An act to amend the National Foundation on the Arts and the Humanities Act of 1965 and the Museum Services Act to extend the authorization of appropriations contained in such Acts, to amend the Arts and Artifacts Indemnity Act to make certain changes in the coverage provisions of such Act, and for other purposes.
PL 96-496 (S.1386), enacted 12/04/1980

PUBLIC LAW 96-496—DEC. 4, 1980 
94 STAT. 2583 
Public Law 96-496 
96th Congress 
An Act 
To amend the National Foundation on the Arts and the Humanities Act of 1965 and 
——'-
the Museum Services Act to extend the authorizations of appropriations con- 
[S. 1386] 
tained in such Acts, to amend the Arts and Artifacts Indemnity Act to make 
certain changes in the coverage provisions of such Act, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Arts and 
Humanities Act 
SHORT TITLE 
of 1980. 
SECTION 1. This Act may be cited as the "Arts and Humanities Act 20 use 951 note, 
of 1980". 
TITLE I—AMENDMENTS TO NATIONAL FOUNDATION ON 
THE ARTS AND THE HUMANITIES ACT OF 1965 
DEFINITIONS 
SEC. 101. (a) Section 3(a) of the National Foundation on the Arts 
and the Humanities Act of 1965 (20 U.S.C. 952(a)) is amended by 
striking out "theory, and practice" and inserting in heu thereof "and 
theory". 
(b) Section 3(d)(1)(B) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 952(d)(1)(B)) is amended by insert-
ing "or the National Council on the Humanities, as the case may be" 
after "Arts". 
(c) Section 3(g) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 952(g)) is amended by inserting 
"the Northern Mariana Islands," after "American Samoa,". 
NATIONAL ENDOWMENT FOR THE ARTS 
SEC. 102. (a) Section 5(c) of the National Foundation on the Arts and 
the Humanities Act of 1965 (20 U.S.C. 954(c)) is amended— 
(1) by inserting "or loans" after "grants-in-aid"; 
(2) in paragraph (1) thereof, by inserting "and cultural diver-
sity" after "American creativity"; 
(3) by redesignating paragraph (5) thereof as paragraph (6) 
thereof, and by inserting after paragraph (4) thereof the follow-
ing new paragraph: 
"(5) programs for the arts at the local level; and"; and 
(4) by adding at the end thereof the following new sentence: 
"Any loans made by the Chairman under this subsection shall be 
made in accordance with terms and conditions approved by the 
Secretary of the Treasury.". 
(b)(1) Section 5(g)(2)(A) of the National Foundation on the Arts and 
the Humanities Act of 1965 (20 U.S.C. 954(g)(2)(A)) is amended by 
striking out ", except that" and all that follows through the end 
thereof and inserting in lieu thereof a semicolon. 
94 STAT. 2584 
PUBLIC LAW 96-496—DEC. 4, 1980 
"State." 
Ante, p. 2583. 
Interagency 
agreements. 
(2) Section 5(g)(4) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 954(g)(4)) is amended by adding at 
the end thereof the following new subparagraph: 
"(E) For purposes of paragraph (3)(B), the term 'State' includes, in 
addition to the several States of the Union, only those special 
jurisdictions specified in section 3(g) which have a population of 
200,000 or more, according to the latest decennial census.". 
(c) Section 5(k) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 954(k)) is amended by adding at the 
end thereof the following new sentence: "The Chairman may enter 
into interagency agreements to promote or assist with the arts-
related activities of other Federal agencies, on a reimbursable or 
nonreimbursable basis, and may use funds authorized to be appropri-
ated for the purposes of subsection (c) for the costs of such activities.". 
(d) Section 5(1)(1) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 954(1)(1)) is amended— 
(1) by inserting ", on a national, State, or local level," after 
"private nonprofit organizations"; 
(2) by inserting "strengthening quality by" after "for the 
purpose of; and 
(3) by redesignating subparagraph (D) and subparagraph (E) as 
subparagraph (E) and subparagraph (F), respectively, and by 
inserting after subparagraph (C) the following new subpara-
graph: 
"(D) providing additional support for cooperative efforts under-
taken by State arts agencies with local arts groups to promote 
effective arts activity at the State and local level, including 
support of professional artists in community-based residencies;". 
(e) Section 5 of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 954) is amended by striking out 
subsection (m). 
NATIONAL COUNCIL ON THE ARTS 
SEC. 103. Section 6(c) of the National Foundation on the Arts and 
the Humanities Act of 1965 (20 U.S.C. 955(c)) is amended by inserting 
after the first sentence thereof the following new sentence: "The 
terms of office of all Council members shall expire on the third day of 
September in the year of expiration.". 
Ante, p. 2583. 
Grants, 
application and 
plan. 
NATIONAL ENDOWMENT FOR THE HUMANITIES 
SEC. 104. (a)(1) Section 7(f)(2) of the National Foundation on the 
Arts and the Humanities Act of 1965 (20 U.S.C. 956(f)(2)) is amended 
to read as follows: 
"(2)(A) Whenever a State desires to designate or to provide for the 
establishment of a State agency as the sole agency for the administra-
tion of the State plan, such State shall designate the humanities 
council in existence on the date of the enactment of the Arts and 
Humanities Act of 1980, as the State agency, and shall match from 
State funds a sum 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 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 subsec-
tion, 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 
PUBLIC LAW 96-496—DEC. 4, 1980 
94 STAT. 2585 
application for grants and accompany such application with a plan 
which the Chairman finds— 
"(i) designates or provides for the establishment 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 of the State will appoint 
new members to the State humanities 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 has appointed 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 
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, which-
ever is greater, for the fiscal year involved; 
"(iv) provides that funds paid to the State under this subsection 
will be expended solely on programs approved by the State 
agency which carry out the objectives of subsection (c) and which 
are designed to bring the humanities to the public; 
"(v) provides assurances that State funds will be newly appro-
priated for the purpose of meeting the requirements of this 
subparagraph; and 
"(vi) provides that the State agency will make such reports, in Reports 
such form and containing such information, as the Chairman 
may require. 
"(B) In any State in which the chief executive officer of the State 
fails to submit an application under subparagraph (A), the grant 
recipient in such State shall— 
"(i) establish a procedure which assures that four members of 
the governing body of such grant recipient shall be appointed by 
an appropriate officer or agency of such State, except that in no 
event may the number of such members exceed 20 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 received by such grant recipient 
under this subsection for the fiscal year involved.". 
(2) Section 7(f)(3) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 956(f)(3)) is amended to read as 
follows: 
"(3) Whenever a State selects to receive Federal financial assist-
ance 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 Chairman. Each such application shall be accompa-
nied by a plan which the Chairman finds— 
"(A) provides assurances that the grant recipient will comply 
with the requirements of paragraph (2)(B); 
"(B) provides that funds paid to the grant recipient will be 
expended solely on programs which carry out the objectives of 
subsection (c); 
"(C) establishes a membership policy which is designed to 
assure broad public representation with respect to programs 
administered by such grant recipient; 
Grant recipient, 
application 
procedure. 
Federal 
assistance, 
application and 
plan. 
94 STAT. 2586 
PUBLIC LAW 96-496—DEC. 4, 1980 
Reports. 
Funds, allotment 
percentages. 
"(D) provides a nomination process which assures opportuni-
ties for nomination to membership from various groups within 
the State involved and from a variety of segments of the popula-
tion 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 process which assures 
the regular rotation of the membership 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 access to informa-
tion relating to such activities; and 
"(H) provides that such grant recipient will make reports to 
the Chairman, in such form, at such times, and containing such 
information, as the Chairman may require.". 
(3)(A) The first sentence of section 7(f)(4) of the National Founda-
tion on the Arts and the Humanities Act of 1965 (20 U.S.C. 956(f)(4)) is 
amended by inserting "State and each" before "grant recipient". 
(B) The second sentence of section 7(f)(4) of the National Founda-
tion on the Arts and the Humanities Act of 1965 (20 U.S.C. 956(f)(4)) is 
amended by inserting "States and" before "grant recipients". 
(C) Section 7(f)(4) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 956(f)(4)) is amended by striking out 
subparagraph (A) and subparagraph (B) and inserting in lieu thereof 
the following new subparagraphs: 
"(A) 34 per centum of the amount of such excess for such fiscal 
year shall be available to the Chairman for making grants under 
this subsection to States and regional groups and entities apply-
ing for such grants; 
"(B) 44 per centum of the amount of such excess for such fiscal 
year shall be allotted in equal amounts among the States and 
grant recipients which have plans approved by the Chairman; 
and 
"(C) 22 per centum of the amount of such excess for such fiscal 
year shall be allotted among the States and grant recipients 
which have plans approved by the Chairman 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 population of the State in which such 
grant recipient is located) bears to the population of all the 
States.". 
(4)(A) Section 7(f)(5)(A) of the National Foundation on the Arts and 
Humanities Act of 1965 (20 U.S.C. 956(f)(5)(A)) is amended by striking 
out "Whenever the provisions of paragraph (3)(B) of this subsection 
apply in any State, that part of any" and inserting in lieu thereof the 
following: "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 application approved by the Chairman 
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". 
(B) Section 7(f)(5)(B) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 956(f)(5)(B)) is amended by insert-
ing "State agency or" before "grant recipient". 
PUBLIC LAW 96-496—DEC. 4, 1980 
94 STAT. 2587 
(C) Section 7(f)(5) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 956(f)(5)) is amended by adding at 
the end thereof the following new subparagraph: 
"(E) For purposes of paragraph (4)(B), the term 'State' and the term 
'grant recipient' include, in addition to the several States of the 
Union, only those special jurisdictions specified in section 3(g) which 
have a population of 200,000 or more, according to the latest decen-
nial census.". 
(5) Section 7(f)(7) of the National Foundation on the Arts and 
Humanities Act of 1965 (20 U.S.C. 956(f)(7)) is amended— 
(A) in subparagraph (A) thereof, by inserting "group or" before 
"grant recipient"; 
(B) in subparagraph (B) thereof, by inserting "State agency or" 
before "grant recipient", and by striking out "plan" and insert-
ing in lieu thereof "State plan or grant recipient application"; 
(C) in subparagraph (C) thereof, by inserting "group or State 
agency or" before "grant recipient"; and 
(D) in the matter following subparagraph (C) thereof, by 
inserting "group, State agency, or" before "grant recipient" each 
place it appears therein. 
(6) Section 7(f)(8) of the National Foundation on the Arts and 
Humanities Act of 1965 (20 U.S.C. 956(f)(8)) is amended by striking out 
"paragraphs (4), (5), and (6)" and inserting in lieu thereof "the third 
sentence of paragraph (4), and paragraphs (5) and (6)". 
(b) Section 7(g) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 956(g)) is amended by inserting 
"agency or" before "entity". 
(c) Section 7 of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 956) is amended by adding at the 
end thereof the following new subsection: 
"(i) The Chairman may enter into interagency agreements to 
promote or assist with the humanities-related activities of other 
Federal agencies, on either a reimbursable or nonreimbursable basis, 
and may use funds authorized to be appropriated for the purposes of 
subsection (c) for the costs of such activities.". 
"State." 
"Grant 
recipient." 
Interagency 
agreements. 
NATIONAL COUNCIL ON THE HUMANITIES 
SEC. 105. Section 8(f) of the National Foundation on the Arts and 
the Humanities Act of 1965 (20 U.S.C. 957(f)) is amended by striking 
out "$17,500" and inserting in lieu thereof "$30,000". 
FEDERAL COUNCIL ON THE ARTS AND THE HUMANITIES 
SEC. 106. (a) Section 90?) of the National Foundation on the Arts 
and the Humanities Act of 1965 (20 U.S.C. 958(b)) is amended by 
inserting 
"the 
Commissioner 
on 
Aging," 
after 
"Services 
Administration,". 
Qo) Section 9(c) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 958(c)) is amended— 
(1) in paragraph (4) thereof, by striking out "and" at the end 
thereof; 
(2) in paragraph (5) thereof, by striking out the period at the 
end thereof and inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following new paragraph: 
"(6) undertake studies and make reports which address the 
state of the arts and humanities, particularly with respect to 
their economic needs and problems. . 
94 STAT. 2588 
PUBLIC LAW 96-496—DEC. 4, 1980 
Study. 
29 u s e 801 note. 
Report to 
President and 
Congress. 
Ante, p. 2583. 
Study. 
Report to 
President and 
Congress. 
Ante, p. 2583. 
(c) Section 9 of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 958) is amended by adding at the 
end thereof the following new subsections: 
"(d)(1) The Council shall conduct a study of the state of employment 
opportunities for professional artists. Such study shall be undertaken 
in cooperation and consultation with the Secretary of Labor and shall 
address in particular (A) the effectiveness of existing Federal pro-
grams, such as programs administered under the Comprehensive 
Employment and Training Act, in serving and enhancing the employ-
ment opportunities of professional artists; and (B) the need for new 
programs to serve and enhance the employment opportunities of 
professional artists. 
"(2) Not later than one year after the date of the enactment of the 
Arts and Humanities Act of 1980, the Chairman of the Council shall 
submit a report to the President and to the Congress relating to the 
results of the study required in paragraph (1), including such findings 
and recommendations (including legislative recommendations) as 
may be appropriate. Any recommendation involving changes in 
Federal legislation shall be accompanied by draft legislation. 
"(3) Notwithstanding any other provision of law, no Federal agency 
or officer of the Federal Government shall have any authority to 
require the Council to submit the report required in paragraph (2) to 
any Federal agency or officer of the Federal Government for 
approval, comments, or review, before submission of such report to 
the Congress. The President may make such additional comments 
and recommendations with respect to the contents of such report as 
he may deem appropriate. 
"(e)(1) The Council shall conduct a study of (A) the effectiveness of 
the program authorized by the Arts and Artifacts Indemnity Act (20 
U.S.C. 971 et seq.); (B) the impact and feasibility of expanding the 
existing indemnity program to include the indemnification of objects 
loaned by lenders located in the United States for exhibition exclu-
sively in the United States; and (C) other means to encourage and 
facilitate the wider sharing within the United States of the items 
described in section 3(a) of the Arts and Artifacts Indemnity Act (20 
U.S.C. 972(a)), such as the development of standardized insurance 
policies and the development of a Federal technical assistance pro-
gram to improve the curatorial facilities and personnel of museums. 
"(2) Not later than one year after the date of the enactment of the 
Arts and Humanities Act of 1980, the Chairman of the Council shall 
submit a report to the President and to the Congress relating to the 
results of the study required in paragraph (1), including such findings 
and recommendations (including legislative recommendations) as 
may be appropriate. Any recommendation involving changes in 
Federal legislation shall be accompanied by draft legislation.". 
ADMINISTRATIVE PROVISIONS 
SEC. 107. (a) Section 10(a)(4) of the National Foundation on the Arts 
and the Humanities Act of 1965 (20 U.S.C. 959(a)(4)) is amended by 
inserting "and culturally diverse" after "geographic". 
(b) Section 10(b) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 959(b)) is amended by striking out 
"January" and inserting in lieu thereof "April". 
(c) Section 10(c) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 959(c)) is amended by striking our 
"January" and inserting in lieu thereof "April". 
PUBLIC LAW 96-496—DEC. 4, 1980 
94 STAT. 2589 
(d) Section 10 of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 959) is amended by adding at the 
end thereof the following new subsection: 
"(d)(1) The Chairman of the National Endowment for the Arts and 
the Chairman of the National Endowment for the Humanities each 
shall conduct a study of the use, sale, or other disposal of property 
under subsection (a)(2) for the purpose of carrying out sections 5(c) 
and 7(c). Each such study shall assess in particular (A) the effective-
ness of such use, sale, or other disposal of property as an incentive for 
increasing the levels of non-Federal support; and (B) the extent to 
which activities carried out by each such Chairman under subsection 
(a)(2) result in undue administrative and financial burdens upon 
grant recipients. 
"(2) Not later than two years after the date of the enactment of the 
Arts and Humanities Act of 1980, each Chairman shall submit a 
report to the President and to the Congress relating to the results of 
the studies required in paragraph (1), including such findings and 
recommendations (including legislative recommendations) as may be 
appropriate. Any recommendation involving changes in Federal 
legislation shall be accompanied by draft legislation.". 
Study. 
Ante, p. 2583. 
20 u s e 956. 
Report to 
President and 
Congress. 
Ante, p. 2583. 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 108. (a) The first sentence of section 11(a)(1)(A) of the National 
Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 
960(a)(1)(A)) is amended to read as follows: "For the purpose of 
carrying out section 5(c), there are authorized to be appropriated to ^"^«' P- 2583. 
the National Endowment for the Arts $115,500,000 for fiscal year 
1981, $127,000,000 for fiscal year 1982, $140,000,000 for fiscal year 
1983, $154,000,000 for fiscal year 1984, and $170,000,000 for fiscal 
year 1985.". 
(b) The first sentence of section 11(a)(1)(B) of the National Founda-
tion on the Arts and the Humanities Act of 1965 (20 U.S.C. 
960(a)(1)(B)) is amended to read as follows: "For the purpose of 
carrying out section 7(c), there are authorized to be appropriated to 20 USC 956. 
the National Endowme^^t for the Humanities $114,500,000 for fiscal 
year 1981, $126,000,000 f->r fiscal year 1982, $138,500,000 for fiscal 
year 1983, $152,000,000 for fiscal year 1984, and $167,500,000 for 
fiscal year 1985.". 
(c) Section 11(a)(2) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 960(a)(2)) is amended to read as 
follows: 
"(2)(A) There are authorized to be appropriated for each fiscal year 
ending before October 1, 1985, to the National Endowment for the 
Arts an amount equal to the sum o
f
— 
"(i) the total amounts received by such Endowment under 
section 10(a)(2), including the value of property donated, 20 USC 959. 
bequeathed, or devised to such Endowment; and 
"(ii) the total amounts received by the grantees of such Endow-
ment from non-Federal sources, including the value of property 
donated, bequeathed, or devised to such grantees, for use in 
carrying out projects and other activities under paragraph (1) 
through paragraph (5) of section 5(c); 
Ante, p. 2583. 
except that the amounts so appropriated to the National Endowment 
for the Arts shall not exceed $18,500,000 for fiscal year 1981, 
$18,500,000 for fiscal year 1982, $18,500,000 for fiscal year 1983, 
$20,000,000 for fiscal year 1984, and $22,500,000 for fiscal year 1985. 
94 STAT. 2590 
PUBLIC LAW 96-496—DEC. 4, 1980 
"(B) There are authorized to be appropriated for each fiscal year 
ending before October 1, 1985, to the National Endowment for the 
Humanities an amount equal to the sum of— 
"(i) the total amounts received by such Endowment under 
20 use 959. 
section 10(a)(2), including the value of property donated, 
bequeathed, or devised to such Endowment; and 
(ii) the total amounts received by the grantees of such Endow-
ment from non-Federal sources, including the value of property 
donated, bequeathed, or devised to such grantees, for use in 
carrying out activities under paragraph (1) through paragraph 
20 use 956. 
(7) of section 7(c); 
except that the amounts so appropriated to the National Endowment 
for the Humanities shall not exceed $12,500,000 for fiscal year 1981, 
$14,000,000 for fiscal year 1982, $15,000,000 for fiscal year 1983, 
$16,500,000 for fiscal year 1984, and $18,500,000 for fiscal year 1985.". 
(d) Section 11(a)(3)(A) of the National Foundation on the Arts and 
the Humanities Act of 1965 (20 U.S.C. 960(a)(3)(A)) is amended to read 
as follows: 
"(3)(A) There are authorized to be appropriated for each fiscal year 
ending before October 1, 1985, to the National Endowment for the 
Arts an amount equal to the sum o
f
— 
"(i) the total amounts received by such Endowment, including 
the value of property donated, bequeathed, or devised to such 
Ante, p. 2584. 
Endowment, for the purposes set forth in section 5(1)(1) pursuant 
20 use 959. 
to the authority of section 10(a)(2); and 
"(ii) the total amounts received by the grantees of such Endow-
ment from non-Federal sources, including the value of property 
donated, bequeathed, or devised to such grantees, for use in 
carrying out activities under subparagraph (A) through subpara-
Ante, p. 2584. 
graph (F) of section 5(1)(1); 
except that the amounts so appropriated to such Endowment shall 
not exceed $27,000,000 for fiscal year 1981, $30,000,000 for fiscal year 
1982, $32,500,000 for fiscal year 1983, $36,000,000 for fiscal year 1984, 
and $40,000,000 for fiscal year 1985.". 
(e) Section 11(a)(3)(B) of the National Foundation on the Arts and 
the Humanities Act of 1965 (20 U.S.C. 960(a)(3)(B)) is amended to read 
as follows: 
"(B) There are authorized to be appropriated for each fiscal year 
ending before October 1, 1985, to the National Endowment for the 
Humanities an amount equal to the sum of— 
"(i) the total amounts received by such Endowment, including 
the value of property donated, bequeathed, or devised to such 
20 use 956. 
Endowment, for the purposes set forth in section 7(h)(1) pursuant 
to the authority of section 10(a)(2); and 
"(ii) the total amounts received by the grantees of such Endow-
ment from non-Federal sources, including the value of property 
donated, bequeathed, or devised to such grantees, for use in 
carrying out activities under subparagraph (A) through subpara-
graph (F) of section 7(h)(1); 
except that the amounts so appropriated to such Endowment shall 
not exceed $30,000,000 for fiscal year 1981, $33,000,000 for fiscal year 
1982, $36,000,000 for fiscal year 1983, $40,000,000 for fiscal year 1984, 
and $44,000,000 for fiscal year 1985.". 
(f) Section 11(a)(4) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 960(a)(4)) is amended to read as 
follows: 
"(4) The Chairman of the National Endowment for the Arts and the 
Chairman of the National Endowment for the Humanities, as the 
PUBLIC LAW 96-496—DEC. 4, 1980 
94 STAT. 2591 
case may be, shall issue guidelines to implement the provisions of 
paragraph (2) and paragraph (3). Such guidelines shall be consistent 
with the requirements of section 5(e), section 5(1)(2), section 7(f), and 
section 7(h)(2), as the case may be, regarding total Federal support of 20 use 954, 956. 
activities, programs, projects, or productions carried out under 
authority of this Act.". 
(g) Section 11(c) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 960(c)) is amended to read as 
follows: 
"(c)(1) There are authorized to be appropriated to the National 
Endowment for the Arts $14,000,000 for fiscal year 1981, $15,000,000 
for fiscal year 1982, $16,000,000 for fiscal year 1983, $17,000,000 for 
fiscal year 1984, and $18,000,000 for fiscal year 1985, to administer 
the provisions of this Act, or any other program for which the 
Chairman of the National Endowment for the Arts is responsible, 
including not to exceed $35,000 for each such fiscal year for official 
reception and representation expenses. The total amount which may 
be obligated or expended for such expenses for any fiscal year 
through the use of appropriated funds or any other source of funds 
shall not exceed $35,000. 
"(2) There are authorized to be appropriated to the National 
Endowment for the Humanities $13,000,000 for fiscal year 1981, 
$14,500,000 for fiscal year 1982, $15,500,000 for fiscal year 1983, 
$16,500,000 for fiscal year 1984, and $17,500,000 for fiscal year 1985, to 
administer the provisions of this Act, or any other program for which 
the Chairman of the National Endowment for the Humanities is 
responsible, including not to exceed $35,000 for each such fiscal year 
for official reception and representation expenses. The total amount 
which may be obligated or expended for such expenses for any fiscal 
year through the use of appropriated funds or any other source of 
funds shall not exceed $35,000.". 
TECHNICAL AMENDMENTS 
SEC. 109. (a) The last sentence of section 5(c) of the National 
Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 
954(c)) is amended by striking out "Labor and Public Welfare" and 
inserting in lieu thereof "Labor and Human Resources". 
(b) Section 5(g)(4)(A) of the National Foundation on the Arts and 
the Humanities Act of 1965 (20 U.S.C. 954(g)(4)(A)) is amended by 
striking out "project" the last place it appears therein and inserting 
in lieu thereof "projects". 
(c) The last sentence of section 7(c) of the National Foundation on 
the Arts and the Humanities Act of 1965 (20 U.S.C. 956(c)) is amended 
by striking out "Labor and Public Welfare" and inserting in lieu 
thereof "Labor and Human Resources". 
(d) Section 9(b) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 958(b)) is amended by striking out 
"United States Commissioner of Education" and inserting in lieu 
thereof "Secretary of Education". 
TITLE II—MUSEUM SERVICES 
AMENDMENTS TO MUSEUM SERVICES ACT 
SEC. 201. (a) Section 203 of the Museum Services Act (20 U.S.C. 962) 
is amended by striking out "Health, Education, and Welfare" and 
inserting in lieu thereof "Education". 
79-194 
O—81—pt. 2 
83 : QL3 
94 STAT. 2592 
PUBLIC LAW 96-496—DEC. 4, 1980 
20 u s e 964. 
20 u s e 964. 
eompetitive 
service 
employees. 
20 u s e 964. 
5 u s e 101. 
5 u s e 5101 et 
seq., 5331. 
5 u s e 5332 note. 
eontracts and 
cooperative 
agreements. 
"Professional 
museum 
organization." 
Review and 
evaluation 
procedures. 
(b) Section 204(a)(2)(A)(v) of the Museum Services Act (20 U.S.C. 
963(a)(2)(A)(v)) is amended by striking out "Commissioner of Educa-
tion" and inserting in lieu thereof "Secretary of Education'*. 
(c)(1) Section 205(a)(2) of the Museum Services Act (20 U.S.C. 
963(a)(2)) is amended bv striking out "to the Secretary of Health, 
Education, and Welfare' and inserting in lieu thereof "directly to the 
Secretary of Education". 
(2) Section 205(b) of the Museum Services Act (20 U.S.C. 963(b)) is 
amended by striking out "Department of Health, Education, and 
Welfare" and inserting in lieu thereof "Department of Education". 
(3) Section 205 of the Museum Services Act (20 U.S.C. 963) is 
amended by adding at the end thereof the following new subsection: 
"(c) The Director may appoint without regard to the provisions of 
title 5, United States Code, governing appointment in the competitive 
service and may compensate without regard to the provisions of 
chapter 51 or subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates not to exceed one-fifth 
of the number of full-time regular technical or professional employ-
ees of the Institute. The rate of basic compensation for such employ-
ees may not equal or exceed the rate prescribed for GS-16 of the 
General Schedule under section 5332 of title 5, United States Code.". 
(d)(1) Section 206 of the Museum Services Act (20 U.S.C. 965) is 
amended by redesignating subsection (b) as subsection (c) and by 
inserting after subsection (a) the following new subsection: 
"(b)(1) The Director, subject to the policy direction of the National 
Museum Services Board, is authorized to enter into contracts and 
cooperative agreements with professional museum organizations to 
provide financial assistance to such organizations in order to enable 
such organizations to undertake projects designed to strengthen 
museum services, except that any contracts or cooperative agree-
ments entered into pursuant to this subsection shall be effective only 
to such extent or in such amounts as are provided in appropriations 
Acts. 
"(2)(A) No financial assistance may be provided under this subsec-
tion for any project for a period in excess of one year. 
"(B) No financial assistance may be provided under this subsection 
to pay for the operational expenses of any professional museum 
organization. 
'(3) The aggregate amount of financial assistance made under this 
subsection to professional museum organizations shall not exceed 5 
percent of the amount appropriated under this Act for such fiscal 
year. 
"(4) For purposes of this subsection, the term 'professional museum 
organization' means a private, nonprofit professional museum-
related organization, institution, or association which engages in 
activities designed to advance the well-being of museums and the 
museum profession.". 
(2) Section 206(c) of the Museum Services Act, as so redesignated in 
paragraph (1), is amended— 
(A) by inserting ", contracts, and cooperative agreements" 
after "Grants"; 
(B) by inserting "or financial assistance" after "grant"; and 
(C) by inserting "or financial assistance" after "grants". 
(3) Section 206 of the Museum Services Act, as amended in 
paragraph (1), is further amended by adding at the end thereof the 
following new subsection: 
"(d) The Director shall establish procedures for reviewing and 
evaluating grants, contracts, and cooperative agreements made or 
PUBLIC LAW 96-496—DEC. 4, 1980 
94 STAT. 2593 
entered into under this section. Procedures 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.". 
(e)(1) Section 209(a) of the Museum Services Act (20 U.S.C. 967(a)) is Appropriation 
amended to read as follows: 
authorization. 
"SEC. 209. (a) For the purpose of making grants under section 
206(a), there are authorized to be appropriated $25,000,000 for fiscal 
year 1981, $30,000,000 for fiscal year 1982, $35,000,000 for fiscal year 
1983, $40,000,000 for fiscal year 1984, and $45,000,000 for fiscal year 
1985 " 
(2) Section 209(d) of the Museum Services Act (20 U.S.C. 967(d)) is 
amended by striking out "1980" and inserting in lieu thereof "1985". 
AMENDMENTS TO DEPARTMENT OF EDUCATION ORGANIZATION ACT 
SEC. 202. Section 413(b)(1) of the Department of Education Organi-
zation Act (20 U.S.C. 3473(b)(1)) is amended by inserting "and" at the 
end of subparagraph (L), by striking out subparagraph (M), and by 
redesignating subparagraph (N) as subparagraph (M). 
TITLE III—AMENDMENTS TO ARTS AND ARTIFACTS 
INDEMNITY ACT 
AGGREGATE AMOUNTS COVERED UNDER INDEMNITY AGREEMENTS 
SEC. 301. Section 5(b) of the Arts and Artifacts Indemnity Act (20 
U.S.C. 974(b)) is amended by striking out "$250,000,000" and inserting 
in lieu thereof "$400,000,000". 
DEDUCTIBLE AMOUNTS UNDER INDEMNITY AGREEMENTS 
SEC 302. Section 5(d) of the Arts and Artifacts Indemnity Act (20 
U.S.C. 974(d)) is amended to read as follows: 
"(d) If the estimated value of the items covered by an indemnity 
agreement for a single exhibition is— 
"(1) $2,000,000 or less, then coverage under this Act shall 
extend only to loss or damage in excess of the first $15,000 of loss 
or damage to items covered; 
"(2) more than $2,000,000 but less than $10,000,000, then 
coverage under this Act shall extend only to loss or damage in 
excess of the first $25,000 of loss or damage to items covered; or 
94 STAT. 2594 
PUBLIC LAW 96-496—DEC. 4, 1980 
"(3) $10,000,000 or more, then coverage under this Act shall 
extend only to loss or damage in excess of the first $50,000 of loss 
or damage to items covered.". 
Approved December 4, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-937 accompanying H.R. 7153 (Comm. on Education and 
Labor). 
SENATE REPORT No. 96-557 (Comm. on Labor and Human Resources). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Feb. 7, considered and passed Senate. 
Nov. 17, H.R. 7153 considered and passed House; passage vacated and S. 1386, 
amended, passed in lieu. 
Nov. 20, Senate concurred in House amendments.