[Congressional Record Volume 141, Number 157 (Wednesday, October 11, 1995)]
[Senate]
[Pages S15043-S15055]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______


                 THE WORKFORCE DEVELOPMENT ACT OF 1995

                                 ______


                SPECTER (AND OTHERS) AMENDMENT NO. 2894

  Mr. SPECTER (for himself, Mr. Simon, Mr. Hatch, Mr. Johnston, Mr. 
Pell, and Mr. Harkin) proposed an amendment to amendment No. 2885 
proposed by Mrs. Kassebaum to the bill (S. 143) to consolidate Federal 
employment training programs and create a new process and structure for 
funding the programs, and for other purposes; as follows:

       In subtitle B of title I, strike chapters 1 and 2 and 
     insert the following:

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 131. DEFINITIONS.

       As used in this subtitle:
       (1) At-risk youth.--The term ``at-risk youth'' means an 
     individual who--
       (A) is not less than age 15 and not more than age 24;
       (B) is low-income (as defined in section 113(e));
       (C) is 1 or more of the following:
       (i) Basic skills deficient.
       (ii) A school dropout.
       (iii) Homeless or a runaway.
       (iv) Pregnant or parenting.
       (v) An individual who requires additional education, 
     training, or intensive counseling and related assistance, in 
     order to secure and hold employment or participate 
     successfully in regular schoolwork.
       (2) Enrollee.--The term ``enrollee'' means an individual 
     enrolled in the Job Corps.
       (3) Governor.--The term ``Governor'' means the chief 
     executive officer of a State.
       (4) Job corps.--The term ``Job Corps'' means the Job Corps 
     described in section 142.
       (5) Job corps center.--The term ``Job Corps center'' means 
     a center described in section 142.
       (6) Operator.--The term ``operator'' means an entity 
     selected under this chapter to operate a Job Corps center.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Labor.

                          CHAPTER 2--JOB CORPS

     SEC. 141. PURPOSES.

       The purposes of this chapter are--
       (1) to maintain a national Job Corps program, carried out 
     in partnership with States and communities, to assist at-risk 
     youth who need and can benefit from an unusually intensive 
     program, operated in a group setting, to become more 
     responsible, employable, and productive citizens;
       (2) to set forth standards and procedures for selecting 
     individuals as enrollees in the Job Corps;
       (3) to authorize the establishment of Job Corps centers in 
     which enrollees will participate in intensive programs of 
     workforce development activities; and
       (4) to prescribe various other powers, duties, and 
     responsibilities incident to the operation and continuing 
     development of the Job Corps.

     SEC. 142. ESTABLISHMENT.

       There shall be established in the Department of Labor a Job 
     Corps program, to carry out, in conjunction with the 
     activities carried out by the National Board as specified in 
     section 156, activities described in this chapter for 
     individuals enrolled in the Job Corps and assigned to a 
     center.

     SEC. 143. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

       To be eligible to become an enrollee, an individual shall 
     be an at-risk youth.

     SEC. 144. SCREENING AND SELECTION OF APPLICANTS.

       (a) Standards and Procedures.--
       (1) In general.--The Secretary shall prescribe specific 
     standards and procedures for the screening and selection of 
     applicants for the Job Corps, after considering 
     recommendations from the Governors, State workforce 
     development boards established under section 105, local 
     partnerships and local workforce development boards 
     established under section 118(b), and other interested 
     parties.
       (2) Methods.--In prescribing standards and procedures under 
     paragraph (1) for the screening and selection of Job Corps 
     applicants, the Secretary shall--
       (A) require enrollees to take drug tests within 30 days of 
     enrollment in the Job Corps;
       (B) allocate, where necessary, additional resources to 
     increase the applicant pool;
       (C) establish standards for outreach to and screening of 
     Job Corps applicants;
       (D) where appropriate, take measures to improve the 
     professional capability of the individuals conducting such 
     screening; and
       (E) require Job Corps applicants to pass background checks, 
     conducted in accordance with procedures established by the 
     Secretary.
       (3) Implementation.--To the extent practicable, the 
     standards and procedures shall be implemented through 
     arrangements with--
       (A) centers providing the one-stop delivery of core 
     services described in section 106(a)(2);
       (B) agencies and organizations such as community action 
     agencies, professional groups, and labor organizations; and
       (C) agencies and individuals that have contact with youth 
     over substantial periods of time and are able to offer 
     reliable information about the needs and problems of the 
     youth.
       (4) Consultation.--The standards and procedures shall 
     provide for necessary consultation with individuals and 
     organizations, including court, probation, parole, law 
     enforcement, education, welfare, and medical authorities and 
     advisers.
       (b) Special Limitations.--No individual shall be selected 
     as an enrollee unless the individual or organization 
     implementing the standards and procedures determines that--
       (1) there is a reasonable expectation that the individual 
     considered for selection can participate successfully in 
     group situations and activities, is not likely to engage in 
     behavior that would prevent other enrollees from receiving 
     the benefit of the program or be incompatible with the 
     maintenance of sound discipline and satisfactory 
     relationships between the Job Corps center to which the 
     individual might be assigned and surrounding communities; and
       (2) the individual manifests a basic understanding of both 
     the rules to which the individual will be subject and of the 
     consequences of failure to observe the rules.

     SEC. 145. ENROLLMENT AND ASSIGNMENT.

       (a) Relationship Between Enrollment and Military 
     Obligations.--Enrollment in the Job Corps shall not relieve 
     any individual of obligations under the Military Selective 
     Service Act (50 U.S.C. App. 451 et seq.).
       (b) Assignment.--After the Secretary has determined that an 
     enrollee is to be assigned to a Job Corps center, the 
     enrollee shall be assigned to the center that is closest to 
     the residence of the enrollee, except that the Secretary may 
     waive this requirement for good cause, including to ensure an 
     equitable 

[[Page S 15044]]
     opportunity for at-risk youth from various sections of the Nation to 
     participate in the Job Corps program, to prevent undue delays 
     in assignment of an enrollee, to adequately meet the 
     educational or other needs of an enrollee, and for efficiency 
     and economy in the operation of the program.
       (c) Period of Enrollment.--No individual may be enrolled in 
     the Job Corps for more than 2 years, except--
       (1) in a case in which completion of an advanced career 
     training program under section 147(d) would require an 
     individual to participate for more than 2 years; or
       (2) as the Secretary may authorize in a special case.

     SEC. 146. JOB CORPS CENTERS.

       (a) Operators and Service Providers.--
       (1) Eligible entities.--The Secretary shall enter into an 
     agreement with a Federal, State, or local agency, which may 
     be a State board or agency that operates or wishes to develop 
     an area vocational education school facility or residential 
     vocational school, or with a private organization, for the 
     operation of each Job Corps center. The Secretary shall enter 
     into an agreement with an appropriate entity to provide 
     services for a Job Corps center.
       (2) Selection process.--Except as provided in subsections 
     (c) and (d), the Secretary shall select an entity to operate 
     a Job Corps center on a competitive basis, after reviewing 
     the operating plans described in section 149. In selecting a 
     private or public entity to serve as an operator for a Job 
     Corps Center, the Secretary shall, at the request of the 
     Governor of the State in which the center is located, convene 
     and obtain the recommendation of a selection panel described 
     in section 151(b). In selecting an entity to serve as an 
     operator or to provide services for a Job Corps center, the 
     Secretary shall take into consideration the previous 
     performance of the entity, if any, relating to operating or 
     providing services for a Job Corps center.
       (b) Character and Activities.--Job Corps centers may be 
     residential or nonresidential in character, and shall be 
     designed and operated so as to provide enrollees, in a well-
     supervised setting, with access to activities described in 
     section 147. In any year, no more than 20 percent of the 
     individuals enrolled in the Job Corps may be nonresidential 
     participants in the Job Corps.
       (c) Civilian Conservation Centers.--
       (1) In general.--The Job Corps centers may include Civilian 
     Conservation Centers operated under agreements with the 
     Secretary of Agriculture or the Secretary of the Interior, 
     located primarily in rural areas, which shall provide, in 
     addition to other training and assistance, programs of work 
     experience to conserve, develop, or manage public natural 
     resources or public recreational areas or to develop 
     community projects in the public interest.
       (2) Selection process.--The Secretary may select an entity 
     to operate a Civilian Conservation Center on a competitive 
     basis, as provided in subsection (a), if the center fails to 
     meet such national performance standards as the Secretary 
     shall establish.
       (d) Indian Tribes.--
       (1) Definition.--As used in this subsection:
       (A) Indian.-- The term ``Indian'' means a person who is a 
     member of an Indian tribe.
       (B) Indian tribe.--The term ``Indian tribe'' means any 
     Indian tribe, band, nation, or other organized group or 
     community, which is recognized as eligible for the special 
     programs and services provided by the United States to 
     Indians because of their status as Indians.
       (2) General authority.--The Secretary may enter into 
     agreements with Indian tribes to operate Job Corps centers 
     for Indians.

     SEC. 147. PROGRAM ACTIVITIES.

       (a) Activities Provided Through Job Corps Centers.--Each 
     Job Corps center shall provide enrollees assigned to the 
     center with access to activities described in section 
     106(a)(2)(B), and such other workforce development activities 
     as may be appropriate to meet the needs of the enrollees, 
     including providing work-based learning throughout the 
     enrollment of the enrollees and assisting the enrollees in 
     obtaining meaningful unsubsidized employment, participating 
     successfully in secondary education or postsecondary 
     education programs, enrolling in other suitable training 
     programs, or satisfying Armed Forces requirements, on 
     completion of their enrollment.
       (b) Arrangements.--The Secretary shall arrange for 
     enrollees assigned to Job Corps centers to receive workforce 
     development activities through or in coordination with the 
     statewide system, including workforce development activities 
     provided through local public or private educational 
     agencies, vocational educational institutions, or technical 
     institutes.
       (c) Job Placement Accountability.--The Secretary shall 
     establish a job placement accountability system for Job Corps 
     centers, and coordinate the activities carried out through 
     the system with activities carried out through the job 
     placement accountability systems described in section 121(d) 
     for the States in which Job Corps centers are located.
       (d) Advanced Career Training Programs.--
       (1) In general.--The Secretary may arrange for programs of 
     advanced career training for selected enrollees in which the 
     enrollees may continue to participate for a period of not to 
     exceed 1 year in addition to the period of participation to 
     which the enrollees would otherwise be limited.
       (2) Postsecondary educational institutions.--The advanced 
     career training may be provided through a postsecondary 
     educational institution for an enrollee who has obtained a 
     secondary school diploma or its recognized equivalent, has 
     demonstrated commitment and capacity in previous Job Corps 
     participation, and has an identified occupational goal.
       (3) Company-sponsored training programs.--The Secretary may 
     enter into contracts with appropriate entities to provide the 
     advanced career training through intensive training in 
     company-sponsored training programs, combined with 
     internships in work settings.
       (4) Benefits.--
       (A) In general.--During the period of participation in an 
     advanced career training program, an enrollee shall be 
     eligible for full Job Corps benefits, or a monthly stipend 
     equal to the average value of the residential support, food, 
     allowances, and other benefits provided to enrollees assigned 
     to residential Job Corps centers.
       (B) Calculation.--The total amount for which an enrollee 
     shall be eligible under subparagraph (A) shall be reduced by 
     the amount of any scholarship or other educational grant 
     assistance received by such enrollee for advanced career 
     training.
       (5) Demonstration.--Each year, any operator seeking to 
     enroll additional enrollees in an advanced career training 
     program shall demonstrate that participants in such program 
     have achieved a reasonable rate of completion and placement 
     in training-related jobs before the operator may carry out 
     such additional enrollment.

     SEC. 148. SUPPORT.

       The Secretary shall provide enrollees assigned to Job Corps 
     centers with such personal allowances, including readjustment 
     allowances, as the Secretary may determine to be necessary or 
     appropriate to meet the needs of the enrollees.

     SEC. 149. OPERATING PLAN.

       (a) In General.--To be eligible to operate a Job Corps 
     center, an entity shall prepare and submit an operating plan 
     to the Secretary for approval. Prior to submitting the plan 
     to the Secretary, the entity shall submit the plan to the 
     Governor of the State in which the center is located for 
     review and comment. The entity shall submit any comments 
     prepared by the Governor on the plan to the Secretary with 
     the plan. Such plan shall include, at a minimum, information 
     indicating--
       (1) in quantifiable terms, the extent to which the center 
     will contribute to the achievement of the proposed State 
     goals and State benchmarks identified in the State plan 
     submitted under section 104 for the State in which the center 
     is located;
       (2) the extent to which workforce employment activities and 
     workforce education activities delivered through the Job 
     Corps center are directly linked to the workforce development 
     needs of the region in which the center is located;
       (3) an implementation strategy to ensure that all enrollees 
     assigned to the Job Corps center will have access to services 
     through the one-stop delivery of core services described in 
     section 106(a)(2) by the State; and
       (4) an implementation strategy to ensure that the curricula 
     of all such enrollees is integrated into the school-to-work 
     activities of the State, including work-based learning, work 
     experience, and career-building activities, and that such 
     enrollees have the opportunity to obtain secondary school 
     diplomas or their recognized equivalent.
       (b) Approval.--The Secretary shall not approve an operating 
     plan described in subsection (a) for a center if the 
     Secretary determines that the activities proposed to be 
     carried out through the center are not sufficiently 
     integrated with the activities carried out through the 
     statewide system of the State in which the center is located.

     SEC. 150. STANDARDS OF CONDUCT.

       (a) Provision and Enforcement.--The Secretary shall 
     provide, and directors of Job Corps center shall stringently 
     enforce, standards of conduct within the centers. Such 
     standards of conduct shall include provisions forbidding the 
     actions described in subsection (b)(2)(A).
       (b) Disciplinary Measures.--
       (1) In general.--To promote the proper moral and 
     disciplinary conditions in the Job Corps, the directors of 
     Job Corps centers shall take appropriate disciplinary 
     measures against enrollees. If such a director determines 
     that an enrollee has committed a violation of the standards 
     of conduct, the director shall dismiss the enrollee from the 
     Job Corps if the director determines that the retention of 
     the enrollee in the Job Corps will jeopardize the enforcement 
     of such standards or diminish the opportunities of other 
     enrollees.
       (2) Zero tolerance policy.--
       (A) Guidelines.--The Secretary shall adopt guidelines 
     establishing a zero tolerance policy for an act of violence, 
     for use, sale, or possession of a controlled substance, for 
     abuse of alcohol, or for other illegal or disruptive 
     activity.
       (B) Definitions.--As used in this paragraph:
       (i) Controlled substance.--The term ``controlled 
     substance'' has the meaning given the term in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802).
       (ii) Zero tolerance policy.--The term ``zero tolerance 
     policy'' means a policy under 

[[Page S 15045]]
     which an enrollee shall be automatically dismissed from the Job Corps 
     after a determination by the director that the enrollee has 
     carried out an action described in subparagraph (A).
       (c) Appeal.--A disciplinary measure taken by a director 
     under this section shall be subject to expeditious appeal in 
     accordance with procedures established by the Secretary.

     SEC. 151. COMMUNITY PARTICIPATION.

       (a) Activities.--The Secretary shall encourage and 
     cooperate in activities to establish a mutually beneficial 
     relationship between Job Corps centers in the State and 
     nearby communities. The activities shall include the use of 
     any local partnerships or local workforce development boards 
     established in the State under section 118(b) to provide a 
     mechanism for joint discussion of common problems and for 
     planning programs of mutual interest.
       (b) Selection Panels.--The Governor may recommend 
     individuals to serve on a selection panel convened by the 
     Secretary to provide recommendations to the Secretary 
     regarding any competitive selection of an operator for a 
     center in the State. The panel shall have not more than 7 
     members. In recommending individuals to serve on the panel, 
     the Governor may recommend members of State workforce 
     development boards established under section 105, if any, 
     members of any local partnerships or local workforce 
     development boards established in the State under section 
     118(b), or other representatives selected by the Governor. 
     The Secretary shall select at least 1 individual recommended 
     by the Governor.
       (c) Activities.--Each Job Corps center director shall--
       (1) give officials of nearby communities appropriate 
     advance notice of changes in the rules, procedures, or 
     activities of the Job Corps center that may affect or be of 
     interest to the communities;
       (2) afford the communities a meaningful voice in the 
     affairs of the Job Corps center that are of direct concern to 
     the communities, including policies governing the issuance 
     and terms of passes to enrollees; and
       (3) encourage the participation of enrollees in programs 
     for improvement of the communities, with appropriate advance 
     consultation with business, labor, professional, and other 
     interested groups, in the communities.

     SEC. 152. COUNSELING AND PLACEMENT.

       The Secretary shall ensure that enrollees assigned to Job 
     Corps centers receive academic and vocational counseling and 
     job placement services, which shall be provided, to the 
     maximum extent practicable, through the delivery of core 
     services described in section 106(a)(2).

     SEC. 153. ADVISORY COMMITTEES.

       The Secretary is authorized to make use of advisory 
     committees in connection with the operation of the Job Corps 
     program, and the operation of Job Corps centers, whenever the 
     Secretary determines that the availability of outside advice 
     and counsel on a regular basis would be of substantial 
     benefit in identifying and overcoming problems, in planning 
     program or center development, or in strengthening 
     relationships between the Job Corps and agencies, 
     institutions, or groups engaged in related activities.

     SEC. 154. APPLICATION OF PROVISIONS OF FEDERAL LAW.

       (a) Enrollees Not Considered To Be Federal Employees.--
       (1) In general.--Except as otherwise provided in this 
     subsection and in section 8143(a) of title 5, United States 
     Code, enrollees shall not be considered to be Federal 
     employees and shall not be subject to the provisions of law 
     relating to Federal employment, including such provisions 
     regarding hours of work, rates of compensation, leave, 
     unemployment compensation, and Federal employee benefits.
       (2) Provisions relating to taxes and social security 
     benefits.--For purposes of the Internal Revenue Code of 1986 
     and title II of the Social Security Act (42 U.S.C. 401 et 
     seq.), enrollees shall be deemed to be employees of the 
     United States and any service performed by an individual as 
     an enrollee shall be deemed to be performed in the employ of 
     the United States.
       (3) Provisions relating to compensation to federal 
     employees for work injuries.--For purposes of subchapter I of 
     chapter 81 of title 5, United States Code (relating to 
     compensation to Federal employees for work injuries), 
     enrollees shall be deemed to be civil employees of the 
     Government of the United States within the meaning of the 
     term ``employee'' as defined in section 8101 of title 5, 
     United States Code, and the provisions of such subchapter 
     shall apply as specified in section 8143(a) of title 5, 
     United States Code.
       (4) Federal tort claims provisions.--For purposes of the 
     Federal tort claims provisions in title 28, United States 
     Code, enrollees shall be considered to be employees of the 
     Government.
       (b) Adjustments and Settlements.--Whenever the Secretary 
     finds a claim for damages to a person or property resulting 
     from the operation of the Job Corps to be a proper charge 
     against the United States, and the claim is not cognizable 
     under section 2672 of title 28, United States Code, the 
     Secretary may adjust and settle the claim in an amount not 
     exceeding $1,500.
       (c) Personnel of the Uniformed Services.--Personnel of the 
     uniformed services who are detailed or assigned to duty in 
     the performance of agreements made by the Secretary for the 
     support of the Job Corps shall not be counted in computing 
     strength under any law limiting the strength of such services 
     or in computing the percentage authorized by law for any 
     grade in such services.

     SEC. 155. SPECIAL PROVISIONS.

       (a) Enrollment of Women.--The Secretary shall immediately 
     take steps to achieve an enrollment of 50 percent women in 
     the Job Corps program, consistent with the need to--
       (1) promote efficiency and economy in the operation of the 
     program;
       (2) promote sound administrative practice; and
       (3) meet the socioeconomic, educational, and training needs 
     of the population to be served by the program.
       (b) Studies, Evaluations, Proposals, and Data.--The 
     Secretary shall assure that all studies, evaluations, 
     proposals, and data produced or developed with Federal funds 
     in the course of carrying out the Job Corps program shall 
     become the property of the United States.
       (c) Gross Receipts.--Transactions conducted by a private 
     for-profit contractor or a nonprofit contractor in connection 
     with the operation by the contractor of a Job Corps center or 
     the provision of services by the contractor for a Job Corps 
     center shall not be considered to be generating gross 
     receipts. Such a contractor shall not be liable, directly or 
     indirectly, to any State or subdivision of a State (nor to 
     any person acting on behalf of such a State or subdivision) 
     for any gross receipts taxes, business privilege taxes 
     measured by gross receipts, or any similar taxes imposed on, 
     or measured by, gross receipts in connection with any 
     payments made to or by such contractor for operating or 
     providing services for a Job Corps center. Such a contractor 
     shall not be liable to any State or subdivision of a State to 
     collect or pay any sales, excise, use, or similar tax imposed 
     on the sale to or use by such contractor of any property, 
     service, or other item in connection with the operation of or 
     provision of services for a Job Corps center.
       (d) Management Fee.--The Secretary shall provide each 
     operator or entity providing services for a Job Corps center 
     with an equitable and negotiated management fee of not less 
     than 1 percent of the contract amount.
       (e) Donations.--The Secretary may accept on behalf of the 
     Job Corps or individual Job Corps centers charitable 
     donations of cash or other assistance, including equipment 
     and materials, if such donations are available for 
     appropriate use for the purposes set forth in this chapter.

     SEC. 156. REVIEW OF JOB CORPS CENTERS.

       (a) National Job Corps Review.--Not later than March 31, 
     1997, the National Board shall conduct a review of the 
     activities carried out under part B of title IV of the Job 
     Training Partnership Act (29 U.S.C. 1691 et seq.), and submit 
     to the appropriate committees of Congress a report containing 
     the results of the review, including--
       (1) information on the amount of funds expended for fiscal 
     year 1996 to carry out activities under such part, for each 
     State and for the United States;
       (2) for each Job Corps center funded under such part, 
     information on the amount of funds expended for fiscal year 
     1996 under such part to carry out activities related to the 
     direct operation of the center, including funds expended for 
     student training, outreach or intake activities, meals and 
     lodging, student allowances, medical care, placement or 
     settlement activities, and administration;
       (3) for each Job Corps center, information on the amount of 
     funds expended for fiscal year 1996 under such part through 
     contracts to carry out activities not related to the direct 
     operation of the center, including funds expended for student 
     travel, national outreach, screening, and placement services, 
     national vocational training, and national and regional 
     administrative costs;
       (4) for each Job Corps center, information on the amount of 
     funds expended for fiscal year 1996 under such part for 
     facility construction, rehabilitation, and acquisition 
     expenses;
       (5) information on the amount of funds required to be 
     expended under such part to complete each new or proposed Job 
     Corps center, and to rehabilitate and repair each existing 
     Job Corps center, as of the date of the submission of the 
     report;
       (6) a summary of the information described in paragraphs 
     (2) through (5) for all Job Corps centers;
       (7) an assessment of the need to serve at-risk youth in the 
     Job Corps program, including--
       (A) a cost-benefit analysis of the residential component of 
     the Job Corps program;
       (B) the need for residential education and training 
     services for at-risk youth, analyzed for each State and for 
     the United States; and
       (C) the distribution of training positions in the Job Corps 
     program, as compared to the need for the services described 
     in subparagraph (B), analyzed for each State;
       (8) an overview of the Job Corps program as a whole and an 
     analysis of individual Job Corps centers, including a 5-year 
     performance measurement summary that includes information, 
     analyzed for the program and for each Job Corps center, on--
       (A) the number of enrollees served;
       (B) the number of former enrollees who entered employment, 
     including the number of former enrollees placed in a position 
     related to the job training received through the program and 
     the number placed in a position not related to the job 
     training received;
       (C) the number of former enrollees placed in jobs for 32 
     hours per week or more;

[[Page S 15046]]

       (D) the number of former enrollees who entered employment 
     and were retained in the employment for more than 13 weeks;
       (E) the number of former enrollees who entered the Armed 
     Forces;
       (F) the number of former enrollees who completed vocational 
     training, and the rate of such completion, analyzed by 
     vocation;
       (G) the number of former enrollees who entered 
     postsecondary education;
       (H) the number and percentage of early dropouts from the 
     Job Corps program;
       (I) the average wage of former enrollees, including wages 
     from positions described in subparagraph (B);
       (J) the number of former enrollees who obtained a secondary 
     school diploma or its recognized equivalent;
       (K) the average level of learning gains for former 
     enrollees; and
       (L) the number of former enrollees that did not--
       (i) enter employment or postsecondary education;
       (ii) complete a vocational education program; or
       (iii) make identifiable learning gains;
       (9) information regarding the performance of all existing 
     Job Corps centers over the 3 years preceding the date of 
     submission of the report; and
       (10) job placement rates for each Job Corps center and each 
     entity providing services to a Job Corps center.
       (b) Recommendations of National Board.--
       (1) Recommendations.--The National Board shall, based on 
     the results of the review described in subsection (a), make 
     recommendations to the Secretary of Labor, regarding 
     improvements in the operation of the Job Corps program, 
     including--
       (A) closing 5 Job Corps centers by September 30, 1997, and 
     5 additional Job Corps centers by September 30, 2000;
       (B) relocating Job Corps centers described in paragraph 
     (2)(A)(iii) in cases in which facility rehabilitation, 
     renovation, or repair is not cost-effective; and
       (C) taking any other action that would improve the 
     operation of a Job Corps center or any other appropriate 
     action.
       (2) Considerations.--
       (A) In general.--In determining whether to recommend that 
     the Secretary of Labor close a Job Corps center, the National 
     Board shall consider whether the center--
       (i) has consistently received low performance measurement 
     ratings under the Department of Labor or the Office of 
     Inspector General Job Corps rating system;
       (ii) is among the centers that have experienced the highest 
     number of serious incidents of violence or criminal activity 
     in the past 5 years;
       (iii) is among the centers that require the largest funding 
     for renovation or repair, as specified in the Department of 
     Labor Job Corps Construction/Rehabilitation Funding Needs 
     Survey, or for rehabilitation or repair, as reflected in the 
     portion of the review described in subsection (a)(5);
       (iv) is among the centers for which the highest relative or 
     absolute fiscal year 1996 expenditures were made, for any of 
     the categories of expenditures described in paragraph (2), 
     (3), or (4) of subsection (a), as reflected in the review 
     described in subsection (a);
       (v) is among the centers with the least State and local 
     support; or
       (vi) is among the centers with the lowest rating on such 
     additional criteria as the National Board may determine to be 
     appropriate.
       (B) Coverage of states and regions.--Notwithstanding 
     subparagraph (A), the National Board shall not recommend that 
     the Secretary of Labor close the only Job Corps center in a 
     State or a region of the United States.
       (C) Allowance for new job corps centers.--Notwithstanding 
     any other provision of this section, if the planning or 
     construction of a Job Corps center that received Federal 
     funding for fiscal year 1994 or 1995 has not been completed 
     by the date of enactment of this Act--
       (i) the appropriate entity may complete the planning or 
     construction and begin operation of the center; and
       (ii) the National Board shall not evaluate the center under 
     this title sooner than 3 years after the first date of 
     operation of the center.
       (3)  Report.--Not later than June 30, 1997, the National 
     Board shall submit a report to the Secretary of Labor, which 
     shall contain a detailed statement of the findings and 
     conclusions of the National Board resulting from the review 
     described in subsection (a) together with the recommendations 
     described in paragraph (1).
       (c) Implementation of Performance Improvements.--The 
     Secretary shall, after reviewing the report submitted under 
     subsection (b)(3), implement improvements in the operation of 
     the Job Corps program, including closing 10 individual Job 
     Corps centers pursuant to subsection (b). In implementing 
     such improvements, the Secretary may close such additional 
     Job Corps centers as the Secretary determines to be 
     appropriate. Funds saved through the implementation of such 
     improvements shall be used to maintain overall Job Corps 
     program service levels, improve facilities at existing Job 
     Corps centers, relocate Job Corps centers, initiate new Job 
     Corps centers, and make other performance improvements in the 
     Job Corps program.
       (d) Report to Congress.--The Secretary shall annually 
     report to Congress the information specified in paragraphs 
     (8), (9), and (10) of subsection (a) and such additional 
     information relating to the Job Corps program as the 
     Secretary may determine to be appropriate.

     SEC. 157. ADMINISTRATION.

       The Secretary shall carry out the responsibilities 
     specified for the Secretary in this chapter, notwithstanding 
     any other provision of this title.

     SEC. 158. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     chapter shall take effect on July 1, 1998.
       (b) Report.--Section 156 shall take effect on the date of 
     enactment of this Act.
       In section 161(a), strike ``subsection (c)'' and all that 
     follows through ``workforce preparation'' and insert 
     ``subsection (c) for States, to enable the Secretary of Labor 
     to carry out in the States, and to assist the States in 
     paying for the cost of carrying out, workforce preparation''.
       In section 161(b)(1), strike ``The State'' and all that 
     follows through ``subsection (c)'' and insert ``The Secretary 
     of Labor shall use the funds made available for a State 
     through an allotment made under subsection (c)(2)''.
       In section 161(b)(1), strike ``section 152'' and insert 
     ``section 156''.
       In section 161(b)(2)(A), strike ``subsection (c)'' and 
     insert ``subsection (c)(3)''.
       In section 161(b)(3), strike ``the funds described in 
     paragraph (1)'' and insert ``the funds made available to the 
     State through an allotment received under subsection 
     (c)(3)''.
       In section 161(c)(1), strike ``to each State'' and insert 
     ``for each State''.
       In section 161(c)(1)(A), strike ``to the State'' and insert 
     ``for the State''.
       In section 161(c)(2), strike ``to each State'' and all that 
     follows and insert ``for each State, for the operation of Job 
     Corps centers--
       ``(A) the amount that Job Corps centers in the State 
     expended for fiscal year 1996 under part B of title IV of the 
     Job Training Partnership Act to enable the Secretary of Labor 
     to carry out activities described in paragraphs (2) and (3), 
     and to pay for rehabilitation expenses described in paragraph 
     (4), of section 156(a), as determined under such paragraphs; 
     and
       ``(B) such amount as may be necessary for the planning, 
     construction, and operation described in section 156(b)(2)(C) 
     for any center described in such section in the State.''.
       In section 161(d), strike ``subsection (c)'' and insert 
     ``subsection (c)(3)''.
       In section 181(b), strike ``this title'' and insert ``this 
     title (other than subtitle B)''.
       In section 182(a)(4)(B), strike ``under this Act'' and 
     insert ``under this Act (other than subtitle B)''.
       In section 186(c)(2)(H), strike ``under this Act'' and 
     insert ``under this Act (other than subtitle B)''.
       In the second sentence of section 186(c)(5)(A), strike 
     ``181(b)'' and insert ``181(b) (other than the administration 
     of subtitle B)''.
       In the third sentence of section 186(c)(5)(A), strike 
     ``administration'' and insert ``administration (other than 
     the administration of subtitle B)''.
       In section 198C(e)(1)(B)(iii) of the National and Community 
     Service Act of 1990 (42 U.S.C. 12653c(e)(1)(B)(iii)), as 
     amended in section 192(b)(5)(LLL), strike ``132'' and insert 
     ``131''.
                                 ______


                        GRAMM AMENDMENT NO. 2895

  Mrs. KASSEBAUM (for Mr. Gramm) proposed an amendment to amendment No. 
2885 proposed by her to the bill S. 143, supra; as follows:

       On page 201, strike lines 18 through 22 and insert the 
     following:
       (B) Scope.--
       (i) Initial reductions.--Not later than the date of the 
     transfer under subsection (b), the Secretary of Labor and the 
     Secretary of Education shall take the actions described in 
     subparagraph (A) with respect to not less than \1/3\ of the 
     number of positions of personnel that relate to a covered 
     activity.
       (ii) Subsequent reductions.--Not later than 5 years after 
     the date of the transfer under subsection (b), the Secretary 
     of Labor and the Secretary of Education shall take the 
     actions described in subparagraph (A)--
       (I) with respect to not less than 60 percent of the number 
     of positions of personnel that relate to a covered activity, 
     unless the Secretaries submit (prior to the end of such 5-
     year period) a report to Congress demonstrating why such 
     actions have not occurred; or
       (II) with respect to not less than 40 percent of the number 
     of positions of personnel that relate to a covered activity, 
     if the Secretaries make the determination and submit the 
     report referred to in subclause (I).
       (iii) Calculation.--For purposes of calculating, under this 
     subparagraph, the number of positions of personnel that 
     relate to a covered activity, such number shall include the 
     number of positions of personnel who are separated from 
     service under subparagraph (A).
                                 ______


                 PELL (AND JEFFORDS) AMENDMENT NO. 2896

  Mr. PELL (for himself and Mr. Jeffords) proposed an amendment to 
amendment No. 2885 proposed by Mrs. Kassebaum to the bill S. 143, 
supra; as follows:


[[Page S 15047]]

       On page 315, after line 16, insert the following:

     SEC. ____1. MUSEUM AND LIBRARY SERVICES.

       The Museum Services Act (20 U.S.C. 961 et seq.) is amended 
     to read as follows:
                ``TITLE II--MUSEUM AND LIBRARY SERVICES
                    ``Subtitle A--General Provisions

     ``SEC. 201. SHORT TITLE.

       ``This title may be cited as the `Museum and Library 
     Services Act'.

     ``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 Science Act (20 U.S.C. 1502).
       ``(2) Director.--The term `Director' means the Director of 
     the Institute appointed under section 204.
       ``(3) Institute.--The term `Institute' means the Institute 
     of Museum and Library Services established under section 203.
       ``(4) Museum board.--The term `Museum Board' means the 
     National Museum Services Board established under section 276.

     ``SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

       ``(a) Establishment.--There is established within the 
     Foundation 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.

     ``SEC. 204. DIRECTOR OF THE INSTITUTE.

       ``(a) Appointment.--
       ``(1) In general.--The Institute shall be headed by a 
     Director, appointed by the President, by and with the advice 
     and consent of the Senate.
       ``(2) Term.--The Director shall serve for a term of 4 
     years.
       ``(3) Qualifications.--Beginning with the first individual 
     appointed to the position of Director after the date of 
     enactment of this Act, every second individual so appointed 
     shall be appointed from among individuals who have special 
     competence with regard to library and information services. 
     Beginning with the second individual appointed to the 
     position of Director after the date of enactment of this Act, 
     every second individual so appointed shall be appointed from 
     among individuals who have special competence with regard to 
     museum services.
       ``(b) Compensation.--The Director shall be compensated at 
     the rate provided for level III of the Executive Schedule 
     under section 5314 of title 5, United States Code.
       ``(c) Duties and Powers.--The Director shall perform such 
     duties and exercise such powers as may be prescribed by law, 
     including--
       ``(1) awarding financial assistance for activities 
     described in this title; and
       ``(2) using not less than 5 percent and not more than 7 
     percent of the funds made available under this title for each 
     fiscal year to award financial assistance for projects that 
     involve both--
       ``(A) activities relating to library and information 
     services, as described in subtitle B, carried out in 
     accordance with such subtitle; and
       ``(B) activities relating to museum services, as described 
     in subtitle C, carried out in accordance with such subtitle.
       ``(d) Nondelegation.--The Director shall not delegate any 
     of the functions of the Director to any person who is not 
     directly responsible to the Director.
       ``(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.

     ``SEC. 205. DEPUTY DIRECTORS.

       ``(a) Appointment.--The Office of Library Services shall be 
     headed by a Deputy Director, who shall be appointed by the 
     Director from among individuals who have a graduate degree in 
     library science and expertise in library and information 
     services. The Office of Museum Services shall be headed by a 
     Deputy Director, who shall be appointed by the Director from 
     among individuals who have expertise in museum services.
       ``(b) Compensation.--Each such position of Deputy Director 
     shall be a Senior Executive Service position, which shall be 
     paid at a rate of pay for a position at ES-1 of the Senior 
     Executive Service schedule.

     ``SEC. 206. PERSONNEL.

       ``(a) In General.--The Director may, in accordance with 
     applicable provisions of title 5, United States Code, appoint 
     and determine the compensation of such employees as the 
     Director determines to be necessary to carry out the duties 
     of the Institute.
       ``(b) Voluntary Services.--The Director may accept and 
     utilize the voluntary services of individuals and reimburse 
     the individuals for 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.

     ``SEC. 207. CONTRIBUTIONS.

       ``The Institute shall have authority 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 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 in each case specified.
             ``Subtitle B--Library Services and Technology

     ``SEC. 211. SHORT TITLE.

       ``This subtitle may be cited as the `Library Services and 
     Technology Act'.

     ``SEC. 212. STATEMENT OF PURPOSE; RECOGNITION OF NEED.

       ``(a) Statement of Purpose.--The purposes of this subtitle 
     are as follows:
       ``(1) To stimulate excellence and promote equity and 
     lifelong access to learning and information resources in all 
     types of libraries.
       ``(2) To combine the ability of the Federal Government to 
     stimulate significant improvement and innovation in library 
     services with support at State and local levels, and with 
     cooperative programs with other agencies and with public and 
     private sector partnerships, to achieve national library 
     service goals.
       ``(3) To establish national library service goals for the 
     21st century. Such goals are that every person in America 
     will be served by a library that--
       ``(A) provides all users access to information through 
     regional, State, national, and international electronic 
     networks;
       ``(B) contributes to a productive workforce, and to 
     economic development, by providing resources and services 
     designed to meet local community needs;
       ``(C) provides a full range of resources and programs to 
     develop reading and critical thinking skills for children and 
     adults;
       ``(D) provides targeted services to people of diverse 
     geographic, cultural, and socioeconomic backgrounds, to 
     individuals with disabilities, and to people with limited 
     functional literacy or information skills; and
       ``(E) provides adequate hours of operation, facilities, 
     staff, collections, and electronic access to information.
       ``(b) Recognition of Need.--The Congress recognizes that 
     strong library services are essential to empower people to 
     succeed in our Nation's increasingly global and technological 
     environment.

     ``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) Library consortia.--The term `library consortia' 
     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 
     their clientele.
       ``(3) Library entity.--The term `library entity' means a 
     library that performs all activities of a library relating to 
     the collection and organization of library materials and 
     other information and that makes the materials and 
     information publicly available. Such term includes State 
     library administrative agencies and the libraries, library 
     related entities, cooperatives, and consortia through which 
     library services are made publicly available.
       ``(4) Public library.--The term `public library' means a 
     library that serves free of charge all residents of a 
     community, district, or region, and receives its financial 
     support in whole or in part from public funds. Such term also 
     includes a research library, which, for the purposes of this 
     sentence, means a library, which--
       ``(A) makes its services available to the public free of 
     charge;
       ``(B) has extensive collections of books, manuscripts, and 
     other materials suitable for scholarly research which are not 
     available to the public through public libraries;
       ``(C) engages in the dissemination of humanistic knowledge 
     through services to readers, fellowships, educational and 
     cultural programs, publications of significant research, and 
     other activities; and
       ``(D) is not an integral part of an institution of higher 
     education.
       ``(5) State.--The term `State', unless otherwise specified, 
     includes the several States of the United States, the 
     District of Columbia, the Commonwealth of Puerto Rico, Guam, 
     American Samoa, the United States Virgin Islands, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau.
       ``(6) State advisory council.--The term `State advisory 
     council' means an advisory council established pursuant to 
     section 252.
       ``(7) State library administrative agency.--The term `State 
     library administrative agency' means the official agency of a 
     State charged by law of that State with the extension and 
     development of public library services throughout the State, 
     which has adequate authority under law of the State to 
     administer the State plan in accordance with the provisions 
     of this subtitle.

[[Page S 15048]]

       ``(8) 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, and 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) Authority.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Secretary of Education--
       ``(A) for the purpose of awarding grants under subchapter A 
     of chapter 2 and for related administrative expenses, 
     $75,000,000 for fiscal year 1996, and such sums as may be 
     necessary for each of the 4 succeeding fiscal years; and
       ``(B) for the purpose of awarding grants under subchapter B 
     of chapter 2 and for related administrative expenses, 
     $75,000,000 for fiscal year 1996, and such sums as may be 
     necessary for each of the 4 succeeding fiscal years.
       ``(2) Transfer.--The Secretary of Education shall transfer 
     any funds appropriated under the authority of paragraph (1) 
     to the Director to enable the Director to carry out this 
     subtitle.
       ``(b) Joint Projects.--Not less than 5 percent and not more 
     than 7 percent of the funds appropriated under this section 
     for a fiscal year may be made available for projects 
     described in section 204(c)(2) for the fiscal year.
       ``(c) Administration.--Not more than 10 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.--From the amount appropriated under the 
     authority of section 214(a) for any fiscal year, the 
     Director--
       ``(1) shall reserve 1\1/2\ percent to award grants in 
     accordance with section 261; and
       ``(2) shall reserve 8 percent to carry out a national 
     leadership program in library science in accordance with 
     section 262.
       ``(b) Allotments.--
       ``(1) In general.--From the sums appropriated under the 
     authority of section 214(a) and not reserved under subsection 
     (a) for any fiscal year, the Director shall allot the minimum 
     allotment, as determined under paragraph (3), to each State. 
     Any sums remaining after minimum allotments have been made 
     for such year shall be allotted in the manner set forth in 
     paragraph (2).
       ``(2) Remainder.--From the remainder of any sums 
     appropriated under the authority of section 214(a) that are 
     not reserved under subsection (a) and not allotted under 
     paragraph (1) for any fiscal year, the Director shall allot 
     to each State an amount that bears the same relation to such 
     remainder as the population of the State bears to the 
     population of all the States.
       ``(3) Minimum allotment.--
       ``(A) In general.--For the purposes of this subsection, the 
     minimum allotment shall be--
       ``(i) with respect to appropriations for the purposes of 
     subchapter A of chapter 2, $200,000 for each State, except 
     that the minimum allotment shall be $40,000 in the case of 
     Guam, American Samoa, the United States Virgin Islands, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau; and
       ``(ii) with respect to appropriations for the purposes of 
     subchapter B of chapter 2, $200,000 for each State, except 
     that the minimum allotment shall be $40,000 in the case of 
     Guam, American Samoa, the United States Virgin Islands, 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 sums appropriated under 
     the authority of section 214(a) and not reserved under 
     subsection (a) for any fiscal year are 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.
       ``(4) Data.--The population of each State and of all the 
     States shall be determined by the Director on the basis of 
     the most recent data available from the Bureau of the Census.

     ``SEC. 222. ADMINISTRATION AND EVALUATION.

       ``(a) In General.--Not more than 5 percent of the total 
     funds received under this subtitle for any fiscal year by a 
     State may be used for administration.
       ``(b) Construction.--Nothing in this section shall be 
     construed to limit spending for evaluation costs under 
     section 251 from sources other than this subtitle.

     ``SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE OF 
                   EFFORT REQUIREMENTS.

       ``(a) Payments.--The Director shall pay to each State 
     library administrative agency having a State plan approved 
     under section 224 the Federal share of the cost of the 
     activities described in the State plan.
       ``(b) Federal Share.--
       ``(1) In general.--Except as provided in paragraph (3), the 
     Federal share shall be 50 percent.
       ``(2) Non-federal share.--The non-Federal share of payments 
     shall be provided from non-Federal, State, or local sources.
       ``(3) Special rule.--The Federal share--
       ``(A) for the Commonwealth of Puerto Rico, Guam, American 
     Samoa, the United States Virgin Islands, and the Commonwealth 
     of the Northern Mariana Islands, shall be 66 percent; and
       ``(B) for the Republic of the Marshall Islands, the 
     Federated States of Micronesia, and the Republic of Palau, 
     shall be 100 percent.
       ``(c) Maintenance of Effort.--
       ``(1) In general.--The amount otherwise payable to a State 
     for a fiscal year under chapter 2 shall be reduced if the 
     level of State expenditures, as described in paragraph (2), 
     for the previous fiscal year are less than the average of the 
     total of such expenditures for the 3 fiscal years preceding 
     that previous fiscal year. The amount of the reduction in 
     allotment for any fiscal year shall be in exact proportion to 
     the amount which the State fails to meet the requirement of 
     this subsection.
       ``(2) Level of state expenditures.--The level of State 
     expenditures for the purposes of paragraph (1) shall include 
     all State dollars expended by the State library 
     administrative agency for library programs that are 
     consistent with the purposes of this subtitle. All funds 
     included in the maintenance of effort calculation under this 
     subsection shall be expended during the fiscal year for which 
     the determination is made, and shall not include capital 
     expenditures, special one-time project costs, or similar 
     windfalls.
       ``(3) Waiver.--The Director may waive the requirements of 
     paragraph (1) if the Director determines that such a waiver 
     would be equitable due to exceptional or uncontrollable 
     circumstances such as a natural disaster or a precipitous and 
     unforeseen decline in the financial resources of the State.

     ``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, 1996.
       ``(2) Duration.--The State plan shall cover a period of 5 
     fiscal years.
       ``(3) Revisions.--If a State library administrative agency 
     makes a substantive revision to its State plan, then the 
     State library administrative agency shall submit to the 
     Director an amendment to the State plan containing such 
     revision not later than April 1 of the fiscal year preceding 
     the fiscal year for which the amendment will be effective.
       ``(b) Contents.--The State plan shall--
       ``(1) specify priorities for improvement of library 
     services so that all people in the State have convenient and 
     appropriate access to information delivered by libraries 
     through new and emerging technologies assisted under 
     subchapter A of chapter 2;
       ``(2) identify those persons who need special services 
     under subchapter B of chapter 2 and specify priorities for 
     meeting the purpose described in section 241(a);
       ``(3) describe how section 243 will be implemented within 
     the State, specify the accountability and evaluation 
     procedures to be followed by public libraries receiving funds 
     under such section, and specify whether and how funds are to 
     be aggregated under section 243(b)(2) to improve library 
     services provided to children in the State described in 
     section 243(a)(2);
       ``(4) describe the activities and services for which 
     assistance is sought, including--
       ``(A) priorities for the use of funds under this subtitle; 
     and
       ``(B) a description of the types of libraries and library 
     entities that will be eligible to receive funds under this 
     subtitle;
       ``(5) provide that any funds paid to the State in 
     accordance with the State plan shall be expended solely for 
     the purposes for which the funds are authorized and 
     appropriated and that such fiscal control and fund accounting 
     procedures have been adopted as may be necessary to assure 
     proper disbursement of, and account for, Federal funds paid 
     to the State (including any such funds paid by the State to 
     any other entity) under this subtitle;
       ``(6) provide procedures to ensure that the State library 
     administrative agency shall involve libraries and users 
     throughout the State in policy decisions regarding 
     implementation of this subtitle, and development of the State 
     plan, including establishing the State advisory council;
       ``(7) provide satisfactory assurance that the State library 
     administrative agency--
       ``(A) will make such reports, in such form and containing 
     such information, as the Director may require to carry out 
     this subtitle and to determine the extent to which funds 
     provided under this subtitle have been effective in carrying 
     out the purposes of this subtitle, including reports on 
     evaluations under section 251;
       ``(B) will keep such records and afford such access thereto 
     as the Director may find necessary to assure the correctness 
     and verification of such reports;
       ``(C) will provide to State advisory council members an 
     orientation regarding the provisions of this subtitle and 
     members' responsibilities, including clear, easily 
     understandable information about the State plan; and

[[Page S 15049]]

       ``(D) will report annually at a meeting of the State 
     advisory council on the State library administrative agency's 
     progress toward meeting the goals and objectives of the State 
     plan;
       ``(8) describe the process for assessing the needs for 
     library and information services within the State, and 
     describe the results of the most recent needs assessment;
       ``(9) establish goals and objectives for achieving within 
     the State the purposes of this subtitle, including the 
     purposes in sections 212(a), 231(a), and 241(a); and
       ``(10) describe how the State library administrative 
     agency, in consultation with the State advisory council, 
     will--
       ``(A) administer this subtitle; and
       ``(B) conduct evaluations under section 251, including a 
     description of the types of evaluation methodologies to be 
     employed.
       ``(c) Accountability.--Each State plan shall--
       ``(1) establish State-defined performance goals to set 
     forth the level of performance to be achieved by an activity 
     assisted under this subtitle;
       ``(2) express such goals in an objective, quantifiable, and 
     measurable form unless authorized to be in an alternative 
     form in accordance with section 1115(b) of title 31, United 
     States Code;
       ``(3) briefly describe the operational processes, skills 
     and technology, and the human, capital, information, or other 
     resources, required to meet the performance goals;
       ``(4) establish performance indicators in accordance with 
     subsection (d) to be used in measuring or assessing the 
     relevant outputs, service levels, and outcomes, of each 
     activity assisted under this subtitle;
       ``(5) provide a basis for comparing actual program results 
     with the established performance goals; and
       ``(6) describe the means to be used to verify and validate 
     measured values.
       ``(d) Performance Indicators.--Performance indicators 
     described in subsection (c)(4) shall include--
       ``(1) evidence of progress toward the national library 
     service goals under section 212(a)(3);
       ``(2) consultation with the State educational agency;
       ``(3) identification of activities suitable for nationwide 
     replication; and
       ``(4) progress in improvement of library services provided 
     to children described in section 243(a)(2).
       ``(e) Approval.--
       ``(1) In general.--The Director shall approve any State 
     plan under this subtitle that meets the requirements of this 
     subtitle and provides satisfactory assurances that the 
     provisions of such plan will be carried out.
       ``(2) Public availability.--Each State library 
     administrative agency receiving a grant under this subtitle 
     shall make the State plan available to the public.
       ``(3) Administration.--If the Director determines that the 
     State plan does not meet the requirements of this section, 
     the Director shall--
       ``(A) immediately notify the State library administrative 
     agency of such determination and the reasons for such 
     determination;
       ``(B) offer the State library administrative agency the 
     opportunity to revise its State plan;
       ``(C) provide technical assistance in order to assist the 
     State library administrative agency to meet the requirements 
     of this section; and
       ``(D) provide the State library administrative agency the 
     opportunity for a hearing.

                     ``CHAPTER 2--LIBRARY PROGRAMS

         ``Subchapter A--Information Access Through Technology

     ``SEC. 231. GRANTS TO STATES FOR INFORMATION ACCESS THROUGH 
                   TECHNOLOGY.

       ``(a) Purpose.--The purpose of this subchapter is to 
     provide for the improvement of library services so that all 
     people have access to information delivered by libraries 
     through new and emerging technologies, whether the 
     information originates locally, from the State, nationally, 
     or globally.
       ``(b) Grants.--
       ``(1) In general.--The Director shall award grants under 
     this subchapter from allotments under section 221(b) to 
     States that have State plans approved under section 224.
       ``(2) Federal share.--Grants awarded under paragraph (1) 
     shall be used to pay the Federal share of the cost of 
     activities under section 232 that are described in a State 
     plan approved under section 224.

     ``SEC. 232. AUTHORIZED ACTIVITIES.

       ``Each State that receives a grant under section 231(b) may 
     use the grant funds to provide statewide services and 
     subgrants to public libraries, other types of libraries and 
     library consortia, or library linkages with other entities, 
     in accordance with the State plan. Such services and 
     subgrants shall involve--
       ``(1) organization, access, and delivery of information;
       ``(2) lifelong learning, and workforce and economic 
     development; or
       ``(3) support of technology infrastructure.

    ``Subchapter B--Information Empowerment Through Special Services

     ``SEC. 241. GRANTS TO STATES FOR INFORMATION EMPOWERMENT 
                   THROUGH SPECIAL SERVICES.

       ``(a) Purpose.--The purpose of this subchapter is to 
     provide for the improvement of library and information 
     services targeted to persons of all ages and cultures who 
     have difficulty using a library and to communities which are 
     geographically disadvantaged in access to libraries, who or 
     which need special materials or services, or who or which 
     will benefit from outreach services for equity of access to 
     library services and information technologies, including 
     children (from birth through age 17) from families living 
     below the income official 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) Grants.--
       ``(1) In general.--The Director shall award grants under 
     this subchapter from allotments under section 221(b) to 
     States that have State plans approved under section 224.
       ``(2) Federal share.--Grants awarded under paragraph (1) 
     shall be used to pay the Federal share of the cost of the 
     activities under section 242 that are described in a State 
     plan approved under section 224.

     ``SEC. 242. AUTHORIZED ACTIVITIES.

       ``Each State that receives a grant under section 241(b) may 
     use the grant funds to provide statewide services and 
     subgrants to public libraries, other types of libraries and 
     library consortia, or library linkages with other entities, 
     in accordance with the State plan. Such services and 
     subgrants shall involve activities that--
       ``(1) increase literacy and lifelong learning;
       ``(2) serve persons in rural, underserved, or inner-city 
     areas; or
       ``(3) support the provision of special services.

     ``SEC. 243. SERVICES FOR CHILDREN IN POVERTY.

       ``(a) State Level Reservation.--
       ``(1) In general.--Except as provided in subsection (c), 
     from the total amount that each State library administrative 
     agency receives under this subchapter for a fiscal year, such 
     agency shall reserve the amount of funds determined under 
     paragraph (2) to provide assistance to public libraries in 
     the State to enable such libraries to enhance the provision 
     of special services to children described in such paragraph 
     who are served by such libraries.
       ``(2) Amount.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the amount of funds a State library administrative agency 
     shall reserve under paragraph (1) shall be equal to the sum 
     of--
       ``(i) $1.50 for every preschooler (birth through age 5) in 
     the State from a family living below the income official 
     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); and
       ``(ii) $1.00 for every school-age child (ages 6 through 17) 
     in the State from such a family.
       ``(B) Maximum.--The maximum amount that a State library 
     administrative agency may reserve under paragraph (1) for any 
     fiscal year shall not exceed 15 percent of the total amount 
     such agency receives under this subchapter for such year.
       ``(b) Within State Distribution.--
       ``(1) In general.--Except as provided in paragraph (2), 
     each public library in a State shall receive under this 
     section for a fiscal year an amount that bears the same 
     relation to the amount the State library administrative 
     agency reserves under subsection (a) for such year as the 
     number of children described in subsection (a)(2) served by 
     such public library for the preceding fiscal year bears to 
     the number of such children served by all public libraries in 
     the State for such preceding fiscal year.
       ``(2) Exception.--
       ``(A) In general.--If a State library administrative agency 
     determines that the amount available under paragraph (1) for 
     a fiscal year for 2 or more public libraries is too small to 
     be effective, then such agency may aggregate such amounts for 
     such year.
       ``(B) Requirements.--Each State library administrative 
     agency aggregating amounts under subparagraph (A) for a 
     fiscal year--
       ``(i) shall only aggregate the amount available under 
     paragraph (1) for a public library for a fiscal year if the 
     amount so available for such year is $3,000 or less; and
       ``(ii) shall use such aggregated amounts to enhance the 
     library services provided to the children described in 
     subsection (a)(2) served by the public libraries for which 
     such agency aggregated such amounts for such year.
       ``(c) Adjustments.--
       ``(1) Appropriations increase.--For any fiscal year for 
     which the amount appropriated to carry out this subtitle is 
     greater than the amount appropriated to carry out this 
     subtitle for the preceding fiscal year by a percentage that 
     equals or exceeds 10 percent, the amount each State library 
     administrative agency shall reserve under subsection (a)(2) 
     for the fiscal year for which the determination is made shall 
     be increased by the same such percentage.
       ``(2) Appropriations decrease.--For any fiscal year for 
     which the amount appropriated to carry out this subtitle is 
     less than the amount appropriated to carry out this subtitle 
     for the preceding fiscal year by a percentage that equals or 
     exceeds 10 percent, the amount each State library 
     administrative agency shall reserve under subsection (a)(2) 
     for the fiscal year for which the determination is made shall 
     be decreased by the same such percentage.

[[Page S 15050]]

       ``(d) Plan.--Each public library desiring assistance under 
     this section shall submit a plan for the expenditure of funds 
     under this section to the State library administrative 
     agency. Such plan shall include a description of how the 
     library will--
       ``(1) identify the children described in subsection (a)(2);
       ``(2) collaborate with community representatives to ensure 
     planning and implementation of appropriate, helpful library 
     services; and
       ``(3) establish indicators of success.
       ``(e) Priorities.--Priorities for the use of funds under 
     this section may include activities for children described in 
     subsection (a)(2) such as--
       ``(1) development of after-school homework support and 
     summer and vacation reading programs;
       ``(2) development of family literacy programs;
       ``(3) extension of branch hours to provide space and 
     resources for homework;
       ``(4) development of coalitions and training programs 
     involving libraries and other service providers in the State;
       ``(5) development of technological resources;
       ``(6) hiring specialized outreach staff; and
       ``(7) development of peer tutoring programs.

                 ``CHAPTER 3--ADMINISTRATIVE PROVISIONS

                   ``Subchapter A--State Requirements

     ``SEC. 251. STATE EVALUATION.

       ``(a) In General.--Each State receiving a grant under this 
     subtitle shall annually evaluate, in accordance with 
     subsections (b) and (c), the activities assisted under 
     subchapters A and B of chapter 2.
       ``(b) Subchapter A Activities.--Each evaluation of 
     activities assisted under subchapter A of chapter 2 shall 
     include a description of how effective such activities are in 
     ensuring that--
       ``(1) every American will have affordable access to 
     information resources through electronic networks;
       ``(2) every public library will be connected to national 
     and international electronic networks;
       ``(3) every State library agency will promote planning and 
     provide support for full library participation in electronic 
     networks;
       ``(4) every public librarian will possess the knowledge and 
     skills needed to help people obtain information through 
     electronic sources; and
       ``(5) every public library will be equipped with the 
     technology needed to help people obtain information in an 
     effective and timely manner.
       ``(c) Subchapter B Activities.--
       ``(1) In general.--Each evaluation of activities assisted 
     under subchapter B of chapter 2 shall include--
       ``(A) with respect to activities to increase literacy and 
     lifelong learning--
       ``(i) an analysis of the current situation in the State;
       ``(ii) how such activities will meet the needs of the 
     current situation in the State and the target groups to be 
     served; and
       ``(iii) a report of the effect of such activities in 
     relation to the objectives of such activities;
       ``(B) with respect to activities to serve people in rural 
     and urban areas--
       ``(i) procedures used to identify library users within a 
     community;
       ``(ii) a description of needs and target groups to be 
     served;
       ``(iii) an analysis of the levels of success to be 
     targeted;
       ``(iv) a report of the effect of such activities in 
     relation to the objectives of such activities; and
       ``(v) a description of the background of the current level 
     of library service to people in rural and urban areas, and 
     how such activities will extend, improve, and further provide 
     library resources to such people;
       ``(C) with respect to activities to support the provision 
     of special services--
       ``(i) an analysis of the current situation in the State;
       ``(ii) how such activities will meet the needs of the 
     current situation in the State; and
       ``(iii) a report of the effect of such activities in 
     relation to the objectives of such activities; and
       ``(D) with respect to activities to serve children under 
     section 243--
       ``(i) an analysis of the current local situations;
       ``(ii) a description of such activities, including 
     objectives and costs of such activities; and
       ``(iii) a report of the effect of such activities in 
     relation to the objectives of such activities.
       ``(2) Information.--Each public library receiving 
     assistance under section 243 shall submit to the State 
     library administrative agency such information as such agency 
     may require to meet the requirements of paragraph (1)(D).

     ``SEC. 252. STATE ADVISORY COUNCILS.

       ``(a) Councils Required.--Each State desiring assistance 
     under this subtitle shall establish a State advisory council.
       ``(b) Composition.--Each State advisory council shall be 
     broadly representative of the library entities in the State, 
     including public, school, academic, special, and 
     institutional libraries, and libraries serving individuals 
     with disabilities.
       ``(c) Duties.--Each State advisory council shall--
       ``(1) consult with the State library administrative agency 
     regarding the development of the State plan;
       ``(2) advise the State library administrative agency on the 
     development of, and policy matters arising in the 
     administration of, the State plan, including mechanisms for 
     evaluation;
       ``(3) assist the State library administrative agency in--
       ``(A) the dissemination of information regarding activities 
     assisted under this subtitle; and
       ``(B) the evaluation of activities assisted under this 
     subtitle; and
       ``(4) establish bylaws to carry out such council's duties 
     under this subsection.

                  ``Subchapter B--Federal Requirements

     ``SEC. 261. SERVICES FOR INDIAN TRIBES.

       ``(a) Grants Authorized.--From amounts reserved under 
     section 221(a)(1) for any fiscal year the Director shall 
     award grants to organizations primarily serving and 
     representing Indian tribes to enable such organizations to 
     carry out the authorized activities described in 
     subsection (b).
       ``(b) Authorized Activities.--Grant funds awarded under 
     this section may be used for--
       ``(1) inservice or preservice training of Indians as 
     library personnel;
       ``(2) the purchase of library materials;
       ``(3) the conduct of special library programs for Indians;
       ``(4) salaries of library personnel;
       ``(5) transportation to enable Indians to have access to 
     library services;
       ``(6) dissemination of information about library services;
       ``(7) assessment of tribal library needs; and
       ``(8) contracts to provide public library services to 
     Indians living on or near reservations or to accomplish any 
     activities described in paragraphs (1) through (7).
       ``(c) Prohibition.--No funds shall be awarded pursuant to 
     this section unless such funds will be administered by a 
     librarian.
       ``(d) Duplication.--In awarding grants under this section, 
     the Director shall take such actions as may be necessary to 
     prevent the grant funds provided under this section from 
     being received by any 2 or more entities to serve the same 
     population.
       ``(e) Maintenance of Effort.--Each organization that 
     receives a grant under this section and supports a public 
     library system shall continue to expend from Federal, State, 
     and local sources an amount not less than the amount expended 
     by such organization from such sources for public library 
     services during the second fiscal year preceding the fiscal 
     year for which the determination is made.
       ``(f) Construction.--Nothing in this section shall be 
     construed to prohibit the dissemination of restricted 
     collections of tribal cultural materials with funds made 
     available under this section.
       ``(g) Application.--
       ``(1) In general.--Any organization which desires to 
     receive a grant under this section shall submit an 
     application to the Director that--
       ``(A) describes the activities and services for which 
     assistance is sought; and
       ``(B) contains such information as the Director may require 
     by regulation.
       ``(2) Criteria.--The Director shall issue criteria for the 
     approval of applications under this section, but such 
     criteria shall not include--
       ``(A) an allotment formula; or
       ``(B) a matching of funds requirement.

     ``SEC. 262. NATIONAL LEADERSHIP PROGRAM.

       ``(a) In General.--From the amounts reserved under section 
     221(a)(2) for any fiscal year the Director shall establish 
     and carry out a program of national leadership and evaluation 
     activities to enhance the quality of library services 
     nationwide. Such activities may include--
       ``(1) education 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;
       ``(2) research and demonstration projects related to the 
     improvement of libraries, education in library and 
     information science, enhancement of library services through 
     effective and efficient use of new technologies, and 
     dissemination of information derived from such projects; and
       ``(3) preservation or digitization of library materials and 
     resources, giving priority to projects emphasizing 
     coordination, avoidance of duplication, and access by 
     researchers beyond the institution or library entity 
     undertaking the project.
       ``(b) Grants or Contracts.--
       ``(1) In general.--The Director may carry out the 
     activities described in subsection (a) by awarding grants to, 
     or entering into contracts with, library entities, agencies, 
     or institutions of higher education.
       ``(2) Competitive basis.--Grants and contracts described in 
     paragraph (1) shall be awarded on a competitive basis.
       ``(c) Special Rule.--The Director, with policy advice from 
     the Museum Board shall make every effort to ensure that 
     activities assisted under this section are administered by 
     appropriate library and information services professionals or 
     experts and science professionals or experts.

     ``SEC. 263. STATE AND LOCAL INITIATIVES.

       ``Nothing in this subtitle shall be construed to interfere 
     with State and local initiatives and responsibility in the 
     conduct of library services. The administration of libraries, 
     the selection of personnel and library books and materials, 
     and insofar as 

[[Page S 15051]]
     consistent with the purposes of this subtitle, the determination of the 
     best uses of the funds provided under this subtitle, shall be 
     reserved to the States and their local subdivisions.
                     ``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 may be 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. 272. DEFINITIONS.

       ``As used in this subtitle, 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.

     ``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 to enable museums to construct or install 
     displays, interpretations, and exhibitions in order to 
     improve museum services to the public;
       ``(2) assisting museums in developing and maintaining 
     professionally trained or otherwise experienced staff to meet 
     their needs;
       ``(3) assisting museums in meeting their administrative 
     costs in preserving and maintaining their collections, 
     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 conservation of their 
     collections; and
       ``(6) developing and carrying out specialized programs for 
     specific segments of the public, such as programs for urban 
     neighborhoods, rural areas, Indian reservations, and penal 
     and other State institutions.
       ``(b) 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 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 Acts.
       ``(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 subsections (a) and (b) shall be 
     not more than 50 percent.
       ``(2) 100 percent.--The Director may use not more than 20 
     percent of the funds made available under this section 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 100 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 
     section. Procedures for reviewing grant applications or 
     contracts and cooperative agreements for financial assistance 
     under this section shall not be subject to any review outside 
     of the Institute.

     ``SEC. 274. ASSESSMENTS.

       ``(a) In General.--The Director, subject to the policy 
     direction of the Museum Board and in consultation with 
     appropriate representatives of museums and other types of 
     community institutions, agencies, and organizations, shall 
     undertake an assessment of the collaborative possibilities 
     museums can engage in to serve the public more broadly and 
     effectively.
       ``(b) Contents.--The assessment shall include--
       ``(1) an investigation of opportunities to establish 
     collaborative programs between museums within a community, 
     including an investigation of the role that larger 
     institutions can play as mentors to smaller institutions;
       ``(2) an investigation of opportunities to establish 
     collaborative programs between museums and community 
     organizations;
       ``(3) an investigation of the potential for collaboration 
     between museums on technology issues to reach a broader 
     audience; and
       ``(4) an investigation of opportunities for museums to work 
     with each other and with other community resources to serve 
     the public better and to coordinate professional and 
     financial development activities.
       ``(c) Limitation.--This section shall not apply in any 
     fiscal year for which the amount appropriated under section 
     277(a) is less than $28,700,000.

     ``SEC. 275. 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. 276. 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) Qualifications.--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; and
       ``(ii) museums that, collectively, are broadly 
     representative of various types of museums, including museums 
     relating to science, history, technology, and 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 the term for which the predecessor of 
     the member was appointed.
       ``(2) Reappointment.--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 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 for general policies with respect to the 
     duties, powers, and authorities vested in the Institute 
     relating to museum services, including general policies with 
     respect to--
       ``(1) financial assistance awarded under this title for 
     museum services;
       ``(2) projects described in section 204(c)(2); and
       ``(3) measures to ensure that the policies and activities 
     of the Institute for Museum and Library Services are 
     coordinated with other activities of the Federal Government.
       ``(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 204(c)(2); 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 

[[Page S 15052]]
     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 shall 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 
     shall 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.

     ``SEC. 277. 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 1996, and such sums 
     as may be necessary for each of the fiscal years 1997 through 
     2000.
       ``(b) Administration.--Not more than 10 percent of the 
     funds appropriated under this section for a fiscal year may 
     be used to pay for the administrative costs of carrying out 
     this subtitle.
       ``(c) Joint Projects.--Not less than 5 percent and not more 
     than 7 percent of the funds appropriated under this section 
     for a fiscal year may be made available for projects 
     described in section 204(c)(2) for the fiscal year.
       ``(d) Sums Remaining Available.--Sums appropriated pursuant 
     to subsection (a) for any fiscal year shall remain available 
     for obligation until expended.''.

     SEC. ____2. NATIONAL COMMISSION ON LIBRARIES AND INFORMATION 
                   SCIENCE.

       (a) Functions.--Section 5 of the National Commission on 
     Libraries and Information Science Act (20 U.S.C. 1504) is 
     amended--
       (1) by redesignating subsections (b) through (d) as 
     subsections (d) through (f), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) The Commission shall have the responsibility to 
     advise the Director of the Institute of Museum and Library 
     Services on general policies with respect to the duties and 
     powers vested in the Institute of Museum and Library Services 
     relating to library services, including--
       ``(1) general policies with respect to--
       ``(A) financial assistance awarded under the Museum and 
     Library Services Act for library services; and
       ``(B) projects described in section 204(c)(2) of such Act; 
     and
       ``(2) measures to ensure that the policies and activities 
     of the Institute of Museum and Library Services are 
     coordinated with other activities of the Federal Government.
       ``(c)(1) The Commission shall meet not less than 1 time 
     each year in a joint meeting with the National Museum 
     Services Board, convened for purposes of providing advice on 
     general policy with respect to financial assistance for 
     projects described in section 204(c)(2) of such Act.
       ``(2) All decisions by the Commission and the National 
     Museum Services Board with respect to the advice on general 
     policy described in paragraph (1) shall be made by a \2/3\ 
     majority vote of the total number of the members of the 
     Commission and the National Museum Services Board who are 
     present.
       ``(3) A majority of the members of the Commission and a 
     majority of the members of the National Museum Services Board 
     shall constitute a quorum for the conduct of business at 
     official joint meetings of the Commission and the National 
     Museum Services Board.''.
       (b) Membership.--Section 6 of the National Commission on 
     Libraries and Information Science Act (20 U.S.C. 1505) is 
     amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``Librarian of 
     Congress'' and inserting ``Librarian of Congress, the 
     Director of the Institute of Museum and Library Services (who 
     shall serve as an ex officio, nonvoting member),'';
       (B) in the second sentence--
       (i) by striking ``special competence or interest in'' and 
     inserting ``special competence in or knowledge of; and
       (ii) by inserting before the period the following: ``and at 
     least one other of whom shall be knowledgeable with respect 
     to the library and information service and science needs of 
     the elderly'';
       (C) in the third sentence, by inserting ``appointive'' 
     before ``members''; and
       (D) in the last sentence, by striking ``term and at least'' 
     and all that follows and inserting ``term.''; and
       (2) in subsection (b), by striking ``the rate specified'' 
     and all that follows through ``and while'' and inserting 
     ``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 traveltime) during which the members are engaged 
     in the business of the Commission. While''.

     SEC. ____3. TRANSFER OF FUNCTIONS FROM INSTITUTE OF MUSEUM 
                   SERVICES.

       (a) Definitions.--For purposes of this section, unless 
     otherwise provided or indicated by the context--
       (1) the term ``Federal agency'' has the meaning given to 
     the term ``agency'' by section 551(1) of title 5, United 
     States Code;
       (2) the term ``function'' means any duty, obligation, 
     power, authority, responsibility, right, privilege, activity, 
     or program; and
       (3) the term ``office'' includes any office, 
     administration, agency, institute, unit, organizational 
     entity, or component thereof.
       (b) Transfer of Functions.--There are transferred to the 
     Institute of Museum and Library Services established under 
     section 203 of the Museum and Library Services Act all 
     functions that the Director of the Institute of Museum 
     Services exercised before the date of enactment of this 
     section (including all related functions of any officer or 
     employee of the Institute of Museum Services).
       (c) Determinations of Certain Functions by the Office of 
     Management and Budget.--If necessary, the Office of 
     Management and Budget shall make any determination of the 
     functions that are transferred under subsection (b).
       (d) Delegation and Assignment.--Except where otherwise 
     expressly prohibited by law or otherwise provided by this 
     section, the Director of the Institute of Museum and Library 
     Services may delegate any of the functions transferred to the 
     Director of the Institute of Museum and Library Services by 
     this section and any function transferred or granted to such 
     Director of the Institute of Museum and Library Services 
     after the effective date of this section to such officers and 
     employees of the Institute of Museum and Library Services as 
     the Director of the Institute of Museum and Library Services 
     may designate, and may authorize successive redelegations of 
     such functions as may be necessary or appropriate. No 
     delegation of functions by the Director of the Institute of 
     Museum and Library Services under this section or under any 
     other provision of this section shall relieve such Director 
     of the Institute of Museum and Library Services of 
     responsibility for the administration of such functions.
       (e) Reorganization.--The Director of the Institute of 
     Museum and Library Services may allocate or reallocate any 
     function transferred under subsection (b) among the officers 
     of the Institute of Museum and Library Services, and may 
     establish, consolidate, alter, or discontinue such 
     organizational entities in the Institute of Museum and 
     Library Services as may be necessary or appropriate.
       (f) Rules.--The Director of the Institute of Museum and 
     Library Services may prescribe, in accordance with chapters 5 
     and 6 of title 5, United States Code, such rules and 
     regulations as the Director of the Institute of Museum and 
     Library Services determines to be necessary or appropriate to 
     administer and manage the functions of the Institute of 
     Museum and Library Services.
       (g) Transfer and Allocations of Appropriations and 
     Personnel.--Except as otherwise provided in this section, the 
     personnel employed in connection with, and the assets, 
     liabilities, contracts, property, records, and unexpended 
     balances of appropriations, authorizations, allocations, and 
     other funds employed, used, held, arising from, available to, 
     or to be made available in connection with the functions 
     transferred by this section, subject to section 1531 of title 
     31, United States Code, shall be transferred to the Institute 
     of Museum and Library Services. Unexpended funds transferred 
     pursuant to this subsection shall be used only for the 
     purposes for which the funds were originally authorized and 
     appropriated.
       (h) Incidental Transfers.--The Director of the Office of 
     Management and Budget, at such time or times as the Director 
     shall provide, may make such determinations as may be 
     necessary with regard to the functions transferred by this 
     section, and make such additional incidental dispositions of 
     personnel, assets, liabilities, grants, contracts, property, 
     records, and unexpended balances of appropriations, 
     authorizations, allocations, and other funds held, used, 
     arising from, available to, or to be made available in 
     connection with such functions, as may be necessary to carry 
     out this section. The Director of the Office of Management 
     and Budget shall provide for the termination of the affairs 
     of all entities terminated by this section and for such 
     further measures and dispositions as may be necessary to 
     effectuate the purposes of this section.
       (i) Effect on Personnel.--
       (1) In general.--Except as otherwise provided by this 
     section, the transfer pursuant to this section of full-time 
     personnel (except special Government employees) and part-time 
     personnel holding permanent positions shall not cause any 
     such employee to be separated or reduced in grade or 
     compensation for 1 year after the date of transfer of such 
     employee under this section.
       (2) Executive schedule positions.--Except as otherwise 
     provided in this section, any 

[[Page S 15053]]
     person who, on the day preceding the effective date of this section, 
     held a position compensated in accordance with the Executive 
     Schedule prescribed in chapter 53 of title 5, United States 
     Code, and who, without a break in service, is appointed in 
     the Institute of Museum and Library Services to a position 
     having duties comparable to the duties performed immediately 
     preceding such appointment shall continue to be compensated 
     in such new position at not less than the rate provided for 
     such previous position, for the duration of the service of 
     such person in such new position.
       (j) Savings Provisions.--
       (1) Continuing effect of legal documents.--All orders, 
     determinations, rules, regulations, permits, agreements, 
     grants, contracts, certificates, licenses, registrations, 
     privileges, and other administrative actions--
       (A) that have been issued, made, granted, or allowed to 
     become effective by the President, any Federal agency or 
     official of a Federal agency, or by a court of competent 
     jurisdiction, in the performance of functions that are 
     transferred under this section; and
       (B) that were in effect before the effective date of this 
     section, or were final before the effective date of this 
     section and are to become effective on or after the effective 
     date of this section;

     shall continue in effect according to their terms until 
     modified, terminated, superseded, set aside, or revoked in 
     accordance with law by the President, the Director of the 
     Institute of Museum and Library Services or other authorized 
     official, a court of competent jurisdiction, or by operation 
     of law.
       (2) Proceedings not affected.--This section shall not 
     affect any proceedings, including notices of proposed 
     rulemaking, or any application for any license, permit, 
     certificate, or financial assistance pending before the 
     Institute of Museum Services on the effective date of this 
     section, with respect to functions transferred by this 
     section. Such proceedings and applications shall be 
     continued. Orders shall be issued in such proceedings, 
     appeals shall be taken from the orders, and payments shall be 
     made pursuant to the orders, as if this section had not been 
     enacted, and orders issued in any such proceedings shall 
     continue in effect until modified, terminated, superseded, or 
     revoked by a duly authorized official, by a court of 
     competent jurisdiction, or by operation of law. Nothing in 
     this paragraph shall be construed to prohibit the 
     discontinuance or modification of any such proceeding under 
     the same terms and conditions and to the same extent that 
     such proceeding could have been discontinued or modified if 
     this section had not been enacted.
       (3) Suits not affected.--This section shall not affect 
     suits commenced before the effective date of this section, 
     and in all such suits, proceedings shall be had, appeals 
     taken, and judgments rendered in the same manner and with the 
     same effect as if this section had not been enacted.
       (4) Nonabatement of actions.--No suit, action, or other 
     proceeding commenced by or against the Institute of Museum 
     Services, or by or against any individual in the official 
     capacity of such individual as an officer of the Institute of 
     Museum Services, shall abate by reason of the enactment of 
     this section.
       (5) Administrative actions relating to promulgation of 
     regulations.--Any administrative action relating to the 
     preparation or promulgation of a regulation by the Institute 
     of Museum Services relating to a function transferred under 
     this section may be continued by the Institute of Museum and 
     Library Services with the same effect as if this section had 
     not been enacted.
       (k) Transition.--The Director of the Institute of Museum 
     and Library Services may utilize--
       (1) the services of such officers, employees, and other 
     personnel of the Institute of Museum Services with respect to 
     functions transferred to the Institute of Museum and Library 
     Services by this section; and
       (2) funds appropriated to such functions for such period of 
     time as may reasonably be needed to facilitate the orderly 
     implementation of this section.
       (l) References.--A reference in any other Federal law, 
     Executive order, rule, regulation, or delegation of 
     authority, or any document of or relating to--
       (1) the Director of the Institute of Museum Services with 
     regard to functions transferred under subsection (b), shall 
     be deemed to refer to the Director of the Institute of Museum 
     and Library Services; and
       (2) the Institute of Museum Services with regard to 
     functions transferred under subsection (b), shall be deemed 
     to refer to the Institute of Museum and Library Services.
       (m) Additional Conforming Amendments.--
       (1) Recommended legislation.--After consultation with the 
     appropriate committees of Congress and the Director of the 
     Office of Management and Budget, the Director of the 
     Institute of Museum and Library Services shall prepare and 
     submit to the appropriate committees of Congress recommended 
     legislation containing technical and conforming amendments to 
     reflect the changes made by this section.
       (2) Submission to congress.--Not later than 6 months after 
     the effective date of this section, the Director of the 
     Institute of Museum and Library Services shall submit to the 
     appropriate committees of Congress the recommended 
     legislation referred to under paragraph (1).

     SEC. ____4. SERVICE OF INDIVIDUALS SERVING ON DATE OF 
                   ENACTMENT.

       Notwithstanding section 204 of the Museum and Library 
     Services Act, the individual who was appointed to the 
     position of Director of the Institute of Museum Services 
     under section 205 of the Museum Services Act (as such section 
     was in effect on the day before the date of enactment of this 
     Act) and who is serving in such position on the day before 
     the date of enactment of this Act shall serve as the first 
     Director of the Institute of Museum and Library Services 
     under section 204 of the Museum and Library Services Act (as 
     added by section ____1 of this Act), and shall serve at the 
     pleasure of the President.

     SEC. ____5. CONSIDERATION.

       Consistent with title 5, United States Code, in appointing 
     employees of the Office of Library Services, the Director of 
     the Institute of Museum and Library Services shall give 
     strong consideration to individuals with experience in 
     administering State-based and national library and 
     information services programs.

     SEC. ____6. REPEALS AND TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Repeals.--
       (1) Library services and construction act.--The Library 
     Services and Construction Act (20 U.S.C. 351 et seq.) is 
     repealed.
       (2) Higher education act of 1965.--Title II of the Higher 
     Education Act of 1965 (20 U.S.C. 1021 et seq.) is repealed.
       (b) References to Library Services and Construction Act.--
       (1) Omnibus education reconciliation act of 1981.--Section 
     528 of the Omnibus Education Reconciliation Act of 1981 (20 
     U.S.C. 3489) is amended--
       (A) by striking paragraph (12); and
       (B) by redesignating paragraphs (13) through (15) as 
     paragraphs (12) through (14), respectively.
       (2) Elementary and secondary education act of 1965.--
     Section 3113(10) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6813(10)) is amended by striking 
     ``section 3 of the Library Services and Construction Act'' 
     and inserting ``section 213(7) of the Library Services and 
     Technology Act''.
       (3) Community improvement volunteer act of 1994.--Section 
     7305 of the Community Improvement Volunteer Act of 1994 (40 
     U.S.C. 276d-3) is amended--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) through (6) as 
     paragraphs (1) through (5), respectively.
       (4) Appalachian regional development act of 1965.--Section 
     214(c) of the Appalachian Regional Development Act of 1965 
     (40 U.S.C. App. 214(c)) is amended by striking ``Library 
     Services and Construction Act;''.
       (5) Demonstration cities and metropolitan development act 
     of 1966.--Section 208(2) of the Demonstration Cities and 
     Metropolitan Development Act of 1966 (42 U.S.C. 3338(2)) is 
     amended by striking ``title II of the Library Services and 
     Construction Act;''.
       (6) Public law 87-688.--Subsection (c) of the first section 
     of the Act entitled ``An Act to extend the application of 
     certain laws to American Samoa'', approved September 25, 1962 
     (48 U.S.C. 1666(c)) is amended by striking ``the Library 
     Services Act (70 Stat. 293; 20 U.S.C. 351 et seq.),''.
       (c) References to Institute of Museum Services.--
       (1) Title 5, united states code.--Section 5315 of title 5, 
     United States Code, is amended by striking the following:
       ``Director of the Institute of Museum Services.'' and 
     inserting the following:
       ``Director of the Institute of Museum and Library 
     Services.''.
       (2) Department of education organization act.--Section 301 
     of the Department of Education Organization Act (20 U.S.C. 
     3441) is amended--
       (A) in subsection (a)--
       (i) by striking paragraph (5); and
       (ii) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively; and
       (B) in subsection (b)--
       (i) by striking paragraph (4); and
       (ii) by redesignating paragraphs (5) through (7) as 
     paragraphs (4) through (6), respectively.
       (3) Elementary and secondary education act of 1965.--
       (A) Sections 2101(b), 2205(c)(1)(D), 2208(d)(1)(H)(v), and 
     2209(b)(1)(C)(vi), and subsections (d)(6) and (e)(2) of 
     section 10401 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6621(b), 6645(c)(1)(D), 6648(d)(1)(H)(v), 
     6649(b)(1)(C)(vi), and 8091 (d)(6) and (e)(2)) are amended by 
     striking ``the Institute of Museum Services'' and inserting 
     ``the Institute of Museum and Library Services''.
       (B) Section 10412(b) of such Act (20 U.S.C. 8102(b)) is 
     amended--
       (i) in paragraph (2), by striking ``the Director of the 
     Institute of Museum Services,'' and inserting ``the Director 
     of the Institute of Museum and Library Services,''; and
       (ii) in paragraph (7), by striking ``the Director of the 
     Institute of Museum Services,'' and inserting ``the Director 
     of the Institute of Museum and Library Services,''.
       (C) Section 10414(a)(2)(B) of such Act (20 U.S.C. 
     8104(a)(2)(B)) is amended by striking clause (iii) and 
     inserting the following new clause:
       ``(iii) the Institute of Museum and Library Services.''.

[[Page S 15054]]

       (d) References to Higher Education Act of 1965.--
       (1) Higher education act of 1965.--Paragraph (2) of section 
     356(b) of the Higher Education Act of 1965 (20 U.S.C. 
     1069b(b)) is amended by striking ``II,''.
       (2) Higher education amendments of 1986.--Part D of title 
     XIII of the Higher Education Amendments of 1986 (20 U.S.C. 
     1029 note) is repealed.
       (e) References to Office of Libraries and Learning 
     Resources.--
       (1) Education amendments of 1974.--Section 519 of the 
     Education Amendments of 1974 (20 U.S.C. 1221i) is repealed.
       (2) Department of education organization act.--Section 
     413(b)(1) of the Department of Education Organization Act (20 
     U.S.C. 3473(b)(1)) is amended--
       (A) by striking subparagraph (H); and
       (B) by redesignating subparagraphs (I) through (M) as 
     subparagraphs (H) through (L), respectively.

     SEC. ____7. ARTS AND ARTIFACTS.

       The Arts and Artifacts Indemnity Act (20 U.S.C. 971 et 
     seq.) is amended to read as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Arts and Artifacts 
     Indemnity Act'.

     ``SEC. 2. INDEMNITY FOR EXHIBITIONS OF ARTS AND ARTIFACTS.

       ``The Director of the Institute of Museum and Library 
     Services may enter into agreements to indemnify against loss 
     or damage such items as may be eligible for such indemnity 
     agreements under section 3--
       ``(1) in accordance with the provisions of this Act; and
       ``(2) on such terms and conditions as the Director shall 
     prescribe, by regulation, in order to achieve the objectives 
     of this Act and, consistent with such objectives, to protect 
     the financial interest of the United States.

     ``SEC. 3. ELIGIBLE ITEMS.

       ``(a) Types of Items.--The Director may enter into an 
     indemnity agreement under section 2 with respect to items--
       ``(1) that are--
       ``(A) works of art, including tapestries, paintings, 
     sculpture, folk art, and graphics and craft arts;
       ``(B) manuscripts, rare documents, books, or other printed 
     or published materials;
       ``(C) other artifacts or objects; or
       ``(D) photographs, motion pictures, or audio and video 
     tape;
       ``(2) that are of educational, cultural, historical, or 
     scientific value; and
       ``(3) the exhibition of which is certified (where 
     appropriate) by the Secretary of State or the designee of the 
     Secretary of State as being in the national interest.
       ``(b) Items on Exhibition.--
       ``(1) Scope.--An indemnity agreement made under this Act 
     shall cover eligible items while on exhibition, generally 
     when the items are part of an exchange of exhibitions. An 
     item described in subsection (a) that is part of an 
     exhibition that originates either in the United States or 
     outside the United States and that is touring the United 
     States shall be considered to be an eligible item.
       ``(2) Definition.--For purposes of this subsection, the 
     term `on exhibition' includes the period of time beginning on 
     the date the eligible items leave the premises of the lender 
     or place designated by the lender and ending on the date such 
     items are returned to the premises of the lender or place 
     designated by the lender.

     ``SEC. 4. APPLICATIONS.

       ``(a) In General.--Any person, nonprofit agency, 
     institution, or government desiring to enter into an 
     indemnity agreement for eligible items under this Act shall 
     submit an application to the Director at such time, in such 
     manner and in accordance with such procedures, as the 
     Director shall, by regulation, prescribe.
       ``(b) Contents.--An application submitted under subsection 
     (a) shall--
       ``(1) describe each item to be covered by the agreement 
     (including an estimated value of such item);
       ``(2) show evidence that the item is an item described in 
     section 3(a); and
       ``(3) set forth policies, procedures, techniques, and 
     methods with respect to preparation for, and conduct of, 
     exhibition of the item, and any transportation related to 
     such item.
       ``(c) Approval.--On receipt of an application under this 
     section, the Director shall review the application as 
     described in section 5 and, if the Director agrees with the 
     estimated value described in the application and if such 
     application conforms with the requirements of this Act, 
     approve the application and enter into an indemnity agreement 
     with the applicant under section 2. On such approval, the 
     agreement shall constitute a contract between the Director 
     and the applicant pledging the full faith and credit of the 
     United States to pay any amount for which the Director 
     becomes liable under such agreement. The Director, for such 
     purpose, is authorized to pledge the full faith and credit of 
     the United States.

     ``SEC. 5. INDEMNITY AGREEMENT.

       ``(a) Review.--On receipt of an application meeting the 
     requirements of subsections (a) and (b) of section 4, the 
     Director shall review the estimated value of the items for 
     which coverage by an indemnity agreement is sought.
       ``(b) Aggregate Amount of Loss or Damage.--The aggregate 
     amount of loss or damage covered by indemnity agreements made 
     under this Act shall not exceed $3,000,000,000, at any one 
     time.
       ``(c) Individual Amount of Loss or Damage.--No indemnity 
     agreement for a single exhibition shall cover loss or damage 
     in excess of $300,000,000.
       ``(d) Extent of Coverage.--If the estimated value of the 
     items covered by an indemnity agreement for a single 
     exhibition is--
       ``(1) $2,000,000 or less, then coverage under this Act 
     shall extend only to loss or damage in excess of the first 
     $15,000 of loss or damage to the items covered;
       ``(2) more than $2,000,000 but less than $10,000,000, then 
     coverage under this Act shall extend only to loss or damage 
     in excess of the first $25,000 of loss or damage to the items 
     covered;
       ``(3) not less than $10,000,000 but less than $125,000,000, 
     then coverage under this Act shall extend only to loss or 
     damage in excess of the first $50,000 of loss or damage to 
     the items covered;
       ``(4) not less than $125,000,000 but less than 
     $200,000,000, then coverage under this Act shall extend only 
     to loss or damage in excess of the first $100,000 of loss or 
     damage to the items covered; or
       ``(5) $200,000,000 or more, then coverage under this Act 
     shall extend only to loss or damage in excess of the first 
     $200,000 of loss or damage to the items covered.

     ``SEC. 6. REGULATIONS AND CERTIFICATION.

       ``(a) Regulations.--The Director shall prescribe 
     regulations providing for prompt adjustment of valid claims 
     for loss or damage to items that are covered by an agreement 
     entered into pursuant to section 2, including provision for 
     arbitration of issues relating to the dollar value of damages 
     involving less than total loss or destruction of such covered 
     items.
       ``(b) Certification.--In the case of a claim of loss or 
     damage with respect to an item that is covered by an 
     agreement entered into pursuant to section 2, the Director 
     shall certify the validity of the claim and the amount of the 
     loss to the Speaker of the House of Representatives and the 
     President pro tempore of the Senate.

     ``SEC. 7. REPORT.

       ``The Director shall prepare, and submit at the end of each 
     fiscal year to the appropriate committees of Congress, a 
     report containing information on--
       ``(1) all claims paid pursuant to this Act during such 
     year;
       ``(2) pending claims against the Director under this Act as 
     of the end of such year; and
       ``(3) the aggregate face value of contracts entered into by 
     the Director that are outstanding at the end of such year.

     ``SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as may 
     be necessary--
       ``(1) to enable the Director to carry out the functions of 
     the Director under this Act; and
       ``(2) to pay claims certified pursuant to section 6(b).''.
                                 ______


                      KASSEBAUM AMENDMENT NO. 2897

  Mrs. KASSEBAUM proposed an amendment to amendment No. 2885 proposed 
by her to the bill S. 143, supra; as follows:

       On line 19, strike lines 5 through 14 and insert the 
     following:
       ``(35) Welfare recipient.--The term `welfare recipient' 
     means an individual who receives welfare assistance.''
       On page 50, strike lines 7 through 12 and insert the 
     following: ``viduals to participate in the statewide system; 
     and
       ``(N) followup services for participants who are placed in 
     unsubsized employment.''
       On page 65, line 5 and 6, strike ``section 103(a)(1)'' and 
     insert ``this subtitle for workforce employment activities.''
       On page 69, line 10, strike ``and'' and insert a comma.
       On page 69, line 14, strike ``and'' and insert ``or''.
       On page 70, line 7, strike ``and'' and insert ``or''.
       On page 70, line 14, strike ``and'' and insert ``or''.
       On page 70, line 19, strike ``and'' and insert ``or''.
       On page 70, line 20, strike ``to'' and insert ``for''.
       On page 71, line 12, strike ``and'' and insert ``or''.
       On page 71, line 21, strike ``and'' and insert ``or''.
       On page 96, strike line 6 and insert the following:
       ``(1) In general.--
       ``(A) Negotiation and agreement.--After a Governor 
     submits''.
       On page 96, between lines 13 and 14, insert the following:
       ``(B) Workforce education activities.--In carrying out 
     activities under this section, a local partnership or local 
     workforce development board described in subsection (b) may 
     make recommendations with respect to the allocation of funds 
     for, or administration of, workforce education activities in 
     the State involved, but such allocation and administration 
     shall be carried out in accordance with sections 111 through 
     117 and section 119.''
       On page 108, strike lines 10 through 12 and insert the 
     following:
       ``(A) welfare recipients;''
       In subparagraph (B)(ii) of the matter inserted on page 114, 
     after line 14, strike ``reduce'' and insert ``reduce by 10 
     percent''.

[[Page S 15055]]

       In subparagraph (C)(iii) of the matter inserted on page 
     114, after line 14, strike ``strategic plan of the State 
     referred to in section 104(b)(2)'' and insert ``integrated 
     State plan of the State referred to in section 104(b)(5)''.
       After subparagraph (D) of the matter inserted on page 114, 
     after line 14, insert the following:
       ``(E) Definition.--As used in this paragraph, the term 
     `portion of the allotment'--
       ``(i) used with respect to workforce employment activities, 
     means the funds made available under paragraph (1) or (3) of 
     section 103(a) for workforce employment activities (less any 
     portion of such funds made available under section 6 of the 
     Wagner-Peyser Act (29 U.S.C. 49e)); and
       ``(ii) used with respect to workforce education activities, 
     means the funds made available under paragraph (2) or (3) of 
     section 103(a) for workforce education activities''.
       On page 175, line 25, strike ``; and'' and insert a 
     semicolon.
       On page 176, line 2, insert ``and'' after the semicolon.
       On page 176, between lines 2 and 3, insert the following:
       ``(E) career development planning and decisionmaking;''
       On page 176, line 11, strike the period and insert ``, 
     including training of counselors, teachers, and other persons 
     to use the products of the nationwide integrated labor market 
     and occupational information system to improve career 
     decisionmaking.''.
       On page 184, lines 18 through 20, strike     ``, which 
     models'' and all that follows through ``didactic methods''.
       On page 222, line 10, strike ``from'' and insert ``for''.
       On page 239, line 19, strike ``of'' and insert ``of the''.
       On page 248, line 23, strike ``98-524'' and insert ``98-
     524''.
       On page 250, line 11, strike ``and'' and insert ``and 
     inserting''.
       On page 255, line 25, add a period at the end.
       On page 290, line 14, strike ``to'' and insert ``to the''.
       On page 290, line 17, strike ``(a) In General.--''.
       Beginning on page 290, strike line 23 and all that follows 
     through page 291, line 5.
       On page 292, strike lines 9 through 12 and insert the 
     following:
       ``(a) In General.--Section 3(a) of the Wagner-Peyser Act 
     (29 U.S.C. 49b(a)) is amended to read as follows:''
       On page 293, strike lines 2 through 13 and insert the 
     following: ``tion.''.''
       On page 294, lines 9 through 14, strike ``subsection (b)'' 
     and all that follows through ``(2)'' and insert ``subsection 
     (b)(2)''.
       On page 296, line 12, strike ``to'' and insert ``to the''.
       On page 304, line 6, strike ``members'' and insert 
     ``member's''.
       On page 309, lines 20 and 21, strike ``technologies'' and 
     insert ``technologies,''.
       On page 311, line 7, strike ``purchases'' and insert 
     ``purchased''.

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