II

104TH CONGRESS

2D SESSION H. R. 1720

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 24 (legislative day, SEPTEMBER 20), 1996

Received

AN ACT

To reorganize the Student Loan Marketing Association, to

privatize the College Construction Loan Insurance Association, to amend the Museum Services Act to include

provisions improving and consolidating Federal library

service programs, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘Government-Sponsored Enterprise Privatization Act of

4 1996’’.

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

6 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—REORGANIZATION AND PRIVATIZATION

Sec. 101. Reorganization of the Student Loan Marketing Association through

the formation of a holding company.

Sec. 102. Connie Lee privatization.

Sec. 103. Eligible institution.

TITLE II—MUSEUMS AND LIBRARIES

Sec. 201. Museum and library services.

Sec. 202. National Commission on Libraries and Information Science.

Sec. 203. Transfer of functions from Institute of Museum Services.

Sec. 204. Service of individuals serving on date of enactment.

Sec. 205. Consideration.

Sec. 206. Transition and transfer of funds.

TITLE III—EXTENSION OF PROGRAMS

Sec. 301. Extension of National Literacy Act of 1991.

Sec. 302. Adult Education Act Amendments.

Sec. 303. Extension of Carl D. Perkins Vocational and Applied Technology

Education Act.

TITLE IV—REPEALS AND CONFORMING AMENDMENTS

Sec. 401. Repeals.

Sec. 402. Conforming amendments.

7 TITLE I—REORGANIZATION AND

8 PRIVATIZATION

9 SEC. 101. REORGANIZATION OF THE STUDENT LOAN MAR10 KETING ASSOCIATION THROUGH THE FOR11 MATION OF A HOLDING COMPANY.

12 (a) AMENDMENT.—Part B of title IV of the Higher

13 Education Act of 1965 (20 U.S.C. 1071 et seq.) is amend-
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1 ed by inserting after section 439 (20 U.S.C. 1087–2) the

2 following new section:

3 ‘‘SEC. 440. REORGANIZATION OF THE STUDENT LOAN MAR4 KETING ASSOCIATION THROUGH THE FOR5 MATION OF A HOLDING COMPANY.

6 ‘‘(a) ACTIONS BY THE ASSOCIATION’S BOARD OF DI7 RECTORS.—The Board of Directors of the Association

8 shall take or cause to be taken all such action as the Board

9 of Directors deems necessary or appropriate to effect,

10 upon the shareholder approval described in subsection (b),

11 a restructuring of the common stock ownership of the As12 sociation, as set forth in a plan of reorganization adopted

13 by the Board of Directors (the terms of which shall be

14 consistent with this section) so that all of the outstanding

15 common shares of the Association shall be directly owned

16 by a Holding Company. Such actions may include, in the

17 Board of Director’s discretion, a merger of a wholly owned

18 subsidiary of the Holding Company with and into the As19 sociation, which would have the effect provided in the plan

20 of reorganization and the law of the jurisdiction in which

21 such subsidiary is incorporated. As part of the restructur22 ing, the Board of Directors may cause—

23 ‘‘(1) the common shares of the Association to

24 be converted, on the reorganization effective date, to

25 common shares of the Holding Company on a one
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1 for one basis, consistent with applicable State or

2 District of Columbia law; and

3 ‘‘(2) Holding Company common shares to be

4 registered with the Securities and Exchange Com5 mission.

6 ‘‘(b) SHAREHOLDER APPROVAL.—The plan of reor7 ganization adopted by the Board of Directors pursuant to

8 subsection (a) shall be submitted to common shareholders

9 of the Association for their approval. The reorganization

10 shall occur on the reorganization effective date, provided

11 that the plan of reorganization has been approved by the

12 affirmative votes, cast in person or by proxy, of the holders

13 of a majority of the issued and outstanding shares of the

14 Association common stock.

15 ‘‘(c) TRANSITION.—In the event the shareholders of

16 the Association approve the plan of reorganization under

17 subsection (b), the following provisions shall apply begin18 ning on the reorganization effective date:

19 ‘‘(1) IN GENERAL.—Except as specifically pro20 vided in this section, until the dissolution date the

21 Association shall continue to have all of the rights,

22 privileges and obligations set forth in, and shall be

23 subject to all of the limitations and restrictions of,

24 section 439, and the Association shall continue to

25 carry out the purposes of such section. The Holding
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1 Company and any subsidiary of the Holding Com2 pany (other than the Association) shall not be enti3 tled to any of the rights, privileges, and obligations,

4 and shall not be subject to the limitations and re5 strictions, applicable to the Association under section

6 439, except as specifically provided in this section.

7 The Holding Company and any subsidiary of the

8 Holding Company (other than the Association or a

9 subsidiary of the Association) shall not purchase

10 loans insured under this Act until such time as the

11 Association ceases acquiring such loans, except that

12 the Holding Company may purchase such loans if

13 the Association is merely continuing to acquire loans

14 as a lender of last resort pursuant to section 439(q)

15 or under an agreement with the Secretary described

16 in paragraph (6).

17 ‘‘(2) TRANSFER OF CERTAIN PROPERTY.—

18 ‘‘(A) IN GENERAL.—Except as provided in

19 this section, on the reorganization effective date

20 or as soon as practicable thereafter, the Asso21 ciation shall use the Association’s best efforts to

22 transfer to the Holding Company or any sub23 sidiary of the Holding Company (or both), as

24 directed by the Holding Company, all real and

25 personal property of the Association (both tan-
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1 gible and intangible) other than the remaining

2 property. Subject to the preceding sentence,

3 such transferred property shall include all right,

4 title, and interest in—

5 ‘‘(i) direct or indirect subsidiaries of

6 the Association (excluding special purpose

7 funding companies in existence on the date

8 of enactment of this section and any inter9 est in any government-sponsored enter10 prise);

11 ‘‘(ii) contracts, leases, and other

12 agreements of the Association;

13 ‘‘(iii) licenses and other intellectual

14 property of the Association; and

15 ‘‘(iv) any other property of the Asso16 ciation.

17 ‘‘(B) CONSTRUCTION.—Nothing in this

18 paragraph shall be construed to prohibit the As19 sociation from transferring remaining property

20 from time to time to the Holding Company or

21 any subsidiary of the Holding Company, subject

22 to the provisions of paragraph (4).

23 ‘‘(3) TRANSFER OF PERSONNEL.—On the reor24 ganization effective date, employees of the Associa25 tion shall become employees of the Holding Com-
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1 pany (or any subsidiary of the Holding Company),

2 and the Holding Company (or any subsidiary of the

3 Holding Company) shall provide all necessary and

4 appropriate management and operational support

5 (including loan servicing) to the Association, as re6 quested by the Association. The Association, how7 ever, may obtain such management and operational

8 support from persons or entities not associated with

9 the Holding Company.

10 ‘‘(4) DIVIDENDS.—The Association may pay

11 dividends in the form of cash or noncash distribu12 tions so long as at the time of the declaration of

13 such dividends, after giving effect to the payment of

14 such dividends as of the date of such declaration by

15 the Board of Directors of the Association, the Asso16 ciation’s capital would be in compliance with the

17 capital standards and requirements set forth in sec18 tion 439(r). If, at any time after the reorganization

19 effective date, the Association fails to comply with

20 such capital standards, the Holding Company shall

21 transfer with due diligence to the Association addi22 tional capital in such amounts as are necessary to

23 ensure that the Association again complies with the

24 capital standards.
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1 ‘‘(5) CERTIFICATION PRIOR TO DIVIDEND.—

2 Prior to the payment of any dividend under para3 graph (4), the Association shall certify to the Sec4 retary of the Treasury that the payment of the divi5 dend will be made in compliance with paragraph (4)

6 and shall provide copies of all calculations needed to

7 make such certification.

8 ‘‘(6) RESTRICTIONS ON NEW BUSINESS ACTIV9 ITY OR ACQUISITION OF ASSETS BY ASSOCIATION.—

10 ‘‘(A) IN GENERAL.—After the reorganiza11 tion effective date, the Association shall not en12 gage in any new business activities or acquire

13 any additional program assets described in sec14 tion 439(d) other than in connection with—

15 ‘‘(i) student loan purchases through

16 September 30, 2007;

17 ‘‘(ii) contractual commitments for fu18 ture warehousing advances, or pursuant to

19 letters of credit or standby bond purchase

20 agreements, which are outstanding as of

21 the reorganization effective date;

22 ‘‘(iii) the Association serving as a

23 lender-of-last-resort pursuant to section

24 439(q); and
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1 ‘‘(iv) the Association’s purchase of

2 loans insured under this part, if the Sec3 retary, with the approval of the Secretary

4 of the Treasury, enters into an agreement

5 with the Association for the continuation

6 or resumption of the Association’s second7 ary market purchase program because the

8 Secretary determines there is inadequate

9 liquidity for loans made under this part.

10 ‘‘(B) AGREEMENT.—The Secretary is au11 thorized to enter into an agreement described in

12 clause (iv) of subparagraph (A) with the Asso13 ciation covering such secondary market activi14 ties. Any agreement entered into under such

15 clause shall cover a period of 12 months, but

16 may be renewed if the Secretary determines

17 that liquidity remains inadequate. The fee pro18 vided under section 439(h)(7) shall not apply to

19 loans acquired under any such agreement with

20 the Secretary.

21 ‘‘(7) ISSUANCE OF DEBT OBLIGATIONS DURING

22 THE TRANSITION PERIOD; ATTRIBUTES OF DEBT OB23 LIGATIONS.—After the reorganization effective date,

24 the Association shall not issue debt obligations which

25 mature later than September 30, 2008, except in
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1 connection with serving as a lender-of-last-resort

2 pursuant to section 439(q) or with purchasing loans

3 under an agreement with the Secretary as described

4 in paragraph (6). Nothing in this section shall mod5 ify the attributes accorded the debt obligations of

6 the Association by section 439, regardless of whether

7 such debt obligations are incurred prior to, or at any

8 time following, the reorganization effective date or

9 are transferred to a trust in accordance with sub10 section (d).

11 ‘‘(8) MONITORING OF SAFETY AND SOUND12 NESS.—

13 ‘‘(A) OBLIGATION TO OBTAIN, MAINTAIN,

14 AND REPORT INFORMATION.—The Association

15 shall obtain such information and make and

16 keep such records as the Secretary of the

17 Treasury may from time to time prescribe con18 cerning—

19 ‘‘(i) the financial risk to the Associa20 tion resulting from the activities of any as21 sociated person, to the extent such activi22 ties are reasonably likely to have a mate23 rial impact on the financial condition of

24 the Association, including the Association’s

25 capital ratio, the Association’s liquidity, or
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1 the Association’s ability to conduct and fi2 nance the Association’s operations; and

3 ‘‘(ii) the Association’s policies, proce4 dures, and systems for monitoring and

5 controlling any such financial risk.

6 ‘‘(B) SUMMARY REPORTS.—The Secretary

7 of the Treasury may require summary reports

8 of the information described in subparagraph

9 (A) to be filed no more frequently than quar10 terly. If, as a result of adverse market condi11 tions or based on reports provided pursuant to

12 this subparagraph or other available informa13 tion, the Secretary of the Treasury has con14 cerns regarding the financial or operational con15 dition of the Association, the Secretary of the

16 Treasury may, notwithstanding the preceding

17 sentence and subparagraph (A), require the As18 sociation to make reports concerning the activi19 ties of any associated person whose business ac20 tivities are reasonably likely to have a material

21 impact on the financial or operational condition

22 of the Association.

23 ‘‘(C) SEPARATE OPERATION OF CORPORA24 TIONS.—
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1 ‘‘(i) IN GENERAL.—The funds and as2 sets of the Association shall at all times be

3 maintained separately from the funds and

4 assets of the Holding Company or any sub5 sidiary of the Holding Company and may

6 be used by the Association solely to carry

7 out the Association’s purposes and to fulfill

8 the Association’s obligations.

9 ‘‘(ii) BOOKS AND RECORDS.—The As10 sociation shall maintain books and records

11 that clearly reflect the assets and liabilities

12 of the Association, separate from the as13 sets and liabilities of the Holding Company

14 or any subsidiary of the Holding Company.

15 ‘‘(iii) CORPORATE OFFICE.—The As16 sociation shall maintain a corporate office

17 that is physically separate from any office

18 of the Holding Company or any subsidiary

19 of the Holding Company.

20 ‘‘(iv) DIRECTOR.—No director of the

21 Association who is appointed by the Presi22 dent pursuant to section 439(c)(1)(A) may

23 serve as a director of the Holding Com24 pany.
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1 ‘‘(v) ONE OFFICER REQUIREMENT.—

2 At least one officer of the Association shall

3 be an officer solely of the Association.

4 ‘‘(vi) TRANSACTIONS.—Transactions

5 between the Association and the Holding

6 Company or any subsidiary of the Holding

7 Company, including any loan servicing ar8 rangements, shall be on terms no less fa9 vorable to the Association than the Asso10 ciation could obtain from an unrelated

11 third party offering comparable services.

12 ‘‘(vii) CREDIT PROHIBITION.—The

13 Association shall not extend credit to the

14 Holding Company or any subsidiary of the

15 Holding Company nor guarantee or pro16 vide any credit enhancement to any debt

17 obligations of the Holding Company or any

18 subsidiary of the Holding Company.

19 ‘‘(viii) AMOUNTS COLLECTED.—Any

20 amounts collected on behalf of the Associa21 tion by the Holding Company or any sub22 sidiary of the Holding Company with re23 spect to the assets of the Association, pur24 suant to a servicing contract or other ar25 rangement between the Association and the
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1 Holding Company or any subsidiary of the

2 Holding Company, shall be collected solely

3 for the benefit of the Association and shall

4 be immediately deposited by the Holding

5 Company or such subsidiary to an account

6 under the sole control of the Association.

7 ‘‘(D) ENCUMBRANCE OF ASSETS.—Not8 withstanding any Federal or State law, rule, or

9 regulation, or legal or equitable principle, doc10 trine, or theory to the contrary, under no cir11 cumstances shall the assets of the Association

12 be available or used to pay claims or debts of

13 or incurred by the Holding Company. Nothing

14 in this subparagraph shall be construed to limit

15 the right of the Association to pay dividends

16 not otherwise prohibited under this subpara17 graph or to limit any liability of the Holding

18 Company explicitly provided for in this section.

19 ‘‘(E) HOLDING COMPANY ACTIVITIES.—

20 After the reorganization effective date and prior

21 to the dissolution date, all business activities of

22 the Holding Company shall be conducted

23 through subsidiaries of the Holding Company.

24 ‘‘(F) CONFIDENTIALITY.—Any information

25 provided by the Association pursuant to this
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1 section shall be subject to the same confiden2 tiality obligations contained in section

3 439(r)(12).

4 ‘‘(G) DEFINITION.—For purposes of this

5 paragraph, the term ‘associated person’ means

6 any person, other than a natural person, who is

7 directly or indirectly controlling, controlled by,

8 or under common control with, the Association.

9 ‘‘(9) ISSUANCE OF STOCK WARRANTS.—On the

10 reorganization effective date, the Holding Company

11 shall issue to the Secretary of the Treasury a num12 ber of stock warrants that is equal to one percent

13 of the outstanding shares of the Association, deter14 mined as of the last day of the fiscal quarter preced15 ing the date of enactment of this section, with each

16 stock warrant entitling the holder of the stock war17 rant to purchase from the Holding Company one

18 share of the registered common stock of the Holding

19 Company or the Holding Company’s successors or

20 assigns, at any time on or before September 30,

21 2008. The exercise price for such warrants shall be

22 an amount equal to the average closing price of the

23 common stock of the Association for the 20 business

24 days prior to the date of enactment of this section

25 on the exchange or market which is then the pri-
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1 mary exchange or market for the common stock of

2 the Association. The number of shares of Holding

3 Company common stock subject to each warrant and

4 the exercise price of each warrant shall be adjusted

5 as necessary to reflect—

6 ‘‘(A) the conversion of Association common

7 stock into Holding Company common stock as

8 part of the plan of reorganization approved by

9 the Association’s shareholders; and

10 ‘‘(B) any issuance or sale of stock (includ11 ing issuance or sale of treasury stock), stock

12 split, recapitalization, reorganization, or other

13 corporate event, if agreed to by the Secretary of

14 the Treasury and the Association.

15 ‘‘(10) RESTRICTIONS ON TRANSFER OF ASSO16 CIATION SHARES AND BANKRUPTCY OF ASSOCIA17 TION.—After the reorganization effective date, the

18 Holding Company shall not sell, pledge, or otherwise

19 transfer the outstanding shares of the Association,

20 or agree to or cause the liquidation of the Associa21 tion or cause the Association to file a petition for

22 bankruptcy under title 11, United States Code, with23 out prior approval of the Secretary of the Treasury

24 and the Secretary of Education.
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1 ‘‘(d) TERMINATION OF THE ASSOCIATION.—In the

2 event the shareholders of the Association approve a plan

3 of reorganization under subsection (b), the Association

4 shall dissolve, and the Association’s separate existence

5 shall terminate on September 30, 2008, after discharge

6 of all outstanding debt obligations and liquidation pursu7 ant to this subsection. The Association may dissolve pur8 suant to this subsection prior to such date by notifying

9 the Secretary of Education and the Secretary of the

10 Treasury of the Association’s intention to dissolve, unless

11 within 60 days after receipt of such notice the Secretary

12 of Education notifies the Association that the Association

13 continues to be needed to serve as a lender of last resort

14 pursuant to section 439(q) or continues to be needed to

15 purchase loans under an agreement with the Secretary de16 scribed in paragraph (6). On the dissolution date, the As17 sociation shall take the following actions:

18 ‘‘(1) ESTABLISHMENT OF A TRUST.—The Asso19 ciation shall, under the terms of an irrevocable trust

20 agreement that is in form and substance satisfactory

21 to the Secretary of the Treasury, the Association

22 and the appointed trustee, irrevocably transfer all

23 remaining obligations of the Association to the trust

24 and irrevocably deposit or cause to be deposited into

25 such trust, to be held as trust funds solely for the
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1 benefit of holders of the remaining obligations,

2 money or direct noncallable obligations of the United

3 States or any agency thereof for which payment the

4 full faith and credit of the United States is pledged,

5 maturing as to principal and interest in such

6 amounts and at such times as are determined by the

7 Secretary of the Treasury to be sufficient, without

8 consideration of any significant reinvestment of such

9 interest, to pay the principal of, and interest on, the

10 remaining obligations in accordance with their

11 terms. To the extent the Association cannot provide

12 money or qualifying obligations in the amount re13 quired, the Holding Company shall be required to

14 transfer money or qualifying obligations to the trust

15 in the amount necessary to prevent any deficiency.

16 ‘‘(2) USE OF TRUST ASSETS.—All money, obli17 gations, or financial assets deposited into the trust

18 pursuant to this subsection shall be applied by the

19 trustee to the payment of the remaining obligations

20 assumed by the trust.

21 ‘‘(3) OBLIGATIONS NOT TRANSFERRED TO THE

22 TRUST.—The Association shall make proper provi23 sion for all other obligations of the Association not

24 transferred to the trust, including the repurchase or

25 redemption, or the making of proper provision for
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1 the repurchase or redemption, of any preferred stock

2 of the Association outstanding. Any obligations of

3 the Association which cannot be fully satisfied shall

4 become liabilities of the Holding Company as of the

5 date of dissolution.

6 ‘‘(4) TRANSFER OF REMAINING ASSETS.—After

7 compliance with paragraphs (1) and (3), any re8 maining assets of the trust shall be transferred to

9 the Holding Company or any subsidiary of the Hold10 ing Company, as directed by the Holding Company.

11 ‘‘(e) OPERATION OF THE HOLDING COMPANY.—In

12 the event the shareholders of the Association approve the

13 plan of reorganization under subsection (b), the following

14 provisions shall apply beginning on the reorganization ef15 fective date:

16 ‘‘(1) HOLDING COMPANY BOARD OF DIREC17 TORS.—The number of members and composition of

18 the Board of Directors of the Holding Company

19 shall be determined as set forth in the Holding Com20 pany’s charter or like instrument (as amended from

21 time to time) or bylaws (as amended from time to

22 time) and as permitted under the laws of the juris23 diction of the Holding Company’s incorporation.
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1 ‘‘(2) HOLDING COMPANY NAME.—The names of

2 the Holding Company and any subsidiary of the

3 Holding Company (other than the Association)—

4 ‘‘(A) may not contain the name ‘Student

5 Loan Marketing Association’; and

6 ‘‘(B) may contain, to the extent permitted

7 by applicable State or District of Columbia law,

8 ‘Sallie Mae’ or variations thereof, or such other

9 names as the Board of Directors of the Associa10 tion or the Holding Company deems appro11 priate.

12 ‘‘(3) USE OF SALLIE MAE NAME.—Subject to

13 paragraph (2), the Association may assign to the

14 Holding Company, or any subsidiary of the Holding

15 Company, the ‘Sallie Mae’ name as a trademark and

16 service mark, except that neither the Holding Com17 pany nor any subsidiary of the Holding Company

18 (other than the Association or any subsidiary of the

19 Association) may use the ‘Sallie Mae’ name on, or

20 to identify the issuer of, any debt obligation or other

21 security offered or sold by the Holding Company or

22 any subsidiary of the Holding Company (other than

23 a debt obligation or other security issued to and held

24 by the Holding Company or any subsidiary of the

25 Holding Company). The Association shall remit to
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1 the Secretary of the Treasury $5,000,000 within 60

2 days of the reorganization effective date as com3 pensation for the right to assign such trademark or

4 service mark.

5 ‘‘(4) DISCLOSURE REQUIRED.—Until 3 years

6 after the dissolution date, the Holding Company,

7 and any subsidiary of the Holding Company (other

8 than the Association), shall prominently display—

9 ‘‘(A) in any document offering the Holding

10 Company’s securities, a statement that the obli11 gations of the Holding Company and any sub12 sidiary of the Holding Company are not guar13 anteed by the full faith and credit of the United

14 States; and

15 ‘‘(B) in any advertisement or promotional

16 materials which use the ‘Sallie Mae’ name or

17 mark, a statement that neither the Holding

18 Company nor any subsidiary of the Holding

19 Company is a government-sponsored enterprise

20 or instrumentality of the United States.

21 ‘‘(f) STRICT CONSTRUCTION.—Except as specifically

22 set forth in this section, nothing in this section shall be

23 construed to limit the authority of the Association as a

24 federally chartered corporation, or of the Holding Com-
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1 pany as a State or District of Columbia chartered corpora2 tion.

3 ‘‘(g) RIGHT TO ENFORCE.—The Secretary of Edu4 cation or the Secretary of the Treasury, as appropriate,

5 may request that the Attorney General bring an action

6 in the United States District Court for the District of Co7 lumbia for the enforcement of any provision of this sec8 tion, or may, under the direction or control of the Attorney

9 General, bring such an action. Such court shall have juris10 diction and power to order and require compliance with

11 this section.

12 ‘‘(h) DEADLINE FOR REORGANIZATION EFFECTIVE

13 DATE.—This section shall be of no further force and effect

14 in the event that the reorganization effective date does not

15 occur on or before 18 months after the date of enactment

16 of this section.

17 ‘‘(i) DEFINITIONS.—For purposes of this section:

18 ‘‘(1) ASSOCIATION.—The term ‘Association’

19 means the Student Loan Marketing Association.

20 ‘‘(2) DISSOLUTION DATE.—The term ‘dissolu21 tion date’ means September 30, 2008, or such ear22 lier date as the Secretary of Education permits the

23 transfer of remaining obligations in accordance with

24 subsection (d).
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1 ‘‘(3) HOLDING COMPANY.—The term ‘Holding

2 Company’ means the new business corporation es3 tablished pursuant to this section by the Association

4 under the laws of any State of the United States or

5 the District of Columbia for the purposes of the re6 organization and restructuring described in sub7 section (a).

8 ‘‘(4) REMAINING OBLIGATIONS.—The term ‘re9 maining obligations’ means the debt obligations of

10 the Association outstanding as of the dissolution

11 date.

12 ‘‘(5) REMAINING PROPERTY.—The term ‘re13 maining property’ means the following assets and li14 abilities of the Association which are outstanding as

15 of the reorganization effective date:

16 ‘‘(A) Debt obligations issued by the Asso17 ciation.

18 ‘‘(B) Contracts relating to interest rate,

19 currency, or commodity positions or protections.

20 ‘‘(C) Investment securities owned by the

21 Association.

22 ‘‘(D) Any instruments, assets, or agree23 ments described in section 439(d) (including,

24 without limitation, all student loans and agree25 ments relating to the purchase and sale of stu-
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1 dent loans, forward purchase and lending com2 mitments, warehousing advances, academic fa3 cilities obligations, letters of credit, standby

4 bond purchase agreements, liquidity agree5 ments, and student loan revenue bonds or other

6 loans).

7 ‘‘(E) Except as specifically prohibited by

8 this section or section 439, any other nonmate9 rial assets or liabilities of the Association which

10 the Association’s Board of Directors determines

11 to be necessary or appropriate to the Associa12 tion’s operations.

13 ‘‘(6) REORGANIZATION.—The term ‘reorganiza14 tion’ means the restructuring event or events (in15 cluding any merger event) giving effect to the Hold16 ing Company structure described in subsection (a).

17 ‘‘(7) REORGANIZATION EFFECTIVE DATE.—The

18 term ‘reorganization effective date’ means the effec19 tive date of the reorganization as determined by the

20 Board of Directors of the Association, which shall

21 not be earlier than the date that shareholder ap22 proval is obtained pursuant to subsection (b) and

23 shall not be later than the date that is 18 months

24 after the date of enactment of this section.
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1 ‘‘(8) SUBSIDIARY.—The term ‘subsidiary’

2 means one or more direct or indirect subsidiaries.’’.

3 (b) TECHNICAL AMENDMENTS.—

4 (1) ELIGIBLE LENDER.—

5 (A) AMENDMENTS TO THE HIGHER EDU6 CATION ACT.—

7 (i) DEFINITION OF ELIGIBLE LEND8 ER.—Section 435(d)(1)(F) of the Higher

9 Education Act of 1965 (20 U.S.C.

10 1085(d)(1)(F)) is amended by inserting

11 after ‘‘Student Loan Marketing Associa12 tion’’ the following: ‘‘or the Holding Com13 pany of the Student Loan Marketing Asso14 ciation, including any subsidiary of the

15 Holding Company, created pursuant to

16 section 440,’’.

17 (ii) DEFINITION OF ELIGIBLE LEND18 ER AND FEDERAL CONSOLIDATION

19 LOANS.—Sections 435(d)(1)(G) and

20 428C(a)(1)(A) of such Act (20 U.S.C.

21 1085(d)(1)(G) and 1078–3(a)(1)(A)) are

22 each amended by inserting after ‘‘Student

23 Loan Marketing Association’’ the follow24 ing: ‘‘or the Holding Company of the Stu25 dent Loan Marketing Association, includ-
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1 ing any subsidiary of the Holding Com2 pany, created pursuant to section 440’’.

3 (B) EFFECTIVE DATE.—The amendments

4 made by this paragraph shall take effect on the

5 reorganization effective date as defined in sec6 tion 440(h) of the Higher Education Act of

7 1965 (as added by subsection (a)).

8 (2) ENFORCEMENT OF SAFETY AND SOUND9 NESS REQUIREMENTS.—Section 439(r) of the High10 er Education Act of 1965 (20 U.S.C. 1087–2(r)) is

11 amended—

12 (A) in the first sentence of paragraph (12),

13 by inserting ‘‘or the Association’s associated

14 persons’’ after ‘‘by the Association’’;

15 (B) by redesignating paragraph (13) as

16 paragraph (15); and

17 (C) by inserting after paragraph (12) the

18 following new paragraph:

19 ‘‘(13) ENFORCEMENT OF SAFETY AND SOUND20 NESS REQUIREMENTS.—The Secretary of Education

21 or the Secretary of the Treasury, as appropriate,

22 may request that the Attorney General bring an ac23 tion in the United States District Court for the Dis24 trict of Columbia for the enforcement of any provi25 sion of this section, or may, under the direction or
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1 control of the Attorney General, bring such an ac2 tion. Such court shall have jurisdiction and power to

3 order and require compliance with this section.’’.

4 (3) FINANCIAL SAFETY AND SOUNDNESS.—Sec5 tion 439(r) of the Higher Education Act of 1965

6 (20 U.S.C. 1087–2(r)) is further amended—

7 (A) in paragraph (1)—

8 (i) by striking ‘‘and’’ at the end of

9 subparagraph (A);

10 (ii) by striking the period at the end

11 of subparagraph (B) and inserting ‘‘;

12 and’’; and

13 (iii) by adding at the end the follow14 ing new subparagraph:

15 ‘‘(C)(i) financial statements of the Associa16 tion within 45 days of the end of each fiscal

17 quarter; and

18 ‘‘(ii) reports setting forth the calculation of

19 the capital ratio of the Association within 45

20 days of the end of each fiscal quarter.’’;

21 (B) in paragraph (2)—

22 (i) by striking clauses (i) and (ii) of

23 subparagraph (A) and inserting the follow24 ing:
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1 ‘‘(i) appoint auditors or examiners to con2 duct audits of the Association from time to time

3 to determine the condition of the Association

4 for the purpose of assessing the Association’s fi5 nancial safety and soundness and to determine

6 whether the requirements of this section and

7 section 440 are being met; and

8 ‘‘(ii) obtain the services of such experts as

9 the Secretary of the Treasury determines nec10 essary and appropriate, as authorized by section

11 3109 of title 5, United States Code, to assist in

12 determining the condition of the Association for

13 the purpose of assessing the Association’s fi14 nancial safety and soundness, and to determine

15 whether the requirements of this section and

16 section 440 are being met.’’; and

17 (ii) by adding at the end the following

18 new subparagraph:

19 ‘‘(D) ANNUAL ASSESSMENT.—

20 ‘‘(i) IN GENERAL.—For each fiscal year

21 beginning on or after October 1, 1996, the Sec22 retary of the Treasury may establish and collect

23 from the Association an assessment (or assess24 ments) in amounts sufficient to provide for rea25 sonable costs and expenses of carrying out the
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1 duties of the Secretary of the Treasury under

2 this section and section 440 during such fiscal

3 year. In no event may the total amount so as4 sessed exceed, for any fiscal year, $800,000, ad5 justed for each fiscal year ending after Septem6 ber 30, 1997, by the ratio of the Consumer

7 Price Index for All Urban Consumers (issued

8 by the Bureau of Labor Statistics) for the final

9 month of the fiscal year preceding the fiscal

10 year for which the assessment is made to the

11 Consumer Price Index for All Urban Consum12 ers for September 1997.

13 ‘‘(ii) DEPOSIT.—Amounts collected from

14 assessments under this subparagraph shall be

15 deposited in an account within the Treasury of

16 the United States as designated by the Sec17 retary of the Treasury for that purpose. The

18 Secretary of the Treasury is authorized and di19 rected to pay out of any funds available in such

20 account the reasonable costs and expenses of

21 carrying out the duties of the Secretary of the

22 Treasury under this section and section 440.

23 None of the funds deposited into such account

24 shall be available for any purpose other than
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1 making payments for such costs and ex2 penses.’’; and

3 (C) by inserting after paragraph (13) (as

4 added by paragraph (2)(C)) the following new

5 paragraph:

6 ‘‘(14) ACTIONS BY SECRETARY.—

7 ‘‘(A) IN GENERAL.—For any fiscal quarter

8 ending after January 1, 2000, the Association

9 shall have a capital ratio of at least 2.25 per10 cent. The Secretary of the Treasury may, when11 ever such capital ratio is not met, take any one

12 or more of the actions described in paragraph

13 (7), except that—

14 ‘‘(i) the capital ratio to be restored

15 pursuant to paragraph (7)(D) shall be

16 2.25 percent; and

17 ‘‘(ii) if the relevant capital ratio is in

18 excess of or equal to 2 percent for such

19 quarter, the Secretary of the Treasury

20 shall defer taking any of the actions set

21 forth in paragraph (7) until the next suc22 ceeding quarter and may then proceed with

23 any such action only if the capital ratio of

24 the Association remains below 2.25 per25 cent.
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1 ‘‘(B) APPLICABILITY.—The provisions of

2 paragraphs (4), (5), (6), (8), (9), (10), and

3 (11) shall be of no further application to the

4 Association for any period after January 1,

5 2000.’’.

6 (4) INFORMATION REQUIRED; DIVIDENDS.—

7 Section 439(r) of the Higher Education Act of 1965

8 (20 U.S.C. 1087–2(r)) is further amended—

9 (A) by adding at the end of paragraph (2)

10 (as amended in paragraph (3)(B)(ii)) the fol11 lowing new subparagraph:

12 ‘‘(E) OBLIGATION TO OBTAIN, MAINTAIN, AND

13 REPORT INFORMATION.—

14 ‘‘(i) IN GENERAL.—The Association shall

15 obtain such information and make and keep

16 such records as the Secretary of the Treasury

17 may from time to time prescribe concerning—

18 ‘‘(I) the financial risk to the Associa19 tion resulting from the activities of any as20 sociated person, to the extent such activi21 ties are reasonably likely to have a mate22 rial impact on the financial condition of

23 the Association, including the Association’s

24 capital ratio, the Association’s liquidity, or
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1 the Association’s ability to conduct and fi2 nance the Association’s operations; and

3 ‘‘(II) the Association’s policies, proce4 dures, and systems for monitoring and

5 controlling any such financial risk.

6 ‘‘(ii) SUMMARY REPORTS.—The Secretary

7 of the Treasury may require summary reports

8 of such information to be filed no more fre9 quently than quarterly. If, as a result of ad10 verse market conditions or based on reports

11 provided pursuant to this subparagraph or

12 other available information, the Secretary of the

13 Treasury has concerns regarding the financial

14 or operational condition of the Association, the

15 Secretary of the Treasury may, notwithstanding

16 the preceding sentence and clause (i), require

17 the Association to make reports concerning the

18 activities of any associated person, whose busi19 ness activities are reasonably likely to have a

20 material impact on the financial or operational

21 condition of the Association.

22 ‘‘(iii) DEFINITION.—For purposes of this

23 subparagraph, the term ‘associated person’

24 means any person, other than a natural person,

25 directly or indirectly controlling, controlled by,
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1 or under common control with the Associa2 tion.’’; and

3 (B) by adding at the end the following new

4 paragraphs:

5 ‘‘(16) DIVIDENDS.—The Association may pay

6 dividends in the form of cash or noncash distribu7 tions so long as at the time of the declaration of

8 such dividends, after giving effect to the payment of

9 such dividends as of the date of such declaration by

10 the Board of Directors of the Association, the Asso11 ciation’s capital would be in compliance with the

12 capital standards set forth in this section.

13 ‘‘(17) CERTIFICATION PRIOR TO PAYMENT OF

14 DIVIDEND.—Prior to the payment of any dividend

15 under paragraph (16), the Association shall certify

16 to the Secretary of the Treasury that the payment

17 of the dividend will be made in compliance with

18 paragraph (16) and shall provide copies of all cal19 culations needed to make such certification.’’.

20 (c) SUNSET OF THE ASSOCIATION’S CHARTER IF NO

21 REORGANIZATION PLAN OCCURS.—Section 439 of the

22 Higher Education Act of 1965 (20 U.S.C. 1087–2) is

23 amended by adding at the end the following new sub24 section:

25 ‘‘(s) CHARTER SUNSET.—
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1 ‘‘(1) APPLICATION OF PROVISIONS.—This sub2 section applies beginning 18 months and one day

3 after the date of enactment of this subsection if no

4 reorganization of the Association occurs in accord5 ance with the provisions of section 440.

6 ‘‘(2) SUNSET PLAN.—

7 ‘‘(A) PLAN SUBMISSION BY THE ASSOCIA8 TION.—Not later than July 1, 2007, the Asso9 ciation shall submit to the Secretary of the

10 Treasury and to the Chairman and Ranking

11 Member of the Committee on Labor and

12 Human Resources of the Senate and the Chair13 man and Ranking Member of the Committee on

14 Economic and Educational Opportunities of the

15 House of Representatives, a detailed plan for

16 the orderly winding up, by July 1, 2013, of

17 business activities conducted pursuant to the

18 charter set forth in this section. Such plan

19 shall—

20 ‘‘(i) ensure that the Association will

21 have adequate assets to transfer to a trust,

22 as provided in this subsection, to ensure

23 full payment of remaining obligations of

24 the Association in accordance with the

25 terms of such obligations;
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1 ‘‘(ii) provide that all assets not used

2 to pay liabilities shall be distributed to

3 shareholders as provided in this subsection;

4 and

5 ‘‘(iii) provide that the operations of

6 the Association shall remain separate and

7 distinct from that of any entity to which

8 the assets of the Association are trans9 ferred.

10 ‘‘(B) AMENDMENT OF THE PLAN BY THE

11 ASSOCIATION.—The Association shall from time

12 to time amend such plan to reflect changed cir13 cumstances, and submit such amendments to

14 the Secretary of the Treasury and to the Chair15 man and Ranking Minority Member of the

16 Committee on Labor and Human Resources of

17 the Senate and Chairman and Ranking Minor18 ity Member of the Committee on Economic and

19 Educational Opportunities of the House of Rep20 resentatives. In no case may any amendment

21 extend the date for full implementation of the

22 plan beyond the dissolution date provided in

23 paragraph (3).

24 ‘‘(C) PLAN MONITORING.—The Secretary

25 of the Treasury shall monitor the Association’s
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1 compliance with the plan and shall continue to

2 review the plan (including any amendments

3 thereto).

4 ‘‘(D) AMENDMENT OF THE PLAN BY THE

5 SECRETARY OF THE TREASURY.—The Secretary

6 of the Treasury may require the Association to

7 amend the plan (including any amendments to

8 the plan), if the Secretary of the Treasury

9 deems such amendments necessary to ensure

10 full payment of all obligations of the Associa11 tion.

12 ‘‘(E) IMPLEMENTATION BY THE ASSOCIA13 TION.—The Association shall promptly imple14 ment the plan (including any amendments to

15 the plan, whether such amendments are made

16 by the Association or are required to be made

17 by the Secretary of the Treasury).

18 ‘‘(3) DISSOLUTION OF THE ASSOCIATION.—The

19 Association shall dissolve and the Association’s sepa20 rate existence shall terminate on July 1, 2013, after

21 discharge of all outstanding debt obligations and liq22 uidation pursuant to this subsection. The Associa23 tion may dissolve pursuant to this subsection prior

24 to such date by notifying the Secretary of Education

25 and the Secretary of the Treasury of the Associa-
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1 tion’s intention to dissolve, unless within 60 days of

2 receipt of such notice the Secretary of Education no3 tifies the Association that the Association continues

4 to be needed to serve as a lender of last resort pur5 suant to subsection (q) or continues to be needed to

6 purchase loans under an agreement with the Sec7 retary described in paragraph (4)(A). On the dis8 solution date, the Association shall take the follow9 ing actions:

10 ‘‘(A) ESTABLISHMENT OF A TRUST.—The

11 Association shall, under the terms of an irrev12 ocable trust agreement in form and substance

13 satisfactory to the Secretary of the Treasury,

14 the Association, and the appointed trustee, ir15 revocably transfer all remaining obligations of

16 the Association to a trust and irrevocably de17 posit or cause to be deposited into such trust,

18 to be held as trust funds solely for the benefit

19 of holders of the remaining obligations, money

20 or direct noncallable obligations of the United

21 States or any agency thereof for which payment

22 the full faith and credit of the United States is

23 pledged, maturing as to principal and interest

24 in such amounts and at such times as are de25 termined by the Secretary of the Treasury to be
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1 sufficient, without consideration of any signifi2 cant reinvestment of such interest, to pay the

3 principal of, and interest on, the remaining obli4 gations in accordance with their terms.

5 ‘‘(B) USE OF TRUST ASSETS.—All money,

6 obligations, or financial assets deposited into

7 the trust pursuant to this subsection shall be

8 applied by the trustee to the payment of the re9 maining obligations assumed by the trust. Upon

10 the fulfillment of the trustee’s duties under the

11 trust, any remaining assets of the trust shall be

12 transferred to the persons who, at the time of

13 the dissolution, were the shareholders of the As14 sociation, or to the legal successors or assigns

15 of such persons.

16 ‘‘(C) OBLIGATIONS NOT TRANSFERRED TO

17 THE TRUST.—The Association shall make prop18 er provision for all other obligations of the As19 sociation, including the repurchase or redemp20 tion, or the making of proper provision for the

21 repurchase or redemption, of any preferred

22 stock of the Association outstanding.

23 ‘‘(D) TRANSFER OF REMAINING ASSETS.—

24 After compliance with subparagraphs (A) and

25 (C), the Association shall transfer to the share-
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1 holders of the Association any remaining assets

2 of the Association.

3 ‘‘(4) RESTRICTIONS RELATING TO WINDING

4 UP.—

5 ‘‘(A) RESTRICTIONS ON NEW BUSINESS AC6 TIVITY OR ACQUISITION OF ASSETS BY THE AS7 SOCIATION.—

8 ‘‘(i) IN GENERAL.—Beginning on July

9 1, 2009, the Association shall not engage

10 in any new business activities or acquire

11 any additional program assets (including

12 acquiring assets pursuant to contractual

13 commitments) described in subsection (d)

14 other than in connection with the Associa15 tion—

16 ‘‘(I) serving as a lender of last

17 resort pursuant to subsection (q); and

18 ‘‘(II) purchasing loans insured

19 under this part, if the Secretary, with

20 the approval of the Secretary of the

21 Treasury, enters into an agreement

22 with the Association for the continu23 ation or resumption of the Associa24 tion’s secondary market purchase pro25 gram because the Secretary deter-
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1 mines there is inadequate liquidity for

2 loans made under this part.

3 ‘‘(ii) AGREEMENT.—The Secretary is

4 authorized to enter into an agreement de5 scribed in subclause (II) of clause (i) with

6 the Association covering such secondary

7 market activities. Any agreement entered

8 into under such subclause shall cover a pe9 riod of 12 months, but may be renewed if

10 the Secretary determines that liquidity re11 mains inadequate. The fee provided under

12 subsection (h)(7) shall not apply to loans

13 acquired under any such agreement with

14 the Secretary.

15 ‘‘(B) ISSUANCE OF DEBT OBLIGATIONS

16 DURING THE WIND UP PERIOD; ATTRIBUTES OF

17 DEBT OBLIGATIONS.—The Association shall not

18 issue debt obligations which mature later than

19 July 1, 2013, except in connection with serving

20 as a lender of last resort pursuant to subsection

21 (q) or with purchasing loans under an agree22 ment with the Secretary as described in sub23 paragraph (A). Nothing in this subsection shall

24 modify the attributes accorded the debt obliga25 tions of the Association by this section, regard-
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1 less of whether such debt obligations are trans2 ferred to a trust in accordance with paragraph

3 (3).

4 ‘‘(C) USE OF ASSOCIATION NAME.—The

5 Association may not transfer or permit the use

6 of the name ‘Student Loan Marketing Associa7 tion’, ‘Sallie Mae’, or any variation thereof, to

8 or by any entity other than a subsidiary of the

9 Association.’’.

10 (d) DISCRIMINATION IN SECONDARY MARKETS PRO11 HIBITED.—Part B of title IV of the Higher Education Act

12 of 1965 (20 U.S.C. 1071 et seq.) is amended by adding

13 after section 440 (as added by subsection (a)) the follow14 ing new section:

15 ‘‘SEC. 440A. DISCRIMINATION IN SECONDARY MARKETS

16 PROHIBITED.

17 ‘‘The Student Loan Marketing Association (and, if

18 the Association is privatized under section 440, any suc19 cessor entity functioning as a secondary market for loans

20 under this part, including the Holding Company described

21 in such section) shall not engage directly or indirectly in

22 any pattern or practice that results in a denial of a bor23 rower’s access to loans under this part because of the bor24 rower’s race, sex, color, religion, national origin, age, dis25 ability status, income, attendance at a particular eligible
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1 institution, length of the borrower’s educational program,

2 or the borrower’s academic year at an eligible institu3 tion.’’.

4 (e) REPEALS.—

5 (1) IN GENERAL.—Sections 439 of the Higher

6 Education Act of 1965 (20 U.S.C. 1087–2) and 440

7 of such Act (as added by subsection (a) of this sec8 tion) are repealed.

9 (2) EFFECTIVE DATE.—The repeals made by

10 paragraph (1) shall be effective one year after—

11 (A) the date on which all of the obligations

12 of the trust established under section 440(d)(1)

13 of the Higher Education Act of 1965 (as added

14 by subsection (a)) have been extinguished, if a

15 reorganization occurs in accordance with section

16 440 of such Act; or

17 (B) the date on which all of the obligations

18 of the trust established under subsection

19 439(s)(3)(A) of such Act (as added by sub20 section (c)) have been extinguished, if a reorga21 nization does not occur in accordance with sec22 tion 440 of such Act.

23 (f) ASSOCIATION NAMES.—Upon dissolution in ac24 cordance with section 439(s) of the Higher Education Act

25 of 1965 (20 U.S.C. 1087–2), the names ‘‘Student Loan
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1 Marketing Association’’, ‘‘Sallie Mae’’, and any variations

2 thereof may not be used by any entity engaged in any

3 business similar to the business conducted pursuant to

4 section 439 of such Act (as such section was in effect on

5 the date of enactment of this Act) without the approval

6 of the Secretary of the Treasury.

7 (g) RIGHT TO ENFORCE.—The Secretary of Edu8 cation or the Secretary of the Treasury, as appropriate,

9 may request that the Attorney General bring an action

10 in the United States District Court for the District of Co11 lumbia for the enforcement of any provision of subsection

12 (f), or may, under the direction or control of the Attorney

13 General, bring such an action. Such court shall have juris14 diction and power to order and require compliance with

15 subsection (f).

16 SEC. 102. CONNIE LEE PRIVATIZATION.

17 (a) STATUS OF THE CORPORATION AND CORPORATE

18 POWERS; OBLIGATIONS NOT FEDERALLY GUARAN19 TEED.—

20 (1) STATUS OF THE CORPORATION.—The Cor21 poration shall not be an agency, instrumentality, or

22 establishment of the United States Government, nor

23 a Government corporation, nor a Government con24 trolled corporation, as such terms are defined in sec25 tion 103 of title 5, United States Code. No action
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1 under section 1491 of title 28, United States Code

2 (commonly known as the Tucker Act) shall be allow3 able against the United States based on the actions

4 of the Corporation.

5 (2) CORPORATE POWERS.—The Corporation

6 shall be subject to the provisions of this section, and,

7 to the extent not inconsistent with this section, to

8 the District of Columbia Business Corporation Act

9 (or the comparable law of another State, if applica10 ble). The Corporation shall have the powers con11 ferred upon a corporation by the District of Colum12 bia Business Corporation Act (or such other applica13 ble State law) as from time to time in effect in order

14 to conduct the Corporation’s affairs as a private,

15 for-profit corporation and to carry out the Corpora16 tion’s purposes and activities incidental thereto. The

17 Corporation shall have the power to enter into con18 tracts, to execute instruments, to incur liabilities, to

19 provide products and services, and to do all things

20 as are necessary or incidental to the proper manage21 ment of the Corporation’s affairs and the efficient

22 operation of a private, for-profit business.

23 (3) LIMITATION ON OWNERSHIP OF STOCK.—

24 (A) SECRETARY OF THE TREASURY.—The

25 Secretary of the Treasury, in completing the
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1 sale of stock pursuant to subsection (c), may

2 not sell or issue the stock held by the Secretary

3 of Education to an agency, instrumentality, or

4 establishment of the United States Government,

5 or to a Government corporation or a Govern6 ment controlled corporation, as such terms are

7 defined in section 103 of title 5, United States

8 Code, or to a government-sponsored enterprise

9 as such term is defined in section 3 of the Con10 gressional Budget Act of 1974 (2 U.S.C. 622).

11 (B) STUDENT LOAN MARKETING ASSOCIA12 TION.—The Student Loan Marketing Associa13 tion shall not increase its share of the owner14 ship of the Corporation in excess of 42 percent

15 of the shares of stock of the Corporation out16 standing on the date of enactment of this Act.

17 The Student Loan Marketing Association shall

18 not control the operation of the Corporation,

19 except that the Student Loan Marketing Asso20 ciation may participate in the election of direc21 tors as a shareholder, and may continue to ex22 ercise the Student Loan Marketing Associa23 tion’s right to appoint directors under section

24 754 of the Higher Education Act of 1965 (20
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1 U.S.C. 1132f–3) as long as that section is in ef2 fect.

3 (C) PROHIBITION.—Until such time as the

4 Secretary of the Treasury sells the stock of the

5 Corporation owned by the Secretary of Edu6 cation pursuant to subsection (c), the Student

7 Loan Marketing Association shall not provide

8 financial support or guarantees to the Corpora9 tion.

10 (D) FINANCIAL SUPPORT OR GUARAN11 TEES.—After the Secretary of the Treasury

12 sells the stock of the Corporation owned by the

13 Secretary of Education pursuant to subsection

14 (c), the Student Loan Marketing Association

15 may provide financial support or guarantees to

16 the Corporation, if such support or guarantees

17 are subject to terms and conditions that are no

18 more advantageous to the Corporation than the

19 terms and conditions the Student Loan Market20 ing Association provides to other entities, in21 cluding, where applicable, other monoline finan22 cial guaranty corporations in which the Student

23 Loan Marketing Association has no ownership

24 interest.

25 (4) NO FEDERAL GUARANTEE.—
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1 (A) OBLIGATIONS INSURED BY THE COR2 PORATION.—

3 (i) FULL FAITH AND CREDIT OF THE

4 UNITED STATES.—No obligation that is in5 sured, guaranteed, or otherwise backed by

6 the Corporation shall be deemed to be an

7 obligation that is guaranteed by the full

8 faith and credit of the United States.

9 (ii) STUDENT LOAN MARKETING ASSO10 CIATION.—No obligation that is insured,

11 guaranteed, or otherwise backed by the

12 Corporation shall be deemed to be an obli13 gation that is guaranteed by the Student

14 Loan Marketing Association.

15 (iii) SPECIAL RULE.—This paragraph

16 shall not affect the determination of

17 whether such obligation is guaranteed for

18 purposes of Federal income taxes.

19 (B) SECURITIES OFFERED BY THE COR20 PORATION.—No debt or equity securities of the

21 Corporation shall be deemed to be guaranteed

22 by the full faith and credit of the United

23 States.

24 (5) DEFINITION.—The term ‘‘Corporation’’ as

25 used in this section means the College Construction
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1 Loan Insurance Association as in existence on the

2 day before the date of enactment of this Act, and

3 any successor corporation.

4 (b) RELATED PRIVATIZATION REQUIREMENTS.—

5 (1) NOTICE REQUIREMENTS.—

6 (A) IN GENERAL.—During the six-year pe7 riod following the date of enactment of this Act,

8 the Corporation shall include, in each of the

9 Corporation’s contracts for the insurance, guar10 antee, or reinsurance of obligations, and in each

11 document offering debt or equity securities of

12 the Corporation, a prominent statement provid13 ing notice that—

14 (i) such obligations or such securities,

15 as the case may be, are not obligations of

16 the United States, nor are such obligations

17 or such securities, as the case may be,

18 guaranteed in any way by the full faith

19 and credit of the United States; and

20 (ii) the Corporation is not an instru21 mentality of the United States.

22 (B) ADDITIONAL NOTICE.—During the

23 five-year period following the sale of stock pur24 suant to subsection (c)(1), in addition to the

25 notice requirements in subparagraph (A), the
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1 Corporation shall include, in each of the con2 tracts and documents referred to in such sub3 paragraph, a prominent statement providing no4 tice that the United States is not an investor in

5 the Corporation.

6 (2) CORPORATE CHARTER.—The Corporation’s

7 charter shall be amended as necessary and without

8 delay to conform to the requirements of this section.

9 (3) CORPORATE NAME.—The name of the Cor10 poration, or of any direct or indirect subsidiary

11 thereof, may not contain the term ‘‘College Con12 struction Loan Insurance Association’’, or any sub13 stantially similar variation thereof.

14 (4) ARTICLES OF INCORPORATION.—The Cor15 poration shall amend the Corporation’s articles of

16 incorporation without delay to reflect that one of the

17 purposes of the Corporation shall be to guarantee,

18 insure, and reinsure bonds, leases, and other evi19 dences of debt of educational institutions, including

20 Historically Black Colleges and Universities and

21 other academic institutions which are ranked in the

22 lower investment grade category using a nationally

23 recognized credit rating system.

24 (5) REQUIREMENTS UNTIL STOCK SALE.—Not25 withstanding subsection (d), the requirements of sec-
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1 tions 754 and 760 of the Higher Education Act of

2 1965 (20 U.S.C. 1132f–3 and 1132f–9), as such

3 sections were in effect on the day before the date of

4 enactment of this Act, shall continue to be effective

5 until the day immediately following the date of clos6 ing of the purchase of the Secretary of Education’s

7 stock (or the date of closing of the final purchase,

8 in the case of multiple transactions) pursuant to

9 subsection (c)(1) of this Act.

10 (c) SALE OF FEDERALLY OWNED STOCK.—

11 (1) SALE OF STOCK REQUIRED.—The Secretary

12 of the Treasury shall sell, pursuant to section 324

13 of title 31, United States Code, the stock of the Cor14 poration owned by the Secretary of Education as

15 soon as possible after the date of enactment of this

16 Act, but not later than six months after such date.

17 (2) PURCHASE BY THE CORPORATION.—In the

18 event that the Secretary of the Treasury is unable

19 to sell the stock, or any portion thereof, at a price

20 acceptable to the Secretary of Education and the

21 Secretary of the Treasury, the Corporation shall

22 purchase, within six months after the date of enact23 ment of this Act, such stock at a price determined

24 by the Secretary of the Treasury and acceptable to

25 the Corporation based on the independent appraisal
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1 of one or more nationally recognized financial firms,

2 except that such price shall not exceed the value of

3 the Secretary of Education’s stock as determined by

4 the Congressional Budget Office in House Report

5 104–153, dated June 22, 1995.

6 (3) REIMBURSEMENT OF COSTS OF SALE.—The

7 Secretary of the Treasury shall be reimbursed from

8 the proceeds of the sale of the stock under this sub9 section for all reasonable costs related to such sale,

10 including all reasonable expenses relating to one or

11 more independent appraisals under this subsection.

12 (4) ASSISTANCE BY THE CORPORATION.—The

13 Corporation shall provide such assistance as the Sec14 retary of the Treasury and the Secretary of Edu15 cation may require to facilitate the sale of the stock

16 under this subsection.

17 (d) REPEAL OF STATUTORY RESTRICTIONS AND RE18 LATED PROVISIONS.—Part D of title VII of the Higher

19 Education Act of 1965 (20 U.S.C. 1001 et seq.) is re20 pealed.

21 SEC. 103. ELIGIBLE INSTITUTION.

22 (a) AMENDMENT.—Section 481(b) of the Higher

23 Education Act of 1965 (20 U.S.C. 1088(b)) is amended

24 by inserting after the end of the first sentence the follow25 ing new sentence: ‘‘For the purposes of determining
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1 whether an institution meets the requirements of clause

2 (6), the Secretary shall not consider the financial informa3 tion of any institution for a fiscal year that began on or

4 before April 30, 1994.’’.

5 (b) EFFECTIVE DATE.—The amendment made by

6 subsection (a) shall apply to any determination made on

7 or after July 1, 1994, by the Secretary of Education pur8 suant to section 481(b)(6) of the Higher Education Act

9 of 1965 (20 U.S.C. 1088(b)(6)).

10 TITLE II—MUSEUMS AND

11 LIBRARIES

12 SEC. 201. MUSEUM AND LIBRARY SERVICES.

13 The Museum Services Act (20 U.S.C. 961 et seq.)

14 is amended to read as follows:

15 ‘‘TITLE II—MUSEUM AND

16 LIBRARY SERVICES

17 ‘‘Subtitle A—General Provisions

18 ‘‘SEC. 201. SHORT TITLE.

19 ‘‘This title may be cited as the ‘Museum and Library

20 Services Act’.

21 ‘‘SEC. 202. GENERAL DEFINITIONS.

22 ‘‘As used in this title:

23 ‘‘(1) COMMISSION.—The term ‘Commission’

24 means the National Commission on Libraries and

25 Information Science established under section 3 of
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1 the National Commission on Libraries and Informa2 tion Sciences Act (20 U.S.C. 1502).

3 ‘‘(2) DIRECTOR.—The term ‘Director’ means

4 the Director of the Institute appointed under section

5 204.

6 ‘‘(3) INSTITUTE.—The term ‘Institute’ means

7 the Institute of Museum and Library Services estab8 lished under section 203.

9 ‘‘(4) MUSEUM BOARD.—The term ‘Museum

10 Board’ means the National Museum Services Board

11 established under section 275.

12 ‘‘SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

13 ‘‘(a) ESTABLISHMENT.—There is established, within

14 the National Foundation on the Arts and the Humanities,

15 an Institute of Museum and Library Services.

16 ‘‘(b) OFFICES.—The Institute shall consist of an Of17 fice of Museum Services and an Office of Library Services.

18 There shall be a National Museum Services Board in the

19 Office of Museum Services.

20 ‘‘SEC. 204. DIRECTOR OF THE INSTITUTE.

21 ‘‘(a) APPOINTMENT.—

22 ‘‘(1) IN GENERAL.—The Institute shall be

23 headed by a Director, appointed by the President, by

24 and with the advice and consent of the Senate.
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1 ‘‘(2) TERM.—The Director shall serve for a

2 term of 4 years.

3 ‘‘(3) QUALIFICATIONS.—Beginning with the

4 first individual appointed to the position of Director

5 after the date of the enactment of the Government6 Sponsored Enterprise Privatization Act of 1996,

7 every second individual so appointed shall be ap8 pointed from among individuals who have special

9 competence with regard to library and information

10 services. Beginning with the second individual ap11 pointed to the position of Director after the date of

12 enactment of the Government-Sponsored Enterprise

13 Privatization Act of 1996, every second individual so

14 appointed shall be appointed from among individuals

15 who have special competence with regard to museum

16 services.

17 ‘‘(b) COMPENSATION.—The Director may be com18 pensated at the rate provided for level III of the Executive

19 Schedule under section 5314 of title 5, United States

20 Code.

21 ‘‘(c) DUTIES AND POWERS.—The Director shall per22 form such duties and exercise such powers as may be pre23 scribed by law, including awarding financial assistance for

24 activities described in this title.
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1 ‘‘(d) NONDELEGATION.—The Director shall not dele2 gate any of the functions of the Director to any person

3 who is not an officer or employee of the Institute.

4 ‘‘(e) COORDINATION.—The Director shall ensure co5 ordination of the policies and activities of the Institute

6 with the policies and activities of other agencies and of7 fices of the Federal Government having interest in and

8 responsibilities for the improvement of museums and li9 braries and information services.

10 ‘‘SEC. 205. DEPUTY DIRECTORS.

11 ‘‘The Office of Library Services shall be headed by

12 a Deputy Director, who shall be appointed by the Director

13 from among individuals who have a graduate degree in

14 library science and expertise in library and information

15 services. The Office of Museum Services shall be headed

16 by a Deputy Director, who shall be appointed by the Di17 rector from among individuals who have expertise in mu18 seum services.

19 ‘‘SEC. 206. PERSONNEL.

20 ‘‘(a) IN GENERAL.—The Director may, in accordance

21 with applicable provisions of title 5, United States Code,

22 appoint and determine the compensation of such employ23 ees as the Director determines to be necessary to carry

24 out the duties of the Institute.
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1 ‘‘(b) VOLUNTARY SERVICES.—The Director may ac2 cept and utilize the voluntary services of individuals and

3 reimburse the individuals for travel expenses, including

4 per diem in lieu of subsistence, in the same amounts and

5 to the same extent as authorized under section 5703 of

6 title 5, United States Code, for persons employed intermit7 tently in Federal Government service.

8 ‘‘SEC. 207. CONTRIBUTIONS.

9 ‘‘The Institute is authorized to solicit, accept, receive,

10 and invest in the name of the United States, gifts, be11 quests, or devises of money and other property or services

12 and to use such property or services in furtherance of the

13 functions of the Institute. Any proceeds from such gifts,

14 bequests, or devises, after acceptance by the Institute,

15 shall be paid by the donor or the representative of the

16 donor to the Director. The Director shall enter the pro17 ceeds in a special interest-bearing account to the credit

18 of the Institute for the purposes specified in each case.

19 ‘‘Subtitle B—Library Services and

20 Technology

21 ‘‘SEC. 211. SHORT TITLE.

22 ‘‘This subtitle may be cited as the ‘Library Services

23 and Technology Act’.

24 ‘‘SEC. 212. PURPOSE.

25 ‘‘It is the purpose of this subtitle—
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1 ‘‘(1) to consolidate Federal library service pro2 grams;

3 ‘‘(2) to stimulate excellence and promote access

4 to learning and information resources in all types of

5 libraries for individuals of all ages;

6 ‘‘(3) to promote library services that provide all

7 users access to information through State, regional,

8 national and international electronic networks;

9 ‘‘(4) to provide linkages among and between li10 braries; and

11 ‘‘(5) to promote targeted library services to peo12 ple of diverse geographic, cultural, and socio13 economic backgrounds, to individuals with disabil14 ities, and to people with limited functional literacy

15 or information skills.

16 ‘‘SEC. 213. DEFINITIONS.

17 ‘‘As used in this subtitle:

18 ‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’

19 means any tribe, band, nation, or other organized

20 group or community, including any Alaska native

21 village, regional corporation, or village corporation,

22 as defined in or established pursuant to the Alaska

23 Native Claims Settlement Act (43 U.S.C. 1601 et

24 seq.), which is recognized by the Secretary of the In25 terior as eligible for the special programs and serv-
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1 ices provided by the United States to Indians be2 cause of their status as Indians.

3 ‘‘(2) LIBRARY.—The term ‘library’ includes—

4 ‘‘(A) a public library;

5 ‘‘(B) a public elementary school or second6 ary school library;

7 ‘‘(C) an academic library;

8 ‘‘(D) a research library, which for the pur9 poses of this subtitle means a library that—

10 ‘‘(i) makes publicly available library

11 services and materials suitable for schol12 arly research and not otherwise available

13 to the public; and

14 ‘‘(ii) is not an integral part of an in15 stitution of higher education; and

16 ‘‘(E) a private library, but only if the State

17 in which such private library is located deter18 mines that the library should be considered a li19 brary for purposes of this subtitle.

20 ‘‘(3) LIBRARY CONSORTIUM.—The term ‘library

21 consortium’ means any local, statewide, regional,

22 interstate, or international cooperative association of

23 library entities which provides for the systematic and

24 effective coordination of the resources of school, pub25 lic, academic, and special libraries and information
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1 centers, for improved services for the clientele of

2 such library entities.

3 ‘‘(4) STATE.—The term ‘State’, unless other4 wise specified, includes each of the 50 States of the

5 United States, the District of Columbia, the Com6 monwealth of Puerto Rico, the United States Virgin

7 Islands, Guam, American Samoa, the Common8 wealth of the Northern Mariana Islands, the Repub9 lic of the Marshall Islands, the Federated States of

10 Micronesia, and the Republic of Palau.

11 ‘‘(5) STATE LIBRARY ADMINISTRATIVE AGEN12 CY.—The term ‘State library administrative agency’

13 means the official agency of a State charged by the

14 law of the State with the extension and development

15 of public library services throughout the State.

16 ‘‘(6) STATE PLAN.—The term ‘State plan’

17 means the document which gives assurances that the

18 officially designated State library administrative

19 agency has the fiscal and legal authority and capa20 bility to administer all aspects of this subtitle, pro21 vides assurances for establishing the State’s policies,

22 priorities, criteria, and procedures necessary to the

23 implementation of all programs under this subtitle,

24 submits copies for approval as required by regula25 tions promulgated by the Director, identifies a
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1 State’s library needs, and sets forth the activities to

2 be taken toward meeting the identified needs sup3 ported with the assistance of Federal funds made

4 available under this subtitle.

5 ‘‘SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

6 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—

7 ‘‘(1) IN GENERAL.—There are authorized to be

8 appropriated $150,000,000 for fiscal year 1997 and

9 such sums as may be necessary for each of the fiscal

10 years 1998 through 2002 to carry out this subtitle.

11 ‘‘(2) TRANSFER.—The Secretary of Education

12 shall—

13 ‘‘(A) transfer any funds appropriated

14 under the authority of paragraph (1) to the Di15 rector to enable the Director to carry out this

16 subtitle; and

17 ‘‘(B) not exercise any authority concerning

18 the administration of this title other than the

19 transfer described in subparagraph (A).

20 ‘‘(b) FORWARD FUNDING.—

21 ‘‘(1) IN GENERAL.—To the end of affording the

22 responsible Federal, State, and local officers ade23 quate notice of available Federal financial assistance

24 for carrying out ongoing library activities and

25 projects, appropriations for grants, contracts, or
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1 other payments under any program under this sub2 title are authorized to be included in the appropria3 tions Act for the fiscal year preceding the fiscal year

4 during which such activities and projects shall be

5 carried out.

6 ‘‘(2) ADDITIONAL AUTHORIZATION OF APPRO7 PRIATIONS.—In order to effect a transition to the

8 timing of appropriation action authorized by sub9 section (a), the application of this section may result

10 in the enactment, in a fiscal year, of separate appro11 priations for a program under this subtitle (whether

12 in the same appropriations Act or otherwise) for two

13 consecutive fiscal years.

14 ‘‘(c) ADMINISTRATION.—Not more than 3 percent of

15 the funds appropriated under this section for a fiscal year

16 may be used to pay for the Federal administrative costs

17 of carrying out this subtitle.

18 ‘‘CHAPTER 1—BASIC PROGRAM

19 REQUIREMENTS

20 ‘‘SEC. 221. RESERVATIONS AND ALLOTMENTS.

21 ‘‘(a) RESERVATIONS.—

22 ‘‘(1) IN GENERAL.—From the amount appro23 priated under the authority of section 214 for any

24 fiscal year, the Director—
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‘‘(A) shall reserve 11 1 ⁄2 percent to award

2 grants in accordance with section 261; and

3 ‘‘(B) shall reserve 4 percent to award na4 tional leadership grants or contracts in accord5 ance with section 262.

6 ‘‘(2) SPECIAL RULE.—If the funds reserved

7 pursuant to paragraph (1)(B) for a fiscal year have

8 not been obligated by the end of such fiscal year,

9 then such funds shall be allotted in accordance with

10 subsection (b) for the fiscal year succeeding the fis11 cal year for which the funds were so reserved.

12 ‘‘(b) ALLOTMENTS.—

13 ‘‘(1) IN GENERAL.—From the sums appro14 priated under the authority of section 214 and not

15 reserved under subsection (a) for any fiscal year, the

16 Director shall award grants from minimum allot17 ments, as determined under paragraph (3), to each

18 State. Any sums remaining after minimum allot19 ments are made for such year shall be allotted in the

20 manner set forth in paragraph (2).

21 ‘‘(2) REMAINDER.—From the remainder of any

22 sums appropriated under the authority of section

23 214 that are not reserved under subsection (a) and

24 not allotted under paragraph (1) for any fiscal year,

25 the Director shall award grants to each State in an
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1 amount that bears the same relation to such remain2 der as the population of the State bears to the popu3 lation of all States.

4 ‘‘(3) MINIMUM ALLOTMENT.—

5 ‘‘(A) IN GENERAL.—For the purposes of

6 this subsection, the minimum allotment for each

7 State shall be $340,000, except that the mini8 mum allotment shall be $40,000 in the case of

9 the United States Virgin Islands, Guam, Amer10 ican Samoa, the Commonwealth of the North11 ern Mariana Islands, the Republic of the Mar12 shall Islands, the Federated States of Microne13 sia, and the Republic of Palau.

14 ‘‘(B) RATABLE REDUCTIONS.—If the sum

15 appropriated under the authority of section 214

16 and not reserved under subsection (a) for any

17 fiscal year is insufficient to fully satisfy the ag18 gregate of the minimum allotments for all

19 States for that purpose for such year, each of

20 such minimum allotments shall be reduced rat21 ably.

22 ‘‘(C) SPECIAL RULE.—

23 ‘‘(i) IN GENERAL.—Notwithstanding

24 any other provision of this subsection and

25 using funds allotted for the Republic of the
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1 Marshall Islands, the Federated States of

2 Micronesia, and the Republic of Palau

3 under this subsection, the Director shall

4 award grants to Guam, American Samoa,

5 the Commonwealth of the Northern Mari6 ana Islands, the Republic of the Marshall

7 Islands, the Federated States of Microne8 sia, or the Republic of Palau to carry out

9 activities described in this subtitle in ac10 cordance with the provisions of this sub11 title that the Director determines are not

12 inconsistent with this subparagraph.

13 ‘‘(ii) AWARD BASIS.—The Director

14 shall award grants pursuant to clause (i)

15 on a competitive basis and pursuant to rec16 ommendations from the Pacific Region

17 Educational Laboratory in Honolulu, Ha18 waii.

19 ‘‘(iii) TERMINATION OF ELIGI20 BILITY.—Notwithstanding any other provi21 sion of law, the Republic of the Marshall

22 Islands, the Federated States of Microne23 sia, and the Republic of Palau shall not re24 ceive any funds under this subtitle for any
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1 fiscal year that begins after September 30,

2 2001.

3 ‘‘(iv) ADMINISTRATIVE COSTS.—The

4 Director may provide not more than 5 per5 cent of the funds made available for grants

6 under this subparagraph to pay the admin7 istrative costs of the Pacific Region Edu8 cational Laboratory regarding activities as9 sisted under this subparagraph.

10 ‘‘(4) DATA.—The population of each State and

11 of all the States shall be determined by the Director

12 on the basis of the most recent data available from

13 the Bureau of the Census.

14 ‘‘SEC. 222. ADMINISTRATION.

15 ‘‘(a) IN GENERAL.—Not more than 4 percent of the

16 total amount of funds received under this subtitle for any

17 fiscal year by a State may be used for administrative costs.

18 ‘‘(b) CONSTRUCTION.—Nothing in this section shall

19 be construed to limit spending for evaluation costs under

20 section 224(c) from sources other than this subtitle.

21 ‘‘SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTE22 NANCE OF EFFORT REQUIREMENTS.

23 ‘‘(a) PAYMENTS.—Subject to appropriations provided

24 pursuant to section 214, the Director shall pay to each

25 State library administrative agency having a State plan
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1 approved under section 224 the Federal share of the cost

2 of the activities described in the State plan.

3 ‘‘(b) FEDERAL SHARE.—

4 ‘‘(1) IN GENERAL.—The Federal share shall be

5 66 percent.

6 ‘‘(2) NON-FEDERAL SHARE.—The non-Federal

7 share of payments shall be provided from non-Fed8 eral, State, or local sources.

9 ‘‘(c) MAINTENANCE OF EFFORT.—

10 ‘‘(1) STATE EXPENDITURES.—

11 ‘‘(A) REQUIREMENT.—

12 ‘‘(i) IN GENERAL.—The amount oth13 erwise payable to a State for a fiscal year

14 pursuant to an allotment under this chap15 ter shall be reduced if the level of State ex16 penditures, as described in paragraph (2),

17 for the previous fiscal year is less than the

18 average of the total of such expenditures

19 for the 3 fiscal years preceding that pre20 vious fiscal year. The amount of the reduc21 tion in allotment for any fiscal year shall

22 be equal to the amount by which the level

23 of such State expenditures for the fiscal

24 year for which the determination is made

25 is less than the average of the total of such
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1 expenditures for the 3 fiscal years preced2 ing the fiscal year for which the determina3 tion is made.

4 ‘‘(ii) CALCULATION.—Any decrease in

5 State expenditures resulting from the ap6 plication of subparagraph (B) shall be ex7 cluded from the calculation of the average

8 level of State expenditures for any 3-year

9 period described in clause (i).

10 ‘‘(B) DECREASE IN FEDERAL SUPPORT.—

11 If the amount made available under this sub12 title for a fiscal year is less than the amount

13 made available under this subtitle for the pre14 ceding fiscal year, then the expenditures re15 quired by subparagraph (A) for such preceding

16 fiscal year shall be decreased by the same per17 centage as the percentage decrease in the

18 amount so made available.

19 ‘‘(2) LEVEL OF STATE EXPENDITURES.—The

20 level of State expenditures for the purposes of para21 graph (1) shall include all State dollars expended by

22 the State library administrative agency for library

23 programs that are consistent with the purposes of

24 this subtitle. All funds included in the maintenance

25 of effort calculation under this subsection shall be
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1 expended during the fiscal year for which the deter2 mination is made, and shall not include capital ex3 penditures, special one-time project costs, or similar

4 windfalls.

5 ‘‘(3) WAIVER.—The Director may waive the re6 quirements of paragraph (1) if the Director deter7 mines that such a waiver would be equitable due to

8 exceptional or uncontrollable circumstances such as

9 a natural disaster or a precipitous and unforeseen

10 decline in the financial resources of the State.

11 ‘‘SEC. 224. STATE PLANS.

12 ‘‘(a) STATE PLAN REQUIRED.—

13 ‘‘(1) IN GENERAL.—In order to be eligible to

14 receive a grant under this subtitle, a State library

15 administrative agency shall submit a State plan to

16 the Director not later than April 1, 1997.

17 ‘‘(2) DURATION.—The State plan shall cover a

18 period of 5 fiscal years.

19 ‘‘(3) REVISIONS.—If a State library administra20 tive agency makes a substantive revision to its State

21 plan, then the State library administrative agency

22 shall submit to the Director an amendment to the

23 State plan containing such revision not later than

24 April 1 of the fiscal year preceding the fiscal year

25 for which the amendment will be effective.
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1 ‘‘(b) CONTENTS.—The State plan shall—

2 ‘‘(1) establish goals, and specify priorities, for

3 the State consistent with the purposes of this sub4 title;

5 ‘‘(2) describe activities that are consistent with

6 the goals and priorities established under paragraph

7 (1), the purposes of this subtitle, and section 231,

8 that the State library administrative agency will

9 carry out during such year using such grant;

10 ‘‘(3) describe the procedures that such agency

11 will use to carry out the activities described in para12 graph (2);

13 ‘‘(4) describe the methodology that such agency

14 will use to evaluate the success of the activities es15 tablished under paragraph (2) in achieving the goals

16 and meeting the priorities described in paragraph

17 (1);

18 ‘‘(5) describe the procedures that such agency

19 will use to involve libraries and library users

20 throughout the State in policy decisions regarding

21 implementation of this subtitle; and

22 ‘‘(6) provide assurances satisfactory to the Di23 rector that such agency will make such reports, in

24 such form and containing such information, as the

25 Director may reasonably require to carry out this
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1 subtitle and to determine the extent to which funds

2 provided under this subtitle have been effective in

3 carrying out the purposes of this subtitle.

4 ‘‘(c) EVALUATION AND REPORT.—Each State library

5 administrative agency receiving a grant under this subtitle

6 shall independently evaluate, and report to the Director

7 regarding, the activities assisted under this subtitle, prior

8 to the end of the 5-year plan.

9 ‘‘(d) INFORMATION.—Each library receiving assist10 ance under this subtitle shall submit to the State library

11 administrative agency such information as such agency

12 may require to meet the requirements of subsection (c).

13 ‘‘(e) APPROVAL.—

14 ‘‘(1) IN GENERAL.—The Director shall approve

15 any State plan under this subtitle that meets the re16 quirements of this subtitle and provides satisfactory

17 assurances that the provisions of such plan will be

18 carried out.

19 ‘‘(2) PUBLIC AVAILABILITY.—Each State li20 brary administrative agency receiving a grant under

21 this subtitle shall make the State plan available to

22 the public.

23 ‘‘(3) ADMINISTRATION.—If the Director deter24 mines that the State plan does not meet the require25 ments of this section, the Director shall—
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1 ‘‘(A) immediately notify the State library

2 administrative agency of such determination

3 and the reasons for such determination;

4 ‘‘(B) offer the State library administrative

5 agency the opportunity to revise its State plan;

6 ‘‘(C) provide technical assistance in order

7 to assist the State library administrative agency

8 in meeting the requirements of this section; and

9 ‘‘(D) provide the State library administra10 tive agency the opportunity for a hearing.

11 ‘‘CHAPTER 2—LIBRARY PROGRAMS

12 ‘‘SEC. 231. GRANTS TO STATES.

13 ‘‘(a) IN GENERAL.—Of the funds provided to a State

14 library administrative agency under section 214, such

15 agency shall expend, either directly or through subgrants

16 or cooperative agreements, at least 96 percent of such

17 funds for—

18 ‘‘(1) establishing or enhancing electronic link19 ages among or between libraries and library consor20 tia; and

21 ‘‘(2) targeting library and information services

22 to persons having difficulty using a library and to

23 underserved urban and rural communities, including

24 children (from birth through age 17) from families

25 with incomes below the poverty line (as defined by
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1 the Office of Management and Budget and revised

2 annually in accordance with section 673(2) of the

3 Community Services Block Grant Act (42 U.S.C.

4 9902(2)) applicable to a family of the size involved.

5 ‘‘(b) SPECIAL RULE.—Each State library administra6 tive agency receiving funds under this chapter may appor7 tion the funds available for the purposes described in sub8 section (a) between the two purposes described in para9 graphs (1) and (2) of such subsection, as appropriate, to

10 meet the needs of the individual State.

11 ‘‘CHAPTER 3—ADMINISTRATIVE

12 PROVISIONS

13 ‘‘Subchapter A—State Requirements

14 ‘‘SEC. 251. STATE ADVISORY COUNCILS.

15 ‘‘Each State desiring assistance under this subtitle

16 may establish a State advisory council which is broadly

17 representative of the library entities in the State, including

18 public, school, academic, special, and institutional librar19 ies, and libraries serving individuals with disabilities.

20 ‘‘Subchapter B—Federal Requirements

21 ‘‘SEC. 261. SERVICES FOR INDIAN TRIBES.

22 ‘‘From amounts reserved under section 221(a)(1)(A)

23 for any fiscal year the Director shall award grants to orga24 nizations primarily serving and representing Indian tribes
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1 to enable such organizations to carry out the activities de2 scribed in section 231.

3 ‘‘SEC. 262. NATIONAL LEADERSHIP GRANTS OR CON4 TRACTS.

5 ‘‘(a) IN GENERAL.—From the amounts reserved

6 under section 221(a)(1)(B) for any fiscal year the Direc7 tor shall establish and carry out a program awarding na8 tional leadership grants or contracts to enhance the qual9 ity of library services nationwide and to provide coordina10 tion between libraries and museums. Such grants or con11 tracts shall be used for activities that may include—

12 ‘‘(1) education and training of persons in li13 brary and information science, particularly in areas

14 of new technology and other critical needs, including

15 graduate fellowships, traineeships, institutes, or

16 other programs;

17 ‘‘(2) research and demonstration projects relat18 ed to the improvement of libraries, education in li19 brary and information science, enhancement of li20 brary services through effective and efficient use of

21 new technologies, and dissemination of information

22 derived from such projects;

23 ‘‘(3) preservation or digitization of library ma24 terials and resources, giving priority to projects em25 phasizing coordination, avoidance of duplication, and
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1 access by researchers beyond the institution or li2 brary entity undertaking the project; and

3 ‘‘(4) model programs demonstrating cooperative

4 efforts between libraries and museums.

5 ‘‘(b) GRANTS OR CONTRACTS.—

6 ‘‘(1) IN GENERAL.—The Director may carry

7 out the activities described in subsection (a) by

8 awarding grants to, or entering into contracts with,

9 libraries, agencies, institutions of higher education,

10 or museums, where appropriate.

11 ‘‘(2) COMPETITIVE BASIS.—Grants and con12 tracts under this section shall be awarded on a com13 petitive basis.

14 ‘‘(c) SPECIAL RULE.—The Director shall make every

15 effort to ensure that activities assisted under this section

16 are administered by appropriate library and museum pro17 fessionals or experts.

18 ‘‘SEC. 263. STATE AND LOCAL INITIATIVES.

19 ‘‘Nothing in this subtitle shall be construed to inter20 fere with State and local initiatives and responsibility in

21 the conduct of library services. The administration of li22 braries, the selection of personnel and library books and

23 materials, and insofar as consistent with the purposes of

24 this subtitle, the determination of the best uses of the
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1 funds provided under this subtitle, shall be reserved for

2 the States and their local subdivisions.

3 ‘‘Subtitle C—Museum Services

4 ‘‘SEC. 271. PURPOSE.

5 ‘‘It is the purpose of this subtitle—

6 ‘‘(1) to encourage and assist museums in their

7 educational role, in conjunction with formal systems

8 of elementary, secondary, and postsecondary edu9 cation, and with programs of nonformal education

10 for all age groups;

11 ‘‘(2) to assist museums in modernizing their

12 methods and facilities so that the museums are bet13 ter able to conserve the cultural, historic, and sci14 entific heritage of the United States; and

15 ‘‘(3) to ease the financial burden borne by mu16 seums as a result of their increasing use by the pub17 lic.

18 ‘‘SEC. 272. DEFINITIONS.

19 ‘‘As used in this subtitle:

20 ‘‘(1) MUSEUM.—The term ‘museum’ means a

21 public or private nonprofit agency or institution or22 ganized on a permanent basis for essentially edu23 cational or aesthetic purposes, that utilizes a profes24 sional staff, owns or utilizes tangible objects, cares
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1 for the tangible objects, and exhibits the tangible ob2 jects to the public on a regular basis.

3 ‘‘(2) STATE.—The term ‘State’ means each of

4 the 50 States of the United States, the District of

5 Columbia, the Commonwealth of Puerto Rico, the

6 United States Virgin Islands, Guam, American

7 Samoa, the Commonwealth of the Northern Mariana

8 Islands, the Republic of the Marshall Islands, the

9 Federated States of Micronesia, and the Republic of

10 Palau.

11 ‘‘SEC. 273. MUSEUM SERVICES ACTIVITIES.

12 ‘‘(a) GRANTS.—The Director, subject to the policy di13 rection of the Museum Board, may make grants to muse14 ums to pay for the Federal share of the cost of increasing

15 and improving museum services, through such activities

16 as—

17 ‘‘(1) programs that enable museums to con18 struct or install displays, interpretations, and exhibi19 tions in order to improve museum services provided

20 to the public;

21 ‘‘(2) assisting museums in developing and

22 maintaining professionally trained or otherwise expe23 rienced staff to meet the needs of the museums;

24 ‘‘(3) assisting museums in meeting the adminis25 trative costs of preserving and maintaining the col-
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1 lections of the museums, exhibiting the collections to

2 the public, and providing educational programs to

3 the public through the use of the collections;

4 ‘‘(4) assisting museums in cooperating with

5 each other in developing traveling exhibitions, meet6 ing transportation costs, and identifying and locat7 ing collections available for loan;

8 ‘‘(5) assisting museums in the conservation of

9 their collections;

10 ‘‘(6) developing and carrying out specialized

11 programs for specific segments of the public, such as

12 programs for urban neighborhoods, rural areas, In13 dian reservations, and penal and other State institu14 tions; and

15 ‘‘(7) model programs demonstrating cooperative

16 efforts between libraries and museums.

17 ‘‘(b) CONTRACTS AND COOPERATIVE AGREE18 MENTS.—

19 ‘‘(1) PROJECTS TO STRENGTHEN MUSEUM

20 SERVICES.—The Director, subject to the policy di21 rection of the Museum Board, is authorized to enter

22 into contracts and cooperative agreements with ap23 propriate entities, as determined by the Director, to

24 pay for the Federal share of enabling the entities to

25 undertake projects designed to strengthen museum
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1 services, except that any contracts or cooperative

2 agreements entered into pursuant to this subsection

3 shall be effective only to such extent or in such

4 amounts as are provided in appropriations acts.

5 ‘‘(2) LIMITATION ON AMOUNT.—The aggregate

6 amount of financial assistance made available under

7 this subsection for a fiscal year shall not exceed 15

8 percent of the amount appropriated under this sub9 title for such fiscal year.

10 ‘‘(3) OPERATIONAL EXPENSES.—No financial

11 assistance may be provided under this subsection to

12 pay for operational expenses.

13 ‘‘(c) FEDERAL SHARE.—

14 ‘‘(1) 50 PERCENT.—Except as provided in para15 graph (2), the Federal share described in sub16 sections (a) and (b) shall be not more than 50 per17 cent.

18 ‘‘(2) GREATER THAN 50 PERCENT.—The Direc19 tor may use not more than 20 percent of the funds

20 made available under this subtitle for a fiscal year

21 to make grants under subsection (a), or enter into

22 contracts or agreements under subsection (b), for

23 which the Federal share may be greater than 50

24 percent.
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1 ‘‘(d) REVIEW AND EVALUATION.—The Director shall

2 establish procedures for reviewing and evaluating grants,

3 contracts, and cooperative agreements made or entered

4 into under this subtitle. Procedures for reviewing grant

5 applications or contracts and cooperative agreements for

6 financial assistance under this subtitle shall not be subject

7 to any review outside of the Institute.

8 ‘‘SEC. 274. AWARD.

9 ‘‘The Director, with the advice of the Museum Board,

10 may annually award a National Award for Museum Serv11 ice to outstanding museums that have made significant

12 contributions in service to their communities.

13 ‘‘SEC. 275. NATIONAL MUSEUM SERVICES BOARD.

14 ‘‘(a) ESTABLISHMENT.—There is established in the

15 Institute a National Museum Services Board.

16 ‘‘(b) COMPOSITION AND QUALIFICATIONS.—

17 ‘‘(1) COMPOSITION.—The Museum Board shall

18 consist of the Director and 14 members appointed

19 by the President, by and with the advice and consent

20 of the Senate.

21 ‘‘(2) QUALIFICATIONS.—The appointive mem22 bers of the Museum Board shall be selected from

23 among citizens of the United States—

24 ‘‘(A) who are members of the general pub25 lic;
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1 ‘‘(B) who are or have been affiliated

2 with—

3 ‘‘(i) resources that, collectively, are

4 broadly representative of the curatorial,

5 conservation, educational, and cultural re6 sources of the United States; or

7 ‘‘(ii) museums that, collectively, are

8 broadly representative of various types of

9 museums, including museums relating to

10 science, history, technology, art, zoos, and

11 botanical gardens; and

12 ‘‘(C) who are recognized for their broad

13 knowledge, expertise, or experience in museums

14 or commitment to museums.

15 ‘‘(3) GEOGRAPHIC AND OTHER REPRESENTA16 TION.—Members of the Museum Board shall be ap17 pointed to reflect persons from various geographic

18 regions of the United States. The Museum Board

19 may not include, at any time, more than 3 members

20 from a single State. In making such appointments,

21 the President shall give due regard to equitable rep22 resentation of women, minorities, and persons with

23 disabilities who are involved with museums.

24 ‘‘(c) TERMS.—
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1 ‘‘(1) IN GENERAL.—Each appointive member of

2 the Museum Board shall serve for a term of 5 years,

3 except that—

4 ‘‘(A) of the members first appointed, 3

5 shall serve for terms of 5 years, 3 shall serve

6 for terms of 4 years, 3 shall serve for terms of

7 3 years, 3 shall serve for terms of 2 years, and

8 2 shall serve for terms of 1 year, as designated

9 by the President at the time of nomination for

10 appointment; and

11 ‘‘(B) any member appointed to fill a va12 cancy shall serve for the remainder of the term

13 for which the predecessor of the member was

14 appointed.

15 ‘‘(2) REAPPOINTMENT.—No member of the

16 Museum Board who has been a member for more

17 than 7 consecutive years shall be eligible for re18 appointment.

19 ‘‘(3) SERVICE UNTIL SUCCESSOR TAKES OF20 FICE.—Notwithstanding any other provision of this

21 subsection, a member of the Museum Board shall

22 serve after the expiration of the term of the member

23 until the successor to the member takes office.

24 ‘‘(d) DUTIES AND POWERS.—The Museum Board

25 shall have the responsibility to advise the Director on gen-
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1 eral policies with respect to the duties, powers, and au2 thority of the Institute relating to museum services, in3 cluding general policies with respect to—

4 ‘‘(1) financial assistance awarded under this

5 subtitle for museum services; and

6 ‘‘(2) projects described in section 262(a)(4).

7 ‘‘(e) CHAIRPERSON.—The President shall designate

8 1 of the appointive members of the Museum Board as

9 Chairperson of the Museum Board.

10 ‘‘(f) MEETINGS.—

11 ‘‘(1) IN GENERAL.—The Museum Board shall

12 meet—

13 ‘‘(A) not less than 3 times each year, in14 cluding—

15 ‘‘(i) not less than 2 times each year

16 separately; and

17 ‘‘(ii) not less than 1 time each year in

18 a joint meeting with the Commission, con19 vened for purposes of making general poli20 cies with respect to financial assistance for

21 projects described in section 262(a)(4);

22 and

23 ‘‘(B) at the call of the Director.

24 ‘‘(2) VOTE.—All decisions by the Museum

25 Board with respect to the exercise of the duties and
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1 powers of the Museum Board shall be made by a

2 majority vote of the members of the Museum Board

3 who are present. All decisions by the Commission

4 and the Museum Board with respect to the policies

5 described in paragraph (1)(A)(ii) shall be made by

a 2 6 ⁄3 majority vote of the total number of the mem7 bers of the Commission and the Museum Board who

8 are present.

9 ‘‘(g) QUORUM.—A majority of the members of the

10 Museum Board shall constitute a quorum for the conduct

11 of business at official meetings of the Museum Board, but

12 a lesser number of members may hold hearings. A major13 ity of the members of the Commission and a majority of

14 the members of the Museum Board shall constitute a

15 quorum for the conduct of business at official joint meet16 ings of the Commission and the Museum Board.

17 ‘‘(h) COMPENSATION AND TRAVEL EXPENSES.—

18 ‘‘(1) COMPENSATION.—Each member of the

19 Museum Board who is not an officer or employee of

20 the Federal Government may be compensated at a

21 rate to be fixed by the President, but not to exceed

22 the daily equivalent of the maximum rate authorized

23 for a position above grade GS–15 of the General

24 Schedule under section 5108 of title 5, United

25 States Code, for each day (including travel time)
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1 during which such member is engaged in the per2 formance of the duties of the Museum Board. All

3 members of the Museum Board who are officers or

4 employees of the Federal Government shall serve

5 without compensation in addition to compensation

6 received for their services as officers or employees of

7 the Federal Government.

8 ‘‘(2) TRAVEL EXPENSES.—The members of the

9 Museum Board may be allowed travel expenses, in10 cluding per diem in lieu of subsistence, in the same

11 amounts and to the same extent, as authorized

12 under section 5703 of title 5, United States Code,

13 for persons employed intermittently in Federal Gov14 ernment service.

15 ‘‘(i) COORDINATION.—The Museum Board, with the

16 advice of the Director, shall take steps to ensure that the

17 policies and activities of the Institute are coordinated with

18 other activities of the Federal Government.

19 ‘‘SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

20 ‘‘(a) GRANTS.—For the purpose of carrying out this

21 subtitle, there are authorized to be appropriated to the Di22 rector $28,700,000 for the fiscal year 1997, and such

23 sums as may be necessary for each of the fiscal years 1998

24 through 2002.
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1 ‘‘(b) ADMINISTRATION.—Not more than 10 percent

2 of the funds appropriated under this section for a fiscal

3 year may be used to pay for the administrative costs of

4 carrying out this subtitle.

5 ‘‘(c) SUMS REMAINING AVAILABLE.—Sums appro6 priated pursuant to subsection (a) for any fiscal year shall

7 remain available for obligation until expended.’’.

8 SEC. 202. NATIONAL COMMISSION ON LIBRARIES AND IN9 FORMATION SCIENCE.

10 (a) FUNCTIONS.—Section 5 of the National Commis11 sion on Libraries and Information Science Act (20 U.S.C.

12 1504) is amended—

13 (1) by redesignating subsections (b) through (d)

14 as subsections (d) through (f), respectively; and

15 (2) by inserting after subsection (a) the follow16 ing:

17 ‘‘(b) The Commission shall have the responsibility to

18 advise the Director of the Institute of Museum and Li19 brary Services on general policies with respect to the du20 ties, powers, and authority of the Institute of Museum and

21 Library Services relating to library services, including—

22 ‘‘(1) general policies with respect to—

23 ‘‘(A) financial assistance awarded under

24 the Museum and Library Services Act for li25 brary services; and
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1 ‘‘(B) projects described in section

2 262(a)(4) of such Act; and

3 ‘‘(2) measures to ensure that the policies and

4 activities of the Institute of Museum and Library

5 Services are coordinated with other activities of the

6 Federal Government.

7 ‘‘(c)(1) The Commission shall meet not less than 1

8 time each year in a joint meeting with the National Mu9 seum Services Board, convened for purposes of providing

10 advice on general policy with respect to financial assist11 ance for projects described in section 262(a)(4) of such

12 Act.

13 ‘‘(2) All decisions by the Commission and the Na14 tional Museum Services Board with respect to the advice

15 on general policy described in paragraph (1) shall be made

by a 2 16 ⁄3 majority vote of the total number of the members

17 of the Commission and the National Museum Services

18 Board who are present.

19 ‘‘(3) A majority of the members of the Commission

20 and a majority of the members of the National Museum

21 Services Board shall constitute a quorum for the conduct

22 of business at official joint meetings of the Commission

23 and the National Museum Services Board.’’.
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1 (b) MEMBERSHIP.—Section 6 of the National Com2 mission on Libraries and Information Science Act (20

3 U.S.C. 1505) is amended—

4 (1) in subsection (a)—

5 (A) in the first sentence, by striking ‘‘Li6 brarian of Congress’’ and inserting ‘‘Librarian

7 of Congress, the Director of the Institute of

8 Museum and Library Services (who shall serve

9 as an ex officio, nonvoting member),’’;

10 (B) in the second sentence—

11 (i) by striking ‘‘special competence or

12 interest in’’ and inserting ‘‘special com13 petence in or knowledge of’’; and

14 (ii) by inserting before the period the

15 following: ‘‘and at least one other of whom

16 shall be knowledgeable with respect to the

17 library and information service and science

18 needs of the elderly’’;

19 (C) in the third sentence, by inserting ‘‘ap20 pointive’’ before ‘‘members’’; and

21 (D) in the last sentence, by striking ‘‘term

22 and at least’’ and all that follows and inserting

23 ‘‘term.’’; and

24 (2) in subsection (b), by striking ‘‘the rate spec25 ified’’ and all that follows through ‘‘and while’’ and
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1 inserting ‘‘the daily equivalent of the maximum rate

2 authorized for a position above grade GS–15 of the

3 General Schedule under section 5108 of title 5,

4 United States Code, for each day (including travel5 time) during which the members are engaged in the

6 business of the Commission. While’’.

7 SEC. 203. TRANSFER OF FUNCTIONS FROM INSTITUTE OF

8 MUSEUM SERVICES.

9 (a) DEFINITIONS.—For purposes of this section, un10 less otherwise provided or indicated by the context—

11 (1) the term ‘‘Federal agency’’ has the meaning

12 given to the term ‘‘agency’’ by section 551(1) of title

13 5, United States Code;

14 (2) the term ‘‘function’’ means any duty, obli15 gation, power, authority, responsibility, right, privi16 lege, activity, or program; and

17 (3) the term ‘‘office’’ includes any office, ad18 ministration, agency, institute, unit, organizational

19 entity, or component thereof.

20 (b) TRANSFER OF FUNCTIONS FROM THE INSTITUTE

21 OF MUSEUM SERVICES AND THE LIBRARY PROGRAM OF22 FICE.—There are transferred to the Director of the Insti23 tute of Museum and Library Services established under

24 section 203 of the Museum and Library Services Act—
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1 (1) all functions that the Director of the Insti2 tute of Museum Services exercised before the date of

3 enactment of this section (including all related func4 tions of any officer or employee of the Institute of

5 Museum Services); and

6 (2) all functions that the Director of Library

7 Programs in the Office of Educational Research and

8 Improvement in the Department of Education exer9 cised before the date of enactment of this section

10 and any related function of any officer or employee

11 of the Department of Education.

12 (c) DETERMINATIONS OF CERTAIN FUNCTIONS BY

13 THE OFFICE OF MANAGEMENT AND BUDGET.—If nec14 essary, the Office of Management and Budget shall make

15 any determination of the functions that are transferred

16 under subsection (b).

17 (d) DELEGATION AND ASSIGNMENT.—Except where

18 otherwise expressly prohibited by law or otherwise pro19 vided by this section, the Director of the Institute of Mu20 seum and Library Services may delegate any of the func21 tions transferred to the Director of the Institute of Mu22 seum and Library Services by this section and any func23 tion transferred or granted to such Director of the Insti24 tute of Museum and Library Services after the effective

25 date of this section to such officers and employees of the
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1 Institute of Museum and Library Services as the Director

2 of the Institute of Museum and Library Services may des3 ignate, and may authorize successive redelegations of such

4 functions as may be necessary or appropriate, except that

5 any delegation of any such functions with respect to librar6 ies shall be made to the Deputy Director of the Office

7 of Library Services and with respect to museums shall be

8 made to the Deputy Director of the Office of Museum

9 Services. No delegation of functions by the Director of the

10 Institute of Museum and Library Services under this sec11 tion or under any other provision of this section shall re12 lieve such Director of the Institute of Museum and Li13 brary Services of responsibility for the administration of

14 such functions.

15 (e) REORGANIZATION.—The Director of the Institute

16 of Museum and Library Services may allocate or reallocate

17 any function transferred under subsection (b) among the

18 officers of the Institute of Museum and Library Services,

19 and may establish, consolidate, alter, or discontinue such

20 organizational entities in the Institute of Museum and Li21 brary Services as may be necessary or appropriate.

22 (f) RULES.—The Director of the Institute of Museum

23 and Library Services may prescribe, in accordance with

24 chapters 5 and 6 of title 5, United States Code, such rules

25 and regulations as the Director of the Institute of Museum
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1 and Library Services determines to be necessary or appro2 priate to administer and manage the functions of the In3 stitute of Museum and Library Services.

4 (g) TRANSFER AND ALLOCATIONS OF APPROPRIA5 TIONS AND PERSONNEL.—Except as otherwise provided

6 in this section, the personnel employed in connection with,

7 and the assets, liabilities, contracts, property, records, and

8 unexpended balances of appropriations, authorizations, al9 locations, and other funds employed, used, held, arising

10 from, available to, or to be made available in connection

11 with the functions transferred by this section, subject to

12 section 1531 of title 31, United States Code, shall be

13 transferred to the Institute of Museum and Library Serv14 ices. Unexpended funds transferred pursuant to this sub15 section shall be used only for the purposes for which the

16 funds were originally authorized and appropriated.

17 (h) INCIDENTAL TRANSFERS.—The Director of the

18 Office of Management and Budget, at such time or times

19 as the Director shall provide, may make such determina20 tions as may be necessary with regard to the functions

21 transferred by this section, and make such additional inci22 dental dispositions of personnel, assets, liabilities, grants,

23 contracts, property, records, and unexpended balances of

24 appropriations, authorizations, allocations, and other

25 funds held, used, arising from, available to, or to be made
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1 available in connection with such functions, as may be nec2 essary to carry out this section. The Director of the Office

3 of Management and Budget shall provide for the termi4 nation of the affairs of all entities terminated by this sec5 tion and for such further measures and dispositions as

6 may be necessary to effectuate the purposes of this sec7 tion.

8 (i) EFFECT ON PERSONNEL.—

9 (1) IN GENERAL.—Except as otherwise pro10 vided by this section, the transfer pursuant to this

11 section of full-time personnel (except special Govern12 ment employees) and part-time personnel holding

13 permanent positions shall not cause any such em14 ployee to be separated or reduced in grade or com15 pensation for 1 year after the date of transfer of

16 such employee under this section.

17 (2) EXECUTIVE SCHEDULE POSITIONS.—Except

18 as otherwise provided in this section, any person

19 who, on the day preceding the effective date of this

20 section, held a position compensated in accordance

21 with the Executive Schedule prescribed in chapter

22 53 of title 5, United States Code, and who, without

23 a break in service, is appointed in the Institute of

24 Museum and Library Services to a position having

25 duties comparable to the duties performed imme-
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1 diately preceding such appointment shall continue to

2 be compensated in such new position at not less

3 than the rate provided for such previous position, for

4 the duration of the service of such person in such

5 new position.

6 (j) SAVINGS PROVISIONS.—

7 (1) CONTINUING EFFECT OF LEGAL DOCU8 MENTS.—All orders, determinations, rules, regula9 tions, permits, agreements, grants, contracts, certifi10 cates, licenses, registrations, privileges, and other

11 administrative actions—

12 (A) that have been issued, made, granted,

13 or allowed to become effective by the President,

14 any Federal agency or official of a Federal

15 agency, or by a court of competent jurisdiction,

16 in the performance of functions that are trans17 ferred under this section; and

18 (B) that were in effect before the effective

19 date of this section, or were final before the ef20 fective date of this section and are to become

21 effective on or after the effective date of this

22 section;

23 shall continue in effect according to their terms until

24 modified, terminated, superseded, set aside, or re25 voked in accordance with law by the President, the
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1 Director of the Institute of Museum and Library

2 Services or other authorized official, a court of com3 petent jurisdiction, or by operation of law.

4 (2) PROCEEDINGS NOT AFFECTED.—This sec5 tion shall not affect any proceedings, including no6 tices of proposed rulemaking, or any application for

7 any license, permit, certificate, or financial assist8 ance pending before the Institute of Museum Serv9 ices on the effective date of this section, with respect

10 to functions transferred by this section. Such pro11 ceedings and applications shall be continued. Orders

12 shall be issued in such proceedings, appeals shall be

13 taken from the orders, and payments shall be made

14 pursuant to the orders, as if this section had not

15 been enacted, and orders issued in any such proceed16 ings shall continue in effect until modified, termi17 nated, superseded, or revoked by a duly authorized

18 official, by a court of competent jurisdiction, or by

19 operation of law. Nothing in this paragraph shall be

20 construed to prohibit the discontinuance or modifica21 tion of any such proceeding under the same terms

22 and conditions and to the same extent that such pro23 ceeding could have been discontinued or modified if

24 this section had not been enacted.
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1 (3) SUITS NOT AFFECTED.—This section shall

2 not affect suits commenced before the effective date

3 of this section, and in all such suits, proceedings

4 shall be had, appeals taken, and judgments rendered

5 in the same manner and with the same effect as if

6 this section had not been enacted.

7 (4) NONABATEMENT OF ACTIONS.—No suit, ac8 tion, or other proceeding commenced by or against

9 the Institute of Museum Services, or by or against

10 any individual in the official capacity of such individ11 ual as an officer of the Institute of Museum Serv12 ices, shall abate by reason of the enactment of this

13 section.

14 (5) ADMINISTRATIVE ACTIONS RELATING TO

15 PROMULGATION OF REGULATIONS.—Any administra16 tive action relating to the preparation or promulga17 tion of a regulation by the Institute of Museum

18 Services relating to a function transferred under this

19 section may be continued by the Institute of Mu20 seum and Library Services with the same effect as

21 if this section had not been enacted.

22 (k) TRANSITION.—The Director of the Institute of

23 Museum and Library Services may utilize—

24 (1) the services of such officers, employees, and

25 other personnel of the Institute of Museum Services
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1 with respect to functions transferred to the Institute

2 of Museum and Library Services by this section; and

3 (2) funds appropriated to such functions for

4 such period of time as may reasonably be needed to

5 facilitate the orderly implementation of this section.

6 (l) REFERENCES.—A reference in any other Federal

7 law, Executive order, rule, regulation, or delegation of au8 thority, or any document of or relating to—

9 (1) the Director of the Institute of Museum

10 Services with regard to functions transferred under

11 subsection (b), shall be deemed to refer to the Direc12 tor of the Institute of Museum and Library Services;

13 and

14 (2) the Institute of Museum Services with re15 gard to functions transferred under subsection (b),

16 shall be deemed to refer to the Institute of Museum

17 and Library Services.

18 (m) ADDITIONAL CONFORMING AMENDMENTS.—

19 (1) RECOMMENDED LEGISLATION.—After con20 sultation with the appropriate committees of Con21 gress and the Director of the Office of Management

22 and Budget, the Director of the Institute of Museum

23 and Library Services shall prepare and submit to the

24 appropriate committees of Congress recommended

25 legislation containing technical and conforming
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1 amendments to reflect the changes made by this sec2 tion.

3 (2) SUBMISSION TO CONGRESS.—Not later than

4 6 months after the effective date of this section, the

5 Director of the Institute of Museum and Library

6 Services shall submit to the appropriate committees

7 of Congress the recommended legislation referred to

8 under paragraph (1).

9 SEC. 204. SERVICE OF INDIVIDUALS SERVING ON DATE OF

10 ENACTMENT.

11 Notwithstanding section 204 of the Museum and Li12 brary Services Act, the individual who was appointed to

13 the position of Director of the Institute of Museum Serv14 ices under section 205 of the Museum Services Act (as

15 such section was in effect on the day before the date of

16 enactment of this Act) and who is serving in such position

17 on the day before the date of enactment of this Act shall

18 serve as the first Director of the Institute of Museum and

19 Library Services under section 204 of the Museum and

20 Library Services Act (as added by section 201 of this

21 title), and shall serve at the pleasure of the President.

22 SEC. 205. CONSIDERATION.

23 Consistent with title 5, United States Code, in ap24 pointing employees of the Office of Library Services, the

25 Director of the Institute of Museum and Library Services
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1 shall give strong consideration to individuals with experi2 ence in administering State-based and national library and

3 information services programs.

4 SEC. 206. TRANSITION AND TRANSFER OF FUNDS.

5 (a) TRANSITION.—The Director of the Office of Man6 agement and Budget shall take appropriate measures to

7 ensure an orderly transition from the activities previously

8 administered by the Director of Library Programs in the

9 Office of Educational Research and Improvement in the

10 Department of Education to the activities administered by

11 the Institute for Museum and Library Services under this

12 title. Such measures may include the transfer of appro13 priated funds.

14 (b) TRANSFER.—The Secretary of Education shall

15 transfer to the Director the amount of funds necessary

16 to ensure the orderly transition from activities previously

17 administered by the Director of the Office of Library Pro18 grams in the Office of Educational Research and Improve19 ment in the Department of Education to the activities ad20 ministered by the Institute for Museum and Library Serv21 ices. In no event shall the amount of funds transferred

22 pursuant to the preceding sentence be less than $200,000.
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1 TITLE III—EXTENSION OF

2 PROGRAMS

3 SEC. 301. EXTENSION OF NATIONAL LITERACY ACT OF 1991.

4 (a) NATIONAL WORKFORCE LITERACY ASSISTANCE

5 COLLABORATIVE.—Subsection (c) of section 201 of the

6 National Literacy Act of 1991 (20 U.S.C. 1211–1(c)) is

7 amended by striking ‘‘$5,000,000’’ and all that follows

8 through the period and inserting ‘‘such sums as may be

9 necessary for fiscal year 1997.’’.

10 (b) FUNCTIONAL LITERACY AND LIFE SKILLS PRO11 GRAM FOR STATE AND LOCAL PRISONERS.—Paragraph

12 (3) of section 601(i) of the National Literacy Act of 1991

13 (20 U.S.C. 1211–2(i)) is amended by striking

14 ‘‘$10,000,000’’ and all that follows through the period and

15 inserting ‘‘such sums as may be necessary for fiscal year

16 1997.’’.

17 SEC. 302. ADULT EDUCATION ACT AMENDMENTS.

18 The Adult Education Act (20 U.S.C. 1201 et seq.)

19 is amended—

20 (1) in section 312—

21 (A) in each of subparagraphs (A) and (B)

22 of paragraph (11), by moving the margins two

23 ems to the right;
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1 (B) in each of paragraphs (11) through

2 (15), by moving the margins two ems to the

3 right; and

4 (C) by adding at the end the following:

5 ‘‘(16) The term ‘family literacy services’ means

6 services that are of sufficient intensity in terms of

7 hours, and of sufficient duration, to make sustain8 able changes in a family and that integrate all of the

9 following activities:

10 ‘‘(A) Interactive literacy activities between

11 parents and their children.

12 ‘‘(B) Training for parents on how to be the

13 primary teacher for their children and full part14 ners in the education of their children.

15 ‘‘(C) Parent literacy training.

16 ‘‘(D) An age-appropriate education pro17 gram for children.’’;

18 (2) in section 313(a), by striking ‘‘the fiscal

19 year 1991,’’ and all that follows through ‘‘1995’’

20 and inserting ‘‘fiscal year 1997’’;

21 (3) in section 321, by inserting ‘‘and family lit22 eracy services’’ after ‘‘and activities’’;

23 (4) in the first sentence of section 322(a)(1), by

24 inserting ‘‘and family literacy services’’ after ‘‘adult

25 education programs’’;
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1 (5) in section 341(a), by inserting ‘‘and for

2 family literacy services’’ after ‘‘adult education’’;

3 (6) in section 356(k), by striking

4 ‘‘$25,000,000’’ and all that follows through the pe5 riod and inserting ‘‘such sums as may be necessary

6 for fiscal year 1997.’’;

7 (7) in section 371(e)(1), by striking ‘‘the fiscal

8 year 1991,’’ and all that follows through the period

9 and inserting ‘‘fiscal year 1997.’’;

10 (8) in section 384, by striking subsections (c)

11 through (n); and

12 (9) by adding at the end the following:

13 ‘‘SEC. 386. NATIONAL INSTITUTE FOR LITERACY.

14 ‘‘(a) ESTABLISHMENT.—

15 ‘‘(1) IN GENERAL.—There is established the

16 National Institute for Literacy (in this section re17 ferred to as the ‘Institute’). The Institute shall be

18 administered under the terms of an interagency

19 agreement entered into by the Secretary of Edu20 cation with the Secretary of Labor and the Secretary

21 of Health and Human Services (in this section re22 ferred to as the ‘Interagency Group’). The Inter23 agency Group may include in the Institute any re24 search and development center, institute, or clear25 inghouse established within the Department of Edu-
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1 cation, the Department of Labor, or the Department

2 of Health and Human Services whose purpose is de3 termined by the Interagency Group to be related to

4 the purpose of the Institute.

5 ‘‘(2) OFFICES.—The Institute shall have offices

6 separate from the offices of the Department of Edu7 cation, the Department of Labor, and the Depart8 ment of Health and Human Services.

9 ‘‘(3) BOARD RECOMMENDATIONS.—The Inter10 agency Group shall consider the recommendations of

11 the National Institute for Literacy Advisory Board

12 (in this section referred to as the ‘Board’) estab13 lished under subsection (d) in planning the goals of

14 the Institute and in the implementation of any pro15 grams to achieve such goals.

16 ‘‘(4) DAILY OPERATIONS.—The daily operations

17 of the Institute shall be carried out by the Director

18 of the Institute appointed under subsection (g).

19 ‘‘(b) DUTIES.—

20 ‘‘(1) IN GENERAL.—The Institute shall improve

21 the quality and accountability of the adult basic

22 skills and literacy delivery system by—

23 ‘‘(A) providing national leadership for the

24 improvement and expansion of the system for

25 delivery of literacy services;
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1 ‘‘(B) coordinating the delivery of such

2 services across Federal agencies;

3 ‘‘(C) identifying effective models of basic

4 skills and literacy education for adults and fam5 ilies that are essential to success in job train6 ing, work, the family, and the community;

7 ‘‘(D) supporting the creation of new meth8 ods of offering improved literacy services;

9 ‘‘(E) funding a network of State or re10 gional adult literacy resource centers to assist

11 State and local public and private nonprofit ef12 forts to improve literacy by—

13 ‘‘(i) encouraging the coordination of

14 literacy services;

15 ‘‘(ii) carrying out evaluations of the

16 effectiveness of adult education and lit17 eracy activities;

18 ‘‘(iii) enhancing the capacity of State

19 and local organizations to provide literacy

20 services; and

21 ‘‘(iv) serving as a reciprocal link be22 tween the Institute and providers of adult

23 education and literacy activities for the

24 purpose of sharing information, data, re25 search, expertise, and literacy resources;
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1 ‘‘(F) supporting the development of models

2 at the State and local level of accountability

3 systems that consist of goals, performance

4 measures, benchmarks, and assessments that

5 can be used to improve the quality of adult edu6 cation and literacy activities;

7 ‘‘(G) providing information, and other pro8 gram improvement activities to national, State,

9 and local organizations, such as—

10 ‘‘(i) improving the capacity of na11 tional, State, and local public and private

12 organizations that provide literacy and

13 basic skills services, professional develop14 ment, and technical assistance, such as the

15 State or regional adult literacy resource

16 centers referred to in subparagraph (E);

17 and

18 ‘‘(ii) establishing a national literacy

19 electronic database and communications

20 network;

21 ‘‘(H) working with the Interagency Group,

22 Federal agencies, and the Congress to ensure

23 that such Group, agencies, and the Congress

24 have the best information available on literacy

25 and basic skills programs in formulating Fed-
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1 eral policy with respect to the issues of literacy,

2 basic skills, and workforce and career develop3 ment; and

4 ‘‘(I) assisting with the development of pol5 icy with respect to literacy and basic skills.

6 ‘‘(2) GRANTS, CONTRACTS, AND AGREE7 MENTS.—The Institute may make grants to, or

8 enter into contracts or cooperative agreements with,

9 individuals, public or private institutions, agencies,

10 organizations, or consortia of such institutions,

11 agencies, or organizations to carry out the activities

12 of the Institute. Such grants, contracts, or agree13 ments shall be subject to the laws and regulations

14 that generally apply to grants, contracts, or agree15 ments entered into by Federal agencies.

16 ‘‘(c) LITERACY LEADERSHIP.—

17 ‘‘(1) FELLOWSHIPS.—The Institute, in con18 sultation with the Board, may award fellowships,

19 with such stipends and allowances as the Director

20 considers necessary, to outstanding individuals pur21 suing careers in adult education or literacy in the

22 areas of instruction, management, research, or inno23 vation.

24 ‘‘(2) USE OF FELLOWSHIPS.—Fellowships

25 awarded under this subsection shall be used, under
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1 the auspices of the Institute, to engage in research,

2 education, training, technical assistance, or other ac3 tivities to advance the field of adult education or lit4 eracy, including the training of volunteer literacy

5 providers at the national, State, or local level.

6 ‘‘(3) INTERNS AND VOLUNTEERS.—The Insti7 tute, in consultation with the Board, may award

8 paid and unpaid internships to individuals seeking to

9 assist the Institute in carrying out its mission. Not10 withstanding section 1342 of title 31, United States

11 Code, the Institute may accept and use voluntary

12 and uncompensated services as the Institute deter13 mines necessary.

14 ‘‘(d) NATIONAL INSTITUTE FOR LITERACY ADVISORY

15 BOARD.—

16 ‘‘(1) ESTABLISHMENT.—

17 ‘‘(A) IN GENERAL.—There is established a

18 National Institute for Literacy Advisory Board.

19 The Board shall consist of 10 individuals ap20 pointed by the President, with the advice and

21 consent of the Senate, from individuals who—

22 ‘‘(i) are not otherwise officers or em23 ployees of the Federal Government; and

24 ‘‘(ii) are representative of entities or

25 groups described in subparagraph (B).
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1 ‘‘(B) ENTITIES OR GROUPS DESCRIBED.—

2 The entities or groups referred to in subpara3 graph (A) are—

4 ‘‘(i) literacy organizations and provid5 ers of literacy services, including—

6 ‘‘(I) nonprofit providers of lit7 eracy services;

8 ‘‘(II) providers of programs and

9 services involving English language in10 struction; and

11 ‘‘(III) providers of services re12 ceiving assistance under this title;

13 ‘‘(ii) businesses that have dem14 onstrated interest in literacy programs;

15 ‘‘(iii) literacy students;

16 ‘‘(iv) experts in the area of literacy re17 search;

18 ‘‘(v) State and local governments; and

19 ‘‘(vi) representatives of employees.

20 ‘‘(2) DUTIES.—The Board—

21 ‘‘(A) shall make recommendations concern22 ing the appointment of the Director and staff

23 of the Institute;

24 ‘‘(B) shall provide independent advice on

25 the operation of the Institute; and
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1 ‘‘(C) shall receive reports from the Inter2 agency Group and the Director.

3 ‘‘(3) FEDERAL ADVISORY COMMITTEE ACT.—

4 Except as otherwise provided, the Board established

5 by this subsection shall be subject to the provisions

6 of the Federal Advisory Committee Act (5 U.S.C.

7 App.).

8 ‘‘(4) TERMS.—

9 ‘‘(A) IN GENERAL.—Each member of the

10 Board shall be appointed for a term of 3 years,

11 except that the initial terms for members may

12 be 1, 2, or 3 years in order to establish a rotation in which 1 13 ⁄3 of the members are selected

14 each year. Any such member may be appointed

15 for not more than 2 consecutive terms.

16 ‘‘(B) VACANCY APPOINTMENTS.—Any

17 member appointed to fill a vacancy occurring

18 before the expiration of the term for which the

19 member’s predecessor was appointed shall be

20 appointed only for the remainder of that term.

21 A member may serve after the expiration of

22 that member’s term until a successor has taken

23 office. A vacancy in the Board shall be filled in

24 the manner in which the original appointment
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1 was made. A vacancy in the Board shall not af2 fect the powers of the Board.

3 ‘‘(5) QUORUM.—A majority of the members of

4 the Board shall constitute a quorum but a lesser

5 number may hold hearings. Any recommendation of

6 the Board may be passed only by a majority of the

7 Board’s members present.

8 ‘‘(6) ELECTION OF OFFICERS.—The Chair9 person and Vice Chairperson of the Board shall be

10 elected by the members of the Board. The term of

11 office of the Chairperson and Vice Chairperson shall

12 be 2 years.

13 ‘‘(7) MEETINGS.—The Board shall meet at the

14 call of the Chairperson or a majority of the members

15 of the Board.

16 ‘‘(e) GIFTS, BEQUESTS, AND DEVISES.—The Insti17 tute may accept, administer, and use gifts or donations

18 of services, money, or property, both real and personal.

19 ‘‘(f) MAILS.—The Board and the Institute may use

20 the United States mails in the same manner and under

21 the same conditions as other departments and agencies of

22 the Federal Government.

23 ‘‘(g) DIRECTOR.—The Interagency Group, after con24 sidering recommendations made by the Board, shall ap25 point and fix the pay of a Director.
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1 ‘‘(h) APPLICABILITY OF CERTAIN CIVIL SERVICE

2 LAWS.—The Director and staff of the Institute may be

3 appointed without regard to the provisions of title 5, Unit4 ed States Code, governing appointments in the competitive

5 service, and may be paid without regard to the provisions

6 of chapter 51 and subchapter III of chapter 53 of that

7 title relating to classification and General Schedule pay

8 rates, except that an individual so appointed may not re9 ceive pay in excess of the maximum rate payable under

10 section 5376 of title 5, United States Code.

11 ‘‘(i) EXPERTS AND CONSULTANTS.—The Board and

12 the Institute may procure temporary and intermittent

13 services under section 3109(b) of title 5, United States

14 Code.

15 ‘‘(j) REPORT.—The Institute shall submit a report bi16 ennially to the Committee on Economic and Educational

17 Opportunities of the House of Representatives and the

18 Committee on Labor and Human Resources of the Senate.

19 Each report submitted under this subsection shall in20 clude—

21 ‘‘(1) a comprehensive and detailed description

22 of the Institute’s operations, activities, financial con23 dition, and accomplishments in the field of literacy

24 for the period covered by the report;
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1 ‘‘(2) a description of how plans for the oper2 ation of the Institute for the succeeding two fiscal

3 years will facilitate achievement of the goals of the

4 Institute and the goals of the literacy programs

5 within the Department of Education, the Depart6 ment of Labor, and the Department of Health and

7 Human Services; and

8 ‘‘(3) any additional minority, or dissenting

9 views submitted by members of the Board.

10 ‘‘(k) FUNDING.—Any amounts appropriated to the

11 Secretary of Education, the Secretary of Labor, or the

12 Secretary of Health and Human Services for purposes

13 that the Institute is authorized to perform under this sec14 tion may be provided to the Institute for such purposes.

15 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There

16 are authorized to be appropriated $10,000,000 for fiscal

17 year 1997 and such sums as may be necessary for each

18 of the fiscal years 1998 through 2002 to carry out this

19 section.’’.

20 SEC. 303. EXTENSION OF CARL D. PERKINS VOCATIONAL

21 AND APPLIED TECHNOLOGY EDUCATION

22 ACT.

23 Subsection (a) of section 3 of the Carl D. Perkins

24 Vocational and Applied Technology Act is amended by

25 striking ‘‘appropriated’’ and all that follows through
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1 ‘‘1995’’ and inserting ‘‘appropriated for fiscal year 1997

2 such sums as may be necessary’’.

3 TITLE IV—REPEALS AND

4 CONFORMING AMENDMENTS

5 SEC. 401. REPEALS.

6 (a) GENERAL IMMEDIATE REPEALS.—The following

7 provisions are repealed:

8 (1) Section 204 of the Immigration Reform and

9 Control Act of 1986 (8 U.S.C. 1255a note).

10 (2) Title II of Public Law 95–250 (92 Stat.

11 172).

12 (3) The Library Services and Construction Act

13 (20 U.S.C. 351 et seq.).

14 (4) Part F of the Technology for Education Act

15 of 1994 (contained in title III of the Elementary

16 and Secondary Education Act of 1965 (20 U.S.C.

17 7001 et seq.)).

18 (5) Section 211 of the Appalachian Regional

19 Development Act of 1965 (40 U.S.C. App. 211).

20 (6) Title VII of the Stewart B. McKinney

21 Homeless Assistance Act (42 U.S.C. 11421 et seq.),

22 except subtitle B and section 738 of such title (42

23 U.S.C. 11431 et seq. and 11448).

24 (b) IMMEDIATE REPEAL OF HIGHER EDUCATION

25 ACT OF 1965 PROVISIONS.—The following provisions of
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1 the Higher Education Act of 1965 (20 U.S.C. 1001 et

2 seq.) are repealed:

3 (1) Part B of title I (20 U.S.C. 1011 et seq.),

4 relating to articulation agreements.

5 (2) Part C of title I (20 U.S.C. 1015 et seq.),

6 relating to access and equity to education for all

7 Americans through telecommunications.

8 (3) Title II (20 U.S.C. 1021 et seq.), relating

9 to academic libraries and information services.

10 (4) Chapter 3 of subpart 2 of part A of title IV

11 (20 U.S.C. 1070a–31 et seq.), relating to presi12 dential access scholarships.

13 (5) Chapter 4 of subpart 2 of part A of title IV

14 (20 U.S.C. 1070a–41 et seq.), relating to model pro15 gram community partnerships and counseling

16 grants.

17 (6) Section 409B (20 U.S.C. 1070a–52), relat18 ing to an early awareness information program.

19 (7) Chapter 8 of subpart 2 of part A of title IV

20 (20 U.S.C. 1070a–81), relating to technical assist21 ance for teachers and counselors.

22 (8) Subpart 8 of part A of title IV (20 U.S.C.

23 1070f), relating to special child care services for dis24 advantaged college students.
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1 (9) Section 428J (20 U.S.C. 1078–10), relating

2 to loan forgiveness for teachers, individuals perform3 ing national community service and nurses.

4 (10) Section 486 (20 U.S.C. 1093), relating to

5 training in financial aid services.

6 (11) Subpart 1 of part H of title IV (20 U.S.C.

7 1099a et seq.) relating to State postsecondary re8 view programs.

9 (12) Part A of title V (20 U.S.C. 1102 et seq.),

10 relating to State and local programs for teacher ex11 cellence.

12 (13) Part B of title V (20 U.S.C. 1103 et seq.),

13 relating to national teacher academies.

14 (14) Subpart 1 of part C of title V (20 U.S.C.

15 1104 et seq.), relating to Paul Douglas teacher

16 scholarships.

17 (15) Subpart 3 of part C of title V (20 U.S.C.

18 1106 et seq.), relating to the teacher corps.

19 (16) Subpart 3 of part D of title V (20 U.S.C.

20 1109 et seq.), relating to class size demonstration

21 grants.

22 (17) Subpart 4 of part D of title V (20 U.S.C.

23 1110 et seq.), relating to middle school teaching

24 demonstration programs.
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1 (18) Subpart 1 of part E of title V (20 U.S.C.

2 1111 et seq.), relating to new teaching careers.

3 (19) Subpart 1 of part F of title V (20 U.S.C.

4 1113), relating to the national mini corps programs.

5 (20) Section 586 (20 U.S.C. 1114), relating to

6 demonstration grants for critical language and area

7 studies.

8 (21) Section 587 (20 U.S.C. 1114a), relating to

9 development of foreign languages and cultures in10 structional materials.

11 (22) Subpart 4 of part F of title V (20 U.S.C.

12 1116), relating to faculty development grants.

13 (23) Section 597 and subsection (b) of section

14 599 (20 U.S.C. 1117a and 1117c), relating to early

15 childhood staff training and professional enhance16 ment.

17 (24) Section 605 (20 U.S.C. 1124a), relating to

18 intensive summer language institutes.

19 (25) Section 607 (20 U.S.C. 1125a), relating to

20 periodicals and other research material published

21 outside the United States.

22 (26) Part A of title VII (20 U.S.C. 1132b et

23 seq.), relating to improvement of academic and li24 brary facilities.
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1 (27) Title VIII (20 U.S.C. 1133 et seq.), relat2 ing to cooperative education programs.

3 (28) Part D of title X (20 U.S.C. 1135f), relat4 ing to the Dwight D. Eisenhower leadership pro5 gram.

6 (c) IMMEDIATE REPEAL OF EDUCATION AMEND7 MENTS OF 1986 PROVISIONS.—The following provisions

8 of the Higher Education Amendments of 1986 are re9 pealed:

10 (1) Part D of title XIII (20 U.S.C. 1029 note),

11 relating to library resources.

12 (2) Part E of title XIII (20 U.S.C. 1221–1

13 note), relating to a National Academy of Science

14 study.

15 (3) Part B of title XV (20 U.S.C. 4441 et

16 seq.), relating to Native Hawaiian and Alaska Na17 tive culture and art development.

18 (d) IMMEDIATE REPEAL OF EDUCATION AMEND19 MENTS OF 1974 PROVISION.—Section 519 of the Edu20 cation Amendments of 1974 (20 U.S.C. 1221i) is re21 pealed.

22 (e) IMMEDIATE REPEAL OF EDUCATION AMEND23 MENTS OF 1992 PROVISIONS.—The following provisions

24 of the Higher Education Amendments of 1992 are re25 pealed:
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1 (1) Part F of title XIII (25 U.S.C. 3351 et

2 seq.), relating to American Indian postsecondary

3 economic development scholarships.

4 (2) Part G of title XIII (25 U.S.C. 3371), re5 lating to American Indian teacher training.

6 (3) Section 1406 (20 U.S.C. 1221e–1 note), re7 lating to a national survey of factors associated with

8 participation.

9 (4) Section 1409 (20 U.S.C. 1132a note), relat10 ing to a study of environmental hazards in institu11 tions of higher education.

12 (5) Section 1412 (20 U.S.C. 1101 note), relat13 ing to a national job bank for teacher recruitment.

14 (6) Part B of title XV (20 U.S.C. 1452 note),

15 relating to a national clearinghouse for postsecond16 ary education materials.

17 (7) Part C of title XV (20 U.S.C. 1101 note),

18 relating to a school-based decisionmakers demonstra19 tion program.

20 (8) Part D of title XV (20 U.S.C. 1145h note),

21 relating to grants for sexual offenses education.

22 (9) Part E of title XV (20 U.S.C. 1070 note),

23 relating to Olympic scholarships.
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1 (10) Part G of title XV (20 U.S.C. 1070a–11

2 note), relating to advanced placement fee payment

3 programs.

4 SEC. 402. CONFORMING AMENDMENTS.

5 (a) REFERENCES TO SECTION 204 OF THE IMMIGRA6 TION REFORM AND CONTROL ACT OF 1986.—The table

7 of contents for the Immigration Reform and Control Act

8 of 1986 is amended by striking the item relating to section

9 204 of such Act.

10 (b) REFERENCES TO TITLE II OF PUBLIC LAW 95–

11 250.—Section 103 of Public Law 95–250 (16 U.S.C. 79l)

12 is amended—

13 (1) by striking the second sentence of sub14 section (a); and

15 (2) by striking the second sentence of sub16 section (b).

17 (c) REFERENCES TO LIBRARY SERVICES AND CON18 STRUCTION ACT.—

19 (1) TECHNOLOGY FOR EDUCATION ACT OF

20 1994.—The Technology for Education Act of 1994

21 (20 U.S.C. 6801 et seq.) is amended in section

22 3113(10) by striking ‘‘section 3 of the Library Serv23 ices and Construction Act;’’ and inserting ‘‘section

24 213 of the Library Services and Technology Act;’’.
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1 (2) OMNIBUS EDUCATION RECONCILIATION ACT

2 OF 1981.—Section 528 of the Omnibus Education

3 Reconciliation Act of 1981 (20 U.S.C. 3489) is

4 amended—

5 (A) by striking paragraph (12); and

6 (B) by redesignating paragraphs (13)

7 through (15) as paragraphs (12) through (14),

8 respectively.

9 (3) ELEMENTARY AND SECONDARY EDUCATION

10 ACT OF 1965.—Section 3113(10) of the Elementary

11 and Secondary Education Act of 1965 (20 U.S.C.

12 6813(10)) is amended by striking ‘‘section 3 of the

13 Library Services and Construction Act’’ and insert14 ing ‘‘section 213 of the Library Services and Tech15 nology Act’’.

16 (4) COMMUNITY IMPROVEMENT VOLUNTEER

17 ACT OF 1994.—Section 7305 of the Community Im18 provement Volunteer Act of 1994 (40 U.S.C. 276d–

19 3) is amended—

20 (A) by striking paragraph (1); and

21 (B) by redesignating paragraphs (2)

22 through (6) as paragraphs (1) through (5), re23 spectively.

24 (5) APPALACHIAN REGIONAL DEVELOPMENT

25 ACT OF 1965.—Section 214(c) of the Appalachian
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1 Regional Development Act of 1965 (40 U.S.C. App.

2 214(c)) is amended by striking ‘‘Library Services

3 and Construction Act;’’.

4 (6) DEMONSTRATION CITIES AND METROPOLI5 TAN DEVELOPMENT ACT OF 1966.—Section 208(2) of

6 the Demonstration Cities and Metropolitan Develop7 ment Act of 1966 (42 U.S.C. 3338(2)) is amended

8 by striking ‘‘title II of the Library Services and Con9 struction Act;’’.

10 (7) PUBLIC LAW 87–688.—Subsection (c) of the

11 first section of the Act entitled ‘‘An Act to extend

12 the application of certain laws to American Samoa’’,

13 approved September 25, 1962 (48 U.S.C. 1666(c))

14 is amended by striking ‘‘the Library Services Act

15 (70 Stat. 293; 20 U.S.C. 351 et seq.),’’.

16 (8) COMMUNICATIONS ACT OF 1934.—Para17 graph (4) of section 254(h) of the Communications

18 Act of 1934 (47 U.S.C. 254(h)(4)) is amended by

19 striking ‘‘library not eligible for participation in

20 State-based plans for funds under title III of the Li21 brary Services and Construction Act (20 U.S.C.

22 335c et seq.)’’ and inserting ‘‘library or library con23 sortium not eligible for assistance from a State li24 brary administrative agency under the Library Serv25 ices and Technology Act’’.
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1 (d) REFERENCE TO SCHOOL DROPOUT ASSISTANCE

2 ACT.—Section 441 of the General Education Provisions

3 Act (42 U.S.C. 1232d), as amended by section 261(f) of

4 the Improving America’s Schools Act of 1994, is further

5 amended by striking ‘‘(subject to the provisions of part

6 C of title V of the Elementary and Secondary Education

7 Act of 1965)’’.

8 (e) REFERENCES TO TITLE VII OF THE STEWART

9 B. MCKINNEY HOMELESS ASSISTANCE ACT.—

10 (1) TABLE OF CONTENTS.—The table of con11 tents of the Stewart B. McKinney Homeless Assist12 ance Act (42 U.S.C. 1142 et seq.) is amended by

13 striking the items relating to title VII of such Act,

14 except subtitle B and section 738 of such title.

15 (2) TITLE 31, UNITED STATES CODE.—Section

16 6703(a) of title 31, United States Code, is amend17 ed—

18 (A) by striking paragraph (15); and

19 (B) by redesignating paragraphs (16)

20 through (19) as paragraphs (15) through (18),

21 respectively.

22 (f) REFERENCES TO INSTITUTE OF MUSEUM SERV23 ICES.—
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1 (1) TITLE 5, UNITED STATES CODE.—Section

2 5315 of title 5, United States Code, is amended by

3 striking the following:

4 ‘‘Director of the Institute of Museum Services.’’

5 and inserting the following:

6 ‘‘Director of the Institute of Museum and Li7 brary Services.’’.

8 (2) DEPARTMENT OF EDUCATION ORGANIZA9 TION ACT.—Section 301 of the Department of Edu10 cation Organization Act (20 U.S.C. 3441) is amend11 ed—

12 (A) in subsection (a)—

13 (i) by striking paragraph (5); and

14 (ii) by redesignating paragraphs (6)

15 and (7) as paragraphs (5) and (6), respec16 tively; and

17 (B) in subsection (b)—

18 (i) by striking paragraph (4); and

19 (ii) by redesignating paragraphs (5)

20 through (7) as paragraphs (4) through (6),

21 respectively.

22 (3) ELEMENTARY AND SECONDARY EDUCATION

23 ACT OF 1965.—

24 (A) Sections 2101(b), 2205(c)(1)(D),

25 2208(d)(1)(H)(v), and 2209(b)(1)(C)(vi), and
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1 subsections (d)(6) and (e)(2) of section 10401

2 of the Elementary and Secondary Education

3 Act of 1965 (20 U.S.C. 6621(b),

4 6645(c)(1)(D), 6648(d)(1)(H)(v),

5 6649(b)(1)(C)(vi), and 8091 (d)(6) and (e)(2))

6 are amended by striking ‘‘the Institute of Mu7 seum Services’’ and inserting ‘‘the Institute of

8 Museum and Library Services’’.

9 (B) Section 10412(b) of such Act (20

10 U.S.C. 8102(b)) is amended—

11 (i) in paragraph (2), by striking ‘‘the

12 Director of the Institute of Museum Serv13 ices,’’ and inserting ‘‘the Director of the

14 Institute of Museum and Library Serv15 ices,’’; and

16 (ii) in paragraph (7), by striking ‘‘the

17 Director of the Institute of Museum Serv18 ices,’’ and inserting ‘‘the Director of the

19 Institute of Museum and Library Serv20 ices,’’.

21 (C) Section 10414(a)(2)(B) of such Act

22 (20 U.S.C. 8104(a)(2)(B)) is amended by strik23 ing clause (iii) and inserting the following new

24 clause:
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1 ‘‘(iii) the Institute of Museum and Li2 brary Services.’’.

3 (g) REFERENCES TO OFFICE OF LIBRARIES AND

4 LEARNING RESOURCES.—Section 413(b)(1) of the De5 partment of Education Organization Act (20 U.S.C.

6 3473(b)(1)) is amended—

7 (1) by striking subparagraph (H); and

8 (2) by redesignating subparagraphs (I) through

9 (M) as subparagraphs (H) through (L), respectively.

10 (h) REFERENCES TO STATE POSTSECONDARY RE11 VIEW ENTITY PROGRAMS.—The Higher Education Act of

12 1965 is amended—

13 (1) in section 356(b)(2) (20 U.S.C. 10696(b)),

14 by striking ‘‘II,’’;

15 (2) in section 453(c)(2) (20 U.S.C.

16 1087c(c)(2))—

17 (A) by striking subparagraph (E); and

18 (B) by redesignating subparagraphs (F)

19 through (H) as subparagraphs (E) through (G),

20 respectively;

21 (3) in section 487(a)(3) (20 U.S.C.

22 1094(a)(3)), by striking subparagraph (B) and re23 designating subparagraphs (C) and (D) as subpara24 graphs (B) and (C), respectively;
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1 (4) in section 487(a)(15) (20 U.S.C.

2 1094(a)(15)), by striking ‘‘the Secretary of Veterans

3 Affairs, and State review entities under subpart 1 of

4 part H’’ and inserting ‘‘and the Secretary of Veter5 ans Affairs’’;

6 (5) in section 487(a)(21) (20 U.S.C.

7 1094(a)(21)), by striking ‘‘, State postsecondary re8 view entities,’’;

9 (6) in section 487(c)(1)(A)(i) (20 U.S.C.

10 1094(c)(1)(A)(i)), by striking ‘‘State agencies, and

11 the State review entities referred to in subpart 1 of

12 part H’’ and inserting ‘‘and State agencies’’;

13 (7) in section 487(c)(4) (20 U.S.C. 1094(c)(4)),

14 by striking ‘‘, after consultation with each State re15 view entity designated under subpart 1 of part H,’’;

16 (8) in section 487(c)(5) (20 U.S.C. 1094(c)(5)),

17 by striking ‘‘State review entities designated under

18 subpart 1 of part H,’’;

19 (9) in section 496(a)(7) (20 U.S.C.

20 1099b(a)(7)), by striking ‘‘and the appropriate State

21 postsecondary review entity’’;

22 (10) in section 496(a)(8) (20 U.S.C.

23 1099b(a)(8)), by striking ‘‘and the State postsecond24 ary review entity of the State in which the institu25 tion of higher education is located’’;
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1 (11) in section 498(g)(2) (20 U.S.C.

2 1099c(g)(2)), by striking everything after the first

3 sentence;

4 (12) in section 498A(a)(2)(D) (20 U.S.C.

5 1099c–1(a)(2)(D)), by striking ‘‘by the appropriate

6 State postsecondary review entity designated under

7 subpart 1 of this part or’’;

8 (13) in section 498A(a)(2) (20 U.S.C. 1099c–

9 1(a)(2))—

10 (A) by inserting ‘‘and’’ after the semicolon

11 at the end of subparagraph (E);

12 (B) by striking subparagraph (F); and

13 (C) by redesignating subparagraph (G) as

14 subparagraph (F); and

15 (14) in section 498A(a)(3) (20 U.S.C. 1099c–

16 1(a)(3))—

17 (A) by inserting ‘‘and’’ after the semicolon

18 at the end of subparagraph (C);

19 (B) by striking ‘‘; and’’ at the end of sub20 paragraph (D) and inserting a period; and

21 (C) by striking subparagraph (E).

Passed the House of Representatives September 24,

1996.

Attest: ROBIN H. CARLE,

Clerk.