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village, regional corporation, or village corporation 
(as defined in, or established pursuant to, the Alas-
ka Native Claims Settlement Act (43 U.S.C. 1601 et 
seq.)), which is recognized by the Secretary of the 
Interior as eligible for the special programs and 
services provided by the United States to Indians be-
cause of their status as Indians.’’; and 
(5) by adding after paragraph (5) (as so redes-
ignated) the following: 
‘‘(6) 
MUSEUM
AND
LIBRARY
SERVICES 
BOARD.—The term ‘Museum and Library Services 
Board’ means the National Museum and Library 
Services Board established under section 207. 
‘‘(7) OBSCENE.—The term ‘obscene’ means, 
with respect to a project, that—
‘‘(A) the average person, applying contem-
porary community standards, would find that 
such project, when taken as a whole, appeals to 
the prurient interest; 
‘‘(B) such project depicts or describes sex-
ual conduct in a patently offensive way; and 
‘‘(C) such project, when taken as a whole, 
lacks serious literary, artistic, political, or sci-
entific value.’’.
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SEC. 102. INSTITUTE OF MUSEUM AND LIBRARY SERVICES. 
Section 203 of the Museum and Library Services Act 
(20 U.S.C. 9102) is amended—
(1) in subsection (b), by striking the last sen-
tence; and 
(2) by adding at the end the following: 
‘‘(c) MUSEUM AND LIBRARY SERVICES BOARD.—
There shall be a National Museum and Library Services 
Board within the Institute, as provided under section 
207.’’. 
SEC. 103. DIRECTOR OF THE INSTITUTE. 
(a) COORDINATION OF ACTIVITIES.—Section 204(e) 
of the Museum and Library Services Act (20 U.S.C. 
9103(e)) is amended by adding at the end the following: 
‘‘Where appropriate, the Director shall ensure that activi-
ties under subtitle B are coordinated with activities under 
section 1251 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6383).’’. 
(b) REGULATORY AUTHORITY.—Section 204 of such 
Act (20 U.S.C. 9103) is amended by adding at the end 
the following: 
‘‘(f) REGULATORY AUTHORITY.—The Director may 
promulgate such rules and regulations as are necessary 
and appropriate to implement the provisions of this title. 
‘‘(g) APPLICATION PROCEDURES.—
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‘‘(1) IN GENERAL.—In order to be eligible to 
receive financial assistance under this title, a person 
or agency shall submit an application in accordance 
with procedures established by the Director by regu-
lation. 
‘‘(2) REVIEW AND EVALUATION.—The Director 
shall establish procedures for reviewing and evalu-
ating such applications. Such procedures shall not be 
subject to any review outside of the Institute. In es-
tablishing such procedures, the Director shall ensure 
that the criteria by which applications are evaluated 
are consistent with the purposes of this title, taking 
into consideration general standards of decency and 
respect for the diverse beliefs and values of the 
American public. 
‘‘(3) TREATMENT OF PROJECTS DETERMINED 
TO BE OBSCENE.—
‘‘(A) IN
GENERAL.—The procedures de-
scribed in paragraph (2) shall include provisions 
that clearly specify that obscenity is without lit-
erary, artistic, political, or scientific merit, and 
is not protected speech. 
‘‘(B) PROHIBITION.—No financial assist-
ance may be provided under this title with re-
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spect to any project that is determined to be 
obscene. 
‘‘(C) TREATMENT
OF
APPLICATION
DIS-
APPROVAL.—The disapproval of an application
by the Director shall not be construed to mean, 
and shall not be considered as evidence that, 
the project for which the applicant requested fi-
nancial assistance is or is not obscene.’’. 
SEC. 104. NATIONAL MUSEUM AND LIBRARY SERVICES 
BOARD. 
The Museum and Library Services Act (20 U.S.C. 
9101 et seq.) is amended—
(1) by redesignating section 207 as section 208; 
and 
(2) by inserting after section 206 the following: 
‘‘SEC. 207. NATIONAL MUSEUM AND LIBRARY SERVICES 
BOARD. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Institute a board to be known as the ‘National Museum 
and Library Services Board’. 
‘‘(b) MEMBERSHIP.—
‘‘(1) NUMBER AND APPOINTMENT.—The Mu-
seum and Library Services Board shall be composed 
of the following: 
‘‘(A) The Director.
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‘‘(B) The Deputy Director for the Office of 
Library Services. 
‘‘(C) The Deputy Director for the Office of 
Museum Services.
‘‘(D) 10 members appointed by the Presi-
dent, by and with the advice and consent of the 
Senate, from among individuals who are citi-
zens of the United States and who are specially 
qualified in the area of library services by virtue 
of their education, training, or experience. 
‘‘(E) 10 members appointed by the Presi-
dent, by and with the advice and consent of the 
Senate, from among individuals who are citi-
zens of the United States and who are specially 
qualified in the area of museum services by vir-
tue of their education, training, or experience. 
‘‘(2) SPECIAL QUALIFICATIONS.—
‘‘(A) LIBRARY
MEMBERS.—Of the mem-
bers of the Museum and Library Services 
Board appointed under paragraph (1)(D)—
‘‘(i) 5 shall be professional librarians 
or information specialists, of whom—
‘‘(I) at least 1 shall be knowl-
edgeable about electronic information
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and technical aspects of library and 
information services and sciences; and 
‘‘(II) and at least 1 other shall be 
knowledgeable about the library and 
information service needs of under-
served communities; and 
‘‘(ii) the remainder shall have special 
competence in, or knowledge of, the needs 
for library and information services in the 
United States. 
‘‘(B) MUSEUM
MEMBERS.—Of the mem-
bers of the Museum and Library Services 
Board appointed under paragraph (1)(E)—
‘‘(i) 5 shall be museum professionals 
who are or have been affiliated with—
‘‘(I) resources that, collectively, 
are broadly representative of the cura-
torial, conservation, educational, and 
cultural resources of the United 
States; or 
‘‘(II) museums that, collectively, 
are broadly representative of various 
types of museums, including museums 
relating to science, history, tech-
nology, art, zoos, botanical gardens,
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and museums designed for children; 
and 
‘‘(ii) the remainder shall be individ-
uals recognized for their broad knowledge, 
expertise, or experience in museums or 
commitment to museums. 
‘‘(3) GEOGRAPHIC
AND
OTHER
REPRESENTA-
TION.—Members of the Museum and Library Serv-
ices Board shall be appointed to reflect persons from 
various geographic regions of the United States. The 
Museum and Library Services Board may not in-
clude, at any time, more than 3 appointive members 
from a single State. In making such appointments, 
the President shall give due regard to equitable rep-
resentation of women, minorities, and persons with 
disabilities who are involved with museums and li-
braries. 
‘‘(4) VOTING.—The Director, the Deputy Direc-
tor of the Office of Library Services, and the Deputy 
Director of the Office of Museum Services shall be 
nonvoting members of the Museum and Library 
Services Board. 
‘‘(c) TERMS.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, each member of the Mu-
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seum and Library Services Board appointed under 
subparagraph (D) or (E) of subsection (b)(1) shall 
serve for a term of 5 years. 
‘‘(2) INITIAL BOARD APPOINTMENTS.—
‘‘(A) TREATMENT OF MEMBERS SERVING 
ON
EFFECTIVE
DATE.—Notwithstanding sub-
section (b), each individual who is a member of 
the National Museum Services Board on the 
date of the enactment of the Museum and Li-
brary Services Act of 2003, may, at the individ-
ual’s election, complete the balance of the indi-
vidual’s term as a member of the Museum and 
Library Services Board. 
‘‘(B) 
FIRST
APPOINTMENTS.—Notwith-
standing subsection (b), any appointive vacancy 
in the initial membership of the Museum and 
Library Services Board existing after the appli-
cation of subparagraph (A), and any vacancy in 
such membership subsequently created by rea-
son of the expiration of the term of an indi-
vidual described in subparagraph (A), shall be 
filled by the appointment of a member de-
scribed in subsection (b)(1)(D). When the Mu-
seum and Library Services Board consists of an 
equal number of individuals who are specially
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qualified in the area of library services and in-
dividuals who are specially qualified in the area 
of museum services, this subparagraph shall 
cease to be effective and the board shall be ap-
pointed in accordance with subsection (b). 
‘‘(C) AUTHORITY TO ADJUST TERMS.—The 
terms of the first members appointed to the 
Museum and Library Service Board shall be ad-
justed by the President as necessary to ensure 
that the terms of not more than 4 members ex-
pire in the same year. Such adjustments shall 
be carried out through designation of the ad-
justed term at the time of appointment. 
‘‘(3) VACANCIES.—Any member appointed to 
fill a vacancy shall serve for the remainder of the 
term for which the predecessor of the member was 
appointed. 
‘‘(4) REAPPOINTMENT.—No appointive member 
of the Museum and Library Services Board who has 
been a member for more than 7 consecutive years 
shall be eligible for reappointment. 
‘‘(5) SERVICE
UNTIL
SUCCESSOR
TAKES
OF-
FICE.—Notwithstanding any other provision of this 
subsection, an appointive member of the Museum 
and Library Services Board shall serve after the ex-
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piration of the term of the member until the suc-
cessor to the member takes office. 
‘‘(d) DUTIES AND POWERS.—
‘‘(1) IN GENERAL.—The Museum and Library 
Services Board shall advise the Director on general 
policies with respect to the duties, powers, and au-
thority of the Institute relating to museum and li-
brary services, including financial assistance award-
ed under this title. 
‘‘(2) NATIONAL
AWARDS.—The Museum and 
Library Services Board shall assist the Director in 
making awards under section 209. 
‘‘(e) CHAIRPERSON.—The Director shall serve as 
Chairperson of the Museum and Library Services Board. 
‘‘(f) MEETINGS.—
‘‘(1) IN GENERAL.—The Museum and Library 
Services Board shall meet not less than 2 times each 
year and at the call of the Director. 
‘‘(2) VOTE.—All decisions by the Museum and 
Library Services Board with respect to the exercise 
of its duties and powers shall be made by a majority 
vote of the members of the Board who are present 
and authorized to vote. 
‘‘(g) QUORUM.—A majority of the voting members of 
the Museum and Library Services Board shall constitute
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‘‘(i) COORDINATION.—The Director, with the advice 
of the Museum and Library Services Board, shall take 
steps to ensure that the policies and activities of the Insti-
tute are coordinated with other activities of the Federal 
Government.’’. 
SEC. 105. AWARDS; ANALYSIS OF IMPACT OF SERVICES. 
The Museum and Library Services Act (20 U.S.C. 
9101 et seq.) is amended by inserting after section 208 
(as redesignated by section 104 of this Act) the following: 
‘‘SEC. 209. AWARDS. 
‘‘The Director, with the advice of the Museum and 
Library Services Board, may annually award National 
Awards for Library Service and National Awards for Mu-
seum Service to outstanding libraries and outstanding mu-
seums, respectively, that have made significant contribu-
tions in service to their communities. 
‘‘SEC. 210. ANALYSIS OF IMPACT OF MUSEUM AND LIBRARY 
SERVICES. 
‘‘From amounts described in sections 214(c) and 
275(b), the Director shall carry out and publish analyses 
of the impact of museum and library services. Such anal-
yses—
‘‘(1) shall be conducted in ongoing consultation 
with—
‘‘(A) State library administrative agencies;
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‘‘(B) State, regional, and national library 
and museum organizations; and 
‘‘(C) other relevant agencies and organiza-
tions;
‘‘(2) shall identify national needs for, and 
trends of, museum and library services provided with 
funds made available under subtitles B and C; 
‘‘(3) shall report on the impact and effective-
ness of programs conducted with funds made avail-
able by the Institute in addressing such needs; and 
‘‘(4) shall identify, and disseminate information 
on, the best practices of such programs to the agen-
cies and entities described in paragraph (1).’’. 
TITLE II—LIBRARY SERVICES 
AND TECHNOLOGY 
SEC. 201. PURPOSE. 
Section 212 of the Library Services and Technology 
Act (20 U.S.C. 9121) is amended by striking paragraphs 
(2) through (5) and inserting the following: 
‘‘(2) to promote improvement in library services 
in all types of libraries in order to better serve the 
people of the United States; 
‘‘(3) to facilitate access to resources in all types 
of libraries for the purpose of cultivating an edu-
cated and informed citizenry; and
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‘‘(4) to encourage resource sharing among all 
types of libraries for the purpose of achieving eco-
nomical and efficient delivery of library services to 
the public.’’. 
SEC. 202. DEFINITIONS. 
Section 213 of the Library Services and Technology 
Act (20 U.S.C. 9122) is amended—
(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2) through 
(6) as paragraphs (1) through (5), respectively. 
SEC. 203. AUTHORIZATION OF APPROPRIATIONS. 
Section 214 of the Library Services and Technology 
Act (20 U.S.C. 9123) is amended—
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out this subtitle $210,000,000 for fis-
cal year 2004 and such sums as may be necessary for fis-
cal years 2005 through 2009.’’; and 
(2) in subsection (c), by striking ‘‘3 percent’’ 
and inserting ‘‘3.5 percent’’. 
SEC. 204. RESERVATIONS AND ALLOTMENTS. 
Section 221(b)(3) of the Library Services and Tech-
nology Act (20 U.S.C. 9131(b)(3)) is amended to read as 
follows:
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‘‘(3) MINIMUM ALLOTMENTS.—
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the minimum allotment for each 
State shall be $340,000, except that the min-
imum allotment shall be $40,000 in the case of 
the United States Virgin Islands, Guam, Amer-
ican Samoa, the Commonwealth of the North-
ern Mariana Islands, the Republic of the Mar-
shall Islands, the Federated States of Micro-
nesia, and the Republic of Palau. 
‘‘(B) RATABLE
REDUCTIONS.—Notwith-
standing subparagraph (A), if the sum appro-
priated under the authority of section 214 and 
not reserved under subsection (a) for any fiscal 
year is insufficient to fully satisfy the require-
ment of subparagraph (A), each of the min-
imum allotments under such subparagraph shall 
be reduced ratably. 
‘‘(C) EXCEPTION.—
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraph (A), if the sum appropriated 
under the authority of section 214 and not 
reserved under subsection (a) for any fiscal 
year exceeds the aggregate of the allot-
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ments for all States under this subsection 
for fiscal year 2003—
‘‘(I) the minimum allotment for 
each State otherwise receiving a min-
imum allotment of $340,000 under 
subparagraph (A) shall be increased 
to $680,000; and 
‘‘(II) the minimum allotment for 
each State otherwise receiving a min-
imum allotment of $40,000 under 
subparagraph (A) shall be increased 
to $60,000. 
‘‘(ii) INSUFFICIENT FUNDS TO AWARD 
ALTERNATIVE MINIMUM.—If the sum ap-
propriated under the authority of section 
214 and not reserved under subsection (a) 
for any fiscal year exceeds the aggregate of 
the allotments for all States under this 
subsection for fiscal year 2003 yet is insuf-
ficient to fully satisfy the requirement of 
clause (i), such excess amount shall first 
be allotted among the States described in 
clause (i)(I) so as to increase equally the 
minimum allotment for each such State 
above $340,000. After the requirement of
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clause (i)(I) is fully satisfied for any fiscal 
year, any remainder of such excess amount
shall be allotted among the States de-
scribed in clause (i)(II) so as to increase 
equally the minimum allotment for each 
such State above $40,000. 
‘‘(D) SPECIAL RULE.—
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of this subsection and 
using funds allotted for the Republic of the 
Marshall Islands, the Federated States of 
Micronesia, and the Republic of Palau 
under this subsection, the Director shall 
award grants to the United States Virgin 
Islands, Guam, American Samoa, the Com-
monwealth of the Northern Mariana Is-
lands, the Republic of the Marshall Is-
lands, the Federated States of Micronesia, 
or the Republic of Palau to carry out ac-
tivities described in this subtitle in accord-
ance with the provisions of this subtitle 
that the Director determines are not incon-
sistent with this subparagraph. 
‘‘(ii) AWARD
BASIS.—The Director 
shall award grants pursuant to clause (i)