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Statement on Introduced Bill (House of Representatives - March 16, 1995)Thursday, March 16, 1995 Mrs. MALONEY: Mr. Chairman, I rise in strong opposition to this amendment. Mr. Chairman, I rise in strong opposition to the Stearns amendment to slash funding for the National Endowment for the Arts. In many ways the Contract on America is a declaration of war. A war on children, a war on consumers, a war on the environment, a war on senior citizens. In their budget-cutting zeal, the new majority has proposed $17 billion in rescissions for 1995, almost entirely from programs that make the lives of ordinary Americans a little safer, a little brighter. The Republicans have structured this rescission bill to eliminate any chance that we could even debate cuts to the bloated Defense budget. The Pentagon, of course, has returned to its exalted status as a sacred cow. While they have taken defense off the cutting board, they're making mincemeat out of the arts. The new leadership invests in that which destroys, but destroys that which creates. The contract may sound good on the surface, but its cost cutting rhetoric masks policies that are heartless and mean-spirited. And the contract's war on the arts is nothing short of primitive. The NEA budget for this year is $167 million. Cultural funding is a mere two ten-thousandths of 1 percent of the Federal Government's $1.5 trillion budget. Arts funding costs approximately 64 cents per capita, or the same amount as two postage stamps. According to a recent Lou Harris poll, 60 percent of the American people believe that "the Federal Government should provide financial assistance to arts organizations." According to the same poll, more than half the American people would support paying up to $15 a year to support Federal arts funding. Speaker Gingrich has attacked the NEA as providing patronage for an elite group. In fact, the NEA increases access to arts and culture for all citizens. In the 30 years since the endowments were created, the number of theater, dance, and opera companies across America has increased from 120 to 925. NEA grants work as seed money. They make it easier for recipients to raise money from other sources. Speaker Gingrich and Majority Leader Dick Armey have both stated that the Federal Government has no business making grants to artists and artistic organizations. They say this at a time when violence continues to increase and, in our inner cities, human lives are cheaper by the dozen. I cannot imagine a worse time to cut programs that exalt the human experience, when all around us we see it degraded. Arts advocates who visited my office this week described NEA grants they had received which were used to create arts programs for inner city children. We should be celebrating the contributions of the arts endowments to our country today, rather than trying to destroy them. We should be congratulating the endowments for encouraging creative ideas that help poor children rise above their cruel circumstances. As Christopher Reeve said Tuesday in his speech at the Arts Advocacy Breakfast:
104th CONGRESS
1st Session
H. R. 1520
To amend National Foundation on the Arts and the Humanities Act of
1995; to establish the American Cultural Trust Fund, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 7, 1995
Mr. Williams introduced the following bill; which was referred to the
Committee on Economic and Educational Opportunities
_______________________________________________________________________
A BILL
To amend National Foundation on the Arts and the Humanities Act of
1995; to establish the American Cultural Trust Fund, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
This Act may be cited as the ``1% For Culture Act of 1995''.
SEC. 2. AMENDMENTS.
(a) Amendment to the National Foundation on the Arts and the
Humanities Act of 1965.--The National Foundation on the Arts and the
Humanities Act of 1965 (20 U.S.C. 951-960) is amended to read as
follows:
``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
``(a) Short Title.--This Act may be cited as the `Arts, Humanities,
and Museums Act of 1995'.
``(b) Table of Contents.--The table of contents of this Act is as
follows:
``Sec. 1. Short title; table of contents.
``TITLE I--NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES
``Sec. 101. Declaration of findings and purposes.
``Sec. 102. National Foundation on the Arts and the Humanities.
``TITLE II--NATIONAL ENDOWMENT FOR THE ARTS
``Sec. 201. Definitions.
``Sec. 202. National Endowment for the Arts.
``Sec. 203. National Council on the Arts.
``Sec. 204. National medal of arts.
``Sec. 205. Administrative provisions.
``Sec. 206. Authorization of appropriations.
``TITLE III--NATIONAL ENDOWMENT FOR THE HUMANITIES
``Sec. 301. Definitions.
``Sec. 302. Establishment of the National Endowment for the Humanities.
``Sec. 303. Establishment of the National Council on the Humanities.
``Sec. 304. Administrative provisions.
``Sec. 305. Authorization of appropriations.
``TITLE IV--MUSEUM SERVICES
``Sec. 401. Purpose.
``Sec. 402. Institute of Museum Services; establishment.
``Sec. 403. National Museum Services Board.
``Sec. 404. Director of the Institute.
``Sec. 405. Activities of the Institute.
``Sec. 406. Contributions.
``Sec. 407. Authorization of appropriations.
``Sec. 408. Definitions.
``TITLE V--AMERICAN CULTURAL TRUST FUND
``Sec. 501. Establishment of American Cultural Trust Fund.
``Sec. 502. Administration of trust fund.
``TITLE I--NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES
``SEC. 101. DECLARATION OF FINDINGS AND PURPOSES.
``The Congress finds and declares the following:
``(1) The arts and the humanities benefit and belong to all
the people of the United States. They are essential to cultural
survival and social, cultural, and economic progress.
``(2) The encouragement and support of national progress
and scholarship in the humanities and the arts, while primarily
a matter for private and local initiative, are also appropriate
matters of concern to the Federal Government.
``(3) An advanced civilization must not limit its efforts
to science and technology alone but must give full value and
support to the other great branches of scholarly and cultural
activity in order to achieve a better understanding of the
past, a better analysis of the present, and a better view of
the future.
``(4) Democracy demands wisdom and vision in its citizens.
It must therefore foster and support a form of education, and
access to the arts and the humanities, designed to make people
of all backgrounds and wherever located masters of their
technology and not its unthinking servants.
``(5) It is necessary and appropriate for the Federal
Government to further the advancement of the humanities and the
arts and the access of all Americans to the humanities and the
arts, in partnership with local, State, regional, and private
agencies, organizations, and individuals. In doing so, the
Government must be sensitive to the nature of public support
and the need to use public funding to advance the public good.
Public funding of the arts and humanities should contribute to
public support and confidence in the use of taxpayer funds.
Public funds provided by the Federal Government must ultimately
serve public purposes the Congress defines and must be subject
to the conditions that traditionally govern the use of public
money.
``(6) Federal support of the arts and the humanities
reflects the high place accorded by the American people to the
Nation's rich cultural heritage and to the fostering of mutual
respect for the diverse beliefs and values of all persons and
groups.
``(7) The practice of art and the study of the humanities
require constant dedication and devotion. While no government
can call a great artist or scholar into existence, it is
necessary and appropriate for the Federal Government to help
create and sustain not only a climate encouraging freedom of
thought, imagination, and inquiry but also the material
conditions facilitating the release of this creative talent.
``(8) The world leadership which has come to the United
States cannot rest solely upon superior power, wealth, and
technology, but must be solidly founded upon worldwide respect
and admiration for the Nation's high qualities as a leader in
the realm of ideas and of the spirit.
``(9) Americans should receive in school, background and
preparation in the arts and humanities to enable them to
recognize and appreciate the aesthetic dimensions of our lives,
the diversity of excellence that comprises our cultural
heritage, and artistic and scholarly expression. Increased
access to the arts and the humanities for all Americans,
including diverse cultures and urban and rural populations,
requires encouraging and developing quality education in the
arts and humanities at all levels, in conjunction with programs
of lifelong learning in the arts and humanities for all age
groups and with formal systems of elementary, secondary, and
postsecondary education; developing and stimulating research
to teach quality education in the arts and humanities; and encouraging
and facilitating the work of scholars, artists, arts institutions, and
Federal, State, regional, and local agencies in the area of education
in the arts and humanities.
``(10) It is vital to a democracy to honor and preserve its
multicultural artistic heritage as well as support new ideas,
and therefore it is essential to provide financial assistance
to its artists and the organizations that support their work.
``(11) To fulfill its educational mission, achieve an
orderly continuation of a free society, and provide models of
excellence to the American people, the Federal Government must
transmit the achievement and values of civilization from the
past via the present to the future, and make widely available
the greatest achievements of art.
``(12) In order to implement these findings and purposes,
it is desirable to establish a National Foundation on the Arts
and the Humanities.
``SEC. 102. NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES.
``(a) There is established a National Foundation on the Arts and
the Humanities (hereinafter referred to as the `Foundation'), which
shall be composed of a National Endowment for the Arts, a National
Endowment for the Humanities, a Federal Council on the Arts and the
Humanities, and an Institute of Museum Services.
``(b) The purpose of the Foundation shall be to develop and promote
a broadly conceived national policy of support for the humanities and
the arts in the United States and for institutions which preserve the
cultural heritage of the United States pursuant to this title.
``(c) In the administration of this Act no department, agency,
officer, or employee of the United States shall exercise any direction,
supervision, or control over the policy determination, personnel, or
curriculum, or the administration or operation of any school or other
non-Federal agency, institution, organization, or association.
``(d) In any case in which any money or other property is donated,
bequeathed, or devised to the Foundation without designation of the
Endowment for the benefit of which the gift is intended, each
Chairperson of an Endowment shall have authority to receive such gift.
The gift shall be deemed to have been to that Endowment whose function
it is to carry out the purpose of any condition or restriction on the
gift. Unless the Chairpersons of the Endowments agree otherwise, the
gift shall be deemed to have been in equal shares to each Endowment if
the gift is unrestricted, if some purposes of a restriction are covered
by one Endowment and some by the other Endowment, or if one or more of
the purposes of a restriction is covered by both Endowments.
``(e) For the purpose of the income tax, gift tax, and estate tax
laws of the United States, any money or other property donated,
bequeathed, or devised to the Foundation or one of its Endowments and
received by the Chairperson of an Endowment pursuant to authority
derived under this section shall be deemed to have been donated,
bequeathed, or devised to or for the use of the United States.
``TITLE II--NATIONAL ENDOWMENT FOR THE ARTS
``SEC. 201. DEFINITIONS.
``As used in this title--
``(1) the term `the arts' includes, but is not limited to,
music, dance, drama, creative writing, architecture, design,
painting, sculpture, photography, motion pictures, television,
radio, film, videotape, and sound recording; folk and
traditional arts practiced by the diverse peoples of this
country; graphic, digital, craft, and multimedia arts; the arts
related to the presentation, performance, execution, and
exhibition of such major art forms; and the study and
application of the arts to the human environment;
``(2) the term `Challenge funds' means those funds
appropriated under section 206(a)(3)(A) for the purpose of the
Challenge Program, as that Program is authorized in section
202(e);
``(3) the term `developing arts organization' means a local
arts organization of high artistic promise which--
``(A) serves as an important source of local arts
programming in a community; and
``(B) has the potential to develop artistically and
institutionally to broaden public access to the arts in
rural and innercity areas and other areas that are
underserved artistically;
``(4) the term `determined to be obscene' means determined,
in a final judgment of a court of record and of competent
jurisdiction in the United States, to be obscene;
``(5) the term `final judgment' means a judgment that is
either--
``(A) not reviewed by any other court that has
authority to review such judgment; or
``(B) is not reviewable by any other court;
``(6) for purposes of programs established pursuant to
section 202, the term `grant' includes loan, contract, and
cooperative agreement;
``(7) the term `group' includes any State or other public
agency, and any nonprofit society, institution, organization,
association, museum, or establishment in the United States,
whether or not incorporated;
``(8) the term `local arts agency' means a community
organization, or an agency of local government, that primarily
provides financial support, services, or other programs for a
variety of artists and arts organizations, for the benefit of
the community as a whole;
``(9) the term `obscene' means with respect to a project,
production, or workshop, that--
``(A) the average person, applying contemporary
community standards, would find that such project,
production, or workshop, when taken as a whole, appeals
to the prurient interest;
``(B) such project, production, or workshop depicts
or describes sexual conduct in a patently offensive
way; and
``(C) such project, production, or workshop, when
taken as a whole, lacks serious literary, artistic,
political or scientific value;
``(10) the term `production' means plays (with or without
music), ballet, dance, choral performances, concerts, recitals,
operas, exhibitions, readings, motion pictures, television,
radio, film, videotape, sound recordings, and any other
activities involving the execution or rendition of the arts and
meeting such standards as may be approved by the Endowment;
``(11) the term `Program funds' means those funds
appropriated under section 206(a)(1)(A) for projects,
productions, and workshops consistent with those activities
authorized in section 202;
``(12) the term `project' means programs organized to carry
out the purposes of this title, including programs to foster
American artistic creativity, to commission works of art, to
create opportunities for individuals to develop artistic
talents when carried on as a part of a program otherwise
included in this definition, and to develop and enhance the
widest public access, knowledge and understanding of the arts,
and includes, where appropriate, rental or purchase of
facilities, purchase or rental of land, and acquisition of
equipment. 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 Arts (who are present
and voting) approve of the grant involving an
expenditure for such purpose; and
``(B) for purposes of Challenge grants under
section 202(e), the construction of facilities if--
``(i) such construction is for
demonstration purposes or under unusual
circumstances where there is no other manner in
which to accomplish an artistic purpose; and
``(ii) two-thirds of the members of the
National Council on the Arts (who are present
and voting) approve of the grant involving an
expenditure for such purpose;
``(13) the term `regional group' means any multistate
group, whether or not representative of contiguous States;
``(14) the term `State' includes, in addition to the
several States, the Commonwealth of Puerto Rico, the District
of Columbia, Guam, American Samoa, the Northern Mariana
Islands, and the Virgin Islands;
``(15) the term `Treasury funds' means those funds
appropriated under section 206(a)(2)(A) for the purposes of
designated projects and productions, consistent with those
activities authorized in section 202; and
``(16) the term `workshop' means a program the primary
purpose of which is to encourage the artistic development or
enjoyment of amateur, student, or other participants.
``SEC. 202. NATIONAL ENDOWMENT FOR THE ARTS.
``(a) There is established within the Foundation a National
Endowment for the Arts.
``(b)(1) The Endowment shall be headed by a chairperson, to be
known as the Chairperson of the National Endowment for the Arts, 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 reappointment. The provisions of
this subsection shall apply to any person appointed to fill a vacancy
in the office of Chairperson. Upon expiration of the Chairperson's term
of office the Chairperson shall serve until the Chairperson's successor
shall have been appointed and shall have qualified.
``(c) The Chairperson, with the advice of the National Council on
the Arts, is authorized to establish and carry out a program of grants
to groups, or, in appropriate cases, individuals of exceptional talent
engaged in or concerned with the arts, for the purpose of enabling them
to provide or support projects, productions, and workshops that--
``(1) have substantial national or international artistic
and cultural significance, giving emphasis to American
creativity and cultural diversity and to the maintenance and
encouragement of professional excellence;
``(2) meet professional standards of authenticity or
tradition, irrespective of origin, which are of significant
merit and which, without such assistance, might otherwise be
unavailable to our citizens for geographic or economic reasons;
``(3) will encourage and assist artists and enable them to
achieve wider distribution of their works, to work in residence
at an educational or cultural institution, to achieve standards
of professional excellence, or to be honored for their
significant contributions;
``(4) have substantial artistic and cultural significance
and that reach, or reflect the culture of a racial, ethnic,
inner city, rural, or tribal community;
``(5) will encourage and develop public access, knowledge,
education, understanding, enjoyment, and appreciation of the
arts;
``(6) encourage arts at the local level;
``(7) enhance managerial and organizational skills and
capabilities;
``(8) use technology, including film, radio, video,
computers, and other advances in telecommunications to broaden
public access to the arts; or
``(9) involve otherwise relevant activities, including
surveys, research, evaluation, planning, and publications,
relating to the purposes of this subsection.
Any grant under this subsection awarded with Program funds must be
matched in a ratio of at least one non-Federal dollar for every one
Federal dollar. Any grant under this subsection awarded with Treasury
funds must be matched in a ratio of at least three non-Federal dollars
for every one Federal dollar.
``(d)(1) The Chairperson, with the advice of the National Council
on the Arts, is authorized to establish and carry out a program of
grants to assist the several States in supporting projects,
productions, or workshops that meet the standards enumerated in
subsection (c) of this section, and in developing projects,
productions, or workshops in the arts in such a manner as will furnish
adequate programs, facilities, and services in the arts to all the
people and communities in each of the several States.
``(2) In order to receive assistance under this subsection in any
fiscal year, a State shall submit an application for such grants at
such time as shall be specified by the Chairperson and accompany such
application with a plan which the Chairperson finds--
``(A) 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;
``(B) provides that funds paid to the State under this
subsection will be expended solely on projects, productions, or
workshops approved by the State agency which carry out one or
more of the objectives of subsection (c) of this section;
``(C) provides that the State agency will make such
reports, in such form and containing such information, 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, interested
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 recommendations; and
``(E) contains--
``(i) a description of the level of participation
during the most recent preceding year for which
information is available by artists, artists'
organizations, and arts organizations in projects,
productions, or workshops for which financial
assistance is provided under this subsection;
``(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 communities in the State; and
``(iii) a description of projects, productions, or
workshops receiving financial assistance under this
subsection that exist or are being developed 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 subsection 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 allotted 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 discretion 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 allotment 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 organizations and institutions for the purpose of
strengthening their quality by--
``(1) providing administrative and management improvements
for cultural organizations and institutions, particularly in
the field of long-range financial planning including, but not
limited to, increasing levels of community support and the
range of contributors to the programs of such cultural
organizations and institutions;
``(2) fostering greater citizen involvement in planning the
cultural development of their communities and enabling cultural
organizations and institutions to increase audience
participation in and appreciation of programs sponsored by the
cultural organizations and institutions;
``(3) providing additional support and stimulating greater
cooperation among State, local and private cultural
organizations and institutions to promote 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 traditions 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 developing
arts organizations through artistic, programmatic, and staff
development;
``(2) providing technical assistance to developing arts
organizations to improve managerial and organizational 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 artistically.
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 organization,
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 education 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 education in the
arts programs and instruction;
``(6) foster cooperative programs with the Department of
Education and other Federal agencies and encourage partnerships
between arts and education agencies and organizations at State
and local levels as well as among arts organizations,
businesses, and educational and cultural institutions;
``(7) support apprenticeships, internships, and other
career oriented work-study experiences for artists and arts
teachers, and encourage residencies of artists at all
educational levels;
``(8) support the use of technology and improved facilities
and resources in education in the arts programs at all levels;
and
``(9) foster the development of demonstration projects,
demonstration productions, demonstration workshops, and
demonstration programs in arts education and collect, and make
available to the public, information on their implementation
and effectiveness.
Grants under this subsection are subject to the matching requirements
set forth in subsection (c).
``(h) The Chairperson of the National Endowment for the Arts shall,
in ongoing consultation with State and local agencies, relevant
organizations, and relevant Federal agencies, continue to develop and
implement a practical system of national information and data
collection and public dissemination on the arts, artists and arts
groups, and their audiences. Such system shall include artistic and
financial trends in the arts, trends in audience participation, and
trends in arts education on national, regional, and State levels. Such
system shall also include information regarding the availability of the
arts to various audience segments, including rural communities. Such
system shall be used, along with a summary of the data submitted with
State plans under subsection (d) of this section, to prepare a periodic
report on the state of the arts in the Nation. The state of the arts
report shall include a description of the availability of the
Endowment's programs to emerging, rural, and culturally diverse
artists, arts organizations, and communities and of the participation
by such artists, organizations, and communities in such programs. 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 National Endowment for
the Arts in accordance with procedures 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 review panels,
taking into consideration general standards of decency and
respect for the diverse beliefs and values of the American
public;
``(2) in selecting individuals and groups of exceptional
talent as recipients of financial assistance, the Chairperson
shall give particular regard to artistically underserved areas
and artists and artistic groups that have traditionally been
underrepresented;
``(3) applications and awards of financial assistance 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 workshops that are determined to be
obscene are prohibited 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 assistance, 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 delegated 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 establish 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 cultural points of view;
``(2) ensure that all panels include representation 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 summarizing--
``(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 reviewed, 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 provide 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 application, does not serve as a member of any panel before
which such application is pending. The prohibition described in the
preceding sentence shall commence with respect to such individual
beginning on the date such application 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 assistance
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 excellence 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 carrying out such
project, production, or workshop and compliance with
the conditions of receipt of such assistance;
``(C) financial reports containing such information
as the Chairperson deems necessary to ensure that such
financial assistance is expended in accordance with the
terms and conditions under which it is provided;
``(D) a final report to the Chairperson describing
the project, production, or workshop carried out with
such financial assistance and the grant recipient's
compliance with the conditions of receipt of such
assistance; and
``(E) if practicable, as determined by the
Chairperson, a copy of such project or production.
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 assistance or the completion of the project,
production, or workshop, whichever occurs earlier. The Chairperson may
extend 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 recipients in installments
except in those cases where the Chairperson determines that
installments are not practicable. In implementing any such
installments, the Chairperson shall ensure that--
``(1) not more than two-thirds of such assistance may be
provided at the time such application is approved; and
``(2) the remainder of such assistance may not be provided
until the Chairperson receives an interim report described in
subsection (k)(2)(B) and finds that the recipient of such
assistance is complying substantially with this section and
with the conditions under which such assistance is provided to
such recipient.
``(n) The Inspector General of the Endowment shall conduct
appropriate reviews to ensure that recipients of financial assistance
under this section comply with the applicable regulations and
procedures established under this title including regulations relating
to accounting and financial matters.
``(o) It shall be a condition of the receipt of any grant under
this section that the group or individual of exceptional talent or the
State or State agency receiving such grant furnish adequate assurances
to the Secretary of Labor that--
``(1) all professional performers and related or supporting
professional personnel (other than laborers and mechanics with
respect to whom labor standards are prescribed in subsection
(p) of this 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 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
financed in whole or in part under this section will be
performed 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 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
appropriate to carry out the provisions of this subsection.
``(p) It shall be a condition of the receipt of any grant under
this section that the group or individual of exceptional 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
contractors or subcontractors on construction projects assisted 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 accordance 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 authority 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 practicable, with existing Federal
programs 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. The Chairperson 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 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 Chairperson of the
National Endowment for the Arts, who shall be Chairperson of the
Council, and twenty-six other members 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 appointments, 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 member 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 predecessor was appointed. Notwithstanding
any other provision of this subsection, a member shall serve after the
expiration of such member's term until such member's successor 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 subsistence, 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 calendar year. Fourteen members
of the Council shall constitute 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 responsibilities under this title, and
review applications for financial 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 applicant;
``(D) make recommendations to the Chairperson concerning--
``(i) whether to approve particular applications
for financial assistance under this title that have
been determined by panels to have artistic 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 recommendation of
the Council on such application. The Chairperson shall have final
authority to approve each application, except that the Chairperson may
only provide to an applicant the amount of financial assistance
recommended by the Council and may not approve an application with
respect to which the Council makes a negative recommendation. In the
case of an application or amendment involving $35,000 or less or a
change in the grant amount of 20 percent or less, the Chairperson may
approve or disapprove such request if such action is taken pursuant to
the terms of an expressed and direct delegation 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 expenditure 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
section 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 recommendations 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 recommendations 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 contributions to the excellence, growth, support, and
availability 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 manner 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 Endowment 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 Chairperson of the National
Endowment for the Arts in carrying 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 Endowment's functions under this
title;
``(3) appoint employees, subject to the civil service laws,
as necessary to carry out the Chairperson'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 authorized 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 authorized 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 payments without
regard to section 3324 of title 31, United States Code;
``(7) rent office space in the District of Columbia; and
``(8) make other necessary expenditures.
``(b) Any group shall be eligible for financial assistance 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 section 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 conditions approved by the Secretary
of the Treasury.
``(d) The Chairperson may waive matching requirements 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 activities 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 preceding 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 provisions 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 satisfy 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 Chairperson may--
``(1) for purposes of determining whether to provide any
subsequent financial assistance, take into consideration the
results of the post-award evaluation conducted under subsection
(l) of section 202;
``(2) prohibit the recipient of such financial assistance
to use the name of, or in any way associate such project,
production, or program with the Endowment; and
``(3) if such project, production, or program is published,
require that the publication contain the following statement:
`The opinions, findings, conclusions, and recommendations
expressed herein do not reflect the views of the National
Endowment for the Arts.'.
``(i) Whenever the Chairperson, after reasonable notice 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 substantially with
terms and conditions of its State plan approved 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 diversion has been
corrected, or, if compliance or correction is impossible, until
such grantee or agency repays 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
assistance (in such amount, and under such terms and conditions, 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 subsections (c), (d),
(f), and (g) of section 202, 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.
``(B) Not less than 27.5 percent of the amount appropriated 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 appropriated 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 programs 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 Treasury Funds, equal to the sum of--
``(A) the total amounts received by such Endowment 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, including 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 Challenge Funds, equal to the sum of--
``(A) the total amounts received by such Endowment 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, including 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, appropriations authorized under
subsection (a) of this section are authorized to be included in the
measure making appropriations 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 reception and
representation expenses.
``TITLE III--NATIONAL ENDOWMENT 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 following: language,
both modern and classical; linguistics; literature; history;
jurisprudence; philosophy; archaeology; comparative religion;
ethics; the history, criticism, and theory of the arts;
folklore and folklife; those aspects of the social sciences
which have humanistic 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 history and to the relevance of the
humanities to the current conditions of national life;
``(2) the term `project' means programs organized 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
demonstration purposes or under unusual
circumstances where there is no other manner 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 accordance 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, income 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 activities;
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 ENDOWMENT 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 chairperson, 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 reappointment. 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 Chairperson'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 authorized to enter into
arrangements to--
``(1) develop and encourage the pursuit of a national
policy for the promotion of progress and scholarship in the
humanities;
``(2) initiate and support research and programs to
strengthen the research and teaching potential of the United
States in the humanities;
``(3) initiate and support training and workshops in the
humanities (fellowships awarded to individuals under this
authority may be for the purpose 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 research which have
substantial scholarly and cultural significance and that reach,
or reflect the diversity and richness of our American cultural
heritage, including the culture of, a minority, inner city,
rural, or tribal community;
``(5) foster international programs and exchanges;
``(6) foster the interchange of information in the
humanities;
``(7) foster education in, and public understanding 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 programs would otherwise
be unavailable due to geographic or economic reasons; and
``(10) foster programs and projects that provide access to,
and preserve materials important to research, 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 regard 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 National Council
on the Humanities, is authorized, in accordance 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
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, 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 application for grants and
accompany such application with a plan which the Chairperson 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 officer 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 officer 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, whichever 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)
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 information, as the
Chairperson may require, including 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 organizations, 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 participation
during the most recent preceding year for which
information is available by scholars and scholarly
organizations in programs receiving financial
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 organizations identified under
subclause (I) of this clause or that address the
availability of the humanities 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 subparagraph (A), the grant
recipient in such State shall--
``(i) establish a procedure which assures that six 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
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 received by such grant
recipient under this subsection for the fiscal year involved.
``(3) Whenever a State selects to receive Federal financial
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 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) of this section;
``(C) establishes a membership policy which is designed to
assure broad public representation with respect to programs
administered by such grant recipient;
``(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 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
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 meetings 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 participation
during the most recent preceding year for which
information is available by scholars and scholarly
organizations in programs receiving financial
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 organizations identified under
clause (i) of this subparagraph or that address the
availability of the humanities 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 subsection for any
fiscal year, each State and each grant recipient 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 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 excess 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 excess 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 excess for such
fiscal year shall be allotted among the States and grant
recipients which have plans approved 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
population 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 application 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 residents 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 Chairperson.
``(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 specified 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 notice and
opportunity for hearing, finds that--
``(A) a group or grant recipient is not complying
substantially with the provisions of this subsection;
``(B) a State agency or grant recipient is not complying
substantially with terms and conditions of its State plan or
grant recipient application approved 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 correction is impossible, until such group,
State agency, or grant recipient repays or arranges the
repayment of the Federal funds which have been improperly
diverted or expended.
``(8) Except as provided in paragraphs (4), (5), and (6), the
Chairperson may not make grants under this subsection 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 assurances to the Secretary of
Labor that (1) all professional 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
financed in whole or in part under this section will be performed 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 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 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 Council 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 purpose
of--
``(A) enabling cultural organizations and institutions to
increase the levels of continuing support and to increase the
range of contributors to the program of such organizations or
institutions;
``(B) providing administrative and management improvements
for cultural organizations and institutions, particularly in
the field of long-range financial planning;
``(C) enabling cultural organizations and institutions to
increase audience participation in, and appreciation of,
programs sponsored by such organizations and institutions;
``(D) stimulating greater cooperation among cultural
organizations and institutions especially designed 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-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) 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 exceptional 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 contractors or subcontractors on construction projects
assisted 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 accordance 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 subsection, the
authority and functions set forth in Reorganization 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 relevant Federal agencies, continue to
develop and implement a practical system of national information and
data collection 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 subsection (f) of
this section, to prepare a report on the state of the humanities in the
Nation. The state of the humanities 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 organization engaged in the
production of a film or publication;
``(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 assistance
under this title if--
``(i) no part of its net earnings inures to the
benefit of any private stockholder or stockholders or
individual or individuals; and
``(ii) donations to such groups are allowable as a
charitable contribution under the standards of section
170(c) of the Internal Revenue Code of 1986;
``(B) any entity shall 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
understanding 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 understanding of
the humanities in the United States.
``(m) The Chairperson, with the advice of the National 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 individuals 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 authority 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 Chairperson 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 humanities; and
``(2) have established records of distinguished service and
scholarship or creativity and in a manner which will provide a
comprehensive representation of the views of scholars and
professional practitioners in the humanities and of the public
throughout the United States. The President is requested in the
making of such appointments to give consideration to such
recommendations as may from time to time be submitted to him by
leading national organizations concerned with the humanities.
In making such appointments, the President shall give due
regard to equitable representation of women, minorities 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 member shall be eligible for
reappointment during the two-year period following the
expiration of such member's term. Notwithstanding any other
provisions 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 Chairperson 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 section 5376 of title 5 of the United
States Code, and be allowed travel expenses including per diem in lieu
of subsistence, 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 support and
make recommendations thereon to the Chairperson. The
Chairperson shall not approve or disapprove any such
application until the Chairperson has received the
recommendation of the Council on such application, unless the
Council fails to make a recommendation thereon within a
reasonable 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 pursuant 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
reviewed by the Council: Provided, That the terms of any such
delegation of authority shall not permit obligations for
expenditure 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 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 Chairperson of the National
Endowment for the Humanities, in carrying out the Chairperson's
functions, shall have authority--
``(1) to prescribe such regulations as the Chairperson
deems necessary governing the manner in which the Chairperson's
functions shall be carried out;
``(2) in the discretion of the Chairperson to solicit,
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 remitted to the Endowment pursuant to section
302(n) or any other statutory authority and to request the
Secretary of the Treasury to invest such money in interest
bearing obligations of the United States or in obligations of
the United States guaranteed 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 Chairperson's functions,
define their duties, and supervise and direct their activities;
``(4) to utilize experts and consultants, including panels
of experts, who may be employed as authorized by section 3109
of title 5, United States Code;
``(5) to accept and utilize the services of voluntary and
uncompensated personnel and reimburse them for travel expenses,
including per diem, as authorized 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 payments without
regard to section 3324 of title 31, United States Code;
``(7) to rent office space in the District of Columbia; 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
humanistic 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 Chairperson deems
appropriate.
``(c) The National Council on the Humanities, respectively, 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 recipient shall
comply with the requirements specified in paragraph (2) that are
applicable to the project, production, or program for which such
financial assistance is received.
``(2)(A) The recipient of financial assistance provided by the
Endowment shall submit to the Chairperson--
``(i) a financial report containing such information as the
Chairperson deems necessary to ensure that such financial
assistance is expended in accordance with the terms and
conditions under which it is provided;
``(ii) a report describing the project, production or
program carried out with such financial assistance; and
``(iii) if practicable, as determined by the Chairperson, a
copy of such project, production, or program.
``(B) Such recipient shall comply with the requirements of this
paragraph not later than 90 days after the end of the period for which
such financial assistance is provided. The Chairperson may extend the
90-day period only if the recipient shows good cause why such an
extension should be granted.
``(3) If such recipient substantially fails to satisfy the purposes
for which such financial assistance is provided and the requirements of
paragraph (2)(A) of this section, as determined by the Chairperson of
the Endowment that provided such financial assistance, then such
Chairperson may--
``(A) for purposes of determining whether to provide any
subsequent financial assistance, take into consideration the
results of the post-award evaluation conducted under this
subsection;
``(B) prohibit the recipient of such financial assistance
to use the name of, or in any way associate such project,
production, or program with the Endowment that provided such
financial assistance; and
``(C) if such project, production, or program is published,
require that the publication contain the following statement:
`The opinions, findings, conclusions, 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 provisions 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 Endowment under
section 304(a)(2), including the value of property donated,
bequeathed, or devised to the Endowment and any interest earned
thereon; and
``(B) the total amounts received by the grantees and
subgrantees of the Endowment from non-Federal sources,
including the value of property donated, 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 National Endowment for the
Humanities an amount equal to the sum of--
``(i) the total amounts received by the Endowment,
including the value of property donated, bequeathed, or devised
to the Endowment, for the purposes 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, including the value of
property donated, bequeathed, or devised to such grantees, for
use in carrying out activities under subparagraph (A) through
subparagraph (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 section 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 received 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, appropriations authorized under
subsection (a) of this section are authorized to be included in the
measure making appropriations 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 program for which the Chairperson of the National Endowment
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 university) for a production for
which direct or indirect admission charge is asked if the proceeds,
after deducting reasonable costs, are used for purposes other than
assisting the grantee to develop high standards of scholarly excellence
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 formal 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; ESTABLISHMENT.
``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 National Museum Services Board and a Director of the
Institute.
``SEC. 403. NATIONAL MUSEUM SERVICES BOARD.
``(a) The Board shall consist of fifteen members appointed by the
President by and with the advice and consent 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 museums,
including museums relating to science, history, technology,
art, zoos, and botanical gardens, and of the curatorial,
conservation, educational, and cultural resources of the United
States; and
``(2) recognized for their broad knowledge, expertise, 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
museums.
``(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 vacancy 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 designated 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 thereafter be ineligible for
reappointment to the Board during the three-year period following the
expiration of the last such consecutive year. Notwithstanding any other
provision of this subsection, a member shall serve after the expiration
of such member's term of office until such member's successor takes
office.
``(c) The Chairperson of the Board shall be designated by the
President from among the appointed members 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 Chairperson, except
that--
``(1) it shall meet not less than three times each year;
and
``(2) it shall meet whenever one-third of the appointed
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 payable 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 authorities vested in
the Institute under this title. The Director 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 Federal Government.
``SEC. 404. DIRECTOR OF THE INSTITUTE.
``(a)(1) The Director of the Institute shall be appointed by the
President, by and with the advice and consent of the Senate, and shall
serve at the pleasure of the President. The Director shall perform such
duties and exercise such powers as the Board may prescribe.
``(2) The Director shall not delegate any of the Director's
functions to any other officer who is not directly responsible to the
Director.
``(b) The Director shall advise the Board regarding policies of the
Institute to assure coordination of the Institute's activities with
other agencies and organizations of the Federal Government having
interest in and responsibilities for the improvement of museums. Such
Government 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 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 employees
of the Institute. The rate of basic compensation 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 activities 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 maintaining
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 educational programs to the public
through the use of their collections;
``(4) assisting museums in cooperation with each other in
the development of traveling exhibitions, meeting
transportation costs, and identifying and locating collections
available for loan;
``(5) assisting them in conservation of their collections;
and
``(6) developing and carrying out specialized programs for
specific segments of the public, such as programs for urban
neighborhoods, rural areas, Indian reservations, and penal and
other State institutions.
``(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 designed 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 limitation.
``(d) The Director shall establish procedures for reviewing and
evaluating grants, contracts, and cooperative agreements made or
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.
``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 functions 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 purposes 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 October 1, 2001, an amount equal to the
amount contributed during such fiscal year period to the Institute
under section 406.
``SEC. 408. DEFINITIONS.
``For the purpose of this title, the term--
``(1) `Board' means the National Museum Services Board
established under section 402;
``(2) `Director' means the Director of the Institute
established under section 402;
``(3) `Institute' means the Institute of Museum Services
established under section 402; and
``(4) `museum' means a public or private nonprofit agency
or institution organized on a permanent basis for essentially
educational or esthetic purposes, 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 revolving 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 distributed 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 Services.
``(4) 45 percent to the Corporation for Public
Broadcasting.
``(c) Annual Distribution of Accumulated Investment 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 appropriated 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 fiscal 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 subsection (c).
``(e) Conforming Changes.--No funds are authorized 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 subsection (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 appropriated 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 distributed under subsection
(c) to the Corporation for Public Broadcasting shall be deemed
to be funds appropriated to carry out such section.''.
(b) Conforming Amendment.--The Museum Services 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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