II

104TH CONGRESS

1ST SESSION S. 856

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

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,

3 SECTION 1. SHORT TITLE.

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

5 Museums Amendments of 1995’’.
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1 TITLE I—NATIONAL FOUNDA2 TION ON THE ARTS AND THE

3 HUMANITIES ACT OF 1965

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

5 HUMANITIES.

6 The National Foundation on the Arts and the Hu7 manities Act of 1965 (20 U.S.C. 951 et seq.) is amended

8 to read as follows:

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

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

11 ‘National Foundation on the Arts and the Humanities Act

12 of 1965’.

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

14 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.

‘‘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.
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‘‘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

18 support to the other great branches of scholarly and

19 cultural activity in order to achieve a better under-
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1 standing of the past, a better analysis of the

2 present, and a better view of the future;

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

4 the humanities and the access of all citizens of the

5 United States to the arts and the humanities, in

6 partnership with local, State, regional, and private

7 agencies, organizations, and individuals;

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

9 described in paragraph (4), to be sensitive to the na10 ture of public support and the need to use public

11 funding in a manner that recognizes the responsibil12 ity of the Federal Government to the public good;

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

14 Federal Government ultimately serve the public pur15 poses the Congress defines and are subject to the

16 conditions that traditionally govern the use of public

17 money;

18 ‘‘(7) to ensure that—

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

20 humanities reflects the high place accorded by

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

22 rich cultural heritage; and

23 ‘‘(B) public funding of the arts and the hu24 manities contributes to public support for and

25 confidence in the use of taxpayer funds;
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1 ‘‘(8)(A) to support the practice of art and the

2 study of the humanities, which require constant

3 dedication and devotion; and

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

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

6 sustain not only a climate encouraging freedom of

7 thought, imagination, and inquiry, but also the ma8 terial conditions facilitating the release of creative

9 talent;

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

11 receive in school, background and preparation in the

12 arts and the humanities to enable the students to

13 recognize and appreciate the aesthetic dimensions of

14 their lives, the cultural heritage of the United

15 States, and the full potential of artistic and scholarly

16 expression; and

17 ‘‘(B) to increase access to the arts and the hu18 manities for all persons in the United States, includ19 ing diverse cultures and urban and rural popu20 lations, by—

21 ‘‘(i) encouraging and developing quality

22 education in the arts and the humanities at all

23 levels, in conjunction with programs of lifelong

24 learning in the arts and the humanities for all

25 age groups and with formal systems of elemen-
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1 tary, secondary, and postsecondary education;

2 and

3 ‘‘(ii) encouraging and facilitating the work

4 of scholars, artists, arts institutions, and Fed5 eral, State, regional, and local agencies in the

6 area of education in the arts and the human7 ities.

8 ‘‘SEC. 3. DEFINITIONS.

9 ‘‘As used in this Act:

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

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

12 music, opera, theater, and visual arts;

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

14 the diverse peoples of the United States; and

15 ‘‘(C) the presentation, performance, execu16 tion, exhibition, and study of the arts described

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

18 the arts through apprenticeships, internships,

19 and other career oriented work-study experi20 ences for artists and art teachers, and

21 residencies for artists at all educational levels.

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

23 a contract, and a cooperative agreement.

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

25 State or other public agency, and any nonprofit or-
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1 ganization in the United States, whether or not in2 corporated.

3 ‘‘(4) HUMANITIES.—The term ‘humanities’ in4 cludes—

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

6 ‘‘(i) language, both modern and classi7 cal, linguistics, literature, history, jurispru8 dence, philosophy, archaeology, compara9 tive religion, and ethics;

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

11 of the arts;

12 ‘‘(iii) folklore and folklife; and

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

14 that have humanistic content and employ

15 humanistic methods; and

16 ‘‘(B) the study and application of the hu17 manities described in subparagraph (A) to the

18 human environment with particular attention

19 to—

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

21 and history of the United States; and

22 ‘‘(ii) the relevance of the humanities

23 described in subparagraph (A) to the con24 ditions of national life.

25 ‘‘(5) PROGRAM INCOME.—
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1 ‘‘(A) IN GENERAL.—The term ‘program

2 income’ means any money that is earned or re3 ceived, by a recipient of a grant made under

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

5 funds made available through the grant or from

6 a product resulting from or related to an activ7 ity carried out under the grant.

8 ‘‘(B) TYPES OF INCOME.—The term in9 cludes—

10 ‘‘(i) income from a fee for service per11 formed, or from the sale of an item cre12 ated, under the grant;

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

14 product related to an activity carried out

15 under the grant;

16 ‘‘(iii) a usage or rental fee for equip17 ment or property acquired under the grant;

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

19 carried out under the grant;

20 ‘‘(v) income from a broadcast or dis21 tribution right for such an activity; and

22 ‘‘(vi) a royalty on a patent or copy23 right for such an activity.
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1 ‘‘(6) REGIONAL GROUP.—The term ‘regional

2 group’ means any multistate group, whether or not

3 representative of contiguous States.

4 ‘‘(7) STATE.—The term ‘State’ includes, in ad5 dition to the several States of the United States, the

6 Commonwealth of Puerto Rico, the District of Co7 lumbia, Guam, American Samoa, the Commonwealth

8 of the Northern Mariana Islands, and the Virgin Is9 lands.

10 ‘‘TITLE I—NATIONAL FOUNDA11 TION ON THE ARTS AND THE

12 HUMANITIES

13 ‘‘SEC. 101. ESTABLISHMENT OF THE NATIONAL FOUNDA14 TION ON THE ARTS AND THE HUMANITIES.

15 ‘‘(a) ESTABLISHMENT.—There is established a Na16 tional Foundation on the Arts and the Humanities (re17 ferred to in this Act as the ‘Foundation’), which shall be

18 composed of a National Endowment for the Arts, a Na19 tional Endowment for the Humanities (each of which may

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

21 Institute of Museum and Library Services.

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

23 shall be to develop and promote a national policy of sup24 port for the arts and the humanities in the United States.
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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,

16 AND DEVISES.—Except as provided in paragraph

17 (3), unless the Chairpersons of the Endowments

18 agree otherwise, the money or property shall be

19 deemed to have been donated, bequeathed, or de20 vised 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 Foun24 dation with a condition or restriction, such money or

25 property shall be deemed to have been donated, be-
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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

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

6 any money or other property donated, bequeathed, or de7 vised to the Foundation or one of the Endowments and

8 received by the Chairperson of an Endowment pursuant

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

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

11 use of the 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

19 the National Endowment for the Arts and the National

20 Endowment for the Humanities. The Office shall be head21 ed by 1 Inspector General appointed in accordance with

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

23 Inspector General shall carry out the duties prescribed in

24 such Act, including conducting appropriate reviews to en25 sure that recipients of grants under titles II and III com-
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1 ply with the applicable regulations and procedures estab2 lished under this Act, including regulations relating to ac3 counting and financial matters.

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

5 National Endowment for the Arts and the National En6 dowment for the Humanities shall report—

7 ‘‘(1) to the Chairperson of the National Endow8 ment for the Arts with respect to matters relating

9 to 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 Chairperson of the National Endow13 ment for the Humanities.

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

15 National Endowment for the Arts and Chairperson of the

16 National 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
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1 Endowment for the Arts and the Chairperson of the Na2 tional Endowment for the Humanities shall jointly prepare

3 and submit to the appropriate committees of Congress a

4 report containing a plan that describes the manner in

5 which the Chairpersons will jointly carry out the functions

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

7 such date of enactment, the Chairpersons shall implement

8 the plan.

9 ‘‘SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

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

11 ‘‘(1) IN GENERAL.—

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

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

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

15 be appropriated to the National Endowment for

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

17 $136,910,000 for fiscal year 1997,

18 $134,270,000 for fiscal year 1998,

19 $131,500,000 for fiscal year 1999, and

20 $128,870,000 for fiscal year 2000.

21 ‘‘(B) RESERVATION FOR PARTNERSHIP

22 GRANTS.—40 percent of the amount appro23 priated for a fiscal year under subparagraph

24 (A) shall be reserved for making grants under

25 section 202(c).
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1 ‘‘(C) RESERVATION FOR NATIONAL SIG2 NIFICANCE GRANTS.—40 percent of the amount

3 appropriated for a fiscal year under subpara4 graph (A) shall be reserved for making grants

5 under section 202(d).

6 ‘‘(D) RESERVATION FOR DIRECT

7 GRANTS.—20 percent of the amount appro8 priated for a fiscal year under subparagraph

9 (A) shall be reserved for making grants under

10 section 202(e).

11 ‘‘(2) APPROPRIATIONS BASED ON DONA12 TIONS.—There are authorized to be appropriated to

13 the National Endowment for the Arts for each of fis14 cal years 1996 through 2000, an additional amount,

15 equal to the sum of—

16 ‘‘(A) the total amounts received by the Na17 tional Endowment for the Arts under section

18 207(a)(2), including the value of property do19 nated, bequeathed, or devised to the National

20 Endowment for the Arts, and any interest

21 earned on the amounts, for use in carrying out

22 projects and other activities under title II; and

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

24 grant recipients under title II from non-Federal

25 sources, including the value of property do-
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1 nated, bequeathed, or devised to such recipi2 ents, for use in making grants to carry out

3 projects and other activities under title II;

4 except that the amounts so appropriated to the Na5 tional Endowment for the Arts shall not exceed

6 $10,000,000 for fiscal year 1996 and such sums as

7 may be necessary for each of fiscal years 1997

8 through 2000.

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

10 issue guidelines to implement the provisions of para11 graph (2). Such guidelines shall be consistent with

12 the requirements of title II, regarding the Federal

13 share of the cost of activities carried out under title

14 II.

15 ‘‘(4) SUMS REMAINING AVAILABLE.—Sums ap16 propriated pursuant to paragraph (1) or (2) for any

17 fiscal year shall remain available for obligation until

18 expended.

19 ‘‘(5) TOTAL AUTHORIZATION.—There are au20 thorized to be appropriated to carry out the activi21 ties of the National Endowment for the Arts under

22 this Act, including amounts described in paragraph

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

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

25 $152,470,000 for fiscal year 1998, $149,430,000 for
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1 fiscal year 1999, and $146,440,000 for fiscal year

2 2000.

3 ‘‘(b) NATIONAL ENDOWMENT FOR THE HUMAN4 ITIES.—

5 ‘‘(1) IN GENERAL.—

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

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

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

9 be appropriated to the National Endowment for

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

11 1996, $145,370,000 for fiscal year 1997,

12 $142,470,000 for fiscal year 1998,

13 $139,620,000 for fiscal year 1999, and

14 $136,820,000 for fiscal year 2000.

15 ‘‘(B) RESERVATION FOR PARTNERSHIP

16 GRANTS.—25 percent of the amount appro17 priated for a fiscal year under subparagraph

18 (A) shall be reserved for making grants under

19 section 302(c).

20 ‘‘(C) RESERVATION FOR NATIONAL

21 GRANTS.—37.5 percent of the amount appro22 priated for a fiscal year under subparagraph

23 (A) shall be reserved for making grants under

24 section 302(d).
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1 ‘‘(D) RESERVATION FOR RESEARCH AND

2 SCHOLARSHIP GRANTS.—37.5 percent of the

3 amount appropriated for a fiscal year under

4 subparagraph (A) shall be reserved for making

5 grants under section 302(e).

6 ‘‘(2) APPROPRIATIONS BASED ON DONA7 TIONS.—There are authorized to be appropriated to

8 the National Endowment for the Humanities for

9 each of fiscal years 1996 through 2000, an addi10 tional amount equal to the sum of—

11 ‘‘(A) the total amounts received by the Na12 tional Endowment for the Humanities under

13 section 307(a)(2), including the value of prop14 erty donated, bequeathed, or devised to the Na15 tional Endowment for the Humanities, and any

16 interest earned on the amounts, for use in car17 rying out activities under title III; and

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

19 grant recipients under title III from non-Fed20 eral sources, including the value of property do21 nated, bequeathed, or devised to such recipi22 ents, for use in carrying out activities under

23 title III;

24 except that the amounts so appropriated to the Na25 tional Endowment for the Humanities shall not ex-
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1 ceed $10,000,000 for fiscal year 1996 and such

2 sums as may be necessary for each of fiscal years

3 1997 through 2000.

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

5 issue guidelines to implement the provisions of para6 graph (2). Such guidelines shall be consistent with

7 the requirements of title III, regarding the Federal

8 share of the cost of activities carried out under title

9 III.

10 ‘‘(4) SUMS REMAINING AVAILABLE.—Sums ap11 propriated pursuant to paragraph (1) or (2) for any

12 fiscal year shall remain available for obligation until

13 expended.

14 ‘‘(5) TOTAL AUTHORIZATION.—There are au15 thorized to be appropriated to carry out the activi16 ties of the National Endowment for the Humanities

17 under this Act, including amounts described in para18 graph (1) or (2), or in subsection (c)(2),

19 $168,560,000 for fiscal year 1996, $165,190,000 for

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

21 $158,660,000 for fiscal year 1999, and

22 $155,490,000 for fiscal year 2000.

23 ‘‘(c) ADMINISTRATION.—

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

25 Not more than 12 percent of the amount appro-
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1 priated for a fiscal year under subsection (a)(5) may

2 be made available for the costs of administering title

3 II, or any other program for which the Chairperson

4 of the National Endowment for the Arts is respon5 sible, of which—

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

7 made available for the President’s Committee

8 on the Arts and the Humanities, none of which

9 may be used to reimburse members of the Com10 mittee for travel and related expenses; and

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

12 available for fiscal year 1996 from amounts re13 ceived under section 207(a)(2) for official re14 ception and representation expenses and not to

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

16 subsequent fiscal year from such amounts for

17 such expenses.

18 ‘‘(2) NATIONAL ENDOWMENT FOR THE HUMAN19 ITIES.—Not more than 12 percent of the amount

20 appropriated for a fiscal year under subsection

21 (b)(5) may be made available for the costs of admin22 istering title III, or any other program for which the

23 Chairperson of the National Endowment for the Hu24 manities is responsible, of which—
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1 ‘‘(A) not more than $100,000 shall be

2 made available for the President’s Committee

3 on the Arts and the Humanities, none of which

4 may be used to reimburse members of the Com5 mittee for travel and related expenses; and

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

7 available for fiscal year 1996 from amounts re8 ceived under section 307(a)(2) for official re9 ception and representation expenses and not to

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

11 subsequent fiscal year from such amounts for

12 such expenses.

13 ‘‘TITLE II—NATIONAL

14 ENDOWMENT FOR THE ARTS

15 ‘‘SEC. 201. DEFINITIONS.

16 ‘‘As used in this title:

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

18 term ‘developing arts organization’ means a local

19 arts organization of high artistic promise that—

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

21 arts programming in a community; and

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

23 access to the arts in rural and inner city areas

24 and other artistically underserved areas.
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1 ‘‘(2) FINAL JUDGMENT.—The term ‘final judg2 ment’ means a judgment that is either—

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

4 has authority to review such judgment; or

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

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

7 arts agency’ means a community organization, or an

8 agency of local government, that primarily provides

9 financial support, services, or other programs for

10 artists and arts organizations, for the benefit of the

11 community as a whole.

12 ‘‘(4) OBSCENE; DETERMINED TO BE OB13 SCENE.—

14 ‘‘(A) OBSCENE.—The term ‘obscene’

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

16 workshop that—

17 ‘‘(i) the average person, applying con18 temporary community standards, would

19 find that such project, production, or work20 shop, when taken as a whole, appeals to

21 the prurient interest;

22 ‘‘(ii) such project, production, or

23 workshop depicts or describes sexual con24 duct in a patently offensive way; and
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1 ‘‘(iii) such project, production, or

2 workshop, when taken as a whole, lacks se3 rious literary, artistic, political or scientific

4 value.

5 ‘‘(B) DETERMINED TO BE OBSCENE.—The

6 term ‘determined to be obscene’ means deter7 mined, in a final judgment of a court of record

8 and of competent jurisdiction in the United

9 States, to be obscene.

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

11 means any activity involving the execution or ren12 dition of the arts and meeting such standards as

13 may be approved by the Chairperson of the Endow14 ment.

15 ‘‘(6) PROJECT.—

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

17 means a program organized to carry out the ob18 jectives of this Act, including a program to fos19 ter United States artistic creativity, to commis20 sion a work of art, or to develop and enhance

21 the widest public access, knowledge, and under22 standing of the arts, and includes, where appro23 priate, rental or purchase of a facility, rental or

24 purchase of land, and acquisition of equipment.
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1 ‘‘(B) RENOVATION OR CONSTRUCTION.—

2 Such term also includes—

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

4 ‘‘(I) the amount of the expendi5 ture of Federal funds for such pur6 pose in the case of any facility does

7 not exceed $250,000; and

8 ‘‘(II) two-thirds of the members

9 of the National Council on the Arts

10 (who are present and voting) rec11 ommend a grant involving an expendi12 ture for such purpose; and

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

14 section 202(d), the construction of a facil15 ity, if—

16 ‘‘(I) such construction is for

17 demonstration purposes or under un18 usual circumstances in which there is

19 no other manner by which to accom20 plish an artistic purpose; and

21 ‘‘(II) two-thirds of the members

22 of the National Council on the Arts

23 (who are present and voting) rec24 ommend a grant involving an expendi25 ture for such purpose.
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1 ‘‘(7) WORKSHOP.—The term ‘workshop’ means

2 a program the primary purpose of which is to en3 courage the artistic development or enjoyment of

4 amateur, student, or other participants.

5 ‘‘SEC. 202. ESTABLISHMENT OF THE NATIONAL ENDOW6 MENT FOR THE ARTS.

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

8 the Foundation a National Endowment for the Arts (re9 ferred to in this title as the ‘Endowment’).

10 ‘‘(b) CHAIRPERSON.—

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

12 headed by a chairperson, to be known as the Chair13 person of the Endowment (referred to in this title as

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

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

16 Senate.

17 ‘‘(2) TERM.—

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

19 the Chairperson shall be 4 years, except that

20 any Chairperson appointed to fill a vacancy

21 shall serve for the remainder of the term for

22 which the predecessor of the Chairperson was

23 appointed. Notwithstanding any other provision

24 of this subparagraph, on the expiration of the

25 term of office of the Chairperson, the Chair-
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1 person shall serve until the successor to the

2 Chairperson is appointed and has qualified.

3 ‘‘(B) REAPPOINTMENT.—The Chairperson

4 shall be eligible for reappointment.

5 ‘‘(c) PARTNERSHIP GRANTS.—

6 ‘‘(1) PURPOSES.—The purpose of this sub7 section is to make grants to States and local and re8 gional groups to establish local arts activities, with

9 particular emphasis on arts education and projects

10 that reach rural and urban underserved commu11 nities.

12 ‘‘(2) GRANTS TO STATES.—

13 ‘‘(A) AUTHORITY.—Using 70 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, shall estab19 lish and carry out a program of basic State

20 grants to assist States—

21 ‘‘(i)(I) in supporting projects, produc22 tions, or workshops that meet the standard

23 of artistic excellence and artistic merit and

24 that fulfill the purposes of this Act; and
26

•S 856 IS

1 ‘‘(II) in developing projects, produc2 tions, or workshops that will furnish pro3 grams, facilities, and services in the arts to

4 people and communities in each of the

5 States; and

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

7 ‘‘(I) stimulate artistic activity

8 and awareness, and broadening public

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

10 and other areas that are underserved

11 artistically;

12 ‘‘(II) enhance the artistic capa13 bilities of developing arts organiza14 tions through artistic, programmatic,

15 and staff development; or

16 ‘‘(III) provide technical assist17 ance to developing arts organizations

18 to improve managerial and organiza19 tional skills, financial systems man20 agement, and long-range fiscal plan21 ning.

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

23 grant under this paragraph for any fiscal year,

24 a State shall submit an application described in

25 section 203 for such grant at such time and in
27

•S 856 IS

1 such manner as shall be specified by the Chair2 person and accompany such application with a

3 State plan that the Chairperson finds—

4 ‘‘(i) designates or provides for the es5 tablishment of a State agency (referred to

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

7 sole agency for the administration of the

8 State plan;

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

10 State under this paragraph will be ex11 pended solely on projects, productions, or

12 workshops described in subparagraph (A)

13 and approved by the State agency;

14 ‘‘(iii) provides that the State agency

15 will make such reports, in such manner

16 and containing such information, as the

17 Chairperson may from time to time re18 quire, including a description of the

19 progress made toward achieving the objec20 tives of the State plan;

21 ‘‘(iv) provides—

22 ‘‘(I) an assurance that the State

23 agency has held, after reasonable no24 tice, public meetings in the State to

25 allow groups of artists, interested or-
28

•S 856 IS

1 ganizations, and the public to present

2 views and make recommendations re3 garding the State plan; and

4 ‘‘(II) a summary of such rec5 ommendations and the response of the

6 State agency to such recommenda7 tions; and

8 ‘‘(v) contains—

9 ‘‘(I) for the most recent preced10 ing year for which information is

11 available, a description of the level of

12 participation by artists, artists’ orga13 nizations, and arts organizations in

14 projects, productions, or workshops

15 supported by funding from the State

16 agency under this paragraph, and a

17 description of the extent to which

18 projects, productions, or workshops

19 supported by funding from the State

20 agency under this paragraph were

21 available to all people and commu22 nities in the State; and

23 ‘‘(II) a description of projects,

24 productions, or workshops supported

25 by funding from the State agency
29

•S 856 IS

1 under this paragraph that exist or are

2 being developed to secure wider par3 ticipation of artists, artists’ organiza4 tions, and arts organizations described

5 in subclause (I) or that address the

6 availability of the arts to all people or

7 communities described in subclause

8 (I).

9 ‘‘(C) APPROVAL.—The Chairperson may

10 not approve an application described in sub11 paragraph (B) unless the accompanying State

12 plan satisfies the requirements specified in sub13 paragraph (B).

14 ‘‘(D) ALLOTMENTS.—

15 ‘‘(i) IN GENERAL.—Of the sums avail16 able to carry out this paragraph for any

17 fiscal year, each State that has an applica18 tion approved by the Chairperson shall be

19 allotted at least $200,000.

20 ‘‘(ii) INSUFFICIENT FUNDS.—If the

21 sums available to carry out this paragraph

22 for any fiscal year are insufficient to make

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

24 sums shall be allotted so that each such

25 State receives an equal amount.
30

•S 856 IS

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

2 which the sums available to carry out this

3 paragraph for any fiscal year are in excess

4 of the amount required to make the allot5 ments under clause (i)—

6 ‘‘(I) the amount of such excess

7 that is not greater than 25 percent of

8 the sums available to carry out this

9 paragraph for such fiscal year shall be

10 available to the Chairperson for mak11 ing grants under this paragraph to

12 States and, in accordance with sub13 paragraph (H), regional groups; and

14 ‘‘(II) the amount of such excess

15 for such fiscal year, if any, that re16 mains after reserving in full for the

17 Chairperson the amount required

18 under subclause (I) shall be allotted

19 so that each State that has an appli20 cation approved by the Chair receives

21 an in equal amount;

22 but in no event shall any State be allotted

23 less than $200,000 under this paragraph.

24 ‘‘(E) FEDERAL SHARE.—
31

•S 856 IS

1 ‘‘(i) IN GENERAL.—Funding provided

2 through a grant made under this para3 graph to a State for any fiscal year shall

4 be available to each State that has an ap5 plication approved by the Chairperson, and

6 has the State plan accompanying the appli7 cation in effect on the first day of such fis8 cal year, to pay not more than 50 percent

9 of the total cost of carrying out any activ10 ity described in subparagraph (A).

11 ‘‘(ii) EXCESS PORTION.—Except as

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

13 funding provided through any grant made

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

15 any fiscal year that exceeds $125,000 shall

16 be available, at the discretion of the Chair17 person, to pay not more than 100 percent

18 of such cost of carrying out an activity

19 under this paragraph if such activity would

20 be unavailable to the residents of the State

21 without such portion.

22 ‘‘(iii) PERCENTAGE OF GRANT

23 FUNDS.—The portion of the funding de24 scribed in clause (ii) for any fiscal year

25 that is available to pay not more than 100
32

•S 856 IS

1 percent of such cost, as described in clause

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

3 funding provided through such grant for

4 such fiscal year.

5 ‘‘(F) PROHIBITION ON SUPPLANTING NON6 FEDERAL FUNDS.—Funds made available under

7 this paragraph shall be used to supplement, and

8 shall not supplant, non-Federal funds expended

9 for supporting activities described in subpara10 graph (A).

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

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

13 for any fiscal year that is not obligated by the

14 State earlier than 60 days prior to the end of

15 the fiscal year for which the amount is appro16 priated shall be available for making grants to

17 regional groups.

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

19 this paragraph (other than subparagraph (D))

20 shall apply to regional groups receiving grants

21 under this paragraph in such manner, and to

22 such extent, as the Chairperson shall by regula23 tion prescribe.

24 ‘‘(I) DEFINITION.—As used in subpara25 graph (D)(iii)(II) and notwithstanding section
33

•S 856 IS

1 3(7), the term ‘State’ includes, in addition to

2 the several States of the United States, only the

3 jurisdictions specified in such section that have

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

5 the latest decennial census.

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

7 ARTS THROUGH SUPPORT OF EDUCATION, AND EX8 PANSION AND ADVANCEMENT OF THE ARTS.—

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

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

11 and such portion of any funds made available

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

13 the Chairperson, acting on the recommendation

14 of the National Council on the Arts, may estab15 lish and carry out a program of grants to

16 States, arts agencies, or other local or regional

17 groups, in order to foster and encourage excep18 tional talent, public knowledge, understanding,

19 and appreciation of the arts, and to support the

20 education, training, and development of the art21 ists of the United States, by paying for the

22 Federal share of the cost of carrying out

23 projects, productions, and workshops that

24 will—
34

•S 856 IS

1 ‘‘(i) promote and improve the avail2 ability of arts instruction, and improve the

3 quality of arts education, through support

4 of lifelong learning in the arts;

5 ‘‘(ii) enhance the quality of arts in6 struction in programs of teacher education;

7 ‘‘(iii) develop arts faculty resources

8 and talents;

9 ‘‘(iv) support and encourage the devel10 opment of improved curriculum materials

11 in the arts;

12 ‘‘(v) improve evaluation and assess13 ment of education in the arts programs

14 and instruction;

15 ‘‘(vi) foster cooperative programs with

16 the Department of Education and other

17 Federal agencies and encourage partner18 ships among arts and education agencies

19 and organizations at State and local levels

20 as well as among arts organizations, busi21 nesses, and educational and cultural insti22 tutions;

23 ‘‘(vii) support apprenticeships, intern24 ships, and other career oriented work-study

25 experiences for artists and arts teachers,
35

•S 856 IS

1 and encourage residencies of artists at all

2 educational levels;

3 ‘‘(viii) support the use of technology

4 and improved facilities and resources in

5 education in the arts programs at all lev6 els;

7 ‘‘(ix) foster the development of dem8 onstration projects, demonstration produc9 tions, demonstration workshops, and dem10 onstration programs in arts education and

11 collect, and make available to the public,

12 information on their implementation and

13 effectiveness; and

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

15 local level.

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

17 grant under this paragraph for any fiscal year,

18 a State, agency, or group shall submit an appli19 cation described in section 203 for such grant

20 at such time, in such manner, and accompanies

21 by such information, as shall be specified by the

22 Chairperson.

23 ‘‘(C) FEDERAL SHARE.—Grants made

24 under this paragraph shall be subject to the re25 quirements of paragraph (2)(E), in the same
36

•S 856 IS

1 manner and to the same extent as grants made

2 under paragraph (2)(D).

3 ‘‘(d) NATIONAL SIGNIFICANCE GRANTS.—

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

5 is to make grants to groups, including regional

6 groups, of demonstrated and substantial artistic and

7 cultural importance, for projects, productions, and

8 workshops that will increase the access of all the

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

10 and culture of the United States.

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

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

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

14 appropriate, the Chairperson, acting on the rec15 ommendation of the National Council on the Arts,

16 may establish and carry out a program of grants to

17 groups who meet the standard of artistic excellence

18 and artistic merit and who are engaged in or con19 cerned with the arts, for the purpose of paying for

20 the Federal share of the cost of—

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

22 support projects, productions, or workshops de23 scribed in paragraph (3) that will have a na24 tional, regional, or otherwise substantial artistic

25 or cultural impact; or
37

•S 856 IS

1 ‘‘(B) providing administrative and manage2 ment improvements for the groups, particularly

3 in the field of long-range financial planning, in4 cluding increasing levels of community support

5 and the range of contributors to the programs

6 of such groups.

7 ‘‘(3) PROJECTS, PRODUCTIONS, AND WORK8 SHOPS.—

9 ‘‘(A) REQUIRED ELEMENTS.—Each such

10 project, production, or workshop shall—

11 ‘‘(i) have substantial national or re12 gional cultural significance, and encourage

13 professional excellence; or

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

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

16 workshop that, if such a group did not re17 ceive a grant, might otherwise be unavail18 able to citizens for geographic or economic

19 reasons.

20 ‘‘(B) PERMISSIBLE ELEMENTS.—Each

21 such project, production, or workshop may—

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

23 and knowledge, understanding, enjoyment,

24 and appreciation of, the arts by the public;
38

•S 856 IS

1 ‘‘(ii) enhance managerial and organi2 zational skills and capabilities;

3 ‘‘(iii) use technology to broaden public

4 access to the arts;

5 ‘‘(iv) expand access to the arts for in6 dividuals with disabilities; or

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

8 minority or underserved populations.

9 ‘‘(4) FEDERAL SHARE REQUIREMENT.—

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

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

12 grant made under this subsection, the Federal

13 share described in paragraph (2) shall be 25

14 percent.

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

16 any grant made under this subsection to a

17 group with an annual budget in excess of

18 $3,000,000, the Federal share described in

19 paragraph (2) shall be 16.67 percent.

20 ‘‘(C) ADJUSTMENTS.—The Chairperson

21 may increase the Federal share applicable

22 under this subsection for a designated grant re23 cipient, with review by the National Council on

24 the Arts. The Chairperson shall not increase

25 the Federal share above 50 percent for the re-
39

•S 856 IS

1 cipient. Not more than 10 percent of the funds

2 made available by the Endowment for grants

3 under this subsection for any fiscal year may be

4 available for grants for the fiscal year for which

5 the Chairperson increases the applicable Fed6 eral share.

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

8 subsection, the Chairperson shall give priority to

9 projects, productions, and workshops that increase

10 the access of the public of the United States to cul11 ture and the arts, including access by touring, by re12 gional or national dissemination, or by geographic

13 dispersion.

14 ‘‘(e) DIRECT GRANTS.—

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

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

17 are broadly representative of the cultural heritage of

18 the United States and broadly geographically rep19 resentative, for projects, productions, and workshops

20 of the highest artistic excellence and artistic merit.

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

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

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

24 appropriate, the Chairperson, acting on the rec25 ommendation of the National Council on the Arts,
40

•S 856 IS

1 may establish and carry out a program of grants to

2 groups, or individuals who meet the standard of ar3 tistic excellence and artistic merit and who are en4 gaged in or concerned with the arts, to pay for the

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

6 workshops that meet the standard of artistic excel7 lence and artistic merit and that fulfill the purposes

8 of this Act.

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

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

11 percent.

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

13 subsection, the Chairperson shall give priority to

14 projects, productions, and workshops that will be

15 disseminated widely after completion.

16 ‘‘(5) ADJUSTMENTS.—The Chairperson may in17 crease the Federal share applicable under this sub18 section for a designated grant recipient, with review

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

20 20 percent of the funds made available by the En21 dowment for grants under this subsection for any

22 fiscal year may be available for grants for the fiscal

23 year for which the Chairperson increases the appli24 cable Federal share.
41

•S 856 IS

1 ‘‘SEC. 203. APPLICATION PROCEDURES.

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

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

4 submits an application to the Chairperson in accordance

5 with regulations and procedures established by the Chair6 person.

7 ‘‘(b) PROCEDURES.—

8 ‘‘(1) IN GENERAL.—

9 ‘‘(A) CONSIDERATIONS.—In establishing

10 such regulations and procedures for applica11 tions, the Chairperson shall ensure that—

12 ‘‘(i) artistic excellence and artistic

13 merit of the projects, productions, and

14 workshops described in the application are

15 the criteria by which the applications are

16 judged by advisory panels described in sec17 tion 204, taking into consideration general

18 standards of decency and respect for the

19 diverse beliefs and values of the public of

20 the United States;

21 ‘‘(ii) in selecting groups as recipients

22 of grants under section 202(d), the Chair23 person shall give particular regard to artis24 tically underserved areas and artists and

25 artistic groups that have traditionally been

26 underrepresented; and
42

•S 856 IS

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

2 workshops described in the applications,

3 and awards of grants under this title, are

4 consistent with the objectives of section

5 202 and this section.

6 ‘‘(B) OBSCENITY PROVISIONS.—Such regu7 lations and procedures shall clearly indicate

8 that obscenity is without artistic merit, is not

9 protected speech, and shall not be funded under

10 this title. Projects, productions, and workshops

11 that are determined to be obscene shall be pro12 hibited from receiving grants under this title

13 from the Endowment.

14 ‘‘(2) CONSIDERATIONS FOR THE CHAIR15 PERSON.—In considering an application for a grant

16 under this title, the Chairperson shall consider the

17 extent to which the projects, productions, and work18 shops described in the application fulfill the pur19 poses of this Act, as well as their artistic excellence

20 and artistic merit, as determined by the Chair21 person.

22 ‘‘(3) CONSTRUCTION.—The disapproval or ap23 proval by the Chairperson of an application for a

24 grant under this title shall not be construed to

25 mean, and shall not be considered to be evidence
43

•S 856 IS

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

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

3 ‘‘SEC. 204. ADVISORY PANELS.

4 ‘‘(a) IN GENERAL.—The Chairperson shall utilize re5 view by advisory panels—

6 ‘‘(1) as the first step in the review of applica7 tions submitted under this Act; and

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

9 Council on the Arts in all cases involving requests

10 for grants authorized under this title, except cases

11 in which the Chairperson exercises authority dele12 gated under section 205(f)(2).

13 ‘‘(b) PROCEDURES.—

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

15 such panels shall recommend applications for

16 projects, productions, and workshops on the basis of

17 artistic excellence and artistic merit, consistent with

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

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

20 only general ranges of funding to be provided

21 through the grants and may not recommend specific

22 amounts of such funding.

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

24 Chairperson shall issue regulations and establish

25 procedures to—
44

•S 856 IS

1 ‘‘(A) ensure that all the panels are com2 posed, to the extent practicable, of individuals

3 providing a wide geographic, ethnic, and minor4 ity representation as well as individuals reflect5 ing diverse artistic and cultural points of view;

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

7 least 2 members representing lay individuals

8 who are—

9 ‘‘(i) knowledgeable about the arts;

10 ‘‘(ii) not engaged in the arts as a pro11 fession; and

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

13 organizations or arts organizations;

14 ‘‘(C) ensure that, when feasible, the proce15 dures used by the panels to carry out their re16 sponsibilities are standardized;

17 ‘‘(D) require each such panel—

18 ‘‘(i) to create written records summa19 rizing—

20 ‘‘(I) all meetings and discussions

21 of such panel; and

22 ‘‘(II) the recommendations made

23 by such panel to the Council; and

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

25 the public in a manner that protects the
45

•S 856 IS

1 privacy of individual applicants and panel

2 members;

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

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

5 deliver a written report on the work being re6 viewed, in order to assist panelists in making

7 their recommendations;

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

9 each such panel change substantially from year

10 to year; and

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

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

13 no 2 of which may be consecutive; and

14 ‘‘(G) ensure that the panels recommend

15 more applicants for grants than are anticipated

16 can be provided funding through the grants

17 with available funds.

18 ‘‘(4) PROHIBITION ON CONFLICTS OF INTER19 EST.—

20 ‘‘(A) IN GENERAL.—In making appoint21 ments to the panels, the Chairperson shall en22 sure that an individual who has a pending ap23 plication for a grant authorized under this title,

24 or who is an employee or agent of an organiza25 tion with such a pending application, or who
46

•S 856 IS

1 has a direct or indirect financial interest in any

2 application under consideration by such a panel,

3 does not serve as a member of any panel before

4 which such application is pending.

5 ‘‘(B) DURATION.—The prohibition de6 scribed in subparagraph (A) shall commence

7 with respect to such individual beginning on the

8 date such application is submitted, and shall

9 continue until a final decision on the application

10 has been reached by the Chairperson.

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

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

13 the Endowment a National Council on the Arts (referred

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

15 ‘‘(b) COMPOSITION.—

16 ‘‘(1) IN GENERAL.—The Council shall be com17 posed of the Chairperson of the Endowment, who

18 shall be the Chairperson of the Council, and 20

19 other members appointed by the President, by and

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

21 be selected—

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

23 United States who—
47

•S 856 IS

1 ‘‘(i) are widely recognized for their

2 broad knowledge of, or expertise in, the

3 arts; and

4 ‘‘(ii) have established records of dis5 tinguished service, or achieved eminence, in

6 the arts;

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

8 civic cultural leaders, members of cultural pro9 fessions, and others who are professionally en10 gaged in the arts; and

11 ‘‘(C) so as collectively to provide an appro12 priate distribution of members among the major

13 art fields.

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

15 making such appointments, give consideration to

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

17 submitted to the President by leading national orga18 nizations in the major art fields. In making such ap19 pointments, the President shall give due regard to

20 equitable representation of women, racially and eth21 nically diverse individuals, and individuals with dis22 abilities, who are involved in the arts. Members of

23 the Council shall be appointed so as to represent eq24 uitably geographical areas in the United States.

25 ‘‘(c) TERMS.—
48

•S 856 IS

1 ‘‘(1) IN GENERAL.—

2 ‘‘(A) STAGGERED TERMS.—Each member

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

4 and the terms shall be staggered.

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

6 paragraph (2), the terms of all Council mem7 bers shall expire on the third day of September

8 in the year of expiration.

9 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

10 TERM.—Each member who has served on the

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

12 eligible for reappointment for 1 term of 6 years.

13 ‘‘(D) VACANCY APPOINTMENTS.—Any

14 member appointed to fill a vacancy shall serve

15 for the remainder of the term for which the

16 predecessor of the member was appointed.

17 ‘‘(E) HOLDOVER SERVICE.—Notwithstand18 ing any other provision of this subsection, a

19 member of the Council shall serve after the ex20 piration of the term of the member until the

21 successor to the member takes office.

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

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

24 of 10 members of the Council whose terms
49

•S 856 IS

1 would otherwise expire on September 3, 1996

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

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

4 4 members of the Council to succeed members

5 whose terms are deemed to expire as described

6 in subparagraph (A). The terms of the succes7 sors shall expire on September 3, 2002.

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

9 receive compensation at a rate to be fixed by the Chair10 person but not to exceed the daily equivalent of the maxi11 mum rate authorized for a position above grade GS–15

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

13 United States Code, and be allowed travel expenses includ14 ing per diem in lieu of subsistence, in the same amounts

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

16 of title 5, United States Code, for persons employed inter17 mittently in Federal Government service.

18 ‘‘(e) MEETINGS AND DUTIES.—

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

20 the call of the Chairperson but not less often than

21 twice during each calendar year. Eleven members of

22 the Council shall constitute a quorum. All policy

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

24 ‘‘(2) DUTIES.—The Council shall—
50

•S 856 IS

1 ‘‘(A) advise the Chairperson with respect

2 to policies, programs, and procedures for carry3 ing out the functions of the Chairperson under

4 this title;

5 ‘‘(B) review applications for grants author6 ized under this title and make recommendations

7 to the Chairperson with respect to—

8 ‘‘(i) whether to approve particular ap9 plications for grants authorized under this

10 title that have been determined by advisory

11 panels to have artistic excellence and artis12 tic merit; and

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

14 Chairperson should provide through such a

15 grant with respect to each such application

16 the Council recommends for approval;

17 ‘‘(C) use as criteria for the recommenda18 tions of the Council—

19 ‘‘(i) the extent to which the works de20 scribed in the applications fulfill the pur21 poses of this Act; and

22 ‘‘(ii) the artistic excellence and artistic

23 merit of the works described in the appli24 cations,

25 as determined by each Council member;
51

•S 856 IS

1 ‘‘(D) recommend more applications for

2 funding through grants than are anticipated

3 can be provided funding through the grants

4 with available funds;

5 ‘‘(E) create written records summarizing—

6 ‘‘(i) all meetings and discussions of

7 the Council; and

8 ‘‘(ii) recommendations made by the

9 Council to the Chairperson; and

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

11 public in a manner that protects the privacy of

12 individual applicants for grants authorized

13 under this title, advisory panel members, and

14 Council members.

15 ‘‘(f) ACTIONS BY CHAIRPERSON.—

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

17 approve or disapprove any application for a grant

18 authorized under this title until the Chairperson has

19 received the recommendation of the Council on such

20 application. The Chairperson shall have final author21 ity to approve each such application, and shall deter22 mine the final amount of funding through any grant

23 awarded. The Chairperson may not approve an ap24 plication with respect to which the Council makes a

25 negative recommendation.
52

•S 856 IS

1 ‘‘(2) DELEGATIONS.—In the case of an applica2 tion, or amendment of an application, submitted

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

4 request for change in a grant amount of 20 percent

5 or less, the Chairperson may approve or disapprove

6 such application, amendment, or request, if such ac7 tion is taken pursuant to the terms of an express

8 and direct delegation of authority from the Council

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

10 Chairperson is reported to the Council at the next

11 regularly scheduled meeting of the Council. Such ac12 tion by the Chairperson shall be used with discretion

13 and shall not become a normal practice of providing

14 funding through a grant authorized under this title.

15 The terms of any such delegation of authority shall

16 not permit obligations for expenditure of funds

17 under such delegation for any fiscal year that exceed

18 an amount equal to 2 percent of the sums appro19 priated for the fiscal year pursuant to section

20 104(a)(1).

21 ‘‘SEC. 206. LIMITATIONS ON GRANTS.

22 ‘‘(a) PROHIBITION ON SUBGRANTS.—The Chair23 person shall establish procedures to ensure that no fund24 ing provided through a grant under this title, except a

25 grant made to a State or regional group, may be used
53

•S 856 IS

1 to make a grant to any other organization or individual

2 to conduct activity independent of the direct grant recipi3 ent. Nothing in this subsection shall prohibit payments

4 made in exchange for goods or services rendered.

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

6 grant awarded under this title may be used for seasonal

7 support of a project, production, or workshop.

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

9 AND WORKSHOPS IN SPECIFIED DISCIPLINES.—Each

10 project, production, or workshop funded under this title

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

12 ‘‘(d) LABOR STANDARDS.—

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

14 the receipt of any grant under this title that the

15 grant recipient furnish adequate assurances to the

16 Secretary of Labor that—

17 ‘‘(A) all professional performers and relat18 ed or supporting professional personnel em19 ployed on projects or productions, or in work20 shops, that are financed in whole or in part

21 under this title will be paid, without subsequent

22 deduction or rebate on any account, not less

23 than the minimum compensation as determined

24 by the Secretary of Labor to be the prevailing
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1 minimum compensation for persons employed in

2 similar activities; and

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

4 workshop that is financed in whole or in part

5 under this title will be performed or engaged in

6 under working conditions that are unsanitary or

7 hazardous or dangerous to the health and safe8 ty of the employees engaged in such project,

9 production, or workshop.

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

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

12 production, or workshop described in paragraph

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

14 of compliance with the assurance described in para15 graph (1)(B).

16 ‘‘(3) STANDARDS, REGULATIONS, AND PROCE17 DURES.—The Secretary of Labor shall have the au18 thority to prescribe such standards, regulations, and

19 procedures as the Secretary of Labor may determine

20 to be necessary or appropriate to carry out this sub21 section.

22 ‘‘(e) LIMITATION ON GRANT AWARD.—

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

24 more than 2 grant awards under this title.
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1 ‘‘(2) AGENCIES AND ORGANIZATIONS.—No

2 agency or organization, other than a State council,

3 may receive more than 3 grant awards in a year

4 under this title.

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

6 eligible for a grant under this title if—

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

8 inures to the benefit of any private stockholder, or

9 individual; and

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

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

12 Internal Revenue Code of 1986.

13 ‘‘(g) CITIZENSHIP REQUIREMENTS FOR INDIVID14 UALS.—An individual shall be eligible to receive a direct

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

16 such individual—

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

18 States; or

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

20 States for permanent residence who—

21 ‘‘(A) has filed an application for natu22 ralization in the manner prescribed by section

23 334 of the Immigration and Nationality Act (8

24 U.S.C. 1445); and
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1 ‘‘(B) is not permanently ineligible to be2 come a citizen of the United States.

3 ‘‘(h) INSTALLMENTS.—The Chairperson shall estab4 lish procedures to provide for the distribution of funding

5 provided through grants made under this title to recipients

6 in installments except in exceptional cases in which the

7 Chairperson determines that installments are not prac8 ticable. In providing any such installments to a recipient

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

10 that—

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

12 may be provided at the time the application for the

13 grant is approved; and

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

15 provided until the Chairperson finds that the recipi16 ent of such grant is complying substantially with

17 this Act and with the conditions under which such

18 funding is provided to such recipient.

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

20 under this title shall be made in accordance with terms

21 and conditions approved by the Secretary of the Treasury.

22 ‘‘SEC. 207. ADMINISTRATIVE PROVISIONS.

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

24 to any authorities vested in the Chairperson by other pro-
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1 visions of this Act, the Chairperson, in carrying out the

2 functions of the Chairperson, shall have authority—

3 ‘‘(1) to prescribe such regulations and proce4 dures as the Chairperson determines to be necessary

5 governing the manner in which the functions of the

6 Chairperson shall be carried out;

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

8 use money and other property donated, bequeathed,

9 or devised to the Endowment, either absolutely or in

10 trust, with or without a condition or restriction, in11 cluding a condition that the Chairperson use other

12 funds of the Endowment for the purposes of the do13 nation, bequest, or devise; and

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

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

16 and to use, sell, or otherwise dispose of such prop17 erty, for purposes of carrying out the activities of

18 the Endowment under this title;

19 ‘‘(3) to appoint and determine the compensa20 tion of such employees, subject to title 5, United

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

22 functions of the Chairperson, define their duties,

23 and supervise and direct their activities;

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

25 services of experts and consultants, including panels
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1 of experts, and compensate the experts and consult2 ants in accordance with section 3109 of title 5,

3 United States Code;

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

5 of individuals and reimburse the individuals for trav6 el expenses, including per diem in lieu of subsist7 ence, in the same amounts and to the same extent

8 as authorized under section 5703 of title 5, United

9 States Code, for persons employed intermittently in

10 Federal Government service;

11 ‘‘(6) to make advance, progress, and other pay12 ments without regard to section 3324 of title 331,

13 United States Code;

14 ‘‘(7) to rent office space in the District of Co15 lumbia; and

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

17 ‘‘(b) PUBLICATIONS.—Official publications of the En18 dowment under this title may be supported without regard

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

20 Code, if the Chairperson consults with the Joint Commit21 tee on Printing of the Congress.

22 ‘‘(c) COORDINATION.—The Chairperson shall coordi23 nate the programs of the Endowment, insofar as prac24 ticable, with other Federal programs and programs under25 taken by other public agencies or private groups, and shall
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1 develop the programs of the Endowment with due regard

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

3 be made by other Federal agencies under the existing pro4 grams. The Chairperson may enter into interagency agree5 ments to promote or assist with the arts-related activities

6 of other Federal agencies, on a reimbursable or

7 nonreimbursable basis, and may use funds authorized to

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

9 of such promotion or assistance.

10 ‘‘SEC. 208. REPORTS.

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

12 Chairperson shall submit an annual report to the Presi13 dent for submission to the appropriate committees of Con14 gress on or before the 15th day of April of each year. The

15 report shall summarize the activities of the Endowment

16 for the preceding year, and shall include such rec17 ommendations as the Chairperson determines to be appro18 priate.

19 ‘‘(b) STATE OF THE ARTS REPORT.—

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

21 data submitted with State plans under section

22 202(c), and the information contained in reports

23 submitted by States under section 202(c) or this sec24 tion, to prepare a report on the state of the arts in

25 the United States.
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1 ‘‘(2) CONTENTS.—The state of the arts report

2 shall include a description of—

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

4 Endowment to emerging, rural, and culturally

5 diverse artists, arts organizations, and commu6 nities; and

7 ‘‘(B) the participation by such artists, or8 ganizations, and communities in such programs.

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

10 shall be submitted to the President and Congress,

11 and provided to the States, not later than October

12 1, 1996, and quadrennially thereafter.

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

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

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

16 Chairperson that—

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

18 in the application described in section 203—

19 ‘‘(i) a detailed description of the pro20 posed project, production, or workshop for

21 which the grant is requested;

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

23 such proposed project, production, or

24 workshop; and
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1 ‘‘(iii) an assurance that the applicant

2 will meet the standards of artistic excel3 lence and artistic merit;

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

5 title carry out the proposal consistent with the

6 description contained in the application, as ap7 proved by the Chairperson for funding through

8 the grant; and

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

10 change the activities carried out under the

11 grant justify the requested change by a written

12 request subject to approval by the Chairperson;

13 and

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

15 and comply with requirements to submit to the

16 Chairperson—

17 ‘‘(i) interim reports, including an an18 nual report for each project, production, or

19 workshop carried out under the grant dur20 ing a period exceeding 1 year, describing

21 the progress of the grant recipient in car22 rying out such project, production, or

23 workshop and compliance by the grant re24 cipient with the conditions of receipt of

25 such grant;
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1 ‘‘(ii) financial reports containing such

2 information as the Chairperson determines

3 to be necessary to ensure that the funding

4 made available through the grant is ex5 pended in accordance with the terms and

6 conditions under which the grant is made;

7 ‘‘(iii) a final report describing the

8 project, production, or workshop carried

9 out with the funding provided through the

10 grant and the compliance by the grant re11 cipient with the conditions of receipt of

12 such grant, including the condition that

13 the work assisted meet the standards of

14 artistic excellence and artistic merit; and

15 ‘‘(iv) in the case of a project or pro16 duction, and if practicable, as determined

17 by the Chairperson, a copy of such project

18 or production.

19 ‘‘(2) REPORT REQUIREMENTS.—The Chair20 person shall determine the appropriate form and

21 timing of interim reporting described in paragraph

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

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

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

25 90 days after the end of the period for which such
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1 grant recipient receives funding through the grant or

2 90 days after the completion of the project, produc3 tion, or workshop, whichever occurs earlier. The

4 Chairperson may extend the 90-day period if the re5 cipient shows good cause why such an extension

6 should be granted.

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

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

9 made by the Chairperson under this title. Such evaluation

10 may include an audit to determine the accuracy of the re11 ports required to be submitted by grant recipients under

12 subsection (c).

13 ‘‘(e) REPORTS.—The Chairperson shall establish pro14 cedures to require that no additional funding shall be pro15 vided to a recipient of a grant authorized under this title

16 unless such recipient has submitted to the Chairperson all

17 required interim, financial, and final reports under sub18 section (c).

19 ‘‘SEC. 209. SANCTIONS AND PAYMENTS.

20 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recip21 ient of a grant made under this title, or an indirect recipi22 ent of funding provided through the grant, substantially

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

24 as determined by the Chairperson, the Chairperson may—
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1 ‘‘(1) for purposes of determining whether to

2 make any subsequent funding to the direct or indi3 rect recipient under this title, take into consideration

4 the results of the post-award evaluation conducted

5 under section 208(d);

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

12 following statement: ‘The opinions, findings, conclu13 sions, and recommendations expressed in this publi14 cation do not reflect the views of the National En15 dowment 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

20 an opportunity for hearing, finds that—

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

22 this title, or an indirect recipient of funding

23 provided through the grant, is not complying

24 substantially with the provisions of this title;
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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 terms and

5 conditions of the State plan accompanying the

6 application approved for the grant under this

7 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 de14 scribed in paragraph (1), the Chairperson shall im15 mediately notify the direct recipient, State agency,

16 or regional group that received the funding at issue

17 that—

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

19 under this title to such recipient, agency, or

20 group until there is no longer any default or

21 failure to comply or the diversion is corrected;

22 or

23 ‘‘(B) if compliance or correction is impos24 sible, until such recipient, agency, or group re25 pays or arranges the repayment of the Federal
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1 funds that were improperly diverted or ex2 pended.

3 ‘‘(c) OBSCENE WORKS.—

4 ‘‘(1) DETERMINATION.—If, after providing rea5 sonable notice and opportunity for a hearing on the

6 record, the Chairperson determines that a direct re7 cipient of a grant under this title, or an indirect re8 cipient of funding provided through the grant, used

9 the funding for a project, production, or workshop

10 that is determined to be obscene, the Chairperson

11 shall require that until the direct recipient repays

12 such funding (in such amount, and under such

13 terms and conditions, as the Chairperson determines

14 to be appropriate) to the Endowment, no subsequent

15 funding shall be provided under this title to such re16 cipient.

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

18 subsection to the Endowment shall be deposited in

19 the Treasury of the United States and credited as

20 miscellaneous receipts.

21 ‘‘(3) APPLICATION.—

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

23 apply with respect to grants made before Octo24 ber 1, 1990.
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1 ‘‘(B) DURATION.—This subsection shall

2 not apply with respect to a project, production,

3 or workshop after the expiration of the 7-year

4 period beginning on the latest date on which a

5 grant is made under this title for such project,

6 production, or workshop.

7 ‘‘(d) PROGRAM INCOME.—

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

9 under this title shall pay the amount described in

10 paragraph (2) to the Endowment if the Chairperson

11 finds that the recipient has derived program income

12 from the project, production, or workshop funded

13 that exceeds the lesser of—

14 ‘‘(A) $50,000; or

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

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

paragraph (1) is 1 17 ⁄3 of the amount of the revenue,

18 but not more than the amount of the funding.

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

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

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

22 a special interest bearing account to the credit of the En23 dowment.

24 ‘‘SEC. 210. AWARDS.

25 ‘‘(a) NATIONAL MEDAL OF ARTS.—
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1 ‘‘(1) ESTABLISHMENT.—There is established a

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

3 such design as is determined to be appropriate by

4 the President, on the basis of recommendations sub5 mitted by the National Council on the Arts, and

6 which shall be awarded as provided in this sub7 section.

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

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

10 basis of recommendations from the National Council

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

12 judgment of the President are deserving of special

13 recognition by reason of their outstanding contribu14 tions to the excellence, growth, support, and avail15 ability of the arts in the United States.

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

17 of such medals may be awarded in any calendar

18 year.

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

20 awarded the National Medal of Arts if at the time

21 such award is made such individual meets the re22 quirements of section 206(g).

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

24 National Medal of Arts if such group is organized or

25 incorporated in the United States.
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1 ‘‘(6) CEREMONIES.—The presentation of the

2 National Medal of Arts shall be made by the Presi3 dent with such ceremonies as the President may de4 termine to be appropriate, including attendance by

5 appropriate Members of Congress.

6 ‘‘(b) AWARD FOR DISTINGUISHED LIFETIME SERV7 ICE FOR THE ARTS.—

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

9 Award for Distinguished Lifetime Service for the

10 Arts.

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

12 present the award described in paragraph (1) to

13 each of the former Chairpersons of the Endowment

14 in conjunction with such ceremonies as the Director

15 may determine to be appropriate to celebrate the

16 30th anniversary of the establishment of the Endow17 ment.

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

19 (2) shall be effective during the period beginning on

20 the date of enactment of this section and ending on

21 March 31, 1996.

22 ‘‘(c) FUNDS.—The Chairperson shall use amounts re23 ceived by the National Endowment for the Arts under sec24 tion 207(a)(2) to carry out this section.
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1 ‘‘TITLE III—NATIONAL ENDOW2 MENT FOR THE HUMANITIES

3 ‘‘SEC. 301. DEFINITIONS.

4 ‘‘As used in this title:

5 ‘‘(1) PROJECT.—

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

7 means an activity organized to carry out the ob8 jectives of this title.

9 ‘‘(B) RENOVATION OR CONSTRUCTION.—

10 Such term also includes—

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

12 ‘‘(I) the amount of the expendi13 ture of Federal funds for such pur14 pose in the case of any facility does

15 not exceed $250,000; and

16 ‘‘(II) two-thirds of the members

17 of the National Council on the Hu18 manities (who are present and voting)

19 approve of a grant or contract involv20 ing an expenditure for such purpose;

21 and

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

23 the construction of a facility if—

24 ‘‘(I) such construction is for

25 demonstration purposes or under un-
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1 usual circumstances in which there is

2 no other manner by which to accom3 plish a humanistic purpose; and

4 ‘‘(II) two-thirds of the members

5 of the National Council on the Hu6 manities (who are present and voting)

7 approve of a grant or contract involv8 ing an expenditure for such purpose.

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

10 an activity the primary purpose of which is to pro11 mote scholarship and teaching among the partici12 pants.

13 ‘‘SEC. 302. ESTABLISHMENT OF THE NATIONAL ENDOW14 MENT FOR THE HUMANITIES.

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

16 the Foundation a National Endowment for the Human17 ities (referred to in this title as the ‘Endowment’).

18 ‘‘(b) CHAIRPERSON.—

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

20 headed by a chairperson, to be known as the Chair21 person of the Endowment (referred to in this title as

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

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

24 Senate.

25 ‘‘(2) TERM.—
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1 ‘‘(A) IN GENERAL.—The term of office of

2 the Chairperson shall be 4 years, except that

3 any Chairperson appointed to fill a vacancy

4 shall serve for the remainder of the term for

5 which the predecessor of the Chairperson was

6 appointed. Notwithstanding any other provision

7 of this subparagraph, on the expiration of the

8 term of office of the Chairperson, the Chair9 person shall serve until the successor to the

10 Chairperson is appointed and has qualified.

11 ‘‘(B) REAPPOINTMENT.—The Chairperson

12 shall be eligible for reappointment.

13 ‘‘(c) PARTNERSHIP GRANTS.—

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

15 is to support programs of humanities councils at the

16 State and local levels.

17 ‘‘(2) DEFINITION.—

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

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

20 the term ‘State entity’ means—

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

22 an application submitted under paragraph

23 (4); or

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

25 to submit an application under paragraph
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1 (4), an appropriate entity that obtains ap2 proval of an application submitted under

3 paragraph (5).

4 ‘‘(B) JURISDICTION.—

5 ‘‘(i) STATE ENTITY.—As used in

6 paragraph (6)(C)(ii), the term ‘State en7 tity’ means a State entity, as defined in

8 subparagraph (A), for a State.

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

10 and notwithstanding section 3(7), the term

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

12 States of the United States, only the juris13 dictions specified in such section that have

14 a population of 200,000 or more, according

15 to the latest decennial census.

16 ‘‘(3) GENERAL AUTHORITY.—Using funds re17 served under section 104(b)(1)(B) and such portion

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

19 as may be appropriate, the Chairperson, acting on

20 the recommendation of the National Council on the

21 Humanities, may, in accordance with the provisions

22 of this subsection, establish and carry out a program

23 of grants to assist State entities—

24 ‘‘(A) in paying for not more than 50 per25 cent of the cost (except as otherwise provided in
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•S 856 IS

1 this subsection) of supporting activities that

2 achieve the objectives described in subpara3 graphs (A) through (F) of subsection (d)(2)

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

5 (e)(2); or

6 ‘‘(B) in matching contributions from non7 Federal sources made to a trust fund the pur8 pose of which is to provide long-term financial

9 support for such activities.

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

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

12 grant under this subsection for any fiscal year,

13 if a State desires to designate or to provide for

14 the establishment of a State agency (referred to

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

16 agency for the administration of the State plan

17 referred to in subparagraph (B) relating to the

18 grant, such State shall designate as the State

19 agency the humanities council or shall provide

20 for the establishment of such a council.

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

22 any State that designates or provides for the

23 establishment of a State agency as described in

24 subparagraph (A), the chief executive officer of

25 the State shall submit, before the beginning of
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•S 856 IS

1 each fiscal year, an application for a grant and

2 accompany such application with a State plan

3 that the Chairperson finds—

4 ‘‘(i) designates or provides for the es5 tablishment of a State agency;

6 ‘‘(ii) provides that the chief executive

7 officer of the State will appoint new mem8 bers to the State humanities council des9 ignated or established under subparagraph

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

11 expiration of the terms of members of such

12 council, until the chief executive officer has

13 appointed all of the members of such coun14 cil;

15 ‘‘(iii) provides for the expenditure,

16 from State funds, of an amount equal to

17 50 percent of the portion of the funding

18 received by such State through a grant

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

20 the minimum State allotment), or 25 per21 cent of the total amount of funding re22 ceived by such State through grants made

23 under this subsection, whichever is greater,

24 for the fiscal year involved (except as oth25 erwise provided in paragraph (7));
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1 ‘‘(iv) provides that funds paid to the

2 State under this subsection will be ex3 pended solely on activities, approved by the

4 State agency, that—

5 ‘‘(I) achieve the objectives de6 scribed in subparagraphs (A) through

7 (F) of subsection (d)(2) and subpara8 graphs (A) and (B) of subsection

9 (e)(2); and

10 ‘‘(II) are designed to bring the

11 humanities to the public;

12 ‘‘(v) provides assurances that State

13 funds will be made available for the pur14 pose of meeting the requirements of this

15 subparagraph;

16 ‘‘(vi) 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 ‘‘(vii) provides—

24 ‘‘(I) an assurance that the State

25 agency has held, after reasonable no-
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1 tice, public meetings in the State to

2 allow scholars, interested organiza3 tions, and the public to present views

4 and make recommendations regarding

5 the State plan; and

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

8 the State agency to such recommenda9 tions; and

10 ‘‘(viii) 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 scholars and scholarly

15 organizations in activities supported

16 by funding from the State agency

17 under this subsection and a descrip18 tion of the extent to which the activi19 ties supported by funding from the

20 State agency under this subsection

21 were available to all people and com22 munities in the State; and

23 ‘‘(II) a description of activities

24 supported by funding from the State

25 agency under this subsection that
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1 exist or are being developed to secure

2 wider participation of scholars and

3 scholarly organizations described in

4 subclause (I) or that address the

5 availability of the humanities to all

6 people or communities described in

7 subclause (I).

8 ‘‘(C) APPROVAL.—The Chairperson may

9 not approve an application described in sub10 paragraph (B) unless the accompanying State

11 plan satisfies the requirements specified in sub12 paragraph (B).

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

14 ‘‘(A) DESIGNATION.—In any State in

15 which the chief executive officer of the State

16 fails to submit an application under paragraph

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

18 make grants under paragraph (3) to an appro19 priate entity in the State, and each such entity

20 shall establish a procedure that ensures that 8

21 members of the governing body of such entity

22 shall be appointed by an appropriate officer or

23 agency of such State, except that in no event

may the number of such members exceed 1 24 ⁄3 of

25 the total membership of such governing body.
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1 The officer or agency shall select the members

2 from among individuals who have knowledge of

3 or experience in the humanities.

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

5 fails to submit an application under paragraph

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

7 in the State desiring to receive a grant under

8 this subsection for the fiscal year shall submit

9 an application for such grant at such time and

10 in such manner as shall be specified by the

11 Chairperson, and accompany such application

12 with a State plan that the Chairperson finds—

13 ‘‘(i) provides assurances that such en14 tity will comply with the requirements of

15 subparagraph (A);

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

17 entity under this paragraph will be ex18 pended solely on activities that—

19 ‘‘(I) achieve the objectives de20 scribed in subparagraphs (A) through

21 (F) of subsection (d)(2) and subpara22 graphs (A) and (B) of subsection

23 (e)(2); and

24 ‘‘(II) are designed to bring the

25 humanities to the public;
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1 ‘‘(iii) establishes a membership policy

2 that is designed to ensure broad public

3 representation with respect to activities ad4 ministered by such entity;

5 ‘‘(iv) provides for a nomination proc6 ess that ensures opportunities for nomina7 tion to membership in the governing body

8 from various groups in such State and

9 from a variety of segments of the popu10 lation of such State, including individuals

11 who by reason of their achievement, schol12 arship, or creativity in the humanities, are

13 especially qualified to serve as members of

14 the body;

15 ‘‘(v) provides for a membership rota16 tion process that ensures the regular rota17 tion of the membership and officers of

18 such entity;

19 ‘‘(vi) establishes reporting procedures

20 that are designed to inform the chief exec21 utive officer of such State, and other ap22 propriate officers and agencies, of the ac23 tivities of such entity;
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1 ‘‘(vii) establishes procedures to ensure

2 public access to information relating to

3 such 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, pub13 lic meetings in the State to allow

14 scholars, interested organizations, and

15 the public to present views and make

16 recommendations 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 preced24 ing year for which information is

25 available, a description of the level of
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1 participation by scholars and scholarly

2 organizations in activities supported

3 by funding from the entity under this

4 subsection, and a description of the

5 extent to which activities supported by

6 funding from the entity under this

7 subsection were available to all people

8 and 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 par13 ticipation of scholars and scholarly or14 ganizations described in subclause (I)

15 or that address the availability of the

16 humanities to all people or commu17 nities described in subclause (I).

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

19 not approve an application described in sub20 paragraph (B) unless the accompanying plan

21 satisfies the requirements specified in subpara22 graph (B).

23 ‘‘(6) ALLOTMENTS.—

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

25 to carry out this subsection for any fiscal year,
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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

5 fiscal year are insufficient to make the allot6 ments under subparagraph (A) in full, such

7 sums shall be allotted so that each State entity

8 receives an 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 avail16 able to the Chairperson for making grants

17 under 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
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1 remainder as the population of the State

2 for which the application is approved bears

3 to 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 sub8 section to a State entity for any fiscal year

9 shall be available to each State entity that

10 has an application approved by the Chair11 person, and has the State plan accompany12 ing the application in effect on the first

13 day of such fiscal year, to pay not more

14 than 50 percent of the total cost of carry15 ing out any activity described in paragraph

16 (3).

17 ‘‘(ii) EXCESS PORTION.—Except as

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

19 funding provided through any grant made

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

21 for any fiscal year that exceeds $125,000

22 shall be available, at the discretion of the

23 Chairperson, to pay not more than 100

24 percent of such cost of carrying out an ac25 tivity under this subsection if such activity
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1 would be unavailable to the residents of

2 the State 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 al18 lotted to a State entity under paragraph (6) for any

19 fiscal year that is not obligated by the State entity

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

21 year for which the amount is appropriated shall be

22 available for making grants under subsection (d).

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

24 The Chairperson may not make grants under this

25 subsection to more than 1 entity in any State.
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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 ele8 mentary, secondary, and postsecondary education in

9 the humanities, media projects, projects in museums

10 and by historical organizations, projects in libraries

11 and archives, public humanities projects, endowment

12 building, and technology activities.

13 ‘‘(2) GENERAL AUTHORITY.—Using funds re14 served under section 104(b)(1)(C) and such portion

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

16 as may be appropriate, the Chairperson, acting on

17 the recommendation of the National Council on the

18 Humanities, may establish and carry out a program

19 of grants to groups or, in appropriate cases, individ20 uals who meet the standard of excellence in the hu21 manities and significance in the humanities, or State

22 agencies or entities to pay for the Federal share of

23 the cost of activities to—
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1 ‘‘(A) develop and encourage the pursuit of

2 a national policy to further the public good

3 through public funding of the humanities;

4 ‘‘(B) initiate and support research and

5 programs to strengthen the research and teach6 ing potential of the United States in the hu7 manities;

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

9 the humanities;

10 ‘‘(D) foster education in, and public under11 standing and appreciation of, the humanities;

12 ‘‘(E) support projects that foster or pro13 mote literacy;

14 ‘‘(F) ensure that the benefit of the pro15 grams of the Endowment will also be available

16 to the citizens of the United States where such

17 programs would otherwise be unavailable due to

18 geographic or economic reasons;

19 ‘‘(G) enable cultural organizations and in20 stitutions to increase the levels of continuing

21 support and to increase the range of contribu22 tors to the program of such organizations or in23 stitutions;

24 ‘‘(H) provide administrative and manage25 ment improvements for cultural organizations
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1 and institutions, particularly in the field of

2 long-range financial planning;

3 ‘‘(I) enable cultural organizations and in4 stitutions to increase audience participation in,

5 and appreciation of, programs sponsored by

6 such organizations and institutions;

7 ‘‘(J) develop new sources of long-term sup8 port for educational, scholarly, and public pro9 grams in the humanities, including renovating

10 or constructing facilities, augmenting or estab11 lishing endowment funds, and purchasing cap12 ital equipment to ensure financial stability;

13 ‘‘(K) stimulate greater cooperation among

14 cultural organizations and institutions especially

15 designed to serve better the communities in

16 which such organizations or institutions are lo17 cated; and

18 ‘‘(L) foster greater citizen involvement in

19 planning the cultural development of a commu20 nity.

21 ‘‘(3) FEDERAL SHARE REQUIREMENT.—

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

23 subparagraph (B), the Federal share described

24 in paragraph (2) shall be 50 percent.
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1 ‘‘(B) ADJUSTMENT.—The Federal share of

2 the cost of activities described in paragraph

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

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

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

6 is to encourage the development and dissemination

7 of significant scholarship in the humanities by

8 groups, individuals, and State agencies or entities

9 such as fellowships for college and university faculty

10 and independent scholars, dissertation grants, sum11 mer stipends, and funds for scholarly publications,

12 reference materials, basic research, institutional pro13 grams, and preservation.

14 ‘‘(2) GENERAL AUTHORITY.—Using funds re15 served under section 104(b)(1)(D) and such portion

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

17 as may be appropriate, the Chairperson, acting on

18 the recommendation of the National Council on the

19 Humanities, may establish and carry out a program

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

21 State entities for the purpose of paying for the Fed22 eral share of the cost of—

23 ‘‘(A) initiating and supporting (including

24 supporting through fellowships) training, work25 shops, programs, research, and publications, in
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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 cultural organizations and

9 institutions to increase the levels of continuing

10 support and to increase the range of contribu11 tors to the program of such organizations or in12 stitutions; and

13 ‘‘(D) providing administrative and manage14 ment improvements for cultural organizations

15 and institutions, particularly in the field of

16 long-range financial planning.

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

18 fellowship awarded to an individual under paragraph

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

20 study or research at an appropriate nonprofit insti21 tution selected by the individual, for a stated period

22 of time. The total amount of any grant under para23 graph (2)(A) to any group engaging in workshop ac24 tivities for which an admission or other charge is
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1 made to the general public shall not exceed 30 per2 cent of the total cost of such activities.

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

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

5 under this subsection, the Chairperson shall give

6 particular regard to scholars, and educational and

7 cultural institutions, that traditionally have been

8 underrepresented.

9 ‘‘(5) FEDERAL SHARE.—The Federal share de10 scribed in paragraph (2) shall be 50 percent.

11 ‘‘SEC. 303. APPLICATION PROCEDURES.

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

13 State, group, individual, agency, or organization shall sub14 mit an application to the Chairperson at such time, in

15 such manner, and containing such information as the

16 Chairperson may prescribe.

17 ‘‘SEC. 304. REVIEW PANELS.

18 ‘‘The Chairperson may select panels of experts under

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

20 with respect to the approval of applications for grants au21 thorized under this title. In selecting the panels, the Chair22 person shall appoint individuals who have exhibited exper23 tise and leadership in the field under review, who broadly

24 represent diverse humanistic perspectives and geographic

25 factors, and who broadly represent cultural diversity.
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1 ‘‘SEC. 305. NATIONAL COUNCIL ON THE HUMANITIES.

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

3 the Endowment a National Council on the Humanities (re4 ferred to in this section as the ‘Council’).

5 ‘‘(b) COMPOSITION.—

6 ‘‘(1) IN GENERAL.—The Council shall be com7 posed of the Chairperson of the Endowment, who

8 shall be the Chairperson of the Council, and 20

9 other members appointed by the President, by and

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

11 be selected—

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

13 United States who—

14 ‘‘(i) are recognized for their broad

15 knowledge of, or expertise in, the human16 ities; and

17 ‘‘(ii) have established records of dis18 tinguished service, or achieved eminence, in

19 the humanities;

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

21 who are professionally engaged in the human22 ities; and

23 ‘‘(C) so as collectively to provide an appro24 priate distribution of members among the major

25 humanities fields.
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1 ‘‘(2) QUALIFICATIONS.—The President may, in

2 making such appointments, give consideration to

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

4 submitted to the President by leading national orga5 nizations in the major humanities fields. In making

6 such appointments, the President shall give due re7 gard to equitable representation of women, racially

8 and ethnically diverse individuals, and individuals

9 with disabilities, who are involved in the humanities.

10 Members of the Council shall be appointed so as to

11 represent equitably geographical areas in the United

12 States.

13 ‘‘(c) TERMS.—

14 ‘‘(1) IN GENERAL.—

15 ‘‘(A) STAGGERED TERMS.—Each member

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

17 and the terms shall be staggered.

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

19 paragraph (2), the terms of all Council mem20 bers shall expire on the third day of September

21 in the year of expiration.

22 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

23 TERM.—Each member who has served on the

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

25 eligible for reappointment for 1 term of 6 years.
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1 ‘‘(D) VACANCY APPOINTMENTS.—Any

2 member appointed to fill a vacancy shall serve

3 for the remainder of the term for which the

4 predecessor of the member was appointed.

5 ‘‘(E) HOLDOVER SERVICE.—Notwithstand6 ing any other provision of this subsection, a

7 member of the Council shall serve after the ex8 piration of the term of the member until the

9 successor to the member takes office.

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

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

12 of—

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

14 terms would otherwise expire on September

15 3, 1996; and

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

17 term expired on September 3, 1995;

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

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

20 3 members of the Council to succeed members

21 whose terms are deemed to expire as described

22 in subparagraph (A). The terms of the succes23 sors shall expire on September 3, 2002.

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

25 receive compensation at a rate to be fixed by the Chair-
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1 person but not to exceed the daily equivalent of the maxi2 mum rate authorized for a position above grade GS–15

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

4 United States Code, and be allowed travel expenses includ5 ing per diem in lieu of subsistence, as authorized under

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

7 employed intermittently in Federal Government service.

8 ‘‘(e) MEETINGS AND DUTIES.—

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

10 the call of the Chairperson but not less often than

11 twice during each calendar year. Eleven members of

12 the Council shall constitute a quorum.

13 ‘‘(2) DUTIES.—The Council shall—

14 ‘‘(A) advise the Chairperson with respect

15 to policies, programs, and procedures for carry16 ing out the functions of the Chairperson under

17 this title; and

18 ‘‘(B) review applications for grants author19 ized under this title and make recommendations

20 to the Chairperson with respect to the approval

21 of each application.

22 ‘‘(f) ACTIONS BY CHAIRPERSON.—

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

24 approve or disapprove any application for a grant

25 authorized under this title until the Chairperson has
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1 received the recommendation of the Council on such

2 application, unless the Council fails to make a rec3 ommendation on the application within a reasonable

4 time.

5 ‘‘(2) DELEGATIONS.—In the case of an applica6 tion submitted under this title and involving $30,000

7 or less, the Chairperson may approve or disapprove

8 such application if such action is taken pursuant to

9 the terms of an express and direct delegation of au10 thority from the Council to the Chairperson, and if

11 each such action by the Chairperson is reviewed by

12 the Council. The terms of any such delegation of au13 thority shall not permit obligations for expenditure

14 of funds under such delegation for any fiscal year

15 that exceed an amount equal to 3 percent of the

16 sums appropriated for the fiscal year pursuant to

17 section 104(b)(1).

18 ‘‘SEC. 306. LIMITATIONS ON GRANTS.

19 ‘‘(a) CRITERIA FOR ELIGIBILITY FOR GRANTS.—

20 ‘‘(1) DEFINITIONS.—As used in this subsection:

21 ‘‘(A) PRODUCTION ENTITY.—The term

22 ‘production entity’ means any partnership, cor23 poration, business enterprise, or other organiza24 tion engaged in the production of a film or pub25 lication.
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1 ‘‘(B) GROUP.—The term ‘group’ includes

2 any State or local government, State or local

3 public agency, Indian tribe, or nonprofit asso4 ciation, organization, or society.

5 ‘‘(C) NATIONAL OF THE UNITED

6 STATES.—The term ‘national of the United

7 States’ means a citizen of the United States or

8 a person who owes permanent allegiance to the

9 United States.

10 ‘‘(2) CRITERIA.—The Chairperson, with the ad11 vice of the National Council on the Humanities,

12 shall establish criteria for eligibility for grants made

13 under this title. The criteria shall provide the follow14 ing:

15 ‘‘(A) GROUP.—A group shall be eligible to

16 receive a grant under this title if—

17 ‘‘(i) no part of the net earnings of the

18 group inures to the benefit of any private

19 stockholder, or individual; and

20 ‘‘(ii) a donation to such group is al21 lowable as a charitable contribution under

22 section 170(c) of the Internal Revenue

23 Code of 1986.

24 ‘‘(B) PRODUCTION ENTITY.—A production

25 entity shall be eligible to receive a grant under
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1 this title if the Chairperson, with the advice of

2 the National Council on the Humanities, deter3 mines that providing such a grant will signifi4 cantly advance the knowledge or understanding

5 of the humanities in the United States.

6 ‘‘(C) INDIVIDUAL.—An individual shall be

7 eligible to receive a grant under this title if—

8 ‘‘(i) the individual is a citizen or na9 tional of the United States; and

10 ‘‘(ii) the Chairperson, with the advice

11 of the National Council on the Humanities,

12 determines that providing the grant will

13 significantly advance the knowledge or

14 understanding of the humanities in the

15 United States.

16 ‘‘(b) ADMISSION CHARGES.—No grant shall be made

17 under this title to an activity (other than an activity con18 ducted by a school, college, or university) for which a di19 rect or an indirect admission charge is requested if the

20 proceeds, after deducting reasonable costs, are used for

21 purposes other than assisting the grant recipient to de22 velop high standards of scholarly excellence or encourage

23 greater appreciation of the humanities by the citizens of

24 the United States.
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1 ‘‘(c) LABOR STANDARDS.—The provisions of section

2 206(d) shall apply to activities financed under this title

3 in the same manner and to the same extent as the provi4 sions apply to activities financed under title II.

5 ‘‘SEC. 307. ADMINISTRATIVE PROVISIONS.

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

7 to any authorities vested in the Chairperson by other pro8 visions of this Act, the Chairperson, in carrying out the

9 functions of the Chairperson, shall have authority—

10 ‘‘(1) to prescribe such regulations and proce11 dures as the Chairperson determines to be necessary

12 governing the manner in which the functions of the

13 Chairperson shall be carried out;

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

15 use money and other property donated, bequeathed,

16 or devised to the Endowment, either absolutely or in

17 trust, with or without a condition or restriction, in18 cluding a condition that the Chairperson use other

19 funds of the Endowment for the purposes of the do20 nation, bequest, or devise; and

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

22 for the Endowment as provided in section 104(b)(2),

23 and to use, sell, or otherwise dispose of such prop24 erty, for purposes of carrying out the activities of

25 the Endowment under this title;
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1 ‘‘(3) to appoint and determine the compensa2 tion of such employees, subject to title 5, United

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

4 functions of the Chairperson, define their duties,

5 and supervise and direct their activities;

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

7 services of experts and consultants, including panels

8 of experts, and compensate the experts and consult9 ants in accordance with section 3109 of title 5,

10 United States Code;

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

12 of individuals and reimburse the individuals for trav13 el expenses, including per diem in lieu of subsist14 ence, in the same amounts and to the same extent

15 as authorized under section 5703 of title 5, United

16 States Code, for persons employed intermittently in

17 Federal Government service;

18 ‘‘(6) to make advance, progress, and other pay19 ments without regard to section 3324 of title 331,

20 United States Code;

21 ‘‘(7) to rent office space in the District of Co22 lumbia; and

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

24 ‘‘(b) PUBLICATIONS.—Official publications of the En25 dowment under this title may be supported without regard
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1 to the provisions of section 501 of title 44, United States

2 Code, if the Chairperson consults with the Joint Commit3 tee on Printing of the Congress.

4 ‘‘(c) COORDINATION.—The Chairperson shall coordi5 nate the programs of the Endowment, insofar as prac6 ticable, with other Federal programs, programs of des7 ignated State humanities agencies, and programs under8 taken by other public agencies or private groups, and shall

9 develop the programs of the Endowment with due regard

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

11 be made by other Federal agencies under the existing pro12 grams. The Chairperson may enter into interagency agree13 ments to promote or assist with the humanities-related ac14 tivities of other Federal agencies, on a reimbursable or

15 nonreimbursable basis, and may use funds authorized to

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

17 of such promotion or assistance.

18 ‘‘SEC. 308. REPORTS.

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

20 Chairperson shall submit an annual report to the Presi21 dent for submission to the appropriate committees of Con22 gress on or before the 15th day of April of each year. The

23 report shall summarize the activities of the Endowment

24 for the preceding year, and may include such evaluations
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1 and other reports as the Chairperson determines to be ap2 propriate.

3 ‘‘(b) STATE OF THE HUMANITIES REPORT.—

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

5 data submitted with State plans under section

6 302(c), and the information contained in reports

7 submitted by States under section 302(c) or this sec8 tion, to prepare a report on the state of the human9 ities in the United States.

10 ‘‘(2) CONTENTS.—The state of the humanities

11 report shall include a description of—

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

13 Endowment to emerging, rural, and culturally

14 diverse scholars, cultural and educational orga15 nizations, and communities; and

16 ‘‘(B) the participation by such scholars, or17 ganizations, and communities in such programs.

18 ‘‘(3) SUBMISSION.—The state of the humanities

19 report shall be submitted to the President and Con20 gress, and provided to the States, not later than Oc21 tober 1, 1996, and quadrennially thereafter.

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

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

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

25 Chairperson that each such grant recipient agree to
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1 and comply with requirements to submit to the

2 Chairperson—

3 ‘‘(A) financial reports containing such in4 formation as the Chairperson determines to be

5 necessary to ensure that the funding provided

6 through the grant is expended in accordance

7 with the terms and conditions under which the

8 grant is made;

9 ‘‘(B) a report describing the activity car10 ried out with the funding provided through the

11 grant and the compliance by the grant recipient

12 with the conditions of receipt of such grant, in13 cluding the condition that the work assisted

14 meet the standards of excellence in humanities

15 and significance in the humanities; and

16 ‘‘(C) if practicable, as determined by the

17 Chairperson, a copy of the work resulting from

18 the activity.

19 ‘‘(2) REPORTS.—The reports and copy de20 scribed in paragraph (1) shall be due not later than

21 90 days after the end of the period for which such

22 grant recipient receives funding through the grant or

23 90 days after the completion of the work, whichever

24 occurs earlier. The Chairperson may extend the 90-
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1 day period if the recipient shows good cause why

2 such an extension should be granted.

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

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

5 made by the Chairperson under this title. Such evaluation

6 may include an audit to determine the accuracy of the re7 ports required to be submitted by grant recipients under

8 subsection (c).

9 ‘‘(e) ANNUAL REPORT OF NATIONAL COUNCIL ON

10 THE HUMANITIES.—

11 ‘‘(1) IN GENERAL.—The National Council on

12 the Humanities shall submit an annual report to the

13 President for submission to the appropriate commit14 tees of Congress on or before the 15th day of April

15 of each year.

16 ‘‘(2) CONTENTS.—The report shall include writ17 ten records summarizing—

18 ‘‘(A) all meetings and discussions of the

19 Council; and

20 ‘‘(B) recommendations made by the Coun21 cil to the Chairperson.

22 ‘‘(3) PRIVACY.—The Council shall ensure that

23 the information contained in the report will be pre24 sented in a manner that protects the privacy of indi-
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1 vidual applicants for grants authorized under this

2 title and Council members.

3 ‘‘SEC. 309. SANCTIONS AND PAYMENTS.

4 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recip5 ient of a grant made under this title, or an indirect recipi6 ent of funding provided through the grant, substantially

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

8 as determined by the Chairperson, the Chairperson may—

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

10 make any subsequent funding to the direct or indi11 rect recipient under this title, take into consideration

12 the results of the post-award evaluation conducted

13 under section 308(d);

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

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

16 the project, production, or workshop for which the

17 grant was received with, the Endowment; and

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

19 published, require that the publication contain the

20 following statement: ‘The opinions, findings, conclu21 sions, and recommendations expressed in this publi22 cation do not reflect the views of the National En23 dowment for the Humanities.’.

24 ‘‘(b) NONCOMPLIANCE.—
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1 ‘‘(1) IN GENERAL.—The Chairperson shall take

2 the actions described in paragraph (2) whenever the

3 Chairperson, after providing reasonable notice and

4 an opportunity for hearing, finds that—

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

6 this title, or an indirect recipient of funding

7 provided through the grant, is not complying

8 substantially with the provisions of this title;

9 ‘‘(B) a State agency that received a grant

10 under this title, or an indirect recipient of fund11 ing provided through the grant, is not comply12 ing substantially with terms and conditions of

13 the State plan accompanying the application

14 approved for the grant under this title; or

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

16 to a recipient or State agency described in sub17 paragraph (A) or (B) has been diverted from

18 the purposes for which such funding was pro19 vided.

20 ‘‘(2) ACTIONS.—On making the finding de21 scribed in paragraph (1), the Chairperson shall im22 mediately notify the direct recipient or State agency

23 that received the funding at issue that—

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

25 under this title to such recipient or agency until
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1 there is no longer any default or failure to com2 ply or the diversion is corrected; or

3 ‘‘(B) if compliance or correction is impos4 sible, until such recipient or agency repays or

5 arranges the repayment of the Federal funds

6 that were improperly diverted or expended.

7 ‘‘(c) PROGRAM INCOME.—

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

9 under this title shall pay the amount described in

10 paragraph (2) to the Endowment if the Chairperson

11 finds that the recipient has derived program income

12 from the activities funded that exceeds the lesser

13 of—

14 ‘‘(A) $50,000; or

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

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

paragraph (1) is 1 17 ⁄3 of the amount of the revenue,

18 but not more than the amount of the funding.

19 ‘‘(d) ACCOUNT.—Except as otherwise provided in this

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

21 paid under subsection (c), or repaid under this Act, in a

22 special interest bearing account to the credit of the En23 dowment.
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1 ‘‘SEC. 310. AWARDS.

2 ‘‘The Chairperson, with the advice of the National

3 Council on the Humanities, may make the following an4 nual awards:

5 ‘‘(1) JEFFERSON LECTURE IN THE HUMANITIES

6 AWARD.—The Chairperson may award annually the

7 Jefferson Lecture in the Humanities Award to 1 in8 dividual for distinguished intellectual achievement in

9 the humanities. Each such award shall not exceed

10 $10,000.

11 ‘‘(2) CHARLES FRANKEL PRIZE.—The Chair12 person may award annually the Charles Frankel

13 Prize to honor individuals who have made outstand14 ing contributions to the public understanding of the

15 humanities. Not more than 5 individuals may receive

16 such prize each year. Each such prize shall not ex17 ceed $5,000.’’.

18 SEC. 102. CONFORMING AMENDMENTS.

19 Section 8G of the Inspector General Act of 1978 (5

20 U.S.C. App.) is amended—

21 (1) in subsection (a)—

22 (A) in paragraph (2), by striking ‘‘the Na23 tional Endowment for the Arts, the National

24 Endowment for the Humanities,’’ and inserting

25 ‘‘the portion of the National Foundation on the

26 Arts and the Humanities consisting of the Na-
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1 tional Endowment for the Arts and the Na2 tional Endowment for the Humanities,’’; and

3 (B) in paragraph (4), by striking ‘‘except

4 that’’ and all that follows and inserting the fol5 lowing: ‘‘except that—

6 ‘‘(A) with respect to the National Science

7 Foundation, such term means the National

8 Science Board; and

9 ‘‘(B) with respect to the National Endow10 ment for the Arts and the National Endowment

11 for the Humanities, the term means the Chair12 person of the National Endowment for the Arts

13 with respect to matters relating to the National

14 Endowment for the Arts and the Chairperson of

15 the National Endowment for the Humanities

16 with respect to matters relating to the Chair17 person of the National Endowment for the Hu18 manities;’’;

19 (2) in subsection (c), by inserting before the pe20 riod the following: ‘‘, except that the Inspector Gen21 eral for the National Endowment for the Arts and

22 the National Endowment for the Humanities shall

23 be jointly appointed by the Chairperson of the Na24 tional Endowment for the Arts and the Chairperson
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1 of the National Endowment for the Humanities’’;

2 and

3 (3) in the first sentence of subsection (d), by in4 serting before the period the following: ‘‘, except as

5 provided in section 103 of the National Foundation

6 on the Arts and the Humanities Act of 1965’’.

7 TITLE II—MUSEUM AND

8 LIBRARY SERVICES ACT

9 SEC. 201. MUSEUM AND LIBRARY SERVICES.

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

11 is amended to read as follows:

12 ‘‘TITLE II—MUSEUM AND

13 LIBRARY SERVICES

14 ‘‘Subtitle A—General Provisions

15 ‘‘SEC. 201. SHORT TITLE.

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

17 Services Act’.

18 ‘‘SEC. 202. GENERAL DEFINITIONS.

19 ‘‘As used in this title:

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

21 means the National Commission on Libraries and

22 Information Science established under section 3 of

23 the National Commission on Libraries and Informa24 tion Science Act (20 U.S.C. 1502).
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1 ‘‘(2) DIRECTOR.—The term ‘Director’ means

2 the Director of the Institute appointed under section

3 204.

4 ‘‘(3) FOUNDATION.—The term ‘Foundation’

5 means the National Foundation on the Arts and the

6 Humanities.

7 ‘‘(4) INSTITUTE.—The term ‘Institute’ means

8 the Institute of Museum and Library Services estab9 lished under section 203.

10 ‘‘(5) MUSEUM BOARD.—The term ‘Museum

11 Board’ means the National Museum Services Board

12 established under section 276.

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

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

15 the Foundation an Institute of Museum and Library Serv16 ices.

17 ‘‘(b) OFFICES.—The Institute shall consist of an Of18 fice of Museum Services and an Office of Library Services.

19 There shall be a National Museum Services Board in the

20 Office of Museum Services.

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

22 ‘‘(a) APPOINTMENT.—

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

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

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

2 term of 4 years.

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

4 first individual appointed to the position of Director

5 after the date of enactment of the Arts, Humanities,

6 and Museum Amendments of 1995, every second in7 dividual so appointed shall be appointed from among

8 individuals who have special competence with regard

9 to library and information services. Beginning with

10 the second individual appointed to the position of

11 Director after the date of enactment of the Arts,

12 Humanities, and Museum Amendments of 1995,

13 every second individual so appointed shall be ap14 pointed from among individuals who have special

15 competence with regard to museum services.

16 ‘‘(b) COMPENSATION.—The Director shall be com17 pensated at the rate provided for level III of the Executive

18 Schedule under section 5314 of title 5, United States

19 Code.

20 ‘‘(c) DUTIES AND POWERS.—The Director shall per21 form such duties and exercise such powers as may be pre22 scribed by law, including—

23 ‘‘(1) awarding financial assistance for activities

24 described in this title; and
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1 ‘‘(2) using not less than 5 percent and not more

2 than 7 percent of the funds made available under

3 this title for each fiscal year to award financial as4 sistance for projects that involve both—

5 ‘‘(A) activities relating to library services,

6 as described in subtitle B, carried out in ac7 cordance with such subtitle; and

8 ‘‘(B) activities relating to museum services,

9 as described in subtitle C, carried out in accord10 ance with such subtitle.

11 ‘‘(d) NONDELEGATION.—The Director shall not dele12 gate any of the functions of the Director to any person

13 who is not directly responsible to the Director.

14 ‘‘(e) COORDINATION.—The Director shall ensure co15 ordination of the policies and activities of the Institute

16 with the policies and activities of other agencies and of17 fices of the Federal Government having interest in and

18 responsibilities for the improvement of museums and li19 braries. Such agencies and offices shall include the Na20 tional Endowment for the Arts, the National Endowment

21 for the Humanities, the National Science Foundation, ap22 propriate units in the Department of Education, the Li23 brary of Congress, the Smithsonian Institution, and relat24 ed agencies and offices.
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1 ‘‘SEC. 205. DEPUTY DIRECTORS.

2 ‘‘(a) APPOINTMENT.—The Office of Library Services

3 shall be headed by a Deputy Director, who shall be ap4 pointed by the Director. The Office of Museum Services

5 shall be headed by a Deputy Director, who shall be ap6 pointed by the Director.

7 ‘‘(b) COMPENSATION.—Each such position of Deputy

8 Director shall be a Senior Executive Service position,

9 which shall be paid at a rate of pay for a position at ES–

10 1 of the Senior Executive Service schedule.

11 ‘‘SEC. 206. PERSONNEL.

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

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

14 appoint and determine the compensation of such employ15 ees as the Director determines to be necessary to carry

16 out the duties of the Institute.

17 ‘‘(b) VOLUNTARY SERVICES.—The Director may ac18 cept and utilize the voluntary services of individuals and

19 reimburse the individuals for travel expenses, including

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

21 to the same extent as authorized under section 5703 of

22 title 5, United States Code, for persons employed intermit23 tently in Federal Government service.

24 ‘‘SEC. 207. CONTRIBUTIONS.

25 ‘‘The Institute shall have authority to solicit, accept,

26 receive, and invest in the name of the United States, gifts,
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1 bequests, or devises of money and other property or serv2 ices and to use such property or services in furtherance

3 of the functions of the Institute. Any proceeds from such

4 gifts, bequests, or devises, after acceptance by the Insti5 tute, shall be paid by the donor or the representative of

6 the donor to the Director. The Director shall enter the

7 proceeds in a special interest bearing account to the credit

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

9 ‘‘Subtitle B—Library Services and

10 Technology

11 ‘‘SEC. 211. SHORT TITLE.

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

13 and Technology Act’.

14 ‘‘SEC. 212. STATEMENT OF PURPOSE; RECOGNITION OF

15 NEED.

16 ‘‘(a) STATEMENT OF PURPOSE.—The purposes of

17 this subtitle are as follows:

18 ‘‘(1) To stimulate excellence and promote equity

19 and lifelong access to learning and information re20 sources in all types of libraries.

21 ‘‘(2) To combine the ability of the Federal Gov22 ernment to stimulate significant improvement and

23 innovation in library services with support at State

24 and local levels, and with cooperative programs with

25 other agencies and with public and private sector
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1 partnerships, to achieve national library service

2 goals.

3 ‘‘(3) To establish national library service goals

4 for the 21st century. Such goals are that every per5 son in America will be served by a library that—

6 ‘‘(A) provides all users access to informa7 tion through regional, State, national and inter8 national electronic networks;

9 ‘‘(B) contributes to a productive workforce,

10 and to economic development, by providing re11 sources and services designed to meet local

12 community needs;

13 ‘‘(C) provides a full range of resources and

14 programs to develop reading and critical think15 ing skills for children and adults;

16 ‘‘(D) provides targeted services to people

17 of diverse geographic, cultural and socio18 economic backgrounds, to individuals with dis19 abilities, and to people with limited functional

20 literacy or information skills; and

21 ‘‘(E) provides adequate hours of operation,

22 facilities, staff, collections, and electronic access

23 to information.

24 ‘‘(b) RECOGNITION OF NEED.—The Congress recog25 nizes that strong library services are essential to empower
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1 people to succeed in our Nation’s increasingly global and

2 technological environment.

3 ‘‘SEC. 213. DEFINITIONS.

4 ‘‘As used in this subtitle:

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

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

7 group or community, including any Alaskan native

8 village, regional corporation, or village corporation,

9 as defined in or established pursuant to the Alaskan

10 Native Claims Settlement Act, which is recognized

11 by the Secretary of the Interior as eligible for the

12 special programs and services provided by the

13 United States to Indians because of their status as

14 Indians.

15 ‘‘(2) LIBRARY CONSORTIA.—The term ‘library

16 consortia’ means any local, statewide, regional, inter17 state, or international cooperative association of li18 brary entities which provides for the systematic and

19 effective coordination of the resources of school, pub20 lic, academic, and special libraries and information

21 centers for improved services for their clientele.

22 ‘‘(3) LIBRARY ENTITY.—The term ‘library en23 tity’ means a library that performs all activities of

24 a library relating to the collection and organization

25 of library materials and other information and that
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1 makes the materials and information publicly avail2 able. Such term includes State library administrative

3 agencies and the libraries, library related entities,

4 cooperatives, and consortia through which library

5 services are made publicly available.

6 ‘‘(4) PUBLIC LIBRARY.—The term ‘public li7 brary’ means a library that serves free of charge all

8 residents of a community, district, or region, and re9 ceives its financial support in whole or in part from

10 public funds. Such term also includes a research li11 brary, which, for the purposes of this sentence,

12 means a library, which—

13 ‘‘(A) makes its services available to the

14 public free of charge;

15 ‘‘(B) has extensive collections of books,

16 manuscripts, and other materials suitable for

17 scholarly research which are not available to the

18 public through public libraries;

19 ‘‘(C) engages in the dissemination of hu20 manistic knowledge through services to readers,

21 fellowships, educational and cultural programs,

22 publications of significant research, and other

23 activities; and

24 ‘‘(D) is not an integral part of an institu25 tion of higher education.
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1 ‘‘(5) STATE.—The term ‘State’, unless other2 wise specified, includes the several States of the

3 United States, the District of Columbia, the Com4 monwealth of Puerto Rico, Guam, American Samoa,

5 the Virgin Islands, the Commonwealth of the North6 ern Mariana Islands, the Republic of the Marshall

7 Islands, the Federated States of Micronesia, and the

8 Republic of Palau.

9 ‘‘(6) STATE ADVISORY COUNCIL.—The term

10 ‘State advisory council’ means an advisory council

11 established pursuant to section 252.

12 ‘‘(7) STATE LIBRARY ADMINISTRATIVE AGEN13 CY.—The term ‘State library administrative agency’

14 means the official agency of a State charged by law

15 of that State with the extension and development of

16 public library services throughout the State, which

17 has adequate authority under law of the State to ad18 minister the State plan in accordance with the provi19 sions of this subtitle.

20 ‘‘(8) STATE PLAN.—The term ‘State plan’

21 means the document which gives assurances that the

22 officially designated State library administrative

23 agency has the fiscal and legal authority and capa24 bility to administer all aspects of this subtitle, pro25 vides assurances for establishing the State’s policies,
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1 priorities, criteria, and procedures necessary to the

2 implementation of all programs under this subtitle,

3 submits copies for approval as required by regula4 tions promulgated by the Director, and identifies a

5 State’s library needs and sets forth the activities to

6 be taken toward meeting the identified needs sup7 ported with the assistance of Federal funds made

8 available under this subtitle.

9 ‘‘SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

10 ‘‘(a) AUTHORITY.—

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

12 appropriated to the Secretary of Education—

13 ‘‘(A) for the purpose of awarding grants

14 under subchapter A of chapter 2 and for relat15 ed administrative expenses, $75,000,000 for fis16 cal year 1996, and such sums as may be nec17 essary for each of the 4 succeeding fiscal years;

18 and

19 ‘‘(B) for the purpose of awarding grants

20 under subchapter B of chapter 2 and for relat21 ed administrative expenses, $75,000,000 for fis22 cal year 1996, and such sums as may be nec23 essary for each of the 4 succeeding fiscal years.

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

25 shall transfer any funds appropriated under the au-
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1 thority of paragraph (1) to the Director to enable

2 the Director to carry out this subtitle.

3 ‘‘(b) JOINT PROJECTS.—Not less than 5 percent and

4 not more than 7 percent of the funds appropriated under

5 this section for a fiscal year may be made available for

6 projects described in section 204(c)(2) for the fiscal year.

7 ‘‘(c) ADMINISTRATION.—Not more than 10 percent

8 of the funds appropriated under this section for a fiscal

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

10 carrying out this subtitle.

11 ‘‘CHAPTER 1—BASIC PROGRAM

12 REQUIREMENTS

13 ‘‘SEC. 221. RESERVATIONS AND ALLOTMENTS.

14 ‘‘(a) RESERVATIONS.—From the amount appro15 priated under the authority of section 214(a) for any fiscal

16 year, the Director—

17 ‘‘(1) shall reserve 2 percent to award grants in

18 accordance with section 261; and

19 ‘‘(2) shall reserve 8 percent to carry out a na20 tional leadership program in library science in ac21 cordance with section 262.

22 ‘‘(b) ALLOTMENTS.—

23 ‘‘(1) IN GENERAL.—From the sums appro24 priated under the authority of section 214(a) and

25 not reserved under subsection (a) for any fiscal year,
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1 the Director shall allot the minimum allotment, as

2 determined under paragraph (3), to each State. Any

3 sums remaining after minimum allotments have been

4 made for such year shall be allotted in the manner

5 set forth in paragraph (2).

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

7 sums appropriated under the authority of section

8 214(a) that are not reserved under subsection (a)

9 and not allotted under paragraph (1) for any fiscal

10 year, the Director shall allot to each State an

11 amount that bears the same relation to such remain12 der as the population of the State bears to the popu13 lation of all the States.

14 ‘‘(3) MINIMUM ALLOTMENT.—

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

16 this subsection, the minimum allotment shall

17 be—

18 ‘‘(i) with respect to appropriations for

19 the purposes of subchapter A of chapter 2,

20 $200,000 for each State, except that the

21 minimum allotment shall be $40,000 in the

22 case of Guam, American Samoa, the Virgin

23 Islands, the Commonwealth of the North24 ern Mariana Islands, the Republic of the
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1 Marshall Islands, the Federated States of

2 Micronesia, and the Republic of Palau; and

3 ‘‘(ii) with respect to appropriations for

4 the purposes of subchapter B of chapter 2,

5 $200,000 for each State, except that the

6 minimum allotment shall be $40,000 in the

7 case of Guam, American Samoa, the Virgin

8 Islands, the Commonwealth of the North9 ern Mariana Islands, the Republic of the

10 Marshall Islands, the Federated States of

11 Micronesia, and the Republic of Palau.

12 ‘‘(B) RATABLE REDUCTIONS.—If the sums

13 appropriated under the authority of section

14 214(a) and not reserved under subsection (a)

15 for any fiscal year are insufficient to fully sat16 isfy the aggregate of the minimum allotments

17 for all States for that purpose for such year,

18 each of such minimum allotments shall be re19 duced ratably.

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

21 of all the States shall be determined by the Director

22 on the basis of the most recent data available from

23 the Bureau of the Census.
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1 ‘‘SEC. 222. ADMINISTRATION AND EVALUATION.

2 ‘‘(a) IN GENERAL.—Not more than 5 percent of the

3 total funds received under this subtitle for any fiscal year

4 by a State may be used for administration and ongoing

5 State evaluations under section 251.

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

7 be construed to limit spending for evaluation costs under

8 section 251 from sources other than this subtitle.

9 ‘‘SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTE10 NANCE OF EFFORT REQUIREMENTS.

11 ‘‘(a) PAYMENTS.—The Director shall pay to each

12 State library administrative agency having a State plan

13 approved under section 224 the Federal share of the cost

14 of the activities described in the State plan.

15 ‘‘(b) FEDERAL SHARE.—

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graph (3), the Federal share shall be 50 percent.

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

19 share of payments shall be provided from non-Fed20 eral State or local sources.

21 ‘‘(3) SPECIAL RULE.—The Federal share—

22 ‘‘(A) for the Commonwealth of Puerto

23 Rico, Guam, American Samoa, the Virgin Is24 lands, and the Commonwealth of the Northern

25 Mariana Islands, shall be 66 percent; and
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1 ‘‘(B) for the Republic of the Marshall Is2 lands, the Federated States of Micronesia, and

3 the Republic of Palau, shall be 100 percent.

4 ‘‘(c) MAINTENANCE OF EFFORT.—

5 ‘‘(1) IN GENERAL.—The amount otherwise pay6 able to a State for a fiscal year under chapter 2

7 shall be reduced if the level of State expenditures, as

8 described in paragraph (2), for the previous fiscal

9 year are less than the average of the total of such

10 expenditures for the 3 fiscal years preceding that

11 previous fiscal year. The amount of the reduction in

12 allotment for any fiscal year shall be in exact pro13 portion to the amount which the State fails to meet

14 the requirement of this subsection.

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

16 level of State expenditures for the purposes of para17 graph (1) shall include all State dollars expended by

18 the State library administrative agency for library

19 programs that are consistent with the purposes of

20 this subtitle. All funds included in the maintenance

21 of effort calculation under this subsection shall be

22 expended during the fiscal year for which the deter23 mination is made, and shall not include capital ex24 penditures, special one-time project costs, or similar

25 windfalls.
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1 ‘‘(3) WAIVER.—The Director may waive the re2 quirements of paragraph (1) if the Director deter3 mines that such a waiver would be equitable due to

4 exceptional or uncontrollable circumstances such as

5 a natural disaster or a precipitous and unforeseen

6 decline in the financial resources of the State.

7 ‘‘SEC. 224. STATE PLANS.

8 ‘‘(a) STATE PLAN REQUIRED.—

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

10 receive a grant under this subtitle, a State library

11 administrative agency shall submit a State plan to

12 the Director not later than April 1, 1996.

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

14 period of 4 fiscal years.

15 ‘‘(3) REVISIONS.—If a State library administra16 tive agency makes a substantive revision to its State

17 plan, then the State library administrative agency

18 shall submit to the Director an amendment to the

19 State plan containing such revision not later than

20 April 1 of the fiscal year preceding the fiscal year

21 for which the amendment will be effective.

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

23 ‘‘(1) specify priorities for improvement of li24 brary services so that all people in the State have

25 convenient and appropriate access to information de-
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1 livered by libraries through new and emerging tech2 nologies assisted under subchapter A of chapter 2;

3 ‘‘(2) identify those persons who need special

4 services under subchapter B of chapter 2 and specify

5 priorities for meeting the purpose described in sec6 tion 241(a);

7 ‘‘(3) describe how section 243 will be imple8 mented within the State, specify the accountability

9 and evaluation procedures to be followed by public li10 braries receiving funds under such section, and

11 specify whether and how funds are to be aggregated

12 under section 243(b)(2) to improve library services

13 provided to children in the State described in section

14 243(a)(2);

15 ‘‘(4) describe the activities and services for

16 which assistance is sought, including—

17 ‘‘(A) priorities for the use of funds under

18 this subtitle; and

19 ‘‘(B) a description of the types of libraries

20 and library entities that will be eligible to re21 ceive funds under this subtitle;

22 ‘‘(5) provide that any funds paid to the State

23 in accordance with the State plan shall be expended

24 solely for the purposes for which the funds are au25 thorized and appropriated and that such fiscal con-
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1 trol and fund accounting procedures have been

2 adopted as may be necessary to assure proper dis3 bursement of, and account for, Federal funds paid

4 to the State (including any such funds paid by the

5 State to any other entity) under this subtitle;

6 ‘‘(6) provide procedures to ensure that the

7 State library administrative agency shall involve li8 braries and users throughout the State in policy de9 cisions regarding implementation of this subtitle,

10 and development of the State plan, including estab11 lishing the State advisory council;

12 ‘‘(7) provide satisfactory assurance that the

13 State library administrative agency—

14 ‘‘(A) will make such reports, in such form

15 and containing such information, as the Direc16 tor may require to carry out this subtitle and

17 to determine the extent to which funds provided

18 under this subtitle have been effective in carry19 ing out the purposes of this subtitle, including

20 reports on evaluations under section 251;

21 ‘‘(B) will keep such records and afford

22 such access thereto as the Director may find

23 necessary to assure the correctness and verifica24 tion of such reports;
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1 ‘‘(C) will provide to State advisory council

2 members an orientation regarding the provi3 sions of this subtitle and members’ responsibil4 ities, including clear, easily understandable in5 formation about the State plan; and

6 ‘‘(D) will report annually at a meeting of

7 the State advisory council on the State library

8 administrative agency’s progress toward meet9 ing the goals and objectives of the State plan;

10 ‘‘(8) describe the process for assessing the

11 needs for library and information services within the

12 State, and describe the results of the most recent

13 needs assessment;

14 ‘‘(9) establish goals and objectives for achieving

15 within the State the purposes of this subtitle, includ16 ing the purposes in sections 212(a), 231(a), and

17 241(a); and

18 ‘‘(10) describe how the State library adminis19 trative agency, in consultation with the State advi20 sory council, will—

21 ‘‘(A) administer this subtitle; and

22 ‘‘(B) conduct evaluations under section

23 251, including a description of the types of

24 evaluation methodologies to be employed.

25 ‘‘(c) ACCOUNTABILITY.—Each State plan shall—
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1 ‘‘(1) establish State-defined performance goals

2 to set forth the level of performance to be achieved

3 by an activity assisted under this subtitle;

4 ‘‘(2) express such goals in an objective, quan5 tifiable, and measurable form unless authorized to

6 be in an alternative form in accordance with section

7 1115(b) of title 31, United States Code;

8 ‘‘(3) briefly describe the operational processes,

9 skills and technology, and the human, capital, infor10 mation, or other resources, required to meet the per11 formance goals;

12 ‘‘(4) establish performance indicators in accord13 ance with subsection (d) to be used in measuring or

14 assessing the relevant outputs, service levels, and

15 outcomes, of each activity assisted under this sub16 title;

17 ‘‘(5) provide a basis for comparing actual pro18 gram results with the established performance goals;

19 and

20 ‘‘(6) describe the means to be used to verify

21 and validate measured values.

22 ‘‘(d) PERFORMANCE INDICATORS.—Performance in23 dicators described in subsection (c)(4) shall include—

24 ‘‘(1) evidence of progress toward the national li25 brary service goals under section 212(a)(3);
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1 ‘‘(2) consultation with the State educational

2 agency;

3 ‘‘(3) identification of activities suitable for na4 tionwide replication; and

5 ‘‘(4) progress in improvement of library services

6 provided to children described in section 243(a)(2).

7 ‘‘(e) APPROVAL.—

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

9 any State plan under this subtitle that meets the re10 quirements of this subtitle and provides satisfactory

11 assurances that the provisions of such plan will be

12 carried out.

13 ‘‘(2) PUBLIC AVAILABILITY.—Each State li14 brary administrative agency receiving a grant under

15 this subtitle shall make the State plan available to

16 the public.

17 ‘‘(3) ADMINISTRATION.—If the Director deter18 mines that the State plan does not meet the require19 ments of this section, the Director shall—

20 ‘‘(A) immediately notify the State library

21 administrative agency of such determination

22 and the reasons for such determination;

23 ‘‘(B) offer the State library administrative

24 agency the opportunity to revise its State plan;
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1 ‘‘(C) provide technical assistance in order

2 to assist the State library administrative agency

3 to meet the requirements of this section; and

4 ‘‘(D) provide the State library administra5 tive agency the opportunity for a hearing.

6 ‘‘CHAPTER 2—LIBRARY PROGRAMS

7 ‘‘Subchapter A—Information Access Through

8 Technology

9 ‘‘SEC. 231. GRANTS TO STATES FOR INFORMATION ACCESS

10 THROUGH TECHNOLOGY.

11 ‘‘(a) PURPOSE.—The purpose of this subchapter is

12 to provide for the improvement of library services so that

13 all people have access to information delivered by libraries

14 through new and emerging technologies, whether the in15 formation originates locally, from the State, nationally, or

16 globally.

17 ‘‘(b) GRANTS.—

18 ‘‘(1) IN GENERAL.—The Director shall award

19 grants under this subchapter from allotments under

20 section 221(b) to States that have State plans ap21 proved under section 224.

22 ‘‘(2) FEDERAL SHARE.—Grants awarded under

23 paragraph (1) shall be used to pay the Federal share

24 of the cost of activities under section 232 that are
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1 described in a State plan approved under section

2 224.

3 ‘‘SEC. 232. AUTHORIZED ACTIVITIES.

4 ‘‘Each State that receives a grant under section

5 231(b) may use the grant funds to provide statewide serv6 ices and subgrants to public libraries, other types of librar7 ies and library consortia, or library linkages with other

8 entities, in accordance with the State plan. Such services

9 and subgrants shall involve—

10 ‘‘(1) organization, access and delivery of infor11 mation;

12 ‘‘(2) lifelong learning, and workforce and eco13 nomic development; or

14 ‘‘(3) support of technology infrastructure.

15 ‘‘Subchapter B—Information Empowerment

16 Through Special Services

17 ‘‘SEC. 241. GRANTS TO STATES FOR INFORMATION

18 EMPOWERMENT THROUGH SPECIAL SERV19 ICES.

20 ‘‘(a) PURPOSE.—The purpose of this subchapter is

21 to provide for the improvement of library and information

22 services targeted to persons of all ages and cultures who

23 have difficulty using a library and to communities which

24 are geographically disadvantaged in access to libraries,

25 who or which need special materials or services, or who
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1 or which will benefit from outreach services for equity of

2 access to library services and information technologies, in3 cluding children (from birth through age 17) from families

4 living below the income official poverty line (as defined

5 by the Office of Management and Budget, and revised an6 nually in accordance with section 673(2) of the Commu7 nity Services Block Grant Act (42 U.S.C. 9902(2)) appli8 cable to a family of the size involved).

9 ‘‘(b) GRANTS.—

10 ‘‘(1) IN GENERAL.—The Director shall award

11 grants under this subchapter from allotments under

12 section 221(b) to States that have State plans ap13 proved under section 224.

14 ‘‘(2) FEDERAL SHARE.—Grants awarded under

15 paragraph (1) shall be used to pay the Federal share

16 of the cost of the activities under section 242 that

17 are described in a State plan approved under section

18 224.

19 ‘‘SEC. 242. AUTHORIZED ACTIVITIES.

20 ‘‘Each State that receives a grant under section

21 241(b) may use the grant funds to provide statewide serv22 ices and subgrants to public libraries, other types of librar23 ies and library consortia, or library linkages with other

24 entities, in accordance with the State plan. Such services

25 and subgrants shall involve activities that—
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1 ‘‘(1) increase literacy and lifelong learning;

2 ‘‘(2) serve persons in rural, underserved or

3 inner-city areas; or

4 ‘‘(3) support the provision of special services.

5 ‘‘SEC. 243. SERVICES FOR CHILDREN IN POVERTY.

6 ‘‘(a) STATE LEVEL RESERVATION.—

7 ‘‘(1) IN GENERAL.—Except as provided in sub8 section (c), from the total amount that each State

9 library administrative agency receives under this

10 subchapter for a fiscal year, such agency shall re11 serve the amount of funds determined under para12 graph (2) to provide assistance to public libraries in

13 the State to enable such libraries to enhance the

14 provision of special services to children described in

15 such paragraph who are served by such libraries.

16 ‘‘(2) AMOUNT.—The amount of funds a State

17 library administrative agency shall reserve under

18 paragraph (1) shall be equal to the sum of—

19 ‘‘(A) $1.50 for every preschooler (birth

20 through age 5) in the State from a family living

21 below the income official poverty line (as de22 fined by the Office of Management and Budget,

23 and revised annually in accordance with section

24 673(2) of the Community Services Block Grant
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1 Act (42 U.S.C. 9902(2)) applicable to a family

2 of the size involved); and

3 ‘‘(B) $1.00 for every school-age child (ages

4 6 through 17) in the State from such a family.

5 ‘‘(b) WITHIN STATE DISTRIBUTION.—

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2), each public library in a State shall receive

8 under this section for a fiscal year an amount that

9 bears the same relation to the amount the State li10 brary administrative agency reserves under sub11 section (a) for such year as the number of children

12 described in subsection (a)(2) served by such public

13 library for the preceding fiscal year bears to the

14 number of such children served by all public libraries

15 in the State for such preceding fiscal year.

16 ‘‘(2) EXCEPTION.—

17 ‘‘(A) IN GENERAL.—If a State library ad18 ministrative agency determines that the amount

19 available under paragraph (1) for a fiscal year

20 for 2 or more public libraries is too small to be

21 effective, then such agency may aggregate such

22 amounts for such year.

23 ‘‘(B) REQUIREMENTS.—Each State library

24 administrative agency aggregating amounts

25 under subparagraph (A) for a fiscal year—
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1 ‘‘(i) shall only aggregate the amount

2 available under paragraph (1) for a public

3 library for a fiscal year if the amount so

4 available for such year is $3,000 or less;

5 and

6 ‘‘(ii) shall use such aggregated

7 amounts to enhance the library services

8 provided to the children described in sub9 section (a)(2) served by the public libraries

10 for which such agency aggregated such

11 amounts for such year.

12 ‘‘(c) ADJUSTMENTS.—

13 ‘‘(1) APPROPRIATIONS INCREASE.—For any fis14 cal year for which the amount appropriated to carry

15 out this subtitle is greater than the amount appro16 priated to carry out this subtitle for the preceding

17 fiscal year by a percentage that equals or exceeds 10

18 percent, the amount each State library administra19 tive agency shall reserve under subsection (a)(2) for

20 the fiscal year for which the determination is made

21 shall be increased by the same such percentage.

22 ‘‘(2) APPROPRIATIONS DECREASE.—For any

23 fiscal year for which the amount appropriated to

24 carry out this subtitle is less than the amount ap25 propriated to carry out this subtitle for the preced-
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1 ing fiscal year by a percentage that equals or ex2 ceeds 10 percent, the amount each State library ad3 ministrative agency shall reserve under subsection

4 (a)(2) for the fiscal year for which the determination

5 is made shall be decreased by the same such per6 centage.

7 ‘‘(d) PLAN.—Each public library desiring assistance

8 under this section shall submit a plan for the expenditure

9 of funds under this section to the State library administra10 tive agency. Such plan shall include a description of how

11 the library will—

12 ‘‘(1) identify the children described in sub13 section (a)(2);

14 ‘‘(2) collaborate with community representatives

15 to ensure planning and implementation of appro16 priate, helpful library services; and

17 ‘‘(3) establish indicators of success.

18 ‘‘(e) PRIORITIES.—Priorities for the use of funds

19 under this section may include activities for children de20 scribed in subsection (a)(2) such as—

21 ‘‘(1) development of after-school homework sup22 port;

23 ‘‘(2) development of family literacy programs;

24 ‘‘(3) extension of branch hours to provide space

25 and resources for homework;
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1 ‘‘(4) development of technological resources;

2 ‘‘(5) hiring specialized outreach staff; and

3 ‘‘(6) development of peer tutoring programs.

4 ‘‘CHAPTER 3—ADMINISTRATIVE

5 PROVISIONS

6 ‘‘Subchapter A—State Requirements

7 ‘‘SEC. 251. STATE EVALUATION.

8 ‘‘(a) IN GENERAL.—Each State receiving a grant

9 under this subtitle shall annually evaluate, in accordance

10 with subsections (b) and (c), the activities assisted under

11 subchapters A and B of chapter 2.

12 ‘‘(b) SUBCHAPTER A ACTIVITIES.—Each evaluation

13 of activities assisted under subchapter A of chapter 2 shall

14 include a description of how effective such activities are

15 in ensuring that—

16 ‘‘(1) every American will have affordable access

17 to information resources through electronic net18 works;

19 ‘‘(2) every public library will be connected to

20 national and international electronic networks;

21 ‘‘(3) every State library agency will promote

22 planning and provide support for full library partici23 pation in electronic networks;
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1 ‘‘(4) every public librarian will possess the

2 knowledge and skills needed to help people obtain in3 formation through electronic sources; and

4 ‘‘(5) every public library will be equipped with

5 the technology needed to help people obtain informa6 tion in an effective and timely manner.

7 ‘‘(c) SUBCHAPTER B ACTIVITIES.—

8 ‘‘(1) IN GENERAL.—Each evaluation of activi9 ties assisted under subchapter B of chapter 2 shall

10 include—

11 ‘‘(A) with respect to activities to increase

12 literacy and lifelong learning—

13 ‘‘(i) an analysis of the current situa14 tion in the State;

15 ‘‘(ii) how such activities will meet the

16 needs of the current situation in the State

17 and the target groups to be served; and

18 ‘‘(iii) a report of the effect of such ac19 tivities in relation to the objectives of such

20 activities;

21 ‘‘(B) with respect to activities to serve peo22 ple in rural and urban areas—

23 ‘‘(i) procedures used to identify li24 brary users within a community;
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1 ‘‘(ii) a description of needs and target

2 groups to be served;

3 ‘‘(iii) an analysis of the levels of suc4 cess to be targeted;

5 ‘‘(iv) a report of the effect of such ac6 tivities in relation to the objectives of such

7 activities; and

8 ‘‘(v) a description of the background

9 of the current level of library service to

10 people in rural and urban areas, and how

11 such activities will extend, improve and

12 further provide library resources to such

13 people;

14 ‘‘(C) with respect to activities to support

15 the provision of special services—

16 ‘‘(i) an analysis of the current situa17 tion in the State;

18 ‘‘(ii) how such activities will meet the

19 needs of the current situation in the State;

20 and

21 ‘‘(iii) a report of the effect of such ac22 tivities in relation to the objectives of such

23 activities; and

24 ‘‘(D) with respect to activities to serve chil25 dren under section 243—
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1 ‘‘(i) an analysis of the current local

2 situations;

3 ‘‘(ii) a description of such activities,

4 including objectives and costs of such ac5 tivities; and

6 ‘‘(iii) a report of the effect of such ac7 tivities in relation to the objectives of such

8 activities.

9 ‘‘(2) INFORMATION.—Each public library re10 ceiving assistance under section 243 shall submit to

11 the State library administrative agency such infor12 mation as such agency may require to meet the re13 quirements of paragraph (1)(D).

14 ‘‘SEC. 252. STATE ADVISORY COUNCILS.

15 ‘‘(a) COUNCILS REQUIRED.—Each State desiring as16 sistance under this subtitle shall establish a State advisory

17 council.

18 ‘‘(b) COMPOSITION.—Each State advisory council

19 shall be broadly representative of the library entities in

20 the State, including public, school, academic, special, and

21 institutional libraries, and libraries serving individuals

22 with disabilities.

23 ‘‘(c) DUTIES.—Each State advisory council shall—
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1 ‘‘(1) consult with the State library administra2 tive agency regarding the development of the State

3 plan;

4 ‘‘(2) advise the State library administrative

5 agency on the development of, and policy matters

6 arising in the administration of, the State plan, in7 cluding mechanisms for evaluation;

8 ‘‘(3) assist the State library administrative

9 agency in—

10 ‘‘(A) the dissemination of information re11 garding activities assisted under this subtitle;

12 and

13 ‘‘(B) the evaluation of activities assisted

14 under this subtitle; and

15 ‘‘(4) establish bylaws to carry out such council’s

16 duties under this subsection.

17 ‘‘Subchapter B—Federal Requirements

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

19 ‘‘(a) GRANTS AUTHORIZED.—From amounts re20 served under section 221(a)(1) for any fiscal year the Di21 rector shall award grants to organizations primarily serv22 ing and representing Indian tribes to enable such organi23 zations to carry out the authorized activities described in

24 subsection (b).
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1 ‘‘(b) AUTHORIZED ACTIVITIES.—Grant funds award2 ed under this section may be used for—

3 ‘‘(1) inservice or preservice training of Indians

4 as library personnel;

5 ‘‘(2) the purchase of library materials;

6 ‘‘(3) the conduct of special library programs for

7 Indians;

8 ‘‘(4) salaries of library personnel;

9 ‘‘(5) transportation to enable Indians to have

10 access to library services;

11 ‘‘(6) dissemination of information about library

12 services;

13 ‘‘(7) assessment of tribal library needs; and

14 ‘‘(8) contracts to provide public library services

15 to Indians living on or near reservations or to ac16 complish any activities described in paragraphs (1)

17 through (7).

18 ‘‘(c) PROHIBITION.—No funds shall be awarded pur19 suant to this section unless such funds will be adminis20 tered by a librarian.

21 ‘‘(d) DUPLICATION.—In awarding grants under this

22 section, the Director shall take such actions as may be

23 necessary to prevent the grant funds provided under this

24 section from being received by any 2 or more entities to

25 serve the same population.
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1 ‘‘(e) MAINTENANCE OF EFFORT.—Each organization

2 that receives a grant under this section and supports a

3 public library system shall continue to expend from Fed4 eral, State, and local sources an amount not less than the

5 amount expended by such organization from such sources

6 for public library services during the second fiscal year

7 preceding the fiscal year for which the determination is

8 made.

9 ‘‘(f) CONSTRUCTION.—Nothing in this section shall

10 be construed to prohibit the dissemination of restricted

11 collections of tribal cultural materials with funds made

12 available under this section.

13 ‘‘(g) APPLICATION.—

14 ‘‘(1) IN GENERAL.—Any organization which de15 sires to receive a grant under this section shall sub16 mit an application to the Director that—

17 ‘‘(A) describes the activities and services

18 for which assistance is sought; and

19 ‘‘(B) contains such information as the Di20 rector may require by regulation.

21 ‘‘(2) CRITERIA.—The Director shall issue cri22 teria for the approval of applications under this sec23 tion, but such criteria shall not include—

24 ‘‘(A) an allotment formula; or

25 ‘‘(B) a matching of funds requirement.
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1 ‘‘SEC. 262. NATIONAL LEADERSHIP PROGRAM.

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

3 under section 221(a)(2) for any fiscal year the Director

4 shall establish and carry out a program of national leader5 ship and evaluation activities to enhance the quality of li6 brary services nationwide. Such activities may include—

7 ‘‘(1) education and training of persons in li8 brary and information science, particularly in areas

9 of new technology and other critical needs, including

10 graduate fellowships, traineeships, institutes, or

11 other programs;

12 ‘‘(2) research and demonstration projects relat13 ed to the improvement of libraries, education in li14 brary and information science, enhancement of li15 brary services through effective and efficient use of

16 new technologies, and dissemination of information

17 derived from such projects; and

18 ‘‘(3) preservation or digitization of library ma19 terials and resources, giving priority to projects em20 phasizing coordination, avoidance of duplication, and

21 access by researchers beyond the institution or li22 brary entity undertaking the project.

23 ‘‘(b) GRANTS OR CONTRACTS.—

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

25 out the activities described in subsection (a) by

26 awarding grants to, or entering into contracts with,
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1 library entities, agencies, or institutions of higher

2 education.

3 ‘‘(2) COMPETITIVE BASIS.—Grants and con4 tracts described in paragraph (1) shall be awarded

5 on a competitive basis.

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

7 effort to ensure that activities assisted under this section

8 are administered by appropriate library experts.

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

10 ‘‘Nothing in this subtitle shall be construed to inter11 fere with State and local initiative and responsibility in

12 the conduct of library services. The administration of li13 braries, the selection of personnel and library books and

14 materials, and insofar as consistent with the purposes of

15 this subtitle, the determination of the best uses of the

16 funds provided under this subtitle, shall be reserved to the

17 States and their local subdivisions.

18 ‘‘Subtitle C—Museum Services

19 ‘‘SEC. 271. PURPOSE.

20 ‘‘It is the purpose of this subtitle—

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

22 educational role, in conjunction with formal systems

23 of elementary, secondary, and postsecondary edu24 cation and with programs of nonformal education for

25 all age groups;
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1 ‘‘(2) to assist museums in modernizing their

2 methods and facilities so that the museums may be

3 better able to conserve the cultural, historic, and sci4 entific heritage of the United States; and

5 ‘‘(3) to ease the financial burden borne by mu6 seums as a result of their increasing use by the pub7 lic.

8 ‘‘SEC. 272. DEFINITIONS.

9 ‘‘As used in this subtitle, the term ‘museum’ means

10 a public or private nonprofit agency or institution orga11 nized on a permanent basis for essentially educational or

12 esthetic purposes, that utilizes a professional staff, owns

13 or utilizes tangible objects, cares for the tangible objects,

14 and exhibits the tangible objects to the public on a regular

15 basis.

16 ‘‘SEC. 273. MUSEUM SERVICES ACTIVITIES.

17 ‘‘(a) GRANTS.—The Director, after receiving the pol18 icy advice of the Museum Board, may make grants to mu19 seums to pay for the Federal share of the cost of increas20 ing and improving museum services, through such activi21 ties as—

22 ‘‘(1) programs to enable museums to construct

23 or install displays, interpretations, and exhibitions in

24 order to improve museum services to the public;
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1 ‘‘(2) assisting museums in developing and

2 maintaining professionally trained or otherwise expe3 rienced staff to meet their needs;

4 ‘‘(3) assisting museums in meeting their admin5 istrative costs in preserving and maintaining their

6 collections, exhibiting the collections to the public,

7 and providing educational programs to the public

8 through the use of the collections;

9 ‘‘(4) assisting museums in cooperating with

10 each other in developing traveling exhibitions, meet11 ing transportation costs, and identifying and locat12 ing collections available for loan;

13 ‘‘(5) assisting museums in conservation of their

14 collections; and

15 ‘‘(6) developing and carrying out specialized

16 programs for specific segments of the public, such as

17 programs for urban neighborhoods, rural areas, In18 dian reservations, and penal and other State institu19 tions.

20 ‘‘(b) CONTRACTS AND COOPERATIVE AGREE21 MENTS.—

22 ‘‘(1) PROJECTS TO STRENGTHEN MUSEUM

23 SERVICES.—The Director, after receiving the policy

24 advice of the Museum Board, may enter into con25 tracts and cooperative agreements with appropriate
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1 entities to pay for the Federal share of enabling the

2 entities to undertake projects designed to strengthen

3 museum services, except that any contracts or coop4 erative agreements entered into pursuant to this

5 subsection shall be effective only to such extent or

6 in such amounts as are provided in appropriations

7 Acts.

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

9 amount of financial assistance made available under

10 this subsection for a fiscal year shall not exceed 15

11 percent of the amount appropriated under this sub12 title for such fiscal year.

13 ‘‘(c) FEDERAL SHARE.—

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

18 ‘‘(2) 100 PERCENT.—The Director may use not

19 more than 20 percent of the funds made available

20 under this section for a fiscal year to make grants

21 under subsection (a), or enter into contracts or

22 agreements under subsection (b), for which the Fed23 eral share may be 100 percent.

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

25 establish procedures for reviewing and evaluating grants,
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1 contracts, and cooperative agreements made or entered

2 into under this section. Procedures for reviewing grant ap3 plications or contracts and cooperative agreements for fi4 nancial assistance under this section shall not be subject

5 to any review outside of the Institute.

6 ‘‘SEC. 274. ASSESSMENTS.

7 ‘‘(a) IN GENERAL.—The Director, subject to the pol8 icy direction of the Museum Board and in consultation

9 with appropriate representatives of museums and other

10 types of community institutions, agencies, and organiza11 tions, shall undertake an assessment of the collaborative

12 possibilities museums can engage in to serve the public

13 more broadly and effectively.

14 ‘‘(b) CONTENTS.—The assessment shall include—

15 ‘‘(1) an investigation of opportunities to estab16 lish collaborative programs between museums within

17 a community, including an investigation of the role

18 that larger institutions can play as mentors to small19 er institutions;

20 ‘‘(2) an investigation of opportunities to estab21 lish collaborative programs between museums and

22 community organizations;

23 ‘‘(3) an investigation of the potential for col24 laboration between museums on technology issues to

25 reach a broader audience; and
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1 ‘‘(4) an investigation of opportunities for muse2 ums to work with each other and with other commu3 nity resources to serve the public better and to co4 ordinate professional and financial development ac5 tivities.

6 ‘‘(c) LIMITATION.—This section shall not apply in

7 any fiscal year for which the amount appropriated under

8 section 277(a) is less than $28,700,000.

9 ‘‘SEC. 275. AWARD.

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

11 may annually award a National Award for Museum Serv12 ice to outstanding museums that have made significant

13 contributions in service to their communities.

14 ‘‘SEC. 276. NATIONAL MUSEUM SERVICES BOARD.

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

16 Institute a National Museum Services Board.

17 ‘‘(b) COMPOSITION AND QUALIFICATIONS.—

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

19 consist of the Director and 14 members appointed

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

21 of the Senate, and the ex officio, nonvoting member

22 described in paragraph (4).

23 ‘‘(2) QUALIFICATIONS.—The appointive mem24 bers of the Museum Board shall be selected from

25 among citizens of the United States—
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1 ‘‘(A) who are members of the general pub2 lic;

3 ‘‘(B) who are or have been affiliated

4 with—

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

6 broadly representative of the curatorial,

7 conservation, educational, and cultural re8 sources of the United States; or

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

10 broadly representative of various types of

11 museums, including museums relating to

12 science, history, technology, and art, zoos,

13 and botanical gardens; and

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

15 knowledge, expertise, or experience in museums

16 or commitment to museums.

17 ‘‘(3) GEOGRAPHIC AND OTHER REPRESENTA18 TION.—Members of the Museum Board shall be ap19 pointed to reflect persons from various geographic

20 regions of the United States. The Museum Board

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

22 from a single State. In making such appointments,

23 the President shall give due regard to equitable rep24 resentation of women, minorities, and persons with

25 disabilities who are involved with museums.
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1 ‘‘(4) EX OFFICIO MEMBER.—The Deputy Direc2 tor of the Office of Museum Services shall serve as

3 an ex officio nonvoting member of the Museum

4 Board.

5 ‘‘(c) TERMS.—

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

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

8 except that—

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

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

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

12 3 years, 3 shall serve for terms of 2 years, and

13 2 shall serve for terms of 1 year, as designated

14 by the President at the time of nomination for

15 appointment; and

16 ‘‘(B) any member appointed to fill a va17 cancy shall serve for the remainder of the term

18 for which the predecessor of the member was

19 appointed.

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

21 Museum Board who has been a member for more

22 than 7 consecutive years shall be eligible for re23 appointment.

24 ‘‘(3) SERVICE UNTIL SUCCESSOR TAKES OF25 FICE.—Notwithstanding any other provision of this
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1 subsection, a member shall serve after the expiration

2 of the term of the member until the successor to the

3 member takes office.

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

5 shall have the responsibility to advise the Director on gen6 eral policies with respect to the duties and powers vested

7 in the Institute relating to museum services, including

8 general policies with respect to—

9 ‘‘(1) financial assistance awarded under this

10 title for museum services; and

11 ‘‘(2) projects described in section 204(c)(2).

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

13 1 of the appointive members of the Museum Board as

14 Chairperson of the Museum Board.

15 ‘‘(f) MEETINGS.—

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

17 meet—

18 ‘‘(A) not less than 3 times each year, in19 cluding—

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

21 separately; and

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

23 a joint meeting with the Commission, con24 vened for purposes of making general poli-
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1 cies with respect to financial assistance for

2 projects described in section 204(c)(2); and

3 ‘‘(B) at the call of the Director.

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

5 Board with respect to the exercise of the duties and

6 powers of the Museum Board shall be made by a

7 majority vote of the members of the Museum Board

8 who are present. All decisions by the Commission

9 and the Museum Board with respect to the policies

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

a 2 11 ⁄3 majority vote of the total number of the mem12 bers of the Commission and the Museum Board who

13 are present.

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

15 Museum Board shall constitute a quorum for the conduct

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

17 a lesser number of members may hold hearings. A major18 ity of the members of the Commission and a majority of

19 the members of the Museum Board shall constitute a

20 quorum for the conduct of business at official joint meet21 ings of the Commission and the Museum Board.

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

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

24 Museum Board who is not an officer or employee of

25 the Federal Government shall be compensated at a
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1 rate to be fixed by the President, but not to exceed

2 the daily equivalent of the maximum rate authorized

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

4 Schedule under section 5108 of title 5, United

5 States Code, for each day (including travel time)

6 during which such member is engaged in the per7 formance of the duties of the Museum Board. All

8 members of the Museum Board who are officers or

9 employees of the Federal Government shall serve

10 without compensation in addition to compensation

11 received for their services as officers or employees

12 of the Federal Government.

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

14 Museum Board shall be allowed travel expenses, in15 cluding per diem in lieu of subsistence, in the same

16 amounts and to the same extent, as authorized

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

18 for persons employed intermittently in Federal Gov19 ernment service.

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

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

22 policies and activities of the Institute are coordinated with

23 other activities of the Federal Government.
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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 $50,000,000 for each of fiscal years 1996 through

5 2000.

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

7 of the funds appropriated under this section for a fiscal

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

9 carrying out this subtitle.

10 ‘‘(c) JOINT PROJECTS.—Not less than 5 percent and

11 not more than 7 percent of the funds appropriated under

12 this section for a fiscal year may be made available for

13 projects described in section 204(c)(2) for the fiscal year.

14 ‘‘(d) SUMS REMAINING AVAILABLE.—Sums appro15 priated pursuant to subsection (a) for any fiscal year shall

16 remain available for obligation until expended.’’.

17 SEC. 202. NATIONAL COMMISSION ON LIBRARIES AND IN18 FORMATION SCIENCE.

19 (a) FUNCTIONS.—Section 5 of the National Commis20 sion on Libraries and Information Science Act (20 U.S.C.

21 1504) is amended—

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

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

24 (2) by inserting after subsection (a) the follow25 ing:
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1 ‘‘(b) The Commission shall have the responsibility to

2 advise the Director of the Institute of Museum and Li3 brary Services on general policies with respect to the du4 ties and powers vested in the Institute of Museum and

5 Library Services relating to library services, including—

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

7 ‘‘(A) financial assistance awarded under

8 the Museum and Library Services Act for li9 brary services; and

10 ‘‘(B) projects described in section

11 204(c)(2) of such Act; and

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

13 activities of the Institute of Museum and Library

14 Services are coordinated with other activities of the

15 Federal Government.

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

17 time each year in a joint meeting with the Museum Board,

18 convened for purposes of providing advice on general pol19 icy with respect to financial assistance for projects de20 scribed in section 204(c)(2) of such Act.

21 ‘‘(2) All decisions by the Commission and the Mu22 seum Board with respect to the advice on general policy

described in paragraph (1) shall be made by a 2 23 ⁄3 majority

24 vote of the total number of the members of the Commis25 sion and the Museum Board who are present.
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1 ‘‘(3) A majority of the members of the Commission

2 and a majority of the members of the Museum Board shall

3 constitute a quorum for the conduct of business at official

4 joint meetings of the Commission and the Museum

5 Board.’’.

6 (b) MEMBERSHIP.—Section 6 of the National Com7 mission on Libraries and Information Science Act (20

8 U.S.C. 1505) is amended—

9 (1) in subsection (a)—

10 (A) in the first sentence, by striking ‘‘Li11 brarian of Congress’’ and inserting ‘‘Director of

12 the Institute of Museum and Library Services’’;

13 (B) in the second sentence—

14 (i) by striking ‘‘Five’’ and inserting

15 ‘‘Six of the appointive’’;

16 (ii) by striking ‘‘or interest in’’; and

17 (iii) by inserting before the period the

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

19 shall be knowledgeable with respect to the

20 library and information service and science

21 needs of the elderly’’;

22 (C) in the third sentence, by inserting ‘‘ap23 pointive’’ before ‘‘members’’; and
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1 (D) in the last sentence, by striking ‘‘term

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

3 ‘‘term.’’; and

4 (2) in subsection (b), by striking ‘‘the rate spec5 ified’’ and all that follows through ‘‘and while’’ and

6 inserting ‘‘the daily equivalent of the maximum rate

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

8 General Schedule under section 5108 of title 5,

9 United States Code, for each day (including travel10 time) during which the members are engaged in the

11 business of the Commission. While’’.

12 SEC. 203. TRANSFER OF FUNCTIONS FROM INSTITUTE OF

13 MUSEUM SERVICES.

14 (a) DEFINITIONS.—For purposes of this section, un15 less otherwise provided or indicated by the context—

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

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

18 5, United States Code;

19 (2) the term ‘‘function’’ means any duty, obli20 gation, power, authority, responsibility, right, privi21 lege, activity, or program; and

22 (3) the term ‘‘office’’ includes any office, ad23 ministration, agency, institute, unit, organizational

24 entity, or component thereof.
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1 (b) TRANSFER OF FUNCTIONS.—There are trans2 ferred to the Institute of Museum and Library Services

3 established under section 203 of the Museum and Library

4 Services Act all functions that the Director of the Institute

5 of Museum Services exercised before the date of enact6 ment of this section (including all related functions of any

7 officer or employee of the Institute of Museum Services).

8 (c) DETERMINATIONS OF CERTAIN FUNCTIONS BY

9 THE OFFICE OF MANAGEMENT AND BUDGET.—If nec10 essary, the Office of Management and Budget shall make

11 any determination of the functions that are transferred

12 under subsection (b).

13 (d) DELEGATION AND ASSIGNMENT.—Except where

14 otherwise expressly prohibited by law or otherwise pro15 vided by this section, the Director of the Institute of Mu16 seum and Library Services may delegate any of the func17 tions transferred to the Director of the Institute of Mu18 seum and Library Services by this section and any func19 tion transferred or granted to such Director of the Insti20 tute of Museum and Library Services after the effective

21 date of this section to such officers and employees of the

22 Institute of Museum and Library Services as the Director

23 of the Institute of Museum and Library Services may des24 ignate, and may authorize successive redelegations of such

25 functions as may be necessary or appropriate. No delega-
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1 tion of functions by the Director of the Institute of Mu2 seum and Library Services under this section or under any

3 other provision of this section shall relieve such Director

4 of the Institute of Museum and Library Services of re5 sponsibility for the administration of such functions.

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

7 of Museum and Library Services may allocate or reallocate

8 any function transferred under subsection (b) among the

9 officers of the Institute of Museum and Library Services,

10 and to establish, consolidate, alter, or discontinue such or11 ganizational entities in the Institute of Museum and Li12 brary Services as may be necessary or appropriate.

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

14 and Library Services may prescribe, in accordance with

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

16 and regulations as the Director of the Institute of Museum

17 and Library Services determines to be necessary or appro18 priate to administer and manage the functions of the In19 stitute of Museum and Library Services.

20 (g) TRANSFER AND ALLOCATIONS OF APPROPRIA21 TIONS AND PERSONNEL.—Except as otherwise provided

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

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

24 unexpended balances of appropriations, authorizations, al25 locations, and other funds employed, used, held, arising
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1 from, available to, or to be made available in connection

2 with the functions transferred by this section, subject to

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

4 transferred to the Institute of Museum and Library Serv5 ices. Unexpended funds transferred pursuant to this sub6 section shall be used only for the purposes for which the

7 funds were originally authorized and appropriated.

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

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

10 as the Director shall provide, may make such determina11 tions as may be necessary with regard to the functions

12 transferred by this section, and make such additional inci13 dental dispositions of personnel, assets, liabilities, grants,

14 contracts, property, records, and unexpended balances of

15 appropriations, authorizations, allocations, and other

16 funds held, used, arising from, available to, or to be made

17 available in connection with such functions, as may be nec18 essary to carry out this section. The Director of the Office

19 of Management and Budget shall provide for the termi20 nation of the affairs of all entities terminated by this sec21 tion and for such further measures and dispositions as

22 may be necessary to effectuate the purposes of this sec23 tion.

24 (i) EFFECT ON PERSONNEL.—
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1 (1) IN GENERAL.—Except as otherwise pro2 vided by this section, the transfer pursuant to this

3 section of full-time personnel (except special Govern4 ment employees) and part-time personnel holding

5 permanent positions shall not cause any such em6 ployee to be separated or reduced in grade or com7 pensation for 1 year after the date of transfer of

8 such employee under this section.

9 (2) EXECUTIVE SCHEDULE POSITIONS.—Except

10 as otherwise provided in this section, any person

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

12 section, held a position compensated in accordance

13 with the Executive Schedule prescribed in chapter

14 53 of title 5, United States Code, and who, without

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

16 Museum and Library Services to a position having

17 duties comparable to the duties performed imme18 diately preceding such appointment shall continue to

19 be compensated in such new position at not less

20 than the rate provided for such previous position, for

21 the duration of the service of such person in such

22 new position.

23 (j) SAVINGS PROVISIONS.—

24 (1) CONTINUING EFFECT OF LEGAL DOCU25 MENTS.—All orders, determinations, rules, regula-
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1 tions, permits, agreements, grants, contracts, certifi2 cates, licenses, registrations, privileges, and other

3 administrative actions—

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

5 or allowed to become effective by the President,

6 any Federal agency or official of a Federal

7 agency, or by a court of competent jurisdiction,

8 in the performance of functions that are trans9 ferred under this section; and

10 (B) that were in effect before the effective

11 date of this section, or were final before the ef12 fective date of this section and are to become

13 effective on or after the effective date of this

14 section;

15 shall continue in effect according to their terms until

16 modified, terminated, superseded, set aside, or re17 voked in accordance with law by the President, the

18 Director of the Institute of Museum and Library

19 Services or other authorized official, a court of com20 petent jurisdiction, or by operation of law.

21 (2) PROCEEDINGS NOT AFFECTED.—This sec22 tion shall not affect any proceedings, including no23 tices of proposed rulemaking, or any application for

24 any license, permit, certificate, or financial assist25 ance pending before the Institute of Museum Serv-
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1 ices on the effective date of this section, with respect

2 to functions transferred by this section. Such pro3 ceedings and applications shall be continued. Orders

4 shall be issued in such proceedings, appeals shall be

5 taken from the orders, and payments shall be made

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

7 been enacted, and orders issued in any such proceed8 ings shall continue in effect until modified, termi9 nated, superseded, or revoked by a duly authorized

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

11 operation of law. Nothing in this paragraph shall be

12 construed to prohibit the discontinuance or modifica13 tion of any such proceeding under the same terms

14 and conditions and to the same extent that such pro15 ceeding could have been discontinued or modified if

16 this section had not been enacted.

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

18 not affect suits commenced before the effective date

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

20 shall be had, appeals taken, and judgments rendered

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

22 this section had not been enacted.

23 (4) NONABATEMENT OF ACTIONS.—No suit, ac24 tion, or other proceeding commenced by or against

25 the Institute of Museum Services, or by or against
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1 any individual in the official capacity of such individ2 ual as an officer of the Institute of Museum Serv3 ices, shall abate by reason of the enactment of this

4 section.

5 (5) ADMINISTRATIVE ACTIONS RELATING TO

6 PROMULGATION OF REGULATIONS.—Any administra7 tive action relating to the preparation or promulga8 tion of a regulation by the Institute of Museum

9 Services relating to a function transferred under this

10 section may be continued by the Institute of Mu11 seum and Library Services with the same effect as

12 if this section had not been enacted.

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

14 Museum 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

20 such period of time as may reasonably be needed to

21 facilitate 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—
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1 (1) the Director of the Institute of Museum

2 Services with regard to functions transferred under

3 subsection (b), shall be deemed to refer to the Direc4 tor of the Institute of Museum and Library Services;

5 and

6 (2) the Institute of Museum Services with re7 gard to functions transferred under subsection (b),

8 shall be deemed to refer to the Institute of Museum

9 and Library Services.

10 (m) ADDITIONAL CONFORMING AMENDMENTS.—

11 (1) RECOMMENDED LEGISLATION.—After con12 sultation with the appropriate committees of Con13 gress and the Director of the Office of Management

14 and Budget, the Director of the Institute of Museum

15 and Library Services shall prepare and submit to

16 Congress recommended legislation containing tech17 nical and conforming amendments to reflect the

18 changes made by this section.

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

20 6 months after the effective date of this section, the

21 Director of the Institute of Museum and Library

22 Services shall submit the recommended legislation

23 referred to under paragraph (1).
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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 Serv6 ices under section 205 of the Museum Services Act (as

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

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

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

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

11 Library Services under section 204 of the Museum and

12 Library Services Act (as added by section 201 of this Act),

13 and shall serve 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

17 Director of the Institute of Museum and Library Service

18 shall give strong consideration to individuals with experi19 ence in administering State-based library programs.

20 SEC. 206. REPEALS AND TECHNICAL AND CONFORMING

21 AMENDMENTS.

22 (a) REPEALS.—

23 (1) LIBRARY SERVICES AND CONSTRUCTION

24 ACT.—The Library Services and Construction Act

25 (20 U.S.C. 351 et seq.) is repealed.
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1 (2) HIGHER EDUCATION ACT OF 1965.—Title II

2 of the Higher Education Act of 1965 (20 U.S.C.

3 1021 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 (2) ELEMENTARY AND SECONDARY EDUCATION

14 ACT OF 1965.—Section 3113(10) of the Elementary

15 and Secondary Education Act of 1965 (20 U.S.C.

16 6813(10)) is amended by striking ‘‘section 3 of the

17 Library Services and Construction Act’’ and insert18 ing ‘‘section 213(7) of the Library Services and

19 Technology Act’’.

20 (3) COMMUNITY IMPROVEMENT VOLUNTEER

21 ACT OF 1994.—Section 7305 of the Community Im22 provement Volunteer Act of 1994 (40 U.S.C. 276d–

23 3) is amended—

24 (A) by striking paragraph (1); and
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1 (B) by redesignating paragraphs (2)

2 through (6) as paragraphs (1) through (5), re3 spectively.

4 (4) APPALACHIAN REGIONAL DEVELOPMENT

5 ACT OF 1965.—Section 214(c) of the Appalachian

6 Regional Development Act of 1965 (40 U.S.C. App.

7 214(c)) is amended by striking ‘‘Library Services

8 and Construction Act;’’.

9 (5) DEMONSTRATION CITIES AND METROPOLI10 TAN DEVELOPMENT ACT OF 1966.—Section 208(2) of

11 the Demonstration Cities and Metropolitan Develop12 ment Act of 1966 (42 U.S.C. 3338(2)) is amended

13 by striking ‘‘title II of the Library Services and Con14 struction Act;’’.

15 (6) PUBLIC LAW 87–688.—Subsection (c) of the

16 first section of the Act entitled ‘‘An Act to extend

17 the application of certain laws to American Samoa’’,

18 approved September 25, 1962 (48 U.S.C. 1666(c))

19 is amended by striking ‘‘the Library Services Act

20 (70 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:
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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 ORGANIZA6 TION ACT.—Section 301 of the Department of Edu7 cation Organization Act (20 U.S.C. 3441) is amend8 ed—

9 (A) in subsection (a)—

10 (i) by striking paragraph (5); and

11 (ii) by redesignating paragraphs (6)

12 and (7) as paragraphs (5) and (6), respec13 tively; and

14 (B) in subsection (b)—

15 (i) by striking paragraph (4); and

16 (ii) by redesignating paragraphs (5)

17 through (7) as paragraphs (4) through (6),

18 respectively.

19 (3) ELEMENTARY AND SECONDARY EDUCATION

20 ACT OF 1965.—

21 (A) Sections 2101(b), 2205(c)(1)(D),

22 2208(d)(1)(H)(v), and 2209(b)(1)(C)(vi), and

23 subsections (d)(6) and (e)(2) of section 10401,

24 of the Elementary and Secondary Education

25 Act of 1965 (20 U.S.C. 6621(b),
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1 6645(c)(1)(D), 6648(d)(1)(H)(v),

2 6649(b)(1)(C)(vi), and 8091 (d)(6) and (e)(2))

3 are amended by striking ‘‘the Institute of Mu4 seum Services’’ and inserting ‘‘the Institute of

5 Museum and Library Services’’.

6 (B) Section 10412(b) of such Act (20

7 U.S.C. 8102(b)) is amended—

8 (i) in paragraph (2), 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

12 Director 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,’’; and

18 (ii) in paragraph (7), by striking ‘‘the

19 Chairman of the National Endowment for

20 the Humanities, the Chairman of the Na21 tional Endowment for the Arts and the Di22 rector of the Institute of Museum Serv23 ices,’’ and inserting ‘‘the Chairperson of

24 the National Endowment for the Human25 ities, the Chairperson of the National En-
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1 dowment for the Arts, and the Institute of

2 Museum and Library Services,’’.

3 (C) Section 10414(a)(2)(B) of such Act

4 (20 U.S.C. 8104(a)(2)(B)) is amended by strik5 ing clause (iii) and inserting the following new

6 clause:

7 ‘‘(iii) the Institute of Museum and Li8 brary Services.’’.

9 (d) REFERENCES TO HIGHER EDUCATION ACT OF

10 1965.—

11 (1) HIGHER EDUCATION ACT OF 1965.—Para12 graph (2) of section 356(b) of the Higher Education

13 Act of 1965 (20 U.S.C. 1069b(b)) is amended by

14 striking ‘‘II,’’.

15 (2) HIGHER EDUCATION AMENDMENTS OF

16 1986.—Part D of title XIII of the Higher Education

17 Amendments of 1986 (20 U.S.C. 1029 note) is re18 pealed.

19 (e) REFERENCES TO OFFICE OF LIBRARIES AND

20 LEARNING RESOURCES.—

21 (1) EDUCATION AMENDMENTS OF 1974.—Sec22 tion 519 of the Education Amendments of 1974 (20

23 U.S.C. 1221i) is repealed.

24 (2) DEPARTMENT OF EDUCATION ORGANIZA25 TION ACT.—Section 413(b)(1) of the Department of
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1 Education Organization Act (20 U.S.C. 3473(b)(1))

2 is amended—

3 (A) by striking subparagraph (H); and

4 (B) by redesignating subparagraphs (I)

5 through (M) as subparagraphs (H) through

6 (L), respectively.

7 TITLE III—ARTS AND ARTIFACTS

8 INDEMNITY ACT

9 SEC. 301. ARTS AND ARTIFACTS.

10 The Arts and Artifacts Indemnity Act (20 U.S.C. 971

11 et seq.) is amended to read as follows:

12 ‘‘SECTION 1. SHORT TITLE.

13 ‘‘This Act may be cited as the ‘Arts and Artifacts

14 Indemnity Act’.

15 ‘‘SEC. 2. INDEMNITY FOR EXHIBITIONS OF ARTS AND ARTI16 FACTS.

17 ‘‘The Chairperson of the National Endowment for the

18 Arts (referred to in this title as the ‘Chairperson’) may

19 enter into agreements to indemnify against loss or damage

20 such items as may be eligible for such indemnity agree21 ments under section 3—

22 ‘‘(1) in accordance with the provisions of this

23 Act; and

24 ‘‘(2) on such terms and conditions as the Chair25 person shall prescribe, by regulation, in order to
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1 achieve the objectives of this Act and, consistent

2 with such objectives, to protect the financial interest

3 of the United States.

4 ‘‘SEC. 3. ELIGIBLE ITEMS.

5 ‘‘(a) TYPES OF ITEMS.—The Chairperson may enter

6 into an indemnity agreement under section 2 with respect

7 to items—

8 ‘‘(1) that are—

9 ‘‘(A) works of art, including tapestries,

10 paintings, sculpture, folk art, and graphics and

11 craft arts;

12 ‘‘(B) manuscripts, rare documents, books,

13 or other printed or published materials;

14 ‘‘(C) other artifacts or objects; or

15 ‘‘(D) photographs, motion pictures, or

16 audio and video tape;

17 ‘‘(2) that are of educational, cultural, historical,

18 or scientific value; and

19 ‘‘(3) the exhibition of which is certified by the

20 Secretary of State, the designee of the Secretary, or

21 the Director of the Institute for Museum and Li22 brary Services, as being in the national interest.

23 ‘‘(b) ITEMS ON EXHIBITION.—

24 ‘‘(1) SCOPE.—An indemnity agreement made

25 under this Act shall cover eligible items while on ex-
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1 hibition, generally when the items are part of an ex2 change of exhibitions. An item described in sub3 section (a) that is part of an exhibition that origi4 nates either in the United States or outside the

5 United States and that is touring the United States

6 shall be considered to be an eligible item.

7 ‘‘(2) DEFINITION.—For purposes of this sub8 section, the term ‘on exhibition’ includes the period

9 of time beginning on the date the eligible items leave

10 the premises of the lender or place designated by the

11 lender and ending on the date such items are re12 turned to the premises of the lender or place des13 ignated by the lender.

14 ‘‘SEC. 4. APPLICATIONS.

15 ‘‘(a) IN GENERAL.—Any person, nonprofit agency,

16 institution, or government desiring to enter into an indem17 nity agreement for eligible items under this Act shall sub18 mit an application to the Chairperson at such time, in

19 such manner and in accordance with such procedures, as

20 the Chairperson shall, by regulation, prescribe.

21 ‘‘(b) CONTENTS.—An application submitted under

22 subsection (a) shall—

23 ‘‘(1) describe each item to be covered by the

24 agreement (including an estimated value of such

25 item);
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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

5 conduct 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

10 with the estimated value described in the application and

11 if such application conforms with the requirements of this

12 Act, approve the application and enter into an indemnity

13 agreement with the applicant under section 2. On such

14 approval, the agreement shall constitute a contract be15 tween the Chairperson and the applicant pledging the full

16 faith and credit of the United States to pay any amount

17 for which the Chairperson becomes liable under such

18 agreement. The Chairperson, for such purpose, is author19 ized to pledge the full faith and credit of the United

20 States.

21 ‘‘SEC. 5. INDEMNITY AGREEMENT.

22 ‘‘(a) REVIEW.—On receipt of an application meeting

23 the requirements of subsections (a) and (b) of section 4,

24 the Chairperson shall review the estimated value of the
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1 items for which coverage by an indemnity agreement is

2 sought.

3 ‘‘(b) AGGREGATE AMOUNT OF LOSS OR DAMAGE.—

4 The aggregate amount of loss or damage covered by in5 demnity agreements made under this Act shall not exceed

6 $3,000,000,000, at any one time.

7 ‘‘(c) INDIVIDUAL AMOUNT OF LOSS OR DAMAGE.—

8 No indemnity agreement for a single exhibition shall cover

9 loss or damage in excess of $300,000,000.

10 ‘‘(d) EXTENT OF COVERAGE.—If the estimated value

11 of the items covered by an indemnity agreement for a sin12 gle exhibition is—

13 ‘‘(1) $2,000,000 or less, coverage under this

14 Act shall extend only to loss or damage in excess of

15 the first $15,000 of loss or damage to the items cov16 ered;

17 ‘‘(2) more than $2,000,000 but less than

18 $10,000,000, coverage under this Act shall extend

19 only to loss or damage in excess of the first $25,000

20 of loss or damage to the items covered;

21 ‘‘(3) not less than $10,000,000 but less than

22 $125,000,000, coverage under this Act shall extend

23 to loss or damage in excess of the first $50,000 of

24 loss or damage to the items covered;
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1 ‘‘(4) not less than $125,000,000 but less than

2 $200,000,000, coverage under this Act shall extend

3 to loss or damage in excess of the first $100,000 of

4 loss or damage to the items covered; or

5 ‘‘(5) not less than $200,000,000, coverage

6 under this Act shall extend only to loss or damage

7 in excess of the first $200,000 of loss or damage to

8 the items covered.

9 ‘‘SEC. 6. REGULATIONS AND CERTIFICATION.

10 ‘‘(a) REGULATIONS.—The Chairperson shall pre11 scribe regulations providing for prompt adjustment of

12 valid claims for loss or damage to items that are covered

13 by an agreement entered into pursuant to section 2, in14 cluding provision for arbitration of issues relating to the

15 dollar value of damages involving less than total loss or

16 destruction of such covered items.

17 ‘‘(b) CERTIFICATION.—In the case of a claim of loss

18 or damage with respect to an item that is covered by an

19 agreement entered into pursuant to section 2, the Chair20 person shall certify the validity of the claim and the

21 amount of the loss to the Speaker of the House of Rep22 resentatives and the President pro tempore of the Senate.

23 ‘‘SEC. 7. COORDINATION ACTIVITIES.

24 ‘‘The Chairperson shall—
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1 ‘‘(1) advise and consult with the Chairperson of

2 the National Endowment for the Humanities on

3 major problems arising in carrying out the purpose

4 of the Foundation;

5 ‘‘(2) advise and consult with the National Mu6 seum Services Board and with the Director of the

7 Institute of Museum and Library Services on major

8 problems arising in carrying out the purpose of the

9 Museum Services Act;

10 ‘‘(3) coordinate, by advice and consultation, so

11 far as is practicable, the policies and operations of

12 the National Endowment for the Arts, the National

13 Endowment for the Humanities, and the Institute of

14 Museum and Library Services, including joint sup15 port of activities, as appropriate;

16 ‘‘(4) promote coordination between the pro17 grams and activities of the Foundation and related

18 programs and activities of other Federal agencies;

19 ‘‘(5) plan and coordinate appropriate participa20 tion (including productions and projects) in major

21 and historic national events; and

22 ‘‘(6) encourage an ongoing dialogue in support

23 of the arts and the humanities among Federal agen24 cies.
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1 ‘‘SEC. 8. REPORT.

2 ‘‘The Chairperson shall prepare, and submit at the

3 end of each fiscal year to the appropriate committees of

4 Congress, a report containing information on—

5 ‘‘(1) all claims paid pursuant to this Act during

6 such year;

7 ‘‘(2) pending claims against the Chairperson

8 under this Act as of the end of such year; and

9 ‘‘(3) the aggregate face value of contracts en10 tered into by the Chairperson that are outstanding

11 at the end of such year.

12 ‘‘SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘There are authorized to be appropriated such sums

14 as may be necessary—

15 ‘‘(1) to enable the Chairperson to carry out the

16 functions of the Chairperson under this Act; and

17 ‘‘(2) to pay claims certified pursuant to section

18 6(b).’’.

Æ

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