[Congressional Record Volume 142, Number 141 (Thursday, October 3, 1996)]
[Senate]
[Pages S12391-S12398]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            OLDER AMERICANS INDIAN TECHNICAL AMENDMENTS ACT

  Mr. LOTT. Mr. President, I ask the Chair lay before the Senate a 
message from the House of Representatives on (S. 1972) to amend the 
Older Americans Act of 1965 to improve the provisions relating to 
Indians, and for other purposes.
  The PRESIDING OFFICER laid before the Senate the following message 
from the House of Representatives:
       Strike out all after the enacting clause, and insert:

     SECTION 1. TABLE OF CONTENTS.

Sec. 1. Table of contents.

                  TITLE I--OLDER AMERICANS ACT OF 1965

Sec. 101. Indian employment; definition of Indian reservation.
Sec. 102. Population statistics development.
Sec. 103. Reporting requirements.
Sec. 104. Expenditure of funds for nutrition services.
Sec. 105. Coordination of services.

         TITLE II--EXTENSION OF PROGRAMS; MUSEUMS AND LIBRARIES

                   Subtitle A--Extension of Programs

Sec. 201. Extension of National Literacy Act of 1991.
Sec. 202. Adult Education Act amendments.
Sec. 203. Extension of Carl D. Perkins Vocational and Applied 
              Technology Education Act.

                   Subtitle B--Museums and Libraries

Sec. 211. Museum and library services.
Sec. 212. National Commission on Libraries and Information Science.
Sec. 213. Transfer of functions from Institute of Museum Services.
Sec. 214. Service of individuals serving on date of enactment.
Sec. 215. Consideration.
Sec. 216. Transition and transfer of funds.

                      TITLE III--HIGHER EDUCATION

                       Subtitle A--Debt Reduction

Sec. 301. Unsubsidized student loans.
Sec. 302. Study of loan fees.

             Subtitle B--Financial Responsibility Standards

Sec. 311. Extension of public comment period.
                  TITLE I--OLDER AMERICANS ACT OF 1965

     SEC. 101. INDIAN EMPLOYMENT; DEFINITION OF INDIAN 
                   RESERVATION.

       Section 502(b)(1)(B) of the Older Americans Act of 1965 (42 
     U.S.C. 3056(b)(1)(B)) is amended to read as follows:
       ``(B)(i) will provide employment for eligible individuals 
     in the community in which such individuals reside, or in 
     nearby communities; or
       ``(ii) if such project is carried out by a tribal 
     organization that enters into an agreement under this 
     subsection or receives assistance from a State that enters 
     into such an agreement, will provide employment for such 
     individuals who are Indians residing on or near an Indian 
     reservation, as the term is defined in section 2601(2) of the 
     Energy Policy Act of 1992 (25 U.S.C. 3501(2));''.

     SEC. 102. POPULATION STATISTICS DEVELOPMENT.

       Section 614(b) of the Older Americans Act of 1965 (42 
     U.S.C. 3057e(b)) is amended by striking ``certification'' and 
     inserting ``approval''.

     SEC. 103. REPORTING REQUIREMENTS.

       Section 614(c) of the Older Americans Act of 1965 (42 
     U.S.C. 3057e(c)) is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Assistant Secretary shall provide waivers and 
     exemptions of the reporting requirements of subsection (a)(3) 
     for applicants that serve Indian populations in 
     geographically isolated areas, or applicants that serve small 
     Indian populations, where the small scale of the project, the 
     nature of the applicant, or other factors make the reporting 
     requirements unreasonable under the circumstances. The 
     Assistant Secretary shall consult with such applicants in 
     establishing appropriate waivers and exemptions.''.

     SEC. 104. EXPENDITURE OF FUNDS FOR NUTRITION SERVICES.

       Section 614(c) of the Older Americans Act of 1965 (42 
     U.S.C. 3057e(c)), as amended by section 103, is further 
     amended by adding at the end the following new paragraph:
       ``(3) In determining whether an application complies with 
     the requirements of subsection (a)(8), the Assistant 
     Secretary shall provide maximum flexibility to an applicant 
     who seeks to take into account subsistence needs, local 
     customs, and other characteristics that are appropriate to 
     the unique cultural, regional, and geographical needs of the 
     Indian populations to be served.''.

     SEC. 105. COORDINATION OF SERVICES.

       Section 614(c) of the Older Americans Act of 1965 (42 
     U.S.C. 3057e(c)), as amended by section 104, is further 
     amended by adding at the end the following new paragraph:
       ``(4) In determining whether an application complies with 
     the requirements of subsection (a)(12), the Assistant 
     Secretary shall require only that an applicant provide an 
     appropriate narrative description of the geographical area to 
     be served and an assurance that procedures will be adopted to 
     ensure against duplicate services being provided to the same 
     recipients.''.
         TITLE II--EXTENSION OF PROGRAMS; MUSEUMS AND LIBRARIES
                   Subtitle A--Extension of Programs

     SEC. 201. EXTENSION OF NATIONAL LITERACY ACT OF 1991.

       (a) National Workforce Literacy Assistance Collaborative.--
     Subsection (c) of section 201 of the National Literacy Act of 
     1991 (20 U.S.C. 1211-1(c)) is amended by striking 
     ``$5,000,000'' and all that follows through the period and 
     inserting ``such sums as may be necessary for fiscal year 
     1997.''.
       (b) Functional Literacy and Life Skills Program for State 
     and Local Prisoners.--Paragraph (3) of section 601(i) of the 
     National Literacy Act of 1991 (20 U.S.C. 1211-2(i)) is 
     amended by striking ``$10,000,000'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 1997.''.

     SEC. 202. ADULT EDUCATION ACT AMENDMENTS.

       The Adult Education Act (20 U.S.C. 1201 et seq.) is 
     amended--
       (1) in section 312--
       (A) in each of subparagraphs (A) and (B) of paragraph (11), 
     by moving the left margin two ems to the right;
       (B) in each of paragraphs (11) through (15), by moving the 
     left margin two ems to the right; and
       (C) by adding at the end the following:
       ``(16) The term `family literacy services' means services 
     that are of sufficient intensity in terms of hours, and of 
     sufficient duration, to make sustainable changes in a family 
     and that integrate all of the following activities:
       ``(A) Interactive literacy activities between parents and 
     their children.
       ``(B) Training for parents on how to be the primary teacher 
     for their children and full partners in the education of 
     their children.
       ``(C) Parent literacy training.
       ``(D) An age-appropriate education program for children.'';
       (2) in section 313(a), by striking ``the fiscal year 
     1991,'' and all that follows through ``1995'' and inserting 
     ``fiscal year 1997'';
       (3) in section 321, by inserting ``and family literacy 
     services'' after ``and activities'';
       (4) in the first sentence of section 322(a)(1), by 
     inserting ``and family literacy services'' after ``adult 
     education programs'';
       (5) in section 341(a), by inserting ``and for family 
     literacy services'' after ``adult education'';
       (6) in section 356(k), by striking ``$25,000,000'' and all 
     that follows through the period and inserting ``such sums as 
     may be necessary for fiscal year 1997.'';
       (7) in section 371(e)(1), by striking ``the fiscal year 
     1991,'' and all that follows through the period and inserting 
     ``fiscal year 1997.'';
       (8) in section 384, by striking subsections (c) through 
     (n); and
       (9) by adding at the end the following:

     ``SEC. 386. NATIONAL INSTITUTE FOR LITERACY.

       ``(a) Establishment.--
       ``(1) In general.--There is established the National 
     Institute for Literacy (in this section referred to as the 
     `Institute'). The Institute shall be administered under the 
     terms of an interagency agreement entered into by the 
     Secretary of Education with the Secretary of Labor and the 
     Secretary of Health and Human Services (in this section 
     referred to as the `Interagency Group'). The Interagency 
     Group may include in the Institute any research and 
     development center, institute, or clearinghouse established 
     within the Department of Education, the Department of Labor, 
     or the Department of Health and

[[Page S12392]]

     Human Services whose purpose is determined by the Interagency 
     Group to be related to the purpose of the Institute.
       ``(2) Offices.--The Institute shall have offices separate 
     from the offices of the Department of Education, the 
     Department of Labor, and the Department of Health and Human 
     Services.
       ``(3) Board recommendations.--The Interagency Group shall 
     consider the recommendations of the National Institute for 
     Literacy Advisory Board (in this section referred to as the 
     `Board') established under subsection (d) in planning the 
     goals of the Institute and in the implementation of any 
     programs to achieve such goals.
       ``(4) Daily operations.--The daily operations of the 
     Institute shall be carried out by the Director of the 
     Institute appointed under subsection (g).
       ``(b) Duties.--
       ``(1) In general.--The Institute shall improve the quality 
     and accountability of the adult basic skills and literacy 
     delivery system by--
       ``(A) providing national leadership for the improvement and 
     expansion of the system for delivery of literacy services;
       ``(B) coordinating the delivery of such services across 
     Federal agencies;
       ``(C) identifying effective models of basic skills and 
     literacy education for adults and families that are essential 
     to success in job training, work, the family, and the 
     community;
       ``(D) supporting the creation of new methods of offering 
     improved literacy services;
       ``(E) funding a network of State or regional adult literacy 
     resource centers to assist State and local public and private 
     nonprofit efforts to improve literacy by--
       ``(i) encouraging the coordination of literacy services;
       ``(ii) carrying out evaluations of the effectiveness of 
     adult education and literacy activities;
       ``(iii) enhancing the capacity of State and local 
     organizations to provide literacy services; and
       ``(iv) serving as a reciprocal link between the Institute 
     and providers of adult education and literacy activities for 
     the purpose of sharing information, data, research, 
     expertise, and literacy resources;
       ``(F) supporting the development of models at the State and 
     local level of accountability systems that consist of goals, 
     performance measures, benchmarks, and assessments that can be 
     used to improve the quality of adult education and literacy 
     activities;
       ``(G) providing information, and other program improvement 
     activities to national, State, and local organizations, such 
     as--
       ``(i) improving the capacity of national, State, and local 
     public and private organizations that provide literacy and 
     basic skills services, professional development, and 
     technical assistance, such as the State or regional adult 
     literacy resource centers referred to in subparagraph (E); 
     and
       ``(ii) establishing a national literacy electronic database 
     and communications network;
       ``(H) working with the Interagency Group, Federal agencies, 
     and the Congress to ensure that such Group, agencies, and the 
     Congress have the best information available on literacy and 
     basic skills programs in formulating Federal policy with 
     respect to the issues of literacy, basic skills, and 
     workforce and career development; and
       ``(I) assisting with the development of policy with respect 
     to literacy and basic skills.
       ``(2) Grants, contracts, and agreements.--The Institute may 
     make grants to, or enter into contracts or cooperative 
     agreements with, individuals, public or private institutions, 
     agencies, organizations, or consortia of such institutions, 
     agencies, or organizations to carry out the activities of the 
     Institute. Such grants, contracts, or agreements shall be 
     subject to the laws and regulations that generally apply to 
     grants, contracts, or agreements entered into by Federal 
     agencies.
       ``(c) Literacy Leadership.--
       ``(1) Fellowships.--The Institute, in consultation with the 
     Board, may award fellowships, with such stipends and 
     allowances as the Director considers necessary, to 
     outstanding individuals pursuing careers in adult education 
     or literacy in the areas of instruction, management, 
     research, or innovation.
       ``(2) Use of fellowships.--Fellowships awarded under this 
     subsection shall be used, under the auspices of the 
     Institute, to engage in research, education, training, 
     technical assistance, or other activities to advance the 
     field of adult education or literacy, including the training 
     of volunteer literacy providers at the national, State, or 
     local level.
       ``(3) Interns and volunteers.--The Institute, in 
     consultation with the Board, may award paid and unpaid 
     internships to individuals seeking to assist the Institute in 
     carrying out its mission. Notwithstanding section 1342 of 
     title 31, United States Code, the Institute may accept and 
     use voluntary and uncompensated services as the Institute 
     determines necessary.
       ``(d) National Institute for Literacy Advisory Board.--
       ``(1) Establishment.--
       ``(A) In general.--There is established a National 
     Institute for Literacy Advisory Board. The Board shall 
     consist of 10 individuals appointed by the President, with 
     the advice and consent of the Senate, from individuals who--
       ``(i) are not otherwise officers or employees of the 
     Federal Government; and
       ``(ii) are representative of entities or groups described 
     in subparagraph (B).
       ``(B) Entities or groups described.--The entities or groups 
     referred to in subparagraph (A) are--
       ``(i) literacy organizations and providers of literacy 
     services, including--

       ``(I) nonprofit providers of literacy services;
       ``(II) providers of programs and services involving English 
     language instruction; and
       ``(III) providers of services receiving assistance under 
     this title;

       ``(ii) businesses that have demonstrated interest in 
     literacy programs;
       ``(iii) literacy students;
       ``(iv) experts in the area of literacy research;
       ``(v) State and local governments; and
       ``(vi) representatives of employees.
       ``(2) Duties.--The Board--
       ``(A) shall make recommendations concerning the appointment 
     of the Director and staff of the Institute;
       ``(B) shall provide independent advice on the operation of 
     the Institute; and
       ``(C) shall receive reports from the Interagency Group and 
     the Director.
       ``(3) Federal advisory committee act.--Except as otherwise 
     provided, the Board established by this subsection shall be 
     subject to the provisions of the Federal Advisory Committee 
     Act (5 U.S.C. App.).
       ``(4) Terms.--
       ``(A) In general.--Each member of the Board shall be 
     appointed for a term of 3 years, except that the initial 
     terms for members may be 1, 2, or 3 years in order to 
     establish a rotation in which \1/3\ of the members are 
     selected each year. Any such member may be appointed for not 
     more than 2 consecutive terms.
       ``(B) Vacancy appointments.--Any member appointed to fill a 
     vacancy occurring before the expiration of the term for which 
     the member's predecessor was appointed shall be appointed 
     only for the remainder of that term. A member may serve after 
     the expiration of that member's term until a successor has 
     taken office. A vacancy in the Board shall be filled in the 
     manner in which the original appointment was made. A vacancy 
     in the Board shall not affect the powers of the Board.
       ``(5) Quorum.--A majority of the members of the Board shall 
     constitute a quorum but a lesser number may hold hearings. 
     Any recommendation of the Board may be passed only by a 
     majority of the Board's members present.
       ``(6) Election of officers.--The Chairperson and Vice 
     Chairperson of the Board shall be elected by the members of 
     the Board. The term of office of the Chairperson and Vice 
     Chairperson shall be 2 years.
       ``(7) Meetings.--The Board shall meet at the call of the 
     Chairperson or a majority of the members of the Board.
       ``(e) Gifts, Bequests, and Devises.--The Institute may 
     accept, administer, and use gifts or donations of services, 
     money, or property, both real and personal.
       ``(f) Mails.--The Board and the Institute may use the 
     United States mails in the same manner and under the same 
     conditions as other departments and agencies of the Federal 
     Government.
       ``(g) Director.--The Interagency Group, after considering 
     recommendations made by the Board, shall appoint and fix the 
     pay of a Director.
       ``(h) Applicability of Certain Civil Service Laws.--The 
     Director and staff of the Institute may be appointed without 
     regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service, and may be 
     paid without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of that title relating to 
     classification and General Schedule pay rates, except that an 
     individual so appointed may not receive pay in excess of the 
     maximum rate payable under section 5376 of title 5, United 
     States Code.
       ``(i) Experts and Consultants.--The Board and the Institute 
     may procure temporary and intermittent services under section 
     3109(b) of title 5, United States Code.
       ``(j) Report.--The Institute shall submit a report 
     biennially to the Committee on Economic and Educational 
     Opportunities of the House of Representatives and the 
     Committee on Labor and Human Resources of the Senate. Each 
     report submitted under this subsection shall include--
       ``(1) a comprehensive and detailed description of the 
     Institute's operations, activities, financial condition, and 
     accomplishments in the field of literacy for the period 
     covered by the report;
       ``(2) a description of how plans for the operation of the 
     Institute for the succeeding two fiscal years will facilitate 
     achievement of the goals of the Institute and the goals of 
     the literacy programs within the Department of Education, the 
     Department of Labor, and the Department of Health and Human 
     Services; and
       ``(3) any additional minority, or dissenting views 
     submitted by members of the Board.
       ``(k) Funding.--Any amounts appropriated to the Secretary 
     of Education, the Secretary of Labor, or the Secretary of 
     Health and Human Services for purposes that the Institute is 
     authorized to perform under this section may be provided to 
     the Institute for such purposes.
       ``(l) Authorization of Appropriations.--There are 
     authorized to be appropriated $10,000,000 for fiscal year 
     1997 and such sums as may be necessary for each of the fiscal 
     years 1998 through 2002 to carry out this section.''.

     SEC. 203. EXTENSION OF CARL D. PERKINS VOCATIONAL AND APPLIED 
                   TECHNOLOGY EDUCATION ACT.

       Subsection (a) of section 3 of the Carl D. Perkins 
     Vocational and Applied Technology Act is amended by striking 
     ``appropriated'' and all that follows through ``1995'' and 
     inserting ``appropriated for fiscal year 1997 such sums as 
     may be necessary''.
                   Subtitle B--Museums and Libraries

     SEC. 211. 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'.

[[Page S12393]]

     ``SEC. 202. GENERAL DEFINITIONS.

       ``As used in this title:
       ``(1) Commission.--The term `Commission' means the National 
     Commission on Libraries and Information Science established 
     under section 3 of the National Commission on Libraries and 
     Information Sciences Act (20 U.S.C. 1502).
       ``(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 275.

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

       ``(a) Establishment.--There is established, within the 
     National Foundation on the Arts and the Humanities, an 
     Institute of Museum and Library Services.
       ``(b) Offices.--The Institute shall consist of an Office of 
     Museum Services and an Office of Library Services. There 
     shall be a National Museum Services Board in the Office of 
     Museum Services.

     ``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 the 
     enactment of the Act entitled `An Act to amend the Older 
     Americans Act of 1965, and for other purposes', 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 the Act entitled `An Act to amend the 
     Older Americans Act of 1965, and for other purposes', every 
     second individual so appointed shall be appointed from among 
     individuals who have special competence with regard to museum 
     services.
       ``(b) Compensation.--The Director may 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 awarding financial assistance for activities 
     described in this title.
       ``(d) Nondelegation.--The Director shall not delegate any 
     of the functions of the Director to any person who is not an 
     officer or employee of the Institute.
       ``(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.

       ``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.

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

     ``SEC. 211. SHORT TITLE.

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

     ``SEC. 212. PURPOSE.

       ``It is the purpose of this subtitle--
       ``(1) to consolidate Federal library service programs;
       ``(2) to stimulate excellence and promote access to 
     learning and information resources in all types of libraries 
     for individuals of all ages;
       ``(3) to promote library services that provide all users 
     access to information through State, regional, national and 
     international electronic networks;
       ``(4) to provide linkages among and between libraries; and
       ``(5) to promote targeted library services to people of 
     diverse geographic, cultural, and socioeconomic backgrounds, 
     to individuals with disabilities, and to people with limited 
     functional literacy or information skills.

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

     ``SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     $150,000,000 for fiscal year 1997 and such sums as may be 
     necessary for each of the fiscal years 1998 through 2002 to 
     carry out this subtitle.
       ``(2) Transfer.--The Secretary of Education shall--
       ``(A) transfer any funds appropriated under the authority 
     of paragraph (1) to the Director to enable the Director to 
     carry out this subtitle; and
       ``(B) not exercise any authority concerning the 
     administration of this title other than the transfer 
     described in subparagraph (A).
       ``(b) Forward Funding.--
       ``(1) In general.--To the end of affording the responsible 
     Federal, State, and local officers adequate notice of 
     available Federal financial assistance for carrying out 
     ongoing library activities and projects, appropriations for 
     grants, contracts, or other payments under any program under 
     this subtitle are authorized to be included in the 
     appropriations Act for the fiscal year preceding the fiscal 
     year during which such activities and projects shall be 
     carried out.
       ``(2) Additional authorization of appropriations.--In order 
     to effect a transition to the timing of appropriation action 
     authorized by subsection (a), the application of this section 
     may result in the enactment, in a fiscal year, of separate 
     appropriations for a program under this subtitle (whether in 
     the same appropriations Act or otherwise) for two consecutive 
     fiscal years.
       ``(c) Administration.--Not more than 3 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.--
       ``(1) In general.--From the amount appropriated under the 
     authority of section 214 for any fiscal year, the Director--
       ``(A) shall reserve 1\1/2\ percent to award grants in 
     accordance with section 261; and
       ``(B) shall reserve 4 percent to award national leadership 
     grants or contracts in accordance with section 262.
       ``(2) Special rule.--If the funds reserved pursuant to 
     paragraph (1)(B) for a fiscal year have not been obligated by 
     the end of such fiscal year, then such funds shall be 
     allotted in accordance with subsection (b) for the fiscal 
     year succeeding the fiscal year for which the funds were so 
     reserved.
       ``(b) Allotments.--
       ``(1) In general.--From the sums appropriated under the 
     authority of section 214 and

[[Page S12394]]

     not reserved under subsection (a) for any fiscal year, the 
     Director shall award grants from minimum allotments, as 
     determined under paragraph (3), to each State. Any sums 
     remaining after minimum allotments are 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 that are not 
     reserved under subsection (a) and not allotted under 
     paragraph (1) for any fiscal year, the Director shall award 
     grants to each State in an amount that bears the same 
     relation to such remainder as the population of the State 
     bears to the population of all States.
       ``(3) Minimum allotment.--
       ``(A) In general.--For the purposes of this subsection, the 
     minimum allotment for each State shall be $340,000, except 
     that the minimum allotment shall be $40,000 in the case of 
     the United States Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau.
       ``(B) Ratable reductions.--If the sum appropriated under 
     the authority of section 214 and not reserved under 
     subsection (a) for any fiscal year is insufficient to fully 
     satisfy the aggregate of the minimum allotments for all 
     States for that purpose for such year, each of such minimum 
     allotments shall be reduced ratably.
       ``(C) Special rule.--
       ``(i) In general.--Notwithstanding any other provision of 
     this subsection and using funds allotted for the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau under this subsection, the Director 
     shall award grants to Guam, American Samoa, the Commonwealth 
     of the Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, or the Republic 
     of Palau to carry out activities described in this subtitle 
     in accordance with the provisions of this subtitle that the 
     Director determines are not inconsistent with this 
     subparagraph.
       ``(ii) Award basis.--The Director shall award grants 
     pursuant to clause (i) on a competitive basis and pursuant to 
     recommendations from the Pacific Region Educational 
     Laboratory in Honolulu, Hawaii.
       ``(iii) Termination of eligibility.--Notwithstanding any 
     other provision of law, the Republic of the Marshall Islands, 
     the Federated States of Micronesia, and the Republic of Palau 
     shall not receive any funds under this subtitle for any 
     fiscal year that begins after September 30, 2001.
       ``(iv) Administrative costs.--The Director may provide not 
     more than 5 percent of the funds made available for grants 
     under this subparagraph to pay the administrative costs of 
     the Pacific Region Educational Laboratory regarding 
     activities assisted under this subparagraph.
       ``(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.

       ``(a) In General.--Not more than 4 percent of the total 
     amount of funds received under this subtitle for any fiscal 
     year by a State may be used for administrative costs.
       ``(b) Construction.--Nothing in this section shall be 
     construed to limit spending for evaluation costs under 
     section 224(c) from sources other than this subtitle.

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

       ``(a) Payments.--Subject to appropriations provided 
     pursuant to section 214, 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.--The Federal share shall be 66 percent.
       ``(2) Non-federal share.--The non-Federal share of payments 
     shall be provided from non-Federal, State, or local sources.
       ``(c) Maintenance of Effort.--
       ``(1) State expenditures.--
       ``(A) Requirement.--
       ``(i) In general.--The amount otherwise payable to a State 
     for a fiscal year pursuant to an allotment under this chapter 
     shall be reduced if the level of State expenditures, as 
     described in paragraph (2), for the previous fiscal year is 
     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 equal to the amount by which the level of such State 
     expenditures for the fiscal year for which the determination 
     is made is less than the average of the total of such 
     expenditures for the 3 fiscal years preceding the fiscal year 
     for which the determination is made.
       ``(ii) Calculation.--Any decrease in State expenditures 
     resulting from the application of subparagraph (B) shall be 
     excluded from the calculation of the average level of State 
     expenditures for any 3-year period described in clause (i).
       ``(B) Decrease in federal support.--If the amount made 
     available under this subtitle for a fiscal year is less than 
     the amount made available under this subtitle for the 
     preceding fiscal year, then the expenditures required by 
     subparagraph (A) for such preceding fiscal year shall be 
     decreased by the same percentage as the percentage decrease 
     in the amount so made available.
       ``(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, 1997.
       ``(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) establish goals, and specify priorities, for the 
     State consistent with the purposes of this subtitle;
       ``(2) describe activities that are consistent with the 
     goals and priorities established under paragraph (1), the 
     purposes of this subtitle, and section 231, that the State 
     library administrative agency will carry out during such year 
     using such grant;
       ``(3) describe the procedures that such agency will use to 
     carry out the activities described in paragraph (2);
       ``(4) describe the methodology that such agency will use to 
     evaluate the success of the activities established under 
     paragraph (2) in achieving the goals and meeting the 
     priorities described in paragraph (1);
       ``(5) describe the procedures that such agency will use to 
     involve libraries and library users throughout the State in 
     policy decisions regarding implementation of this subtitle; 
     and
       ``(6) provide assurances satisfactory to the Director that 
     such agency will make such reports, in such form and 
     containing such information, as the Director may reasonably 
     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.
       ``(c) Evaluation and Report.--Each State library 
     administrative agency receiving a grant under this subtitle 
     shall independently evaluate, and report to the Director 
     regarding, the activities assisted under this subtitle, prior 
     to the end of the 5-year plan.
       ``(d) Information.--Each library receiving assistance under 
     this subtitle shall submit to the State library 
     administrative agency such information as such agency may 
     require to meet the requirements of subsection (c).
       ``(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 in meeting the 
     requirements of this section; and
       ``(D) provide the State library administrative agency the 
     opportunity for a hearing.

                     ``CHAPTER 2--LIBRARY PROGRAMS

     ``SEC. 231. GRANTS TO STATES.

       ``(a) In General.--Of the funds provided to a State library 
     administrative agency under section 214, such agency shall 
     expend, either directly or through subgrants or cooperative 
     agreements, at least 96 percent of such funds for--
       ``(1) establishing or enhancing electronic linkages among 
     or between libraries and library consortia; and
       ``(2) targeting library and information services to persons 
     having difficulty using a library and to underserved urban 
     and rural communities, including children (from birth through 
     age 17) from families with incomes below the poverty line (as 
     defined by the Office of Management and Budget and revised 
     annually in accordance with section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a 
     family of the size involved.
       ``(b) Special Rule.--Each State library administrative 
     agency receiving funds under this chapter may apportion the 
     funds available for the purposes described in subsection (a) 
     between the two purposes described in paragraphs (1) and (2) 
     of such subsection, as appropriate, to meet the needs of the 
     individual State.

                 ``CHAPTER 3--ADMINISTRATIVE PROVISIONS

                   ``Subchapter A--State Requirements

     ``SEC. 251. STATE ADVISORY COUNCILS.

       ``Each State desiring assistance under this subtitle may 
     establish a State advisory council which is broadly 
     representative of the library entities in the State, 
     including public, school, academic, special, and 
     institutional libraries,

[[Page S12395]]

     and libraries serving individuals with disabilities.

                  ``Subchapter B--Federal Requirements

     ``SEC. 261. SERVICES FOR INDIAN TRIBES.

       ``From amounts reserved under section 221(a)(1)(A) 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 activities described in 
     section 231.

     ``SEC. 262. NATIONAL LEADERSHIP GRANTS OR CONTRACTS.

       ``(a) In General.--From the amounts reserved under section 
     221(a)(1)(B) for any fiscal year the Director shall establish 
     and carry out a program awarding national leadership grants 
     or contracts to enhance the quality of library services 
     nationwide and to provide coordination between libraries and 
     museums. Such grants or contracts shall be used for 
     activities that 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;
       ``(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; and
       ``(4) model programs demonstrating cooperative efforts 
     between libraries and museums.
       ``(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, libraries, agencies, 
     institutions of higher education, or museums, where 
     appropriate.
       ``(2) Competitive basis.--Grants and contracts under this 
     section shall be awarded on a competitive basis.
       ``(c) Special Rule.--The Director shall make every effort 
     to ensure that activities assisted under this section are 
     administered by appropriate library and museum 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 consistent with the purposes of this subtitle, 
     the determination of the best uses of the funds provided 
     under this subtitle, shall be reserved for 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 are better able to conserve 
     the cultural, historic, and scientific heritage of the United 
     States; and
       ``(3) to ease the financial burden borne by museums as a 
     result of their increasing use by the public.

     ``SEC. 272. DEFINITIONS.

       ``As used in this subtitle:
       ``(1) Museum.--The term `museum' means a public or private 
     nonprofit agency or institution organized on a permanent 
     basis for essentially educational or aesthetic purposes, that 
     utilizes a professional staff, owns or utilizes tangible 
     objects, cares for the tangible objects, and exhibits the 
     tangible objects to the public on a regular basis.
       ``(2) State.--The term `State' means each of the 50 States 
     of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.

     ``SEC. 273. MUSEUM SERVICES ACTIVITIES.

       ``(a) Grants.--The Director, subject to the policy 
     direction of the Museum Board, may make grants to museums to 
     pay for the Federal share of the cost of increasing and 
     improving museum services, through such activities as--
       ``(1) programs that enable museums to construct or install 
     displays, interpretations, and exhibitions in order to 
     improve museum services provided to the public;
       ``(2) assisting museums in developing and maintaining 
     professionally trained or otherwise experienced staff to meet 
     the needs of the museums;
       ``(3) assisting museums in meeting the administrative costs 
     of preserving and maintaining the collections of the museums, 
     exhibiting the collections to the public, and providing 
     educational programs to the public through the use of the 
     collections;
       ``(4) assisting museums in cooperating with each other in 
     developing traveling exhibitions, meeting transportation 
     costs, and identifying and locating collections available for 
     loan;
       ``(5) assisting museums in the conservation of their 
     collections;
       ``(6) developing and carrying out specialized programs for 
     specific segments of the public, such as programs for urban 
     neighborhoods, rural areas, Indian reservations, and penal 
     and other State institutions; and
       ``(7) model programs demonstrating cooperative efforts 
     between libraries and museums.
       ``(b) Contracts and Cooperative Agreements.--
       ``(1) Projects to strengthen museum services.--The 
     Director, subject to the policy direction of the Museum 
     Board, is authorized to enter into contracts and cooperative 
     agreements with appropriate entities, as determined by the 
     Director, to pay for the Federal share of enabling the 
     entities to undertake projects designed to strengthen museum 
     services, except that any contracts or cooperative agreements 
     entered into pursuant to this subsection shall be effective 
     only to such extent or in such amounts as are provided in 
     appropriations 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) Greater than 50 percent.--The Director may use not 
     more than 20 percent of the funds made available under this 
     subtitle for a fiscal year to make grants under subsection 
     (a), or enter into contracts or agreements under subsection 
     (b), for which the Federal share may be greater than 50 
     percent.
       ``(d) Review and Evaluation.--The Director shall establish 
     procedures for reviewing and evaluating grants, contracts, 
     and cooperative agreements made or entered into under this 
     subtitle. Procedures for reviewing grant applications or 
     contracts and cooperative agreements for financial assistance 
     under this subtitle shall not be subject to any review 
     outside of the Institute.

     ``SEC. 274. AWARD.

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

     ``SEC. 275. NATIONAL MUSEUM SERVICES BOARD.

       ``(a) Establishment.--There is established in the Institute 
     a National Museum Services Board.
       ``(b) Composition and Qualifications.--
       ``(1) Composition.--The Museum Board shall consist of the 
     Director and 14 members appointed by the President, by and 
     with the advice and consent of the Senate.
       ``(2) 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; or
       ``(ii) museums that, collectively, are broadly 
     representative of various types of museums, including museums 
     relating to science, history, technology, art, zoos, and 
     botanical gardens; and
       ``(C) who are recognized for their broad knowledge, 
     expertise, or experience in museums or commitment to museums.
       ``(3) Geographic and other representation.--Members of the 
     Museum Board shall be appointed to reflect persons from 
     various geographic regions of the United States. The Museum 
     Board may not include, at any time, more than 3 members from 
     a single State. In making such appointments, the President 
     shall give due regard to equitable representation of women, 
     minorities, and persons with disabilities who are involved 
     with museums.
       ``(c) Terms.--
       ``(1) In general.--Each appointive member of the Museum 
     Board shall serve for a term of 5 years, except that--
       ``(A) of the members first appointed, 3 shall serve for 
     terms of 5 years, 3 shall serve for terms of 4 years, 3 shall 
     serve for terms of 3 years, 3 shall serve for terms of 2 
     years, and 2 shall serve for terms of 1 year, as designated 
     by the President at the time of nomination for appointment; 
     and
       ``(B) any member appointed to fill a vacancy shall serve 
     for the remainder of 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 of the Museum Board shall serve after the expiration 
     of the term of the member until the successor to the member 
     takes office.
       ``(d) Duties and Powers.--The Museum Board shall have the 
     responsibility to advise the Director on general policies 
     with respect to the duties, powers, and authority of the 
     Institute relating to museum services, including general 
     policies with respect to--
       ``(1) financial assistance awarded under this subtitle for 
     museum services; and
       ``(2) projects described in section 262(a)(4).
       ``(e) Chairperson.--The President shall designate 1 of the 
     appointive members of the Museum Board as Chairperson of the 
     Museum Board.
       ``(f) Meetings.--
       ``(1) In general.--The Museum Board shall meet--
       ``(A) not less than 3 times each year, including--
       ``(i) not less than 2 times each year separately; and

[[Page S12396]]

       ``(ii) not less than 1 time each year in a joint meeting 
     with the Commission, convened for purposes of making general 
     policies with respect to financial assistance for projects 
     described in section 262(a)(4); and
       ``(B) at the call of the Director.
       ``(2) Vote.--All decisions by the Museum Board with respect 
     to the exercise of the duties and powers of the Museum Board 
     shall be made by a majority vote of the members of the Museum 
     Board who are present. All decisions by the Commission and 
     the Museum Board with respect to the policies described in 
     paragraph (1)(A)(ii) shall be made by a \2/3\ majority vote 
     of the total number of the members of the Commission and the 
     Museum Board who are present.
       ``(g) Quorum.--A majority of the members of the Museum 
     Board shall constitute a quorum for the conduct of business 
     at official meetings of the Museum Board, but a lesser number 
     of members may hold hearings. A majority of the members of 
     the Commission and a majority of the members of the Museum 
     Board shall constitute a quorum for the conduct of business 
     at official joint meetings of the Commission and the Museum 
     Board.
       ``(h) Compensation and Travel Expenses.--
       ``(1) Compensation.--Each member of the Museum Board who is 
     not an officer or employee of the Federal Government may be 
     compensated at a rate to be fixed by the President, but not 
     to exceed the daily equivalent of the maximum rate authorized 
     for a position above grade GS-15 of the General Schedule 
     under section 5108 of title 5, United States Code, for each 
     day (including travel time) during which such member is 
     engaged in the performance of the duties of the Museum Board. 
     All members of the Museum Board who are officers or employees 
     of the Federal Government shall serve without compensation in 
     addition to compensation received for their services as 
     officers or employees of the Federal Government.
       ``(2) Travel expenses.--The members of the Museum Board may 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, in the same amounts and to the same extent, as 
     authorized under section 5703 of title 5, United States Code, 
     for persons employed intermittently in Federal Government 
     service.
       ``(i) Coordination.--The Museum Board, with the advice of 
     the Director, shall take steps to ensure that the policies 
     and activities of the Institute are coordinated with other 
     activities of the Federal Government.

     ``SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Grants.--For the purpose of carrying out this 
     subtitle, there are authorized to be appropriated to the 
     Director $28,700,000 for the fiscal year 1997, and such sums 
     as may be necessary for each of the fiscal years 1998 through 
     2002.
       ``(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) Sums Remaining Available.--Sums appropriated pursuant 
     to subsection (a) for any fiscal year shall remain available 
     for obligation until expended.''.

     SEC. 212. 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, 
     powers, and authority of 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 262(a)(4) 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 262(a)(4) 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. 213. 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 From the Institute of Museum 
     Services and the Library Program Office.--There are 
     transferred to the Director of the Institute of Museum and 
     Library Services established under section 203 of the Museum 
     and Library Services Act--
       (1) 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); and
       (2) all functions that the Director of Library Programs in 
     the Office of Educational Research and Improvement in the 
     Department of Education exercised before the date of 
     enactment of this section and any related function of any 
     officer or employee of the Department of Education.
       (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, except 
     that any delegation of any such functions with respect to 
     libraries shall be made to the Deputy Director of the Office 
     of Library Services and with respect to museums shall be made 
     to the Deputy Director of the Office of Museum Services. 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

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     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 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. 214. 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 211 of this title), and shall serve at the 
     pleasure of the President.

     SEC. 215. 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. 216. TRANSITION AND TRANSFER OF FUNDS.

       (a) Transition.--The Director of the Office of Management 
     and Budget shall take appropriate measures to ensure an 
     orderly transition from the activities previously 
     administered by the Director of Library Programs in the 
     Office of Educational Research and Improvement in the 
     Department of Education to the activities administered by the 
     Institute for Museum and Library Services under this title. 
     Such measures may include the transfer of appropriated funds.
       (b) Transfer.--The Secretary of Education shall transfer to 
     the Director the amount of funds necessary to ensure the 
     orderly transition from activities previously administered by 
     the Director of the Office of Library Programs in the Office 
     of Educational Research and Improvement in the Department of 
     Education to the activities administered by the Institute for 
     Museum and Library Services. In no event shall the amount of 
     funds transferred pursuant to the preceding sentence be less 
     than $200,000.
                      TITLE III--HIGHER EDUCATION
                       Subtitle A--Debt Reduction

     SEC. 301. UNSUBSIDIZED STUDENT LOANS.

       (a) Amendment.--Paragraph (1) of section 428H(f) of the 
     Higher Education Act of 1965 (20 U.S.C. 1078-8(f)(1)) is 
     amended to read as follows:
       ``(1) Amount of origination fee.--Except as provided in 
     paragraph (5), an origination fee shall be paid to the 
     Secretary with respect to each loan under this section in the 
     amount of 3.0 percent of the principal amount of the loan. 
     Each lender under this section is authorized to charge the 
     borrower for such origination fee, provided that the lender 
     assesses the same fee to all student borrowers. Any such fee 
     charged to the borrower shall be deducted proportionately 
     from each installment payment of the proceeds of the loan 
     prior to payment to the borrower.''.
       (b) Conforming Amendments.--Section 428H(f) of such Act is 
     further amended--
       (1) in paragraph (3), by striking ``the origination fee'' 
     and inserting ``any origination fee that is charged to the 
     borrower'';
       (2) in paragraph (4), by striking ``origination fees 
     authorized to be collected from borrowers'' and inserting 
     ``origination fees required under paragraph (1)''; and
       (3) by adding at the end the following new paragraph:
       ``(6) Exception.--Notwithstanding paragraph (1), a lender 
     may assess a lesser origination fee for a borrower 
     demonstrating greater financial need as determined by such 
     borrower's adjusted gross family income.''.
       (c) Report on Competitive Allocation.--Within 60 days after 
     the date of enactment of this Act, the Secretary of Education 
     shall submit to each House of the Congress a legislative 
     proposal that would permit the Secretary to allocate the 
     right to make subsidized and unsubsidized student loans on 
     the basis of competitive bidding. Such proposal shall include 
     provision to ensure that any payments received from such 
     competitive bidding are equally allocated to deficit 
     reduction and to pro rata reduction of origination fees in 
     both guaranteed and direct student loans.

     SEC. 302. STUDY OF LOAN FEES.

       (a) Study Required.--The Secretary of Education shall 
     conduct a statistical analysis of the subsidized and 
     unsubsidized student loan programs under part B of title IV 
     of the Higher Education Act of 1965 to gather data on 
     lenders' use of loan fees and to determine if there are any 
     anomalies that would indicate any institutional, programmatic 
     or socioeconomic discrimination in the assessing or waiving 
     such fees.
       (b) Report.--The Secretary of Education shall submit to 
     each House of the Congress a report on the study required by 
     subsection (a) within 2 years after the date of enactment of 
     this Act.
       (c) Statistical Characteristics To Be Studied.--In 
     conducting the study required by subsection (a), the 
     Secretary of Education shall compare recipients of loans on 
     the basis of income, residence location, type and location of 
     higher education, program of instruction and type of lender.
             Subtitle B--Financial Responsibility Standards

     SEC. 311. EXTENSION OF PUBLIC COMMENT PERIOD.

       The Secretary of Education shall extend until December 1, 
     1996, the period for public comment on rules published in the 
     Federal Register on September 20, 1996 (61 Fed. Reg. 49552), 
     relating to financial responsibility standards for 
     institutions participating in higher education programs (34 
     C.F.R. part 668). The Secretary shall

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     publish such rules in final form by February 1, 1997. 
     Notwithstanding section 482(c) of the Higher Education Act of 
     1965 (20 U.S.C. 1089(c)), such rules shall, if so published 
     by such date, be effective for award year 1997-98.

  Mr. LOTT. Mr. President, I ask unanimous consent that the Senate 
disagree to the amendment of the House.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________