NATIONAL ENDOWMENT FOR THE ARTS.

SEC. 103. NATIONAL ENDOWMENT FOR THE ARTS. (a) Authority To Provide Assistance.— Section 5(c) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(c)) is amended— (1) by amending paragraph (1) to read as follows: “(1) projects and productions which have substantial national or international artistic and cultural significance, giving emphasis to American creativity and cultural diversity and to the maintenance and encouragement of professional excellence;”, (2) in paragraph (2) by inserting “or tradition” after “authenticity”, (3) in paragraph (5) by inserting “education,” after “knowledge,”, (4) in paragraph (7) by striking “and”, (5) by redesignating paragraph (8) as paragraph (10), (6) by inserting after paragraph (7) the following: “(8) projects that enhance managerial and organizational skills and capabilities; “(9) projects, productions, and workshops of the kinds described in paragraphs (1) through (8) through film, radio, video, and similar media, for the purpose of broadening public access to the arts; and”, and (7) in the matter following paragraph (10), as so redesignated, by striking “clause (8)” and inserting “paragraph (10)”. (b) Artistic Excellence and Obscene Matter.— Section 5(d) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(d)) is amended to read as follows: “(d) No payment shall be made under this section except upon application therefor which is submitted to the National Endowment for the Arts in accordance with regulations issued and procedures established by the Chairperson. In establishing such regulations and procedures, the Chairperson shall ensure that— “(1) artistic excellence and artistic merit are the criteria by which applications are judged, taking into consideration general standards of decency and respect for the diverse beliefs and values of the American public; and “(2) applications are consistent with the purposes of this section. Such regulations and procedures shall clearly indicate that obscenity is without artistic merit, is not protected speech, and shall not be funded. Projects, productions, workshops, and programs that are determined to be obscene are prohibited from receiving financial assistance under this Act from the National Endowment for the Arts. 104 STAT. 1964 The disapproval or approval of an application by the Chairperson shall not be construed to mean, and shall not be considered as evidence that, the project, production, workshop, or program for which the applicant requested financial assistance is or is not obscene.”. (c) Technical Amendment.— Section 5(f) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(f)) is amended by striking “1954” and inserting “1986”. (d) State Applications for Assistance.— Section 5(g)(2)(E) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(g)(2)(E)) is amended by striking clauses (i) and (ii), and inserting the following: “(i) a description of the level of participation during the most recent preceding year for which information is available by artists, artists’ organizations, and arts organizations in projects and productions for which financial assistance is provided under this subsection; “(ii) for the most recent preceding year for which information is available, a description of the extent projects and productions receiving financial assistance from the State arts agency are available to all people and communities in the State; and”. (e) Purposes of Program Providing Assistance to Agencies and Organizations.— Section 5(1)(1) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(1)(1)) is amended— (1) in subparagraph (E) by striking “and” at the end, (2) in subparagraph (F) by striking the period at the end and inserting and ”, and (3) by inserting after subparagraph (F) the following: “(G) stimulating artistic activity and awareness which are in keeping with the varied cultural traditions of this Nation.”. (f) System of National Information and Data Collection.— Section 5(m) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(m)) is amended— (1) in the first sentence— (A) by inserting “ongoing” after “shall, in”, (B) by striking “develop” and inserting “continue to develop and implement”, and (C) by inserting “and public dissemination” after “collection”, (2) by striking the fourth sentence, and (3) in the last sentence by striking “1988, and biennially” and inserting “1992, and quadrennially”. (g) Contents of Applications; Installment Payments.— Section 5 of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954) is amended— (1) by redesignating subsections (i) through (m) as subsections l through (p), respectively, and (2) by inserting after subsection (h) the following: “(i) It shall be a condition of the receipt of financial assistance provided under this section by the Chairperson or the State agency that the applicant for such assistance include in its application— “(1) a detailed description of the proposed project, production, workshop, or program for which the applicant requests such assistance; 104 STAT. 1965 “(2) a timetable for the completion of such proposed project, production, workshop, or program; “(3) an assurance that the applicant will submit— “(A) interim reports describing the applicant’s— “(i) progress in carrying out such project, production, workshop, or program; and “(ii) compliance with this Act and the conditions of receipt of such assistance; “(B) if such proposed project, production, workshop, or program will be carried out during a period exceeding 1 year, an annual report describing the applicant’s— “(i) progress in carrying out such project, production, workshop, or program; and “(ii) compliance with this Act and the conditions of receipt of such assistance; and “(C) not later than 90 days after— “(i) the end of the period for which the applicant receives such assistance; or “(ii) the completion of such project, production, work-shop, or program; whichever occurs earlier, a final report to the Chairperson or the State agency (as the case may be) describing the applicant’s compliance with this Act and the conditions of receipt of such assistance; and “(4) an assurance that the project, production, workshop, or program for which assistance is requested will meet the standards of artistic excellence and artistic merit required by this Act. “(j) The Chairperson shall issue regulations to provide for the distribution of financial assistance to recipients in installments except in those cases where the Chairperson determines that installments are not practicable. In implementing any such installments, the Chairperson shall ensure that— “(1) not more than two-thirds of such assistance may be provided at the time such application is approved; and “(2) the remainder of such assistance may not be provided until the Chairperson finds that the recipient of such assistance is complying substantially with this section and with the conditions under which such assistance is provided to such recipient. “(k) The Inspector General of the Endowment shall conduct appropriate reviews to ensure that recipients of financial assistance under this section comply with the regulations under this Act that apply with respect to such assistance, including regulations relating to accounting and financial matters.”. (h) Limitation on Receipt of Financial Assistance.— Section 5 of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954), as amended by subsection (g), is amended— (1) by redesignating subsections (1) through (p) as subsections (m) through (q), respectively, and (2) by inserting after subsection (k) the following: “(l) (1) If, after reasonable notice and opportunity for a hearing on the record, the Chairperson determines that a recipient of financial assistance provided under this section by the Chairperson or any non-Federal entity, used such financial assistance for a project, production, workshop, or program that is determined to be obscene, then the Chairperson shall require that until such recipient repays such assistance (in such amount, and under such terms and condi-104 STAT. 1966tions, as the Chairperson determines to be appropriate) to the Endowment; no subsequent financial assistance be provided under this section to such recipient. “(2) Financial assistance repaid under this section to the Endowment shall be deposited in the Treasury of the United States and credited as miscellaneous receipts. “(3) (A) This subsection shall not apply with respect to financial assistance provided before the effective date of this subsection. “(B) This subsection shall not apply with respect to a project, production, workshop, or program after the expiration of the 7-year period beginning on the latest date on which financial assistance is provided under this section for such project, production, workshop, or program.”. (i) Technical Amendments.— (1) Section 5(m) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 954(i)), as so redesignated by subsections (g) and (h), is amended by striking “subsection (j)” and inserting “subsection (n)”. (2) Section 11(a) of the National Foundation on the Arts and the Humanities Act of 1965 (20 U.S.C. 960(a)) is amended— (A) in paragraph (3)— (i) in subparagraph (A) by striking “section 5(1)(1)” each place it appears and inserting “section 5(p)(1)”, and (ii) in subparagraph (C) by striking “section 5(1)(1)” and inserting “section 5(p)(1)”, and (B) in paragraph (4) by striking “section 5(1)(1)” and inserting “section 5(l)(1)”.