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                                                       Calendar No. 178
108th Congress                                                   Report
                                 SENATE
 1st Session                                                     108-83

======================================================================



 
                MUSEUM AND LIBRARY SERVICES ACT OF 2003

                                _______
                                

                 June 26, 2003.--Ordered to be printed

                                _______
                                

    Mr. Gregg, from the Committee on Health, Education, Labor, and 
                   Pensions, submitted the following

                              R E P O R T

                         [To accompany S. 888]

    The Committee on Health, Education, Labor, and Pensions, to 
which was referred the bill (S. 888) to reauthorize the Museum 
and Library Services Act, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and summary of the bill..................................1
 II. Background and need for legislation..............................4
III. Legislative history and committee action.........................5
 IV. Committee views..................................................5
  V. Cost estimate....................................................9
 VI. Regulatory impact statement.....................................11
VII. Application of law to the legislative branch....................12
VIII.Section-by-section analysis.....................................12

 IX. Changes in existing law.........................................17

                   I. Purpose and Summary of the Bill

    It is the purpose of S. 888, the Museum and Library 
Services Act of 2003, to reauthorize the Museum and Library 
Services Act, and to provide American libraries and museums 
with continued Federal support through the grant programs of 
the Institute of Museum and Library Services (IMLS). This 
legislation continues the objectives of the Museum and Library 
Services Act of 1996 to strengthen America's museum and library 
services.

                      TITLE I--GENERAL PROVISIONS

    This title defines certain terms, consolidates the library 
and museum advisory boards into one entity (the National Museum 
and Library Services Board); establishes the criteria for Board 
membership and other rules governing the Board; requires that 
the library activities of the IMLS be coordinated with the 
school library provisions of the No Child Left Behind Act; 
gives the IMLS Director the authority to promulgate such rules 
and regulations as are necessary and appropriate to implement 
the provisions of the Museum and Library Services Act; requires 
the IMLS Director to establish procedural standards for making 
grants available to museums and libraries (ensuring that the 
criteria are consistent with the purpose of the act, taking 
into consideration general standards of decency and respect for 
the diverse beliefs and values of the American public); 
prohibits projects determined to be obscene from receiving 
Federal library and museum funds; authorizes the Director of 
the IMLS to issue National Awards for Library Service and 
National Awards for Museum Service; requires the IMLS to 
conduct analyses of the need for museum and library services 
and the effectiveness of funded projects in meeting those 
needs; and prohibits funds appropriated under the Museum and 
Library Services Act from being used for construction expenses.

               TITLE II--LIBRARY SERVICES AND TECHNOLOGY

    This title amends the purposes of the Library Services and 
Technology Act so that they include: (1) consolidation of 
Federal library service programs; (2) promotion of improvement 
in library services in all types of libraries in order to 
better serve the people of the United States; (3) facilitation 
of access to resources in all types of libraries for the 
purpose of cultivating an educated and informed citizenry; and 
(4) encouraging resource sharing among all types of libraries 
for the purpose of achieving economical and efficient delivery 
of library services to the public.
    This title authorizes $250 million in fiscal year 2004 and 
such sums as may be necessary for fiscal years 2005 through 
2009 for the IMLS's library programs under the Library Services 
and Technology Act. It increases the minimum State allotment 
for library programs to $680,000, while ensuring that no 
State's allotment falls below its 2003 level. S. 888 also 
increases the minimum allotment for the United States Virgin 
Islands, Guam, American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Republic of the Marshall Islands, the 
Federated States of Micronesia, and the Republic of Palau to 
$60,000, as long as each State receives its new minimum 
allotment of $680,000.
    This title also requires that State plans be submitted 
every 5 years, expands the use of national leadership grants to 
include the recruitment of librarians, and broadens the 
allowable use of funds for State library agency grants to 
include the following: (1) expanding services for learning and 
access to information and educational resources in a variety of 
formats, in all types of libraries, for individuals of all 
ages; (2) developing library services that provide all users 
access to information through local, State, regional, national, 
and international electronic networks; (3) providing electronic 
and other linkages among and between all types of libraries; 
(4) developing public and private partnerships with other 
agencies and community-based organizations; (5) targeting 
library services to individuals of diverse geographic, 
cultural, and socioeconomic backgrounds, to individuals with 
disabilities, and to individuals with limited functional 
literacy or information skills; and (6) targeting library and 
information services to persons having difficulty using a 
library and to underserved urban and rural communities, 
including children from families with incomes below the poverty 
line.

                       TITLE III--MUSEUM SERVICES

    This title amends the purposes of the Museum Services Act 
to include: (1) encouraging and supporting museums in carrying 
out their public service role of connecting the whole of 
society to the cultural, artistic, historical, natural, and 
scientific understandings that constitute our heritage; (2) 
encouraging and supporting museums in carrying out their 
educational role as core providers of learning and in 
conjunction with schools, families, and communities; (3) 
encouraging leadership, innovation, and applications of the 
most current technologies and practices to enhance museum 
services; (4) assisting, encouraging, and supporting museums in 
carrying out their stewardship responsibilities to achieve the 
highest standards in conservation and care of the cultural, 
historic, natural, and scientific heritage of the United States 
to benefit future generations; (5) assisting, encouraging, and 
supporting museums in achieving the highest standards of 
management and service to the public, and to ease the financial 
burden borne by museums as a result of their increasing use by 
the public; and (6) supporting resource sharing and partnership 
among museums, libraries, schools, and other community 
organizations.
    This title amends the allowable use of funds under the 
Museum Services Act to include the following: (1) supporting 
museums in providing learning and access to collections, 
information, and educational resources in a variety of formats 
(including exhibitions, programs, publications, and web sites) 
for individuals of all ages; (2) supporting museums in building 
learning partnerships with the Nation's schools and developing 
museum resources and programs in support of State and local 
school curricula; (3) supporting museums in assessing, 
conserving, researching, maintaining, and exhibiting their 
collections, and in providing educational programs to the 
public through the use of their collections; (4) stimulating 
greater collaboration among museums, libraries, schools, and 
other community organizations in order to share resources and 
strengthen communities; (5) encouraging the use of new 
technologies and broadcast media to enhance access to museum 
collections, programs, and services; (6) supporting museums in 
providing services to people of diverse geographic, cultural, 
and socioeconomic backgrounds and to individuals with 
disabilities; (7) supporting museums in developing and carrying 
out specialized programs for specific segments of the public, 
such as programs for urban neighborhoods, rural areas, Indian 
reservations, and State institutions; (8) supporting 
professional development and technical assistance programs to 
enhance museum operations at all levels, in order to ensure the 
highest standards in all aspects of museum operations; (9) 
supporting museums in research, program evaluation, and the 
collection and dissemination of information to museum 
professionals and the public; and (10) encouraging, supporting, 
and disseminating model programs of museum and library 
collaboration.
    This title also: broadens the definition of a museum; 
generally limits the Federal share of museum programs to 50 
percent (with an exception made for up to 20 percent of funds 
available under the Museum Services Act); allows the Director 
to use no more than 10 percent of the funds available under the 
Museum Services Act for technical assistance awards (while 
limiting such grants that are not peer-reviewed to three per 
museum); sets aside 1.75 percent of the IMLS's museum funds for 
Indian tribes and organizations that primarily serve Native 
Hawaiians; and authorizes $41.5 million in Museum Services Act 
funds for fiscal year 2004 (and such sums as may be necessary 
for fiscal years 2005 through 2009).

 TITLE IV--NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE ACT

    This title amends the National Commission on Libraries and 
Information Science Act to: allow the Commission to solicit and 
invest gifts, bequests, and devises of services or property; 
better define the requirements for a quorum of the Commission; 
and allow a commissioner to serve after the expiration of his 
term until his successor takes office.

                   TITLE V--MISCELLANEOUS PROVISIONS

    This title amends the Arts and Artifacts Indemnity Act by 
raising the overall level of available indemnity to $8 billion, 
increasing the per-exhibition cap for indemnification from $500 
million to $600 million, and adjusting the corresponding 
deductible levels. It also: designates the Capital Children's 
Museum in Washington, DC as the National Children's Museum; 
makes several technical and conforming statutory changes; 
repeals the National Commission on Libraries and Information 
Science's role as an advisory body to the IMLS; and repeals 
transition provisions from the Museum and Library Services Act 
of 1996.

                II. Background and Need for Legislation

    Today, museums, libraries serve as important educational 
and cultural institutions in communities throughout our nation. 
Americans frequent museums at a rate of 2.3 million visits per 
day, and in a recent national survey, two-thirds of respondents 
reported having used their public library in the past year. 
Museums provide access to our historic, artistic, scientific, 
and cultural heritage, and serve as key partners in the 
education of our children. In fact, American museums commit 
over one billion dollars and more than 18 million instructional 
hours to K-12 educational programs each year. Libraries provide 
comprehensive services to meet the informational needs of 
communities large and small, rural and urban. From reading and 
literacy programs, to Internet access and work force 
development, libraries serve Americans in numerous ways, 
regardless of age, economic circumstance, or disability. By 
reauthorizing and strengthening the grant programs of the 
Institute of Museum and Library Services, the Museum and 
Library Services Act of 2003 will help America's libraries and 
museums provide these important educational and cultural 
services in the years ahead.

             III. Legislative History and Committee Action

    The committee held a hearing on the reauthorization of the 
Museum and Library Services Act on April 10, 2002. At that 
hearing the committee heard from three witnesses who testified 
in support of the reauthorization: Dr. Robert S. Martin 
(Director of the Institute of Museum and Library Services), 
David Macksam (Director of the Cranston Public Library in 
Cranston, Rhode Island), and Joseph R. Phillips (Director of 
the Maine State Museum).
    Senator Gregg, along with Senator Reed and several other 
co-sponsors, introduced S. 888, the Museum and Library Services 
Act of 2003, on April 11, 2003. On May 14, 2003, the committee 
met in executive session to consider the bill. No amendments 
were offered. The bill was approved without amendment by 
unanimous consent.

                          IV. Committee Views


                      TITLE I--GENERAL PROVISIONS

Director of the Institute of Museum and Library Services

    In order to facilitate implementation, the Museum and 
Library Services Act of 2003 gives the Director the authority 
to promulgate necessary rules and regulations. It also requires 
the Director to establish new procedures for reviewing and 
evaluating applications for assistance under the Museum and 
Library Services Act. These procedures must ensure that the 
purposes of the Museum and Library Services Act, as well as 
general standards of decency and respect for the diverse 
beliefs and values of the American public, are taken into 
consideration. No financial assistance may be provided under 
the Museum and Library Services Act to any project determined 
to be obscene. The committee notes that assistance provided by 
the National Endowment for the Arts is subject to similar 
standards (20 U.S.C. Sec. 954(d)).
    Recognizing the key role that libraries play in fostering 
the academic achievement of our Nation's schoolchildren, the 
Museum and Library Services Act of 2003 also requires that the 
director, where appropriate, ensure that the library activities 
of the IMLS are coordinated with the school library provisions 
of the No Child Left Behind Act (contained in Section 1251 of 
the Elementary and Secondary Education Act of 1965, and 
codified at 20 U.S.C. Sec. 6383).

National Museum and Library Services Board

    The Museum and Library Services Act of 2003 established the 
National Museum and Library Services Board to advise the 
Director of the Institute of Museum and Library Services on 
general policies regarding the duties, powers, and authority of 
the IMLS as they relate to museum and library services. 
Currently, two distinct entities fulfill this advisory role: 
the National Museum Services Board and the National Commission 
on Libraries and Information Science. This legislation 
consolidates the advisory function into one entity, the 
National Museum and Library Services Board. The committee notes 
that, while the advisory function of the National Commission on 
Libraries and Information Science is eliminated, its other 
functions (exercised under the National Commission on Libraries 
and Information Science Act) are left intact by S. 888. The 
Chairman of the National Commission on Libraries and 
Information Science will sit on the National Museum and Library 
Services Board as a non-voting member, just as the Director of 
the Institute of Museum and Library Services sits on the 
National Commission on Libraries and Information Science as a 
non-voting member.
    Members of the Board representing museums will be selected 
from among those who are affiliated with curatorial, 
conservation, education and cultural resources in the United 
States or with various types of museums, or who are recognized 
for their broad knowledge, expertise, or experience with 
museums or their commitment to museums (such as museum trustees 
who have been in a position to understand the overall 
operations and activities of museums). Members of the board 
representing libraries will be selected from among those who 
are specifically qualified by virtue of their education, 
training, or experience in the area of library services, or 
their demonstrated commitment to libraries (such as library 
trustees, members of a library board of directors, or members 
of a Library Friends Group).

Analyses of the impact of Museum and Library Services

    The committee believes there is a need for regular analyses 
of the effectiveness of the programs conducted by the Institute 
of Museum and Library Services under the Museum and Library 
Services Act. Such analyses will only enhance the ability of 
the IMLS to support quality museum and library programs, and 
will help to ensure that the taxpayers' return on their 
investment remains high. Thus the Museum and Library Services 
Act of 2003 authorizes the Director, in consultation with State 
library agencies, library and museum organizations, and others, 
to: identify national needs for, and trends of, museums and 
library services provided with assistance under the Museum and 
Library Services Act; report on the impact and effectiveness of 
funded programs in addressing these needs; and disseminate 
information on the best practices of such programs.

Prohibition of construction

    Currently, the Institute of Museum and Library Services is 
not engaged in funding or managing construction projects. The 
committee notes that the purposes of the Museum and Library 
Services Act do not include the construction of museums and 
libraries, and the Institute of Museum and Library Services is 
not equipped to fund or manage such projects. Thus, S. 888 
expressly forbids funds appropriated to carry out the Museum 
and Library Services Act from being used for construction 
expenses.

               TITLE II--LIBRARY SERVICES AND TECHNOLOGY

Administration

    The Museum and Library Services Act of 2003 increases the 
percentage of appropriated library funds that can be used for 
federal administrative costs from no more than 3 percent to no 
more than 3.5 percent. The committee intends for this increase 
to be used to conduct the new annual analyses of the impact and 
effectiveness of library services required by this Act.

Minimum State allotment

    The minimum State allotment in the Grants to State Library 
Agencies Program has remained at $340,000 since 1971. The 
Museum and Library Services Act of 2003 authorizes an increase 
in this minimum State allotment to $680,000, and an increase in 
the minimum allotment for outlying areas from $40,000 to 
$60,000, while also ensuring that no State's allotment falls 
below its fiscal year 2003 level. Under S. 888, if funding is 
insufficient to both raise the minimum allotment to $680,000 
and hold States harmless, then the minimum allotment will be 
set at its current $340,000. Any additional funding above the 
level sufficient to fund a $340,000 minimum allotment will be 
distributed equally among the States until the minimum amount 
of $680,000 is reached for each State. As with current law, any 
additional funding available above the minimum allotment will 
be distributed to States under a population-driven formula. 
Outlying areas will see their minimum allotment increase to 
$60,000, as long as each State receives the $680,000 minimum 
State allotment.

Recruitment of librarians

    Librarians are key partners in the education of successful 
learners. They help parents teach their children before they 
enter school, they are partners with the schools in their 
communities, they provide college students with advanced 
research skills, and they help adults continue to achieve and 
enjoy learning throughout their lifetimes. The committee notes 
that over the next 16 years, America's libraries are projected 
to lose 58 percent of their professional librarians, and more 
than one-quarter of all librarians with master's degrees will 
reach the age of 65 before 2009.
    The committee commends President Bush and First Lady Laura 
Bush for their support for education and libraries generally, 
and the recruitment of librarians in particular. The Museum and 
Library Services Act of 2003 supports their efforts by amending 
the Museum and Library Services Act to allow grants, contracts, 
and cooperative agreements to be used for activities that 
include the recruitment of persons in library and information 
science.

                       TITLE III--MUSEUM SERVICES

Technical assistance awards

    The Museum and Library Services Act of 2003 allows the 
Director to use no more than 10 percent of Museum Services Act 
funds for technical assistance awards, while limiting such 
grants that are not peer-reviewed to three per museum. The 
committee notes that grants for technical assistance can help 
to strengthen museum operations and service to the public. The 
committee supports the development of procedures that minimize 
the administrative burden in providing technical assistance. 
The committee believes that the usefulness of the technical 
assistance program can be enhanced by providing additional 
review and evaluation for institutions after they have received 
three grants for technical assistance.

 TITLE IV--NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE ACT

Contributions

    The Museum and Library Services Act of 2003 clarifies the 
ability of the National Commission on Libraries and Information 
Science to seek contributions and to invest them in the name of 
the United States. It also makes clear that the Commission can 
accept services as well as property. These provisions are 
consistent with other federal statutes, and are specifically 
modeled on the law relating to the Institute of Museum and 
Library Services.

Membership

    The Museum and Library Services Act of 2003 establishes 
that a majority of Commission members who have taken office and 
are serving on the Commission shall establish a quorum for the 
conduct of business, and allows a Commission member whose term 
has expired to continue serving until their successor is 
appointed, has taken office, and is serving on the Commission. 
The purpose of these amendments is to ensure that the 
Commission is able to act in periods when member terms have 
expired. These provisions are consistent with other statutes 
dealing with boards and commissions in the federal government.

                   TITLE V--MISCELLANEOUS PROVISIONS

Arts and Artifacts Indemnity Act

    The Museum and Library Services Act of 2003 also includes 
an increase in indemnity levels contained in the Arts and 
Artifacts Indemnity Act. In order to cover the rising costs of 
insurance, Section 501 raises the overall level of available 
indemnity to $8 billion. This provision also includes an 
increase in the per-exhibition cap for indemnification from 
$500 million to $600 million and makes corresponding 
adjustments in deductible levels. These changes are designed to 
better facilitate the international exchange and display of 
works of art, books, rare documents and other published 
materials, artifacts, and films and other audiovisual media. It 
is the Committee's hope that with these changes, the Arts and 
Artifacts Indemnity Program will ensure that people throughout 
the world are exposed to American culture and that our own 
citizens will have richer educational opportunities available 
as well.

National Children's Museum

    Currently, there is no national museum devoted exclusively 
to children. However, the committee believes that the 
designation of the Capital Children's Museum in Washington, DC 
as the ``National Children's Museum'' will highlight the 
importance of early childhood education, and reinforce the 
Nation's commitment to educationally underserved children. The 
Capital Children's Museum, founded in 1974, is one of the 
original children's museums in the Nation, and provides a 
national model for innovative learning experiences. This 
designation, contained in section 501, is endorsed by the 
Association of Children's Museums in order to raise awareness 
of the Nation's children's museums.

                            V. Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 21, 2003.
Hon. Judd Gregg,
Chairman, Committee on Health, Education, Labor, and Pensions,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 888, the Museum and 
Library Services Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Donna Wong.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 888--Museum and Library Services Act of 2003

    Summary: S. 888 would reauthorize programs under the Museum 
and Library Services Act of 1996 that were authorized through 
2002. Programs were authorized for 2003 by the Consolidated 
Appropriations Resolution, 2003 (Public Law 108-7). S. 888 
would reauthorize these programs through 2009.
    S. 888 also would increase total indemnity limits under the 
Arts and Artifacts Indemnity Act from $5 billion to $8 billion. 
CBO estimates that enacting S. 888 would result in a negligible 
amount of direct spending over the 2003-2009 period.
    CBO estimates that authorizations under the bill would 
total $292 million in 2004 and about $1.8 billion over the 
2004-2009 period, assuming that annual levels are adjusted for 
inflation when specific annual authorizations are not provided. 
(Without such inflation adjustments, the authorizations would 
total about $1.7 billion over the 2004-2009 period.) CBO 
estimates that appropriations of the authorized levels would 
result in additional outlays of $1.5 billion over the 2004-2009 
period, if inflation adjustments are included (and about $1.4 
billion without inflation adjustments).
    S. 888 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments. This bill would benefit states and other 
participating entities by authorizing grant funding for 
updating museum and library services. Any costs incurred by 
states to participate in this program would be voluntary.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 888 is shown in the following table. The 
costs of this legislation fall within budget function 500 
(education, training, employment, and social services). CBO's 
estimate of authorized levels is the authorized amount for 2004 
with those amounts inflated in later years. The estimated 
outlays reflect CBO's current assumptions about spending 
patterns in the authorized programs.

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                           2003    2004    2005    2006    2007    2008    2009
----------------------------------------------------------------------------------------------------------------
                                      SPENDING SUBJECT TO APPROPRIATION \1\
Spending Under Current Law:
    Budget Authority \2\................................     244       0       0       0       0       0       0
    Estimated Outlays...................................     231     185      71       0       0       0       0
Proposed Changes:
    Library Services:
        Estimated Authorization Level...................       0     250     255     260     266     272     278
        Estimated Outlays...............................       0      53     169     254     260     265     271
    Museum Services:
        Estimated Authorization Level...................       0      42      42      43      44      45      46
        Estimated Outlays...............................       0      12      42      43      43      44      45
    Total Proposed Changes:
        Estimated Authorization Level...................       0     292     297     304     310     317     324
        Estimated Outlays...............................       0      65     210     297     303     310     316
Total Spending Under S. 888:
    Budget Authority/Authorization Level \2\............     244     292     297     304     310     317     324
    Estimated Outlays...................................     231     249     281     297     303     310     316
----------------------------------------------------------------------------------------------------------------
\1\ S. 888 also would affect direct spending, through the arts indemnity program; but CBO estimates that those
  costs would be less than $500,000 a year.
\2\ The 2003 level is the amount appropriated for that year for the library and museum services programs.

Note.--Components may not sum to totals because of rounding.

    Basis of estimate: S. 888 reauthorize programs created 
under the Museum and Library Services Act. Both the Library and 
Museum Services programs would be reauthorized at specific 
levels for 2004 and for such sums as may be necessary for 2005 
through 2009.
    S. 888 would authorize the appropriation of $292 million in 
2004. CBO estimates that the bill would authorize total funding 
of $1.8 billion over the 2004-2009 period assuming that amounts 
provided after 2004 are adjusted for inflation. If the 
authorized amounts are appropriated, outlays would increase by 
$65 million in the first year and by $1.5 billion over the six-
year period. (Without inflation adjustments, the increased 
authorizations would result in outlays of $1.4 billion over the 
six years.)
    S. 888 would increase total indemnity limits under the Arts 
and Artifacts Indemnity Act from $5 billion to $8 billion. CBO 
estimates that enacting S. 888 would result in a negligible 
amount of direct spending over the 2003-2009 period.

Spending subject to appropriation

    Office of Library Services. The Office of Library Services 
within the Institute of Museum and Library Services provides 
funding to public libraries through state formula grants so 
that libraries can promote wider access to learning and 
information. Competitive grants are also available for 
libraries that submit innovative ideas to improve information 
access. The program also supports collaborative activities 
between museums and libraries. The bill would authorize the 
Library Services program at $250 million in 2004 and such sums 
as may be necessary for the 2005-2009 period. CBO estimates the 
total funding for the 2004-2009 period would be about $1.6 
billion, assuming adjustments for inflation, with resulting 
outlays of $1.3 billion over those six years.
    Office of Museum Services. The Office of Museum Services 
provides competitive grants to museums to improve museum 
programs and operations. The bill would reauthorize the current 
program at $42 million in 2004 and such sums as may be 
necessary for each of the following five years. For this 
program, CBO estimates the total funding for the 2004-2009 
period would be $262 million, assuming adjustments for 
inflation, with resulting outlays of $230 million over six 
years.
    The bill also would add a National Museum and Library 
Services Board within the Institute of Museum and Library 
Services, allow the director to grant national awards to 
libraries and museums that have made significant contributions 
to their communities, and would instruct the director to report 
on the impact of the Museum and Library Services programs. 
Funding for the board's activities would come out of the 
amounts authorized for the Office of Library Services and the 
Office of Museum Services.

Direct spending

    S. 888 would increase total indemnity limits under the Arts 
and Artifacts Indemnity Act from $5 billion to $8 billion. The 
bill also would increase the limit for a single exhibition from 
$500 million to $600 million and would change the deductible 
limits. The Arts and Artifacts Indemnity Act authorizes the 
Federal Council on the Arts and Humanities to enter into 
agreements to cover certain eligible works of art while these 
objects are traveling on exhibition in the United States or 
abroad. Coverage includes the time the objects are in transit 
and while they are on exhibition.
    According to information from the National Endowment for 
the Arts, there have been two claims totaling $105,000 since 
1976, the first year of the program. Loss or damage claims are 
first paid out of the Arts and Artifacts Indemnity Fund--a 
gifts and donations fund for this purpose. The fund currently 
has a balance of $280,000, but CBO judges that the costs to the 
government are not limited by the balances in the fund. 
Although the government would be exposing itself to more risk 
if the indemnity limits were raised $3 billion, CBO estimates 
that such spending would be less than $500,000 in each fiscal 
year.
    Intergovernmental and private-sector impact: S. 888 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. This bill would benefit states and other 
participating entities by authorizing grant funding for 
streamlining and updating museum and library services. Any 
costs incurred by states to participate in this program would 
be voluntary.
    Previous CBO estimate: On February 24, 2003, CBO 
transmitted a cost estimate for H.R. 13, the Museum and Library 
Services Act of 2003, as ordered reported by the House 
Committee on Education and the Workforce on February 13, 2003, 
H.R. 13 would authorize slightly less funding for museums and 
libraries and would not amend the Arts and Artifacts Indemnity 
Act.
    Estimate prepared by: Federal Costs: Donna Wong; Impact on 
State, Local, and Tribal Governments: Greg Waring; and Impact 
on the Private Sector: Nabeel Alsalam.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    VI. Regulatory Impact Statement

    The committee has determined that there will be minimal 
increases in the regulatory burden imposed by this bill.

           VII. Application of Law to the Legislative Branch

    The committee has determined that there is no legislative 
impact.

                   VIII. Section-by-Section Analysis


Section 1. Short title

    This act may be cited as the ``Museum and Library Services 
Act of 2003.''

Section 2. Table of contents

Section 101. General definitions

    This Section amends Section 202 of the Museum and Library 
Services Act to define the following terms: determined to be 
obscene; final judgment; Indian tribe; Museum and Library 
Services Board; and obscene.

Section 102. Institute of Museum and Library Services

    This section amends section 203 to create a National Museum 
and Library Services Board within the Institute of Museum and 
Library Services.

Section 103. Director of the Institute

    This section amends section 204 to ensure that the Director 
coordinates the library activities of the IMLS with the school 
library provisions of section 1251 of the Elementary and 
Secondary Education Act of 1965, as added by the No Child Left 
Behind Act. This section also provides the Director with the 
authority to promulgate regulations and establish procedures 
for reviewing and evaluating applications submitted under the 
act. This section prohibits financial assistance from being 
provided under the act to projects determined to be obscene.

Section 104. National Museum and Library Services Board

    This section establishes a National Museum and Library 
Services Board within the Institute of Museum and Library 
Services, composed of: the Director; the Deputy Director for 
the Office of Library Services; the Deputy Director for the 
Office of Museum Services; the Chairman of the National 
Commission on Libraries and Information Science; ten members 
appointed by the President, by and with the advice and consent 
of the Senate, from among individuals who are citizens of the 
United States and who are specially qualified by virtue of 
their education, training, or experience in the area of library 
services, or their commitment to libraries; and ten members 
appointed by the President, by and with the advice and consent 
of the Senate, from among individuals who are citizens of the 
United States and who are specially qualified by virtue of 
their education, training, or experience in the area of museums 
services, or their commitment to museums. Of the library 
members, five shall be professional librarians or information 
specialists. Of the museum members, five shall be museum 
professionals who are or have been affiliated with resources 
that are broadly representative of the resources of the United 
States, or museums that are broadly representative of various 
types of museums. Board members may not include, at any time, 
more than three appointed members from a single State, and the 
President shall give due regard to equitable representation of 
women, minorities, and persons with disabilities in his 
appointments. The Director shall serve as Chairperson of the 
Museum and Library Services Board.
    This section also designates the Director, Deputy Director 
of the Office of Library Services, Deputy Director of the 
Office of Museum Services, and the Chairman of the National 
Commission on Library and Information Science as nonvoting 
members of the Museum and Library Services Board. This section 
also provides for 5-year terms for members of the Board, except 
in certain defined circumstances. Members appointed to fill a 
vacancy shall serve for the remainder of the term for which 
their predecessor was appointed. No appointed member of the 
Board who has been a member for more than seven consecutive 
years shall be eligible for reappointment. An appointed member 
of the Board shall serve after the expiration of their term 
until a successor takes office.
    This section also provides that the Museum and Library 
Services Board shall advise the Director on general policies 
with respect to the duties, powers, and authority of the IMLS 
relating to museum and library services, including financial 
assistance under the Museum and Library Services Act and making 
awards under section 209. This Section also requires that the 
Director, with the advice of the Board, coordinate the policies 
and activities of the IMLS with other activities of the Federal 
Government.
    This section also provides that the Museum and Library 
Services Board shall meet not less than two times each year and 
at the call of the Director. All decisions by the Museum and 
Library Services Board shall be made by a majority vote of the 
members of the Board who are present and authorized to vote. A 
majority of the voting members of the Board shall constitute a 
quorum for the conduct of business at official meetings. This 
section also establishes rules for the compensation of Board 
members.

Section 105. Awards; analysis of impact of services

    This section adds a new section 209 that authorizes the 
Director, with the advice of the Board, to annually award 
National Awards for Library Service and National Awards for 
Museum Service to outstanding libraries and outstanding 
museums, respectively.
    This section also adds a new section 210 that requires the 
Director, in consultation with State library agencies, library 
and museum organizations, and others, to: identify national 
needs for, and trends of, museum and library services provided 
with assistance under the Museum and Library Services Act; 
report on the impact and effectiveness of funded programs in 
addressing these needs; and disseminate information on the best 
practices of such programs.
    This section also adds a new section 210A that prohibits 
funds appropriated to carry out the Museum and Library Services 
Act from being used for construction expenses.

Section 201. Purpose

    This section amends section 212 so that the purposes of the 
Library Services and Technology Act are as follows: (1) 
consolidation of federal library service programs; (2) 
promotion of improvement in library services in all types of 
libraries in order to better serve the people of the United 
States; (3) facilitation of access to resources in all types of 
libraries for the purpose of cultivating an educated and 
informed citizenry; and (4) encouraging resource sharing among 
all types of libraries for the purpose of achieving economical 
and efficient delivery of library services to the public.

Section 202. Definitions

    This section amends section 213 by striking the definition 
of an Indian tribe.

Section 203. Authorization of appropriations

    This section amends section 214 to authorize $250,000,000 
for fiscal year 2004 and such sums as may be necessary for 
fiscal years 2005 through 2009 for IMLS programs under the 
Library Services and Technology Act. This section also 
increases the percentage of funds appropriated under the 
Library Services and Technology Act that may be used for 
administration from 3 percent to 3.5 percent.

Section 204. Reservations and allotments

    This section amends section 221 to authorize an increase in 
the minimum State allotment for library programs to $680,000, 
while also ensuring that no State's allotment falls below its 
2003 level. If funding is insufficient to raise the minimum 
State allotment to $680,000 and, at the same time, hold all 
States harmless, then the minimum State allotment will be set 
at $340,000 (the current minimum State allotment). Any 
additional funding above that level would be distributed 
equally among the States until the minimum amount of $680,000 
per State is reached. Any funding above the State minimum of 
$680,000 would be awarded to States based on population (as 
under current law). This section also increases the minimum 
allotment for the United States Virgin Islands, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, the 
Republic of the Marshall Islands, the Federated States of 
Micronesia, and the Republic of Palau to $60,000, as long as 
each State receives a minimum allotment of $680,000.

Section 205. State plans

    This section updates and amends section 224 to require that 
State plans be submitted every five years.

Section 206. Grants to States

    This section amends section 231 to broaden the allowable 
use of funds for State library agency grants to include the 
following: (1) expanding services for learning and access to 
information and educational resources in a variety of formats, 
in all types of libraries, for individuals of all ages; (2) 
developing library services that provide all users access to 
information through local, State, regional, national, and 
international electronic networks; (3) providing electronic and 
other linkages among and between all types of libraries; (4) 
developing public and private partnerships with other agencies 
and community-based organizations; (5) targeting library 
services to individuals of diverse geographic, cultural, and 
socioeconomic backgrounds, to individuals with disabilities, 
and to individuals with limited functional literacy or 
information skills; and (6) targeting library and information 
services to persons having difficulty using a library and to 
underserved urban and rural communities, including children 
from families with incomes below the poverty line.

Section 207. National leadership grants, contracts, or cooperative 
        agreements

    This section amends section 262 to allow grants, contracts, 
and cooperative agreements to be used for activities that 
include the recruitment of persons in library and information 
science.

Seciton 301. Purpose

    This section amends the purposes of the Museum Services Act 
to include the following: (1) encouraging and supporting 
museums in carrying out their public service role of connecting 
the whole of society to the cultural, artistic, historical, 
natural, and scientific understandings that constitute our 
heritage; (2) encouraging and supporting museums in carrying 
out their educational role as core providers of learning and in 
conjunction with schools, families, and communities; (3) 
encouraging leadership, innovation, and applications of the 
most current technologies and practices to enhance museum 
services; (4) assisting, encouraging, and supporting museums in 
carrying out their stewardship responsibilities to achieve the 
highest standards in conservation and care of the cultural, 
historic, natural, and scientific heritage of the United States 
to benefit future generations; (5) assisting, encouraging, and 
supporting museums in achieving the highest standards of 
management and service to the public, and to ease the financial 
burden borne by museums as a result of their increasing use by 
the public; and (6) supporting resource sharing and 
partnerships among museums, libraries, schools, and other 
community organizations.

Section 302. Definitions

    This section amends section 272 by specifically referencing 
the following types of museums within the definition of a 
museum: aquariums, arboretums, botanical gardens, art museums, 
children's museums, general museums, historic houses and sites, 
history museums, nature centers, natural history and 
anthropology museums, planetariums, science and technology 
centers, specialized museums, and zoological parks.

Section 303. Museum service activities

    This section amends the allowable use of funds under the 
Museum Services Act to include the following: (1) supporting 
museums in providing learning and access to collections, 
information, and educational resources in a variety of formats 
(including exhibitions, programs, publications, and websites) 
for individuals of all ages; (2) supporting museums in building 
learning partnerships with the Nation's schools and developing 
museum resources and programs in support of State and local 
school curricula; (3) supporting museums in assessing, 
conserving, researching, maintaining, and exhibiting their 
collections, and in providing educational programs to the 
public through the use of their collections; (4) stimulating 
greater collaboration among museums, libraries, schools, and 
other community organizations in order to share resources and 
strengthen communities; (5) encouraging the use of new 
technologies and broadcast media to enhance access to museum 
collections, programs, and services; (6) supporting museums in 
providing services to people of diverse geographic, cultural, 
and socioeconomic backgrounds and to individuals with 
disabilities; (7) supporting museums in developing and carrying 
out specialized programs for specific segments of the public, 
such as programs for urban neighborhoods, rural areas, Indian 
reservations, and State institutions; (8) supporting 
professional development and technical assistance programs to 
enhance museum operations at all levels, in order to ensure the 
highest standards in all aspects of museum operations; (9) 
supporting museums in research, program evaluation, and the 
collection and dissemination of information to museum 
professionals and the public; and (10) encouraging, supporting, 
and disseminating model programs of museum and library 
collaboration.
    This section also limits the Federal share of funded 
projects to 50 percent, except that the Director may use not 
more than 20 percent of the funds made available under the 
Museum Services Act to enter into arrangements for which the 
Federal share may be greater than 50 percent. This section also 
prohibits funds for operational expenses from being provided 
under this section to any entity that is not a museum, and 
requires the Director to establish procedures for reviewing and 
evaluating grants, contracts, cooperative agreements and other 
forms of assistance with museums and other entities for the 
activities specified in the Museum Services Act. Not more than 
10 percent of funds appropriated to carry out the Museum 
Services Act may be used for technical assistance awards. 
Individual museums may not receive more than three technical 
assistance awards on a non-peer reviewed basis. Additional 
technical assistance grants shall be subject to review outside 
the IMLS.
    This section also requires the Director to reserve 1.75 
percent from amounts appropriated under section 275 to award 
grants to, or enter into contracts or cooperative agreements 
with, Indian tribes and organizations that primarily serve and 
represent Native Hawaiians.

Section 304. Repeals

    This section repeals section 274 and 275 of the Museum and 
Library Services Act.

Section 305. Authorization of appropriations

    This section amends section 276 to authorize $41,500,000 
for fiscal year 2004 and such sums as may be necessary for 
fiscal years 2005 through 2009.

Section 306. Short title

    This section adds a new section 271 which designates the 
subtitle authorizing museum programs as the ``Museum Services 
Act.''

Section 401. Amendments to contributions

    This section amends section 4 of the National Commission on 
Libraries and Information Science Act to allow the Commission 
to solicit, and invest in the name of the United States, gifts, 
bequests, and devises of service or property.

Section 402. Amendments to membership

    This section amends section 6(a) of the National Commission 
on Libraries and Information Science Act to make a technical 
correction; establish that a majority of Commission members who 
have taken office and are serving on the Commission shall 
establish a quorum for the conduct of business at official 
meetings of the Commission; and allow a Commission member whose 
term has expired to continue serving until their successor is 
appointed, has taken office, and is serving on the Commission.

Section 501. Amendments to Arts and Artifacts Indemnity Act

    This section amends section 5 of the Arts and Artifacts 
Indemnity Act to raise the overall level of available indemnity 
to $8 billion, increase the per-exhibition cap for 
indemnification from $500 million to $600 million, and adjust 
the corresponding deductible levels.

Section 502. National Children's Museum

    This section designates the Capital Children's Museum, 
located at 800 Third Street, N.E., Washington, DC (or any 
successor location), organized under the laws of the District 
of Columbia, as the ``National Children's Museum''. Any 
references in a law, map, regulation, document, paper, or other 
record of the United States to the Capital Children's Museum 
shall be deemed a reference to the National Children's Museum.

Section 503. Conforming amendment

    This section amends section 170(e)(6)(B)(i)(III) of the 
Internal Revenue Code of 1986 to properly reference the 
definition of a library under the Library Services and 
Technology Act.

Section 504. Technical corrections

    This section amends certain title and subtitle headings in 
the Museum and Library Services Act, and corrects certain 
grammatical and punctuation mistakes in that Act.

Section 505. Repeals

    This section repeals section 5(b) and 5(c) of the National 
Commission on Libraries and Information Science Act, relating 
to the Commission's role as an advisory body to the Institute 
of Museum and Library Services. This section also repeals 
sections 704 through 707 of the Museum and Library Services Act 
of 1996, relating to the transition to the Institute of Museum 
and Library Services.

Section 506. Effective date

    This section makes the Museum and Library Services Act 
effective on the date of enactment, except that the amendments 
made by sections 203, 204, and 305 shall take effect on October 
1, 2003.

                       X. Changes in Existing Law

    In compliance with rule XXVI paragraph 12 of the Standing 
Rules of the Senate, the following provides a print of the 
statute or the part or section thereof to be amended or 
replaced (existing law proposed to be omitted is enclosed in 
black brackets, new matter is printed in italic, existing law 
in which no change is proposed is shown in roman):

MUSEUM AND LIBRARY SERVICES ACT OF 2003

           *       *       *       *       *       *       *



                [TITLE II--MUSEUM AND LIBRARY SERVICES]


                 TITLE II--MUSEUM AND LIBRARY SERVICES

                    [Subtitle A--General Provisions]


Subtitle A--General Provisions

           *       *       *       *       *       *       *


SEC. 202. GENERAL DEFINITIONS.

    As used in this title:
          [(1) Commission.--The term ``Commission'' means the 
        National Commission on Libraries and Information 
        Science established under section 3 of the National 
        Commission on Libraries and Information Sciences Act 
        (20 U.S.C. 1502)]
          (1) Determined to be obscene.--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 obscence.
          (2) Director.--The term ``Director'' means the 
        Director of the Institute appointed under section 204.
          (3) Final judgment.--The term ``final judgment'' 
        means a judgment that is--
                  (A) not reviewed by any other court that has 
                authority to review such judgment; or
                  (B) not reviewable by any other court.
          [(4) Museum board.--The term ``Museum Board'' means 
        the National Museum Services Board established under 
        section 275.]
          (4) Indian tribe.--The term ``Indian tribe'' means 
        any tribe, band, nation, or other organized group or 
        community, including any Alaska native village, 
        regional corporation, or village corporation (as 
        defined in, or established pursuant to, the Alaska 
        Native Claims Settlement Act (43 U.S.C. 1601 et seq.)), 
        which is recognized by the Secretary of the Interior as 
        eligible for the special programs and services provided 
        by the United States to Indians because of their status 
        as Indians.
          [(3)] (5) Institute.--The term ``Institute'' means 
        the Institute of Museum and Library Services 
        established under section 203.
          (6) Museum and library services board.--The term 
        ``Museum and Library Services Board'' means the 
        National Museum and Library Services Board established 
        under section 207.
          (7) Obscene.--The term ``obscene'' means, with 
        respect to a project, that--
                  (A) the average person, applying contemporary 
                community standards, would find that such 
                project, when taken as a whole, appeals to the 
                prurient interest;
                  (B) such project depicts or describes sexual 
                conduct in a patently offensive way; and
                  (C) such project, when taken as a whole, 
                lacks serious literary, artistic, political, or 
                scientific value.

           *       *       *       *       *       *       *


SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

    (a) Establishment.--There is established, within the 
National Foundation on the Arts and the Humanities, an 
Institute of Museum and Library Services.
    (b) Offices.--The Institute shall consist of an Office of 
Museum Services and an Office of Library Services. [There shall 
be a National Museum Services Board in the Office of Museum 
Services.]
    (c) Museum and Library Services Board.--There shall be a 
National Museum and Library Services Board within the 
Institute, as provided under section 207.

           *       *       *       *       *       *       *


SEC. 204. DIRECTOR OF THE INSTITUTE.

    (a) Appointment.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

    (e) Coordination.--The Director shall ensure coordination 
of the policies and activities of the Institute with the 
policies and activities of other agencies and offices of the 
Federal Government having interest in and responsibilities for 
the improvement of museums and libraries and information 
services.
    Where appropriate, the Director shall ensure that 
activities under subtitle B are coordinated with activities 
under section 1251 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6383).
    (f) Regulatory Authority.--The Director may promulgate such 
rules and regulations as are necessary and appropriate to 
implement the provisions of this title.
    (g) Application Procedures.--
          (1) In general.--In order to be eligible to receive 
        financial assistance under this title, a person or 
        agency shall submit an application in accordance with 
        procedures established by the Director by regulation.
          (2) Review and evaluation.--The Director shall 
        establish procedures for reviewing and evaluating 
        applications submitted under this title. Actions of the 
        Institute and the Director in the establishment, 
        modification, and revocation of such procedures under 
        this Act are vested in the discretion of the Institute 
        and the Director. In establishing such procedures, the 
        Director shall ensure that the criteria by which 
        applications are evaluated are consistent with the 
        purposes of this title, taking into consideration 
        general standards of decency and respect for the 
        diverse beliefs and values of the American public.
          (3) Treatment of projects determined to be obscene.--
                  (A) In general.--The procedures described in 
                paragraph (2) shall include provisions that 
                clearly specify that obscenity is without 
                serious literary, artistic, political, or 
                scientific merit, and is not protected speech.
                  (B) Prohibition.--No financial assistance may 
                be provided under this title with respect to 
                any project that is determined to be obscene.
                  (C) Treatment of application disapproval.--
                The disapproval of an application by the 
                Director shall not be construed to mean, and 
                shall not be considered as evidence that, the 
                project for which the applicant requested 
                financial assistance is or is not obscene.

           *       *       *       *       *       *       *


SEC. 207. NATIONAL MUSEUM AND LIBRARY SERVICES BOARD.

    (a) Establishment.--There is established within the 
Institute a board to be known as the ``National Museum and 
Library Services Board''.
    (b) Membership.--
          (1) Number and appointment.--The Museum and Library 
        Services Board shall be composed of the following:
                  (A) The Director.
                  (B) The Deputy Director for the Office of 
                Library Services.
                  (C) The Deputy Director for the Office of 
                Museum Services.
                  (D) The Chairman of the National Commission 
                on Libraries and Information Science.
                  (E) 10 members appointed by the President, by 
                and with the advice and consent of the Senate, 
                from among individuals who are citizens of the 
                United States and who are specially qualified 
                by virtue of their education, training, or 
                experience in the area of library services, or 
                their commitment to libraries.
                  (F) 10 members appointed by the President, by 
                and with the advice and consent of the Senate, 
                from among individuals who are citizens of the 
                United States and who are specially qualified 
                by virtue of their education, training, or 
                experience in the area of museum services, or 
                their commitment to museums.
          (2) Special qualifications.--
                  (A) Library members.--Of the members of the 
                Museum and Library Services Board appointed 
                under paragraph (1)(E)--
                          (i) 5 shall be professional libraries 
                        or information specialists, of whom--
                                  (I) not less than 1 shall be 
                                knowledgeable about electronic 
                                information and technical 
                                aspects of library and 
                                information services and 
                                sciences; and
                                  (II) not less than 1 other 
                                shall be knowledgeable about 
                                the library and information 
                                service needs of underserved 
                                communities; and
                          (ii) the remainder shall have special 
                        competence in, or knowledge of, the 
                        needs for library and information 
                        services in the United States.
                  (B) Museum members.--Of the members of the 
                Museum and Library Services Board appointed 
                under paragraph (1)(F)--
                          (i) 5 shall be museum professionals 
                        who are or have been affiliated with--
                                  (I) resources that, 
                                collectively, are broadly 
                                representative of the 
                                curatorial, conservation, 
                                educational, and cultural 
                                resources of the United States; 
                                or
                                  (II) museums that, 
                                collectively, are broadly 
                                representative of various types 
                                of museums, including museums 
                                relating to science, history, 
                                technology, art, zoos, 
                                botanical gardens, and museums 
                                designed for children; and
                          (ii) the remainder shall be 
                        individuals recognized for their broad 
                        knowledge, expertise, or experience in 
                        museums or commitment to museums.
          (3) Geographic and other representation.--Members of 
        the Museum and Library Services Board shall be 
        appointed to reflect persons from various geographic 
        regions of the United States. The Museum and Library 
        Services Board may not include, at any time, more than 
        3 appointive 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 with museums 
        and libraries.
          (4) Voting.--The Director, the Deputy Director of the 
        Office of Library Services, the Deputy Director of the 
        Office of Museum Services, and the Chairman of the 
        National Commission on Library and Information Science 
        shall be nonvoting members of Museum and Library 
        Services Board.
    (c) Terms.--
          (1) In general.--Except as otherwise provided in this 
        subsection, each member of the Museum and Library 
        Services Board appointed under subparagraph (E) or (F) 
        of subsection (b)(1) shall serve for a term of 5 years.
          (2) Initial board appointments.--
                  (A) Treatment of members serving on effective 
                date.--Notwithstanding subsection (b), each 
                individual who is a member of the National 
                Museum Services Board on the date of enactment 
                of the Museum and Library Services Act of 2003, 
                may, at the individual's election, complete the 
                balance of the individual's term as a member of 
                the Museum and Library Services Board.
                  (B) First appointments.--Notwithstanding 
                subsection (b), any appointive vacancy in the 
                initial membership of the Museum and Library 
                Services Board existing after the application 
                of subparagraph (A), and any vacancy in such 
                membership subsequently created by reason of 
                the expiration of the term of an individual 
                described in subparagraph (A), shall be filled 
                by the appointment of a member described in 
                subsection (b)(1)(E). When the Museum and 
                Library Services Board consists of an equal 
                number of individuals who are specially 
                qualified in the area of library services and 
                individuals who are specially qualified in the 
                area of museum services, this subparagraph 
                shall cease to be effective and the board shall 
                be appointed in accordance with subsection (b).
                  (C) Authority to adjust terms.--The terms of 
                the first members appointed to the Museum and 
                Library Service Board shall be adjusted by the 
                President as necessary to ensure that the terms 
                of not more than 4 members expire in the same 
                year. Such adjustments shall be carried out 
                through designation of the adjusted term at the 
                time of appointment.
          (3) Vacancies.--Any member appointed to fill a 
        vacancy shall serve for the remainder of the term for 
        which the predecessor of the member was appointed.
          (4) Reappointment.--No appointive member of the 
        Museum and Library Services Board who has been a member 
        for more than 7 consecutive years shall be eligible for 
        reappointment.
          (5) Service until successor takes office.--
        Notwithstanding any other provision of this subsection, 
        an appointive member of the Museum and Library Services 
        Board shall serve after the expiration of the term of 
        the member until the successor to the member takes 
        office.
    (d) Duties and Powers.--
          (1) In general.--The Museum and Library Services 
        Board shall advise the Director on general policies 
        with respect to the duties, powers, and authority of 
        the Institute relating to museum and library services, 
        including financial assistance awarded under this 
        title.
          (2) National awards.--The Museum and Library Services 
        Board shall advise the Director in making awards under 
        section 209.
    (e) Chairperson.--The Director shall serve as Chairperson 
of the Museum and Library Services Board.
    (f) Meetings.--
          (1) In general.--The Museum and Library Services 
        Board shall meet not less than 2 times each year and at 
        the call of the Director.
          (2) Vote.--All decisions by the Museum and Library 
        Services Board with respect to the exercise of its 
        duties and powers shall be made by a majority vote of 
        the members of the Board who are present and authorized 
        to vote.
    (g) Quorum.--A majority of the voting members of the Museum 
and Library Services Board shall constitute a quorum for the 
conduct of business at official meetings, but a lesser number 
of members may hold hearings.
    (h) Compensation and Travel Expenses.--
          (1) Compensation.--Each member of the Museum and 
        Library Services Board who is not an officer or 
        employee of the Federal Government may be compensated 
        at a rate to be fixed by the President, but not to 
        exceed the daily equivalent of the maximum annual rate 
        of pay authorized for a position above grade GS-15 of 
        the General Schedule under section 5108 of title 5, 
        United States Code, for each day (including travel 
        time) during which such member is engaged in the 
        performance of the duties of the Museum and Library 
        Services Board. Members of the Museum and Library 
        Services Board who are full-time officers or employees 
        of the Federal Government may not receive additional 
        pay, allowances, or benefits by reason of their service 
        on the Museum and Library Services Board.
          (2) Travel expenses.--Each member of the Museum and 
        Library Services Board shall receive travel expenses, 
        including per diem in lieu of subsistence, in 
        accordance with applicable provisions under subchapter 
        I of chapter 57 of title 5, United States Code.
    (i) Coordination.--The Director, with the advice of the 
Museum and Library Services Board, shall take steps to ensure 
that the policies and activities of the Institute are 
coordinated with other activities of the Federal Government.

           *       *       *       *       *       *       *


[SEC. 207.] SEC. 208. CONTRIBUTIONS.

    The Institute is authorized to solicit, accept, receive,and 
invest in the name of the United States, gifts, bequests, or 
devises of money and other property or services and to use such 
[property of services] property or services in furtherance of 
the functions of the Institute. Any proceeds from such gifts, 
bequests, or devises, after acceptance by the Institute, shall 
be paid by the donor or the representative of the donor to the 
Director. The Director shall enter the proceeds in a special-
interest bearing account to the credit of the Institute for the 
purposes specified in each case.

           *       *       *       *       *       *       *


SEC. 209. AWARDS.

    The Director, with the advice of the Museum and Library 
Services Board, may annually award National Awards for Library 
Service and National Awards for Museum Service to outstanding 
libraries and outstanding museums, respectively, that have made 
significant contributions in service to their communities.

           *       *       *       *       *       *       *


SEC. 210. ANALYSIS OF IMPACT OF MUSEUM AND LIBRARY SERVICES.

    From amounts described in sections 214(c) and 275(b), the 
Director shall carry out and publish analyses of the impact of 
museum and library services. Such analyses--
          (1) shall be conducted in ongoing consultation with--
                  (A) State library administrative agencies;
                  (B) State, regional, and national library and 
                museum organizations; and
                  (C) other relevant agencies and 
                organizations;
          (2) shall identify national needs for, and trends of, 
        museum and library services provided with funds made 
        available under subtitles B and C;
          (3) shall report on the impact and effectiveness of 
        programs conducted with funds made available by the 
        Institute in addressing such needs; and
          (4) shall identify, and disseminate information on, 
        the best practices of such programs to the agencies and 
        entities described in paragraph (1).

SEC. 210A. PROHIBITION ON USE OF FUNDS FOR CONSTRUCTION.

    No funds appropriated to carry out the Museum and Library 
Services Act, the Library Services and Technology Act, or the 
Museum Services Act may be used for construction expenses.

           *       *       *       *       *       *       *


             [Subtitle B--Library Services and Technology]


Subtitle B--Library Services and Technology

           *       *       *       *       *       *       *


               TITLE II--LIBRARY SERVICES AND TECHNOLOGY

SEC. 212. PURPOSE.

    It is the purpose of this subtitle--
          (1) to consolidate Federal library service programs;
          [(2) to stimulate excellence and promote access to 
        learning and information resources in all types of 
        libraries for individuals of all ages;
          [(3) to promote library services that provide all 
        users access to information through State, regional, 
        national and international electronic networks;
          [(4) to provide linkages among and between libraries; 
        and
          [(5) to promote targeted library services to people 
        of diverse geographic, cultural, and socioeconomic 
        backgrounds, to individuals with disabilities, and to 
        people with limited functional literacy or information 
        skills.]
          (2) to promote improvement in library services in all 
        types of libraries in order to better serve the people 
        of the United States;
          (3) to facilitate access to resources in all types of 
        libraries for the purpose of cultivating an educated 
        and informed citizenry; and
          (4) to encourage resource sharing among all types of 
        libraries for the purpose of achieving ecomonical and 
        efficient delivery of library services to the public.

           *       *       *       *       *       *       *


SEC. 213. DEFINITIONS.

    As used in this subtitle:
          [(1) Indian tribe.--The term ``Indian tribe'' means 
        any tribe, band, nation, or other organized group or 
        community, including any Alaska native village, 
        regional corporation, or village corporation, as 
        defined in or established pursuant to the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1601 et seq.), which 
        is recognized by the Secretary of the Interior as 
        eligible for the special programs and services provided 
        by the United States to Indians because of their status 
        as Indians.]
          [(2)] (1) Library.--The term ``library'' includes--
                  (A) a public library;
                  (B) a public elementary school or secondary 
                school library;
                  (C) an academic library;
                  (D) a research library, which for the 
                purposes of this subtitle means a library 
                that--
                          (i) makes publicly available library 
                        services and materials suitable for 
                        scholarly research and not otherwise 
                        available to the public; and
                          (ii) is not an integral part of an 
                        institution of higher education; and
                  (E) a private library or other special 
                library, but only if the State in which such 
                private or special library is located 
                determines that the library should be 
                considered a library for purposes of this 
                subtitle.
          [(3)] (2) Library consortium.--The term ``library 
        consortium'' means any local, statewide, regional, 
        interstate, or international cooperative association of 
        library entities which provides for the systematic and 
        effective coordination of the resources of school, 
        public, academic, and special libraries and information 
        centers, for improved services for the clientele of 
        such library entities.
          [(4)] (3) State.--The term ``State'', unless 
        otherwise specified, includes each of the 50 States of 
        the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the 
        Republic of Palau.
          [(5)] (4) State library administrative agency.--The 
        term ``State library administrative agency'' means the 
        official agency of a State charged by the law of the 
        State with the extension and development of public 
        library services throughout the State.
          [(6)] (5) State plan.--The term ``State plan'' means 
        the document which gives assurances that the officially 
        designated State library administrative agency has the 
        fiscal and legal authority and capability to administer 
        all aspects of this subtitle, provides assurances for 
        establishing the State's policies, priorities, 
        criteria, and procedures necessary to the 
        implementation of all programs under this subtitle, 
        submits copies for approval as required by regulations 
        promulgated by the Director, identifies a State's 
        library needs, and sets forth the activities to be 
        taken toward meeting the identified needs supported 
        with the assistance of Federal funds made available 
        under this subtitle.

           *       *       *       *       *       *       *


SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

    [(a) Authorization of Appropriations.--]
    (a) In General.--There are authorized to be appropriated to 
carry out this subtitle $250,000,000 for fiscal year 2004 and 
such sums as may be necessary for fiscal years 2005 through 
2009.

           *       *       *       *       *       *       *

    (c) Administration.--Not more than [3 percent] 3.5 percent 
of the funds appropriated under this section for a fiscal year 
may be used to pay for the Federal administrative costs of 
carrying out this subtitle.

           *       *       *       *       *       *       *


                 CHAPTER 1--BASIC PROGRAM REQUIREMENTS


SEC. 221. RESERVATIONS AND ALLOTMENTS.

    (a) Reservations.--

           *       *       *       *       *       *       *

    (b) * * *

           *       *       *       *       *       *       *

          [(3) Minimum allotment.--
                  [(A) In general.--For the purposes of this 
                subsection, the minimum allotment for each 
                State shall be $340,000, except that the 
                minimum allotment shall be $40,000 in the case 
                of the United States Virgin Islands, Guam, 
                American Samoa, the Commonwealth of the 
                Northern Mariana Islands, the Republic of the 
                Marshall Islands, the Federated States of 
                Micronesia, and the Republic of Palau.
                  [(B) Ratable reductions.--If the sum 
                appropriated under the authority of section 214 
                and not reserved under subsection (a) for any 
                fiscal year is insufficient to fully satisfy 
                the aggregate of the minimum allotments for all 
                States for that purpose for such year, each of 
                such minimum allotments shall be reduced 
                ratably.
                  [(C) Special rule.--
                          [(i) In general.--Notwithstanding any 
                        other provision of this subsection and 
                        using funds allotted for the Republic 
                        of the Marshall Islands, the Federated 
                        States of Micronesia, and the Republic 
                        of Palau under this subsection, the 
                        Director shall award grants to Guam, 
                        American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, the Republic 
                        of the Marshall Islands, the Federated 
                        States of Micronesia, or the Republic 
                        of Palau to carry out activities 
                        described in this subtitle in 
                        accordance with the provisions of this 
                        subtitle that the Director determines 
                        are not inconsistent with this 
                        subparagraph.
                          [(ii) Award basis.--The Director 
                        shall award grants pursuant to clause 
                        (i) on a competitive basis and pursuant 
                        to recommendations from the Pacific 
                        Region Educational Laboratory in 
                        Honolulu, Hawaii.
                          [(iii) Termination of eligibility.--
                        Notwithstanding any other provision of 
                        law, the Republic of the Marshall 
                        Islands, the Federated States of 
                        Micronesia, and the Republic of Palau 
                        shall not receive any funds under this 
                        subtitle for any fiscal year that 
                        begins after September 30, 2001.
                          [(iv) Administrative costs.--The 
                        Director may provide not more than 5 
                        percent of the funds made available for 
                        grants under this subparagraph to pay 
                        the administrative costs of the Pacific 
                        Region Educational Laboratory regarding 
                        activities assisted under this 
                        subparagraph.]
          (3) Minimum allotments.--
                  (A) In general.--For purposes of this 
                subsection, the minimum allotment for each 
                State shall be $340,000, except that the 
                minimum allotment shall be $40,000 in the case 
                of the United States Virgin Islands, Guam, 
                American Samoa, the Commonwealth of the 
                Northern Mariana Islands, the Republic of the 
                Marshall Islands, the Federated States of 
                Micronesia, and the Republic of Palau.
                  (B) Ratable reductions.--Notwithstanding 
                subparagraph (A), if the sum appropriated under 
                the authority of section 214 and not reserved 
                under subsection (a) for any fiscal year is 
                insufficient to fully satisfy the requirement 
                of subparagraph (A), each of the minimum 
                allotments under such subparagraph shall be 
                reduced ratably.
                  (C) Exception.--
                          (i) In general.--Notwithstanding 
                        subparagraph (A), if the sum 
                        appropriated under the authority of 
                        section 214 and not reserved under 
                        subsection (a) for any fiscal year 
                        exceeds the aggregate of the allotments 
                        for all States under this subsection 
                        for fiscal year 2003--
                                  (I) the minimum allotment for 
                                Each State otherwise receiving 
                                a minimum allotment of $340,000 
                                under subparagraph (A) shall be 
                                increased to $680,000; and
                                  (II) the minimum allotment 
                                for each State otherwise 
                                receiving a minimum allotment 
                                of $40,000 under subparagraph 
                                (A) shall be increased to 
                                $60,000.
                          (ii) Insufficient funds to award 
                        alternative minimum.--If the sum 
                        appropriated under the authority of 
                        section 214 and not reserved under 
                        subsection (a) for any fiscal year 
                        exceeds the aggregate of the allotments 
                        for all States under this subsection 
                        for fiscal year 2003 yet is 
                        insufficient to fully satisfy the 
                        requirement of clause (i), such excess 
                        amount shall first be allotted among 
                        the States described in clause (i)(I) 
                        so as to increase equally the minimum 
                        allotment for each such State above 
                        $340,000. After the requirement of 
                        clause (i)(I) is fully satisfied for 
                        any fiscal year, any remainder of such 
                        excess amount shall be allotted among 
                        the States described in clause (i)(II) 
                        so as to increase equally the minimum 
                        allotment for each such State above 
                        $40,000.
                  (D) Special rule.--
                          (i) In general.--Notwithstanding any 
                        other provision of this subsection and 
                        using funds allotted for the Republic 
                        of the Marshall Islands, the Federated 
                        States of Micronesia, and the Republic 
                        of Palau under this subsection, the 
                        Director shall award grants to the 
                        United States Virgin Islands, Guam, 
                        American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, the Republic 
                        of the Marshall Islands, the Federated 
                        States of Micronesia, or the Republic 
                        of Palau to carry out activities 
                        described in this subtitle in 
                        accordance with the provisions of this 
                        subtitle that the Director determines 
                        are not inconsistent with this 
                        subparagraph.
                          (ii) Award basis.--The Director shall 
                        award grants pursuant to clause (i) on 
                        a competitive basis and after taking 
                        into consideration available 
                        recommendations from the Pacific Region 
                        Educational Laboratory in Honolulu, 
                        Hawaii.
                          (iii) Administrative costs.--The 
                        Director may provide not more than 5 
                        percent of the funds made available for 
                        grants under this subparagraph to pay 
                        the administrative costs of the Pacific 
                        Region Educational Laboratory regarding 
                        activities assisted under this 
                        subparagraph.

           *       *       *       *       *       *       *


SEC. 224. STATE PLANS.

    (a) State Plan Required.--
          (1) In general.--In order to be eligible to receive a 
        grant under this subtitle, a State library 
        administrative agency shall submit a State plan to the 
        Director [not later than April 1, 1997.] once every 5 
        years, as determined by the Director.

           *       *       *       *       *       *       *

    (f) Internet Safety.--
          (1) In general.--No funds made available under [this 
        Act] this subtitle for a library described in [section 
        213(2)(A) or (B)] section 213(1)(A) or (B) that does 
        not receive services at discount rates under section 
        254(h)(6) of the Communications Act of [1934, as added 
        by section 1721 of this Children's Internet Protection 
        Act, may] 1934 (47 U.S.C. 254(h)(6) may be used to 
        purchase computers used to access the Internet, or to 
        pay for direct costs associated with accessing the 
        Internet, for such library unless--

           *       *       *       *       *       *       *

          (4) Timing and applicability of implementation.--
                  (A) In general.--A library covered by 
                paragraph (1) shall certify the compliance of 
                such library with the requirements of paragraph 
                (1) as part of the application process for the 
                next program funding year under [this Act] this 
                subtitle following the effective date of this 
                subsection, and for each subsequent program 
                funding year thereafter.
                          (i) Libraries with internet safety 
                        policies and technology protection 
                        measures in place.--A library covered 
                        by paragraph (1) that has in place an 
                        Internet safety policy meeting the 
                        requirements of paragraph (1) shall 
                        certify its compliance with paragraph 
                        (1) during each annual program 
                        application cycle under [this Act] this 
                        subtitle.

           *       *       *       *       *       *       *

                                  (I) for the first program 
                                year after the effective date 
                                of this subsection in which the 
                                library applies for funds under 
                                [this Act] this subtitle, shall 
                                certify that it is undertaking 
                                such actions, including any 
                                necessary procurement 
                                procedures, to put in place an 
                                Internet safety policy that 
                                meets such requirements; and
                                  (II) for the second program 
                                year after the effective date 
                                of this subsection in which the 
                                library applies for funds under 
                                [this Act] this subtitle, shall 
                                certify that such library is in 
                                compliance with such 
                                requirements.
                        Any library covered by paragraph (1) 
                        that is unable to certify compliance 
                        with such requirements in such second 
                        program year shall be ineligible for 
                        all funding under [this Act] this 
                        subtitle for such second program year 
                        and all subsequent program years until 
                        such time as such library comes into 
                        compliance with such requirements.
                          (ii) Libraries without internet 
                        safety policies and technology 
                        protection measures in place.--a 
                        library covered by paragraph (1) that 
                        does not have in place an Internet 
                        safety policy meeting the requirements 
                        of paragraph (1)--

           *       *       *       *       *       *       *

                        the Director of the Institute of Museum 
                        and Library Services of the 
                        applicability of that clause to the 
                        library. Such notice shall certify that 
                        the library will comply with the 
                        requirements in paragraph (1) before 
                        the start of the third program year 
                        after the effective date of this 
                        subsection for which the library is 
                        applying for funds under [this Act] 
                        this subtitle.
          (5) Noncompliance.--
                  (A) Use of general education provisions act 
                remedies.--Whenever the Director of the 
                Institute of Museum and Library Services has 
                reason to believe that any recipient of funds 
                [this Act] this subtitle is failing to comply 
                substantially with the requirements of this 
                subsection, the Director may--
                          (i) withhold further payments to the 
                        recipient under [this Act] this 
                        subtitle,

           *       *       *       *       *       *       *

          (7) Definitions.--In this [section:] subsection:

           *       *       *       *       *       *       *

                  (D) Obscene.--The term ``obscene'' has the 
                meaning [given] applicable to such term in 
                section 1460 of title 18, United States Code.

                      CHAPTER 2--LIBRARY PROGRAMS


SEC. 231. GRANTS TO STATES.

    (a) In General.--Of the funds provided to a State library 
administrative agency under section 214, such agency shall 
expend, either directly or through subgrants of cooperative 
agreements, at least 96 percent of such funds for--
          [(1)(A) establishing or enhancing electronic linkages 
        among or between libraries;
          [(B) electronically linking libraries with 
        educational, social, or information services;
          [(C) assisting libraries in accessing information 
        through electronic networks;
          [(D) encouraging libraries in different areas, and 
        encouraging different types of libraries, to establish 
        consortia and share resources; or
          [(E) paying costs for libraries to acquire or share 
        computer systems and telecommunications technologies; 
        and
          [(2) targeting library and information services to 
        persons having difficulty using a library and to 
        undeserved urban and rural communities, including 
        children (from birth through age 17) from families with 
        incomes below the poverty line (as defined by the 
        Office of Management and Budget and revised annually in 
        accordance with section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)) applicable 
        to a family of the size involved.]
          (1) expanding services for learning and access to 
        information and educational resources in a variety of 
        formats, in all types of libraries, for individuals of 
        all ages;
          (2) developing library services that provide all 
        users access to information through local, State, 
        regional, national, and international electronic 
        networks;
          (3) providing electronic and other linkages among and 
        between all types of libraries;
          (4) developing public and private partnerships with 
        other agencies and community-based organizations;
          (5) targeting library services to individuals of 
        diverse geographic, cultural, and socioeconomic 
        backgrounds, to individuals with disabilities, and to 
        individuals with limited functional literacy or 
        information skills; and
          (6) targeting library and information services to 
        persons having difficulty using a library and to 
        underserved urban and rural communities, including 
        children (from birth through age 17) from families with 
        incomes below the poverty line (as defined by the 
        Office of Management and Budget and revised annually in 
        accordance with section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
    (b) Special Rule.--Each State library administrative agency 
receiving funds under this chapter may apportion the funds 
available for the purposes described in subsection (a) [between 
the two purposes described in paragraphs (1) and (2) of such 
subsection,] among such purposes, as appropriate, to meet the 
needs of the individual State.

           *       *       *       *       *       *       *


SEC. 262. NATIONAL LEADERSHIP GRANTS, CONTRACTS, OR COOPERATIVE 
                    AGREEMENTS.

    (a) In General.--* * *
          (1) [education and training] education, recruitment, 
        and training of persons in library and information 
        science, particularly in areas of new technology and 
        other critical needs, including graduate fellowships, 
        traineeships, institutes, or other programs;

           *       *       *       *       *       *       *


                     [Subtitle C--Museum Services]


                      Subtitle C--Museum Services

[SEC. 271. PURPOSE.

    [It is the purpose of this subtitle--
          [(1) to encourage and assist museums in their 
        educational role, in conjunction with formal systems of 
        elementary, secondary, and postsecondary education and 
        with programs of nonformal education for all age 
        groups;
          [(2) to assist museums in modernizing their methods 
        and facilities so that the museums are better able to 
        conserve the cultural, historic, and scientific 
        heritage of the United States; and
          [(3) to ease the financial burden borne by museums as 
        a result of their increasing use by the public.]

SEC. 271. SHORT TITLE.

    This subtitle may be cited as the ``Museum Services Act''.

SEC. 272. PURPOSE.

    It is the purpose of this subtitle--
          (1) to encourage and support museums in carrying out 
        their public service role of connecting the whole of 
        society to the cultural, artistic, historical, natural, 
        and scientific understandings that constitute our 
        heritage;
          (2) to encourage and support museums in carrying out 
        their educational role, as core providers of learning 
        and in conjunction with schools, families, and 
        communities;
          (3) to encourage leadership, innovation, and 
        applications of the most current technologies and 
        practices to enhance museum services;
          (4) to assist, encourage, and support museums in 
        carrying out their stewardship responsibilities to 
        achieve the highest standards in conservation and care 
        of the cultural, historic, natural, and scientific 
        heritage of the United States to benefit future 
        generations;
          (5) to assist, encourage, and support museums in 
        achieving the highest standards of management and 
        service to the public, and to ease the financial burden 
        borne by museums as a result of their increasing use by 
        the public; and
          (6) to support resource sharing and partnerships 
        among museums, libraries, schools, and other community 
        organizations.

SEC. [272.] 273. DEFINITIONS.

    As used in this subtitle:
          (1) Museum.--The term ``museum'' means a public or 
        private nonprofit agency or institution organized on a 
        permanent basis for essentially educational or 
        aesthetic purposes, that utilizes a professional staff, 
        owns or utilizes tangible objects, cares for the 
        tangible objects, and exhibits the tangible objects to 
        the public on a regular basis. Such term includes 
        aquariums, arboretums, botanical gardens, art museums, 
        children's museums, general museums, historic houses 
        and sites, history museums, nature centers, natural 
        history and anthropology museums, planetariums, science 
        and technology centers, specialized museums, and 
        zoological parks.
          (2) State.--The term ``State'' means each of the 50 
        States of the United States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, the Commonwealth 
        of the Northern Mariana Islands, the Republic of the 
        Marshall Islands, the Federated States of Micronesia, 
        and the Republic of Palau.

[SEC 273. MUSEUM SERVICES ACTIVITIES.

    [(a) Grants.--The Director, subject to the policy direction 
of the Museum Board, may make grants to museums to pay for the 
Federal share of the cost of increasing and improving museum 
services, through such activities as--
          [(1) programs that enable museums to construct or 
        install displays, interpretations, and exhibitions in 
        order to improve museum services provided to the 
        public;
          [(2) assisting museums in developing and maintaining 
        professionally trained or otherwise experienced staff 
        to meet the needs of the museums;
          [(3) assisting museums in meeting the administrative 
        costs of preserving and maintaining the collections of 
        the museums, exhibiting the collections to the public, 
        and providing educational programs to the public 
        through the use of the collections;
          [(4) assisting museums in cooperating with each other 
        in developing traveling exhibitions, meeting 
        transportation costs, and identifying and locating 
        collections available for loan;
          [(5) assisting museums in the conservation of their 
        collections;
          [(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; 
        and
          [(7) model programs demonstrating cooperative efforts 
        between libraries and museums.
    [(b) Contracts and Cooperative Agreements.--
          [(1) Projects to strengthen museum services.--The 
        Director, subject to the policy direction of the Museum 
        Board, is authorized to enter into contracts and 
        cooperative agreements with appropriate entities, as 
        determined by the Director to pay for the Federal share 
        of enabling the entities 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 Act.
          [(2) Limitation on amount.--The aggregate amount of 
        financial assistance made available under this 
        subsection for a fiscal year shall not exceed 15 
        percent of the amount appropriated under this subtitle 
        for such fiscal year.
          [(3) Operational expenses.--No financial assistance 
        may be provided under this subsection to pay for 
        operational expenses.
    [(c) Federal Share.--
          [(1) 50 Percent.--Except as provided in paragraph 
        (2), the Federal share described in subsection (a) and 
        (b) shall be not more than 50 percent.
          [(2) Greater than 50 percent.--The Director may use 
        not more than 20 percent of the funds made available 
        under this subtitle for a fiscal year to make grants 
        under subsection (a), or enter into contracts or 
        agreements under subsection (b), for which the Federal 
        share may be greater than 50 percent.
    [(d) Review and Evaluation.--The Director shall establish 
procedures for reviewing and evaluating grants, contracts, and 
cooperative agreements made or entered into under this 
subtitle. Procedures for reviewing grant applications or 
contracts and cooperative agreements for financial assistance 
under this subtitle shall not be subject to any review outside 
of the Institute.]

SEC. 274. MUSEUM SERVICES ACTIVITIES.

    (a) In General.--The Director, after considering available 
policy advice of the Museum and Library Services Board, may 
enter into arrangements, including grants, contracts, 
cooperative agreements, and other forms of assistance, with 
museums and other entities as the Director considers 
appropriate, to pay the Federal share of the cost of--
          (1) supporting museums in providing learning and 
        access to collections, information, and educational 
        resources in a variety of formats (including 
        exhibitions, programs, publications, and websites) for 
        individuals of all ages;
          (2) supporting museums in building learning 
        partnerships with the Nation's schools and developing 
        museum resources and programs in support of State and 
        local school curricula:
          (3) supporting museums in assessing, conserving, 
        researching, maintaining, and exhibiting their 
        collections, and in providing educational programs to 
        the public through the use of their collections;
          (4) stimulating greater collaboration among museums, 
        libraries, schools, and other community organizations 
        in order to share resources and strengthen communities;
          (5) encouraging the use of new technologies and 
        broadcast media to enhance access to museum 
        collections, programs, and services;
          (6) supporting museums in providing services to 
        people of diverse geographic, cultural, and socio-
        economic backgrounds and to individuals with 
        disabilities;
          (7) supporting museums in developing and carrying out 
        specialized programs for specific segments of the 
        public, such as programs for urban neighborhoods, rural 
        areas, Indian reservations, and State institutions;
          (8) supporting professional development and technical 
        assistance programs to enhance museum operations at all 
        levels, in order to ensure the highest standards in all 
        aspects of museum operations;
          (9) supporting museums in research, program 
        evaluation, and the collection and dissemination of 
        information to museum professionals and the public; and
          (10) encouraging, supporting, and disseminating model 
        programs of museum and library collaboration.
    (b) Federal Share.--
          (1) 50 percent.--Except as provided in paragraph (2), 
        the Federal share described in subsection (a) shall not 
        be more than 50 percent.
          (2) Greater than 50 percent.--The Director may use 
        not more than 20 percent of the funds made available 
        under this subtitle for a fiscal year to enter into 
        arrangements under subsection (a) for which the Federal 
        share may be greater than 50 percent.
          (3) Operational expenses.--No funds for operational 
        expenses may be provided under this section to any 
        entity that is not a museum.
    (c) Review and Evaluation.--
          (1) In general.--The Director shall establish 
        procedures for reviewing and evaluating arrangements 
        described in subsection (a) entered into under this 
        subtitle.
          (2) Applications for technical assistance.--
                  (A) In general.--The Director may use not 
                more than 10 percent of the funds appropriated 
                to carry out this subtitle for technical 
                assistance awards.
                  (B) Individual museums.--Individual museums 
                may receive not more than 3 technical 
                assistance awards under subparagraph (A), but 
                subsequent awards for technical assistance 
                shall be subject to review outside the 
                Institute.
  (d) Services for Native Americans.--From amounts appropriated 
under section 275, the Director shall reserve 1.75 percent to 
award grants to, or enter into contracts or cooperative 
agreements with, Indian tribes and organizations that primarily 
serve and represent Native Hawaiians (as defined in section 
7207 of the Native Hawaiian Education Act (20 U.S.C. 7517)), to 
enable such tribes and organizations to carry out the 
activities described in subsection (a).

[SEC. 274. AWARD.

    [The Director, with the advice of the Museum Board, may 
annually award a National Award for Museum Service to 
outstanding museums that have made significant contributions in 
service to their communities.

[SEC. 275. NATIONAL MUSEUM SERVICES BOARD

    [(a) Establishment.--There is established in the Institute 
a National Museum Services Board.
    [(b) Composition and Qualifications.--
          [(1) Composition.--The Museum Board shall consist of 
        the Director and 14 members appointed by the President, 
        by and with the advice and consent of the Senate.
          [(2) Qualificatons.--The appointive members of the 
        Museum Board shall be selected from among citizens of 
        the United States--
                  [(A) who are members of the general public;
                  [(B) who are or have been affiliated with--
                          [(i) resources that, collectively, 
                        are broadly representative of the 
                        curatorial, conservation, educational, 
                        and cultural resources of the United 
                        States; or
                          [(ii) museums that, collectively, are 
                        broadly representative of various types 
                        of museums, including museums relating 
                        to science, history, technology, art, 
                        zoos, and botanical gardens; and
                  [(C) who are recognized for their broad 
                knowledge, expertise, or experience in museums 
                or commitment to museums.
          [(3) Geographic and other representation.--Members of 
        the Museum board shall be appointed to reflect persons 
        from various geographic regions of the United States. 
        The Museum Board may not include, at any time, more 
        than 3 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 with 
        museums.
    [(c) Terms--
          [(1) In General.--Each appointive member of the 
        Museum Board shall serve for a term of 5 years, except 
        that--
                  [(A) of the members first appointed, 3 shall 
                serve for terms of 5 years, 3 shall serve for 
                terms of 4 years, 3 shall serve for terms of 3 
                years, 3 shall serve for terms of 2 years, and 
                2 shall serve for terms of 1 year, as 
                designated by the President at the time of 
                nomination for appointment; and
                  [(B) any member appointed to fill a vacancy 
                shall serve for the remainder of term for which 
                the predecessor of the member was appointed.
          [(2) Reappointement.--No member of the Museum Board 
        who has been a member for more than 7 consecutive years 
        shall be eligible for reappointment.
          [(3) Service until successor takes office.--
        Notwithstanding any other provision of this subsection, 
        a member of the Museum Board shall serve after the 
        expiration of the term of the member until the 
        successor to the member takes office.
    [(d) Duties and Powers.--The Museum Board shall have the 
responsibility to advise the Director on general policies with 
respect to the duties, powers, and authority of the Institute 
relating to museum services, including general policies with 
respect to--
          [(1) financial assistance awarded under this subtitle 
        for museum services; and
          [(2) projects described in section 262(a)(4).
    [(e) Chairperson.--The President shall designate 1 of the 
appointive members of the Museum Board as Chairperson of the 
Museum Board.
    [(f) Meetings.--
          [(1) In general.--The Museum Board shall meet--
                  [(A) not less than 3 times each year, 
                including--
                          [(i) not less than 2 times each year 
                        separately; and
                          [(ii) not less than 1 time each year 
                        in a joint meeting with the Commission, 
                        convened for purposes of making general 
                        policies with respect to financial 
                        assistance for projects described in 
                        section 262(a)(4); and
                  [(B) at the call of the Director.
          [(2) Vote.--All decisions by the Museum Board with 
        respect to the exercise of the duties and powers of the 
        Museum Board shall be made by a majority vote of the 
        members of the Museum Board who are present. All 
        decisions by the Commission and the Museum Board with 
        respect to the policies described in paragraph 
        (1)(A)(ii) shall be made by a \2/3\ majority vote of 
        the total number of the members of the Commission and 
        the Museum Board who are present.
    [(g) Quorum.--A majority of the members of the Museum Board 
shall constitute a quorum for the conduct of business at 
official meetings of the Museum Board, but a lesser number of 
members may hold hearings. A majority of the members of the 
Commission and a majority of the members of the Museum Board 
shall constitute a quorum for the conduct of business at 
official joint meetings of the Commission and the Museum Board.
    [(h) Compensation and Travel Expenses.--
          [(1) Compensation.--Each member of the Museum Board 
        who is not an officer or employee of the Federal 
        Government may be compensated at a rate to be fixed by 
        the President, but not to exceed the daily equivalent 
        of the maximum rate authorized for a position above 
        grade GS-15 of the General Schedule under section 5108 
        of title 5, United States Code, for each day (including 
        travel time) during which such member is engaged in the 
        performance of the duties of the Museum Board. All 
        members of the Museum Board who are officers or 
        employees of the Federal Government shall serve without 
        compensation in addition to compensation received for 
        their services as officers or employees of the Federal 
        Government.
          [(2) Travel expenses.--The members of the Museum 
        Board may be allowed travel expenses, including per 
        diem in lieu of subsistence, in the same amounts and to 
        the same extent, as authorized under section 5703 of 
        title 5, United States Code, for persons employed 
        intermittently in Federal Government service.
    [(i) Coordination.--The Museum Board, with the advice of 
the Director, shall take steps to ensure that the policies and 
activities of the Institute are coordinated with other 
activities of the Federal Government.]

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SEC. [276.] 275. AUTHORIZATION OF APPROPRIATIONS.

    (a) Grants.--For the purpose of carrying out this subtitle, 
there are authorized to be appropriated to the Director 
[$28,700,000 for the fiscal year 1997, and such sums as may be 
necessary for each of the fiscal years 1998 through 2002] 
$41,500,000 for fiscal year 2004 and such sums as may be 
necessary for fiscal years 2005 through 2009.

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                        PART X--PUBLIC LIBRARIES

NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE ACT

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SEC. 4. CONTRIBUTIONS.

    The Commission is authorized to [accept, hold, administer, 
and utilize gifts, bequests, and devises of property,] solicit, 
accept, hold, administer, invest in the name of the United 
States, and utilize gifts, bequests, and devises of services or 
property, both real and personal, for the purpose of aiding or 
facilitating the work of the Commission. Gifts, bequests, and 
devises of money and proceeds from sales of other property 
received as gifts, bequests, or devises shall be deposited in 
the Treasury and shall be available for disbursement upon the 
order of the Commission.

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                               MEMBERSHIP

    Sec. 6. (a) The Commission shall be composed of the 
Librarian of Congress, the Director of the Institute of Museum 
and Library Services (who shall serve as an ex officio, 
nonvoting member), and fourteen members appointed by the 
President, by and with the advice and consent of the Senate. 
Five members of the Commission shall be professional librarians 
or information specialists, and the remainder shall be persons 
having special competence in or knowledge of the needs of our 
society for library and information services, at least one of 
whom shall be knowledgeable with respect to the technological 
aspects of library and information services and sciences [and 
at least one other of whom shall be knowledgeable with respect 
to the library and information service and science needs of the 
elderly]. One of the appointive members of the Commission shall 
be designated by the President as Chairman of the Commission. 
[A majority of members of the Commission shall constitute a 
quorum for conduct of business at official meetings of the 
Commission.] A majority of members of the Commission who have 
taken office and are serving on the Commission shall constitute 
a quorum for conduct of business at official meetings of the 
Commission. The terms of office of the appointive members of 
the Commission shall be [five years, except that (1) the term 
of office of any member of the Commission shall continue until 
the earlier of (A) the date on which the member's successor has 
been appointed by the President; or (B) July 19 of the year 
succeeding the year in which the member's appointed term of 
office shall expire, and (2) a member appointed to fill a 
vacancy occurring prior to the expiration of the term for which 
his predecessor was appointed shall be appointed only for the 
remainder of such term.] five years, except that--
          (1) a member of the Commission appointed to fill a 
        vacancy occurring prior to the expiration of the term 
        for which the member's predecessor was appointed, shall 
        be appointed only for the remainder of such term; and
          (2) any member of the Commission may continue to 
        serve after an expiration of the member's term of 
        office until such member's successor is appointed, has 
        taken office, and is serving on the Commission.

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ARTS AND ARTIFACTS INDEMNITY ACT

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                          INDEMNITY AGREEMENT

    Sec. 5. (a) * * *
    (b) The aggregate of loss or damage covered by indemnity 
agreements made under this Act shall not exceed 
[$5,000,000,000] $8,000,000,000, at any one time.
    (c) No indemnity agreement for a single exhibition shall 
cover loss or damage in excess of [$500,000,000] $600,000,000.
    (d) If the estimated value of the items covered by an 
indemnity agreement for a single exhibition is--
          (1) * * *

           *       *       *       *       *       *       *

          [(7) $400,000,000 or more, then coverage under this 
        chapter shall extend only to loss or damage in excess 
        of the first $400,000 of loss or damage to items 
        covered.]
          (7) not less than $400,000,000 but less than 
        $500,000,000, then coverage under this chapter shall 
        extend only to loss or damage in excess of the first 
        $400,000 of loss or damage to items covered; or
          (8) $500,000,000 or more, then coverage under this 
        chapter shall extend only to loss or damage in excess 
        of the first $500,000 of loss or damge to items 
        covered.

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                         INTERNAL REVENUE CODE

                        Subtitle A--Income Taxes

SEC. 170. CHARITABLE, ETC., CONTRIBUTIONS AND GIFTS.

    (a) Allowance of Deduction.--

           *       *       *       *       *       *       *

          (1) * * *

           *       *       *       *       *       *       *

          (6) * * *
          (B) * * *
                          (i) * * *
                                  (I) * * *

           *       *       *       *       *       *       *

                                  (III) a public library 
                                (within the meaning of [section 
                                213(2)(A) of the Library 
                                Services and Technology Act (20 
                                U.S.C. 9122(2)(A))] section 
                                213(1)(A) of the Library 
                                Services and Technology Act (20 
                                U.S.C. 9122(1)(A)), as in 
                                effect on the date of the 
                                enactment of the Community 
                                Renewal Tax Relief Act of 2000, 
                                established and maintained by 
                                an entity described in 
                                subsection (c)(1),

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