104TH CONGRESS

2D SESSION S. 1972

AMENDMENT
In the House of Representatives, U. S.,

September 27, 1996.

Resolved, That the bill from the Senate (S. 1972) entitled ‘‘An Act to amend the Older Americans Act of 1965 to

improve the provisions relating to Indians, and for other purposes’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause, and insert:

1 SECTION 1. TABLE OF CONTENTS.

Sec. 1. Table of contents.

TITLE I—OLDER AMERICANS ACT OF 1965

Sec. 101. Indian employment; definition of Indian reservation.
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Sec. 102. Population statistics development.

Sec. 103. Reporting requirements.

Sec. 104. Expenditure of funds for nutrition services.

Sec. 105. Coordination of services.

TITLE II—EXTENSION OF PROGRAMS; MUSEUMS AND LIBRARIES

Subtitle A—Extension of Programs

Sec. 201. Extension of National Literacy Act of 1991.

Sec. 202. Adult Education Act amendments.

Sec. 203. Extension of Carl D. Perkins Vocational and Applied Technology Education Act.

Subtitle B—Museums and Libraries

Sec. 211. Museum and library services.

Sec. 212. National Commission on Libraries and Information Science.

Sec. 213. Transfer of functions from Institute of Museum Services.

Sec. 214. Service of individuals serving on date of enactment.

Sec. 215. Consideration.

Sec. 216. Transition and transfer of funds.

TITLE III—HIGHER EDUCATION

Subtitle A—Debt Reduction

Sec. 301. Unsubsidized student loans.

Sec. 302. Study of loan fees.

Subtitle B—Financial Responsibility Standards

Sec. 311. Extension of public comment period.

1 TITLE I—OLDER AMERICANS ACT

2 OF 1965

3 SEC. 101. INDIAN EMPLOYMENT; DEFINITION OF INDIAN

4 RESERVATION.

5 Section 502(b)(1)(B) of the Older Americans Act of

6 1965 (42 U.S.C. 3056(b)(1)(B)) is amended to read as fol7 lows:

8 ‘‘(B)(i) will provide employment for eligible in9 dividuals in the community in which such individ10 uals reside, or in nearby communities; or
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1 ‘‘(ii) if such project is carried out by a tribal or2 ganization that enters into an agreement under this

3 subsection or receives assistance from a State that en4 ters into such an agreement, will provide employment

5 for such individuals who are Indians residing on or

6 near an Indian reservation, as the term is defined in

7 section 2601(2) of the Energy Policy Act of 1992 (25

8 U.S.C. 3501(2));’’.

9 SEC. 102. POPULATION STATISTICS DEVELOPMENT.

10 Section 614(b) of the Older Americans Act of 1965 (42

11 U.S.C. 3057e(b)) is amended by striking ‘‘certification’’ and

12 inserting ‘‘approval’’.

13 SEC. 103. REPORTING REQUIREMENTS.

14 Section 614(c) of the Older Americans Act of 1965 (42

15 U.S.C. 3057e(c)) is amended—

16 (1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and

17 (2) by adding at the end the following new para18 graph:

19 ‘‘(2) The Assistant Secretary shall provide waivers and

20 exemptions of the reporting requirements of subsection

21 (a)(3) for applicants that serve Indian populations in geo22 graphically isolated areas, or applicants that serve small

23 Indian populations, where the small scale of the project, the

24 nature of the applicant, or other factors make the reporting

25 requirements unreasonable under the circumstances. The
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1 Assistant Secretary shall consult with such applicants in

2 establishing appropriate waivers and exemptions.’’.

3 SEC. 104. EXPENDITURE OF FUNDS FOR NUTRITION SERV4 ICES.

5 Section 614(c) of the Older Americans Act of 1965 (42

6 U.S.C. 3057e(c)), as amended by section 103, is further

7 amended by adding at the end the following new paragraph:

8 ‘‘(3) In determining whether an application complies

9 with the requirements of subsection (a)(8), the Assistant

10 Secretary shall provide maximum flexibility to an appli11 cant who seeks to take into account subsistence needs, local

12 customs, and other characteristics that are appropriate to

13 the unique cultural, regional, and geographical needs of the

14 Indian populations to be served.’’.

15 SEC. 105. COORDINATION OF SERVICES.

16 Section 614(c) of the Older Americans Act of 1965 (42

17 U.S.C. 3057e(c)), as amended by section 104, is further

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

19 ‘‘(4) In determining whether an application complies

20 with the requirements of subsection (a)(12), the Assistant

21 Secretary shall require only that an applicant provide an

22 appropriate narrative description of the geographical area

23 to be served and an assurance that procedures will be adopt24 ed to ensure against duplicate services being provided to

25 the same recipients.’’.
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1 TITLE II—EXTENSION OF PRO2 GRAMS; MUSEUMS AND LI3 BRARIES

4 Subtitle A—Extension of Programs

5 SEC. 201. EXTENSION OF NATIONAL LITERACY ACT OF 1991.

6 (a) NATIONAL WORKFORCE LITERACY ASSISTANCE

7 COLLABORATIVE.—Subsection (c) of section 201 of the Na8 tional Literacy Act of 1991 (20 U.S.C. 1211–1(c)) is

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

10 through the period and inserting ‘‘such sums as may be nec11 essary for fiscal year 1997.’’.

12 (b) FUNCTIONAL LITERACY AND LIFE SKILLS PRO13 GRAM FOR STATE AND LOCAL PRISONERS.—Paragraph (3)

14 of section 601(i) of the National Literacy Act of 1991 (20

15 U.S.C. 1211–2(i)) is amended by striking ‘‘$10,000,000’’

16 and all that follows through the period and inserting ‘‘such

17 sums as may be necessary for fiscal year 1997.’’.

18 SEC. 202. ADULT EDUCATION ACT AMENDMENTS.

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

20 amended—

21 (1) in section 312—

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

23 of paragraph (11), by moving the left margin

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

2 (15), by moving the left margin 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 sustainable

8 changes in a family and that integrate all of the fol9 lowing 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 year

19 1991,’’ and all that follows through ‘‘1995’’ and in20 serting ‘‘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 fam2 ily literacy services’’ after ‘‘adult education’’;

3 (6) in section 356(k), by striking ‘‘$25,000,000’’

4 and all that follows through the period and inserting

5 ‘‘such sums as may be necessary for fiscal year

6 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 Na16 tional Institute for Literacy (in this section referred

17 to as the ‘Institute’). The Institute shall be adminis18 tered under the terms of an interagency agreement en19 tered into by the Secretary of Education with the Sec20 retary of Labor and the Secretary of Health and

21 Human Services (in this section referred to as the

22 ‘Interagency Group’). The Interagency Group may

23 include in the Institute any research and development

24 center, institute, or clearinghouse established within

25 the Department of Education, the Department of
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1 Labor, or the Department of Health and Human

2 Services whose purpose is determined by the Inter3 agency Group to be related to the purpose of the Insti4 tute.

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 Department

8 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’) established

13 under subsection (d) in planning the goals of the In14 stitute and in the implementation of any programs to

15 achieve such goals.

16 ‘‘(4) DAILY OPERATIONS.—The daily operations

17 of the Institute shall be carried out by the Director of

18 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 skills

22 and literacy delivery system by—

23 ‘‘(A) providing national leadership for the

24 improvement and expansion of the system for de25 livery of literacy services;
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1 ‘‘(B) coordinating the delivery of such serv2 ices 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 training,

6 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 regional

10 adult literacy resource centers to assist State and

11 local public and private nonprofit efforts to im12 prove literacy by—

13 ‘‘(i) encouraging the coordination of

14 literacy services;

15 ‘‘(ii) carrying out evaluations of the ef16 fectiveness of adult education and literacy

17 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 sys3 tems that consist of goals, performance measures,

4 benchmarks, and assessments that can be used to

5 improve the quality of adult education and lit6 eracy 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 that

23 such Group, agencies, and the Congress have the

24 best information available on literacy and basic

25 skills programs in formulating Federal policy
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1 with respect to the issues of literacy, basic skills,

2 and workforce and career development; and

3 ‘‘(I) assisting with the development of pol4 icy with respect to literacy and basic skills.

5 ‘‘(2) GRANTS, CONTRACTS, AND AGREEMENTS.—

6 The Institute may make grants to, or enter into con7 tracts or cooperative agreements with, individuals,

8 public or private institutions, agencies, organizations,

9 or consortia of such institutions, agencies, or organi10 zations to carry out the activities of the Institute.

11 Such grants, contracts, or agreements shall be subject

12 to the laws and regulations that generally apply to

13 grants, contracts, or agreements entered into by Fed14 eral agencies.

15 ‘‘(c) LITERACY LEADERSHIP.—

16 ‘‘(1) FELLOWSHIPS.—The Institute, in consulta17 tion with the Board, may award fellowships, with

18 such stipends and allowances as the Director consid19 ers necessary, to outstanding individuals pursuing ca20 reers in adult education or literacy in the areas of in21 struction, management, research, or innovation.

22 ‘‘(2) USE OF FELLOWSHIPS.—Fellowships

23 awarded under this subsection shall be used, under

24 the auspices of the Institute, to engage in research,

25 education, training, technical assistance, or other ac-
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1 tivities to advance the field of adult education or lit2 eracy, including the training of volunteer literacy

3 providers at the national, State, or local level.

4 ‘‘(3) INTERNS AND VOLUNTEERS.—The Institute,

5 in consultation with the Board, may award paid and

6 unpaid internships to individuals seeking to assist the

7 Institute in carrying out its mission. Notwithstand8 ing section 1342 of title 31, United States Code, the

9 Institute may accept and use voluntary and uncom10 pensated services as the Institute determines nec11 essary.

12 ‘‘(d) NATIONAL INSTITUTE FOR LITERACY ADVISORY

13 BOARD.—

14 ‘‘(1) ESTABLISHMENT.—

15 ‘‘(A) IN GENERAL.—There is established a

16 National Institute for Literacy Advisory Board.

17 The Board shall consist of 10 individuals ap18 pointed by the President, with the advice and

19 consent of the Senate, from individuals who—

20 ‘‘(i) are not otherwise officers or em21 ployees of the Federal Government; and

22 ‘‘(ii) are representative of entities or

23 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 receiv12 ing assistance under this title;

13 ‘‘(ii) businesses that have demonstrated

14 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 of

23 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.—Ex4 cept as otherwise provided, the Board established by

5 this subsection shall be subject to the provisions of the

6 Federal Advisory Committee Act (5 U.S.C. App.).

7 ‘‘(4) TERMS.—

8 ‘‘(A) IN GENERAL.—Each member of the

9 Board shall be appointed for a term of 3 years,

10 except that the initial terms for members may be

11 1, 2, or 3 years in order to establish a rotation

in which 1 12 ⁄3 of the members are selected each

13 year. Any such member may be appointed for

14 not more than 2 consecutive terms.

15 ‘‘(B) VACANCY APPOINTMENTS.—Any mem16 ber appointed to fill a vacancy occurring before

17 the expiration of the term for which the member’s

18 predecessor was appointed shall be appointed

19 only for the remainder of that term. A member

20 may serve after the expiration of that member’s

21 term until a successor has taken office. A va22 cancy in the Board shall be filled in the manner

23 in which the original appointment was made. A

24 vacancy in the Board shall not affect the powers

25 of the Board.
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1 ‘‘(5) QUORUM.—A majority of the members of

2 the Board shall constitute a quorum but a lesser num3 ber may hold hearings. Any recommendation of the

4 Board may be passed only by a majority of the

5 Board’s members present.

6 ‘‘(6) ELECTION OF OFFICERS.—The Chairperson

7 and Vice Chairperson of the Board shall be elected by

8 the members of the Board. The term of office of the

9 Chairperson and Vice Chairperson shall be 2 years.

10 ‘‘(7) MEETINGS.—The Board shall meet at the

11 call of the Chairperson or a majority of the members

12 of the Board.

13 ‘‘(e) GIFTS, BEQUESTS, AND DEVISES.—The Institute

14 may accept, administer, and use gifts or donations of serv15 ices, money, or property, both real and personal.

16 ‘‘(f) MAILS.—The Board and the Institute may use the

17 United States mails in the same manner and under the

18 same conditions as other departments and agencies of the

19 Federal Government.

20 ‘‘(g) DIRECTOR.—The Interagency Group, after con21 sidering recommendations made by the Board, shall ap22 point and fix the pay of a Director.

23 ‘‘(h) APPLICABILITY OF CERTAIN CIVIL SERVICE

24 LAWS.—The Director and staff of the Institute may be ap25 pointed without regard to the provisions of title 5, United
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1 States Code, governing appointments in the competitive

2 service, and may be paid without regard to the provisions

3 of chapter 51 and subchapter III of chapter 53 of that title

4 relating to classification and General Schedule pay rates,

5 except that an individual so appointed may not receive pay

6 in excess of the maximum rate payable under section 5376

7 of title 5, United States Code.

8 ‘‘(i) EXPERTS AND CONSULTANTS.—The Board and

9 the Institute may procure temporary and intermittent serv10 ices under section 3109(b) of title 5, United States Code.

11 ‘‘(j) REPORT.—The Institute shall submit a report bi12 ennially to the Committee on Economic and Educational

13 Opportunities of the House of Representatives and the Com14 mittee on Labor and Human Resources of the Senate. Each

15 report submitted under this subsection shall include—

16 ‘‘(1) a comprehensive and detailed description of

17 the Institute’s operations, activities, financial condi18 tion, and accomplishments in the field of literacy for

19 the period covered by the report;

20 ‘‘(2) a description of how plans for the operation

21 of the Institute for the succeeding two fiscal years will

22 facilitate achievement of the goals of the Institute and

23 the goals of the literacy programs within the Depart24 ment of Education, the Department of Labor, and the

25 Department of Health and Human Services; and
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1 ‘‘(3) any additional minority, or dissenting

2 views submitted by members of the Board.

3 ‘‘(k) FUNDING.—Any amounts appropriated to the

4 Secretary of Education, the Secretary of Labor, or the Sec5 retary of Health and Human Services for purposes that the

6 Institute is authorized to perform under this section may

7 be provided to the Institute for such purposes.

8 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There are

9 authorized to be appropriated $10,000,000 for fiscal year

10 1997 and such sums as may be necessary for each of the

11 fiscal years 1998 through 2002 to carry out this section.’’.

12 SEC. 203. EXTENSION OF CARL D. PERKINS VOCATIONAL

13 AND APPLIED TECHNOLOGY EDUCATION ACT.

14 Subsection (a) of section 3 of the Carl D. Perkins Voca15 tional and Applied Technology Act is amended by striking

16 ‘‘appropriated’’ and all that follows through ‘‘1995’’ and

17 inserting ‘‘appropriated for fiscal year 1997 such sums as

18 may be necessary’’.

19 Subtitle B—Museums and Libraries

20 SEC. 211. MUSEUM AND LIBRARY SERVICES.

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

22 amended to read as follows:
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1 ‘‘TITLE II—MUSEUM AND

2 LIBRARY SERVICES

3 ‘‘Subtitle A—General Provisions

4 ‘‘SEC. 201. SHORT TITLE.

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

6 Services Act’.

7 ‘‘SEC. 202. GENERAL DEFINITIONS.

8 ‘‘As used in this title:

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

10 means the National Commission on Libraries and In11 formation Science established under section 3 of the

12 National Commission on Libraries and Information

13 Sciences Act (20 U.S.C. 1502).

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

15 Director of the Institute appointed under section 204.

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

17 Institute of Museum and Library Services established

18 under section 203.

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

20 Board’ means the National Museum Services Board

21 established under section 275.

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

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

24 the National Foundation on the Arts and the Humanities,

25 an Institute of Museum and Library Services.
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1 ‘‘(b) OFFICES.—The Institute shall consist of an Office

2 of Museum Services and an Office of Library Services.

3 There shall be a National Museum Services Board in the

4 Office of Museum Services.

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

6 ‘‘(a) APPOINTMENT.—

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

8 by a Director, appointed by the President, by and

9 with the advice and consent of the Senate.

10 ‘‘(2) TERM.—The Director shall serve for a term

11 of 4 years.

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

13 individual appointed to the position of Director after

14 the date of the enactment of the Act entitled ‘An Act

15 to amend the Older Americans Act of 1965, and for

16 other purposes’, every second individual so appointed

17 shall be appointed from among individuals who have

18 special competence with regard to library and infor19 mation services. Beginning with the second individual

20 appointed to the position of Director after the date of

21 enactment of the Act entitled ‘An Act to amend the

22 Older Americans Act of 1965, and for other purposes’,

23 every second individual so appointed shall be ap24 pointed from among individuals who have special

25 competence with regard to museum services.
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1 ‘‘(b) COMPENSATION.—The Director may be com2 pensated at the rate provided for level III of the Executive

3 Schedule under section 5314 of title 5, United States Code.

4 ‘‘(c) DUTIES AND POWERS.—The Director shall per5 form such duties and exercise such powers as may be pre6 scribed by law, including awarding financial assistance for

7 activities described in this title.

8 ‘‘(d) NONDELEGATION.—The Director shall not dele9 gate any of the functions of the Director to any person who

10 is not an officer or employee of the Institute.

11 ‘‘(e) COORDINATION.—The Director shall ensure co12 ordination of the policies and activities of the Institute with

13 the policies and activities of other agencies and offices of

14 the Federal Government having interest in and responsibil15 ities for the improvement of museums and libraries and in16 formation services.

17 ‘‘SEC. 205. DEPUTY DIRECTORS.

18 ‘‘The Office of Library Services shall be headed by a

19 Deputy Director, who shall be appointed by the Director

20 from among individuals who have a graduate degree in li21 brary science and expertise in library and information

22 services. The Office of Museum Services shall be headed by

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

24 from among individuals who have expertise in museum

25 services.
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1 ‘‘SEC. 206. PERSONNEL.

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

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

4 appoint and determine the compensation of such employees

5 as the Director determines to be necessary to carry out the

6 duties of the Institute.

7 ‘‘(b) VOLUNTARY SERVICES.—The Director may accept

8 and utilize the voluntary services of individuals and reim9 burse the individuals for travel expenses, including per

10 diem in lieu of subsistence, in the same amounts and to

11 the same extent as authorized under section 5703 of title

12 5, United States Code, for persons employed intermittently

13 in Federal Government service.

14 ‘‘SEC. 207. CONTRIBUTIONS.

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

16 and invest in the name of the United States, gifts, bequests,

17 or devises of money and other property or services and to

18 use such property or services in furtherance of the functions

19 of the Institute. Any proceeds from such gifts, bequests, or

20 devises, after acceptance by the Institute, shall be paid by

21 the donor or the representative of the donor to the Director.

22 The Director shall enter the proceeds in a special interest23 bearing account to the credit of the Institute for the pur24 poses specified in each case.
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1 ‘‘Subtitle B—Library Services and

2 Technology

3 ‘‘SEC. 211. SHORT TITLE.

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

5 and Technology Act’.

6 ‘‘SEC. 212. PURPOSE.

7 ‘‘It is the purpose of this subtitle—

8 ‘‘(1) to consolidate Federal library service pro9 grams;

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

11 to learning and information resources in all types of

12 libraries for individuals of all ages;

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

14 users access to information through State, regional,

15 national and international electronic networks;

16 ‘‘(4) to provide linkages among and between li17 braries; and

18 ‘‘(5) to promote targeted library services to peo19 ple of diverse geographic, cultural, and socioeconomic

20 backgrounds, to individuals with disabilities, and to

21 people with limited functional literacy or information

22 skills.

23 ‘‘SEC. 213. DEFINITIONS.

24 ‘‘As used in this subtitle:
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1 ‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’

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

3 group or community, including any Alaska native

4 village, regional corporation, or village corporation,

5 as defined in or established pursuant to the Alaska

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

7 seq.), which is recognized by the Secretary of the Inte8 rior as eligible for the special programs and services

9 provided by the United States to Indians because of

10 their status as Indians.

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

12 ‘‘(A) a public library;

13 ‘‘(B) a public elementary school or second14 ary school library;

15 ‘‘(C) an academic library;

16 ‘‘(D) a research library, which for the pur17 poses of this subtitle means a library that—

18 ‘‘(i) makes publicly available library

19 services and materials suitable for scholarly

20 research and not otherwise available to the

21 public; and

22 ‘‘(ii) is not an integral part of an in23 stitution of higher education; and

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

25 in which such private library is located deter-
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1 mines that the library should be considered a li2 brary for purposes of this subtitle.

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

4 consortium’ means any local, statewide, regional,

5 interstate, or international cooperative association of

6 library entities which provides for the systematic and

7 effective coordination of the resources of school, public,

8 academic, and special libraries and information cen9 ters, for improved services for the clientele of such li10 brary entities.

11 ‘‘(4) STATE.—The term ‘State’, unless otherwise

12 specified, includes each of the 50 States of the United

13 States, the District of Columbia, the Commonwealth

14 of Puerto Rico, the United States Virgin Islands,

15 Guam, American Samoa, the Commonwealth of the

16 Northern Mariana Islands, the Republic of the Mar17 shall Islands, the Federated States of Micronesia, and

18 the Republic of Palau.

19 ‘‘(5) STATE LIBRARY ADMINISTRATIVE AGEN20 CY.—The term ‘State library administrative agency’

21 means the official agency of a State charged by the

22 law of the State with the extension and development

23 of public library services throughout the State.

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

25 the document which gives assurances that the offi-
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1 cially designated State library administrative agency

2 has the fiscal and legal authority and capability to

3 administer all aspects of this subtitle, provides assur4 ances for establishing the State’s policies, priorities,

5 criteria, and procedures necessary to the implementa6 tion of all programs under this subtitle, submits cop7 ies for approval as required by regulations promul8 gated by the Director, identifies a State’s library

9 needs, and sets forth the activities to be taken toward

10 meeting the identified needs supported with the assist11 ance of Federal funds made available under this sub12 title.

13 ‘‘SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

14 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—

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

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

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

18 years 1998 through 2002 to carry out this subtitle.

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

20 shall—

21 ‘‘(A) transfer any funds appropriated under

22 the authority of paragraph (1) to the Director to

23 enable the Director to carry out this subtitle; and
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1 ‘‘(B) not exercise any authority concerning

2 the administration of this title other than the

3 transfer described in subparagraph (A).

4 ‘‘(b) FORWARD FUNDING.—

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

6 responsible Federal, State, and local officers adequate

7 notice of available Federal financial assistance for

8 carrying out ongoing library activities and projects,

9 appropriations for grants, contracts, or other pay10 ments under any program under this subtitle are au11 thorized to be included in the appropriations Act for

12 the fiscal year preceding the fiscal year during which

13 such activities and projects shall be carried out.

14 ‘‘(2) ADDITIONAL AUTHORIZATION OF APPRO15 PRIATIONS.—In order to effect a transition to the tim16 ing of appropriation action authorized by subsection

17 (a), the application of this section may result in the

18 enactment, in a fiscal year, of separate appropria19 tions for a program under this subtitle (whether in

20 the same appropriations Act or otherwise) for two

21 consecutive fiscal years.

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

23 the funds appropriated under this section for a fiscal year

24 may be used to pay for the Federal administrative costs

25 of carrying out this subtitle.
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1 ‘‘CHAPTER 1—BASIC PROGRAM

2 REQUIREMENTS

3 ‘‘SEC. 221. RESERVATIONS AND ALLOTMENTS.

4 ‘‘(a) RESERVATIONS.—

5 ‘‘(1) IN GENERAL.—From the amount appro6 priated under the authority of section 214 for any fis7 cal year, the Director—

‘‘(A) shall reserve 11 8 ⁄2 percent to award

9 grants in accordance with section 261; and

10 ‘‘(B) shall reserve 4 percent to award na11 tional leadership grants or contracts in accord12 ance with section 262.

13 ‘‘(2) SPECIAL RULE.—If the funds reserved pur14 suant to paragraph (1)(B) for a fiscal year have not

15 been obligated by the end of such fiscal year, then

16 such funds shall be allotted in accordance with sub17 section (b) for the fiscal year succeeding the fiscal

18 year for which the funds were so reserved.

19 ‘‘(b) ALLOTMENTS.—

20 ‘‘(1) IN GENERAL.—From the sums appropriated

21 under the authority of section 214 and not reserved

22 under subsection (a) for any fiscal year, the Director

23 shall award grants from minimum allotments, as de24 termined under paragraph (3), to each State. Any

25 sums remaining after minimum allotments are made
28

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1 for such year shall be allotted in the manner set forth

2 in paragraph (2).

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

4 sums appropriated under the authority of section 214

5 that are not reserved under subsection (a) and not al6 lotted under paragraph (1) for any fiscal year, the

7 Director shall award grants to each State in an

8 amount that bears the same relation to such remain9 der as the population of the State bears to the popu10 lation of all States.

11 ‘‘(3) MINIMUM ALLOTMENT.—

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

13 subsection, the minimum allotment for each

14 State shall be $340,000, except that the mini15 mum allotment shall be $40,000 in the case of

16 the United States Virgin Islands, Guam, Amer17 ican Samoa, the Commonwealth of the Northern

18 Mariana Islands, the Republic of the Marshall

19 Islands, the Federated States of Micronesia, and

20 the Republic of Palau.

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

22 appropriated under the authority of section 214

23 and not reserved under subsection (a) for any

24 fiscal year is insufficient to fully satisfy the ag25 gregate of the minimum allotments for all States
29

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1 for that purpose for such year, each of such min2 imum allotments shall be reduced ratably.

3 ‘‘(C) SPECIAL RULE.—

4 ‘‘(i) IN GENERAL.—Notwithstanding

5 any other provision of this subsection and

6 using funds allotted for the Republic of the

7 Marshall Islands, the Federated States of

8 Micronesia, and the Republic of Palau

9 under this subsection, the Director shall

10 award grants to Guam, American Samoa,

11 the Commonwealth of the Northern Mariana

12 Islands, the Republic of the Marshall Is13 lands, the Federated States of Micronesia,

14 or the Republic of Palau to carry out ac15 tivities described in this subtitle in accord16 ance with the provisions of this subtitle that

17 the Director determines are not inconsistent

18 with this subparagraph.

19 ‘‘(ii) AWARD BASIS.—The Director

20 shall award grants pursuant to clause (i)

21 on a competitive basis and pursuant to rec22 ommendations from the Pacific Region

23 Educational Laboratory in Honolulu, Ha24 waii.
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1 ‘‘(iii) TERMINATION OF ELIGIBILITY.—

2 Notwithstanding any other provision of law,

3 the Republic of the Marshall Islands, the

4 Federated States of Micronesia, and the Re5 public of Palau shall not receive any funds

6 under this subtitle for any fiscal year that

7 begins after September 30, 2001.

8 ‘‘(iv) ADMINISTRATIVE COSTS.—The

9 Director may provide not more than 5 per10 cent of the funds made available for grants

11 under this subparagraph to pay the admin12 istrative costs of the Pacific Region Edu13 cational Laboratory regarding activities as14 sisted under this subparagraph.

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

16 all the States shall be determined by the Director on

17 the basis of the most recent data available from the

18 Bureau of the Census.

19 ‘‘SEC. 222. ADMINISTRATION.

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

21 total amount of funds received under this subtitle for any

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

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

24 construed to limit spending for evaluation costs under sec25 tion 224(c) from sources other than this subtitle.
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1 ‘‘SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE

2 OF EFFORT REQUIREMENTS.

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

4 pursuant to section 214, the Director shall pay to each State

5 library administrative agency having a State plan ap6 proved under section 224 the Federal share of the cost of

7 the activities described in the State plan.

8 ‘‘(b) FEDERAL SHARE.—

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

10 66 percent.

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

12 share of payments shall be provided from non-Fed13 eral, State, or local sources.

14 ‘‘(c) MAINTENANCE OF EFFORT.—

15 ‘‘(1) STATE EXPENDITURES.—

16 ‘‘(A) REQUIREMENT.—

17 ‘‘(i) IN GENERAL.—The amount other18 wise payable to a State for a fiscal year

19 pursuant to an allotment under this chapter

20 shall be reduced if the level of State expendi21 tures, as described in paragraph (2), for the

22 previous fiscal year is less than the average

23 of the total of such expenditures for the 3

24 fiscal years preceding that previous fiscal

25 year. The amount of the reduction in allot26 ment for any fiscal year shall be equal to
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1 the amount by which the level of such State

2 expenditures for the fiscal year for which

3 the determination is made is less than the

4 average of the total of such expenditures for

5 the 3 fiscal years preceding the fiscal year

6 for which the determination is made.

7 ‘‘(ii) CALCULATION.—Any decrease in

8 State expenditures resulting from the appli9 cation of subparagraph (B) shall be ex10 cluded from the calculation of the average

11 level of State expenditures for any 3-year

12 period described in clause (i).

13 ‘‘(B) DECREASE IN FEDERAL SUPPORT.—If

14 the amount made available under this subtitle

15 for a fiscal year is less than the amount made

16 available under this subtitle for the preceding fis17 cal year, then the expenditures required by sub18 paragraph (A) for such preceding fiscal year

19 shall be decreased by the same percentage as the

20 percentage decrease in the amount so made

21 available.

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

23 level of State expenditures for the purposes of para24 graph (1) shall include all State dollars expended by

25 the State library administrative agency for library
33

•S 1972 EAH

1 programs that are consistent with the purposes of this

2 subtitle. All funds included in the maintenance of ef3 fort calculation under this subsection shall be ex4 pended during the fiscal year for which the deter5 mination is made, and shall not include capital ex6 penditures, special one-time project costs, or similar

7 windfalls.

8 ‘‘(3) WAIVER.—The Director may waive the re9 quirements of paragraph (1) if the Director deter10 mines that such a waiver would be equitable due to

11 exceptional or uncontrollable circumstances such as a

12 natural disaster or a precipitous and unforeseen de13 cline in the financial resources of the State.

14 ‘‘SEC. 224. STATE PLANS.

15 ‘‘(a) STATE PLAN REQUIRED.—

16 ‘‘(1) IN GENERAL.—In order to be eligible to re17 ceive a grant under this subtitle, a State library ad18 ministrative agency shall submit a State plan to the

19 Director not later than April 1, 1997.

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

21 period of 5 fiscal years.

22 ‘‘(3) REVISIONS.—If a State library administra23 tive agency makes a substantive revision to its State

24 plan, then the State library administrative agency

25 shall submit to the Director an amendment to the
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1 State plan containing such revision not later than

2 April 1 of the fiscal year preceding the fiscal year for

3 which the amendment will be effective.

4 ‘‘(b) CONTENTS.—The State plan shall—

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

6 the State consistent with the purposes of this subtitle;

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

8 the goals and priorities established under paragraph

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

10 the State library administrative agency will carry

11 out during such year using such grant;

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

13 will use to carry out the activities described in para14 graph (2);

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

16 will use to evaluate the success of the activities estab17 lished under paragraph (2) in achieving the goals

18 and meeting the priorities described in paragraph

19 (1);

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

21 will use to involve libraries and library users

22 throughout the State in policy decisions regarding

23 implementation of this subtitle; and

24 ‘‘(6) provide assurances satisfactory to the Direc25 tor that such agency will make such reports, in such
35

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1 form and containing such information, as the Direc2 tor may reasonably require to carry out this subtitle

3 and to determine the extent to which funds provided

4 under this subtitle have been effective in carrying out

5 the purposes of this subtitle.

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

7 administrative agency receiving a grant under this subtitle

8 shall independently evaluate, and report to the Director re9 garding, the activities assisted under this subtitle, prior to

10 the end of the 5-year plan.

11 ‘‘(d) INFORMATION.—Each library receiving assistance

12 under this subtitle shall submit to the State library admin13 istrative agency such information as such agency may re14 quire to meet the requirements of subsection (c).

15 ‘‘(e) APPROVAL.—

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

17 any State plan under this subtitle that meets the re18 quirements of this subtitle and provides satisfactory

19 assurances that the provisions of such plan will be

20 carried out.

21 ‘‘(2) PUBLIC AVAILABILITY.—Each State library

22 administrative agency receiving a grant under this

23 subtitle shall make the State plan available to the

24 public.
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1 ‘‘(3) ADMINISTRATION.—If the Director deter2 mines that the State plan does not meet the require3 ments of this section, the Director shall—

4 ‘‘(A) immediately notify the State library

5 administrative agency of such determination and

6 the reasons for such determination;

7 ‘‘(B) offer the State library administrative

8 agency the opportunity to revise its State plan;

9 ‘‘(C) provide technical assistance in order to

10 assist the State library administrative agency in

11 meeting the requirements of this section; and

12 ‘‘(D) provide the State library administra13 tive agency the opportunity for a hearing.

14 ‘‘CHAPTER 2—LIBRARY PROGRAMS

15 ‘‘SEC. 231. GRANTS TO STATES.

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

17 library administrative agency under section 214, such

18 agency shall expend, either directly or through subgrants

19 or cooperative agreements, at least 96 percent of such funds

20 for—

21 ‘‘(1) establishing or enhancing electronic linkages

22 among or between libraries and library consortia; and

23 ‘‘(2) targeting library and information services

24 to persons having difficulty using a library and to

25 underserved urban and rural communities, including
37

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1 children (from birth through age 17) from families

2 with incomes below the poverty line (as defined by the

3 Office of Management and Budget and revised annu4 ally in accordance with section 673(2) of the Commu5 nity Services Block Grant Act (42 U.S.C. 9902(2))

6 applicable to a family of the size involved.

7 ‘‘(b) SPECIAL RULE.—Each State library administra8 tive agency receiving funds under this chapter may appor9 tion the funds available for the purposes described in sub10 section (a) between the two purposes described in para11 graphs (1) and (2) of such subsection, as appropriate, to

12 meet the needs of the individual State.

13 ‘‘CHAPTER 3—ADMINISTRATIVE

14 PROVISIONS

15 ‘‘Subchapter A—State Requirements

16 ‘‘SEC. 251. STATE ADVISORY COUNCILS.

17 ‘‘Each State desiring assistance under this subtitle

18 may establish a State advisory council which is broadly

19 representative of the library entities in the State, including

20 public, school, academic, special, and institutional librar21 ies, and libraries serving individuals with disabilities.

22 ‘‘Subchapter B—Federal Requirements

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

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

25 for any fiscal year the Director shall award grants to orga-
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1 nizations primarily serving and representing Indian tribes

2 to enable such organizations to carry out the activities de3 scribed in section 231.

4 ‘‘SEC. 262. NATIONAL LEADERSHIP GRANTS OR CONTRACTS.

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

6 section 221(a)(1)(B) for any fiscal year the Director shall

7 establish and carry out a program awarding national lead8 ership grants or contracts to enhance the quality of library

9 services nationwide and to provide coordination between li10 braries and museums. Such grants or contracts shall be

11 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 other

16 programs;

17 ‘‘(2) research and demonstration projects related

18 to the improvement of libraries, education in library

19 and information science, enhancement of library serv20 ices through effective and efficient use of new tech21 nologies, and dissemination of information derived

22 from such projects;

23 ‘‘(3) preservation or digitization of library mate24 rials and resources, giving priority to projects empha25 sizing coordination, avoidance of duplication, and ac-
39

•S 1972 EAH

1 cess by researchers beyond the institution or library

2 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 out

7 the activities described in subsection (a) by awarding

8 grants to, or entering into contracts with, libraries,

9 agencies, institutions of higher education, or muse10 ums, where appropriate.

11 ‘‘(2) COMPETITIVE BASIS.—Grants and contracts

12 under this section shall be awarded on a competitive

13 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 interfere

20 with State and local initiatives and responsibility in the

21 conduct of library services. The administration of libraries,

22 the selection of personnel and library books and materials,

23 and insofar as consistent with the purposes of this subtitle,

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

2 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 for

10 all age groups;

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

12 methods and facilities so that the museums are better

13 able to conserve the cultural, historic, and scientific

14 heritage of the United States; and

15 ‘‘(3) to ease the financial burden borne by muse16 ums as a result of their increasing use by the public.

17 ‘‘SEC. 272. DEFINITIONS.

18 ‘‘As used in this subtitle:

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

20 public or private nonprofit agency or institution or21 ganized on a permanent basis for essentially edu22 cational or aesthetic purposes, that utilizes a profes23 sional staff, owns or utilizes tangible objects, cares for

24 the tangible objects, and exhibits the tangible objects

25 to the public on a regular basis.
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1 ‘‘(2) STATE.—The term ‘State’ means each of the

2 50 States of the United States, the District of Colum3 bia, the Commonwealth of Puerto Rico, the United

4 States Virgin Islands, Guam, American Samoa, the

5 Commonwealth of the Northern Mariana Islands, the

6 Republic of the Marshall Islands, the Federated States

7 of Micronesia, and the Republic of Palau.

8 ‘‘SEC. 273. MUSEUM SERVICES ACTIVITIES.

9 ‘‘(a) GRANTS.—The Director, subject to the policy di10 rection of the Museum Board, may make grants to museums

11 to pay for the Federal share of the cost of increasing and

12 improving museum services, through such activities as—

13 ‘‘(1) programs that enable museums to construct

14 or install displays, interpretations, and exhibitions in

15 order to improve museum services provided to the

16 public;

17 ‘‘(2) assisting museums in developing and main18 taining professionally trained or otherwise experi19 enced staff to meet the needs of the museums;

20 ‘‘(3) assisting museums in meeting the adminis21 trative costs of preserving and maintaining the collec22 tions of the museums, exhibiting the collections to the

23 public, and providing educational programs to the

24 public through the use of the collections;
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1 ‘‘(4) assisting museums in cooperating with each

2 other in developing traveling exhibitions, meeting

3 transportation costs, and identifying and locating col4 lections available for loan;

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

6 their collections;

7 ‘‘(6) developing and carrying out specialized

8 programs for specific segments of the public, such as

9 programs for urban neighborhoods, rural areas, In10 dian reservations, and penal and other State institu11 tions; and

12 ‘‘(7) model programs demonstrating cooperative

13 efforts between libraries and museums.

14 ‘‘(b) CONTRACTS AND COOPERATIVE AGREEMENTS.—

15 ‘‘(1) PROJECTS TO STRENGTHEN MUSEUM SERV16 ICES.—The Director, subject to the policy direction of

17 the Museum Board, is authorized to enter into con18 tracts and cooperative agreements with appropriate

19 entities, as determined by the Director, to pay for the

20 Federal share of enabling the entities to undertake

21 projects designed to strengthen museum services, ex22 cept that any contracts or cooperative agreements en23 tered into pursuant to this subsection shall be effective

24 only to such extent or in such amounts as are pro25 vided in appropriations acts.
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1 ‘‘(2) LIMITATION ON AMOUNT.—The aggregate

2 amount of financial assistance made available under

3 this subsection for a fiscal year shall not exceed 15

4 percent of the amount appropriated under this sub5 title for such fiscal year.

6 ‘‘(3) OPERATIONAL EXPENSES.—No financial as7 sistance may be provided under this subsection to pay

8 for operational expenses.

9 ‘‘(c) FEDERAL SHARE.—

10 ‘‘(1) 50 PERCENT.—Except as provided in para11 graph (2), the Federal share described in subsections

12 (a) and (b) shall be not more than 50 percent.

13 ‘‘(2) GREATER THAN 50 PERCENT.—The Director

14 may use not more than 20 percent of the funds made

15 available under this subtitle for a fiscal year to make

16 grants under subsection (a), or enter into contracts or

17 agreements under subsection (b), for which the Fed18 eral share may be greater than 50 percent.

19 ‘‘(d) REVIEW AND EVALUATION.—The Director shall

20 establish procedures for reviewing and evaluating grants,

21 contracts, and cooperative agreements made or entered into

22 under this subtitle. Procedures for reviewing grant applica23 tions or contracts and cooperative agreements for financial

24 assistance under this subtitle shall not be subject to any

25 review outside of the Institute.
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1 ‘‘SEC. 274. AWARD.

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

3 may annually award a National Award for Museum Serv4 ice to outstanding museums that have made significant con5 tributions in service to their communities.

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

7 ‘‘(a) ESTABLISHMENT.—There is established in the In8 stitute a National Museum Services Board.

9 ‘‘(b) COMPOSITION AND QUALIFICATIONS.—

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

11 consist of the Director and 14 members appointed by

12 the President, by and with the advice and consent of

13 the Senate.

14 ‘‘(2) QUALIFICATIONS.—The appointive members

15 of the Museum Board shall be selected from among

16 citizens of the United States—

17 ‘‘(A) who are members of the general public;

18 ‘‘(B) who are or have been affiliated with—

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

20 broadly representative of the curatorial,

21 conservation, educational, and cultural re22 sources of the United States; or

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

24 broadly representative of various types of

25 museums, including museums relating to
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1 science, history, technology, art, zoos, and

2 botanical gardens; and

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

4 knowledge, expertise, or experience in museums

5 or commitment to museums.

6 ‘‘(3) GEOGRAPHIC AND OTHER REPRESENTA7 TION.—Members of the Museum Board shall be ap8 pointed to reflect persons from various geographic re9 gions of the United States. The Museum Board may

10 not include, at any time, more than 3 members from

11 a single State. In making such appointments, the

12 President shall give due regard to equitable represen13 tation of women, minorities, and persons with dis14 abilities who are involved with museums.

15 ‘‘(c) TERMS.—

16 ‘‘(1) IN GENERAL.—Each appointive member of

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

18 except that—

19 ‘‘(A) of the members first appointed, 3 shall

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

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

22 shall serve for terms of 2 years, and 2 shall serve

23 for terms of 1 year, as designated by the Presi24 dent at the time of nomination for appointment;

25 and
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1 ‘‘(B) any member appointed to fill a va2 cancy shall serve for the remainder of the term

3 for which the predecessor of the member was ap4 pointed.

5 ‘‘(2) REAPPOINTMENT.—No member of the Mu6 seum Board who has been a member for more than

7 7 consecutive years shall be eligible for reappoint8 ment.

9 ‘‘(3) SERVICE UNTIL SUCCESSOR TAKES OF10 FICE.—Notwithstanding any other provision of this

11 subsection, a member of the Museum Board shall serve

12 after the expiration of the term of the member until

13 the successor to the member takes office.

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

15 have the responsibility to advise the Director on general

16 policies with respect to the duties, powers, and authority

17 of the Institute relating to museum services, including gen18 eral policies with respect to—

19 ‘‘(1) financial assistance awarded under this

20 subtitle for museum services; and

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

22 ‘‘(e) CHAIRPERSON.—The President shall designate 1

23 of the appointive members of the Museum Board as Chair24 person of the Museum Board.

25 ‘‘(f) MEETINGS.—
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1 ‘‘(1) IN GENERAL.—The Museum Board shall

2 meet—

3 ‘‘(A) not less than 3 times each year, in4 cluding—

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

6 separately; and

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

8 a joint meeting with the Commission, con9 vened for purposes of making general poli10 cies with respect to financial assistance for

11 projects described in section 262(a)(4); and

12 ‘‘(B) at the call of the Director.

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

14 with respect to the exercise of the duties and powers

15 of the Museum Board shall be made by a majority

16 vote of the members of the Museum Board who are

17 present. All decisions by the Commission and the Mu18 seum Board with respect to the policies described in

paragraph (1)(A)(ii) shall be made by a 2 19 ⁄3 majority

20 vote of the total number of the members of the Com21 mission and the Museum Board who are present.

22 ‘‘(g) QUORUM.—A majority of the members of the Mu23 seum Board shall constitute a quorum for the conduct of

24 business at official meetings of the Museum Board, but a

25 lesser number of members may hold hearings. A majority
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1 of the members of the Commission and a majority of the

2 members of the Museum Board shall constitute a quorum

3 for the conduct of business at official joint meetings of the

4 Commission and the Museum Board.

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

6 ‘‘(1) COMPENSATION.—Each member of the Mu7 seum Board who is not an officer or employee of the

8 Federal Government may be compensated at a rate to

9 be fixed by the President, but not to exceed the daily

10 equivalent of the maximum rate authorized for a po11 sition above grade GS–15 of the General Schedule

12 under section 5108 of title 5, United States Code, for

13 each day (including travel time) during which such

14 member is engaged in the performance of the duties

15 of the Museum Board. All members of the Museum

16 Board who are officers or employees of the Federal

17 Government shall serve without compensation in ad18 dition to compensation received for their services as

19 officers or employees of the Federal Government.

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

21 Museum Board may be allowed travel expenses, in22 cluding per diem in lieu of subsistence, in the same

23 amounts and to the same extent, as authorized under

24 section 5703 of title 5, United States Code, for per-
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1 sons employed intermittently in Federal Government

2 service.

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

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

5 policies and activities of the Institute are coordinated with

6 other activities of the Federal Government.

7 ‘‘SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

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

9 subtitle, there are authorized to be appropriated to the Di10 rector $28,700,000 for the fiscal year 1997, and such sums

11 as may be necessary for each of the fiscal years 1998

12 through 2002.

13 ‘‘(b) ADMINISTRATION.—Not more than 10 percent of

14 the funds appropriated under this section for a fiscal year

15 may be used to pay for the administrative costs of carrying

16 out this subtitle.

17 ‘‘(c) SUMS REMAINING AVAILABLE.—Sums appro18 priated pursuant to subsection (a) for any fiscal year shall

19 remain available for obligation until expended.’’.

20 SEC. 212. NATIONAL COMMISSION ON LIBRARIES AND IN21 FORMATION SCIENCE.

22 (a) FUNCTIONS.—Section 5 of the National Commis23 sion on Libraries and Information Science Act (20 U.S.C.

24 1504) is amended—
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1 (1) by redesignating subsections (b) through (d)

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

3 (2) by inserting after subsection (a) the follow4 ing:

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

6 advise the Director of the Institute of Museum and Library

7 Services on general policies with respect to the duties, pow8 ers, and authority of the Institute of Museum and Library

9 Services relating to library services, including—

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

11 ‘‘(A) financial assistance awarded under the

12 Museum and Library Services Act for library

13 services; and

14 ‘‘(B) projects described in section 262(a)(4)

15 of such Act; and

16 ‘‘(2) measures to ensure that the policies and ac17 tivities of the Institute of Museum and Library Serv18 ices are coordinated with other activities of the Fed19 eral Government.

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

21 each year in a joint meeting with the National Museum

22 Services Board, convened for purposes of providing advice

23 on general policy with respect to financial assistance for

24 projects described in section 262(a)(4) of such Act.
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1 ‘‘(2) All decisions by the Commission and the National

2 Museum Services Board with respect to the advice on gen3 eral policy described in paragraph (1) shall be made by

a 2 4 ⁄3 majority vote of the total number of the members of

5 the Commission and the National Museum Services Board

6 who are present.

7 ‘‘(3) A majority of the members of the Commission and

8 a majority of the members of the National Museum Services

9 Board shall constitute a quorum for the conduct of business

10 at official joint meetings of the Commission and the Na11 tional Museum Services Board.’’.

12 (b) MEMBERSHIP.—Section 6 of the National Commis13 sion on Libraries and Information Science Act (20 U.S.C.

14 1505) is amended—

15 (1) in subsection (a)—

16 (A) in the first sentence, by striking ‘‘Li17 brarian of Congress’’ and inserting ‘‘Librarian

18 of Congress, the Director of the Institute of Mu19 seum and Library Services (who shall serve as

20 an ex officio, nonvoting member),’’;

21 (B) in the second sentence—

22 (i) by striking ‘‘special competence or

23 interest in’’ and inserting ‘‘special com24 petence in or knowledge of’’; and
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1 (ii) by inserting before the period the

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

3 shall be knowledgeable with respect to the li4 brary and information service and science

5 needs of the elderly’’;

6 (C) in the third sentence, by inserting ‘‘ap7 pointive’’ before ‘‘members’’; and

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

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

10 ‘‘term.’’; and

11 (2) in subsection (b), by striking ‘‘the rate speci12 fied’’ and all that follows through ‘‘and while’’ and

13 inserting ‘‘the daily equivalent of the maximum rate

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

15 General Schedule under section 5108 of title 5, United

16 States Code, for each day (including traveltime) dur17 ing which the members are engaged in the business of

18 the Commission. While’’.

19 SEC. 213. TRANSFER OF FUNCTIONS FROM INSTITUTE OF

20 MUSEUM SERVICES.

21 (a) DEFINITIONS.—For purposes of this section, unless

22 otherwise provided or indicated by the context—

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

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

25 5, United States Code;
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1 (2) the term ‘‘function’’ means any duty, obliga2 tion, power, authority, responsibility, right, privilege,

3 activity, or program; and

4 (3) the term ‘‘office’’ includes any office, admin5 istration, agency, institute, unit, organizational en6 tity, or component thereof.

7 (b) TRANSFER OF FUNCTIONS FROM THE INSTITUTE

8 OF MUSEUM SERVICES AND THE LIBRARY PROGRAM OF9 FICE.—There are transferred to the Director of the Institute

10 of Museum and Library Services established under section

11 203 of the Museum and Library Services Act—

12 (1) all functions that the Director of the Institute

13 of Museum Services exercised before the date of enact14 ment of this section (including all related functions of

15 any officer or employee of the Institute of Museum

16 Services); and

17 (2) all functions that the Director of Library

18 Programs in the Office of Educational Research and

19 Improvement in the Department of Education exer20 cised before the date of enactment of this section and

21 any related function of any officer or employee of the

22 Department of Education.

23 (c) DETERMINATIONS OF CERTAIN FUNCTIONS BY THE

24 OFFICE OF MANAGEMENT AND BUDGET.—If necessary, the

25 Office of Management and Budget shall make any deter-
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1 mination of the functions that are transferred under sub2 section (b).

3 (d) DELEGATION AND ASSIGNMENT.—Except where

4 otherwise expressly prohibited by law or otherwise provided

5 by this section, the Director of the Institute of Museum and

6 Library Services may delegate any of the functions trans7 ferred to the Director of the Institute of Museum and Li8 brary Services by this section and any function transferred

9 or granted to such Director of the Institute of Museum and

10 Library Services after the effective date of this section to

11 such officers and employees of the Institute of Museum and

12 Library Services as the Director of the Institute of Museum

13 and Library Services may designate, and may authorize

14 successive redelegations of such functions as may be nec15 essary or appropriate, except that any delegation of any

16 such functions with respect to libraries shall be made to

17 the Deputy Director of the Office of Library Services and

18 with respect to museums shall be made to the Deputy Direc19 tor of the Office of Museum Services. No delegation of func20 tions by the Director of the Institute of Museum and Li21 brary Services under this section or under any other provi22 sion of this section shall relieve such Director of the Insti23 tute of Museum and Library Services of responsibility for

24 the administration of such functions.
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1 (e) REORGANIZATION.—The Director of the Institute of

2 Museum and Library Services may allocate or reallocate

3 any function transferred under subsection (b) among the

4 officers of the Institute of Museum and Library Services,

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

6 organizational entities in the Institute of Museum and Li7 brary Services as may be necessary or appropriate.

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

9 and Library Services may prescribe, in accordance with

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

11 and regulations as the Director of the Institute of Museum

12 and Library Services determines to be necessary or appro13 priate to administer and manage the functions of the Insti14 tute of Museum and Library Services.

15 (g) TRANSFER AND ALLOCATIONS OF APPROPRIATIONS

16 AND PERSONNEL.—Except as otherwise provided in this

17 section, the personnel employed in connection with, and the

18 assets, liabilities, contracts, property, records, and unex19 pended balances of appropriations, authorizations, alloca20 tions, and other funds employed, used, held, arising from,

21 available to, or to be made available in connection with

22 the functions transferred by this section, subject to section

23 1531 of title 31, United States Code, shall be transferred

24 to the Institute of Museum and Library Services. Unex25 pended funds transferred pursuant to this subsection shall
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1 be used only for the purposes for which the funds were origi2 nally authorized and appropriated.

3 (h) INCIDENTAL TRANSFERS.—The Director of the Of4 fice of Management and Budget, at such time or times as

5 the Director shall provide, may make such determinations

6 as may be necessary with regard to the functions transferred

7 by this section, and make such additional incidental dis8 positions of personnel, assets, liabilities, grants, contracts,

9 property, records, and unexpended balances of appropria10 tions, authorizations, allocations, and other funds held,

11 used, arising from, available to, or to be made available

12 in connection with such functions, as may be necessary to

13 carry out this section. The Director of the Office of Manage14 ment and Budget shall provide for the termination of the

15 affairs of all entities terminated by this section and for such

16 further measures and dispositions as may be necessary to

17 effectuate the purposes of this section.

18 (i) EFFECT ON PERSONNEL.—

19 (1) IN GENERAL.—Except as otherwise provided

20 by this section, the transfer pursuant to this section

21 of full-time personnel (except special Government em22 ployees) and part-time personnel holding permanent

23 positions shall not cause any such employee to be sep24 arated or reduced in grade or compensation for 1
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1 year after the date of transfer of such employee under

2 this section.

3 (2) EXECUTIVE SCHEDULE POSITIONS.—Except

4 as otherwise provided in this section, any person who,

5 on the day preceding the effective date of this section,

6 held a position compensated in accordance with the

7 Executive Schedule prescribed in chapter 53 of title 5,

8 United States Code, and who, without a break in

9 service, is appointed in the Institute of Museum and

10 Library Services to a position having duties com11 parable to the duties performed immediately preced12 ing such appointment shall continue to be com13 pensated in such new position at not less than the

14 rate provided for such previous position, for the dura15 tion of the service of such person in such new posi16 tion.

17 (j) SAVINGS PROVISIONS.—

18 (1) CONTINUING EFFECT OF LEGAL DOCU19 MENTS.—All orders, determinations, rules, regula20 tions, permits, agreements, grants, contracts, certifi21 cates, licenses, registrations, privileges, and other ad22 ministrative actions—

23 (A) that have been issued, made, granted, or

24 allowed to become effective by the President, any

25 Federal agency or official of a Federal agency, or
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1 by a court of competent jurisdiction, in the per2 formance of functions that are transferred under

3 this section; and

4 (B) that were in effect before the effective

5 date of this section, or were final before the effec6 tive date of this section and are to become effec7 tive on or after the effective date of this section;

8 shall continue in effect according to their terms until

9 modified, terminated, superseded, set aside, or revoked

10 in accordance with law by the President, the Director

11 of the Institute of Museum and Library Services or

12 other authorized official, a court of competent juris13 diction, or by operation of law.

14 (2) PROCEEDINGS NOT AFFECTED.—This section

15 shall not affect any proceedings, including notices of

16 proposed rulemaking, or any application for any li17 cense, permit, certificate, or financial assistance

18 pending before the Institute of Museum Services on

19 the effective date of this section, with respect to func20 tions transferred by this section. Such proceedings

21 and applications shall be continued. Orders shall be

22 issued in such proceedings, appeals shall be taken

23 from the orders, and payments shall be made pursu24 ant to the orders, as if this section had not been en25 acted, and orders issued in any such proceedings shall
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1 continue in effect until modified, terminated, super2 seded, or revoked by a duly authorized official, by a

3 court of competent jurisdiction, or by operation of

4 law. Nothing in this paragraph shall be construed to

5 prohibit the discontinuance or modification of any

6 such proceeding under the same terms and conditions

7 and to the same extent that such proceeding could

8 have been discontinued or modified if this section had

9 not been enacted.

10 (3) SUITS NOT AFFECTED.—This section shall

11 not affect suits commenced before the effective date of

12 this section, and in all such suits, proceedings shall

13 be had, appeals taken, and judgments rendered in the

14 same manner and with the same effect as if this sec15 tion had not been enacted.

16 (4) NONABATEMENT OF ACTIONS.—No suit, ac17 tion, or other proceeding commenced by or against the

18 Institute of Museum Services, or by or against any

19 individual in the official capacity of such individual

20 as an officer of the Institute of Museum Services, shall

21 abate by reason of the enactment of this section.

22 (5) ADMINISTRATIVE ACTIONS RELATING TO PRO23 MULGATION OF REGULATIONS.—Any administrative

24 action relating to the preparation or promulgation of

25 a regulation by the Institute of Museum Services re-
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1 lating to a function transferred under this section

2 may be continued by the Institute of Museum and Li3 brary Services with the same effect as if this section

4 had not been enacted.

5 (k) TRANSITION.—The Director of the Institute of Mu6 seum and Library Services may utilize—

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

8 other personnel of the Institute of Museum Services

9 with respect to functions transferred to the Institute

10 of Museum and Library Services by this section; and

11 (2) funds appropriated to such functions for such

12 period of time as may reasonably be needed to facili13 tate the orderly implementation of this section.

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

15 law, Executive order, rule, regulation, or delegation of au16 thority, or any document of or relating to—

17 (1) the Director of the Institute of Museum Serv18 ices with regard to functions transferred under sub19 section (b), shall be deemed to refer to the Director of

20 the Institute of Museum and Library Services; and

21 (2) the Institute of Museum Services with regard

22 to functions transferred under subsection (b), shall be

23 deemed to refer to the Institute of Museum and Li24 brary Services.

25 (m) ADDITIONAL CONFORMING AMENDMENTS.—
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1 (1) RECOMMENDED LEGISLATION.—After con2 sultation with the appropriate committees of Congress

3 and the Director of the Office of Management and

4 Budget, the Director of the Institute of Museum and

5 Library Services shall prepare and submit to the ap6 propriate committees of Congress recommended legis7 lation containing technical and conforming amend8 ments to reflect the changes made by this section.

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

10 6 months after the effective date of this section, the

11 Director of the Institute of Museum and Library

12 Services shall submit to the appropriate committees of

13 Congress the recommended legislation referred to

14 under paragraph (1).

15 SEC. 214. SERVICE OF INDIVIDUALS SERVING ON DATE OF

16 ENACTMENT.

17 Notwithstanding section 204 of the Museum and Li18 brary Services Act, the individual who was appointed to

19 the position of Director of the Institute of Museum Services

20 under section 205 of the Museum Services Act (as such sec21 tion was in effect on the day before the date of enactment

22 of this Act) and who is serving in such position on the day

23 before the date of enactment of this Act shall serve as the

24 first Director of the Institute of Museum and Library Serv25 ices under section 204 of the Museum and Library Services
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1 Act (as added by section 211 of this title), and shall serve

2 at the pleasure of the President.

3 SEC. 215. CONSIDERATION.

4 Consistent with title 5, United States Code, in ap5 pointing employees of the Office of Library Services, the Di6 rector of the Institute of Museum and Library Services shall

7 give strong consideration to individuals with experience in

8 administering State-based and national library and infor9 mation services programs.

10 SEC. 216. TRANSITION AND TRANSFER OF FUNDS.

11 (a) TRANSITION.—The Director of the Office of Man12 agement and Budget shall take appropriate measures to en13 sure an orderly transition from the activities previously ad14 ministered by the Director of Library Programs in the Of15 fice of Educational Research and Improvement in the De16 partment of Education to the activities administered by the

17 Institute for Museum and Library Services under this title.

18 Such measures may include the transfer of appropriated

19 funds.

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

21 transfer to the Director the amount of funds necessary to

22 ensure the orderly transition from activities previously ad23 ministered by the Director of the Office of Library Pro24 grams in the Office of Educational Research and Improve25 ment in the Department of Education to the activities ad-
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1 ministered by the Institute for Museum and Library Serv2 ices. In no event shall the amount of funds transferred pur3 suant to the preceding sentence be less than $200,000.

4 TITLE III—HIGHER EDUCATION

5 Subtitle A—Debt Reduction

6 SEC. 301. UNSUBSIDIZED STUDENT LOANS.

7 (a) AMENDMENT.—Paragraph (1) of section 428H(f)

8 of the Higher Education Act of 1965 (20 U.S.C. 1078–

9 8(f)(1)) is amended to read as follows:

10 ‘‘(1) AMOUNT OF ORIGINATION FEE.—Except as

11 provided in paragraph (5), an origination fee shall be

12 paid to the Secretary with respect to each loan under

13 this section in the amount of 3.0 percent of the prin14 cipal amount of the loan. Each lender under this sec15 tion is authorized to charge the borrower for such

16 origination fee, provided that the lender assesses the

17 same fee to all student borrowers. Any such fee

18 charged to the borrower shall be deducted proportion19 ately from each installment payment of the proceeds

20 of the loan prior to payment to the borrower.’’.

21 (b) CONFORMING AMENDMENTS.—Section 428H(f) of

22 such Act is further amended—

23 (1) in paragraph (3), by striking ‘‘the origina24 tion fee’’ and inserting ‘‘any origination fee that is

25 charged to the borrower’’;
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1 (2) in paragraph (4), by striking ‘‘origination

2 fees authorized to be collected from borrowers’’ and in3 serting ‘‘origination fees required under paragraph

4 (1)’’; and

5 (3) by adding at the end the following new para6 graph:

7 ‘‘(6) EXCEPTION.—Notwithstanding paragraph

8 (1), a lender may assess a lesser origination fee for

9 a borrower demonstrating greater financial need as

10 determined by such borrower’s adjusted gross family

11 income.’’.

12 (c) REPORT ON COMPETITIVE ALLOCATION.—Within

13 60 days after the date of enactment of this Act, the Sec14 retary of Education shall submit to each House of the Con15 gress a legislative proposal that would permit the Secretary

16 to allocate the right to make subsidized and unsubsidized

17 student loans on the basis of competitive bidding. Such pro18 posal shall include provision to ensure that any payments

19 received from such competitive bidding are equally allocated

20 to deficit reduction and to pro rata reduction of origination

21 fees in both guaranteed and direct student loans.

22 SEC. 302. STUDY OF LOAN FEES.

23 (a) STUDY REQUIRED.—The Secretary of Education

24 shall conduct a statistical analysis of the subsidized and

25 unsubsidized student loan programs under part B of title
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1 IV of the Higher Education Act of 1965 to gather data on

2 lenders’ use of loan fees and to determine if there are any

3 anomalies that would indicate any institutional, pro4 grammatic or socioeconomic discrimination in the assessing

5 or waiving such fees.

6 (b) REPORT.—The Secretary of Education shall sub7 mit to each House of the Congress a report on the study

8 required by subsection (a) within 2 years after the date of

9 enactment of this Act.

10 (c) STATISTICAL CHARACTERISTICS TO BE STUD11 IED.—In conducting the study required by subsection (a),

12 the Secretary of Education shall compare recipients of loans

13 on the basis of income, residence location, type and location

14 of higher education, program of instruction and type of

15 lender.

16 Subtitle B—Financial

17 Responsibility Standards

18 SEC. 311. EXTENSION OF PUBLIC COMMENT PERIOD.

19 The Secretary of Education shall extend until Decem20 ber 1, 1996, the period for public comment on rules pub21 lished in the Federal Register on September 20, 1996 (61

22 Fed. Reg. 49552), relating to financial responsibility stand23 ards for institutions participating in higher education pro24 grams (34 C.F.R. part 668). The Secretary shall publish

25 such rules in final form by February 1, 1997. Notwith-
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1 standing section 482(c) of the Higher Education Act of 1965

2 (20 U.S.C. 1089(c)), such rules shall, if so published by such

3 date, be effective for award year 1997-98.

Attest:

Clerk.