(B) the source and purpose of any dona-
tion for which a purpose is specified when do-
nated to the Council; 
(5) the duties and responsibilities of the Coun-
cil, its Board, officers, employees, and agents; and 
(6) the establishment of advisory committees, 
councils, or other bodies, as the efficient administra-
tion of the business and purposes of the Council may 
require. 
SEC. 6. BOARD OF DIRECTORS. 
(a) VESTED POWERS.—The powers of the Council 
shall be vested in a Board of Directors unless otherwise 
specified in this Act or delegated by the Board. 
(b) APPOINTMENTS.—The Board of Directors shall 
consist of 12 voting members as follows: 
(1) Four individuals, including private citizens 
or State or local employees, no more than 2 of whom 
shall be of the same political party, appointed by the 
President. The President shall appoint members of 
the opposing party only on the recommendation of 
the leaders of Congress from that party. The Presi-
dent shall make all 4 of the initial appointments 
under this paragraph on the same date.
(2) Two individuals, including private citizens 
or State or local employees, appointed by the Major-
ity Leader of the Senate. 
(3) Two individuals, including private citizens 
or State or local employees, appointed by the Minor-
ity Leader of the Senate. 
(4) Two individuals, including private citizens 
or State or local employees, appointed by the Speak-
er of the House of Representatives. 
(5) Two individuals, including private citizens 
or State or local employees, appointed by the Minor-
ity Leader of the House of Representatives. 
(c) TERM OF OFFICE: COMMENCEMENT AND TERMI-
NATION, INTERIM
AND REMAINDER SERVICE, LIMITA-
TION.—
(1) TERM
OF
OFFICE.—Directors appointed 
under subsection (b) of this section shall be ap-
pointed to 4-year terms, with no Director serving 
more than 2 consecutive terms, except that—
(A) as designated by the President, the 
terms of 2 of the 4 Directors initially appointed 
under subsection (b)(1) shall be 2 years, subject 
to appointment to no more than 2 additional 4-
year terms in the manner set forth in this sec-
tion;
(B) as designated by the Speaker of the 
House of Representatives, the terms of the 2 
Directors initially appointed under subsection 
(b)(4) shall be 2 years, subject to appointment 
to no more than 2 additional 4-year terms in 
the manner set forth in this section; and 
(C) as designated by the Minority Leader 
of the House of Representatives, the terms of 
the 2 Directors initially appointed under sub-
section (b)(5) shall be 2 years, subject to ap-
pointment to no more than 2 additional 4-year 
terms in the manner set forth in this section. 
(2) REMAINDER
SERVICE.—Any Director ap-
pointed to the Board to replace a Director whose 
term has not expired shall be appointed to serve the 
remainder of that term. 
(3) PRESIDENT OF COUNCIL.—The President of 
the Council shall serve as a nonvoting Director of 
the Board. 
(d) QUALIFICATIONS.—
(1) IN GENERAL.—A demonstrated interest in 
the mission of the Council or expertise in consensus 
building shall be considered in appointments made 
under this section.
(2) NON-FEDERAL
EMPLOYEES.—No Director 
may be an officer or employee of the Federal Gov-
ernment, including a Member of Congress. 
(e) REMOVAL FROM OFFICE.—A Director may be re-
placed by the appointing official or may be removed by 
a process to be established in the Council’s bylaws. 
(f) MEETINGS; NOTICE IN FEDERAL REGISTER.—
Meetings of the Board shall be conducted pursuant to the 
Council’s bylaws, except as provided in the following: 
(1) INITIAL ORGANIZATIONAL MEETING.—
(A) IN GENERAL.—The Board shall hold 
an initial organizational meeting within 60 days 
after the appointment of at least 1⁄3 of the 
members under this section. The initial organi-
zational meeting may be held only if equal num-
bers of members from each of the 2 major polit-
ical parties are appointed to the Board as of 
the date of that meeting. The purpose of the 
meeting shall be to provide for the incorpora-
tion of the Council as a non-profit corporation 
in the District of Columbia as provided under 
section 4 and to adopt the interim bylaws and 
guidelines required under this section for its op-
eration.
(B) REQUIRED RATIFICATION OF ACTIONS 
OF
ORGANIZATIONAL
MEETING.—The Articles 
of Incorporation and the interim bylaws and 
guidelines adopted in the initial organizational 
meeting shall be effective only until the first 
meeting of the Board after the appointment of 
all members under this section, at which time 
the articles, bylaws, or guidelines may be rati-
fied or modified by the Board. 
(2) MEETINGS; QUORUM.—The Board shall 
meet at least semiannually. A majority of the Direc-
tors in office shall constitute a quorum for any 
Board meeting. 
(3) OPEN
MEETINGS.—All official governing 
meetings of the Board shall be open to public obser-
vation and shall be preceded by reasonable public 
notice. Notice in the Federal Register shall be 
deemed to be reasonable public notice for purposes 
of the preceding sentence. In exceptional cir-
cumstances, the Board may close those portions of 
a meeting, upon a majority vote of Directors present 
and with the vote taken in public session, which are 
likely to disclose information affecting or relating to 
the status of individual Directors or employees of
the Council or to ongoing litigation to which the 
Council is a party. 
(g) COMPENSATION.—
(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), a Director may be compensated at a rate 
not to exceed the daily equivalent of the rate payable 
for a position at level IV of the Executive Schedule 
under section 5315 of title 5, United States Code, 
for each day during which that Director is engaged 
in the performance of the duties of the Council. 
(2) DIRECTORS WHO MAY BE COMPENSATED.—
A Director may be compensated under paragraph 
(1), if that Director notifies the Board of an election 
to receive compensation. 
(3) EFFECTIVE
DATE.—A Director shall be 
compensated under this subsection for the perform-
ance of duties after the date of notification under 
paragraph (2). 
(h) TRAVEL EXPENSES.—While away from home or 
regular place of business in the performance of duties for 
the Board, a Director may receive reasonable travel, sub-
sistence, and other necessary expenses. 
SEC. 7. OFFICERS AND EMPLOYEES. 
(a) PRESIDENT OF THE COUNCIL.—There shall be 
a President who shall be appointed by the Board. The
President shall be the chief executive officer of the Council 
and shall carry out or cause to be carried out the functions 
of the Council subject to the supervision and direction of 
the Board. 
(b) COMPENSATION OF PRESIDENT OF THE COUN-
CIL.—The President of the Council shall be compensated 
at an annual rate of pay not to exceed the rate payable 
for a position at level II of the Executive Schedule under 
section 5313 of title 5, United States Code. 
(c) ASSIGNMENT OF FEDERAL OFFICERS OR EM-
PLOYEES TO THE COUNCIL.—The Council may request 
the assignment of any Federal officer or employee to the 
Council by an appropriate executive department, agency, 
or congressional official or Member of Congress and may 
enter into an agreement for such assignment, if the af-
fected officer or employee agrees to such assignment and 
such assignment causes no prejudice to the salary, bene-
fits, status, or advancement within the department, agen-
cy, or congressional staff of such officer or employee. The 
assigning office shall be fully reimbursed by the Council 
for the costs associated with such an assignment. The as-
signed officer or employee shall remain an officer or em-
ployee of the United States during the course of such as-
signment.
(d) PERSONNEL.—The President of the Council, with 
the approval of the Board, may appoint and fix the com-
pensation of such additional personnel as determined nec-
essary. The President and employees of the Council shall 
not be employees of the United States. 
(e) COMPENSATION FOR SERVICES OR EXPENSES; 
PROHIBITION ON LOANS TO COUNCIL DIRECTORS AND 
PERSONNEL.—
(1) IN GENERAL.—No part of the financial re-
sources, income, or assets of the Council or of any 
legal entity created by the Council shall inure to any 
agent, employee, officer, or Director or be distribut-
able to any such person during the life of the cor-
poration or upon dissolution or final liquidation. 
Nothing in this section may be construed to prevent 
the payment of reasonable compensation for services 
or expenses to the Directors, officers, employees, and 
agents of the Council in amounts approved in ac-
cordance with this Act. 
(2) LOANS.—The Council shall not make loans 
to its Directors, officers, employees, or agents. 
SEC. 8. PROCEDURES AND RECORDS. 
(a) MONITORING AND EVALUATION OF PROGRAMS.—
The Council shall monitor and evaluate and provide for 
independent evaluation if necessary of programs supported
in whole or in part under this Act to ensure that the provi-
sions of this Act and the bylaws, rules, regulations, and 
guidelines promulgated under this Act are adhered to. 
(b) ACCOUNTS OF RECEIPTS AND DISBURSEMENTS; 
FINANCIAL REPORTS.—
(1) IN GENERAL.—The Council shall keep com-
plete books and records of accounts, including—
(A) separate and distinct accounts of re-
ceipts and disbursements of Federal funds and 
donations; and 
(B) records of the purpose of any donation 
for which a purpose is specified when donated 
to the Council. 
(2) ANNUAL FINANCIAL REPORTS.—The Coun-
cil’s annual financial report shall identify the use of 
all funding and shall present a clear description of 
the full financial situation of the Council. 
(c) MINUTES OF PROCEEDINGS.—The Council shall 
keep minutes of the proceedings of its Board and of any 
committees having authority under the Board. 
(d) RECORD
AND
INSPECTION
OF
REQUIRED 
ITEMS.—
(1) IN
GENERAL.—The Council shall keep a 
record of—
(A) the names and addresses of its Direc-
tors, copies of this Act, and any other Act relat-
ing to the Council; 
(B) all Council bylaws, rules, regulations, 
and guidelines; 
(C) required minutes of proceedings; 
(D) all applications and proposals and 
issued or received contracts and grants; and 
(E) financial records of the Council. 
(2) INSPECTION.—All items required by this 
subsection may be inspected by any Director or any 
agent or attorney of a Director for any proper pur-
pose at any reasonable time. 
(e) AUDITS.—The accounts of the Council shall be 
audited annually in accordance with generally accepted au-
diting standards by independent certified public account-
ants or independent licensed public accountants, certified 
or licensed by a regulatory authority of a State or other 
political subdivision of the United States. The audit shall 
be conducted at the place or places where the accounts 
of the Council are normally kept. All books, accounts, fi-
nancial records, files, and other papers, things, and prop-
erty belonging to or in use by the Council and necessary 
to facilitate the audit shall be made available to the person 
or persons conducting the audit, and full facilities for
verifying transactions with the balances or securities held 
by depositories, fiscal agents, and custodians shall be af-
forded to such person or persons. 
(f) ANNUAL REPORT TO CONGRESS; COPIES FOR 
PUBLIC.—
(1) IN GENERAL.—The Council shall provide a 
report to the President and to each House of Con-
gress not later than 6 months following the close of 
the fiscal year for which the audit is made. 
(2) CONTENTS.—Each report under this sub-
section shall include—
(A) a statement of the Council’s activities 
for the prior year; 
(B) a copy of the audit report prepared 
under subsection (e); and 
(C) a disclosure statement of—
(i) the source of all funds received by 
the Council in the prior year; and 
(ii) the purpose for which the funds 
were contributed or made available. 
(3) PUBLIC AVAILABILITY.—Each report under 
this subsection shall be made available to the public. 
(g) GAO REVIEW.—The annual report submitted 
under subsection (f) shall be submitted simultaneously to 
the General Accounting Office for its review.
SEC. 9. PROHIBITION ON LOBBYING ACTIVITIES. 
(a) DEFINITIONS.—In this section—
(1) the terms ‘‘covered executive branch offi-
cial’’, ‘‘covered legislative branch official’’, and ‘‘cli-
ent’’ have the meanings given under section 3 of the 
Lobbying Disclosure Act of 1995 (2 U.S.C. 1602); 
(2) the term ‘‘lobbying activities’’ has the 
meaning given under section 3(7) of the Lobbying 
Disclosure Act of 1995 (2 U.S.C. 1602(7)), except 
the definition of the term ‘‘lobbying contact’’ shall 
be applied as modified under this section; and 
(3) the term ‘‘lobbying contact’’—
(A) has the meaning given under para-
graph (8) of section 3 of the Lobbying Disclo-
sure Act of 1995 (2 U.S.C. 1602(8)), except 
that a communication made on behalf of a cli-
ent referred to under subparagraph (A) of that 
paragraph shall apply instead to a communica-
tion made on behalf of the Council; and 
(B) does not include a communication be-
tween the Council and a covered executive 
branch official or covered legislative branch offi-
cial relating to—
(i) appropriations for the Council; or 
(ii) proposed legislation directly af-
fecting the Council.
(b) PROHIBITIONS.—The Council may not—
(1) engage in lobbying activities; or 
(2) be a client. 
SEC. 10. FUNDING. 
(a) AUTHORIZATION OF APPROPRIATIONS.—For the 
purpose of carrying out this Act, there are authorized to 
be appropriated $2,000,000 for fiscal year 2003 and such 
sums as may be necessary for fiscal years 2004 through 
2008. 
(b) AVAILABILITY.—Funds appropriated under the 
authority of subsection (a) shall remain available until ex-
pended. 
(c) AVAILABILITY OF FUNDS FROM FISCAL YEAR 
2003.—Any funds authorized to be made available 
through the General Services Administration during fiscal 
year 2003 for the purpose of carrying out this Act shall 
remain available until expended. 
(d) INVESTMENT OF FUNDS.—Funds appropriated to 
the Council shall be invested only in instruments backed 
by the full faith and credit of the United States or in a 
federally insured financial institution. Any interest earned 
on such investments shall be used only for the purposes 
set out in this Act.
SEC. 11. DISSOLUTION OR LIQUIDATION. 
Upon dissolution or final liquidation of the Council, 
all funds appropriated by the United States to the Council 
including any interest attributable to such funds, but not 
any other funds, shall revert to the United States Treas-
ury. Other funds held by the Council shall be handled 
under the laws of the District of Columbia applicable to 
nonprofit corporations.
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