formation, as the Chairperson may from time to
time require, including a description of the progress
made toward achieving the goals of the State plan;
‘‘(D) provides—
‘‘(i) assurances that the State agency has
held, after reasonable notice, public meetings in
the State to allow all groups of artists, inter-
ested organizations, and the public to present
views and make recommendations regarding the
State plan; and
‘‘(ii) a summary of such recommendations
and the State agency’s response to such rec-
ommendations; and
‘‘(E) contains—
‘‘(i) a description of the level of participa-
tion during the most recent preceding year for
which information is available by artists, art-
ists’ organizations, and arts organizations in
projects, productions, or workshops for which
financial assistance is provided under this sub-
section;
‘‘(ii) for the most recent preceding year for
which information is available, a description of
the extent projects, productions, or workshops
receiving financial assistance from the State
agency are available to all people and commu-
nities in the State; and
‘‘(iii) a description of projects, productions,
or workshops receiving financial assistance
under this subsection that exist or are being de-
veloped to secure wider participation of artists,
artists’ organizations, and arts organizations
identified under clause (i) of this subparagraph
or that address the availability of the arts to all
people or communities identified under clause
(ii) of this subparagraph.
No application may be approved unless the accompanying
plan satisfies the requirements specified in this subsection.
‘‘(3) Of the sums available to carry out this sub-
section for any fiscal year, each State which has a plan
approved by the Chairperson shall be allotted at least
$200,000. If the sums appropriated are insufficient to
make the allotments under the preceding sentence in full,
such sums shall be allotted among such States in equal
amounts. In any case where the sums available to carry
out this subsection for any fiscal year are in excess of the
amount required to make the allotments under the first
sentence of this paragraph—
‘‘(A) the amount of such excess which is no
greater than 25 per centum of the sums available to
carry out this subsection for any fiscal year shall be
available only to the Chairperson for making grants
under this subsection to States and regional groups;
and
‘‘(B) the amount of such excess, if any, which
remains after reserving in full for the Chairperson
the amount required under clause (A) shall be allot-
ted among the States which have plans approved by
the Chairperson in equal amounts but in no event
shall any State be allotted less than $200,000.
‘‘(4)(A) The amount of each allotment to a State for
any fiscal year under this subsection shall be available to
each State, which has a plan approved by the Chairperson
in effect on the first day of such fiscal year, to pay not
more than 50 per centum of the total cost of any project
or production described in paragraph (1). The amount of
any allotment made under paragraph (3) for any fiscal
year which exceeds $125,000 shall be available, at the dis-
cretion of the Chairperson, to pay up to 100 per centum
of such cost of projects, productions, or workshops if such
projects, productions, or workshops would otherwise be
unavailable to the residents of that State: Provided, that
the total amount of any such allotment for any fiscal year
which is exempted from such 50 per centum limitation
shall not exceed 20 per centum of the total of such allot-
ment for such fiscal year.
‘‘(B) Any amount allotted to a State under the first
sentence of paragraph (3) for any fiscal year which is not
obligated by the State prior to 60 days prior to the end
of the fiscal year for which such sums are appropriated
shall be available for making grants to regional groups.
‘‘(C) Funds made available under this subsection
shall not be used to supplant non-Federal funds.
‘‘(D) For purposes of paragraph (3)(B), the term
‘State’ includes, in addition to the several States, only
those special jurisdictions specified in section 201(f) which
have a population of 200,000 or more, according to the
latest decennial census.
‘‘(5) All amounts allotted or made available under
paragraph (3) for a fiscal year which are not granted to
a State during such year shall be available at the end of
such year to the National Endowment for the Arts for the
purpose of carrying out subsection (c) of this section.
‘‘(e) The Chairperson, with the advice of the National
Council on the Arts, is authorized to establish and carry
out a Challenge Program of grants to cultural organiza-
tions and institutions for the purpose of strengthening
their quality by—
‘‘(1) providing administrative and management
improvements for cultural organizations and institu-
tions, particularly in the field of long-range financial
planning including, but not limited to, increasing
levels of community support and the range of con-
tributors to the programs of such cultural organiza-
tions and institutions;
‘‘(2) fostering greater citizen involvement in
planning the cultural development of their commu-
nities and enabling cultural organizations and insti-
tutions to increase audience participation in and ap-
preciation of programs sponsored by the cultural or-
ganizations and institutions;
‘‘(3) providing additional support and stimulat-
ing greater cooperation among State, local and pri-
vate cultural organizations and institutions to pro-
mote effective arts activity and to better serve the
communities in which the cultural organizations and
institutions are located; and
‘‘(4) stimulating artistic activity and awareness
which are in keeping with the varied cultural tradi-
tions of this Nation.
Challenge funds must be matched in a ratio of at least
three non-Federal dollars for every one Federal dollar.
‘‘(f) The Chairperson of the National Endowment for
the Arts, with the advice of the National Council on the
Arts, is authorized to carry out a program of grants to
States for the purposes of—
‘‘(1) enhancing the artistic capabilities of devel-
oping arts organizations through artistic, pro-
grammatic, and staff development;
‘‘(2) providing technical assistance to develop-
ing arts organizations to improve managerial and or-
ganizational skills, financial systems management,
and long-range fiscal planning; and
‘‘(3) stimulating artistic activity and awareness,
and broadening public access to the arts, in rural,
innercity and other areas that are underserved artis-
tically.
Grants under this subsection are subject to the matching
requirements set forth in subsection (c).
‘‘(g) The Chairperson of the National Endowment for
the Arts, with the advice of the National Council on the
Arts, is authorized to establish and carry out a program
of grants to any State or other public agency, individual,
artist, 
any 
nonprofit 
society, 
performing 
and
nonperforming arts and educational institution or organi-
zation, association, or museum in the United States, in
order to foster and encourage exceptional talent, public
knowledge, understanding, and appreciation of the arts,
and to support the education, training, and development
of this Nation’s artists, through projects, productions, and
workshops that will—
‘‘(1) promote and improve the availability of
arts instruction and improve the quality of arts edu-
cation through support of life-long learning in the
arts;
‘‘(2) enhance the quality of arts instruction in
programs of teacher education;
‘‘(3) develop arts faculty resources and talents;
‘‘(4) support and encourage the development of
improved curriculum materials in the arts;
‘‘(5) improve evaluation and assessment of edu-
cation in the arts programs and instruction;
‘‘(6) foster cooperative programs with the De-
partment of Education and other Federal agencies
and encourage partnerships between arts and edu-
cation agencies and organizations at State and local
levels as well as among arts organizations, busi-
nesses, and educational and cultural institutions;
‘‘(7) support apprenticeships, internships, and
other career oriented work-study experiences for art-
ists and arts teachers, and encourage residencies of
artists at all educational levels;
prepare a periodic report on the state of the arts in the
Nation. The state of the arts report shall include a de-
scription of the availability of the Endowment’s programs
to emerging, rural, and culturally diverse artists, arts or-
ganizations, and communities and of the participation by
such artists, organizations, and communities in such pro-
grams. The state of the arts report shall be submitted to
the President and the Congress, and provided to the
States, not later than October l, l996, and quadrennially
thereafter.
‘‘(i) No grant shall be made under this section except
upon application therefor which is submitted to the Na-
tional Endowment for the Arts in accordance with proce-
dures established by the Chairperson. In establishing such
procedures, the Chairperson shall ensure that—
‘‘(1) artistic excellence and artistic merit are
the criteria by which applications are judged by re-
view panels, taking into consideration general stand-
ards of decency and respect for the diverse beliefs
and values of the American public;
‘‘(2) in selecting individuals and groups of ex-
ceptional talent as recipients of financial assistance,
the Chairperson shall give particular regard to artis-
tically underserved areas and artists and artistic
groups 
that 
have 
traditionally 
been
underrepresented;
‘‘(3) applications and awards of financial assist-
ance are consistent with the purposes of this section.
Such procedures shall clearly indicate that obscenity
is without artistic merit, is not protected speech, and
shall not be funded. Projects, productions, and work-
shops that are determined to be obscene are prohib-
ited from receiving financial assistance under this
title from the National Endowment for the Arts.
The disapproval or approval of an application by the
Chairperson shall not be construed to mean, and shall not
be considered as evidence that, the project, production, or
workshop, for which the applicant requested financial as-
sistance, is or is not obscene.
‘‘(j) The Chairperson of the National Endowment for
the Arts shall utilize advisory panels as the first step in
the review of applications, and to make recommendations
to the National Council on the Arts in all cases except
cases in which the Chairperson exercises authority dele-
gated under section 203(f). When reviewing applications,
such panels shall recommend applications for projects,
productions, and workshops solely on the basis of artistic
excellence and artistic merit. The Chairperson shall estab-
lish procedures to—
‘‘(1) ensure that all panels are composed, to the
extent practicable, of individuals reflecting a wide
geographic, ethnic, and minority representation as
well as individuals reflecting diverse artistic and cul-
tural points of view;
‘‘(2) ensure that all panels include representa-
tion of lay individuals who are knowledgeable about
the arts but who are not engaged in the arts as a
profession and are not employees of either artists’
organizations or arts organizations;
‘‘(3) ensure that, when feasible, the procedures
used by panels to carry out their responsibilities are
standardized;
‘‘(4) require panels—
‘‘(A) to create written records summariz-
ing—
‘‘(i) all meetings and discussions of
such panel; and
‘‘(ii) the recommendations made by
such panel to the Council; and
‘‘(B) make such records available to the
public in a manner that protects the privacy of
individual applicants and panel members;
‘‘(5) require, when necessary and feasible, the
use of site visits to view the work of the applicant
and deliver a written report on the work being re-
viewed, in order to assist panelists in making their
recommendations; and
‘‘(6) require that the membership of each panel
change substantially from year to year and to pro-
vide that each individual is ineligible to serve on a
panel for more than 3 consecutive years.
In making appointments to panels, the Chairperson shall
ensure that an individual who has a pending application
for financial assistance under this chapter, or who is an
employee or agent of an organization with a pending appli-
cation, does not serve as a member of any panel before
which such application is pending. The prohibition de-
scribed in the preceding sentence shall commence with re-
spect to such individual beginning on the date such appli-
cation is submitted and shall continue for so long as such
application is pending.
‘‘(k) It shall be a condition of the receipt of financial
assistance provided under this section by the Chairperson
that—
‘‘(1) each applicant for such assistance include
in its application—
‘‘(A) a detailed description of the proposed
project, production, or workshop for which as-
sistance is requested; and
‘‘(B) a timetable for the completion of such
proposed project, production, or workshop.
‘‘(2) each grant recipient shall agree to and
comply with requirements to submit—
‘‘(A) an assurance that the grant recipient
will strive to meet the standard of artistic excel-
lence and artistic merit;
‘‘(B) interim reports, including an annual
report for each project, production or workshop
carried out during a period exceeding one year,
describing the grant recipient’s progress in car-
rying out such project, production, or workshop
and compliance with the conditions of receipt of
such assistance;
‘‘(C) financial reports containing such in-
formation as the Chairperson deems necessary
to ensure that such financial assistance is ex-
pended in accordance with the terms and condi-
tions under which it is provided;
‘‘(D) a final report to the Chairperson de-
scribing the project, production, or workshop
carried out with such financial assistance and
the grant recipient’s compliance with the condi-
tions of receipt of such assistance; and
‘‘(E) if practicable, as determined by the
Chairperson, a copy of such project or produc-
tion.
The Chairperson shall determine the appropriate form and
timing of interim reporting for grant recipients. The final
report shall be due not later than 90 days after the end
of the period for which the grant recipient receives assist-
ance or the completion of the project, production, or work-
shop, whichever occurs earlier. The Chairperson may ex-
tend the 90-day period only if the recipient shows good
cause why such an extension should be granted.
‘‘(l) The Chairperson of the National Endowment for
the Arts shall conduct a post-award evaluation of projects,
productions, and workshops for which financial assistance
is provided by the Endowment under section 202. Such
evaluation may include an audit to determine the accuracy
of the reports required to be submitted by recipients under
subsection (k).
‘‘(m) The Chairperson shall establish procedures to
provide for the distribution of financial assistance to re-
cipients in installments except in those cases where the
Chairperson determines that installments are not prac-
ticable. In implementing any such installments, the Chair-
person shall ensure that—
section) employed on projects or productions which
are financed in whole or in part under this section
will be paid, without subsequent deduction or rebate
on any account, not less than the minimum com-
pensation as determined by the Secretary of Labor
to be the prevailing minimum compensation for per-
sons employed in similar activities; and
‘‘(2) no part of any project or production which
is financed in whole or in part under this section will
be performed or engaged in under working condi-
tions which are unsanitary or hazardous or dan-
gerous to the health and safety of the employees en-
gaged in such project or production. Compliance
with the safety and sanitary laws of the State in
which the performance or part thereof is to take
place shall be prima facie evidence of compliance.
The Secretary of Labor shall have the authority to
prescribe standards, regulations, and procedures as
the Secretary of Labor may deem necessary or ap-
propriate to carry out the provisions of this sub-
section.
‘‘(p) It shall be a condition of the receipt of any grant
under this section that the group or individual of excep-
tional talent or the State or State agency receiving such
grant furnish adequate assurances to the Secretary of
Labor that all laborers and mechanics employed by con-
tractors or subcontractors on construction projects as-
sisted under this section shall be paid wages at rates not
less than those prevailing on similar construction in the
locality as determined by the Secretary of Labor in accord-
ance with the Davis-Bacon Act, as amended (40 U.S.C.
276a-5). The Secretary of Labor shall have with respect
to the labor standards specified in this subsection the au-
thority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z-15)
and section 2 of the Act of June 13, 1934, as amended
(40 U.S.C. 276c).
‘‘(q) The Chairperson shall correlate the programs of
the National Endowment for the Arts, insofar as prac-
ticable, with existing Federal programs and with those un-
dertaken by other public agencies or private groups, and
shall develop the programs of the Endowment with due
regard to the contribution to the objectives of this title
which can be made by other Federal agencies under exist-
ing programs. The Chairperson may enter into inter-
agency agreements to promote or assist with the arts-re-
lated activities of other Federal agencies, on a reimburs-
able or nonreimbursable basis, and may use funds author-
ized to be appropriated for the purposes of this title for
the costs of such activities.
‘‘SEC. 203. NATIONAL COUNCIL ON THE ARTS.
‘‘(a) There shall be, within the National Endowment
for the Arts, a National Council on the Arts (hereinafter
in this section referred to as the ‘Council’).
‘‘(b) The Council shall be composed of the Chair-
person of the National Endowment for the Arts, who shall
be Chairperson of the Council, and twenty-six other mem-
bers appointed by the President, by and with the advice
and consent of the Senate, who shall be selected—
‘‘(1) from among private citizens of the United
States who (A) are widely recognized for their broad
knowledge of, or expertise in, or for their profound
interest in, the arts and (B) have established records
of distinguished service, or achieved eminence, in the
arts;
‘‘(2) so as to include practicing artists, civic
cultural leaders, members of the museum profession,
and others who are professionally engaged in the
arts; and
‘‘(3) so as collectively to provide an appropriate
distribution of membership among the major art
fields.
The President is requested, in the making of such appoint-
ments, to give consideration to such recommendations as
may, from time to time, be submitted to the President by
leading national organizations in these fields. In making
such appointments, the President shall give due regard to
equitable representation of women, racially and ethnically
diverse individuals, and individuals with disabilities who
are involved in the arts. Members of the Council shall be
appointed so as to represent equitably all geographical
areas in the United States.
‘‘(c) Each member shall hold office for a term of six
years, and the terms of office shall be staggered. The
terms of office of all Council members shall expire on the
third day of September in the year of expiration. No mem-
ber shall be eligible for reappointment during the two-year
period following the expiration of such member’s term.
Any member appointed to fill a vacancy shall serve for
the remainder of the term for which such member’s prede-
cessor was appointed. Notwithstanding any other provi-
sion of this subsection, a member shall serve after the ex-
piration of such member’s term until such member’s suc-
cessor takes office.
‘‘(d) Members shall receive compensation at a rate
to be fixed by the Chairperson but not to exceed the per
diem equivalent of the maximum rate of pay payable under
section 5376 of title 5 of the United States Code and be
allowed travel expenses including per diem in lieu of sub-
sistence, as authorized by law (section 5703 of title 5 of
the United States Code) for persons in the Government
service employed intermittently.
‘‘(e)(1) The Council shall meet at the call of the
Chairperson but not less often than twice during each cal-
endar year. Fourteen members of the Council shall con-
stitute a quorum. All policy meetings of the Council shall
be open to the public.
‘‘(2) The Council shall—
‘‘(A) create written records summarizing—
‘‘(i) all meetings and discussions of the
Council; and
‘‘(ii) the recommendations made by the
Council to the Chairperson;
‘‘(B) make such records available to the public
in a manner that protects the privacy of individual
applicants, panel members, and Council members;
‘‘(C) advise the Chairperson with respect to
policies, programs, and procedures for carrying out
the Chairperson’s functions, duties, or responsibil-
ities under this title, and review applications for fi-
nancial assistance under this subchapter and make
recommendations to the Chairperson with respect to
the approval of each application and the amount of
financial assistance (if any) to provide to each appli-
cant;
‘‘(D) make recommendations to the Chair-
person concerning—
‘‘(i) whether to approve particular applica-
tions for financial assistance under this title
that have been determined by panels to have ar-
tistic excellence and artistic merit; and
‘‘(ii) the amount of financial assistance the
Chairperson should provide with respect to each
such application the Council recommends for
approval.
‘‘(f) The Chairperson shall not approve or disapprove
any application until the Chairperson has received the rec-
ommendation of the Council on such application. The
Chairperson shall have final authority to approve each ap-
plication, except that the Chairperson may only provide
to an applicant the amount of financial assistance rec-
ommended by the Council and may not approve an appli-
cation with respect to which the Council makes a negative
recommendation. In the case of an application or amend-
ment involving $35,000 or less or a change in the grant
amount of 20 percent or less, the Chairperson may ap-
prove or disapprove such request if such action is taken
pursuant to the terms of an expressed and direct delega-
tion of authority from the Council to the Chairperson, and
provided that each such action by the Chairperson shall
be reported to the Council at its next regularly scheduled
meeting. Such action by the Chairperson shall be used
with discretion and shall not become a normal practice of
providing assistance. In addition, the terms of any such
delegation of authority shall not permit obligations for ex-
penditure of funds under such delegation for any fiscal
year which exceed an amount equal to 10 per centum of
the sums appropriated for that fiscal year pursuant to sec-
tion 206(a)(1)(A).
‘‘SEC. 204. NATIONAL MEDAL OF ARTS.
‘‘(a) There is hereby established a National Medal of
Arts, which shall be a medal of such design as is deemed
appropriate by the President, on the basis of recommenda-
tions submitted by the National Council on the Arts, and
which shall be awarded as provided in subsection (b) of
this section.
‘‘(b)(1) The President shall from time to time award
the National Medal of Arts, on the basis of recommenda-
tions from the National Council on the Arts, to individuals
or groups who in the President’s judgment are deserving
of special recognition by reason of their outstanding con-
tributions to the excellence, growth, support, and availabil-
ity of the arts in the United States.
‘‘(2) Not more than twelve of such medals may be
awarded in any calendar year.
‘‘(3) An individual may be awarded the National
Medal of Arts only if at the time such award is made such
individual—
‘‘(A) is a citizen or other national of the United
States; or
‘‘(B) is an alien lawfully admitted to the United
States for permanent residence who (i) has filed an
application or petition for naturalization in the man-
ner prescribed by section 334 of the Immigration
and Nationality Act (8 U.S.C. 1445) and (ii) is not
permanently ineligible to become a citizen of the
United States.
‘‘(4) A group may be awarded the National Medal
of Arts only if such group is organized or incorporated
in the United States.
‘‘(5) The presentation of the National Medal of Arts
shall be made by the President with such ceremonies as
the President may deem proper, including attendance by
appropriate Members of Congress.
‘‘(c) Funds made available to the National Endow-
ment for the Arts shall be used to carry out this section.
‘‘SEC. 205. ADMINISTRATIVE PROVISIONS.
‘‘(a) In addition to any authorities vested in the
Chairperson by other provisions of this title, the Chair-
person of the National Endowment for the Arts in carry-
ing out the Chairperson’s functions, shall have authority
to—
‘‘(1) prescribe such regulations and procedures
as the Chairperson deems necessary governing the
manner in which the Chairperson’s functions shall
be carried out;
‘‘(2) solicit, accept, receive, invest, and use
money and property donated, bequeathed, or devised
to such Endowment, either absolutely or in trust,
with or without a condition or restriction, including
a condition that the Chairperson use other funds of
the Endowment for the purposes of the gift, and to
use, sell, or otherwise dispose of such property for
purposes of carrying out the Endowment’s functions.
All such gifts shall be added to the appropriation for
the Endowment for purposes of carrying out the En-
dowment’s functions under this title;
‘‘(3) appoint employees, subject to the civil
service laws, as necessary to carry out the Chair-
person’s functions, define their duties, and supervise
and direct their activities;
‘‘(4) utilize experts and consultants, including
panels of experts, who may be employed as author-
ized by section 3109 of title 5, United States Code;
‘‘(5) accept and utilize the services of voluntary
and uncompensated personnel and reimburse them
for travel expenses, including per diem, as author-
ized by law (section 5703 of title 5 of the United
States Code) for persons in the Government service
employed without compensation;
‘‘(6) make advance, progress, and other pay-
ments without regard to section 3324 of title 31,
United States Code;
‘‘(7) rent office space in the District of Colum-
bia; and
‘‘(8) make other necessary expenditures.
‘‘(b) Any group shall be eligible for financial assist-
ance pursuant to this title only if—
‘‘(1) no part of its net earnings inures to the
benefit of any private stockholder or stockholders, or
individual or individuals, and
‘‘(2) donations to such group are allowable as
a charitable contribution under the standards of sec-
tion 170(c) of the Internal Revenue Code of 1986
(26 U.S.C. 170(c)).
‘‘(c) Any loans made by the Chairperson under this
title shall be made in accordance with terms and condi-
tions approved by the Secretary of the Treasury.
‘‘(d) The Chairperson may waive matching require-
ments under section 202 for designated grantees, except
that not more than 20 percent of the funds allotted by
the National Endowment for the Arts for grants under
section 202 in any fiscal year may be available for grants
in that fiscal year without regard to such limitation.
‘‘(e) The Chairperson of the National Endowment for
the Arts shall submit an annual report to the President
for transmittal to the Congress on or before the 15th day
of April of each year. The report shall summarize the ac-
tivities of the Endowment for the preceding year, and may
include such recommendations as the Chairperson deems
appropriate.
‘‘(f) The National Council on the Arts may submit
an annual report to the President for transmittal to the
Congress on or before the 15th day of April of each year
setting forth a summary of its activities during the preced-
ing year or its recommendations for any measures which
it considers necessary or desirable.
‘‘(g) Official publications of the Endowment under
this title may be supported without regard for the provi-
sions of section 501 of title 44, United States Code, only
if the Chairperson consults with the Joint Committee on
Printing of the Congress and the Chairperson submits to
the Committee on Labor and Human Resources of the
Senate and the Committee on Economic and Educational
Opportunities of the House of Representatives a report
justifying any exemption from such section 501.
‘‘(h) If any grant recipient substantially fails to sat-
isfy the purposes for which such financial assistance is
provided or the requirements of subsection (k) of section
202, as determined by the Chairperson, then the Chair-
person may—
‘‘(1) for purposes of determining whether to
provide any subsequent financial assistance, take
into consideration the results of the post-award eval-
uation conducted under subsection (l) of section 202;
‘‘(2) prohibit the recipient of such financial as-
sistance to use the name of, or in any way associate
such project, production, or program with the En-
dowment; and
‘‘(3) if such project, production, or program is
published, require that the publication contain the
following statement: ‘The opinions, findings, conclu-
sions, and recommendations expressed herein do not
reflect the views of the National Endowment for the
Arts.’.
‘‘(i) Whenever the Chairperson, after reasonable no-
tice and opportunity for hearing, finds that—
‘‘(1) a grantee is not complying substantially
with the provisions of this title;
‘‘(2) a State agency is not complying substan-
tially with terms and conditions of its State plan ap-
proved under this title; or
‘‘(3) any funds granted to a grantee or State
agency under this title have been diverted from the
purposes for which they were allotted or paid, the
Chairperson shall immediately notify the grantee or
State agency with respect to which such finding was
made that no further grants will be made under this
subtitle to such grantee or agency until there is no
longer any default or failure to comply or the diver-
sion has been corrected, or, if compliance or correc-
tion is impossible, until such grantee or agency re-
pays or arranges the repayment of the Federal funds
which have been improperly diverted or expended.
‘‘(j)(1) If, after reasonable notice and opportunity for
a hearing on the record, the Chairperson determines that
a recipient of financial assistance provided under this title
by the Chairperson or any non-Federal entity, used such
financial assistance for a project, production, or workshop
that is determined to be obscene, then the Chairperson
shall require that until such recipient repays such assist-
ance (in such amount, and under such terms and condi-
tions, as the Chairperson determines to be appropriate)
to the Endowment, no subsequent financial assistance be
provided under this title to such recipient.
‘‘(2) Financial assistance repaid under this section to
the Endowment shall be deposited in the Treasury of the
United States and credited as miscellaneous receipts.
‘‘(3)(A) This subsection shall not apply with respect
to financial assistance provided before October 1, 1990.
‘‘(B) This subsection shall not apply with respect to
a project, production, or workshop after the expiration of
the 7-year period beginning on the latest date on which
financial assistance is provided under this title for such
project, production, or workshop.
‘‘SEC. 206. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a)(1)(A) For the purpose of carrying out sub-
sections (c), (d), (f), and (g) of section 202, there are au-
thorized to be appropriated to the National Endowment
for the Arts such sums as may be necessary for fiscal
years 1996, 1997, 1998, 1999, 2000, and 2001.
‘‘(B) Not less than 27.5 percent of the amount appro-
priated for the respective fiscal year under subsection (A)
shall be for carrying out section 202(d).
‘‘(C) Not less than 7.5 percent of the amount appro-
priated for the respective fiscal year under subsection (A)
shall be for carrying out programs under section 202(f)(3)
(relating to programs to expand public access to the arts
in rural and innercity areas). Not less than 50 percent
of the funds required by this clause to be used for carrying
out such programs shall be used for carrying out such pro-
grams in rural areas.
‘‘(D) In any fiscal year in which the aggregate
amount of funds appropriated to the National Endowment
for the Arts under subsection (A) exceeds $175,000,000,
50 percent of such excess shall be available to carry out
section 202(g), except that in each fiscal year, the amount
made available to carry out section 202(g) shall not exceed
$40,000,000, in the aggregate.
‘‘(2) There are authorized to be appropriated for each
fiscal year ending before October 1, 2001, to the National
Endowment for the Arts an additional amount for Treas-
ury Funds, equal to the sum of—
‘‘(A) the total amounts received by such En-
dowment under section 205(a)(2), including the
value of property donated, bequeathed, or devised to
such Endowment; and
‘‘(B) the total amounts received by the grantees
of such Endowment from non-Federal sources, in-
cluding the value of property donated, bequeathed,
or devised to such grantees, for use in carrying out
projects and other activities under section 202(c).
‘‘(3) There are authorized to be appropriated for each
fiscal year ending before October 1, 2001, to the National
Endowment for the Arts an additional amount for Chal-
lenge Funds, equal to the sum of—
‘‘(A) the total amounts received by such En-
dowment under section 205(a)(2) for use in carrying
out activities under section 202(e); and
‘‘(B) the total amounts received by the grantees
of such Endowment from non-Federal sources, in-
cluding the value of property donated, bequeathed,
or devised to such grantees, for use in carrying out
activities under section 202(e).
‘‘(b)(1) Sums appropriated pursuant to subsection
(a) of this section for any fiscal year shall remain available
for obligation and expenditure until expended.
‘‘(2) In order to afford adequate notice to interested
persons of available assistance under this title, appropria-
tions authorized under subsection (a) of this section are
authorized to be included in the measure making appro-
priations for the fiscal year preceding the fiscal year for
which such appropriations become available for obligation.
‘‘(c) There are authorized to be appropriated to the
National Endowment for the Arts such sums as may be
necessary for fiscal years 1996, 1997, 1998, 1999, 2000,
and 2001, to administer the provisions of this title, or any
other program for which the Chairperson of the National
Endowment for the Arts is responsible, including not to
exceed $100,000 for each such fiscal year for official re-
ception and representation expenses.
‘‘TITLE III—NATIONAL ENDOW-
MENT FOR THE HUMANITIES
‘‘SEC. 301. DEFINITIONS.
‘‘As used in this title—
‘‘(1) the term ‘humanities’ includes, but is not
limited to, the study and interpretation of the follow-
ing: language, both modern and classical; linguistics;
literature; history; jurisprudence; philosophy; archae-
ology; comparative religion; ethics; the history, criti-
cism, and theory of the arts; folklore and folklife;
those aspects of the social sciences which have hu-
manistic content and employ humanistic methods;
and the study and application of the humanities to
the human environment with particular attention to
reflecting our diverse heritage, traditions, and his-
tory and to the relevance of the humanities to the
current conditions of national life;
‘‘(2) the term ‘project’ means programs orga-
nized to carry out the purposes of this title, such
term also includes—
‘‘(A) the renovation of facilities if—
‘‘(i) the amount of the expenditure of
Federal funds for such purpose in the case
of any project does not exceed $250,000,
or
‘‘(ii) two-thirds of the members of the
National Council on the Humanities (who
are present and voting) approve of the
grant or contract involving an expenditure
for such purpose; and
‘‘(B) for purposes of sections 302(c)(10)
and 302(h) only, the construction of facilities
if—
‘‘(i) such construction is for dem-
onstration purposes or under unusual cir-
cumstances where there is no other man-
ner in which to accomplish a humanistic
purpose; and
‘‘(ii) two-thirds of the members of the
National Council on the Humanities (who
are present and voting) approve of the
grant or contract involving an expenditure
for such purpose;
‘‘(3) the term ‘State’ includes, in addition to
the several States, the Commonwealth of Puerto
Rico, the District of Columbia, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, and the Virgin Islands of the United States;
‘‘(4) the term ‘workshop’ means an activity the
primary purpose of which is to promote scholarship
and teaching among the participants;
‘‘(5) the term ‘arrangements’ means any form
of financial assistance, including contracts, grants,
or other forms of assistance and loans made in ac-
cordance with terms and conditions approved by the
Secretary of the Treasury; and
‘‘(6) the term ‘program income’ means any
money that is earned or received by a grantee or a
subrecipient from the activities supported by grant
funds or from products resulting from or related to
grant activities. It includes, but is not limited to, in-
come from fees for services performed and from the
sale of items fabricated under a grant; income from
licensing fees on products related to the grant activi-
ties; usage or rental fees for equipment or property
acquired under a grant; admission fees; broadcast or
distribution rights; and royalties on patents and
copyrights.
‘‘SEC. 302. ESTABLISHMENT OF THE NATIONAL ENDOW-
MENT FOR THE HUMANITIES.
‘‘(a) There is established within the Foundation the
National Endowment for the Humanities.
‘‘(b)(1) The Endowment shall be headed by a chair-
person, who shall be appointed by the President, by and
with the advice and consent of the Senate.
‘‘(2) The term of office of the Chairperson shall be
four years, and the Chairperson shall be eligible for re-
appointment. The provisions of this paragraph shall apply
to any person appointed to fill a vacancy in the office of
the Chairperson. Upon expiration of the Chairperson’s
term of office the Chairperson shall serve until the Chair-
person’s successor shall have been appointed and shall
have qualified.
‘‘(c) The Chairperson, with the advice of the National
Council on the Humanities (hereinafter established), is au-
thorized to enter into arrangements to—
‘‘(1) develop and encourage the pursuit of a na-
tional policy for the promotion of progress and
scholarship in the humanities;
‘‘(2) initiate and support research and pro-
grams to strengthen the research and teaching po-
tential of the United States in the humanities;
‘‘(3) initiate and support training and work-
shops in the humanities (fellowships awarded to in-
dividuals under this authority may be for the pur-
pose of study or research at appropriate non-profit
institutions selected by the recipient of such aid, for
stated periods of time);
‘‘(4) initiate and support programs and re-
search which have substantial scholarly and cultural
significance and that reach, or reflect the diversity
and richness of our American cultural heritage, in-
cluding the culture of, a minority, inner city, rural,
or tribal community;
‘‘(5) foster international programs and ex-
changes;
‘‘(6) foster the interchange of information in
the humanities;
‘‘(7) foster education in, and public understand-
ing and appreciation of the humanities;
‘‘(8) support the publication of scholarly works
in the humanities;
‘‘(9) insure that the benefit of its programs will
also be available to our citizens where such pro-
grams would otherwise be unavailable due to geo-
graphic or economic reasons; and
‘‘(10) foster programs and projects that provide
access to, and preserve materials important to re-
search, education, and public understanding of, the
humanities.
In selecting individuals and groups of exceptional talent
as recipients of financial assistance to be provided under
this subsection, the Chairperson shall give particular re-
gard to underserved scholars, and educational and cultural
institutions, 
that 
have 
traditionally 
been
underrepresented.
‘‘(d) The Chairperson shall coordinate the programs
of the National Endowment for the Humanities, insofar
as practicable, with existing Federal programs, designated
State humanities agencies and with those undertaken by
other public agencies or private groups, and shall develop
the programs of the Endowment with due regard to the
contribution to the objectives of this title which can be
made by other Federal agencies under existing programs.
‘‘(e) The total amount of any grant under subsection
(c)(3) to any group engaging in workshop activities for
which an admission or other charge is made to the general
public shall not exceed 30 per centum of the total cost
of such activities.
‘‘(f)(1) The Chairperson, with the advice of the Na-
tional Council on the Humanities, is authorized, in accord-
ance with the provisions of this subsection, to establish
and carry out a program of grant-in-aid in each of the
several States in order to support not more than 50 per
centum of the cost of existing activities which meet the
standards enumerated in subsection (c) of this section or
to match contributions from non-Federal sources made to
a trust fund the purpose of which is to provide long-term
financial support for programs which meet the standards
enumerated in subsection (c) of this section and in order
to develop a program in the humanities in such a manner
as will furnish adequate programs in the humanities in
each of the several States.
‘‘(2)(A) Whenever a State desires to designate or to
provide for the establishment of a State agency as the sole
agency for the administration of the State plan, such State
shall designate the humanities council in existence on the
date the State agency is established as the State agency,
and shall match from State funds a sum equal to 50 per
centum of that portion of Federal financial assistance re-
ceived by such State under this subsection which is de-
scribed in the first sentence of paragraph (4) relating to
the minimum State grant, or 25 per centum of the total
amount of Federal financial assistance received by such
State under this subsection, whichever is greater, for the
fiscal year involved. In any State in which the State selects
the option described in this subparagraph, the State shall
submit, before the beginning of each fiscal year, an appli-
cation for grants and accompany such application with a
plan which the Chairperson finds—
‘‘(i) designates or provides for the establish-
ment of a State agency (hereinafter in this section
referred to as the ‘State agency’) as the sole agency
for the administration of the State plan;
‘‘(ii) provides that the chief executive officer of
the State will appoint new members to the State hu-
manities council designated under the provisions of
this subparagraph, as vacancies occur as a result of
the expiration of the terms of members of such
council, until the chief executive officer has ap-
pointed all of the members of such council;
‘‘(iii) provides, from State funds, an amount
equal to 50 per centum of that portion of Federal
financial assistance received by such State under
this subsection which is described in the first sen-
tence of paragraph (4) relating to the minimum
State grant, or 25 per centum of the total amount
of Federal financial assistance received by such
State under this subsection, whichever is greater, for
the fiscal year involved;
‘‘(iv) provides that funds paid to the State
under this subsection will be expended solely on pro-
grams approved by the State agency which carry out
the objectives of subsection (c) of this section and
which are designed to bring the humanities to the
public;
‘‘(v) provides assurances that State funds will
be newly appropriated for the purpose of meeting
the requirements of this subparagraph;
‘‘(vi) provides that the State agency will make
such reports, in such form and containing such in-
formation, as the Chairperson may require, includ-
ing a description of the progress made toward
achieving the goals of the State plan;
‘‘(vii) provides—
‘‘(I) assurances that the State agency has
held, after reasonable notice, public meetings in
the State to allow scholars, interested organiza-
tions, and the public to present views and make
recommendations regarding the State plan; and
‘‘(II) a summary of such recommendations
and of the response of the State agency to such
recommendations; and
‘‘(viii) contains—
‘‘(I) a description of the level of participa-
tion during the most recent preceding year for
which information is available by scholars and
scholarly organizations in programs receiving fi-
nancial assistance under this subsection;
‘‘(II) for the most recent preceding year
for which information is available, a description
of the extent to which the programs receiving
financial assistance under this subsection are
available to all people and communities in the
State; and
‘‘(III) a description of programs receiving
financial assistance under this subsection that
exist or are being developed to secure wider
participation of scholars and scholarly organiza-
tions identified under subclause (I) of this
clause or that address the availability of the hu-
manities to all people or communities identified
under subclause (II) of this clause.
No application may be approved unless the accompanying
plan satisfies the requirements specified in this subsection.
‘‘(B) In any State in which the chief executive officer
of the State fails to submit an application under subpara-
graph (A), the grant recipient in such State shall—
‘‘(i) establish a procedure which assures that
six members of the governing body of such grant re-
cipient shall be appointed by an appropriate officer
or agency of such State, except that in no event may
the number of such members exceed 25 per centum
of the total membership of such governing body; and
‘‘(ii) provide, from any source, an amount equal
to the amount of Federal financial assistance re-
ceived by such grant recipient under this subsection
for the fiscal year involved.
‘‘(3) Whenever a State selects to receive Federal fi-
nancial assistance under this subsection for any fiscal year
under paragraph (2)(B), any appropriate entity desiring
to receive such assistance shall submit an application for
such assistance at such time as shall be specified by the
Chairperson. Each such application shall be accompanied
by a plan which the Chairperson finds—
‘‘(A) provides assurances that the grant recipi-
ent will comply with the requirements of paragraph
(2)(B);
‘‘(B) provides that funds paid to the grant re-
cipient will be expended solely on programs which
carry out the objectives of subsection (c) of this sec-
tion;
‘‘(C) establishes a membership policy which is
designed to assure broad public representation with
respect to programs administered by such grant re-
cipient;
‘‘(D) provides a nomination process which
assures opportunities for nomination to membership
from various groups within the State involved and
from a variety of segments of the population of such
State, and including individuals who by reason of
their achievement, scholarship, or creativity in the
humanities, are especially qualified to serve;
‘‘(E) provides for a membership rotation proc-
ess which assures the regular rotation of the mem-
bership and officers of such grant recipient;
‘‘(F) establishes reporting procedures which are
designed to inform the chief executive officer of the
State involved, and other appropriate officers and
agencies, of the activities of such grant recipient;
‘‘(G) establishes procedures to assure public ac-
cess to information relating to such activities;
‘‘(H) provides that such grant recipient will
make reports to the Chairperson, in such form, at
such times, and containing such information, as the
Chairperson may require, including a description of
the progress made toward achieving the goals of the
plan;
‘‘(I) provides—
‘‘(i) assurances that the grant recipient
has held, after reasonable notice, public meet-
ings in the State to allow scholars, interested
organizations, and the public to present views
and make recommendations regarding the plan;
and
‘‘(ii) a summary of such recommendations
and of the response of the grant recipient to
such recommendations; and
‘‘(J) contains—
‘‘(i) a description of the level of participa-
tion during the most recent preceding year for
which information is available by scholars and
scholarly organizations in programs receiving fi-
nancial assistance under this subsection;
‘‘(ii) for the most recent preceding year for
which information is available, a description of
the extent to which the programs receiving fi-
nancial assistance under this subsection are
available to all people and communities in the
State; and
‘‘(iii) a description of programs receiving
financial assistance under this subsection that
exist or are being developed to secure wider
participation of scholars and scholarly organiza-
tions identified under clause (i) of this subpara-
graph or that address the availability of the hu-
manities to all people or communities identified
under clause (ii) of this subparagraph.
No application may be approved unless the accompanying
plan satisfies the requirements specified in this subsection.
‘‘(4) Of the sums available to carry out this sub-
section for any fiscal year, each State and each grant re-
cipient which has a plan approved by the Chairperson shall
be allotted at least $200,000. If the sums appropriated
are insufficient to make the allotments under the preced-
ing sentence in full, such sums shall be allotted among
such States and grant recipients in equal amounts. In any
case where the sums available to carry out this subsection
for any fiscal year are in excess of the amount required
to make the allotments under the first sentence of this
paragraph—
‘‘(A) 34 per centum of the amount of such ex-
cess for such fiscal year shall be available to the
Chairperson for making grants under this subsection
to States and regional groups and entities applying
for such grants;
‘‘(B) 44 per centum of the amount of such ex-
cess for such fiscal year shall be allotted in equal
amounts among the States and grant recipients
which have plans approved by the Chairperson; and
‘‘(C) 22 per centum of the amount of such ex-
cess for such fiscal year shall be allotted among the
States and grant recipients which have plans ap-
proved by the Chairperson in amounts which bear
the same ratio to such excess as the population of
the State for which the plan is approved (or, in the
case of a grant recipient other than a State, the pop-
ulation of the State in which such grant recipient is
located) bears to the population of all the States.
‘‘(5)(A) The amount of each allotment to a State for
any fiscal year under this subsection shall be available to
each State or grant recipient, which has a plan or applica-
tion approved by the Chairperson in effect on the first day
of such fiscal year, to pay not more than 50 per centum
of the total cost of any project or production described
in paragraph (1). The amount of any allotment made
under paragraph (4) for any fiscal year—
‘‘(i) which exceeds $125,000, but
‘‘(ii) which does not exceed 20 per centum of
such allotment, shall be available, at the discretion
of the Chairperson, to pay up to 100 per centum of
the cost of programs under this subsection if such
programs would otherwise be unavailable to the resi-
dents of that State.
‘‘(B) Any amount allotted to a State under the first
sentence of paragraph (4) for any fiscal year which is not
obligated by the State agency or grant recipient prior to
sixty days prior to the end of the fiscal year for which
such sums are appropriated shall be available to the Chair-
person.
‘‘(C) Funds made available under this subsection
shall not be used to supplant non-Federal funds.
‘‘(D) For purposes of paragraph (4)(B), the term
‘State’ and the term ‘grant recipient’ include, in addition
to the several States, only those special jurisdictions speci-
fied in section 102(c) which have a population of 200,000
or more, according to the latest decennial census.
‘‘(6) All amounts allotted or made available under
paragraph (4) for a fiscal year which are not granted to
any entity during such fiscal year shall be available to the
National Endowment for the Humanities for the purpose
of carrying out subsection (c) of this section.
‘‘(7) Whenever the Chairperson, after reasonable no-
tice and opportunity for hearing, finds that—
‘‘(A) a group or grant recipient is not comply-
ing substantially with the provisions of this sub-
section;
‘‘(B) a State agency or grant recipient is not
complying substantially with terms and conditions of
its State plan or grant recipient application ap-
proved under this subsection; or
‘‘(C) any funds granted to any group or State
agency or grant recipient under this subsection have
been diverted from the purposes for which they are
allotted or paid, the Chairperson shall immediately
notify the Secretary of the Treasury and the group,
State agency, or grant recipient with respect to
which such finding was made that no further grants
will be made under this subsection to such group,
State agency, or grant recipient until there is no
longer a default or failure to comply or the diversion
has been corrected, or, if the compliance or correc-
tion is impossible, until such group, State agency, or
grant recipient repays or arranges the repayment of
the Federal funds which have been improperly di-
verted or expended.
‘‘(8) Except as provided in paragraphs (4), (5), and
(6), the Chairperson may not make grants under this sub-
section to more than one entity in any State.
‘‘(g) It shall be a condition of the receipt of any grant
under this section that the group, individual, or State
agency or entity receiving such grant furnish adequate as-
surances to the Secretary of Labor that (1) all profes-
sional performers and related or supporting professional
personnel employed on projects or productions which are
financed in whole or in part under this section will be paid,
without subsequent deduction or rebate on any account,
not less than the minimum compensation as determined
by the Secretary of Labor to be the prevailing minimum
compensation for persons employed in similar activities;
and (2) no part of any project or production which is fi-
nanced in whole or in part under this section will be per-
formed or engaged in under working conditions which are
unsanitary or hazardous or dangerous to the health and
safety of the employees engaged in such project or produc-
tion. Compliance with the safety and sanitary laws of the
State in which the performance or part thereof is to take
place shall be prima facie evidence of compliance. The Sec-
retary of Labor shall prescribe standards, regulations, and
procedures necessary to carry out this subsection.
‘‘(h)(1) The Chairperson of the National Endowment
for the Humanities, with the advice of the National Coun-
cil on the Humanities, is authorized, in accordance with
the provisions of this subsection, to establish and carry
out a program of contracts with, or grants-in-aid to, public
agencies and private nonprofit organizations for the pur-
pose of—
‘‘(A) enabling cultural organizations and insti-
tutions to increase the levels of continuing support
and to increase the range of contributors to the pro-
gram of such organizations or institutions;
‘‘(B) providing administrative and management
improvements for cultural organizations and institu-
tions, particularly in the field of long-range financial
planning;
‘‘(C) enabling cultural organizations and insti-
tutions to increase audience participation in, and ap-
preciation of, programs sponsored by such organiza-
tions and institutions;
‘‘(D) stimulating greater cooperation among
cultural organizations and institutions especially de-
signed to serve better the communities in which such
organizations or institutions are located; and
‘‘(E) fostering greater citizen involvement in
planning the cultural development of a community.
‘‘(2) The total amount of any payment made under
this subsection for a program or project may not exceed
50 per centum of the cost of such program or project.
‘‘(3) In carrying out the program authorized by this
subsection, the Chairperson of the National Endowment
for the Humanities shall have the same authority as is
established in subsection (c) of this section and section
304.
‘‘(i) The Chairperson may enter into interagency
agreements to promote or assist with the humanities-relat-
ed activities of other Federal agencies, on either a reim-
bursable or nonreimbursable basis, and may use funds au-
thorized to be appropriated for the purposes of subsection
(c) of this section for the costs of such activities.
‘‘(j) It shall be a condition of the receipt of any grant
under this section that the group or individual of excep-
tional talent or the State, State agency, or entity receiving
such grant furnish adequate assurances to the Secretary
of Labor that all laborers and mechanics employed by con-
tractors or subcontractors on construction projects as-
sisted under this section shall be paid wages at rates not
less than those prevailing on similar construction in the
locality, as determined by the Secretary of Labor in ac-
cordance with the Davis-Bacon Act, as amended (40
U.S.C. 276a–276a–5). The Secretary of Labor shall have,
with respect to the labor standards specified in this sub-
section, the authority and functions set forth in Reorga-
nization Plan Numbered 14 of 1950 (15 F.R. 3175; 5
U.S.C. 133z–15) and section 2 of the Act of June 13,
1934, as amended (40 U.S.C. 276c).
‘‘(k) The Chairperson of the National Endowment for
the Humanities shall, in ongoing consultation with State
and local agencies, other relevant organizations, and rel-
evant Federal agencies, continue to develop and implement
a practical system of national information and data collec-
tion and public dissemination on the humanities, scholars,
educational and cultural groups, and their audiences. Such
system shall include cultural and financial trends in the
various humanities fields, trends in audience participation,
and trends in humanities education on national, regional,
and State levels. Such system shall be used, along with
a summary of the data submitted with plans under sub-
section (f) of this section, to prepare a report on the state
of the humanities in the Nation. The state of the human-
ities report shall include a description of the availability
of the Endowment’s programs to emerging and culturally
diverse scholars, cultural and educational organizations,
and communities and of the participation of such scholars,
organizations, and communities in such programs. The
state of the humanities report shall be submitted to the
President and the Congress, and provided the States, not
later than October 1, 1992, and quadrennially thereafter.
‘‘(l)(1) For purposes of this section—
‘‘(A) the term ‘group’ includes any State or
local government or public agency, Indian tribe, or
nonprofit association, organization or society;
‘‘(B) the term ‘entity’ means any partnership,
corporation, business enterprise, or other organiza-
tion engaged in the production of a film or publica-
tion;
‘‘(C) the term ‘person’ means any individual;
and
‘‘(D) the term ‘United States national’ or ‘U.S.
national’ means a citizen of the United States or an
individual person, who though not a citizen of the
United States, owes permanent allegiance to the
United States.
‘‘(2) The Chairperson, with the advice of the National
Council on the Humanities, shall establish the criteria for
eligibility for financial assistance under this title, except
that—
‘‘(A) any group shall be eligible for financial as-
sistance under this title if—
‘‘(i) no part of its net earnings inures to
the benefit of any private stockholder or stock-
holders or individual or individuals; and
‘‘(ii) donations to such groups are allow-
able as a charitable contribution under the
standards of section 170(c) of the Internal Rev-
enue Code of 1986;
‘‘(B) any entity shall be eligible for financial as-
sistance under this title if the Chairman, with the
advice of the National Council on the Humanities,
determines that providing such financial assistance
will significantly advance the knowledge or under-
standing of the humanities in the United States; and
‘‘(C) Any person shall be eligible for financial
assistance under this title if the person is a United
Stated national. However, a person who is not a
United States national may be eligible for financial
assistance under this title if the Chairman, with the
advice of the National Council on the Humanities,
determines that providing such financial assistance
will significantly advance the knowledge or under-
standing of the humanities in the United States.
‘‘(m) The Chairperson, with the advice of the Na-
tional Council on the Humanities, is authorized to make
the following annual awards:
‘‘(1) The Jefferson Lecture in the Humanities
Award to one individual for distinguished intellectual
achievement in the humanities. The annual award
shall not exceed $10,000.
‘‘(2) The Charles Frankel Prize to honor indi-
viduals who have made outstanding contributions to
the public understanding of the humanities. Not
more than 5 individuals may receive such prize each
year. Each prize shall not exceed $5,000.
‘‘(n) The Chairperson, with the advice of the National
Council on the Humanities, is authorized to require as a
term or condition of any grant that the grant recipient
remit to the National Endowment for the Humanities a
percentage of the program income derived from the grant
activities. This program income shall be received, invested
and expended by the Chairperson pursuant to his author-
ity under section 304(a)(2).
‘‘SEC. 303. ESTABLISHMENT OF THE NATIONAL COUNCIL
ON THE HUMANITIES.
‘‘(a) There is established in the National Endowment
for the Humanities a National Council on the Humanities.
‘‘(b) The Council shall be composed of the Chair-
person of the National Endowment for the Humanities,
who shall be the Chairperson of the Council, and twenty-
six other members appointed by the President, by and
with the advice and consent of the Senate, from private
life. Such members shall be individuals who—
‘‘(1) are selected from among private citizens of
the United States who are recognized for their broad
knowledge of, expertise in, or commitment to the hu-
manities; and
‘‘(2) have established records of distinguished
service and scholarship or creativity and in a man-
ner which will provide a comprehensive representa-
tion of the views of scholars and professional practi-
tioners in the humanities and of the public through-
out the United States. The President is requested in
the making of such appointments to give consider-
ation to such recommendations as may from time to
time be submitted to him by leading national organi-
zations concerned with the humanities. In making
such appointments, the President shall give due re-
gard to equitable representation of women, minori-
ties and individuals with disabilities who are involved
in the humanities.
‘‘(c) Each member shall hold office for a term of six
years, except that—
‘‘(1) the members first taking office shall serve,
as designated by the President, nine for terms of
two years, nine for terms of four years, and eight for
terms of six years; and
‘‘(2) any member appointed to fill a vacancy
shall serve for the remainder of the term for which
such member’s predecessor was appointed. No mem-
ber shall be eligible for reappointment during the
two-year period following the expiration of such
member’s term. Notwithstanding any other provi-
sions of this subsection, a member shall serve after
the expiration of such member’s term until such
member’s successor takes office.
‘‘(d) The Council shall meet at the call of the Chair-
person but not less often than twice during each calendar
year. Fourteen members of the Council shall constitute a
quorum.
‘‘(e) Members shall receive compensation at a rate to
be fixed by the Chairperson but not to exceed the per diem
equivalent of the maximum rate of pay payable under sec-
tion 5376 of title 5 of the United States Code, and be
allowed travel expenses including per diem in lieu of sub-
sistence, as authorized by law (section 5703 of title 5 of
the United States Code) for persons in the Government
service employed intermittently.
‘‘(f) The Council shall—
‘‘(1) advise the Chairperson with respect to
policies, programs, and procedures for carrying out
the Chairperson’s functions; and
‘‘(2) shall review applications for financial sup-
port and make recommendations thereon to the
Chairperson. The Chairperson shall not approve or
disapprove any such application until the Chair-
person has received the recommendation of the
Council on such application, unless the Council fails
to make a recommendation thereon within a reason-
able time. In the case of any application involving
$30,000, or less, the Chairperson may approve or
disapprove such request if such action is taken pur-
suant to the terms of a delegation of authority from
the Council to the Chairperson, and provided that
each such action by the Chairperson shall be re-
viewed by the Council: Provided, That the terms of
any such delegation of authority shall not permit ob-
ligations for expenditure of funds under such delega-
tion for any fiscal year which exceed an amount
equal to 10 per centum of the sums appropriated for
that fiscal year pursuant to subparagraph (B) of
paragraph (1) of section 305(a).
‘‘SEC. 304. ADMINISTRATIVE PROVISIONS.
‘‘(a) In addition to any authorities vested in the
Chairperson by other provisions of this title, the Chair-
person of the National Endowment for the Humanities,
in carrying out the Chairperson’s functions, shall have au-
thority—
‘‘(1) to prescribe such regulations as the Chair-
person deems necessary governing the manner in
which the Chairperson’s functions shall be carried
out;
‘‘(2) in the discretion of the Chairperson to so-
licit, receive, and invest money and other property
donated, bequeathed, or devised to the Endowment
with or without a condition or restriction, including
a condition that the Chairperson use other funds of
that Endowment for the purposes of the gift or re-
mitted to the Endowment pursuant to section
302(n) or any other statutory authority and to re-
quest the Secretary of the Treasury to invest such
money in interest bearing obligations of the United
States or in obligations of the United States guaran-
teed as to both principal and interest by the United
States;
‘‘(3) to appoint employees, subject to the civil
service laws, as necessary to carry out the Chair-
person’s functions, define their duties, and supervise
and direct their activities;
‘‘(4) to utilize experts and consultants, includ-
ing panels of experts, who may be employed as au-
thorized by section 3109 of title 5, United States
Code;
‘‘(5) to accept and utilize the services of vol-
untary and uncompensated personnel and reimburse
them for travel expenses, including per diem, as au-
thorized by law (section 5703 of title 5 of the United
States Code) for persons in the Government service
employed without compensation;
‘‘(6) to make advance, progress, and other pay-
ments without regard to section 3324 of title 31,
United States Code;
‘‘(7) to rent office space in the District of Co-
lumbia; and
‘‘(8) to make other necessary expenditures.
In selecting panels of experts under clause (4) to review
and make recommendations with respect to the approval
of applications for financial assistance under this Act, the
Chairperson shall appoint individuals who have exhibited
expertise and leadership in the field under review, who
broadly represent diverse characteristics in terms of hu-
manistic perspective, and geographical factors, and who
broadly represent cultural diversity.
‘‘(b) The Chairperson of the National Endowment for
the Humanities shall submit an annual report to the
President for transmittal to the Congress on or before the
15th day of April of each year. The report shall summarize
the activities of the Endowment for the preceding year,
and may include such recommendations as the Chair-
person deems appropriate.
‘‘(c) The National Council on the Humanities, respec-
tively, may submit an annual report to the President for
transmittal to the Congress on or before the 15th day of
April of each year setting forth a summary of its activities
during the preceding year or its recommendations for any
measures which it considers necessary or desirable.
‘‘(d)(1) The Chairperson of the National Endowment
for the Humanities shall conduct a post-award evaluation
of projects, productions, and programs for which financial
assistance is provided by the Endowment under section
302(c). Such evaluation may include an audit to determine
the accuracy of the reports required to be submitted by
recipients under clauses (i) and (ii) of paragraph (2)(A).
As a condition of receiving such financial assistance, a re-
cipient shall comply with the requirements specified in
paragraph (2) that are applicable to the project, produc-
tion, or program for which such financial assistance is re-
ceived.
‘‘(2)(A) The recipient of financial assistance provided
by the Endowment shall submit to the Chairperson—
‘‘(i) a financial report containing such informa-
tion as the Chairperson deems necessary to ensure
that such financial assistance is expended in accord-
ance with the terms and conditions under which it
is provided;
‘‘(ii) a report describing the project, production
or program carried out with such financial assist-
ance; and
‘‘(C) if such project, production, or program is
published, require that the publication contain the
following statement: ‘The opinions, findings, conclu-
sions, and recommendations expressed herein do not
reflect the views of the National Endowment for the
Humanities.’.
‘‘(e) Official publications of the Endowment under
this title may be supported without regard for the provi-
sions of section 501 of title 44, United States Code, only
if the Chairperson consults with the Joint Committee on
Printing of the Congress and the Chairperson submits to
the Committee on Labor and Human Resources of the
Senate and the Committee on Economic and Educational
Opportunities of the House of Representatives a report
justifying any exemption from such section 501.
‘‘SEC. 305. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a)(1) For the purpose of carrying out section
302(c) of this title, there are authorized to be appropriated
to the National Endowment for the Humanities such sums
as may be necessary for fiscal years 1996 through 2001.
Of the sums so appropriated for any fiscal year, not less
than 20 per centum shall be for carrying out section
302(f).
‘‘(2) There are authorized to be appropriated for each
fiscal year ending before October 1, 2001, to the National
Endowment for the Humanities an amount equal to the
sum of—
‘‘(A) the total amounts received by the Endow-
ment under section 304(a)(2), including the value of
property donated, bequeathed, or devised to the En-
dowment and any interest earned thereon; and
‘‘(B) the total amounts received by the grantees
and subgrantees of the Endowment from non-Fed-
eral sources, including the value of property do-
nated, bequeathed, or devised to such grantees and
subgrantees, for use in carrying out activities under
paragraph (1) through paragraph (10) of section
302(c).
‘‘(3)(A) There are authorized to be appropriated for
each fiscal year ending before October 1, 2001, to the Na-
tional Endowment for the Humanities an amount equal
to the sum of—
‘‘(i) the total amounts received by the Endow-
ment, including the value of property donated, be-
queathed, or devised to the Endowment, for the pur-
poses set forth in section 302(h)(1) pursuant to the
authority of section 304(a)(2) of this title; and
‘‘(ii) the total amounts received by the grantees
of the Endowment from non-Federal sources, includ-
ing the value of property donated, bequeathed, or
devised to such grantees, for use in carrying out ac-
tivities under subparagraph (A) through subpara-
graph (E) of section 302(h)(1).
‘‘(B) Sums appropriated pursuant to subparagraph
(A) for any fiscal year shall remain available for obligation
and expenditure until expended.
‘‘(4) The Chairperson of the National Endowment for
the Humanities shall issue guidelines to implement the
provisions of paragraph (2) and paragraph (3). Such
guidelines shall be consistent with the requirements of sec-
tion 302(f) and section 302(h)(2) regarding total Federal
support of activities, programs, projects, or productions
carried out under authority of this title.
‘‘(5) For the purpose of carrying out section 302(c),
the Endowment is authorized to expend such sums as re-
ceived pursuant to section 304(a)(2) and the interest
earned thereon without fiscal year limitation and without
regard to the availability of appropriated funds.
‘‘(b)(1) Sums appropriated pursuant to subsection
(a) of this section for any fiscal year shall remain available
for obligation and expenditure until expended.
‘‘(2) In order to afford adequate notice to interested
persons of available assistance under this title, appropria-
tions authorized under subsection (a) of this section are
authorized to be included in the measure making appro-
priations for the fiscal year preceding the fiscal year for
which such appropriations become available for obligation.
‘‘(c) There are authorized to be appropriated to the
National Endowment for the Humanities such sums as
may be necessary for fiscal years 1996 through 2001, to
administer the provisions of this title, or any other pro-
gram for which the Chairperson of the National Endow-
ment for the Humanities is responsible, including not to
exceed $100,000 for fiscal year 1996 for official reception
and representation expenses.
‘‘(d) No grant shall be made to a workshop (other
than a workshop conducted by a school, college, or univer-
sity) for a production for which direct or indirect admis-
sion charge is asked if the proceeds, after deducting rea-
sonable costs, are used for purposes other than assisting
the grantee to develop high standards of scholarly excel-
lence or encourage greater appreciation of humanities by
our citizens.
‘‘TITLE IV—MUSEUM SERVICES
‘‘SEC. 401. PURPOSE.
‘‘It is the purpose of this title to encourage and assist
museums in their educational role, in conjunction with for-
mal systems of elementary, secondary, and post-secondary
education and with programs of nonformal education for
all age groups; to assist museums in modernizing their
methods and facilities so that they may be better able to
conserve our cultural, historic, and scientific heritage; and
to ease the financial burden borne by museums as a result
of their increasing use by the public.
‘‘SEC. 402. INSTITUTE OF MUSEUM SERVICES; ESTABLISH-
MENT.
‘‘There is hereby established within the National
Foundation on the Arts and the Humanities, an Institute
of Museum Services. The Institute shall consist of a Na-
tional Museum Services Board and a Director of the Insti-
tute.
‘‘SEC. 403. NATIONAL MUSEUM SERVICES BOARD.
‘‘(a) The Board shall consist of fifteen members ap-
pointed by the President by and with the advice and con-
sent of the Senate. Such members shall be selected from
among citizens of the United States who are members of
the general public and who are—
‘‘(1) broadly representative of the various muse-
ums, including museums relating to science, history,
technology, art, zoos, and botanical gardens, and of
the curatorial, conservation, educational, and cul-
tural resources of the United States; and
‘‘(2) recognized for their broad knowledge, ex-
pertise, or experience in museums or commitment to
museums.
Members shall be appointed to reflect various geographical
regions of the United States. The Board may not include,
at any time, more than three members from a single State.
In making such appointments, the President shall give due
regard to equitable representation of women, minorities,
and persons with disabilities who are involved in such mu-
seums.
‘‘(b) The term of office of the appointed members of
the Board shall be five years, except that—
‘‘(1) any such member appointed to fill a va-
cancy shall serve only such portion of a term as shall
not have expired at the time of such appointment;
and
‘‘(2) in the case of initial members, three shall
serve for terms of five years, three shall serve for
terms of four years, three shall serve for terms of
three years, three shall serve for terms of two years,
and three shall serve for terms of one year, as des-
ignated by the President at the time of nomination
for appointment.
Any appointed member who has been a member of the
Board for more than seven consecutive years shall there-
after be ineligible for reappointment to the Board during
the three-year period following the expiration of the last
such consecutive year. Notwithstanding any other provi-
sion of this subsection, a member shall serve after the ex-
piration of such member’s term of office until such mem-
ber’s successor takes office.
‘‘(c) The Chairperson of the Board shall be des-
ignated by the President from among the appointed mem-
bers of the Board. Except as provided in subsection (d)(2)
of this section, eight appointed members of the Board
shall constitute a quorum.
‘‘(d) The Board shall meet at the call of the Chair-
person, except that—
‘‘(1) it shall meet not less than three times each
year; and
‘‘(2) it shall meet whenever one-third of the ap-
pointed members request a meeting in writing, in
which event seven of the appointed members shall
constitute a quorum.
‘‘(e) Members of the Board who are not in the regular
full-time employ of the United States shall receive, while
engaged in the business of the Board, compensation for
service at a rate to be fixed by the President, except that
such rate shall not exceed the maximum rate of pay pay-
able under section 5376 of title 5, United States Code,
including traveltime, and, while so serving away from their
homes or regular places of business, they may be allowed
travel expenses, including per diem in lieu of subsistence,
as authorized by section 5703 of title 5, United States
Code, for persons employed in Government service.
‘‘(f) The Board shall have the responsibility for the
general policies with respect to the powers, duties, and au-
thorities vested in the Institute under this title. The Direc-
tor shall make available to the Board such information
and assistance as may be necessary to enable the Board
to carry out its functions.
‘‘(g) The Board shall, with the advice of the Director,
take steps to assure that the policies and purposes of the
Institute are coordinated with other activities of the Fed-
eral Government.
‘‘SEC. 404. DIRECTOR OF THE INSTITUTE.
‘‘(a)(1) The Director of the Institute shall be ap-
pointed by the President, by and with the advice and con-
sent of the Senate, and shall serve at the pleasure of the
President. The Director shall perform such duties and ex-
ercise such powers as the Board may prescribe.
‘‘(2) The Director shall not delegate any of the Direc-
tor’s functions to any other officer who is not directly re-
sponsible to the Director.
‘‘(b) The Director shall advise the Board regarding
policies of the Institute to assure coordination of the Insti-
tute’s activities with other agencies and organizations of
the Federal Government having interest in and respon-
sibilities for the improvement of museums. Such Govern-
ment agencies shall include the National Endowment for
the Arts, the National Endowment for the Humanities,
the National Science Foundation, appropriate units in the
Department of Education, the Library of Congress, and
the Smithsonian Institution and related organizations.
‘‘(c) The Director may appoint without regard to the
provisions of title 5, United States Code, governing ap-
pointment in the competitive service and may compensate
without regard to the provisions of chapter 51 or sub-
chapter III of chapter 53 of such title relating to classi-
fication and General Schedule pay rates not to exceed one-
fifth of the number of full-time regular technical or profes-
sional employees of the Institute. The rate of basic com-
pensation for such employees may not equal or exceed
minimum rate of pay payable under section 5376 of title
5 of the United States Code.
‘‘SEC. 405. ACTIVITIES OF THE INSTITUTE.
‘‘(a) The Director, subject to the policy direction of
the Board, is authorized to make grants to museums to
increase and improve museum services, through such ac-
tivities as—
‘‘(1) programs to enable museums to construct
or install displays, interpretations, and exhibitions in
order to improve their services to the public;
‘‘(2) assisting them in developing and maintain-
ing professionally-trained or otherwise experienced
staff to meet their needs;
‘‘(3) assisting them to meet their administrative
costs in preserving and maintaining their collections,
exhibiting them to the public, and providing edu-
cational programs to the public through the use of
their collections;
‘‘(4) assisting museums in cooperation with
each other in the development of traveling exhibi-
tions, meeting transportation costs, and identifying
and locating collections available for loan;
‘‘(5) assisting them in conservation of their col-
lections; and
‘‘(6) developing and carrying out specialized
programs for specific segments of the public, such as
programs for urban neighborhoods, rural areas, In-
dian reservations, and penal and other State institu-
tions.
‘‘(b)(1) The Director, subject to the policy direction
of the National Museum Services Board, is authorized to
enter into contracts and cooperative agreements to provide
financial assistance in order to undertake projects de-
signed to strengthen museum services, except that any
contracts or cooperative agreements entered into pursuant
to this subsection shall be effective only to such extent
or in such amounts as are provided in appropriations Acts.
‘‘(2) No financial assistance may be provided under
this subsection to pay for operational expenses.
‘‘(3) The aggregate amount of financial assistance
made under this subsection shall not exceed 15 percent
of the amount appropriated under this title for such fiscal
year.
‘‘(c) Grants, contracts, and cooperative agreements
under this section for any fiscal year may not exceed 50
per centum of the cost of the program for which the grant
or financial assistance is made, except that not more than
20 per centum of the funds available under this section
for any fiscal year may be available for grants or financial
assistance in such fiscal year without regard to such limi-
tation.
‘‘(d) The Director shall establish procedures for re-
viewing and evaluating grants, contracts, and cooperative
agreements made or entered into under this section. Pro-
cedures for reviewing grant applications or contracts and
cooperative agreements for financial assistance under this
section shall not be subject to any review outside of the
Institute.
‘‘SEC. 406. CONTRIBUTIONS.
‘‘The Institute shall have authority to solicit, receive,
accept, and invest in the name of the United States,
grants, gifts, or bequests of money and other property or
services and to use such funds in furtherance of the func-
tions of the Institute. Such grants, gifts, or bequests, after
acceptance by the Institute, shall be paid by the donor
or his representative to the Treasurer of the United States
whose receipt shall be their acquittance. The Treasurer
of the United States shall enter them in a special interest-
bearing account to the credit of the Institute for the pur-
poses in each case specified.
‘‘SEC. 407. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) For the purpose of making grants under section
405(a), there are authorized to be appropriated and such
sums as may be necessary for fiscal years 1996 through
2001.
‘‘(b) There are authorized to be appropriated such
sums as may be necessary to administer the provisions of
this title.
‘‘(c) Sums appropriated pursuant to subsection (a)
of this section for any fiscal year shall remain available
for obligation and expenditure until expended.
‘‘(d) For the purpose of enabling the Institute to
carry out its functions under this title, there is authorized
to be appropriated for each fiscal year ending before Octo-
ber 1, 2001, an amount equal to the amount contributed
during such fiscal year period to the Institute under sec-
tion 406.
‘‘SEC. 408. DEFINITIONS.
‘‘For the purpose of this title, the term—
‘‘(1) ‘Board’ means the National Museum Serv-
ices Board established under section 402;
‘‘(2) ‘Director’ means the Director of the Insti-
tute established under section 402;
‘‘(3) ‘Institute’ means the Institute of Museum
Services established under section 402; and
‘‘(4) ‘museum’ means a public or private non-
profit agency or institution organized on a perma-
nent basis for essentially educational or esthetic pur-
poses, which, utilizing a professional staff, owns or
utilizes tangible objects, cares for them, and exhibits
them to the public on a regular basis.
‘‘TITLE V—AMERICAN CULTURAL
TRUST FUND
‘‘SEC. 501. ESTABLISHMENT OF AMERICAN CULTURAL
TRUST FUND.
‘‘There is hereby established in the Treasury a revolv-
ing fund to be known as the ‘American Cultural Trust
Fund’ (hereinafter in this title referred to as the ‘Fund’).
‘‘SEC. 502. ADMINISTRATION OF TRUST FUND.
‘‘(a) INVESTMENTS—Monies appropriated to the
Fund shall be invested by the Secretary of the Treasury.
Proceeds of investments shall be deposited in the Fund.
‘‘(b) TRIGGER FOR DISTRIBUTION OF ACCUMULATED
INVESTMENT
PROCEEDS.—Whenever 
the 
aggregate
amount of proceeds deposited under subsection (a) in the
Fund equals $700,000,000, all investment proceeds then
and subsequently on deposit in the Fund shall be distrib-
uted in accordance with subsection (c) by the Secretary
of the Treasury as follows:
‘‘(1) 25 percent to the National Endowment for
the Arts.
‘‘(2) 26 percent to the National Endowment for
the Humanities.
‘‘(3) 4 percent to the Institute of Museum Serv-
ices.
‘‘(4) 45 percent to the Corporation for Public
Broadcasting.
‘‘(c) ANNUAL DISTRIBUTION OF ACCUMULATED IN-
VESTMENT PROCEEDS.—On the first October 1 occurring
after a condition specified in subsection (b) is satisfied,
and on each October 1 thereafter, the Secretary of the
Treasury shall distribute in accordance with paragraphs
(1) through (4) of such subsection the investment proceeds
then on deposit in the fund.
‘‘(d) AUTHORIZATION
OF
APPROPRIATIONS.—(1)
Subject to paragraph (2), there are authorized to be ap-
propriated to the Fund for fiscal year 1996, and for each
fiscal year thereafter, an amount equal to 1 percent of
the difference between the total budget outlays and the
budget outlays for gross interest on the public debt, for
such fiscal year as set forth in the then most recently
agreed to concurrent resolution on the budget for such fis-
cal year.
‘‘(2) No funds are authorized to be appropriated
under paragraph (1) for any fiscal year beginning on or
after the date on which the Secretary of the Treasury first
distributes investment proceeds in accordance with sub-
section (c).
‘‘(e) CONFORMING CHANGES.—No funds are author-
ized to be appropriated to the National Endowment for
the Arts, the National Endowment for the Humanities,
the Institute of Museum Services, or the Corporation for
Public Broadcasting for any fiscal year beginning on or
after the date on which the Secretary of the Treasury first
distributes investment proceeds in accordance with sub-
section (c).
‘‘(f) REFERENCES.—For purposes of—
‘‘(1) title II investment proceeds distributed
under subsection (c) to the National Endowment for
the Arts shall be deemed to be funds appropriated
to carry out such title;
‘‘(2) title III investment proceeds distributed
under subsection (c) to the National Endowment for
the Humanities shall be deemed to be funds appro-
priated to carry out such title;
‘‘(3) title IV investment proceeds distributed
under subsection (c) to the Institute for Museum
Services shall be deemed to be funds appropriated to
carry out such title; and
‘‘(4) section 396 of the Communications Act of
1934 (47 U.S.C. 396), investment proceeds distrib-
uted under subsection (c) to the Corporation for
Public Broadcasting shall be deemed to be funds ap-
propriated to carry out such section.’’.
(b) CONFORMING AMENDMENT.—The Museum Serv-
ices Act (10 U.S.C. 961–969) is repealed.
SEC. 3. EFFECTIVE DATE.
This Act and the amendments made by this Act shall
take effect on October 1, 1995.
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