic, and minority representation as well as individuals 
        reflecting diverse artistic and cultural points of view;
            ``(2) ensure that all panels include representation of lay 
        individuals who are knowledgeable about the arts but who are 
        not engaged in the arts as a profession and are not employees 
        of either artists' organizations or arts organizations;
            ``(3) ensure that, when feasible, the procedures used by 
        panels to carry out their responsibilities are standardized;
            ``(4) require panels--
                    ``(A) to create written records summarizing--
                            ``(i) all meetings and discussions of such 
                        panel; and
                            ``(ii) the recommendations made by such 
                        panel to the Council; and
                    ``(B) make such records available to the public in 
                a manner that protects the privacy of individual 
                applicants and panel members;
            ``(5) require, when necessary and feasible, the use of site 
        visits to view the work of the applicant and deliver a written 
        report on the work being reviewed, in order to assist panelists 
        in making their recommendations; and
            ``(6) require that the membership of each panel change 
        substantially from year to year and to provide that each 
        individual is ineligible to serve on a panel for more than 3 
        consecutive years.
In making appointments to panels, the Chairperson shall ensure that an 
individual who has a pending application for financial assistance under 
this chapter, or who is an employee or agent of an organization with a 
pending application, does not serve as a member of any panel before 
which such application is pending. The prohibition described in the 
preceding sentence shall commence with respect to such individual 
beginning on the date such application is submitted and shall continue 
for so long as such application is pending.
    ``(k) It shall be a condition of the receipt of financial 
assistance provided under this section by the Chairperson that--
            ``(1) each applicant for such assistance include in its 
        application--
                    ``(A) a detailed description of the proposed 
                project, production, or workshop for which assistance 
                is requested; and
                    ``(B) a timetable for the completion of such 
                proposed project, production, or workshop.
            ``(2) each grant recipient shall agree to and comply with 
        requirements to submit--
                    ``(A) an assurance that the grant recipient will 
                strive to meet the standard of artistic excellence and 
                artistic merit;
                    ``(B) interim reports, including an annual report 
                for each project, production or workshop carried out 
                during a period exceeding one year, describing the 
                grant recipient's progress in carrying out such 
                project, production, or workshop and compliance with 
                the conditions of receipt of such assistance;
                    ``(C) financial reports containing such information 
                as the Chairperson deems necessary to ensure that such 
                financial assistance is expended in accordance with the 
                terms and conditions under which it is provided;
                    ``(D) a final report to the Chairperson describing 
                the project, production, or workshop carried out with 
                such financial assistance and the grant recipient's 
                compliance with the conditions of receipt of such 
                assistance; and
                    ``(E) if practicable, as determined by the 
                Chairperson, a copy of such project or production.
The Chairperson shall determine the appropriate form and timing of 
interim reporting for grant recipients. The final report shall be due 
not later than 90 days after the end of the period for which the grant 
recipient receives assistance or the completion of the project, 
production, or workshop, whichever occurs earlier. The Chairperson may 
extend the 90-day period only if the recipient shows good cause why 
such an extension should be granted.
    ``(l) The Chairperson of the National Endowment for the Arts shall 
conduct a post-award evaluation of projects, productions, and workshops 
for which financial assistance is provided by the Endowment under 
section 202. Such evaluation may include an audit to determine the 
accuracy of the reports required to be submitted by recipients under 
subsection (k).
    ``(m) The Chairperson shall establish procedures to provide for the 
distribution of financial assistance to recipients in installments 
except in those cases where the Chairperson determines that 
installments are not practicable. In implementing any such 
installments, the Chairperson shall ensure that--
            ``(1) not more than two-thirds of such assistance may be 
        provided at the time such application is approved; and
            ``(2) the remainder of such assistance may not be provided 
        until the Chairperson receives an interim report described in 
        subsection (k)(2)(B) and finds that the recipient of such 
        assistance is complying substantially with this section and 
        with the conditions under which such assistance is provided to 
        such recipient.
    ``(n) The Inspector General of the Endowment shall conduct 
appropriate reviews to ensure that recipients of financial assistance 
under this section comply with the applicable regulations and 
procedures established under this title including regulations relating 
to accounting and financial matters.
    ``(o) It shall be a condition of the receipt of any grant under 
this section that the group or individual of exceptional talent or the 
State or State agency receiving such grant furnish adequate assurances 
to the Secretary of Labor that--
            ``(1) all professional performers and related or supporting 
        professional personnel (other than laborers and mechanics with 
        respect to whom labor standards are prescribed in subsection 
        (p) of this section) employed on projects or productions which 
        are financed in whole or in part under this section will be 
        paid, without subsequent deduction or rebate on any account, 
        not less than the minimum compensation as determined by the 
        Secretary of Labor to be the prevailing minimum compensation 
        for persons employed in similar activities; and
            ``(2) no part of any project or production which is 
        financed in whole or in part under this section will be 
        performed or engaged in under working conditions which are 
        unsanitary or hazardous or dangerous to the health and safety 
        of the employees engaged in such project or production. 
        Compliance with the safety and sanitary laws of the State in 
        which the performance or part thereof is to take place shall be 
        prima facie evidence of compliance. The Secretary of Labor 
        shall have the authority to prescribe standards, regulations, 
        and procedures as the Secretary of Labor may deem necessary or 
        appropriate to carry out the provisions of this subsection.
    ``(p) It shall be a condition of the receipt of any grant under 
this section that the group or individual of exceptional talent or the 
State or State agency receiving such grant furnish adequate assurances 
to the Secretary of Labor that all laborers and mechanics employed by 
contractors or subcontractors on construction projects assisted under 
this section shall be paid wages at rates not less than those 
prevailing on similar construction in the locality as determined by the 
Secretary of Labor in accordance with the Davis-Bacon Act, as amended 
(40 U.S.C. 276a-5). The Secretary of Labor shall have with respect to 
the labor standards specified in this subsection the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 
3176; 5 U.S.C. 133z-15) and section 2 of the Act of June 13, 1934, as 
amended (40 U.S.C. 276c).
    ``(q) The Chairperson shall correlate the programs of the National 
Endowment for the Arts, insofar as practicable, with existing Federal 
programs and with those undertaken by other public agencies or private 
groups, and shall develop the programs of the Endowment with due regard 
to the contribution to the objectives of this title which can be made 
by other Federal agencies under existing programs. The Chairperson may 
enter into interagency agreements to promote or assist with the arts-
related activities of other Federal agencies, on a reimbursable or 
nonreimbursable basis, and may use funds authorized to be appropriated 
for the purposes of this title for the costs of such activities.

``SEC. 203. NATIONAL COUNCIL ON THE ARTS.

    ``(a) There shall be, within the National Endowment for the Arts, a 
National Council on the Arts (hereinafter in this section referred to 
as the `Council').
    ``(b) The Council shall be composed of the Chairperson of the 
National Endowment for the Arts, who shall be Chairperson of the 
Council, and twenty-six other members appointed by the President, by 
and with the advice and consent of the Senate, who shall be selected--
            ``(1) from among private citizens of the United States who 
        (A) are widely recognized for their broad knowledge of, or 
        expertise in, or for their profound interest in, the arts and 
        (B) have established records of distinguished service, or 
        achieved eminence, in the arts;
            ``(2) so as to include practicing artists, civic cultural 
        leaders, members of the museum profession, and others who are 
        professionally engaged in the arts; and
            ``(3) so as collectively to provide an appropriate 
        distribution of membership among the major art fields.
The President is requested, in the making of such appointments, to give 
consideration to such recommendations as may, from time to time, be 
submitted to the President by leading national organizations in these 
fields. In making such appointments, the President shall give due 
regard to equitable representation of women, racially and ethnically 
diverse individuals, and individuals with disabilities who are involved 
in the arts. Members of the Council shall be appointed so as to 
represent equitably all geographical areas in the United States.
    ``(c) Each member shall hold office for a term of six years, and 
the terms of office shall be staggered. The terms of office of all 
Council members shall expire on the third day of September in the year 
of expiration. No member shall be eligible for reappointment during the 
two-year period following the expiration of such member's term. Any 
member appointed to fill a vacancy shall serve for the remainder of the 
term for which such member's predecessor was appointed. Notwithstanding 
any other provision of this subsection, a member shall serve after the 
expiration of such member's term until such member's successor takes 
office.
    ``(d) Members shall receive compensation at a rate to be fixed by 
the Chairperson but not to exceed the per diem equivalent of the 
maximum rate of pay payable under section 5376 of title 5 of the United 
States Code and be allowed travel expenses including per diem in lieu 
of subsistence, as authorized by law (section 5703 of title 5 of the 
United States Code) for persons in the Government service employed 
intermittently.
    ``(e)(1) The Council shall meet at the call of the Chairperson but 
not less often than twice during each calendar year. Fourteen members 
of the Council shall constitute a quorum. All policy meetings of the 
Council shall be open to the public.
    ``(2) The Council shall--
            ``(A) create written records summarizing--
                    ``(i) all meetings and discussions of the Council; 
                and
                    ``(ii) the recommendations made by the Council to 
                the Chairperson;
            ``(B) make such records available to the public in a manner 
        that protects the privacy of individual applicants, panel 
        members, and Council members;
            ``(C) advise the Chairperson with respect to policies, 
        programs, and procedures for carrying out the Chairperson's 
        functions, duties, or responsibilities under this title, and 
        review applications for financial assistance under this 
        subchapter and make recommendations to the Chairperson with 
        respect to the approval of each application and the amount of 
        financial assistance (if any) to provide to each applicant;
            ``(D) make recommendations to the Chairperson concerning--
                    ``(i) whether to approve particular applications 
                for financial assistance under this title that have 
                been determined by panels to have artistic excellence 
                and artistic merit; and
                    ``(ii) the amount of financial assistance the 
                Chairperson should provide with respect to each such 
                application the Council recommends for approval.
    ``(f) The Chairperson shall not approve or disapprove any 
application until the Chairperson has received the recommendation of 
the Council on such application. The Chairperson shall have final 
authority to approve each application, except that the Chairperson may 
only provide to an applicant the amount of financial assistance 
recommended by the Council and may not approve an application with 
respect to which the Council makes a negative recommendation. In the 
case of an application or amendment involving $35,000 or less or a 
change in the grant amount of 20 percent or less, the Chairperson may 
approve or disapprove such request if such action is taken pursuant to 
the terms of an expressed and direct delegation of authority from the 
Council to the Chairperson, and provided that each such action by the 
Chairperson shall be reported to the Council at its next regularly 
scheduled meeting. Such action by the Chairperson shall be used with 
discretion and shall not become a normal practice of providing 
assistance. In addition, the terms of any such delegation of authority 
shall not permit obligations for expenditure of funds under such 
delegation for any fiscal year which exceed an amount equal to 10 per 
centum of the sums appropriated for that fiscal year pursuant to 
section 206(a)(1)(A).

``SEC. 204. NATIONAL MEDAL OF ARTS.

    ``(a) There is hereby established a National Medal of Arts, which 
shall be a medal of such design as is deemed appropriate by the 
President, on the basis of recommendations submitted by the National 
Council on the Arts, and which shall be awarded as provided in 
subsection (b) of this section.
    ``(b)(1) The President shall from time to time award the National 
Medal of Arts, on the basis of recommendations from the National 
Council on the Arts, to individuals or groups who in the President's 
judgment are deserving of special recognition by reason of their 
outstanding contributions to the excellence, growth, support, and 
availability of the arts in the United States.
    ``(2) Not more than twelve of such medals may be awarded in any 
calendar year.
    ``(3) An individual may be awarded the National Medal of Arts only 
if at the time such award is made such individual--
            ``(A) is a citizen or other national of the United States; 
        or
            ``(B) is an alien lawfully admitted to the United States 
        for permanent residence who (i) has filed an application or 
        petition for naturalization in the manner prescribed by section 
        334 of the Immigration and Nationality Act (8 U.S.C. 1445) and 
        (ii) is not permanently ineligible to become a citizen of the 
        United States.
    ``(4) A group may be awarded the National Medal of Arts only if 
such group is organized or incorporated in the United States.
    ``(5) The presentation of the National Medal of Arts shall be made 
by the President with such ceremonies as the President may deem proper, 
including attendance by appropriate Members of Congress.
    ``(c) Funds made available to the National Endowment for the Arts 
shall be used to carry out this section.

``SEC. 205. ADMINISTRATIVE PROVISIONS.

    ``(a) In addition to any authorities vested in the Chairperson by 
other provisions of this title, the Chairperson of the National 
Endowment for the Arts in carrying out the Chairperson's functions, 
shall have authority to--
            ``(1) prescribe such regulations and procedures as the 
        Chairperson deems necessary governing the manner in which the 
        Chairperson's functions shall be carried out;
            ``(2) solicit, accept, receive, invest, and use money and 
        property donated, bequeathed, or devised to such Endowment, 
        either absolutely or in trust, with or without a condition or 
        restriction, including a condition that the Chairperson use 
        other funds of the Endowment for the purposes of the gift, and 
        to use, sell, or otherwise dispose of such property for 
        purposes of carrying out the Endowment's functions. All such 
        gifts shall be added to the appropriation for the Endowment for 
        purposes of carrying out the Endowment's functions under this 
        title;
            ``(3) appoint employees, subject to the civil service laws, 
        as necessary to carry out the Chairperson's functions, define 
        their duties, and supervise and direct their activities;
            ``(4) utilize experts and consultants, including panels of 
        experts, who may be employed as authorized by section 3109 of 
        title 5, United States Code;
            ``(5) accept and utilize the services of voluntary and 
        uncompensated personnel and reimburse them for travel expenses, 
        including per diem, as authorized by law (section 5703 of title 
        5 of the United States Code) for persons in the Government 
        service employed without compensation;
            ``(6) make advance, progress, and other payments without 
        regard to section 3324 of title 31, United States Code;
            ``(7) rent office space in the District of Columbia; and
            ``(8) make other necessary expenditures.
    ``(b) Any group shall be eligible for financial assistance pursuant 
to this title only if--
            ``(1) no part of its net earnings inures to the benefit of 
        any private stockholder or stockholders, or individual or 
        individuals, and
            ``(2) donations to such group are allowable as a charitable 
        contribution under the standards of section 170(c) of the 
        Internal Revenue Code of 1986 (26 U.S.C. 170(c)).
    ``(c) Any loans made by the Chairperson under this title shall be 
made in accordance with terms and conditions approved by the Secretary 
of the Treasury.
    ``(d) The Chairperson may waive matching requirements under section 
202 for designated grantees, except that not more than 20 percent of 
the funds allotted by the National Endowment for the Arts for grants 
under section 202 in any fiscal year may be available for grants in 
that fiscal year without regard to such limitation.
    ``(e) The Chairperson of the National Endowment for the Arts shall 
submit an annual report to the President for transmittal to the 
Congress on or before the 15th day of April of each year. The report 
shall summarize the activities of the Endowment for the preceding year, 
and may include such recommendations as the Chairperson deems 
appropriate.
    ``(f) The National Council on the Arts may submit an annual report 
to the President for transmittal to the Congress on or before the 15th 
day of April of each year setting forth a summary of its activities 
during the preceding year or its recommendations for any measures which 
it considers necessary or desirable.
    ``(g) Official publications of the Endowment under this title may 
be supported without regard for the provisions of section 501 of title 
44, United States Code, only if the Chairperson consults with the Joint 
Committee on Printing of the Congress and the Chairperson submits to 
the Committee on Labor and Human Resources of the Senate and the 
Committee on Economic and Educational Opportunities of the House of 
Representatives a report justifying any exemption from such section 
501.
    ``(h) If any grant recipient substantially fails to satisfy the 
purposes for which such financial assistance is provided or the 
requirements of subsection (k) of section 202, as determined by the 
Chairperson, then the Chairperson may--
            ``(1) for purposes of determining whether to provide any 
        subsequent financial assistance, take into consideration the 
        results of the post-award evaluation conducted under subsection 
        (l) of section 202;
            ``(2) prohibit the recipient of such financial assistance 
        to use the name of, or in any way associate such project, 
        production, or program with the Endowment; and
            ``(3) if such project, production, or program is published, 
        require that the publication contain the following statement: 
        `The opinions, findings, conclusions, and recommendations 
        expressed herein do not reflect the views of the National 
        Endowment for the Arts.'.
    ``(i) Whenever the Chairperson, after reasonable notice and 
opportunity for hearing, finds that--
            ``(1) a grantee is not complying substantially with the 
        provisions of this title;
            ``(2) a State agency is not complying substantially with 
        terms and conditions of its State plan approved under this 
        title; or
            ``(3) any funds granted to a grantee or State agency under 
        this title have been diverted from the purposes for which they 
        were allotted or paid, the Chairperson shall immediately notify 
        the grantee or State agency with respect to which such finding 
        was made that no further grants will be made under this 
        subtitle to such grantee or agency until there is no longer any 
        default or failure to comply or the diversion has been 
        corrected, or, if compliance or correction is impossible, until 
        such grantee or agency repays or arranges the repayment of the 
        Federal funds which have been improperly diverted or expended.
    ``(j)(1) If, after reasonable notice and opportunity for a hearing 
on the record, the Chairperson determines that a recipient of financial 
assistance provided under this title by the Chairperson or any non-
Federal entity, used such financial assistance for a project, 
production, or workshop that is determined to be obscene, then the 
Chairperson shall require that until such recipient repays such 
assistance (in such amount, and under such terms and conditions, as the 
Chairperson determines to be appropriate) to the Endowment, no 
subsequent financial assistance be provided under this title to such 
recipient.
    ``(2) Financial assistance repaid under this section to the 
Endowment shall be deposited in the Treasury of the United States and 
credited as miscellaneous receipts.
    ``(3)(A) This subsection shall not apply with respect to financial 
assistance provided before October 1, 1990.
    ``(B) This subsection shall not apply with respect to a project, 
production, or workshop after the expiration of the 7-year period 
beginning on the latest date on which financial assistance is provided 
under this title for such project, production, or workshop.

``SEC. 206. AUTHORIZATION OF APPROPRIATIONS.

    ``(a)(1)(A) For the purpose of carrying out subsections (c), (d), 
(f), and (g) of section 202, there are authorized to be appropriated to 
the National Endowment for the Arts such sums as may be necessary for 
fiscal years 1996, 1997, 1998, 1999, 2000, and 2001.
    ``(B) Not less than 27.5 percent of the amount appropriated for the 
respective fiscal year under subsection (A) shall be for carrying out 
section 202(d).
    ``(C) Not less than 7.5 percent of the amount appropriated for the 
respective fiscal year under subsection (A) shall be for carrying out 
programs under section 202(f)(3) (relating to programs to expand public 
access to the arts in rural and innercity areas). Not less than 50 
percent of the funds required by this clause to be used for carrying 
out such programs shall be used for carrying out such programs in rural 
areas.
    ``(D) In any fiscal year in which the aggregate amount of funds 
appropriated to the National Endowment for the Arts under subsection 
(A) exceeds $175,000,000, 50 percent of such excess shall be available 
to carry out section 202(g), except that in each fiscal year, the 
amount made available to carry out section 202(g) shall not exceed 
$40,000,000, in the aggregate.
    ``(2) There are authorized to be appropriated for each fiscal year 
ending before October 1, 2001, to the National Endowment for the Arts 
an additional amount for Treasury Funds, equal to the sum of--
            ``(A) the total amounts received by such Endowment under 
        section 205(a)(2), including the value of property donated, 
        bequeathed, or devised to such Endowment; and
            ``(B) the total amounts received by the grantees of such 
        Endowment from non-Federal sources, including the value of 
        property donated, bequeathed, or devised to such grantees, for 
        use in carrying out projects and other activities under section 
        202(c).
    ``(3) There are authorized to be appropriated for each fiscal year 
ending before October 1, 2001, to the National Endowment for the Arts 
an additional amount for Challenge Funds, equal to the sum of--
            ``(A) the total amounts received by such Endowment under 
        section 205(a)(2) for use in carrying out activities under 
        section 202(e); and
            ``(B) the total amounts received by the grantees of such 
        Endowment from non-Federal sources, including the value of 
        property donated, bequeathed, or devised to such grantees, for 
        use in carrying out activities under section 202(e).
    ``(b)(1) Sums appropriated pursuant to subsection (a) of this 
section for any fiscal year shall remain available for obligation and 
expenditure until expended.
    ``(2) In order to afford adequate notice to interested persons of 
available assistance under this title, appropriations authorized under 
subsection (a) of this section are authorized to be included in the 
measure making appropriations for the fiscal year preceding the fiscal 
year for which such appropriations become available for obligation.
    ``(c) There are authorized to be appropriated to the National 
Endowment for the Arts such sums as may be necessary for fiscal years 
1996, 1997, 1998, 1999, 2000, and 2001, to administer the provisions of 
this title, or any other program for which the Chairperson of the 
National Endowment for the Arts is responsible, including not to exceed 
$100,000 for each such fiscal year for official reception and 
representation expenses.

           ``TITLE III--NATIONAL ENDOWMENT FOR THE HUMANITIES

``SEC. 301. DEFINITIONS.

    ``As used in this title--
            ``(1) the term `humanities' includes, but is not limited 
        to, the study and interpretation of the following: language, 
        both modern and classical; linguistics; literature; history; 
        jurisprudence; philosophy; archaeology; comparative religion; 
        ethics; the history, criticism, and theory of the arts; 
        folklore and folklife; those aspects of the social sciences 
        which have humanistic content and employ humanistic methods; 
        and the study and application of the humanities to the human 
        environment with particular attention to reflecting our diverse 
        heritage, traditions, and history and to the relevance of the 
        humanities to the current conditions of national life;
            ``(2) the term `project' means programs organized to carry 
        out the purposes of this title, such term also includes--
                    ``(A) the renovation of facilities if--
                            ``(i) the amount of the expenditure of 
                        Federal funds for such purpose in the case of 
                        any project does not exceed $250,000, or
                            ``(ii) two-thirds of the members of the 
                        National Council on the Humanities (who are 
                        present and voting) approve of the grant or 
                        contract involving an expenditure for such 
                        purpose; and
                    ``(B) for purposes of sections 302(c)(10) and 
                302(h) only, the construction of facilities if--
                            ``(i) such construction is for 
                        demonstration purposes or under unusual 
                        circumstances where there is no other manner in 
                        which to accomplish a humanistic purpose; and
                            ``(ii) two-thirds of the members of the 
                        National Council on the Humanities (who are 
                        present and voting) approve of the grant or 
                        contract involving an expenditure for such 
                        purpose;
            ``(3) the term `State' includes, in addition to the several 
        States, the Commonwealth of Puerto Rico, the District of 
        Columbia, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and the Virgin Islands of the United 
        States;
            ``(4) the term `workshop' means an activity the primary 
        purpose of which is to promote scholarship and teaching among 
        the participants;
            ``(5) the term `arrangements' means any form of financial 
        assistance, including contracts, grants, or other forms of 
        assistance and loans made in accordance with terms and 
        conditions approved by the Secretary of the Treasury; and
            ``(6) the term `program income' means any money that is 
        earned or received by a grantee or a subrecipient from the 
        activities supported by grant funds or from products resulting 
        from or related to grant activities. It includes, but is not 
        limited to, income from fees for services performed and from 
        the sale of items fabricated under a grant; income from 
        licensing fees on products related to the grant activities; 
        usage or rental fees for equipment or property acquired under a 
        grant; admission fees; broadcast or distribution rights; and 
        royalties on patents and copyrights.

``SEC. 302. ESTABLISHMENT OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES.

    ``(a) There is established within the Foundation the National 
Endowment for the Humanities.
    ``(b)(1) The Endowment shall be headed by a chairperson, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate.
    ``(2) The term of office of the Chairperson shall be four years, 
and the Chairperson shall be eligible for reappointment. The provisions 
of this paragraph shall apply to any person appointed to fill a vacancy 
in the office of the Chairperson. Upon expiration of the Chairperson's 
term of office the Chairperson shall serve until the Chairperson's 
successor shall have been appointed and shall have qualified.
    ``(c) The Chairperson, with the advice of the National Council on 
the Humanities (hereinafter established), is authorized to enter into 
arrangements to--
            ``(1) develop and encourage the pursuit of a national 
        policy for the promotion of progress and scholarship in the 
        humanities;
            ``(2) initiate and support research and programs to 
        strengthen the research and teaching potential of the United 
        States in the humanities;
            ``(3) initiate and support training and workshops in the 
        humanities (fellowships awarded to individuals under this 
        authority may be for the purpose of study or research at 
        appropriate non-profit institutions selected by the recipient 
        of such aid, for stated periods of time);
            ``(4) initiate and support programs and research which have 
        substantial scholarly and cultural significance and that reach, 
        or reflect the diversity and richness of our American cultural 
        heritage, including the culture of, a minority, inner city, 
        rural, or tribal community;
            ``(5) foster international programs and exchanges;
            ``(6) foster the interchange of information in the 
        humanities;
            ``(7) foster education in, and public understanding and 
        appreciation of the humanities;
            ``(8) support the publication of scholarly works in the 
        humanities;
            ``(9) insure that the benefit of its programs will also be 
        available to our citizens where such programs would otherwise 
        be unavailable due to geographic or economic reasons; and
            ``(10) foster programs and projects that provide access to, 
        and preserve materials important to research, education, and 
        public understanding of, the humanities.
In selecting individuals and groups of exceptional talent as recipients 
of financial assistance to be provided under this subsection, the 
Chairperson shall give particular regard to underserved scholars, and 
educational and cultural institutions, that have traditionally been 
underrepresented.
    ``(d) The Chairperson shall coordinate the programs of the National 
Endowment for the Humanities, insofar as practicable, with existing 
Federal programs, designated State humanities agencies and with those 
undertaken by other public agencies or private groups, and shall 
develop the programs of the Endowment with due regard to the 
contribution to the objectives of this title which can be made by other 
Federal agencies under existing programs.
    ``(e) The total amount of any grant under subsection (c)(3) to any 
group engaging in workshop activities for which an admission or other 
charge is made to the general public shall not exceed 30 per centum of 
the total cost of such activities.
    ``(f)(1) The Chairperson, with the advice of the National Council 
on the Humanities, is authorized, in accordance with the provisions of 
this subsection, to establish and carry out a program of grant-in-aid 
in each of the several States in order to support not more than 50 per 
centum of the cost of existing activities which meet the standards 
enumerated in subsection (c) of this section or to match contributions 
from non-Federal sources made to a trust fund the purpose of which is 
to provide long-term financial support for programs which meet the 
standards enumerated in subsection (c) of this section and in order to 
develop a program in the humanities in such a manner as will furnish 
adequate programs in the humanities in each of the several States.
    ``(2)(A) Whenever a State desires to designate or to provide for 
the establishment of a State agency as the sole agency for the 
administration of the State plan, such State shall designate the 
humanities council in existence on the date the State agency is 
established as the State agency, and shall match from State funds a sum 
equal to 50 per centum of that portion of Federal financial assistance 
received by such State under this subsection which is described in the 
first sentence of paragraph (4) relating to the minimum State grant, or 
25 per centum of the total amount of Federal financial assistance 
received by such State under this subsection, whichever is greater, for 
the fiscal year involved. In any State in which the State selects the 
option described in this subparagraph, the State shall submit, before 
the beginning of each fiscal year, an application for grants and 
accompany such application with a plan which the Chairperson finds--
            ``(i) designates or provides for the establishment of a 
        State agency (hereinafter in this section referred to as the 
        `State agency') as the sole agency for the administration of 
        the State plan;
            ``(ii) provides that the chief executive officer of the 
        State will appoint new members to the State humanities council 
        designated under the provisions of this subparagraph, as 
        vacancies occur as a result of the expiration of the terms of 
        members of such council, until the chief executive officer has 
        appointed all of the members of such council;
            ``(iii) provides, from State funds, an amount equal to 50 
        per centum of that portion of Federal financial assistance 
        received by such State under this subsection which is described 
        in the first sentence of paragraph (4) relating to the minimum 
        State grant, or 25 per centum of the total amount of Federal 
        financial assistance received by such State under this 
        subsection, whichever is greater, for the fiscal year involved;
            ``(iv) provides that funds paid to the State under this 
        subsection will be expended solely on programs approved by the 
        State agency which carry out the objectives of subsection (c) 
        of this section and which are designed to bring the humanities 
        to the public;
            ``(v) provides assurances that State funds will be newly 
        appropriated for the purpose of meeting the requirements of 
        this subparagraph;
            ``(vi) provides that the State agency will make such 
        reports, in such form and containing such information, as the 
        Chairperson may require, including a description of the 
        progress made toward achieving the goals of the State plan;
            ``(vii) provides--
                    ``(I) assurances that the State agency has held, 
                after reasonable notice, public meetings in the State 
                to allow scholars, interested organizations, and the 
                public to present views and make recommendations 
                regarding the State plan; and
                    ``(II) a summary of such recommendations and of the 
                response of the State agency to such recommendations; 
                and
            ``(viii) contains--
                    ``(I) a description of the level of participation 
                during the most recent preceding year for which 
                information is available by scholars and scholarly 
                organizations in programs receiving financial 
                assistance under this subsection;
                    ``(II) for the most recent preceding year for which 
                information is available, a description of the extent 
                to which the programs receiving financial assistance 
                under this subsection are available to all people and 
                communities in the State; and
                    ``(III) a description of programs receiving 
                financial assistance under this subsection that exist 
                or are being developed to secure wider participation of 
                scholars and scholarly organizations identified under 
                subclause (I) of this clause or that address the 
                availability of the humanities to all people or 
                communities identified under subclause (II) of this 
                clause.
No application may be approved unless the accompanying plan satisfies 
the requirements specified in this subsection.
    ``(B) In any State in which the chief executive officer of the 
State fails to submit an application under subparagraph (A), the grant 
recipient in such State shall--
            ``(i) establish a procedure which assures that six members 
        of the governing body of such grant recipient shall be 
        appointed by an appropriate officer or agency of such State, 
        except that in no event may the number of such members exceed 
        25 per centum of the total membership of such governing body; 
        and
            ``(ii) provide, from any source, an amount equal to the 
        amount of Federal financial assistance received by such grant 
        recipient under this subsection for the fiscal year involved.
    ``(3) Whenever a State selects to receive Federal financial 
assistance under this subsection for any fiscal year under paragraph 
(2)(B), any appropriate entity desiring to receive such assistance 
shall submit an application for such assistance at such time as shall 
be specified by the Chairperson. Each such application shall be 
accompanied by a plan which the Chairperson finds--
            ``(A) provides assurances that the grant recipient will 
        comply with the requirements of paragraph (2)(B);
            ``(B) provides that funds paid to the grant recipient will 
        be expended solely on programs which carry out the objectives 
        of subsection (c) of this section;
            ``(C) establishes a membership policy which is designed to 
        assure broad public representation with respect to programs 
        administered by such grant recipient;
            ``(D) provides a nomination process which assures 
        opportunities for nomination to membership from various groups 
        within the State involved and from a variety of segments of the 
        population of such State, and including individuals who by 
        reason of their achievement, scholarship, or creativity in the 
        humanities, are especially qualified to serve;
            ``(E) provides for a membership rotation process which 
        assures the regular rotation of the membership and officers of 
        such grant recipient;
            ``(F) establishes reporting procedures which are designed 
        to inform the chief executive officer of the State involved, 
        and other appropriate officers and agencies, of the activities 
        of such grant recipient;
            ``(G) establishes procedures to assure public access to 
        information relating to such activities;
            ``(H) provides that such grant recipient will make reports 
        to the Chairperson, in such form, at such times, and containing 
        such information, as the Chairperson may require, including a 
        description of the progress made toward achieving the goals of 
        the plan;
            ``(I) provides--
                    ``(i) assurances that the grant recipient has held, 
                after reasonable notice, public meetings in the State 
                to allow scholars, interested organizations, and the 
                public to present views and make recommendations 
                regarding the plan; and
                    ``(ii) a summary of such recommendations and of the 
                response of the grant recipient to such 
                recommendations; and
            ``(J) contains--
                    ``(i) a description of the level of participation 
                during the most recent preceding year for which 
                information is available by scholars and scholarly 
                organizations in programs receiving financial 
                assistance under this subsection;
                    ``(ii) for the most recent preceding year for which 
                information is available, a description of the extent 
                to which the programs receiving financial assistance 
                under this subsection are available to all people and 
                communities in the State; and
                    ``(iii) a description of programs receiving 
                financial assistance under this subsection that exist 
                or are being developed to secure wider participation of 
                scholars and scholarly organizations identified under 
                clause (i) of this subparagraph or that address the 
                availability of the humanities to all people or 
                communities identified under clause (ii) of this 
                subparagraph.
No application may be approved unless the accompanying plan satisfies 
the requirements specified in this subsection.
    ``(4) Of the sums available to carry out this subsection for any 
fiscal year, each State and each grant recipient which has a plan 
approved by the Chairperson shall be allotted at least $200,000. If the 
sums appropriated are insufficient to make the allotments under the 
preceding sentence in full, such sums shall be allotted among such 
States and grant recipients in equal amounts. In any case where the 
sums available to carry out this subsection for any fiscal year are in 
excess of the amount required to make the allotments under the first 
sentence of this paragraph--
            ``(A) 34 per centum of the amount of such excess for such 
        fiscal year shall be available to the Chairperson for making 
        grants under this subsection to States and regional groups and 
        entities applying for such grants;
            ``(B) 44 per centum of the amount of such excess for such 
        fiscal year shall be allotted in equal amounts among the States 
        and grant recipients which have plans approved by the 
        Chairperson; and
            ``(C) 22 per centum of the amount of such excess for such 
        fiscal year shall be allotted among the States and grant 
        recipients which have plans approved by the Chairperson in 
        amounts which bear the same ratio to such excess as the 
        population of the State for which the plan is approved (or, in 
        the case of a grant recipient other than a State, the 
        population of the State in which such grant recipient is 
        located) bears to the population of all the States.
    ``(5)(A) The amount of each allotment to a State for any fiscal 
year under this subsection shall be available to each State or grant 
recipient, which has a plan or application approved by the Chairperson 
in effect on the first day of such fiscal year, to pay not more than 50 
per centum of the total cost of any project or production described in 
paragraph (1). The amount of any allotment made under paragraph (4) for 
any fiscal year--
            ``(i) which exceeds $125,000, but
            ``(ii) which does not exceed 20 per centum of such 
        allotment, shall be available, at the discretion of the 
        Chairperson, to pay up to 100 per centum of the cost of 
        programs under this subsection if such programs would otherwise 
        be unavailable to the residents of that State.
    ``(B) Any amount allotted to a State under the first sentence of 
paragraph (4) for any fiscal year which is not obligated by the State 
agency or grant recipient prior to sixty days prior to the end of the 
fiscal year for which such sums are appropriated shall be available to 
the Chairperson.
    ``(C) Funds made available under this subsection shall not be used 
to supplant non-Federal funds.
    ``(D) For purposes of paragraph (4)(B), the term `State' and the 
term `grant recipient' include, in addition to the several States, only 
those special jurisdictions specified in section 102(c) which have a 
population of 200,000 or more, according to the latest decennial 
census.
    ``(6) All amounts allotted or made available under paragraph (4) 
for a fiscal year which are not granted to any entity during such 
fiscal year shall be available to the National Endowment for the 
Humanities for the purpose of carrying out subsection (c) of this 
section.
    ``(7) Whenever the Chairperson, after reasonable notice and 
opportunity for hearing, finds that--
            ``(A) a group or grant recipient is not complying 
        substantially with the provisions of this subsection;
            ``(B) a State agency or grant recipient is not complying 
        substantially with terms and conditions of its State plan or 
        grant recipient application approved under this subsection; or
            ``(C) any funds granted to any group or State agency or 
        grant recipient under this subsection have been diverted from 
        the purposes for which they are allotted or paid, the 
        Chairperson shall immediately notify the Secretary of the 
        Treasury and the group, State agency, or grant recipient with 
        respect to which such finding was made that no further grants 
        will be made under this subsection to such group, State agency, 
        or grant recipient until there is no longer a default or 
        failure to comply or the diversion has been corrected, or, if 
        the compliance or correction is impossible, until such group, 
        State agency, or grant recipient repays or arranges the 
        repayment of the Federal funds which have been improperly 
        diverted or expended.
    ``(8) Except as provided in paragraphs (4), (5), and (6), the 
Chairperson may not make grants under this subsection to more than one 
entity in any State.
    ``(g) It shall be a condition of the receipt of any grant under 
this section that the group, individual, or State agency or entity 
receiving such grant furnish adequate assurances to the Secretary of 
Labor that (1) all professional performers and related or supporting 
professional personnel employed on projects or productions which are 
financed in whole or in part under this section will be paid, without 
subsequent deduction or rebate on any account, not less than the 
minimum compensation as determined by the Secretary of Labor to be the 
prevailing minimum compensation for persons employed in similar 
activities; and (2) no part of any project or production which is 
financed in whole or in part under this section will be performed or 
engaged in under working conditions which are unsanitary or hazardous 
or dangerous to the health and safety of the employees engaged in such 
project or production. Compliance with the safety and sanitary laws of 
the State in which the performance or part thereof is to take place 
shall be prima facie evidence of compliance. The Secretary of Labor 
shall prescribe standards, regulations, and procedures necessary to 
carry out this subsection.
    ``(h)(1) The Chairperson of the National Endowment for the 
Humanities, with the advice of the National Council on the Humanities, 
is authorized, in accordance with the provisions of this subsection, to 
establish and carry out a program of contracts with, or grants-in-aid 
to, public agencies and private nonprofit organizations for the purpose 
of--
            ``(A) enabling cultural organizations and institutions to 
        increase the levels of continuing support and to increase the 
        range of contributors to the program of such organizations or 
        institutions;
            ``(B) providing administrative and management improvements 
        for cultural organizations and institutions, particularly in 
        the field of long-range financial planning;
            ``(C) enabling cultural organizations and institutions to 
        increase audience participation in, and appreciation of, 
        programs sponsored by such organizations and institutions;
            ``(D) stimulating greater cooperation among cultural 
        organizations and institutions especially designed to serve 
        better the communities in which such organizations or 
        institutions are located; and
            ``(E) fostering greater citizen involvement in planning the 
        cultural development of a community.
    ``(2) The total amount of any payment made under this subsection 
for a program or project may not exceed 50 per centum of the cost of 
such program or project.
    ``(3) In carrying out the program authorized by this subsection, 
the Chairperson of the National Endowment for the Humanities shall have 
the same authority as is established in subsection (c) of this section 
and section 304.
    ``(i) The Chairperson may enter into interagency agreements to 
promote or assist with the humanities-related activities of other 
Federal agencies, on either a reimbursable or nonreimbursable basis, 
and may use funds authorized to be appropriated for the purposes of 
subsection (c) of this section for the costs of such activities.
    ``(j) It shall be a condition of the receipt of any grant under 
this section that the group or individual of exceptional talent or the 
State, State agency, or entity receiving such grant furnish adequate 
assurances to the Secretary of Labor that all laborers and mechanics 
employed by contractors or subcontractors on construction projects 
assisted under this section shall be paid wages at rates not less than 
those prevailing on similar construction in the locality, as determined 
by the Secretary of Labor in accordance with the Davis-Bacon Act, as 
amended (40 U.S.C. 276a-276a-5). The Secretary of Labor shall have, 
with respect to the labor standards specified in this subsection, the 
authority and functions set forth in Reorganization Plan Numbered 14 of 
1950 (15 F.R. 3175; 5 U.S.C. 133z-15) and section 2 of the Act of June 
13, 1934, as amended (40 U.S.C. 276c).
    ``(k) The Chairperson of the National Endowment for the Humanities 
shall, in ongoing consultation with State and local agencies, other 
relevant organizations, and relevant Federal agencies, continue to 
develop and implement a practical system of national information and 
data collection and public dissemination on the humanities, scholars, 
educational and cultural groups, and their audiences. Such system shall 
include cultural and financial trends in the various humanities fields, 
trends in audience participation, and trends in humanities education on 
national, regional, and State levels. Such system shall be used, along 
with a summary of the data submitted with plans under subsection (f) of 
this section, to prepare a report on the state of the humanities in the 
Nation. The state of the humanities report shall include a description 
of the availability of the Endowment's programs to emerging and 
culturally diverse scholars, cultural and educational organizations, 
and communities and of the participation of such scholars, 
organizations, and communities in such programs. The state of the 
humanities report shall be submitted to the President and the Congress, 
and provided the States, not later than October 1, 1992, and 
quadrennially thereafter.
    ``(l)(1) For purposes of this section--
            ``(A) the term `group' includes any State or local 
        government or public agency, Indian tribe, or nonprofit 
        association, organization or society;
            ``(B) the term `entity' means any partnership, corporation, 
        business enterprise, or other organization engaged in the 
        production of a film or publication;
            ``(C) the term `person' means any individual; and
            ``(D) the term `United States national' or `U.S. national' 
        means a citizen of the United States or an individual person, 
        who though not a citizen of the United States, owes permanent 
        allegiance to the United States.
    ``(2) The Chairperson, with the advice of the National Council on 
the Humanities, shall establish the criteria for eligibility for 
financial assistance under this title, except that--
            ``(A) any group shall be eligible for financial assistance 
        under this title if--
                    ``(i) no part of its net earnings inures to the 
                benefit of any private stockholder or stockholders or 
                individual or individuals; and
                    ``(ii) donations to such groups are allowable as a 
                charitable contribution under the standards of section 
                170(c) of the Internal Revenue Code of 1986;
            ``(B) any entity shall be eligible for financial assistance 
        under this title if the Chairman, with the advice of the 
        National Council on the Humanities, determines that providing 
such financial assistance will significantly advance the knowledge or 
understanding of the humanities in the United States; and
            ``(C) Any person shall be eligible for financial assistance 
        under this title if the person is a United Stated national. 
        However, a person who is not a United States national may be 
        eligible for financial assistance under this title if the 
        Chairman, with the advice of the National Council on the 
        Humanities, determines that providing such financial assistance 
        will significantly advance the knowledge or understanding of 
        the humanities in the United States.
    ``(m) The Chairperson, with the advice of the National Council on 
the Humanities, is authorized to make the following annual awards:
            ``(1) The Jefferson Lecture in the Humanities Award to one 
        individual for distinguished intellectual achievement in the 
        humanities. The annual award shall not exceed $10,000.
            ``(2) The Charles Frankel Prize to honor individuals who 
        have made outstanding contributions to the public understanding 
        of the humanities. Not more than 5 individuals may receive such 
        prize each year. Each prize shall not exceed $5,000.
    ``(n) The Chairperson, with the advice of the National Council on 
the Humanities, is authorized to require as a term or condition of any 
grant that the grant recipient remit to the National Endowment for the 
Humanities a percentage of the program income derived from the grant 
activities. This program income shall be received, invested and 
expended by the Chairperson pursuant to his authority under section 
304(a)(2).

``SEC. 303. ESTABLISHMENT OF THE NATIONAL COUNCIL ON THE HUMANITIES.

    ``(a) There is established in the National Endowment for the 
Humanities a National Council on the Humanities.
    ``(b) The Council shall be composed of the Chairperson of the 
National Endowment for the Humanities, who shall be the Chairperson of 
the Council, and twenty-six other members appointed by the President, 
by and with the advice and consent of the Senate, from private life. 
Such members shall be individuals who--
            ``(1) are selected from among private citizens of the 
        United States who are recognized for their broad knowledge of, 
        expertise in, or commitment to the humanities; and
            ``(2) have established records of distinguished service and 
        scholarship or creativity and in a manner which will provide a 
        comprehensive representation of the views of scholars and 
        professional practitioners in the humanities and of the public 
        throughout the United States. The President is requested in the 
        making of such appointments to give consideration to such 
        recommendations as may from time to time be submitted to him by 
        leading national organizations concerned with the humanities. 
        In making such appointments, the President shall give due 
        regard to equitable representation of women, minorities and 
        individuals with disabilities who are involved in the 
        humanities.
    ``(c) Each member shall hold office for a term of six years, except 
that--
            ``(1) the members first taking office shall serve, as 
        designated by the President, nine for terms of two years, nine 
        for terms of four years, and eight for terms of six years; and
            ``(2) any member appointed to fill a vacancy shall serve 
        for the remainder of the term for which such member's 
        predecessor was appointed. No member shall be eligible for 
        reappointment during the two-year period following the 
        expiration of such member's term. Notwithstanding any other 
        provisions of this subsection, a member shall serve after the 
expiration of such member's term until such member's successor takes 
office.
    ``(d) The Council shall meet at the call of the Chairperson but not 
less often than twice during each calendar year. Fourteen members of 
the Council shall constitute a quorum.
    ``(e) Members shall receive compensation at a rate to be fixed by 
the Chairperson but not to exceed the per diem equivalent of the 
maximum rate of pay payable under section 5376 of title 5 of the United 
States Code, and be allowed travel expenses including per diem in lieu 
of subsistence, as authorized by law (section 5703 of title 5 of the 
United States Code) for persons in the Government service employed 
intermittently.
    ``(f) The Council shall--
            ``(1) advise the Chairperson with respect to policies, 
        programs, and procedures for carrying out the Chairperson's 
        functions; and
            ``(2) shall review applications for financial support and 
        make recommendations thereon to the Chairperson. The 
        Chairperson shall not approve or disapprove any such 
        application until the Chairperson has received the 
        recommendation of the Council on such application, unless the 
        Council fails to make a recommendation thereon within a 
        reasonable time. In the case of any application involving 
        $30,000, or less, the Chairperson may approve or disapprove 
        such request if such action is taken pursuant to the terms of a 
        delegation of authority from the Council to the Chairperson, 
        and provided that each such action by the Chairperson shall be 
        reviewed by the Council: Provided, That the terms of any such 
        delegation of authority shall not permit obligations for 
        expenditure of funds under such delegation for any fiscal year 
        which exceed an amount equal to 10 per centum of the sums 
        appropriated for that fiscal year pursuant to subparagraph (B) 
        of paragraph (1) of section 305(a).

``SEC. 304. ADMINISTRATIVE PROVISIONS.

    ``(a) In addition to any authorities vested in the Chairperson by 
other provisions of this title, the Chairperson of the National 
Endowment for the Humanities, in carrying out the Chairperson's 
functions, shall have authority--
            ``(1) to prescribe such regulations as the Chairperson 
        deems necessary governing the manner in which the Chairperson's 
        functions shall be carried out;
            ``(2) in the discretion of the Chairperson to solicit, 
        receive, and invest money and other property donated, 
        bequeathed, or devised to the Endowment with or without a 
        condition or restriction, including a condition that the 
        Chairperson use other funds of that Endowment for the purposes 
        of the gift or remitted to the Endowment pursuant to section 
        302(n) or any other statutory authority and to request the 
        Secretary of the Treasury to invest such money in interest 
        bearing obligations of the United States or in obligations of 
        the United States guaranteed as to both principal and interest 
        by the United States;
            ``(3) to appoint employees, subject to the civil service 
        laws, as necessary to carry out the Chairperson's functions, 
        define their duties, and supervise and direct their activities;
            ``(4) to utilize experts and consultants, including panels 
        of experts, who may be employed as authorized by section 3109 
        of title 5, United States Code;
            ``(5) to accept and utilize the services of voluntary and 
        uncompensated personnel and reimburse them for travel expenses, 
        including per diem, as authorized by law (section 5703 of title 
        5 of the United States Code) for persons in the Government 
        service employed without compensation;
            ``(6) to make advance, progress, and other payments without 
        regard to section 3324 of title 31, United States Code;
            ``(7) to rent office space in the District of Columbia; and
            ``(8) to make other necessary expenditures.
In selecting panels of experts under clause (4) to review and make 
recommendations with respect to the approval of applications for 
financial assistance under this Act, the Chairperson shall appoint 
individuals who have exhibited expertise and leadership in the field 
under review, who broadly represent diverse characteristics in terms of 
humanistic perspective, and geographical factors, and who broadly 
represent cultural diversity.
    ``(b) The Chairperson of the National Endowment for the Humanities 
shall submit an annual report to the President for transmittal to the 
Congress on or before the 15th day of April of each year. The report 
shall summarize the activities of the Endowment for the preceding year, 
and may include such recommendations as the Chairperson deems 
appropriate.
    ``(c) The National Council on the Humanities, respectively, may 
submit an annual report to the President for transmittal to the 
Congress on or before the 15th day of April of each year setting forth 
a summary of its activities during the preceding year or its 
recommendations for any measures which it considers necessary or 
desirable.
    ``(d)(1) The Chairperson of the National Endowment for the 
Humanities shall conduct a post-award evaluation of projects, 
productions, and programs for which financial assistance is provided by 
the Endowment under section 302(c). Such evaluation may include an 
audit to determine the accuracy of the reports required to be submitted 
by recipients under clauses (i) and (ii) of paragraph (2)(A). As a 
condition of receiving such financial assistance, a recipient shall 
comply with the requirements specified in paragraph (2) that are 
applicable to the project, production, or program for which such 
financial assistance is received.
    ``(2)(A) The recipient of financial assistance provided by the 
Endowment shall submit to the Chairperson--
            ``(i) a financial report containing such information as the 
        Chairperson deems necessary to ensure that such financial 
        assistance is expended in accordance with the terms and 
        conditions under which it is provided;
            ``(ii) a report describing the project, production or 
        program carried out with such financial assistance; and
            ``(iii) if practicable, as determined by the Chairperson, a 
        copy of such project, production, or program.
    ``(B) Such recipient shall comply with the requirements of this 
paragraph not later than 90 days after the end of the period for which 
such financial assistance is provided. The Chairperson may extend the 
90-day period only if the recipient shows good cause why such an 
extension should be granted.
    ``(3) If such recipient substantially fails to satisfy the purposes 
for which such financial assistance is provided and the requirements of 
paragraph (2)(A) of this section, as determined by the Chairperson of 
the Endowment that provided such financial assistance, then such 
Chairperson may--
            ``(A) for purposes of determining whether to provide any 
        subsequent financial assistance, take into consideration the 
        results of the post-award evaluation conducted under this 
        subsection;
            ``(B) prohibit the recipient of such financial assistance 
        to use the name of, or in any way associate such project, 
        production, or program with the Endowment that provided such 
        financial assistance; and
            ``(C) if such project, production, or program is published, 
        require that the publication contain the following statement: 
        `The opinions, findings, conclusions, and recommendations 
        expressed herein do not reflect the views of the National 
        Endowment for the Humanities.'.
    ``(e) Official publications of the Endowment under this title may 
be supported without regard for the provisions of section 501 of title 
44, United States Code, only if the Chairperson consults with the Joint 
Committee on Printing of the Congress and the Chairperson submits to 
the Committee on Labor and Human Resources of the Senate and the 
Committee on Economic and Educational Opportunities of the House of 
Representatives a report justifying any exemption from such section 
501.

``SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

    ``(a)(1) For the purpose of carrying out section 302(c) of this 
title, there are authorized to be appropriated to the National 
Endowment for the Humanities such sums as may be necessary for fiscal 
years 1996 through 2001. Of the sums so appropriated for any fiscal 
year, not less than 20 per centum shall be for carrying out section 
302(f).
    ``(2) There are authorized to be appropriated for each fiscal year 
ending before October 1, 2001, to the National Endowment for the 
Humanities an amount equal to the sum of--
            ``(A) the total amounts received by the Endowment under 
        section 304(a)(2), including the value of property donated, 
        bequeathed, or devised to the Endowment and any interest earned 
        thereon; and
            ``(B) the total amounts received by the grantees and 
        subgrantees of the Endowment from non-Federal sources, 
        including the value of property donated, bequeathed, or devised 
        to such grantees and subgrantees, for use in carrying out 
        activities under paragraph (1) through paragraph (10) of 
        section 302(c).
    ``(3)(A) There are authorized to be appropriated for each fiscal 
year ending before October 1, 2001, to the National Endowment for the 
Humanities an amount equal to the sum of--
            ``(i) the total amounts received by the Endowment, 
        including the value of property donated, bequeathed, or devised 
        to the Endowment, for the purposes set forth in section 
        302(h)(1) pursuant to the authority of section 304(a)(2) of 
        this title; and
            ``(ii) the total amounts received by the grantees of the 
        Endowment from non-Federal sources, including the value of 
        property donated, bequeathed, or devised to such grantees, for 
        use in carrying out activities under subparagraph (A) through 
        subparagraph (E) of section 302(h)(1).
    ``(B) Sums appropriated pursuant to subparagraph (A) for any fiscal 
year shall remain available for obligation and expenditure until 
expended.
    ``(4) The Chairperson of the National Endowment for the Humanities 
shall issue guidelines to implement the provisions of paragraph (2) and 
paragraph (3). Such guidelines shall be consistent with the 
requirements of section 302(f) and section 302(h)(2) regarding total 
Federal support of activities, programs, projects, or productions 
carried out under authority of this title.
    ``(5) For the purpose of carrying out section 302(c), the Endowment 
is authorized to expend such sums as received pursuant to section 
304(a)(2) and the interest earned thereon without fiscal year 
limitation and without regard to the availability of appropriated 
funds.
    ``(b)(1) Sums appropriated pursuant to subsection (a) of this 
section for any fiscal year shall remain available for obligation and 
expenditure until expended.
    ``(2) In order to afford adequate notice to interested persons of 
available assistance under this title, appropriations authorized under 
subsection (a) of this section are authorized to be included in the 
measure making appropriations for the fiscal year preceding the fiscal 
year for which such appropriations become available for obligation.
    ``(c) There are authorized to be appropriated to the National 
Endowment for the Humanities such sums as may be necessary for fiscal 
years 1996 through 2001, to administer the provisions of this title, or 
any other program for which the Chairperson of the National Endowment 
for the Humanities is responsible, including not to exceed $100,000 for 
fiscal year 1996 for official reception and representation expenses.
    ``(d) No grant shall be made to a workshop (other than a workshop 
conducted by a school, college, or university) for a production for 
which direct or indirect admission charge is asked if the proceeds, 
after deducting reasonable costs, are used for purposes other than 
assisting the grantee to develop high standards of scholarly excellence 
or encourage greater appreciation of humanities by our citizens.

                      ``TITLE IV--MUSEUM SERVICES

``SEC. 401. PURPOSE.

    ``It is the purpose of this title to encourage and assist museums 
in their educational role, in conjunction with formal systems of 
elementary, secondary, and post-secondary education and with programs 
of nonformal education for all age groups; to assist museums in 
modernizing their methods and facilities so that they may be better 
able to conserve our cultural, historic, and scientific heritage; and 
to ease the financial burden borne by museums as a result of their 
increasing use by the public.

``SEC. 402. INSTITUTE OF MUSEUM SERVICES; ESTABLISHMENT.

    ``There is hereby established within the National Foundation on the 
Arts and the Humanities, an Institute of Museum Services. The Institute 
shall consist of a National Museum Services Board and a Director of the 
Institute.

``SEC. 403. NATIONAL MUSEUM SERVICES BOARD.

    ``(a) The Board shall consist of fifteen members appointed by the 
President by and with the advice and consent of the Senate. Such 
members shall be selected from among citizens of the United States who 
are members of the general public and who are--
            ``(1) broadly representative of the various museums, 
        including museums relating to science, history, technology, 
        art, zoos, and botanical gardens, and of the curatorial, 
        conservation, educational, and cultural resources of the United 
        States; and
            ``(2) recognized for their broad knowledge, expertise, or 
        experience in museums or commitment to museums.
Members shall be appointed to reflect various geographical regions of 
the United States. The Board may not include, at any time, more than 
three members from a single State. In making such appointments, the 
President shall give due regard to equitable representation of women, 
minorities, and persons with disabilities who are involved in such 
museums.
    ``(b) The term of office of the appointed members of the Board 
shall be five years, except that--
            ``(1) any such member appointed to fill a vacancy shall 
        serve only such portion of a term as shall not have expired at 
        the time of such appointment; and
            ``(2) in the case of initial members, three shall serve for 
        terms of five years, three shall serve for terms of four years, 
        three shall serve for terms of three years, three shall serve 
        for terms of two years, and three shall serve for terms of one 
        year, as designated by the President at the time of nomination 
        for appointment.
Any appointed member who has been a member of the Board for more than 
seven consecutive years shall thereafter be ineligible for 
reappointment to the Board during the three-year period following the 
expiration of the last such consecutive year. Notwithstanding any other 
provision of this subsection, a member shall serve after the expiration 
of such member's term of office until such member's successor takes 
office.
    ``(c) The Chairperson of the Board shall be designated by the 
President from among the appointed members of the Board. Except as 
provided in subsection (d)(2) of this section, eight appointed members 
of the Board shall constitute a quorum.
    ``(d) The Board shall meet at the call of the Chairperson, except 
that--
            ``(1) it shall meet not less than three times each year; 
        and
            ``(2) it shall meet whenever one-third of the appointed 
        members request a meeting in writing, in which event seven of 
        the appointed members shall constitute a quorum.
    ``(e) Members of the Board who are not in the regular full-time 
employ of the United States shall receive, while engaged in the 
business of the Board, compensation for service at a rate to be fixed 
by the President, except that such rate shall not exceed the maximum 
rate of pay payable under section 5376 of title 5, United States Code, 
including traveltime, and, while so serving away from their homes or 
regular places of business, they may be allowed travel expenses, 
including per diem in lieu of subsistence, as authorized by section 
5703 of title 5, United States Code, for persons employed in Government 
service.
    ``(f) The Board shall have the responsibility for the general 
policies with respect to the powers, duties, and authorities vested in 
the Institute under this title. The Director shall make available to 
the Board such information and assistance as may be necessary to enable 
the Board to carry out its functions.
    ``(g) The Board shall, with the advice of the Director, take steps 
to assure that the policies and purposes of the Institute are 
coordinated with other activities of the Federal Government.

``SEC. 404. DIRECTOR OF THE INSTITUTE.

    ``(a)(1) The Director of the Institute shall be appointed by the 
President, by and with the advice and consent of the Senate, and shall 
serve at the pleasure of the President. The Director shall perform such 
duties and exercise such powers as the Board may prescribe.
    ``(2) The Director shall not delegate any of the Director's 
functions to any other officer who is not directly responsible to the 
Director.
    ``(b) The Director shall advise the Board regarding policies of the 
Institute to assure coordination of the Institute's activities with 
other agencies and organizations of the Federal Government having 
interest in and responsibilities for the improvement of museums. Such 
Government agencies shall include the National Endowment for the Arts, 
the National Endowment for the Humanities, the National Science 
Foundation, appropriate units in the Department of Education, the 
Library of Congress, and the Smithsonian Institution and related 
organizations.
    ``(c) The Director may appoint without regard to the provisions of 
title 5, United States Code, governing appointment in the competitive 
service and may compensate without regard to the provisions of chapter 
51 or subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates not to exceed one-fifth 
of the number of full-time regular technical or professional employees 
of the Institute. The rate of basic compensation for such employees may 
not equal or exceed minimum rate of pay payable under section 5376 of 
title 5 of the United States Code.

``SEC. 405. ACTIVITIES OF THE INSTITUTE.

    ``(a) The Director, subject to the policy direction of the Board, 
is authorized to make grants to museums to increase and improve museum 
services, through such activities as--
            ``(1) programs to enable museums to construct or install 
        displays, interpretations, and exhibitions in order to improve 
        their services to the public;
            ``(2) assisting them in developing and maintaining 
        professionally-trained or otherwise experienced staff to meet 
        their needs;
            ``(3) assisting them to meet their administrative costs in 
        preserving and maintaining their collections, exhibiting them 
        to the public, and providing educational programs to the public 
        through the use of their collections;
            ``(4) assisting museums in cooperation with each other in 
        the development of traveling exhibitions, meeting 
        transportation costs, and identifying and locating collections 
        available for loan;
            ``(5) assisting them in conservation of their collections; 
        and
            ``(6) developing and carrying out specialized programs for 
        specific segments of the public, such as programs for urban 
        neighborhoods, rural areas, Indian reservations, and penal and 
        other State institutions.
    ``(b)(1) The Director, subject to the policy direction of the 
National Museum Services Board, is authorized to enter into contracts 
and cooperative agreements to provide financial assistance in order to 
undertake projects designed to strengthen museum services, except that 
any contracts or cooperative agreements entered into pursuant to this 
subsection shall be effective only to such extent or in such amounts as 
are provided in appropriations Acts.
    ``(2) No financial assistance may be provided under this subsection 
to pay for operational expenses.
    ``(3) The aggregate amount of financial assistance made under this 
subsection shall not exceed 15 percent of the amount appropriated under 
this title for such fiscal year.
    ``(c) Grants, contracts, and cooperative agreements under this 
section for any fiscal year may not exceed 50 per centum of the cost of 
the program for which the grant or financial assistance is made, except 
that not more than 20 per centum of the funds available under this 
section for any fiscal year may be available for grants or financial 
assistance in such fiscal year without regard to such limitation.
    ``(d) The Director shall establish procedures for reviewing and 
evaluating grants, contracts, and cooperative agreements made or 
entered into under this section. Procedures for reviewing grant 
applications or contracts and cooperative agreements for financial 
assistance under this section shall not be subject to any review 
outside of the Institute.

``SEC. 406. CONTRIBUTIONS.

    ``The Institute shall have authority to solicit, receive, accept, 
and invest in the name of the United States, grants, gifts, or bequests 
of money and other property or services and to use such funds in 
furtherance of the functions of the Institute. Such grants, gifts, or 
bequests, after acceptance by the Institute, shall be paid by the donor 
or his representative to the Treasurer of the United States whose 
receipt shall be their acquittance. The Treasurer of the United States 
shall enter them in a special interest-bearing account to the credit of 
the Institute for the purposes in each case specified.

``SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) For the purpose of making grants under section 405(a), there 
are authorized to be appropriated and such sums as may be necessary for 
fiscal years 1996 through 2001.
    ``(b) There are authorized to be appropriated such sums as may be 
necessary to administer the provisions of this title.
    ``(c) Sums appropriated pursuant to subsection (a) of this section 
for any fiscal year shall remain available for obligation and 
expenditure until expended.
    ``(d) For the purpose of enabling the Institute to carry out its 
functions under this title, there is authorized to be appropriated for 
each fiscal year ending before October 1, 2001, an amount equal to the 
amount contributed during such fiscal year period to the Institute 
under section 406.

``SEC. 408. DEFINITIONS.

    ``For the purpose of this title, the term--
            ``(1) `Board' means the National Museum Services Board 
        established under section 402;
            ``(2) `Director' means the Director of the Institute 
        established under section 402;
            ``(3) `Institute' means the Institute of Museum Services 
        established under section 402; and
            ``(4) `museum' means a public or private nonprofit agency 
        or institution organized on a permanent basis for essentially 
        educational or esthetic purposes, which, utilizing a 
        professional staff, owns or utilizes tangible objects, cares 
        for them, and exhibits them to the public on a regular basis.

                ``TITLE V--AMERICAN CULTURAL TRUST FUND

``SEC. 501. ESTABLISHMENT OF AMERICAN CULTURAL TRUST FUND.

    ``There is hereby established in the Treasury a revolving fund to 
be known as the `American Cultural Trust Fund' (hereinafter in this 
title referred to as the `Fund').

``SEC. 502. ADMINISTRATION OF TRUST FUND.

    ``(a) Investments--Monies appropriated to the Fund shall be 
invested by the Secretary of the Treasury. Proceeds of investments 
shall be deposited in the Fund.
    ``(b) Trigger for Distribution of Accumulated Investment 
Proceeds.--Whenever the aggregate amount of proceeds deposited under 
subsection (a) in the Fund equals $700,000,000, all investment proceeds 
then and subsequently on deposit in the Fund shall be distributed in 
accordance with subsection (c) by the Secretary of the Treasury as 
follows:
            ``(1) 25 percent to the National Endowment for the Arts.
            ``(2) 26 percent to the National Endowment for the 
        Humanities.
            ``(3) 4 percent to the Institute of Museum Services.
            ``(4) 45 percent to the Corporation for Public 
        Broadcasting.
    ``(c) Annual Distribution of Accumulated Investment Proceeds.--On 
the first October 1 occurring after a condition specified in subsection 
(b) is satisfied, and on each October 1 thereafter, the Secretary of 
the Treasury shall distribute in accordance with paragraphs (1) through 
(4) of such subsection the investment proceeds then on deposit in the 
fund.
    ``(d) Authorization of Appropriations.--(1) Subject to paragraph 
(2), there are authorized to be appropriated to the Fund for fiscal 
year 1996, and for each fiscal year thereafter, an amount equal to 1 
percent of the difference between the total budget outlays and the 
budget outlays for gross interest on the public debt, for such fiscal 
year as set forth in the then most recently agreed to concurrent 
resolution on the budget for such fiscal year.
    ``(2) No funds are authorized to be appropriated under paragraph 
(1) for any fiscal year beginning on or after the date on which the 
Secretary of the Treasury first distributes investment proceeds in 
accordance with subsection (c).
    ``(e) Conforming Changes.--No funds are authorized to be 
appropriated to the National Endowment for the Arts, the National 
Endowment for the Humanities, the Institute of Museum Services, or the 
Corporation for Public Broadcasting for any fiscal year beginning on or 
after the date on which the Secretary of the Treasury first distributes 
investment proceeds in accordance with subsection (c).
    ``(f) References.--For purposes of--
            ``(1) title II investment proceeds distributed under 
        subsection (c) to the National Endowment for the Arts shall be 
        deemed to be funds appropriated to carry out such title;
            ``(2) title III investment proceeds distributed under 
        subsection (c) to the National Endowment for the Humanities 
        shall be deemed to be funds appropriated to carry out such 
        title;
            ``(3) title IV investment proceeds distributed under 
        subsection (c) to the Institute for Museum Services shall be 
        deemed to be funds appropriated to carry out such title; and
            ``(4) section 396 of the Communications Act of 1934 (47 
        U.S.C. 396), investment proceeds distributed under subsection 
        (c) to the Corporation for Public Broadcasting shall be deemed 
        to be funds appropriated to carry out such section.''.
    (b) Conforming Amendment.--The Museum Services Act (10 U.S.C. 961-
969) is repealed.

SEC. 3. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
October 1, 1995.
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