3 1 2 3 4 5 6 7 8 9 10 11 of a State agency (hereafter in this section referred to as the State agency) as the sole agency for the administration of the State plan; "(B) provides that funds paid to the State under this subsection will be expended solely on programs ap proved by the State agency which carry out one or more of the objectives of subsection (c); and "(C) provides that the State agency will make such reports, in such form, and containing such information, as the Chairman may, from time to time, require. "(3) Of the sums available to carry out this subsection 12 for any fiscal year, each State which has a plan approved by the Chairman shall be allotted at least $100,000. If the 13 sums appropriated are insufficient to make the allotments under the preceding sentence in full, such sums shall be allotted among such States in equal amounts. In any case where the sums available to carry out this subsection for any fiscal year are in excess of the amount required to make the allotments under the first sentence of this paragraph— "(A) the amount of such excess which is no greater than 25 per centum of the sums available to carry out this subsection for any fiscal year shall be available to the Chairman for making grants under this subsection to States and regional groups; and “(B) the amount of such excess, if any, which re 1 2 4 mains after reserving in full for the Chairman the amount required under clause (A) shall be allotted 3 among the States which have plans approved by the 4 5 6 Chairman in equal amounts, but in no event shall any State be allotted less than $100,000. “(4) (A) That part of any allotment made under 7 paragraph (3) for any fiscal year— 8 9 10 12 "(i) which exceeds $62,500, but 66 '(ii) which does not exceed 20 per centum of such allotment, shall be available, at the discretion of the Chairman, to pay up to 100 per centum of the cost of programs under this 13 subsection if such programs would otherwise be unavailable 14 15 16 17 to the residents of that State. "(B) Any amount allotted to a State under the first sentence of paragraph (3) for any fiscal year which is not obligated by the State prior to sixty days prior to the end of 18 the fiscal year for which such sums are appropriated shall 19 be available to the Chairman for making grants to regional "(C) Funds made available under this subsection shall not be used to supplant non-Federal funds. "(D) For the purposes of paragraph (3) and this 24 paragraph, the term 'regional group' means any multi-State 25 group, whether or not representative of contiguous States. 5 1 "(5) All amounts allotted or made available under 2 paragraph (3) for a fiscal year which are not granted to a 3 State during such year shall be available to the National En4 dowment for the Humanities for the purpose of carrying 5 out section 5 (c). 6 "(6) Whenever the Chairman, after reasonable notice 7 and opportunity for hearing, finds that— 8 9 10 11 127 "(A) a group is not complying substantially with the provisions of this section; "(B) a State agency is not complying substantially with terms and conditions of its State plan approved under this section; or "(C) any funds granted to ag roup or State agency under this section have been diverted from the purposes 13 14 15 for which they are allotted or paid, 16 the Chairman shall immediately notify the Secretary of the 17 Treasury and the group or State agency with respect to 18 which such finding was made that no further grants will be 19 made under this section to such group or agency until there 20 is no longer a defualt or failure to comply or the diversion 21 has been corrected, or, if the compliance or correction is im22 possible, until such group or agency repays or arranges the 23 repayment of the Federal funds which have been improperly 24 diverted or expended.". 25 (b) The amendment made by subsection (a) shall be 6 1 effective with respect to fiscal year 1976 and succeeding 2 fiscal years. 3 AUTHORIZATIONS OF APPROPRIATIONS 4 SEC. 103. (a) (1) (A) Section 11 (a) (1) (A) of the 5 National Foundation on the Arts and the Humanities Act 6 7 8 10 of 1965 is amended to read as follows: "SEC. 11. (a) (1) (A) For the purpose of carrying out section 5, there are authorized to be appropriated $113, 9 500,000 each for the fiscal years 1977 and 1978; and there are so authorized such sums as may be necessary for the 11 fiscal years 1979, and 1980. Of the sums so appropriated 12 for any fiscal year 13 14 15 16 17 "(i) not less than 20 per centum shall be for car rying out section 5 (g) ; and “(ii) 4 per centum shall be for carrying out section 5 (1).". (B) Section 11 (a) (1) (B) of such Act is amended 18 by striking out all that follows "Humanities" and inserting 19 in lieu thereof the following: "$113,500,000 each for fiscal 20 years 1977 and 1978; and there are so authorized such sums 21 as may be necessary for the fiscal years 1979 and 1980. 22 of the sums so appropriated for any fiscal year, not less than 10 per centum shall be for carrying out section 7 (f).". 23 24 25 (2) Section 11 (a) (2) of such Act is amended (A) by striking out "July 1, 1976" and inserting in lieu thereof 7 1 "October 1, 1980" and (B) by striking out all that follows "not exceed" and inserting in lieu thereof "$25,000,000". 3 (b) The amendments made by subsection (a) shall be 4 effective on and after the last day of fiscal year 1976. 5 TITLE II-MUSEUM SERVICES AND EXHIBITIONS 6 7 8 PART A-SERVICES SHORT TITLE SEC. 201. This part may be cited as the "Museum Serv 9 ices Act". 10 11 PURPOSE SEC. 202. It is the purpose of this part to encourage and 12 assist museums in their educational role, in conjunction with 13 formal systems of elementary, secondary, and postsecondary 14 education and with programs of nonformal education for all 15 age groups; to assist museums in modernizing their methods 16 and facilities so that they may better be able to conserve our 17 cultural, historic, and scientific heritage; and to ease the 18 financial burden borne by museums as a result of their in19 creasing use by the public. 20 21 2 23 INSTITUTE FOR THE IMPROVEMENT OF MUSEUM SERVICES SEC. 203. There is hereby established, within the Depart22 ment of Health, Education, and Welfare, an Institute for the 23 Improvement of Museum Services (hereinafter referred to as 24 the "Institute"). The Institute shall consist of a National 25 Museum Services Board (hereinafter referred to as the |