DIRECTOR OF THE INSTITUTE.

SEC. 103. DIRECTOR OF THE INSTITUTE. Section 204 of the Museum and Library Services Act (20 U.S.C. 9103) is amended—(1) in subsection (e), by adding at the end the following: “Where appropriate, the Director shall ensure that activities under subtitle B are coordinated with activities under section 117 STAT. 993 1251 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6383).”; and(2) by adding at the end the following:“(f) Regulatory Authority.—The Director may promulgate such rules and regulations as are necessary and appropriate to implement the provisions of this title.“(g) Application Procedures.—“(1) In general.—In order to be eligible to receive financial assistance under this title, a person or agency shall submit an application in accordance with procedures established by the Director by regulation.“(2) Review and evaluation.—The Director shall establish procedures for reviewing and evaluating applications submitted under this title. Actions of the Institute and the Director in the establishment, modification, and revocation of such procedures under this Act are vested in the discretion of the Institute and the Director. In establishing such procedures, the Director shall ensure that the criteria by which applications are evaluated are consistent with the purposes of this title, taking into consideration general standards of decency and respect for the diverse beliefs and values of the American public.“(3) Treatment of projects determined to be obscene.—“(A) In general.—The procedures described in paragraph (2) shall include provisions that clearly specify that obscenity is without serious literary, artistic, political, or scientific merit, and is not protected speech.“(B) Prohibition.—No financial assistance may be provided under this title with respect to any project that is determined to be obscene.“(C) Treatment of application disapproval.—The disapproval of an application by the Director shall not be construed to mean, and shall not be considered as evidence that, the project for which the applicant requested financial assistance is or is not obscene.”.