II

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’’.

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 ‘‘Library of Congress

5 Financial Reform Act of 1994’’.

6 TITLE I—LIBRARY OF CONGRESS

7 REVOLVING FUND

8 SEC. 101. AVAILABILITY OF FUND SERVICE ACTIVITIES.

9 The Librarian of Congress is authorized—

10 (1) to establish Fund service units to carry out

11 Fund service activities; and
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1 (2) to make the library products and services

2 constituting Fund service activities available for pur3 chase through Fund service units at prices that do

4 not exceed levels necessary to recover the production

5 and distribution costs, over a reasonable period of

6 time, with respect to each Fund service unit.

7 SEC. 102. FUND SERVICE ACTIVITIES.

8 The Fund service activities that may be conducted

9 by Fund service units are—

10 (1) preparation of research reports, trans11 lations, and analytical studies, for departments and

12 other entities of the Federal Government;

13 (2) centralized acquisition of publications, infor14 mation services, and library materials, and training

15 in library and information services, for departments

16 and other entities of the Federal Government;

17 (3) decimal classification development;

18 (4) gift shop sales of items associated with col19 lections, exhibits, performances, and special events

20 of the Library of Congress;

21 (5) document location, copying and delivery

22 services, and international interlibrary lending;

23 (6) centralized acquisition for libraries partici24 pating in the Library of Congress overseas pro25 grams; and
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1 (7) special events and programs, including per2 formances, exhibits, workshops, and meetings.

3 SEC. 103. LIBRARY OF CONGRESS REVOLVING FUND.

4 (a) ESTABLISHMENT.—There is established in the

5 Treasury a fund to be known as the ‘‘Library of Congress

6 Revolving Fund’’. The Fund shall be available, without fis7 cal year limitation, to the extent provided in appropria8 tions Acts, to the Librarian of Congress for the conduct

9 of Fund service activities. The Fund shall consist of cap10 ital under subsection (b) and credits under subsection (c).

11 (b) CAPITAL.—The capital of the Fund shall consist

12 of—

13 (1) amounts appropriated by law for that pur14 pose;

15 (2) upon the transfer of an activity of the Li16 brary of Congress to a Fund service unit, the dif17 ference between (A) the total value of the supplies,

18 equipment, gift fund balances, and other assets of

19 the activity, and (B) the total value of the liabilities

20 (including the value of accrued annual leave of em21 ployees) of the activity; and

22 (3) payments for goods and services provided

23 under section 1535 of title 31, United States Code.
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1 (c) CREDITS.—The Fund shall be credited with all

2 amounts received by Fund service units with respect to

3 Fund service activities, including—

4 (1) fees, advances, and reimbursements;

5 (2) receipts from sales and exchanges of prop6 erty;

7 (3) payments for loss or damage to property;

8 (4) receivables, inventories, and other assets;

9 (5) amounts appropriated by law; and

10 (6) income from investments under subsection

11 (f).

12 (d) INDIVIDUAL ACCOUNTING REQUIREMENT FOR

13 FUND SERVICE UNITS.—The accounts of the Fund, in14 cluding reserve accounts and accounts for research and

15 development, shall be maintained with respect to individ16 ual Fund service units, without commingling.

17 (e) INTEREST ON CERTAIN APPROPRIATED CAP18 ITAL.—Not later than December 31 of each year, the Li19 brarian of Congress shall make an interest payment, with

20 respect to the preceding fiscal year, on the capital in the

21 Fund from appropriations under subsection (b)(1) for the

22 purposes described in paragraphs (3), (4), (6), and (7)

23 of section 102. The Secretary of the Treasury shall deter24 mine the rate of interest using the average market yield

25 on outstanding interest bearing obligations of the United
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1 States with approximately one year remaining until matu2 rity during the month of September preceding the begin3 ning of the fiscal year involved. The interest payment shall

4 be deposited in the Treasury as a miscellaneous receipt.

5 (f) INVESTMENTS.—The Secretary of the Treasury

6 shall invest any portion of the Fund (other than amounts

7 from appropriations and amounts from activities described

8 in paragraphs (1), (2), and (5) of section 102) that, as

9 determined by the Librarian of Congress, is not required

10 to meet current expenses. Investments shall be made in

11 interest bearing obligations of the United States or obliga12 tions guaranteed as to principal and interest by the United

13 States that, as determined by the Librarian of Congress,

14 have maturities suitable for the Fund.

15 (g) EXCESS FUNDS.—If the Librarian of Congress

16 determines that there is an unobligated balance in the

17 Fund that is not necessary for Fund service activities, the

18 Librarian shall deposit that balance in the Treasury as

19 a miscellaneous receipt.

20 (h) FINANCIAL STATEMENTS.—(1) Not later than

21 March 31 of each year, the Librarian of Congress shall

22 submit to the Congress a financial statement for the Fund

23 for the preceding fiscal year.

24 (2) The Comptroller General of the United States

25 shall audit a financial statement under paragraph (1) at
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1 the discretion of the Comptroller General or at the direc2 tion of a committee of the Congress. Any such audit shall

3 be in accordance with generally accepted Government au4 diting standards.

5 (3) The authority to conduct audits under paragraph

6 (2) shall apply with respect to fiscal years beginning with

7 fiscal year 1996.

8 SEC. 104. DEFINITIONS.

9 As used in this title—

10 (1) the term ‘‘Fund’’ means the Library of

11 Congress Revolving Fund;

12 (2) the term ‘‘Fund service activities’’ means

13 the library information products and services de14 scribed in section 102; and

15 (3) the term ‘‘Fund service unit’’ means an or16 ganizational entity of the Library of Congress that,

17 at the direction of the Librarian of Congress, is par18 tially or fully sustained through the Fund.

19 TITLE II—CATALOGING

20 PRODUCTS AND SERVICES

21 SEC. 201. AVAILABILITY OF CATALOGING PRODUCTS AND

22 SERVICES.

23 (a) IN GENERAL.—The Librarian of Congress is au24 thorized to make cataloging products and services, created

25 by the Library of Congress, available for purchase at
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1 prices that do not exceed the distribution costs involved.

2 The amounts received for such products and services shall

3 be deposited in the Treasury to the credit of the appro4 priation for salaries and expenses of the Library of Con5 gress, to remain available until expended for necessary dis6 tribution of such products and services.

7 (b) DEFINITION.—As used in this section, the term

8 ‘‘cataloging products and services’’ means those informa9 tion products and services, in any format now known or

10 later developed, that are used by libraries and library or11 ganizations, including bibliographic products and services,

12 other Library-created data bases, and related technical

13 publications.

14 SEC. 202. REPEAL.

15 The paragraph beginning ‘‘The Librarian of Con16 gress’’ under the heading ‘‘PUBLIC PRINTING AND

17 BINDING’’ in section 1 of the Act entitled ‘‘An Act mak18 ing appropriations for sundry civil expenses of the Govern19 ment for the fiscal year ending June thirtieth, nineteen

20 hundred and three, and for other purposes’’, approved

21 June 28, 1902 (2 U.S.C. 150), is repealed.
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1 TITLE III—RETENTION OF PRO2 CEEDS OF CERTAIN SALES

3 AND RESTITUTION PAYMENTS

4 SEC. 301. SALE OF CERTAIN EXCESS PERSONAL PROPERTY.

5 (a) IN GENERAL.—Subject to subsection (b) and sec6 tion 302, the Librarian of Congress may sell personal

7 property that is excess to the collections or the exchange

8 and donation programs of the Library of Congress, pursu9 ant to regulations promulgated by the Administrator of

10 General Services for the disposal of personal property by

11 sale, except that the proceeds of sales under this section

12 shall be deposited in the fund under section 304.

13 (b) PROHIBITED SALES.—The Librarian may not sell

14 personal property under subsection (a) if the personal

15 property is—

16 (1) received by the Library, as a gift or other17 wise, under a written acceptance or other written

18 agreement by the Library that prohibits sale by the

19 Library;

20 (2) an audio book, braille book, or sound pro21 duction equipment or any other item for the blind or

22 the physically handicapped under the Act entitled

23 ‘‘An Act to provide books for the adult blind’’, ap24 proved March 3, 1931 (2 U.S.C. 135a and 135b); or
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1 (3) a product of the Congressional Research

2 Service, unless the sale is approved by the appro3 priate authority of the Congress.

4 SEC. 302. SPECIAL PROVISIONS FOR COPYRIGHT DEPOSIT

5 SALES.

6 (a) IN GENERAL.—Under section 301, the Librarian

7 of Congress is authorized to sell a copyright deposit de8 scribed in subsection (c) only if—

9 (1) the copyright deposit is sold as scrap for re10 cycling, under a written agreement between the Li11 brary and the purchaser that prohibits resale by the

12 purchaser and use for any purpose other than recy13 cling;

14 (2) the copyright deposit has been owned by the

15 Library of Congress for at least 5 years and there

16 is no reasonable likelihood that the later resale or

17 commercial use of the copyright deposit will materi18 ally impair the market value of the work; or

19 (3) the term of copyright has expired.

20 (b) SPECIFIC PROHIBITIONS.—Notwithstanding sub21 section (a), the Librarian may not sell a copyright deposit

22 described in subsection (c) if—

23 (1) the work is unpublished at the time of de24 posit;
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1 (2) the work is subject to a request for reten2 tion under section 704(e) of title 17, United States

3 Code;

4 (3) the copyright deposit is subject to section

5 407(d) of title 17, United States Code, and the joint

6 order as to disposition has not been issued;

7 (4) the copyright deposit is made in response to

8 a written demand under section 407(d) of title 17,

9 United States Code; or

10 (5) the copyright deposit is subject to a written

11 agreement between the Library and the depositor

12 that prohibits sale by the Library.

13 (c) COPYRIGHT DEPOSIT DESCRIBED.—A copyright

14 deposit, as referred to in subsections (a) and (b), is a copy,

15 phonorecord, or identifying material deposited in the

16 Copyright Office under section 407 or 408 of title 17,

17 United States Code.

18 SEC. 303. ACCEPTANCE OF RESTITUTION PAYMENTS.

19 The Librarian of Congress is authorized to accept,

20 for deposit in the fund under section 304, payments for

21 lost, stolen, damaged, or destroyed books and other mate22 rials from the collections of the Library, if such payments

23 are—

24 (1) ordered by a judicial or administrative au25 thority; or
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1 (2) received from a borrower or other Library

2 user.

3 SEC. 304. FUND FOR RETENTION OF PROCEEDS OF CER4 TAIN SALES AND RESTITUTION PAYMENTS.

5 There is established in the Treasury a fund consisting

6 of the proceeds from sales under sections 301 and 302

7 and payments received under section 303. Amounts in the

8 fund shall be available to the Librarian of Congress, to

9 the extent provided in appropriations Acts, to remain

10 available until expended, for the acquisition of books and

11 other materials for the collections of the Library, including

12 the costs of administering the national and international

13 acquisition programs of the Library.

14 TITLE IV—AMENDMENTS RELAT15 ING TO THE LIBRARY OF CON16 GRESS TRUST FUND BOARD

17 SEC. 401. ADDITIONAL MEMBER ON THE LIBRARY OF CON18 GRESS TRUST FUND BOARD.

19 The first sentence of the first paragraph of the first

20 section of the Act entitled ‘‘An Act to create a Library

21 of Congress Trust Fund Board, and for other purposes’’,

22 approved March 3, 1925 (2 U.S.C. 154), is amended by

23 inserting after ‘‘chairman’’ the following: ‘‘and the vice

24 chairman’’.
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1 SEC. 402. CEILING INCREASE FOR PERMANENT LOAN AC2 COUNT DEPOSITS.

3 The proviso in the third undesignated paragraph of

4 section 2 of the Act entitled ‘‘An Act to create a Library

5 of Congress Trust Fund Board, and for other purposes’’,

6 approved March 3, 1925 (2 U.S.C. 158), is amended by

7 striking out ‘‘$10,000,000’’ and inserting in lieu thereof

8 ‘‘$30,000,000’’.

9 SEC. 403. CLARIFICATION OF INVESTMENT AUTHORITY.

10 Section 2 of the Act entitled ‘‘An Act to create a Li11 brary of Congress Trust Fund Board, and for other pur12 poses’’, approved March 3, 1925, is amended—

13 (1) in the third undesignated paragraph (2

14 U.S.C. 158), by inserting after ‘‘subject to’’ the fol15 lowing: ‘‘subsequent’’; and

16 (2) in the second sentence of the fourth undes17 ignated paragraph (2 U.S.C. 158a), by inserting

18 after ‘‘retained’’ the following: ‘‘by the Librarian’’.

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

20 BOARD.

21 Section 4 of the Act entitled ‘‘An Act to create a Li22 brary of Congress Trust Fund Board, and for other pur23 poses’’, approved March 3, 1925 (2 U.S.C. 160), is

24 amended by adding at the end the following new undesig25 nated paragraph:
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1 ‘‘If so agreed by the Librarian of Congress and the

2 board, a gift or bequest accepted by the Librarian under

3 the first paragraph of this section may be invested or rein4 vested in the same manner as provided for trust funds

5 under the second paragraph of section 2.’’.

6 TITLE V—SUPPORT AND REIM7 BURSEMENT OF ARBITRA8 TION PANELS

9 SEC. 501. PURPOSES OF ARBITRATION PANELS.

10 Section 801(b)(1) of title 17, United States Code, is

11 amended by striking out ‘‘and 116,’’ and inserting in lieu

12 thereof ‘‘, 116, and 119,’’.

13 SEC. 502. SUPPORT AND REIMBURSEMENT OF PANELS.

14 Section 801(d) of title 17, United States Code, is

15 amended to read as follows:

16 ‘‘(d) SUPPORT AND REIMBURSEMENT OF ARBITRA17 TION PANELS.—The Librarian of Congress, upon the rec18 ommendation of the Register of Copyrights, shall provide

19 the copyright arbitration panels with the necessary admin20 istrative services related to proceedings under this chapter,

21 and shall reimburse the arbitrators at such intervals and

22 in such manner as the Librarian shall provide by regula23 tion. Each such arbitrator is an independent contractor

24 acting on behalf of the United States, and shall be paid

25 pursuant to a signed agreement between the Library of
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1 Congress and the arbitrator. Subject to the provisions of

2 section 802(c), payments to the arbitrators shall be con3 sidered costs incurred by the Library and the Copyright

4 Office for purposes of section 802(h)(1).’’.

5 SEC. 503. NONAPPLICABILITY OF LIMITATIONS ON POSI6 TIONS.

7 Section 802(h)(2) of title 17, United States Code, is

8 amended by striking out ‘‘Section 307’’ and inserting in

9 lieu thereof ‘‘Sections 306(b) and 307’’.

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