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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2419 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2419

       The ``Library of Congress Financial Reform Act of 1994''.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

              August 24 (legislative day, August 18), 1994

  Mr. Pell (for himself, Mr. Moynihan, Mr. Stevens, and Mr. Hatfield) 
introduced the following bill; which was read twice and referred to the 
                 Committee on Rules and Administration

_______________________________________________________________________

                                 A BILL

 
       The ``Library of Congress Financial Reform Act of 1994''.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Library of Congress Financial Reform 
Act of 1994''.

              TITLE I--LIBRARY OF CONGRESS REVOLVING FUND

SEC. 101. AVAILABILITY OF FUND SERVICE ACTIVITIES.

    The Librarian of Congress is authorized--
            (1) to establish Fund service units to carry out Fund 
        service activities; and
            (2) to make the library products and services constituting 
        Fund service activities available for purchase through Fund 
        service units at prices that do not exceed levels necessary to 
        recover the production and distribution costs, over a 
        reasonable period of time, with respect to each Fund service 
        unit.

SEC. 102. FUND SERVICE ACTIVITIES.

    The Fund service activities that may be conducted by Fund service 
units are--
            (1) preparation of research reports, translations, and 
        analytical studies, for departments and other entities of the 
        Federal Government;
            (2) centralized acquisition of publications, information 
        services, and library materials, and training in library and 
        information services, for departments and other entities of the 
        Federal Government;
            (3) decimal classification development;
            (4) gift shop sales of items associated with collections, 
        exhibits, performances, and special events of the Library of 
        Congress;
            (5) document location, copying and delivery services, and 
        international interlibrary lending;
            (6) centralized acquisition for libraries participating in 
        the Library of Congress overseas programs; and
            (7) special events and programs, including performances, 
        exhibits, workshops, and meetings.

SEC. 103. LIBRARY OF CONGRESS REVOLVING FUND.

    (a) Establishment.--There is established in the Treasury a fund to 
be known as the ``Library of Congress Revolving Fund''. The Fund shall 
be available, without fiscal year limitation, to the extent provided in 
appropriations Acts, to the Librarian of Congress for the conduct of 
Fund service activities. The Fund shall consist of capital under 
subsection (b) and credits under subsection (c).
    (b) Capital.--The capital of the Fund shall consist of--
            (1) amounts appropriated by law for that purpose;
            (2) upon the transfer of an activity of the Library of 
        Congress to a Fund service unit, the difference between (A) the 
        total value of the supplies, equipment, gift fund balances, and 
        other assets of the activity, and (B) the total value of the 
        liabilities (including the value of accrued annual leave of 
        employees) of the activity; and
            (3) payments for goods and services provided under section 
        1535 of title 31, United States Code.
    (c) Credits.--The Fund shall be credited with all amounts received 
by Fund service units with respect to Fund service activities, 
including--
            (1) fees, advances, and reimbursements;
            (2) receipts from sales and exchanges of property;
            (3) payments for loss or damage to property;
            (4) receivables, inventories, and other assets;
            (5) amounts appropriated by law; and
            (6) income from investments under subsection (f).
    (d) Individual Accounting Requirement for Fund Service Units.--The 
accounts of the Fund, including reserve accounts and accounts for 
research and development, shall be maintained with respect to 
individual Fund service units, without commingling.
    (e) Interest on Certain Appropriated Capital.--Not later than 
December 31 of each year, the Librarian of Congress shall make an 
interest payment, with respect to the preceding fiscal year, on the 
capital in the Fund from appropriations under subsection (b)(1) for the 
purposes described in paragraphs (3), (4), (6), and (7) of section 102. 
The Secretary of the Treasury shall determine the rate of interest 
using the average market yield on outstanding interest bearing 
obligations of the United States with approximately one year remaining 
until maturity during the month of September preceding the beginning of 
the fiscal year involved. The interest payment shall be deposited in 
the Treasury as a miscellaneous receipt.
    (f) Investments.--The Secretary of the Treasury shall invest any 
portion of the Fund (other than amounts from appropriations and amounts 
from activities described in paragraphs (1), (2), and (5) of section 
102) that, as determined by the Librarian of Congress, is not required 
to meet current expenses. Investments shall be made in interest bearing 
obligations of the United States or obligations guaranteed as to 
principal and interest by the United States that, as determined by the 
Librarian of Congress, have maturities suitable for the Fund.
    (g) Excess Funds.--If the Librarian of Congress determines that 
there is an unobligated balance in the Fund that is not necessary for 
Fund service activities, the Librarian shall deposit that balance in 
the Treasury as a miscellaneous receipt.
    (h) Financial Statements.--(1) Not later than March 31 of each 
year, the Librarian of Congress shall submit to the Congress a 
financial statement for the Fund for the preceding fiscal year.
    (2) The Comptroller General of the United States shall audit a 
financial statement under paragraph (1) at the discretion of the 
Comptroller General or at the direction of a committee of the Congress. 
Any such audit shall be in accordance with generally accepted 
Government auditing standards.
    (3) The authority to conduct audits under paragraph (2) shall apply 
with respect to fiscal years beginning with fiscal year 1996.

SEC. 104. DEFINITIONS.

    As used in this title--
            (1) the term ``Fund'' means the Library of Congress 
        Revolving Fund;
            (2) the term ``Fund service activities'' means the library 
        information products and services described in section 102; and
            (3) the term ``Fund service unit'' means an organizational 
        entity of the Library of Congress that, at the direction of the 
        Librarian of Congress, is partially or fully sustained through 
        the Fund.

               TITLE II--CATALOGING PRODUCTS AND SERVICES

SEC. 201. AVAILABILITY OF CATALOGING PRODUCTS AND SERVICES.

    (a) In General.--The Librarian of Congress is authorized to make 
cataloging products and services, created by the Library of Congress, 
available for purchase at prices that do not exceed the distribution 
costs involved. The amounts received for such products and services 
shall be deposited in the Treasury to the credit of the appropriation 
for salaries and expenses of the Library of Congress, to remain 
available until expended for necessary distribution of such products 
and services.
    (b) Definition.--As used in this section, the term ``cataloging 
products and services'' means those information products and services, 
in any format now known or later developed, that are used by libraries 
and library organizations, including bibliographic products and 
services, other Library-created data bases, and related technical 
publications.

SEC. 202. REPEAL.

    The paragraph beginning ``The Librarian of Congress'' under the 
heading ``PUBLIC PRINTING AND BINDING'' in section 1 of the Act 
entitled ``An Act making appropriations for sundry civil expenses of 
the Government for the fiscal year ending June thirtieth, nineteen 
hundred and three, and for other purposes'', approved June 28, 1902 (2 
U.S.C. 150), is repealed.

   TITLE III--RETENTION OF PROCEEDS OF CERTAIN SALES AND RESTITUTION 
                                PAYMENTS

SEC. 301. SALE OF CERTAIN EXCESS PERSONAL PROPERTY.

    (a) In General.--Subject to subsection (b) and section 302, the 
Librarian of Congress may sell personal property that is excess to the 
collections or the exchange and donation programs of the Library of 
Congress, pursuant to regulations promulgated by the Administrator of 
General Services for the disposal of personal property by sale, except 
that the proceeds of sales under this section shall be deposited in the 
fund under section 304.
    (b) Prohibited Sales.--The Librarian may not sell personal property 
under subsection (a) if the personal property is--
            (1) received by the Library, as a gift or otherwise, under 
        a written acceptance or other written agreement by the Library 
        that prohibits sale by the Library;
            (2) an audio book, braille book, or sound production 
        equipment or any other item for the blind or the physically 
        handicapped under the Act entitled ``An Act to provide books 
        for the adult blind'', approved March 3, 1931 (2 U.S.C. 135a 
        and 135b); or
            (3) a product of the Congressional Research Service, unless 
        the sale is approved by the appropriate authority of the 
        Congress.

SEC. 302. SPECIAL PROVISIONS FOR COPYRIGHT DEPOSIT SALES.

    (a) In General.--Under section 301, the Librarian of Congress is 
authorized to sell a copyright deposit described in subsection (c) only 
if--
            (1) the copyright deposit is sold as scrap for recycling, 
        under a written agreement between the Library and the purchaser 
        that prohibits resale by the purchaser and use for any purpose 
        other than recycling;
            (2) the copyright deposit has been owned by the Library of 
        Congress for at least 5 years and there is no reasonable 
        likelihood that the later resale or commercial use of the 
        copyright deposit will materially impair the market value of 
        the work; or
            (3) the term of copyright has expired.
    (b) Specific Prohibitions.--Notwithstanding subsection (a), the 
Librarian may not sell a copyright deposit described in subsection (c) 
if--
            (1) the work is unpublished at the time of deposit;
            (2) the work is subject to a request for retention under 
        section 704(e) of title 17, United States Code;
            (3) the copyright deposit is subject to section 407(d) of 
        title 17, United States Code, and the joint order as to 
        disposition has not been issued;
            (4) the copyright deposit is made in response to a written 
        demand under section 407(d) of title 17, United States Code; or
            (5) the copyright deposit is subject to a written agreement 
        between the Library and the depositor that prohibits sale by 
        the Library.
    (c) Copyright Deposit Described.--A copyright deposit, as referred 
to in subsections (a) and (b), is a copy, phonorecord, or identifying 
material deposited in the Copyright Office under section 407 or 408 of 
title 17, United States Code.

SEC. 303. ACCEPTANCE OF RESTITUTION PAYMENTS.

    The Librarian of Congress is authorized to accept, for deposit in 
the fund under section 304, payments for lost, stolen, damaged, or 
destroyed books and other materials from the collections of the 
Library, if such payments are--
            (1) ordered by a judicial or administrative authority; or
            (2) received from a borrower or other Library user.

SEC. 304. FUND FOR RETENTION OF PROCEEDS OF CERTAIN SALES AND 
              RESTITUTION PAYMENTS.

    There is established in the Treasury a fund consisting of the 
proceeds from sales under sections 301 and 302 and payments received 
under section 303. Amounts in the fund shall be available to the 
Librarian of Congress, to the extent provided in appropriations Acts, 
to remain available until expended, for the acquisition of books and 
other materials for the collections of the Library, including the costs 
of administering the national and international acquisition programs of 
the Library.

  TITLE IV--AMENDMENTS RELATING TO THE LIBRARY OF CONGRESS TRUST FUND 
                                 BOARD

SEC. 401. ADDITIONAL MEMBER ON THE LIBRARY OF CONGRESS TRUST FUND 
              BOARD.

    The first sentence of the first paragraph of the first section of 
the Act entitled ``An Act to create a Library of Congress Trust Fund 
Board, and for other purposes'', approved March 3, 1925 (2 U.S.C. 154), 
is amended by inserting after ``chairman'' the following: ``and the 
vice chairman''.

SEC. 402. CEILING INCREASE FOR PERMANENT LOAN ACCOUNT DEPOSITS.

    The proviso in the third undesignated paragraph of section 2 of the 
Act entitled ``An Act to create a Library of Congress Trust Fund Board, 
and for other purposes'', approved March 3, 1925 (2 U.S.C. 158), is 
amended by striking out ``$10,000,000'' and inserting in lieu thereof 
``$30,000,000''.

SEC. 403. CLARIFICATION OF INVESTMENT AUTHORITY.

    Section 2 of the Act entitled ``An Act to create a Library of 
Congress Trust Fund Board, and for other purposes'', approved March 3, 
1925, is amended--
            (1) in the third undesignated paragraph (2 U.S.C. 158), by 
        inserting after ``subject to'' the following: ``subsequent''; 
        and
            (2) in the second sentence of the fourth undesignated 
        paragraph (2 U.S.C. 158a), by inserting after ``retained'' the 
        following: ``by the Librarian''.

SEC. 404. AUTHORITY TO TRANSFER GIFT FUNDS TO THE BOARD.

    Section 4 of the Act entitled ``An Act to create a Library of 
Congress Trust Fund Board, and for other purposes'', approved March 3, 
1925 (2 U.S.C. 160), is amended by adding at the end the following new 
undesignated paragraph:
    ``If so agreed by the Librarian of Congress and the board, a gift 
or bequest accepted by the Librarian under the first paragraph of this 
section may be invested or reinvested in the same manner as provided 
for trust funds under the second paragraph of section 2.''.

        TITLE V--SUPPORT AND REIMBURSEMENT OF ARBITRATION PANELS

SEC. 501. PURPOSES OF ARBITRATION PANELS.

    Section 801(b)(1) of title 17, United States Code, is amended by 
striking out ``and 116,'' and inserting in lieu thereof ``, 116, and 
119,''.

SEC. 502. SUPPORT AND REIMBURSEMENT OF PANELS.

    Section 801(d) of title 17, United States Code, is amended to read 
as follows:
    ``(d) Support and Reimbursement of Arbitration Panels.--The 
Librarian of Congress, upon the recommendation of the Register of 
Copyrights, shall provide the copyright arbitration panels with the 
necessary administrative services related to proceedings under this 
chapter, and shall reimburse the arbitrators at such intervals and in 
such manner as the Librarian shall provide by regulation. Each such 
arbitrator is an independent contractor acting on behalf of the United 
States, and shall be paid pursuant to a signed agreement between the 
Library of Congress and the arbitrator. Subject to the provisions of 
section 802(c), payments to the arbitrators shall be considered costs 
incurred by the Library and the Copyright Office for purposes of 
section 802(h)(1).''.

SEC. 503. NONAPPLICABILITY OF LIMITATIONS ON POSITIONS.

    Section 802(h)(2) of title 17, United States Code, is amended by 
striking out ``Section 307'' and inserting in lieu thereof ``Sections 
306(b) and 307''.
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