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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1972 Engrossed Amendment House (EAH)]

  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:

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.
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.

                  TITLE I--OLDER AMERICANS ACT OF 1965

SEC. 101. INDIAN EMPLOYMENT; DEFINITION OF INDIAN RESERVATION.

    Section 502(b)(1)(B) of the Older Americans Act of 1965 (42 U.S.C. 
3056(b)(1)(B)) is amended to read as follows:
            ``(B)(i) will provide employment for eligible individuals 
        in the community in which such individuals reside, or in nearby 
        communities; or
            ``(ii) if such project is carried out by a tribal 
        organization that enters into an agreement under this 
        subsection or receives assistance from a State that enters into 
        such an agreement, will provide employment for such individuals 
        who are Indians residing on or near an Indian reservation, as 
        the term is defined in section 2601(2) of the Energy Policy Act 
        of 1992 (25 U.S.C. 3501(2));''.

SEC. 102. POPULATION STATISTICS DEVELOPMENT.

    Section 614(b) of the Older Americans Act of 1965 (42 U.S.C. 
3057e(b)) is amended by striking ``certification'' and inserting 
``approval''.

SEC. 103. REPORTING REQUIREMENTS.

    Section 614(c) of the Older Americans Act of 1965 (42 U.S.C. 
3057e(c)) is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Assistant Secretary shall provide waivers and exemptions 
of the reporting requirements of subsection (a)(3) for applicants that 
serve Indian populations in geographically isolated areas, or 
applicants that serve small Indian populations, where the small scale 
of the project, the nature of the applicant, or other factors make the 
reporting requirements unreasonable under the circumstances. The 
Assistant Secretary shall consult with such applicants in establishing 
appropriate waivers and exemptions.''.

SEC. 104. EXPENDITURE OF FUNDS FOR NUTRITION SERVICES.

    Section 614(c) of the Older Americans Act of 1965 (42 U.S.C. 
3057e(c)), as amended by section 103, is further amended by adding at 
the end the following new paragraph:
    ``(3) In determining whether an application complies with the 
requirements of subsection (a)(8), the Assistant Secretary shall 
provide maximum flexibility to an applicant who seeks to take into 
account subsistence needs, local customs, and other characteristics 
that are appropriate to the unique cultural, regional, and geographical 
needs of the Indian populations to be served.''.

SEC. 105. COORDINATION OF SERVICES.

    Section 614(c) of the Older Americans Act of 1965 (42 U.S.C. 
3057e(c)), as amended by section 104, is further amended by adding at 
the end the following new paragraph:
    ``(4) In determining whether an application complies with the 
requirements of subsection (a)(12), the Assistant Secretary shall 
require only that an applicant provide an appropriate narrative 
description of the geographical area to be served and an assurance that 
procedures will be adopted to ensure against duplicate services being 
provided to the same recipients.''.

         TITLE II--EXTENSION OF PROGRAMS; MUSEUMS AND LIBRARIES

                   Subtitle A--Extension of Programs

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

    (a) National Workforce Literacy Assistance Collaborative.--
Subsection (c) of section 201 of the National Literacy Act of 1991 (20 
U.S.C. 1211-1(c)) is amended by striking ``$5,000,000'' and all that 
follows through the period and inserting ``such sums as may be 
necessary for fiscal year 1997.''.
    (b) Functional Literacy and Life Skills Program for State and Local 
Prisoners.--Paragraph (3) of section 601(i) of the National Literacy 
Act of 1991 (20 U.S.C. 1211-2(i)) is amended by striking 
``$10,000,000'' and all that follows through the period and inserting 
``such sums as may be necessary for fiscal year 1997.''.

SEC. 202. ADULT EDUCATION ACT AMENDMENTS.

    The Adult Education Act (20 U.S.C. 1201 et seq.) is amended--
            (1) in section 312--
                    (A) in each of subparagraphs (A) and (B) of 
                paragraph (11), by moving the left margin two ems to 
                the right;
                    (B) in each of paragraphs (11) through (15), by 
                moving the left margin two ems to the right; and
                    (C) by adding at the end the following:
            ``(16) The term `family literacy services' means services 
        that are of sufficient intensity in terms of hours, and of 
        sufficient duration, to make sustainable changes in a family 
        and that integrate all of the following activities:
                    ``(A) Interactive literacy activities between 
                parents and their children.
                    ``(B) Training for parents on how to be the primary 
                teacher for their children and full partners in the 
                education of their children.
                    ``(C) Parent literacy training.
                    ``(D) An age-appropriate education program for 
                children.'';
            (2) in section 313(a), by striking ``the fiscal year 
        1991,'' and all that follows through ``1995'' and inserting 
        ``fiscal year 1997'';
            (3) in section 321, by inserting ``and family literacy 
        services'' after ``and activities'';
            (4) in the first sentence of section 322(a)(1), by 
        inserting ``and family literacy services'' after ``adult 
        education programs'';
            (5) in section 341(a), by inserting ``and for family 
        literacy services'' after ``adult education'';
            (6) in section 356(k), by striking ``$25,000,000'' and all 
        that follows through the period and inserting ``such sums as 
        may be necessary for fiscal year 1997.'';
            (7) in section 371(e)(1), by striking ``the fiscal year 
        1991,'' and all that follows through the period and inserting 
        ``fiscal year 1997.'';
            (8) in section 384, by striking subsections (c) through 
        (n); and
            (9) by adding at the end the following:

``SEC. 386. NATIONAL INSTITUTE FOR LITERACY.

    ``(a) Establishment.--
            ``(1) In general.--There is established the National 
        Institute for Literacy (in this section referred to as the 
        `Institute'). The Institute shall be administered under the 
        terms of an interagency agreement entered into by the Secretary 
        of Education with the Secretary of Labor and the Secretary of 
        Health and Human Services (in this section referred to as the 
        `Interagency Group'). The Interagency Group may include in the 
        Institute any research and development center, institute, or 
        clearinghouse established within the Department of Education, 
        the Department of Labor, or the Department of Health and Human 
        Services whose purpose is determined by the Interagency Group 
        to be related to the purpose of the Institute.
            ``(2) Offices.--The Institute shall have offices separate 
        from the offices of the Department of Education, the Department 
        of Labor, and the Department of Health and Human Services.
            ``(3) Board recommendations.--The Interagency Group shall 
        consider the recommendations of the National Institute for 
        Literacy Advisory Board (in this section referred to as the 
        `Board') established under subsection (d) in planning the goals 
        of the Institute and in the implementation of any programs to 
        achieve such goals.
            ``(4) Daily operations.--The daily operations of the 
        Institute shall be carried out by the Director of the Institute 
        appointed under subsection (g).
    ``(b) Duties.--
            ``(1) In general.--The Institute shall improve the quality 
        and accountability of the adult basic skills and literacy 
        delivery system by--
                    ``(A) providing national leadership for the 
                improvement and expansion of the system for delivery of 
                literacy services;
                    ``(B) coordinating the delivery of such services 
                across Federal agencies;
                    ``(C) identifying effective models of basic skills 
                and literacy education for adults and families that are 
                essential to success in job training, work, the family, 
                and the community;
                    ``(D) supporting the creation of new methods of 
                offering improved literacy services;
                    ``(E) funding a network of State or regional adult 
                literacy resource centers to assist State and local 
                public and private nonprofit efforts to improve 
                literacy by--
                            ``(i) encouraging the coordination of 
                        literacy services;
                            ``(ii) carrying out evaluations of the 
                        effectiveness of adult education and literacy 
                        activities;
                            ``(iii) enhancing the capacity of State and 
                        local organizations to provide literacy 
                        services; and
                            ``(iv) serving as a reciprocal link between 
                        the Institute and providers of adult education 
                        and literacy activities for the purpose of 
                        sharing information, data, research, expertise, 
                        and literacy resources;
                    ``(F) supporting the development of models at the 
                State and local level of accountability systems that 
                consist of goals, performance measures, benchmarks, and 
                assessments that can be used to improve the quality of 
                adult education and literacy activities;
                    ``(G) providing information, and other program 
                improvement activities to national, State, and local 
                organizations, such as--
                            ``(i) improving the capacity of national, 
                        State, and local public and private 
                        organizations that provide literacy and basic 
                        skills services, professional development, and 
                        technical assistance, such as the State or 
                        regional adult literacy resource centers 
                        referred to in subparagraph (E); and
                            ``(ii) establishing a national literacy 
                        electronic database and communications network;
                    ``(H) working with the Interagency Group, Federal 
                agencies, and the Congress to ensure that such Group, 
                agencies, and the Congress have the best information 
                available on literacy and basic skills programs in 
                formulating Federal policy with respect to the issues 
                of literacy, basic skills, and workforce and career 
                development; and
                    ``(I) assisting with the development of policy with 
                respect to literacy and basic skills.
            ``(2) Grants, contracts, and agreements.--The Institute may 
        make grants to, or enter into contracts or cooperative 
        agreements with, individuals, public or private institutions, 
        agencies, organizations, or consortia of such institutions, 
        agencies, or organizations to carry out the activities of the 
        Institute. Such grants, contracts, or agreements shall be 
        subject to the laws and regulations that generally apply to 
        grants, contracts, or agreements entered into by Federal 
        agencies.
    ``(c) Literacy Leadership.--
            ``(1) Fellowships.--The Institute, in consultation with the 
        Board, may award fellowships, with such stipends and allowances 
        as the Director considers necessary, to outstanding individuals 
        pursuing careers in adult education or literacy in the areas of 
        instruction, management, research, or innovation.
            ``(2) Use of fellowships.--Fellowships awarded under this 
        subsection shall be used, under the auspices of the Institute, 
        to engage in research, education, training, technical 
        assistance, or other activities to advance the field of adult 
        education or literacy, including the training of volunteer 
        literacy providers at the national, State, or local level.
            ``(3) Interns and volunteers.--The Institute, in 
        consultation with the Board, may award paid and unpaid 
        internships to individuals seeking to assist the Institute in 
        carrying out its mission. Notwithstanding section 1342 of title 
        31, United States Code, the Institute may accept and use 
        voluntary and uncompensated services as the Institute 
        determines necessary.
    ``(d) National Institute for Literacy Advisory Board.--
            ``(1) Establishment.--
                    ``(A) In general.--There is established a National 
                Institute for Literacy Advisory Board. The Board shall 
                consist of 10 individuals appointed by the President, 
                with the advice and consent of the Senate, from 
                individuals who--
                            ``(i) are not otherwise officers or 
                        employees of the Federal Government; and
                            ``(ii) are representative of entities or 
                        groups described in subparagraph (B).
                    ``(B) Entities or groups described.--The entities 
                or groups referred to in subparagraph (A) are--
                            ``(i) literacy organizations and providers 
                        of literacy services, including--
                                    ``(I) nonprofit providers of 
                                literacy services;
                                    ``(II) providers of programs and 
                                services involving English language 
                                instruction; and
                                    ``(III) providers of services 
                                receiving assistance under this title;
                            ``(ii) businesses that have demonstrated 
                        interest in literacy programs;
                            ``(iii) literacy students;
                            ``(iv) experts in the area of literacy 
                        research;
                            ``(v) State and local governments; and
                            ``(vi) representatives of employees.
            ``(2) Duties.--The Board--
                    ``(A) shall make recommendations concerning the 
                appointment of the Director and staff of the Institute;
                    ``(B) shall provide independent advice on the 
                operation of the Institute; and
                    ``(C) shall receive reports from the Interagency 
                Group and the Director.
            ``(3) Federal advisory committee act.--Except as otherwise 
        provided, the Board established by this subsection shall be 
        subject to the provisions of the Federal Advisory Committee Act 
        (5 U.S.C. App.).
            ``(4) Terms.--
                    ``(A) In general.--Each member of the Board shall 
                be appointed for a term of 3 years, except that the 
                initial terms for members may be 1, 2, or 3 years in 
                order to establish a rotation in which \1/3\ of the 
                members are selected each year. Any such member may be 
                appointed for not more than 2 consecutive terms.
                    ``(B) Vacancy appointments.--Any member appointed 
                to fill a vacancy occurring before the expiration of 
                the term for which the member's predecessor was 
                appointed shall be appointed only for the remainder of 
                that term. A member may serve after the expiration of 
                that member's term until a successor has taken office. 
                A vacancy in the Board shall be filled in the manner in 
                which the original appointment was made. A vacancy in 
                the Board shall not affect the powers of the Board.
            ``(5) Quorum.--A majority of the members of the Board shall 
        constitute a quorum but a lesser number may hold hearings. Any 
        recommendation of the Board may be passed only by a majority of 
        the Board's members present.
            ``(6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Board shall be elected by the members of the 
        Board. The term of office of the Chairperson and Vice 
        Chairperson shall be 2 years.
            ``(7) Meetings.--The Board shall meet at the call of the 
        Chairperson or a majority of the members of the Board.
    ``(e) Gifts, Bequests, and Devises.--The Institute may accept, 
administer, and use gifts or donations of services, money, or property, 
both real and personal.
    ``(f) Mails.--The Board and the Institute may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    ``(g) Director.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the pay of a 
Director.
    ``(h) Applicability of Certain Civil Service Laws.--The Director 
and staff of the Institute may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
an individual so appointed may not receive pay in excess of the maximum 
rate payable under section 5376 of title 5, United States Code.
    ``(i) Experts and Consultants.--The Board and the Institute may 
procure temporary and intermittent services under section 3109(b) of 
title 5, United States Code.
    ``(j) Report.--The Institute shall submit a report biennially to 
the Committee on Economic and Educational Opportunities of the House of 
Representatives and the Committee on Labor and Human Resources of the 
Senate. Each report submitted under this subsection shall include--
            ``(1) a comprehensive and detailed description of the 
        Institute's operations, activities, financial condition, and 
        accomplishments in the field of literacy for the period covered 
        by the report;
            ``(2) a description of how plans for the operation of the 
        Institute for the succeeding two fiscal years will facilitate 
        achievement of the goals of the Institute and the goals of the 
        literacy programs within the Department of Education, the 
        Department of Labor, and the Department of Health and Human 
        Services; and
            ``(3) any additional minority, or dissenting views 
        submitted by members of the Board.
    ``(k) Funding.--Any amounts appropriated to the Secretary of 
Education, the Secretary of Labor, or the Secretary of Health and Human 
Services for purposes that the Institute is authorized to perform under 
this section may be provided to the Institute for such purposes.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 for fiscal year 1997 and such sums as may be 
necessary for each of the fiscal years 1998 through 2002 to carry out 
this section.''.

SEC. 203. EXTENSION OF CARL D. PERKINS VOCATIONAL AND APPLIED 
              TECHNOLOGY EDUCATION ACT.

    Subsection (a) of section 3 of the Carl D. Perkins Vocational and 
Applied Technology Act is amended by striking ``appropriated'' and all 
that follows through ``1995'' and inserting ``appropriated for fiscal 
year 1997 such sums as may be necessary''.

                   Subtitle B--Museums and Libraries

SEC. 211. MUSEUM AND LIBRARY SERVICES.

    The Museum Services Act (20 U.S.C. 961 et seq.) is amended to read 
as follows:

                ``TITLE II--MUSEUM AND LIBRARY SERVICES

                    ``Subtitle A--General Provisions

``SEC. 201. SHORT TITLE.

    ``This title may be cited as the `Museum and Library Services Act'.

``SEC. 202. GENERAL DEFINITIONS.

    ``As used in this title:
            ``(1) Commission.--The term `Commission' means the National 
        Commission on Libraries and Information Science established 
        under section 3 of the National Commission on Libraries and 
        Information Sciences Act (20 U.S.C. 1502).
            ``(2) Director.--The term `Director' means the Director of 
        the Institute appointed under section 204.
            ``(3) Institute.--The term `Institute' means the Institute 
        of Museum and Library Services established under section 203.
            ``(4) Museum board.--The term `Museum Board' means the 
        National Museum Services Board established under section 275.

``SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

    ``(a) Establishment.--There is established, within the National 
Foundation on the Arts and the Humanities, an Institute of Museum and 
Library Services.
    ``(b) Offices.--The Institute shall consist of an Office of Museum 
Services and an Office of Library Services. There shall be a National 
Museum Services Board in the Office of Museum Services.

``SEC. 204. DIRECTOR OF THE INSTITUTE.

    ``(a) Appointment.--
            ``(1) In general.--The Institute shall be headed by a 
        Director, appointed by the President, by and with the advice 
        and consent of the Senate.
            ``(2) Term.--The Director shall serve for a term of 4 
        years.
            ``(3) Qualifications.--Beginning with the first individual 
        appointed to the position of Director after the date of the 
        enactment of the Act entitled `An Act to amend the Older 
        Americans Act of 1965, and for other purposes', every second 
        individual so appointed shall be appointed from among 
        individuals who have special competence with regard to library 
        and information services. Beginning with the second individual 
        appointed to the position of Director after the date of 
        enactment of the Act entitled `An Act to amend the Older 
        Americans Act of 1965, and for other purposes', every second 
        individual so appointed shall be appointed from among 
        individuals who have special competence with regard to museum 
        services.
    ``(b) Compensation.--The Director may be compensated at the rate 
provided for level III of the Executive Schedule under section 5314 of 
title 5, United States Code.
    ``(c) Duties and Powers.--The Director shall perform such duties 
and exercise such powers as may be prescribed by law, including 
awarding financial assistance for activities described in this title.
    ``(d) Nondelegation.--The Director shall not delegate any of the 
functions of the Director to any person who is not an officer or 
employee of the Institute.
    ``(e) Coordination.--The Director shall ensure coordination of the 
policies and activities of the Institute with the policies and 
activities of other agencies and offices of the Federal Government 
having interest in and responsibilities for the improvement of museums 
and libraries and information services.

``SEC. 205. DEPUTY DIRECTORS.

    ``The Office of Library Services shall be headed by a Deputy 
Director, who shall be appointed by the Director from among individuals 
who have a graduate degree in library science and expertise in library 
and information services. The Office of Museum Services shall be headed 
by a Deputy Director, who shall be appointed by the Director from among 
individuals who have expertise in museum services.

``SEC. 206. PERSONNEL.

    ``(a) In General.--The Director may, in accordance with applicable 
provisions of title 5, United States Code, appoint and determine the 
compensation of such employees as the Director determines to be 
necessary to carry out the duties of the Institute.
    ``(b) Voluntary Services.--The Director may accept and utilize the 
voluntary services of individuals and reimburse the individuals for 
travel expenses, including per diem in lieu of subsistence, in the same 
amounts and to the same extent as authorized under section 5703 of 
title 5, United States Code, for persons employed intermittently in 
Federal Government service.

``SEC. 207. CONTRIBUTIONS.

    ``The Institute is authorized to solicit, accept, receive, and 
invest in the name of the United States, gifts, bequests, or devises of 
money and other property or services and to use such property or 
services in furtherance of the functions of the Institute. Any proceeds 
from such gifts, bequests, or devises, after acceptance by the 
Institute, shall be paid by the donor or the representative of the 
donor to the Director. The Director shall enter the proceeds in a 
special interest-bearing account to the credit of the Institute for the 
purposes specified in each case.

             ``Subtitle B--Library Services and Technology

``SEC. 211. SHORT TITLE.

    ``This subtitle may be cited as the `Library Services and 
Technology Act'.

``SEC. 212. PURPOSE.

    ``It is the purpose of this subtitle--
            ``(1) to consolidate Federal library service programs;
            ``(2) to stimulate excellence and promote access to 
        learning and information resources in all types of libraries 
        for individuals of all ages;
            ``(3) to promote library services that provide all users 
        access to information through State, regional, national and 
        international electronic networks;
            ``(4) to provide linkages among and between libraries; and
            ``(5) to promote targeted library services to people of 
        diverse geographic, cultural, and socioeconomic backgrounds, to 
        individuals with disabilities, and to people with limited 
        functional literacy or information skills.

``SEC. 213. DEFINITIONS.

    ``As used in this subtitle:
            ``(1) Indian tribe.--The term `Indian tribe' means any 
        tribe, band, nation, or other organized group or community, 
        including any Alaska native village, regional corporation, or 
        village corporation, as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.), which is recognized by the Secretary of the Interior as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians.
            ``(2) Library.--The term `library' includes--
                    ``(A) a public library;
                    ``(B) a public elementary school or secondary 
                school library;
                    ``(C) an academic library;
                    ``(D) a research library, which for the purposes of 
                this subtitle means a library that--
                            ``(i) makes publicly available library 
                        services and materials suitable for scholarly 
                        research and not otherwise available to the 
                        public; and
                            ``(ii) is not an integral part of an 
                        institution of higher education; and
                    ``(E) a private library, but only if the State in 
                which such private library is located determines that 
                the library should be considered a library for purposes 
                of this subtitle.
            ``(3) Library consortium.--The term `library consortium' 
        means any local, statewide, regional, interstate, or 
        international cooperative association of library entities which 
        provides for the systematic and effective coordination of the 
        resources of school, public, academic, and special libraries 
        and information centers, for improved services for the 
        clientele of such library entities.
            ``(4) State.--The term `State', unless otherwise specified, 
        includes each of the 50 States of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
            ``(5) State library administrative agency.--The term `State 
        library administrative agency' means the official agency of a 
        State charged by the law of the State with the extension and 
        development of public library services throughout the State.
            ``(6) State plan.--The term `State plan' means the document 
        which gives assurances that the officially designated State 
        library administrative agency has the fiscal and legal 
        authority and capability to administer all aspects of this 
        subtitle, provides assurances for establishing the State's 
        policies, priorities, criteria, and procedures necessary to the 
        implementation of all programs under this subtitle, submits 
        copies for approval as required by regulations promulgated by 
        the Director, identifies a State's library needs, and sets 
        forth the activities to be taken toward meeting the identified 
        needs supported with the assistance of Federal funds made 
        available under this subtitle.

``SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        $150,000,000 for fiscal year 1997 and such sums as may be 
        necessary for each of the fiscal years 1998 through 2002 to 
        carry out this subtitle.
            ``(2) Transfer.--The Secretary of Education shall--
                    ``(A) transfer any funds appropriated under the 
                authority of paragraph (1) to the Director to enable 
                the Director to carry out this subtitle; and
                    ``(B) not exercise any authority concerning the 
                administration of this title other than the transfer 
                described in subparagraph (A).
    ``(b) Forward Funding.--
            ``(1) In general.--To the end of affording the responsible 
        Federal, State, and local officers adequate notice of available 
        Federal financial assistance for carrying out ongoing library 
        activities and projects, appropriations for grants, contracts, 
        or other payments under any program under this subtitle are 
        authorized to be included in the appropriations Act for the 
        fiscal year preceding the fiscal year during which such 
        activities and projects shall be carried out.
            ``(2) Additional authorization of appropriations.--In order 
        to effect a transition to the timing of appropriation action 
        authorized by subsection (a), the application of this section 
        may result in the enactment, in a fiscal year, of separate 
        appropriations for a program under this subtitle (whether in 
        the same appropriations Act or otherwise) for two consecutive 
        fiscal years.
    ``(c) Administration.--Not more than 3 percent of the funds 
appropriated under this section for a fiscal year may be used to pay 
for the Federal administrative costs of carrying out this subtitle.

                ``CHAPTER 1--BASIC PROGRAM REQUIREMENTS

``SEC. 221. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--
            ``(1) In general.--From the amount appropriated under the 
        authority of section 214 for any fiscal year, the Director--
                    ``(A) shall reserve 1\1/2\ percent to award grants 
                in accordance with section 261; and
                    ``(B) shall reserve 4 percent to award national 
                leadership grants or contracts in accordance with 
                section 262.
            ``(2) Special rule.--If the funds reserved pursuant to 
        paragraph (1)(B) for a fiscal year have not been obligated by 
        the end of such fiscal year, then such funds shall be allotted 
        in accordance with subsection (b) for the fiscal year 
        succeeding the fiscal year for which the funds were so 
        reserved.
    ``(b) Allotments.--
            ``(1) In general.--From the sums appropriated under the 
        authority of section 214 and not reserved under subsection (a) 
        for any fiscal year, the Director shall award grants from 
        minimum allotments, as determined under paragraph (3), to each 
        State. Any sums remaining after minimum allotments are made for 
        such year shall be allotted in the manner set forth in 
        paragraph (2).
            ``(2) Remainder.--From the remainder of any sums 
        appropriated under the authority of section 214 that are not 
        reserved under subsection (a) and not allotted under paragraph 
        (1) for any fiscal year, the Director shall award grants to 
        each State in an amount that bears the same relation to such 
        remainder as the population of the State bears to the 
        population of all States.
            ``(3) Minimum allotment.--
                    ``(A) In general.--For the purposes of this 
                subsection, the minimum allotment for each State shall 
                be $340,000, except that the minimum allotment shall be 
                $40,000 in the case of the United States Virgin 
                Islands, Guam, American Samoa, the Commonwealth of the 
                Northern Mariana Islands, the Republic of the Marshall 
                Islands, the Federated States of Micronesia, and the 
                Republic of Palau.
                    ``(B) Ratable reductions.--If the sum appropriated 
                under the authority of section 214 and not reserved 
                under subsection (a) for any fiscal year is 
                insufficient to fully satisfy the aggregate of the 
                minimum allotments for all States for that purpose for 
                such year, each of such minimum allotments shall be 
                reduced ratably.
                    ``(C) Special rule.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this subsection and using 
                        funds allotted for the Republic of the Marshall 
                        Islands, the Federated States of Micronesia, 
                        and the Republic of Palau under this 
                        subsection, the Director shall award grants to 
                        Guam, American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, the Republic of the 
                        Marshall Islands, the Federated States of 
                        Micronesia, or the Republic of Palau to carry 
                        out activities described in this subtitle in 
                        accordance with the provisions of this subtitle 
                        that the Director determines are not 
                        inconsistent with this subparagraph.
                            ``(ii) Award basis.--The Director shall 
                        award grants pursuant to clause (i) on a 
                        competitive basis and pursuant to 
                        recommendations from the Pacific Region 
                        Educational Laboratory in Honolulu, Hawaii.
                            ``(iii) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        Republic of the Marshall Islands, the Federated 
                        States of Micronesia, and the Republic of Palau 
                        shall not receive any funds under this subtitle 
                        for any fiscal year that begins after September 
                        30, 2001.
                            ``(iv) Administrative costs.--The Director 
                        may provide not more than 5 percent of the 
                        funds made available for grants under this 
                        subparagraph to pay the administrative costs of 
                        the Pacific Region Educational Laboratory 
                        regarding activities assisted under this 
                        subparagraph.
            ``(4) Data.--The population of each State and of all the 
        States shall be determined by the Director on the basis of the 
        most recent data available from the Bureau of the Census.

``SEC. 222. ADMINISTRATION.

    ``(a) In General.--Not more than 4 percent of the total amount of 
funds received under this subtitle for any fiscal year by a State may 
be used for administrative costs.
    ``(b) Construction.--Nothing in this section shall be construed to 
limit spending for evaluation costs under section 224(c) from sources 
other than this subtitle.

``SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE OF EFFORT 
              REQUIREMENTS.

    ``(a) Payments.--Subject to appropriations provided pursuant to 
section 214, the Director shall pay to each State library 
administrative agency having a State plan approved under section 224 
the Federal share of the cost of the activities described in the State 
plan.
    ``(b) Federal Share.--
            ``(1) In general.--The Federal share shall be 66 percent.
            ``(2) Non-federal share.--The non-Federal share of payments 
        shall be provided from non-Federal, State, or local sources.
    ``(c) Maintenance of Effort.--
            ``(1) State expenditures.--
                    ``(A) Requirement.--
                            ``(i) In general.--The amount otherwise 
                        payable to a State for a fiscal year pursuant 
                        to an allotment under this chapter shall be 
                        reduced if the level of State expenditures, as 
                        described in paragraph (2), for the previous 
                        fiscal year is less than the average of the 
                        total of such expenditures for the 3 fiscal 
                        years preceding that previous fiscal year. The 
                        amount of the reduction in allotment for any 
                        fiscal year shall be equal to the amount by 
                        which the level of such State expenditures for 
                        the fiscal year for which the determination is 
                        made is less than the average of the total of 
                        such expenditures for the 3 fiscal years 
                        preceding the fiscal year for which the 
                        determination is made.
                            ``(ii) Calculation.--Any decrease in State 
                        expenditures resulting from the application of 
                        subparagraph (B) shall be excluded from the 
                        calculation of the average level of State 
                        expenditures for any 3-year period described in 
                        clause (i).
                    ``(B) Decrease in federal support.--If the amount 
                made available under this subtitle for a fiscal year is 
                less than the amount made available under this subtitle 
                for the preceding fiscal year, then the expenditures 
                required by subparagraph (A) for such preceding fiscal 
                year shall be decreased by the same percentage as the 
                percentage decrease in the amount so made available.
            ``(2) Level of state expenditures.--The level of State 
        expenditures for the purposes of paragraph (1) shall include 
        all State dollars expended by the State library administrative 
        agency for library programs that are consistent with the 
        purposes of this subtitle. All funds included in the 
        maintenance of effort calculation under this subsection shall 
        be expended during the fiscal year for which the determination 
        is made, and shall not include capital expenditures, special 
        one-time project costs, or similar windfalls.
            ``(3) Waiver.--The Director may waive the requirements of 
        paragraph (1) if the Director determines that such a waiver 
        would be equitable due to exceptional or uncontrollable 
        circumstances such as a natural disaster or a precipitous and 
        unforeseen decline in the financial resources of the State.

``SEC. 224. STATE PLANS.

    ``(a) State Plan Required.--
            ``(1) In general.--In order to be eligible to receive a 
        grant under this subtitle, a State library administrative 
        agency shall submit a State plan to the Director not later than 
        April 1, 1997.
            ``(2) Duration.--The State plan shall cover a period of 5 
        fiscal years.
            ``(3) Revisions.--If a State library administrative agency 
        makes a substantive revision to its State plan, then the State 
        library administrative agency shall submit to the Director an 
        amendment to the State plan containing such revision not later 
        than April 1 of the fiscal year preceding the fiscal year for 
        which the amendment will be effective.
    ``(b) Contents.--The State plan shall--
            ``(1) establish goals, and specify priorities, for the 
        State consistent with the purposes of this subtitle;
            ``(2) describe activities that are consistent with the 
        goals and priorities established under paragraph (1), the 
        purposes of this subtitle, and section 231, that the State 
        library administrative agency will carry out during such year 
        using such grant;
            ``(3) describe the procedures that such agency will use to 
        carry out the activities described in paragraph (2);
            ``(4) describe the methodology that such agency will use to 
        evaluate the success of the activities established under 
        paragraph (2) in achieving the goals and meeting the priorities 
        described in paragraph (1);
            ``(5) describe the procedures that such agency will use to 
        involve libraries and library users throughout the State in 
        policy decisions regarding implementation of this subtitle; and
            ``(6) provide assurances satisfactory to the Director that 
        such agency will make such reports, in such form and containing 
        such information, as the Director may reasonably require to 
        carry out this subtitle and to determine the extent to which 
        funds provided under this subtitle have been effective in 
        carrying out the purposes of this subtitle.
    ``(c) Evaluation and Report.--Each State library administrative 
agency receiving a grant under this subtitle shall independently 
evaluate, and report to the Director regarding, the activities assisted 
under this subtitle, prior to the end of the 5-year plan.
    ``(d) Information.--Each library receiving assistance under this 
subtitle shall submit to the State library administrative agency such 
information as such agency may require to meet the requirements of 
subsection (c).
    ``(e) Approval.--
            ``(1) In general.--The Director shall approve any State 
        plan under this subtitle that meets the requirements of this 
        subtitle and provides satisfactory assurances that the 
        provisions of such plan will be carried out.
            ``(2) Public availability.--Each State library 
        administrative agency receiving a grant under this subtitle 
        shall make the State plan available to the public.
            ``(3) Administration.--If the Director determines that the 
        State plan does not meet the requirements of this section, the 
        Director shall--
                    ``(A) immediately notify the State library 
                administrative agency of such determination and the 
                reasons for such determination;
                    ``(B) offer the State library administrative agency 
                the opportunity to revise its State plan;
                    ``(C) provide technical assistance in order to 
                assist the State library administrative agency in 
                meeting the requirements of this section; and
                    ``(D) provide the State library administrative 
                agency the opportunity for a hearing.

                     ``CHAPTER 2--LIBRARY PROGRAMS

``SEC. 231. GRANTS TO STATES.

    ``(a) In General.--Of the funds provided to a State library 
administrative agency under section 214, such agency shall expend, 
either directly or through subgrants or cooperative agreements, at 
least 96 percent of such funds for--
            ``(1) establishing or enhancing electronic linkages among 
        or between libraries and library consortia; and
            ``(2) targeting library and information services to persons 
        having difficulty using a library and to underserved urban and 
        rural communities, including children (from birth through age 
        17) from families with incomes below the poverty line (as 
        defined by the Office of Management and Budget and revised 
        annually in accordance with section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a 
        family of the size involved.
    ``(b) Special Rule.--Each State library administrative agency 
receiving funds under this chapter may apportion the funds available 
for the purposes described in subsection (a) between the two purposes 
described in paragraphs (1) and (2) of such subsection, as appropriate, 
to meet the needs of the individual State.

                 ``CHAPTER 3--ADMINISTRATIVE PROVISIONS

                   ``Subchapter A--State Requirements

``SEC. 251. STATE ADVISORY COUNCILS.

    ``Each State desiring assistance under this subtitle may establish 
a State advisory council which is broadly representative of the library 
entities in the State, including public, school, academic, special, and 
institutional libraries, and libraries serving individuals with 
disabilities.

                  ``Subchapter B--Federal Requirements

``SEC. 261. SERVICES FOR INDIAN TRIBES.

    ``From amounts reserved under section 221(a)(1)(A) for any fiscal 
year the Director shall award grants to organizations primarily serving 
and representing Indian tribes to enable such organizations to carry 
out the activities described in section 231.

``SEC. 262. NATIONAL LEADERSHIP GRANTS OR CONTRACTS.

    ``(a) In General.--From the amounts reserved under section 
221(a)(1)(B) for any fiscal year the Director shall establish and carry 
out a program awarding national leadership grants or contracts to 
enhance the quality of library services nationwide and to provide 
coordination between libraries and museums. Such grants or contracts 
shall be used for activities that may include--
            ``(1) education and training of persons in library and 
        information science, particularly in areas of new technology 
        and other critical needs, including graduate fellowships, 
        traineeships, institutes, or other programs;
            ``(2) research and demonstration projects related to the 
        improvement of libraries, education in library and information 
        science, enhancement of library services through effective and 
        efficient use of new technologies, and dissemination of 
        information derived from such projects;
            ``(3) preservation or digitization of library materials and 
        resources, giving priority to projects emphasizing 
        coordination, avoidance of duplication, and access by 
        researchers beyond the institution or library entity 
        undertaking the project; and
            ``(4) model programs demonstrating cooperative efforts 
        between libraries and museums.
    ``(b) Grants or Contracts.--
            ``(1) In general.--The Director may carry out the 
        activities described in subsection (a) by awarding grants to, 
        or entering into contracts with, libraries, agencies, 
        institutions of higher education, or museums, where 
        appropriate.
            ``(2) Competitive basis.--Grants and contracts under this 
        section shall be awarded on a competitive basis.
    ``(c) Special Rule.--The Director shall make every effort to ensure 
that activities assisted under this section are administered by 
appropriate library and museum professionals or experts.

``SEC. 263. STATE AND LOCAL INITIATIVES.

    ``Nothing in this subtitle shall be construed to interfere with 
State and local initiatives and responsibility in the conduct of 
library services. The administration of libraries, the selection of 
personnel and library books and materials, and insofar as consistent 
with the purposes of this subtitle, the determination of the best uses 
of the funds provided under this subtitle, shall be reserved for the 
States and their local subdivisions.

                     ``Subtitle C--Museum Services

``SEC. 271. PURPOSE.

    ``It is the purpose of this subtitle--
            ``(1) to encourage and assist museums in their educational 
        role, in conjunction with formal systems of elementary, 
        secondary, and postsecondary education, and with programs of 
        nonformal education for all age groups;
            ``(2) to assist museums in modernizing their methods and 
        facilities so that the museums are better able to conserve the 
        cultural, historic, and scientific heritage of the United 
        States; and
            ``(3) to ease the financial burden borne by museums as a 
        result of their increasing use by the public.

``SEC. 272. DEFINITIONS.

    ``As used in this subtitle:
            ``(1) Museum.--The term `museum' means a public or private 
        nonprofit agency or institution organized on a permanent basis 
        for essentially educational or aesthetic purposes, that 
        utilizes a professional staff, owns or utilizes tangible 
        objects, cares for the tangible objects, and exhibits the 
        tangible objects to the public on a regular basis.
            ``(2) State.--The term `State' means each of the 50 States 
        of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, the Republic of the Marshall Islands, the Federated 
        States of Micronesia, and the Republic of Palau.

``SEC. 273. MUSEUM SERVICES ACTIVITIES.

    ``(a) Grants.--The Director, subject to the policy direction of the 
Museum Board, may make grants to museums to pay for the Federal share 
of the cost of increasing and improving museum services, through such 
activities as--
            ``(1) programs that enable museums to construct or install 
        displays, interpretations, and exhibitions in order to improve 
        museum services provided to the public;
            ``(2) assisting museums in developing and maintaining 
        professionally trained or otherwise experienced staff to meet 
        the needs of the museums;
            ``(3) assisting museums in meeting the administrative costs 
        of preserving and maintaining the collections of the museums, 
        exhibiting the collections to the public, and providing 
        educational programs to the public through the use of the 
        collections;
            ``(4) assisting museums in cooperating with each other in 
        developing traveling exhibitions, meeting transportation costs, 
        and identifying and locating collections available for loan;
            ``(5) assisting museums in the conservation of their 
        collections;
            ``(6) developing and carrying out specialized programs for 
        specific segments of the public, such as programs for urban 
        neighborhoods, rural areas, Indian reservations, and penal and 
        other State institutions; and
            ``(7) model programs demonstrating cooperative efforts 
        between libraries and museums.
    ``(b) Contracts and Cooperative Agreements.--
            ``(1) Projects to strengthen museum services.--The 
        Director, subject to the policy direction of the Museum Board, 
        is authorized to enter into contracts and cooperative 
        agreements with appropriate entities, as determined by the 
        Director, to pay for the Federal share of enabling the entities 
        to undertake projects designed to strengthen museum services, 
        except that any contracts or cooperative agreements entered 
        into pursuant to this subsection shall be effective only to 
        such extent or in such amounts as are provided in 
        appropriations acts.
            ``(2) Limitation on amount.--The aggregate amount of 
        financial assistance made available under this subsection for a 
        fiscal year shall not exceed 15 percent of the amount 
        appropriated under this subtitle for such fiscal year.
            ``(3) Operational expenses.--No financial assistance may be 
        provided under this subsection to pay for operational expenses.
    ``(c) Federal Share.--
            ``(1) 50 percent.--Except as provided in paragraph (2), the 
        Federal share described in subsections (a) and (b) shall be not 
        more than 50 percent.
            ``(2) Greater than 50 percent.--The Director may use not 
        more than 20 percent of the funds made available under this 
        subtitle for a fiscal year to make grants under subsection (a), 
        or enter into contracts or agreements under subsection (b), for 
        which the Federal share may be greater than 50 percent.
    ``(d) Review and Evaluation.--The Director shall establish 
procedures for reviewing and evaluating grants, contracts, and 
cooperative agreements made or entered into under this subtitle. 
Procedures for reviewing grant applications or contracts and 
cooperative agreements for financial assistance under this subtitle 
shall not be subject to any review outside of the Institute.

``SEC. 274. AWARD.

    ``The Director, with the advice of the Museum Board, may annually 
award a National Award for Museum Service to outstanding museums that 
have made significant contributions in service to their communities.

``SEC. 275. NATIONAL MUSEUM SERVICES BOARD.

    ``(a) Establishment.--There is established in the Institute a 
National Museum Services Board.
    ``(b) Composition and Qualifications.--
            ``(1) Composition.--The Museum Board shall consist of the 
        Director and 14 members appointed by the President, by and with 
        the advice and consent of the Senate.
            ``(2) Qualifications.--The appointive members of the Museum 
        Board shall be selected from among citizens of the United 
        States--
                    ``(A) who are members of the general public;
                    ``(B) who are or have been affiliated with--
                            ``(i) resources that, collectively, are 
                        broadly representative of the curatorial, 
                        conservation, educational, and cultural 
                        resources of the United States; or
                            ``(ii) museums that, collectively, are 
                        broadly representative of various types of 
                        museums, including museums relating to science, 
                        history, technology, art, zoos, and botanical 
                        gardens; and
                    ``(C) who are recognized for their broad knowledge, 
                expertise, or experience in museums or commitment to 
                museums.
            ``(3) Geographic and other representation.--Members of the 
        Museum Board shall be appointed to reflect persons from various 
        geographic regions of the United States. The Museum Board may 
        not include, at any time, more than 3 members from a single 
        State. In making such appointments, the President shall give 
        due regard to equitable representation of women, minorities, 
        and persons with disabilities who are involved with museums.
    ``(c) Terms.--
            ``(1) In general.--Each appointive member of the Museum 
        Board shall serve for a term of 5 years, except that--
                    ``(A) of the members first appointed, 3 shall serve 
                for terms of 5 years, 3 shall serve for terms of 4 
                years, 3 shall serve for terms of 3 years, 3 shall 
                serve for terms of 2 years, and 2 shall serve for terms 
                of 1 year, as designated by the President at the time 
                of nomination for appointment; and
                    ``(B) any member appointed to fill a vacancy shall 
                serve for the remainder of the term for which the 
                predecessor of the member was appointed.
            ``(2) Reappointment.--No member of the Museum Board who has 
        been a member for more than 7 consecutive years shall be 
        eligible for reappointment.
            ``(3) Service until successor takes office.--
        Notwithstanding any other provision of this subsection, a 
        member of the Museum Board shall serve after the expiration of 
        the term of the member until the successor to the member takes 
        office.
    ``(d) Duties and Powers.--The Museum Board shall have the 
responsibility to advise the Director on general policies with respect 
to the duties, powers, and authority of the Institute relating to 
museum services, including general policies with respect to--
            ``(1) financial assistance awarded under this subtitle for 
        museum services; and
            ``(2) projects described in section 262(a)(4).
    ``(e) Chairperson.--The President shall designate 1 of the 
appointive members of the Museum Board as Chairperson of the Museum 
Board.
    ``(f) Meetings.--
            ``(1) In general.--The Museum Board shall meet--
                    ``(A) not less than 3 times each year, including--
                            ``(i) not less than 2 times each year 
                        separately; and
                            ``(ii) not less than 1 time each year in a 
                        joint meeting with the Commission, convened for 
                        purposes of making general policies with 
                        respect to financial assistance for projects 
                        described in section 262(a)(4); and
                    ``(B) at the call of the Director.
            ``(2) Vote.--All decisions by the Museum Board with respect 
        to the exercise of the duties and powers of the Museum Board 
        shall be made by a majority vote of the members of the Museum 
        Board who are present. All decisions by the Commission and the 
        Museum Board with respect to the policies described in 
        paragraph (1)(A)(ii) shall be made by a \2/3\ majority vote of 
        the total number of the members of the Commission and the 
        Museum Board who are present.
    ``(g) Quorum.--A majority of the members of the Museum Board shall 
constitute a quorum for the conduct of business at official meetings of 
the Museum Board, but a lesser number of members may hold hearings. A 
majority of the members of the Commission and a majority of the members 
of the Museum Board shall constitute a quorum for the conduct of 
business at official joint meetings of the Commission and the Museum 
Board.
    ``(h) Compensation and Travel Expenses.--
            ``(1) Compensation.--Each member of the Museum Board who is 
        not an officer or employee of the Federal Government may be 
        compensated at a rate to be fixed by the President, but not to 
        exceed the daily equivalent of the maximum rate authorized for 
        a position above grade GS-15 of the General Schedule under 
        section 5108 of title 5, United States Code, for each day 
        (including travel time) during which such member is engaged in 
        the performance of the duties of the Museum Board. All members 
        of the Museum Board who are officers or employees of the 
        Federal Government shall serve without compensation in addition 
        to compensation received for their services as officers or 
        employees of the Federal Government.
            ``(2) Travel expenses.--The members of the Museum Board may 
        be allowed travel expenses, including per diem in lieu of 
        subsistence, in the same amounts and to the same extent, as 
        authorized under section 5703 of title 5, United States Code, 
        for persons employed intermittently in Federal Government 
        service.
    ``(i) Coordination.--The Museum Board, with the advice of the 
Director, shall take steps to ensure that the policies and activities 
of the Institute are coordinated with other activities of the Federal 
Government.

``SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants.--For the purpose of carrying out this subtitle, there 
are authorized to be appropriated to the Director $28,700,000 for the 
fiscal year 1997, and such sums as may be necessary for each of the 
fiscal years 1998 through 2002.
    ``(b) Administration.--Not more than 10 percent of the funds 
appropriated under this section for a fiscal year may be used to pay 
for the administrative costs of carrying out this subtitle.
    ``(c) Sums Remaining Available.--Sums appropriated pursuant to 
subsection (a) for any fiscal year shall remain available for 
obligation until expended.''.

SEC. 212. NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE.

    (a) Functions.--Section 5 of the National Commission on Libraries 
and Information Science Act (20 U.S.C. 1504) is amended--
            (1) by redesignating subsections (b) through (d) as 
        subsections (d) through (f), respectively; and
            (2) by inserting after subsection (a) the following:
    ``(b) The Commission shall have the responsibility to advise the 
Director of the Institute of Museum and Library Services on general 
policies with respect to the duties, powers, and authority of the 
Institute of Museum and Library Services relating to library services, 
including--
            ``(1) general policies with respect to--
                    ``(A) financial assistance awarded under the Museum 
                and Library Services Act for library services; and
                    ``(B) projects described in section 262(a)(4) of 
                such Act; and
            ``(2) measures to ensure that the policies and activities 
        of the Institute of Museum and Library Services are coordinated 
        with other activities of the Federal Government.
    ``(c)(1) The Commission shall meet not less than 1 time each year 
in a joint meeting with the National Museum Services Board, convened 
for purposes of providing advice on general policy with respect to 
financial assistance for projects described in section 262(a)(4) of 
such Act.
    ``(2) All decisions by the Commission and the National Museum 
Services Board with respect to the advice on general policy described 
in paragraph (1) shall be made by a \2/3\ majority vote of the total 
number of the members of the Commission and the National Museum 
Services Board who are present.
    ``(3) A majority of the members of the Commission and a majority of 
the members of the National Museum Services Board shall constitute a 
quorum for the conduct of business at official joint meetings of the 
Commission and the National Museum Services Board.''.
    (b) Membership.--Section 6 of the National Commission on Libraries 
and Information Science Act (20 U.S.C. 1505) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``Librarian 
                of Congress'' and inserting ``Librarian of Congress, 
                the Director of the Institute of Museum and Library 
                Services (who shall serve as an ex officio, nonvoting 
                member),'';
                    (B) in the second sentence--
                            (i) by striking ``special competence or 
                        interest in'' and inserting ``special 
                        competence in or knowledge of''; and
                            (ii) by inserting before the period the 
                        following: ``and at least one other of whom 
                        shall be knowledgeable with respect to the 
                        library and information service and science 
                        needs of the elderly'';
                    (C) in the third sentence, by inserting 
                ``appointive'' before ``members''; and
                    (D) in the last sentence, by striking ``term and at 
                least'' and all that follows and inserting ``term.''; 
                and
            (2) in subsection (b), by striking ``the rate specified'' 
        and all that follows through ``and while'' and inserting ``the 
        daily equivalent of the maximum rate authorized for a position 
        above grade GS-15 of the General Schedule under section 5108 of 
        title 5, United States Code, for each day (including 
        traveltime) during which the members are engaged in the 
        business of the Commission. While''.

SEC. 213. TRANSFER OF FUNCTIONS FROM INSTITUTE OF MUSEUM SERVICES.

    (a) Definitions.--For purposes of this section, unless otherwise 
provided or indicated by the context--
            (1) the term ``Federal agency'' has the meaning given to 
        the term ``agency'' by section 551(1) of title 5, United States 
        Code;
            (2) the term ``function'' means any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program; and
            (3) the term ``office'' includes any office, 
        administration, agency, institute, unit, organizational entity, 
        or component thereof.
    (b) Transfer of Functions From the Institute of Museum Services and 
the Library Program Office.--There are transferred to the Director of 
the Institute of Museum and Library Services established under section 
203 of the Museum and Library Services Act--
            (1) all functions that the Director of the Institute of 
        Museum Services exercised before the date of enactment of this 
        section (including all related functions of any officer or 
        employee of the Institute of Museum Services); and
            (2) all functions that the Director of Library Programs in 
        the Office of Educational Research and Improvement in the 
        Department of Education exercised before the date of enactment 
        of this section and any related function of any officer or 
        employee of the Department of Education.
    (c) Determinations of Certain Functions by the Office of Management 
and Budget.--If necessary, the Office of Management and Budget shall 
make any determination of the functions that are transferred under 
subsection (b).
    (d) Delegation and Assignment.--Except where otherwise expressly 
prohibited by law or otherwise provided by this section, the Director 
of the Institute of Museum and Library Services may delegate any of the 
functions transferred to the Director of the Institute of Museum and 
Library Services by this section and any function transferred or 
granted to such Director of the Institute of Museum and Library 
Services after the effective date of this section to such officers and 
employees of the Institute of Museum and Library Services as the 
Director of the Institute of Museum and Library Services may designate, 
and may authorize successive redelegations of such functions as may be 
necessary or appropriate, except that any delegation of any such 
functions with respect to libraries shall be made to the Deputy 
Director of the Office of Library Services and with respect to museums 
shall be made to the Deputy Director of the Office of Museum Services. 
No delegation of functions by the Director of the Institute of Museum 
and Library Services under this section or under any other provision of 
this section shall relieve such Director of the Institute of Museum and 
Library Services of responsibility for the administration of such 
functions.
    (e) Reorganization.--The Director of the Institute of Museum and 
Library Services may allocate or reallocate any function transferred 
under subsection (b) among the officers of the Institute of Museum and 
Library Services, and may establish, consolidate, alter, or discontinue 
such organizational entities in the Institute of Museum and Library 
Services as may be necessary or appropriate.
    (f) Rules.--The Director of the Institute of Museum and Library 
Services may prescribe, in accordance with chapters 5 and 6 of title 5, 
United States Code, such rules and regulations as the Director of the 
Institute of Museum and Library Services determines to be necessary or 
appropriate to administer and manage the functions of the Institute of 
Museum and Library Services.
    (g) Transfer and Allocations of Appropriations and Personnel.--
Except as otherwise provided in this section, the personnel employed in 
connection with, and the assets, liabilities, contracts, property, 
records, and unexpended balances of appropriations, authorizations, 
allocations, and other funds employed, used, held, arising from, 
available to, or to be made available in connection with the functions 
transferred by this section, subject to section 1531 of title 31, 
United States Code, shall be transferred to the Institute of Museum and 
Library Services. Unexpended funds transferred pursuant to this 
subsection shall be used only for the purposes for which the funds were 
originally authorized and appropriated.
    (h) Incidental Transfers.--The Director of the Office of Management 
and Budget, at such time or times as the Director shall provide, may 
make such determinations as may be necessary with regard to the 
functions transferred by this section, and make such additional 
incidental dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out this section. The 
Director of the Office of Management and Budget shall provide for the 
termination of the affairs of all entities terminated by this section 
and for such further measures and dispositions as may be necessary to 
effectuate the purposes of this section.
    (i) Effect on Personnel.--
            (1) In general.--Except as otherwise provided by this 
        section, the transfer pursuant to this section of full-time 
        personnel (except special Government employees) and part-time 
        personnel holding permanent positions shall not cause any such 
        employee to be separated or reduced in grade or compensation 
        for 1 year after the date of transfer of such employee under 
        this section.
            (2) Executive schedule positions.--Except as otherwise 
        provided in this section, any person who, on the day preceding 
        the effective date of this section, held a position compensated 
        in accordance with the Executive Schedule prescribed in chapter 
        53 of title 5, United States Code, and who, without a break in 
        service, is appointed in the Institute of Museum and Library 
        Services to a position having duties comparable to the duties 
        performed immediately preceding such appointment shall continue 
        to be compensated in such new position at not less than the 
        rate provided for such previous position, for the duration of 
        the service of such person in such new position.
    (j) Savings Provisions.--
            (1) Continuing effect of legal documents.--All orders, 
        determinations, rules, regulations, permits, agreements, 
        grants, contracts, certificates, licenses, registrations, 
        privileges, and other administrative actions--
                    (A) that have been issued, made, granted, or 
                allowed to become effective by the President, any 
                Federal agency or official of a Federal agency, or by a 
                court of competent jurisdiction, in the performance of 
                functions that are transferred under this section; and
                    (B) that were in effect before the effective date 
                of this section, or were final before the effective 
                date of this section and are to become effective on or 
                after the effective date of this section;
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with law by the President, the Director of the 
        Institute of Museum and Library Services or other authorized 
        official, a court of competent jurisdiction, or by operation of 
        law.
            (2) Proceedings not affected.--This section shall not 
        affect any proceedings, including notices of proposed 
        rulemaking, or any application for any license, permit, 
        certificate, or financial assistance pending before the 
        Institute of Museum Services on the effective date of this 
        section, with respect to functions transferred by this section. 
        Such proceedings and applications shall be continued. Orders 
        shall be issued in such proceedings, appeals shall be taken 
        from the orders, and payments shall be made pursuant to the 
        orders, as if this section had not been enacted, and orders 
        issued in any such proceedings shall continue in effect until 
        modified, terminated, superseded, or revoked by a duly 
        authorized official, by a court of competent jurisdiction, or 
        by operation of law. Nothing in this paragraph shall be 
        construed to prohibit the discontinuance or modification of any 
        such proceeding under the same terms and conditions and to the 
        same extent that such proceeding could have been discontinued 
        or modified if this section had not been enacted.
            (3) Suits not affected.--This section shall not affect 
        suits commenced before the effective date of this section, and 
        in all such suits, proceedings shall be had, appeals taken, and 
        judgments rendered in the same manner and with the same effect 
        as if this section had not been enacted.
            (4) Nonabatement of actions.--No suit, action, or other 
        proceeding commenced by or against the Institute of Museum 
        Services, or by or against any individual in the official 
        capacity of such individual as an officer of the Institute of 
        Museum Services, shall abate by reason of the enactment of this 
        section.
            (5) Administrative actions relating to promulgation of 
        regulations.--Any administrative action relating to the 
        preparation or promulgation of a regulation by the Institute of 
        Museum Services relating to a function transferred under this 
        section may be continued by the Institute of Museum and Library 
        Services with the same effect as if this section had not been 
        enacted.
    (k) Transition.--The Director of the Institute of Museum and 
Library Services may utilize--
            (1) the services of such officers, employees, and other 
        personnel of the Institute of Museum Services with respect to 
        functions transferred to the Institute of Museum and Library 
        Services by this section; and
            (2) funds appropriated to such functions for such period of 
        time as may reasonably be needed to facilitate the orderly 
        implementation of this section.
    (l) References.--A reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or relating to--
            (1) the Director of the Institute of Museum Services with 
        regard to functions transferred under subsection (b), shall be 
        deemed to refer to the Director of the Institute of Museum and 
        Library Services; and
            (2) the Institute of Museum Services with regard to 
        functions transferred under subsection (b), shall be deemed to 
        refer to the Institute of Museum and Library Services.
    (m) Additional Conforming Amendments.--
            (1) Recommended legislation.--After consultation with the 
        appropriate committees of Congress and the Director of the 
        Office of Management and Budget, the Director of the Institute 
        of Museum and Library Services shall prepare and submit to the 
        appropriate committees of Congress recommended legislation 
        containing technical and conforming amendments to reflect the 
        changes made by this section.
            (2) Submission to congress.--Not later than 6 months after 
        the effective date of this section, the Director of the 
        Institute of Museum and Library Services shall submit to the 
        appropriate committees of Congress the recommended legislation 
        referred to under paragraph (1).

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

    Notwithstanding section 204 of the Museum and Library Services Act, 
the individual who was appointed to the position of Director of the 
Institute of Museum Services under section 205 of the Museum Services 
Act (as such section was in effect on the day before the date of 
enactment of this Act) and who is serving in such position on the day 
before the date of enactment of this Act shall serve as the first 
Director of the Institute of Museum and Library Services under section 
204 of the Museum and Library Services Act (as added by section 211 of 
this title), and shall serve at the pleasure of the President.

SEC. 215. CONSIDERATION.

    Consistent with title 5, United States Code, in appointing 
employees of the Office of Library Services, the Director of the 
Institute of Museum and Library Services shall give strong 
consideration to individuals with experience in administering State-
based and national library and information services programs.

SEC. 216. TRANSITION AND TRANSFER OF FUNDS.

    (a) Transition.--The Director of the Office of Management and 
Budget shall take appropriate measures to ensure an orderly transition 
from the activities previously administered by the Director of Library 
Programs in the Office of Educational Research and Improvement in the 
Department of Education to the activities administered by the Institute 
for Museum and Library Services under this title. Such measures may 
include the transfer of appropriated funds.
    (b) Transfer.--The Secretary of Education shall transfer to the 
Director the amount of funds necessary to ensure the orderly transition 
from activities previously administered by the Director of the Office 
of Library Programs in the Office of Educational Research and 
Improvement in the Department of Education to the activities 
administered by the Institute for Museum and Library Services. In no 
event shall the amount of funds transferred pursuant to the preceding 
sentence be less than $200,000.

                      TITLE III--HIGHER EDUCATION

                       Subtitle A--Debt Reduction

SEC. 301. UNSUBSIDIZED STUDENT LOANS.

    (a) Amendment.--Paragraph (1) of section 428H(f) of the Higher 
Education Act of 1965 (20 U.S.C. 1078-8(f)(1)) is amended to read as 
follows:
            ``(1) Amount of origination fee.--Except as provided in 
        paragraph (5), an origination fee shall be paid to the 
        Secretary with respect to each loan under this section in the 
        amount of 3.0 percent of the principal amount of the loan. Each 
        lender under this section is authorized to charge the borrower 
        for such origination fee, provided that the lender assesses the 
        same fee to all student borrowers. Any such fee charged to the 
        borrower shall be deducted proportionately from each 
        installment payment of the proceeds of the loan prior to 
        payment to the borrower.''.
    (b) Conforming Amendments.--Section 428H(f) of such Act is further 
amended--
            (1) in paragraph (3), by striking ``the origination fee'' 
        and inserting ``any origination fee that is charged to the 
        borrower'';
            (2) in paragraph (4), by striking ``origination fees 
        authorized to be collected from borrowers'' and inserting 
        ``origination fees required under paragraph (1)''; and
            (3) by adding at the end the following new paragraph:
            ``(6) Exception.--Notwithstanding paragraph (1), a lender 
        may assess a lesser origination fee for a borrower 
        demonstrating greater financial need as determined by such 
        borrower's adjusted gross family income.''.
    (c) Report on Competitive Allocation.--Within 60 days after the 
date of enactment of this Act, the Secretary of Education shall submit 
to each House of the Congress a legislative proposal that would permit 
the Secretary to allocate the right to make subsidized and unsubsidized 
student loans on the basis of competitive bidding. Such proposal shall 
include provision to ensure that any payments received from such 
competitive bidding are equally allocated to deficit reduction and to 
pro rata reduction of origination fees in both guaranteed and direct 
student loans.

SEC. 302. STUDY OF LOAN FEES.

    (a) Study Required.--The Secretary of Education shall conduct a 
statistical analysis of the subsidized and unsubsidized student loan 
programs under part B of title IV of the Higher Education Act of 1965 
to gather data on lenders' use of loan fees and to determine if there 
are any anomalies that would indicate any institutional, programmatic 
or socioeconomic discrimination in the assessing or waiving such fees.
    (b) Report.--The Secretary of Education shall submit to each House 
of the Congress a report on the study required by subsection (a) within 
2 years after the date of enactment of this Act.
    (c) Statistical Characteristics To Be Studied.--In conducting the 
study required by subsection (a), the Secretary of Education shall 
compare recipients of loans on the basis of income, residence location, 
type and location of higher education, program of instruction and type 
of lender.

             Subtitle B--Financial Responsibility Standards

SEC. 311. EXTENSION OF PUBLIC COMMENT PERIOD.

    The Secretary of Education shall extend until December 1, 1996, the 
period for public comment on rules published in the Federal Register on 
September 20, 1996 (61 Fed. Reg. 49552), relating to financial 
responsibility standards for institutions participating in higher 
education programs (34 C.F.R. part 668). The Secretary shall publish 
such rules in final form by February 1, 1997. Notwithstanding section 
482(c) of the Higher Education Act of 1965 (20 U.S.C. 1089(c)), such 
rules shall, if so published by such date, be effective for award year 
1997-98.
            Attest:

                                                                 Clerk.
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