Calendar No. 181

104TH CONGRESS

1ST SESSION S. 856

[Report No. 104–135]

A BILL

To amend the National Foundation on the Arts

other purposes.nity Act to improve and extend the Acts, and forServices Act, and the Acts and Artifacts Indemand the Humanities Act of 1965, the Museum

AUGUST 30, 1995

Reported with an amendment and an amendment to the

title
II

Calendar No. 181

104TH CONGRESS

1ST SESSION S. 856

[Report No. 104–135]

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

of 1965, the Museum Services Act, and the Acts and Artifacts Indemnity

Act to improve and extend the Acts, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 25 (legislative day, MAY 15), 1995

Mr. JEFFORDS (for himself, Mrs. KASSEBAUM, Mr. KENNEDY, Mr. PELL, Mr.

SIMPSON, and Mr. DODD) introduced the following bill; which was read

twice and referred to the Committee on Labor and Human Resources

AUGUST 30, 1995

Reported under authority of the order of the Senate of August 11 (legislative

day, July 10), 1995, by Mrs. KASSEBAUM, with an amendment and an

amendment to the title

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To amend the National Foundation on the Arts and the

Humanities Act of 1965, the Museum Services Act, and

the Acts and Artifacts Indemnity Act to improve and

extend the Acts, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

•S 856 RS

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Arts, Humanities, and

3 Museums Amendments of 1995’’.

4 TITLE I—NATIONAL FOUNDA5 TION ON THE ARTS AND THE

6 HUMANITIES ACT OF 1965

7 SEC. 101. NATIONAL FOUNDATION ON THE ARTS AND THE

8 HUMANITIES.

9 The National Foundation on the Arts and the Hu10 manities Act of 1965 (20 U.S.C. 951 et seq.) is amended

11 to read as follows:

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

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

14 ‘National Foundation on the Arts and the Humanities Act

15 of 1965’.

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

17 is as follows:

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

‘‘Sec. 2. Purposes.

‘‘Sec. 3. Definitions.

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

HUMANITIES

‘‘Sec. 101. Establishment of the National Foundation on the Arts and the

Humanities.

‘‘Sec. 102. General limitations on grants.

‘‘Sec. 103. Joint administration.

‘‘Sec. 104. Authorization of appropriations.

‘‘TITLE II—NATIONAL ENDOWMENT FOR THE ARTS

‘‘Sec. 201. Definitions.

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

‘‘Sec. 203. Application procedures.

‘‘Sec. 204. Advisory panels.
3

•S 856 RS

‘‘Sec. 205. National Council on the Arts.

‘‘Sec. 206. Limitations on grants.

‘‘Sec. 207. Administrative provisions.

‘‘Sec. 208. Reports.

‘‘Sec. 209. Sanctions and payments.

‘‘Sec. 210. Awards.

‘‘TITLE III—NATIONAL ENDOWMENT FOR THE HUMANITIES

‘‘Sec. 301. Definitions.

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

‘‘Sec. 303. Application procedures.

‘‘Sec. 304. Review panels.

‘‘Sec. 305. National Council on the Humanities.

‘‘Sec. 306. Limitations on grants.

‘‘Sec. 307. Administrative provisions.

‘‘Sec. 308. Reports.

‘‘Sec. 309. Sanctions and payments.

‘‘Sec. 310. Awards.

1 ‘‘SEC. 2. PURPOSES.

2 ‘‘The purposes of this Act are—

3 ‘‘(1)(A) to ensure that the arts and the human4 ities belong to all the people of the United States;

5 and

6 ‘‘(B) to support the arts and the humanities

7 that are essential to social, cultural, and economic

8 progress;

9 ‘‘(2) to encourage and support national

10 progress and scholarship in the arts and the human11 ities, because such encouragement and support,

12 while primarily matters for private and local initia13 tive, are also appropriate matters of concern for the

14 Federal Government;

15 ‘‘(3) to ensure that the United States, as an ad16 vanced civilization, does not limit its efforts to

17 science and technology alone but gives full value and
4

•S 856 RS

1 support to the other great branches of scholarly and

2 cultural activity in order to achieve a better under3 standing of the past, a better analysis of the

4 present, and a better view of the future;

5 ‘‘(4) to further the advancement of the arts and

6 the humanities and the access of all citizens of the

7 United States to the arts and the humanities, in

8 partnership with local, State, regional, and private

9 agencies, organizations, and individuals;

10 ‘‘(5) in furthering the advancement and access

11 described in paragraph (4), to be sensitive to the na12 ture of public support and the need to use public

13 funding in a manner that recognizes the responsibil14 ity of the Federal Government to the public good;

15 ‘‘(6) to ensure that public funds provided by the

16 Federal Government ultimately serve the public pur17 poses the Congress defines and are subject to the

18 conditions that traditionally govern the use of public

19 money;

20 ‘‘(7) to ensure that—

21 ‘‘(A) Federal support of the arts and the

22 humanities reflects the high place accorded by

23 the people of the United States to the Nation’s

24 rich cultural heritage; and
5

•S 856 RS

1 ‘‘(B) public funding of the arts and the hu2 manities contributes to public support for and

3 confidence in the use of taxpayer funds;

4 ‘‘(8)(A) to support the practice of art and the

5 study of the humanities, which require constant

6 dedication and devotion; and

7 ‘‘(B) while recognizing that no government can

8 create a great artist or scholar, to help create and

9 sustain not only a climate encouraging freedom of

10 thought, imagination, and inquiry, but also the ma11 terial conditions facilitating the release of creative

12 talent;

13 ‘‘(9)(A) to ensure that United States students

14 receive in school, background and preparation in the

15 arts and the humanities to enable the students to

16 recognize and appreciate the aesthetic dimensions of

17 their lives, the cultural heritage of the United

18 States, and the full potential of artistic and scholarly

19 expression; and

20 ‘‘(B) to increase access to the arts and the hu21 manities for all persons in the United States, includ22 ing diverse cultures and urban and rural popu23 lations, by—

24 ‘‘(i) encouraging and developing quality

25 education in the arts and the humanities at all
6

•S 856 RS

1 levels, in conjunction with programs of lifelong

2 learning in the arts and the humanities for all

3 age groups and with formal systems of elemen4 tary, secondary, and postsecondary education;

5 and

6 ‘‘(ii) encouraging and facilitating the work

7 of scholars, artists, arts institutions, and Fed8 eral, State, regional, and local agencies in the

9 area of education in the arts and the human10 ities.

11 ‘‘SEC. 3. DEFINITIONS.

12 ‘‘As used in this Act:

13 ‘‘(1) ARTS.—The term ‘arts’ includes—

14 ‘‘(A) dance, design, literature, media,

15 music, opera, theater, and visual arts;

16 ‘‘(B) folk and traditional arts practiced by

17 the diverse peoples of the United States; and

18 ‘‘(C) the presentation, performance, execu19 tion, exhibition, and study of the arts described

20 in subparagraph (A) or (B), including study of

21 the arts through apprenticeships, internships,

22 and other career oriented work-study experi23 ences for artists and art teachers, and

24 residencies for artists at all educational levels.
7

•S 856 RS

1 ‘‘(2) GRANT.—The term ‘grant’ includes a loan,

2 a contract, and a cooperative agreement.

3 ‘‘(3) GROUP.—The term ‘group’ includes any

4 State or other public agency, and any nonprofit or5 ganization in the United States, whether or not in6 corporated.

7 ‘‘(4) HUMANITIES.—The term ‘humanities’ in8 cludes—

9 ‘‘(A) the study and interpretation of—

10 ‘‘(i) language, both modern and classi11 cal, linguistics, literature, history, jurispru12 dence, philosophy, archaeology, compara13 tive religion, and ethics;

14 ‘‘(ii) the history, criticism, and theory

15 of the arts;

16 ‘‘(iii) folklore and folklife; and

17 ‘‘(iv) the aspects of the social sciences

18 that have humanistic content and employ

19 humanistic methods; and

20 ‘‘(B) the study and application of the hu21 manities described in subparagraph (A) to the

22 human environment with particular attention

23 to—

24 ‘‘(i) reflecting the heritage, traditions,

25 and history of the United States; and
8

•S 856 RS

1 ‘‘(ii) the relevance of the humanities

2 described in subparagraph (A) to the con3 ditions of national life.

4 ‘‘(5) PROGRAM INCOME.—

5 ‘‘(A) IN GENERAL.—The term ‘program

6 income’ means any money that is earned or re7 ceived, by a recipient of a grant made under

8 title II or III, from an activity supported by the

9 funds made available through the grant or from

10 a product resulting from or related to an activ11 ity carried out under the grant.

12 ‘‘(B) TYPES OF INCOME.—The term in13 cludes—

14 ‘‘(i) income from a fee for service per15 formed, or from the sale of an item cre16 ated, under the grant;

17 ‘‘(ii) income from a licensing fee on a

18 product related to an activity carried out

19 under the grant;

20 ‘‘(iii) a usage or rental fee for equip21 ment or property acquired under the grant;

22 ‘‘(iv) an admission fee for an activity

23 carried out under the grant;

24 ‘‘(v) income from a broadcast or dis25 tribution right for such an activity; and
9

•S 856 RS

1 ‘‘(vi) a royalty on a patent or copy2 right for such an activity.

3 ‘‘(6) REGIONAL GROUP.—The term ‘regional

4 group’ means any multistate group, whether or not

5 representative of contiguous States.

6 ‘‘(7) STATE.—The term ‘State’ includes, in ad7 dition to the several States of the United States, the

8 Commonwealth of Puerto Rico, the District of Co9 lumbia, Guam, American Samoa, the Commonwealth

10 of the Northern Mariana Islands, and the Virgin Is11 lands.

12 ‘‘TITLE I—NATIONAL FOUNDA13 TION ON THE ARTS AND THE

14 HUMANITIES

15 ‘‘SEC. 101. ESTABLISHMENT OF THE NATIONAL FOUNDA16 TION ON THE ARTS AND THE HUMANITIES.

17 ‘‘(a) ESTABLISHMENT.—There is established a Na18 tional Foundation on the Arts and the Humanities (re19 ferred to in this Act as the ‘Foundation’), which shall be

20 composed of a National Endowment for the Arts, a Na21 tional Endowment for the Humanities (each of which may

22 be referred to in this section as an ‘Endowment’), and an

23 Institute of Museum and Library Services.
10

•S 856 RS

1 ‘‘(b) PURPOSE.—The purpose of the Foundation

2 shall be to develop and promote a national policy of sup3 port for the arts and the humanities in the United States.

4 ‘‘(c) LIMITATION.—In the administration of this Act

5 no department, agency, officer, or employee of the United

6 States shall exercise any direction, supervision, or control

7 over the policy determination, personnel, or curriculum, or

8 the administration or operation of any school or other non9 Federal agency, institution, organization, or association.

10 ‘‘(d) DONATIONS, BEQUESTS, AND DEVISES.—

11 ‘‘(1) IN GENERAL.—In any case in which any

12 money or other property is donated, bequeathed, or

13 devised to the Foundation without designation of the

14 Endowment for the benefit of which the money or

15 property is intended, each Chairperson of an Endow16 ment shall have authority to receive such money or

17 property.

18 ‘‘(2) UNRESTRICTED DONATIONS, BEQUESTS,

19 AND DEVISES.—Except as provided in paragraph

20 (3), unless the Chairpersons of the Endowments

21 agree otherwise, the money or property shall be

22 deemed to have been donated, bequeathed, or de23 vised in equal shares to each Endowment.

24 ‘‘(3) RESTRICTED DONATIONS, BEQUESTS, AND

25 DEVISES.—In any case in which any money or prop-
11

•S 856 RS

1 erty is donated, bequeathed, or devised to the Foun2 dation with a condition or restriction, such money or

3 property shall be deemed to have been donated, be4 queathed, or devised to the Endowment whose func5 tion it is to carry out the purposes of the condition

6 or restriction.

7 ‘‘(e) TAX LAWS.—For the purposes of the income

8 tax, gift tax, and estate tax laws of the United States,

9 any money or other property donated, bequeathed, or de10 vised to the Foundation or one of the Endowments and

11 received by the Chairperson of an Endowment pursuant

12 to this section, section 207, or section 307 shall be deemed

13 to have been donated, bequeathed, or devised to or for the

14 use of the United States.

15 ‘‘SEC. 102. GENERAL LIMITATIONS ON GRANTS.

16 ‘‘None of the grants awarded under this Act shall be

17 used for the purposes of lobbying or for providing general

18 membership services for groups.

19 ‘‘SEC. 103. JOINT ADMINISTRATION.

20 ‘‘(a) INSPECTOR GENERAL.—There shall be in the

21 Foundation a single Office of the Inspector General for

22 the National Endowment for the Arts and the National

23 Endowment for the Humanities. The Office shall be head24 ed by 1 Inspector General appointed in accordance with

25 the Inspector General Act of 1978 (5 U.S.C. App.). The
12

•S 856 RS

1 Inspector General shall carry out the duties prescribed in

2 such Act, including conducting appropriate reviews to en3 sure that recipients of grants under titles II and III com4 ply with the applicable regulations and procedures estab5 lished under this Act, including regulations relating to ac6 counting and financial matters.

7 ‘‘(b) REPORTING.—The Inspector General for the

8 National Endowment for the Arts and the National En9 dowment for the Humanities shall report—

10 ‘‘(1) to the Chairperson of the National Endow11 ment for the Arts with respect to matters relating

12 to the National Endowment for the Arts; and

13 ‘‘(2) to the Chairperson of the National Endow14 ment for the Humanities with respect to matters re15 lating to the Chairperson of the National Endow16 ment for the Humanities.

17 ‘‘(c) OTHER FUNCTIONS.—The Chairperson of the

18 National Endowment for the Arts and Chairperson of the

19 National Endowment for the Humanities shall ensure non20 duplication of administrative functions, such as provision

21 of facilities and space, records management, contracting,

22 procurement, printing, and provision of mail and library

23 services. The Chairpersons shall enter into an interagency

24 agreement to jointly carry out the functions with the mini25 mum necessary expense.
13

•S 856 RS

1 ‘‘(d) REPORT.—Not later than 60 days after the date

2 of enactment of the Arts, Humanities, and Museums

3 Amendments of 1995, the Chairperson of the National

4 Endowment for the Arts and the Chairperson of the Na5 tional Endowment for the Humanities shall jointly prepare

6 and submit to the appropriate committees of Congress a

7 report containing a plan that describes the manner in

8 which the Chairpersons will jointly carry out the functions

9 described in subsection (c). Not later than 180 days after

10 such date of enactment, the Chairpersons shall implement

11 the plan.

12 ‘‘SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘(a) NATIONAL ENDOWMENT FOR THE ARTS.—

14 ‘‘(1) IN GENERAL.—

15 ‘‘(A) GRANT PROGRAMS.—For the purpose

16 of making grants under subsections (c), (d),

17 and (e) of section 202, there are authorized to

18 be appropriated to the National Endowment for

19 the Arts $139,710,000 for fiscal year 1996,

20 $136,910,000 for fiscal year 1997,

21 $134,270,000 for fiscal year 1998,

22 $131,500,000 for fiscal year 1999, and

23 $128,870,000 for fiscal year 2000.

24 ‘‘(B) RESERVATION FOR PARTNERSHIP

25 GRANTS.—40 percent of the amount appro-
14

•S 856 RS

1 priated for a fiscal year under subparagraph

2 (A) shall be reserved for making grants under

3 section 202(c).

4 ‘‘(C) RESERVATION FOR NATIONAL SIG5 NIFICANCE GRANTS.—40 percent of the amount

6 appropriated for a fiscal year under subpara7 graph (A) shall be reserved for making grants

8 under section 202(d).

9 ‘‘(D) RESERVATION FOR DIRECT

10 GRANTS.—20 percent of the amount appro11 priated for a fiscal year under subparagraph

12 (A) shall be reserved for making grants under

13 section 202(e).

14 ‘‘(2) APPROPRIATIONS BASED ON DONA15 TIONS.—There are authorized to be appropriated to

16 the National Endowment for the Arts for each of fis17 cal years 1996 through 2000, an additional amount,

18 equal to the sum of—

19 ‘‘(A) the total amounts received by the Na20 tional Endowment for the Arts under section

21 207(a)(2), including the value of property do22 nated, bequeathed, or devised to the National

23 Endowment for the Arts, and any interest

24 earned on the amounts, for use in carrying out

25 projects and other activities under title II; and
15

•S 856 RS

1 ‘‘(B) the total amounts received by the

2 grant recipients under title II from non-Federal

3 sources, including the value of property do4 nated, bequeathed, or devised to such recipi5 ents, for use in making grants to carry out

6 projects and other activities under title II;

7 except that the amounts so appropriated to the Na8 tional Endowment for the Arts shall not exceed

9 $10,000,000 for fiscal year 1996 and such sums as

10 may be necessary for each of fiscal years 1997

11 through 2000.

12 ‘‘(3) GUIDELINES.—The Chairperson shall

13 issue guidelines to implement the provisions of para14 graph (2). Such guidelines shall be consistent with

15 the requirements of title II, regarding the Federal

16 share of the cost of activities carried out under title

17 II.

18 ‘‘(4) SUMS REMAINING AVAILABLE.—Sums ap19 propriated pursuant to paragraph (1) or (2) for any

20 fiscal year shall remain available for obligation until

21 expended.

22 ‘‘(5) TOTAL AUTHORIZATION.—There are au23 thorized to be appropriated to carry out the activi24 ties of the National Endowment for the Arts under

25 this Act, including amounts described in paragraph
16

•S 856 RS

1 (1) or (2), or in subsection (c)(1), $158,760,000 for

2 fiscal year 1996, $155,580,000 for fiscal year 1997,

3 $152,470,000 for fiscal year 1998, $149,430,000 for

4 fiscal year 1999, and $146,440,000 for fiscal year

5 2000.

6 ‘‘(b) NATIONAL ENDOWMENT FOR THE HUMAN7 ITIES.—

8 ‘‘(1) IN GENERAL.—

9 ‘‘(A) GRANT PROGRAMS.—For the purpose

10 of making grants under subsections (c), (d),

11 and (e) of section 302, there are authorized to

12 be appropriated to the National Endowment for

13 the Humanities, $148,330,000 for fiscal year

14 1996, $145,370,000 for fiscal year 1997,

15 $142,470,000 for fiscal year 1998,

16 $139,620,000 for fiscal year 1999, and

17 $136,820,000 for fiscal year 2000.

18 ‘‘(B) RESERVATION FOR PARTNERSHIP

19 GRANTS.—25 percent of the amount appro20 priated for a fiscal year under subparagraph

21 (A) shall be reserved for making grants under

22 section 302(c).

23 ‘‘(C) RESERVATION FOR NATIONAL

24 GRANTS.—37.5 percent of the amount appro25 priated for a fiscal year under subparagraph
17

•S 856 RS

1 (A) shall be reserved for making grants under

2 section 302(d).

3 ‘‘(D) RESERVATION FOR RESEARCH AND

4 SCHOLARSHIP GRANTS.—37.5 percent of the

5 amount appropriated for a fiscal year under

6 subparagraph (A) shall be reserved for making

7 grants under section 302(e).

8 ‘‘(2) APPROPRIATIONS BASED ON DONA9 TIONS.—There are authorized to be appropriated to

10 the National Endowment for the Humanities for

11 each of fiscal years 1996 through 2000, an addi12 tional amount equal to the sum of—

13 ‘‘(A) the total amounts received by the Na14 tional Endowment for the Humanities under

15 section 307(a)(2), including the value of prop16 erty donated, bequeathed, or devised to the Na17 tional Endowment for the Humanities, and any

18 interest earned on the amounts, for use in car19 rying out activities under title III; and

20 ‘‘(B) the total amounts received by the

21 grant recipients under title III from non-Fed22 eral sources, including the value of property do23 nated, bequeathed, or devised to such recipi24 ents, for use in carrying out activities under

25 title III;
18

•S 856 RS

1 except that the amounts so appropriated to the Na2 tional Endowment for the Humanities shall not ex3 ceed $10,000,000 for fiscal year 1996 and such

4 sums as may be necessary for each of fiscal years

5 1997 through 2000.

6 ‘‘(3) GUIDELINES.—The Chairperson shall

7 issue guidelines to implement the provisions of para8 graph (2). Such guidelines shall be consistent with

9 the requirements of title III, regarding the Federal

10 share of the cost of activities carried out under title

11 III.

12 ‘‘(4) SUMS REMAINING AVAILABLE.—Sums ap13 propriated pursuant to paragraph (1) or (2) for any

14 fiscal year shall remain available for obligation until

15 expended.

16 ‘‘(5) TOTAL AUTHORIZATION.—There are au17 thorized to be appropriated to carry out the activi18 ties of the National Endowment for the Humanities

19 under this Act, including amounts described in para20 graph (1) or (2), or in subsection (c)(2),

21 $168,560,000 for fiscal year 1996, $165,190,000 for

22 fiscal year 1997, $161,890,000 for fiscal year 1998,

23 $158,660,000 for fiscal year 1999, and

24 $155,490,000 for fiscal year 2000.

25 ‘‘(c) ADMINISTRATION.—
19

•S 856 RS

1 ‘‘(1) NATIONAL ENDOWMENT FOR THE ARTS.—

2 Not more than 12 percent of the amount appro3 priated for a fiscal year under subsection (a)(5) may

4 be made available for the costs of administering title

5 II, or any other program for which the Chairperson

6 of the National Endowment for the Arts is respon7 sible, of which—

8 ‘‘(A) not more than $100,000 shall be

9 made available for the President’s Committee

10 on the Arts and the Humanities, none of which

11 may be used to reimburse members of the Com12 mittee for travel and related expenses; and

13 ‘‘(B) not to exceed $100,000 shall be made

14 available for fiscal year 1996 from amounts re15 ceived under section 207(a)(2) for official re16 ception and representation expenses and not to

17 exceed $50,000 shall be made available for each

18 subsequent fiscal year from such amounts for

19 such expenses.

20 ‘‘(2) NATIONAL ENDOWMENT FOR THE HUMAN21 ITIES.—Not more than 12 percent of the amount

22 appropriated for a fiscal year under subsection

23 (b)(5) may be made available for the costs of admin24 istering title III, or any other program for which the
20

•S 856 RS

1 Chairperson of the National Endowment for the Hu2 manities is responsible, of which—

3 ‘‘(A) not more than $100,000 shall be

4 made available for the President’s Committee

5 on the Arts and the Humanities, none of which

6 may be used to reimburse members of the Com7 mittee for travel and related expenses; and

8 ‘‘(B) not to exceed $100,000 shall be made

9 available for fiscal year 1996 from amounts re10 ceived under section 307(a)(2) for official re11 ception and representation expenses and not to

12 exceed $50,000 shall be made available for each

13 subsequent fiscal year from such amounts for

14 such expenses.

15 ‘‘TITLE II—NATIONAL

16 ENDOWMENT FOR THE ARTS

17 ‘‘SEC. 201. DEFINITIONS.

18 ‘‘As used in this title:

19 ‘‘(1) DEVELOPING ARTS ORGANIZATION.—The

20 term ‘developing arts organization’ means a local

21 arts organization of high artistic promise that—

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

23 arts programming in a community; and
21

•S 856 RS

1 ‘‘(B) has the potential to broaden public

2 access to the arts in rural and inner city areas

3 and other artistically underserved areas.

4 ‘‘(2) FINAL JUDGMENT.—The term ‘final judg5 ment’ means a judgment that is either—

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

7 has authority to review such judgment; or

8 ‘‘(B) is not reviewable by any other court.

9 ‘‘(3) LOCAL ARTS AGENCY.—The term ‘local

10 arts agency’ means a community organization, or an

11 agency of local government, that primarily provides

12 financial support, services, or other programs for

13 artists and arts organizations, for the benefit of the

14 community as a whole.

15 ‘‘(4) OBSCENE; DETERMINED TO BE OB16 SCENE.—

17 ‘‘(A) OBSCENE.—The term ‘obscene’

18 means, with respect to a project, production, or

19 workshop that—

20 ‘‘(i) the average person, applying con21 temporary community standards, would

22 find that such project, production, or work23 shop, when taken as a whole, appeals to

24 the prurient interest;
22

•S 856 RS

1 ‘‘(ii) such project, production, or

2 workshop depicts or describes sexual con3 duct in a patently offensive way; and

4 ‘‘(iii) such project, production, or

5 workshop, when taken as a whole, lacks se6 rious literary, artistic, political or scientific

7 value.

8 ‘‘(B) DETERMINED TO BE OBSCENE.—The

9 term ‘determined to be obscene’ means deter10 mined, in a final judgment of a court of record

11 and of competent jurisdiction in the United

12 States, to be obscene.

13 ‘‘(5) PRODUCTION.—The term ‘production’

14 means any activity involving the execution or ren15 dition of the arts and meeting such standards as

16 may be approved by the Chairperson of the Endow17 ment.

18 ‘‘(6) PROJECT.—

19 ‘‘(A) IN GENERAL.—The term ‘project’

20 means a program organized to carry out the ob21 jectives of this Act, including a program to fos22 ter United States artistic creativity, to commis23 sion a work of art, or to develop and enhance

24 the widest public access, knowledge, and under25 standing of the arts, and includes, where appro-
23

•S 856 RS

1 priate, rental or purchase of a facility, rental or

2 purchase of land, and acquisition of equipment.

3 ‘‘(B) RENOVATION OR CONSTRUCTION.—

4 Such term also includes—

5 ‘‘(i) the renovation of a facility if—

6 ‘‘(I) the amount of the expendi7 ture of Federal funds for such pur8 pose in the case of any facility does

9 not exceed $250,000; and

10 ‘‘(II) two-thirds of the members

11 of the National Council on the Arts

12 (who are present and voting) rec13 ommend a grant involving an expendi14 ture for such purpose; and

15 ‘‘(ii) with respect to a grant under

16 section 202(d), the construction of a facil17 ity, if—

18 ‘‘(I) such construction is for

19 demonstration purposes or under un20 usual circumstances in which there is

21 no other manner by which to accom22 plish an artistic purpose; and

23 ‘‘(II) two-thirds of the members

24 of the National Council on the Arts

25 (who are present and voting) rec-
24

•S 856 RS

1 ommend a grant involving an expendi2 ture for such purpose.

3 ‘‘(7) WORKSHOP.—The term ‘workshop’ means

4 a program the primary purpose of which is to en5 courage the artistic development or enjoyment of

6 amateur, student, or other participants.

7 ‘‘SEC. 202. ESTABLISHMENT OF THE NATIONAL ENDOW8 MENT FOR THE ARTS.

9 ‘‘(a) ESTABLISHMENT.—There is established within

10 the Foundation a National Endowment for the Arts (re11 ferred to in this title as the ‘Endowment’).

12 ‘‘(b) CHAIRPERSON.—

13 ‘‘(1) APPOINTMENT.—The Endowment shall be

14 headed by a chairperson, to be known as the Chair15 person of the Endowment (referred to in this title as

16 the ‘Chairperson’), who shall be appointed by the

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

18 Senate.

19 ‘‘(2) TERM.—

20 ‘‘(A) IN GENERAL.—The term of office of

21 the Chairperson shall be 4 years, except that

22 any Chairperson appointed to fill a vacancy

23 shall serve for the remainder of the term for

24 which the predecessor of the Chairperson was

25 appointed. Notwithstanding any other provision
25

•S 856 RS

1 of this subparagraph, on the expiration of the

2 term of office of the Chairperson, the Chair3 person shall serve until the successor to the

4 Chairperson is appointed and has qualified.

5 ‘‘(B) REAPPOINTMENT.—The Chairperson

6 shall be eligible for reappointment.

7 ‘‘(c) PARTNERSHIP GRANTS.—

8 ‘‘(1) PURPOSES.—The purpose of this sub9 section is to make grants to States and local and re10 gional groups to establish local arts activities, with

11 particular emphasis on arts education and projects

12 that reach rural and urban underserved commu13 nities.

14 ‘‘(2) GRANTS TO STATES.—

15 ‘‘(A) AUTHORITY.—Using 70 percent of

16 the funds reserved under section 104(a)(1)(B)

17 and such portion of any funds made available

18 under section 104(a)(2) as may be appropriate,

19 the Chairperson, acting on the recommendation

20 of the National Council on the Arts, shall estab21 lish and carry out a program of basic State

22 grants to assist States—

23 ‘‘(i)(I) in supporting projects, produc24 tions, or workshops that meet the standard
26

•S 856 RS

1 of artistic excellence and artistic merit and

2 that fulfill the purposes of this Act; and

3 ‘‘(II) in developing projects, produc4 tions, or workshops that will furnish pro5 grams, facilities, and services in the arts to

6 people and communities in each of the

7 States; and

8 ‘‘(ii) in carrying out activities that—

9 ‘‘(I) stimulate artistic activity

10 and awareness, and broadening public

11 access to the arts, in rural, inner-city,

12 and other areas that are underserved

13 artistically;

14 ‘‘(II) enhance the artistic capa15 bilities of developing arts organiza16 tions through artistic, programmatic,

17 and staff development; or

18 ‘‘(III) provide technical assist19 ance to developing arts organizations

20 to improve managerial and organiza21 tional skills, financial systems man22 agement, and long-range fiscal plan23 ning.

24 ‘‘(B) APPLICATION.—In order to receive a

25 grant under this paragraph for any fiscal year,
27

•S 856 RS

1 a State shall submit an application described in

2 section 203 for such grant at such time and in

3 such manner as shall be specified by the Chair4 person and accompany such application with a

5 State plan that the Chairperson finds—

6 ‘‘(i) designates or provides for the es7 tablishment of a State agency (referred to

8 in this section as the ‘State agency’) as the

9 sole agency for the administration of the

10 State plan;

11 ‘‘(ii) provides that funds paid to the

12 State under this paragraph will be ex13 pended solely on projects, productions, or

14 workshops described in subparagraph (A)

15 and approved by the State agency;

16 ‘‘(iii) provides that the State agency

17 will make such reports, in such manner

18 and containing such information, as the

19 Chairperson may from time to time re20 quire, including a description of the

21 progress made toward achieving the objec22 tives of the State plan;

23 ‘‘(iv) provides—

24 ‘‘(I) an assurance that the State

25 agency has held, after reasonable no-
28

•S 856 RS

1 tice, public meetings in the State to

2 allow groups of artists, interested or3 ganizations, and the public to present

4 views and make recommendations re5 garding the State plan; and

6 ‘‘(II) a summary of such rec7 ommendations and the response of the

8 State agency to such recommenda9 tions; and

10 ‘‘(v) contains—

11 ‘‘(I) for the most recent preced12 ing year for which information is

13 available, a description of the level of

14 participation by artists, artists’ orga15 nizations, and arts organizations in

16 projects, productions, or workshops

17 supported by funding from the State

18 agency under this paragraph, and a

19 description of the extent to which

20 projects, productions, or workshops

21 supported by funding from the State

22 agency under this paragraph were

23 available to all people and commu24 nities in the State; and
29

•S 856 RS

1 ‘‘(II) a description of projects,

2 productions, or workshops supported

3 by funding from the State agency

4 under this paragraph that exist or are

5 being developed to secure wider par6 ticipation of artists, artists’ organiza7 tions, and arts organizations described

8 in subclause (I) or that address the

9 availability of the arts to all people or

10 communities described in subclause

11 (I).

12 ‘‘(C) APPROVAL.—The Chairperson may

13 not approve an application described in sub14 paragraph (B) unless the accompanying State

15 plan satisfies the requirements specified in sub16 paragraph (B).

17 ‘‘(D) ALLOTMENTS.—

18 ‘‘(i) IN GENERAL.—Of the sums avail19 able to carry out this paragraph for any

20 fiscal year, each State that has an applica21 tion approved by the Chairperson shall be

22 allotted at least $200,000.

23 ‘‘(ii) INSUFFICIENT FUNDS.—If the

24 sums available to carry out this paragraph

25 for any fiscal year are insufficient to make
30

•S 856 RS

1 the allotments under clause (i) in full, such

2 sums shall be allotted so that each such

3 State receives an equal amount.

4 ‘‘(iii) EXCESS FUNDS.—In any case in

5 which the sums available to carry out this

6 paragraph for any fiscal year are in excess

7 of the amount required to make the allot8 ments under clause (i)—

9 ‘‘(I) the amount of such excess

10 that is not greater than 25 percent of

11 the sums available to carry out this

12 paragraph for such fiscal year shall be

13 available to the Chairperson for mak14 ing grants under this paragraph to

15 States and, in accordance with sub16 paragraph (H), regional groups; and

17 ‘‘(II) the amount of such excess

18 for such fiscal year, if any, that re19 mains after reserving in full for the

20 Chairperson the amount required

21 under subclause (I) shall be allotted

22 so that each State that has an appli23 cation approved by the Chair receives

24 an in equal amount;
31

•S 856 RS

1 but in no event shall any State be allotted

2 less than $200,000 under this paragraph.

3 ‘‘(E) FEDERAL SHARE.—

4 ‘‘(i) IN GENERAL.—Funding provided

5 through a grant made under this para6 graph to a State for any fiscal year shall

7 be available to each State that has an ap8 plication approved by the Chairperson, and

9 has the State plan accompanying the appli10 cation in effect on the first day of such fis11 cal year, to pay not more than 50 percent

12 of the total cost of carrying out any activ13 ity described in subparagraph (A).

14 ‘‘(ii) EXCESS PORTION.—Except as

15 provided in clause (iii), the portion of the

16 funding provided through any grant made

17 under subparagraph (D)(i) to a State for

18 any fiscal year that exceeds $125,000 shall

19 be available, at the discretion of the Chair20 person, to pay not more than 100 percent

21 of such cost of carrying out an activity

22 under this paragraph if such activity would

23 be unavailable to the residents of the State

24 without such portion.
32

•S 856 RS

1 ‘‘(iii) PERCENTAGE OF GRANT

2 FUNDS.—The portion of the funding de3 scribed in clause (ii) for any fiscal year

4 that is available to pay not more than 100

5 percent of such cost, as described in clause

6 (ii), shall not exceed 20 percent of the total

7 funding provided through such grant for

8 such fiscal year.

9 ‘‘(F) PROHIBITION ON SUPPLANTING NON10 FEDERAL FUNDS.—Funds made available under

11 this paragraph shall be used to supplement, and

12 shall not supplant, non-Federal funds expended

13 for supporting activities described in subpara14 graph (A).

15 ‘‘(G) UNOBLIGATED FUNDS.—Any amount

16 allotted to a State under subparagraph (D)(i)

17 for any fiscal year that is not obligated by the

18 State earlier than 60 days prior to the end of

19 the fiscal year for which the amount is appro20 priated shall be available for making grants to

21 regional groups.

22 ‘‘(H) SPECIAL RULE.—The provisions of

23 this paragraph (other than subparagraph (D))

24 shall apply to regional groups receiving grants

25 under this paragraph in such manner, and to
33

•S 856 RS

1 such extent, as the Chairperson shall by regula2 tion prescribe.

3 ‘‘(I) DEFINITION.—As used in subpara4 graph (D)(iii)(II) and notwithstanding section

5 3(7), the term ‘State’ includes, in addition to

6 the several States of the United States, only the

7 jurisdictions specified in such section that have

8 a population of 200,000 or more, according to

9 the latest decennial census.

10 ‘‘(3) GRANTS TO PROMOTE ACCESS TO THE

11 ARTS THROUGH SUPPORT OF EDUCATION, AND EX12 PANSION AND ADVANCEMENT OF THE ARTS.—

13 ‘‘(A) IN GENERAL.—Using 30 percent of

14 the funds reserved under section 104(a)(1)(B)

15 and such portion of any funds made available

16 under section 104(a)(2) as may be appropriate,

17 the Chairperson, acting on the recommendation

18 of the National Council on the Arts, may estab19 lish and carry out a program of grants to

20 States, arts agencies, or other local or regional

21 groups, in order to foster and encourage excep22 tional talent, public knowledge, understanding,

23 and appreciation of the arts, and to support the

24 education, training, and development of the art25 ists of the United States, by paying for the
34

•S 856 RS

1 Federal share of the cost of carrying out

2 projects, productions, and workshops that

3 will—

4 ‘‘(i) promote and improve the avail5 ability of arts instruction, and improve the

6 quality of arts education, through support

7 of lifelong learning in the arts;

8 ‘‘(ii) enhance the quality of arts in9 struction in programs of teacher education;

10 ‘‘(iii) develop arts faculty resources

11 and talents;

12 ‘‘(iv) support and encourage the devel13 opment of improved curriculum materials

14 in the arts;

15 ‘‘(v) improve evaluation and assess16 ment of education in the arts programs

17 and instruction;

18 ‘‘(vi) foster cooperative programs with

19 the Department of Education and other

20 Federal agencies and encourage partner21 ships among arts and education agencies

22 and organizations at State and local levels

23 as well as among arts organizations, busi24 nesses, and educational and cultural insti25 tutions;
35

•S 856 RS

1 ‘‘(vii) support apprenticeships, intern2 ships, and other career oriented work-study

3 experiences for artists and arts teachers,

4 and encourage residencies of artists at all

5 educational levels;

6 ‘‘(viii) support the use of technology

7 and improved facilities and resources in

8 education in the arts programs at all lev9 els;

10 ‘‘(ix) foster the development of dem11 onstration projects, demonstration produc12 tions, demonstration workshops, and dem13 onstration programs in arts education and

14 collect, and make available to the public,

15 information on their implementation and

16 effectiveness; and

17 ‘‘(x) promote or advance arts at the

18 local level.

19 ‘‘(B) APPLICATION.—In order to receive a

20 grant under this paragraph for any fiscal year,

21 a State, agency, or group shall submit an appli22 cation described in section 203 for such grant

23 at such time, in such manner, and accompanies

24 by such information, as shall be specified by the

25 Chairperson.
36

•S 856 RS

1 ‘‘(C) FEDERAL SHARE.—Grants made

2 under this paragraph shall be subject to the re3 quirements of paragraph (2)(E), in the same

4 manner and to the same extent as grants made

5 under paragraph (2)(D).

6 ‘‘(d) NATIONAL SIGNIFICANCE GRANTS.—

7 ‘‘(1) PURPOSE.—The purpose of this subsection

8 is to make grants to groups, including regional

9 groups, of demonstrated and substantial artistic and

10 cultural importance, for projects, productions, and

11 workshops that will increase the access of all the

12 people of the United States to the best of the arts

13 and culture of the United States.

14 ‘‘(2) IN GENERAL.—Using funds reserved under

15 section 104(a)(1)(C) and such portion of any funds

16 made available under section 104(a)(2) as may be

17 appropriate, the Chairperson, acting on the rec18 ommendation of the National Council on the Arts,

19 may establish and carry out a program of grants to

20 groups who meet the standard of artistic excellence

21 and artistic merit and who are engaged in or con22 cerned with the arts, for the purpose of paying for

23 the Federal share of the cost of—

24 ‘‘(A) enabling the groups to provide or

25 support projects, productions, or workshops de-
37

•S 856 RS

1 scribed in paragraph (3) that will have a na2 tional, regional, or otherwise substantial artistic

3 or cultural impact; or

4 ‘‘(B) providing administrative and manage5 ment improvements for the groups, particularly

6 in the field of long-range financial planning, in7 cluding increasing levels of community support

8 and the range of contributors to the programs

9 of such groups.

10 ‘‘(3) PROJECTS, PRODUCTIONS, AND WORK11 SHOPS.—

12 ‘‘(A) REQUIRED ELEMENTS.—Each such

13 project, production, or workshop shall—

14 ‘‘(i) have substantial national or re15 gional cultural significance, and encourage

16 professional excellence; or

17 ‘‘(ii)(I) have significant merit; and

18 ‘‘(II) be a project, production, or

19 workshop that, if such a group did not re20 ceive a grant, might otherwise be unavail21 able to citizens for geographic or economic

22 reasons.

23 ‘‘(B) PERMISSIBLE ELEMENTS.—Each

24 such project, production, or workshop may—
38

•S 856 RS

1 ‘‘(i) encourage access to, education in,

2 and knowledge, understanding, enjoyment,

3 and appreciation of, the arts by the public;

4 ‘‘(ii) enhance managerial and organi5 zational skills and capabilities;

6 ‘‘(iii) use technology to broaden public

7 access to the arts;

8 ‘‘(iv) expand access to the arts for in9 dividuals with disabilities; or

10 ‘‘(v) promote access to the arts for

11 minority or underserved populations.

12 ‘‘(4) FEDERAL SHARE REQUIREMENT.—

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

14 subparagraphs (B) and (C), in the case of any

15 grant made under this subsection, the Federal

16 share described in paragraph (2) shall be 25

17 percent.

18 ‘‘(B) CERTAIN GROUPS.—In the case of

19 any grant made under this subsection to a

20 group with an annual budget in excess of

21 $3,000,000, the Federal share described in

22 paragraph (2) shall be 16.67 percent.

23 ‘‘(C) ADJUSTMENTS.—The Chairperson

24 may increase the Federal share applicable

25 under this subsection for a designated grant re-
39

•S 856 RS

1 cipient, with review by the National Council on

2 the Arts. The Chairperson shall not increase

3 the Federal share above 50 percent for the re4 cipient. Not more than 10 percent of the funds

5 made available by the Endowment for grants

6 under this subsection for any fiscal year may be

7 available for grants for the fiscal year for which

8 the Chairperson increases the applicable Fed9 eral share.

10 ‘‘(5) PRIORITY.—In awarding grants under this

11 subsection, the Chairperson shall give priority to

12 projects, productions, and workshops that increase

13 the access of the public of the United States to cul14 ture and the arts, including access by touring, by re15 gional or national dissemination, or by geographic

16 dispersion.

17 ‘‘(e) DIRECT GRANTS.—

18 ‘‘(1) PURPOSE.—The purpose of this subsection

19 is to make grants to groups, and individuals, that

20 are broadly representative of the cultural heritage of

21 the United States and broadly geographically rep22 resentative, for projects, productions, and workshops

23 of the highest artistic excellence and artistic merit.

24 ‘‘(2) IN GENERAL.—Using funds reserved under

25 section 104(a)(1)(D) and such portion of any funds
40

•S 856 RS

1 made available under section 104(a)(2) as may be

2 appropriate, the Chairperson, acting on the rec3 ommendation of the National Council on the Arts,

4 may establish and carry out a program of grants to

5 groups, or individuals who meet the standard of ar6 tistic excellence and artistic merit and who are en7 gaged in or concerned with the arts, to pay for the

8 Federal share of the cost of projects, productions, or

9 workshops that meet the standard of artistic excel10 lence and artistic merit and that fulfill the purposes

11 of this Act.

12 ‘‘(3) FEDERAL SHARE REQUIREMENT.—The

13 Federal share described in paragraph (2) shall be 50

14 percent.

15 ‘‘(4) PRIORITY.—In awarding grants under this

16 subsection, the Chairperson shall give priority to

17 projects, productions, and workshops that will be

18 disseminated widely after completion.

19 ‘‘(5) ADJUSTMENTS.—The Chairperson may in20 crease the Federal share applicable under this sub21 section for a designated grant recipient, with review

22 by the National Council on the Arts. Not more than

23 20 percent of the funds made available by the En24 dowment for grants under this subsection for any

25 fiscal year may be available for grants for the fiscal
41

•S 856 RS

1 year for which the Chairperson increases the appli2 cable Federal share.

3 ‘‘SEC. 203. APPLICATION PROCEDURES.

4 ‘‘(a) APPLICATION REQUIREMENT.—No grant shall

5 be made under this title to any person unless the person

6 submits an application to the Chairperson in accordance

7 with regulations and procedures established by the Chair8 person.

9 ‘‘(b) PROCEDURES.—

10 ‘‘(1) IN GENERAL.—

11 ‘‘(A) CONSIDERATIONS.—In establishing

12 such regulations and procedures for applica13 tions, the Chairperson shall ensure that—

14 ‘‘(i) artistic excellence and artistic

15 merit of the projects, productions, and

16 workshops described in the application are

17 the criteria by which the applications are

18 judged by advisory panels described in sec19 tion 204, taking into consideration general

20 standards of decency and respect for the

21 diverse beliefs and values of the public of

22 the United States;

23 ‘‘(ii) in selecting groups as recipients

24 of grants under section 202(d), the Chair25 person shall give particular regard to artis-
42

•S 856 RS

1 tically underserved areas and artists and

2 artistic groups that have traditionally been

3 underrepresented; and

4 ‘‘(iii) the projects, productions, and

5 workshops described in the applications,

6 and awards of grants under this title, are

7 consistent with the objectives of section

8 202 and this section.

9 ‘‘(B) OBSCENITY PROVISIONS.—Such regu10 lations and procedures shall clearly indicate

11 that obscenity is without artistic merit, is not

12 protected speech, and shall not be funded under

13 this title. Projects, productions, and workshops

14 that are determined to be obscene shall be pro15 hibited from receiving grants under this title

16 from the Endowment.

17 ‘‘(2) CONSIDERATIONS FOR THE CHAIR18 PERSON.—In considering an application for a grant

19 under this title, the Chairperson shall consider the

20 extent to which the projects, productions, and work21 shops described in the application fulfill the pur22 poses of this Act, as well as their artistic excellence

23 and artistic merit, as determined by the Chair24 person.
43

•S 856 RS

1 ‘‘(3) CONSTRUCTION.—The disapproval or ap2 proval by the Chairperson of an application for a

3 grant under this title shall not be construed to

4 mean, and shall not be considered to be evidence

5 that, the project, production, or workshop, for which

6 the applicant requested a grant, is or is not obscene.

7 ‘‘SEC. 204. ADVISORY PANELS.

8 ‘‘(a) IN GENERAL.—The Chairperson shall utilize re9 view by advisory panels—

10 ‘‘(1) as the first step in the review of applica11 tions submitted under this Act; and

12 ‘‘(2) to make recommendations to the National

13 Council on the Arts in all cases involving requests

14 for grants authorized under this title, except cases

15 in which the Chairperson exercises authority dele16 gated under section 205(f)(2).

17 ‘‘(b) PROCEDURES.—

18 ‘‘(1) CRITERIA.—In reviewing the applications,

19 such panels shall recommend applications for

20 projects, productions, and workshops on the basis of

21 artistic excellence and artistic merit, consistent with

22 section 203(b)(1)(A)(i).

23 ‘‘(2) AMOUNTS.—The panels may recommend

24 only general ranges of funding to be provided
44

•S 856 RS

1 through the grants and may not recommend specific

2 amounts of such funding.

3 ‘‘(3) REGULATIONS AND PROCEDURES.—The

4 Chairperson shall issue regulations and establish

5 procedures to—

6 ‘‘(A) ensure that all the panels are com7 posed, to the extent practicable, of individuals

8 providing a wide geographic, ethnic, and minor9 ity representation as well as individuals reflect10 ing diverse artistic and cultural points of view;

11 ‘‘(B) ensure that all the panels include at

12 least 2 members representing lay individuals

13 who are—

14 ‘‘(i) knowledgeable about the arts;

15 ‘‘(ii) not engaged in the arts as a pro16 fession; and

17 ‘‘(iii) not employees of either artists’

18 organizations or arts organizations;

19 ‘‘(C) ensure that, when feasible, the proce20 dures used by the panels to carry out their re21 sponsibilities are standardized;

22 ‘‘(D) require each such panel—

23 ‘‘(i) to create written records summa24 rizing—
45

•S 856 RS

1 ‘‘(I) all meetings and discussions

2 of such panel; and

3 ‘‘(II) the recommendations made

4 by such panel to the Council; and

5 ‘‘(ii) to make such records available to

6 the public in a manner that protects the

7 privacy of individual applicants and panel

8 members;

9 ‘‘(E) permit, when necessary and feasible,

10 a site visit to view the work of an applicant and

11 deliver a written report on the work being re12 viewed, in order to assist panelists in making

13 their recommendations;

14 ‘‘(F)(i) require that the membership of

15 each such panel change substantially from year

16 to year; and

17 ‘‘(ii) provide that no individual be eligible

18 to serve on such a panel for more than 5 years,

19 no 2 of which may be consecutive; and

20 ‘‘(G) ensure that the panels recommend

21 more applicants for grants than are anticipated

22 can be provided funding through the grants

23 with available funds.

24 ‘‘(4) PROHIBITION ON CONFLICTS OF INTER25 EST.—
46

•S 856 RS

1 ‘‘(A) IN GENERAL.—In making appoint2 ments to the panels, the Chairperson shall en3 sure that an individual who has a pending ap4 plication for a grant authorized under this title,

5 or who is an employee or agent of an organiza6 tion with such a pending application, or who

7 has a direct or indirect financial interest in any

8 application under consideration by such a panel,

9 does not serve as a member of any panel before

10 which such application is pending.

11 ‘‘(B) DURATION.—The prohibition de12 scribed in subparagraph (A) shall commence

13 with respect to such individual beginning on the

14 date such application is submitted, and shall

15 continue until a final decision on the application

16 has been reached by the Chairperson.

17 ‘‘SEC. 205. NATIONAL COUNCIL ON THE ARTS.

18 ‘‘(a) ESTABLISHMENT.—There is established within

19 the Endowment a National Council on the Arts (referred

20 to in this section as the ‘Council’).

21 ‘‘(b) COMPOSITION.—

22 ‘‘(1) IN GENERAL.—The Council shall be com23 posed of the Chairperson of the Endowment, who

24 shall be the Chairperson of the Council, and 20

25 other members appointed by the President, by and
47

•S 856 RS

1 with the advice and consent of the Senate, who shall

2 be selected—

3 ‘‘(A) from among private citizens of the

4 United States who—

5 ‘‘(i) are widely recognized for their

6 broad knowledge of, or expertise in, the

7 arts; and

8 ‘‘(ii) have established records of dis9 tinguished service, or achieved eminence, in

10 the arts;

11 ‘‘(B) so as to include practicing artists,

12 civic cultural leaders, members of cultural pro13 fessions, and others who are professionally en14 gaged in the arts; and

15 ‘‘(C) so as collectively to provide an appro16 priate distribution of members among the major

17 art fields.

18 ‘‘(2) QUALIFICATIONS.—The President may, in

19 making such appointments, give consideration to

20 such recommendations as may, from time to time, be

21 submitted to the President by leading national orga22 nizations in the major art fields. In making such ap23 pointments, the President shall give due regard to

24 equitable representation of women, racially and eth25 nically diverse individuals, and individuals with dis-
48

•S 856 RS

1 abilities, who are involved in the arts. Members of

2 the Council shall be appointed so as to represent eq3 uitably geographical areas in the United States.

4 ‘‘(c) TERMS.—

5 ‘‘(1) IN GENERAL.—

6 ‘‘(A) STAGGERED TERMS.—Each member

7 of the Council shall serve for a term of 6 years,

8 and the terms shall be staggered.

9 ‘‘(B) EXPIRATION.—Except as provided in

10 paragraph (2), the terms of all Council mem11 bers shall expire on the third day of September

12 in the year of expiration.

13 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

14 TERM.—Each member who has served on the

15 Council for 1 term of less than 3 years shall be

16 eligible for reappointment for 1 term of 6 years.

17 ‘‘(D) VACANCY APPOINTMENTS.—Any

18 member appointed to fill a vacancy shall serve

19 for the remainder of the term for which the

20 predecessor of the member was appointed.

21 ‘‘(E) HOLDOVER SERVICE.—Notwithstand22 ing any other provision of this subsection, a

23 member of the Council shall serve after the ex24 piration of the term of the member until the

25 successor to the member takes office.
49

•S 856 RS

1 ‘‘(2) ADJUSTMENT TO REDUCE COUNCIL.—

2 ‘‘(A) EXPIRATION OF TERMS.—The terms

3 of 10 members of the Council whose terms

4 would otherwise expire on September 3, 1996

5 shall be deemed to expire on January 1, 1996.

6 ‘‘(B) TERMS.—The President shall appoint

7 4 members of the Council to succeed members

8 whose terms are deemed to expire as described

9 in subparagraph (A). The terms of the succes10 sors shall expire on September 3, 2002.

11 ‘‘(d) COMPENSATION.—Members of the Council shall

12 receive compensation at a rate to be fixed by the Chair13 person but not to exceed the daily equivalent of the maxi14 mum rate authorized for a position above grade GS–15

15 of the General Schedule under section 5108 of title 5,

16 United States Code, and be allowed travel expenses includ17 ing per diem in lieu of subsistence, in the same amounts

18 and to the same extent, as authorized under section 5703

19 of title 5, United States Code, for persons employed inter20 mittently in Federal Government service.

21 ‘‘(e) MEETINGS AND DUTIES.—

22 ‘‘(1) MEETINGS.—The Council shall meet at

23 the call of the Chairperson but not less often than

24 twice during each calendar year. Eleven members of
50

•S 856 RS

1 the Council shall constitute a quorum. All policy

2 meetings of the Council shall be open to the public.

3 ‘‘(2) DUTIES.—The Council shall—

4 ‘‘(A) advise the Chairperson with respect

5 to policies, programs, and procedures for carry6 ing out the functions of the Chairperson under

7 this title;

8 ‘‘(B) review applications for grants author9 ized under this title and make recommendations

10 to the Chairperson with respect to—

11 ‘‘(i) whether to approve particular ap12 plications for grants authorized under this

13 title that have been determined by advisory

14 panels to have artistic excellence and artis15 tic merit; and

16 ‘‘(ii) the amount of funding that the

17 Chairperson should provide through such a

18 grant with respect to each such application

19 the Council recommends for approval;

20 ‘‘(C) use as criteria for the recommenda21 tions of the Council—

22 ‘‘(i) the extent to which the works de23 scribed in the applications fulfill the pur24 poses of this Act; and
51

•S 856 RS

1 ‘‘(ii) the artistic excellence and artistic

2 merit of the works described in the appli3 cations,

4 as determined by each Council member;

5 ‘‘(D) recommend more applications for

6 funding through grants than are anticipated

7 can be provided funding through the grants

8 with available funds;

9 ‘‘(E) create written records summarizing—

10 ‘‘(i) all meetings and discussions of

11 the Council; and

12 ‘‘(ii) recommendations made by the

13 Council to the Chairperson; and

14 ‘‘(F) make such records available to the

15 public in a manner that protects the privacy of

16 individual applicants for grants authorized

17 under this title, advisory panel members, and

18 Council members.

19 ‘‘(f) ACTIONS BY CHAIRPERSON.—

20 ‘‘(1) IN GENERAL.—The Chairperson shall not

21 approve or disapprove any application for a grant

22 authorized under this title until the Chairperson has

23 received the recommendation of the Council on such

24 application. The Chairperson shall have final author25 ity to approve each such application, and shall deter-
52

•S 856 RS

1 mine the final amount of funding through any grant

2 awarded. The Chairperson may not approve an ap3 plication with respect to which the Council makes a

4 negative recommendation.

5 ‘‘(2) DELEGATIONS.—In the case of an applica6 tion, or amendment of an application, submitted

7 under this title and involving $35,000 or less, or a

8 request for change in a grant amount of 20 percent

9 or less, the Chairperson may approve or disapprove

10 such application, amendment, or request, if such ac11 tion is taken pursuant to the terms of an express

12 and direct delegation of authority from the Council

13 to the Chairperson, and if each such action by the

14 Chairperson is reported to the Council at the next

15 regularly scheduled meeting of the Council. Such ac16 tion by the Chairperson shall be used with discretion

17 and shall not become a normal practice of providing

18 funding through a grant authorized under this title.

19 The terms of any such delegation of authority shall

20 not permit obligations for expenditure of funds

21 under such delegation for any fiscal year that exceed

22 an amount equal to 2 percent of the sums appro23 priated for the fiscal year pursuant to section

24 104(a)(1).
53

•S 856 RS

1 ‘‘SEC. 206. LIMITATIONS ON GRANTS.

2 ‘‘(a) PROHIBITION ON SUBGRANTS.—The Chair3 person shall establish procedures to ensure that no fund4 ing provided through a grant under this title, except a

5 grant made to a State or regional group, may be used

6 to make a grant to any other organization or individual

7 to conduct activity independent of the direct grant recipi8 ent. Nothing in this subsection shall prohibit payments

9 made in exchange for goods or services rendered.

10 ‘‘(b) PROHIBITION ON SEASONAL SUPPORT.—No

11 grant awarded under this title may be used for seasonal

12 support of a project, production, or workshop.

13 ‘‘(c) USE OF FUNDS FOR PROJECTS, PRODUCTIONS,

14 AND WORKSHOPS IN SPECIFIED DISCIPLINES.—Each

15 project, production, or workshop funded under this title

16 shall relate to arts, as defined in section 3.

17 ‘‘(d) LABOR STANDARDS.—

18 ‘‘(1) IN GENERAL.—It shall be a condition of

19 the receipt of any grant under this title that the

20 grant recipient furnish adequate assurances to the

21 Secretary of Labor that—

22 ‘‘(A) all professional performers and relat23 ed or supporting professional personnel em24 ployed on projects or productions, or in work25 shops, that are financed in whole or in part

26 under this title will be paid, without subsequent
54

•S 856 RS

1 deduction or rebate on any account, not less

2 than the minimum compensation as determined

3 by the Secretary of Labor to be the prevailing

4 minimum compensation for persons employed in

5 similar activities; and

6 ‘‘(B) no part of any project, production, or

7 workshop that is financed in whole or in part

8 under this title will be performed or engaged in

9 under working conditions that are unsanitary or

10 hazardous or dangerous to the health and safe11 ty of the employees engaged in such project,

12 production, or workshop.

13 ‘‘(2) EVIDENCE.—Compliance with the safety

14 and sanitary laws of the State in which the project,

15 production, or workshop described in paragraph

16 (1)(B) is to take place shall be prima facie evidence

17 of compliance with the assurance described in para18 graph (1)(B).

19 ‘‘(3) STANDARDS, REGULATIONS, AND PROCE20 DURES.—The Secretary of Labor shall have the au21 thority to prescribe such standards, regulations, and

22 procedures as the Secretary of Labor may determine

23 to be necessary or appropriate to carry out this sub24 section.

25 ‘‘(e) LIMITATION ON GRANT AWARD.—
55

•S 856 RS

1 ‘‘(1) INDIVIDUALS.—No individual may receive

2 more than 2 grant awards under this title.

3 ‘‘(2) AGENCIES AND ORGANIZATIONS.—No

4 agency or organization, other than a State council,

5 may receive more than 3 grant awards in a year

6 under this title.

7 ‘‘(f) REQUIREMENTS FOR GROUPS.—A group shall be

8 eligible for a grant under this title if—

9 ‘‘(1) no part of the net earnings of the group

10 inures to the benefit of any private stockholder, or

11 individual; and

12 ‘‘(2) a donation to such group is allowable as

13 a charitable contribution under section 170(c) of the

14 Internal Revenue Code of 1986.

15 ‘‘(g) CITIZENSHIP REQUIREMENTS FOR INDIVID16 UALS.—An individual shall be eligible to receive a direct

17 grant under this title if at the time such grant is received

18 such individual—

19 ‘‘(1) is a citizen or other national of the United

20 States; or

21 ‘‘(2) is an alien lawfully admitted to the United

22 States for permanent residence who—

23 ‘‘(A) has filed an application for natu24 ralization in the manner prescribed by section
56

•S 856 RS

1 334 of the Immigration and Nationality Act (8

2 U.S.C. 1445); and

3 ‘‘(B) is not permanently ineligible to be4 come a citizen of the United States.

5 ‘‘(h) INSTALLMENTS.—The Chairperson shall estab6 lish procedures to provide for the distribution of funding

7 provided through grants made under this title to recipients

8 in installments except in exceptional cases in which the

9 Chairperson determines that installments are not prac10 ticable. In providing any such installments to a recipient

11 of a grant under this title, the Chairperson shall ensure

12 that—

13 ‘‘(1) not more than two-thirds of such funding

14 may be provided at the time the application for the

15 grant is approved; and

16 ‘‘(2) the remainder of such funding may not be

17 provided until the Chairperson finds that the recipi18 ent of such grant is complying substantially with

19 this Act and with the conditions under which such

20 funding is provided to such recipient.

21 ‘‘(i) LOANS.—Any loan made by the Chairperson

22 under this title shall be made in accordance with terms

23 and conditions approved by the Secretary of the Treasury.
57

•S 856 RS

1 ‘‘SEC. 207. ADMINISTRATIVE PROVISIONS.

2 ‘‘(a) AUTHORITIES OF CHAIRPERSON.—In addition

3 to any authorities vested in the Chairperson by other pro4 visions of this Act, the Chairperson, in carrying out the

5 functions of the Chairperson, shall have authority—

6 ‘‘(1) to prescribe such regulations and proce7 dures as the Chairperson determines to be necessary

8 governing the manner in which the functions of the

9 Chairperson shall be carried out;

10 ‘‘(2)(A) to solicit, accept, receive, invest, and

11 use money and other property donated, bequeathed,

12 or devised to the Endowment, either absolutely or in

13 trust, with or without a condition or restriction, in14 cluding a condition that the Chairperson use other

15 funds of the Endowment for the purposes of the do16 nation, bequest, or devise; and

17 ‘‘(B) to add such property to the appropriations

18 for the Endowment as provided in section 104(a)(2),

19 and to use, sell, or otherwise dispose of such prop20 erty, for purposes of carrying out the activities of

21 the Endowment under this title;

22 ‘‘(3) to appoint and determine the compensa23 tion of such employees, subject to title 5, United

24 States Code, as may be necessary to carry out the

25 functions of the Chairperson, define their duties,

26 and supervise and direct their activities;
58

•S 856 RS

1 ‘‘(4) to procure the temporary and intermittent

2 services of experts and consultants, including panels

3 of experts, and compensate the experts and consult4 ants in accordance with section 3109 of title 5,

5 United States Code;

6 ‘‘(5) to accept and utilize the voluntary services

7 of individuals and reimburse the individuals for trav8 el expenses, including per diem in lieu of subsist9 ence, in the same amounts and to the same extent

10 as authorized under section 5703 of title 5, United

11 States Code, for persons employed intermittently in

12 Federal Government service;

13 ‘‘(6) to make advance, progress, and other pay14 ments without regard to section 3324 of title 331,

15 United States Code;

16 ‘‘(7) to rent office space in the District of Co17 lumbia; and

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

19 ‘‘(b) PUBLICATIONS.—Official publications of the En20 dowment under this title may be supported without regard

21 to the provisions of section 501 of title 44, United States

22 Code, if the Chairperson consults with the Joint Commit23 tee on Printing of the Congress.

24 ‘‘(c) COORDINATION.—The Chairperson shall coordi25 nate the programs of the Endowment, insofar as prac-
59

•S 856 RS

1 ticable, with other Federal programs and programs under2 taken by other public agencies or private groups, and shall

3 develop the programs of the Endowment with due regard

4 to the contribution to the objectives of this title that can

5 be made by other Federal agencies under the existing pro6 grams. The Chairperson may enter into interagency agree7 ments to promote or assist with the arts-related activities

8 of other Federal agencies, on a reimbursable or

9 nonreimbursable basis, and may use funds authorized to

10 be appropriated to carry out this title to pay for the costs

11 of such promotion or assistance.

12 ‘‘SEC. 208. REPORTS.

13 ‘‘(a) ANNUAL REPORT OF CHAIRPERSON.—The

14 Chairperson shall submit an annual report to the Presi15 dent for submission to the appropriate committees of Con16 gress on or before the 15th day of April of each year. The

17 report shall summarize the activities of the Endowment

18 for the preceding year, and shall include such rec19 ommendations as the Chairperson determines to be appro20 priate.

21 ‘‘(b) STATE OF THE ARTS REPORT.—

22 ‘‘(1) IN GENERAL.—The Chairperson shall use

23 data submitted with State plans under section

24 202(c), and the information contained in reports

25 submitted by States under section 202(c) or this sec-
60

•S 856 RS

1 tion, to prepare a report on the state of the arts in

2 the United States.

3 ‘‘(2) CONTENTS.—The state of the arts report

4 shall include a description of—

5 ‘‘(A) the availability of the programs of the

6 Endowment to emerging, rural, and culturally

7 diverse artists, arts organizations, and commu8 nities; and

9 ‘‘(B) the participation by such artists, or10 ganizations, and communities in such programs.

11 ‘‘(3) SUBMISSION.—The state of the arts report

12 shall be submitted to the President and Congress,

13 and provided to the States, not later than October

14 1, 1996, and quadrennially thereafter.

15 ‘‘(c) FINANCIAL REPORTS AND COMPLIANCE.—

16 ‘‘(1) IN GENERAL.—It shall be a condition of

17 the receipt of a grant made under this title by the

18 Chairperson that—

19 ‘‘(A) each applicant for such grant include

20 in the application described in section 203—

21 ‘‘(i) a detailed description of the pro22 posed project, production, or workshop for

23 which the grant is requested;
61

•S 856 RS

1 ‘‘(ii) a timetable for the completion of

2 such proposed project, production, or

3 workshop; and

4 ‘‘(iii) an assurance that the applicant

5 will meet the standards of artistic excel6 lence and artistic merit;

7 ‘‘(B)(i) each grant recipient under this

8 title carry out the proposal consistent with the

9 description contained in the application, as ap10 proved by the Chairperson for funding through

11 the grant; and

12 ‘‘(ii) each such grant recipient seeking to

13 change the activities carried out under the

14 grant justify the requested change by a written

15 request subject to approval by the Chairperson;

16 and

17 ‘‘(C) each such grant recipient agree to

18 and comply with requirements to submit to the

19 Chairperson—

20 ‘‘(i) interim reports, including an an21 nual report for each project, production, or

22 workshop carried out under the grant dur23 ing a period exceeding 1 year, describing

24 the progress of the grant recipient in car25 rying out such project, production, or
62

•S 856 RS

1 workshop and compliance by the grant re2 cipient with the conditions of receipt of

3 such grant;

4 ‘‘(ii) financial reports containing such

5 information as the Chairperson determines

6 to be necessary to ensure that the funding

7 made available through the grant is ex8 pended in accordance with the terms and

9 conditions under which the grant is made;

10 ‘‘(iii) a final report describing the

11 project, production, or workshop carried

12 out with the funding provided through the

13 grant and the compliance by the grant re14 cipient with the conditions of receipt of

15 such grant, including the condition that

16 the work assisted meet the standards of

17 artistic excellence and artistic merit; and

18 ‘‘(iv) in the case of a project or pro19 duction, and if practicable, as determined

20 by the Chairperson, a copy of such project

21 or production.

22 ‘‘(2) REPORT REQUIREMENTS.—The Chair23 person shall determine the appropriate form and

24 timing of interim reporting described in paragraph

25 (1)(C)(i) for a grant recipient under this title. The
63

•S 856 RS

1 reports and copy described in clauses (ii), (iii), and

2 (iv) of paragraph (1)(C) shall be due not later than

3 90 days after the end of the period for which such

4 grant recipient receives funding through the grant or

5 90 days after the completion of the project, produc6 tion, or workshop, whichever occurs earlier. The

7 Chairperson may extend the 90-day period if the re8 cipient shows good cause why such an extension

9 should be granted.

10 ‘‘(d) EVALUATION.—The Chairperson shall conduct

11 a post-award evaluation of activities for which grants are

12 made by the Chairperson under this title. Such evaluation

13 may include an audit to determine the accuracy of the re14 ports required to be submitted by grant recipients under

15 subsection (c).

16 ‘‘(e) REPORTS.—The Chairperson shall establish pro17 cedures to require that no additional funding shall be pro18 vided to a recipient of a grant authorized under this title

19 unless such recipient has submitted to the Chairperson all

20 required interim, financial, and final reports under sub21 section (c).

22 ‘‘SEC. 209. SANCTIONS AND PAYMENTS.

23 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recip24 ient of a grant made under this title, or an indirect recipi25 ent of funding provided through the grant, substantially
64

•S 856 RS

1 fails to satisfy the purposes for which such grant is made,

2 as determined by the Chairperson, the Chairperson may—

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

4 make any subsequent funding to the direct or indi5 rect recipient under this title, take into consideration

6 the results of the post-award evaluation conducted

7 under section 208(d);

8 ‘‘(2) prohibit the direct and indirect recipients

9 from using the name of, or in any way associating

10 the project, production, or workshop for which the

11 grant was received with, the Endowment; and

12 ‘‘(3) if such project, production, or workshop is

13 published, require that the publication contain the

14 following statement: ‘The opinions, findings, conclu15 sions, and recommendations expressed in this publi16 cation do not reflect the views of the National En17 dowment for the Arts.’.

18 ‘‘(b) NONCOMPLIANCE.—

19 ‘‘(1) IN GENERAL.—The Chairperson shall take

20 the actions described in paragraph (2) whenever the

21 Chairperson, after providing reasonable notice and

22 an opportunity for hearing, finds that—

23 ‘‘(A) a direct recipient of a grant under

24 this title, or an indirect recipient of funding
65

•S 856 RS

1 provided through the grant, is not complying

2 substantially with the provisions of this title;

3 ‘‘(B) a State agency or regional group that

4 received a grant under this title, or an indirect

5 recipient of funding provided through the grant,

6 is not complying substantially with terms and

7 conditions of the State plan accompanying the

8 application approved for the grant under this

9 title; or

10 ‘‘(C) any funding provided under this title

11 to a recipient, State agency, or regional group

12 described in subparagraph (A) or (B) has been

13 diverted from the purposes for which such fund14 ing was provided.

15 ‘‘(2) ACTIONS.—On making the finding de16 scribed in paragraph (1), the Chairperson shall im17 mediately notify the direct recipient, State agency,

18 or regional group that received the funding at issue

19 that—

20 ‘‘(A) no further funding will be provided

21 under this title to such recipient, agency, or

22 group until there is no longer any default or

23 failure to comply or the diversion is corrected;

24 or
66

•S 856 RS

1 ‘‘(B) if compliance or correction is impos2 sible, until such recipient, agency, or group re3 pays or arranges the repayment of the Federal

4 funds that were improperly diverted or ex5 pended.

6 ‘‘(c) OBSCENE WORKS.—

7 ‘‘(1) DETERMINATION.—If, after providing rea8 sonable notice and opportunity for a hearing on the

9 record, the Chairperson determines that a direct re10 cipient of a grant under this title, or an indirect re11 cipient of funding provided through the grant, used

12 the funding for a project, production, or workshop

13 that is determined to be obscene, the Chairperson

14 shall require that until the direct recipient repays

15 such funding (in such amount, and under such

16 terms and conditions, as the Chairperson determines

17 to be appropriate) to the Endowment, no subsequent

18 funding shall be provided under this title to such re19 cipient.

20 ‘‘(2) CREDITING.—Funds repaid under this

21 subsection to the Endowment shall be deposited in

22 the Treasury of the United States and credited as

23 miscellaneous receipts.

24 ‘‘(3) APPLICATION.—
67

•S 856 RS

1 ‘‘(A) TIMING.—This subsection shall not

2 apply with respect to grants made before Octo3 ber 1, 1990.

4 ‘‘(B) DURATION.—This subsection shall

5 not apply with respect to a project, production,

6 or workshop after the expiration of the 7-year

7 period beginning on the latest date on which a

8 grant is made under this title for such project,

9 production, or workshop.

10 ‘‘(d) PROGRAM INCOME.—

11 ‘‘(1) IN GENERAL.—A recipient of funding

12 under this title shall pay the amount described in

13 paragraph (2) to the Endowment if the Chairperson

14 finds that the recipient has derived program income

15 from the project, production, or workshop funded

16 that exceeds the lesser of—

17 ‘‘(A) $50,000; or

18 ‘‘(B) twice the amount of the funding.

19 ‘‘(2) AMOUNT.—The amount referred to in

paragraph (1) is 1 20 ⁄3 of the amount of the revenue,

21 but not more than the amount of the funding.

22 ‘‘(e) ACCOUNT.—Except as otherwise provided in this

23 Act, the Treasurer of the United States shall deposit funds

24 paid under subsection (d), or repaid under this Act, in
68

•S 856 RS

1 a special interest bearing account to the credit of the En2 dowment.

3 ‘‘SEC. 210. AWARDS.

4 ‘‘(a) NATIONAL MEDAL OF ARTS.—

5 ‘‘(1) ESTABLISHMENT.—There is established a

6 National Medal of Arts, which shall be a medal of

7 such design as is determined to be appropriate by

8 the President, on the basis of recommendations sub9 mitted by the National Council on the Arts, and

10 which shall be awarded as provided in this sub11 section.

12 ‘‘(2) AWARDS.—The President shall from time

13 to time award the National Medal of Arts, on the

14 basis of recommendations from the National Council

15 on the Arts, to individuals or groups who in the

16 judgment of the President are deserving of special

17 recognition by reason of their outstanding contribu18 tions to the excellence, growth, support, and avail19 ability of the arts in the United States.

20 ‘‘(3) NUMBER OF MEDALS.—Not more than 12

21 of such medals may be awarded in any calendar

22 year.

23 ‘‘(4) QUALIFICATIONS.—An individual may be

24 awarded the National Medal of Arts if at the time
69

•S 856 RS

1 such award is made such individual meets the re2 quirements of section 206(g).

3 ‘‘(5) GROUPS.—A group may be awarded the

4 National Medal of Arts if such group is organized or

5 incorporated in the United States.

6 ‘‘(6) CEREMONIES.—The presentation of the

7 National Medal of Arts shall be made by the Presi8 dent with such ceremonies as the President may de9 termine to be appropriate, including attendance by

10 appropriate Members of Congress.

11 ‘‘(b) AWARD FOR DISTINGUISHED LIFETIME SERV12 ICE FOR THE ARTS.—

13 ‘‘(1) ESTABLISHMENT.—There is established an

14 Award for Distinguished Lifetime Service for the

15 Arts.

16 ‘‘(2) CEREMONIES.—The Chairperson shall

17 present the award described in paragraph (1) to

18 each of the former Chairpersons of the Endowment

19 in conjunction with such ceremonies as the Director

20 may determine to be appropriate to celebrate the

21 30th anniversary of the establishment of the Endow22 ment.

23 ‘‘(3) EFFECTIVE DATE.—Paragraphs (1) and

24 (2) shall be effective during the period beginning on
70

•S 856 RS

1 the date of enactment of this section and ending on

2 March 31, 1996.

3 ‘‘(c) FUNDS.—The Chairperson shall use amounts re4 ceived by the National Endowment for the Arts under sec5 tion 207(a)(2) to carry out this section.

6 ‘‘TITLE III—NATIONAL ENDOW7 MENT FOR THE HUMANITIES

8 ‘‘SEC. 301. DEFINITIONS.

9 ‘‘As used in this title:

10 ‘‘(1) PROJECT.—

11 ‘‘(A) IN GENERAL.—The term ‘project’

12 means an activity organized to carry out the ob13 jectives of this title.

14 ‘‘(B) RENOVATION OR CONSTRUCTION.—

15 Such term also includes—

16 ‘‘(i) the renovation of a facility if—

17 ‘‘(I) the amount of the expendi18 ture of Federal funds for such pur19 pose in the case of any facility does

20 not exceed $250,000; and

21 ‘‘(II) two-thirds of the members

22 of the National Council on the Hu23 manities (who are present and voting)

24 approve of a grant or contract involv-
71

•S 856 RS

1 ing an expenditure for such purpose;

2 and

3 ‘‘(ii) for purposes of section 302(d),

4 the construction of a facility if—

5 ‘‘(I) such construction is for

6 demonstration purposes or under un7 usual circumstances in which there is

8 no other manner by which to accom9 plish a humanistic purpose; and

10 ‘‘(II) two-thirds of the members

11 of the National Council on the Hu12 manities (who are present and voting)

13 approve of a grant or contract involv14 ing an expenditure for such purpose.

15 ‘‘(2) WORKSHOP.—The term ‘workshop’ means

16 an activity the primary purpose of which is to pro17 mote scholarship and teaching among the partici18 pants.

19 ‘‘SEC. 302. ESTABLISHMENT OF THE NATIONAL ENDOW20 MENT FOR THE HUMANITIES.

21 ‘‘(a) ESTABLISHMENT.—There is established within

22 the Foundation a National Endowment for the Human23 ities (referred to in this title as the ‘Endowment’).

24 ‘‘(b) CHAIRPERSON.—
72

•S 856 RS

1 ‘‘(1) APPOINTMENT.—The Endowment shall be

2 headed by a chairperson, to be known as the Chair3 person of the Endowment (referred to in this title as

4 the ‘Chairperson’), who shall be appointed by the

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

6 Senate.

7 ‘‘(2) TERM.—

8 ‘‘(A) IN GENERAL.—The term of office of

9 the Chairperson shall be 4 years, except that

10 any Chairperson appointed to fill a vacancy

11 shall serve for the remainder of the term for

12 which the predecessor of the Chairperson was

13 appointed. Notwithstanding any other provision

14 of this subparagraph, on the expiration of the

15 term of office of the Chairperson, the Chair16 person shall serve until the successor to the

17 Chairperson is appointed and has qualified.

18 ‘‘(B) REAPPOINTMENT.—The Chairperson

19 shall be eligible for reappointment.

20 ‘‘(c) PARTNERSHIP GRANTS.—

21 ‘‘(1) PURPOSE.—The purpose of this subsection

22 is to support programs of humanities councils at the

23 State and local levels.

24 ‘‘(2) DEFINITION.—
73

•S 856 RS

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

2 subparagraph (B), as used in this subsection,

3 the term ‘State entity’ means—

4 ‘‘(i) a State that obtains approval of

5 an application submitted under paragraph

6 (4); or

7 ‘‘(ii) in a case in which a State fails

8 to submit an application under paragraph

9 (4), an appropriate entity that obtains ap10 proval of an application submitted under

11 paragraph (5).

12 ‘‘(B) JURISDICTION.—

13 ‘‘(i) STATE ENTITY.—As used in

14 paragraph (6)(C)(ii), the term ‘State en15 tity’ means a State entity, as defined in

16 subparagraph (A), for a State.

17 ‘‘(ii) STATE.—As used in clause (i),

18 and notwithstanding section 3(7), the term

19 ‘State’, includes, in addition to the several

20 States of the United States, only the juris21 dictions specified in such section that have

22 a population of 200,000 or more, according

23 to the latest decennial census.

24 ‘‘(3) GENERAL AUTHORITY.—Using funds re25 served under section 104(b)(1)(B) and such portion
74

•S 856 RS

1 of any funds made available under section 104(b)(2)

2 as may be appropriate, the Chairperson, acting on

3 the recommendation of the National Council on the

4 Humanities, may, in accordance with the provisions

5 of this subsection, establish and carry out a program

6 of grants to assist State entities—

7 ‘‘(A) in paying for not more than 50 per8 cent of the cost (except as otherwise provided in

9 this subsection) of supporting activities that

10 achieve the objectives described in subpara11 graphs (A) through (F) of subsection (d)(2)

12 and in subparagraphs (A) and (B) of subsection

13 (e)(2); or

14 ‘‘(B) in matching contributions from non15 Federal sources made to a trust fund the pur16 pose of which is to provide long-term financial

17 support for such activities.

18 ‘‘(4) GRANTS THROUGH STATE AGENCIES.—

19 ‘‘(A) DESIGNATION.—In order to receive a

20 grant under this subsection for any fiscal year,

21 if a State desires to designate or to provide for

22 the establishment of a State agency (referred to

23 in this section as a ‘State agency’) as the sole

24 agency for the administration of the State plan

25 referred to in subparagraph (B) relating to the
75

•S 856 RS

1 grant, such State shall designate as the State

2 agency the humanities council or shall provide

3 for the establishment of such a council.

4 ‘‘(B) APPLICATION AND STATE PLAN.—In

5 any State that designates or provides for the

6 establishment of a State agency as described in

7 subparagraph (A), the chief executive officer of

8 the State shall submit, before the beginning of

9 each fiscal year, an application for a grant and

10 accompany such application with a State plan

11 that the Chairperson finds—

12 ‘‘(i) designates or provides for the es13 tablishment of a State agency;

14 ‘‘(ii) provides that the chief executive

15 officer of the State will appoint new mem16 bers to the State humanities council des17 ignated or established under subparagraph

18 (A), as vacancies occur as a result of the

19 expiration of the terms of members of such

20 council, until the chief executive officer has

21 appointed all of the members of such coun22 cil;

23 ‘‘(iii) provides for the expenditure,

24 from State funds, of an amount equal to

25 50 percent of the portion of the funding
76

•S 856 RS

1 received by such State through a grant

2 made under paragraph (6)(A) (relating to

3 the minimum State allotment), or 25 per4 cent of the total amount of funding re5 ceived by such State through grants made

6 under this subsection, whichever is greater,

7 for the fiscal year involved (except as oth8 erwise provided in paragraph (7));

9 ‘‘(iv) provides that funds paid to the

10 State under this subsection will be ex11 pended solely on activities, approved by the

12 State agency, that—

13 ‘‘(I) achieve the objectives de14 scribed in subparagraphs (A) through

15 (F) of subsection (d)(2) and subpara16 graphs (A) and (B) of subsection

17 (e)(2); and

18 ‘‘(II) are designed to bring the

19 humanities to the public;

20 ‘‘(v) provides assurances that State

21 funds will be made available for the pur22 pose of meeting the requirements of this

23 subparagraph;

24 ‘‘(vi) provides that the State agency

25 will make such reports, in such manner
77

•S 856 RS

1 and containing such information, as the

2 Chairperson may from time to time re3 quire, including a description of the

4 progress made toward achieving the objec5 tives of the State plan;

6 ‘‘(vii) provides—

7 ‘‘(I) an assurance that the State

8 agency has held, after reasonable no9 tice, public meetings in the State to

10 allow scholars, interested organiza11 tions, and the public to present views

12 and make recommendations regarding

13 the State plan; and

14 ‘‘(II) a summary of such rec15 ommendations and of the response of

16 the State agency to such recommenda17 tions; and

18 ‘‘(viii) contains—

19 ‘‘(I) for the most recent preced20 ing year for which information is

21 available, a description of the level of

22 participation by scholars and scholarly

23 organizations in activities supported

24 by funding from the State agency

25 under this subsection and a descrip-
78

•S 856 RS

1 tion of the extent to which the activi2 ties supported by funding from the

3 State agency under this subsection

4 were available to all people and com5 munities in the State; and

6 ‘‘(II) a description of activities

7 supported by funding from the State

8 agency under this subsection that

9 exist or are being developed to secure

10 wider participation of scholars and

11 scholarly organizations described in

12 subclause (I) or that address the

13 availability of the humanities to all

14 people or communities described in

15 subclause (I).

16 ‘‘(C) APPROVAL.—The Chairperson may

17 not approve an application described in sub18 paragraph (B) unless the accompanying State

19 plan satisfies the requirements specified in sub20 paragraph (B).

21 ‘‘(5) GRANTS TO APPROPRIATE ENTITIES.—

22 ‘‘(A) DESIGNATION.—In any State in

23 which the chief executive officer of the State

24 fails to submit an application under paragraph

25 (4)(B) for a fiscal year, the Chairperson may
79

•S 856 RS

1 make grants under paragraph (3) to an appro2 priate entity in the State, and each such entity

3 shall establish a procedure that ensures that 8

4 members of the governing body of such entity

5 shall be appointed by an appropriate officer or

6 agency of such State, except that in no event

may the number of such members exceed 1 7 ⁄3 of

8 the total membership of such governing body.

9 The officer or agency shall select the members

10 from among individuals who have knowledge of

11 or experience in the humanities.

12 ‘‘(B) APPLICATION AND PLAN.—If a State

13 fails to submit an application under paragraph

14 (4)(B) for a fiscal year, any appropriate entity

15 in the State desiring to receive a grant under

16 this subsection for the fiscal year shall submit

17 an application for such grant at such time and

18 in such manner as shall be specified by the

19 Chairperson, and accompany such application

20 with a State plan that the Chairperson finds—

21 ‘‘(i) provides assurances that such en22 tity will comply with the requirements of

23 subparagraph (A);
80

•S 856 RS

1 ‘‘(ii) provides that funds paid to such

2 entity under this paragraph will be ex3 pended solely on activities that—

4 ‘‘(I) achieve the objectives de5 scribed in subparagraphs (A) through

6 (F) of subsection (d)(2) and subpara7 graphs (A) and (B) of subsection

8 (e)(2); and

9 ‘‘(II) are designed to bring the

10 humanities to the public;

11 ‘‘(iii) establishes a membership policy

12 that is designed to ensure broad public

13 representation with respect to activities ad14 ministered by such entity;

15 ‘‘(iv) provides for a nomination proc16 ess that ensures opportunities for nomina17 tion to membership in the governing body

18 from various groups in such State and

19 from a variety of segments of the popu20 lation of such State, including individuals

21 who by reason of their achievement, schol22 arship, or creativity in the humanities, are

23 especially qualified to serve as members of

24 the body;
81

•S 856 RS

1 ‘‘(v) provides for a membership rota2 tion process that ensures the regular rota3 tion of the membership and officers of

4 such entity;

5 ‘‘(vi) establishes reporting procedures

6 that are designed to inform the chief exec7 utive officer of such State, and other ap8 propriate officers and agencies, of the ac9 tivities of such entity;

10 ‘‘(vii) establishes procedures to ensure

11 public access to information relating to

12 such activities;

13 ‘‘(viii) provides that such entity will

14 make such reports, at such times, in such

15 manner, and containing such information,

16 as the Chairperson may require, including

17 a description of the progress made toward

18 achieving the objectives of the State plan;

19 ‘‘(ix) provides—

20 ‘‘(I) an assurance that the entity

21 has held, after reasonable notice, pub22 lic meetings in the State to allow

23 scholars, interested organizations, and

24 the public to present views and make
82

•S 856 RS

1 recommendations regarding the State

2 plan; and

3 ‘‘(II) a summary of such rec4 ommendations and of the response of

5 the entity to such recommendations;

6 and

7 ‘‘(x) contains—

8 ‘‘(I) for the most recent preced9 ing year for which information is

10 available, a description of the level of

11 participation by scholars and scholarly

12 organizations in activities supported

13 by funding from the entity under this

14 subsection, and a description of the

15 extent to which activities supported by

16 funding from the entity under this

17 subsection were available to all people

18 and communities in the State; and

19 ‘‘(II) a description of activities

20 supported by funding from the entity

21 under this subsection that exist or are

22 being developed to secure wider par23 ticipation of scholars and scholarly or24 ganizations described in subclause (I)

25 or that address the availability of the
83

•S 856 RS

1 humanities to all people or commu2 nities described in subclause (I).

3 ‘‘(C) APPROVAL.—The Chairperson may

4 not approve an application described in sub5 paragraph (B) unless the accompanying plan

6 satisfies the requirements specified in subpara7 graph (B).

8 ‘‘(6) ALLOTMENTS.—

9 ‘‘(A) IN GENERAL.—Of the sums available

10 to carry out this subsection for any fiscal year,

11 each State entity shall be allotted at least

12 $200,000.

13 ‘‘(B) INSUFFICIENT SUMS.—If the sums

14 available to carry out this subsection for any

15 fiscal year are insufficient to make the allot16 ments under subparagraph (A) in full, such

17 sums shall be allotted so that each State entity

18 receives an equal amount.

19 ‘‘(C) EXCESS FUNDS.—In any case in

20 which the sums available to carry out this sub21 section for any fiscal year are in excess of the

22 amount required to make the allotments under

23 subparagraph (A)—

24 ‘‘(i) 34 percent of the amount of such

25 excess for such fiscal year shall be avail-
84

•S 856 RS

1 able to the Chairperson for making grants

2 under this subsection to State entities;

3 ‘‘(ii) 44 percent of the amount of such

4 excess for such fiscal year shall be allotted

5 so that each State entity receives an equal

6 amount; and

7 ‘‘(iii) the remainder of the amount of

8 such excess for such fiscal year shall be al9 lotted so that each State entity receives an

10 amount that bears the same ratio to such

11 remainder as the population of the State

12 for which the application is approved bears

13 to the population of all the States.

14 ‘‘(7) LIMITATIONS.—

15 ‘‘(A) FEDERAL SHARE.—

16 ‘‘(i) IN GENERAL.—Funding provided

17 through a grant made under this sub18 section to a State entity for any fiscal year

19 shall be available to each State entity that

20 has an application approved by the Chair21 person, and has the State plan accompany22 ing the application in effect on the first

23 day of such fiscal year, to pay not more

24 than 50 percent of the total cost of carry-
85

•S 856 RS

1 ing out any activity described in paragraph

2 (3).

3 ‘‘(ii) EXCESS PORTION.—Except as

4 provided in clause (iii), the portion of the

5 funding provided through any grant made

6 under paragraph (6)(A) to a State entity

7 for any fiscal year that exceeds $125,000

8 shall be available, at the discretion of the

9 Chairperson, to pay not more than 100

10 percent of such cost of carrying out an ac11 tivity under this subsection if such activity

12 would be unavailable to the residents of

13 the State without such portion.

14 ‘‘(iii) PERCENTAGE OF GRANT

15 FUNDS.—The portion of the funding de16 scribed in clause (ii) for any fiscal year

17 that is available to pay not more than 100

18 percent of such cost, as described in clause

19 (ii), shall not exceed 20 percent of the total

20 of the funding provided through such grant

21 for such fiscal year.

22 ‘‘(B) PROHIBITION ON SUPPLANTING NON23 FEDERAL FUNDS.—Funds made available under

24 this subsection shall be used to supplement, and

25 shall not supplant, non-Federal funds expended
86

•S 856 RS

1 for supporting activities described in paragraph

2 (3).

3 ‘‘(8) UNOBLIGATED FUNDS.—Any amount al4 lotted to a State entity under paragraph (6) for any

5 fiscal year that is not obligated by the State entity

6 earlier than 60 days prior to the end of the fiscal

7 year for which the amount is appropriated shall be

8 available for making grants under subsection (d).

9 ‘‘(9) LIMITATION ON MULTIPLE ENTITIES.—

10 The Chairperson may not make grants under this

11 subsection to more than 1 entity in any State.

12 ‘‘(d) NATIONAL GRANTS.—

13 ‘‘(1) PURPOSE.—The purpose of this subsection

14 is to provide support for grants to groups, individ15 uals, and State agencies or entities to carry out ac16 tivities relating to education and the public human17 ities that have a national audience and are of na18 tional significance, such as activities relating to ele19 mentary, secondary, and postsecondary education in

20 the humanities, media projects, projects in museums

21 and by historical organizations, projects in libraries

22 and archives, public humanities projects, endowment

23 building, and technology activities.

24 ‘‘(2) GENERAL AUTHORITY.—Using funds re25 served under section 104(b)(1)(C) and such portion
87

•S 856 RS

1 of any funds made available under section 104(b)(2)

2 as may be appropriate, the Chairperson, acting on

3 the recommendation of the National Council on the

4 Humanities, may establish and carry out a program

5 of grants to groups or, in appropriate cases, individ6 uals who meet the standard of excellence in the hu7 manities and significance in the humanities, or State

8 agencies or entities to pay for the Federal share of

9 the cost of activities to—

10 ‘‘(A) develop and encourage the pursuit of

11 a national policy to further the public good

12 through public funding of the humanities;

13 ‘‘(B) initiate and support research and

14 programs to strengthen the research and teach15 ing potential of the United States in the hu16 manities;

17 ‘‘(C) foster the exchange of information in

18 the humanities;

19 ‘‘(D) foster education in, and public under20 standing and appreciation of, the humanities;

21 ‘‘(E) support projects that foster or pro22 mote literacy;

23 ‘‘(F) ensure that the benefit of the pro24 grams of the Endowment will also be available

25 to the citizens of the United States where such
88

•S 856 RS

1 programs would otherwise be unavailable due to

2 geographic or economic reasons;

3 ‘‘(G) enable cultural organizations and in4 stitutions to increase the levels of continuing

5 support and to increase the range of contribu6 tors to the program of such organizations or in7 stitutions;

8 ‘‘(H) provide administrative and manage9 ment improvements for cultural organizations

10 and institutions, particularly in the field of

11 long-range financial planning;

12 ‘‘(I) enable cultural organizations and in13 stitutions to increase audience participation in,

14 and appreciation of, programs sponsored by

15 such organizations and institutions;

16 ‘‘(J) develop new sources of long-term sup17 port for educational, scholarly, and public pro18 grams in the humanities, including renovating

19 or constructing facilities, augmenting or estab20 lishing endowment funds, and purchasing cap21 ital equipment to ensure financial stability;

22 ‘‘(K) stimulate greater cooperation among

23 cultural organizations and institutions especially

24 designed to serve better the communities in
89

•S 856 RS

1 which such organizations or institutions are lo2 cated; and

3 ‘‘(L) foster greater citizen involvement in

4 planning the cultural development of a commu5 nity.

6 ‘‘(3) FEDERAL SHARE REQUIREMENT.—

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

8 subparagraph (B), the Federal share described

9 in paragraph (2) shall be 50 percent.

10 ‘‘(B) ADJUSTMENT.—The Federal share of

11 the cost of activities described in paragraph

12 (2)(J) shall be 25 percent.

13 ‘‘(e) RESEARCH AND SCHOLARSHIP GRANTS.—

14 ‘‘(1) PURPOSE.—The purpose of this subsection

15 is to encourage the development and dissemination

16 of significant scholarship in the humanities by

17 groups, individuals, and State agencies or entities

18 such as fellowships for college and university faculty

19 and independent scholars, dissertation grants, sum20 mer stipends, and funds for scholarly publications,

21 reference materials, basic research, institutional pro22 grams, and preservation.

23 ‘‘(2) GENERAL AUTHORITY.—Using funds re24 served under section 104(b)(1)(D) and such portion

25 of any funds made available under section 104(b)(2)
90

•S 856 RS

1 as may be appropriate, the Chairperson, acting on

2 the recommendation of the National Council on the

3 Humanities, may establish and carry out a program

4 of grants to groups, individuals, State agencies, and

5 State entities for the purpose of paying for the Fed6 eral share of the cost of—

7 ‘‘(A) initiating and supporting (including

8 supporting through fellowships) training, work9 shops, programs, research, and publications, in

10 the humanities, that have substantial scholarly

11 and cultural significance and that reach or re12 flect the cultural heritage of the United States;

13 ‘‘(B) fostering projects that provide access

14 to, and preserving materials important to re15 search, education, and public understanding re16 garding, the humanities;

17 ‘‘(C) enabling cultural organizations and

18 institutions to increase the levels of continuing

19 support and to increase the range of contribu20 tors to the program of such organizations or in21 stitutions; and

22 ‘‘(D) providing administrative and manage23 ment improvements for cultural organizations

24 and institutions, particularly in the field of

25 long-range financial planning.
91

•S 856 RS

1 ‘‘(3) TRAINING; WORKSHOPS; RESEARCH.—A

2 fellowship awarded to an individual under paragraph

3 (2)(A) may be used for the purpose of supporting

4 study or research at an appropriate nonprofit insti5 tution selected by the individual, for a stated period

6 of time. The total amount of any grant under para7 graph (2)(A) to any group engaging in workshop ac8 tivities for which an admission or other charge is

9 made to the general public shall not exceed 30 per10 cent of the total cost of such activities.

11 ‘‘(4) CONSIDERATIONS.—In selecting a group

12 or individual as a recipient of a grant to be made

13 under this subsection, the Chairperson shall give

14 particular regard to scholars, and educational and

15 cultural institutions, that traditionally have been

16 underrepresented.

17 ‘‘(5) FEDERAL SHARE.—The Federal share de18 scribed in paragraph (2) shall be 50 percent.

19 ‘‘SEC. 303. APPLICATION PROCEDURES.

20 ‘‘To be eligible to receive a grant under this title, a

21 State, group, individual, agency, or organization shall sub22 mit an application to the Chairperson at such time, in

23 such manner, and containing such information as the

24 Chairperson may prescribe.
92

•S 856 RS

1 ‘‘SEC. 304. REVIEW PANELS.

2 ‘‘The Chairperson may select panels of experts under

3 section 307(a)(4) to review and make recommendations

4 with respect to the approval of applications for grants au5 thorized under this title. In selecting the panels, the Chair6 person shall appoint individuals who have exhibited exper7 tise and leadership in the field under review, who broadly

8 represent diverse humanistic perspectives and geographic

9 factors, and who broadly represent cultural diversity.

10 ‘‘SEC. 305. NATIONAL COUNCIL ON THE HUMANITIES.

11 ‘‘(a) ESTABLISHMENT.—There is established within

12 the Endowment a National Council on the Humanities (re13 ferred to in this section as the ‘Council’).

14 ‘‘(b) COMPOSITION.—

15 ‘‘(1) IN GENERAL.—The Council shall be com16 posed of the Chairperson of the Endowment, who

17 shall be the Chairperson of the Council, and 20

18 other members appointed by the President, by and

19 with the advice and consent of the Senate, who shall

20 be selected—

21 ‘‘(A) from among private citizens of the

22 United States who—

23 ‘‘(i) are recognized for their broad

24 knowledge of, or expertise in, the human25 ities; and
93

•S 856 RS

1 ‘‘(ii) have established records of dis2 tinguished service, or achieved eminence, in

3 the humanities;

4 ‘‘(B) so as to include scholars and others

5 who are professionally engaged in the human6 ities; and

7 ‘‘(C) so as collectively to provide an appro8 priate distribution of members among the major

9 humanities fields.

10 ‘‘(2) QUALIFICATIONS.—The President may, in

11 making such appointments, give consideration to

12 such recommendations as may, from time to time, be

13 submitted to the President by leading national orga14 nizations in the major humanities fields. In making

15 such appointments, the President shall give due re16 gard to equitable representation of women, racially

17 and ethnically diverse individuals, and individuals

18 with disabilities, who are involved in the humanities.

19 Members of the Council shall be appointed so as to

20 represent equitably geographical areas in the United

21 States.

22 ‘‘(c) TERMS.—

23 ‘‘(1) IN GENERAL.—
94

•S 856 RS

1 ‘‘(A) STAGGERED TERMS.—Each member

2 of the Council shall serve for a term of 6 years,

3 and the terms shall be staggered.

4 ‘‘(B) EXPIRATION.—Except as provided in

5 paragraph (2), the terms of all Council mem6 bers shall expire on the third day of September

7 in the year of expiration.

8 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

9 TERM.—Each member who has served on the

10 Council for 1 term of less than 3 years shall be

11 eligible for reappointment for 1 term of 6 years.

12 ‘‘(D) VACANCY APPOINTMENTS.—Any

13 member appointed to fill a vacancy shall serve

14 for the remainder of the term for which the

15 predecessor of the member was appointed.

16 ‘‘(E) HOLDOVER SERVICE.—Notwithstand17 ing any other provision of this subsection, a

18 member of the Council shall serve after the ex19 piration of the term of the member until the

20 successor to the member takes office.

21 ‘‘(2) ADJUSTMENT TO REDUCE COUNCIL.—

22 ‘‘(A) EXPIRATION OF TERMS.—The terms

23 of—
95

•S 856 RS

1 ‘‘(i) 8 members of the Council whose

2 terms would otherwise expire on September

3 3, 1996; and

4 ‘‘(ii) 1 member of the Council whose

5 term expired on September 3, 1995;

6 shall be deemed to expire on January 1, 1996.

7 ‘‘(B) TERMS.—The President shall appoint

8 3 members of the Council to succeed members

9 whose terms are deemed to expire as described

10 in subparagraph (A). The terms of the succes11 sors shall expire on September 3, 2002.

12 ‘‘(d) COMPENSATION.—Members of the Council shall

13 receive compensation at a rate to be fixed by the Chair14 person but not to exceed the daily equivalent of the maxi15 mum rate authorized for a position above grade GS–15

16 of the General Schedule under section 5108 of title 5,

17 United States Code, and be allowed travel expenses includ18 ing per diem in lieu of subsistence, as authorized under

19 section 5703 of title 5, United States Code, for persons

20 employed intermittently in Federal Government service.

21 ‘‘(e) MEETINGS AND DUTIES.—

22 ‘‘(1) MEETINGS.—The Council shall meet at

23 the call of the Chairperson but not less often than

24 twice during each calendar year. Eleven members of

25 the Council shall constitute a quorum.
96

•S 856 RS

1 ‘‘(2) DUTIES.—The Council shall—

2 ‘‘(A) advise the Chairperson with respect

3 to policies, programs, and procedures for carry4 ing out the functions of the Chairperson under

5 this title; and

6 ‘‘(B) review applications for grants author7 ized under this title and make recommendations

8 to the Chairperson with respect to the approval

9 of each application.

10 ‘‘(f) ACTIONS BY CHAIRPERSON.—

11 ‘‘(1) IN GENERAL.—The Chairperson shall not

12 approve or disapprove any application for a grant

13 authorized under this title until the Chairperson has

14 received the recommendation of the Council on such

15 application, unless the Council fails to make a rec16 ommendation on the application within a reasonable

17 time.

18 ‘‘(2) DELEGATIONS.—In the case of an applica19 tion submitted under this title and involving $30,000

20 or less, the Chairperson may approve or disapprove

21 such application if such action is taken pursuant to

22 the terms of an express and direct delegation of au23 thority from the Council to the Chairperson, and if

24 each such action by the Chairperson is reviewed by

25 the Council. The terms of any such delegation of au-
97

•S 856 RS

1 thority shall not permit obligations for expenditure

2 of funds under such delegation for any fiscal year

3 that exceed an amount equal to 3 percent of the

4 sums appropriated for the fiscal year pursuant to

5 section 104(b)(1).

6 ‘‘SEC. 306. LIMITATIONS ON GRANTS.

7 ‘‘(a) CRITERIA FOR ELIGIBILITY FOR GRANTS.—

8 ‘‘(1) DEFINITIONS.—As used in this subsection:

9 ‘‘(A) PRODUCTION ENTITY.—The term

10 ‘production entity’ means any partnership, cor11 poration, business enterprise, or other organiza12 tion engaged in the production of a film or pub13 lication.

14 ‘‘(B) GROUP.—The term ‘group’ includes

15 any State or local government, State or local

16 public agency, Indian tribe, or nonprofit asso17 ciation, organization, or society.

18 ‘‘(C) NATIONAL OF THE UNITED

19 STATES.—The term ‘national of the United

20 States’ means a citizen of the United States or

21 a person who owes permanent allegiance to the

22 United States.

23 ‘‘(2) CRITERIA.—The Chairperson, with the ad24 vice of the National Council on the Humanities,

25 shall establish criteria for eligibility for grants made
98

•S 856 RS

1 under this title. The criteria shall provide the follow2 ing:

3 ‘‘(A) GROUP.—A group shall be eligible to

4 receive a grant under this title if—

5 ‘‘(i) no part of the net earnings of the

6 group inures to the benefit of any private

7 stockholder, or individual; and

8 ‘‘(ii) a donation to such group is al9 lowable as a charitable contribution under

10 section 170(c) of the Internal Revenue

11 Code of 1986.

12 ‘‘(B) PRODUCTION ENTITY.—A production

13 entity shall be eligible to receive a grant under

14 this title if the Chairperson, with the advice of

15 the National Council on the Humanities, deter16 mines that providing such a grant will signifi17 cantly advance the knowledge or understanding

18 of the humanities in the United States.

19 ‘‘(C) INDIVIDUAL.—An individual shall be

20 eligible to receive a grant under this title if—

21 ‘‘(i) the individual is a citizen or na22 tional of the United States; and

23 ‘‘(ii) the Chairperson, with the advice

24 of the National Council on the Humanities,

25 determines that providing the grant will
99

•S 856 RS

1 significantly advance the knowledge or un2 derstanding of the humanities in the Unit3 ed States.

4 ‘‘(b) ADMISSION CHARGES.—No grant shall be made

5 under this title to an activity (other than an activity con6 ducted by a school, college, or university) for which a di7 rect or an indirect admission charge is requested if the

8 proceeds, after deducting reasonable costs, are used for

9 purposes other than assisting the grant recipient to de10 velop high standards of scholarly excellence or encourage

11 greater appreciation of the humanities by the citizens of

12 the United States.

13 ‘‘(c) LABOR STANDARDS.—The provisions of section

14 206(d) shall apply to activities financed under this title

15 in the same manner and to the same extent as the provi16 sions apply to activities financed under title II.

17 ‘‘SEC. 307. ADMINISTRATIVE PROVISIONS.

18 ‘‘(a) AUTHORITIES OF CHAIRPERSON.—In addition

19 to any authorities vested in the Chairperson by other pro20 visions of this Act, the Chairperson, in carrying out the

21 functions of the Chairperson, shall have authority—

22 ‘‘(1) to prescribe such regulations and proce23 dures as the Chairperson determines to be necessary

24 governing the manner in which the functions of the

25 Chairperson shall be carried out;
100

•S 856 RS

1 ‘‘(2)(A) to solicit, accept, receive, invest, and

2 use money and other property donated, bequeathed,

3 or devised to the Endowment, either absolutely or in

4 trust, with or without a condition or restriction, in5 cluding a condition that the Chairperson use other

6 funds of the Endowment for the purposes of the do7 nation, bequest, or devise; and

8 ‘‘(B) to add such property to the appropriations

9 for the Endowment as provided in section 104(b)(2),

10 and to use, sell, or otherwise dispose of such prop11 erty, for purposes of carrying out the activities of

12 the Endowment under this title;

13 ‘‘(3) to appoint and determine the compensa14 tion of such employees, subject to title 5, United

15 States Code, as may be necessary to carry out the

16 functions of the Chairperson, define their duties,

17 and supervise and direct their activities;

18 ‘‘(4) to procure the temporary and intermittent

19 services of experts and consultants, including panels

20 of experts, and compensate the experts and consult21 ants in accordance with section 3109 of title 5,

22 United States Code;

23 ‘‘(5) to accept and utilize the voluntary services

24 of individuals and reimburse the individuals for trav25 el expenses, including per diem in lieu of subsist-
101

•S 856 RS

1 ence, in the same amounts and to the same extent

2 as authorized under section 5703 of title 5, United

3 States Code, for persons employed intermittently in

4 Federal Government service;

5 ‘‘(6) to make advance, progress, and other pay6 ments without regard to section 3324 of title 331,

7 United States Code;

8 ‘‘(7) to rent office space in the District of Co9 lumbia; and

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

11 ‘‘(b) PUBLICATIONS.—Official publications of the En12 dowment under this title may be supported without regard

13 to the provisions of section 501 of title 44, United States

14 Code, if the Chairperson consults with the Joint Commit15 tee on Printing of the Congress.

16 ‘‘(c) COORDINATION.—The Chairperson shall coordi17 nate the programs of the Endowment, insofar as prac18 ticable, with other Federal programs, programs of des19 ignated State humanities agencies, and programs under20 taken by other public agencies or private groups, and shall

21 develop the programs of the Endowment with due regard

22 to the contribution to the objectives of this title that can

23 be made by other Federal agencies under the existing pro24 grams. The Chairperson may enter into interagency agree25 ments to promote or assist with the humanities-related ac-
102

•S 856 RS

1 tivities of other Federal agencies, on a reimbursable or

2 nonreimbursable basis, and may use funds authorized to

3 be appropriated to carry out this title to pay for the costs

4 of such promotion or assistance.

5 ‘‘SEC. 308. REPORTS.

6 ‘‘(a) ANNUAL REPORT OF CHAIRPERSON.—The

7 Chairperson shall submit an annual report to the Presi8 dent for submission to the appropriate committees of Con9 gress on or before the 15th day of April of each year. The

10 report shall summarize the activities of the Endowment

11 for the preceding year, and may include such evaluations

12 and other reports as the Chairperson determines to be ap13 propriate.

14 ‘‘(b) STATE OF THE HUMANITIES REPORT.—

15 ‘‘(1) IN GENERAL.—The Chairperson shall use

16 data submitted with State plans under section

17 302(c), and the information contained in reports

18 submitted by States under section 302(c) or this sec19 tion, to prepare a report on the state of the human20 ities in the United States.

21 ‘‘(2) CONTENTS.—The state of the humanities

22 report shall include a description of—

23 ‘‘(A) the availability of the programs of the

24 Endowment to emerging, rural, and culturally
103

•S 856 RS

1 diverse scholars, cultural and educational orga2 nizations, and communities; and

3 ‘‘(B) the participation by such scholars, or4 ganizations, and communities in such programs.

5 ‘‘(3) SUBMISSION.—The state of the humanities

6 report shall be submitted to the President and Con7 gress, and provided to the States, not later than Oc8 tober 1, 1996, and quadrennially thereafter.

9 ‘‘(c) FINANCIAL REPORTS AND COMPLIANCE.—

10 ‘‘(1) IN GENERAL.—It shall be a condition of

11 the receipt of a grant made under this title by the

12 Chairperson that each such grant recipient agree to

13 and comply with requirements to submit to the

14 Chairperson—

15 ‘‘(A) financial reports containing such in16 formation as the Chairperson determines to be

17 necessary to ensure that the funding provided

18 through the grant is expended in accordance

19 with the terms and conditions under which the

20 grant is made;

21 ‘‘(B) a report describing the activity car22 ried out with the funding provided through the

23 grant and the compliance by the grant recipient

24 with the conditions of receipt of such grant, in25 cluding the condition that the work assisted
104

•S 856 RS

1 meet the standards of excellence in humanities

2 and significance in the humanities; and

3 ‘‘(C) if practicable, as determined by the

4 Chairperson, a copy of the work resulting from

5 the activity.

6 ‘‘(2) REPORTS.—The reports and copy de7 scribed in paragraph (1) shall be due not later than

8 90 days after the end of the period for which such

9 grant recipient receives funding through the grant or

10 90 days after the completion of the work, whichever

11 occurs earlier. The Chairperson may extend the 90-

12 day period if the recipient shows good cause why

13 such an extension should be granted.

14 ‘‘(d) EVALUATION.—The Chairperson shall conduct

15 a post-award evaluation of activities for which grants are

16 made by the Chairperson under this title. Such evaluation

17 may include an audit to determine the accuracy of the re18 ports required to be submitted by grant recipients under

19 subsection (c).

20 ‘‘(e) ANNUAL REPORT OF NATIONAL COUNCIL ON

21 THE HUMANITIES.—

22 ‘‘(1) IN GENERAL.—The National Council on

23 the Humanities shall submit an annual report to the

24 President for submission to the appropriate commit-
105

•S 856 RS

1 tees of Congress on or before the 15th day of April

2 of each year.

3 ‘‘(2) CONTENTS.—The report shall include writ4 ten records summarizing—

5 ‘‘(A) all meetings and discussions of the

6 Council; and

7 ‘‘(B) recommendations made by the Coun8 cil to the Chairperson.

9 ‘‘(3) PRIVACY.—The Council shall ensure that

10 the information contained in the report will be pre11 sented in a manner that protects the privacy of indi12 vidual applicants for grants authorized under this

13 title and Council members.

14 ‘‘SEC. 309. SANCTIONS AND PAYMENTS.

15 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recip16 ient of a grant made under this title, or an indirect recipi17 ent of funding provided through the grant, substantially

18 fails to satisfy the purposes for which such grant is made,

19 as determined by the Chairperson, the Chairperson may—

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

21 make any subsequent funding to the direct or indi22 rect recipient under this title, take into consideration

23 the results of the post-award evaluation conducted

24 under section 308(d);
106

•S 856 RS

1 ‘‘(2) prohibit the direct and indirect recipients

2 from using the name of, or in any way associating

3 the project, production, or workshop for which the

4 grant was received with, the Endowment; and

5 ‘‘(3) if such project, production, or workshop is

6 published, require that the publication contain the

7 following statement: ‘The opinions, findings, conclu8 sions, and recommendations expressed in this publi9 cation do not reflect the views of the National En10 dowment for the Humanities.’.

11 ‘‘(b) NONCOMPLIANCE.—

12 ‘‘(1) IN GENERAL.—The Chairperson shall take

13 the actions described in paragraph (2) whenever the

14 Chairperson, after providing reasonable notice and

15 an opportunity for hearing, finds that—

16 ‘‘(A) a direct recipient of a grant under

17 this title, or an indirect recipient of funding

18 provided through the grant, is not complying

19 substantially with the provisions of this title;

20 ‘‘(B) a State agency that received a grant

21 under this title, or an indirect recipient of fund22 ing provided through the grant, is not comply23 ing substantially with terms and conditions of

24 the State plan accompanying the application

25 approved for the grant under this title; or
107

•S 856 RS

1 ‘‘(C) any funding provided under this title

2 to a recipient or State agency described in sub3 paragraph (A) or (B) has been diverted from

4 the purposes for which such funding was pro5 vided.

6 ‘‘(2) ACTIONS.—On making the finding de7 scribed in paragraph (1), the Chairperson shall im8 mediately notify the direct recipient or State agency

9 that received the funding at issue that—

10 ‘‘(A) no further funding will be provided

11 under this title to such recipient or agency until

12 there is no longer any default or failure to com13 ply or the diversion is corrected; or

14 ‘‘(B) if compliance or correction is impos15 sible, until such recipient or agency repays or

16 arranges the repayment of the Federal funds

17 that were improperly diverted or expended.

18 ‘‘(c) PROGRAM INCOME.—

19 ‘‘(1) IN GENERAL.—A recipient of funding

20 under this title shall pay the amount described in

21 paragraph (2) to the Endowment if the Chairperson

22 finds that the recipient has derived program income

23 from the activities funded that exceeds the lesser

24 of—

25 ‘‘(A) $50,000; or
108

•S 856 RS

1 ‘‘(B) twice the amount of the funding.

2 ‘‘(2) AMOUNT.—The amount referred to in

paragraph (1) is 1 3 ⁄3 of the amount of the revenue,

4 but not more than the amount of the funding.

5 ‘‘(d) ACCOUNT.—Except as otherwise provided in this

6 Act, the Treasurer of the United States shall deposit funds

7 paid under subsection (c), or repaid under this Act, in a

8 special interest bearing account to the credit of the En9 dowment.

10 ‘‘SEC. 310. AWARDS.

11 ‘‘The Chairperson, with the advice of the National

12 Council on the Humanities, may make the following an13 nual awards:

14 ‘‘(1) JEFFERSON LECTURE IN THE HUMANITIES

15 AWARD.—The Chairperson may award annually the

16 Jefferson Lecture in the Humanities Award to 1 in17 dividual for distinguished intellectual achievement in

18 the humanities. Each such award shall not exceed

19 $10,000.

20 ‘‘(2) CHARLES FRANKEL PRIZE.—The Chair21 person may award annually the Charles Frankel

22 Prize to honor individuals who have made outstand23 ing contributions to the public understanding of the

24 humanities. Not more than 5 individuals may receive
109

•S 856 RS

1 such prize each year. Each such prize shall not ex2 ceed $5,000.’’.

3 SEC. 102. CONFORMING AMENDMENTS.

4 Section 8G of the Inspector General Act of 1978 (5

5 U.S.C. App.) is amended—

6 (1) in subsection (a)—

7 (A) in paragraph (2), by striking ‘‘the Na8 tional Endowment for the Arts, the National

9 Endowment for the Humanities,’’ and inserting

10 ‘‘the portion of the National Foundation on the

11 Arts and the Humanities consisting of the Na12 tional Endowment for the Arts and the Na13 tional Endowment for the Humanities,’’; and

14 (B) in paragraph (4), by striking ‘‘except

15 that’’ and all that follows and inserting the fol16 lowing: ‘‘except that—

17 ‘‘(A) with respect to the National Science

18 Foundation, such term means the National

19 Science Board; and

20 ‘‘(B) with respect to the National Endow21 ment for the Arts and the National Endowment

22 for the Humanities, the term means the Chair23 person of the National Endowment for the Arts

24 with respect to matters relating to the National

25 Endowment for the Arts and the Chairperson of
110

•S 856 RS

1 the National Endowment for the Humanities

2 with respect to matters relating to the Chair3 person of the National Endowment for the Hu4 manities;’’;

5 (2) in subsection (c), by inserting before the pe6 riod the following: ‘‘, except that the Inspector Gen7 eral for the National Endowment for the Arts and

8 the National Endowment for the Humanities shall

9 be jointly appointed by the Chairperson of the Na10 tional Endowment for the Arts and the Chairperson

11 of the National Endowment for the Humanities’’;

12 and

13 (3) in the first sentence of subsection (d), by in14 serting before the period the following: ‘‘, except as

15 provided in section 103 of the National Foundation

16 on the Arts and the Humanities Act of 1965’’.

17 TITLE II—MUSEUM AND

18 LIBRARY SERVICES ACT

19 SEC. 201. MUSEUM AND LIBRARY SERVICES.

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

21 is amended to read as follows:
111

•S 856 RS

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

11 Information Science established under section 3 of

12 the National Commission on Libraries and Informa13 tion Science Act (20 U.S.C. 1502).

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

15 the Director of the Institute appointed under section

16 204.

17 ‘‘(3) FOUNDATION.—The term ‘Foundation’

18 means the National Foundation on the Arts and the

19 Humanities.

20 ‘‘(4) INSTITUTE.—The term ‘Institute’ means

21 the Institute of Museum and Library Services estab22 lished under section 203.

23 ‘‘(5) MUSEUM BOARD.—The term ‘Museum

24 Board’ means the National Museum Services Board

25 established under section 276.
112

•S 856 RS

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

2 ‘‘(a) ESTABLISHMENT.—There is established within

3 the Foundation an Institute of Museum and Library Serv4 ices.

5 ‘‘(b) OFFICES.—The Institute shall consist of an Of6 fice of Museum Services and an Office of Library Services.

7 There shall be a National Museum Services Board in the

8 Office of Museum Services.

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

10 ‘‘(a) APPOINTMENT.—

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

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

13 and with the advice and consent of the Senate.

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

15 term of 4 years.

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

17 first individual appointed to the position of Director

18 after the date of enactment of the Arts, Humanities,

19 and Museum Amendments of 1995, every second in20 dividual so appointed shall be appointed from among

21 individuals who have special competence with regard

22 to library and information services. Beginning with

23 the second individual appointed to the position of

24 Director after the date of enactment of the Arts,

25 Humanities, and Museum Amendments of 1995,

26 every second individual so appointed shall be ap-
113

•S 856 RS

1 pointed from among individuals who have special

2 competence with regard to museum services.

3 ‘‘(b) COMPENSATION.—The Director shall be com4 pensated at the rate provided for level III of the Executive

5 Schedule under section 5314 of title 5, United States

6 Code.

7 ‘‘(c) DUTIES AND POWERS.—The Director shall per8 form such duties and exercise such powers as may be pre9 scribed by law, including—

10 ‘‘(1) awarding financial assistance for activities

11 described in this title; and

12 ‘‘(2) using not less than 5 percent and not more

13 than 7 percent of the funds made available under

14 this title for each fiscal year to award financial as15 sistance for projects that involve both—

16 ‘‘(A) activities relating to library services,

17 as described in subtitle B, carried out in ac18 cordance with such subtitle; and

19 ‘‘(B) activities relating to museum services,

20 as described in subtitle C, carried out in accord21 ance with such subtitle.

22 ‘‘(d) NONDELEGATION.—The Director shall not dele23 gate any of the functions of the Director to any person

24 who is not directly responsible to the Director.
114

•S 856 RS

1 ‘‘(e) COORDINATION.—The Director shall ensure co2 ordination of the policies and activities of the Institute

3 with the policies and activities of other agencies and of4 fices of the Federal Government having interest in and

5 responsibilities for the improvement of museums and li6 braries. Such agencies and offices shall include the Na7 tional Endowment for the Arts, the National Endowment

8 for the Humanities, the National Science Foundation, ap9 propriate units in the Department of Education, the Li10 brary of Congress, the Smithsonian Institution, and relat11 ed agencies and offices.

12 ‘‘SEC. 205. DEPUTY DIRECTORS.

13 ‘‘(a) APPOINTMENT.—The Office of Library Services

14 shall be headed by a Deputy Director, who shall be ap15 pointed by the Director. The Office of Museum Services

16 shall be headed by a Deputy Director, who shall be ap17 pointed by the Director.

18 ‘‘(b) COMPENSATION.—Each such position of Deputy

19 Director shall be a Senior Executive Service position,

20 which shall be paid at a rate of pay for a position at ES–

21 1 of the Senior Executive Service schedule.

22 ‘‘SEC. 206. PERSONNEL.

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

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

25 appoint and determine the compensation of such employ-
115

•S 856 RS

1 ees as the Director determines to be necessary to carry

2 out the duties of the Institute.

3 ‘‘(b) VOLUNTARY SERVICES.—The Director may ac4 cept and utilize the voluntary services of individuals and

5 reimburse the individuals for travel expenses, including

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

7 to the same extent as authorized under section 5703 of

8 title 5, United States Code, for persons employed intermit9 tently in Federal Government service.

10 ‘‘SEC. 207. CONTRIBUTIONS.

11 ‘‘The Institute shall have authority to solicit, accept,

12 receive, and invest in the name of the United States, gifts,

13 bequests, or devises of money and other property or serv14 ices and to use such property or services in furtherance

15 of the functions of the Institute. Any proceeds from such

16 gifts, bequests, or devises, after acceptance by the Insti17 tute, shall be paid by the donor or the representative of

18 the donor to the Director. The Director shall enter the

19 proceeds in a special interest bearing account to the credit

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

21 ‘‘Subtitle B—Library Services and

22 Technology

23 ‘‘SEC. 211. SHORT TITLE.

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

25 and Technology Act’.
116

•S 856 RS

1 ‘‘SEC. 212. STATEMENT OF PURPOSE; RECOGNITION OF

2 NEED.

3 ‘‘(a) STATEMENT OF PURPOSE.—The purposes of

4 this subtitle are as follows:

5 ‘‘(1) To stimulate excellence and promote equity

6 and lifelong access to learning and information re7 sources in all types of libraries.

8 ‘‘(2) To combine the ability of the Federal Gov9 ernment to stimulate significant improvement and

10 innovation in library services with support at State

11 and local levels, and with cooperative programs with

12 other agencies and with public and private sector

13 partnerships, to achieve national library service

14 goals.

15 ‘‘(3) To establish national library service goals

16 for the 21st century. Such goals are that every per17 son in America will be served by a library that—

18 ‘‘(A) provides all users access to informa19 tion through regional, State, national and inter20 national electronic networks;

21 ‘‘(B) contributes to a productive workforce,

22 and to economic development, by providing re23 sources and services designed to meet local

24 community needs;
117

•S 856 RS

1 ‘‘(C) provides a full range of resources and

2 programs to develop reading and critical think3 ing skills for children and adults;

4 ‘‘(D) provides targeted services to people

5 of diverse geographic, cultural and socio6 economic backgrounds, to individuals with dis7 abilities, and to people with limited functional

8 literacy or information skills; and

9 ‘‘(E) provides adequate hours of operation,

10 facilities, staff, collections, and electronic access

11 to information.

12 ‘‘(b) RECOGNITION OF NEED.—The Congress recog13 nizes that strong library services are essential to empower

14 people to succeed in our Nation’s increasingly global and

15 technological environment.

16 ‘‘SEC. 213. DEFINITIONS.

17 ‘‘As used in this subtitle:

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

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

20 group or community, including any Alaskan native

21 village, regional corporation, or village corporation,

22 as defined in or established pursuant to the Alaskan

23 Native Claims Settlement Act, which is recognized

24 by the Secretary of the Interior as eligible for the

25 special programs and services provided by the Unit-
118

•S 856 RS

1 ed States to Indians because of their status as Indi2 ans.

3 ‘‘(2) LIBRARY CONSORTIA.—The term ‘library

4 consortia’ means any local, statewide, regional, inter5 state, or international cooperative association of li6 brary entities which provides for the systematic and

7 effective coordination of the resources of school, pub8 lic, academic, and special libraries and information

9 centers for improved services for their clientele.

10 ‘‘(3) LIBRARY ENTITY.—The term ‘library en11 tity’ means a library that performs all activities of

12 a library relating to the collection and organization

13 of library materials and other information and that

14 makes the materials and information publicly avail15 able. Such term includes State library administrative

16 agencies and the libraries, library related entities,

17 cooperatives, and consortia through which library

18 services are made publicly available.

19 ‘‘(4) PUBLIC LIBRARY.—The term ‘public li20 brary’ means a library that serves free of charge all

21 residents of a community, district, or region, and re22 ceives its financial support in whole or in part from

23 public funds. Such term also includes a research li24 brary, which, for the purposes of this sentence,

25 means a library, which—
119

•S 856 RS

1 ‘‘(A) makes its services available to the

2 public free of charge;

3 ‘‘(B) has extensive collections of books,

4 manuscripts, and other materials suitable for

5 scholarly research which are not available to the

6 public through public libraries;

7 ‘‘(C) engages in the dissemination of hu8 manistic knowledge through services to readers,

9 fellowships, educational and cultural programs,

10 publications of significant research, and other

11 activities; and

12 ‘‘(D) is not an integral part of an institu13 tion of higher education.

14 ‘‘(5) STATE.—The term ‘State’, unless other15 wise specified, includes the several States of the

16 United States, the District of Columbia, the Com17 monwealth of Puerto Rico, Guam, American Samoa,

18 the Virgin Islands, the Commonwealth of the North19 ern Mariana Islands, the Republic of the Marshall

20 Islands, the Federated States of Micronesia, and the

21 Republic of Palau.

22 ‘‘(6) STATE ADVISORY COUNCIL.—The term

23 ‘State advisory council’ means an advisory council

24 established pursuant to section 252.
120

•S 856 RS

1 ‘‘(7) STATE LIBRARY ADMINISTRATIVE AGEN2 CY.—The term ‘State library administrative agency’

3 means the official agency of a State charged by law

4 of that State with the extension and development of

5 public library services throughout the State, which

6 has adequate authority under law of the State to ad7 minister the State plan in accordance with the provi8 sions of this subtitle.

9 ‘‘(8) STATE PLAN.—The term ‘State plan’

10 means the document which gives assurances that the

11 officially designated State library administrative

12 agency has the fiscal and legal authority and capa13 bility to administer all aspects of this subtitle, pro14 vides assurances for establishing the State’s policies,

15 priorities, criteria, and procedures necessary to the

16 implementation of all programs under this subtitle,

17 submits copies for approval as required by regula18 tions promulgated by the Director, and identifies a

19 State’s library needs and sets forth the activities to

20 be taken toward meeting the identified needs sup21 ported with the assistance of Federal funds made

22 available under this subtitle.

23 ‘‘SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

24 ‘‘(a) AUTHORITY.—
121

•S 856 RS

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

2 appropriated to the Secretary of Education—

3 ‘‘(A) for the purpose of awarding grants

4 under subchapter A of chapter 2 and for relat5 ed administrative expenses, $75,000,000 for fis6 cal year 1996, and such sums as may be nec7 essary for each of the 4 succeeding fiscal years;

8 and

9 ‘‘(B) for the purpose of awarding grants

10 under subchapter B of chapter 2 and for relat11 ed administrative expenses, $75,000,000 for fis12 cal year 1996, and such sums as may be nec13 essary for each of the 4 succeeding fiscal years.

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

15 shall transfer any funds appropriated under the au16 thority of paragraph (1) to the Director to enable

17 the Director to carry out this subtitle.

18 ‘‘(b) JOINT PROJECTS.—Not less than 5 percent and

19 not more than 7 percent of the funds appropriated under

20 this section for a fiscal year may be made available for

21 projects described in section 204(c)(2) for the fiscal year.

22 ‘‘(c) ADMINISTRATION.—Not more than 10 percent

23 of the funds appropriated under this section for a fiscal

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

25 carrying out this subtitle.
122

•S 856 RS

1 ‘‘CHAPTER 1—BASIC PROGRAM

2 REQUIREMENTS

3 ‘‘SEC. 221. RESERVATIONS AND ALLOTMENTS.

4 ‘‘(a) RESERVATIONS.—From the amount appro5 priated under the authority of section 214(a) for any fiscal

6 year, the Director—

7 ‘‘(1) shall reserve 2 percent to award grants in

8 accordance with section 261; and

9 ‘‘(2) shall reserve 8 percent to carry out a na10 tional leadership program in library science in ac11 cordance with section 262.

12 ‘‘(b) ALLOTMENTS.—

13 ‘‘(1) IN GENERAL.—From the sums appro14 priated under the authority of section 214(a) and

15 not reserved under subsection (a) for any fiscal year,

16 the Director shall allot the minimum allotment, as

17 determined under paragraph (3), to each State. Any

18 sums remaining after minimum allotments have been

19 made for such year shall be allotted in the manner

20 set forth in paragraph (2).

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

22 sums appropriated under the authority of section

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

24 and not allotted under paragraph (1) for any fiscal

25 year, the Director shall allot to each State an
123

•S 856 RS

1 amount that bears the same relation to such remain2 der as the population of the State bears to the popu3 lation of all the States.

4 ‘‘(3) MINIMUM ALLOTMENT.—

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

6 this subsection, the minimum allotment shall

7 be—

8 ‘‘(i) with respect to appropriations for

9 the purposes of subchapter A of chapter 2,

10 $200,000 for each State, except that the

11 minimum allotment shall be $40,000 in the

12 case of Guam, American Samoa, the Virgin

13 Islands, the Commonwealth of the North14 ern Mariana Islands, the Republic of the

15 Marshall Islands, the Federated States of

16 Micronesia, and the Republic of Palau; and

17 ‘‘(ii) with respect to appropriations for

18 the purposes of subchapter B of chapter 2,

19 $200,000 for each State, except that the

20 minimum allotment shall be $40,000 in the

21 case of Guam, American Samoa, the Virgin

22 Islands, the Commonwealth of the North23 ern Mariana Islands, the Republic of the

24 Marshall Islands, the Federated States of

25 Micronesia, and the Republic of Palau.
124

•S 856 RS

1 ‘‘(B) RATABLE REDUCTIONS.—If the sums

2 appropriated under the authority of section

3 214(a) and not reserved under subsection (a)

4 for any fiscal year are insufficient to fully sat5 isfy the aggregate of the minimum allotments

6 for all States for that purpose for such year,

7 each of such minimum allotments shall be re8 duced ratably.

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

10 of all the States shall be determined by the Director

11 on the basis of the most recent data available from

12 the Bureau of the Census.

13 ‘‘SEC. 222. ADMINISTRATION AND EVALUATION.

14 ‘‘(a) IN GENERAL.—Not more than 5 percent of the

15 total funds received under this subtitle for any fiscal year

16 by a State may be used for administration and ongoing

17 State evaluations under section 251.

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

19 be construed to limit spending for evaluation costs under

20 section 251 from sources other than this subtitle.

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

23 ‘‘(a) PAYMENTS.—The Director shall pay to each

24 State library administrative agency having a State plan
125

•S 856 RS

1 approved under section 224 the Federal share of the cost

2 of the activities described in the State plan.

3 ‘‘(b) FEDERAL SHARE.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (3), the Federal share shall be 50 percent.

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

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

9 ‘‘(3) SPECIAL RULE.—The Federal share—

10 ‘‘(A) for the Commonwealth of Puerto

11 Rico, Guam, American Samoa, the Virgin Is12 lands, and the Commonwealth of the Northern

13 Mariana Islands, shall be 66 percent; and

14 ‘‘(B) for the Republic of the Marshall Is15 lands, the Federated States of Micronesia, and

16 the Republic of Palau, shall be 100 percent.

17 ‘‘(c) MAINTENANCE OF EFFORT.—

18 ‘‘(1) IN GENERAL.—The amount otherwise pay19 able to a State for a fiscal year under chapter 2

20 shall be reduced if the level of State expenditures, as

21 described in paragraph (2), for the previous fiscal

22 year are less than the average of the total of such

23 expenditures for the 3 fiscal years preceding that

24 previous fiscal year. The amount of the reduction in

25 allotment for any fiscal year shall be in exact pro-
126

•S 856 RS

1 portion to the amount which the State fails to meet

2 the requirement of this subsection.

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

4 level of State expenditures for the purposes of para5 graph (1) shall include all State dollars expended by

6 the State library administrative agency for library

7 programs that are consistent with the purposes of

8 this subtitle. All funds included in the maintenance

9 of effort calculation under this subsection shall be

10 expended during the fiscal year for which the deter11 mination is made, and shall not include capital ex12 penditures, special one-time project costs, or similar

13 windfalls.

14 ‘‘(3) WAIVER.—The Director may waive the re15 quirements of paragraph (1) if the Director deter16 mines that such a waiver would be equitable due to

17 exceptional or uncontrollable circumstances such as

18 a natural disaster or a precipitous and unforeseen

19 decline in the financial resources of the State.

20 ‘‘SEC. 224. STATE PLANS.

21 ‘‘(a) STATE PLAN REQUIRED.—

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

23 receive a grant under this subtitle, a State library

24 administrative agency shall submit a State plan to

25 the Director not later than April 1, 1996.
127

•S 856 RS

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

2 period of 4 fiscal years.

3 ‘‘(3) REVISIONS.—If a State library administra4 tive agency makes a substantive revision to its State

5 plan, then the State library administrative agency

6 shall submit to the Director an amendment to the

7 State plan containing such revision not later than

8 April 1 of the fiscal year preceding the fiscal year

9 for which the amendment will be effective.

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

11 ‘‘(1) specify priorities for improvement of li12 brary services so that all people in the State have

13 convenient and appropriate access to information de14 livered by libraries through new and emerging tech15 nologies assisted under subchapter A of chapter 2;

16 ‘‘(2) identify those persons who need special

17 services under subchapter B of chapter 2 and specify

18 priorities for meeting the purpose described in sec19 tion 241(a);

20 ‘‘(3) describe how section 243 will be imple21 mented within the State, specify the accountability

22 and evaluation procedures to be followed by public li23 braries receiving funds under such section, and

24 specify whether and how funds are to be aggregated

25 under section 243(b)(2) to improve library services
128

•S 856 RS

1 provided to children in the State described in section

2 243(a)(2);

3 ‘‘(4) describe the activities and services for

4 which assistance is sought, including—

5 ‘‘(A) priorities for the use of funds under

6 this subtitle; and

7 ‘‘(B) a description of the types of libraries

8 and library entities that will be eligible to re9 ceive funds under this subtitle;

10 ‘‘(5) provide that any funds paid to the State

11 in accordance with the State plan shall be expended

12 solely for the purposes for which the funds are au13 thorized and appropriated and that such fiscal con14 trol and fund accounting procedures have been

15 adopted as may be necessary to assure proper dis16 bursement of, and account for, Federal funds paid

17 to the State (including any such funds paid by the

18 State to any other entity) under this subtitle;

19 ‘‘(6) provide procedures to ensure that the

20 State library administrative agency shall involve li21 braries and users throughout the State in policy de22 cisions regarding implementation of this subtitle,

23 and development of the State plan, including estab24 lishing the State advisory council;
129

•S 856 RS

1 ‘‘(7) provide satisfactory assurance that the

2 State library administrative agency—

3 ‘‘(A) will make such reports, in such form

4 and containing such information, as the Direc5 tor may require to carry out this subtitle and

6 to determine the extent to which funds provided

7 under this subtitle have been effective in carry8 ing out the purposes of this subtitle, including

9 reports on evaluations under section 251;

10 ‘‘(B) will keep such records and afford

11 such access thereto as the Director may find

12 necessary to assure the correctness and verifica13 tion of such reports;

14 ‘‘(C) will provide to State advisory council

15 members an orientation regarding the provi16 sions of this subtitle and members’ responsibil17 ities, including clear, easily understandable in18 formation about the State plan; and

19 ‘‘(D) will report annually at a meeting of

20 the State advisory council on the State library

21 administrative agency’s progress toward meet22 ing the goals and objectives of the State plan;

23 ‘‘(8) describe the process for assessing the

24 needs for library and information services within the
130

•S 856 RS

1 State, and describe the results of the most recent

2 needs assessment;

3 ‘‘(9) establish goals and objectives for achieving

4 within the State the purposes of this subtitle, includ5 ing the purposes in sections 212(a), 231(a), and

6 241(a); and

7 ‘‘(10) describe how the State library adminis8 trative agency, in consultation with the State advi9 sory council, will—

10 ‘‘(A) administer this subtitle; and

11 ‘‘(B) conduct evaluations under section

12 251, including a description of the types of

13 evaluation methodologies to be employed.

14 ‘‘(c) ACCOUNTABILITY.—Each State plan shall—

15 ‘‘(1) establish State-defined performance goals

16 to set forth the level of performance to be achieved

17 by an activity assisted under this subtitle;

18 ‘‘(2) express such goals in an objective, quan19 tifiable, and measurable form unless authorized to

20 be in an alternative form in accordance with section

21 1115(b) of title 31, United States Code;

22 ‘‘(3) briefly describe the operational processes,

23 skills and technology, and the human, capital, infor24 mation, or other resources, required to meet the per25 formance goals;
131

•S 856 RS

1 ‘‘(4) establish performance indicators in accord2 ance with subsection (d) to be used in measuring or

3 assessing the relevant outputs, service levels, and

4 outcomes, of each activity assisted under this sub5 title;

6 ‘‘(5) provide a basis for comparing actual pro7 gram results with the established performance goals;

8 and

9 ‘‘(6) describe the means to be used to verify

10 and validate measured values.

11 ‘‘(d) PERFORMANCE INDICATORS.—Performance in12 dicators described in subsection (c)(4) shall include—

13 ‘‘(1) evidence of progress toward the national li14 brary service goals under section 212(a)(3);

15 ‘‘(2) consultation with the State educational

16 agency;

17 ‘‘(3) identification of activities suitable for na18 tionwide replication; and

19 ‘‘(4) progress in improvement of library services

20 provided to children described in section 243(a)(2).

21 ‘‘(e) APPROVAL.—

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

23 any State plan under this subtitle that meets the re24 quirements of this subtitle and provides satisfactory
132

•S 856 RS

1 assurances that the provisions of such plan will be

2 carried out.

3 ‘‘(2) PUBLIC AVAILABILITY.—Each State li4 brary administrative agency receiving a grant under

5 this subtitle shall make the State plan available to

6 the public.

7 ‘‘(3) ADMINISTRATION.—If the Director deter8 mines that the State plan does not meet the require9 ments of this section, the Director shall—

10 ‘‘(A) immediately notify the State library

11 administrative agency of such determination

12 and the reasons for such determination;

13 ‘‘(B) offer the State library administrative

14 agency the opportunity to revise its State plan;

15 ‘‘(C) provide technical assistance in order

16 to assist the State library administrative agency

17 to meet the requirements of this section; and

18 ‘‘(D) provide the State library administra19 tive agency the opportunity for a hearing.
133

•S 856 RS

1 ‘‘CHAPTER 2—LIBRARY PROGRAMS

2 ‘‘Subchapter A—Information Access Through

3 Technology

4 ‘‘SEC. 231. GRANTS TO STATES FOR INFORMATION ACCESS

5 THROUGH TECHNOLOGY.

6 ‘‘(a) PURPOSE.—The purpose of this subchapter is

7 to provide for the improvement of library services so that

8 all people have access to information delivered by libraries

9 through new and emerging technologies, whether the in10 formation originates locally, from the State, nationally, or

11 globally.

12 ‘‘(b) GRANTS.—

13 ‘‘(1) IN GENERAL.—The Director shall award

14 grants under this subchapter from allotments under

15 section 221(b) to States that have State plans ap16 proved under section 224.

17 ‘‘(2) FEDERAL SHARE.—Grants awarded under

18 paragraph (1) shall be used to pay the Federal share

19 of the cost of activities under section 232 that are

20 described in a State plan approved under section

21 224.

22 ‘‘SEC. 232. AUTHORIZED ACTIVITIES.

23 ‘‘Each State that receives a grant under section

24 231(b) may use the grant funds to provide statewide serv25 ices and subgrants to public libraries, other types of librar-
134

•S 856 RS

1 ies and library consortia, or library linkages with other

2 entities, in accordance with the State plan. Such services

3 and subgrants shall involve—

4 ‘‘(1) organization, access and delivery of infor5 mation;

6 ‘‘(2) lifelong learning, and workforce and eco7 nomic development; or

8 ‘‘(3) support of technology infrastructure.

9 ‘‘Subchapter B—Information Empowerment

10 Through Special Services

11 ‘‘SEC. 241. GRANTS TO STATES FOR INFORMATION

12 EMPOWERMENT THROUGH SPECIAL SERV13 ICES.

14 ‘‘(a) PURPOSE.—The purpose of this subchapter is

15 to provide for the improvement of library and information

16 services targeted to persons of all ages and cultures who

17 have difficulty using a library and to communities which

18 are geographically disadvantaged in access to libraries,

19 who or which need special materials or services, or who

20 or which will benefit from outreach services for equity of

21 access to library services and information technologies, in22 cluding children (from birth through age 17) from families

23 living below the income official poverty line (as defined

24 by the Office of Management and Budget, and revised an25 nually in accordance with section 673(2) of the Commu-
135

•S 856 RS

1 nity Services Block Grant Act (42 U.S.C. 9902(2)) appli2 cable to a family of the size involved).

3 ‘‘(b) GRANTS.—

4 ‘‘(1) IN GENERAL.—The Director shall award

5 grants under this subchapter from allotments under

6 section 221(b) to States that have State plans ap7 proved under section 224.

8 ‘‘(2) FEDERAL SHARE.—Grants awarded under

9 paragraph (1) shall be used to pay the Federal share

10 of the cost of the activities under section 242 that

11 are described in a State plan approved under section

12 224.

13 ‘‘SEC. 242. AUTHORIZED ACTIVITIES.

14 ‘‘Each State that receives a grant under section

15 241(b) may use the grant funds to provide statewide serv16 ices and subgrants to public libraries, other types of librar17 ies and library consortia, or library linkages with other

18 entities, in accordance with the State plan. Such services

19 and subgrants shall involve activities that—

20 ‘‘(1) increase literacy and lifelong learning;

21 ‘‘(2) serve persons in rural, underserved or

22 inner-city areas; or

23 ‘‘(3) support the provision of special services.

24 ‘‘SEC. 243. SERVICES FOR CHILDREN IN POVERTY.

25 ‘‘(a) STATE LEVEL RESERVATION.—
136

•S 856 RS

1 ‘‘(1) IN GENERAL.—Except as provided in sub2 section (c), from the total amount that each State

3 library administrative agency receives under this

4 subchapter for a fiscal year, such agency shall re5 serve the amount of funds determined under para6 graph (2) to provide assistance to public libraries in

7 the State to enable such libraries to enhance the

8 provision of special services to children described in

9 such paragraph who are served by such libraries.

10 ‘‘(2) AMOUNT.—The amount of funds a State

11 library administrative agency shall reserve under

12 paragraph (1) shall be equal to the sum of—

13 ‘‘(A) $1.50 for every preschooler (birth

14 through age 5) in the State from a family living

15 below the income official poverty line (as de16 fined by the Office of Management and Budget,

17 and revised annually in accordance with section

18 673(2) of the Community Services Block Grant

19 Act (42 U.S.C. 9902(2)) applicable to a family

20 of the size involved); and

21 ‘‘(B) $1.00 for every school-age child (ages

22 6 through 17) in the State from such a family.

23 ‘‘(b) WITHIN STATE DISTRIBUTION.—

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (2), each public library in a State shall receive
137

•S 856 RS

1 under this section for a fiscal year an amount that

2 bears the same relation to the amount the State li3 brary administrative agency reserves under sub4 section (a) for such year as the number of children

5 described in subsection (a)(2) served by such public

6 library for the preceding fiscal year bears to the

7 number of such children served by all public libraries

8 in the State for such preceding fiscal year.

9 ‘‘(2) EXCEPTION.—

10 ‘‘(A) IN GENERAL.—If a State library ad11 ministrative agency determines that the amount

12 available under paragraph (1) for a fiscal year

13 for 2 or more public libraries is too small to be

14 effective, then such agency may aggregate such

15 amounts for such year.

16 ‘‘(B) REQUIREMENTS.—Each State library

17 administrative agency aggregating amounts

18 under subparagraph (A) for a fiscal year—

19 ‘‘(i) shall only aggregate the amount

20 available under paragraph (1) for a public

21 library for a fiscal year if the amount so

22 available for such year is $3,000 or less;

23 and

24 ‘‘(ii) shall use such aggregated

25 amounts to enhance the library services
138

•S 856 RS

1 provided to the children described in sub2 section (a)(2) served by the public libraries

3 for which such agency aggregated such

4 amounts for such year.

5 ‘‘(c) ADJUSTMENTS.—

6 ‘‘(1) APPROPRIATIONS INCREASE.—For any fis7 cal year for which the amount appropriated to carry

8 out this subtitle is greater than the amount appro9 priated to carry out this subtitle for the preceding

10 fiscal year by a percentage that equals or exceeds 10

11 percent, the amount each State library administra12 tive agency shall reserve under subsection (a)(2) for

13 the fiscal year for which the determination is made

14 shall be increased by the same such percentage.

15 ‘‘(2) APPROPRIATIONS DECREASE.—For any

16 fiscal year for which the amount appropriated to

17 carry out this subtitle is less than the amount ap18 propriated to carry out this subtitle for the preced19 ing fiscal year by a percentage that equals or ex20 ceeds 10 percent, the amount each State library ad21 ministrative agency shall reserve under subsection

22 (a)(2) for the fiscal year for which the determination

23 is made shall be decreased by the same such per24 centage.
139

•S 856 RS

1 ‘‘(d) PLAN.—Each public library desiring assistance

2 under this section shall submit a plan for the expenditure

3 of funds under this section to the State library administra4 tive agency. Such plan shall include a description of how

5 the library will—

6 ‘‘(1) identify the children described in sub7 section (a)(2);

8 ‘‘(2) collaborate with community representatives

9 to ensure planning and implementation of appro10 priate, helpful library services; and

11 ‘‘(3) establish indicators of success.

12 ‘‘(e) PRIORITIES.—Priorities for the use of funds

13 under this section may include activities for children de14 scribed in subsection (a)(2) such as—

15 ‘‘(1) development of after-school homework sup16 port;

17 ‘‘(2) development of family literacy programs;

18 ‘‘(3) extension of branch hours to provide space

19 and resources for homework;

20 ‘‘(4) development of technological resources;

21 ‘‘(5) hiring specialized outreach staff; and

22 ‘‘(6) development of peer tutoring programs.
140

•S 856 RS

1 ‘‘CHAPTER 3—ADMINISTRATIVE

2 PROVISIONS

3 ‘‘Subchapter A—State Requirements

4 ‘‘SEC. 251. STATE EVALUATION.

5 ‘‘(a) IN GENERAL.—Each State receiving a grant

6 under this subtitle shall annually evaluate, in accordance

7 with subsections (b) and (c), the activities assisted under

8 subchapters A and B of chapter 2.

9 ‘‘(b) SUBCHAPTER A ACTIVITIES.—Each evaluation

10 of activities assisted under subchapter A of chapter 2 shall

11 include a description of how effective such activities are

12 in ensuring that—

13 ‘‘(1) every American will have affordable access

14 to information resources through electronic net15 works;

16 ‘‘(2) every public library will be connected to

17 national and international electronic networks;

18 ‘‘(3) every State library agency will promote

19 planning and provide support for full library partici20 pation in electronic networks;

21 ‘‘(4) every public librarian will possess the

22 knowledge and skills needed to help people obtain in23 formation through electronic sources; and
141

•S 856 RS

1 ‘‘(5) every public library will be equipped with

2 the technology needed to help people obtain informa3 tion in an effective and timely manner.

4 ‘‘(c) SUBCHAPTER B ACTIVITIES.—

5 ‘‘(1) IN GENERAL.—Each evaluation of activi6 ties assisted under subchapter B of chapter 2 shall

7 include—

8 ‘‘(A) with respect to activities to increase

9 literacy and lifelong learning—

10 ‘‘(i) an analysis of the current situa11 tion in the State;

12 ‘‘(ii) how such activities will meet the

13 needs of the current situation in the State

14 and the target groups to be served; and

15 ‘‘(iii) a report of the effect of such ac16 tivities in relation to the objectives of such

17 activities;

18 ‘‘(B) with respect to activities to serve peo19 ple in rural and urban areas—

20 ‘‘(i) procedures used to identify li21 brary users within a community;

22 ‘‘(ii) a description of needs and target

23 groups to be served;

24 ‘‘(iii) an analysis of the levels of suc25 cess to be targeted;
142

•S 856 RS

1 ‘‘(iv) a report of the effect of such ac2 tivities in relation to the objectives of such

3 activities; and

4 ‘‘(v) a description of the background

5 of the current level of library service to

6 people in rural and urban areas, and how

7 such activities will extend, improve and

8 further provide library resources to such

9 people;

10 ‘‘(C) with respect to activities to support

11 the provision of special services—

12 ‘‘(i) an analysis of the current situa13 tion in the State;

14 ‘‘(ii) how such activities will meet the

15 needs of the current situation in the State;

16 and

17 ‘‘(iii) a report of the effect of such ac18 tivities in relation to the objectives of such

19 activities; and

20 ‘‘(D) with respect to activities to serve chil21 dren under section 243—

22 ‘‘(i) an analysis of the current local

23 situations;
143

•S 856 RS

1 ‘‘(ii) a description of such activities,

2 including objectives and costs of such ac3 tivities; and

4 ‘‘(iii) a report of the effect of such ac5 tivities in relation to the objectives of such

6 activities.

7 ‘‘(2) INFORMATION.—Each public library re8 ceiving assistance under section 243 shall submit to

9 the State library administrative agency such infor10 mation as such agency may require to meet the re11 quirements of paragraph (1)(D).

12 ‘‘SEC. 252. STATE ADVISORY COUNCILS.

13 ‘‘(a) COUNCILS REQUIRED.—Each State desiring as14 sistance under this subtitle shall establish a State advisory

15 council.

16 ‘‘(b) COMPOSITION.—Each State advisory council

17 shall be broadly representative of the library entities in

18 the State, including public, school, academic, special, and

19 institutional libraries, and libraries serving individuals

20 with disabilities.

21 ‘‘(c) DUTIES.—Each State advisory council shall—

22 ‘‘(1) consult with the State library administra23 tive agency regarding the development of the State

24 plan;
144

•S 856 RS

1 ‘‘(2) advise the State library administrative

2 agency on the development of, and policy matters

3 arising in the administration of, the State plan, in4 cluding mechanisms for evaluation;

5 ‘‘(3) assist the State library administrative

6 agency in—

7 ‘‘(A) the dissemination of information re8 garding activities assisted under this subtitle;

9 and

10 ‘‘(B) the evaluation of activities assisted

11 under this subtitle; and

12 ‘‘(4) establish bylaws to carry out such council’s

13 duties under this subsection.

14 ‘‘Subchapter B—Federal Requirements

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

16 ‘‘(a) GRANTS AUTHORIZED.—From amounts re17 served under section 221(a)(1) for any fiscal year the Di18 rector shall award grants to organizations primarily serv19 ing and representing Indian tribes to enable such organi20 zations to carry out the authorized activities described in

21 subsection (b).

22 ‘‘(b) AUTHORIZED ACTIVITIES.—Grant funds award23 ed under this section may be used for—

24 ‘‘(1) inservice or preservice training of Indians

25 as library personnel;
145

•S 856 RS

1 ‘‘(2) the purchase of library materials;

2 ‘‘(3) the conduct of special library programs for

3 Indians;

4 ‘‘(4) salaries of library personnel;

5 ‘‘(5) transportation to enable Indians to have

6 access to library services;

7 ‘‘(6) dissemination of information about library

8 services;

9 ‘‘(7) assessment of tribal library needs; and

10 ‘‘(8) contracts to provide public library services

11 to Indians living on or near reservations or to ac12 complish any activities described in paragraphs (1)

13 through (7).

14 ‘‘(c) PROHIBITION.—No funds shall be awarded pur15 suant to this section unless such funds will be adminis16 tered by a librarian.

17 ‘‘(d) DUPLICATION.—In awarding grants under this

18 section, the Director shall take such actions as may be

19 necessary to prevent the grant funds provided under this

20 section from being received by any 2 or more entities to

21 serve the same population.

22 ‘‘(e) MAINTENANCE OF EFFORT.—Each organization

23 that receives a grant under this section and supports a

24 public library system shall continue to expend from Fed25 eral, State, and local sources an amount not less than the
146

•S 856 RS

1 amount expended by such organization from such sources

2 for public library services during the second fiscal year

3 preceding the fiscal year for which the determination is

4 made.

5 ‘‘(f) CONSTRUCTION.—Nothing in this section shall

6 be construed to prohibit the dissemination of restricted

7 collections of tribal cultural materials with funds made

8 available under this section.

9 ‘‘(g) APPLICATION.—

10 ‘‘(1) IN GENERAL.—Any organization which de11 sires to receive a grant under this section shall sub12 mit an application to the Director that—

13 ‘‘(A) describes the activities and services

14 for which assistance is sought; and

15 ‘‘(B) contains such information as the Di16 rector may require by regulation.

17 ‘‘(2) CRITERIA.—The Director shall issue cri18 teria for the approval of applications under this sec19 tion, but such criteria shall not include—

20 ‘‘(A) an allotment formula; or

21 ‘‘(B) a matching of funds requirement.

22 ‘‘SEC. 262. NATIONAL LEADERSHIP PROGRAM.

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

24 under section 221(a)(2) for any fiscal year the Director

25 shall establish and carry out a program of national leader-
147

•S 856 RS

1 ship and evaluation activities to enhance the quality of li2 brary services nationwide. Such activities may include—

3 ‘‘(1) education and training of persons in li4 brary and information science, particularly in areas

5 of new technology and other critical needs, including

6 graduate fellowships, traineeships, institutes, or

7 other programs;

8 ‘‘(2) research and demonstration projects relat9 ed to the improvement of libraries, education in li10 brary and information science, enhancement of li11 brary services through effective and efficient use of

12 new technologies, and dissemination of information

13 derived from such projects; and

14 ‘‘(3) preservation or digitization of library ma15 terials and resources, giving priority to projects em16 phasizing coordination, avoidance of duplication, and

17 access by researchers beyond the institution or li18 brary entity undertaking the project.

19 ‘‘(b) GRANTS OR CONTRACTS.—

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

21 out the activities described in subsection (a) by

22 awarding grants to, or entering into contracts with,

23 library entities, agencies, or institutions of higher

24 education.
148

•S 856 RS

1 ‘‘(2) COMPETITIVE BASIS.—Grants and con2 tracts described in paragraph (1) shall be awarded

3 on a competitive basis.

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

5 effort to ensure that activities assisted under this section

6 are administered by appropriate library experts.

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

8 ‘‘Nothing in this subtitle shall be construed to inter9 fere with State and local initiative and responsibility in

10 the conduct of library services. The administration of li11 braries, the selection of personnel and library books and

12 materials, and insofar as consistent with the purposes of

13 this subtitle, the determination of the best uses of the

14 funds provided under this subtitle, shall be reserved to the

15 States and their local subdivisions.

16 ‘‘Subtitle C—Museum Services

17 ‘‘SEC. 271. PURPOSE.

18 ‘‘It is the purpose of this subtitle—

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

20 educational role, in conjunction with formal systems

21 of elementary, secondary, and postsecondary edu22 cation and with programs of nonformal education for

23 all age groups;

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

25 methods and facilities so that the museums may be
149

•S 856 RS

1 better able to conserve the cultural, historic, and sci2 entific heritage of the United States; and

3 ‘‘(3) to ease the financial burden borne by mu4 seums as a result of their increasing use by the pub5 lic.

6 ‘‘SEC. 272. DEFINITIONS.

7 ‘‘As used in this subtitle, the term ‘museum’ means

8 a public or private nonprofit agency or institution orga9 nized on a permanent basis for essentially educational or

10 esthetic purposes, that utilizes a professional staff, owns

11 or utilizes tangible objects, cares for the tangible objects,

12 and exhibits the tangible objects to the public on a regular

13 basis.

14 ‘‘SEC. 273. MUSEUM SERVICES ACTIVITIES.

15 ‘‘(a) GRANTS.—The Director, after receiving the pol16 icy advice of the Museum Board, may make grants to mu17 seums to pay for the Federal share of the cost of increas18 ing and improving museum services, through such activi19 ties as—

20 ‘‘(1) programs to enable museums to construct

21 or install displays, interpretations, and exhibitions in

22 order to improve museum services to the public;

23 ‘‘(2) assisting museums in developing and

24 maintaining professionally trained or otherwise expe25 rienced staff to meet their needs;
150

•S 856 RS

1 ‘‘(3) assisting museums in meeting their admin2 istrative costs in preserving and maintaining their

3 collections, exhibiting the collections to the public,

4 and providing educational programs to the public

5 through the use of the collections;

6 ‘‘(4) assisting museums in cooperating with

7 each other in developing traveling exhibitions, meet8 ing transportation costs, and identifying and locat9 ing collections available for loan;

10 ‘‘(5) assisting museums in conservation of their

11 collections; and

12 ‘‘(6) developing and carrying out specialized

13 programs for specific segments of the public, such as

14 programs for urban neighborhoods, rural areas, In15 dian reservations, and penal and other State institu16 tions.

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

19 ‘‘(1) PROJECTS TO STRENGTHEN MUSEUM

20 SERVICES.—The Director, after receiving the policy

21 advice of the Museum Board, may enter into con22 tracts and cooperative agreements with appropriate

23 entities to pay for the Federal share of enabling the

24 entities to undertake projects designed to strengthen

25 museum services, except that any contracts or coop-
151

•S 856 RS

1 erative agreements entered into pursuant to this

2 subsection shall be effective only to such extent or

3 in such amounts as are provided in appropriations

4 Acts.

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

6 amount of financial assistance made available under

7 this subsection for a fiscal year shall not exceed 15

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

10 ‘‘(c) FEDERAL SHARE.—

11 ‘‘(1) 50 PERCENT.—Except as provided in para12 graph (2), the Federal share described in sub13 sections (a) and (b) shall be not more than 50 per14 cent.

15 ‘‘(2) 100 PERCENT.—The Director may use not

16 more than 20 percent of the funds made available

17 under this section for a fiscal year to make grants

18 under subsection (a), or enter into contracts or

19 agreements under subsection (b), for which the Fed20 eral share may be 100 percent.

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

22 establish procedures for reviewing and evaluating grants,

23 contracts, and cooperative agreements made or entered

24 into under this section. Procedures for reviewing grant ap25 plications or contracts and cooperative agreements for fi-
152

•S 856 RS

1 nancial assistance under this section shall not be subject

2 to any review outside of the Institute.

3 ‘‘SEC. 274. ASSESSMENTS.

4 ‘‘(a) IN GENERAL.—The Director, subject to the pol5 icy direction of the Museum Board and in consultation

6 with appropriate representatives of museums and other

7 types of community institutions, agencies, and organiza8 tions, shall undertake an assessment of the collaborative

9 possibilities museums can engage in to serve the public

10 more broadly and effectively.

11 ‘‘(b) CONTENTS.—The assessment shall include—

12 ‘‘(1) an investigation of opportunities to estab13 lish collaborative programs between museums within

14 a community, including an investigation of the role

15 that larger institutions can play as mentors to small16 er institutions;

17 ‘‘(2) an investigation of opportunities to estab18 lish collaborative programs between museums and

19 community organizations;

20 ‘‘(3) an investigation of the potential for col21 laboration between museums on technology issues to

22 reach a broader audience; and

23 ‘‘(4) an investigation of opportunities for muse24 ums to work with each other and with other commu25 nity resources to serve the public better and to co-
153

•S 856 RS

1 ordinate professional and financial development ac2 tivities.

3 ‘‘(c) LIMITATION.—This section shall not apply in

4 any fiscal year for which the amount appropriated under

5 section 277(a) is less than $28,700,000.

6 ‘‘SEC. 275. AWARD.

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

8 may annually award a National Award for Museum Serv9 ice to outstanding museums that have made significant

10 contributions in service to their communities.

11 ‘‘SEC. 276. NATIONAL MUSEUM SERVICES BOARD.

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

13 Institute a National Museum Services Board.

14 ‘‘(b) COMPOSITION AND QUALIFICATIONS.—

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

16 consist of the Director and 14 members appointed

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

18 of the Senate, and the ex officio, nonvoting member

19 described in paragraph (4).

20 ‘‘(2) QUALIFICATIONS.—The appointive mem21 bers of the Museum Board shall be selected from

22 among citizens of the United States—

23 ‘‘(A) who are members of the general pub24 lic;
154

•S 856 RS

1 ‘‘(B) who are or have been affiliated

2 with—

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

4 broadly representative of the curatorial,

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

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

8 broadly representative of various types of

9 museums, including museums relating to

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

11 and botanical gardens; and

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

13 knowledge, expertise, or experience in museums

14 or commitment to museums.

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

18 regions of the United States. The Museum Board

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

20 from a single State. In making such appointments,

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

23 disabilities who are involved with museums.

24 ‘‘(4) EX OFFICIO MEMBER.—The Deputy Direc25 tor of the Office of Museum Services shall serve as
155

•S 856 RS

1 an ex officio nonvoting member of the Museum

2 Board.

3 ‘‘(c) TERMS.—

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

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

6 except that—

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

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

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

10 3 years, 3 shall serve for terms of 2 years, and

11 2 shall serve for terms of 1 year, as designated

12 by the President at the time of nomination for

13 appointment; and

14 ‘‘(B) any member appointed to fill a va15 cancy shall serve for the remainder of the term

16 for which the predecessor of the member was

17 appointed.

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

19 Museum Board who has been a member for more

20 than 7 consecutive years shall be eligible for re21 appointment.

22 ‘‘(3) SERVICE UNTIL SUCCESSOR TAKES OF23 FICE.—Notwithstanding any other provision of this

24 subsection, a member shall serve after the expiration
156

•S 856 RS

1 of the term of the member until the successor to the

2 member takes office.

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

4 shall have the responsibility to advise the Director on gen5 eral policies with respect to the duties and powers vested

6 in the Institute relating to museum services, including

7 general policies with respect to—

8 ‘‘(1) financial assistance awarded under this

9 title for museum services; and

10 ‘‘(2) projects described in section 204(c)(2).

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

12 1 of the appointive members of the Museum Board as

13 Chairperson of the Museum Board.

14 ‘‘(f) MEETINGS.—

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

16 meet—

17 ‘‘(A) not less than 3 times each year, in18 cluding—

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

20 separately; and

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

22 a joint meeting with the Commission, con23 vened for purposes of making general poli24 cies with respect to financial assistance for

25 projects described in section 204(c)(2); and
157

•S 856 RS

1 ‘‘(B) at the call of the Director.

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

3 Board with respect to the exercise of the duties and

4 powers of the Museum Board shall be made by a

5 majority vote of the members of the Museum Board

6 who are present. All decisions by the Commission

7 and the Museum Board with respect to the policies

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

a 2 9 ⁄3 majority vote of the total number of the mem10 bers of the Commission and the Museum Board who

11 are present.

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

13 Museum Board shall constitute a quorum for the conduct

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

15 a lesser number of members may hold hearings. A major16 ity of the members of the Commission and a majority of

17 the members of the Museum Board shall constitute a

18 quorum for the conduct of business at official joint meet19 ings of the Commission and the Museum Board.

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

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

22 Museum Board who is not an officer or employee of

23 the Federal Government shall be compensated at a

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

25 the daily equivalent of the maximum rate authorized
158

•S 856 RS

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

2 Schedule under section 5108 of title 5, United

3 States Code, for each day (including travel time)

4 during which such member is engaged in the per5 formance of the duties of the Museum Board. All

6 members of the Museum Board who are officers or

7 employees of the Federal Government shall serve

8 without compensation in addition to compensation

9 received for their services as officers or employees

10 of the Federal Government.

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

12 Museum Board shall be allowed travel expenses, in13 cluding per diem in lieu of subsistence, in the same

14 amounts and to the same extent, as authorized

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

16 for persons employed intermittently in Federal Gov17 ernment service.

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

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

20 policies and activities of the Institute are coordinated with

21 other activities of the Federal Government.

22 ‘‘SEC. 277. AUTHORIZATION OF APPROPRIATIONS.

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

24 subtitle, there are authorized to be appropriated to the Di-
159

•S 856 RS

1 rector $50,000,000 for each of fiscal years 1996 through

2 2000.

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

4 of the funds appropriated under this section for a fiscal

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

6 carrying out this subtitle.

7 ‘‘(c) JOINT PROJECTS.—Not less than 5 percent and

8 not more than 7 percent of the funds appropriated under

9 this section for a fiscal year may be made available for

10 projects described in section 204(c)(2) for the fiscal year.

11 ‘‘(d) SUMS REMAINING AVAILABLE.—Sums appro12 priated pursuant to subsection (a) for any fiscal year shall

13 remain available for obligation until expended.’’.

14 SEC. 202. NATIONAL COMMISSION ON LIBRARIES AND IN15 FORMATION SCIENCE.

16 (a) FUNCTIONS.—Section 5 of the National Commis17 sion on Libraries and Information Science Act (20 U.S.C.

18 1504) is amended—

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

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

21 (2) by inserting after subsection (a) the follow22 ing:

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

24 advise the Director of the Institute of Museum and Li25 brary Services on general policies with respect to the du-
160

•S 856 RS

1 ties and powers vested in the Institute of Museum and

2 Library Services relating to library services, including—

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

4 ‘‘(A) financial assistance awarded under

5 the Museum and Library Services Act for li6 brary services; and

7 ‘‘(B) projects described in section

8 204(c)(2) of such Act; and

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

10 activities of the Institute of Museum and Library

11 Services are coordinated with other activities of the

12 Federal Government.

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

14 time each year in a joint meeting with the Museum Board,

15 convened for purposes of providing advice on general pol16 icy with respect to financial assistance for projects de17 scribed in section 204(c)(2) of such Act.

18 ‘‘(2) All decisions by the Commission and the Mu19 seum Board with respect to the advice on general policy

described in paragraph (1) shall be made by a 2 20 ⁄3 majority

21 vote of the total number of the members of the Commis22 sion and the Museum Board who are present.

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

24 and a majority of the members of the Museum Board shall

25 constitute a quorum for the conduct of business at official
161

•S 856 RS

1 joint meetings of the Commission and the Museum

2 Board.’’.

3 (b) MEMBERSHIP.—Section 6 of the National Com4 mission on Libraries and Information Science Act (20

5 U.S.C. 1505) is amended—

6 (1) in subsection (a)—

7 (A) in the first sentence, by striking ‘‘Li8 brarian of Congress’’ and inserting ‘‘Director of

9 the Institute of Museum and Library Services’’;

10 (B) in the second sentence—

11 (i) by striking ‘‘Five’’ and inserting

12 ‘‘Six of the appointive’’;

13 (ii) by striking ‘‘or interest in’’; and

14 (iii) by inserting before the period the

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

16 shall be knowledgeable with respect to the

17 library and information service and science

18 needs of the elderly’’;

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

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

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

23 ‘‘term.’’; and

24 (2) in subsection (b), by striking ‘‘the rate spec25 ified’’ and all that follows through ‘‘and while’’ and
162

•S 856 RS

1 inserting ‘‘the daily equivalent of the maximum rate

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

3 General Schedule under section 5108 of title 5,

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

6 business of the Commission. While’’.

7 SEC. 203. TRANSFER OF FUNCTIONS FROM INSTITUTE OF

8 MUSEUM SERVICES.

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

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

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

13 5, United States Code;

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

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

19 entity, or component thereof.

20 (b) TRANSFER OF FUNCTIONS.—There are trans21 ferred to the Institute of Museum and Library Services

22 established under section 203 of the Museum and Library

23 Services Act all functions that the Director of the Institute

24 of Museum Services exercised before the date of enact-
163

•S 856 RS

1 ment of this section (including all related functions of any

2 officer or employee of the Institute of Museum Services).

3 (c) DETERMINATIONS OF CERTAIN FUNCTIONS BY

4 THE OFFICE OF MANAGEMENT AND BUDGET.—If nec5 essary, the Office of Management and Budget shall make

6 any determination of the functions that are transferred

7 under subsection (b).

8 (d) DELEGATION AND ASSIGNMENT.—Except where

9 otherwise expressly prohibited by law or otherwise pro10 vided by this section, the Director of the Institute of Mu11 seum and Library Services may delegate any of the func12 tions transferred to the Director of the Institute of Mu13 seum and Library Services by this section and any func14 tion transferred or granted to such Director of the Insti15 tute of Museum and Library Services after the effective

16 date of this section to such officers and employees of the

17 Institute of Museum and Library Services as the Director

18 of the Institute of Museum and Library Services may des19 ignate, and may authorize successive redelegations of such

20 functions as may be necessary or appropriate. No delega21 tion of functions by the Director of the Institute of Mu22 seum and Library Services under this section or under any

23 other provision of this section shall relieve such Director

24 of the Institute of Museum and Library Services of re25 sponsibility for the administration of such functions.
164

•S 856 RS

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

2 of 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 to establish, consolidate, alter, or discontinue such or6 ganizational 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 In14 stitute of Museum and Library Services.

15 (g) TRANSFER AND ALLOCATIONS OF APPROPRIA16 TIONS AND PERSONNEL.—Except as otherwise provided

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

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

19 unexpended balances of appropriations, authorizations, al20 locations, and other funds employed, used, held, arising

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

22 with the functions transferred by this section, subject to

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

24 transferred to the Institute of Museum and Library Serv25 ices. Unexpended funds transferred pursuant to this sub-
165

•S 856 RS

1 section shall be used only for the purposes for which the

2 funds were originally authorized and appropriated.

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

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

5 as the Director shall provide, may make such determina6 tions as may be necessary with regard to the functions

7 transferred by this section, and make such additional inci8 dental dispositions of personnel, assets, liabilities, grants,

9 contracts, property, records, and unexpended balances of

10 appropriations, authorizations, allocations, and other

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

12 available in connection with such functions, as may be nec13 essary to carry out this section. The Director of the Office

14 of Management and Budget shall provide for the termi15 nation of the affairs of all entities terminated by this sec16 tion and for such further measures and dispositions as

17 may be necessary to effectuate the purposes of this sec18 tion.

19 (i) EFFECT ON PERSONNEL.—

20 (1) IN GENERAL.—Except as otherwise pro21 vided by this section, the transfer pursuant to this

22 section of full-time personnel (except special Govern23 ment employees) and part-time personnel holding

24 permanent positions shall not cause any such em25 ployee to be separated or reduced in grade or com-
166

•S 856 RS

1 pensation for 1 year after the date of transfer of

2 such employee under this section.

3 (2) EXECUTIVE SCHEDULE POSITIONS.—Except

4 as otherwise provided in this section, any person

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

6 section, held a position compensated in accordance

7 with the Executive Schedule prescribed in chapter

8 53 of title 5, United States Code, and who, without

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

10 Museum and Library Services to a position having

11 duties comparable to the duties performed imme12 diately preceding such appointment shall continue to

13 be compensated in such new position at not less

14 than the rate provided for such previous position, for

15 the duration of the service of such person in such

16 new position.

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

22 administrative actions—

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

24 or allowed to become effective by the President,

25 any Federal agency or official of a Federal
167

•S 856 RS

1 agency, or by a court of competent jurisdiction,

2 in the performance of functions that are trans3 ferred under this section; and

4 (B) that were in effect before the effective

5 date of this section, or were final before the ef6 fective date of this section and are to become

7 effective on or after the effective date of this

8 section;

9 shall continue in effect according to their terms until

10 modified, terminated, superseded, set aside, or re11 voked in accordance with law by the President, the

12 Director of the Institute of Museum and Library

13 Services or other authorized official, a court of com14 petent jurisdiction, or by operation of law.

15 (2) PROCEEDINGS NOT AFFECTED.—This sec16 tion shall not affect any proceedings, including no17 tices of proposed rulemaking, or any application for

18 any license, permit, certificate, or financial assist19 ance pending before the Institute of Museum Serv20 ices on the effective date of this section, with respect

21 to functions transferred by this section. Such pro22 ceedings and applications shall be continued. Orders

23 shall be issued in such proceedings, appeals shall be

24 taken from the orders, and payments shall be made

25 pursuant to the orders, as if this section had not
168

•S 856 RS

1 been enacted, and orders issued in any such proceed2 ings shall continue in effect until modified, termi3 nated, superseded, or revoked by a duly authorized

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

5 operation of law. Nothing in this paragraph shall be

6 construed to prohibit the discontinuance or modifica7 tion of any such proceeding under the same terms

8 and conditions and to the same extent that such pro9 ceeding could have been discontinued or modified if

10 this section had not been enacted.

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

12 not affect suits commenced before the effective date

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

14 shall be had, appeals taken, and judgments rendered

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

16 this section had not been enacted.

17 (4) NONABATEMENT OF ACTIONS.—No suit, ac18 tion, or other proceeding commenced by or against

19 the Institute of Museum Services, or by or against

20 any individual in the official capacity of such individ21 ual as an officer of the Institute of Museum Serv22 ices, shall abate by reason of the enactment of this

23 section.

24 (5) ADMINISTRATIVE ACTIONS RELATING TO

25 PROMULGATION OF REGULATIONS.—Any administra-
169

•S 856 RS

1 tive action relating to the preparation or promulga2 tion of a regulation by the Institute of Museum

3 Services relating to a function transferred under this

4 section may be continued by the Institute of Mu5 seum and Library Services with the same effect as

6 if this section had not been enacted.

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

8 Museum and Library Services may utilize—

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

10 other personnel of the Institute of Museum Services

11 with respect to functions transferred to the Institute

12 of Museum and Library Services by this section; and

13 (2) funds appropriated to such functions for

14 such period of time as may reasonably be needed to

15 facilitate the orderly implementation of this section.

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

17 law, Executive order, rule, regulation, or delegation of au18 thority, or any document of or relating to—

19 (1) the Director of the Institute of Museum

20 Services with regard to functions transferred under

21 subsection (b), shall be deemed to refer to the Direc22 tor of the Institute of Museum and Library Services;

23 and

24 (2) the Institute of Museum Services with re25 gard to functions transferred under subsection (b),
170

•S 856 RS

1 shall be deemed to refer to the Institute of Museum

2 and Library Services.

3 (m) ADDITIONAL CONFORMING AMENDMENTS.—

4 (1) RECOMMENDED LEGISLATION.—After con5 sultation with the appropriate committees of Con6 gress and the Director of the Office of Management

7 and Budget, the Director of the Institute of Museum

8 and Library Services shall prepare and submit to

9 Congress recommended legislation containing tech10 nical and conforming amendments to reflect the

11 changes made by this section.

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

13 6 months after the effective date of this section, the

14 Director of the Institute of Museum and Library

15 Services shall submit the recommended legislation

16 referred to under paragraph (1).

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

18 ENACTMENT.

19 Notwithstanding section 204 of the Museum and Li20 brary Services Act, the individual who was appointed to

21 the position of Director of the Institute of Museum Serv22 ices under section 205 of the Museum Services Act (as

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

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

25 on the day before the date of enactment of this Act shall
171

•S 856 RS

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

2 Library Services under section 204 of the Museum and

3 Library Services Act (as added by section 201 of this Act),

4 and shall serve at the pleasure of the President.

5 SEC. 205. CONSIDERATION.

6 Consistent with title 5, United States Code, in ap7 pointing employees of the Office of Library Services, the

8 Director of the Institute of Museum and Library Service

9 shall give strong consideration to individuals with experi10 ence in administering State-based library programs.

11 SEC. 206. REPEALS AND TECHNICAL AND CONFORMING

12 AMENDMENTS.

13 (a) REPEALS.—

14 (1) LIBRARY SERVICES AND CONSTRUCTION

15 ACT.—The Library Services and Construction Act

16 (20 U.S.C. 351 et seq.) is repealed.

17 (2) HIGHER EDUCATION ACT OF 1965.—Title II

18 of the Higher Education Act of 1965 (20 U.S.C.

19 1021 et seq.) is repealed.

20 (b) REFERENCES TO LIBRARY SERVICES AND CON21 STRUCTION ACT.—

22 (1) OMNIBUS EDUCATION RECONCILIATION ACT

23 OF 1981.—Section 528 of the Omnibus Education

24 Reconciliation Act of 1981 (20 U.S.C. 3489) is

25 amended—
172

•S 856 RS

1 (A) by striking paragraph (12); and

2 (B) by redesignating paragraphs (13)

3 through (15) as paragraphs (12) through (14).

4 (2) ELEMENTARY AND SECONDARY EDUCATION

5 ACT OF 1965.—Section 3113(10) of the Elementary

6 and Secondary Education Act of 1965 (20 U.S.C.

7 6813(10)) is amended by striking ‘‘section 3 of the

8 Library Services and Construction Act’’ and insert9 ing ‘‘section 213(7) of the Library Services and

10 Technology Act’’.

11 (3) COMMUNITY IMPROVEMENT VOLUNTEER

12 ACT OF 1994.—Section 7305 of the Community Im13 provement Volunteer Act of 1994 (40 U.S.C. 276d–

14 3) is amended—

15 (A) by striking paragraph (1); and

16 (B) by redesignating paragraphs (2)

17 through (6) as paragraphs (1) through (5), re18 spectively.

19 (4) APPALACHIAN REGIONAL DEVELOPMENT

20 ACT OF 1965.—Section 214(c) of the Appalachian

21 Regional Development Act of 1965 (40 U.S.C. App.

22 214(c)) is amended by striking ‘‘Library Services

23 and Construction Act;’’.

24 (5) DEMONSTRATION CITIES AND METROPOLI25 TAN DEVELOPMENT ACT OF 1966.—Section 208(2) of
173

•S 856 RS

1 the Demonstration Cities and Metropolitan Develop2 ment Act of 1966 (42 U.S.C. 3338(2)) is amended

3 by striking ‘‘title II of the Library Services and Con4 struction Act;’’.

5 (6) PUBLIC LAW 87–688.—Subsection (c) of the

6 first section of the Act entitled ‘‘An Act to extend

7 the application of certain laws to American Samoa’’,

8 approved September 25, 1962 (48 U.S.C. 1666(c))

9 is amended by striking ‘‘the Library Services Act

10 (70 Stat. 293; 20 U.S.C. 351 et seq.),’’.

11 (c) REFERENCES TO INSTITUTE OF MUSEUM SERV12 ICES.—

13 (1) TITLE 5, UNITED STATES CODE.—Section

14 5315 of title 5, United States Code, is amended by

15 striking the following:

16 ‘‘Director of the Institute of Museum Services.’’

17 and inserting the following:

18 ‘‘Director of the Institute of Museum and Li19 brary Services.’’.

20 (2) DEPARTMENT OF EDUCATION ORGANIZA21 TION ACT.—Section 301 of the Department of Edu22 cation Organization Act (20 U.S.C. 3441) is amend23 ed—

24 (A) in subsection (a)—

25 (i) by striking paragraph (5); and
174

•S 856 RS

1 (ii) by redesignating paragraphs (6)

2 and (7) as paragraphs (5) and (6), respec3 tively; and

4 (B) in subsection (b)—

5 (i) by striking paragraph (4); and

6 (ii) by redesignating paragraphs (5)

7 through (7) as paragraphs (4) through (6),

8 respectively.

9 (3) ELEMENTARY AND SECONDARY EDUCATION

10 ACT OF 1965.—

11 (A) Sections 2101(b), 2205(c)(1)(D),

12 2208(d)(1)(H)(v), and 2209(b)(1)(C)(vi), and

13 subsections (d)(6) and (e)(2) of section 10401,

14 of the Elementary and Secondary Education

15 Act of 1965 (20 U.S.C. 6621(b),

16 6645(c)(1)(D), 6648(d)(1)(H)(v),

17 6649(b)(1)(C)(vi), and 8091 (d)(6) and (e)(2))

18 are amended by striking ‘‘the Institute of Mu19 seum Services’’ and inserting ‘‘the Institute of

20 Museum and Library Services’’.

21 (B) Section 10412(b) of such Act (20

22 U.S.C. 8102(b)) is amended—

23 (i) in paragraph (2), by striking ‘‘the

24 Chairman of the National Endowment for

25 the Humanities, the Chairman of the Na-
175

•S 856 RS

1 tional Endowment for the Arts, and the

2 Director of the Institute of Museum Serv3 ices,’’ and inserting ‘‘the Chairperson of

4 the National Endowment for the Human5 ities, the Chairperson of the National En6 dowment for the Arts, and the Institute of

7 Museum and Library Services,’’; and

8 (ii) in paragraph (7), by striking ‘‘the

9 Chairman of the National Endowment for

10 the Humanities, the Chairman of the Na11 tional Endowment for the Arts and the Di12 rector of the Institute of Museum Serv13 ices,’’ and inserting ‘‘the Chairperson of

14 the National Endowment for the Human15 ities, the Chairperson of the National En16 dowment for the Arts, and the Institute of

17 Museum and Library Services,’’.

18 (C) Section 10414(a)(2)(B) of such Act

19 (20 U.S.C. 8104(a)(2)(B)) is amended by strik20 ing clause (iii) and inserting the following new

21 clause:

22 ‘‘(iii) the Institute of Museum and Li23 brary Services.’’.

24 (d) REFERENCES TO HIGHER EDUCATION ACT OF

25 1965.—
176

•S 856 RS

1 (1) HIGHER EDUCATION ACT OF 1965.—Para2 graph (2) of section 356(b) of the Higher Education

3 Act of 1965 (20 U.S.C. 1069b(b)) is amended by

4 striking ‘‘II,’’.

5 (2) HIGHER EDUCATION AMENDMENTS OF

6 1986.—Part D of title XIII of the Higher Education

7 Amendments of 1986 (20 U.S.C. 1029 note) is re8 pealed.

9 (e) REFERENCES TO OFFICE OF LIBRARIES AND

10 LEARNING RESOURCES.—

11 (1) EDUCATION AMENDMENTS OF 1974.—Sec12 tion 519 of the Education Amendments of 1974 (20

13 U.S.C. 1221i) is repealed.

14 (2) DEPARTMENT OF EDUCATION ORGANIZA15 TION ACT.—Section 413(b)(1) of the Department of

16 Education Organization Act (20 U.S.C. 3473(b)(1))

17 is amended—

18 (A) by striking subparagraph (H); and

19 (B) by redesignating subparagraphs (I)

20 through (M) as subparagraphs (H) through

21 (L), respectively.
177

•S 856 RS

1 TITLE III—ARTS AND ARTIFACTS

2 INDEMNITY ACT

3 SEC. 301. ARTS AND ARTIFACTS.

4 The Arts and Artifacts Indemnity Act (20 U.S.C. 971

5 et seq.) is amended to read as follows:

6 ‘‘SECTION 1. SHORT TITLE.

7 ‘‘This Act may be cited as the ‘Arts and Artifacts

8 Indemnity Act’.

9 ‘‘SEC. 2. INDEMNITY FOR EXHIBITIONS OF ARTS AND ARTI10 FACTS.

11 ‘‘The Chairperson of the National Endowment for the

12 Arts (referred to in this title as the ‘Chairperson’) may

13 enter into agreements to indemnify against loss or damage

14 such items as may be eligible for such indemnity agree15 ments under section 3—

16 ‘‘(1) in accordance with the provisions of this

17 Act; and

18 ‘‘(2) on such terms and conditions as the Chair19 person shall prescribe, by regulation, in order to

20 achieve the objectives of this Act and, consistent

21 with such objectives, to protect the financial interest

22 of the United States.
178

•S 856 RS

1 ‘‘SEC. 3. ELIGIBLE ITEMS.

2 ‘‘(a) TYPES OF ITEMS.—The Chairperson may enter

3 into an indemnity agreement under section 2 with respect

4 to items—

5 ‘‘(1) that are—

6 ‘‘(A) works of art, including tapestries,

7 paintings, sculpture, folk art, and graphics and

8 craft arts;

9 ‘‘(B) manuscripts, rare documents, books,

10 or other printed or published materials;

11 ‘‘(C) other artifacts or objects; or

12 ‘‘(D) photographs, motion pictures, or

13 audio and video tape;

14 ‘‘(2) that are of educational, cultural, historical,

15 or scientific value; and

16 ‘‘(3) the exhibition of which is certified by the

17 Secretary of State, the designee of the Secretary, or

18 the Director of the Institute for Museum and Li19 brary Services, as being in the national interest.

20 ‘‘(b) ITEMS ON EXHIBITION.—

21 ‘‘(1) SCOPE.—An indemnity agreement made

22 under this Act shall cover eligible items while on ex23 hibition, generally when the items are part of an ex24 change of exhibitions. An item described in sub25 section (a) that is part of an exhibition that origi26 nates either in the United States or outside the
179

•S 856 RS

1 United States and that is touring the United States

2 shall be considered to be an eligible item.

3 ‘‘(2) DEFINITION.—For purposes of this sub4 section, the term ‘on exhibition’ includes the period

5 of time beginning on the date the eligible items leave

6 the premises of the lender or place designated by the

7 lender and ending on the date such items are re8 turned to the premises of the lender or place des9 ignated by the lender.

10 ‘‘SEC. 4. APPLICATIONS.

11 ‘‘(a) IN GENERAL.—Any person, nonprofit agency,

12 institution, or government desiring to enter into an indem13 nity agreement for eligible items under this Act shall sub14 mit an application to the Chairperson at such time, in

15 such manner and in accordance with such procedures, as

16 the Chairperson shall, by regulation, prescribe.

17 ‘‘(b) CONTENTS.—An application submitted under

18 subsection (a) shall—

19 ‘‘(1) describe each item to be covered by the

20 agreement (including an estimated value of such

21 item);

22 ‘‘(2) show evidence that the item is an item de23 scribed in section 3(a); and

24 ‘‘(3) set forth policies, procedures, techniques,

25 and methods with respect to preparation for, and
180

•S 856 RS

1 conduct of, exhibition of the item, and any transpor2 tation related to such item.

3 ‘‘(c) APPROVAL.—On receipt of an application under

4 this section, the Chairperson shall review the application

5 as described in section 5 and, if the Chairperson agrees

6 with the estimated value described in the application and

7 if such application conforms with the requirements of this

8 Act, approve the application and enter into an indemnity

9 agreement with the applicant under section 2. On such

10 approval, the agreement shall constitute a contract be11 tween the Chairperson and the applicant pledging the full

12 faith and credit of the United States to pay any amount

13 for which the Chairperson becomes liable under such

14 agreement. The Chairperson, for such purpose, is author15 ized to pledge the full faith and credit of the United

16 States.

17 ‘‘SEC. 5. INDEMNITY AGREEMENT.

18 ‘‘(a) REVIEW.—On receipt of an application meeting

19 the requirements of subsections (a) and (b) of section 4,

20 the Chairperson shall review the estimated value of the

21 items for which coverage by an indemnity agreement is

22 sought.

23 ‘‘(b) AGGREGATE AMOUNT OF LOSS OR DAMAGE.—

24 The aggregate amount of loss or damage covered by in-
181

•S 856 RS

1 demnity agreements made under this Act shall not exceed

2 $3,000,000,000, at any one time.

3 ‘‘(c) INDIVIDUAL AMOUNT OF LOSS OR DAMAGE.—

4 No indemnity agreement for a single exhibition shall cover

5 loss or damage in excess of $300,000,000.

6 ‘‘(d) EXTENT OF COVERAGE.—If the estimated value

7 of the items covered by an indemnity agreement for a sin8 gle exhibition is—

9 ‘‘(1) $2,000,000 or less, coverage under this

10 Act shall extend only to loss or damage in excess of

11 the first $15,000 of loss or damage to the items cov12 ered;

13 ‘‘(2) more than $2,000,000 but less than

14 $10,000,000, coverage under this Act shall extend

15 only to loss or damage in excess of the first $25,000

16 of loss or damage to the items covered;

17 ‘‘(3) not less than $10,000,000 but less than

18 $125,000,000, coverage under this Act shall extend

19 to loss or damage in excess of the first $50,000 of

20 loss or damage to the items covered;

21 ‘‘(4) not less than $125,000,000 but less than

22 $200,000,000, coverage under this Act shall extend

23 to loss or damage in excess of the first $100,000 of

24 loss or damage to the items covered; or
182

•S 856 RS

1 ‘‘(5) not less than $200,000,000, coverage

2 under this Act shall extend only to loss or damage

3 in excess of the first $200,000 of loss or damage to

4 the items covered.

5 ‘‘SEC. 6. REGULATIONS AND CERTIFICATION.

6 ‘‘(a) REGULATIONS.—The Chairperson shall pre7 scribe regulations providing for prompt adjustment of

8 valid claims for loss or damage to items that are covered

9 by an agreement entered into pursuant to section 2, in10 cluding provision for arbitration of issues relating to the

11 dollar value of damages involving less than total loss or

12 destruction of such covered items.

13 ‘‘(b) CERTIFICATION.—In the case of a claim of loss

14 or damage with respect to an item that is covered by an

15 agreement entered into pursuant to section 2, the Chair16 person shall certify the validity of the claim and the

17 amount of the loss to the Speaker of the House of Rep18 resentatives and the President pro tempore of the Senate.

19 ‘‘SEC. 7. COORDINATION ACTIVITIES.

20 ‘‘The Chairperson shall—

21 ‘‘(1) advise and consult with the Chairperson of

22 the National Endowment for the Humanities on

23 major problems arising in carrying out the purpose

24 of the Foundation;
183

•S 856 RS

1 ‘‘(2) advise and consult with the National Mu2 seum Services Board and with the Director of the

3 Institute of Museum and Library Services on major

4 problems arising in carrying out the purpose of the

5 Museum Services Act;

6 ‘‘(3) coordinate, by advice and consultation, so

7 far as is practicable, the policies and operations of

8 the National Endowment for the Arts, the National

9 Endowment for the Humanities, and the Institute of

10 Museum and Library Services, including joint sup11 port of activities, as appropriate;

12 ‘‘(4) promote coordination between the pro13 grams and activities of the Foundation and related

14 programs and activities of other Federal agencies;

15 ‘‘(5) plan and coordinate appropriate participa16 tion (including productions and projects) in major

17 and historic national events; and

18 ‘‘(6) encourage an ongoing dialogue in support

19 of the arts and the humanities among Federal agen20 cies.

21 ‘‘SEC. 8. REPORT.

22 ‘‘The Chairperson shall prepare, and submit at the

23 end of each fiscal year to the appropriate committees of

24 Congress, a report containing information on—
184

•S 856 RS

1 ‘‘(1) all claims paid pursuant to this Act during

2 such year;

3 ‘‘(2) pending claims against the Chairperson

4 under this Act as of the end of such year; and

5 ‘‘(3) the aggregate face value of contracts en6 tered into by the Chairperson that are outstanding

7 at the end of such year.

8 ‘‘SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘There are authorized to be appropriated such sums

10 as may be necessary—

11 ‘‘(1) to enable the Chairperson to carry out the

12 functions of the Chairperson under this Act; and

13 ‘‘(2) to pay claims certified pursuant to section

14 6(b).’’.

15 SECTION 1. SHORT TITLE.

16 This Act may be cited as the ‘‘Arts, Humanities, and

17 Museums Amendments of 1995’’.

18 TITLE I—NATIONAL FOUNDA19 TION ON THE ARTS AND THE

20 HUMANITIES ACT OF 1965

21 SEC. 101. NATIONAL FOUNDATION ON THE ARTS AND THE

22 HUMANITIES.

23 The National Foundation on the Arts and the Human24 ities Act of 1965 (20 U.S.C. 951 et seq.) is amended to read

25 as follows:
185

•S 856 RS

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

2 ‘‘(a) SHORT TITLE.—This Act may be cited as the ‘Na3 tional Foundation on the Arts and the Humanities Act of

4 1965’.

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

6 as follows:

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

‘‘Sec. 2. Purposes.

‘‘Sec. 3. Definitions.

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

HUMANITIES

‘‘Sec. 101. Establishment of the National Foundation on the Arts and the

Humanities.

‘‘Sec. 102. General limitations on grants.

‘‘Sec. 103. Joint administration.

‘‘Sec. 104. Study on a true endowment.

‘‘Sec. 105. Authorization of appropriations.

‘‘TITLE II—NATIONAL ENDOWMENT FOR THE ARTS

‘‘Sec. 201. Definitions.

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

‘‘Sec. 203. Application procedures.

‘‘Sec. 204. Advisory panels.

‘‘Sec. 205. National Council on the Arts.

‘‘Sec. 206. Limitations on grants.

‘‘Sec. 207. Administrative provisions.

‘‘Sec. 208. Reports.

‘‘Sec. 209. Sanctions and payments.

‘‘Sec. 210. Awards.

‘‘TITLE III—NATIONAL ENDOWMENT FOR THE HUMANITIES

‘‘Sec. 301. Definitions.

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

‘‘Sec. 303. Application procedures.

‘‘Sec. 304. Review panels.

‘‘Sec. 305. National Council on the Humanities.

‘‘Sec. 306. Limitations on grants.

‘‘Sec. 307. Administrative provisions.

‘‘Sec. 308. Reports.

‘‘Sec. 309. Sanctions and payments.

‘‘Sec. 310. Awards.

7 ‘‘SEC. 2. PURPOSES.

8 ‘‘The purposes of this Act are—
186

•S 856 RS

1 ‘‘(1)(A) to ensure that the arts and the human2 ities belong to all the people of the United States; and

3 ‘‘(B) to support the arts and the humanities

4 which are essential to social, cultural, and economic

5 progress;

6 ‘‘(2) to encourage and support national progress

7 and scholarship in the arts and the humanities, be8 cause such encouragement and support, while pri9 marily matters for private and local initiative, are

10 also appropriate matters of concern for the Federal

11 Government;

12 ‘‘(3) to ensure that the United States, as an ad13 vanced civilization, does not limit its efforts to science

14 and technology alone but gives full value and support

15 to the other great branches of scholarly and cultural

16 activity in order to achieve a better understanding of

17 the past, a better analysis of the present, and a better

18 view of the future;

19 ‘‘(4) to further the advancement of the arts and

20 the humanities and the access of all citizens of the

21 United States to the arts and the humanities, in part22 nership with local, State, regional, and private agen23 cies, organizations, and individuals;

24 ‘‘(5) in furthering the advancement and access

25 described in paragraph (4), to be sensitive to the na-
187

•S 856 RS

1 ture of public support and the need to use public

2 funding in a manner that recognizes the responsibil3 ity of the Federal Government to the public good;

4 ‘‘(6) to ensure that public funds provided by the

5 Federal Government ultimately serve the public pur6 poses the Congress defines and are subject to the con7 ditions that traditionally govern the use of public

8 money;

9 ‘‘(7) to ensure that—

10 ‘‘(A) Federal support of the arts and the hu11 manities reflects the high place accorded by the

12 people of the United States to the Nation’s rich

13 cultural heritage; and

14 ‘‘(B) public funding of the arts and the hu15 manities contributes to public support for and

16 confidence in the use of taxpayer funds;

17 ‘‘(8)(A) to support the practice of art and the

18 study of the humanities, which require constant dedi19 cation and devotion; and

20 ‘‘(B) while recognizing that no government can

21 create a great artist or scholar, to help create and sus22 tain not only a climate encouraging freedom of

23 thought, imagination, and inquiry, but also the mate24 rial conditions facilitating the release of creative tal25 ent;
188

•S 856 RS

1 ‘‘(9)(A) to ensure that United States students re2 ceive in school, background and preparation in the

3 arts and the humanities to enable the students to rec4 ognize and appreciate the aesthetic dimensions of

5 their lives, the cultural heritage of the United States,

6 and the full potential of artistic and scholarly expres7 sion; and

8 ‘‘(B) to increase access to the arts and the hu9 manities for all persons in the United States by—

10 ‘‘(i) encouraging and developing quality

11 education in the arts and the humanities at all

12 levels, in conjunction with programs of lifelong

13 learning in the arts and the humanities for all

14 age groups and with formal systems of elemen15 tary, secondary, and postsecondary education;

16 and

17 ‘‘(ii) encouraging and facilitating the work

18 of scholars, artists, arts institutions, and Fed19 eral, State, regional, and local agencies in the

20 area of education in the arts and the humanities.

21 ‘‘SEC. 3. DEFINITIONS.

22 ‘‘As used in this Act:

23 ‘‘(1) ARTS.—The term ‘arts’ includes—

24 ‘‘(A) dance, design, literature, media,

25 music, theater, and visual arts;
189

•S 856 RS

1 ‘‘(B) folk and traditional arts practiced by

2 the diverse peoples of the United States; and

3 ‘‘(C) the presentation, performance, execu4 tion, exhibition, preservation, and study of the

5 arts described in subparagraph (A) or (B), in6 cluding study of the arts through apprentice7 ships, internships, and other career oriented

8 work-study experiences for artists and art teach9 ers, and residencies for artists at all educational

10 levels.

11 ‘‘(2) CULTURAL HERITAGE.—The term ‘cultural

12 heritage’ means the living legacy of creations, skills,

13 and knowledge handed down from prior generations—

14 ‘‘(A) that embraces the traditional arts and

15 ideas that are developed informally and that re16 flect the heritage, tradition, and history of Amer17 ican communities over the centuries; and

18 ‘‘(B) that continues to evolve as new groups

19 contribute to the American experience.

20 ‘‘(3) GRANT.—The term ‘grant’ includes a loan,

21 a contract, and a cooperative agreement.

22 ‘‘(4) GROUP.—The term ‘group’ includes any

23 State, regional, or local arts agency, and any non24 profit organization or institution in the United

25 States, whether or not incorporated.
190

•S 856 RS

1 ‘‘(5) HUMANITIES.—The term ‘humanities’ in2 cludes—

3 ‘‘(A) the study and interpretation of—

4 ‘‘(i) language, both modern and classi5 cal, linguistics, literature, history, jurispru6 dence, philosophy, archaeology, comparative

7 religion, and ethics;

8 ‘‘(ii) the history, criticism, and theory

9 of the arts;

10 ‘‘(iii) folklore and folklife; and

11 ‘‘(iv) the aspects of the social sciences

12 that have humanistic content and employ

13 humanistic methods; and

14 ‘‘(B) the study and application of the hu15 manities described in subparagraph (A) to the

16 human environment with particular attention

17 to—

18 ‘‘(i) reflecting the heritage, traditions,

19 and history of the United States; and

20 ‘‘(ii) the relevance of the humanities

21 described in subparagraph (A) to the condi22 tions of national life.

23 ‘‘(6) PROGRAM INCOME.—

24 ‘‘(A) IN GENERAL.—The term ‘program in25 come’ means any money that is earned or re-
191

•S 856 RS

1 ceived, by a recipient of a grant made under title

2 II or III, from an activity supported by the

3 funds made available through the grant or from

4 a product resulting from or related to an activ5 ity carried out under the grant.

6 ‘‘(B) TYPES OF INCOME.—The term in7 cludes—

8 ‘‘(i) income from a fee for service per9 formed, or from the sale of an item created,

10 under the grant;

11 ‘‘(ii) income from a licensing fee on a

12 product related to an activity carried out

13 under the grant;

14 ‘‘(iii) a usage or rental fee for equip15 ment or property acquired under the grant;

16 ‘‘(iv) an admission fee for an activity

17 carried out under the grant;

18 ‘‘(v) income from a broadcast or dis19 tribution right for such an activity; and

20 ‘‘(vi) a royalty on a patent or copy21 right for such an activity.

22 ‘‘(7) REGIONAL GROUP.—The term ‘regional

23 group’ means any multistate group, whether or not

24 representative of contiguous States.
192

•S 856 RS

1 ‘‘(8) STATE.—The term ‘State’ includes, in addi2 tion to the several States of the United States, the

3 Commonwealth of Puerto Rico, the District of Colum4 bia, Guam, American Samoa, the Commonwealth of

5 the Northern Mariana Islands, and the United States

6 Virgin Islands.

7 ‘‘(9) UNDERSERVED COMMUNITIES.—The term

8 ‘underserved communities’ means those communities

9 that have historically been outside the purview of arts

10 and humanities programs.

11 ‘‘TITLE I—NATIONAL FOUNDA12 TION ON THE ARTS AND THE

13 HUMANITIES

14 ‘‘SEC. 101. ESTABLISHMENT OF THE NATIONAL FOUNDA15 TION ON THE ARTS AND THE HUMANITIES.

16 ‘‘(a) ESTABLISHMENT.—There is established a Na17 tional Foundation on the Arts and the Humanities (referred

18 to in this Act as the ‘Foundation’), which shall be composed

19 of a National Endowment for the Arts, a National Endow20 ment for the Humanities (each of which may be referred

21 to in this section as an ‘Endowment’), and an Institute of

22 Museum and Library Services.

23 ‘‘(b) PURPOSE.—The purpose of the Foundation shall

24 be to develop and promote a national policy of support for

25 the arts and the humanities in the United States.
193

•S 856 RS

1 ‘‘(c) LIMITATION.—In the administration of this Act

2 no department, agency, officer, or employee of the United

3 States shall exercise any direction, supervision, or control

4 over the policy determination, personnel, or curriculum, or

5 the administration or operation of any school or other non6 Federal agency, institution, organization, or association.

7 ‘‘(d) DONATIONS, BEQUESTS, AND DEVISES.—

8 ‘‘(1) IN GENERAL.—In any case in which any

9 money or other property is donated, bequeathed, or

10 devised to the Foundation without designation of the

11 Endowment for the benefit of which the money or

12 property is intended, each Chairperson of an Endow13 ment shall have authority to receive such money or

14 property.

15 ‘‘(2) UNRESTRICTED DONATIONS, BEQUESTS, AND

16 DEVISES.—Except as provided in paragraph (3), un17 less the Chairpersons of the Endowments agree other18 wise, the money or property described in paragraph

19 (1) shall be deemed to have been donated, bequeathed,

20 or devised in equal shares to each Endowment.

21 ‘‘(3) RESTRICTED DONATIONS, BEQUESTS, AND

22 DEVISES.—In any case in which any money or prop23 erty is donated, bequeathed, or devised to the Founda24 tion with a condition or restriction, such money or

25 property shall be deemed to have been donated, be-
194

•S 856 RS

1 queathed, or devised to the Endowment whose func2 tion it is to carry out the purposes of the condition

3 or restriction.

4 ‘‘(e) TAX LAWS.—For the purposes of the income tax,

5 gift tax, and estate tax laws of the United States, any

6 money or other property donated, bequeathed, or devised to

7 the Foundation or one of the Endowments and received by

8 the Chairperson of an Endowment pursuant to this section,

9 section 207, or section 307 shall be deemed to have been

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

11 United States.

12 ‘‘SEC. 102. GENERAL LIMITATIONS ON GRANTS.

13 ‘‘None of the grants awarded under this Act shall be

14 used for the purposes of lobbying or for providing general

15 membership services for groups.

16 ‘‘SEC. 103. JOINT ADMINISTRATION.

17 ‘‘(a) INSPECTOR GENERAL.—There shall be in the

18 Foundation a single Office of the Inspector General for the

19 National Endowment for the Arts and the National Endow20 ment for the Humanities. The Office shall be headed by 1

21 Inspector General appointed in accordance with the Inspec22 tor General Act of 1978 (5 U.S.C. App.). The Inspector Gen23 eral shall carry out the duties prescribed in such Act, in24 cluding conducting appropriate reviews to ensure that re25 cipients of grants under titles II and III comply with the
195

•S 856 RS

1 applicable regulations and procedures established under this

2 Act, including regulations relating to accounting and fi3 nancial matters.

4 ‘‘(b) REPORTING.—The Inspector General for the Na5 tional Endowment for the Arts and the National Endow6 ment for the Humanities shall report—

7 ‘‘(1) to the Chairperson of the National Endow8 ment for the Arts with respect to matters relating to

9 the National Endowment for the Arts; and

10 ‘‘(2) to the Chairperson of the National Endow11 ment for the Humanities with respect to matters re12 lating to the National Endowment for the Human13 ities.

14 ‘‘(c) OTHER FUNCTIONS.—The Chairperson of the Na15 tional Endowment for the Arts and Chairperson of the Na16 tional Endowment for the Humanities shall ensure non17 duplication of administrative functions, such as provision

18 of facilities and space, records management, contracting,

19 procurement, printing, and provision of mail and library

20 services. The Chairpersons shall enter into an interagency

21 agreement to jointly carry out the functions with the mini22 mum necessary expense.

23 ‘‘(d) REPORT.—Not later than 60 days after the date

24 of enactment of the Arts, Humanities, and Museums

25 Amendments of 1995, the Chairperson of the National En-
196

•S 856 RS

1 dowment for the Arts and the Chairperson of the National

2 Endowment for the Humanities shall jointly prepare and

3 submit to the appropriate committees of Congress a report

4 containing a plan that describes the manner in which the

5 Chairpersons will jointly carry out the functions described

6 in subsection (c). Not later than 180 days after such date

7 of enactment, the Chairpersons shall implement the plan.

8 ‘‘SEC. 104. STUDY ON A TRUE ENDOWMENT.

9 ‘‘(a) IN GENERAL.—The Chairperson of the National

10 Endowment for the Arts and the Chairperson of the Na11 tional Endowment for the Humanities, in consultation with

12 persons with expertise in the arts, humanities, business,

13 charitable giving, and copyright, industries, and other ap14 propriate Federal agencies, shall jointly conduct, or con15 tract for, a study on the feasibility of establishing a true

16 endowment for the National Endowment for the Arts and

17 the National Endowment for the Humanities in order to

18 provide supplemental funding to support the efforts of the

19 National Endowment for the Arts and the National Endow20 ment for the Humanities, respectively.

21 ‘‘(b) SCOPE OF STUDY.—The study described in sub22 section (a) shall examine innovative methods through which

23 a true endowment may be funded, including such methods

24 as private fundraising, an extension of a copyright term,

25 recapture of funds from past grants of the National Endow-
197

•S 856 RS

1 ment for the Arts and the National Endowment for the Hu2 manities that have proven profitable, or any other innova3 tive methods the Chairpersons determine appropriate.

4 ‘‘(c) REPORT.—Not later than 1 year after the date

5 on which funding is made available under this Act to con6 duct the study described in subsection (a), the Chairperson

7 of the National Endowment for the Arts and the Chair8 person of the National Endowment for the Humanities shall

9 jointly prepare and submit to the appropriate committees

10 of Congress a report containing recommendations on the in11 novative methods through which the true endowment may

12 be funded to support efforts described in subsection (a).

13 ‘‘SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

14 ‘‘(a) NATIONAL ENDOWMENT FOR THE ARTS.—

15 ‘‘(1) IN GENERAL.—

16 ‘‘(A) TOTAL AUTHORIZATION.—There are

17 authorized to be appropriated to carry out the

18 activities of the National Endowment for the

19 Arts under this Act $153,900,000 for fiscal year

20 1996, $146,205,000 for fiscal year 1997,

21 $138,895,000 for fiscal year 1998, $131,950,000

22 for fiscal year 1999, and $125,353,000 for fiscal

23 year 2000.
198

•S 856 RS

1 ‘‘(B) GENERAL RESERVATIONS.—There shall

2 be reserved amounts sufficient to carry out sub3 section (c)(1).

4 ‘‘(C) RESERVATION FOR PARTNERSHIP

5 GRANTS.—40 percent of the amount appro6 priated for a fiscal year under subparagraph (A)

7 and remaining after amounts are reserved under

8 subparagraph (B) shall be reserved for making

9 grants under section 202(c).

10 ‘‘(D) RESERVATION FOR NATIONAL SIGNIFI11 CANCE GRANTS.—40 percent of the amount ap12 propriated for a fiscal year under subparagraph

13 (A) and remaining after amounts are reserved

14 under subparagraph (B) shall be reserved for

15 making grants under section 202(d).

16 ‘‘(E) RESERVATION FOR DIRECT GRANTS.—

17 10 percent of the amount appropriated for a fis18 cal year under subparagraph (A) and remaining

19 after amounts are reserved under subparagraph

20 (B) shall be reserved for making grants under

21 section 202(e).

22 ‘‘(F) RESERVATION FOR ARTS EDUCATION

23 AND UNDERSERVED COMMUNITIES GRANTS.—10

24 percent of the amount appropriated for a fiscal

25 year under subparagraph (A) and remaining
199

•S 856 RS

1 after amounts are reserved under subparagraph

2 (B) shall be reserved for making grants under

3 section 202(f).

4 ‘‘(2) SUMS REMAINING AVAILABLE.—Sums ap5 propriated pursuant to paragraph (1) for any fiscal

6 year shall remain available for obligation until ex7 pended.

8 ‘‘(b) NATIONAL ENDOWMENT FOR THE HUMANITIES.—

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) TOTAL AUTHORIZATION.—There are

11 authorized to be appropriated to carry out the

12 activities of the National Endowment for the

13 Humanities under this Act $160,117,000 for fis14 cal year 1996, $152,111,000 for fiscal year 1997,

15 $144,505,000 for fiscal year 1998, $137,260,000

16 for fiscal year 1999, and $130,397,000 for fiscal

17 year 2000.

18 ‘‘(B) GENERAL RESERVATIONS.—There shall

19 be reserved amounts sufficient to carry out sub20 section (c)(2).

21 ‘‘(C) RESERVATION FOR PARTNERSHIP

22 GRANTS.—30 percent of the amount appro23 priated for a fiscal year under subparagraph (A)

24 and remaining after amounts are reserved under

25 subparagraph (B) shall be reserved for making
200

•S 856 RS

1 grants under section 302(c). Of the amount re2 served under this subparagraph, 5 percent of

3 such amount shall be made available for activi4 ties relating to elementary and secondary edu5 cation in the humanities.

6 ‘‘(D) RESERVATION FOR NATIONAL

7 GRANTS.—35 percent of the amount appro8 priated for a fiscal year under subparagraph (A)

9 and remaining after amounts are reserved under

10 subparagraph (B) shall be reserved for making

11 grants under section 302(d).

12 ‘‘(E) RESERVATION FOR RESEARCH AND

13 SCHOLARSHIP GRANTS.—35 percent of the

14 amount appropriated for a fiscal year under

15 subparagraph (A) and remaining after amounts

16 are reserved under subparagraph (B) shall be re17 served for making grants under section 302(e).

18 ‘‘(2) SUMS REMAINING AVAILABLE.—Sums ap19 propriated pursuant to paragraph (1) for any fiscal

20 year shall remain available for obligation until ex21 pended.

22 ‘‘(c) ADMINISTRATION.—

23 ‘‘(1) NATIONAL ENDOWMENT FOR THE ARTS.—

24 ‘‘(A) IN GENERAL.—Not more than 12 per25 cent of the amount appropriated for a fiscal year
201

•S 856 RS

1 under subsection (a)(1)(A) may be made avail2 able for the costs of administering title II, or any

3 other program for which the Chairperson of the

4 National Endowment for the Arts is responsible,

5 of which—

6 ‘‘(i) not more than $100,000 shall be

7 made available for the President’s Commit8 tee on the Arts and the Humanities, none of

9 which may be used to reimburse members of

10 the Committee for travel and related ex11 penses; and

12 ‘‘(ii) not to exceed $100,000 shall be

13 made available for fiscal year 1996 from

14 amounts received under section 207(a)(2)

15 for official reception and representation ex16 penses and not to exceed $50,000 shall be

17 made available for each subsequent fiscal

18 year from such amounts for such expenses.

19 ‘‘(B) REDUCTIONS.—In addition to the

20 amount reserved in subparagraph (A), not more

21 than 3 percent of the amount appropriated for a

22 fiscal year under subsection (a)(1)(A) may be

23 made available solely for the costs of carrying

24 out the payment of—
202

•S 856 RS

1 ‘‘(i) employee severance pay under sec2 tion 5595 of title 5, United States Code, or

3 employee severance pay under any other

4 provision of law; and

5 ‘‘(ii) employee buy out programs as

6 authorized by law.

7 ‘‘(2) NATIONAL ENDOWMENT FOR THE HUMAN8 ITIES.—Not more than 12 percent of the amount ap9 propriated for a fiscal year under subsection (b)(1)(A)

10 may be made available for the costs of administering

11 title III, or any other program for which the Chair12 person of the National Endowment for the Human13 ities is responsible, of which—

14 ‘‘(A) not more than $100,000 shall be made

15 available for the President’s Committee on the

16 Arts and the Humanities, none of which may be

17 used to reimburse members of the Committee for

18 travel and related expenses; and

19 ‘‘(B) not to exceed $100,000 shall be made

20 available for fiscal year 1996 from amounts re21 ceived under section 307(a)(2) for official recep22 tion and representation expenses and not to ex23 ceed $50,000 shall be made available for each

24 subsequent fiscal year from such amounts for

25 such expenses, except that this paragraph shall
203

•S 856 RS

1 not apply to expenses associated with the award

2 established under section 310(1).

3 ‘‘TITLE II—NATIONAL

4 ENDOWMENT FOR THE ARTS

5 ‘‘SEC. 201. DEFINITIONS.

6 ‘‘As used in this title:

7 ‘‘(1) DEVELOPING ARTS ORGANIZATION.—The

8 term ‘developing arts organization’ means a local arts

9 organization of high artistic promise that—

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

11 arts programming in a community; and

12 ‘‘(B) has the potential to broaden public ac13 cess to the arts in rural and urban underserved

14 communities.

15 ‘‘(2) FINAL JUDGMENT.—The term ‘final judg16 ment’ means a judgment that is either—

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

18 has authority to review such judgment; or

19 ‘‘(B) is not reviewable by any other court.

20 ‘‘(3) LOCAL ARTS AGENCY.—The term ‘local arts

21 agency’ means a community organization, or an

22 agency of local government, that primarily provides

23 financial support, services, or other programs for art24 ists and arts organizations, for the benefit of the com25 munity as a whole.
204

•S 856 RS

1 ‘‘(4) OBSCENE; DETERMINED TO BE OBSCENE.—

2 ‘‘(A) OBSCENE.—The term ‘obscene’ means,

3 with respect to a project, production, or work4 shop that—

5 ‘‘(i) the average person, applying con6 temporary community standards, would

7 find that such project, production, or work8 shop, when taken as a whole, appeals to the

9 prurient interest;

10 ‘‘(ii) such project, production, or work11 shop depicts or describes sexual conduct in

12 a patently offensive way; and

13 ‘‘(iii) such project, production, or

14 workshop, when taken as a whole, lacks seri15 ous literary, artistic, political or scientific

16 value.

17 ‘‘(B) DETERMINED TO BE OBSCENE.—The

18 term ‘determined to be obscene’ means deter19 mined, in a final judgment of a court of record

20 and of competent jurisdiction in the United

21 States, to be obscene.

22 ‘‘(5) PRODUCTION.—The term ‘production’

23 means any activity involving the execution or ren24 dition of the arts and meeting such standards as may

25 be approved by the Chairperson of the Endowment.
205

•S 856 RS

1 ‘‘(6) PROJECT.—

2 ‘‘(A) IN GENERAL.—The term ‘project’

3 means a program organized to carry out the ob4 jectives of this Act, including a program to foster

5 United States artistic creativity, to commission

6 a work of art, or to develop and enhance the

7 widest public access, knowledge, and understand8 ing of the arts, and includes, where appropriate,

9 rental or purchase of a facility, rental or pur10 chase of land, and acquisition of equipment.

11 ‘‘(B) RENOVATION OR CONSTRUCTION.—

12 Such term also includes—

13 ‘‘(i) the renovation of a facility if—

14 ‘‘(I) the amount of the expendi15 ture of Federal funds for such purpose

16 in the case of any facility does not ex17 ceed $250,000; and

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

19 the National Council on the Arts (who

20 are present and voting) recommend a

21 grant involving an expenditure for

22 such purpose; and

23 ‘‘(ii) with respect to a grant under sec24 tion 202(d), the construction of a facility,

25 if—
206

•S 856 RS

1 ‘‘(I) such construction is for dem2 onstration purposes or under unusual

3 circumstances in which there is no

4 other manner by which to accomplish

5 an artistic purpose; and

6 ‘‘(II) two-thirds of the members of

7 the National Council on the Arts (who

8 are present and voting) recommend a

9 grant involving an expenditure for

10 such purpose.

11 ‘‘(7) WORKSHOP.—The term ‘workshop’ means a

12 program the primary purpose of which is to encour13 age the artistic development or enjoyment of amateur,

14 student, or other participants.

15 ‘‘SEC. 202. ESTABLISHMENT OF THE NATIONAL ENDOW16 MENT FOR THE ARTS.

17 ‘‘(a) ESTABLISHMENT.—There is established within

18 the Foundation a National Endowment for the Arts (re19 ferred to in this title as the ‘Endowment’).

20 ‘‘(b) CHAIRPERSON.—

21 ‘‘(1) APPOINTMENT.—The Endowment shall be

22 headed by a chairperson, to be known as the Chair23 person of the Endowment (referred to in this title as

24 the ‘Chairperson’), who shall be appointed by the
207

•S 856 RS

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

2 Senate.

3 ‘‘(2) TERM.—

4 ‘‘(A) IN GENERAL.—The term of office of the

5 Chairperson shall be 4 years, except that any

6 Chairperson appointed to fill a vacancy shall

7 serve for the remainder of the term for which the

8 predecessor of the Chairperson was appointed.

9 Notwithstanding any other provision of this sub10 paragraph, on the expiration of the term of office

11 of the Chairperson, the Chairperson shall serve

12 until the successor to the Chairperson is ap13 pointed and has qualified.

14 ‘‘(B) REAPPOINTMENT.—The Chairperson

15 shall be eligible for reappointment.

16 ‘‘(c) PARTNERSHIP GRANTS.—

17 ‘‘(1) PURPOSES.—The purpose of this subsection

18 is to make grants to States and local and regional

19 groups to establish local arts activities, with pref20 erence to arts education and projects that reach rural

21 and urban underserved communities.

22 ‘‘(2) GRANTS TO STATES.—

23 ‘‘(A) AUTHORITY.—Using the funds reserved

24 under section 105(a)(1)(C), the Chairperson, act25 ing on the recommendation of the National
208

•S 856 RS

1 Council on the Arts, shall establish and carry

2 out a program of basic State grants to assist

3 States—

4 ‘‘(i)(I) in supporting projects, produc5 tions, or workshops that meet the standard

6 of artistic excellence and artistic merit and

7 that fulfill the purposes of this Act; and

8 ‘‘(II) in developing projects, produc9 tions, or workshops that will furnish pro10 grams, facilities, and services in the arts to

11 people and communities in each of the

12 States; and

13 ‘‘(ii) in carrying out activities that—

14 ‘‘(I) stimulate artistic activity

15 and awareness, and broaden public ac16 cess to the arts, in rural and urban

17 underserved communities;

18 ‘‘(II) enhance the artistic capa19 bilities of developing arts organizations

20 through artistic, programmatic, and

21 staff development; or

22 ‘‘(III) provide technical assistance

23 to developing arts organizations to im24 prove managerial and organizational
209

•S 856 RS

1 skills, financial systems management,

2 and long-range fiscal planning.

3 ‘‘(B) APPLICATION.—In order to receive a

4 grant under this paragraph for any fiscal year,

5 a State shall submit an application described in

6 section 203 for such grant at such time and in

7 such manner as shall be specified by the Chair8 person and accompany such application with a

9 State plan that the Chairperson finds—

10 ‘‘(i) designates or provides for the es11 tablishment of a State agency (referred to in

12 this section as the ‘State agency’) as the sole

13 agency for the administration of the State

14 plan;

15 ‘‘(ii) provides that funds paid to the

16 State under this paragraph will be ex17 pended solely on projects, productions, or

18 workshops described in subparagraph (A)

19 and approved by the State agency;

20 ‘‘(iii) provides that the State agency

21 will make such reports, in such manner and

22 containing such information, as the Chair23 person may from time to time require, in24 cluding a description of the progress made
210

•S 856 RS

1 toward achieving the objectives of the State

2 plan;

3 ‘‘(iv) provides—

4 ‘‘(I) an assurance that the State

5 agency has held, after reasonable no6 tice, public meetings in the State to

7 allow groups of artists, interested

8 groups, and the public to present views

9 and make recommendations regarding

10 the State plan; and

11 ‘‘(II) a summary of such rec12 ommendations and the response of the

13 State agency to such recommendations;

14 and

15 ‘‘(v) contains—

16 ‘‘(I) for the most recent preceding

17 year for which information is avail18 able, a description of the level of par19 ticipation by artists, artists’ organiza20 tions, and arts groups in projects, pro21 ductions, or workshops supported by

22 funding from the State agency under

23 this paragraph, and a description of

24 the extent to which projects, produc25 tions, or workshops supported by fund-
211

•S 856 RS

1 ing from the State agency under this

2 paragraph were available to all people

3 and communities in the State, espe4 cially underserved communities; and

5 ‘‘(II) a description of projects,

6 productions, or workshops supported

7 by funding from the State agency

8 under this paragraph that exist or are

9 being developed to secure wider partici10 pation of artists, artists’ organizations,

11 and arts organizations described in

12 subclause (I) or that address the avail13 ability of the arts to all people or com14 munities described in subclause (I).

15 ‘‘(C) APPROVAL.—The Chairperson may not

16 approve an application described in subpara17 graph (B) unless the accompanying State plan

18 satisfies the requirements specified in subpara19 graph (B).

20 ‘‘(D) ALLOTMENTS.—

21 ‘‘(i) IN GENERAL.—Of the sums avail22 able to carry out this paragraph for any

23 fiscal year, each State that has an applica24 tion approved by the Chairperson shall be

25 allotted at least $200,000.
212

•S 856 RS

1 ‘‘(ii) INSUFFICIENT FUNDS.—If the

2 sums available to carry out this paragraph

3 for any fiscal year are insufficient to make

4 the allotments under clause (i) in full, such

5 sums shall be allotted so that each such

6 State receives an equal amount.

7 ‘‘(iii) EXCESS FUNDS.—In any case in

8 which the sums available to carry out this

9 paragraph for any fiscal year are in excess

10 of the amount required to make the allot11 ments under clause (i)—

12 ‘‘(I) the amount of such excess

13 that is not greater than 25 percent of

14 the sums available to carry out this

15 paragraph for such fiscal year shall be

16 available to the Chairperson for mak17 ing grants under this paragraph to

18 States and, in accordance with sub19 paragraph (H), regional groups; and

20 ‘‘(II) the amount of such excess for

21 such fiscal year, if any, that remains

22 after reserving in full for the Chair23 person the amount required under

24 subclause (I) shall be allotted so that

25 each State that has an application ap-
213

•S 856 RS

1 proved by the Chair receives an equal

2 amount;

3 but in no event shall any State be allotted

4 less than $200,000 under this paragraph.

5 ‘‘(E) FEDERAL SHARE.—

6 ‘‘(i) IN GENERAL.—Funding provided

7 through a grant made under this paragraph

8 to a State for any fiscal year shall be avail9 able to each State that has an application

10 approved by the Chairperson, and has the

11 State plan accompanying the application

12 in effect on the first day of such fiscal year,

13 to pay not more than 50 percent of the total

14 cost of carrying out any activity described

15 in subparagraph (A).

16 ‘‘(ii) EXCESS PORTION.—Except as

17 provided in clause (iii), the portion of the

18 funding provided through any grant made

19 under subparagraph (D)(i) to a State for

20 any fiscal year that exceeds $125,000 shall

21 be available, at the discretion of the Chair22 person, to pay not more than 100 percent of

23 such cost of carrying out an activity under

24 this paragraph if such activity would be
214

•S 856 RS

1 unavailable to the residents of the State

2 without such portion.

3 ‘‘(iii) PERCENTAGE OF GRANT

4 FUNDS.—The portion of the funding de5 scribed in clause (ii) for any fiscal year

6 that is available to pay not more than 100

7 percent of such cost, as described in clause

8 (ii), shall not exceed 20 percent of the total

9 funding provided through such grant for

10 such fiscal year.

11 ‘‘(F) PROHIBITION ON SUPPLANTING NON12 FEDERAL FUNDS.—Funds made available under

13 this paragraph shall be used to supplement, and

14 shall not supplant, non-Federal funds expended

15 for supporting activities described in subpara16 graph (A).

17 ‘‘(G) UNOBLIGATED FUNDS.—Any amount

18 allotted to a State under subparagraph (D)(i) for

19 any fiscal year that is not obligated by the State

20 earlier than 60 days prior to the end of the fiscal

21 year for which the amount is appropriated shall

22 be available for making grants to regional

23 groups.

24 ‘‘(H) SPECIAL RULE.—The provisions of

25 this paragraph (other than subparagraph (D))
215

•S 856 RS

1 shall apply to regional groups receiving grants

2 under this paragraph in such manner, and to

3 such extent, as the Chairperson shall by regula4 tion prescribe.

5 ‘‘(I) DEFINITION.—As used in subpara6 graph (D)(iii)(II) and notwithstanding section

7 3(8), the term ‘State’ includes, in addition to the

8 several States of the United States, only the ju9 risdictions specified in such section that have a

10 population of 200,000 or more, according to the

11 latest decennial census.

12 ‘‘(d) NATIONAL SIGNIFICANCE GRANTS.—

13 ‘‘(1) PURPOSE.—The purpose of this subsection

14 is to make grants to groups, including regional

15 groups, of demonstrated and substantial artistic and

16 cultural importance, for projects, productions, and

17 workshops that will increase the access of all the peo18 ple of the United States, especially underserved com19 munities, to the best of the arts and culture of the

20 United States.

21 ‘‘(2) IN GENERAL.—Using funds reserved under

22 section 105(a)(1)(D), the Chairperson, acting on the

23 recommendation of the National Council on the Arts,

24 may establish and carry out a program of grants to

25 groups who meet the standard of artistic excellence
216

•S 856 RS

1 and artistic merit and who are engaged in or con2 cerned with the arts, for the purpose of paying for

3 the Federal share of the cost of—

4 ‘‘(A) enabling the groups to provide or sup5 port projects, productions, or workshops de6 scribed in paragraph (3) that will have a na7 tional, regional, or otherwise substantial artistic

8 or cultural impact; or

9 ‘‘(B) providing administrative and manage10 ment improvements for the groups, particularly

11 in the field of long-range financial planning, in12 cluding increasing levels of community support

13 and the range of contributors to the programs of

14 such groups.

15 ‘‘(3) PROJECTS, PRODUCTIONS, AND WORK16 SHOPS.—

17 ‘‘(A) REQUIRED ELEMENTS.—Each such

18 project, production, or workshop shall—

19 ‘‘(i) have substantial national or re20 gional cultural significance, and encourage

21 professional excellence; or

22 ‘‘(ii)(I) have significant merit; and

23 ‘‘(II) be a project, production, or work24 shop that, if such a group did not receive a
217

•S 856 RS

1 grant, might otherwise be unavailable to

2 citizens for geographic or economic reasons.

3 ‘‘(B) PERMISSIBLE ELEMENTS.—Each such

4 project, production, or workshop may—

5 ‘‘(i) encourage access to, education in,

6 and knowledge, understanding, enjoyment,

7 and appreciation of, the arts by the public;

8 ‘‘(ii) enhance managerial and organi9 zational skills and capabilities;

10 ‘‘(iii) use technology to broaden public

11 access to the arts;

12 ‘‘(iv) expand access to the arts for in13 dividuals with disabilities; or

14 ‘‘(v) promote access to the arts for mi15 nority or underserved populations.

16 ‘‘(4) FEDERAL SHARE REQUIREMENT.—

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

18 subparagraphs (B) and (C), in the case of any

19 grant made under this subsection, the Federal

20 share described in paragraph (2) shall be 25 per21 cent.

22 ‘‘(B) CERTAIN GROUPS.—In the case of any

23 grant made under this subsection to a group

24 with an annual budget in excess of $3,000,000,
218

•S 856 RS

1 the Federal share described in paragraph (2)

2 shall be 16.67 percent.

3 ‘‘(C) ADJUSTMENTS.—The Chairperson may

4 increase the Federal share applicable under this

5 subsection for a designated grant recipient, with

6 review by the National Council on the Arts. The

7 Chairperson shall not increase the Federal share

8 above 50 percent for the recipient. Not more than

9 10 percent of the funds made available by the

10 Endowment for grants under this subsection for

11 any fiscal year may be available for grants for

12 the fiscal year for which the Chairperson in13 creases the applicable Federal share.

14 ‘‘(5) PRIORITY.—In awarding grants under this

15 subsection, the Chairperson shall give priority to

16 projects, productions, and workshops that increase the

17 access of the public of the United States, especially

18 underserved communities, to culture and the arts, in19 cluding access by touring, by regional or national dis20 semination, or by geographic dispersion.

21 ‘‘(e) DIRECT GRANTS.—

22 ‘‘(1) PURPOSE.—The purpose of this subsection

23 is to make grants to groups, and individuals, that are

24 broadly representative of the cultural heritage of the

25 United States and broadly geographically representa-
219

•S 856 RS

1 tive, for projects, productions, and workshops of the

2 highest artistic excellence and artistic merit.

3 ‘‘(2) IN GENERAL.—Using funds reserved under

4 section 105(a)(1)(E), the Chairperson, acting on the

5 recommendation of the National Council on the Arts,

6 may establish and carry out a program of grants to

7 groups, or individuals who meet the standard of artis8 tic excellence and artistic merit and who are engaged

9 in or concerned with the arts, to pay for the Federal

10 share of the cost of projects, productions, or workshops

11 that meet the standard of artistic excellence and artis12 tic merit and that fulfill the purposes of this Act.

13 ‘‘(3) FEDERAL SHARE REQUIREMENT.—The Fed14 eral share described in paragraph (2) shall be 50 per15 cent.

16 ‘‘(4) PRIORITY.—In awarding grants under this

17 subsection, the Chairperson shall give priority to

18 projects, productions, and workshops that will be dis19 seminated widely after completion.

20 ‘‘(5) ADJUSTMENTS.—The Chairperson may in21 crease the Federal share applicable under this sub22 section for a designated grant recipient, with review

23 by the National Council on the Arts. Not more than

24 20 percent of the funds made available by the Endow25 ment for grants under this subsection for any fiscal
220

•S 856 RS

1 year may be available for grants for the fiscal year

2 for which the Chairperson increases the applicable

3 Federal share.

4 ‘‘(6) SPECIAL RULE FOR GRANTS TO INDIVID5 UALS.—The Chairperson shall only award a grant in

6 accordance with this section to an individual de7 scribed in paragraph (2) if such grant is awarded to

8 such individual for a literature fellowship.

9 ‘‘(f) ARTS EDUCATION AND UNDERSERVED COMMU10 NITIES GRANTS.—

11 ‘‘(1) IN GENERAL.—Using the funds reserved

12 under section 105(a)(1)(F), the Chairperson, acting

13 on the recommendation of the National Council on the

14 Arts, may establish and carry out a program of

15 grants to State arts agencies, or other local or re16 gional groups, to pay for the Federal share of the cost

17 of carrying out activities that—

18 ‘‘(A) promote and improve the availability

19 of arts instruction, and improve the quality of

20 arts education, through support of lifelong learn21 ing in the arts;

22 ‘‘(B) enhance the quality of arts instruction

23 in programs of teacher education;

24 ‘‘(C) develop arts faculty resources and tal25 ents;
221

•S 856 RS

1 ‘‘(D) support and encourage the develop2 ment of improved curriculum materials in the

3 arts;

4 ‘‘(E) support apprenticeships, internships,

5 and other career oriented work-study experiences

6 for artists and arts teachers, and encourage

7 residencies of artists at all educational levels;

8 ‘‘(F) stimulate artistic activity and aware9 ness, and broaden public access to the arts, in

10 underserved communities;

11 ‘‘(G) enhance the artistic capabilities of de12 veloping arts organizations in underserved com13 munities through artistic, programmatic, and

14 staff development; or

15 ‘‘(H) provide technical assistance to devel16 oping arts organizations in underserved commu17 nities to improve managerial and organizational

18 skills, financial systems management, and long19 range fiscal planning.

20 ‘‘(2) APPLICATION.—In order to receive a grant

21 under paragraph (1) for any fiscal year, a State arts

22 agency, or regional or local group shall submit an ap23 plication described in section 203 for such grant at

24 such time, in such manner, and accompanied by such

25 information, as shall be specified by the Chairperson.
222

•S 856 RS

1 ‘‘(3) FEDERAL SHARE.—The Federal share de2 scribed in paragraph (1) shall be 50 percent.

3 ‘‘SEC. 203. APPLICATION PROCEDURES.

4 ‘‘(a) APPLICATION REQUIREMENT.—No grant shall be

5 made under this title to any person unless the person sub6 mits an application to the Chairperson in accordance with

7 regulations and procedures established by the Chairperson.

8 ‘‘(b) PROCEDURES.—

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) CONSIDERATIONS.—In establishing

11 such regulations and procedures for applications,

12 the Chairperson shall ensure that—

13 ‘‘(i) artistic excellence and artistic

14 merit of the projects, productions, and

15 workshops described in the application are

16 the criteria by which the applications are

17 judged by advisory panels described in sec18 tion 204, taking into consideration general

19 standards of decency and respect for the di20 verse beliefs and values of the public of the

21 United States;

22 ‘‘(ii) in selecting groups as recipients

23 of grants under section 202, the Chairperson

24 shall give preference to artistically rural

25 and urban underserved communities and
223

•S 856 RS

1 artists and artistic groups that have tradi2 tionally been underrepresented in the arts;

3 and

4 ‘‘(iii) the projects, productions, and

5 workshops described in the applications,

6 and awards of grants under this title, are

7 consistent with the objectives of section 202

8 and this section.

9 ‘‘(B) OBSCENITY PROVISIONS.—Such regu10 lations and procedures shall clearly indicate that

11 obscenity is without artistic merit, is not pro12 tected speech, and shall not be funded under this

13 title. Projects, productions, and workshops that

14 are determined to be obscene shall be prohibited

15 from receiving grants under this title from the

16 Endowment.

17 ‘‘(2) CONSIDERATIONS FOR THE CHAIR18 PERSON.—In considering an application for a grant

19 under this title, the Chairperson shall consider the ex20 tent to which the projects, productions, and workshops

21 described in the application fulfill the purposes of this

22 Act, as well as their artistic excellence and artistic

23 merit, as determined by the Chairperson.

24 ‘‘(3) CONSTRUCTION.—The disapproval or ap25 proval by the Chairperson of an application for a
224

•S 856 RS

1 grant under this title shall not be construed to mean,

2 and shall not be considered to be evidence that, the

3 project, production, or workshop, for which the appli4 cant requested a grant, is or is not obscene.

5 ‘‘SEC. 204. ADVISORY PANELS.

6 ‘‘(a) IN GENERAL.—The Chairperson shall utilize re7 view by advisory panels—

8 ‘‘(1) as the first step in the review of applica9 tions submitted under this Act; and

10 ‘‘(2) to make recommendations to the National

11 Council on the Arts in all cases involving requests for

12 grants authorized under this title, except cases in

13 which the Chairperson exercises authority delegated

14 under section 205(f)(2).

15 ‘‘(b) PROCEDURES.—

16 ‘‘(1) CRITERIA.—In reviewing the applications,

17 such panels shall recommend applications for projects,

18 productions, and workshops on the basis of artistic ex19 cellence and artistic merit, consistent with section

20 203(b)(1)(A)(i).

21 ‘‘(2) AMOUNTS.—The panels may recommend

22 only general ranges of funding to be provided through

23 the grants and may not recommend specific amounts

24 of such funding.
225

•S 856 RS

1 ‘‘(3) REGULATIONS AND PROCEDURES.—The

2 Chairperson shall issue regulations and establish pro3 cedures to—

4 ‘‘(A) ensure that all the panels are com5 posed, to the extent practicable, of individuals

6 providing a wide geographic, ethnic, and minor7 ity representation as well as individuals reflect8 ing diverse artistic and cultural points of view;

9 ‘‘(B) ensure that all the panels include at

10 least 2 members representing lay individuals

11 who are—

12 ‘‘(i) knowledgeable about the arts;

13 ‘‘(ii) not engaged in the arts as a pro14 fession; and

15 ‘‘(iii) not employees of either artists’

16 organizations or arts organizations;

17 ‘‘(C) ensure that, when feasible, the proce18 dures used by the panels to carry out their re19 sponsibilities are standardized;

20 ‘‘(D) require each such panel—

21 ‘‘(i) to create written records summa22 rizing—

23 ‘‘(I) all meetings and discussions

24 of such panel; and
226

•S 856 RS

1 ‘‘(II) the recommendations made

2 by such panel to the Council; and

3 ‘‘(ii) to make such records available to

4 the public in a manner that protects the

5 privacy of individual applicants and panel

6 members;

7 ‘‘(E) permit, when necessary and feasible, a

8 site visit to view the work of an applicant and

9 deliver a written report on the work being re10 viewed, in order to assist panelists in making

11 their recommendations;

12 ‘‘(F)(i) require that the membership of each

13 such panel change substantially from year to

14 year; and

15 ‘‘(ii) provide that no individual be eligible

16 to serve on such a panel for more than 5 years,

17 no 2 of which may be consecutive; and

18 ‘‘(G) ensure that the panels recommend

19 more applicants for grants than are anticipated

20 can be provided funding through the grants with

21 available funds.

22 ‘‘(4) PROHIBITION ON CONFLICTS OF INTER23 EST.—

24 ‘‘(A) IN GENERAL.—In making appoint25 ments to the panels, the Chairperson shall ensure
227

•S 856 RS

1 that an individual who has a pending applica2 tion for a grant authorized under this title, who

3 is an employee or agent of an organization with

4 such a pending application, or who has a direct

5 or indirect financial interest in any application

6 under consideration by such a panel, does not

7 serve as a member of any panel before which

8 such application is pending.

9 ‘‘(B) DURATION.—The prohibition described

10 in subparagraph (A) shall commence with re11 spect to such individual beginning on the date

12 such application is submitted, and shall continue

13 until a final decision on the application has been

14 reached by the Chairperson.

15 ‘‘SEC. 205. NATIONAL COUNCIL ON THE ARTS.

16 ‘‘(a) ESTABLISHMENT.—There is established within

17 the Endowment a National Council on the Arts (referred

18 to in this section as the ‘Council’).

19 ‘‘(b) COMPOSITION.—

20 ‘‘(1) IN GENERAL.—The Council shall be com21 posed of the Chairperson of the Endowment, who shall

22 be the Chairperson of the Council, and 20 other mem23 bers appointed by the President, by and with the ad24 vice and consent of the Senate, who shall be selected—
228

•S 856 RS

1 ‘‘(A) from among private citizens of the

2 United States who—

3 ‘‘(i) are widely recognized for their

4 broad knowledge of, or expertise in, the arts;

5 and

6 ‘‘(ii) have established records of distin7 guished service, or achieved eminence, in the

8 arts;

9 ‘‘(B) so as to include practicing artists,

10 civic cultural leaders, members of cultural profes11 sions, and others who are professionally engaged

12 in the arts; and

13 ‘‘(C) so as collectively to provide an appro14 priate distribution of members among the major

15 art fields.

16 ‘‘(2) QUALIFICATIONS.—The President may, in

17 making such appointments, give consideration to such

18 recommendations as may, from time to time, be sub19 mitted to the President by leading national organiza20 tions in the major art fields. In making such appoint21 ments, the President shall give due regard to equitable

22 representation of women, racially and ethnically di23 verse individuals, and individuals with disabilities,

24 who are involved in the arts. Members of the Council
229

•S 856 RS

1 shall be appointed so as to represent equitably geo2 graphical areas in the United States.

3 ‘‘(c) TERMS.—

4 ‘‘(1) IN GENERAL.—

5 ‘‘(A) STAGGERED TERMS.—Each member of

6 the Council shall serve for a term of 6 years, and

7 the terms shall be staggered.

8 ‘‘(B) EXPIRATION.—Except as provided in

9 paragraph (2), the terms of all Council members

10 shall expire on the third day of September in the

11 year of expiration.

12 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

13 TERM.—Each member who has served on the

14 Council for 1 term of less than 3 years shall be

15 eligible for reappointment for 1 term of 6 years.

16 ‘‘(D) VACANCY APPOINTMENTS.—Any mem17 ber appointed to fill a vacancy shall serve for the

18 remainder of the term for which the predecessor

19 of the member was appointed.

20 ‘‘(E) HOLDOVER SERVICE.—Notwithstand21 ing any other provision of this subsection, a

22 member of the Council shall serve after the expi23 ration of the term of the member until the succes24 sor to the member takes office.

25 ‘‘(2) ADJUSTMENT TO REDUCE COUNCIL.—
230

•S 856 RS

1 ‘‘(A) EXPIRATION OF TERMS.—The terms of

2 10 members of the Council whose terms would

3 otherwise expire on September 3, 1996 shall be

4 deemed to expire on January 1, 1996.

5 ‘‘(B) TERMS.—The President shall appoint

6 4 members of the Council to succeed members

7 whose terms are deemed to expire as described in

8 subparagraph (A). The terms of the successors

9 shall expire on September 3, 2002.

10 ‘‘(d) COMPENSATION.—Members of the Council shall

11 receive compensation at a rate to be fixed by the Chair12 person but not to exceed the daily equivalent of the maxi13 mum rate authorized for a position above grade GS–15 of

14 the General Schedule under section 5108 of title 5, United

15 States Code, and be allowed travel expenses including per

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

17 the same extent, as authorized under section 5703 of title

18 5, United States Code, for persons employed intermittently

19 in Federal Government service.

20 ‘‘(e) MEETINGS AND DUTIES.—

21 ‘‘(1) MEETINGS.—The Council shall meet at the

22 call of the Chairperson but not less often than twice

23 during each calendar year. Eleven members of the

24 Council shall constitute a quorum. All policy meet25 ings of the Council shall be open to the public.
231

•S 856 RS

1 ‘‘(2) DUTIES.—The Council shall—

2 ‘‘(A) advise the Chairperson with respect to

3 policies, programs, and procedures for carrying

4 out the functions of the Chairperson under this

5 title;

6 ‘‘(B) review applications for grants author7 ized under this title and make recommendations

8 to the Chairperson with respect to—

9 ‘‘(i) whether to approve particular ap10 plications for grants authorized under this

11 title that have been determined by advisory

12 panels to have artistic excellence and artis13 tic merit; and

14 ‘‘(ii) the amount of funding that the

15 Chairperson should provide through such a

16 grant with respect to each such application

17 the Council recommends for approval;

18 ‘‘(C) use as criteria for the recommenda19 tions of the Council—

20 ‘‘(i) the extent to which the works de21 scribed in the applications fulfill the pur22 poses of this Act;

23 ‘‘(ii) the artistic excellence and artistic

24 merit of the works described in the applica25 tions; and
232

•S 856 RS

1 ‘‘(iii) the extent to which the applicant

2 serves an underserved community,

3 as determined by each Council member;

4 ‘‘(D) recommend more applications for

5 funding through grants than are anticipated can

6 be provided funding through the grants with

7 available funds;

8 ‘‘(E) create written records summarizing—

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

10 Council; and

11 ‘‘(ii) recommendations made by the

12 Council to the Chairperson; and

13 ‘‘(F) make such records available to the

14 public in a manner that protects the privacy of

15 individual applicants for grants authorized

16 under this title, advisory panel members, and

17 Council members.

18 ‘‘(f) ACTIONS BY CHAIRPERSON.—

19 ‘‘(1) IN GENERAL.—The Chairperson shall not

20 approve or disapprove any application for a grant

21 authorized under this title until the Chairperson has

22 received the recommendation of the Council on such

23 application. The Chairperson shall have final author24 ity to approve each such application, and shall deter25 mine the final amount of funding through any grant
233

•S 856 RS

1 awarded. The Chairperson may not approve an ap2 plication with respect to which the Council makes a

3 negative recommendation.

4 ‘‘(2) DELEGATIONS.—In the case of an applica5 tion, or amendment of an application, submitted

6 under this title and involving $35,000 or less, or a re7 quest for change in a grant amount of 20 percent or

8 less, the Chairperson may approve or disapprove such

9 application, amendment, or request, if such action is

10 taken pursuant to the terms of an express and direct

11 delegation of authority from the Council to the Chair12 person, and if each such action by the Chairperson is

13 reported to the Council at the next regularly scheduled

14 meeting of the Council. Such action by the Chair15 person shall be used with discretion and shall not be16 come a normal practice of providing funding through

17 a grant authorized under this title. The terms of any

18 such delegation of authority shall not permit obliga19 tions for expenditure of funds under such delegation

20 for any fiscal year that exceed an amount equal to 2

21 percent of the sums appropriated for the fiscal year

22 pursuant to section 105(a)(1).

23 ‘‘SEC. 206. LIMITATIONS ON GRANTS.

24 ‘‘(a) PROHIBITION ON SUBGRANTS.—The Chairperson

25 shall establish procedures to ensure that no funding pro-
234

•S 856 RS

1 vided through a grant under this title, except a grant made

2 to a State or regional group, may be used to make a grant

3 to any other organization or individual to conduct activity

4 independent of the direct grant recipient. Nothing in this

5 subsection shall prohibit payments made in exchange for

6 goods or services rendered.

7 ‘‘(b) PROHIBITION ON SEASONAL SUPPORT.—No grant

8 awarded under this title shall be used for seasonal support

9 to a group.

10 ‘‘(c) USE OF FUNDS FOR PROJECTS, PRODUCTIONS,

11 AND WORKSHOPS IN SPECIFIED DISCIPLINES.—Each

12 project, production, or workshop funded under this title

13 shall relate to arts, as defined in section 3.

14 ‘‘(d) LABOR STANDARDS.—

15 ‘‘(1) IN GENERAL.—It shall be a condition of the

16 receipt of any grant under this title that the grant re17 cipient furnish adequate assurances to the Secretary

18 of Labor that—

19 ‘‘(A) all professional performers and related

20 or supporting professional personnel employed

21 on projects or productions, or in workshops, that

22 are financed in whole or in part under this title

23 will be paid, without subsequent deduction or re24 bate on any account, not less than the minimum

25 compensation as determined by the Secretary of
235

•S 856 RS

1 Labor to be the prevailing minimum compensa2 tion for persons employed in similar activities;

3 and

4 ‘‘(B) no part of any project, production, or

5 workshop that is financed in whole or in part

6 under this title will be performed or engaged in

7 under working conditions that are unsanitary or

8 hazardous or dangerous to the health and safety

9 of the employees engaged in such project, produc10 tion, or workshop.

11 ‘‘(2) EVIDENCE.—Compliance with the safety

12 and sanitary laws of the State in which the project,

13 production, or workshop described in paragraph

14 (1)(B) is to take place shall be prima facie evidence

15 of compliance with the assurance described in para16 graph (1)(B).

17 ‘‘(3) STANDARDS, REGULATIONS, AND PROCE18 DURES.—The Secretary of Labor shall have the au19 thority to prescribe such standards, regulations, and

20 procedures as the Secretary of Labor may determine

21 to be necessary or appropriate to carry out this sub22 section.

23 ‘‘(e) LIMITATION ON GRANT AWARD.—

24 ‘‘(1) INDIVIDUALS.—No individual may receive

25 more than 2 grant awards under this title.
236

•S 856 RS

1 ‘‘(2) AGENCIES AND ORGANIZATIONS.—No group,

2 other than a State arts agency, may receive more

3 than 3 grant awards in a fiscal year under this title,

4 except that this paragraph shall not apply to a group

5 that has entered into a cooperative agreement with

6 the Endowment to receive assistance under this title.

7 ‘‘(f) REQUIREMENTS FOR GROUPS.—A group shall be

8 eligible for a grant under this title if—

9 ‘‘(1) no part of the net earnings of the group in10 ures to the benefit of any private stockholder, or indi11 vidual; and

12 ‘‘(2) a donation to such group is allowable as a

13 charitable contribution under section 170(c) of the In14 ternal Revenue Code of 1986.

15 ‘‘(g) CITIZENSHIP REQUIREMENTS FOR INDIVID16 UALS.—An individual shall be eligible to receive a direct

17 grant under this title if at the time such grant is received

18 such individual—

19 ‘‘(1) is a citizen or other national of the United

20 States; or

21 ‘‘(2) is an alien lawfully admitted to the United

22 States for permanent residence who—

23 ‘‘(A) has filed an application for natu24 ralization in the manner prescribed by section
237

•S 856 RS

1 334 of the Immigration and Nationality Act (8

2 U.S.C. 1445); and

3 ‘‘(B) is not permanently ineligible to be4 come a citizen of the United States.

5 ‘‘(h) INSTALLMENTS.—The Chairperson shall establish

6 procedures to provide for the distribution of funding pro7 vided through grants made under this title to recipients in

8 installments except in exceptional cases in which the Chair9 person determines that installments are not practicable. In

10 providing any such installments to a recipient of a grant

11 under this title, the Chairperson shall ensure that—

12 ‘‘(1) not more than two-thirds of such funding

13 may be provided at the time the application for the

14 grant is approved; and

15 ‘‘(2) the remainder of such funding may not be

16 provided until the Chairperson finds that the recipi17 ent of such grant is complying substantially with this

18 Act and with the conditions under which such fund19 ing is provided to such recipient.

20 ‘‘(i) LOANS.—Any loan made by the Chairperson

21 under this title shall be made in accordance with terms and

22 conditions approved by the Secretary of the Treasury.

23 ‘‘SEC. 207. ADMINISTRATIVE PROVISIONS.

24 ‘‘(a) AUTHORITIES OF CHAIRPERSON.—In addition to

25 any authorities vested in the Chairperson by other provi-
238

•S 856 RS

1 sions of this Act, the Chairperson, in carrying out the func2 tions of the Chairperson, shall have authority—

3 ‘‘(1) to prescribe such regulations and procedures

4 as the Chairperson determines to be necessary govern5 ing the manner in which the functions of the Chair6 person shall be carried out;

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

8 money and other property donated, bequeathed, or de9 vised to the Endowment, either absolutely or in trust,

10 with or without a condition or restriction, including

11 a condition that the Chairperson use other funds of

12 the Endowment for the purposes of the donation, be13 quest, or devise; and

14 ‘‘(B) to sell or otherwise dispose of such property,

15 for purposes of carrying out the activities of the En16 dowment under this title;

17 ‘‘(3) to appoint and determine the compensation

18 of such employees, subject to title 5, United States

19 Code, as may be necessary to carry out the functions

20 of the Chairperson, define their duties, and supervise

21 and direct their activities;

22 ‘‘(4) to procure the temporary and intermittent

23 services of experts and consultants, including panels

24 of experts, and compensate the experts and consult-
239

•S 856 RS

1 ants in accordance with section 3109 of title 5, Unit2 ed States Code;

3 ‘‘(5) to accept and utilize the voluntary services

4 of individuals and reimburse the individuals for trav5 el expenses, including per diem in lieu of subsistence,

6 in the same amounts and to the same extent as au7 thorized under section 5703 of title 5, United States

8 Code, for persons employed intermittently in Federal

9 Government service;

10 ‘‘(6) to make advance, progress, and other pay11 ments without regard to section 3324 of title 31,

12 United States Code;

13 ‘‘(7) to rent office space in the District of Colum14 bia; and

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

16 ‘‘(b) PUBLICATIONS.—Official publications of the En17 dowment under this title may be supported without regard

18 to the provisions of section 501 of title 44, United States

19 Code, if the Chairperson consults with the Joint Committee

20 on Printing of the Congress.

21 ‘‘(c) COORDINATION.—The Chairperson shall coordi22 nate the programs of the Endowment, insofar as prac23 ticable, with other Federal programs and programs under24 taken by other public agencies or private groups, and shall

25 develop the programs of the Endowment with due regard
240

•S 856 RS

1 to the contribution to the objectives of this title that can

2 be made by other Federal agencies under the existing pro3 grams. The Chairperson may enter into interagency agree4 ments to promote or assist with the arts-related activities

5 of other Federal agencies, on a reimbursable or

6 nonreimbursable basis, and may use funds authorized to be

7 appropriated to carry out this title to pay for the costs of

8 such promotion or assistance.

9 ‘‘SEC. 208. REPORTS.

10 ‘‘(a) ANNUAL REPORT OF CHAIRPERSON.—The Chair11 person shall submit an annual report to the President for

12 submission to the appropriate committees of Congress on

13 or before the 15th day of April of each year. The report

14 shall summarize the activities of the Endowment for the

15 preceding year, and shall include such recommendations as

16 the Chairperson determines to be appropriate.

17 ‘‘(b) FINANCIAL REPORTS AND COMPLIANCE.—

18 ‘‘(1) IN GENERAL.—It shall be a condition of the

19 receipt of a grant made under this title by the Chair20 person that—

21 ‘‘(A) each applicant for such grant include

22 in the application described in section 203—

23 ‘‘(i) a detailed description of the pro24 posed project, production, or workshop for

25 which the grant is requested;
241

•S 856 RS

1 ‘‘(ii) a timetable for the completion of

2 such proposed project, production, or work3 shop; and

4 ‘‘(iii) an assurance that the applicant

5 will meet the standards of artistic excellence

6 and artistic merit;

7 ‘‘(B)(i) each grant recipient under this title

8 carry out the proposal consistent with the de9 scription contained in the application, as ap10 proved by the Chairperson for funding through

11 the grant; and

12 ‘‘(ii) each such grant recipient seeking to

13 change the activities carried out under the grant

14 justify the requested change by a written request

15 subject to approval by the Chairperson; and

16 ‘‘(C) each such grant recipient agree to and

17 comply with requirements to submit to the

18 Chairperson—

19 ‘‘(i) interim reports, including an an20 nual report for each project, production, or

21 workshop carried out under the grant dur22 ing a period exceeding 1 year, describing

23 the progress of the grant recipient in carry24 ing out such project, production, or work-
242

•S 856 RS

1 shop and compliance by the grant recipient

2 with the conditions of receipt of such grant;

3 ‘‘(ii) financial reports containing such

4 information as the Chairperson determines

5 to be necessary to ensure that the funding

6 made available through the grant is ex7 pended in accordance with the terms and

8 conditions under which the grant is made;

9 ‘‘(iii) a final report describing the

10 project, production, or workshop carried out

11 with the funding provided through the grant

12 and the compliance by the grant recipient

13 with the conditions of receipt of such grant,

14 including the condition that the work as15 sisted meet the standards of artistic excel16 lence and artistic merit; and

17 ‘‘(iv) in the case of a project or produc18 tion, and if practicable, as determined by

19 the Chairperson, a copy of such project or

20 production.

21 ‘‘(2) REPORT REQUIREMENTS.—The Chairperson

22 shall determine the appropriate form and timing of

23 interim reporting described in paragraph (1)(C)(i)

24 for a grant recipient under this title. The reports and

25 copy described in clauses (ii), (iii), and (iv) of para-
243

•S 856 RS

1 graph (1)(C) shall be due not later than 90 days after

2 the end of the period for which such grant recipient

3 receives funding through the grant or 90 days after

4 the completion of the project, production, or workshop,

5 whichever occurs earlier. The Chairperson may extend

6 the 90-day period if the recipient shows good cause

7 why such an extension should be granted.

8 ‘‘(c) EVALUATION.—The Chairperson shall conduct a

9 post-award evaluation of activities for which grants are

10 made by the Chairperson under this title. Such evaluation

11 may include an audit to determine the accuracy of the re12 ports required to be submitted by grant recipients under

13 subsection (b).

14 ‘‘(d) REPORTS.—The Chairperson shall establish pro15 cedures to require that no additional funding shall be pro16 vided to a recipient of a grant authorized under this title

17 unless such recipient has submitted to the Chairperson all

18 required interim, financial, and final reports under sub19 section (b).

20 ‘‘SEC. 209. SANCTIONS AND PAYMENTS.

21 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recipi22 ent of a grant made under this title, or an indirect recipient

23 of funding provided through the grant, substantially fails

24 to satisfy the purposes for which such grant is made, as

25 determined by the Chairperson, the Chairperson may—
244

•S 856 RS

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

2 any subsequent funding to the direct or indirect re3 cipient under this title, take into consideration the re4 sults of the post-award evaluation conducted under

5 section 208(c);

6 ‘‘(2) prohibit the direct and indirect recipients

7 from using the name of, or in any way associating

8 the project, production, or workshop for which the

9 grant was received with, the Endowment; and

10 ‘‘(3) if such project, production, or workshop is

11 published, require that the publication contain the fol12 lowing statement: ‘The opinions, findings, conclu13 sions, and recommendations expressed in this publica14 tion do not reflect the views of the National Endow15 ment for the Arts.’.

16 ‘‘(b) NONCOMPLIANCE.—

17 ‘‘(1) IN GENERAL.—The Chairperson shall take

18 the actions described in paragraph (2) whenever the

19 Chairperson, after providing reasonable notice and an

20 opportunity for hearing, finds that—

21 ‘‘(A) a direct recipient of a grant under this

22 title, or an indirect recipient of funding provided

23 through the grant, is not complying substantially

24 with the provisions of this title;
245

•S 856 RS

1 ‘‘(B) a State agency or regional group that

2 received a grant under this title, or an indirect

3 recipient of funding provided through the grant,

4 is not complying substantially with the terms

5 and conditions of the State plan accompanying

6 the application approved for the grant under

7 this title; or

8 ‘‘(C) any funding provided under this title

9 to a recipient, State agency, or regional group

10 described in subparagraph (A) or (B) has been

11 diverted from the purposes for which such fund12 ing was provided.

13 ‘‘(2) ACTIONS.—On making the finding described

14 in paragraph (1), the Chairperson shall immediately

15 notify the direct recipient, State agency, or regional

16 group that received the funding at issue that—

17 ‘‘(A) no further funding will be provided

18 under this title to such recipient, agency, or

19 group until there is no longer any default or

20 failure to comply or the diversion is corrected; or

21 ‘‘(B) if compliance or correction is impos22 sible, until such recipient, agency, or group re23 pays or arranges the repayment of the Federal

24 funds that were improperly diverted or expended.

25 ‘‘(c) OBSCENE WORKS.—
246

•S 856 RS

1 ‘‘(1) DETERMINATION.—If, after providing rea2 sonable notice and opportunity for a hearing on the

3 record, the Chairperson determines that a direct re4 cipient of a grant under this title, or an indirect re5 cipient of funding provided through the grant, used

6 the funding for a project, production, or workshop

7 that is determined to be obscene, the Chairperson shall

8 require that until the direct recipient repays such

9 funding (in such amount, and under such terms and

10 conditions, as the Chairperson determines to be ap11 propriate) to the Endowment, no subsequent funding

12 shall be provided under this title to such recipient.

13 ‘‘(2) CREDITING.—Funds repaid under this sub14 section to the Endowment shall be deposited in the

15 Treasury of the United States and credited as mis16 cellaneous receipts.

17 ‘‘(3) APPLICATION.—

18 ‘‘(A) TIMING.—This subsection shall not

19 apply with respect to grants made before October

20 1, 1990.

21 ‘‘(B) DURATION.—This subsection shall not

22 apply with respect to a project, production, or

23 workshop after the expiration of the 7-year pe24 riod beginning on the latest date on which a
247

•S 856 RS

1 grant is made under this title for such project,

2 production, or workshop.

3 ‘‘(d) RECAPTURE.—

4 ‘‘(1) IN GENERAL.—A recipient of funding under

5 this title shall pay the amount described in para6 graph (2) to the Endowment if the Chairperson finds

7 that the recipient has derived net program income in

8 excess of the match required under the terms of the

9 agreement from a commercially successful project,

10 production, or workshop funded that exceeds the lesser

11 of—

12 ‘‘(A) $50,000; or

13 ‘‘(B) twice the amount of the funding.

14 ‘‘(2) AMOUNT.—At the discretion of the Chair15 person, the amount referred to in paragraph (1) is

not less than 1⁄3 and not more than 1 16 ⁄2 of the amount

17 of the net program income generated within 5 years

18 after the end of the grant period, but not more than

19 the amount of the funding, unless the Chairperson has

20 reached an agreement with the grantee upon the

21 award of a grant that the amount referred to in para22 graph (1) shall exceed the amount of the grant.

23 ‘‘(e) ACCOUNT.—Except as otherwise provided in this

24 Act, the Treasurer of the United States shall deposit funds

25 paid under subsection (d), or repaid under this Act, in a
248

•S 856 RS

1 special interest bearing account to the credit of the Endow2 ment.

3 ‘‘SEC. 210. AWARDS.

4 ‘‘(a) NATIONAL MEDAL OF ARTS.—

5 ‘‘(1) ESTABLISHMENT.—There is established a

6 National Medal of Arts, which shall be a medal of

7 such design as is determined to be appropriate by the

8 President, on the basis of recommendations submitted

9 by the National Council on the Arts, and which shall

10 be awarded as provided in this subsection.

11 ‘‘(2) AWARDS.—The President shall from time to

12 time award the National Medal of Arts, on the basis

13 of recommendations from the National Council on the

14 Arts, to individuals or groups who in the judgment

15 of the President are deserving of special recognition

16 by reason of their outstanding contributions to the ex17 cellence, growth, support, and availability of the arts

18 in the United States.

19 ‘‘(3) NUMBER OF MEDALS.—Not more than 12 of

20 such medals may be awarded in any calendar year.

21 ‘‘(4) QUALIFICATIONS.—An individual may be

22 awarded the National Medal of Arts if at the time

23 such award is made such individual meets the re24 quirements of section 206(g).
249

•S 856 RS

1 ‘‘(5) GROUPS.—A group may be awarded the

2 National Medal of Arts if such group is organized or

3 incorporated in the United States.

4 ‘‘(6) CEREMONIES.—The presentation of the Na5 tional Medal of Arts shall be made by the President

6 with such ceremonies as the President may determine

7 to be appropriate, including attendance by appro8 priate Members of Congress.

9 ‘‘(b) AWARD FOR DISTINGUISHED LIFETIME SERVICE

10 FOR THE ARTS.—

11 ‘‘(1) ESTABLISHMENT.—There is established an

12 Award for Distinguished Lifetime Service for the

13 Arts.

14 ‘‘(2) CEREMONIES.—The Chairperson shall

15 present the award described in paragraph (1) to each

16 of the former Chairpersons of the Endowment in con17 junction with such ceremonies as the Director may

18 determine to be appropriate to celebrate the 30th an19 niversary of the establishment of the Endowment.

20 ‘‘(3) EFFECTIVE DATE.—Paragraphs (1) and (2)

21 shall be effective during the period beginning on the

22 date of enactment of this section and ending on

23 March 31, 1996.
250

•S 856 RS

1 ‘‘(c) FUNDS.—The Chairperson shall use amounts re2 ceived by the National Endowment for the Arts under sec3 tion 207(a)(2) to carry out this section.

4 ‘‘TITLE III—NATIONAL ENDOW5 MENT FOR THE HUMANITIES

6 ‘‘SEC. 301. DEFINITIONS.

7 ‘‘As used in this title:

8 ‘‘(1) PROJECT.—

9 ‘‘(A) IN GENERAL.—The term ‘project’

10 means an activity organized to carry out the ob11 jectives of this title.

12 ‘‘(B) RENOVATION OR CONSTRUCTION.—

13 Such term also includes—

14 ‘‘(i) the renovation of a facility if—

15 ‘‘(I) the amount of the expendi16 ture of Federal funds for such purpose

17 in the case of any facility does not ex18 ceed $250,000; and

19 ‘‘(II) two-thirds of the members of

20 the National Council on the Human21 ities (who are present and voting) rec22 ommend a grant involving an expendi23 ture for such purpose; and

24 ‘‘(ii) for purposes of section 302(d), the

25 construction of a facility if—
251

•S 856 RS

1 ‘‘(I) such construction is for dem2 onstration purposes or under unusual

3 circumstances in which there is no

4 other manner by which to accomplish a

5 humanistic purpose; and

6 ‘‘(II) two-thirds of the members of

7 the National Council on the Human8 ities (who are present and voting) rec9 ommend a grant involving an expendi10 ture for such purpose.

11 ‘‘(2) WORKSHOP.—The term ‘workshop’ means

12 an activity the primary purpose of which is to pro13 mote scholarship and teaching among the partici14 pants.

15 ‘‘SEC. 302. ESTABLISHMENT OF THE NATIONAL ENDOW16 MENT FOR THE HUMANITIES.

17 ‘‘(a) ESTABLISHMENT.—There is established within

18 the Foundation a National Endowment for the Humanities

19 (referred to in this title as the ‘Endowment’).

20 ‘‘(b) CHAIRPERSON.—

21 ‘‘(1) APPOINTMENT.—The Endowment shall be

22 headed by a chairperson, to be known as the Chair23 person of the Endowment (referred to in this title as

24 the ‘Chairperson’), who shall be appointed by the
252

•S 856 RS

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

2 Senate.

3 ‘‘(2) TERM.—

4 ‘‘(A) IN GENERAL.—The term of office of the

5 Chairperson shall be 4 years, except that any

6 Chairperson appointed to fill a vacancy shall

7 serve for the remainder of the term for which the

8 predecessor of the Chairperson was appointed.

9 Notwithstanding any other provision of this sub10 paragraph, on the expiration of the term of office

11 of the Chairperson, the Chairperson shall serve

12 until the successor to the Chairperson is ap13 pointed and has qualified.

14 ‘‘(B) REAPPOINTMENT.—The Chairperson

15 shall be eligible for reappointment.

16 ‘‘(c) PARTNERSHIP GRANTS.—

17 ‘‘(1) PURPOSE.—The purpose of this subsection

18 is to support programs of humanities councils at the

19 State and local levels.

20 ‘‘(2) DEFINITION.—

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

22 subparagraph (B), as used in this subsection, the

23 term ‘State entity’ means—
253

•S 856 RS

1 ‘‘(i) a State that obtains approval of

2 an application submitted under paragraph

3 (4); or

4 ‘‘(ii) in a case in which a State fails

5 to submit an application under paragraph

6 (4), an appropriate entity that obtains ap7 proval of an application submitted under

8 paragraph (5).

9 ‘‘(B) JURISDICTION.—

10 ‘‘(i) STATE ENTITY.—As used in para11 graph (6)(C)(ii), the term ‘State entity’

12 means a State entity, as defined in sub13 paragraph (A), for a State.

14 ‘‘(ii) STATE.—As used in clause (i),

15 and notwithstanding section 3(8), the term

16 ‘State’, includes, in addition to the several

17 States of the United States, only the juris18 dictions specified in such section that have

19 a population of 200,000 or more, according

20 to the latest decennial census.

21 ‘‘(3) GENERAL AUTHORITY.—Using funds re22 served under section 105(b)(1)(C), the Chairperson,

23 acting on the recommendation of the National Coun24 cil on the Humanities, is authorized, in accordance

25 with the provisions of this subsection, to establish and
254

•S 856 RS

1 carry out a program of grants to assist State enti2 ties—

3 ‘‘(A) in paying for not more than 50 per4 cent of the cost (except as otherwise provided in

5 this subsection) of supporting activities that

6 achieve the objectives described in subparagraphs

7 (A) through (F) of subsection (d)(2) and in sub8 paragraphs (A) and (B) of subsection (e)(2); or

9 ‘‘(B) in matching contributions from non10 Federal sources made to a trust fund the purpose

11 of which is to provide long-term financial sup12 port for such activities.

13 ‘‘(4) GRANTS THROUGH STATE AGENCIES.—

14 ‘‘(A) DESIGNATION.—In order to receive a

15 grant under this subsection for any fiscal year,

16 if a State desires to designate or to provide for

17 the establishment of a State agency (referred to

18 in this section as a ‘State agency’) as the sole

19 agency for the administration of the State plan

20 referred to in subparagraph (B) relating to the

21 grant, such State shall designate as the State

22 agency the humanities council or shall provide

23 for the establishment of such a council.

24 ‘‘(B) APPLICATION AND STATE PLAN.—In

25 any State that designates or provides for the es-
255

•S 856 RS

1 tablishment of a State agency as described in

2 subparagraph (A), the chief executive officer of

3 the State shall submit, before the beginning of

4 each fiscal year, an application for a grant and

5 accompany such application with a State plan

6 that the Chairperson finds—

7 ‘‘(i) designates or provides for the es8 tablishment of a State agency;

9 ‘‘(ii) provides that the chief executive

10 officer of the State will appoint new mem11 bers to the State humanities council des12 ignated or established under subparagraph

13 (A), as vacancies occur as a result of the ex14 piration of the terms of members of such

15 council, until the chief executive officer has

16 appointed all of the members of such coun17 cil;

18 ‘‘(iii) provides for the expenditure,

19 from State funds, of an amount equal to 50

20 percent of the portion of the funding re21 ceived by such State through a grant made

22 under paragraph (6)(A) (relating to the

23 minimum State allotment), or 25 percent of

24 the total amount of funding received by

25 such State through grants made under this
256

•S 856 RS

1 subsection, whichever is greater, for the fis2 cal year involved (except as otherwise pro3 vided in paragraph (7));

4 ‘‘(iv) provides that funds paid to the

5 State under this subsection will be expended

6 solely on activities, approved by the State

7 agency, that—

8 ‘‘(I) achieve the objectives de9 scribed in subparagraphs (A) through

10 (F) of subsection (d)(2) and subpara11 graphs (A) and (B) of subsection

12 (e)(2); and

13 ‘‘(II) are designed to bring the hu14 manities to the public;

15 ‘‘(v) provides assurances that State

16 funds will be made available for the purpose

17 of meeting the requirements of this subpara18 graph;

19 ‘‘(vi) provides that the State agency

20 will make such reports, in such manner and

21 containing such information, as the Chair22 person may from time to time require, in23 cluding a description of the progress made

24 toward achieving the objectives of the State

25 plan;
257

•S 856 RS

1 ‘‘(vii) provides—

2 ‘‘(I) an assurance that the State

3 agency has held, after reasonable no4 tice, public meetings in the State to

5 allow scholars, interested organiza6 tions, and the public to present views

7 and make recommendations regarding

8 the State plan; and

9 ‘‘(II) a summary of such rec10 ommendations and of the response of

11 the State agency to such recommenda12 tions; and

13 ‘‘(viii) contains—

14 ‘‘(I) for the most recent preceding

15 year for which information is avail16 able, a description of the level of par17 ticipation by scholars and scholarly or18 ganizations in activities supported by

19 funding from the State agency under

20 this subsection and a description of the

21 extent to which the activities supported

22 by funding from the State agency

23 under this subsection were available to

24 all people and communities in the

25 State; and
258

•S 856 RS

1 ‘‘(II) a description of activities

2 supported by funding from the State

3 agency under this subsection that exist

4 or are being developed to secure wider

5 participation of scholars and scholarly

6 organizations described in subclause

7 (I) or that address the availability of

8 the humanities to all people or commu9 nities described in subclause (I).

10 ‘‘(C) APPROVAL.—The Chairperson may not

11 approve an application described in subpara12 graph (B) unless the accompanying State plan

13 satisfies the requirements specified in subpara14 graph (B).

15 ‘‘(5) GRANTS TO APPROPRIATE ENTITIES.—

16 ‘‘(A) DESIGNATION.—In any State in which

17 the chief executive officer of the State fails to sub18 mit an application under paragraph (4)(B) for

19 a fiscal year, the Chairperson may make grants

20 under paragraph (3) to an appropriate entity in

21 the State, and each such entity shall establish a

22 procedure that ensures that 8 members of the

23 governing body of such entity shall be appointed

24 by an appropriate officer or agency of such

25 State, except that in no event may the number
259

•S 856 RS

of such members exceed 1 1 ⁄3 of the total member2 ship of such governing body. The officer or agen3 cy shall select the members from among individ4 uals who have knowledge of or experience in the

5 humanities.

6 ‘‘(B) APPLICATION AND PLAN.—If a State

7 fails to submit an application under paragraph

8 (4)(B) for a fiscal year, any appropriate entity

9 in the State desiring to receive a grant under

10 this subsection for the fiscal year shall submit an

11 application for such grant at such time and in

12 such manner as shall be specified by the Chair13 person, and accompany such application with a

14 State plan that the Chairperson finds—

15 ‘‘(i) provides assurances that such en16 tity will comply with the requirements of

17 subparagraph (A);

18 ‘‘(ii) provides that funds paid to such

19 entity under this paragraph will be ex20 pended solely on activities that—

21 ‘‘(I) achieve the objectives de22 scribed in subparagraphs (A) through

23 (F) of subsection (d)(2) and subpara24 graphs (A) and (B) of subsection

25 (e)(2); and
260

•S 856 RS

1 ‘‘(II) are designed to bring the hu2 manities to the public;

3 ‘‘(iii) establishes a membership policy

4 that is designed to ensure broad public rep5 resentation with respect to activities admin6 istered by such entity;

7 ‘‘(iv) provides for a nomination process

8 that ensures opportunities for nomination

9 to membership in the governing body from

10 various groups in such State and from a

11 variety of segments of the population of

12 such State, including individuals who by

13 reason of their achievement, scholarship, or

14 creativity in the humanities, are especially

15 qualified to serve as members of the body;

16 ‘‘(v) provides for a membership rota17 tion process that ensures the regular rota18 tion of the membership and officers of such

19 entity;

20 ‘‘(vi) establishes reporting procedures

21 that are designed to inform the chief execu22 tive officer of such State, and other appro23 priate officers and agencies, of the activities

24 of such entity;
261

•S 856 RS

1 ‘‘(vii) establishes procedures to ensure

2 public access to information relating to such

3 activities;

4 ‘‘(viii) provides that such entity will

5 make such reports, at such times, in such

6 manner, and containing such information,

7 as the Chairperson may require, including

8 a description of the progress made toward

9 achieving the objectives of the State plan;

10 ‘‘(ix) provides—

11 ‘‘(I) an assurance that the entity

12 has held, after reasonable notice, public

13 meetings in the State to allow scholars,

14 interested organizations, and the pub15 lic to present views and make rec16 ommendations regarding the State

17 plan; and

18 ‘‘(II) a summary of such rec19 ommendations and of the response of

20 the entity to such recommendations;

21 and

22 ‘‘(x) contains—

23 ‘‘(I) for the most recent preceding

24 year for which information is avail25 able, a description of the level of par-
262

•S 856 RS

1 ticipation by scholars and scholarly or2 ganizations in activities supported by

3 funding from the entity under this sub4 section, and a description of the extent

5 to which activities supported by fund6 ing from the entity under this sub7 section were available to all people and

8 communities in the State; and

9 ‘‘(II) a description of activities

10 supported by funding from the entity

11 under this subsection that exist or are

12 being developed to secure wider partici13 pation of scholars and scholarly orga14 nizations described in subclause (I) or

15 that address the availability of the hu16 manities to all people or communities

17 described in subclause (I).

18 ‘‘(C) APPROVAL.—The Chairperson may not

19 approve an application described in subpara20 graph (B) unless the accompanying plan satis21 fies the requirements specified in subparagraph

22 (B).

23 ‘‘(6) ALLOTMENTS.—

24 ‘‘(A) IN GENERAL.—Of the sums available

25 to carry out this subsection for any fiscal year,
263

•S 856 RS

1 each State entity shall be allotted at least

2 $200,000.

3 ‘‘(B) INSUFFICIENT SUMS.—If the sums

4 available to carry out this subsection for any fis5 cal year are insufficient to make the allotments

6 under subparagraph (A) in full, such sums shall

7 be allotted so that each State entity receives an

8 equal amount.

9 ‘‘(C) EXCESS FUNDS.—In any case in

10 which the sums available to carry out this sub11 section for any fiscal year are in excess of the

12 amount required to make the allotments under

13 subparagraph (A)—

14 ‘‘(i) 34 percent of the amount of such

15 excess for such fiscal year shall be available

16 to the Chairperson for making grants under

17 this subsection to State entities;

18 ‘‘(ii) 44 percent of the amount of such

19 excess for such fiscal year shall be allotted

20 so that each State entity receives an equal

21 amount; and

22 ‘‘(iii) the remainder of the amount of

23 such excess for such fiscal year shall be al24 lotted so that each State entity receives an

25 amount that bears the same ratio to such
264

•S 856 RS

1 remainder as the population of the State for

2 which the application is approved bears to

3 the population of all the States.

4 ‘‘(7) LIMITATIONS.—

5 ‘‘(A) FEDERAL SHARE.—

6 ‘‘(i) IN GENERAL.—Funding provided

7 through a grant made under this subsection

8 to a State entity for any fiscal year shall be

9 available to each State entity that has an

10 application approved by the Chairperson,

11 and has the State plan accompanying the

12 application in effect on the first day of such

13 fiscal year, to pay not more than 50 percent

14 of the total cost of carrying out any activity

15 described in paragraph (3).

16 ‘‘(ii) EXCESS PORTION.—Except as

17 provided in clause (iii), the portion of the

18 funding provided through any grant made

19 under paragraph (6)(A) to a State entity

20 for any fiscal year that exceeds $125,000

21 shall be available, at the discretion of the

22 Chairperson, to pay not more than 100 per23 cent of such cost of carrying out an activity

24 under this subsection if such activity would
265

•S 856 RS

1 be unavailable to the residents of the State

2 without such portion.

3 ‘‘(iii) PERCENTAGE OF GRANT

4 FUNDS.—The portion of the funding de5 scribed in clause (ii) for any fiscal year

6 that is available to pay not more than 100

7 percent of such cost, as described in clause

8 (ii), shall not exceed 20 percent of the total

9 of the funding provided through such grant

10 for such fiscal year.

11 ‘‘(B) PROHIBITION ON SUPPLANTING NON12 FEDERAL FUNDS.—Funds made available under

13 this subsection shall be used to supplement, and

14 shall not supplant, non-Federal funds expended

15 for supporting activities described in paragraph

16 (3).

17 ‘‘(8) UNOBLIGATED FUNDS.—Any amount allot18 ted to a State entity under paragraph (6) for any fis19 cal year that is not obligated by the State entity ear20 lier than 60 days prior to the end of the fiscal year

21 for which the amount is appropriated shall be avail22 able for making grants under subsection (d) and (e).

23 ‘‘(9) LIMITATION ON MULTIPLE ENTITIES.—The

24 Chairperson may not make grants under this sub25 section to more than 1 entity in any State.
266

•S 856 RS

1 ‘‘(d) NATIONAL GRANTS.—

2 ‘‘(1) PURPOSE.—The purpose of this subsection

3 is to provide support for grants to groups, individ4 uals, and State agencies or entities to carry out ac5 tivities relating to education and the public human6 ities that have a national audience and are of na7 tional significance, such as activities relating to post8 secondary education in the humanities, media

9 projects, projects in museums and by historical orga10 nizations, projects in libraries and archives, public

11 humanities projects, endowment building, and tech12 nology activities.

13 ‘‘(2) GENERAL AUTHORITY.—Using funds re14 served under section 105(b)(1)(D), the Chairperson,

15 acting on the recommendation of the National Coun16 cil on the Humanities, may establish and carry out

17 a program of grants to groups, or in appropriate

18 cases individuals, which or who meet the standard of

19 excellence in the humanities and significance in the

20 humanities, or State agencies or entities, to pay for

21 the Federal share of the cost of activities to—

22 ‘‘(A) develop and encourage the pursuit of a

23 national policy to further the public good

24 through public funding of the humanities;
267

•S 856 RS

1 ‘‘(B) initiate and support research and pro2 grams to strengthen the research and teaching

3 potential of the United States in the humanities;

4 ‘‘(C) foster the exchange of information in

5 the humanities;

6 ‘‘(D) foster education in, and public under7 standing and appreciation of, the humanities;

8 ‘‘(E) support projects that foster or promote

9 literacy;

10 ‘‘(F) ensure that the benefit of the programs

11 of the Endowment will also be available to the

12 citizens of the United States where such pro13 grams would otherwise be unavailable due to geo14 graphic or economic reasons;

15 ‘‘(G) enable groups and institutions to in16 crease the levels of continuing support and to in17 crease the range of contributors to the program

18 of such organizations or institutions;

19 ‘‘(H) provide administrative and manage20 ment improvements for groups and institutions,

21 particularly in the field of long-range financial

22 planning;

23 ‘‘(I) enable groups and institutions to in24 crease audience participation in, and apprecia-
268

•S 856 RS

1 tion of, programs sponsored by such organiza2 tions and institutions;

3 ‘‘(J) develop new sources of long-term sup4 port for educational, scholarly, and public pro5 grams in the humanities, including renovating

6 or constructing facilities, augmenting or estab7 lishing endowment funds, and purchasing cap8 ital equipment to ensure financial stability;

9 ‘‘(K) stimulate greater cooperation among

10 cultural organizations and institutions especially

11 designed to serve better the communities in

12 which such organizations or institutions are lo13 cated; and

14 ‘‘(L) foster greater citizen involvement in

15 planning the cultural development of a commu16 nity.

17 ‘‘(3) FEDERAL SHARE REQUIREMENT.—

18 ‘‘(A) IN GENERAL.—With respect to the

19 total cost of all activities funded under para20 graph (2), the Federal share shall be 50 percent.

21 ‘‘(B) SPECIAL RULE.—With respect to each

22 of the activities described in paragraph (2), the

23 Chairperson shall determine the portion of the

24 Federal share to be provided to a group or an in25 dividual described in paragraph (2).
269

•S 856 RS

1 ‘‘(C) ADJUSTMENT.—Notwithstanding sub2 paragraph (B), with respect to an activity de3 scribed in paragraph (2)(J), the portion of the

4 Federal share of the cost of such activity shall be

5 25 percent.

6 ‘‘(e) RESEARCH AND SCHOLARSHIP GRANTS.—

7 ‘‘(1) PURPOSE.—The purpose of this subsection

8 is to encourage the development and dissemination of

9 significant scholarship in the humanities by groups,

10 individuals, and State agencies or entities such as fel11 lowships for college and university faculty and inde12 pendent scholars, dissertation grants, summer sti13 pends, and funds for scholarly publications, reference

14 materials, basic research, institutional programs, and

15 preservation.

16 ‘‘(2) GENERAL AUTHORITY.—Using funds re17 served under section 105(b)(1)(E), the Chairperson,

18 acting on the recommendation of the National Coun19 cil on the Humanities, may establish and carry out

20 a program of grants to groups, individuals, State

21 agencies, and State entities for the purpose of paying

22 for the Federal share of the cost of—

23 ‘‘(A) initiating and supporting (including

24 supporting through fellowships) training, work25 shops, programs, research, and publications, in
270

•S 856 RS

1 the humanities, that have substantial scholarly

2 and cultural significance and that reach or re3 flect the cultural heritage of the United States;

4 ‘‘(B) fostering projects that provide access

5 to, and preserving materials important to re6 search, education, and public understanding re7 garding, the humanities;

8 ‘‘(C) enabling groups and institutions to in9 crease the levels of continuing support and to in10 crease the range of contributors to the program

11 of such group or institutions;

12 ‘‘(D) providing administrative and man13 agement improvements for cultural organizations

14 and institutions, particularly in the field of

15 long-range financial planning; and

16 ‘‘(E) developing new sources of long-term

17 support for educational, scholarly, and public

18 programs in the humanities, including renovat19 ing or constructing facilities, augmenting or es20 tablishing endowment funds, and purchasing

21 capital equipment to ensure financial stability.

22 ‘‘(3) TRAINING; WORKSHOPS; RESEARCH.—A fel23 lowship awarded to an individual under paragraph

24 (2)(A) may be used for the purpose of supporting

25 study or research at an appropriate nonprofit institu-
271

•S 856 RS

1 tion selected by the individual, for a stated period of

2 time. The total amount of any grant under para3 graph (2)(A) to any group engaging in workshop ac4 tivities for which an admission or other charge is

5 made to the general public shall not exceed 30 percent

6 of the total cost of such activities.

7 ‘‘(4) CONSIDERATIONS.—In selecting a group or

8 individual as a recipient of a grant to be made under

9 this subsection, the Chairperson shall give particular

10 regard to scholars, and educational and cultural in11 stitutions, that traditionally have been

12 underrepresented in the humanities.

13 ‘‘(5) FEDERAL SHARE.—

14 ‘‘(A) IN GENERAL.—With respect to the

15 total cost of all activities funded under para16 graph (2), the Federal share shall be 50 percent.

17 ‘‘(B) SPECIAL RULE.—With respect to each

18 of the activities described in paragraph (2), the

19 Chairperson shall determine the portion of the

20 Federal share to be provided to a group or indi21 vidual described in paragraph (2).

22 ‘‘(C) ADJUSTMENT.—Notwithstanding sub23 paragraph (B), with respect to an activity de24 scribed in paragraph (2)(E), the portion of the
272

•S 856 RS

1 Federal share of the cost of such activity shall

2 be 25 percent.

3 ‘‘SEC. 303. APPLICATION PROCEDURES.

4 ‘‘To be eligible to receive a grant under this title, a

5 State, group, individual, agency, or organization shall sub6 mit an application to the Chairperson at such time, in such

7 manner, and containing such information as the Chair8 person may prescribe.

9 ‘‘SEC. 304. REVIEW PANELS.

10 ‘‘The Chairperson may select panels of experts under

11 section 307(a)(4) to review and make recommendations

12 with respect to the approval of applications for grants au13 thorized under this title. In selecting the panels, the Chair14 person shall appoint individuals who have exhibited exper15 tise and leadership in the field under review, who broadly

16 represent diverse humanistic perspectives and geographic

17 factors, and who broadly represent cultural diversity.

18 ‘‘SEC. 305. NATIONAL COUNCIL ON THE HUMANITIES.

19 ‘‘(a) ESTABLISHMENT.—There is established within

20 the Endowment a National Council on the Humanities (re21 ferred to in this section as the ‘Council’).

22 ‘‘(b) COMPOSITION.—

23 ‘‘(1) IN GENERAL.—The Council shall be com24 posed of the Chairperson of the Endowment, who shall

25 be the Chairperson of the Council, and 20 other mem-
273

•S 856 RS

1 bers appointed by the President, by and with the ad2 vice and consent of the Senate, who shall be selected—

3 ‘‘(A) from among private citizens of the

4 United States who—

5 ‘‘(i) are recognized for their broad

6 knowledge of, or expertise in, the human7 ities; and

8 ‘‘(ii) have established records of distin9 guished service, or achieved eminence, in the

10 humanities;

11 ‘‘(B) so as to include scholars and others

12 who are professionally engaged in the human13 ities; and

14 ‘‘(C) so as collectively to provide an appro15 priate distribution of members among the major

16 humanities fields.

17 ‘‘(2) QUALIFICATIONS.—The President may, in

18 making such appointments, give consideration to such

19 recommendations as may, from time to time, be sub20 mitted to the President by leading national organiza21 tions in the major humanities fields. In making such

22 appointments, the President shall give due regard to

23 equitable representation of women, racially and eth24 nically diverse individuals, and individuals with dis25 abilities, who are involved in the humanities. Mem-
274

•S 856 RS

1 bers of the Council shall be appointed so as to rep2 resent equitably geographical areas in the United

3 States.

4 ‘‘(c) TERMS.—

5 ‘‘(1) IN GENERAL.—

6 ‘‘(A) STAGGERED TERMS.—Each member of

7 the Council shall serve for a term of 6 years, and

8 the terms shall be staggered.

9 ‘‘(B) EXPIRATION.—Except as provided in

10 paragraph (2), the terms of all Council members

11 shall expire on the third day of September in the

12 year of expiration.

13 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

14 TERM.—Each member who has served on the

15 Council for 1 term of less than 3 years shall be

16 eligible for reappointment for 1 term of 6 years.

17 ‘‘(D) VACANCY APPOINTMENTS.—Any mem18 ber appointed to fill a vacancy shall serve for the

19 remainder of the term for which the predecessor

20 of the member was appointed.

21 ‘‘(E) HOLDOVER SERVICE.—Notwithstand22 ing any other provision of this subsection, a

23 member of the Council shall serve after the expi24 ration of the term of the member until the succes25 sor to the member takes office.
275

•S 856 RS

1 ‘‘(2) ADJUSTMENT TO REDUCE COUNCIL.—

2 ‘‘(A) EXPIRATION OF TERMS.—The terms

3 of—

4 ‘‘(i) 8 members of the Council whose

5 terms would otherwise expire on January

6 26, 1996; and

7 ‘‘(ii) 1 member of the Council whose

8 term expired on November 30, 1995;

9 shall be deemed to expire on January 1, 1996.

10 ‘‘(B) TERMS.—The President shall appoint

11 3 members of the Council to succeed members

12 whose terms are deemed to expire as described in

13 subparagraph (A). The terms of the successors

14 shall expire on September 3, 2002.

15 ‘‘(d) COMPENSATION.—Members of the Council shall

16 receive compensation at a rate to be fixed by the Chair17 person but not to exceed the daily equivalent of the maxi18 mum rate authorized for a position above grade GS–15 of

19 the General Schedule under section 5108 of title 5, United

20 States Code, and be allowed travel expenses including per

21 diem in lieu of subsistence, as authorized under section

22 5703 of title 5, United States Code, for persons employed

23 intermittently in Federal Government service.

24 ‘‘(e) MEETINGS AND DUTIES.—
276

•S 856 RS

1 ‘‘(1) MEETINGS.—The Council shall meet at the

2 call of the Chairperson but not less often than twice

3 during each calendar year. Eleven members of the

4 Council shall constitute a quorum.

5 ‘‘(2) DUTIES.—The Council shall—

6 ‘‘(A) advise the Chairperson with respect to

7 policies, programs, and procedures for carrying

8 out the functions of the Chairperson under this

9 title; and

10 ‘‘(B) review applications for grants author11 ized under this title and make recommendations

12 to the Chairperson with respect to the approval

13 of each application.

14 ‘‘(f) ACTIONS BY CHAIRPERSON.—

15 ‘‘(1) IN GENERAL.—The Chairperson shall not

16 approve or disapprove any application for a grant

17 authorized under this title until the Chairperson has

18 received the recommendation of the Council on such

19 application, unless the Council fails to make a rec20 ommendation on the application within a reasonable

21 time.

22 ‘‘(2) DELEGATIONS.—In the case of an applica23 tion submitted under this title and involving $35,000

24 or less, the Chairperson may approve or disapprove

25 such application if such action is taken pursuant to
277

•S 856 RS

1 the terms of an express and direct delegation of au2 thority from the Council to the Chairperson, and if

3 each such action by the Chairperson is reviewed by

4 the Council. The terms of any such delegation of au5 thority shall not permit obligations for expenditure of

6 funds under such delegation for any fiscal year that

7 exceed an amount equal to 3 percent of the sums ap8 propriated for the fiscal year pursuant to section

9 105(b)(1).

10 ‘‘SEC. 306. LIMITATIONS ON GRANTS.

11 ‘‘(a) CRITERIA FOR ELIGIBILITY FOR GRANTS.—

12 ‘‘(1) DEFINITIONS.—As used in this subsection:

13 ‘‘(A) PRODUCTION ENTITY.—The term ‘pro14 duction entity’ means any partnership, corpora15 tion, business enterprise, or other organization

16 engaged in the production of a film or publica17 tion.

18 ‘‘(B) GROUP.—The term ‘group’ includes

19 any State or local government, State or local

20 public agency, Indian tribe, or nonprofit associa21 tion, organization, institution, or society.

22 ‘‘(C) NATIONAL OF THE UNITED STATES.—

23 The term ‘national of the United States’ means

24 a citizen of the United States or a person who

25 owes permanent allegiance to the United States.
278

•S 856 RS

1 ‘‘(2) CRITERIA.—The Chairperson, with the ad2 vice of the National Council on the Humanities, shall

3 establish criteria for eligibility for grants made under

4 this title. The criteria shall provide the following:

5 ‘‘(A) GROUP.—A group shall be eligible to

6 receive a grant under this title if—

7 ‘‘(i) no part of the net earnings of the

8 group inures to the benefit of any private

9 stockholder, or individual; and

10 ‘‘(ii) a donation to such group is al11 lowable as a charitable contribution under

12 section 170(c) of the Internal Revenue Code

13 of 1986.

14 ‘‘(B) PRODUCTION ENTITY.—A production

15 entity that is a nonprofit group shall be eligible

16 to receive a grant under this title if the Chair17 person, with the advice of the National Council

18 on the Humanities, determines that providing

19 such a grant will significantly advance the

20 knowledge or understanding of the humanities in

21 the United States.

22 ‘‘(C) INDIVIDUAL.—An individual shall be

23 eligible to receive a grant under this title if—

24 ‘‘(i) the individual is a citizen or na25 tional of the United States; and
279

•S 856 RS

1 ‘‘(ii) the Chairperson, with the advice

2 of the National Council on the Humanities,

3 determines that providing the grant will

4 significantly advance the knowledge or un5 derstanding of the humanities in the United

6 States.

7 ‘‘(b) ADMISSION CHARGES.—No grant shall be made

8 under this title for an activity (other than an activity con9 ducted by a school, college, or university) for which a direct

10 or an indirect admission charge is requested if the proceeds,

11 after deducting reasonable costs, are used for purposes other

12 than assisting the grant recipient to develop high standards

13 of scholarly excellence or encourage greater appreciation of

14 the humanities by the citizens of the United States.

15 ‘‘(c) LABOR STANDARDS.—The provisions of section

16 206(d) shall apply to activities financed under this title in

17 the same manner and to the same extent as the provisions

18 apply to activities financed under title II.

19 ‘‘SEC. 307. ADMINISTRATIVE PROVISIONS.

20 ‘‘(a) AUTHORITIES OF CHAIRPERSON.—In addition to

21 any authorities vested in the Chairperson by other provi22 sions of this Act, the Chairperson, in carrying out the func23 tions of the Chairperson, shall have authority—

24 ‘‘(1) to prescribe such regulations and procedures

25 as the Chairperson determines to be necessary govern-
280

•S 856 RS

1 ing the manner in which the functions of the Chair2 person shall be carried out;

3 ‘‘(2)(A) to solicit, accept, receive, invest, and use

4 money and other property donated, bequeathed, or de5 vised to the Endowment, either absolutely or in trust,

6 with or without a condition or restriction, including

7 a condition that the Chairperson use other funds of

8 the Endowment for the purposes of the donation, be9 quest, or devise; and

10 ‘‘(B) to sell or otherwise dispose of such property,

11 for purposes of carrying out the activities of the En12 dowment under this title;

13 ‘‘(3) to appoint and determine the compensation

14 of such employees, subject to title 5, United States

15 Code, as may be necessary to carry out the functions

16 of the Chairperson, define their duties, and supervise

17 and direct their activities;

18 ‘‘(4) to procure the temporary and intermittent

19 services of experts and consultants, including panels

20 of experts, and compensate the experts and consult21 ants in accordance with section 3109 of title 5, Unit22 ed States Code;

23 ‘‘(5) to accept and utilize the voluntary services

24 of individuals and reimburse the individuals for trav25 el expenses, including per diem in lieu of subsistence,
281

•S 856 RS

1 in the same amounts and to the same extent as au2 thorized under section 5703 of title 5, United States

3 Code, for persons employed intermittently in Federal

4 Government service;

5 ‘‘(6) to make advance, progress, and other pay6 ments without regard to section 3324 of title 31,

7 United States Code;

8 ‘‘(7) to rent office space in the District of Colum9 bia; and

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

11 ‘‘(b) PUBLICATIONS.—Official publications of the En12 dowment under this title may be supported without regard

13 to the provisions of section 501 of title 44, United States

14 Code, if the Chairperson consults with the Joint Committee

15 on Printing of the Congress.

16 ‘‘(c) COORDINATION.—The Chairperson shall coordi17 nate the programs of the Endowment, insofar as prac18 ticable, with other Federal programs, programs of des19 ignated State humanities agencies, and programs under20 taken by other public agencies or private groups, and shall

21 develop the programs of the Endowment with due regard

22 to the contribution to the objectives of this title that can

23 be made by other Federal agencies under the existing pro24 grams. The Chairperson may enter into interagency agree25 ments to promote or assist with the humanities-related ac-
282

•S 856 RS

1 tivities of other Federal agencies, on a reimbursable or

2 nonreimbursable basis, and may use funds authorized to be

3 appropriated to carry out this title to pay for the costs of

4 such promotion or assistance.

5 ‘‘SEC. 308. REPORTS.

6 ‘‘(a) ANNUAL REPORT OF CHAIRPERSON.—The Chair7 person shall submit an annual report to the President for

8 submission to the appropriate committees of Congress on

9 or before the 15th day of April of each year. The report

10 shall summarize the activities of the Endowment for the

11 preceding year, and may include such evaluations and

12 other reports as the Chairperson determines to be appro13 priate.

14 ‘‘(b) FINANCIAL REPORTS AND COMPLIANCE.—

15 ‘‘(1) IN GENERAL.—It shall be a condition of the

16 receipt of a grant made under this title by the Chair17 person that each such grant recipient agree to and

18 comply with requirements to submit to the Chair19 person—

20 ‘‘(A) financial reports containing such in21 formation as the Chairperson determines to be

22 necessary to ensure that the funding provided

23 through the grant is expended in accordance

24 with the terms and conditions under which the

25 grant is made;
283

•S 856 RS

1 ‘‘(B) a report describing the activity carried

2 out with the funding provided through the grant

3 and the compliance by the grant recipient with

4 the conditions of receipt of such grant, including

5 the condition that the work assisted meet the

6 standards of excellence in humanities and sig7 nificance in the humanities; and

8 ‘‘(C) if practicable, as determined by the

9 Chairperson, a copy of the work resulting from

10 the activity.

11 ‘‘(2) REPORTS.—The reports and copy described

12 in paragraph (1) shall be due not later than 90 days

13 after the end of the period for which such grant recip14 ient receives funding through the grant or 90 days

15 after the completion of the work, whichever occurs ear16 lier. The Chairperson may extend the 90-day period

17 if the recipient shows good cause why such an exten18 sion should be granted.

19 ‘‘(c) EVALUATION.—The Chairperson shall conduct a

20 post-award evaluation of activities for which grants are

21 made by the Chairperson under this title. Such evaluation

22 may include an audit to determine the accuracy of the re23 ports required to be submitted by grant recipients under

24 subsection (b).
284

•S 856 RS

1 ‘‘(d) ANNUAL REPORT OF NATIONAL COUNCIL ON THE

2 HUMANITIES.—

3 ‘‘(1) IN GENERAL.—The National Council on the

4 Humanities may submit an annual report to the

5 President for submission to the appropriate commit6 tees of Congress on or before the 15th day of April of

7 each year.

8 ‘‘(2) CONTENTS.—The report shall include writ9 ten records summarizing—

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

11 Council; and

12 ‘‘(B) recommendations made by the Council

13 to the Chairperson.

14 ‘‘(3) PRIVACY.—The Council shall ensure that

15 the information contained in the report will be pre16 sented in a manner that protects the privacy of indi17 vidual applicants for grants authorized under this

18 title and Council members.

19 ‘‘SEC. 309. SANCTIONS AND PAYMENTS.

20 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recipi21 ent of a grant made under this title, or an indirect recipient

22 of funding provided through the grant, substantially fails

23 to satisfy the purposes for which such grant is made, as

24 determined by the Chairperson, the Chairperson may—
285

•S 856 RS

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

2 any subsequent funding to the direct or indirect re3 cipient under this title, take into consideration the re4 sults of the post-award evaluation conducted under

5 section 308(c);

6 ‘‘(2) prohibit the direct and indirect recipients

7 from using the name of, or in any way associating

8 the project, production, or workshop for which the

9 grant was received with, the Endowment; and

10 ‘‘(3) if such project, production, or workshop is

11 published, require that the publication contain the fol12 lowing statement: ‘The opinions, findings, conclu13 sions, and recommendations expressed in this publica14 tion do not reflect the views of the National Endow15 ment for the Humanities.’.

16 ‘‘(b) NONCOMPLIANCE.—

17 ‘‘(1) IN GENERAL.—The Chairperson shall take

18 the actions described in paragraph (2) whenever the

19 Chairperson, after providing reasonable notice and an

20 opportunity for hearing, finds that—

21 ‘‘(A) a direct recipient of a grant under this

22 title, or an indirect recipient of funding provided

23 through the grant, is not complying substantially

24 with the provisions of this title;
286

•S 856 RS

1 ‘‘(B) a State agency that received a grant

2 under this title, or an indirect recipient of fund3 ing provided through the grant, is not complying

4 substantially with terms and conditions of the

5 State plan accompanying the application ap6 proved for the grant under this title; or

7 ‘‘(C) any funding provided under this title

8 to a recipient or State agency described in sub9 paragraph (A) or (B) has been diverted from the

10 purposes for which such funding was provided.

11 ‘‘(2) ACTIONS.—On making the finding described

12 in paragraph (1), the Chairperson shall immediately

13 notify the direct recipient or State agency that re14 ceived the funding at issue that—

15 ‘‘(A) no further funding will be provided

16 under this title to such recipient or agency until

17 there is no longer any default or failure to com18 ply or the diversion is corrected; or

19 ‘‘(B) if compliance or correction is impos20 sible, until such recipient or agency repays or

21 arranges the repayment of the Federal funds that

22 were improperly diverted or expended.

23 ‘‘(c) RECAPTURE.—

24 ‘‘(1) IN GENERAL.—A recipient of funding under

25 this title shall pay the amount described in para-
287

•S 856 RS

1 graph (2) to the Endowment if the Chairperson finds

2 that the recipient has derived net program income in

3 excess of the match required under the terms of the

4 agreement from the commercially successful activities

5 funded that exceeds the lesser of—

6 ‘‘(A) $50,000; or

7 ‘‘(B) twice the amount of the funding.

8 ‘‘(2) AMOUNT.—At the discretion of the Chair9 person, the amount referred to in paragraph (1) is

not less 1⁄3 and not more than 1 10 ⁄2 of the amount of

11 the net program income generated within 5 years

12 after the end of the grant period, but not more than

13 the amount of the funding, unless the Chairperson has

14 reached an agreement with the grantee upon the

15 award of a grant that the amount referred to in para16 graph (1) shall exceed the amount of the grant.

17 ‘‘(d) ACCOUNT.—Except as otherwise provided in this

18 Act, the Treasurer of the United States shall deposit funds

19 paid under subsection (c), or repaid under this Act, in a

20 special interest bearing account to the credit of the Endow21 ment.

22 ‘‘SEC. 310. AWARDS.

23 ‘‘The Chairperson, with the advice of the National

24 Council on the Humanities, may make the following annual

25 awards:
288

•S 856 RS

1 ‘‘(1) JEFFERSON LECTURE IN THE HUMANITIES

2 AWARD.—The Chairperson may award annually the

3 Jefferson Lecture in the Humanities Award to 1 indi4 vidual for distinguished intellectual achievement in

5 the humanities. Each such award shall not exceed

6 $10,000.

7 ‘‘(2) CHARLES FRANKEL PRIZE.—The Chair8 person may award annually the Charles Frankel

9 Prize to honor individuals who have made outstand10 ing contributions to the public understanding of the

11 humanities. Not more than 5 individuals may receive

12 such prize each year. Each such prize shall not exceed

13 $5,000.’’.

14 SEC. 102. CONFORMING AMENDMENTS.

15 Section 8G of the Inspector General Act of 1978 (5

16 U.S.C. App.) is amended—

17 (1) in subsection (a)—

18 (A) in paragraph (2), by striking ‘‘the Na19 tional Endowment for the Arts, the National En20 dowment for the Humanities,’’ and inserting

21 ‘‘the portion of the National Foundation on the

22 Arts and the Humanities consisting of the Na23 tional Endowment for the Arts and the National

24 Endowment for the Humanities,’’; and
289

•S 856 RS

1 (B) in paragraph (4), by striking ‘‘except

2 that’’ and all that follows and inserting the fol3 lowing: ‘‘except that—

4 ‘‘(A) with respect to the National Science

5 Foundation, such term means the National

6 Science Board; and

7 ‘‘(B) with respect to the National Endow8 ment for the Arts and the National Endowment

9 for the Humanities, the term means the Chair10 person of the National Endowment for the Arts

11 with respect to matters relating to the National

12 Endowment for the Arts and the Chairperson of

13 the National Endowment for the Humanities

14 with respect to matters relating to the Chair15 person of the National Endowment for the Hu16 manities;’’;

17 (2) in subsection (c), by inserting before the pe18 riod the following: ‘‘, except that the Inspector Gen19 eral for the National Endowment for the Arts and the

20 National Endowment for the Humanities shall be

21 jointly appointed by the Chairperson of the National

22 Endowment for the Arts and the Chairperson of the

23 National Endowment for the Humanities’’; and

24 (3) in the first sentence of subsection (d), by in25 serting before the period the following: ‘‘, except as
290

•S 856 RS

1 provided in section 103 of the National Foundation

2 on the Arts and the Humanities Act of 1965’’.

3 TITLE II—MUSEUM AND LIBRARY

4 SERVICES ACT

5 SEC. 201. MUSEUM AND LIBRARY SERVICES.

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

7 amended to read as follows:

8 ‘‘TITLE II—MUSEUM AND

9 LIBRARY SERVICES

10 ‘‘Subtitle A—General Provisions

11 ‘‘SEC. 201. SHORT TITLE.

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

13 Services Act’.

14 ‘‘SEC. 202. GENERAL DEFINITIONS.

15 ‘‘As used in this title:

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

17 means the National Commission on Libraries and In18 formation Science established under section 3 of the

19 National Commission on Libraries and Information

20 Science Act (20 U.S.C. 1502).

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

22 Director of the Institute appointed under section 204.

23 ‘‘(3) FOUNDATION.—The term ‘Foundation’

24 means the National Foundation on the Arts and the

25 Humanities.
291

•S 856 RS

1 ‘‘(4) INSTITUTE.—The term ‘Institute’ means the

2 Institute of Museum and Library Services established

3 under section 203.

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

5 Board’ means the National Museum Services Board

6 established under section 276.

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

8 ‘‘(a) ESTABLISHMENT.—There is established within

9 the Foundation an Institute of Museum and Library Serv10 ices.

11 ‘‘(b) OFFICES.—The Institute shall consist of an Office

12 of Museum Services and an Office of Library Services.

13 There shall be a National Museum Services Board in the

14 Office of Museum Services.

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

16 ‘‘(a) APPOINTMENT.—

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

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

19 with the advice and consent of the Senate.

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

21 of 4 years.

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

23 individual appointed to the position of Director after

24 the date of enactment of the Arts, Humanities, and

25 Museum Amendments of 1995, every second individ-
292

•S 856 RS

1 ual so appointed shall be appointed from among indi2 viduals who have special competence with regard to

3 library and information services. Beginning with the

4 second individual appointed to the position of Direc5 tor after the date of enactment of the Arts, Human6 ities, and Museum Amendments of 1995, every second

7 individual so appointed shall be appointed from

8 among individuals who have special competence with

9 regard to museum services.

10 ‘‘(b) COMPENSATION.—The Director shall be com11 pensated at the rate provided for level III of the Executive

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

13 ‘‘(c) DUTIES AND POWERS.—The Director shall per14 form such duties and exercise such powers as may be pre15 scribed by law, including—

16 ‘‘(1) awarding financial assistance for activities

17 described in this title; and

18 ‘‘(2) using not less than 5 percent and not more

19 than 7 percent of the funds made available under this

20 title for each fiscal year to award financial assistance

21 for projects that involve both—

22 ‘‘(A) activities relating to library and infor23 mation services, as described in subtitle B, car24 ried out in accordance with such subtitle; and
293

•S 856 RS

1 ‘‘(B) activities relating to museum services,

2 as described in subtitle C, carried out in accord3 ance with such subtitle.

4 ‘‘(d) NONDELEGATION.—The Director shall not dele5 gate any of the functions of the Director to any person who

6 is not directly responsible to the Director.

7 ‘‘(e) COORDINATION.—The Director shall ensure co8 ordination of the policies and activities of the Institute with

9 the policies and activities of other agencies and offices of

10 the Federal Government having interest in and responsibil11 ities for the improvement of museums and libraries and in12 formation services. Such agencies and offices shall include

13 the National Endowment for the Arts, the National Endow14 ment for the Humanities, the National Science Foundation,

15 appropriate units in the Department of Education, the Li16 brary of Congress, the Smithsonian Institution, and related

17 agencies and offices.

18 ‘‘SEC. 205. DEPUTY DIRECTORS.

19 ‘‘(a) APPOINTMENT.—The Office of Library Services

20 shall be headed by a Deputy Director, who shall be ap21 pointed by the Director from among individuals who have

22 a graduate degree in library science and expertise in li23 brary and information services. The Office of Museum Serv24 ices shall be headed by a Deputy Director, who shall be ap-
294

•S 856 RS

1 pointed by the Director from among individuals who have

2 expertise in museum services.

3 ‘‘(b) COMPENSATION.—Each such position of Deputy

4 Director shall be a Senior Executive Service position, which

5 shall be paid at a rate of pay for a position at ES–1 of

6 the Senior Executive Service schedule.

7 ‘‘SEC. 206. PERSONNEL.

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

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

10 appoint and determine the compensation of such employees

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

12 duties of the Institute.

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

14 and utilize the voluntary services of individuals and reim15 burse the individuals for travel expenses, including per

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

17 the same extent as authorized under section 5703 of title

18 5, United States Code, for persons employed intermittently

19 in Federal Government service.

20 ‘‘SEC. 207. CONTRIBUTIONS.

21 ‘‘The Institute shall have authority to solicit, accept,

22 receive, and invest in the name of the United States, gifts,

23 bequests, or devises of money and other property or services

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

25 functions of the Institute. Any proceeds from such gifts, be-
295

•S 856 RS

1 quests, or devises, after acceptance by the Institute, shall

2 be paid by the donor or the representative of the donor to

3 the Director. The Director shall enter the proceeds in a spe4 cial interest bearing account to the credit of the Institute

5 for the purposes in each case specified.

6 ‘‘Subtitle B—Library Services and

7 Technology

8 ‘‘SEC. 211. SHORT TITLE.

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

10 and Technology Act’.

11 ‘‘SEC. 212. STATEMENT OF PURPOSE; RECOGNITION OF

12 NEED.

13 ‘‘(a) STATEMENT OF PURPOSE.—The purposes of this

14 subtitle are as follows:

15 ‘‘(1) To stimulate excellence and promote equity

16 and lifelong access to learning and information re17 sources in all types of libraries.

18 ‘‘(2) To combine the ability of the Federal Gov19 ernment to stimulate significant improvement and

20 innovation in library services with support at State

21 and local levels, and with cooperative programs with

22 other agencies and with public and private sector

23 partnerships, to achieve national library service goals.
296

•S 856 RS

1 ‘‘(3) To establish national library service goals

2 for the 21st century. Such goals are that every person

3 in America will be served by a library that—

4 ‘‘(A) provides all users access to informa5 tion through regional, State, national, and inter6 national electronic networks;

7 ‘‘(B) contributes to a productive workforce,

8 and to economic development, by providing re9 sources and services designed to meet local com10 munity needs;

11 ‘‘(C) provides a full range of resources and

12 programs to develop reading and critical think13 ing skills for children and adults;

14 ‘‘(D) provides targeted services to people of

15 diverse geographic, cultural, and socioeconomic

16 backgrounds, to individuals with disabilities,

17 and to people with limited functional literacy or

18 information skills; and

19 ‘‘(E) provides adequate hours of operation,

20 facilities, staff, collections, and electronic access

21 to information.

22 ‘‘(b) RECOGNITION OF NEED.—The Congress recog23 nizes that strong library services are essential to empower

24 people to succeed in our Nation’s increasingly global and

25 technological environment.
297

•S 856 RS

1 ‘‘SEC. 213. DEFINITIONS.

2 ‘‘As used in this subtitle:

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

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

5 group or community, including any Alaska native

6 village, regional corporation, or village corporation,

7 as defined in or established pursuant to the Alaska

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

9 seq.), which is recognized by the Secretary of the Inte10 rior as eligible for the special programs and services

11 provided by the United States to Indians because of

12 their status as Indians.

13 ‘‘(2) LIBRARY CONSORTIA.—The term ‘library

14 consortia’ means any local, statewide, regional, inter15 state, or international cooperative association of li16 brary entities which provides for the systematic and

17 effective coordination of the resources of school, public,

18 academic, and special libraries and information cen19 ters for improved services for their clientele.

20 ‘‘(3) LIBRARY ENTITY.—The term ‘library entity’

21 means a library that performs all activities of a li22 brary relating to the collection and organization of li23 brary materials and other information and that

24 makes the materials and information publicly avail25 able. Such term includes State library administrative

26 agencies and the libraries, library related entities, co-
298

•S 856 RS

1 operatives, and consortia through which library serv2 ices are made publicly available.

3 ‘‘(4) PUBLIC LIBRARY.—The term ‘public li4 brary’ means a library that serves free of charge all

5 residents of a community, district, or region, and re6 ceives its financial support in whole or in part from

7 public funds. Such term also includes a research li8 brary, which, for the purposes of this sentence, means

9 a library, which—

10 ‘‘(A) makes its services available to the pub11 lic free of charge;

12 ‘‘(B) has extensive collections of books,

13 manuscripts, and other materials suitable for

14 scholarly research which are not available to the

15 public through public libraries;

16 ‘‘(C) engages in the dissemination of hu17 manistic knowledge through services to readers,

18 fellowships, educational and cultural programs,

19 publications of significant research, and other

20 activities; and

21 ‘‘(D) is not an integral part of an institu22 tion of higher education.

23 ‘‘(5) STATE.—The term ‘State’, unless otherwise

24 specified, includes the several States of the United

25 States, the District of Columbia, the Commonwealth
299

•S 856 RS

1 of Puerto Rico, Guam, American Samoa, the United

2 States Virgin Islands, the Commonwealth of the

3 Northern Mariana Islands, the Republic of the Mar4 shall Islands, the Federated States of Micronesia, and

5 the Republic of Palau.

6 ‘‘(6) STATE ADVISORY COUNCIL.—The term

7 ‘State advisory council’ means an advisory council

8 established pursuant to section 252.

9 ‘‘(7) STATE LIBRARY ADMINISTRATIVE AGEN10 CY.—The term ‘State library administrative agency’

11 means the official agency of a State charged by law

12 of that State with the extension and development of

13 public library services throughout the State, which

14 has adequate authority under law of the State to ad15 minister the State plan in accordance with the provi16 sions of this subtitle.

17 ‘‘(8) STATE PLAN.—The term ‘State plan’ means

18 the document which gives assurances that the offi19 cially designated State library administrative agency

20 has the fiscal and legal authority and capability to

21 administer all aspects of this subtitle, provides assur22 ances for establishing the State’s policies, priorities,

23 criteria, and procedures necessary to the implementa24 tion of all programs under this subtitle, submits cop25 ies for approval as required by regulations promul-
300

•S 856 RS

1 gated by the Director, and identifies a State’s library

2 needs and sets forth the activities to be taken toward

3 meeting the identified needs supported with the assist4 ance of Federal funds made available under this sub5 title.

6 ‘‘SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘(a) AUTHORITY.—

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

9 appropriated to the Secretary of Education—

10 ‘‘(A) for the purpose of awarding grants

11 under subchapter A of chapter 2 and for related

12 administrative expenses, $75,000,000 for fiscal

13 year 1996, and such sums as may be necessary

14 for each of the 4 succeeding fiscal years; and

15 ‘‘(B) for the purpose of awarding grants

16 under subchapter B of chapter 2 and for related

17 administrative expenses, $75,000,000 for fiscal

18 year 1996, and such sums as may be necessary

19 for each of the 4 succeeding fiscal years.

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

21 shall transfer any funds appropriated under the au22 thority of paragraph (1) to the Director to enable the

23 Director to carry out this subtitle.

24 ‘‘(b) JOINT PROJECTS.—Not less than 5 percent and

25 not more than 7 percent of the funds appropriated under
301

•S 856 RS

1 this section for a fiscal year may be made available for

2 projects described in section 204(c)(2) for the fiscal year.

3 ‘‘(c) ADMINISTRATION.—Not more than 10 percent of

4 the funds appropriated under this section for a fiscal year

5 may be used to pay for the Federal administrative costs

6 of carrying out this subtitle.

7 ‘‘CHAPTER 1—BASIC PROGRAM

8 REQUIREMENTS

9 ‘‘SEC. 221. RESERVATIONS AND ALLOTMENTS.

10 ‘‘(a) RESERVATIONS.—From the amount appropriated

11 under the authority of section 214(a) for any fiscal year,

12 the Director—

‘‘(1) shall reserve 11 13 ⁄2 percent to award grants in

14 accordance with section 261; and

15 ‘‘(2) shall reserve 8 percent to carry out a na16 tional leadership program in library science in ac17 cordance with section 262.

18 ‘‘(b) ALLOTMENTS.—

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

20 under the authority of section 214(a) and not reserved

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

22 shall allot the minimum allotment, as determined

23 under paragraph (3), to each State. Any sums re24 maining after minimum allotments have been made
302

•S 856 RS

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

5 214(a) that are not reserved under subsection (a) and

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

7 the Director shall allot to each State an amount that

8 bears the same relation to such remainder as the pop9 ulation of the State bears to the population of all the

10 States.

11 ‘‘(3) MINIMUM ALLOTMENT.—

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

13 subsection, the minimum allotment shall be—

14 ‘‘(i) with respect to appropriations for

15 the purposes of subchapter A of chapter 2,

16 $200,000 for each State, except that the

17 minimum allotment shall be $40,000 in the

18 case of Guam, American Samoa, the United

19 States Virgin Islands, the Commonwealth of

20 the Northern Mariana Islands, the Republic

21 of the Marshall Islands, the Federated

22 States of Micronesia, and the Republic of

23 Palau; and

24 ‘‘(ii) with respect to appropriations for

25 the purposes of subchapter B of chapter 2,
303

•S 856 RS

1 $200,000 for each State, except that the

2 minimum allotment shall be $40,000 in the

3 case of Guam, American Samoa, the United

4 States Virgin Islands, the Commonwealth of

5 the Northern Mariana Islands, the Republic

6 of the Marshall Islands, the Federated

7 States of Micronesia, and the Republic of

8 Palau.

9 ‘‘(B) RATABLE REDUCTIONS.—If the sums

10 appropriated under the authority of section

11 214(a) and not reserved under subsection (a) for

12 any fiscal year are insufficient to fully satisfy

13 the aggregate of the minimum allotments for all

14 States for that purpose for such year, each of

15 such minimum allotments shall be reduced rat16 ably.

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

18 all the States shall be determined by the Director on

19 the basis of the most recent data available from the

20 Bureau of the Census.

21 ‘‘SEC. 222. ADMINISTRATION AND EVALUATION.

22 ‘‘(a) IN GENERAL.—Not more than 5 percent of the

23 total funds received under this subtitle for any fiscal year

24 by a State may be used for administration.
304

•S 856 RS

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

2 construed to limit spending for evaluation costs under sec3 tion 251 from sources other than this subtitle.

4 ‘‘SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE

5 OF EFFORT REQUIREMENTS.

6 ‘‘(a) PAYMENTS.—The Director shall pay to each State

7 library administrative agency having a State plan ap8 proved under section 224 the Federal share of the cost of

9 the activities described in the State plan.

10 ‘‘(b) FEDERAL SHARE.—

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (3), the Federal share shall be 50 percent.

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

14 share of payments shall be provided from non-Fed15 eral, State, or local sources.

16 ‘‘(3) SPECIAL RULE.—The Federal share—

17 ‘‘(A) for the Commonwealth of Puerto Rico,

18 Guam, American Samoa, the United States Vir19 gin Islands, and the Commonwealth of the

20 Northern Mariana Islands, shall be 66 percent;

21 and

22 ‘‘(B) for the Republic of the Marshall Is23 lands, the Federated States of Micronesia, and

24 the Republic of Palau, shall be 100 percent.

25 ‘‘(c) MAINTENANCE OF EFFORT.—
305

•S 856 RS

1 ‘‘(1) IN GENERAL.—The amount otherwise pay2 able to a State for a fiscal year under chapter 2 shall

3 be reduced if the level of State expenditures, as de4 scribed in paragraph (2), for the previous fiscal year

5 are less than the average of the total of such expendi6 tures for the 3 fiscal years preceding that previous fis7 cal year. The amount of the reduction in allotment

8 for any fiscal year shall be in exact proportion to the

9 amount which the State fails to meet the requirement

10 of this subsection.

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

12 level of State expenditures for the purposes of para13 graph (1) shall include all State dollars expended by

14 the State library administrative agency for library

15 programs that are consistent with the purposes of this

16 subtitle. All funds included in the maintenance of ef17 fort calculation under this subsection shall be ex18 pended during the fiscal year for which the deter19 mination is made, and shall not include capital ex20 penditures, special one-time project costs, or similar

21 windfalls.

22 ‘‘(3) WAIVER.—The Director may waive the re23 quirements of paragraph (1) if the Director deter24 mines that such a waiver would be equitable due to

25 exceptional or uncontrollable circumstances such as a
306

•S 856 RS

1 natural disaster or a precipitous and unforeseen de2 cline in the financial resources of the State.

3 ‘‘SEC. 224. STATE PLANS.

4 ‘‘(a) STATE PLAN REQUIRED.—

5 ‘‘(1) IN GENERAL.—In order to be eligible to re6 ceive a grant under this subtitle, a State library ad7 ministrative agency shall submit a State plan to the

8 Director not later than April 1, 1996.

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

10 period of 5 fiscal years.

11 ‘‘(3) REVISIONS.—If a State library administra12 tive agency makes a substantive revision to its State

13 plan, then the State library administrative agency

14 shall submit to the Director an amendment to the

15 State plan containing such revision not later than

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

17 which the amendment will be effective.

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

19 ‘‘(1) specify priorities for improvement of library

20 services so that all people in the State have convenient

21 and appropriate access to information delivered by li22 braries through new and emerging technologies as23 sisted under subchapter A of chapter 2;

24 ‘‘(2) identify those persons who need special serv25 ices under subchapter B of chapter 2 and specify pri-
307

•S 856 RS

1 orities for meeting the purpose described in section

2 241(a);

3 ‘‘(3) describe how section 243 will be imple4 mented within the State, specify the accountability

5 and evaluation procedures to be followed by public li6 braries receiving funds under such section, and speci7 fy whether and how funds are to be aggregated under

8 section 243(b)(2) to improve library services provided

9 to children in the State described in section 243(a)(2);

10 ‘‘(4) describe the activities and services for which

11 assistance is sought, including—

12 ‘‘(A) priorities for the use of funds under

13 this subtitle; and

14 ‘‘(B) a description of the types of libraries

15 and library entities that will be eligible to re16 ceive funds under this subtitle;

17 ‘‘(5) provide that any funds paid to the State in

18 accordance with the State plan shall be expended sole19 ly for the purposes for which the funds are authorized

20 and appropriated and that such fiscal control and

21 fund accounting procedures have been adopted as may

22 be necessary to assure proper disbursement of, and ac23 count for, Federal funds paid to the State (including

24 any such funds paid by the State to any other entity)

25 under this subtitle;
308

•S 856 RS

1 ‘‘(6) provide procedures to ensure that the State

2 library administrative agency shall involve libraries

3 and users throughout the State in policy decisions re4 garding implementation of this subtitle, and develop5 ment of the State plan, including establishing the

6 State advisory council;

7 ‘‘(7) provide satisfactory assurance that the

8 State library administrative agency—

9 ‘‘(A) will make such reports, in such form

10 and containing such information, as the Director

11 may require to carry out this subtitle and to de12 termine the extent to which funds provided under

13 this subtitle have been effective in carrying out

14 the purposes of this subtitle, including reports on

15 evaluations under section 251;

16 ‘‘(B) will keep such records and afford such

17 access thereto as the Director may find necessary

18 to assure the correctness and verification of such

19 reports;

20 ‘‘(C) will provide to State advisory council

21 members an orientation regarding the provisions

22 of this subtitle and members’ responsibilities, in23 cluding clear, easily understandable information

24 about the State plan; and
309

•S 856 RS

1 ‘‘(D) will report annually at a meeting of

2 the State advisory council on the State library

3 administrative agency’s progress toward meeting

4 the goals and objectives of the State plan;

5 ‘‘(8) describe the process for assessing the needs

6 for library and information services within the State,

7 and describe the results of the most recent needs as8 sessment;

9 ‘‘(9) establish goals and objectives for achieving

10 within the State the purposes of this subtitle, includ11 ing the purposes in sections 212(a), 231(a), and

12 241(a); and

13 ‘‘(10) describe how the State library administra14 tive agency, in consultation with the State advisory

15 council, will—

16 ‘‘(A) administer this subtitle; and

17 ‘‘(B) conduct evaluations under section 251,

18 including a description of the types of evaluation

19 methodologies to be employed.

20 ‘‘(c) ACCOUNTABILITY.—Each State plan shall—

21 ‘‘(1) establish State-defined performance goals to

22 set forth the level of performance to be achieved by an

23 activity assisted under this subtitle;

24 ‘‘(2) express such goals in an objective, quantifi25 able, and measurable form unless authorized to be in
310

•S 856 RS

1 an alternative form in accordance with section

2 1115(b) of title 31, United States Code;

3 ‘‘(3) briefly describe the operational processes,

4 skills and technology, and the human, capital, infor5 mation, or other resources, required to meet the per6 formance goals;

7 ‘‘(4) establish performance indicators in accord8 ance with subsection (d) to be used in measuring or

9 assessing the relevant outputs, service levels, and out10 comes, of each activity assisted under this subtitle;

11 ‘‘(5) provide a basis for comparing actual pro12 gram results with the established performance goals;

13 and

14 ‘‘(6) describe the means to be used to verify and

15 validate measured values.

16 ‘‘(d) PERFORMANCE INDICATORS.—Performance indi17 cators described in subsection (c)(4) shall include—

18 ‘‘(1) evidence of progress toward the national li19 brary service goals under section 212(a)(3);

20 ‘‘(2) consultation with the State educational

21 agency;

22 ‘‘(3) identification of activities suitable for na23 tionwide replication; and

24 ‘‘(4) progress in improvement of library services

25 provided to children described in section 243(a)(2).
311

•S 856 RS

1 ‘‘(e) APPROVAL.—

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

3 any State plan under this subtitle that meets the re4 quirements of this subtitle and provides satisfactory

5 assurances that the provisions of such plan will be

6 carried out.

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

8 administrative agency receiving a grant under this

9 subtitle shall make the State plan available to the

10 public.

11 ‘‘(3) ADMINISTRATION.—If the Director deter12 mines that the State plan does not meet the require13 ments of this section, the Director shall—

14 ‘‘(A) immediately notify the State library

15 administrative agency of such determination and

16 the reasons for such determination;

17 ‘‘(B) offer the State library administrative

18 agency the opportunity to revise its State plan;

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

20 assist the State library administrative agency to

21 meet the requirements of this section; and

22 ‘‘(D) provide the State library administra23 tive agency the opportunity for a hearing.
312

•S 856 RS

1 ‘‘CHAPTER 2—LIBRARY PROGRAMS

2 ‘‘Subchapter A—Information Access Through

3 Technology

4 ‘‘SEC. 231. GRANTS TO STATES FOR INFORMATION ACCESS

5 THROUGH TECHNOLOGY.

6 ‘‘(a) PURPOSE.—The purpose of this subchapter is to

7 provide for the improvement of library services so that all

8 people have access to information delivered by libraries

9 through new and emerging technologies, whether the infor10 mation originates locally, from the State, nationally, or

11 globally.

12 ‘‘(b) GRANTS.—

13 ‘‘(1) IN GENERAL.—The Director shall award

14 grants under this subchapter from allotments under

15 section 221(b) to States that have State plans ap16 proved under section 224.

17 ‘‘(2) FEDERAL SHARE.—Grants awarded under

18 paragraph (1) shall be used to pay the Federal share

19 of the cost of activities under section 232 that are de20 scribed in a State plan approved under section 224.

21 ‘‘SEC. 232. AUTHORIZED ACTIVITIES.

22 ‘‘Each State that receives a grant under section 231(b)

23 may use the grant funds to provide statewide services and

24 subgrants to public libraries, other types of libraries and

25 library consortia, or library linkages with other entities, in
313

•S 856 RS

1 accordance with the State plan. Such services and subgrants

2 shall involve—

3 ‘‘(1) organization, access, and delivery of infor4 mation;

5 ‘‘(2) lifelong learning, and workforce and eco6 nomic development; or

7 ‘‘(3) support of technology infrastructure.

8 ‘‘Subchapter B—Information Empowerment

9 Through Special Services

10 ‘‘SEC. 241. GRANTS TO STATES FOR INFORMATION

11 EMPOWERMENT THROUGH SPECIAL SERV12 ICES.

13 ‘‘(a) PURPOSE.—The purpose of this subchapter is to

14 provide for the improvement of library and information

15 services targeted to persons of all ages and cultures who

16 have difficulty using a library and to communities which

17 are geographically disadvantaged in access to libraries, who

18 or which need special materials or services, or who or which

19 will benefit from outreach services for equity of access to

20 library services and information technologies, including

21 children (from birth through age 17) from families living

22 below the income official poverty line (as defined by the Of23 fice of Management and Budget, and revised annually in

24 accordance with section 673(2) of the Community Services
314

•S 856 RS

1 Block Grant Act (42 U.S.C. 9902(2)) applicable to a family

2 of the size involved).

3 ‘‘(b) GRANTS.—

4 ‘‘(1) IN GENERAL.—The Director shall award

5 grants under this subchapter from allotments under

6 section 221(b) to States that have State plans ap7 proved under section 224.

8 ‘‘(2) FEDERAL SHARE.—Grants awarded under

9 paragraph (1) shall be used to pay the Federal share

10 of the cost of the activities under section 242 that are

11 described in a State plan approved under section 224.

12 ‘‘SEC. 242. AUTHORIZED ACTIVITIES.

13 ‘‘Each State that receives a grant under section 241(b)

14 may use the grant funds to provide statewide services and

15 subgrants to public libraries, other types of libraries and

16 library consortia, or library linkages with other entities, in

17 accordance with the State plan. Such services and subgrants

18 shall involve activities that—

19 ‘‘(1) increase literacy and lifelong learning;

20 ‘‘(2) serve persons in rural, underserved, or

21 inner-city areas; or

22 ‘‘(3) support the provision of special services.

23 ‘‘SEC. 243. SERVICES FOR CHILDREN IN POVERTY.

24 ‘‘(a) STATE LEVEL RESERVATION.—
315

•S 856 RS

1 ‘‘(1) IN GENERAL.—Except as provided in sub2 section (c), from the total amount that each State li3 brary administrative agency receives under this sub4 chapter for a fiscal year, such agency shall reserve the

5 amount of funds determined under paragraph (2) to

6 provide assistance to public libraries in the State to

7 enable such libraries to enhance the provision of spe8 cial services to children described in such paragraph

9 who are served by such libraries.

10 ‘‘(2) AMOUNT.—

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

12 subparagraph (B), the amount of funds a State

13 library administrative agency shall reserve

14 under paragraph (1) shall be equal to the sum

15 of—

16 ‘‘(i) $1.50 for every preschooler (birth

17 through age 5) in the State from a family

18 living below the income official poverty line

19 (as defined by the Office of Management

20 and Budget, and revised annually in ac21 cordance with section 673(2) of the Commu22 nity Services Block Grant Act (42 U.S.C.

23 9902(2)) applicable to a family of the size

24 involved); and
316

•S 856 RS

1 ‘‘(ii) $1.00 for every school-age child

2 (ages 6 through 17) in the State from such

3 a family.

4 ‘‘(B) MAXIMUM.—The maximum amount

5 that a State library administrative agency may

6 reserve under paragraph (1) for any fiscal year

7 shall not exceed 15 percent of the total amount

8 such agency receives under this subchapter for

9 such year.

10 ‘‘(b) WITHIN STATE DISTRIBUTION.—

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), each public library in a State shall receive

13 under this section for a fiscal year an amount that

14 bears the same relation to the amount the State li15 brary administrative agency reserves under subsection

16 (a) for such year as the number of children described

17 in subsection (a)(2) served by such public library for

18 the preceding fiscal year bears to the number of such

19 children served by all public libraries in the State for

20 such preceding fiscal year.

21 ‘‘(2) EXCEPTION.—

22 ‘‘(A) IN GENERAL.—If a State library ad23 ministrative agency determines that the amount

24 available under paragraph (1) for a fiscal year

25 for 2 or more public libraries is too small to be
317

•S 856 RS

1 effective, then such agency may aggregate such

2 amounts for such year.

3 ‘‘(B) REQUIREMENTS.—Each State library

4 administrative agency aggregating amounts

5 under subparagraph (A) for a fiscal year—

6 ‘‘(i) shall only aggregate the amount

7 available under paragraph (1) for a public

8 library for a fiscal year if the amount so

9 available for such year is $3,000 or less;

10 and

11 ‘‘(ii) shall use such aggregated amounts

12 to enhance the library services provided to

13 the children described in subsection (a)(2)

14 served by the public libraries for which such

15 agency aggregated such amounts for such

16 year.

17 ‘‘(c) ADJUSTMENTS.—

18 ‘‘(1) APPROPRIATIONS INCREASE.—For any fis19 cal year for which the amount appropriated to carry

20 out this subtitle is greater than the amount appro21 priated to carry out this subtitle for the preceding fis22 cal year by a percentage that equals or exceeds 10

23 percent, the amount each State library administrative

24 agency shall reserve under subsection (a)(2) for the
318

•S 856 RS

1 fiscal year for which the determination is made shall

2 be increased by the same such percentage.

3 ‘‘(2) APPROPRIATIONS DECREASE.—For any fis4 cal year for which the amount appropriated to carry

5 out this subtitle is less than the amount appropriated

6 to carry out this subtitle for the preceding fiscal year

7 by a percentage that equals or exceeds 10 percent, the

8 amount each State library administrative agency

9 shall reserve under subsection (a)(2) for the fiscal

10 year for which the determination is made shall be de11 creased by the same such percentage.

12 ‘‘(d) PLAN.—Each public library desiring assistance

13 under this section shall submit a plan for the expenditure

14 of funds under this section to the State library administra15 tive agency. Such plan shall include a description of how

16 the library will—

17 ‘‘(1) identify the children described in subsection

18 (a)(2);

19 ‘‘(2) collaborate with community representatives

20 to ensure planning and implementation of appro21 priate, helpful library services; and

22 ‘‘(3) establish indicators of success.

23 ‘‘(e) PRIORITIES.—Priorities for the use of funds under

24 this section may include activities for children described in

25 subsection (a)(2) such as—
319

•S 856 RS

1 ‘‘(1) development of after-school homework sup2 port and summer and vacation reading programs;

3 ‘‘(2) development of family literacy programs;

4 ‘‘(3) extension of branch hours to provide space

5 and resources for homework;

6 ‘‘(4) development of coalitions and training pro7 grams involving libraries and other service providers

8 in the State;

9 ‘‘(5) development of technological resources;

10 ‘‘(6) hiring specialized outreach staff; and

11 ‘‘(7) development of peer tutoring programs.

12 ‘‘CHAPTER 3—ADMINISTRATIVE

13 PROVISIONS

14 ‘‘Subchapter A—State Requirements

15 ‘‘SEC. 251. STATE EVALUATION.

16 ‘‘(a) IN GENERAL.—Each State receiving a grant

17 under this subtitle shall annually evaluate, in accordance

18 with subsections (b) and (c), the activities assisted under

19 subchapters A and B of chapter 2.

20 ‘‘(b) SUBCHAPTER A ACTIVITIES.—Each evaluation of

21 activities assisted under subchapter A of chapter 2 shall in22 clude a description of how effective such activities are in

23 ensuring that—

24 ‘‘(1) every American will have affordable access

25 to information resources through electronic networks;
320

•S 856 RS

1 ‘‘(2) every public library will be connected to na2 tional and international electronic networks;

3 ‘‘(3) every State library agency will promote

4 planning and provide support for full library partici5 pation in electronic networks;

6 ‘‘(4) every public librarian will possess the

7 knowledge and skills needed to help people obtain in8 formation through electronic sources; and

9 ‘‘(5) every public library will be equipped with

10 the technology needed to help people obtain informa11 tion in an effective and timely manner.

12 ‘‘(c) SUBCHAPTER B ACTIVITIES.—

13 ‘‘(1) IN GENERAL.—Each evaluation of activities

14 assisted under subchapter B of chapter 2 shall in15 clude—

16 ‘‘(A) with respect to activities to increase

17 literacy and lifelong learning—

18 ‘‘(i) an analysis of the current situa19 tion in the State;

20 ‘‘(ii) how such activities will meet the

21 needs of the current situation in the State

22 and the target groups to be served; and

23 ‘‘(iii) a report of the effect of such ac24 tivities in relation to the objectives of such

25 activities;
321

•S 856 RS

1 ‘‘(B) with respect to activities to serve peo2 ple in rural and urban areas—

3 ‘‘(i) procedures used to identify library

4 users within a community;

5 ‘‘(ii) a description of needs and target

6 groups to be served;

7 ‘‘(iii) an analysis of the levels of suc8 cess to be targeted;

9 ‘‘(iv) a report of the effect of such ac10 tivities in relation to the objectives of such

11 activities; and

12 ‘‘(v) a description of the background of

13 the current level of library service to people

14 in rural and urban areas, and how such ac15 tivities will extend, improve, and further

16 provide library resources to such people;

17 ‘‘(C) with respect to activities to support the

18 provision of special services—

19 ‘‘(i) an analysis of the current situa20 tion in the State;

21 ‘‘(ii) how such activities will meet the

22 needs of the current situation in the State;

23 and
322

•S 856 RS

1 ‘‘(iii) a report of the effect of such ac2 tivities in relation to the objectives of such

3 activities; and

4 ‘‘(D) with respect to activities to serve chil5 dren under section 243—

6 ‘‘(i) an analysis of the current local

7 situations;

8 ‘‘(ii) a description of such activities,

9 including objectives and costs of such activi10 ties; and

11 ‘‘(iii) a report of the effect of such ac12 tivities in relation to the objectives of such

13 activities.

14 ‘‘(2) INFORMATION.—Each public library receiv15 ing assistance under section 243 shall submit to the

16 State library administrative agency such information

17 as such agency may require to meet the requirements

18 of paragraph (1)(D).

19 ‘‘SEC. 252. STATE ADVISORY COUNCILS.

20 ‘‘(a) COUNCILS REQUIRED.—Each State desiring as21 sistance under this subtitle shall establish a State advisory

22 council.

23 ‘‘(b) COMPOSITION.—Each State advisory council shall

24 be broadly representative of the library entities in the State,

25 including public, school, academic, special, and institu-
323

•S 856 RS

1 tional libraries, and libraries serving individuals with dis2 abilities.

3 ‘‘(c) DUTIES.—Each State advisory council shall—

4 ‘‘(1) consult with the State library administra5 tive agency regarding the development of the State

6 plan;

7 ‘‘(2) advise the State library administrative

8 agency on the development of, and policy matters

9 arising in the administration of, the State plan, in10 cluding mechanisms for evaluation;

11 ‘‘(3) assist the State library administrative

12 agency in—

13 ‘‘(A) the dissemination of information re14 garding activities assisted under this subtitle;

15 and

16 ‘‘(B) the evaluation of activities assisted

17 under this subtitle; and

18 ‘‘(4) establish bylaws to carry out such council’s

19 duties under this subsection.

20 ‘‘Subchapter B—Federal Requirements

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

22 ‘‘(a) GRANTS AUTHORIZED.—From amounts reserved

23 under section 221(a)(1) for any fiscal year the Director

24 shall award grants to organizations primarily serving and

25 representing Indian tribes to enable such organizations to
324

•S 856 RS

1 carry out the authorized activities described in subsection

2 (b).

3 ‘‘(b) AUTHORIZED ACTIVITIES.—Grant funds awarded

4 under this section may be used for—

5 ‘‘(1) inservice or preservice training of Indians

6 as library personnel;

7 ‘‘(2) the purchase of library materials;

8 ‘‘(3) the conduct of special library programs for

9 Indians;

10 ‘‘(4) salaries of library personnel;

11 ‘‘(5) transportation to enable Indians to have ac12 cess to library services;

13 ‘‘(6) dissemination of information about library

14 services;

15 ‘‘(7) assessment of tribal library needs; and

16 ‘‘(8) contracts to provide public library services

17 to Indians living on or near reservations or to accom18 plish any activities described in paragraphs (1)

19 through (7).

20 ‘‘(c) PROHIBITION.—No funds shall be awarded pursu21 ant to this section unless such funds will be administered

22 by a librarian.

23 ‘‘(d) DUPLICATION.—In awarding grants under this

24 section, the Director shall take such actions as may be nec25 essary to prevent the grant funds provided under this sec-
325

•S 856 RS

1 tion from being received by any 2 or more entities to serve

2 the same population.

3 ‘‘(e) MAINTENANCE OF EFFORT.—Each organization

4 that receives a grant under this section and supports a pub5 lic library system shall continue to expend from Federal,

6 State, and local sources an amount not less than the

7 amount expended by such organization from such sources

8 for public library services during the second fiscal year pre9 ceding the fiscal year for which the determination is made.

10 ‘‘(f) CONSTRUCTION.—Nothing in this section shall be

11 construed to prohibit the dissemination of restricted collec12 tions of tribal cultural materials with funds made available

13 under this section.

14 ‘‘(g) APPLICATION.—

15 ‘‘(1) IN GENERAL.—Any organization which de16 sires to receive a grant under this section shall submit

17 an application to the Director that—

18 ‘‘(A) describes the activities and services for

19 which assistance is sought; and

20 ‘‘(B) contains such information as the Di21 rector may require by regulation.

22 ‘‘(2) CRITERIA.—The Director shall issue criteria

23 for the approval of applications under this section,

24 but such criteria shall not include—

25 ‘‘(A) an allotment formula; or
326

•S 856 RS

1 ‘‘(B) a matching of funds requirement.

2 ‘‘SEC. 262. NATIONAL LEADERSHIP PROGRAM.

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

4 section 221(a)(2) for any fiscal year the Director shall es5 tablish and carry out a program of national leadership and

6 evaluation activities to enhance the quality of library serv7 ices nationwide. Such activities may include—

8 ‘‘(1) education and training of persons in li9 brary and information science, particularly in areas

10 of new technology and other critical needs, including

11 graduate fellowships, traineeships, institutes, or other

12 programs;

13 ‘‘(2) research and demonstration projects related

14 to the improvement of libraries, education in library

15 and information science, enhancement of library serv16 ices through effective and efficient use of new tech17 nologies, and dissemination of information derived

18 from such projects; and

19 ‘‘(3) preservation or digitization of library mate20 rials and resources, giving priority to projects empha21 sizing coordination, avoidance of duplication, and ac22 cess by researchers beyond the institution or library

23 entity undertaking the project.

24 ‘‘(b) GRANTS OR CONTRACTS.—
327

•S 856 RS

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

2 the activities described in subsection (a) by awarding

3 grants to, or entering into contracts with, library en4 tities, agencies, or institutions of higher education.

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

6 described in paragraph (1) shall be awarded on a

7 competitive basis.

8 ‘‘(c) SPECIAL RULE.—The Director, with policy advice

9 from the Museum Board shall make every effort to ensure

10 that activities assisted under this section are administered

11 by appropriate library and information services profes12 sionals or experts and science professionals or experts.

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

14 ‘‘Nothing in this subtitle shall be construed to interfere

15 with State and local initiatives and responsibility in the

16 conduct of library services. The administration of libraries,

17 the selection of personnel and library books and materials,

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

19 the determination of the best uses of the funds provided

20 under this subtitle, shall be reserved to the States and their

21 local subdivisions.

22 ‘‘Subtitle C—Museum Services

23 ‘‘SEC. 271. PURPOSE.

24 ‘‘It is the purpose of this subtitle—
328

•S 856 RS

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

2 educational role, in conjunction with formal systems

3 of elementary, secondary, and postsecondary edu4 cation and with programs of nonformal education for

5 all age groups;

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

7 methods and facilities so that the museums may be

8 better able to conserve the cultural, historic, and sci9 entific heritage of the United States; and

10 ‘‘(3) to ease the financial burden borne by muse11 ums as a result of their increasing use by the public.

12 ‘‘SEC. 272. DEFINITIONS.

13 ‘‘As used in this subtitle, the term ‘museum’ means a

14 public or private nonprofit agency or institution organized

15 on a permanent basis for essentially educational or aes16 thetic purposes, that utilizes a professional staff, owns or

17 utilizes tangible objects, cares for the tangible objects, and

18 exhibits the tangible objects to the public on a regular basis.

19 ‘‘SEC. 273. MUSEUM SERVICES ACTIVITIES.

20 ‘‘(a) GRANTS.—The Director, subject to the policy di21 rection of the Museum Board, may make grants to museums

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

23 improving museum services, through such activities as—
329

•S 856 RS

1 ‘‘(1) programs to enable museums to construct or

2 install displays, interpretations, and exhibitions in

3 order to improve museum services to the public;

4 ‘‘(2) assisting museums in developing and main5 taining professionally trained or otherwise experi6 enced staff to meet their needs;

7 ‘‘(3) assisting museums in meeting their admin8 istrative costs in preserving and maintaining their

9 collections, exhibiting the collections to the public, and

10 providing educational programs to the public through

11 the use of the collections;

12 ‘‘(4) assisting museums in cooperating with each

13 other in developing traveling exhibitions, meeting

14 transportation costs, and identifying and locating col15 lections available for loan;

16 ‘‘(5) assisting museums in conservation of their

17 collections; and

18 ‘‘(6) developing and carrying out specialized

19 programs for specific segments of the public, such as

20 programs for urban neighborhoods, rural areas, In21 dian reservations, and penal and other State institu22 tions.

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

24 ‘‘(1) PROJECTS TO STRENGTHEN MUSEUM SERV25 ICES.—The Director, subject to the policy direction of
330

•S 856 RS

1 the Museum Board, is authorized to enter into con2 tracts and cooperative agreements with appropriate

3 entities to pay for the Federal share of enabling the

4 entities to undertake projects designed to strengthen

5 museum services, except that any contracts or cooper6 ative agreements entered into pursuant to this sub7 section shall be effective only to such extent or in such

8 amounts as are provided in appropriations Acts.

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

10 amount of financial assistance made available under

11 this subsection for a fiscal year shall not exceed 15

12 percent of the amount appropriated under this sub13 title for such fiscal year.

14 ‘‘(3) OPERATIONAL EXPENSES.—No financial as15 sistance may be provided under this subsection to pay

16 for operational expenses.

17 ‘‘(c) FEDERAL SHARE.—

18 ‘‘(1) 50 PERCENT.—Except as provided in para19 graph (2), the Federal share described in subsections

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

21 ‘‘(2) 100 PERCENT.—The Director may use not

22 more than 20 percent of the funds made available

23 under this section for a fiscal year to make grants

24 under subsection (a), or enter into contracts or agree-
331

•S 856 RS

1 ments under subsection (b), for which the Federal

2 share may be 100 percent.

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

4 establish procedures for reviewing and evaluating grants,

5 contracts, and cooperative agreements made or entered into

6 under this section. Procedures for reviewing grant applica7 tions or contracts and cooperative agreements for financial

8 assistance under this section shall not be subject to any re9 view outside of the Institute.

10 ‘‘SEC. 274. ASSESSMENTS.

11 ‘‘(a) IN GENERAL.—The Director, subject to the policy

12 direction of the Museum Board and in consultation with

13 appropriate representatives of museums and other types of

14 community institutions, agencies, and organizations, shall

15 undertake an assessment of the collaborative possibilities

16 museums can engage in to serve the public more broadly

17 and effectively.

18 ‘‘(b) CONTENTS.—The assessment shall include—

19 ‘‘(1) an investigation of opportunities to estab20 lish collaborative programs between museums within

21 a community, including an investigation of the role

22 that larger institutions can play as mentors to small23 er institutions;
332

•S 856 RS

1 ‘‘(2) an investigation of opportunities to estab2 lish collaborative programs between museums and

3 community organizations;

4 ‘‘(3) an investigation of the potential for collabo5 ration between museums on technology issues to reach

6 a broader audience; and

7 ‘‘(4) an investigation of opportunities for muse8 ums to work with each other and with other commu9 nity resources to serve the public better and to coordi10 nate professional and financial development activi11 ties.

12 ‘‘(c) LIMITATION.—This section shall not apply in any

13 fiscal year for which the amount appropriated under sec14 tion 277(a) is less than $28,700,000.

15 ‘‘SEC. 275. AWARD.

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

17 may annually award a National Award for Museum Serv18 ice to outstanding museums that have made significant con19 tributions in service to their communities.

20 ‘‘SEC. 276. NATIONAL MUSEUM SERVICES BOARD.

21 ‘‘(a) ESTABLISHMENT.—There is established in the In22 stitute a National Museum Services Board.

23 ‘‘(b) COMPOSITION AND QUALIFICATIONS.—

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

25 consist of the Director and 14 members appointed by
333

•S 856 RS

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

2 the Senate.

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

4 of the Museum Board shall be selected from among

5 citizens of the United States—

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

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

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

9 broadly representative of the curatorial,

10 conservation, educational, and cultural re11 sources of the United States; and

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

13 broadly representative of various types of

14 museums, including museums relating to

15 science, history, technology, and art, zoos,

16 and botanical gardens; and

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

18 knowledge, expertise, or experience in museums

19 or commitment to museums.

20 ‘‘(3) GEOGRAPHIC AND OTHER REPRESENTA21 TION.—Members of the Museum Board shall be ap22 pointed to reflect persons from various geographic re23 gions of the United States. The Museum Board may

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

25 a single State. In making such appointments, the
334

•S 856 RS

1 President shall give due regard to equitable represen2 tation of women, minorities, and persons with dis3 abilities who are involved with museums.

4 ‘‘(c) TERMS.—

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

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

7 except that—

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

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

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

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

12 for terms of 1 year, as designated by the Presi13 dent at the time of nomination for appointment;

14 and

15 ‘‘(B) any member appointed to fill a va16 cancy shall serve for the remainder of the term

17 for which the predecessor of the member was ap18 pointed.

19 ‘‘(2) REAPPOINTMENT.—No member of the Mu20 seum Board who has been a member for more than

21 7 consecutive years shall be eligible for reappoint22 ment.

23 ‘‘(3) SERVICE UNTIL SUCCESSOR TAKES OF24 FICE.—Notwithstanding any other provision of this

25 subsection, a member shall serve after the expiration
335

•S 856 RS

1 of the term of the member until the successor to the

2 member takes office.

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

4 have the responsibility for general policies with respect to

5 the duties, powers, and authorities vested in the Institute

6 relating to museum services, including general policies with

7 respect to—

8 ‘‘(1) financial assistance awarded under this

9 title for museum services;

10 ‘‘(2) projects described in section 204(c)(2); and

11 ‘‘(3) measures to ensure that the policies and ac12 tivities of the Institute for Museum and Library Serv13 ices are coordinated with other activities of the Fed14 eral Government.

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

16 of the appointive members of the Museum Board as Chair17 person of the Museum Board.

18 ‘‘(f) MEETINGS.—

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

20 meet—

21 ‘‘(A) not less than 3 times each year, in22 cluding—

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

24 separately; and
336

•S 856 RS

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

2 a joint meeting with the Commission, con3 vened for purposes of making general poli4 cies with respect to financial assistance for

5 projects described in section 204(c)(2); and

6 ‘‘(B) at the call of the Director.

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

8 with respect to the exercise of the duties and powers

9 of the Museum Board shall be made by a majority

10 vote of the members of the Museum Board who are

11 present. All decisions by the Commission and the Mu12 seum Board with respect to the policies described in

paragraph (1)(A)(ii) shall be made by a 2 13 ⁄3 majority

14 vote of the total number of the members of the Com15 mission and the Museum Board who are present.

16 ‘‘(g) QUORUM.—A majority of the members of the Mu17 seum Board shall constitute a quorum for the conduct of

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

19 lesser number of members may hold hearings. A majority

20 of the members of the Commission and a majority of the

21 members of the Museum Board shall constitute a quorum

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

23 Commission and the Museum Board.

24 ‘‘(h) COMPENSATION AND TRAVEL EXPENSES.—
337

•S 856 RS

1 ‘‘(1) COMPENSATION.—Each member of the Mu2 seum Board who is not an officer or employee of the

3 Federal Government shall be compensated at a rate to

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

5 equivalent of the maximum rate authorized for a po6 sition above grade GS–15 of the General Schedule

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

8 each day (including travel time) during which such

9 member is engaged in the performance of the duties

10 of the Museum Board. All members of the Museum

11 Board who are officers or employees of the Federal

12 Government shall serve without compensation in ad13 dition to compensation received for their services as

14 officers or employees of the Federal Government.

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

16 Museum Board shall be allowed travel expenses, in17 cluding per diem in lieu of subsistence, in the same

18 amounts and to the same extent, as authorized under

19 section 5703 of title 5, United States Code, for per20 sons employed intermittently in Federal Government

21 service.

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

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

24 policies and activities of the Institute are coordinated with

25 other activities of the Federal Government.
338

•S 856 RS

1 ‘‘SEC. 277. AUTHORIZATION OF APPROPRIATIONS.

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

3 subtitle, there are authorized to be appropriated to the Di4 rector $28,700,000 for the fiscal year 1996, and such sums

5 as may be necessary for each of the fiscal years 1997

6 through 2000.

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

8 the funds appropriated under this section for a fiscal year

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

10 out this subtitle.

11 ‘‘(c) JOINT PROJECTS.—Not less than 5 percent and

12 not more than 7 percent of the funds appropriated under

13 this section for a fiscal year may be made available for

14 projects described in section 204(c)(2) for the fiscal year.

15 ‘‘(d) SUMS REMAINING AVAILABLE.—Sums appro16 priated pursuant to subsection (a) for any fiscal year shall

17 remain available for obligation until expended.’’.

18 SEC. 202. NATIONAL COMMISSION ON LIBRARIES AND IN19 FORMATION SCIENCE.

20 (a) FUNCTIONS.—Section 5 of the National Commis21 sion on Libraries and Information Science Act (20 U.S.C.

22 1504) is amended—

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

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

25 (2) by inserting after subsection (a) the follow26 ing:
339

•S 856 RS

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

2 advise the Director of the Institute of Museum and Library

3 Services on general policies with respect to the duties and

4 powers vested in the Institute of Museum and Library Serv5 ices relating to library services, including—

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

7 ‘‘(A) financial assistance awarded under the

8 Museum and Library Services Act for library

9 services; and

10 ‘‘(B) projects described in section 204(c)(2)

11 of such Act; and

12 ‘‘(2) measures to ensure that the policies and ac13 tivities of the Institute of Museum and Library Serv14 ices are coordinated with other activities of the Fed15 eral Government.

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

17 each year in a joint meeting with the National Museum

18 Services Board, convened for purposes of providing advice

19 on general policy with respect to financial assistance for

20 projects described in section 204(c)(2) of such Act.

21 ‘‘(2) All decisions by the Commission and the National

22 Museum Services Board with respect to the advice on gen23 eral policy described in paragraph (1) shall be made by

a 2 24 ⁄3 majority vote of the total number of the members of
340

•S 856 RS

1 the Commission and the National Museum Services Board

2 who are present.

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

4 a majority of the members of the National Museum Services

5 Board shall constitute a quorum for the conduct of business

6 at official joint meetings of the Commission and the Na7 tional Museum Services Board.’’.

8 (b) MEMBERSHIP.—Section 6 of the National Commis9 sion on Libraries and Information Science Act (20 U.S.C.

10 1505) is amended—

11 (1) in subsection (a)—

12 (A) in the first sentence, by striking ‘‘Li13 brarian of Congress’’ and inserting ‘‘Librarian

14 of Congress, the Director of the Institute of Mu15 seum and Library Services (who shall serve as

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

17 (B) in the second sentence—

18 (i) by striking ‘‘special competence or

19 interest in’’ and inserting ‘‘special com20 petence in or knowledge of; and

21 (ii) by inserting before the period the

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

23 shall be knowledgeable with respect to the li24 brary and information service and science

25 needs of the elderly’’;
341

•S 856 RS

1 (C) in the third sentence, by inserting ‘‘ap2 pointive’’ before ‘‘members’’; and

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

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

5 ‘‘term.’’; and

6 (2) in subsection (b), by striking ‘‘the rate speci7 fied’’ and all that follows through ‘‘and while’’ and

8 inserting ‘‘the daily equivalent of the maximum rate

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

10 General Schedule under section 5108 of title 5, United

11 States Code, for each day (including traveltime) dur12 ing which the members are engaged in the business of

13 the Commission. While’’.

14 SEC. 203. TRANSFER OF FUNCTIONS FROM INSTITUTE OF

15 MUSEUM SERVICES.

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

17 otherwise provided or indicated by the context—

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

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

20 5, United States Code;

21 (2) the term ‘‘function’’ means any duty, obliga22 tion, power, authority, responsibility, right, privilege,

23 activity, or program; and
342

•S 856 RS

1 (3) the term ‘‘office’’ includes any office, admin2 istration, agency, institute, unit, organizational en3 tity, or component thereof.

4 (b) TRANSFER OF FUNCTIONS.—There are transferred

5 to the Institute of Museum and Library Services established

6 under section 203 of the Museum and Library Services Act

7 all functions that the Director of the Institute of Museum

8 Services exercised before the date of enactment of this section

9 (including all related functions of any officer or employee

10 of the Institute of Museum Services).

11 (c) DETERMINATIONS OF CERTAIN FUNCTIONS BY THE

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

13 Office of Management and Budget shall make any deter14 mination of the functions that are transferred under sub15 section (b).

16 (d) DELEGATION AND ASSIGNMENT.—Except where

17 otherwise expressly prohibited by law or otherwise provided

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

19 Library Services may delegate any of the functions trans20 ferred to the Director of the Institute of Museum and Li21 brary Services by this section and any function transferred

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

23 Library Services after the effective date of this section to

24 such officers and employees of the Institute of Museum and

25 Library Services as the Director of the Institute of Museum
343

•S 856 RS

1 and Library Services may designate, and may authorize

2 successive redelegations of such functions as may be nec3 essary or appropriate. No delegation of functions by the Di4 rector of the Institute of Museum and Library Services

5 under this section or under any other provision of this sec6 tion shall relieve such Director of the Institute of Museum

7 and Library Services of responsibility for the administra8 tion of such functions.

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

10 Museum and Library Services may allocate or reallocate

11 any function transferred under subsection (b) among the

12 officers of the Institute of Museum and Library Services,

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

14 organizational entities in the Institute of Museum and Li15 brary Services as may be necessary or appropriate.

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

17 and Library Services may prescribe, in accordance with

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

19 and regulations as the Director of the Institute of Museum

20 and Library Services determines to be necessary or appro21 priate to administer and manage the functions of the Insti22 tute of Museum and Library Services.

23 (g) TRANSFER AND ALLOCATIONS OF APPROPRIATIONS

24 AND PERSONNEL.—Except as otherwise provided in this

25 section, the personnel employed in connection with, and the
344

•S 856 RS

1 assets, liabilities, contracts, property, records, and unex2 pended balances of appropriations, authorizations, alloca3 tions, and other funds employed, used, held, arising from,

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

5 the functions transferred by this section, subject to section

6 1531 of title 31, United States Code, shall be transferred

7 to the Institute of Museum and Library Services. Unex8 pended funds transferred pursuant to this subsection shall

9 be used only for the purposes for which the funds were origi10 nally authorized and appropriated.

11 (h) INCIDENTAL TRANSFERS.—The Director of the Of12 fice of Management and Budget, at such time or times as

13 the Director shall provide, may make such determinations

14 as may be necessary with regard to the functions transferred

15 by this section, and make such additional incidental dis16 positions of personnel, assets, liabilities, grants, contracts,

17 property, records, and unexpended balances of appropria18 tions, authorizations, allocations, and other funds held,

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

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

21 carry out this section. The Director of the Office of Manage22 ment and Budget shall provide for the termination of the

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

24 further measures and dispositions as may be necessary to

25 effectuate the purposes of this section.
345

•S 856 RS

1 (i) EFFECT ON PERSONNEL.—

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

3 by this section, the transfer pursuant to this section

4 of full-time personnel (except special Government em5 ployees) and part-time personnel holding permanent

6 positions shall not cause any such employee to be sep7 arated or reduced in grade or compensation for 1

8 year after the date of transfer of such employee under

9 this section.

10 (2) EXECUTIVE SCHEDULE POSITIONS.—Except

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

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

13 held a position compensated in accordance with the

14 Executive Schedule prescribed in chapter 53 of title 5,

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

16 service, is appointed in the Institute of Museum and

17 Library Services to a position having duties com18 parable to the duties performed immediately preced19 ing such appointment shall continue to be com20 pensated in such new position at not less than the

21 rate provided for such previous position, for the dura22 tion of the service of such person in such new posi23 tion.

24 (j) SAVINGS PROVISIONS.—
346

•S 856 RS

1 (1) CONTINUING EFFECT OF LEGAL DOCU2 MENTS.—All orders, determinations, rules, regula3 tions, permits, agreements, grants, contracts, certifi4 cates, licenses, registrations, privileges, and other ad5 ministrative actions—

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

7 allowed to become effective by the President, any

8 Federal agency or official of a Federal agency, or

9 by a court of competent jurisdiction, in the per10 formance of functions that are transferred under

11 this section; and

12 (B) that were in effect before the effective

13 date of this section, or were final before the effec14 tive date of this section and are to become effec15 tive on or after the effective date of this section;

16 shall continue in effect according to their terms until

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

18 in accordance with law by the President, the Director

19 of the Institute of Museum and Library Services or

20 other authorized official, a court of competent juris21 diction, or by operation of law.

22 (2) PROCEEDINGS NOT AFFECTED.—This section

23 shall not affect any proceedings, including notices of

24 proposed rulemaking, or any application for any li25 cense, permit, certificate, or financial assistance
347

•S 856 RS

1 pending before the Institute of Museum Services on

2 the effective date of this section, with respect to func3 tions transferred by this section. Such proceedings

4 and applications shall be continued. Orders shall be

5 issued in such proceedings, appeals shall be taken

6 from the orders, and payments shall be made pursu7 ant to the orders, as if this section had not been en8 acted, and orders issued in any such proceedings shall

9 continue in effect until modified, terminated, super10 seded, or revoked by a duly authorized official, by a

11 court of competent jurisdiction, or by operation of

12 law. Nothing in this paragraph shall be construed to

13 prohibit the discontinuance or modification of any

14 such proceeding under the same terms and conditions

15 and to the same extent that such proceeding could

16 have been discontinued or modified if this section had

17 not been enacted.

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

19 not affect suits commenced before the effective date of

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

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

22 same manner and with the same effect as if this sec23 tion had not been enacted.

24 (4) NONABATEMENT OF ACTIONS.—No suit, ac25 tion, or other proceeding commenced by or against the
348

•S 856 RS

1 Institute of Museum Services, or by or against any

2 individual in the official capacity of such individual

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

4 abate by reason of the enactment of this section.

5 (5) ADMINISTRATIVE ACTIONS RELATING TO PRO6 MULGATION OF REGULATIONS.—Any administrative

7 action relating to the preparation or promulgation of

8 a regulation by the Institute of Museum Services re9 lating to a function transferred under this section

10 may be continued by the Institute of Museum and Li11 brary Services with the same effect as if this section

12 had not been enacted.

13 (k) TRANSITION.—The Director of the Institute of Mu14 seum and Library Services may utilize—

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

16 other personnel of the Institute of Museum Services

17 with respect to functions transferred to the Institute

18 of Museum and Library Services by this section; and

19 (2) funds appropriated to such functions for such

20 period of time as may reasonably be needed to facili21 tate the orderly implementation of this section.

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

23 law, Executive order, rule, regulation, or delegation of au24 thority, or any document of or relating to—
349

•S 856 RS

1 (1) the Director of the Institute of Museum Serv2 ices with regard to functions transferred under sub3 section (b), shall be deemed to refer to the Director of

4 the Institute of Museum and Library Services; and

5 (2) the Institute of Museum Services with regard

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

7 deemed to refer to the Institute of Museum and Li8 brary Services.

9 (m) ADDITIONAL CONFORMING AMENDMENTS.—

10 (1) RECOMMENDED LEGISLATION.—After con11 sultation with the appropriate committees of Congress

12 and the Director of the Office of Management and

13 Budget, the Director of the Institute of Museum and

14 Library Services shall prepare and submit to the ap15 propriate committees of Congress recommended legis16 lation containing technical and conforming amend17 ments to reflect the changes made by this section.

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

19 6 months after the effective date of this section, the

20 Director of the Institute of Museum and Library

21 Services shall submit to the appropriate committees of

22 Congress the recommended legislation referred to

23 under paragraph (1).
350

•S 856 RS

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

2 ENACTMENT.

3 Notwithstanding section 204 of the Museum and Li4 brary Services Act, the individual who was appointed to

5 the position of Director of the Institute of Museum Services

6 under section 205 of the Museum Services Act (as such sec7 tion was in effect on the day before the date of enactment

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

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

10 first Director of the Institute of Museum and Library Serv11 ices under section 204 of the Museum and Library Services

12 Act (as added by section 201 of this Act), and shall serve

13 at the pleasure of the President.

14 SEC. 205. CONSIDERATION.

15 Consistent with title 5, United States Code, in ap16 pointing employees of the Office of Library Services, the Di17 rector of the Institute of Museum and Library Services shall

18 give strong consideration to individuals with experience in

19 administering State-based and national library and infor20 mation services programs.

21 SEC. 206. REPEALS AND TECHNICAL AND CONFORMING

22 AMENDMENTS.

23 (a) REPEALS.—

24 (1) LIBRARY SERVICES AND CONSTRUCTION

25 ACT.—The Library Services and Construction Act (20

26 U.S.C. 351 et seq.) is repealed.
351

•S 856 RS

1 (2) HIGHER EDUCATION ACT OF 1965.—Title II

2 of the Higher Education Act of 1965 (20 U.S.C. 1021

3 et seq.) is repealed.

4 (b) REFERENCES TO LIBRARY SERVICES AND CON5 STRUCTION ACT.—

6 (1) OMNIBUS EDUCATION RECONCILIATION ACT

7 OF 1981.—Section 528 of the Omnibus Education

8 Reconciliation Act of 1981 (20 U.S.C. 3489) is

9 amended—

10 (A) by striking paragraph (12); and

11 (B) by redesignating paragraphs (13)

12 through (15) as paragraphs (12) through (14),

13 respectively.

14 (2) ELEMENTARY AND SECONDARY EDUCATION

15 ACT OF 1965.—Section 3113(10) of the Elementary

16 and Secondary Education Act of 1965 (20 U.S.C.

17 6813(10)) is amended by striking ‘‘section 3 of the Li18 brary Services and Construction Act’’ and inserting

19 ‘‘section 213(7) of the Library Services and Tech20 nology Act’’.

21 (3) COMMUNITY IMPROVEMENT VOLUNTEER ACT

22 OF 1994.—Section 7305 of the Community Improve23 ment Volunteer Act of 1994 (40 U.S.C. 276d–3) is

24 amended—

25 (A) by striking paragraph (1); and
352

•S 856 RS

1 (B) by redesignating paragraphs (2)

2 through (6) as paragraphs (1) through (5), re3 spectively.

4 (4) APPALACHIAN REGIONAL DEVELOPMENT ACT

5 OF 1965.—Section 214(c) of the Appalachian Regional

6 Development Act of 1965 (40 U.S.C. App. 214(c)) is

7 amended by striking ‘‘Library Services and Construc8 tion Act;’’.

9 (5) DEMONSTRATION CITIES AND METROPOLITAN

10 DEVELOPMENT ACT OF 1966.—Section 208(2) of the

11 Demonstration Cities and Metropolitan Development

12 Act of 1966 (42 U.S.C. 3338(2)) is amended by strik13 ing ‘‘title II of the Library Services and Construction

14 Act;’’.

15 (6) PUBLIC LAW 87–688.—Subsection (c) of the

16 first section of the Act entitled ‘‘An Act to extend the

17 application of certain laws to American Samoa’’, ap18 proved September 25, 1962 (48 U.S.C. 1666(c)) is

19 amended by striking ‘‘the Library Services Act (70

20 Stat. 293; 20 U.S.C. 351 et seq.),’’.

21 (c) REFERENCES TO INSTITUTE OF MUSEUM SERV22 ICES.—

23 (1) TITLE 5, UNITED STATES CODE.—Section

24 5315 of title 5, United States Code, is amended by

25 striking the following:
353

•S 856 RS

1 ‘‘Director of the Institute of Museum Services.’’

2 and inserting the following:

3 ‘‘Director of the Institute of Museum and Li4 brary Services.’’.

5 (2) DEPARTMENT OF EDUCATION ORGANIZATION

6 ACT.—Section 301 of the Department of Education

7 Organization Act (20 U.S.C. 3441) is amended—

8 (A) in subsection (a)—

9 (i) by striking paragraph (5); and

10 (ii) by redesignating paragraphs (6)

11 and (7) as paragraphs (5) and (6), respec12 tively; and

13 (B) in subsection (b)—

14 (i) by striking paragraph (4); and

15 (ii) by redesignating paragraphs (5)

16 through (7) as paragraphs (4) through (6),

17 respectively.

18 (3) ELEMENTARY AND SECONDARY EDUCATION

19 ACT OF 1965.—

20 (A) Sections 2101(b), 2205(c)(1)(D),

21 2208(d)(1)(H)(v), and 2209(b)(1)(C)(vi), and

22 subsections (d)(6) and (e)(2) of section 10401 of

23 the Elementary and Secondary Education Act of

24 1965 (20 U.S.C. 6621(b), 6645(c)(1)(D),

25 6648(d)(1)(H)(v), 6649(b)(1)(C)(vi), and 8091
354

•S 856 RS

1 (d)(6) and (e)(2)) are amended by striking ‘‘the

2 Institute of Museum Services’’ and inserting ‘‘the

3 Institute of Museum and Library Services’’.

4 (B) Section 10412(b) of such Act (20 U.S.C.

5 8102(b)) is amended—

6 (i) in paragraph (2), by striking ‘‘the

7 Chairman of the National Endowment for

8 the Humanities, the Chairman of the Na9 tional Endowment for the Arts, and the Di10 rector of the Institute of Museum Services,’’

11 and inserting ‘‘the Chairperson of the Na12 tional Endowment for the Humanities, the

13 Chairperson of the National Endowment for

14 the Arts, and the Director of the Institute of

15 Museum and Library Services,’’; and

16 (ii) in paragraph (7), by striking ‘‘the

17 Chairman of the National Endowment for

18 the Humanities, the Chairman of the Na19 tional Endowment for the Arts and the Di20 rector of the Institute of Museum Services,’’

21 and inserting ‘‘the Chairperson of the Na22 tional Endowment for the Humanities, the

23 Chairperson of the National Endowment for

24 the Arts, and the Director of the Institute of

25 Museum and Library Services,’’.
355

•S 856 RS

1 (C) Section 10414(a)(2)(B) of such Act (20

2 U.S.C. 8104(a)(2)(B)) is amended by striking

3 clause (iii) and inserting the following new

4 clause:

5 ‘‘(iii) the Institute of Museum and Li6 brary Services.’’.

7 (d) REFERENCES TO HIGHER EDUCATION ACT OF

8 1965.—

9 (1) HIGHER EDUCATION ACT OF 1965.—Para10 graph (2) of section 356(b) of the Higher Education

11 Act of 1965 (20 U.S.C. 1069b(b)) is amended by strik12 ing ‘‘II,’’.

13 (2) HIGHER EDUCATION AMENDMENTS OF

14 1986.—Part D of title XIII of the Higher Education

15 Amendments of 1986 (20 U.S.C. 1029 note) is re16 pealed.

17 (e) REFERENCES TO OFFICE OF LIBRARIES AND

18 LEARNING RESOURCES.—

19 (1) EDUCATION AMENDMENTS OF 1974.—Section

20 519 of the Education Amendments of 1974 (20 U.S.C.

21 1221i) is repealed.

22 (2) DEPARTMENT OF EDUCATION ORGANIZATION

23 ACT.—Section 413(b)(1) of the Department of Edu24 cation Organization Act (20 U.S.C. 3473(b)(1)) is

25 amended—
356

•S 856 RS

1 (A) by striking subparagraph (H); and

2 (B) by redesignating subparagraphs (I)

3 through (M) as subparagraphs (H) through (L),

4 respectively.

5 TITLE III—ARTS AND ARTIFACTS

6 INDEMNITY ACT

7 SEC. 301. ARTS AND ARTIFACTS.

8 The Arts and Artifacts Indemnity Act (20 U.S.C. 971

9 et seq.) is amended to read as follows:

10 ‘‘SECTION 1. SHORT TITLE.

11 ‘‘This Act may be cited as the ‘Arts and Artifacts In12 demnity Act’.

13 ‘‘SEC. 2. INDEMNITY FOR EXHIBITIONS OF ARTS AND ARTI14 FACTS.

15 ‘‘The Chairperson of the National Endowment for the

16 Arts (referred to in this title as the ‘Chairperson’) may

17 enter into agreements to indemnify against loss or damage

18 such items as may be eligible for such indemnity agreements

19 under section 3—

20 ‘‘(1) in accordance with the provisions of this

21 Act; and

22 ‘‘(2) on such terms and conditions as the Chair23 person shall prescribe, by regulation, in order to

24 achieve the objectives of this Act and, consistent with
357

•S 856 RS

1 such objectives, to protect the financial interest of the

2 United States.

3 ‘‘SEC. 3. ELIGIBLE ITEMS.

4 ‘‘(a) TYPES OF ITEMS.—The Chairperson may enter

5 into an indemnity agreement under section 2 with respect

6 to items—

7 ‘‘(1) that are—

8 ‘‘(A) works of art, including tapestries,

9 paintings, sculpture, folk art, and graphics and

10 craft arts;

11 ‘‘(B) manuscripts, rare documents, books, or

12 other printed or published materials;

13 ‘‘(C) other artifacts or objects; or

14 ‘‘(D) photographs, motion pictures, or audio

15 and video tape;

16 ‘‘(2) that are of educational, cultural, historical,

17 or scientific value; and

18 ‘‘(3) the exhibition of which is certified (where

19 appropriate) by the Secretary of State or the designee

20 of the Secretary of State as being in the national in21 terest.

22 ‘‘(b) ITEMS ON EXHIBITION.—

23 ‘‘(1) SCOPE.—An indemnity agreement made

24 under this Act shall cover eligible items while on exhi25 bition, generally when the items are part of an ex-
358

•S 856 RS

1 change of exhibitions. An item described in subsection

2 (a) that is part of an exhibition that originates either

3 in the United States or outside the United States and

4 that is touring the United States shall be considered

5 to be an eligible item.

6 ‘‘(2) DEFINITION.—For purposes of this sub7 section, the term ‘on exhibition’ includes the period of

8 time beginning on the date the eligible items leave the

9 premises of the lender or place designated by the lend10 er and ending on the date such items are returned to

11 the premises of the lender or place designated by the

12 lender.

13 ‘‘SEC. 4. APPLICATIONS.

14 ‘‘(a) IN GENERAL.—Any person, nonprofit agency, in15 stitution, or government desiring to enter into an indem16 nity agreement for eligible items under this Act shall submit

17 an application to the Chairperson at such time, in such

18 manner and in accordance with such procedures, as the

19 Chairperson shall, by regulation, prescribe.

20 ‘‘(b) CONTENTS.—An application submitted under

21 subsection (a) shall—

22 ‘‘(1) describe each item to be covered by the

23 agreement (including an estimated value of such

24 item);
359

•S 856 RS

1 ‘‘(2) show evidence that the item is an item de2 scribed in section 3(a); and

3 ‘‘(3) set forth policies, procedures, techniques,

4 and methods with respect to preparation for, and con5 duct of, exhibition of the item, and any transpor6 tation related to such item.

7 ‘‘(c) APPROVAL.—On receipt of an application under

8 this section, the Chairperson shall review the application

9 as described in section 5 and, if the Chairperson agrees with

10 the estimated value described in the application and if such

11 application conforms with the requirements of this Act, ap12 prove the application and enter into an indemnity agree13 ment with the applicant under section 2. On such approval,

14 the agreement shall constitute a contract between the Chair15 person and the applicant pledging the full faith and credit

16 of the United States to pay any amount for which the

17 Chairperson becomes liable under such agreement. The

18 Chairperson, for such purpose, is authorized to pledge the

19 full faith and credit of the United States.

20 ‘‘SEC. 5. INDEMNITY AGREEMENT.

21 ‘‘(a) REVIEW.—On receipt of an application meeting

22 the requirements of subsections (a) and (b) of section 4, the

23 Chairperson shall review the estimated value of the items

24 for which coverage by an indemnity agreement is sought.
360

•S 856 RS

1 ‘‘(b) AGGREGATE AMOUNT OF LOSS OR DAMAGE.—The

2 aggregate amount of loss or damage covered by indemnity

3 agreements made under this Act shall not exceed

4 $3,000,000,000, at any one time.

5 ‘‘(c) INDIVIDUAL AMOUNT OF LOSS OR DAMAGE.—No

6 indemnity agreement for a single exhibition shall cover loss

7 or damage in excess of $300,000,000.

8 ‘‘(d) EXTENT OF COVERAGE.—If the estimated value

9 of the items covered by an indemnity agreement for a single

10 exhibition is—

11 ‘‘(1) $2,000,000 or less, then coverage under this

12 Act shall extend only to loss or damage in excess of

13 the first $15,000 of loss or damage to the items cov14 ered;

15 ‘‘(2) more than $2,000,000 but less than

16 $10,000,000, then coverage under this Act shall extend

17 only to loss or damage in excess of the first $25,000

18 of loss or damage to the items covered;

19 ‘‘(3) not less than $10,000,000 but less than

20 $125,000,000, then coverage under this Act shall ex21 tend only to loss or damage in excess of the first

22 $50,000 of loss or damage to the items covered;

23 ‘‘(4) not less than $125,000,000 but less than

24 $200,000,000, then coverage under this Act shall ex-
361

•S 856 RS

1 tend only to loss or damage in excess of the first

2 $100,000 of loss or damage to the items covered; or

3 ‘‘(5) $200,000,000 or more, then coverage under

4 this Act shall extend only to loss or damage in excess

5 of the first $200,000 of loss or damage to the items

6 covered.

7 ‘‘SEC. 6. REGULATIONS AND CERTIFICATION.

8 ‘‘(a) REGULATIONS.—The Chairperson shall prescribe

9 regulations providing for prompt adjustment of valid

10 claims for loss or damage to items that are covered by an

11 agreement entered into pursuant to section 2, including

12 provision for arbitration of issues relating to the dollar

13 value of damages involving less than total loss or destruc14 tion of such covered items.

15 ‘‘(b) CERTIFICATION.—In the case of a claim of loss

16 or damage with respect to an item that is covered by an

17 agreement entered into pursuant to section 2, the Chair18 person shall certify the validity of the claim and the amount

19 of the loss to the Speaker of the House of Representatives

20 and the President pro tempore of the Senate.

21 ‘‘SEC. 7. REPORT.

22 ‘‘The Chairperson shall prepare, and submit at the end

23 of each fiscal year to the appropriate committees of Con24 gress, a report containing information on—
362

•S 856 RS

1 ‘‘(1) all claims paid pursuant to this Act during

2 such year;

3 ‘‘(2) pending claims against the Chairperson

4 under this Act as of the end of such year; and

5 ‘‘(3) the aggregate face value of contracts entered

6 into by the Chairperson that are outstanding at the

7 end of such year.

8 ‘‘SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘There are authorized to be appropriated such sums

10 as may be necessary—

11 ‘‘(1) to enable the Chairperson to carry out the

12 functions of the Chairperson under this Act; and

13 ‘‘(2) to pay claims certified pursuant to section

14 6(b).’’.

Amend the title so as to read: ‘‘To amend the National Foundation on the Arts and the Humanities Act

of 1965, the Museum Services Act, and the Arts and Artifacts Indemnity Act to improve and extend the Acts,

and for other purposes.’’.

S 856 RS——2

S 856 RS——3

S 856 RS——4

S 856 RS——5

S 856 RS——6

S 856 RS——7
363

•S 856 RS

S 856 RS——8

S 856 RS——9

S 856 RS——10

S 856 RS——11

S 856 RS——12

S 856 RS——13

S 856 RS——14

S 856 RS——15

S 856 RS——16

S 856 RS——17

S 856 RS——18

S 856 RS——19

S 856 RS——20

S 856 RS——21

S 856 RS——22

S 856 RS——23

S 856 RS——24