Calendar No. 180

105TH CONGRESS

1ST SESSION S. 1020

[Report No. 105–86]

A BILL

To amend the National Foundation on the Arts

Acts, and for other purposes.tifacts Indemnity Act to improve and extend theand Humanities Act of 1965 and the Art and ArSEPTEMBER 24, 1997

Reported with an amendment
II

Calendar No. 180

105TH CONGRESS

1ST SESSION S. 1020

[Report No. 105–86]

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

1965 and the Art and Artifacts Indemnity Act to improve and extend

the Acts, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 15, 1997

Mr. JEFFORDS (for himself, Mr. KENNEDY, Mr. CHAFEE, and Mr. REED) introduced the following bill; which was read twice and referred to the Committee on Labor and Human Resources

SEPTEMBER 24, 1997

Reported by Mr. JEFFORDS, with an amendment

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

A BILL

To amend the National Foundation on the Arts and Humanities Act of 1965 and the Art 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,
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1 SECTION 1. SHORT TITLE.

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

3 Amendments of 1997’’.

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

6 HUMANITIES ACT OF 1965

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

8 HUMANITIES.

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

11 to read as follows:

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

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

14 ‘National Foundation on the Arts and the Humanities Act

15 of 1965’.

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

17 is as follows:

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

‘‘Sec. 2. Purposes.

‘‘Sec. 3. Definitions.

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

HUMANITIES

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

Humanities.

‘‘Sec. 102. General limitations on grants.

‘‘Sec. 103. Joint administration.

‘‘Sec. 104. Study on a true endowment.

‘‘Sec. 105. Donations, bequests, and devises.

‘‘Sec. 106. Authorization of appropriations.

‘‘TITLE II—NATIONAL ENDOWMENT FOR THE ARTS

‘‘Sec. 201. Definitions.

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

‘‘TITLE III—NATIONAL ENDOWMENT FOR THE HUMANITIES

‘‘Sec. 301. Definitions.

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

‘‘Sec. 303. Application procedures.

‘‘Sec. 304. Review panels.

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

‘‘Sec. 306. Limitations on grants.

‘‘Sec. 307. Administrative provisions.

‘‘Sec. 308. Reports.

‘‘Sec. 309. Sanctions and payments.

‘‘Sec. 310. Awards.

1 ‘‘SEC. 2. PURPOSES.

2 ‘‘The purposes of this Act are—

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

5 and

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

7 which 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
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1 science and technology alone but gives full value and

2 support to the other great branches of scholarly and

3 cultural activity in order to achieve a better under4 standing of the past, a better analysis of the

5 present, and a better view of the future;

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

7 the humanities and the access of all citizens of the

8 United States to the arts and the humanities, in

9 partnership with local, State, regional, and private

10 agencies, organizations, and individuals;

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

12 described in paragraph (4), to be sensitive to the na13 ture of public support and the need to use public

14 funding in a manner that recognizes the responsibil15 ity of the Federal Government to the public good;

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

17 Federal Government ultimately serve the public pur18 poses the Congress defines and are subject to the

19 conditions that traditionally govern the use of public

20 money;

21 ‘‘(7) to ensure that—

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

23 humanities reflects the high place accorded by

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

25 rich cultural heritage; and
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1 ‘‘(B) public funding of the arts and the hu2 manities contributes to public support for and

3 confidence in the use of taxpayer funds;

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

5 study of the humanities, which require constant

6 dedication and devotion; and

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

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

9 sustain not only a climate encouraging freedom of

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

12 talent; and

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

14 receive in school, background and preparation in the

15 arts and the humanities to enable the students to

16 recognize and appreciate the aesthetic dimensions of

17 their lives, the cultural heritage of the United

18 States, and the full potential of artistic and scholarly

19 expression; and

20 ‘‘(B) to increase access to the arts and the hu21 manities for all persons in the United States by—

22 ‘‘(i) encouraging and developing quality

23 education in the arts and the humanities at all

24 levels, in conjunction with programs of lifelong

25 learning in the arts and the humanities for all
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1 age groups and with formal systems of elemen2 tary, secondary, and postsecondary education;

3 and

4 ‘‘(ii) encouraging and facilitating the work

5 of scholars, artists, arts institutions, and Fed6 eral, State, regional, and local agencies in the

7 area of education in the arts and the human8 ities.

9 ‘‘SEC. 3. DEFINITIONS.

10 ‘‘In this Act:

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

12 ‘‘(A) dance, design, literature, media arts,

13 music, theater, and visual arts;

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

15 the diverse peoples of the United States; and

16 ‘‘(C) the presentation, performance, execu17 tion, exhibition, preservation, and study of the

18 arts described in subparagraph (A) or (B), in19 cluding the study of the arts through appren20 ticeships, internships, and other career oriented

21 work-study experiences for artists and art

22 teachers, and residencies for artists at all edu23 cational levels.

24 ‘‘(2) CULTURAL HERITAGE.—The term ‘cultural

25 heritage’ means the living legacy of creations, skills,
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1 and knowledge handed down from prior genera2 tions—

3 ‘‘(A) that embraces the traditional arts

4 and ideas that are developed informally and

5 that reflect the heritage, tradition, and history

6 of American communities over the centuries;

7 and

8 ‘‘(B) that continues to evolve as new

9 groups contribute to the American experience.

10 ‘‘(3) GRANT.—The term ‘grant’ includes a loan,

11 a contract, and a cooperative agreement.

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

13 State or local arts agency, regional group, and any

14 nonprofit organization or institution in the United

15 States, whether or not incorporated.

16 ‘‘(5) HUMANITIES.—The term ‘humanities’ in17 cludes—

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

19 ‘‘(i) language, both modern and classi20 cal, linguistics, literature, history, jurispru21 dence, philosophy, archaeology, compara22 tive religion, and ethics;

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

24 of the arts;

25 ‘‘(iii) folklore and folklife; and
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1 ‘‘(iv) the aspects of the social sciences

2 that have humanistic content and employ

3 humanistic methods; and

4 ‘‘(B) the study and application of the hu5 manities described in subparagraph (A) to the

6 human environment with particular attention

7 to—

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

9 and history of the United States; and

10 ‘‘(ii) the relevance of the humanities

11 described in subparagraph (A) to the con12 ditions of national life.

13 ‘‘(6) PROGRAM INCOME.—

14 ‘‘(A) IN GENERAL.—The term ‘program

15 income’ means any money that is earned or re16 ceived, by a recipient of a grant made under

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

18 funds made available through the grant or from

19 a product resulting from or related to an activ20 ity carried out under the grant.

21 ‘‘(B) TYPES OF INCOME.—The term in22 cludes—

23 ‘‘(i) income from a fee for service per24 formed, or from the sale of an item cre25 ated, under the grant;
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1 ‘‘(ii) income from a licensing fee on a

2 product related to an activity carried out

3 under the grant;

4 ‘‘(iii) a usage or rental fee for equip5 ment or property acquired under the grant;

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

7 carried out under the grant;

8 ‘‘(v) income from a broadcast or dis9 tribution right for such an activity; and

10 ‘‘(vi) a royalty on a patent or copy11 right for such an activity.

12 ‘‘(7) REGIONAL GROUP.—The term ‘regional

13 group’ means any multistate group, whether or not

14 representative of contiguous States.

15 ‘‘(8) STATE.—The term ‘State’ includes, in ad16 dition to the several States of the United States, the

17 Commonwealth of Puerto Rico, the District of Co18 lumbia, Guam, American Samoa, the Commonwealth

19 of the Northern Mariana Islands, and the United

20 States Virgin Islands.

21 ‘‘(9) UNDERSERVED COMMUNITIES.—The term

22 ‘underserved communities’ means those communities

23 that have historically been outside the purview of

24 arts and humanities programs.
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1 ‘‘TITLE I—NATIONAL FOUNDA2 TION ON THE ARTS AND THE

3 HUMANITIES

4 ‘‘SEC. 101. ESTABLISHMENT OF THE NATIONAL FOUNDA5 TION ON THE ARTS AND THE HUMANITIES.

6 ‘‘(a) ESTABLISHMENT.—There is established a Na7 tional Foundation on the Arts and the Humanities (re8 ferred to in this Act as the ‘Foundation’), which shall be

9 composed of a National Endowment for the Arts, a Na10 tional Endowment for the Humanities (each of which may

11 be referred to in this title as an ‘Endowment’), and an

12 Institute of Museum and Library Services.

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

14 shall be to develop and promote a national policy of sup15 port for the arts and the humanities in the United States.

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

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

18 States shall exercise any direction, supervision, or control

19 over the policy determination, personnel, curriculum, ad20 ministration, or operation, of any school or other non-Fed21 eral agency, institution, organization, or association.

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

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

24 used for the purposes of lobbying or for providing general

25 membership services for groups.
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1 ‘‘SEC. 103. JOINT ADMINISTRATION.

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

3 Foundation a single Office of the Inspector General for

4 the National Endowment for the Arts and the National

5 Endowment for the Humanities. The Office shall be head6 ed by 1 Inspector General appointed in accordance with

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

8 Inspector General shall carry out the duties prescribed in

9 such Act, including conducting appropriate reviews to en10 sure that recipients of grants under titles II and III com11 ply with the applicable regulations and procedures estab12 lished under this Act, including regulations relating to ac13 counting and financial matters.

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

15 National Endowment for the Arts and the National En16 dowment for the Humanities shall report—

17 ‘‘(1) to the Chairperson of the National Endow18 ment for the Arts with respect to matters relating

19 to the National Endowment for the Arts; and

20 ‘‘(2) to the Chairperson of the National Endow21 ment for the Humanities with respect to matters re22 lating to the National Endowment for the Human23 ities.

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

25 National Endowment for the Arts and Chairperson of the

26 National Endowment for the Humanities shall ensure non-
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1 duplication of administrative functions, such as provision

2 of facilities and space, records management, contracting,

3 procurement, printing, and provision of mail and library

4 services. The Chairpersons shall enter into an interagency

5 agreement to jointly carry out the functions with the mini6 mum necessary expense.

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

8 of enactment of the Arts and Humanities Amendments of

9 1997, the Chairperson of the National Endowment for the

10 Arts and the Chairperson of the National Endowment for

11 the Humanities shall jointly prepare and submit to the

12 appropriate committees of Congress a report containing

13 a plan that describes the manner in which the Chair14 persons will jointly carry out the functions described in

15 subsection (c). Not later than 180 days after such date

16 of enactment, the Chairpersons shall implement the plan.

17 ‘‘SEC. 104. STUDY ON A TRUE ENDOWMENT.

18 ‘‘(a) IN GENERAL.—The Chairperson of the National

19 Endowment for the Arts and the Chairperson of the Na20 tional Endowment for the Humanities, in consultation

21 with persons with expertise in the arts, humanities, busi22 ness, charitable giving, and copyright industries, and other

23 appropriate Federal agencies, shall jointly conduct, or con24 tract for, a study on the feasibility of establishing a true

25 endowment for the National Endowment for the Arts and
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1 the National Endowment for the Humanities in order to

2 provide supplemental funding to support the efforts of the

3 National Endowment for the Arts and the National En4 dowment for the Humanities, respectively.

5 ‘‘(b) SCOPE OF STUDY.—The study described in sub6 section (a) shall examine innovative methods through

7 which a true endowment may be funded, including such

8 methods as private fundraising, an extension of a copy9 right term, recapture of funds from past grants of the Na10 tional Endowment for the Arts and the National Endow11 ment for the Humanities that have proven profitable, or

12 any other innovative methods the Chairpersons determine

13 appropriate.

14 ‘‘(c) REPORT.—Not later than 1 year after the date

15 on which funding is made available under this Act to con16 duct the study described in subsection (a), the Chair17 person of the National Endowment for the Arts and the

18 Chairperson of the National Endowment for the Human19 ities shall jointly prepare and submit to the appropriate

20 committees of Congress a report containing recommenda21 tions on the innovative methods through which the true

22 endowment may be funded to support efforts described in

23 subsection (a).
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1 ‘‘SEC. 105. DONATIONS, BEQUESTS, AND DEVISES.

2 ‘‘(a) DONATIONS, BEQUESTS, AND DEVISES TO THE

3 FOUNDATION WITHOUT DESIGNATION.—

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

5 money or other property is donated, bequeathed, or

6 devised to the Foundation without designation of the

7 Endowment for the benefit of which the money or

8 property is intended, each Chairperson of an Endow9 ment shall have authority to receive such money or

10 property.

11 ‘‘(2) UNRESTRICTED DONATIONS, BEQUESTS,

12 AND DEVISES.—Except as provided in paragraph

13 (3), unless the Chairpersons of the Endowments

14 agree otherwise, the money or property described in

15 paragraph (1) shall be deemed to have been donated,

16 bequeathed, or devised in equal shares to each En17 dowment.

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

19 DEVISES.—In any case in which any money or prop20 erty is donated, bequeathed, or devised to the Foun21 dation with a condition or restriction, such money or

22 property shall be deemed to have been donated, be23 queathed, or devised to the Endowment whose func24 tion it is to carry out the purposes of the condition

25 or restriction.
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1 ‘‘(b) DONATIONS, BEQUESTS, AND DEVISES TO THE

2 ENDOWMENTS.—

3 ‘‘(1) CHAIRPERSON OF THE NATIONAL ENDOW4 MENTS FOR THE ARTS.—

5 ‘‘(A) IN GENERAL.—The Chairperson of

6 the National Endowment for the Arts (referred

7 to in this paragraph as the ‘Chairperson’), in

8 carrying the functions of the Chairperson, shall

9 have authority—

10 ‘‘(i) to solicit, accept, receive, invest,

11 and use money and other property do12 nated, bequeathed, or devised to the En13 dowment, either absolutely or in trust, with

14 or without a condition or restriction, in15 cluding a condition that the Chairperson

16 use other funds of the Endowment for the

17 purposes of the donation, bequest, or de18 vise; and

19 ‘‘(ii) to sell or otherwise dispose of

20 such property,

21 to carry out the activities of the Endowment

22 under title II.

23 ‘‘(B) PROCEEDS.—

24 ‘‘(i) RECEIPT OF PROCEEDS.—Any

25 proceeds from a donation, bequest, or de-
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1 vise under subparagraph (A) shall be paid

2 by the donor or the representative of the

3 donor to the Chairperson. Any proceeds

4 from any sale or disposition of property

5 under subparagraph (A) shall be retained

6 by the Chairperson.

7 ‘‘(ii) INVESTMENT OF PROCEEDS.—

8 The Chairperson shall invest the proceeds

9 described in clause (i) that are not re10 quired to carry out subsection (c) and sec11 tion 210. Such investments shall be made

12 only in interest-bearing accounts to the

13 credit of the National Endowment for the

14 Arts, of which only 50 percent of the accu15 mulated interest may be used for the pur16 poses of carrying out the activities of the

17 Endowment under title II.

18 ‘‘(C) Notwithstanding subparagraphs (A)

19 and (B)(ii), any money and other property do20 nated, bequeathed, or devised under subpara21 graph (A)(i) with a condition or restriction shall

22 be used, expended, or invested subject to such

23 condition or restriction.

24 ‘‘(2) CHAIRPERSON OF THE NATIONAL ENDOW25 MENTS FOR THE HUMANITIES.—
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1 ‘‘(A) IN GENERAL.—The Chairperson of

2 the National Endowment for the Humanities

3 (referred to in this paragraph as the ‘Chair4 person’), in carrying the functions of the Chair5 person, shall have authority—

6 ‘‘(i) to solicit, accept, receive, invest,

7 and use money and other property do8 nated, bequeathed, or devised to the En9 dowment, either absolutely or in trust, with

10 or without a condition or restriction, in11 cluding a condition that the Chairperson

12 use other funds of the Endowment for the

13 purposes of the donation, bequest, or de14 vise; and

15 ‘‘(ii) to sell or otherwise dispose of

16 such property,

17 for purposes of carrying out the activities of the

18 Endowment under title III.

19 ‘‘(B) PROCEEDS.—

20 ‘‘(i) RECEIPT OF PROCEEDS.—Any

21 proceeds from a donation, bequest, or de22 vise under subparagraph (A) shall be paid

23 by the donor or the representative of the

24 donor to the Chairperson. Any proceeds

25 from any sale or disposition of property
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1 under subparagraph (A) shall be retained

2 by the Chairperson.

3 ‘‘(ii) INVESTMENT OF PROCEEDS.—

4 The Chairperson shall invest the proceeds

5 described in clause (i) that are not re6 quired to carry out subsection (c) and sec7 tion 310(a). Such investments shall be

8 made only in interest-bearing accounts to

9 the credit of the National Endowment for

10 the Humanities, of which only 50 percent

11 of the accumulated interest may be used

12 for the purposes of carrying out the activi13 ties of the Endowment under title III.

14 ‘‘(C) Notwithstanding subparagraphs (A)

15 and (B)(ii), any money and other property do16 nated, bequeathed, or devised under subpara17 graph (A)(i) with a condition or restriction shall

18 be used, expended, or invested subject to such

19 condition or restriction.

20 ‘‘(c) USE OF DONATIONS, BEQUESTS, AND DEVISES

21 FOR CERTAIN ADMINISTRATIVE EXPENSES.—

22 ‘‘(1) IN GENERAL.—The Chairperson of the

23 National Endowment for the Arts and the Chair24 person of the National Endowment for the Human-
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1 ities shall each use from the amounts received under

2 subsection (b)—

3 ‘‘(A) not more than $100,000 for fiscal

4 year 1998 for official reception and representa5 tion expenses; and

6 ‘‘(B) not more than $50,000 for each sub7 sequent fiscal year for such expenses.

8 ‘‘(2) EXCEPTION.—The requirement of para9 graph (1) shall not apply to expenses associated with

10 the award established under section 310(a).

11 ‘‘(d) TAX LAWS.—For the purposes of the income

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

13 any money or other property donated, bequeathed, or de14 vised to the Foundation or one of the Endowments and

15 received by the Chairperson of an Endowment pursuant

16 to this section shall be deemed to have been donated, be17 queathed, or devised to or for the use of the United States.

18 ‘‘SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

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

20 ‘‘(1) IN GENERAL.—

21 ‘‘(A) TOTAL AUTHORIZATION.—There are

22 authorized to be appropriated to carry out the

23 activities of the National Endowment for the

24 Arts under this Act $175,000,000 for fiscal
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1 year 1998, and such sums as are necessary for

2 the fiscal years 1999 through 2002.

3 ‘‘(B) RESERVATION FOR ADMINISTRA4 TION.—Of the amount appropriated for a fiscal

5 year under subparagraph (A), there shall be re6 served amounts sufficient to carry out sub7 section (c)(1).

8 ‘‘(C) SPECIAL RESERVATION FOR ARTS

9 EDUCATION AND UNDERSERVED COMMUNITIES

10 GRANTS.—In a fiscal year in which the aggre11 gate amount appropriated under subparagraph

12 (A) exceeds $99,494,000, the amount that ex13 ceeds such aggregate amount shall be reserved

14 for making grants under section 202(f) to carry

15 out activities described in subsection (f)(2)(B)

16 of such section.

17 ‘‘(D) RESERVATION FOR PARTNERSHIP

18 GRANTS.—40 percent of the amount appro19 priated for a fiscal year under subparagraph

20 (A) and remaining after amounts are reserved

21 under subparagraphs (B) and (C) shall be re22 served for making grants under section 202(c).

23 ‘‘(E) RESERVATION FOR NATIONAL SIG24 NIFICANCE GRANTS.—40 percent of the amount

25 appropriated for a fiscal year under subpara-
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1 graph (A) and remaining after amounts are re2 served under subparagraphs (B) and (C) shall

3 be reserved for making grants under section

4 202(d).

5 ‘‘(F) RESERVATION FOR DIRECT

6 GRANTS.—10 percent of the amount appro7 priated for a fiscal year under subparagraph

8 (A) and remaining after amounts are reserved

9 under subparagraphs (B) and (C) shall be re10 served for making grants under section 202(e).

11 ‘‘(G) RESERVATION FOR ARTS EDUCATION

12 AND UNDERSERVED COMMUNITIES GRANTS.—

13 10 percent of the amount appropriated for a

14 fiscal year under subparagraph (A) and remain15 ing after amounts are reserved under subpara16 graphs (B) and (C) shall be reserved for mak17 ing grants under section 202(f).

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

20 year shall remain available for obligation until ex21 pended.

22 ‘‘(b) NATIONAL ENDOWMENT FOR THE HUMAN23 ITIES.—

24 ‘‘(1) IN GENERAL.—
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1 ‘‘(A) TOTAL AUTHORIZATION.—There are

2 authorized to be appropriated to carry out the

3 activities of the National Endowment for the

4 Humanities under this Act $175,000,000 for

5 fiscal year 1998, and such sums as are nec6 essary for fiscal years 1999 through 2002.

7 ‘‘(B) RESERVATION FOR ADMINISTRA8 TION.—There shall be reserved amounts suffi9 cient to carry out subsection (c)(2).

10 ‘‘(C) RESERVATION FOR PARTNERSHIP

11 GRANTS.—30 percent of the amount appro12 priated for a fiscal year under subparagraph

13 (A) and remaining after amounts are reserved

14 under subparagraph (B) shall be reserved for

15 making grants under section 302(c). Of the

16 amount reserved under this subparagraph, 5

17 percent of such amount shall be made available

18 for activities relating to elementary and second19 ary education in the humanities.

20 ‘‘(D) RESERVATION FOR NATIONAL

21 GRANTS.—35 percent of the amount appro22 priated for a fiscal year under subparagraph

23 (A) and remaining after amounts are reserved

24 under subparagraph (B) shall be reserved for

25 making grants under section 302(d).
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1 ‘‘(E) RESERVATION FOR RESEARCH AND

2 SCHOLARSHIP GRANTS.—35 percent of the

3 amount appropriated for a fiscal year under

4 subparagraph (A) and remaining after amounts

5 are reserved under subparagraph (B) shall be

6 reserved for making grants under section

7 302(e).

8 ‘‘(2) SUMS REMAINING AVAILABLE.—Sums ap9 propriated pursuant to paragraph (1) for any fiscal

10 year shall remain available for obligation until ex11 pended.

12 ‘‘(c) ADMINISTRATION.—

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

14 ‘‘(A) PERCENTAGE BASED ON FUNDING

15 UNDER $150,000,000.—In a case in which the

16 amount appropriated for a fiscal year under

17 subsection (a)(1)(A) is less than $150,000,000,

18 not more than 17 percent of the amount appro19 priated for a fiscal year under subsection

20 (a)(1)(A) may be made available for the costs

21 of administering title II, or any other program

22 for which the Chairperson of the National En23 dowment for the Arts is responsible, of which

24 not more than $100,000 shall be made available

25 for the President’s Committee on the Arts and
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1 the Humanities, none of which may be used to

2 reimburse members of the Committee for travel

3 and related expenses.

4 ‘‘(B) PERCENTAGE BASED ON FUNDING

5 OVER $150,000,000.—In a case in which the

6 amount appropriated for a fiscal year under

7 subsection (a)(1)(A) is $150,000,000 or great8 er, not more than 12 percent of the amount ap9 propriated for a fiscal year under subsection

10 (a)(1)(A) may be made available for the costs

11 of administering title II, or any other program

12 for which the Chairperson of the National En13 dowment for the Arts is responsible, of which

14 not more than $100,000 shall be made available

15 for the President’s Committee on the Arts and

16 the Humanities, none of which may be used to

17 reimburse members of the Committee for travel

18 and related expenses.

19 ‘‘(2) NATIONAL ENDOWMENT FOR THE HUMAN20 ITIES.—

21 ‘‘(A) PERCENTAGE BASED ON FUNDING

22 UNDER $150,000,000.—In a case in which the

23 amount appropriated for a fiscal year under

24 subsection (b)(1)(A) is less than $150,000,000,

25 not more than 17 percent of the amount appro-
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1 priated for a fiscal year under subsection

2 (b)(1)(A) may be made available for the costs

3 of administering title III, or any other program

4 for which the Chairperson of the National En5 dowment for the Humanities is responsible, of

6 which not more than $100,000 shall be made

7 available for the President’s Committee on the

8 Arts and the Humanities, none of which may be

9 used to reimburse members of the Committee

10 for travel and related expenses.

11 ‘‘(B) PERCENTAGE BASED ON FUNDING

12 OVER $150,000,000.—In a case in which the

13 amount appropriated for a fiscal year under

14 subsection (b)(1)(A) is $150,000,000 or great15 er, not more than 12 percent of such amount

16 may be made available for the costs of admin17 istering title III, or any other program for

18 which the Chairperson of the National Endow19 ment for the Humanities is responsible, of

20 which not more than $100,000 shall be made

21 available for the President’s Committee on the

22 Arts and the Humanities, none of which may be

23 used to reimburse members of the Committee

24 for travel and related expenses.
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1 ‘‘TITLE II—NATIONAL

2 ENDOWMENT FOR THE ARTS

3 ‘‘SEC. 201. DEFINITIONS.

4 ‘‘In this title:

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

6 term ‘developing arts organization’ means a local

7 arts organization of high artistic promise that—

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

9 arts programming in a community; and

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

11 access to the arts in rural and urban under12 served communities.

13 ‘‘(2) FINAL JUDGMENT.—The term ‘final judg14 ment’ means a judgment that is either—

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

16 has authority to review such judgment; or

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

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

19 arts agency’ means a community organization, or an

20 agency of local government, that primarily provides

21 financial support, services, or other programs for

22 artists and arts organizations, for the benefit of the

23 community as a whole.

24 ‘‘(4) OBSCENE; DETERMINED TO BE OB25 SCENE.—
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1 ‘‘(A) OBSCENE.—The term ‘obscene’

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

3 workshop, that—

4 ‘‘(i) the average person, applying con5 temporary community standards, would

6 find that such project, production, or work7 shop, when taken as a whole, appeals to

8 the prurient interest;

9 ‘‘(ii) such project, production, or

10 workshop depicts or describes sexual con11 duct in a patently offensive way; and

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

13 workshop, when taken as a whole, lacks se14 rious literary, artistic, political or scientific

15 value.

16 ‘‘(B) DETERMINED TO BE OBSCENE.—The

17 term ‘determined to be obscene’ means deter18 mined, in a final judgment of a court of record

19 and of competent jurisdiction in the United

20 States, to be obscene.

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

22 means any activity involving the execution or ren23 dition of the arts and meeting such standards as

24 may be approved by the Chairperson of the Endow25 ment.
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1 ‘‘(6) PROJECT.—

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

3 means a program organized to carry out the ob4 jectives of this Act, including a program to fos5 ter United States artistic creativity, to commis6 sion a work of art, or to develop and enhance

7 the widest public access, knowledge, and under8 standing of the arts, and includes, where appro9 priate, rental or purchase of a facility, rental or

10 purchase of land, and acquisition of equipment.

11 ‘‘(B) RENOVATION OR CONSTRUCTION.—

12 Such term also includes—

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

14 ‘‘(I) the amount of the expendi15 ture of Federal funds for such pur16 pose in the case of any facility does

17 not exceed $250,000; and

18 ‘‘(II) two-thirds of the members

19 of the National Council on the Arts

20 (who are present and voting) rec21 ommend a grant involving an expendi22 ture for such purpose; and

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

24 section 202(d), the construction of a facil25 ity, if—
29

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1 ‘‘(I) such construction is for

2 demonstration purposes or under un3 usual circumstances in which there is

4 no other manner by which to accom5 plish an artistic purpose; and

6 ‘‘(II) two-thirds of the members

7 of the National Council on the Arts

8 (who are present and voting) rec9 ommend a grant involving an expendi10 ture for such purpose.

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

12 a program the primary purpose of which is to en13 courage the artistic development or enjoyment of

14 amateur, student, or other participants.

15 ‘‘SEC. 202. ESTABLISHMENT OF THE NATIONAL ENDOW16 MENT FOR THE ARTS.

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

18 the Foundation a National Endowment for the Arts (re19 ferred to in this title as the ‘Endowment’).

20 ‘‘(b) CHAIRPERSON.—

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

22 headed by a chairperson, to be known as the Chair23 person of the Endowment (referred to in this title as

24 the ‘Chairperson’), who shall be appointed by the
30

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

2 Senate.

3 ‘‘(2) TERM.—

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

5 the Chairperson shall be 4 years, except that

6 any Chairperson appointed to fill a vacancy

7 shall serve for the remainder of the term for

8 which the predecessor of the Chairperson was

9 appointed. Notwithstanding any other provision

10 of this subparagraph, on the expiration of the

11 term of office of the Chairperson, the Chair12 person shall serve until the successor to the

13 Chairperson is appointed and has qualified.

14 ‘‘(B) REAPPOINTMENT.—The Chairperson

15 shall be eligible for reappointment.

16 ‘‘(c) PARTNERSHIP GRANTS.—

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

18 is to make grants to States and regional groups to

19 support arts activities, with preference to arts edu20 cation and projects that reach rural and urban un21 derserved communities.

22 ‘‘(2) GRANTS TO STATES.—

23 ‘‘(A) AUTHORITY.—Using the funds re24 served under section 106(a)(1)(D), the Chair25 person, acting on the recommendation of the
31

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1 National Council on the Arts, shall establish

2 and carry out a program of basic State grants

3 to assist States—

4 ‘‘(i)(I) in supporting projects, produc5 tions, or workshops that meet the standard

6 of artistic excellence and artistic merit and

7 that fulfill the purposes of this Act; and

8 ‘‘(II) in developing projects, produc9 tions, or workshops that will furnish pro10 grams, facilities, and services in the arts to

11 people and communities in each of the

12 States; and

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

14 ‘‘(I) stimulate artistic activity

15 and awareness, and broaden public ac16 cess to the arts, in rural and urban

17 underserved communities;

18 ‘‘(II) enhance the artistic capa19 bilities of developing arts organiza20 tions through artistic, programmatic,

21 and staff development; or

22 ‘‘(III) provide technical assist23 ance to developing arts organizations

24 to improve managerial and organiza25 tional skills, financial systems man-
32

•S 1020 RS

1 agement, and long-range fiscal plan2 ning.

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

4 grant under this paragraph for any fiscal year,

5 a State shall submit an application described in

6 section 203 for such grant at such time and in

7 such manner as shall be specified by the Chair8 person and accompany such application with a

9 State plan that the Chairperson finds—

10 ‘‘(i) designates or provides for the es11 tablishment of a State agency (referred to

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

13 sole agency for the administration of the

14 State plan;

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

16 State under this paragraph will be ex17 pended solely on projects, productions, or

18 workshops described in subparagraph (A)

19 and approved by the State agency;

20 ‘‘(iii) provides that the State agency

21 will make such reports, in such manner

22 and containing such information, as the

23 Chairperson may from time to time re24 quire, including a description of the
33

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1 progress made toward achieving the objec2 tives of the State plan;

3 ‘‘(iv) provides—

4 ‘‘(I) an assurance that the State

5 agency has held, after reasonable no6 tice, public meetings in the State to

7 allow the public, interested groups,

8 and groups of artists to present views

9 and make recommendations regarding

10 the State plan; and

11 ‘‘(II) a summary of such rec12 ommendations and the response of the

13 State agency to such recommenda14 tions; and

15 ‘‘(v) contains—

16 ‘‘(I) for the most recent preced17 ing year for which information is

18 available, a description of the level of

19 participation by artists, artists’ orga20 nizations, and arts groups in projects,

21 productions, or workshops supported

22 by funding from the State agency

23 under this paragraph, and a descrip24 tion of the extent to which projects,

25 productions, or workshops supported
34

•S 1020 RS

1 by funding from the State agency

2 under this paragraph were available to

3 all people and communities in the

4 State, especially underserved commu5 nities; and

6 ‘‘(II) a description of projects,

7 productions, or workshops supported

8 by funding from the State agency

9 under this paragraph that exist or are

10 being developed to address the avail11 ability of the arts to all people or com12 munities described in subclause (I) or

13 to secure wider participation of artists

14 and arts organizations described in

15 subclause (I).

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

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

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

21 ‘‘(D) ALLOTMENTS.—

22 ‘‘(i) IN GENERAL.—Of the sums avail23 able to carry out this paragraph for any

24 fiscal year, each State that has an applica-
35

•S 1020 RS

1 tion approved by the Chairperson shall be

2 allotted at least $200,000.

3 ‘‘(ii) INSUFFICIENT FUNDS.—If the

4 sums available to carry out this paragraph

5 for any fiscal year are insufficient to make

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

7 sums shall be allotted so that each such

8 State receives an equal amount.

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

10 which the sums available to carry out this

11 paragraph for any fiscal year are in excess

12 of the amount required to make the allot13 ments under clause (i)—

14 ‘‘(I) the amount of such excess

15 that is not greater than 25 percent of

16 the sums available to carry out this

17 paragraph for such fiscal year shall be

18 available to the Chairperson for mak19 ing grants under this paragraph to

20 States and, in accordance with sub21 paragraph (H), regional groups; and

22 ‘‘(II) the amount of such excess

23 for such fiscal year, if any, that re24 mains after reserving in full for the

25 Chairperson the amount required
36

•S 1020 RS

1 under subclause (I) shall be allotted

2 so that each State that has an appli3 cation approved by the Chair receives

4 an equal amount;

5 but in no event shall any State be allotted

6 less than $200,000 under this paragraph.

7 ‘‘(E) FEDERAL SHARE.—

8 ‘‘(i) IN GENERAL.—Funding provided

9 through a grant made under this para10 graph to a State for any fiscal year shall

11 be available to each State that has an ap12 plication approved by the Chairperson, and

13 has the State plan accompanying the appli14 cation in effect on the first day of such fis15 cal year, to pay not more than 50 percent

16 of the total cost of carrying out any activ17 ity described in subparagraph (A).

18 ‘‘(ii) EXCESS PORTION.—Except as

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

20 funding provided through any grant made

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

22 any fiscal year that exceeds $125,000 shall

23 be available, at the discretion of the Chair24 person, to pay not more than 100 percent

25 of such cost of carrying out an activity
37

•S 1020 RS

1 under this paragraph if such activity would

2 be unavailable to the residents of the State

3 without such portion.

4 ‘‘(iii) PERCENTAGE OF GRANT

5 FUNDS.—The portion of the funding de6 scribed in clause (ii) for any fiscal year

7 that is available to pay not more than 100

8 percent of such cost, as described in clause

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

10 funding provided through such grant for

11 such fiscal year.

12 ‘‘(F) PROHIBITION ON SUPPLANTING NON13 FEDERAL FUNDS.—Funds made available under

14 this paragraph shall be used to supplement, and

15 shall not supplant, non-Federal funds expended

16 for supporting activities described in subpara17 graph (A).

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

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

20 for any fiscal year that is not obligated by the

21 State earlier than 60 days prior to the end of

22 the fiscal year for which the amount is appro23 priated shall be available for making grants to

24 regional groups.
38

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

2 this paragraph (other than subparagraph (D))

3 shall apply to regional groups receiving grants

4 under this paragraph in such manner, and to

5 such extent, as the Chairperson shall by regula6 tion prescribe.

7 ‘‘(I) DEFINITION.—In subparagraph

8 (D)(iii)(II) and notwithstanding section 3(8),

9 the term ‘State’ includes, in addition to the sev10 eral States of the United States, only the juris11 dictions specified in such section that have a

12 population of 200,000 or more, according to the

13 latest decennial census.

14 ‘‘(d) NATIONAL SIGNIFICANCE GRANTS.—

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

16 is to make grants to groups of demonstrated and

17 substantial artistic and cultural importance, for

18 projects, productions, and workshops that will in19 crease the access of all the people of the United

20 States, especially underserved communities, to the

21 best of the arts and culture of the United States.

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

23 section 106(a)(1)(E), the Chairperson, acting on the

24 recommendation of the National Council on the

25 Arts, may establish and carry out a program of
39

•S 1020 RS

1 grants to groups who meet the standard of artistic

2 excellence and artistic merit and who are engaged in

3 or concerned with the arts, for the purpose of paying

4 for the Federal share of the cost of—

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

6 support projects, productions, or workshops de7 scribed in paragraph (3) that will have a na8 tional, regional, or otherwise substantial artistic

9 or cultural impact;

10 ‘‘(B) providing administrative and manage11 ment improvements for the groups, particularly

12 in the field of long-range financial planning, in13 cluding increasing levels of community support

14 and the range of contributors to the programs

15 of such groups; or

16 ‘‘(C) enabling the groups to provide or

17 support projects, productions, or workshops

18 that will serve as models for arts education.

19 ‘‘(3) PROJECTS, PRODUCTIONS, AND WORK20 SHOPS.—

21 ‘‘(A) REQUIRED ELEMENTS.—Each such

22 project, production, or workshop shall—

23 ‘‘(i) have substantial national or re24 gional cultural significance, and encourage

25 professional excellence; or
40

•S 1020 RS

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

2 ‘‘(II) be a project, production, or

3 workshop that, if such a group did not re4 ceive a grant, might otherwise be unavail5 able to citizens for geographic or economic

6 reasons.

7 ‘‘(B) PERMISSIBLE ELEMENTS.—Each

8 such project, production, or workshop may—

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

10 and knowledge, understanding, enjoyment,

11 and appreciation of, the arts by the public;

12 ‘‘(ii) enhance managerial and organi13 zational skills and capabilities;

14 ‘‘(iii) use technology to broaden public

15 access to the arts;

16 ‘‘(iv) expand access to the arts for in17 dividuals with disabilities; or

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

19 minority or underserved populations.

20 ‘‘(4) FEDERAL SHARE REQUIREMENT.—

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

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

23 grant made under this subsection, the Federal

24 share described in paragraph (2) shall be 25

25 percent.
41

•S 1020 RS

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

2 any grant made under this subsection to a

3 group with an annual budget in excess of

4 $3,000,000, the Federal share described in

5 paragraph (2) shall be 16.67 percent.

6 ‘‘(C) ADJUSTMENTS.—The Chairperson

7 may increase the Federal share applicable

8 under this subsection for a designated grant re9 cipient, with review and approval by the Na10 tional Council on the Arts. The Chairperson

11 shall not increase the Federal share above 50

12 percent for the recipient. Not more than 10

13 percent of the funds made available by the En14 dowment for grants under this subsection for

15 any fiscal year may be available for grants for

16 the fiscal year for which the Chairperson in17 creases the applicable Federal share.

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

19 subsection, the Chairperson shall give priority to

20 projects, productions, and workshops that increase

21 the access of the public of the United States, espe22 cially underserved communities, to culture and the

23 arts, including access by touring, by regional or na24 tional dissemination, or by geographic dispersion.

25 ‘‘(e) DIRECT GRANTS.—
42

•S 1020 RS

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

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

3 are broadly representative of the cultural heritage of

4 the United States and broadly geographically rep5 resentative, for projects, productions, and workshops

6 of the highest artistic excellence and artistic merit.

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

8 section 106(a)(1)(F), the Chairperson, acting on the

9 recommendation of the National Council on the

10 Arts, may establish and carry out a program of

11 grants to groups, or individuals who are engaged in

12 or concerned with the arts, to pay for the Federal

13 share of the cost of projects, productions, or work14 shops that meet the standard of artistic excellence

15 and artistic merit and that fulfill the purposes of

16 this Act.

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

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

19 percent.

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

21 subsection, the Chairperson shall give priority to

22 projects, productions, and workshops that will be

23 disseminated widely after completion.

24 ‘‘(5) ADJUSTMENTS.—The Chairperson may in25 crease the Federal share applicable under this sub-
43

•S 1020 RS

1 section for a designated grant recipient, with review

2 and approval by the National Council on the Arts.

3 Not more than 20 percent of the funds made avail4 able by the Endowment for grants under this sub5 section for any fiscal year may be available for

6 grants for the fiscal year for which the Chairperson

7 increases the applicable Federal share.

8 ‘‘(6) SPECIAL RULE FOR GRANTS TO INDIVID9 UALS.—The Chairperson shall only award a grant in

10 accordance with this subsection to an individual de11 scribed in paragraph (2) if such grant is awarded to

12 such individual for a literature fellowship, a National

13 Heritage Fellowship, or a Jazz Masters Fellowship.

14 ‘‘(f) ARTS EDUCATION AND UNDERSERVED COMMU15 NITIES GRANTS.—

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

17 is to make grants to State arts agencies and other

18 groups to carry out activities in arts education and

19 to carry out arts-related activities in underserved

20 communities.

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

22 under section subparagraphs (C) (as may be appro23 priate) and (G) of section 106(a)(1), the Chair24 person, acting on the recommendation of the Na25 tional Council on the Arts, may establish and carry
44

•S 1020 RS

1 out a program of grants to State arts agencies or

2 other groups to pay for the Federal share of the cost

3 of carrying out activities that—

4 ‘‘(A) promote and improve the availability

5 of arts instruction, and improve the quality of

6 arts education, through support of lifelong

7 learning in the arts;

8 ‘‘(B) provide—

9 ‘‘(i) instruction in the arts by inte10 grating and incorporating the arts in the

11 teaching of English, math, science, foreign

12 languages, civics and government, econom13 ics, history, and geography; or

14 ‘‘(ii) courses in the arts through

15 school programs;

16 ‘‘(C) enhance the quality of arts instruc17 tion in programs of teacher education;

18 ‘‘(D) develop arts faculty resources and

19 talents;

20 ‘‘(E) support and encourage the develop21 ment of improved curriculum materials in the

22 arts;

23 ‘‘(F) support apprenticeships, internships,

24 and other career oriented work-study experi25 ences for artists and arts teachers, and encour-
45

•S 1020 RS

1 age residencies of artists at all educational lev2 els;

3 ‘‘(G) stimulate artistic activity and aware4 ness, and broaden public access to the arts, in

5 underserved communities;

6 ‘‘(H) enhance the artistic capabilities of

7 developing arts organizations in underserved

8 communities through artistic, programmatic,

9 and staff development; or

10 ‘‘(I) provide technical assistance to devel11 oping arts organizations in underserved commu12 nities to improve managerial and organizational

13 skills, financial systems management, and long14 range fiscal planning.

15 ‘‘(3) FEDERAL SHARE.—The Federal share de16 scribed in paragraph (2) shall be 50 percent.

17 ‘‘(4) EVALUATION AND REPORTS FOR CERTAIN

18 ACTIVITIES.—

19 ‘‘(A) IN GENERAL.—Each State arts agen20 cy or other group that receives a grant under

21 this subsection to carry out the activity de22 scribed in paragraph (2)(B) shall conduct an

23 ongoing evaluation of the activity.

24 ‘‘(B) EVALUATION COMPONENTS.—In con25 ducting the evaluation under subparagraph (A),
46

•S 1020 RS

1 a State arts agency or other group shall, in the

2 case of students who participate in an activity

3 described in paragraph (2)(B), monitor the

4 progress of the student participants throughout

5 the period of participation.

6 ‘‘(C) REPORT TO CHAIRPERSON.—Not

7 later than 60 days after the date of the comple8 tion of an activity by a State arts agency or

9 other group under subparagraph (A), the State

10 arts agency or other group shall prepare and

11 submit to the Chairperson a report on the eval12 uation conducted under subparagraph (A).

13 ‘‘(D) REPORT TO CONGRESS.—Not later

14 than 60 days after the date of the submission

15 of the report under subparagraph (C), the

16 Chairperson shall prepare and submit to Con17 gress a report on—

18 ‘‘(i) the activities funded under para19 graph (2)(B); and

20 ‘‘(ii) the evaluations conducted by re21 cipients under subparagraph (A).

22 ‘‘SEC. 203. APPLICATION PROCEDURES.

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

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

25 submits an application to the Chairperson in accordance
47

•S 1020 RS

1 with regulations and procedures established by the Chair2 person.

3 ‘‘(b) PROCEDURES.—

4 ‘‘(1) IN GENERAL.—

5 ‘‘(A) CONSIDERATIONS.—In establishing

6 such regulations and procedures for applica7 tions, the Chairperson shall ensure that—

8 ‘‘(i) artistic excellence and artistic

9 merit of the projects, productions, and

10 workshops described in the application are

11 the criteria by which the applications are

12 judged by advisory panels described in sec13 tion 204, taking into consideration general

14 standards of decency and respect for the

15 diverse beliefs and values of the public of

16 the United States;

17 ‘‘(ii) in selecting groups as recipients

18 of grants under section 202, the Chair19 person shall give preference to artistically

20 rural and urban underserved communities

21 and artists and artistic groups that have

22 traditionally been underrepresented in the

23 arts; and

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

25 workshops described in the applications,
48

•S 1020 RS

1 and awards of grants under this title, are

2 consistent with the objectives of section

3 202 and this section.

4 ‘‘(B) OBSCENITY PROVISIONS.—Such regu5 lations and procedures shall clearly indicate

6 that obscenity is without artistic merit, is not

7 protected speech, and shall not be funded under

8 this title. Projects, productions, and workshops

9 that are determined to be obscene shall be pro10 hibited from receiving grants under this title

11 from the Endowment.

12 ‘‘(2) CONSIDERATIONS FOR THE CHAIR13 PERSON.—In considering an application for a grant

14 under this title, the Chairperson shall consider the

15 extent to which the projects, productions, and work16 shops described in the application fulfill the pur17 poses of this Act, as well as their artistic excellence

18 and artistic merit, as determined by the Chair19 person.

20 ‘‘(3) CONSTRUCTION.—The disapproval or ap21 proval by the Chairperson of an application for a

22 grant under this title shall not be construed to

23 mean, and shall not be considered to be evidence

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

25 the applicant requested a grant, is or is not obscene.
49

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1 ‘‘SEC. 204. ADVISORY PANELS.

2 ‘‘(a) IN GENERAL.—The Chairperson shall utilize re3 view by advisory panels—

4 ‘‘(1) as the first step in the review of applica5 tions submitted under this Act; and

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

7 Council on the Arts in all cases involving requests

8 for grants authorized under this title, except cases

9 in which the Chairperson exercises authority dele10 gated under section 205(f)(2).

11 ‘‘(b) PROCEDURES.—

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

13 such panels shall recommend applications for

14 projects, productions, and workshops on the basis of

15 artistic excellence and artistic merit, consistent with

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

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

18 only general ranges of funding to be provided

19 through the grants and may not recommend specific

20 amounts of such funding.

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

22 Chairperson shall issue regulations and establish

23 procedures to—

24 ‘‘(A) ensure that all the panels are com25 posed, to the extent practicable, of individuals

26 providing a wide geographic, ethnic, and minor-
50

•S 1020 RS

1 ity representation as well as individuals reflect2 ing diverse artistic and cultural points of view;

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

4 least 2 members representing lay individuals

5 who are—

6 ‘‘(i) knowledgeable about the arts;

7 ‘‘(ii) not engaged in the arts as a pro8 fession; and

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

10 organizations or arts organizations;

11 ‘‘(C) ensure that, when feasible, the proce12 dures used by the panels to carry out their re13 sponsibilities are standardized;

14 ‘‘(D) require each such panel—

15 ‘‘(i) to create written records summa16 rizing—

17 ‘‘(I) all meetings and discussions

18 of such panel; and

19 ‘‘(II) the recommendations made

20 by such panel to the Council; and

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

22 the public in a manner that protects the

23 privacy of individual applicants and panel

24 members;
51

•S 1020 RS

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

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

3 deliver a written report on the work being re4 viewed, in order to assist panelists in making

5 their recommendations;

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

7 each such panel change substantially from year

8 to year; and

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

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

11 no 2 of which may be consecutive; and

12 ‘‘(G) ensure that the panels recommend

13 more applicants for grants than are anticipated

14 can be provided funding through the grants

15 with available funds.

16 ‘‘(4) PROHIBITION ON CONFLICTS OF INTER17 EST.—

18 ‘‘(A) IN GENERAL.—In making appoint19 ments to the panels, the Chairperson shall en20 sure that an individual who has a pending ap21 plication for a grant authorized under this title,

22 who is an employee or agent of an organization

23 with such a pending application, or who has a

24 direct or indirect financial interest in any appli25 cation under consideration by such a panel,
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1 does not serve as a member of any panel before

2 which such application is pending.

3 ‘‘(B) DURATION.—The prohibition de4 scribed in subparagraph (A) shall commence

5 with respect to such individual beginning on the

6 date such application is submitted, and shall

7 continue until a final decision on the application

8 has been reached by the Chairperson.

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

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

11 the Endowment a National Council on the Arts (referred

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

13 ‘‘(b) COMPOSITION.—

14 ‘‘(1) IN GENERAL.—The Council shall be com15 posed of the Chairperson of the Endowment, who

16 shall be the Chairperson of the Council, and 20

17 other members appointed by the President, by and

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

19 be selected—

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

21 United States who—

22 ‘‘(i) are widely recognized for their

23 broad knowledge of, or expertise in, the

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

3 the arts;

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

5 members of cultural professions, educators,

6 civic cultural leaders, and others who are pro7 fessionally engaged in the arts; and

8 ‘‘(C) so as collectively to provide an appro9 priate distribution of members among the major

10 art fields.

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

12 making such appointments, give consideration to

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

14 submitted to the President by leading national orga15 nizations in the major art fields. In making such ap16 pointments, the President shall give due regard to

17 equitable representation of women, racially and eth18 nically diverse individuals, and individuals with dis19 abilities, who are involved in the arts. Members of

20 the Council shall be appointed so as to represent eq21 uitably geographical areas in the United States, in22 cluding rural and urban underserved communities.

23 ‘‘(c) TERMS.—

24 ‘‘(1) IN GENERAL.—
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1 ‘‘(A) STAGGERED TERMS.—Each member

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

3 and the terms shall be staggered.

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

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

7 in the year of expiration.

8 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

9 TERM.—Each member who has served on the

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

11 eligible for reappointment for 1 term of 6 years.

12 ‘‘(D) VACANCY APPOINTMENTS.—Any

13 member appointed to fill a vacancy shall serve

14 for the remainder of the term for which the

15 predecessor of the member was appointed.

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

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

20 successor to the member takes office.

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

22 ‘‘(A) MEMBERS WHOSE TERMS EXPIRED IN

23 1996 BUT CONTINUE TO SERVE.—

24 ‘‘(i) IN GENERAL.—The terms of 10

25 members of the Council whose terms ex-
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1 pired on September 3, 1996 and who con2 tinue to serve because a successor has not

3 been appointed shall be deemed to expire

4 on the date of enactment of the Arts and

5 Humanities Amendments of 1997.

6 ‘‘(ii) SUCCESSORS.—The President

7 shall appoint 7 members of the Council to

8 succeed members whose terms are deemed

9 to expire as described in clause (i). The

10 terms of the successors shall expire on

11 September 3, 2002.

12 ‘‘(B) MEMBERS WHOSE TERMS EXPIRE IN

13 1998.—The President shall appoint 6 members

14 of the Council to succeed the 8 members of the

15 Council whose terms expire on September 3,

16 1998. The terms of the successors shall expire

17 on September 3, 2004.

18 ‘‘(C) MEMBERS WHOSE TERMS EXPIRE IN

19 2000.—The President shall appoint 7 members

20 of the Council to succeed the 8 members of the

21 Council whose terms expire on September 3,

22 2000. The terms of the successors shall expire

23 on September 3, 2006.

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, in the same amounts

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

7 of title 5, United States Code, for persons employed inter8 mittently in Federal Government service.

9 ‘‘(e) MEETINGS AND DUTIES.—

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

11 the call of the Chairperson but not less often than

12 twice during each calendar year. Eleven members of

13 the Council shall constitute a quorum. All policy

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

15 ‘‘(2) DUTIES.—The Council shall—

16 ‘‘(A) advise the Chairperson with respect

17 to policies, programs, and procedures for carry18 ing out the functions of the Chairperson under

19 this title;

20 ‘‘(B) review applications for grants author21 ized under this title and make recommendations

22 to the Chairperson with respect to—

23 ‘‘(i) whether to approve particular ap24 plications for grants authorized under this

25 title that have been determined by advisory
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1 panels to have artistic excellence and artis2 tic merit; and

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

4 Chairperson should provide through such a

5 grant with respect to each such application

6 the Council recommends for approval;

7 ‘‘(C) use as criteria for the recommenda8 tions of the Council—

9 ‘‘(i) the extent to which the works de10 scribed in the applications fulfill the pur11 poses of this Act and the requirements

12 under the provisions of this Act;

13 ‘‘(ii) the artistic excellence and artistic

14 merit of the works described in the appli15 cations; and

16 ‘‘(iii) the extent to which the applicant

17 serves an underserved community,

18 as determined by each Council member;

19 ‘‘(D) recommend more applications for

20 funding through grants than are anticipated

21 can be provided funding through the grants

22 with available funds;

23 ‘‘(E) create written records summarizing—

24 ‘‘(i) all meetings and discussions of

25 the Council; and
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1 ‘‘(ii) recommendations made by the

2 Council to the Chairperson; and

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

4 public in a manner that protects the privacy of

5 individual applicants for grants authorized

6 under this title, advisory panel members, and

7 Council members.

8 ‘‘(f) ACTIONS BY CHAIRPERSON.—

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

10 approve or disapprove any application for a grant

11 authorized under this title until the Chairperson has

12 received the recommendation of the Council on such

13 application. The Chairperson shall have final author14 ity to approve each such application, and shall deter15 mine the final amount of funding through any grant

16 awarded. The Chairperson may not approve an ap17 plication with respect to which the Council makes a

18 negative recommendation.

19 ‘‘(2) DELEGATIONS.—In the case of an applica20 tion, or amendment of an application, submitted

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

22 request for change in a grant amount of 20 percent

23 or less, the Chairperson may approve or disapprove

24 such application, amendment, or request, if such ac25 tion is taken pursuant to the terms of an express
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1 and direct delegation of authority from the Council

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

3 Chairperson is reported to the Council at the next

4 regularly scheduled meeting of the Council. Such ac5 tion by the Chairperson shall be used with discretion

6 and shall not become a normal practice of providing

7 funding through a grant authorized under this title.

8 The terms of any such delegation of authority shall

9 not permit obligations for expenditure of funds

10 under such delegation for any fiscal year that exceed

11 an amount equal to 2 percent of the sums appro12 priated for the fiscal year pursuant to section

13 106(a)(1)(A).

14 ‘‘SEC. 206. LIMITATIONS ON GRANTS.

15 ‘‘(a) PROHIBITION ON SUBGRANTS.—The Chair16 person shall establish procedures to ensure that no fund17 ing provided through a grant under this title, except a

18 grant made to a State agency, a regional group, or a local

19 arts agency that is an agency of local government, may

20 be used to make a grant to any other organization or indi21 vidual to conduct activity independent of the direct grant

22 recipient. Nothing in this subsection shall prohibit pay23 ments made in exchange for goods or services rendered.

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

25 grant awarded under this title shall be used for seasonal
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1 support to a group, unless the application submitted by

2 the group for such a grant specifically identifies the con3 tent of each activity to be carried out under such a grant

4 for the season involved, including a specific identification

5 of any project, production, or workshop.

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

7 AND WORKSHOPS IN SPECIFIED DISCIPLINES.—Each

8 project, production, or workshop funded under this title

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

10 ‘‘(d) LABOR STANDARDS.—

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

12 the receipt of any grant under this title that the

13 grant recipient furnish adequate assurances to the

14 Secretary of Labor that—

15 ‘‘(A) all professional performers and relat16 ed or supporting professional personnel em17 ployed on projects or productions, or in work18 shops, that are financed in whole or in part

19 under this title will be paid, without subsequent

20 deduction or rebate on any account, not less

21 than the minimum compensation as determined

22 by the Secretary of Labor to be the prevailing

23 minimum compensation for persons employed in

24 similar activities; and
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1 ‘‘(B) no part of any project, production, or

2 workshop that is financed in whole or in part

3 under this title will be performed or engaged in

4 under working conditions that are unsanitary or

5 hazardous or dangerous to the health and safe6 ty of the employees engaged in such project,

7 production, or workshop.

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

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

10 production, or workshop described in paragraph

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

12 of compliance with the assurance described in para13 graph (1)(B).

14 ‘‘(3) STANDARDS, REGULATIONS, AND PROCE15 DURES.—The Secretary of Labor shall have the au16 thority to prescribe such standards, regulations, and

17 procedures as the Secretary of Labor may determine

18 to be necessary or appropriate to carry out this sub19 section.

20 ‘‘(e) LIMITATION ON GRANT AWARD.—

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

22 more than 2 grant awards under this title.

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

24 group, other than a State arts agency, may receive

25 more than 3 grant awards in a fiscal year under this
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1 title, except that this paragraph shall not apply to

2 a group that has entered into a cooperative agree3 ment with the Endowment to receive assistance

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 nec5 essary, governing the manner in which the functions

6 of the Chairperson shall be carried out;

7 ‘‘(2) to appoint and determine the compensa8 tion of such employees, subject to title 5, United

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

10 functions of the Chairperson, to define the duties of

11 such employees, and to supervise and direct the ac12 tivities of such employees;

13 ‘‘(3) to procure the temporary and intermittent

14 services of experts and consultants, including panels

15 of experts, and compensate the experts and consult16 ants in accordance with section 3109 of title 5,

17 United States Code;

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

19 of individuals and reimburse the individuals for trav20 el expenses, including per diem in lieu of subsist21 ence, in the same amounts and to the same extent

22 as authorized under section 5703 of title 5, United

23 States Code, for persons employed intermittently in

24 Federal Government service;
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1 ‘‘(5) to make advance, progress, and other pay2 ments without regard to section 3324 of title 31,

3 United States Code;

4 ‘‘(6) to rent office space in the District of Co5 lumbia; and

6 ‘‘(7) to make other necessary expenditures.

7 ‘‘(b) PUBLICATIONS.—Official publications of the En8 dowment under this title may be supported without regard

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

10 Code, if the Chairperson consults with the Joint Commit11 tee on Printing of the Congress.

12 ‘‘(c) COORDINATION.—The Chairperson shall coordi13 nate the programs of the Endowment, insofar as prac14 ticable, with other Federal programs and programs under15 taken by other public agencies or private groups, and shall

16 develop the programs of the Endowment with due regard

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

18 be made by other Federal agencies under the existing pro19 grams. The Chairperson may enter into interagency agree20 ments to promote or assist with the arts-related activities

21 of other Federal agencies, on a reimbursable or non22 reimbursable basis, and may use funds authorized to be

23 appropriated to carry out this title to pay for the costs

24 of such promotion or assistance.
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1 ‘‘SEC. 208. REPORTS.

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

3 Chairperson shall submit an annual report to the Presi4 dent for submission to the appropriate committees of Con5 gress on or before the 15th day of April of each year. The

6 report shall summarize the activities of the Endowment

7 for the preceding year, and shall include such rec8 ommendations as the Chairperson determines to be appro9 priate.

10 ‘‘(b) FINANCIAL REPORTS AND COMPLIANCE.—

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

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

13 Chairperson that—

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

15 in the application described in section 203—

16 ‘‘(i) a detailed description of the pro17 posed project, production, or workshop for

18 which the grant is requested;

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

20 such proposed project, production, or

21 workshop; and

22 ‘‘(iii) an assurance that the applicant

23 will meet the standards of artistic excel24 lence and artistic merit;

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

26 title carry out the proposal consistent with the
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1 description contained in the application, as ap2 proved by the Chairperson for funding through

3 the grant; and

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

5 change the activities carried out under the

6 grant justify the requested change by a written

7 request subject to approval by the Chairperson;

8 and

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

10 and comply with requirements to submit to the

11 Chairperson—

12 ‘‘(i) interim reports, including an an13 nual report for each project, production, or

14 workshop carried out under the grant dur15 ing a period exceeding 1 year, describing

16 the progress of the grant recipient in car17 rying out such project, production, or

18 workshop and compliance by the grant re19 cipient with the conditions of receipt of

20 such grant;

21 ‘‘(ii) financial reports containing such

22 information as the Chairperson determines

23 to be necessary to ensure that the funding

24 made available through the grant is ex-
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1 pended in accordance with the terms and

2 conditions under which the grant is made;

3 ‘‘(iii) a final report describing the

4 project, production, or workshop carried

5 out with the funding provided through the

6 grant and the compliance by the grant re7 cipient with the conditions of receipt of

8 such grant, including the condition that

9 the work assisted meet the standards of

10 artistic excellence and artistic merit; and

11 ‘‘(iv) in the case of a project or pro12 duction, and if practicable, as determined

13 by the Chairperson, a copy of such project

14 or production.

15 ‘‘(2) REPORT REQUIREMENTS.—The Chair16 person shall determine the appropriate form and

17 timing of interim reporting described in paragraph

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

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

20 (iv) of paragraph (1)(C) 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 project, produc24 tion, or workshop, whichever occurs earlier. The

25 Chairperson may extend the 90-day period if the re-
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1 cipient shows good cause why such an extension

2 should be granted.

3 ‘‘(c) EVALUATION.—The Chairperson shall conduct a

4 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 (b).

9 ‘‘(d) REPORTS.—The Chairperson shall establish pro10 cedures to require that no additional funding shall be pro11 vided to a recipient of a grant authorized under this title

12 unless such recipient has submitted to the Chairperson all

13 required interim, financial, and final reports under sub14 section (b).

15 ‘‘SEC. 209. SANCTIONS AND PAYMENTS.

16 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recip17 ient of a grant made under this title, or an indirect recipi18 ent of funding provided through the grant, substantially

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

20 as determined by the Chairperson, the Chairperson may—

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

22 make any subsequent funding to the direct or indi23 rect recipient under this title, take into consideration

24 the results of the post-award evaluation conducted

25 under section 208(c);
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1 ‘‘(2) prohibit the direct and indirect recipients

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

3 the project, production, or workshop for which the

4 grant was received with, the Endowment; and

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

6 published, require that the publication contain the

7 following statement: ‘The opinions, findings, conclu8 sions, and recommendations expressed in this publi9 cation do not reflect the views of the National En10 dowment for the Arts.’.

11 ‘‘(b) NONCOMPLIANCE.—

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

13 the actions described in paragraph (2) whenever the

14 Chairperson, after providing reasonable notice and

15 an opportunity for hearing, finds that—

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

17 this title, or an indirect recipient of funding

18 provided through the grant, is not complying

19 substantially with the provisions of this title;

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

21 received a grant under this title, or an indirect

22 recipient of funding provided through the grant,

23 is not complying substantially with the terms

24 and conditions of the State plan accompanying
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1 the application approved for the grant under

2 this title; or

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

4 to a recipient, State agency, or regional group

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

6 diverted from the purposes for which such fund7 ing was provided.

8 ‘‘(2) ACTIONS.—On making the finding de9 scribed in paragraph (1), the Chairperson shall im10 mediately notify the direct recipient, State agency,

11 or regional group that received the funding at issue

12 that—

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

14 under this title to such recipient, agency, or

15 group until there is no longer any default or

16 failure to comply or the diversion is corrected;

17 or

18 ‘‘(B) if compliance or correction is impos19 sible, until such recipient, agency, or group re20 pays or arranges the repayment of the Federal

21 funds that were improperly diverted or ex22 pended.

23 ‘‘(c) OBSCENE WORKS.—

24 ‘‘(1) DETERMINATION.—If, after providing rea25 sonable notice and opportunity for a hearing on the
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1 record, the Chairperson determines that a direct re2 cipient of a grant under this title, or an indirect re3 cipient of funding provided through the grant, used

4 the funding for a project, production, or workshop

5 that is determined to be obscene, the Chairperson

6 shall require that until the direct recipient repays

7 such funding (in such amount, and under such

8 terms and conditions, as the Chairperson determines

9 to be appropriate) to the Endowment, no subsequent

10 funding shall be provided under this title to such re11 cipient.

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

13 subsection to the Endowment shall be deposited in

14 the Treasury of the United States and credited as

15 miscellaneous receipts.

16 ‘‘(3) APPLICATION.—

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

18 apply with respect to grants made before Octo19 ber 1, 1990.

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

21 not apply with respect to a project, production,

22 or workshop after the expiration of the 7-year

23 period beginning on the latest date on which a

24 grant is made under this title for such project,

25 production, or workshop.
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1 ‘‘(d) RECAPTURE.—

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

3 under this title shall pay the amount described in

4 paragraph (2) to the Endowment if the Chairperson

5 finds that the recipient has derived net program in6 come in excess of the match required under the

7 terms of the agreement from a commercially success8 ful project, production, or workshop funded that ex9 ceeds the lesser of—

10 ‘‘(A) $50,000; or

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

12 ‘‘(2) AMOUNT.—At the discretion of the Chair13 person, the amount referred to in paragraph (1) is

not less than 1⁄3 and not more than 1 14 ⁄2 of the

15 amount of the net program income generated within

16 5 years after the end of the grant period, but not

17 more than the amount of the funding, unless the

18 Chairperson has reached an agreement with the

19 grantee upon the award of a grant that the amount

20 referred to in paragraph (1) shall exceed the amount

21 of the grant.

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

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

24 paid under subsection (d), or repaid under this Act, in
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1 a special interest bearing account to the credit of the En2 dowment.

3 ‘‘SEC. 210. NATIONAL MEDAL OF ARTS AWARDS.

4 ‘‘(a) NATIONAL MEDAL OF ARTS AWARDS.—

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

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

7 such design as is determined to be appropriate by

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

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

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

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

14 basis of recommendations from the National Council

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

16 judgment of the President are deserving of special

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

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

21 of such medals may be awarded in any calendar

22 year.

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

24 awarded the National Medal of Arts if at the time
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1 such award is made such individual meets the re2 quirements of section 206(g).

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

4 National Medal of Arts if such group is organized or

5 incorporated in the United States.

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

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

10 appropriate Members of Congress.

11 ‘‘(b) FUNDS.—The Chairperson shall use amounts

12 received by the National Endowment for the Arts under

13 section 105(b)(1)(A) to carry out this section.

14 ‘‘TITLE III—NATIONAL ENDOW15 MENT FOR THE HUMANITIES

16 ‘‘SEC. 301. DEFINITIONS.

17 ‘‘In this title:

18 ‘‘(1) PROJECT.—

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

20 means an activity organized to carry out the ob21 jectives of this title.

22 ‘‘(B) RENOVATION OR CONSTRUCTION.—

23 Such term also includes—

24 ‘‘(i) the renovation of a facility if—
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1 ‘‘(I) the amount of the expendi2 ture of Federal funds for such pur3 pose in the case of any facility does

4 not exceed $250,000; and

5 ‘‘(II) two-thirds of the members

6 of the National Council on the Hu7 manities (who are present and voting)

8 recommend a grant involving an ex9 penditure for such purpose; and

10 ‘‘(ii) for purposes of subsections (d)

11 and (e) of section 302, the construction of

12 a facility if—

13 ‘‘(I) such construction is for

14 demonstration purposes or under un15 usual circumstances in which there is

16 no other manner by which to accom17 plish a humanistic purpose; and

18 ‘‘(II) two-thirds of the members

19 of the National Council on the Hu20 manities (who are present and voting)

21 recommend a grant involving an ex22 penditure for such purpose.

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

24 an activity the primary purpose of which is to pro-
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1 mote scholarship and teaching among the partici2 pants.

3 ‘‘SEC. 302. ESTABLISHMENT OF THE NATIONAL ENDOW4 MENT FOR THE HUMANITIES.

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

6 the Foundation a National Endowment for the Human7 ities (referred to in this title as the ‘Endowment’).

8 ‘‘(b) CHAIRPERSON.—

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

10 headed by a chairperson, to be known as the Chair11 person of the Endowment (referred to in this title as

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

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

14 Senate.

15 ‘‘(2) TERM.—

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

17 the Chairperson shall be 4 years, except that

18 any Chairperson appointed to fill a vacancy

19 shall serve for the remainder of the term for

20 which the predecessor of the Chairperson was

21 appointed. Notwithstanding any other provision

22 of this subparagraph, on the expiration of the

23 term of office of the Chairperson, the Chair24 person shall serve until the successor to the

25 Chairperson is appointed and has qualified.
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1 ‘‘(B) REAPPOINTMENT.—The Chairperson

2 shall be eligible for reappointment.

3 ‘‘(c) PARTNERSHIP GRANTS.—

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

5 is to support programs of humanities councils at the

6 State and local levels.

7 ‘‘(2) DEFINITION.—

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

9 subparagraph (B), in this subsection, the term

10 ‘State entity’ means—

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

12 an application submitted under paragraph

13 (4); or

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

15 to submit an application under paragraph

16 (4), an appropriate entity that obtains ap17 proval of an application submitted under

18 paragraph (5).

19 ‘‘(B) JURISDICTION.—

20 ‘‘(i) STATE ENTITY.—In paragraph

21 (6)(C)(ii), the term ‘State entity’ means a

22 State entity, as defined in subparagraph

23 (A), for a State.

24 ‘‘(ii) STATE.—In clause (i), and not25 withstanding section 3(8), the term ‘State’,
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1 includes, in addition to the several States

2 of the United States, only the jurisdictions

3 specified in such section that have a popu4 lation of 200,000 or more, according to the

5 latest decennial census.

6 ‘‘(3) GENERAL AUTHORITY.—Using funds re7 served under section 106(b)(1)(C), the Chairperson,

8 acting on the recommendation of the National Coun9 cil on the Humanities, is authorized, in accordance

10 with the provisions of this subsection, to establish

11 and carry out a program of grants to assist State

12 entities—

13 ‘‘(A) in paying for not more than 50 per14 cent of the cost (except as otherwise provided in

15 this subsection) of supporting activities that

16 achieve the objectives described in subpara17 graphs (A) through (F) of subsection (d)(2)

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

19 (e)(2); or

20 ‘‘(B) in matching contributions from non21 Federal sources made to a trust fund the pur22 pose of which is to provide long-term financial

23 support for such activities.

24 ‘‘(4) GRANTS THROUGH STATE AGENCIES.—
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1 ‘‘(A) DESIGNATION.—In order to receive a

2 grant under this subsection for any fiscal year,

3 if a State desires to designate or to provide for

4 the establishment of a State agency (referred to

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

6 agency for the administration of the State plan

7 referred to in subparagraph (B) relating to the

8 grant, such State shall designate as the State

9 agency the humanities council or shall provide

10 for the establishment of such a council.

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

12 any State that designates or provides for the

13 establishment of a State agency as described in

14 subparagraph (A), the chief executive officer of

15 the State shall submit, before the beginning of

16 each fiscal year, an application for a grant and

17 accompany such application with a State plan

18 that the Chairperson finds—

19 ‘‘(i) designates or provides for the es20 tablishment of a State agency;

21 ‘‘(ii) provides that the chief executive

22 officer of the State will appoint new mem23 bers to the State humanities council des24 ignated or established under subparagraph

25 (A), as vacancies occur as a result of the
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1 expiration of the terms of members of such

2 council, until the chief executive officer has

3 appointed all of the members of such coun4 cil;

5 ‘‘(iii) provides for the expenditure,

6 from State funds, of an amount equal to

7 50 percent of the portion of the funding

8 received by such State through a grant

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

10 the minimum State allotment), or 25 per11 cent of the total amount of funding re12 ceived by such State through grants made

13 under this subsection, whichever is greater,

14 for the fiscal year involved (except as oth15 erwise provided in paragraph (7));

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

17 State under this subsection will be ex18 pended solely on activities, approved by the

19 State agency, that—

20 ‘‘(I) achieve the objectives de21 scribed in subparagraphs (A) through

22 (F) of subsection (d)(2) and subpara23 graphs (A) and (B) of subsection

24 (e)(2); and
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1 ‘‘(II) are designed to bring the

2 humanities to the public;

3 ‘‘(v) provides assurances that State

4 funds will be made available for the pur5 pose of meeting the requirements of this

6 subparagraph;

7 ‘‘(vi) provides that the State agency

8 will make such reports, in such manner

9 and containing such information, as the

10 Chairperson may from time to time re11 quire, including a description of the

12 progress made toward achieving the objec13 tives of the State plan;

14 ‘‘(vii) provides—

15 ‘‘(I) an assurance that the State

16 agency has held, after reasonable no17 tice, public meetings in the State to

18 allow the public, interested organiza19 tions, and scholars to present views

20 and make recommendations regarding

21 the State plan; and

22 ‘‘(II) a summary of such rec23 ommendations and of the response of

24 the State agency to such recommenda25 tions; and
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1 ‘‘(viii) contains—

2 ‘‘(I) for the most recent preced3 ing year for which information is

4 available, a description of the extent

5 to which the activities supported by

6 funding from the State agency under

7 this subsection were available to all

8 people and communities in the State

9 and a description of the level of par10 ticipation by scholars and scholarly

11 organizations in activities supported

12 by funding from the State agency

13 under this subsection; and

14 ‘‘(II) a description of activities

15 supported by funding from the State

16 agency under this subsection that

17 exist or are being developed to ad18 dress the availability of the human19 ities to all people or communities de20 scribed in subclause (I) or to secure

21 wider participation of scholars and

22 scholarly organizations described in

23 subclause (I).

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

25 not approve an application described in sub-
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1 paragraph (B) unless the accompanying State

2 plan satisfies the requirements specified in sub3 paragraph (B).

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

5 ‘‘(A) DESIGNATION.—In any State in

6 which the chief executive officer of the State

7 fails to submit an application under paragraph

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

9 make grants under paragraph (3) to an appro10 priate entity in the State, and each such entity

11 shall establish a procedure that ensures that 8

12 members of the governing body of such entity

13 shall be appointed by an appropriate officer or

14 agency of such State, except that in no event

may the number of such members exceed 1 15 ⁄3 of

16 the total membership of such governing body.

17 The officer or agency shall select the members

18 from among individuals who have knowledge of

19 or experience in the humanities.

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

21 fails to submit an application under paragraph

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

23 in the State desiring to receive a grant under

24 this subsection for the fiscal year shall submit

25 an application for such grant at such time and
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1 in such manner as shall be specified by the

2 Chairperson, and accompany such application

3 with a State plan that the Chairperson finds—

4 ‘‘(i) provides assurances that such en5 tity will comply with the requirements of

6 subparagraph (A);

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

8 entity under this paragraph will be ex9 pended solely on activities that—

10 ‘‘(I) achieve the objectives de11 scribed in subparagraphs (A) through

12 (F) of subsection (d)(2) and subpara13 graphs (A) and (B) of subsection

14 (e)(2); and

15 ‘‘(II) are designed to bring the

16 humanities to the public;

17 ‘‘(iii) establishes a membership policy

18 that is designed to ensure broad public

19 representation with respect to activities ad20 ministered by such entity;

21 ‘‘(iv) provides for a nomination proc22 ess that ensures opportunities for nomina23 tion to membership in the governing body

24 from various groups in such State and

25 from a variety of segments of the popu-
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1 lation of such State, including individuals

2 who by reason of their achievement, schol3 arship, or creativity in the humanities, are

4 especially qualified to serve as members of

5 the body;

6 ‘‘(v) provides for a membership rota7 tion process that ensures the regular rota8 tion of the membership and officers of

9 such entity;

10 ‘‘(vi) establishes reporting procedures

11 that are designed to inform the chief exec12 utive officer of such State, and other ap13 propriate officers and agencies, of the ac14 tivities of such entity;

15 ‘‘(vii) establishes procedures to ensure

16 public access to information relating to

17 such activities;

18 ‘‘(viii) provides that such entity will

19 make such reports, at such times, in such

20 manner, and containing such information,

21 as the Chairperson may require, including

22 a description of the progress made toward

23 achieving the objectives of the State plan;

24 ‘‘(ix) provides—
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1 ‘‘(I) an assurance that the entity

2 has held, after reasonable notice, pub3 lic meetings in the State to allow the

4 public, interested organizations, and

5 scholars to present views and make

6 recommendations regarding the State

7 plan; and

8 ‘‘(II) a summary of such rec9 ommendations and of the response of

10 the entity to such recommendations;

11 and

12 ‘‘(x) contains—

13 ‘‘(I) for the most recent preced14 ing year for which information is

15 available, a description of the extent

16 to which activities supported by fund17 ing from the entity under this sub18 section were available to all people

19 and communities in the State and a

20 description of the level of participation

21 by scholars and scholarly organiza22 tions in activities supported by fund23 ing from the entity under this sub24 section; and
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•S 1020 RS

1 ‘‘(II) a description of activities

2 supported by funding from the entity

3 under this subsection that exist or are

4 being developed to address the avail5 ability of the humanities to all people

6 or communities described in subclause

7 (I) or to secure wider participation of

8 scholars and scholarly organizations

9 described in subclause (I).

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

11 not approve an application described in sub12 paragraph (B) unless the accompanying plan

13 satisfies the requirements specified in subpara14 graph (B).

15 ‘‘(6) ALLOTMENTS.—

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

17 to carry out this subsection for any fiscal year,

18 each State entity shall be allotted at least

19 $200,000.

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

21 available to carry out this subsection for any

22 fiscal year are insufficient to make the allot23 ments under subparagraph (A) in full, such

24 sums shall be allotted so that each State entity

25 receives an equal amount.
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•S 1020 RS

1 ‘‘(C) EXCESS FUNDS.—In any case in

2 which the sums available to carry out this sub3 section for any fiscal year are in excess of the

4 amount required to make the allotments under

5 subparagraph (A)—

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

7 excess for such fiscal year shall be avail8 able to the Chairperson for making grants

9 under this subsection to State entities;

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

11 excess for such fiscal year shall be allotted

12 so that each State entity receives an equal

13 amount; and

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

15 such excess for such fiscal year shall be al16 lotted so that each State entity receives an

17 amount that bears the same ratio to such

18 remainder as the population of the State

19 for which the application is approved bears

20 to the population of all the States.

21 ‘‘(7) LIMITATIONS.—

22 ‘‘(A) FEDERAL SHARE.—

23 ‘‘(i) IN GENERAL.—Funding provided

24 through a grant made under this sub25 section to a State entity for any fiscal year
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1 shall be available to each State entity that

2 has an application approved by the Chair3 person, and has the State plan accompany4 ing the application in effect on the first

5 day of such fiscal year, to pay not more

6 than 50 percent of the total cost of carry7 ing out any activity described in paragraph

8 (3).

9 ‘‘(ii) EXCESS PORTION.—Except as

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

11 funding provided through any grant made

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

13 for any fiscal year that exceeds $125,000

14 shall be available, at the discretion of the

15 Chairperson, to pay not more than 100

16 percent of such cost of carrying out an ac17 tivity under this subsection if such activity

18 would be unavailable to the residents of

19 the State without such portion.

20 ‘‘(iii) PERCENTAGE OF GRANT

21 FUNDS.—The portion of the funding de22 scribed in clause (ii) for any fiscal year

23 that is available to pay not more than 100

24 percent of such cost, as described in clause

25 (ii), shall not exceed 20 percent of the total
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•S 1020 RS

1 of the funding provided through such grant

2 for such fiscal year.

3 ‘‘(B) PROHIBITION ON SUPPLANTING NON4 FEDERAL FUNDS.—Funds made available under

5 this subsection shall be used to supplement, and

6 shall not supplant, non-Federal funds expended

7 for supporting activities described in paragraph

8 (3).

9 ‘‘(8) UNOBLIGATED FUNDS.—Any amount al10 lotted to a State entity under paragraph (6) for any

11 fiscal year that is not obligated by the State entity

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

13 year for which the amount is appropriated shall be

14 available for making grants under subsections (d)

15 and (e).

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

17 The Chairperson may not make grants under this

18 subsection to more than 1 entity in any State.

19 ‘‘(d) NATIONAL GRANTS.—

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

21 is to provide support for grants to groups, individ22 uals, and State agencies or entities to carry out ac23 tivities relating to education and the public human24 ities that have a national audience and are of na25 tional significance, such as activities relating to edu-
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1 cation in the humanities, media projects, projects in

2 museums and by historical organizations, projects in

3 libraries and archives, public humanities projects,

4 endowment building, and technology activities.

5 ‘‘(2) GENERAL AUTHORITY.—Using funds re6 served under section 106(b)(1)(D), the Chairperson,

7 acting on the recommendation of the National Coun8 cil on the Humanities, may establish and carry out

9 a program of grants to groups, or in appropriate

10 cases individuals, who or which meet the standard of

11 excellence in the humanities and significance in the

12 humanities, or State agencies or entities, to pay for

13 the Federal share of the cost of activities, in accord14 ance with subsection (f), to—

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

16 a national policy to further the public good

17 through public funding of the humanities;

18 ‘‘(B) initiate and support research and

19 programs to strengthen the research and teach20 ing potential of the United States in the hu21 manities;

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

23 the humanities;

24 ‘‘(D) foster education in, and public under25 standing and appreciation of, the humanities;
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1 ‘‘(E) support projects that foster or pro2 mote literacy;

3 ‘‘(F) ensure that the benefit of the pro4 grams of the Endowment will also be available

5 to the citizens of the United States where such

6 programs would otherwise be unavailable due to

7 geographic or economic reasons;

8 ‘‘(G) enable the groups to increase the lev9 els of continuing support and to increase the

10 range of contributors to the program of the

11 groups;

12 ‘‘(H) provide administrative and manage13 ment improvements for the groups, particularly

14 in the field of long-range financial planning;

15 ‘‘(I) enable the groups to increase audience

16 participation in, and appreciation of, programs

17 sponsored by the groups;

18 ‘‘(J) develop new sources of long-term sup19 port for educational, scholarly, and public pro20 grams in the humanities, including renovating

21 or constructing facilities, augmenting or estab22 lishing endowment funds, and purchasing cap23 ital equipment to ensure financial stability;

24 ‘‘(K) stimulate greater cooperation among

25 the groups especially designed to serve better
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1 the communities in which the groups are lo2 cated; and

3 ‘‘(L) foster greater citizen involvement in

4 planning the cultural development of a commu5 nity.

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

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

8 is to encourage the development and dissemination

9 of significant scholarship in the humanities by

10 groups, individuals, and State agencies or entities by

11 such means as fellowships for college and university

12 faculty and independent scholars, dissertation

13 grants, summer stipends, and funds for scholarly

14 publications, reference materials, basic research, in15 stitutional programs, and preservation.

16 ‘‘(2) GENERAL AUTHORITY.—Using funds re17 served under section 106(b)(1)(E), the Chairperson,

18 acting on the recommendation of the National Coun19 cil on the Humanities, may establish and carry out

20 a program of grants to groups, individuals, State

21 agencies, and State entities for the purpose of pay22 ing for the Federal share of the cost, in accordance

23 with subsection (f), of—

24 ‘‘(A) initiating and supporting (including

25 supporting through fellowships) training, work-
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1 shops, programs, research, and publications, in

2 the humanities, that have substantial scholarly

3 and cultural significance and that reach or re4 flect the cultural heritage of the United States;

5 ‘‘(B) fostering projects that provide access

6 to, and preserving materials important to re7 search, education, and public understanding re8 garding, the humanities;

9 ‘‘(C) enabling the groups to increase the

10 levels of continuing support and to increase the

11 range of contributors to the program of the

12 groups;

13 ‘‘(D) providing administrative and manage14 ment improvements for the groups, particularly

15 in the field of long-range financial planning;

16 and

17 ‘‘(E) developing new sources of long-term

18 support for educational, scholarly, and public

19 programs in the humanities, including renovat20 ing or constructing facilities, augmenting or es21 tablishing endowment funds, and purchasing

22 capital equipment to ensure financial stability.

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

24 fellowship awarded to an individual under paragraph

25 (2)(A) may be used for the purpose of supporting
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1 study or research at an appropriate nonprofit insti2 tution selected by the individual, for a stated period

3 of time. The total amount of any grant under para4 graph (2)(A) to any group engaging in workshop ac5 tivities for which an admission or other charge is

6 made to the general public shall not exceed 30 per7 cent of the total cost of such activities.

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

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

10 under this subsection, the Chairperson shall give

11 particular regard to scholars, and educational and

12 cultural institutions, that traditionally have been

13 underrepresented in the humanities.

14 ‘‘(f) FEDERAL SHARE AND NON-FEDERAL SHARE

15 FOR NATIONAL GRANTS AND RESEARCH AND SCHOLAR16 SHIP GRANTS.—

17 ‘‘(1) FEDERAL SHARE.—

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

19 paragraph (3), and subject to subparagraph

20 (B), the Federal share described subsection

21 (d)(2) or (e)(2) shall be determined by the

22 Chairperson, after recommendation from the

23 Council.

24 ‘‘(B) SPECIAL RULE.—With respect to a

25 fiscal year, the Chairperson shall ensure that
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1 the aggregate amount of funding provided by

2 the Chairperson through grants under sub3 sections (d)(2) and (e)(2) for that fiscal year

4 shall equal the aggregate amount of non-Fed5 eral contributions made for that fiscal year, in

6 accordance with paragraph (2), by recipients of

7 grants awarded under subsections (d)(2) and

8 (e)(2).

9 ‘‘(2) NON-FEDERAL SHARE.—

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

11 paragraph (3) and subject to subparagraph (B),

12 the Chairperson shall have the discretion in de13 termining the amount of non-Federal contribu14 tion that a recipient of a grant under sub15 section (d)(2) or (e)(2) shall be required to

16 make toward the cost of an activity funded

17 under the grant.

18 ‘‘(B) SPECIAL RULE.—With respect to a

19 fiscal year, the Chairperson shall ensure that

20 the aggregate amount of non-Federal contribu21 tions provided by recipients of grants under

22 subsections (d)(2) and (e)(2) for that fiscal

23 year shall equal the aggregate amount of fund24 ing that the Chairperson provided through
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1 grants under subsections (d)(2) and (e)(2) for

2 that fiscal year.

3 ‘‘(3) SPECIAL RULES FOR ACTIVITIES RELATING

4 TO NEW SOURCES OF LONG-TERM SUPPORT.—

5 ‘‘(A) FEDERAL SHARE.—The Federal

6 share described in subsection (d)(2) or (e)(2)

7 for an activity described in subsection (d)(2)(J)

8 or (e)(2)(E) shall be an amount equal to 25

9 percent of the cost of the activity.

10 ‘‘(B) NON-FEDERAL SHARE.—A recipient

11 that receives a grant under subsection (d) to

12 carry out an activity described in paragraph

13 (2)(J) of such subsection, or subsection (e) to

14 carry out an activity described in paragraph

15 (2)(E) of such subsection, shall make available

16 non-Federal contributions toward the costs of

17 the activity in an amount equal to 75 percent

18 of such costs ($3 for each $1 of Federal funds

19 provided in the grant).

20 ‘‘SEC. 303. APPLICATION PROCEDURES.

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

22 State, group, individual, agency, or, organization shall

23 submit an application to the Chairperson at such time,

24 in such manner, and containing such information as the

25 Chairperson may prescribe.
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1 ‘‘SEC. 304. REVIEW PANELS.

2 ‘‘The Chairperson may select panels of experts under

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

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

8 represent diverse humanistic perspectives and geographic

9 factors, and who broadly represent cultural diversity.

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

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

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

14 ‘‘(b) COMPOSITION.—

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

17 shall be the Chairperson of the Council, and 20

18 other members appointed by the President, by and

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

20 be selected—

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

22 United States who—

23 ‘‘(i) are recognized for their broad

24 knowledge of, or expertise in, the human25 ities; and
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1 ‘‘(ii) have established records of dis2 tinguished service, or achieved eminence, in

3 the humanities;

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

5 who are professionally engaged in the human6 ities; and

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

9 humanities fields.

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

11 making such appointments, give consideration to

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

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

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

17 and ethnically diverse individuals, and individuals

18 with disabilities, who are involved in the humanities.

19 Members of the Council shall be appointed so as to

20 represent equitably geographical areas in the United

21 States.

22 ‘‘(c) TERMS.—

23 ‘‘(1) IN GENERAL.—
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1 ‘‘(A) STAGGERED TERMS.—Each member

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

3 and the terms shall be staggered.

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

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

7 in the year of expiration.

8 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

9 TERM.—Each member who has served on the

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

11 eligible for reappointment for 1 term of 6 years.

12 ‘‘(D) VACANCY APPOINTMENTS.—Any

13 member appointed to fill a vacancy shall serve

14 for the remainder of the term for which the

15 predecessor of the member was appointed.

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

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

20 successor to the member takes office.

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

22 ‘‘(A) MEMBERS WHOSE TERMS EXPIRED IN

23 1996 BUT CONTINUE TO SERVE.—

24 ‘‘(i) IN GENERAL.—The terms of 6

25 members of the Council whose terms ex-
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1 pired on September 3, 1996 and who con2 tinue to serve because a successor has not

3 been appointed shall be deemed to expire

4 on the date of enactment of the Arts and

5 Humanities Amendments of 1997.

6 ‘‘(ii) SUCCESSORS.—The President

7 shall appoint 3 members of the Council to

8 succeed members whose terms are deemed

9 to expire as described in clause (i).

10 ‘‘(B) MEMBERS WHOSE TERMS EXPIRE IN

11 2000.—

12 ‘‘(i) IN GENERAL.—The terms of 2

13 members of the Council whose terms expire

14 on September 3, 2000 shall be deemed to

15 expire on September 3, 2002.

16 ‘‘(ii) SUCCESSORS.—The President

17 shall not appoint any members to succeed

18 the members whose terms are deemed to

19 expire as described in clause (i).

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

21 receive compensation at a rate to be fixed by the Chair22 person but not to exceed the daily equivalent of the maxi23 mum rate authorized for a position above grade GS–15

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

25 United States Code, and be allowed travel expenses includ-
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1 ing per diem in lieu of subsistence, as authorized under

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

3 employed intermittently in Federal Government service.

4 ‘‘(e) MEETINGS AND DUTIES.—

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

6 the call of the Chairperson but not less often than

7 twice during each calendar year. Eleven members of

8 the Council shall constitute a quorum.

9 ‘‘(2) DUTIES.—The Council shall—

10 ‘‘(A) advise the Chairperson with respect

11 to policies, programs, and procedures for carry12 ing out the functions of the Chairperson under

13 this title; and

14 ‘‘(B) review applications for grants author15 ized under this title and make recommendations

16 to the Chairperson with respect to the approval

17 of each application.

18 ‘‘(f) ACTIONS BY CHAIRPERSON.—

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

20 approve or disapprove any application for a grant

21 authorized under this title until the Chairperson has

22 received the recommendation of the Council on such

23 application, unless the Council fails to make a rec24 ommendation on the application within a reasonable

25 time.
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1 ‘‘(2) DELEGATIONS.—In the case of an applica2 tion submitted under this title and involving $35,000

3 or less, the Chairperson may approve or disapprove

4 such application if such action is taken pursuant to

5 the terms of an express and direct delegation of au6 thority from the Council to the Chairperson, and if

7 each such action by the Chairperson is reviewed by

8 the Council. The terms of any such delegation of au9 thority shall not permit obligations for expenditure

10 of funds under such delegation for any fiscal year

11 that exceed an amount equal to 3 percent of the

12 sums appropriated for the fiscal year pursuant to

13 section 106(b)(1)(A).

14 ‘‘SEC. 306. LIMITATIONS ON GRANTS.

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

16 ‘‘(1) DEFINITIONS.—In this subsection:

17 ‘‘(A) PRODUCTION ENTITY.—The term

18 ‘production entity’ means any partnership, cor19 poration, business enterprise, or other organiza20 tion engaged in the production of a film or pub21 lication.

22 ‘‘(B) GROUP.—The term ‘group’ includes

23 any State or local government, State or local

24 public agency, Indian tribe, or nonprofit asso25 ciation, organization, institution, or society.
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1 ‘‘(C) NATIONAL OF THE UNITED

2 STATES.—The term ‘national of the United

3 States’ means a citizen of the United States or

4 a person who owes permanent allegiance to the

5 United States.

6 ‘‘(2) CRITERIA.—The Chairperson, with the ad7 vice of the National Council on the Humanities,

8 shall establish criteria for eligibility for grants made

9 under this title. The criteria shall provide the follow10 ing:

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

12 receive a grant under this title if—

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

14 group inures to the benefit of any private

15 stockholder, or individual; and

16 ‘‘(ii) a donation to such group is al17 lowable as a charitable contribution under

18 section 170(c) of the Internal Revenue

19 Code of 1986.

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

21 entity that is a nonprofit group shall be eligible

22 to receive a grant under this title if the Chair23 person, with the advice of the National Council

24 on the Humanities, determines that providing

25 such a grant will significantly advance the
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1 knowledge or understanding of the humanities

2 in the United States.

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

4 eligible to receive a grant under this title if—

5 ‘‘(i) the individual is a citizen or na6 tional of the United States; and

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

8 of the National Council on the Humanities,

9 determines that providing the grant will

10 significantly advance the knowledge or un11 derstanding of the humanities in the Unit12 ed States.

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

14 under this title for an activity (other than an activity con15 ducted by a school, college, or university) for which a di16 rect or an indirect admission charge is requested if the

17 proceeds, after deducting reasonable costs, are used for

18 purposes other than assisting the grant recipient to de19 velop high standards of scholarly excellence or encourage

20 greater appreciation of the humanities by the citizens of

21 the United States.

22 ‘‘(c) LABOR STANDARDS.—The provisions of section

23 206(d) shall apply to activities financed under this title

24 in the same manner and to the same extent as the provi25 sions apply to activities financed under title II.
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1 ‘‘SEC. 307. ADMINISTRATIVE PROVISIONS.

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

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

5 functions of the Chairperson, shall have authority—

6 ‘‘(1) to prescribe such regulations and proce7 dures as the Chairperson determines to be nec8 essary, governing the manner in which the functions

9 of the Chairperson shall be carried out;

10 ‘‘(2) to appoint and determine the compensa11 tion of such employees, subject to title 5, United

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

13 functions of the Chairperson, to define the duties of

14 such employees, and to supervise and direct the ac15 tivities of such employees;

16 ‘‘(3) to procure the temporary and intermittent

17 services of experts and consultants, including panels

18 of experts, and compensate the experts and consult19 ants in accordance with section 3109 of title 5,

20 United States Code;

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

22 of individuals and reimburse the individuals for trav23 el expenses, including per diem in lieu of subsist24 ence, in the same amounts and to the same extent

25 as authorized under section 5703 of title 5, United
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1 States Code, for persons employed intermittently in

2 Federal Government service;

3 ‘‘(5) to make advance, progress, and other pay4 ments without regard to section 3324 of title 31,

5 United States Code;

6 ‘‘(6) to rent office space in the District of Co7 lumbia; and

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

9 ‘‘(b) PUBLICATIONS.—Official publications of the En10 dowment under this title may be supported without regard

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

12 Code, if the Chairperson consults with the Joint Commit13 tee on Printing of the Congress.

14 ‘‘(c) COORDINATION.—The Chairperson shall coordi15 nate the programs of the Endowment, insofar as prac16 ticable, with other Federal programs, programs of des17 ignated State humanities agencies, and programs under18 taken by other public agencies or private groups, and shall

19 develop the programs of the Endowment with due regard

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

21 be made by other Federal agencies under the existing pro22 grams. The Chairperson may enter into interagency agree23 ments to promote or assist with the humanities-related ac24 tivities of other Federal agencies, on a reimbursable or

25 nonreimbursable basis, and may use funds authorized to
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1 be appropriated to carry out this title to pay for the costs

2 of such promotion or assistance.

3 ‘‘SEC. 308. REPORTS.

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

5 Chairperson shall submit an annual report to the Presi6 dent for submission to the appropriate committees of Con7 gress on or before the 15th day of April of each year. The

8 report shall summarize the activities of the Endowment

9 for the preceding year, and may include such evaluations

10 and other reports as the Chairperson determines to be ap11 propriate.

12 ‘‘(b) FINANCIAL REPORTS AND COMPLIANCE.—

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

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

15 Chairperson that each such grant recipient agree to

16 and comply with requirements to submit to the

17 Chairperson—

18 ‘‘(A) financial reports containing such in19 formation as the Chairperson determines to be

20 necessary to ensure that the funding provided

21 through the grant is expended in accordance

22 with the terms and conditions under which the

23 grant is made;

24 ‘‘(B) a report describing the activity car25 ried out with the funding provided through the
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1 grant and the compliance by the grant recipient

2 with the conditions of receipt of such grant, in3 cluding the condition that the work assisted

4 meets the standards of excellence in humanities

5 and significance in the humanities; and

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

7 Chairperson, a copy of the work resulting from

8 the activity.

9 ‘‘(2) REPORTS.—The reports and copy de10 scribed in paragraph (1) shall be due not later than

11 90 days after the end of the period for which such

12 grant recipient receives funding through the grant or

13 90 days after the completion of the work, whichever

14 occurs earlier. The Chairperson may extend the 90-

15 day period if the recipient shows good cause why

16 such an extension should be granted.

17 ‘‘(c) EVALUATION.—The Chairperson shall conduct a

18 post-award evaluation of activities for which grants are

19 made by the Chairperson under this title. Such evaluation

20 may include an audit to determine the accuracy of the re21 ports required to be submitted by grant recipients under

22 subsection (b).

23 ‘‘(d) ANNUAL REPORT OF NATIONAL COUNCIL ON

24 THE HUMANITIES.—
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1 ‘‘(1) IN GENERAL.—The National Council on

2 the Humanities may submit an annual report to the

3 President for submission to the appropriate commit4 tees of Congress on or before the 15th day of April

5 of each year.

6 ‘‘(2) CONTENTS.—The report shall include writ7 ten records summarizing—

8 ‘‘(A) all meetings and discussions of the

9 Council; and

10 ‘‘(B) recommendations made by the Coun11 cil to the Chairperson.

12 ‘‘(3) PRIVACY.—The Council shall ensure that

13 the information contained in the report will be pre14 sented in a manner that protects the privacy of indi15 vidual applicants for grants authorized under this

16 title and Council members.

17 ‘‘SEC. 309. SANCTIONS AND PAYMENTS.

18 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recip19 ient of a grant made under this title, or an indirect recipi20 ent of funding provided through the grant, substantially

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

22 as determined by the Chairperson, the Chairperson may—

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

24 make any subsequent funding to the direct or indi25 rect recipient under this title, take into consideration
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1 the results of the post-award evaluation conducted

2 under section 308(c);

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

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

5 the project, production, or workshop for which the

6 grant was received with, the Endowment; and

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

8 published, require that the publication contain the

9 following statement: ‘The opinions, findings, conclu10 sions, and recommendations expressed in this publi11 cation do not reflect the views of the National En12 dowment for the Humanities.’.

13 ‘‘(b) NONCOMPLIANCE.—

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

15 the actions described in paragraph (2) whenever the

16 Chairperson, after providing reasonable notice and

17 an opportunity for hearing, finds that—

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

19 this title, or an indirect recipient of funding

20 provided through the grant, is not complying

21 substantially with the provisions of this title;

22 ‘‘(B) a State agency or entity that received

23 a grant under this title, or an indirect recipient

24 of funding provided through the grant, is not

25 complying substantially with terms and condi-
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1 tions of the State plan accompanying the appli2 cation approved for the grant under this title;

3 or

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

5 to a recipient or State agency or entity de6 scribed in subparagraph (A) or (B) has been di7 verted from the purposes for which such fund8 ing was provided.

9 ‘‘(2) ACTIONS.—On making the finding de10 scribed in paragraph (1), the Chairperson shall im11 mediately notify the direct recipient, or State agency

12 or entity, that received the funding at issue that—

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

14 under this title to such recipient or State agen15 cy or entity until there is no longer any default

16 or failure to comply or the diversion is cor17 rected; or

18 ‘‘(B) if compliance or correction is impos19 sible, until such recipient or State agency or en20 tity repays or arranges the repayment of the

21 Federal funds that were improperly diverted or

22 expended.

23 ‘‘(c) RECAPTURE.—

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

25 under this title shall pay the amount described in
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1 paragraph (2) to the Endowment if the Chairperson

2 finds that the recipient has derived net program in3 come in excess of the match required under the

4 terms of the agreement from the commercially suc5 cessful activities funded that exceeds the lesser of—

6 ‘‘(A) $50,000; or

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

8 ‘‘(2) AMOUNT.—At the discretion of the Chair9 person, the amount referred to in paragraph (1) is

not less than 1⁄3 and not more than 1 10 ⁄2 of the

11 amount of the net program income generated within

12 5 years after the end of the grant period, but not

13 more than the amount of the funding, unless the

14 Chairperson has reached an agreement with the

15 grantee upon the award of a grant that the amount

16 referred to in paragraph (1) shall exceed the amount

17 of the grant.

18 ‘‘(d) ACCOUNT.—Except as otherwise provided in this

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

20 paid under subsection (c), or repaid under this Act, in a

21 special interest bearing account to the credit of the En22 dowment.

23 ‘‘SEC. 310. AWARDS.

24 ‘‘(a) JEFFERSON LECTURE IN THE HUMANITIES

25 AWARD.—The Chairperson may award annually the Jef-
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1 ferson Lecture in the Humanities Award to 1 individual

2 for distinguished intellectual achievement in the human3 ities. Each such award shall not exceed $10,000.

4 ‘‘(b) NATIONAL HUMANITIES MEDAL.—

5 ‘‘(1) IN GENERAL.—The President may award

6 the National Humanities Medal to individuals or

7 groups whose work—

8 ‘‘(A) has expanded the understanding of

9 citizens of the United States in the area of hu10 manities;

11 ‘‘(B) has broadened such citizens engage12 ment with the humanities; or

13 ‘‘(C) has helped preserve and expand the

14 access of such citizens to important resources in

15 the humanities.

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

17 of such medals may be awarded in any calendar

18 year.

19 ‘‘(3) CEREMONIES.—The presentation of the

20 National Humanities Medal shall be made by the

21 President with such ceremonies as the President

22 may determine to be appropriate, including attend23 ance by appropriate Members of Congress.’’.
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1 SEC. 102. CONFORMING AMENDMENTS.

2 Section 8G of the Inspector General Act of 1978 (5

3 U.S.C. App.) is amended—

4 (1) in subsection (a)—

5 (A) in paragraph (2), by striking ‘‘the Na6 tional Endowment for the Arts, the National

7 Endowment for the Humanities,’’ and inserting

8 ‘‘the portion of the National Foundation on the

9 Arts and the Humanities consisting of the Na10 tional Endowment for the Arts and the Na11 tional Endowment for the Humanities,’’; and

12 (B) in paragraph (4)—

13 (i) in subparagraph (A), by striking at

14 the end ‘‘and’’;

15 (ii) in subparagraph (B), by inserting

16 after the semicolon ‘‘and’’; and

17 (iii) by adding at the end the follow18 ing:

19 ‘‘(C) with respect to the National Endow20 ment for the Arts and the National Endowment

21 for the Humanities, the term means the Chair22 person of the National Endowment for the Arts

23 with respect to matters relating to the National

24 Endowment for the Arts and the Chairperson of

25 the National Endowment for the Humanities

26 with respect to matters relating to the Chair-
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1 person of the National Endowment for the Hu2 manities;’’;

3 (2) in subsection (c), by inserting before the pe4 riod the following: ‘‘, except that the Inspector Gen5 eral for the National Endowment for the Arts and

6 the National Endowment for the Humanities shall

7 be jointly appointed by the Chairperson of the Na8 tional Endowment for the Arts and the Chairperson

9 of the National Endowment for the Humanities’’;

10 and

11 (3) in the first sentence of subsection (d), by in12 serting before the period the following: ‘‘, except as

13 provided in section 103 of the National Foundation

14 on the Arts and the Humanities Act of 1965’’.

15 TITLE II—ARTS AND ARTIFACTS

16 INDEMNITY ACT

17 SEC. 201. ARTS AND ARTIFACTS.

18 The Arts and Artifacts Indemnity Act (20 U.S.C. 971

19 et seq.) is amended to read as follows:

20 ‘‘SECTION 1. SHORT TITLE.

21 ‘‘This Act may be cited as the ‘Arts and Artifacts

22 Indemnity Act’.
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1 ‘‘SEC. 2. INDEMNITY FOR EXHIBITIONS OF ARTS AND ARTI2 FACTS.

3 ‘‘The Federal Council on the Arts and Humanities

4 (referred to in this Act as the ‘Council’) established under

5 section 8, may enter into agreements to indemnify against

6 loss or damage such items as may be eligible for such in7 demnity agreements under section 3—

8 ‘‘(1) in accordance with the provisions of this

9 Act; and

10 ‘‘(2) on such terms and conditions as the Coun11 cil shall prescribe, by regulation, in order to achieve

12 the objectives of this Act and, consistent with such

13 objectives, to protect the financial interest of the

14 United States.

15 ‘‘SEC. 3. ELIGIBLE ITEMS.

16 ‘‘(a) TYPES OF ITEMS.—The Council may enter into

17 an indemnity agreement under section 2 with respect to

18 items—

19 ‘‘(1) that are—

20 ‘‘(A) works of art, including tapestries,

21 paintings, sculpture, folk art, and graphics and

22 craft arts;

23 ‘‘(B) manuscripts, rare documents, books,

24 or other printed or published materials;

25 ‘‘(C) other artifacts or objects; or
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1 ‘‘(D) photographs, motion pictures, or

2 audio and video tape;

3 ‘‘(2) that are of educational, cultural, historical,

4 or scientific value; and

5 ‘‘(3) the exhibition of which is certified (where

6 appropriate) by the Secretary of State or the des7 ignee of the Secretary of State as being in the na8 tional interest.

9 ‘‘(b) ITEMS ON EXHIBITION.—

10 ‘‘(1) SCOPE.—An indemnity agreement made

11 under this Act shall cover eligible items while on ex12 hibition, generally when the items are part of an ex13 change of exhibitions. An item described in sub14 section (a) that is part of an exhibition that origi15 nates either in the United States or outside the

16 United States and that is touring the United States

17 shall be considered to be an eligible item.

18 ‘‘(2) DEFINITION.—For purposes of this sub19 section, the term ‘on exhibition’ includes the period

20 of time beginning on the date the eligible items leave

21 the premises of the lender or place designated by the

22 lender and ending on the date such items are re23 turned to the premises of the lender or place des24 ignated by the lender.
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1 ‘‘SEC. 4. APPLICATIONS.

2 ‘‘(a) IN GENERAL.—Any person, nonprofit agency,

3 institution, or government desiring to enter into an indem4 nity agreement for eligible items under this Act shall sub5 mit an application to the Council at such time, in such

6 manner and in accordance with such procedures, as the

7 Council shall, by regulation, prescribe.

8 ‘‘(b) CONTENTS.—An application submitted under

9 subsection (a) shall—

10 ‘‘(1) describe each item to be covered by the

11 agreement (including an estimated value of such

12 item);

13 ‘‘(2) show evidence that the item is an item de14 scribed in section 3(a); and

15 ‘‘(3) set forth policies, procedures, techniques,

16 and methods with respect to preparation for, and

17 conduct of, exhibition of the item, and any transpor18 tation related to such item.

19 ‘‘(c) APPROVAL.—On receipt of an application under

20 this section, the Council shall review the application as

21 described in section 5 and, if the Council agrees with the

22 estimated value described in the application and if such

23 application conforms with the requirements of this Act,

24 approve the application and enter into an indemnity agree25 ment with the applicant under section 2. On such ap26 proval, the agreement shall constitute a contract between
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1 the Council and the applicant pledging the full faith and

2 credit of the United States to pay any amount for which

3 the Council becomes liable under such agreement. The

4 Council, for such purpose, is authorized to pledge the full

5 faith and credit of the United States.

6 ‘‘SEC. 5. INDEMNITY AGREEMENT.

7 ‘‘(a) REVIEW.—On receipt of an application meeting

8 the requirements of subsections (a) and (b) of section 4,

9 the Council shall review the estimated value of the items

10 for which coverage by an indemnity agreement is sought.

11 If the Council agrees with such estimated value, for the

12 purposes of this Act, the Council shall, after approval of

13 the application as provided for in subsection (c) of section

14 4, make an indemnity agreement.

15 ‘‘(b) AGGREGATE AMOUNT OF LOSS OR DAMAGE.—

16 The aggregate amount of loss or damage covered by in17 demnity agreements made under this Act shall not exceed

18 $3,000,000,000, at any one time.

19 ‘‘(c) INDIVIDUAL AMOUNT OF LOSS OR DAMAGE.—

20 No indemnity agreement for a single exhibition shall cover

21 loss or damage in excess of $300,000,000.

22 ‘‘(d) EXTENT OF COVERAGE.—If the estimated value

23 of the items covered by an indemnity agreement for a sin24 gle exhibition is—
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1 ‘‘(1) $2,000,000 or less, then coverage under

2 this Act shall extend only to loss or damage in ex3 cess of the first $15,000 of loss or damage to the

4 items covered;

5 ‘‘(2) more than $2,000,000 but less than

6 $10,000,000, then coverage under this Act shall ex7 tend only to loss or damage in excess of the first

8 $25,000 of loss or damage to the items covered;

9 ‘‘(3) not less than $10,000,000 but less than

10 $125,000,000, then coverage under this Act shall ex11 tend only to loss or damage in excess of the first

12 $50,000 of loss or damage to the items covered;

13 ‘‘(4) not less than $125,000,000 but less than

14 $200,000,000, then coverage under this Act shall ex15 tend only to loss or damage in excess of the first

16 $100,000 of loss or damage to the items covered; or

17 ‘‘(5) $200,000,000 or more, then coverage

18 under this Act shall extend only to loss or damage

19 in excess of the first $200,000 of loss or damage to

20 the items covered.

21 ‘‘SEC. 6. REGULATIONS AND CERTIFICATION.

22 ‘‘(a) REGULATIONS.—The Council shall prescribe

23 regulations providing for prompt adjustment of valid

24 claims for loss or damage to items that are covered by

25 an agreement entered into pursuant to section 2, including
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1 provision for arbitration of issues relating to the dollar

2 value of damages involving less than total loss or destruc3 tion of such covered items.

4 ‘‘(b) CERTIFICATION.—In the case of a claim of loss

5 or damage with respect to an item that is covered by an

6 agreement entered into pursuant to section 2, the Council

7 shall certify the validity of the claim and the amount of

8 the loss to the Speaker of the House of Representatives

9 and the President pro tempore of the Senate.

10 ‘‘SEC. 7. REPORT.

11 ‘‘The Council shall prepare, and submit at the end

12 of each fiscal year to the appropriate committees of Con13 gress, a report containing information on—

14 ‘‘(1) all claims paid pursuant to this Act during

15 such year;

16 ‘‘(2) pending claims against the Council under

17 this Act as of the end of such year; and

18 ‘‘(3) the aggregate face value of contracts en19 tered into by the Council that are outstanding at the

20 end of such year.

21 ‘‘SEC. 8. ESTABLISHMENT OF THE FEDERAL COUNCIL ON

22 THE ARTS AND THE HUMANITIES.

23 ‘‘(a) ESTABLISHMENT.—

24 ‘‘(1) IN GENERAL.—There is established a Fed25 eral Council on the Arts and the Humanities.
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1 ‘‘(2) STATUS AS AN AGENCY.—For the purposes

2 of this Act, the Council shall be an agency within

3 the meaning of the appropriate definitions of such

4 term in title 5, United States Code.

5 ‘‘(b) MEMBERSHIP.—

6 ‘‘(1) IN GENERAL.—The Council shall be com7 posed of the Chairperson of the National Endow8 ment for the Arts, the Chairperson of the National

9 Endowment for the Humanities, the Director of the

10 Institute of Museum and Library Services, the Sec11 retary of Education, the Secretary of the Smithso12 nian Institution, the Director of the National

13 Science Foundation, the Librarian of Congress, the

14 Director of the National Gallery of Art, the Chair15 man of the Commission of Fine Arts, the Archivist

16 of the United States, the Commissioner, Public

17 Buildings Service, General Services Administration,

18 the Assistant Secretary for Aging, a member des19 ignated by the Secretary of State, and a member

20 designated by the Secretary of the Interior, a mem21 ber designated by the Chairman of the Senate Com22 mission on Art and Antiquities, and a member des23 ignated by the Speaker of the House of Representa24 tives.
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1 ‘‘(2) DESIGNATION OF PRESIDING OFFICER.—

2 The President shall designate the presiding officer of

3 the Council from among the members.

4 ‘‘(3) AUTHORITY TO CHANGE THE MEMBER5 SHIP.—The President is authorized to change the

6 membership of the Council as the President deems

7 necessary to meet changes in Federal programs or

8 executive branch organization.

9 ‘‘(c) FUNCTIONS.—

10 ‘‘(1) IN GENERAL.—Except as provided in para11 graph (2), the Council shall—

12 ‘‘(A) carry out the functions of the Council

13 described in sections 1 through 7;

14 ‘‘(B) promote coordination between the

15 programs and activities of the National Foun16 dation on the Arts and Humanities and related

17 programs and activities of other Federal agen18 cies; and

19 ‘‘(C) encourage an ongoing dialogue in

20 support of the arts and the humanities among

21 Federal agencies.

22 ‘‘(2) RESTRICTIONS.—The following members

23 of the Council shall not carry out the functions de24 scribed in paragraph (1)(A):
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1 ‘‘(A) The Secretary of the Smithsonian In2 stitution.

3 ‘‘(B) The Director of the National Gallery

4 of Art.

5 ‘‘(C) The member of the Council des6 ignated by the Chairman of the Senate Com7 mission on Art and Antiquities.

8 ‘‘(D) The member of the Council des9 ignated by the Speaker of the House of Rep10 resentatives.

11 ‘‘(3) LIMITATION ON USE OF EMPLOYEES.—No

12 employee (other than a member of the Council) of

13 the Council may carry out the activities described in

14 subparagraphs (B) and (C) of paragraph (1).

15 ‘‘SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘There are authorized to be appropriated such sums

17 as may be necessary—

18 ‘‘(1) to enable the Council to carry out the

19 functions (except the functions described in subpara20 graphs (B) and (C) of section 8(c)(1)) of the Coun21 cil under this Act; and

22 ‘‘(2) to pay claims certified pursuant to section

23 6(b).’’.
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1 SECTION 1. SHORT TITLE.

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

3 Amendments of 1997’’.

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

6 HUMANITIES ACT OF 1965

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

8 HUMANITIES.

9 The National Foundation on the Arts and the Human10 ities Act of 1965 (20 U.S.C. 951 et seq.) is amended to read

11 as follows:

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

13 ‘‘(a) SHORT TITLE.—This Act may be cited as the ‘Na14 tional Foundation on the Arts and the Humanities Act of

15 1965’.

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

17 as follows:

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

‘‘Sec. 2. Purposes.

‘‘Sec. 3. Definitions.

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

HUMANITIES

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

Humanities.

‘‘Sec. 102. General limitations on grants.

‘‘Sec. 103. Joint administration.

‘‘Sec. 104. Study on a true endowment.

‘‘Sec. 105. Donations, bequests, and devises.

‘‘Sec. 106. Authorization of appropriations.

‘‘TITLE II—NATIONAL ENDOWMENT FOR THE ARTS

‘‘Sec. 201. Definitions.

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

‘‘TITLE III—NATIONAL ENDOWMENT FOR THE HUMANITIES

‘‘Sec. 301. Definitions.

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

‘‘Sec. 303. Application procedures.

‘‘Sec. 304. Review panels.

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

‘‘Sec. 306. Limitations on grants.

‘‘Sec. 307. Administrative provisions.

‘‘Sec. 308. Reports.

‘‘Sec. 309. Sanctions and payments.

‘‘Sec. 310. Awards.

1 ‘‘SEC. 2. PURPOSES.

2 ‘‘The purposes of this Act are—

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

5 ‘‘(B) to support the arts and the humanities,

6 which are essential to social, cultural, and economic

7 progress;

8 ‘‘(2) to encourage and support national progress

9 and scholarship in the arts and the humanities, be10 cause such encouragement and support, while pri11 marily matters for private and local initiative, are

12 also appropriate matters of concern for the Federal

13 Government;

14 ‘‘(3) to ensure that the United States, as an ad15 vanced civilization, does not limit its efforts to science

16 and technology alone but gives full value and support
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1 to the other great branches of scholarly and cultural

2 activity in order to achieve a better understanding of

3 the past, a better analysis of the present, and a better

4 view of the future;

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

6 the humanities and the access of all citizens of the

7 United States to the arts and the humanities, in part8 nership with local, State, regional, and private agen9 cies, organizations, and individuals;

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

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

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

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

16 Federal Government ultimately serve the public pur17 poses the Congress defines and are subject to the con18 ditions that traditionally govern the use of public

19 money;

20 ‘‘(7) to ensure that—

21 ‘‘(A) Federal support of the arts and the hu22 manities reflects the high place accorded by the

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

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

3 confidence in the use of taxpayer funds;

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

5 study of the humanities, which require constant dedi6 cation and devotion; and

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

8 create a great artist or scholar, to help create and sus9 tain not only a climate encouraging freedom of

10 thought, imagination, and inquiry, but also the mate11 rial conditions facilitating the release of creative tal12 ent; and

13 ‘‘(9)(A) to ensure that United States students re14 ceive in school, background and preparation in the

15 arts and the humanities to enable the students to rec16 ognize and appreciate the aesthetic dimensions of

17 their lives, the cultural heritage of the United States,

18 and the full potential of artistic and scholarly expres19 sion; and

20 ‘‘(B) to increase access to the arts and the hu21 manities for all persons in the United States by—

22 ‘‘(i) encouraging and developing quality

23 education in the arts and the humanities at all

24 levels, in conjunction with programs of lifelong

25 learning in the arts and the humanities for all
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1 age groups and with formal systems of elemen2 tary, secondary, and postsecondary education;

3 and

4 ‘‘(ii) encouraging and facilitating the work

5 of scholars, artists, arts institutions, and Fed6 eral, State, regional, and local agencies in the

7 area of education in the arts and the humanities.

8 ‘‘SEC. 3. DEFINITIONS.

9 ‘‘In this Act:

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

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

12 music, 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, preservation, and study of the

17 arts described in subparagraph (A) or (B), in18 cluding the study of the arts through apprentice19 ships, internships, and other career oriented

20 work-study experiences for artists and art teach21 ers, and residencies for artists at all educational

22 levels.

23 ‘‘(2) CULTURAL HERITAGE.—The term ‘cultural

24 heritage’ means the living legacy of creations, skills,

25 and knowledge handed down from prior generations—
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1 ‘‘(A) that embraces the traditional arts and

2 ideas that are developed informally and that re3 flect the heritage, tradition, and history of Amer4 ican communities over the centuries; and

5 ‘‘(B) that continues to evolve as new groups

6 contribute to the American experience.

7 ‘‘(3) GRANT.—The term ‘grant’ includes a loan,

8 a contract, and a cooperative agreement.

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

10 State or local arts agency, regional group, and any

11 nonprofit organization or institution in the United

12 States, whether or not incorporated.

13 ‘‘(5) HUMANITIES.—The term ‘humanities’ in14 cludes—

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

16 ‘‘(i) language, both modern and classi17 cal, linguistics, literature, history, jurispru18 dence, philosophy, archaeology, comparative

19 religion, and ethics;

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

21 of the arts;

22 ‘‘(iii) folklore and folklife; and

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

24 that have humanistic content and employ

25 humanistic methods; and
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1 ‘‘(B) the study and application of the hu2 manities described in subparagraph (A) to the

3 human environment with particular attention

4 to—

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

6 and history of the United States; and

7 ‘‘(ii) the relevance of the humanities

8 described in subparagraph (A) to the condi9 tions of national life.

10 ‘‘(6) PROGRAM INCOME.—

11 ‘‘(A) IN GENERAL.—The term ‘program in12 come’ means any money that is earned or re13 ceived, by a recipient of a grant made under title

14 II or III, from an activity supported by the

15 funds made available through the grant or from

16 a product resulting from or related to an activ17 ity carried out under the grant.

18 ‘‘(B) TYPES OF INCOME.—The term in19 cludes—

20 ‘‘(i) income from a fee for service per21 formed, or from the sale of an item created,

22 under the grant;

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

24 product related to an activity carried out

25 under the grant;
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1 ‘‘(iii) a usage or rental fee for equip2 ment or property acquired under the grant;

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

4 carried out under the grant;

5 ‘‘(v) income from a broadcast or dis6 tribution right for such an activity; and

7 ‘‘(vi) a royalty on a patent or copy8 right for such an activity.

9 ‘‘(7) REGIONAL GROUP.—The term ‘regional

10 group’ means any multistate group, whether or not

11 representative of contiguous States.

12 ‘‘(8) STATE.—The term ‘State’ includes, in addi13 tion to the several States of the United States, the

14 Commonwealth of Puerto Rico, the District of Colum15 bia, Guam, American Samoa, the Commonwealth of

16 the Northern Mariana Islands, and the United States

17 Virgin Islands.

18 ‘‘(9) UNDERSERVED COMMUNITIES.—The term

19 ‘underserved communities’ means those communities

20 that have historically been outside the purview of arts

21 and humanities programs.
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1 ‘‘TITLE I—NATIONAL FOUNDA2 TION ON THE ARTS AND THE

3 HUMANITIES

4 ‘‘SEC. 101. ESTABLISHMENT OF THE NATIONAL FOUNDA5 TION ON THE ARTS AND THE HUMANITIES.

6 ‘‘(a) ESTABLISHMENT.—There is established a Na7 tional Foundation on the Arts and the Humanities (referred

8 to in this Act as the ‘Foundation’), which shall be composed

9 of a National Endowment for the Arts, a National Endow10 ment for the Humanities (each of which may be referred

11 to in this title as an ‘Endowment’), and an Institute of

12 Museum and Library Services.

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

14 be to develop and promote a national policy of support for

15 the arts and the humanities in the United States.

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

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

18 States shall exercise any direction, supervision, or control

19 over the policy determination, personnel, curriculum, ad20 ministration, or operation, of any school or other non-Fed21 eral agency, institution, organization, or association.

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

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

24 used for the purposes of lobbying or for providing general

25 membership services for groups.
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1 ‘‘SEC. 103. JOINT ADMINISTRATION.

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

3 Foundation a single Office of the Inspector General for the

4 National Endowment for the Arts and the National Endow5 ment for the Humanities. The Office shall be headed by 1

6 Inspector General appointed in accordance with the Inspec7 tor General Act of 1978 (5 U.S.C. App.). The Inspector Gen8 eral shall carry out the duties prescribed in such Act, in9 cluding conducting appropriate reviews to ensure that re10 cipients of grants under titles II and III comply with the

11 applicable regulations and procedures established under this

12 Act, including regulations relating to accounting and fi13 nancial matters.

14 ‘‘(b) REPORTING.—The Inspector General for the Na15 tional Endowment for the Arts and the National Endow16 ment for the Humanities shall report—

17 ‘‘(1) to the Chairperson of the National Endow18 ment for the Arts with respect to matters relating to

19 the National Endowment for the Arts; and

20 ‘‘(2) to the Chairperson of the National Endow21 ment for the Humanities with respect to matters re22 lating to the National Endowment for the Human23 ities.

24 ‘‘(c) OTHER FUNCTIONS.—The Chairperson of the Na25 tional Endowment for the Arts and Chairperson of the Na26 tional Endowment for the Humanities shall ensure non-
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1 duplication of administrative functions, such as provision

2 of facilities and space, records management, contracting,

3 procurement, printing, and provision of mail and library

4 services. The Chairpersons shall enter into an interagency

5 agreement to jointly carry out the functions with the mini6 mum necessary expense.

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

8 of enactment of the Arts and Humanities Amendments of

9 1997, the Chairperson of the National Endowment for the

10 Arts and the Chairperson of the National Endowment for

11 the Humanities shall jointly prepare and submit to the ap12 propriate committees of Congress a report containing a

13 plan that describes the manner in which the Chairpersons

14 will jointly carry out the functions described in subsection

15 (c). Not later than 180 days after such date of enactment,

16 the Chairpersons shall implement the plan.

17 ‘‘SEC. 104. STUDY ON A TRUE ENDOWMENT.

18 ‘‘(a) IN GENERAL.—The Chairperson of the National

19 Endowment for the Arts and the Chairperson of the Na20 tional Endowment for the Humanities, in consultation with

21 persons with expertise in the arts, humanities, business,

22 charitable giving, and copyright industries, and other ap23 propriate Federal agencies, shall jointly conduct, or con24 tract for, a study on the feasibility of establishing a true

25 endowment for the National Endowment for the Arts and
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1 the National Endowment for the Humanities in order to

2 provide supplemental funding to support the efforts of the

3 National Endowment for the Arts and the National Endow4 ment for the Humanities, respectively.

5 ‘‘(b) SCOPE OF STUDY.—The study described in sub6 section (a) shall examine innovative methods through which

7 a true endowment may be funded, including such methods

8 as private fundraising, an extension of a copyright term,

9 recapture of funds from past grants of the National Endow10 ment for the Arts and the National Endowment for the Hu11 manities that have proven profitable, or any other innova12 tive methods the Chairpersons determine appropriate.

13 ‘‘(c) REPORT.—Not later than 1 year after the date

14 on which funding is made available under this Act to con15 duct the study described in subsection (a), the Chairperson

16 of the National Endowment for the Arts and the Chair17 person of the National Endowment for the Humanities shall

18 jointly prepare and submit to the appropriate committees

19 of Congress a report containing recommendations on the in20 novative methods through which the true endowment may

21 be funded to support efforts described in subsection (a).

22 ‘‘SEC. 105. DONATIONS, BEQUESTS, AND DEVISES.

23 ‘‘(a) DONATIONS, BEQUESTS, AND DEVISES TO THE

24 FOUNDATION WITHOUT DESIGNATION.—
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1 ‘‘(1) IN GENERAL.—In any case in which any

2 money or other property is donated, bequeathed, or

3 devised to the Foundation without designation of the

4 Endowment for the benefit of which the money or

5 property is intended, each Chairperson of an Endow6 ment shall have authority to receive such money or

7 property.

8 ‘‘(2) UNRESTRICTED DONATIONS, BEQUESTS, AND

9 DEVISES.—Except as provided in paragraph (3), un10 less the Chairpersons of the Endowments agree other11 wise, the money or property described in paragraph

12 (1) shall be deemed to have been donated, bequeathed,

13 or devised in equal shares to each Endowment.

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

15 DEVISES.—In any case in which any money or prop16 erty is donated, bequeathed, or devised to the Founda17 tion with a condition or restriction, such money or

18 property shall be deemed to have been donated, be19 queathed, or devised to the Endowment whose func20 tion it is to carry out the purposes of the condition

21 or restriction.

22 ‘‘(b) DONATIONS, BEQUESTS, AND DEVISES TO THE

23 ENDOWMENTS.—

24 ‘‘(1) CHAIRPERSON OF THE NATIONAL ENDOW25 MENTS FOR THE ARTS.—
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1 ‘‘(A) IN GENERAL.—The Chairperson of the

2 National Endowment for the Arts (referred to in

3 this paragraph as the ‘Chairperson’), in carry4 ing out the functions of the Chairperson, shall

5 have authority—

6 ‘‘(i) to solicit, accept, receive, invest,

7 and use money and other property donated,

8 bequeathed, or devised to the Endowment,

9 either absolutely or in trust, with or with10 out a condition or restriction, including a

11 condition that the Chairperson use other

12 funds of the Endowment for the purposes of

13 the donation, bequest, or devise; and

14 ‘‘(ii) to sell or otherwise dispose of such

15 property,

16 to carry out the activities of the Endowment

17 under title II.

18 ‘‘(B) PROCEEDS.—

19 ‘‘(i) RECEIPT OF PROCEEDS.—Any

20 proceeds from a donation, bequest, or devise

21 under subparagraph (A) shall be paid by

22 the donor or the representative of the donor

23 to the Chairperson. Any proceeds from any

24 sale or disposition of property under sub-
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1 paragraph (A) shall be retained by the

2 Chairperson.

3 ‘‘(ii) INVESTMENT OF PROCEEDS.—The

4 Chairperson shall invest the proceeds de5 scribed in clause (i) that are not required to

6 carry out subsection (c) and section 210.

7 Such investments shall be made only in in8 terest-bearing accounts to the credit of the

9 National Endowment for the Arts, of which

10 only 50 percent of the accumulated interest

11 may be used for the purposes of carrying

12 out the activities of the Endowment under

13 title II.

14 ‘‘(C) Notwithstanding subparagraphs (A)

15 and (B)(ii), any money and other property do16 nated, bequeathed, or devised under subpara17 graph (A)(i) with a condition or restriction shall

18 be used, expended, or invested subject to such

19 condition or restriction.

20 ‘‘(2) CHAIRPERSON OF THE NATIONAL ENDOW21 MENTS FOR THE HUMANITIES.—

22 ‘‘(A) IN GENERAL.—The Chairperson of the

23 National Endowment for the Humanities (re24 ferred to in this paragraph as the ‘Chairperson’),
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1 in carrying out the functions of the Chairperson,

2 shall have authority—

3 ‘‘(i) to solicit, accept, receive, invest,

4 and use money and other property donated,

5 bequeathed, or devised to the Endowment,

6 either absolutely or in trust, with or with7 out a condition or restriction, including a

8 condition that the Chairperson use other

9 funds of the Endowment for the purposes of

10 the donation, bequest, or devise; and

11 ‘‘(ii) to sell or otherwise dispose of such

12 property,

13 for purposes of carrying out the activities of the

14 Endowment under title III.

15 ‘‘(B) PROCEEDS.—

16 ‘‘(i) RECEIPT OF PROCEEDS.—Any

17 proceeds from a donation, bequest, or devise

18 under subparagraph (A) shall be paid by

19 the donor or the representative of the donor

20 to the Chairperson. Any proceeds from any

21 sale or disposition of property under sub22 paragraph (A) shall be retained by the

23 Chairperson.

24 ‘‘(ii) INVESTMENT OF PROCEEDS.—The

25 Chairperson shall invest the proceeds de-
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1 scribed in clause (i) that are not required to

2 carry out subsection (c) and section 310(a).

3 Such investments shall be made only in in4 terest-bearing accounts to the credit of the

5 National Endowment for the Humanities, of

6 which only 50 percent of the accumulated

7 interest may be used for the purposes of car8 rying out the activities of the Endowment

9 under title III.

10 ‘‘(C) Notwithstanding subparagraphs (A)

11 and (B)(ii), any money and other property do12 nated, bequeathed, or devised under subpara13 graph (A)(i) with a condition or restriction shall

14 be used, expended, or invested subject to such

15 condition or restriction.

16 ‘‘(c) USE OF DONATIONS, BEQUESTS, AND DEVISES

17 FOR CERTAIN ADMINISTRATIVE EXPENSES.—

18 ‘‘(1) IN GENERAL.—The Chairperson of the Na19 tional Endowment for the Arts and the Chairperson

20 of the National Endowment for the Humanities shall

21 each use from the amounts received under subsection

22 (b)—

23 ‘‘(A) not more than $100,000 for fiscal year

24 1998 for official reception and representation ex25 penses; and
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1 ‘‘(B) not more than $50,000 for each subse2 quent fiscal year for such expenses.

3 ‘‘(2) EXCEPTION.—The requirement of para4 graph (1) shall not apply to expenses associated with

5 the award established under section 310(a).

6 ‘‘(d) TAX LAWS.—For the purposes of the income tax,

7 gift tax, and estate tax laws of the United States, any

8 money or other property donated, bequeathed, or devised to

9 the Foundation or one of the Endowments and received by

10 the Chairperson of an Endowment pursuant to this section

11 shall be deemed to have been donated, bequeathed, or devised

12 to or for the use of the United States.

13 ‘‘SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

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

15 ‘‘(1) IN GENERAL.—

16 ‘‘(A) TOTAL AUTHORIZATION.—There are

17 authorized to be appropriated to carry out the

18 activities of the National Endowment for the

19 Arts under this Act $105,000,000 for fiscal year

20 1998, and such sums as are necessary for the fis21 cal years 1999 through 2002.

22 ‘‘(B) RESERVATION FOR ADMINISTRA23 TION.—Of the amount appropriated for a fiscal

24 year under subparagraph (A), there shall be re-
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1 served amounts sufficient to carry out subsection

2 (c)(1).

3 ‘‘(C) SPECIAL RESERVATION FOR ARTS EDU4 CATION AND UNDERSERVED COMMUNITIES

5 GRANTS.—In a fiscal year in which the aggre6 gate amount appropriated under subparagraph

7 (A) exceeds $99,494,000, the amount that exceeds

8 such aggregate amount shall be reserved for mak9 ing grants under section 202(f) to carry out ac10 tivities described in subsection (f)(2)(B) of such

11 section.

12 ‘‘(D) RESERVATION FOR PARTNERSHIP

13 GRANTS.—40 percent of the amount appro14 priated for a fiscal year under subparagraph (A)

15 and remaining after amounts are reserved under

16 subparagraphs (B) and (C) shall be reserved for

17 making grants under section 202(c).

18 ‘‘(E) RESERVATION FOR NATIONAL SIGNIFI19 CANCE GRANTS.—40 percent of the amount ap20 propriated for a fiscal year under subparagraph

21 (A) and remaining after amounts are reserved

22 under subparagraphs (B) and (C) shall be re23 served for making grants under section 202(d).

24 ‘‘(F) RESERVATION FOR DIRECT GRANTS.—

25 10 percent of the amount appropriated for a fis-
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1 cal year under subparagraph (A) and remaining

2 after amounts are reserved under subparagraphs

3 (B) and (C) shall be reserved for making grants

4 under section 202(e).

5 ‘‘(G) RESERVATION FOR ARTS EDUCATION

6 AND UNDERSERVED COMMUNITIES GRANTS.—10

7 percent of the amount appropriated for a fiscal

8 year under subparagraph (A) and remaining

9 after amounts are reserved under subparagraphs

10 (B) and (C) shall be reserved for making grants

11 under section 202(f).

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

14 year shall remain available for obligation until ex15 pended.

16 ‘‘(b) NATIONAL ENDOWMENT FOR THE HUMANITIES.—

17 ‘‘(1) IN GENERAL.—

18 ‘‘(A) TOTAL AUTHORIZATION.—There are

19 authorized to be appropriated to carry out the

20 activities of the National Endowment for the

21 Humanities under this Act $175,000,000 for fis22 cal year 1998, and such sums as are necessary

23 for fiscal years 1999 through 2002.
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1 ‘‘(B) RESERVATION FOR ADMINISTRA2 TION.—There shall be reserved amounts sufficient

3 to carry out subsection (c)(2).

4 ‘‘(C) RESERVATION FOR PARTNERSHIP

5 GRANTS.—30 percent of the amount appro6 priated for a fiscal year under subparagraph (A)

7 and remaining after amounts are reserved under

8 subparagraph (B) shall be reserved for making

9 grants under section 302(c). Of the amount re10 served under this subparagraph, 5 percent of

11 such amount shall be made available for activi12 ties relating to elementary and secondary edu13 cation in the humanities.

14 ‘‘(D) RESERVATION FOR NATIONAL

15 GRANTS.—35 percent of the amount appro16 priated for a fiscal year under subparagraph (A)

17 and remaining after amounts are reserved under

18 subparagraph (B) shall be reserved for making

19 grants under section 302(d).

20 ‘‘(E) RESERVATION FOR RESEARCH AND

21 SCHOLARSHIP GRANTS.—35 percent of the

22 amount appropriated for a fiscal year under

23 subparagraph (A) and remaining after amounts

24 are reserved under subparagraph (B) shall be re25 served for making grants under section 302(e).
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1 ‘‘(2) SUMS REMAINING AVAILABLE.—Sums ap2 propriated pursuant to paragraph (1) for any fiscal

3 year shall remain available for obligation until ex4 pended.

5 ‘‘(c) ADMINISTRATION.—

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

7 ‘‘(A) FISCAL YEAR 1998.—17 percent of the

8 amount appropriated for fiscal year 1998 under

9 subsection (a)(1)(A) may be made available for

10 the costs of administering title II, or any other

11 program for which the Chairperson of the Na12 tional Endowment for the Arts is responsible.

13 ‘‘(B) FISCAL YEARS 1999 THROUGH 2002.—

14 12 percent of the amount appropriated for each

15 of the fiscal years 1999 through 2002 under sub16 section (a)(1)(A) may be made available for the

17 costs of administering title II, or any other pro18 gram for which the Chairperson of the National

19 Endowment for the Arts is responsible.

20 ‘‘(C) FUNDS FOR THE PRESIDENT’S COM21 MITTEE ON THE ARTS.—Of the amount made

22 available under this paragraph for a fiscal year,

23 not more than $100,000 shall be made available

24 for the President’s Committee on the Arts and

25 the Humanities, none of which may be used to
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1 reimburse members of the Committee for travel

2 and related expenses.

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

5 ‘‘(A) FISCAL YEAR 1998.—17 percent of the

6 amount appropriated for fiscal year 1998 under

7 subsection (b)(1)(A) may be made available for

8 the costs of administering title III, or any other

9 program for which the Chairperson of the Na10 tional Endowment for the Humanities is respon11 sible.

12 ‘‘(B) FISCAL YEARS 1999 THROUGH 2002.—

13 12 percent of the amount appropriated for each

14 of the fiscal years 1999 through 2002 under sub15 section (b)(1)(A) may be made available for the

16 costs of administering title III, or any other pro17 gram for which the Chairperson of the National

18 Endowment for the Humanities is responsible.

19 ‘‘(C) FUNDS FOR THE PRESIDENT’S COM20 MITTEE ON THE ARTS.—Of the amount made

21 available under this paragraph for a fiscal year,

22 not more than $100,000 shall be made available

23 for the President’s Committee on the Arts and

24 the Humanities, none of which may be used to
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1 reimburse members of the Committee for travel

2 and related expenses.

3 ‘‘TITLE II—NATIONAL

4 ENDOWMENT FOR THE ARTS

5 ‘‘SEC. 201. DEFINITIONS.

6 ‘‘In this title:

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

8 term ‘developing arts organization’ means a local arts

9 organization of high artistic promise that—

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

11 arts programming in a community; and

12 ‘‘(B) has the potential to broaden public ac13 cess to the arts in rural and urban underserved

14 communities.

15 ‘‘(2) FINAL JUDGMENT.—The term ‘final judg16 ment’ means a judgment that is either—

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

18 has authority to review such judgment; or

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

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

21 agency’ means a community organization, or an

22 agency of local government, that primarily provides

23 financial support, services, or other programs for art24 ists and arts organizations, for the benefit of the com25 munity as a whole.
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1 ‘‘(4) OBSCENE; DETERMINED TO BE OBSCENE.—

2 ‘‘(A) OBSCENE.—The term ‘obscene’ means,

3 with respect to a project, production, or work4 shop, that—

5 ‘‘(i) the average person, applying con6 temporary community standards, would

7 find that such project, production, or work8 shop, when taken as a whole, appeals to the

9 prurient interest;

10 ‘‘(ii) such project, production, or work11 shop depicts or describes sexual conduct in

12 a patently offensive way; and

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

14 workshop, when taken as a whole, lacks seri15 ous literary, artistic, political, or scientific

16 value.

17 ‘‘(B) DETERMINED TO BE OBSCENE.—The

18 term ‘determined to be obscene’ means deter19 mined, in a final judgment of a court of record

20 and of competent jurisdiction in the United

21 States, to be obscene.

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

23 means any activity involving the execution or ren24 dition of the arts and meeting such standards as may

25 be approved by the Chairperson of the Endowment.
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1 ‘‘(6) PROJECT.—

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

3 means a program organized to carry out the ob4 jectives of this Act, including a program to foster

5 United States artistic creativity, to commission

6 a work of art, or to develop and enhance the

7 widest public access, knowledge, and understand8 ing of the arts, and includes, where appropriate,

9 rental or purchase of a facility, rental or pur10 chase of land, and acquisition of equipment.

11 ‘‘(B) RENOVATION OR CONSTRUCTION.—

12 Such term also includes—

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

14 ‘‘(I) the amount of the expendi15 ture of Federal funds for such purpose

16 in the case of any facility does not ex17 ceed $250,000; and

18 ‘‘(II) two-thirds of the members of

19 the National Council on the Arts (who

20 are present and voting) recommend a

21 grant involving an expenditure for

22 such purpose; and

23 ‘‘(ii) with respect to a grant under sec24 tion 202(d), the construction of a facility,

25 if—
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1 ‘‘(I) such construction is for dem2 onstration purposes or under unusual

3 circumstances in which there is no

4 other manner by which to accomplish

5 an artistic purpose; and

6 ‘‘(II) two-thirds of the members of

7 the National Council on the Arts (who

8 are present and voting) recommend a

9 grant involving an expenditure for

10 such purpose.

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

12 program the primary purpose of which is to encour13 age the artistic development or enjoyment of amateur,

14 student, or other participants.

15 ‘‘SEC. 202. ESTABLISHMENT OF THE NATIONAL ENDOW16 MENT FOR THE ARTS.

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

18 the Foundation a National Endowment for the Arts (re19 ferred to in this title as the ‘Endowment’).

20 ‘‘(b) CHAIRPERSON.—

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

22 headed by a chairperson, to be known as the Chair23 person of the Endowment (referred to in this title as

24 the ‘Chairperson’), who shall be appointed by the
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1 President, by and with the advice and consent of the

2 Senate.

3 ‘‘(2) TERM.—

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

5 Chairperson shall be 4 years, except that any

6 Chairperson appointed to fill a vacancy shall

7 serve for the remainder of the term for which the

8 predecessor of the Chairperson was appointed.

9 Notwithstanding any other provision of this sub10 paragraph, on the expiration of the term of office

11 of the Chairperson, the Chairperson shall serve

12 until the successor to the Chairperson is ap13 pointed and has qualified.

14 ‘‘(B) REAPPOINTMENT.—The Chairperson

15 shall be eligible for reappointment.

16 ‘‘(c) PARTNERSHIP GRANTS.—

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

18 is to make grants to States and regional groups to

19 support arts activities, with preference to arts edu20 cation and projects that reach rural and urban un21 derserved communities.

22 ‘‘(2) GRANTS TO STATES.—

23 ‘‘(A) AUTHORITY.—Using the funds reserved

24 under section 106(a)(1)(D), the Chairperson, act25 ing on the recommendation of the National
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1 Council on the Arts, shall establish and carry

2 out a program of basic State grants to assist

3 States—

4 ‘‘(i)(I) in supporting projects, produc5 tions, or workshops that meet the standard

6 of artistic excellence and artistic merit and

7 that fulfill the purposes of this Act; and

8 ‘‘(II) in developing projects, produc9 tions, or workshops that will furnish pro10 grams, facilities, and services in the arts to

11 people and communities in each of the

12 States; and

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

14 ‘‘(I) stimulate artistic activity

15 and awareness, and broaden public ac16 cess to the arts, in rural and urban

17 underserved communities;

18 ‘‘(II) enhance the artistic capa19 bilities of developing arts organizations

20 through artistic, programmatic, and

21 staff development; or

22 ‘‘(III) provide technical assistance

23 to developing arts organizations to im24 prove managerial and organizational
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1 skills, financial systems management,

2 and long-range fiscal planning.

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

4 grant under this paragraph for any fiscal year,

5 a State shall submit an application described in

6 section 203 for such grant at such time and in

7 such manner as shall be specified by the Chair8 person and accompany such application with a

9 State plan that the Chairperson finds—

10 ‘‘(i) designates or provides for the es11 tablishment of a State agency (referred to in

12 this section as the ‘State agency’) as the sole

13 agency for the administration of the State

14 plan;

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

16 State under this paragraph will be ex17 pended solely on projects, productions, or

18 workshops described in subparagraph (A)

19 and approved by the State agency;

20 ‘‘(iii) provides that the State agency

21 will make such reports, in such manner and

22 containing such information, as the Chair23 person may from time to time require, in24 cluding a description of the progress made
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1 toward achieving the objectives of the State

2 plan;

3 ‘‘(iv) provides—

4 ‘‘(I) an assurance that the State

5 agency has held, after reasonable no6 tice, public meetings in the State to

7 allow the public, interested groups, and

8 groups of artists to present views and

9 make recommendations regarding the

10 State plan; and

11 ‘‘(II) a summary of such rec12 ommendations and the response of the

13 State agency to such recommendations;

14 and

15 ‘‘(v) contains—

16 ‘‘(I) for the most recent preceding

17 year for which information is avail18 able, a description of the level of par19 ticipation by artists, artists’ organiza20 tions, and arts groups in projects, pro21 ductions, or workshops supported by

22 funding from the State agency under

23 this paragraph, and a description of

24 the extent to which projects, produc25 tions, or workshops supported by fund-
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1 ing from the State agency under this

2 paragraph were available to all people

3 and communities in the State, espe4 cially underserved communities; and

5 ‘‘(II) a description of projects,

6 productions, or workshops supported

7 by funding from the State agency

8 under this paragraph that exist or are

9 being developed to address the avail10 ability of the arts to all people or com11 munities described in subclause (I) or

12 to secure wider participation of artists

13 and arts organizations described in

14 subclause (I).

15 ‘‘(C) APPROVAL.—The Chairperson may not

16 approve an application described in subpara17 graph (B) unless the accompanying State plan

18 satisfies the requirements specified in subpara19 graph (B).

20 ‘‘(D) ALLOTMENTS.—

21 ‘‘(i) IN GENERAL.—Of the sums avail22 able to carry out this paragraph for any

23 fiscal year, each State that has an applica24 tion approved by the Chairperson shall be
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1 allotted at least $200,000, or 1 percent of

2 such sums, whichever is greater.

3 ‘‘(ii) INSUFFICIENT FUNDS.—If the

4 sums available to carry out this paragraph

5 for any fiscal year are insufficient to make

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

7 sums shall be allotted so that each such

8 State receives an equal amount.

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

10 which the sums available to carry out this

11 paragraph for any fiscal year are in excess

12 of the amount required to make the allot13 ments under clause (i)—

14 ‘‘(I) the amount of such excess

15 that is not greater than 25 percent of

16 the sums available to carry out this

17 paragraph for such fiscal year shall be

18 available to the Chairperson for mak19 ing grants under this paragraph to

20 States and, in accordance with sub21 paragraph (H), regional groups; and

22 ‘‘(II) the amount of such excess for

23 such fiscal year, if any, that remains

24 after reserving in full for the Chair25 person the amount required under sub-
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1 clause (I) shall be allotted so that each

2 State that has an application ap3 proved by the Chair receives an equal

4 amount;

5 but in no event shall any State be allotted

6 under this paragraph less than $200,000 or

7 1 percent of the sums available to carry out

8 this paragraph, whichever is greater.

9 ‘‘(E) FEDERAL SHARE.—

10 ‘‘(i) IN GENERAL.—Funding provided

11 through a grant made under this paragraph

12 to a State for any fiscal year shall be avail13 able to each State that has an application

14 approved by the Chairperson, and has the

15 State plan accompanying the application

16 in effect on the first day of such fiscal year,

17 to pay not more than 50 percent of the total

18 cost of carrying out any activity described

19 in subparagraph (A).

20 ‘‘(ii) EXCESS PORTION.—Except as

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

22 funding provided through any grant made

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

24 any fiscal year that exceeds $125,000 shall

25 be available, at the discretion of the Chair-
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1 person, to pay not more than 100 percent of

2 such cost of carrying out an activity under

3 this paragraph if such activity would be

4 unavailable to the residents of the State

5 without such portion.

6 ‘‘(iii) PERCENTAGE OF GRANT

7 FUNDS.—The portion of the funding de8 scribed in clause (ii) for any fiscal year

9 that is available to pay not more than 100

10 percent of such cost, as described in clause

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

12 funding provided through such grant for

13 such fiscal year.

14 ‘‘(F) PROHIBITION ON SUPPLANTING NON15 FEDERAL FUNDS.—Funds made available under

16 this paragraph shall be used to supplement, and

17 shall not supplant, non-Federal funds expended

18 for supporting activities described in subpara19 graph (A).

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

21 allotted to a State under subparagraph (D)(i) for

22 any fiscal year that is not obligated by the State

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

24 year for which the amount is appropriated shall
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1 be available for making grants to regional

2 groups.

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

4 this paragraph (other than subparagraph (D))

5 shall apply to regional groups receiving grants

6 under this paragraph in such manner, and to

7 such extent, as the Chairperson shall by regula8 tion prescribe.

9 ‘‘(I) DEFINITION.—In subparagraph

10 (D)(iii)(II) and notwithstanding section 3(8),

11 the term ‘State’ includes, in addition to the sev12 eral States of the United States, only the juris13 dictions specified in such section that have a

14 population of 200,000 or more, according to the

15 latest decennial census.

16 ‘‘(d) NATIONAL SIGNIFICANCE GRANTS.—

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

18 is to make grants to groups of demonstrated and sub19 stantial artistic and cultural importance for projects,

20 productions, and workshops that will increase the ac21 cess of all the people of the United States, especially

22 underserved communities, to the best of the arts and

23 culture of the United States.

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

25 section 106(a)(1)(E), the Chairperson, acting on the
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1 recommendation of the National Council on the Arts,

2 may establish and carry out a program of grants to

3 groups who meet the standard of artistic excellence

4 and artistic merit and who are engaged in or con5 cerned with the arts, for the purpose of paying for

6 the Federal share of the cost of—

7 ‘‘(A) enabling the groups to provide or sup8 port projects, productions, or workshops de9 scribed in paragraph (3) that will have a na10 tional, regional, or otherwise substantial artistic

11 or cultural impact;

12 ‘‘(B) providing administrative and manage13 ment improvements for the groups, particularly

14 in the field of long-range financial planning, in15 cluding increasing levels of community support

16 and the range of contributors to the programs of

17 such groups; or

18 ‘‘(C) enabling the groups to provide or sup19 port projects, productions, or workshops that will

20 serve as models for arts education.

21 ‘‘(3) PROJECTS, PRODUCTIONS, AND WORK22 SHOPS.—

23 ‘‘(A) REQUIRED ELEMENTS.—Each such

24 project, production, or workshop shall—
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1 ‘‘(i) have substantial national or re2 gional cultural significance, and encourage

3 professional excellence; or

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

5 ‘‘(II) be a project, production, or work6 shop that, if such a group did not receive a

7 grant, might otherwise be unavailable to

8 citizens for geographic or economic reasons.

9 ‘‘(B) PERMISSIBLE ELEMENTS.—Each such

10 project, production, or workshop may—

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

12 and knowledge, understanding, enjoyment,

13 and appreciation of, the arts by the public;

14 ‘‘(ii) enhance managerial and organi15 zational skills and capabilities;

16 ‘‘(iii) use technology to broaden public

17 access to the arts;

18 ‘‘(iv) expand access to the arts for in19 dividuals with disabilities; or

20 ‘‘(v) promote access to the arts for mi21 nority or underserved populations.

22 ‘‘(4) FEDERAL SHARE REQUIREMENT.—

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

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

25 grant made under this subsection, the Federal
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1 share described in paragraph (2) shall be 25 per2 cent.

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

4 grant made under this subsection to a group

5 with an annual budget in excess of $3,000,000,

6 the Federal share described in paragraph (2)

7 shall be 16.67 percent.

8 ‘‘(C) ADJUSTMENTS.—The Chairperson may

9 increase the Federal share applicable under this

10 subsection for a designated grant recipient, with

11 review and approval by the National Council on

12 the Arts. The Chairperson shall not increase the

13 Federal share above 50 percent for the recipient.

14 Not more than 10 percent of the funds made

15 available by the Endowment for grants under

16 this subsection for any fiscal year may be avail17 able for grants for the fiscal year for which the

18 Chairperson increases the applicable Federal

19 share.

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

21 subsection, the Chairperson shall give priority to

22 projects, productions, and workshops that increase the

23 access of the public of the United States, especially

24 underserved communities, to culture and the arts, in25 cluding access by touring, by regional or national dis-
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1 semination, or by geographic dispersion, and to arts

2 education.

3 ‘‘(e) DIRECT GRANTS.—

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

5 is to make grants to groups, and individuals, that are

6 broadly representative of the cultural heritage of the

7 United States and broadly geographically representa8 tive, for projects, productions, and workshops of the

9 highest artistic excellence and artistic merit.

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

11 section 106(a)(1)(F), the Chairperson, acting on the

12 recommendation of the National Council on the Arts,

13 may establish and carry out a program of grants to

14 groups, or individuals who are engaged in or con15 cerned with the arts, to pay for the Federal share of

16 the cost of projects, productions, or workshops that

17 meet the standard of artistic excellence and artistic

18 merit and that fulfill the purposes of this Act.

19 ‘‘(3) FEDERAL SHARE REQUIREMENT.—The Fed20 eral share described in paragraph (2) shall be 50 per21 cent.

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

23 subsection, the Chairperson shall give priority to

24 projects, productions, and workshops that will be dis25 seminated widely after completion, and to projects,
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1 productions, and workshops concerning arts edu2 cation.

3 ‘‘(5) ADJUSTMENTS.—The Chairperson may in4 crease the Federal share applicable under this sub5 section for a designated grant recipient, with review

6 and approval by the National Council on the Arts.

7 Not more than 20 percent of the funds made available

8 by the Endowment for grants under this subsection

9 for any fiscal year may be available for grants for the

10 fiscal year for which the Chairperson increases the

11 applicable Federal share.

12 ‘‘(6) SPECIAL RULE FOR GRANTS TO INDIVID13 UALS.—The Chairperson shall only award a grant in

14 accordance with this subsection to an individual de15 scribed in paragraph (2) if such grant is awarded to

16 such individual for a literature fellowship, a National

17 Heritage Fellowship, or a Jazz Masters Fellowship.

18 ‘‘(f) ARTS EDUCATION AND UNDERSERVED COMMU19 NITIES GRANTS.—

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

21 is to make grants to State arts agencies and other

22 groups to carry out activities in arts education and

23 to carry out arts-related activities in underserved

24 communities.
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1 ‘‘(2) IN GENERAL.—Using the funds reserved

2 under section subparagraphs (C) (as may be appro3 priate) and (G) of section 106(a)(1), the Chairperson,

4 acting on the recommendation of the National Coun5 cil on the Arts, may establish and carry out a pro6 gram of grants to State arts agencies or other groups

7 to pay for the Federal share of the cost of carrying

8 out activities that—

9 ‘‘(A) promote and improve the availability

10 of arts instruction, and improve the quality of

11 arts education, through support of lifelong learn12 ing in the arts;

13 ‘‘(B) provide—

14 ‘‘(i) instruction in the arts by integrat15 ing and incorporating the arts in the teach16 ing of English, math, science, foreign lan17 guages, civics and government, economics,

18 history, and geography; or

19 ‘‘(ii) courses in the arts through school

20 programs;

21 ‘‘(C) enhance the quality of arts instruction

22 in programs of teacher education;

23 ‘‘(D) develop arts faculty resources and tal24 ents;
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1 ‘‘(E) support and encourage the develop2 ment of improved curriculum materials in the

3 arts;

4 ‘‘(F) support apprenticeships, internships,

5 and other career oriented work-study experiences

6 for artists and arts teachers, and encourage

7 residencies of artists at all educational levels;

8 ‘‘(G) stimulate artistic activity and aware9 ness, and broaden public access to the arts, in

10 underserved communities;

11 ‘‘(H) enhance the artistic capabilities of de12 veloping arts organizations in underserved com13 munities through artistic, programmatic, and

14 staff development; or

15 ‘‘(I) provide technical assistance to develop16 ing arts organizations in underserved commu17 nities to improve managerial and organizational

18 skills, financial systems management, and long19 range fiscal planning.

20 ‘‘(3) FEDERAL SHARE.—The Federal share de21 scribed in paragraph (2) shall be 50 percent.

22 ‘‘(4) EVALUATION AND REPORTS FOR CERTAIN

23 ACTIVITIES.—

24 ‘‘(A) IN GENERAL.—Each State arts agency

25 or other group that receives a grant under this
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1 subsection to carry out the activity described in

2 paragraph (2)(B) shall conduct an ongoing eval3 uation of the activity.

4 ‘‘(B) EVALUATION COMPONENTS.—In con5 ducting the evaluation under subparagraph (A),

6 a State arts agency or other group shall, in the

7 case of students who participate in an activity

8 described in paragraph (2)(B), monitor the

9 progress of the student participants throughout

10 the period of participation.

11 ‘‘(C) REPORT TO CHAIRPERSON.—Not later

12 than 60 days after the date of the completion of

13 an activity by a State arts agency or other

14 group under subparagraph (A), the State arts

15 agency or other group shall prepare and submit

16 to the Chairperson a report on the evaluation

17 conducted under subparagraph (A).

18 ‘‘(D) REPORT TO CONGRESS.—Not later

19 than 60 days after the date of the submission of

20 the report under subparagraph (C), the Chair21 person shall prepare and submit to Congress a

22 report on—

23 ‘‘(i) the activities funded under para24 graph (2)(B); and
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1 ‘‘(ii) the evaluations conducted by re2 cipients under subparagraph (A).

3 ‘‘SEC. 203. APPLICATION PROCEDURES.

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

5 made under this title to any person unless the person sub6 mits an application to the Chairperson in accordance with

7 regulations and procedures established by the Chairperson.

8 ‘‘(b) PROCEDURES.—

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) CONSIDERATIONS.—In establishing

11 such regulations and procedures for applications,

12 the Chairperson shall ensure that—

13 ‘‘(i) artistic excellence and artistic

14 merit of the projects, productions, and

15 workshops described in the application are

16 the criteria by which the applications are

17 judged by advisory panels described in sec18 tion 204, taking into consideration general

19 standards of decency and respect for the di20 verse beliefs and values of the public of the

21 United States;

22 ‘‘(ii) in selecting groups as recipients

23 of grants under section 202, the Chairperson

24 shall give preference to artistically rural

25 and urban underserved communities and
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1 artists and artistic groups that have tradi2 tionally been underrepresented in the arts,

3 and to groups proposing arts education ac4 tivities;

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

6 workshops described in the applications,

7 and awards of grants under this title, are

8 consistent with the objectives of section 202

9 and this section; and

10 ‘‘(iv) an application distributed to an

11 applicant for a grant includes a copy of the

12 Financial Management Guide for Nonprofit

13 Organizations that is published by the Of14 fice of the Inspector General for the Na15 tional Endowment for the Arts and the Na16 tional Endowment for the Humanities.

17 ‘‘(B) OBSCENITY PROVISIONS.—Such regu18 lations and procedures shall clearly indicate that

19 obscenity is without artistic merit, is not pro20 tected speech, and shall not be funded under this

21 title. Projects, productions, and workshops that

22 are determined to be obscene shall be prohibited

23 from receiving grants under this title from the

24 Endowment.
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1 ‘‘(2) CONSIDERATIONS FOR THE CHAIR2 PERSON.—In considering an application for a grant

3 under this title, the Chairperson shall consider the ex4 tent to which the projects, productions, and workshops

5 described in the application fulfill the purposes of this

6 Act, as well as their artistic excellence and artistic

7 merit, as determined by the Chairperson.

8 ‘‘(3) CONSTRUCTION.—The disapproval or ap9 proval by the Chairperson of an application for a

10 grant under this title shall not be construed to mean,

11 and shall not be considered to be evidence that, the

12 project, production, or workshop, for which the appli13 cant requested a grant, is or is not obscene.

14 ‘‘SEC. 204. ADVISORY PANELS.

15 ‘‘(a) IN GENERAL.—The Chairperson shall utilize re16 view by advisory panels—

17 ‘‘(1) as the first step in the review of applica18 tions submitted under this Act; and

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

20 Council on the Arts in all cases involving requests for

21 grants authorized under this title, except cases in

22 which the Chairperson exercises authority delegated

23 under section 205(f)(2).

24 ‘‘(b) PROCEDURES.—
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1 ‘‘(1) CRITERIA.—In reviewing the applications,

2 such panels shall recommend applications for projects,

3 productions, and workshops on the basis of artistic ex4 cellence and artistic merit, consistent with section

5 203(b)(1)(A)(i).

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

7 only general ranges of funding to be provided through

8 the grants and may not recommend specific amounts

9 of such funding.

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

11 Chairperson shall issue regulations and establish pro12 cedures to—

13 ‘‘(A) ensure that—

14 ‘‘(i) all the panels are composed, to the

15 extent practicable, of individuals providing

16 a wide geographic, ethnic, and minority

17 representation as well as individuals reflect18 ing diverse artistic and cultural points of

19 view; and

20 ‘‘(ii) not more than 10 percent of the

21 aggregate number of members of all the ad22 visory panels are members from the same

23 State;
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1 ‘‘(B) ensure that all the panels include at

2 least 2 members representing lay individuals

3 who are—

4 ‘‘(i) knowledgeable about the arts;

5 ‘‘(ii) not engaged in the arts as a pro6 fession; and

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

8 organizations or arts organizations;

9 ‘‘(C) ensure that, when feasible, the proce10 dures used by the panels to carry out their re11 sponsibilities are standardized;

12 ‘‘(D) require each such panel—

13 ‘‘(i) to create written records summa14 rizing—

15 ‘‘(I) all meetings and discussions

16 of such panel; and

17 ‘‘(II) the recommendations made

18 by such panel to the Council; and

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

20 the public in a manner that protects the

21 privacy of individual applicants and panel

22 members;

23 ‘‘(E) permit, when necessary and feasible, a

24 site visit to view the work of an applicant and

25 deliver a written report on the work being re-
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1 viewed, in order to assist panelists in making

2 their recommendations;

3 ‘‘(F)(i) require that the membership of each

4 such panel change substantially from year to

5 year; and

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

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

8 no 2 of which may be consecutive; and

9 ‘‘(G) ensure that the panels recommend

10 more applicants for grants than are anticipated

11 can be provided funding through the grants with

12 available funds.

13 ‘‘(4) PROHIBITION ON CONFLICTS OF INTER14 EST.—

15 ‘‘(A) IN GENERAL.—In making appoint16 ments to the panels, the Chairperson shall ensure

17 that an individual who has a pending applica18 tion for a grant authorized under this title, who

19 is an employee or agent of an organization with

20 such a pending application, or who has a direct

21 or indirect financial interest in any application

22 under consideration by such a panel, does not

23 serve as a member of any panel before which

24 such application is pending.
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1 ‘‘(B) DURATION.—The prohibition described

2 in subparagraph (A) shall commence with re3 spect to such individual beginning on the date

4 such application is submitted, and shall continue

5 until a final decision on the application has been

6 reached by the Chairperson.

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

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

9 the Endowment a National Council on the Arts (referred

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

11 ‘‘(b) COMPOSITION.—

12 ‘‘(1) IN GENERAL.—The Council shall be com13 posed of the Chairperson of the Endowment, who shall

14 be the Chairperson of the Council, and 20 other mem15 bers appointed by the President, by and with the ad16 vice and consent of the Senate, who shall be selected—

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

18 United States who—

19 ‘‘(i) are widely recognized for their

20 broad knowledge of, or expertise in, the arts;

21 and

22 ‘‘(ii) have established records of distin23 guished service, or achieved eminence, in the

24 arts;
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1 ‘‘(B) so as to include practicing artists,

2 members of cultural professions, educators, civic

3 cultural leaders, and others who are profes4 sionally engaged in the arts; and

5 ‘‘(C) so as collectively to provide an appro6 priate distribution of members among the major

7 art fields.

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

9 making such appointments, give consideration to such

10 recommendations as may, from time to time, be sub11 mitted to the President by leading national organiza12 tions in the major art fields. In making such appoint13 ments, the President shall give due regard to equitable

14 representation of women, racially and ethnically di15 verse individuals, and individuals with disabilities,

16 who are involved in the arts. Members of the Council

17 shall be appointed so as to represent equitably geo18 graphical areas in the United States, including rural

19 and urban underserved communities.

20 ‘‘(c) TERMS.—

21 ‘‘(1) IN GENERAL.—

22 ‘‘(A) STAGGERED TERMS.—Each member of

23 the Council shall serve for a term of 6 years, and

24 the terms shall be staggered.
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1 ‘‘(B) EXPIRATION.—Except as provided in

2 paragraph (2), the terms of all Council members

3 shall expire on the third day of September in the

4 year of expiration.

5 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

6 TERM.—Each member who has served on the

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

8 eligible for reappointment for 1 term of 6 years.

9 ‘‘(D) VACANCY APPOINTMENTS.—Any mem10 ber appointed to fill a vacancy shall serve for the

11 remainder of the term for which the predecessor

12 of the member was appointed.

13 ‘‘(E) HOLDOVER SERVICE.—Notwithstand14 ing any other provision of this subsection, a

15 member of the Council shall serve after the expi16 ration of the term of the member until the succes17 sor to the member takes office.

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

19 ‘‘(A) MEMBERS WHOSE TERMS EXPIRED IN

20 1996 BUT CONTINUE TO SERVE.—

21 ‘‘(i) IN GENERAL.—The terms of 10

22 members of the Council whose terms expired

23 on September 3, 1996 and who continue to

24 serve because a successor has not been ap25 pointed shall be deemed to expire on the
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1 date of enactment of the Arts and Human2 ities Amendments of 1997.

3 ‘‘(ii) SUCCESSORS.—The President

4 shall appoint 7 members of the Council to

5 succeed members whose terms are deemed to

6 expire as described in clause (i). The terms

7 of the successors shall expire on September

8 3, 2002.

9 ‘‘(B) MEMBERS WHOSE TERMS EXPIRE IN

10 1998.—The President shall appoint 6 members of

11 the Council to succeed the 8 members of the

12 Council whose terms expire on September 3,

13 1998. The terms of the successors shall expire on

14 September 3, 2004.

15 ‘‘(C) MEMBERS WHOSE TERMS EXPIRE IN

16 2000.—The President shall appoint 7 members of

17 the Council to succeed the 8 members of the

18 Council whose terms expire on September 3,

19 2000. The terms of the successors shall expire on

20 September 3, 2006.

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

22 receive compensation at a rate to be fixed by the Chair23 person but not to exceed the daily equivalent of the maxi24 mum rate authorized for a position above grade GS–15 of

25 the General Schedule under section 5108 of title 5, United
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1 States Code, and be allowed travel expenses including per

2 diem in lieu of subsistence, in the same amounts and to

3 the same extent, as authorized under section 5703 of title

4 5, United States Code, for persons employed intermittently

5 in Federal Government service.

6 ‘‘(e) MEETINGS AND DUTIES.—

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

8 call of the Chairperson but not less often than twice

9 during each calendar year. Eleven members of the

10 Council shall constitute a quorum. All policy meet11 ings of the Council shall be open to the public.

12 ‘‘(2) DUTIES.—The Council shall—

13 ‘‘(A) advise the Chairperson with respect to

14 policies, programs, and procedures for carrying

15 out the functions of the Chairperson under this

16 title;

17 ‘‘(B) review applications for grants author18 ized under this title and make recommendations

19 to the Chairperson with respect to—

20 ‘‘(i) whether to approve particular ap21 plications for grants authorized under this

22 title that have been determined by advisory

23 panels to have artistic excellence and artis24 tic merit; and
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1 ‘‘(ii) the amount of funding that the

2 Chairperson should provide through such a

3 grant with respect to each such application

4 the Council recommends for approval;

5 ‘‘(C) use as criteria for the recommenda6 tions of the Council—

7 ‘‘(i) the extent to which the works de8 scribed in the applications fulfill the pur9 poses of this Act and the requirements

10 under the provisions of this Act;

11 ‘‘(ii) the artistic excellence and artistic

12 merit of the works described in the applica13 tions;

14 ‘‘(iii) the extent to which the applicant

15 serves an underserved community; and

16 ‘‘(iv) the extent to which the applicant

17 proposes arts education activities,

18 as determined by each Council member;

19 ‘‘(D) recommend more applications for

20 funding through grants than are anticipated can

21 be provided funding through the grants with

22 available funds;

23 ‘‘(E) create written records summarizing—

24 ‘‘(i) all meetings and discussions of the

25 Council; and
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1 ‘‘(ii) recommendations made by the

2 Council to the Chairperson; and

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

4 public in a manner that protects the privacy of

5 individual applicants for grants authorized

6 under this title, advisory panel members, and

7 Council members.

8 ‘‘(f) ACTIONS BY CHAIRPERSON.—

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

10 approve or disapprove any application for a grant

11 authorized under this title until the Chairperson has

12 received the recommendation of the Council on such

13 application. The Chairperson shall have final author14 ity to approve each such application, and shall deter15 mine the final amount of funding through any grant

16 awarded. The Chairperson may not approve an ap17 plication with respect to which the Council makes a

18 negative recommendation.

19 ‘‘(2) DELEGATIONS.—In the case of an applica20 tion, or amendment of an application, submitted

21 under this title and involving $35,000 or less, or a re22 quest for change in a grant amount of 20 percent or

23 less, the Chairperson may approve or disapprove such

24 application, amendment, or request, if such action is

25 taken pursuant to the terms of an express and direct
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1 delegation of authority from the Council to the Chair2 person, and if each such action by the Chairperson is

3 reported to the Council at the next regularly scheduled

4 meeting of the Council. Such action by the Chair5 person shall be used with discretion and shall not be6 come a normal practice of providing funding through

7 a grant authorized under this title. The terms of any

8 such delegation of authority shall not permit obliga9 tions for expenditure of funds under such delegation

10 for any fiscal year that exceed an amount equal to 2

11 percent of the sums appropriated for the fiscal year

12 pursuant to section 106(a)(1)(A).

13 ‘‘SEC. 206. LIMITATIONS ON GRANTS.

14 ‘‘(a) PROHIBITION ON SUBGRANTS.—The Chairperson

15 shall establish procedures to ensure that no funding pro16 vided through a grant under this title, except a grant made

17 to a State agency, a regional group, or a local arts agency

18 that is an agency of local government, may be used to make

19 a grant to any other organization or individual to conduct

20 activity independent of the direct grant recipient. Nothing

21 in this subsection shall prohibit payments made in ex22 change for goods or services rendered.

23 ‘‘(b) PROHIBITION ON SEASONAL SUPPORT.—No grant

24 awarded under this title shall be used for seasonal support

25 to a group, unless the application submitted by the group
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1 for such a grant specifically identifies the content of each

2 activity to be carried out under such a grant for the season

3 involved, including a specific identification of any project,

4 production, or workshop.

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

6 AND WORKSHOPS IN SPECIFIED DISCIPLINES.—Each

7 project, production, or workshop funded under this title

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

9 ‘‘(d) LABOR STANDARDS.—

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

11 receipt of any grant under this title that the grant re12 cipient furnish adequate assurances to the Secretary

13 of Labor that—

14 ‘‘(A) all professional performers and related

15 or supporting professional personnel employed

16 on projects or productions, or in workshops, that

17 are financed in whole or in part under this title

18 will be paid, without subsequent deduction or re19 bate on any account, not less than the minimum

20 compensation as determined by the Secretary of

21 Labor to be the prevailing minimum compensa22 tion for persons employed in similar activities;

23 and

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

25 workshop that is financed in whole or in part
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1 under this title will be performed or engaged in

2 under working conditions that are unsanitary or

3 hazardous or dangerous to the health and safety

4 of the employees engaged in such project, produc5 tion, or workshop.

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

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

8 production, or workshop described in paragraph

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

10 of compliance with the assurance described in para11 graph (1)(B).

12 ‘‘(3) STANDARDS, REGULATIONS, AND PROCE13 DURES.—The Secretary of Labor shall have the au14 thority to prescribe such standards, regulations, and

15 procedures as the Secretary of Labor may determine

16 to be necessary or appropriate to carry out this sub17 section.

18 ‘‘(e) LIMITATION ON GRANT AWARD.—

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

20 more than 2 grant awards under this title.

21 ‘‘(2) AGENCIES AND ORGANIZATIONS.—No group,

22 other than a State arts agency, may receive more

23 than 3 grant awards in a fiscal year under this title,

24 except that this paragraph shall not apply to a group
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1 that has entered into a cooperative agreement with

2 the Endowment to receive assistance under this title.

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

4 eligible for a grant under this title if—

5 ‘‘(1) no part of the net earnings of the group in6 ures to the benefit of any private stockholder, or indi7 vidual; and

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

9 charitable contribution under section 170(c) of the In10 ternal Revenue Code of 1986.

11 ‘‘(g) CITIZENSHIP REQUIREMENTS FOR INDIVID12 UALS.—An individual shall be eligible to receive a direct

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

14 such individual—

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

16 States; or

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

18 States for permanent residence who—

19 ‘‘(A) has filed an application for natu20 ralization in the manner prescribed by section

21 334 of the Immigration and Nationality Act (8

22 U.S.C. 1445); and

23 ‘‘(B) is not permanently ineligible to be24 come a citizen of the United States.
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1 ‘‘(h) INSTALLMENTS.—The Chairperson shall establish

2 procedures to provide for the distribution of funding pro3 vided through grants made under this title to recipients in

4 installments except in exceptional cases in which the Chair5 person determines that installments are not practicable. In

6 providing any such installments to a recipient of a grant

7 under this title, the Chairperson shall ensure that—

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

9 may be provided at the time the application for the

10 grant is approved; and

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

12 provided until the Chairperson finds that the recipi13 ent of such grant is complying substantially with this

14 Act and with the conditions under which such fund15 ing is provided to such recipient.

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

17 under this title shall be made in accordance with terms and

18 conditions approved by the Secretary of the Treasury.

19 ‘‘SEC. 207. ADMINISTRATIVE PROVISIONS.

20 ‘‘(a) AUTHORITIES OF CHAIRPERSON.—In addition to

21 any authorities vested in the Chairperson by other provi22 sions of this Act, the Chairperson, in carrying out the func23 tions of the Chairperson, shall have authority—

24 ‘‘(1) to prescribe such regulations and procedures

25 as the Chairperson determines to be necessary, govern-
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1 ing the manner in which the functions of the Chair2 person shall be carried out;

3 ‘‘(2) to appoint and determine the compensation

4 of such employees, subject to title 5, United States

5 Code, as may be necessary to carry out the functions

6 of the Chairperson, to define the duties of such em7 ployees, and to supervise and direct the activities of

8 such employees;

9 ‘‘(3) to procure the temporary and intermittent

10 services of experts and consultants, including panels

11 of experts, and compensate the experts and consult12 ants in accordance with section 3109 of title 5, Unit13 ed States Code;

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

15 of individuals and reimburse the individuals for trav16 el expenses, including per diem in lieu of subsistence,

17 in the same amounts and to the same extent as au18 thorized under section 5703 of title 5, United States

19 Code, for persons employed intermittently in Federal

20 Government service;

21 ‘‘(5) to make advance, progress, and other pay22 ments without regard to section 3324 of title 31,

23 United States Code;

24 ‘‘(6) to rent office space in the District of Colum25 bia; and
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1 ‘‘(7) to make other necessary expenditures.

2 ‘‘(b) PUBLICATIONS.—Official publications of the En3 dowment under this title may be supported without regard

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

5 Code, if the Chairperson consults with the Joint Committee

6 on Printing of the Congress.

7 ‘‘(c) COORDINATION.—The Chairperson shall coordi8 nate the programs of the Endowment, insofar as prac9 ticable, with other Federal programs and programs under10 taken by other public agencies or private groups, and shall

11 develop the programs of the Endowment with due regard

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

13 be made by other Federal agencies under the existing pro14 grams. The Chairperson may enter into interagency agree15 ments to promote or assist with the arts-related activities

16 of other Federal agencies, on a reimbursable or non17 reimbursable basis, and may use funds authorized to be ap18 propriated to carry out this title to pay for the costs of

19 such promotion or assistance.

20 ‘‘SEC. 208. REPORTS.

21 ‘‘(a) ANNUAL REPORT OF CHAIRPERSON.—The Chair22 person shall submit an annual report to the President for

23 submission to the appropriate committees of Congress on

24 or before the 15th day of April of each year. The report

25 shall summarize the activities of the Endowment for the
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1 preceding year, and shall include such recommendations as

2 the Chairperson determines to be appropriate.

3 ‘‘(b) FINANCIAL REPORTS AND COMPLIANCE.—

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

5 receipt of a grant made under this title by the Chair6 person that—

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

8 in the application described in section 203—

9 ‘‘(i) a detailed description of the pro10 posed project, production, or workshop for

11 which the grant is requested;

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

13 such proposed project, production, or work14 shop; and

15 ‘‘(iii) an assurance that the applicant

16 will meet the standards of artistic excellence

17 and artistic merit;

18 ‘‘(B)(i) each grant recipient under this title

19 carry out the proposal consistent with the de20 scription contained in the application, as ap21 proved by the Chairperson for funding through

22 the grant; and

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

24 change the activities carried out under the grant
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1 justify the requested change by a written request

2 subject to approval by the Chairperson; and

3 ‘‘(C) each such grant recipient agree to and

4 comply with requirements to submit to the

5 Chairperson—

6 ‘‘(i) interim reports, including an an7 nual report for each project, production, or

8 workshop carried out under the grant dur9 ing a period exceeding 1 year, describing

10 the progress of the grant recipient in carry11 ing out such project, production, or work12 shop and compliance by the grant recipient

13 with the conditions of receipt of such grant;

14 ‘‘(ii) financial reports containing such

15 information as the Chairperson determines

16 to be necessary to ensure that the funding

17 made available through the grant is ex18 pended in accordance with the terms and

19 conditions under which the grant is made;

20 ‘‘(iii) a final report describing the

21 project, production, or workshop carried out

22 with the funding provided through the grant

23 and the compliance by the grant recipient

24 with the conditions of receipt of such grant,

25 including the condition that the work as-
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1 sisted meet the standards of artistic excel2 lence and artistic merit; and

3 ‘‘(iv) in the case of a project or produc4 tion, and if practicable, as determined by

5 the Chairperson, a copy of such project or

6 production.

7 ‘‘(2) REPORT REQUIREMENTS.—The Chairperson

8 shall determine the appropriate form and timing of

9 interim reporting described in paragraph (1)(C)(i)

10 for a grant recipient under this title. The reports and

11 copy described in clauses (ii), (iii), and (iv) of para12 graph (1)(C) shall be due not later than 90 days after

13 the end of the period for which such grant recipient

14 receives funding through the grant or 90 days after

15 the completion of the project, production, or workshop,

16 whichever occurs earlier. The Chairperson may extend

17 the 90-day period if the recipient shows good cause

18 why such an extension should be granted.

19 ‘‘(c) EVALUATION.—The Chairperson shall conduct a

20 post-award evaluation of activities for which grants are

21 made by the Chairperson under this title. Such evaluation

22 may include an audit to determine the accuracy of the re23 ports required to be submitted by grant recipients under

24 subsection (b).
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1 ‘‘(d) REPORTS.—The Chairperson shall establish pro2 cedures to require that no additional funding shall be pro3 vided to a recipient of a grant authorized under this title

4 unless such recipient has submitted to the Chairperson all

5 required interim, financial, and final reports under sub6 section (b).

7 ‘‘SEC. 209. SANCTIONS AND PAYMENTS.

8 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recipi9 ent of a grant made under this title, or an indirect recipient

10 of funding provided through the grant, substantially fails

11 to satisfy the purposes for which such grant is made, as

12 determined by the Chairperson, the Chairperson may—

13 ‘‘(1) for purposes of determining whether to make

14 any subsequent funding to the direct or indirect re15 cipient under this title, take into consideration the re16 sults of the post-award evaluation conducted under

17 section 208(c);

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

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

20 the project, production, or workshop for which the

21 grant was received with, the Endowment; and

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

23 published, require that the publication contain the fol24 lowing statement: ‘The opinions, findings, conclu25 sions, and recommendations expressed in this publica-
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1 tion do not reflect the views of the National Endow2 ment for the Arts.’.

3 ‘‘(b) NONCOMPLIANCE.—

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

5 the actions described in paragraph (2) whenever the

6 Chairperson, after providing reasonable notice and an

7 opportunity for hearing, finds that—

8 ‘‘(A) a direct recipient of a grant under this

9 title, or an indirect recipient of funding provided

10 through the grant, is not complying substantially

11 with the provisions of this title;

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

13 received a grant under this title, or an indirect

14 recipient of funding provided through the grant,

15 is not complying substantially with the terms

16 and conditions of the State plan accompanying

17 the application approved for the grant under

18 this title; or

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

20 to a recipient, State agency, or regional group

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

22 diverted from the purposes for which such fund23 ing was provided.

24 ‘‘(2) ACTIONS.—On making the finding described

25 in paragraph (1), the Chairperson shall immediately
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1 notify the direct recipient, State agency, or regional

2 group that received the funding at issue that—

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

4 under this title to such recipient, agency, or

5 group until there is no longer any default or

6 failure to comply or the diversion is corrected; or

7 ‘‘(B) if compliance or correction is impos8 sible, until such recipient, agency, or group re9 pays or arranges the repayment of the Federal

10 funds that were improperly diverted or expended.

11 ‘‘(c) OBSCENE WORKS.—

12 ‘‘(1) DETERMINATION.—If, after providing rea13 sonable notice and opportunity for a hearing on the

14 record, the Chairperson determines that a direct re15 cipient of a grant under this title, or an indirect re16 cipient of funding provided through the grant, used

17 the funding for a project, production, or workshop

18 that is determined to be obscene, the Chairperson shall

19 require that until the direct recipient repays such

20 funding (in such amount, and under such terms and

21 conditions, as the Chairperson determines to be ap22 propriate) to the Endowment, no subsequent funding

23 shall be provided under this title to such recipient.

24 ‘‘(2) CREDITING.—Funds repaid under this sub25 section to the Endowment shall be deposited in the
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1 Treasury of the United States and credited as mis2 cellaneous receipts.

3 ‘‘(3) APPLICATION.—

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

5 apply with respect to grants made before October

6 1, 1990.

7 ‘‘(B) DURATION.—This subsection shall not

8 apply with respect to a project, production, or

9 workshop after the expiration of the 7-year pe10 riod beginning on the latest date on which a

11 grant is made under this title for such project,

12 production, or workshop.

13 ‘‘(d) RECAPTURE.—

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

15 this title shall pay the amount described in para16 graph (2) to the Endowment if the Chairperson finds

17 that the recipient has derived net program income in

18 excess of the match required under the terms of the

19 agreement from the creation of an original, commer20 cially successful project, production, or workshop

21 funded that exceeds the lesser of—

22 ‘‘(A) $50,000; or

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

24 ‘‘(2) AMOUNT.—At the discretion of the Chair25 person, the amount referred to in paragraph (1) is
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not less than 1⁄3 and not more than 1 1 ⁄2 of the amount

2 of the net program income generated within 5 years

3 after the end of the grant period, but not more than

4 the amount of the funding, unless the Chairperson has

5 reached an agreement with the grantee upon the

6 award of a grant that the amount referred to in para7 graph (1) shall exceed the amount of the grant.

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

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

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

11 special interest bearing account to the credit of the Endow12 ment.

13 ‘‘SEC. 210. NATIONAL MEDAL OF ARTS AWARDS.

14 ‘‘(a) NATIONAL MEDAL OF ARTS AWARDS.—

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

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

17 such design as is determined to be appropriate by the

18 President, on the basis of recommendations submitted

19 by the National Council on the Arts, and which shall

20 be awarded as provided in this subsection.

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

22 time award the National Medal of Arts, on the basis

23 of recommendations from the National Council on the

24 Arts, to individuals or groups who in the judgment

25 of the President are deserving of special recognition
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1 by reason of their outstanding contributions to the ex2 cellence, growth, support, and availability of the arts

3 in the United States.

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

5 such medals may be awarded in any calendar year.

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

7 awarded the National Medal of Arts if at the time

8 such award is made such individual meets the re9 quirements of section 206(g).

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

11 National Medal of Arts if such group is organized or

12 incorporated in the United States.

13 ‘‘(6) CEREMONIES.—The presentation of the Na14 tional Medal of Arts shall be made by the President

15 with such ceremonies as the President may determine

16 to be appropriate, including attendance by appro17 priate Members of Congress.

18 ‘‘(b) FUNDS.—The Chairperson shall use amounts re19 ceived by the National Endowment for the Arts under sec20 tion 105(b)(1)(A) to carry out this section.

21 ‘‘TITLE III—NATIONAL ENDOW22 MENT FOR THE HUMANITIES

23 ‘‘SEC. 301. DEFINITIONS.

24 ‘‘In this title:

25 ‘‘(1) PROJECT.—
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1 ‘‘(A) IN GENERAL.—The term ‘project’

2 means an activity organized to carry out the ob3 jectives of this title.

4 ‘‘(B) RENOVATION OR CONSTRUCTION.—

5 Such term also includes—

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

7 ‘‘(I) the amount of the expendi8 ture of Federal funds for such purpose

9 in the case of any facility does not ex10 ceed $250,000; and

11 ‘‘(II) two-thirds of the members of

12 the National Council on the Human13 ities (who are present and voting) rec14 ommend a grant involving an expendi15 ture for such purpose; and

16 ‘‘(ii) for purposes of subsections (d)

17 and (e) of section 302, the construction of a

18 facility if—

19 ‘‘(I) such construction is for dem20 onstration purposes or under unusual

21 circumstances in which there is no

22 other manner by which to accomplish a

23 humanistic purpose; and

24 ‘‘(II) two-thirds of the members of

25 the National Council on the Human-
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1 ities (who are present and voting) rec2 ommend a grant involving an expendi3 ture for such purpose.

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

5 an activity the primary purpose of which is to pro6 mote scholarship and teaching among the partici7 pants.

8 ‘‘SEC. 302. ESTABLISHMENT OF THE NATIONAL ENDOW9 MENT FOR THE HUMANITIES.

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

11 the Foundation a National Endowment for the Humanities

12 (referred to in this title as the ‘Endowment’).

13 ‘‘(b) CHAIRPERSON.—

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

15 headed by a chairperson, to be known as the Chair16 person of the Endowment (referred to in this title as

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

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

19 Senate.

20 ‘‘(2) TERM.—

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

22 Chairperson shall be 4 years, except that any

23 Chairperson appointed to fill a vacancy shall

24 serve for the remainder of the term for which the

25 predecessor of the Chairperson was appointed.
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1 Notwithstanding any other provision of this sub2 paragraph, on the expiration of the term of office

3 of the Chairperson, the Chairperson shall serve

4 until the successor to the Chairperson is ap5 pointed and has qualified.

6 ‘‘(B) REAPPOINTMENT.—The Chairperson

7 shall be eligible for reappointment.

8 ‘‘(c) PARTNERSHIP GRANTS.—

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

10 is to support programs of humanities councils at the

11 State and local levels.

12 ‘‘(2) DEFINITION.—

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

14 subparagraph (B), in this subsection, the term

15 ‘State entity’ means—

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

17 an application submitted under paragraph

18 (4); or

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

20 to submit an application under paragraph

21 (4), an appropriate entity that obtains ap22 proval of an application submitted under

23 paragraph (5).

24 ‘‘(B) JURISDICTION.—
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1 ‘‘(i) STATE ENTITY.—In paragraph

2 (6)(C)(ii), the term ‘State entity’ means a

3 State entity, as defined in subparagraph

4 (A), for a State.

5 ‘‘(ii) STATE.—In clause (i), and not6 withstanding section 3(8), the term ‘State’,

7 includes, in addition to the several States of

8 the United States, only the jurisdictions

9 specified in such section that have a popu10 lation of 200,000 or more, according to the

11 latest decennial census.

12 ‘‘(3) GENERAL AUTHORITY.—Using funds re13 served under section 106(b)(1)(C), the Chairperson,

14 acting on the recommendation of the National Coun15 cil on the Humanities, is authorized, in accordance

16 with the provisions of this subsection, to establish and

17 carry out a program of grants to assist State enti18 ties—

19 ‘‘(A) in paying for not more than 50 per20 cent of the cost (except as otherwise provided in

21 this subsection) of supporting activities that

22 achieve the objectives described in subparagraphs

23 (A) through (F) of subsection (d)(2) and in sub24 paragraphs (A) and (B) of subsection (e)(2); or
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1 ‘‘(B) in matching contributions from non2 Federal sources made to a trust fund the purpose

3 of which is to provide long-term financial sup4 port for such activities.

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

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

7 grant under this subsection for any fiscal year,

8 if a State desires to designate or to provide for

9 the establishment of a State agency (referred to

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

11 agency for the administration of the State plan

12 referred to in subparagraph (B) relating to the

13 grant, such State shall designate as the State

14 agency the humanities council or shall provide

15 for the establishment of such a council.

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

17 any State that designates or provides for the es18 tablishment of a State agency as described in

19 subparagraph (A), the chief executive officer of

20 the State shall submit, before the beginning of

21 each fiscal year, an application for a grant and

22 accompany such application with a State plan

23 that the Chairperson finds—

24 ‘‘(i) designates or provides for the es25 tablishment of a State agency;
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1 ‘‘(ii) provides that the chief executive

2 officer of the State will appoint new mem3 bers to the State humanities council des4 ignated or established under subparagraph

5 (A), as vacancies occur as a result of the ex6 piration of the terms of members of such

7 council, until the chief executive officer has

8 appointed all of the members of such coun9 cil;

10 ‘‘(iii) provides for the expenditure,

11 from State funds, of an amount equal to 50

12 percent of the portion of the funding re13 ceived by such State through a grant made

14 under paragraph (6)(A) (relating to the

15 minimum State allotment), or 25 percent of

16 the total amount of funding received by

17 such State through grants made under this

18 subsection, whichever is greater, for the fis19 cal year involved (except as otherwise pro20 vided in paragraph (7));

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

22 State under this subsection will be expended

23 solely on activities, approved by the State

24 agency, that—
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1 ‘‘(I) achieve the objectives de2 scribed in subparagraphs (A) through

3 (F) of subsection (d)(2) and subpara4 graphs (A) and (B) of subsection

5 (e)(2); and

6 ‘‘(II) are designed to bring the hu7 manities to the public;

8 ‘‘(v) provides assurances that State

9 funds will be made available for the purpose

10 of meeting the requirements of this subpara11 graph;

12 ‘‘(vi) provides that the State agency

13 will make such reports, in such manner and

14 containing such information, as the Chair15 person may from time to time require, in16 cluding a description of the progress made

17 toward achieving the objectives of the State

18 plan;

19 ‘‘(vii) provides—

20 ‘‘(I) an assurance that the State

21 agency has held, after reasonable no22 tice, public meetings in the State to

23 allow the public, interested organiza24 tions, and scholars to present views
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1 and make recommendations regarding

2 the State plan; and

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

5 the State agency to such recommenda6 tions; and

7 ‘‘(viii) contains—

8 ‘‘(I) for the most recent preceding

9 year for which information is avail10 able, a description of the extent to

11 which the activities supported by fund12 ing from the State agency under this

13 subsection were available to all people

14 and communities in the State and a

15 description of the level of participation

16 by scholars and scholarly organizations

17 in activities supported by funding

18 from the State agency under this sub19 section; and

20 ‘‘(II) a description of activities

21 supported by funding from the State

22 agency under this subsection that exist

23 or are being developed to address the

24 availability of the humanities to all

25 people or communities described in
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1 subclause (I) or to secure wider par2 ticipation of scholars and scholarly or3 ganizations described in subclause (I).

4 ‘‘(C) APPROVAL.—The Chairperson may not

5 approve an application described in subpara6 graph (B) unless the accompanying State plan

7 satisfies the requirements specified in subpara8 graph (B).

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

10 ‘‘(A) DESIGNATION.—In any State in which

11 the chief executive officer of the State fails to sub12 mit an application under paragraph (4)(B) for

13 a fiscal year, the Chairperson may make grants

14 under paragraph (3) to an appropriate entity in

15 the State, and each such entity shall establish a

16 procedure that ensures that 8 members of the

17 governing body of such entity shall be appointed

18 by an appropriate officer or agency of such

19 State, except that in no event may the number

of such members exceed 1 20 ⁄3 of the total member21 ship of such governing body. The officer or agen22 cy shall select the members from among individ23 uals who have knowledge of or experience in the

24 humanities.
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1 ‘‘(B) APPLICATION AND PLAN.—If a State

2 fails to submit an application under paragraph

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

4 in the State desiring to receive a grant under

5 this subsection for the fiscal year shall submit an

6 application for such grant at such time and in

7 such manner as shall be specified by the Chair8 person, and accompany such application with a

9 State plan that the Chairperson finds—

10 ‘‘(i) provides assurances that such en11 tity will comply with the requirements of

12 subparagraph (A);

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

14 entity under this paragraph will be ex15 pended solely on activities that—

16 ‘‘(I) achieve the objectives de17 scribed in subparagraphs (A) through

18 (F) of subsection (d)(2) and subpara19 graphs (A) and (B) of subsection

20 (e)(2); and

21 ‘‘(II) are designed to bring the hu22 manities to the public;

23 ‘‘(iii) establishes a membership policy

24 that is designed to ensure broad public rep-
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1 resentation with respect to activities admin2 istered by such entity;

3 ‘‘(iv) provides for a nomination process

4 that ensures opportunities for nomination

5 to membership in the governing body from

6 various groups in such State and from a

7 variety of segments of the population of

8 such State, including individuals who by

9 reason of their achievement, scholarship, or

10 creativity in the humanities, are especially

11 qualified to serve as members of the body;

12 ‘‘(v) provides for a membership rota13 tion process that ensures the regular rota14 tion of the membership and officers of such

15 entity;

16 ‘‘(vi) establishes reporting procedures

17 that are designed to inform the chief execu18 tive officer of such State, and other appro19 priate officers and agencies, of the activities

20 of such entity;

21 ‘‘(vii) establishes procedures to ensure

22 public access to information relating to such

23 activities;

24 ‘‘(viii) provides that such entity will

25 make such reports, at such times, in such
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1 manner, and containing such information,

2 as the Chairperson may require, including

3 a description of the progress made toward

4 achieving the objectives of the State plan;

5 ‘‘(ix) provides—

6 ‘‘(I) an assurance that the entity

7 has held, after reasonable notice, public

8 meetings in the State to allow the pub9 lic, interested organizations, and schol10 ars to present views and make rec11 ommendations regarding the State

12 plan; and

13 ‘‘(II) a summary of such rec14 ommendations and of the response of

15 the entity to such recommendations;

16 and

17 ‘‘(x) contains—

18 ‘‘(I) for the most recent preceding

19 year for which information is avail20 able, a description of the extent to

21 which activities supported by funding

22 from the entity under this subsection

23 were available to all people and com24 munities in the State and a descrip25 tion of the level of participation by
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1 scholars and scholarly organizations in

2 activities supported by funding from

3 the entity under this subsection; and

4 ‘‘(II) a description of activities

5 supported by funding from the entity

6 under this subsection that exist or are

7 being developed to address the avail8 ability of the humanities to all people

9 or communities described in subclause

10 (I) or to secure wider participation of

11 scholars and scholarly organizations

12 described in subclause (I).

13 ‘‘(C) APPROVAL.—The Chairperson may not

14 approve an application described in subpara15 graph (B) unless the accompanying plan satis16 fies the requirements specified in subparagraph

17 (B).

18 ‘‘(6) ALLOTMENTS.—

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

20 to carry out this subsection for any fiscal year,

21 each State entity shall be allotted at least

22 $200,000.

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

24 available to carry out this subsection for any fis25 cal year are insufficient to make the allotments
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1 under subparagraph (A) in full, such sums shall

2 be allotted so that each State entity receives an

3 equal amount.

4 ‘‘(C) EXCESS FUNDS.—In any case in

5 which the sums available to carry out this sub6 section for any fiscal year are in excess of the

7 amount required to make the allotments under

8 subparagraph (A)—

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

10 excess for such fiscal year shall be available

11 to the Chairperson for making grants under

12 this subsection to State entities;

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

14 excess for such fiscal year shall be allotted

15 so that each State entity receives an equal

16 amount; and

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

18 such excess for such fiscal year shall be al19 lotted so that each State entity receives an

20 amount that bears the same ratio to such

21 remainder as the population of the State for

22 which the application is approved bears to

23 the population of all the States.

24 ‘‘(7) LIMITATIONS.—

25 ‘‘(A) FEDERAL SHARE.—
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1 ‘‘(i) IN GENERAL.—Funding provided

2 through a grant made under this subsection

3 to a State entity for any fiscal year shall be

4 available to each State entity that has an

5 application approved by the Chairperson,

6 and has the State plan accompanying the

7 application in effect on the first day of such

8 fiscal year, to pay not more than 50 percent

9 of the total cost of carrying out any activity

10 described in paragraph (3).

11 ‘‘(ii) EXCESS PORTION.—Except as

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

13 funding provided through any grant made

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

15 for any fiscal year that exceeds $125,000

16 shall be available, at the discretion of the

17 Chairperson, to pay not more than 100 per18 cent of such cost of carrying out an activity

19 under this subsection 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
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1 percent of such cost, as described in clause

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

3 of the funding provided through such grant

4 for such fiscal year.

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

7 this subsection shall be used to supplement, and

8 shall not supplant, non-Federal funds expended

9 for supporting activities described in paragraph

10 (3).

11 ‘‘(8) UNOBLIGATED FUNDS.—Any amount allot12 ted to a State entity under paragraph (6) for any fis13 cal year that is not obligated by the State entity ear14 lier than 60 days prior to the end of the fiscal year

15 for which the amount is appropriated shall be avail16 able for making grants under subsections (d) and (e).

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

18 Chairperson may not make grants under this sub19 section to more than 1 entity in any State.

20 ‘‘(d) NATIONAL GRANTS.—

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

22 is to provide support for grants to groups, individ23 uals, and State agencies or entities to carry out ac24 tivities relating to education and the public human25 ities that have a national audience and are of na-
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1 tional significance, such as activities relating to edu2 cation in the humanities, media projects, projects in

3 museums and by historical organizations, projects in

4 libraries and archives, public humanities projects, en5 dowment building, and technology activities.

6 ‘‘(2) GENERAL AUTHORITY.—Using funds re7 served under section 106(b)(1)(D), the Chairperson,

8 acting on the recommendation of the National Coun9 cil on the Humanities, may establish and carry out

10 a program of grants to groups, or in appropriate

11 cases individuals, who or which meet the standard of

12 excellence in the humanities and significance in the

13 humanities, or State agencies or entities, to pay for

14 the Federal share of the cost of activities, in accord15 ance with subsection (f), to—

16 ‘‘(A) develop and encourage the pursuit of a

17 national policy to further the public good

18 through public funding of the humanities;

19 ‘‘(B) initiate and support research and pro20 grams to strengthen the research and teaching

21 potential of the United States in the humanities;

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

23 the humanities;

24 ‘‘(D) foster education in, and public under25 standing and appreciation of, the humanities;
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1 ‘‘(E) support projects that foster or promote

2 literacy;

3 ‘‘(F) ensure that the benefit of the programs

4 of the Endowment will also be available to the

5 citizens of the United States where such pro6 grams would otherwise be unavailable due to geo7 graphic or economic reasons;

8 ‘‘(G) enable the groups to increase the levels

9 of continuing support and to increase the range

10 of contributors to the program of the groups;

11 ‘‘(H) provide administrative and manage12 ment improvements for the groups, particularly

13 in the field of long-range financial planning;

14 ‘‘(I) enable the groups to increase audience

15 participation in, and appreciation of, programs

16 sponsored by the groups;

17 ‘‘(J) develop new sources of long-term sup18 port for educational, scholarly, and public pro19 grams in the humanities, including renovating

20 or constructing facilities, augmenting or estab21 lishing endowment funds, and purchasing cap22 ital equipment to ensure financial stability;

23 ‘‘(K) stimulate greater cooperation among

24 the groups especially designed to serve better the
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1 communities in which the groups are located;

2 and

3 ‘‘(L) foster greater citizen involvement in

4 planning the cultural development of a commu5 nity.

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

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

8 is to encourage the development and dissemination of

9 significant scholarship in the humanities by groups,

10 individuals, and State agencies or entities by such

11 means as fellowships for college and university faculty

12 and independent scholars, dissertation grants, sum13 mer stipends, and funds for scholarly publications,

14 reference materials, basic research, institutional pro15 grams, and preservation.

16 ‘‘(2) GENERAL AUTHORITY.—Using funds re17 served under section 106(b)(1)(E), the Chairperson,

18 acting on the recommendation of the National Coun19 cil on the Humanities, may establish and carry out

20 a program of grants to groups, individuals, State

21 agencies, and State entities for the purpose of paying

22 for the Federal share of the cost, in accordance with

23 subsection (f), of—

24 ‘‘(A) initiating and supporting (including

25 supporting through fellowships) training, work-
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•S 1020 RS

1 shops, programs, research, and publications, in

2 the humanities, that have substantial scholarly

3 and cultural significance and that reach or re4 flect the cultural heritage of the United States;

5 ‘‘(B) fostering projects that provide access

6 to, and preserving materials important to re7 search, education, and public understanding re8 garding, the humanities;

9 ‘‘(C) enabling the groups to increase the lev10 els of continuing support and to increase the

11 range of contributors to the program of the

12 groups;

13 ‘‘(D) providing administrative and man14 agement improvements for the groups, particu15 larly in the field of long-range financial plan16 ning; and

17 ‘‘(E) developing new sources of long-term

18 support for educational, scholarly, and public

19 programs in the humanities, including renovat20 ing or constructing facilities, augmenting or es21 tablishing endowment funds, and purchasing

22 capital equipment to ensure financial stability.

23 ‘‘(3) TRAINING; WORKSHOPS; RESEARCH.—A fel24 lowship awarded to an individual under paragraph

25 (2)(A) may be used for the purpose of supporting
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•S 1020 RS

1 study or research at an appropriate nonprofit institu2 tion selected by the individual, for a stated period of

3 time. The total amount of any grant under para4 graph (2)(A) to any group engaging in workshop ac5 tivities for which an admission or other charge is

6 made to the general public shall not exceed 30 percent

7 of the total cost of such activities.

8 ‘‘(4) CONSIDERATIONS.—In selecting a group or

9 individual as a recipient of a grant to be made under

10 this subsection, the Chairperson shall give particular

11 regard to scholars, and educational and cultural in12 stitutions, that traditionally have been underrep13 resented in the humanities.

14 ‘‘(f) FEDERAL SHARE AND NON-FEDERAL SHARE FOR

15 NATIONAL GRANTS AND RESEARCH AND SCHOLARSHIP

16 GRANTS.—

17 ‘‘(1) FEDERAL SHARE.—

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

19 paragraph (3), and subject to subparagraph (B),

20 the Federal share described subsection (d)(2) or

21 (e)(2) shall be determined by the Chairperson,

22 after recommendation from the Council.

23 ‘‘(B) SPECIAL RULE.—With respect to a fis24 cal year, the Chairperson shall ensure that the

25 aggregate amount of funding provided by the
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1 Chairperson through grants under subsections

2 (d)(2) and (e)(2) for that fiscal year shall equal

3 the aggregate amount of non-Federal contribu4 tions made for that fiscal year, in accordance

5 with paragraph (2), by recipients of grants

6 awarded under subsections (d)(2) and (e)(2).

7 ‘‘(2) NON-FEDERAL SHARE.—

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

9 paragraph (3) and subject to subparagraph (B),

10 the Chairperson shall have the discretion in de11 termining the amount of non-Federal contribu12 tion that a recipient of a grant under subsection

13 (d)(2) or (e)(2) shall be required to make toward

14 the cost of an activity funded under the grant.

15 ‘‘(B) SPECIAL RULE.—With respect to a fis16 cal year, the Chairperson shall ensure that the

17 aggregate amount of non-Federal contributions

18 provided by recipients of grants under sub19 sections (d)(2) and (e)(2) for that fiscal year

20 shall equal the aggregate amount of funding that

21 the Chairperson provided through grants under

22 subsections (d)(2) and (e)(2) for that fiscal year.

23 ‘‘(3) SPECIAL RULES FOR ACTIVITIES RELATING

24 TO NEW SOURCES OF LONG-TERM SUPPORT.—
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1 ‘‘(A) FEDERAL SHARE.—The Federal share

2 described in subsection (d)(2) or (e)(2) for an ac3 tivity described in subsection (d)(2)(J) or

4 (e)(2)(E) shall be an amount equal to not more

5 than 25 percent of the cost of the activity.

6 ‘‘(B) NON-FEDERAL SHARE.—A recipient

7 that receives a grant under subsection (d) to

8 carry out an activity described in paragraph

9 (2)(J) of such subsection, or subsection (e) to

10 carry out an activity described in paragraph

11 (2)(E) of such subsection, shall make available

12 non-Federal contributions toward the costs of the

13 activity in an amount equal to not less than 75

14 percent of such costs.

15 ‘‘SEC. 303. APPLICATION PROCEDURES.

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

17 State, group, individual, agency, or, organization shall sub18 mit an application to the Chairperson at such time, in such

19 manner, and containing such information as the Chair20 person may prescribe.

21 ‘‘SEC. 304. REVIEW PANELS.

22 ‘‘The Chairperson may select panels of experts under

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

24 with respect to the approval of applications for grants au25 thorized under this title. In selecting the panels, the Chair-
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1 person shall appoint individuals who have exhibited exper2 tise and leadership in the field under review, who broadly

3 represent diverse humanistic perspectives and geographic

4 factors, and who broadly represent cultural diversity.

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

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

7 the Endowment a National Council on the Humanities (re8 ferred to in this section as the ‘Council’).

9 ‘‘(b) COMPOSITION.—

10 ‘‘(1) IN GENERAL.—The Council shall be com11 posed of the Chairperson of the Endowment, who shall

12 be the Chairperson of the Council, and 20 other mem13 bers appointed by the President, by and with the ad14 vice and consent of the Senate, who shall be selected—

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

16 United States who—

17 ‘‘(i) are recognized for their broad

18 knowledge of, or expertise in, the human19 ities; and

20 ‘‘(ii) have established records of distin21 guished service, or achieved eminence, in the

22 humanities;

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

24 who are professionally engaged in the human25 ities; and
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1 ‘‘(C) so as collectively to provide an appro2 priate distribution of members among the major

3 humanities fields.

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

5 making such appointments, give consideration to such

6 recommendations as may, from time to time, be sub7 mitted to the President by leading national organiza8 tions in the major humanities fields. In making such

9 appointments, the President shall give due regard to

10 equitable representation of women, racially and eth11 nically diverse individuals, and individuals with dis12 abilities, who are involved in the humanities. Mem13 bers of the Council shall be appointed so as to rep14 resent equitably geographical areas in the United

15 States.

16 ‘‘(c) TERMS.—

17 ‘‘(1) IN GENERAL.—

18 ‘‘(A) STAGGERED TERMS.—Each member of

19 the Council shall serve for a term of 6 years, and

20 the terms shall be staggered.

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

22 paragraph (2), the terms of all Council members

23 shall expire on the third day of September in the

24 year of expiration.
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1 ‘‘(C) REAPPOINTMENT AFTER PARTIAL

2 TERM.—Each member who has served on the

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

4 eligible for reappointment for 1 term of 6 years.

5 ‘‘(D) VACANCY APPOINTMENTS.—Any mem6 ber appointed to fill a vacancy shall serve for the

7 remainder of the term for which the predecessor

8 of the member was appointed.

9 ‘‘(E) HOLDOVER SERVICE.—Notwithstand10 ing any other provision of this subsection, a

11 member of the Council shall serve after the expi12 ration of the term of the member until the succes13 sor to the member takes office.

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

15 ‘‘(A) MEMBERS WHOSE TERMS EXPIRED IN

16 1996 BUT CONTINUE TO SERVE.—

17 ‘‘(i) IN GENERAL.—The terms of 6

18 members of the Council whose terms expired

19 on September 3, 1996 and who continue to

20 serve because a successor has not been ap21 pointed shall be deemed to expire on the

22 date of enactment of the Arts and Human23 ities Amendments of 1997.

24 ‘‘(ii) SUCCESSORS.—The President

25 shall appoint 3 members of the Council to
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1 succeed members whose terms are deemed to

2 expire as described in clause (i).

3 ‘‘(B) MEMBERS WHOSE TERMS EXPIRE IN

4 2000.—

5 ‘‘(i) IN GENERAL.—The terms of 2

6 members of the Council whose terms expire

7 on September 3, 2000 shall be deemed to ex8 pire on September 3, 2002.

9 ‘‘(ii) SUCCESSORS.—The President

10 shall not appoint any members to succeed

11 the members whose terms are deemed to ex12 pire as described in clause (i).

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

14 receive compensation at a rate to be fixed by the Chair15 person but not to exceed the daily equivalent of the maxi16 mum rate authorized for a position above grade GS–15 of

17 the General Schedule under section 5108 of title 5, United

18 States Code, and be allowed travel expenses including per

19 diem in lieu of subsistence, as authorized under section

20 5703 of title 5, United States Code, for persons employed

21 intermittently in Federal Government service.

22 ‘‘(e) MEETINGS AND DUTIES.—

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

24 call of the Chairperson but not less often than twice
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•S 1020 RS

1 during each calendar year. Eleven members of the

2 Council shall constitute a quorum.

3 ‘‘(2) DUTIES.—The Council shall—

4 ‘‘(A) advise the Chairperson with respect to

5 policies, programs, and procedures for carrying

6 out the functions of the Chairperson under this

7 title; and

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

10 to the Chairperson with respect to the approval

11 of each application.

12 ‘‘(f) ACTIONS BY CHAIRPERSON.—

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

14 approve or disapprove any application for a grant

15 authorized under this title until the Chairperson has

16 received the recommendation of the Council on such

17 application, unless the Council fails to make a rec18 ommendation on the application within a reasonable

19 time.

20 ‘‘(2) DELEGATIONS.—In the case of an applica21 tion submitted under this title and involving $35,000

22 or less, the Chairperson may approve or disapprove

23 such application if such action is taken pursuant to

24 the terms of an express and direct delegation of au25 thority from the Council to the Chairperson, and if
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1 each such action by the Chairperson is reviewed by

2 the Council. The terms of any such delegation of au3 thority shall not permit obligations for expenditure of

4 funds under such delegation for any fiscal year that

5 exceed an amount equal to 3 percent of the sums ap6 propriated for the fiscal year pursuant to section

7 106(b)(1)(A).

8 ‘‘SEC. 306. LIMITATIONS ON GRANTS.

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

10 ‘‘(1) DEFINITIONS.—In this subsection:

11 ‘‘(A) PRODUCTION ENTITY.—The term ‘pro12 duction entity’ means any partnership, corpora13 tion, business enterprise, or other organization

14 engaged in the production of a film or publica15 tion.

16 ‘‘(B) GROUP.—The term ‘group’ includes

17 any State or local government, State or local

18 public agency, Indian tribe, or nonprofit associa19 tion, organization, institution, or society.

20 ‘‘(C) NATIONAL OF THE UNITED STATES.—

21 The term ‘national of the United States’ means

22 a citizen of the United States or a person who

23 owes permanent allegiance to the United States.

24 ‘‘(2) CRITERIA.—The Chairperson, with the ad25 vice of the National Council on the Humanities, shall
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1 establish criteria for eligibility for grants made under

2 this title. The criteria shall provide the following:

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

4 receive a grant under this title if—

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

6 group inures to the benefit of any private

7 stockholder, or individual; and

8 ‘‘(ii) a donation to such group is al9 lowable as a charitable contribution under

10 section 170(c) of the Internal Revenue Code

11 of 1986.

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

13 entity that is a nonprofit group shall be eligible

14 to receive a grant under this title if the Chair15 person, with the advice of the National Council

16 on the Humanities, determines that providing

17 such a grant will significantly advance the

18 knowledge or understanding of the humanities in

19 the United States.

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

21 eligible to receive a grant under this title if—

22 ‘‘(i) the individual is a citizen or na23 tional of the United States; and

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

25 of the National Council on the Humanities,
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1 determines that providing the grant will

2 significantly advance the knowledge or un3 derstanding of the humanities in the United

4 States.

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

6 under this title for an activity (other than an activity con7 ducted by a school, college, or university) for which a direct

8 or an indirect admission charge is requested if the proceeds,

9 after deducting reasonable costs, are used for purposes other

10 than assisting the grant recipient to develop high standards

11 of scholarly excellence or encourage greater appreciation of

12 the humanities by the citizens of the United States.

13 ‘‘(c) LABOR STANDARDS.—The provisions of section

14 206(d) shall apply to activities financed under this title in

15 the same manner and to the same extent as the provisions

16 apply to activities financed under title II.

17 ‘‘SEC. 307. ADMINISTRATIVE PROVISIONS.

18 ‘‘(a) AUTHORITIES OF CHAIRPERSON.—In addition to

19 any authorities vested in the Chairperson by other provi20 sions of this Act, the Chairperson, in carrying out the func21 tions of the Chairperson, shall have authority—

22 ‘‘(1) to prescribe such regulations and procedures

23 as the Chairperson determines to be necessary, govern24 ing the manner in which the functions of the Chair25 person shall be carried out;
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•S 1020 RS

1 ‘‘(2) to appoint and determine the compensation

2 of such employees, subject to title 5, United States

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

4 of the Chairperson, to define the duties of such em5 ployees, and to supervise and direct the activities of

6 such employees;

7 ‘‘(3) to procure the temporary and intermittent

8 services of experts and consultants, including panels

9 of experts, and compensate the experts and consult10 ants in accordance with section 3109 of title 5, Unit11 ed States Code;

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

13 of individuals and reimburse the individuals for trav14 el expenses, including per diem in lieu of subsistence,

15 in the same amounts and to the same extent as au16 thorized under section 5703 of title 5, United States

17 Code, for persons employed intermittently in Federal

18 Government service;

19 ‘‘(5) to make advance, progress, and other pay20 ments without regard to section 3324 of title 31,

21 United States Code;

22 ‘‘(6) to rent office space in the District of Colum23 bia; and

24 ‘‘(7) to make other necessary expenditures.
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1 ‘‘(b) PUBLICATIONS.—Official publications of the En2 dowment under this title may be supported without regard

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

4 Code, if the Chairperson consults with the Joint Committee

5 on Printing of the Congress.

6 ‘‘(c) COORDINATION.—The Chairperson shall coordi7 nate the programs of the Endowment, insofar as prac8 ticable, with other Federal programs, programs of des9 ignated State humanities agencies, and programs under10 taken by other public agencies or private groups, and shall

11 develop the programs of the Endowment with due regard

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

13 be made by other Federal agencies under the existing pro14 grams. The Chairperson may enter into interagency agree15 ments to promote or assist with the humanities-related ac16 tivities of other Federal agencies, on a reimbursable or non17 reimbursable basis, and may use funds authorized to be ap18 propriated to carry out this title to pay for the costs of

19 such promotion or assistance.

20 ‘‘SEC. 308. REPORTS.

21 ‘‘(a) ANNUAL REPORT OF CHAIRPERSON.—The Chair22 person shall submit an annual report to the President for

23 submission to the appropriate committees of Congress on

24 or before the 15th day of April of each year. The report

25 shall summarize the activities of the Endowment for the
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1 preceding year, and may include such evaluations and

2 other reports as the Chairperson determines to be appro3 priate.

4 ‘‘(b) FINANCIAL REPORTS AND COMPLIANCE.—

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

6 receipt of a grant made under this title by the Chair7 person that each such grant recipient agree to and

8 comply with requirements to submit to the Chair9 person—

10 ‘‘(A) financial reports containing such in11 formation as the Chairperson determines to be

12 necessary to ensure that the funding provided

13 through the grant is expended in accordance

14 with the terms and conditions under which the

15 grant is made;

16 ‘‘(B) a report describing the activity carried

17 out with the funding provided through the grant

18 and the compliance by the grant recipient with

19 the conditions of receipt of such grant, including

20 the condition that the work assisted meets the

21 standards of excellence in humanities and sig22 nificance in the humanities; and

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

24 Chairperson, a copy of the work resulting from

25 the activity.
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1 ‘‘(2) REPORTS.—The reports and copy described

2 in paragraph (1) shall be due not later than 90 days

3 after the end of the period for which such grant recip4 ient receives funding through the grant or 90 days

5 after the completion of the work, whichever occurs ear6 lier. The Chairperson may extend the 90-day period

7 if the recipient shows good cause why such an exten8 sion should be granted.

9 ‘‘(c) EVALUATION.—The Chairperson shall conduct a

10 post-award evaluation of activities for which grants are

11 made by the Chairperson under this title. Such evaluation

12 may include an audit to determine the accuracy of the re13 ports required to be submitted by grant recipients under

14 subsection (b).

15 ‘‘(d) ANNUAL REPORT OF NATIONAL COUNCIL ON THE

16 HUMANITIES.—

17 ‘‘(1) IN GENERAL.—The National Council on the

18 Humanities may submit an annual report to the

19 President for submission to the appropriate commit20 tees of Congress on or before the 15th day of April of

21 each year.

22 ‘‘(2) CONTENTS.—The report shall include writ23 ten records summarizing—

24 ‘‘(A) all meetings and discussions of the

25 Council; and
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1 ‘‘(B) recommendations made by the Council

2 to the Chairperson.

3 ‘‘(3) PRIVACY.—The Council shall ensure that

4 the information contained in the report will be pre5 sented in a manner that protects the privacy of indi6 vidual applicants for grants authorized under this

7 title and Council members.

8 ‘‘SEC. 309. SANCTIONS AND PAYMENTS.

9 ‘‘(a) FAILURE TO SATISFY PURPOSES.—If any recipi10 ent of a grant made under this title, or an indirect recipient

11 of funding provided through the grant, substantially fails

12 to satisfy the purposes for which such grant is made, as

13 determined by the Chairperson, the Chairperson may—

14 ‘‘(1) for purposes of determining whether to make

15 any subsequent funding to the direct or indirect re16 cipient under this title, take into consideration the

17 results of the post-award evaluation conducted under

18 section 308(c);

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

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

21 the project, production, or workshop for which the

22 grant was received with, the Endowment; and

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

24 published, require that the publication contain the fol25 lowing statement: ‘The opinions, findings, conclu-
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1 sions, and recommendations expressed in this publica2 tion do not reflect the views of the National Endow3 ment for the Humanities.’.

4 ‘‘(b) NONCOMPLIANCE.—

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

6 the actions described in paragraph (2) whenever the

7 Chairperson, after providing reasonable notice and an

8 opportunity for hearing, finds that—

9 ‘‘(A) a direct recipient of a grant under this

10 title, or an indirect recipient of funding provided

11 through the grant, is not complying substantially

12 with the provisions of this title;

13 ‘‘(B) a State agency or entity that received

14 a grant under this title, or an indirect recipient

15 of funding provided through the grant, is not

16 complying substantially with terms and condi17 tions of the State plan accompanying the appli18 cation approved for the grant under this title; or

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

20 to a recipient or State agency or entity described

21 in subparagraph (A) or (B) has been diverted

22 from the purposes for which such funding was

23 provided.

24 ‘‘(2) ACTIONS.—On making the finding described

25 in paragraph (1), the Chairperson shall immediately
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1 notify the direct recipient, or State agency or entity,

2 that received the funding at issue that—

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

4 under this title to such recipient or State agency

5 or entity until there is no longer any default or

6 failure to comply or the diversion is corrected; or

7 ‘‘(B) if compliance or correction is impos8 sible, until such recipient or State agency or en9 tity repays or arranges the repayment of the

10 Federal funds that were improperly diverted or

11 expended.

12 ‘‘(c) RECAPTURE.—

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

14 this title shall pay the amount described in para15 graph (2) to the Endowment if the Chairperson finds

16 that the recipient has derived net program income in

17 excess of the match required under the terms of the

18 agreement from the creation of an original, commer19 cially successful activity funded that exceeds the lesser

20 of—

21 ‘‘(A) $50,000; or

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

23 ‘‘(2) AMOUNT.—At the discretion of the Chair24 person, the amount referred to in paragraph (1) is

not less than 1⁄3 and not more than 1 25 ⁄2 of the amount
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1 of the net program income generated within 5 years

2 after the end of the grant period, but not more than

3 the amount of the funding, unless the Chairperson has

4 reached an agreement with the grantee upon the

5 award of a grant that the amount referred to in para6 graph (1) shall exceed the amount of the grant.

7 ‘‘(d) ACCOUNT.—Except as otherwise provided in this

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

9 paid under subsection (c), or repaid under this Act, in a

10 special interest bearing account to the credit of the Endow11 ment.

12 ‘‘SEC. 310. AWARDS.

13 ‘‘(a) JEFFERSON LECTURE IN THE HUMANITIES

14 AWARD.—The Chairperson may award annually the Jeffer15 son Lecture in the Humanities Award to 1 individual for

16 distinguished intellectual achievement in the humanities.

17 Each such award shall not exceed $10,000.

18 ‘‘(b) NATIONAL HUMANITIES MEDAL.—

19 ‘‘(1) IN GENERAL.—The President may award

20 the National Humanities Medal to individuals or

21 groups whose work—

22 ‘‘(A) has expanded the understanding of

23 citizens of the United States in the area of hu24 manities;
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1 ‘‘(B) has broadened such citizens engage2 ment with the humanities; or

3 ‘‘(C) has helped preserve and expand the ac4 cess of such citizens to important resources in the

5 humanities.

6 ‘‘(2) NUMBER OF MEDALS.—Not more than 12 of

7 such medals may be awarded in any calendar year.

8 ‘‘(3) CEREMONIES.—The presentation of the Na9 tional Humanities Medal shall be made by the Presi10 dent with such ceremonies as the President may deter11 mine to be appropriate, including attendance by ap12 propriate Members of Congress.’’.

13 SEC. 102. CONFORMING AMENDMENTS.

14 Section 8G of the Inspector General Act of 1978 (5

15 U.S.C. App.) is amended—

16 (1) in subsection (a)—

17 (A) in paragraph (2), by striking ‘‘the Na18 tional Endowment for the Arts, the National En19 dowment for the Humanities,’’ and inserting

20 ‘‘the portion of the National Foundation on the

21 Arts and the Humanities consisting of the Na22 tional Endowment for the Arts and the National

23 Endowment for the Humanities,’’; and

24 (B) in paragraph (4)—
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1 (i) in subparagraph (A), by striking at

2 the end ‘‘and’’;

3 (ii) in subparagraph (B), by inserting

4 after the semicolon ‘‘and’’; and

5 (iii) by adding at the end the follow6 ing:

7 ‘‘(C) with respect to the National Endow8 ment for the Arts and the National Endowment

9 for the Humanities, the term means the Chair10 person of the National Endowment for the Arts

11 with respect to matters relating to the National

12 Endowment for the Arts and the Chairperson of

13 the National Endowment for the Humanities

14 with respect to matters relating to the Chair15 person of the National Endowment for the Hu16 manities;’’;

17 (2) in subsection (c), by inserting before the pe18 riod the following: ‘‘, except that the Inspector Gen19 eral for the National Endowment for the Arts and the

20 National Endowment for the Humanities shall be

21 jointly appointed by the Chairperson of the National

22 Endowment for the Arts and the Chairperson of the

23 National Endowment for the Humanities’’; and

24 (3) in the first sentence of subsection (d), by in25 serting before the period the following: ‘‘, except as
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1 provided in section 103 of the National Foundation

2 on the Arts and the Humanities Act of 1965’’.

3 TITLE II—ARTS AND ARTIFACTS

4 INDEMNITY ACT

5 SEC. 201. ARTS AND ARTIFACTS.

6 The Arts and Artifacts Indemnity Act (20 U.S.C. 971

7 et seq.) is amended to read as follows:

8 ‘‘SECTION 1. SHORT TITLE.

9 ‘‘This Act may be cited as the ‘Arts and Artifacts In10 demnity Act’.

11 ‘‘SEC. 2. INDEMNITY FOR EXHIBITIONS OF ARTS AND ARTI12 FACTS.

13 ‘‘The Federal Council on the Arts and Humanities (re14 ferred to in this Act as the ‘Council’) established under sec15 tion 8, may enter into agreements to indemnify against loss

16 or damage such items as may be eligible for such indemnity

17 agreements under section 3—

18 ‘‘(1) in accordance with the provisions of this

19 Act; and

20 ‘‘(2) on such terms and conditions as the Council

21 shall prescribe, by regulation, in order to achieve the

22 objectives of this Act and, consistent with such objec23 tives, to protect the financial interest of the United

24 States.
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1 ‘‘SEC. 3. ELIGIBLE ITEMS.

2 ‘‘(a) TYPES OF ITEMS.—The Council may enter into

3 an indemnity agreement under section 2 with respect to

4 items—

5 ‘‘(1) that are—

6 ‘‘(A) works of art, including tapestries,

7 paintings, sculpture, folk art, and graphics and

8 craft arts;

9 ‘‘(B) manuscripts, rare documents, books, or

10 other printed or published materials;

11 ‘‘(C) other artifacts or objects; or

12 ‘‘(D) photographs, motion pictures, or audio

13 and video tape;

14 ‘‘(2) that are of educational, cultural, historical,

15 or scientific value; and

16 ‘‘(3) the exhibition of which is certified (where

17 appropriate) by the Secretary of State or the designee

18 of the Secretary of State as being in the national in19 terest.

20 ‘‘(b) ITEMS ON EXHIBITION.—

21 ‘‘(1) SCOPE.—An indemnity agreement made

22 under this Act shall cover eligible items while on exhi23 bition, generally when the items are part of an ex24 change of exhibitions. An item described in subsection

25 (a) that is part of an exhibition that originates either

26 in the United States or outside the United States and
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1 that is touring the United States shall be considered

2 to be an eligible item.

3 ‘‘(2) DEFINITION.—For purposes of this sub4 section, the term ‘on exhibition’ includes the period of

5 time beginning on the date the eligible items leave the

6 premises of the lender or place designated by the lend7 er and ending on the date such items are returned to

8 the premises of the lender or place designated by the

9 lender.

10 ‘‘SEC. 4. APPLICATIONS.

11 ‘‘(a) IN GENERAL.—Any person, nonprofit agency, in12 stitution, or government desiring to enter into an indem13 nity agreement for eligible items under this Act shall submit

14 an application to the Council at such time, in such manner

15 and in accordance with such procedures, as the Council

16 shall, by regulation, prescribe.

17 ‘‘(b) CONTENTS.—An application submitted under

18 subsection (a) shall—

19 ‘‘(1) describe each item to be covered by the

20 agreement (including an estimated value of such

21 item);

22 ‘‘(2) show evidence that the item is an item de23 scribed in section 3(a); and

24 ‘‘(3) set forth policies, procedures, techniques,

25 and methods with respect to preparation for, and con-
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1 duct of, exhibition of the item, and any transpor2 tation related to such item.

3 ‘‘(c) APPROVAL.—On receipt of an application under

4 this section, the Council shall review the application as de5 scribed in section 5 and, if the Council agrees with the esti6 mated value described in the application and if such appli7 cation conforms with the requirements of this Act, approve

8 the application and enter into an indemnity agreement

9 with the applicant under section 2. On such approval, the

10 agreement shall constitute a contract between the Council

11 and the applicant pledging the full faith and credit of the

12 United States to pay any amount for which the Council

13 becomes liable under such agreement. The Council, for such

14 purpose, is authorized to pledge the full faith and credit

15 of the United States.

16 ‘‘SEC. 5. INDEMNITY AGREEMENT.

17 ‘‘(a) REVIEW.—On receipt of an application meeting

18 the requirements of subsections (a) and (b) of section 4, the

19 Council shall review the estimated value of the items for

20 which coverage by an indemnity agreement is sought. If the

21 Council agrees with such estimated value, for the purposes

22 of this Act, the Council shall, after approval of the applica23 tion as provided for in subsection (c) of section 4, make

24 an indemnity agreement.
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1 ‘‘(b) AGGREGATE AMOUNT OF LOSS OR DAMAGE.—The

2 aggregate amount of loss or damage covered by indemnity

3 agreements made under this Act shall not exceed

4 $3,000,000,000, at any one time.

5 ‘‘(c) INDIVIDUAL AMOUNT OF LOSS OR DAMAGE.—No

6 indemnity agreement for a single exhibition shall cover loss

7 or damage in excess of $300,000,000.

8 ‘‘(d) EXTENT OF COVERAGE.—If the estimated value

9 of the items covered by an indemnity agreement for a single

10 exhibition is—

11 ‘‘(1) $2,000,000 or less, then coverage under this

12 Act shall extend only to loss or damage in excess of

13 the first $15,000 of loss or damage to the items cov14 ered;

15 ‘‘(2) more than $2,000,000 but less than

16 $10,000,000, then coverage under this Act shall extend

17 only to loss or damage in excess of the first $25,000

18 of loss or damage to the items covered;

19 ‘‘(3) not less than $10,000,000 but less than

20 $125,000,000, then coverage under this Act shall ex21 tend only to loss or damage in excess of the first

22 $50,000 of loss or damage to the items covered;

23 ‘‘(4) not less than $125,000,000 but less than

24 $200,000,000, then coverage under this Act shall ex-
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1 tend only to loss or damage in excess of the first

2 $100,000 of loss or damage to the items covered; or

3 ‘‘(5) $200,000,000 or more, then coverage under

4 this Act shall extend only to loss or damage in excess

5 of the first $200,000 of loss or damage to the items

6 covered.

7 ‘‘SEC. 6. REGULATIONS AND CERTIFICATION.

8 ‘‘(a) REGULATIONS.—The Council shall prescribe regu9 lations providing for prompt adjustment of valid claims for

10 loss or damage to items that are covered by an agreement

11 entered into pursuant to section 2, including provision for

12 arbitration of issues relating to the dollar value of damages

13 involving less than total loss or destruction of such covered

14 items.

15 ‘‘(b) CERTIFICATION.—In the case of a claim of loss

16 or damage with respect to an item that is covered by an

17 agreement entered into pursuant to section 2, the Council

18 shall certify the validity of the claim and the amount of

19 the loss to the Speaker of the House of Representatives and

20 the President pro tempore of the Senate.

21 ‘‘SEC. 7. REPORT.

22 ‘‘The Council shall prepare, and submit at the end of

23 each fiscal year to the appropriate committees of Congress,

24 a report containing information on—
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1 ‘‘(1) all claims paid pursuant to this Act during

2 such year;

3 ‘‘(2) pending claims against the Council under

4 this Act as of the end of such year; and

5 ‘‘(3) the aggregate face value of contracts entered

6 into by the Council that are outstanding at the end

7 of such year.

8 ‘‘SEC. 8. ESTABLISHMENT OF THE FEDERAL COUNCIL ON

9 THE ARTS AND THE HUMANITIES.

10 ‘‘(a) ESTABLISHMENT.—

11 ‘‘(1) IN GENERAL.—There is established a Fed12 eral Council on the Arts and the Humanities.

13 ‘‘(2) STATUS AS AN AGENCY.—For the purposes

14 of this Act, the Council shall be an agency within the

15 meaning of the appropriate definitions of such term

16 in title 5, United States Code.

17 ‘‘(b) MEMBERSHIP.—

18 ‘‘(1) IN GENERAL.—The Council shall be com19 posed of the Chairperson of the National Endowment

20 for the Arts, the Chairperson of the National Endow21 ment for the Humanities, the Director of the Institute

22 of Museum and Library Services, the Secretary of

23 Education, the Secretary of the Smithsonian Institu24 tion, the Director of the National Science Foundation,

25 the Librarian of Congress, the Director of the Na-
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1 tional Gallery of Art, the Chairman of the Commis2 sion of Fine Arts, the Archivist of the United States,

3 the Commissioner, Public Buildings Service, General

4 Services Administration, the Assistant Secretary for

5 Aging, a member designated by the Secretary of State,

6 and a member designated by the Secretary of the In7 terior, a member designated by the Chairman of the

8 Senate Commission on Art and Antiquities, and a

9 member designated by the Speaker of the House of

10 Representatives.

11 ‘‘(2) DESIGNATION OF PRESIDING OFFICER.—

12 The President shall designate the presiding officer of

13 the Council from among the members.

14 ‘‘(3) AUTHORITY TO CHANGE THE MEMBER15 SHIP.—The President is authorized to change the

16 membership of the Council as the President deems

17 necessary to meet changes in Federal programs or ex18 ecutive branch organization.

19 ‘‘(c) FUNCTIONS.—

20 ‘‘(1) IN GENERAL.—Except as provided in para21 graph (2), the Council shall—

22 ‘‘(A) carry out the functions of the Council

23 described in sections 1 through 7;

24 ‘‘(B) promote coordination between the pro25 grams and activities of the National Foundation
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1 on the Arts and Humanities and related pro2 grams and activities of other Federal agencies;

3 and

4 ‘‘(C) encourage an ongoing dialogue in sup5 port of the arts and the humanities among Fed6 eral agencies.

7 ‘‘(2) RESTRICTIONS.—The following members of

8 the Council shall not carry out the functions described

9 in paragraph (1)(A):

10 ‘‘(A) The Secretary of the Smithsonian In11 stitution.

12 ‘‘(B) The Director of the National Gallery

13 of Art.

14 ‘‘(C) The member of the Council designated

15 by the Chairman of the Senate Commission on

16 Art and Antiquities.

17 ‘‘(D) The member of the Council designated

18 by the Speaker of the House of Representatives.

19 ‘‘(3) LIMITATION ON USE OF EMPLOYEES.—No

20 employee (other than a member of the Council) of the

21 Council may carry out the activities described in sub22 paragraphs (B) and (C) of paragraph (1).

23 ‘‘SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

24 ‘‘There are authorized to be appropriated such sums

25 as may be necessary—
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1 ‘‘(1) to enable the Council to carry out the func2 tions (except the functions described in subparagraphs

3 (B) and (C) of section 8(c)(1)) of the Council under

4 this Act; and

5 ‘‘(2) to pay claims certified pursuant to section

6 6(b).’’.