The Library Services and Technology Act (LSTA) was originally adopted as part of the Museum and Library Services Act of 1996, which was enacted on September 30, 1996, as part of P.L. 104-208 , the Omnibus Consolidated Appropriation Act of 1997. The LSTA's authorization expired at the end of FY2002; however, funding was not interrupted. P.L. 108-81 , the Museum and Library Services Act of 2003 (MLSA), reauthorized the LSTA as Title II, Library Services and Technology (LST), of the MLSA. P.L. 108-81 authorized $232 million for Library Services and Technology in FY2004, and such sums as may be necessary for FY2005-FY2009. The bulk of LST funding is distributed to states via formula grants. Funding is also provided for library services for Native Americans, and for national leadership projects. LST grants to the states are allocated to state library administrative agencies (SLAAs), and may be used for the following basic purposes: (a) expanding services for learning and access to information in a variety of formats in all type of libraries, developing and improving electronic or other linkages and networks connecting providers and consumers of library services and resources; and/or (b) targeting library services to under served or disadvantaged populations, such as persons with disabilities, those with limited literacy skills, or children from poor families. Although the bulk of funds appropriated for LST are used for state grants , a percentage of total funds is reserved for national activities, Native Americans , and federal administration . Out of total LST appropriations for a given year, 3.75% must be reserved for national activities . The latter may include competitively awarded grants or contracts for research, demonstrations, preservation, and conversion of materials to digital form, plus education and training for librarians. Congressionally directed grants have also been included in this category, and President Bush's Librarians for the 21 st Century program (described below) is included under this heading. In addition, 1.75% of appropriations is reserved for services to Native Americans (including Indian tribes, Alaskan Natives, and Native Hawaiians), and up to 3.5% of appropriations may be used for federal administration of LST programs. Of the total funding reserved for state grants, each state receives a "flat grant" of $340,000 ($40,000 in the case of outlying areas); remaining funds are allocated on the basis of total population in each state. The federal share of the total costs of assisted activities is 66% in all cases. If there is no year-to-year decline in federal funding for LST, states must maintain levels of spending for library programs, or their LST grants will be reduced in proportion to the reduction in state funding. P.L. 108-81 provides for an increase in minimum state allotments for library services and technology to $680,000, if the amount appropriated for a year, and available for state allotments, exceeds the amount of allotments to all states in FY2003. In addition, minimum state allotments for outlying areas are increased to $60,000, if appropriations in a given year are sufficient to meet the higher state minimums of $680,000. If remaining funds are insufficient to reach $60,000, they are to be distributed equally among outlying areas receiving such funds. However, the level of FY2004 and FY2005 appropriations for the IMLS were not sufficient to trigger the higher state grant amounts authorized by P.L. 108-81 . Participating states are required to develop five-year plans that set goals and priorities consistent with the purposes of LST grants (i.e., to enhance information-sharing networks and target library services to disadvantaged populations). The plans must provide for independent evaluations of federally assisted library services. A wide variety of types of libraries--public, public school, college or university, research (if they provide public access to their collections), and (at state discretion) private libraries--may receive LST aid, not just the public and research libraries eligible for aid under the predecessor legislation, the Library Services and Construction Act (LSCA). No more than 4% of each state's grant may be used for administration; however, there is no limit on the share of funds that can be used at the state level to provide services, as opposed to being allocated to local libraries. Library Services and Technology grants are intended to provide states with considerable latitude in the use of funds. LST funds are allocated within states on a competitive basis by the SLAA. LST is administered by the Institute of Museum and Library Services (IMLS). The IMLS was created through expansion of the previous Institute of Museum Services (IMS). The IMLS contains an Office of Museum Services (OMS) and an Office of Library Services (OLS). The IMLS is under the general aegis of the National Foundation on the Arts and the Humanities, which also includes the National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH). Nevertheless, the Institute acts as an independent agency. The IMLS directorship alternates between persons with "special competence" in library and information services or in museum services. The current IMLS director is Robert Martin, who includes in his past professional experience service as a Director and Librarian of the Texas Library and Archives Commission. At all times, an Office of Library Services within the IMLS is directed by a Deputy Director with a graduate degree in library science, and expertise in library and information services. Table 1 below, shows the FY1997-FY2007 appropriations for Library Services and Technology (LST). For FY2006, LST was funded at $210.597 million. The Administration has requested increasing that funding to $220.855 million in FY2007. The House Committee on Appropriations has recommended $220.855 million in funding for FY2007; the Senate Committee on Appropriations has recommended funding of $213.337 million. The FY2006 budget includes $23.8 million for an initiative first funded in FY2003 to train and recruit librarians, provide scholarships, support distance learning in under served rural areas, and enhance the diversity of librarians to better serve communities. Beginning in FY2003, the OMS and the OLS were combined in one appropriation account within the Labor, Health and Human Services, and Education (L-HHS-ED) Appropriations bill. In the past there had been two funding streams, one account for OMS within the Department of the Interior Appropriations and one for OLS within the L-HHS-ED Appropriations. The federal government has provided direct aid for public libraries since initial adoption of the Library Services and Construction Act (LSCA) in 1956. The 104 th Congress considered legislation to extend and amend LSCA programs, as well as to consolidate these programs with separate authorizations of federal aid to elementary and secondary school and college libraries. The Library Services and Technology Act consolidated and replaced a number of programs under Title VII, Subtitle B of the L-HHS-ED Appropriations Act of 1997 within P.L. 104-208 . These programs included the LSCA, plus library assistance programs authorized by Title II of the Higher Education Act (HEA), and Title III, Part F, of the Elementary and Secondary Education Act (ESEA). P.L. 108-81 , the Museum and Library Services Act of 2003 (MLSA), reauthorized the LSTA as Title II, Library Services and Technology (LST), of the MLSA. While states have had a large degree of discretion in selecting grantees and deciding how funds are to be used under both the former LSCA and the current LST, overall state discretion would appear to be increased under the current program. At the same time, some funds--particularly aid for construction under the former LSCA Title II--were intended for specific purposes that are not authorized for LST grants. In fact, P.L. 108-81 includes a provision explicitly prohibiting the use of funds for construction. The library services and technology provisions of P.L. 108-81 also focus more thoroughly on relatively new forms of information sharing and networking, such as the Internet, than the LSCA. Issues that were discussed during the reauthorization of the LSTA included the adequacy of minimum state grants and overall authorization levels; the need for additional funding to provide for evaluations of the LSTA; and new provisions disallowing grants for projects deemed obscene. On September 25, 2003, the Museum and Library Services Act of 2003 was signed into law ( P.L. 108-81 ). The LSTA was reauthorized as Title II, Library Services and Technology of the MLSA. The major changes regarding Library Services adopted in the reauthorized Museum and Library Services Act of 2003 include the following: prohibiting the funding of projects deemed obscene; defining "obscene" and the term "determined to be obscene"; requiring the Director of the IMLS to establish procedural standards for reviewing and evaluating grants; increasing minimum state allotments for library services to $680,000 if the amount appropriated for a year, and available for state allotments, exceeds the amount of allotments to all states in FY2003 (the level of FY2004 appropriations for the IMLS is not sufficient to trigger the higher state grant amounts authorized by P.L. 108-81 ); increasing minimum state allotments for outlying areas to $60,000, if appropriations in a given year are sufficient to meet the higher state minimums of $680,000. If remaining funds are insufficient to reach $60,000, they are to be distributed equally among outlying areas receiving such funds; authorizing $232 million for Library Services and $38.6 million for Museum Services for FY2004, and such sums as may be necessary for FY2005-FY2009; locating advisory functions (which for libraries were previously delegated to the National Commission on Libraries and Information Sciences) within a new National Museum and Library Services Board (previously solely a Museum Services Board) in the IMLS; making the Chairman of the National Commission on Library and Information Science a member (nonvoting) of the national Museum and Library Services Board; requiring the Director to carry out and publish analyses of the impact of museum and library services, and increasing from 3% to 3.5% the amount available for federal administrative costs, to provide funding for this new function; prohibiting the use of IMLS funds for construction; and permitting the Director of the IMLS to make national awards for library service, in addition to the already authorized national awards for museum service. H.R. 13 (Hoekstra), a bill to reauthorize Library Services and Technology within the Museum and Library Services Act of 2003, was introduced on January 7, 2003, and was reported favorably by the House Committee on Education and the Workforce on February 13, 2003. H.R. 13 was passed by the full House on March 6, 2003. H.R. 13 , as passed by the House, would have changed the authorization for Library Services and Museum Services to $210 million and $35 million, respectively, for FY2004 and such sums as may be necessary for 2005 through 2009. H.R. 13 contained new provisions that would have required the IMLS Director to establish procedural standards for reviewing and evaluating grants, including a provision prohibiting the funding of projects determined to be obscene. New provisions in H.R. 13 also provided a definition of "obscene" and of the term "determined to be obscene." It would have required the Director to carry out and publish analyses of the impact of museum and library Services, and would have increased from 3% to 3.5% the amount available for federal administrative costs, to provide funding for this new function. H.R. 13 would have located advisory functions (which for libraries were previously delegated to the National Commission on Libraries and Information Sciences) within a new National Museum and Library Services Board (previously solely a Museum Services Board) in the IMLS. It would have permitted the Director of the IMLS to make national awards for library service, in addition to the already authorized national awards for museum service. It would have increased minimum state allotments for Library Services to $680,000, if the amount appropriated for a year, and available for state allotments, exceeded the amount of allotments to all states in FY2003. Finally, the bill would have increased minimum state allotments for outlying areas to $60,000 if appropriations in a given year were sufficient to meet the higher state minimums of $680,000. S. 888 (Gregg), was introduced on April 11, 2003, and reported favorably by the Senate Committee on Health, Education, Labor, and Pensions on May 14, 2003. On August 1, 2003, the Senate incorporated S. 888 into H.R. 13 and passed H.R. 13 in lieu of S. 888 with an amendment by unanimous consent. Authorization levels for FY2004 contained in the Senate passed bill were reduced from the authorization levels contained in S. 888 as reported by the Senate Committee on Health, Education, Labor, and Pensions (from $250 million to $232 million for Library Services and Technology; and from $41.5 to $38.6 million for Museum Services). The Senate-passed bill included the following provisions that were contained in S. 888 as reported by the Senate Committee on Health, Education, Labor, and Pensions, but were not contained in H.R. 13 as passed by the House: provisions that would have made the Chairman of the National Commission on Library and Information Science a member (nonvoting) of the National Museum and Library Services Board; a prohibition against using IMLS funds for construction; and provisions that would have raised liability amounts in the Arts and Artifacts Indemnity Act. S. 238 (Reed) was introduced on January 29, 2003, and was referred to the Senate Committee on Health, Education, Labor and Pensions. The Library Services and Technology provisions of this bill were essentially the same as those in S. 2611 (Reed), introduced in the 107 th Congress. Authorization levels in S. 238 were $350 million for Library Services and Technology and $65 million for Museum Services. S. 238 , however, unlike S. 2611 , also included amendments raising liability amounts in the Arts and Artifacts Indemnity Act.

Summary:
Legislation reauthorizing the Library Services and Technology Act (LSTA) as Title II--Library Services and Technology, of the Museum and Library Services Act of 2003 (MLSA), was signed into law ( P.L. 108-81 ) on September 25, 2003. The LSTA's authorization had expired at the end of FY2002; however, funding was not interrupted. Library Services and Technology (LST) is administered by the Institute of Museum and Library Services (IMLS). The IMLS contains an Office of Museum Services (OMS) and an Office of Library Services (OLS). Beginning in FY2003, the OMS and the OLS were combined in one appropriation account within the Labor, Health and Human Services, and Education (L-HHS-ED) Appropriations bill. In the past there had been two funding streams, one account for OMS within the Department of the Interior Appropriations, and one for OLS within the L-HHS-ED Appropriations. P.L. 108-81 authorized $232 million for LST in FY2004, and such sums as may be necessary for FY2005-FY2009. The bulk of LST funding is distributed to states via formula grants. Funding is also provided for library services for Native Americans, and for national activities. Participating states are required to develop five-year plans that set goals and priorities consistent with LST purposes (i.e., to enhance information-sharing networks and target library services to disadvantaged populations). The plans must provide for independent evaluations of federally assisted library services. A wide variety of types of libraries--public, public school, college or university, research (if they provide public access to their collections), and (at state discretion) private libraries--may receive LST aid. P.L. 108-81 provides for an increase in minimum state allotments for library services to $680,000, if the amount appropriated for a year, and available for state allotments, exceeds the amount of allotments to all states in FY2003. In addition, minimum state allotments for outlying areas are increased to $60,000, if appropriations in a given year are sufficient to meet the higher state minimums of $680,000. Library Services received funding of $210.597 million in FY2006; the Administration has requested increasing that funding to $220.855 million for FY2007. The House Committee on Appropriations has recommended $220.855 million in funding for FY2007; the Senate Committee on Appropriations has recommended funding of $213.337 million. This report will be updated in response to legislative developments.