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104th Congress                                            Rept. 104-558
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
                 NATIONAL FILM PRESERVATION ACT OF 1996

                                _______


                  May 6, 1996.--Ordered to be printed

_______________________________________________________________________


   Mr. Moorhead, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1734]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on the Judiciary, to whom was referred the bill 
(H.R. 1734) to reauthorize the National Film Preservation 
Board, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                           TABLE OF CONTENTS

                                                                   Page
The Amendment....................................................     1
Purpose and Summary..............................................     8
Background and Need for Legislation..............................     9
    A. National Film Preservation Board and Registry.............    12
    B. National Film Preservation Study and Plan.................    12
Hearings.........................................................    14
Committee Consideration..........................................    14
Committee Oversight Findings.....................................    15
Committee on Government Reform and Oversight Findings............    15
New Budget Authority and Tax Expenditures........................    15
Congressional Budget Office Estimate.............................    15
Inflationary Impact Statement....................................    17
Section-by-Section Analysis and Discussion.......................    17
    Title 1--National Film Preservation Board Reauthorization....    17
    Title 2--National Film Preservation Foundation Act...........    19
Changes in Existing Law Made by the Bill, as Reported............    19
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

    TITLE I--REAUTHORIZATION OF THE NATIONAL FILM PRESERVATION BOARD

SEC. 101. SHORT TITLE.

  This title may be cited as the ``National Film Preservation Act of 
1996''.

SEC. 102. NATIONAL FILM REGISTRY OF THE LIBRARY OF CONGRESS.

  The Librarian of Congress (hereafter in this Act referred to as the 
``Librarian'') shall continue the National Film Registry established 
and maintained under the National Film Preservation Act of 1988 (Public 
Law 100-446), and the National Film Preservation Act of 1992 (Public 
Law 102-307) pursuant to the provisions of this title, for the purpose 
of maintaining and preserving films that are culturally, historically, 
or aesthetically significant.

SEC. 103. DUTIES OF THE LIBRARIAN OF CONGRESS.

  (a) Powers.--
          (1) In general.--The Librarian shall, after consultation with 
        the Board established pursuant to section 104--
                  (A) continue the implementation of the comprehensive 
                national film preservation program for motion pictures 
                established under the National Film Preservation Act of 
                1992, in conjunction with other film archivists, 
                educators and historians, copyright owners, film 
                industry representatives, and others involved in 
                activities related to film preservation, taking into 
                account the objectives of the national film 
                preservation study and the comprehensive national plan 
                conducted under the National Film Preservation Act of 
                1992. This program shall--
                          (i) coordinate activities to assure that 
                        efforts of archivists and copyright owners, and 
                        others in the public and private sector, are 
                        effective and complementary;
                          (ii) generate public awareness of and support 
                        for these activities;
                          (iii) increase accessibility of films for 
                        educational purposes; and
                          (iv) undertake studies and investigations of 
                        film preservation activities as needed, 
                        including the efficacy of new technologies, and 
                        recommend solutions to improve these practices;
                  (B) establish criteria and procedures under which 
                films may be included in the National Film Registry, 
                except that no film shall be eligible for inclusion in 
                the National Film Registry until 10 years after such 
                film's first publication;
                  (C) establish procedures under which the general 
                public may make recommendations to the Board regarding 
                the inclusion of films in the National Film Registry; 
                and
                  (D) determine which films satisfy the criteria 
                established under subparagraph (B) and qualify for 
                inclusion in the National Film Registry, except that 
                the Librarian shall not select more than 25 films each 
                year for inclusion in the Registry.
          (2) Publication of films in registry.--The Librarian shall 
        publish in the Federal Register the name of each film that is 
        selected for inclusion in the National Film Registry.
          (3) Seal.--The Librarian shall provide a seal to indicate 
        that a film has been included in the National Film Registry and 
        is the Registry version of that film. The Librarian shall 
        establish guidelines for approval of the use of the seal in 
        accordance with subsection (b).
  (b) Use of Seal.--The seal provided under subsection (a)(3) may only 
be used on film copies of the Registry version of a film. Such seal may 
be used only after the Librarian has given approval to those persons 
seeking to apply the seal in accordance with the guidelines under 
subsection (a)(3). In the case of copyrighted works, only the copyright 
owner or an authorized licensee of the copyright owner may place or 
authorize the placement of the seal on any film copy of a Registry 
version of a film selected for inclusion in the National Film Registry, 
and the Librarian may place the seal on any film copy of the Registry 
version of any film that is maintained in the National Film Registry 
Collection in the Library of Congress. Anyone authorized to place the 
seal on any film copy of any Registry version of a film may accompany 
such seal with the following language: ``This film was selected for 
inclusion in the National Film Registry by the National Film 
Preservation Board of the Library of Congress because of its cultural, 
historical, or aesthetic significance.''.

SEC. 104. NATIONAL FILM PRESERVATION BOARD.

  (a) Number and Appointment.--
          (1) Members.--The Librarian shall establish in the Library of 
        Congress a National Film Preservation Board to be comprised of 
        20 members, who shall be selected by the Librarian in 
        accordance with this section. Subject to subparagraphs (C) and 
        (N), the Librarian shall request each organization listed in 
        subparagraphs (A) through (Q) to submit a list of 3 candidates 
        qualified to serve as a member of the Board. Except for the 
        members-at-large appointed under subparagraph (2), the 
        Librarian shall appoint one member from each such list 
        submitted by such organizations, and shall designate from that 
        list an alternate who may attend at Board expense those 
        meetings to which the individual appointed to the Board cannot 
        attend. The organizations are the following:
                  (A) The Academy of Motion Picture Arts and Sciences.
                  (B) The Directors Guild of America.
                  (C) The Writers Guild of America. The Writers Guild 
                of America East and the Writers Guild of America West 
                shall each nominate three candidates, and a 
                representative from one organization shall be selected 
                as the member and a representative from the other 
                organization as the alternate.
                  (D) The National Society of Film Critics.
                  (E) The Society for Cinema Studies.
                  (F) The American Film Institute.
                  (G) The Department of Film and Television of the 
                School of Theater, Film and Television at the 
                University of California, Los Angeles.
                  (H) The Department of Film and Television of the 
                Tisch School of the Arts at New York University.
                  (I) The University Film and Video Association.
                  (J) The Motion Picture Association of America.
                  (K) The Alliance of Motion Picture and Television 
                Producers.
                  (L) The Screen Actors Guild of America.
                  (M) The National Association of Theater Owners.
                  (N) The American Society of Cinematographers and the 
                International Photographers Guild, which shall jointly 
                submit one list of 3 candidates from which a member and 
                alternate will be selected.
                  (O) The United States Members of the International 
                Federation of Film Archives.
                  (P) The Association of Moving Image Archivists.
                  (Q) The Society of Composers and Lyricists.
          (2) Members-at-large.--In addition to the Members appointed 
        under paragraph (1), the Librarian shall appoint up to 3 
        members-at-large. The Librarian shall also select an alternate 
        for each member-at-large, who may attend at Board expense those 
        meetings which the member-at-large cannot attend.
  (b) Chair.--The Librarian shall appoint one member of the Board to 
serve as Chair.
  (c) Term of Office.--
          (1) Terms.--The term of each member of the Board shall be 4 
        years, except that there shall be no limit to the number of 
        terms that any individual member may serve.
          (2) Removal of member or organization.--The Librarian shall 
        have the authority to remove any member of the Board, or the 
        organization listed in subsection (a) such member represents, 
        if the member, or organization, over any consecutive 2-year 
        period, fails to attend at least one regularly scheduled Board 
        meeting.
          (3) Vacancies.--A vacancy in the Board shall be filled in the 
        manner in which the original appointment was made under 
        subsection (a), except that the Librarian may fill the vacancy 
        from a list of candidates previously submitted by the 
        organization or organizations involved. Any member appointed to 
        fill a vacancy before the expiration of the term for which his 
        or her predecessor was appointed shall be appointed for the 
        remainder of such term.
  (d) Quorum.--11 members of the Board shall constitute a quorum but a 
lesser number may hold hearings.
  (e) Basic Pay.--Members of the Board shall serve without pay. While 
away from their home or regular places of business in the performance 
of functions of the Board, members of the Board shall be allowed travel 
expenses, including per diem in lieu of subsistence, in the same manner 
as persons employed intermittently in Government service are allowed 
expenses under section 5701 of title 5, United States Code.
  (f) Meetings.--The Board shall meet at least once each fiscal year. 
Meetings shall be at the call of the Librarian.
  (g) Conflict of Interest.--The Librarian shall establish rules and 
procedures to address any potential conflict of interest between a 
member of the Board and responsibilities of the Board.

SEC. 105. RESPONSIBILITIES AND POWERS OF BOARD.

  (a) In General.--The Board shall review nominations of films 
submitted to it for inclusion in the National Film Registry and consult 
with the Librarian, as provided in section 103, with respect to the 
inclusion of such films in the Registry and the preservation of these 
and other films that are culturally, historically, or aesthetically 
significant.
  (b) Nomination of Films.--The Board shall consider, for inclusion in 
the National Film Registry, nominations submitted by the general public 
as well as representatives of the film industry, such as the guilds and 
societies representing actors, directors, screenwriters, 
cinematographers, and other creative artists, producers, and film 
critics, archives and other film preservation organizations, and 
representatives of academic institutions with film study programs. The 
Board shall nominate not more than 25 films each year for inclusion in 
the Registry.
  (c) Powers.--
          (1) In general.--The Board may, for the purpose of carrying 
        out its duties, hold such hearings, sit and act at such times 
        and places, take such testimony, and receive such evidence, as 
        the Librarian and the Board consider appropriate.
          (2) Service on foundation.--Two sitting members of the Board 
        shall be appointed by the Librarian, and shall serve, as Board 
        members of the National Film Preservation Foundation, in 
        accordance with section 203.

SEC. 106. NATIONAL FILM REGISTRY COLLECTION OF THE LIBRARY OF CONGRESS.

  (a) Acquisition of Archival Quality Copies.--The Librarian shall 
endeavor to obtain, by gift from the owner, an archival quality copy of 
the Registry version of each film included in the National Film 
Registry. Whenever possible, the Librarian shall endeavor to obtain the 
best surviving materials, including preprint materials. Copyright 
owners and others possessing copies of such materials are strongly 
encouraged, to further the preservation purposes of this Act, to 
provide preprint and other archival elements to the Library of 
Congress.
  (b) Additional Materials.--The Librarian shall endeavor to obtain, 
for educational and research purposes, additional materials related to 
each film included in the National Film Registry, such as background 
materials, production reports, shooting scripts (including continuity 
scripts) and other similar materials.
  (c) Property of United States.--All copies of films on the National 
Film Registry that are received as gifts or bequests by the Librarian 
and other materials received by the Librarian under subsection (b), 
shall become the property of the United States Government, subject to 
the provisions of title 17, United States Code.
  (d) National Film Registry Collection.--All copies of films on the 
National Film Registry that are received by the Librarian under 
subsection (a), and other materials received by the Librarian under 
subsection (b), shall be maintained in the Library of Congress and be 
known as the ``National Film Registry Collection of the Library of 
Congress''. The Librarian shall, by regulation, and in accordance with 
title 17, United States Code, provide for reasonable access to the 
films and other materials in such collection for scholarly and research 
purposes.

 SEC. 107. SEAL OF THE NATIONAL FILM REGISTRY.

  (a) Use of the Seal.--
          (1) Prohibition on distribution and exhibition.--No person 
        shall knowingly distribute or exhibit to the public a version 
        of a film or any copy of a film which bears the seal described 
        in section 103(a)(3) if such film--
                  (A) is not included in the National Film Registry; or
                  (B) is included in the National Film Registry, but 
                such film or film copy has not been approved for use of 
                the seal by the Librarian pursuant to section 
                103(a)(1)(D).
          (2) Prohibition on promotion.--No person shall knowingly use 
        the seal described in section 103(a)(3) to promote any version 
        of a film or film copy other than a Registry version.
  (b) Effective Date of the Seal.--The use of the seal described in 
section 103(a)(3) shall be effective for each film after the Librarian 
publishes in the Federal Register, in accordance with section 
103(a)(2), the name of that film as selected for inclusion in the 
National Film Registry.

 SEC. 108. REMEDIES.

  (a) Jurisdiction.--The several district courts of the United States 
shall have jurisdiction, for cause shown, to prevent and restrain 
violations of section 107(a).
  (b) Relief.--
          (1) Removal of seal.--Except as provided in paragraph (2), 
        relief for violation of section 107(a) shall be limited to the 
        removal of the seal of the National Film Registry from the film 
        involved in the violation.
          (2) Fine and injunctive relief.--In the case of a pattern or 
        practice of the willful violation of section 107(a), the United 
        States district courts may order a civil fine of not more than 
        $10,000 and appropriate injunctive relief.

 SEC. 109. LIMITATIONS OF REMEDIES.

  The remedies provided in section 108 shall be the exclusive remedies 
under this title, or any other Federal or State law, regarding the use 
of the seal described in section 103(a)(3).

 SEC. 110. STAFF OF BOARD; EXPERTS AND CONSULTANTS.

  (a) Staff.--The Librarian may appoint and fix the pay of such 
personnel as the Librarian considers appropriate to carry out this 
title.
  (b) Experts and Consultants.--The Librarian may, in carrying out this 
title, procure temporary and intermittent services under section 
3109(b) of title 5, United States Code, but at rates for individuals 
not to exceed the daily equivalent of the maximum rate of basic pay 
payable for GS-15 of the General Schedule. In no case may a member of 
the Board or an alternate be paid as an expert or consultant under this 
section.

 SEC. 111. DEFINITIONS.

  As used in this title--
          (1) the term ``Librarian'' means the Librarian of Congress;
          (2) the term ``Board'' means the National Film Preservation 
        Board;
          (3) the term ``film'' means a ``motion picture'' as defined 
        in section 101 of title 17, United States Code, except that 
        such term does not include any work not originally fixed on 
        film stock, such as a work fixed on videotape or laser disk;
          (4) the term ``publication'' means ``publication'' as defined 
        in section 101 of title 17 United States Code; and
          (5) the term ``Registry version'' means, with respect to a 
        film, the version of a film first published, or as complete a 
        version as bona fide preservation and restoration activities by 
        the Librarian, an archivist other than the Librarian, or the 
        copyright owner can compile in those cases where the original 
        material has been irretrievably lost.

 SEC. 112. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to the Librarian such sums as 
may be necessary to carry out the purposes of this title, but in no 
fiscal year shall such sum exceed $250,000.

 SEC. 113. EFFECTIVE DATE.

  The provisions of this title shall be effective for 7 years beginning 
on the date of the enactment of this Act. The provisions of this title 
shall apply to any copy of any film, including those copies of films 
selected for inclusion in the National Film Registry under the National 
Film Preservation Act of 1988 and the National Film Preservation Act of 
1992, except that any film so selected under either Act shall be deemed 
to have been selected for the National Film Registry under this title.

 SEC. 114. REPEAL.

  The National Film Preservation Act of 1992 (2 U.S.C. 179 and 
following) is repealed.

        TITLE II--THE NATIONAL FILM PRESERVATION FOUNDATION ACT

 SEC. 201. SHORT TITLE.

  This title may be cited as the ``National Film Preservation 
Foundation Act''.

 SEC. 202. ESTABLISHMENT AND PURPOSE OF FOUNDATION.

  (a) Establishment.--There is established the National Film 
Preservation Foundation (hereafter in this title referred to as the 
``Foundation''). The Foundation is a charitable and nonprofit 
corporation and is not an agency or establishment of the United States.
  (b) Purposes.--The purposes of the Foundation are--
          (1) to encourage, accept, and administer private gifts to 
        promote and ensure the preservation and public accessibility of 
        the nation's film heritage held at the Library of Congress and 
        other public and non-profit archives throughout the United 
        States;
          (2) to further the goals of the Library of Congress and the 
        National Film Preservation Board in connection with their 
        activities under the National Film Preservation Act; and
          (3) to undertake and conduct other activities, alone or in 
        cooperation with other film related institutions and 
        organizations, as will further the preservation and public 
        accessibility of films made in the United States, particularly 
        those not protected by private interests, for the benefit of 
        present and future generations of Americans.

 SEC. 203. BOARD OF DIRECTORS OF THE FOUNDATION.

  (a) Establishment and Membership.--The Foundation shall have a 
governing Board of Directors (hereafter in this title referred to as 
the ``Board''), which shall consist of 9 Directors, each of whom shall 
be a United States citizen and at least 6 of whom must be knowledgeable 
or experienced in film production, distribution, preservation or 
restoration, including 2 who shall be sitting members of the National 
Film Preservation Board. These 6 members of the Board shall, to the 
extent practicable, represent diverse points of views from the film 
community, including motion picture producers, creative artists, 
nonprofit and public archivists, historians, film critics, theater 
owners, and laboratory and university personnel. The Librarian of 
Congress (hereafter in this title referred to as the ``Librarian'') 
shall be an ex officio non-voting member of the Board. Appointment to 
the Board shall not constitute employment by, or the holding of an 
office of, the United States for the purpose of any Federal law.
  (b) Appointment and Terms.--Within 90 days after the date of the 
enactment of this Act, the Librarian shall appoint the Directors of the 
Board. Each Director shall be appointed for a term of 4 years. A 
vacancy on the Board shall be filled, within 60 days after the vacancy 
occurs, in the manner in which the original appointment was made. No 
individual may serve more than 2 consecutive terms as a Director.
  (c) Chair.--The initial Chair shall be appointed by the Librarian 
from the membership of the Board for a 2-year term, and thereafter 
shall be appointed and removed in accordance with the Foundation's 
bylaws.
  (d) Quorum.--A majority of the current membership of the Board shall 
constitute a quorum for the transaction of business.
  (e) Meetings.--The Board shall meet at the call of the Librarian or 
the Chair at least once a year. If a Director misses 3 consecutive 
regularly scheduled meetings, that individual may be removed from the 
Board by the Librarian, and that vacancy shall be filled in accordance 
with subsection (b).
  (f) Reimbursement of Expenses.--Members of the Board shall serve 
without pay, but may be reimbursed for the actual and necessary 
traveling and subsistence expenses incurred by them in the performance 
of the duties of the Foundation.
  (g) General Powers.--
          (1) Organization of foundation.--The Board may complete the 
        organization of the Foundation by--
                  (A) appointing, removing, and replacing officers, 
                except as provided for in paragraph (2)(B);
                  (B) adopting a constitution and bylaws consistent 
                with the purpose of the Foundation and the provisions 
                of this title; and
                  (C) undertaking such other acts as may be necessary 
                to carry out the provisions of this title.
          (2) Limitation on appointment of employees.--The following 
        limitations apply with respect to the appointment of employees 
        of the Foundation:
                  (A) Except as provided in subparagraph (B), employees 
                of the Foundation shall be appointed, removed, and 
                replaced by the Secretary of the Board. All employees 
                (including the Secretary of the Board) shall be 
                appointed and removed 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 such title relating to 
                classification and General Schedule pay rates, except 
                that no individual so appointed may receive pay in 
                excess of the annual rate of basic pay in effect for 
                grade GS-15 of the General Schedule. Neither the Board, 
                nor any of the employees of the Foundation, including 
                the Secretary of the Board, shall be construed to be 
                employees of the Library of Congress.
                  (B) The first employee appointed shall be the 
                Secretary of the Board. The Secretary shall be 
                appointed, and may be removed by, the Librarian.
                  (C) The Secretary of the Board shall--
                          (i) serve as its executive director, and
                          (ii) be knowledgeable and experienced in 
                        matters relating to film preservation and 
                        restoration activities, financial management, 
                        and fund-raising.

 SEC. 204. RIGHTS AND OBLIGATIONS OF THE FOUNDATION

  (a) General.--The Foundation--
          (1) shall have perpetual succession;
          (2) may conduct business in the several States, the District 
        of Columbia, and any commonwealth, territory, or possession of 
        the United States;
          (3) shall have its principal offices in the District of 
        Columbia; and
          (4) shall at all times maintain a designated agent authorized 
        to accept service of process for the Foundation.
The serving of notice to, or service of process upon, the agent 
required under paragraph (4), or mailed to the business address of such 
agent, shall be deemed as service upon or notice to the Foundation.
  (b) Seal.--The Foundation shall have an official seal selected by the 
Board which shall be judicially noticed.
  (c) Powers.--To carry out its purposes under section 202, the 
Foundation shall have, in addition to the powers otherwise given it 
under this title, the usual powers of a corporation acting as a trustee 
in the District of Columbia, including the power--
          (1) to accept, receive, solicit, hold, administer, and use 
        any gift, devise, or bequest, either absolutely or in trust, of 
        real or personal property or any income therefrom or other 
        interest therein;
          (2) to acquire by purchase or exchange any real or personal 
        property or interest therein;
          (3) unless otherwise required by the instrument of transfer, 
        to sell, donate, lease, invest, reinvest, retain, or otherwise 
        dispose of any property or income therefrom;
          (4) to borrow money and issue bonds, debentures, or other 
        debt instruments;
          (5) to sue and be sued, and complain and defend itself in any 
        court of competent jurisdiction, except that the Directors of 
        the Board shall not be personally liable, except for gross 
        negligence;
          (6) to enter into contracts or other arrangements with public 
        agencies and private organizations and persons and to make such 
        payments as may be necessary to carry out its functions; and
          (7) to do any and all acts necessary and proper to carry out 
        the purposes of the Foundation.
A gift, devise, or bequest may be accepted by the Foundation even 
though it is encumbered, restricted, or subject to beneficial interests 
of private persons, if any current or future interest therein is for 
the benefit of the Foundation.

 SEC. 205. ADMINISTRATIVE SERVICES AND SUPPORT.

  The Librarian may provide personnel, facilities, and other 
administrative services to the Foundation, including reimbursement of 
expenses under section 203, not to exceed the current per diem rates 
for the Federal Government, and may accept reimbursement therefor. 
Amounts so reimbursed shall be deposited in the Treasury to the credit 
of the appropriations then current and chargeable for the cost of 
providing such services.

 SEC. 206. VOLUNTEER STATUS.

  The Librarian may accept, without regard to the civil service 
classification laws, rules, or regulations, the services of the 
Foundation, the Board, and other officers and employees of the Board, 
without compensation from the Library of Congress, as volunteers in the 
performance of the functions authorized in this title.

 SEC. 207. AUDITS, REPORT REQUIREMENTS, AND PETITION OF ATTORNEY 
                    GENERAL, FOR EQUITABLE RELIEF.

  (a) Audits.--The Foundation shall be treated as a private corporation 
established under Federal law for purposes of the Act entitled ``An Act 
to provide for audit of accounts of private corporations established 
under Federal law.'', approved August 30, 1964 (36 U.S.C. 1101-1103).
  (b) Report.--The Foundation shall, as soon as practicable after the 
end of each fiscal year, transmit to the Congress a report of its 
proceedings and activities during such year, including a full and 
complete statement of its receipts, expenditures, and investments.
  (c) Relief with Respect to Certain Foundation Acts or Failure to 
Act.--If the Foundation--
          (1) engages in, or threatens to engage in, any act, practice, 
        or policy that is inconsistent with its purposes set forth in 
        section 202(b), or
          (2) refuses, fails, or neglects to discharge its obligations 
        under this title, or threatens to do so,
the Attorney General of the United States may file a petition in the 
United States District Court for the District of Columbia for such 
equitable relief as may be necessary or appropriate.

 SEC. 208. UNITED STATES RELEASE FROM LIABILITY.

  The United States shall not be liable for any debts, defaults, acts, 
or omissions of the Foundation, nor shall the full faith and credit of 
the United States extend to any obligation of the Foundation.

 SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

  (a) Authorization.--There are authorized to be appropriated to the 
Library of Congress such sums as may be necessary to carry out the 
purposes of this title, not to exceed $250,000 for each of the fiscal 
years 2000 through 2003, to be made available to the Foundation to 
match private contributions (whether in currency, services, or 
property) made to the Foundation by private persons and State and local 
governments.
  (b) Administrative Expenses.--No Federal funds authorized under this 
section may be used by the Foundation for administrative expenses of 
the Foundation, including for salaries, travel, and transportation 
expenses, and other overhead expenses.
  (c) National Film Preservation Board Funds.--Notwithstanding 
subsection (b), the Librarian is authorized to use any funds not 
expended under title I for any of the purposes of this title.

                          Purpose and Summary

    The purpose of H.R. 1734 is to reauthorize the National 
Film Preservation Board in the Library of Congress, and to 
establish, under the Library's auspices, the National Film 
Preservation Foundation, to continue the protection and 
preservation of America's motion picture heritage.
     First created in 1988, the National Film Preservation 
Board was reauthorized in 1992 for four years. Its mission in 
1992 was two-fold: To conduct a national study of the film 
preservation problems facing the nation (completed in June 
1993),\1\ and to prepare a national preservation plan (released 
in August 1994) \2\ to address the problems posed by the study.
---------------------------------------------------------------------------
    \1\ Film Preservation 1993: A Study of the Current State of 
American Film Preservation, June 1993, A Report of the Librarian of 
Congress (submitted June 25, 1993 to Congress), ISBN: 0-8444-0803-4. 
The Report was prepared by the Librarian of Congress in consultation 
with the National Film Preservation Board.
    \2\ Redefining Film Preservation: A National Plan, Recommendations 
of the Librarian of Congress in consultation with the National Film 
Preservation Board (August 1994). ISBN: 0-8444-0819-0.
---------------------------------------------------------------------------
    The study identified the critical need to develop a 
coordinated national strategy to address the loss of film 
materials used and enjoyed especially for historical and 
educational purposes. The national plan recommended the 
creation of a federally chartered Foundation to serve as a 
public-private partnership to help implement these proposals.
    The national plan suggested that the preservation efforts 
focus on those films without commercial viability or (clear) 
copyright ownership, but which are educationally and 
historically significant and therefore most in need of 
maintenance for future generations. The Librarian of Congress 
and the National Film Preservation Board coordinated and 
prepared this plan. They brought together all the parties 
interested in film production, preservation and dissemination 
into the preparation of the study and the national plan and 
recruited the participation of dozens of organizations and 
individual participants in public hearings and drafting 
sessions.
    H.R. 1734 will reauthorize the Board to allow it to 
continue to implement the recommendations found in the national 
preservation plan. The Librarian and the Board have already 
begun the implementation of that plan, although authorization 
for the Board expires in June 1996. H.R. 1734, by reauthorizing 
the Board, will allow it to continue to implement (and refine 
as necessary) the national plan, while the newly-established 
Film Foundation will enable this plan, through a public-private 
financing arrangement, to be properly funded to ensure its 
success. The Foundation, by eventually using very modest 
federal funds to match contributions from the motion picture 
industry, creative artists, other foundations and interested 
parties, will finance projects to conserve and make publicly 
accessible (in full compliance with the rights of copyright 
owners) films made in the United States, particularly those not 
already protected by private interests, for the benefit of 
present and future generations of Americans.

                Background and Need for the Legislation

    Motion pictures are quite possibly the 20th Century's 
preeminent art form, currently celebrating their first 100 
years of existence. As Librarian of Congress Dr. James 
Billington said:

        Throughout its history, film has been a powerful force 
        in American culture and national life, often shaping 
        our very notion of contemporary events. Our challenge 
        now is to appreciate its fullness and diversity and to 
        protect our rich heritage for the study and enjoyment 
        of future generations.3

    \3\ Redefining Film Preservation: A National Plan, Preface p. ix.

    Key to the production of cinema this past century has been 
the effort of American filmmakers, who have crafted works which 
have educated, entertained and enthralled Americans and the 
world. This indigenous American art form however is, as Dr. 
Billington calls it, a ``heritage at-risk.'' The 1993 study 
showed that of America's feature films of the 1920s fewer than 
20 percent survive; and for the 1910s, the survival rate is 
about 10 percent. By creating and reauthorizing the National 
Film Preservation Act in 1988 and 1992, Congress has taken 
steps to ensure the preservation of these important cultural 
and historical materials.
    The American film heritage encompasses a wide body of work, 
from well-known Hollywood classics to an even larger but 
equally vital other portion--documentaries, independent films, 
short subjects (including animation), newsreels, films by or 
documenting minority or ethnic groups, and historical and 
educational films of regional importance. Unfortunately, our 
commitment to preserving motion pictures has rarely matched our 
enthusiasm in watching them. This heritage is in great danger, 
for the simple unassailable reason that film, no matter its 
staying power and importance in American history and culture, 
is a fragile medium because of its unstable chemical 
properties.
    The 1993 study documented that a majority of films produced 
before 1950 have already been lost, while even recent films are 
deteriorating slowly but completely at an alarming rate. Color 
films continue to fade, pre-1950 films continue to deteriorate 
to powder because of nitrate found in their base, post-1950 
films begin to decompose owing to a malady known as ``vinegar 
syndrome.'' Costs for preserving a single color feature film 
can run to $40,000 or more. The 1994 study and the 1994 
national plan recommended that the best way to prolong the life 
of film is to store it in low-temperature, low-humidity storage 
conditions to extend its useful life. Combining proper storage 
with selective duplication and restoration are the keys to the 
maintenance of our film heritage according to the study and 
national plan.
    The Library of Congress as authorized by the 1988 and 1992 
Acts took the lead in the preparation of the most important and 
comprehensive study ever undertaken on film preservation 
problems and solutions. It is being used as the model for other 
countries confronting similar indigenous film preservation 
problems. The recommendations found in the 1994 plan addressing 
storage, duplication, restoration, public access and similar 
issues have already helped the preservation effort (and are 
being duplicated in a separate preservation study on television 
and video materials currently underway by the Library).
    The federal government assumed the role of the development 
of a coordinated study and strategy to address the policy and 
technological problems, share information and resources for 
possible solutions, and avoid duplication of effort by and 
within public and private entities. The Committee believes that 
it is not the responsibility of the federal government to 
assume the primary role for funding the preservation of 
commercially viable films, such as Hollywood feature films, 
which are protected by copyright and thus have ``preservation 
benefactors.'' The film industry should--and to a large degree 
is--preserving the works it controls, thanks to the continuing 
economic incentives available for the distribution of this 
medium via new broadcast and other technological media such as 
videocassettes, laserdisc, cable, pay-per-view, etc., and due 
to collaborative ventures with private archives often in 
possession of the best surviving physical material.
    But clearly falling through the cracks is the vast non-
Hollywood portion of America's motion picture heritage, 
commonly called ``orphan'' films. These materials are the focus 
of this legislation. Despite the valiant efforts of the Library 
of Congress, the Museum of Modern Art, the UCLA Film and 
Television Archive, the George Eastman House, and many other 
large and small institutions throughout the 50 states, saving 
these films has become a matter of hard choices, a daily sad 
ritual of triage. Many film collections of local historical 
importance are improperly stored in high temperature, high 
humidity conditions in local libraries or private collections.
    The Committee feels that H.R. 1734 is necessary to continue 
to focus on and support the private preservation efforts for 
these film collections. This includes the continued efforts and 
important work of the National Film Preservation Board in 
coordinating the public and private sectors, to avoid overlap, 
to share technological and other information among large and 
small archives and film producers, and to permit the mostly 
private funding of this work through the Film Foundation.
    The purpose of this legislation is to make certain that 
future generations will experience films because they were 
preserved. The best means to do this is to foster collaborative 
ventures between the motion picture industry and film archives, 
and, more importantly, to create a public-private funding 
partnership involving these groups and the federal government 
by establishing the Foundation. These were all recommendations 
of the 1994 national plan prepared by the Librarian and in many 
cases are already enjoying ongoing implementation under the 
1992 Act.
    Responsibility for preserving the American film heritage is 
shared by the motion picture industry, the public and nonprofit 
film archives, and the American public. H.R. 1734 will help 
save our film heritage by continuing and expanding the 
important work of the Library of Congress and its advisory 
group, the National Film Preservation Board to further 
implement the recommendations in the 1994 national plan. The 
Foundation will raise the money necessary to fund via grants, 
these recommendations, and the film preservation efforts at 
public and non-profit institutions throughout the 50 states.
    Congress originally established the National Film 
Preservation Board with passage of the National Film 
Preservation Act of 1988 (Pub. L. 100-446). This legislation 
created a 13 member National Film Preservation Board to advise 
the Librarian of Congress on the selection of up to 25 films 
per year for placement on a National Film Registry, and 
mandated that the Librarian seek to obtain archival copies of 
each film selected for a special collection in the Library of 
Congress.
    The 1988 Act further directed the Librarian to develop 
labeling guidelines to determine when these films had been 
``materially altered.'' The National Film Registry proved an 
immediate success in focusing public interest on the need for 
film preservation of the physical materials. Further, the 
Librarian, through his efforts and the generosity of many film 
owners, has been successful in collecting and maintaining 
preprint and other archival materials for each film title on 
the National Film Registry which is part of the Library's 
collection.
    Labeling, however, proved a far more problematic matter, 
with the Library's efforts at guidelines ultimately pleasing no 
one--neither the film producers, the broadcasters, the creative 
community of directors, screenwriters or cinematographers, nor 
the scholarly community. Congress decided that these 
contentious issues should be removed from the activities of the 
Library and Film Board, enabling the Librarian and Board to 
focus on the physical preservation problems.
    The National Film Preservation Act of 1992 (Public Law 102-
307) retained the National Film Registry, reauthorized the 
National Film Preservation Board while increasing its size from 
13 to 18 members. It removed the labeling provisions found in 
the 1988 Act. Most importantly, it placed the bill's focus 
squarely on the universally accepted goal of film preservation. 
The Act mandated a study examining the current state of 
American film preservation efforts, to be followed by 
development of a national film preservation plan to address any 
problems.

            A. national film preservation board and registry

    To date, the Librarian of Congress after consultation with 
the National Film Preservation Board, has selected 175 
``culturally, historically or aesthetically significant films'' 
for inclusion in the National Film Registry. This film 
collection is a part of the holdings of the Library of 
Congress. Films selected for the Registry have included not 
just well-known Hollywood classics but landmark documentaries, 
independent films, silent movies and other less well-known but 
equally vital segments of the American film heritage.
     Thousands of public nominations are received each year and 
reviewed by Board members, the Librarian, and his staff. The 
American public, with each year's announcement, gains a better 
appreciation both of the vibrant richness and diversity of 
American cinema, and, more importantly, of the critical 
preservation problems remaining. Owing to their selection to 
the Registry, many of the 175 titles now face a far brighter 
preservation future. Copyright owners and others have continued 
their generosity in providing archival copies of Registry 
titles to the Library.

              B. National Film Preservation Study and Plan

    Public Law 102-307 mandated that within one year of 
enactment (in June 1992) the Librarian in consultation with the 
Board: (1) conduct a study on the current state of American 
film preservation activities, and (2) subsequently establish a 
comprehensive national film preservation program for motion 
pictures, in conjunction with other film archivists, copyright 
owners and others in the film community. The Library of 
Congress, as the nation's largest film archive and largest 
preserver of film (and situs of the Copyright Office), was the 
proper authority on the subject matter to lead this 
undertaking. The study was prepared in a collaborative, open 
and thorough process and delivered to Congress in June 1993. 
Entitled ``Film Preservation 1993,'' this report persuasively 
demonstrated an American film heritage at risk. Among its major 
findings:
          (1) Fewer than 20 percent of feature films from the 
        1920s survive in complete form; for features of the 
        1910s, the survival rate falls to about 10 percent. Of 
        films made from 1895-1950, less than half survive.
          (2) Films made after 1950 (on supposedly ``safe'' 
        acetate film stock) face major preservation 
        catastrophes from ``color fading,'' ``vinegar 
        syndrome'' (an irreversible film base decay), and 
        soundtrack deterioration.
          (3) Many ``lost'' American films can be found only in 
        foreign archives.
          (4) Funding for film preservation programs has fallen 
        to half its 1980 level, when adjusted for inflation.
    Preparation of the national plan began after a lengthy 
comment period on the study. Six months of negotiations and 
consensus building resulted in the national plan (entitled 
``Redefining Film Preservation'') which was released in August 
1994.4 The plan recommended several key actions, 
including:
---------------------------------------------------------------------------
    \4\ The August 1994 plan included input from the major and 
independent film studios, individual filmmakers of feature, short 
subject, non-fiction films (newsreels and documentaries), avant-garde 
films, creative artists (directors, screenwriters, cinematographers 
etc.), large and small public and non-profit archives and film 
libraries, broadcasters and repertory theaters, film and sound 
laboratories, educators and historians, and others interested in film 
preservation and access issues.
---------------------------------------------------------------------------
          (1) Redesigning preservation policies to underscore 
        the importance of low-temperature, low-humidity storage 
        in retarding film deterioration, thus ensuring that 
        films, once duplicated, can last for centuries.
          (2) Increasing film availability for education and 
        public exhibition.
          (3) Developing public-private partnerships to restore 
        key films, share preservation information, and 
        repatriate ``lost'' American films in foreign archives.
          (4) Creating a new Federally-chartered Foundation to 
        raise money to preserve films, particularly newsreels, 
        documentaries, independent and avant-garde films, 
        socially significant amateur footage, regional 
        historical materials, and other motion pictures of 
        cultural and historical importance that will not 
        survive without public intervention. The Foundation 
        (modeled on other successful foundations created by 
        Congress) would be eligible to match private donations 
        with limited federal funds.
    At the fundamental core of the plan, were several 
principles: first, a partnering of public and private national 
and regional interests; second, the importance of ``preventive 
medicine''--the knowledge that the most effective way to ensure 
the survival of film (both in terms of cost and long-term 
durability) is through cold-and-dry storage facilities; third, 
the comprehension, earned through past failures, that 
successful implementation of a national plan and the survival 
of film require active participation from all in the film 
community; fourth, an understanding that studios bear primary 
responsibility for preserving their own films, enabling the 
archives to focus their efforts primarily on those films 
falling outside the commercial mainstream--documentaries, 
independent films, newsreels, silent films, avant-garde works, 
and significant amateur footage--as well as other works whose 
copyright owners prove unable or unwilling to guarantee their 
preservation; and fifth, to ensure that preservation is also 
linked to the goal of greater public access to film, whether 
through theatrical exhibition, videocassette/videodisc, cable 
transmission, or more non-commercial avenues such as archival 
circulating libraries, all consistent with the rights of 
copyright holders.
    The study and plan compellingly demonstrated that America's 
film heritage (particularly films not controlled by the major 
companies) is clearly at risk and that new collaborative 
approaches are required. The size of the problem by anyone's 
measure is enormous--100 million feet of uncopied film on 
volatile nitrate film stock constitutes one of many current 
preservation problems. By the most conservative estimate, any 
project to copy all of this footage to more permanent stock 
would cost $200-300 million.
    The legislation offers a two-part solution: first, continue 
the policy making and coordinating role of the National Film 
Preservation Board by reauthorizing the Board and its 
activities within the Library of Congress; second, establish a 
Foundation that will combine public and private monies to fund 
projects to address the solutions proposed by the Librarian and 
the Board. H.R. 1734 by reauthorizing the Board will permit the 
continuation of the implementation of the national plan, with 
its many ongoing cooperative ventures between copyright holders 
and the archives, and, create a funding mechanism via the 
Foundation.
    The legislation describes the charter of the Foundation in 
two parts: (1) to promote preservation of and public access to 
the American film heritage, concentrating on those films not 
preserved by commercial interests, and (2) to further the 
national film preservation plan and related activities.
    The Foundation will be a 501(c)(3) nonprofit organization 
in the District of Columbia. Working with the film preservation 
community, the Foundation will raise private gifts (both cash 
and in-kind contributions) and ultimately be eligible for 
limited federal matching funds. Subsequently, the Foundation 
will establish grant programs to make its assets available to 
non-profit institutions throughout the United States. The 
grants will go to fund actual preservation work, not 
administrative overhead. Grants will help fund projects such as 
the archival preservation and restoration of film collections, 
or the establishment of regional storage facilities to house 
endangered film collections from many institutions in archival 
conditions. Also, the Foundation will work to make materials 
more accessible in ways fully consistent with copyright laws, 
perhaps focusing on public domain collections important for 
educational and historical research.

                                Hearings

    The Committee's Subcommittee on Courts and Intellectual 
Property held a field hearing on H.R. 1734 (and other 
legislation) on June 1, 1995 in the main courtroom of the 
Richard H. Chambers U.S. Court of Appeals Building in Pasadena, 
California. Testimony was received from Edward Richmond, 
Curator, UCLA Film and Television Archive, and President of the 
Association of Moving Image Archivists. Other witnesses, Martha 
Coolidge (Director's Guild of America) and Michael Weller 
(Writers Guild of America, East), although focused on the other 
legislation subject of the hearing (H.R. 989 and 1248), also 
voiced strong support for the legislation.

                        Committee Consideration

    On July 27, 1995, the Subcommittee on Courts and 
Intellectual Property met in open session and ordered reported 
the bill H.R. 1734, without amendment, by a voice vote, a 
quorum being present, no objections being heard. On March 12, 
1996, the Committee met in open session to consider H.R. 1734. 
During its consideration, the Committee adopted by voice vote 
an amendment offered by Mr. Moorhead to reduce the 
authorization for the National Film Preservation Board and the 
National Film Preservation Foundation from 10 years to 7 years, 
and to reduce the funding for the National Film Preservation 
Foundation from $2 million a year to $250,000 a year for fiscal 
years 2000 through 2003. The Committee then ordered reported 
the bill H.R. 1734, as amended by a voice vote, a quorum being 
present, no objections being heard.

                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    Clause 2(l)(3)(B) of House Rule XI is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 2(l)(C)(3) of rule XI of the 
Rules of the House of Representatives, the Committee sets 
forth, with respect to the bill, H.R. 1734, the following 
estimate and comparison prepared by the Director of the 
Congressional Budget Office under section 403 of the 
Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 29, 1996.
Hon. Henry J. Hyde,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1734, the National 
Film Preservation Act of 1996 and the National Film 
Preservation Foundation Act, as ordered reported by the House 
Committee on the Judiciary on March 12, 1996. Because enactment 
of H.R. 1734 would not affect direct spending or receipts, pay-
as-you-go procedures would not apply to the bill.
    The bill would impose no intergovernmental or private 
sector mandates as defined in Public Law 104-4 and would have 
no direct budgetary impacts on state, local, or tribal 
governments.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

       Congressional Budget Office--Cost Estimate, March 29, 1996

    1. Bill number: H.R. 1734.
    2. Bill title: The National Film Preservation Act of 1996 
and the National Film Preservation Foundation Act.
    3. Bill status: As ordered reported by the House Committee 
on the Judiciary on March 12, 1996.
    4. Bill purpose: H.R. 1734 would extend authorizations of 
appropriations for the National Film Registry of the Library of 
Congress and the National Film Preservation Board through 
fiscal year 2003. The bill would also create the National Film 
Preservation Foundation to further the goals of the National 
Film Preservation Board and other archives for films made in 
the United States. The National Film Preservation Foundation 
would be authorized for fiscal years 2000 through 2003, with 
federal funds made available on a matching basis. The 
Foundation would be overseen by a Board of Directors and would 
not be an agency or organization of the United States.
    5. Estimated cost to the Federal Government: The following 
table shows spending under H.R. 1734.

----------------------------------------------------------------------------------------------------------------
                                                           1996    1997    1998    1999    2000    2001    2002 
----------------------------------------------------------------------------------------------------------------
                                             National Film Registry                                             
                                                                                                                
Authorizations of Appropriations Under Current Law:                                                             
    Appropriations......................................    0.25       0       0       0       0       0       0
    Estimated Outlays...................................    0.25    0.04    0.01    0.01       0       0       0
Total Proposed Change                                                                                           
    Estimated Authorization.............................       0    0.25    0.25    0.25    0.25    0.25    0.25
    Estimated Outlays...................................       0    0.21    0.24    0.24    0.25    0.25    0.25
Authorizations of Appropriations Under H.R. 1734:                                                               
    Estimated Authorization.............................    0.25    0.25    0.25    0.25    0.25    0.25    0.25
    Estimated Outlays...................................    0.25    0.25    0.25    0.25    0.25    0.25    0.25
                                                                                                                
                                      National Film Preservation Foundation                                     
                                                                                                                
Authorizations of Appropriations Under Current Law:                                                             
    Estimated Authorization.............................       0       0       0       0       0       0       0
    Estimated Outlays...................................       0       0       0       0       0       0       0
Total Proposed Change                                                                                           
    Estimated Authorization.............................       0       0       0       0    0.25    0.25    0.25
    Estimated Outlays...................................       0       0       0       0    0.25    0.25    0.25
Authorizations of Appropriations Under H.R. 1734:                                                               
    Estimated Authorization.............................       0       0       0       0    0.25    0.25    0.25
    Estimated Outlays...................................       0       0       0       0    0.25    0.25    0.25
                                                                                                                
                                                      Total                                                     
                                                                                                                
Authorizations of Appropriations Under H.R. 1734:                                                               
    Estimated Authorization.............................    0.25    0.25    0.25    0.25    0.50    0.50    0.50
    Estimated Outlays...................................    0.25    0.25    0.25    0.25    0.50    0.50   0.50 
----------------------------------------------------------------------------------------------------------------
The costs of this bill fall within budget function 500.                                                         

    6. Basis of estimate: The spending that would occur under 
H.R. 1734 would be subject to the availability of appropriated 
funds. For the purposes of this estimate, CBO assumes that the 
bill will be enacted on September 30, 1996, and that the full 
amounts authorized in the bill will be appropriated. Estimated 
outlay patterns are based on historical spending patterns of 
the Library of Congress and on considerations of the process 
outlined in the bill for making funds available to the newly 
created National Film Preservation Foundation.
    Title I of H.R. 1734 would reauthorize the National Film 
Registry of the Library of Congress and the National Film 
Preservation Board for seven years from the enactment of the 
bill, or for fiscal years 1997 through 2003. These programs are 
currently authorized through fiscal year 1996. The bill would 
authorize $250,000 for each year, for a total of $1.75 million 
over the 7-year period.
    H.R. 1734 would extend the work of the National Film 
Preservation Board, which selects American films to be included 
in the National Film Registry. Under H.R. 1734, board member 
would represent a variety of film and arts organizations and 
would not be paid. The Board would select up to 25 films for 
inclusion in the National Film Registry each year. The 
Librarian of Congress would, upon consulting with the Board, 
work to preserve the films in the Registry and increase 
accessibility for educational purposes.
    Title II of H.R. 1734 would establish the National Film 
Preservation Foundation to further the efforts of the National 
Film Registry of the Library of Congress and other archives of 
films made in the United States. The Foundation, headed by a 
Board of nine directors, would work to improve the 
accessibility and preservation of films made in the United 
States. The bill would authorize appropriations of $250,000 a 
year on a matching basis for fiscal years 2000 through 2003, 
for a total of $1 million.
    H.R. 1734 would repeal the National Film Preservation Act 
of 1992, which authorizes appropriations of $250,000 a year 
through fiscal year 1996 for the National Film Registry of the 
Library of Congress and the National Film Preservation Board. 
The repeal has no budgetary impact.
    7. Pay-as-you-go considerations: None.
    8. Estimated impact on State and local governments: CBO 
estimates that this bill would impose no intergovernmental 
mandates as defined in Public Law 104-4, and would have no 
direct budgetary impact on state, local, or tribal governments.
    9. Estimated impact on the private sector: This bill 
contains no private sector mandates as defined in Public Law 
104-4.
    10. Estimate comparison: None.
    11. Previous CBO estimate: None.
    12. Estimate prepared by: Justin Latus.
    13. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee estimates that H.R. 
1734 will have no significant inflationary impact on prices and 
costs in the national economy.

         Section-by-Section Analysis (Legislation, as Amended)

       title 1--national film preservation board reauthorization

    Section 101 sets forth the short title of Title 1, the 
``National Film Preservation Act of 1996,'' and reauthorizes 
the National Film Preservation Board.
    Section 102 directs the Librarian of Congress to continue 
the National Film Registry, established and maintained under 
the National Film Preservation Act of 1988 and the National 
Film Preservation Act of 1992, pursuant to the provisions of 
this title, to maintain and preserve films that are culturally, 
historically, or aesthetically significant.
    Section 103 sets forth duties and powers of the Librarian 
under this title, including continued implementation, in 
consultation with members of the National Film Preservation 
Board, of the comprehensive national film preservation plan 
prepared under the 1992 Act; establishment of criteria under 
which films may be included in the National Film Registry and 
procedures for titles to be nominated by the general public; 
publication in the Federal Register of each film selected for 
inclusion in the Registry; and instructions for usage of the 
National Film Registry seal on film copies of Registry titles.
    Section 104 sets forth requirements for the National Film 
Preservation Board, including selection of members by the 
Librarian. This section further specifies the composition of 
the Board and sets forth provisions relating to the appointment 
of Board members as well as the functioning of the Board, 
including selection of a chairperson, quorum requirements, 
meetings, basic pay, and terms of office. Under H.R. 1734, 
membership increases by two members from the 1992 Act. The 
National Association of Broadcasters have agreed to forego 
participation on the Board (and focus on the work with the 
Library on a separate TV/video preservation study currently 
underway). Three new members are added to the Board: one more 
at-large member, and one representative each from the Society 
of Composers and Lyricists and the Association of Moving Image 
Archivists.
    Section 105 sets forth the Board responsibilities and 
powers, related largely to its role in advising the Librarian 
of Congress on the selections of up to 25 films a year for 
inclusion in the National Film Registry, including 
consideration of film nominations by the general public, as 
well as by representatives of specified types of film industry, 
preservation, and academic groups.
    Section 106 sets forth requirements relating to the 
National Film Registry Collection of the Library of Congress, 
including acquisition of archival quality copies and additional 
materials.
     Sections 107-109 make clear who may or may not use the 
seal of the National Registry and when the use of the seal is 
inappropriate; and set forth remedies of violations and 
limitations of such remedies that are available against persons 
who misuse the seal.
    Section 110 authorizes the Librarian to appoint such staff 
as appropriate and to procure the services of experts and 
consultants.
    Section 111 provides definitions for terms found in the 
legislation.
    Section 112 authorizes appropriations of up to $250,000 per 
year for seven years, beginning on the enactment date of this 
Act.
    Section 113 makes this title effective for seven years 
beginning on the enactment date of this Act. It makes this Act 
applicable to all copies of films selected for inclusion in the 
National Film Registry, including those selected pursuant to 
the provisions of the National Film Preservation Acts of 1988 
and 1992.
    Section 114 repeals the National Film Preservation Act of 
1992.

           title 2--national film preservation foundation act

    Section 201 sets forth the short title of Title 2, the 
``National Film Preservation Foundation Act.''
    Section 202 establishes the Foundation as a charitable, 
501(c) nonprofit organization, and states the purposes of the 
Foundation to: (a) encourage, accept and administer private 
gifts to promote and ensure the preservation and public 
accessibility of the nation's film heritage held at the Library 
of Congress and other public and non-profit archives throughout 
the United States; (b) further the goals of the Library of 
Congress and the National Film Preservation Board in connection 
with their activities under the National Film Preservation Act; 
and (c) undertake and conduct other activities, alone or in 
cooperation with other film-related institutions and 
organizations, as will further the preservation and public 
accessibility of films made in the United States, particularly 
those not preserved by private interests, for the benefit of 
present and future generations of Americans.
    Section 203 sets forth requirements relating to the 
Foundation's Board of Directors, specifically that Board will 
consist of 9 members, including two members from the National 
Film Preservation Board, who shall serve fixed 4-year terms. 
Board members will serve as volunteers, paid only for 
Foundation travel. The Librarian of Congress, shall appoint the 
Board's initial chair, and serve as an ex officio non-voting 
member of the Board. This section further sets forth provisions 
relating to the appointment and functions of the Board.
    Section 204 sets forth the Foundation's rights and 
obligations.
    Sections 205-206 authorize the Librarian to: (1) provide, 
and accept reimbursement for, administrative services and 
support to the Foundation; and (2) accept services of the 
Foundation, the Board, and other Board officers and employees 
as volunteers.
    Sections 207-208 set forth provisions relating to audits, 
reports, and petitions by the Attorney General for equitable 
relief for certain Foundation acts or failures to act.
    Section 209 authorizes appropriations for the Foundation. 
Originally authorized at $2 million per year for 10 years the 
Foundation, under the legislation as amended by the full 
Committee, will be authorized at $250,000 per year beginning in 
fiscal year 2000. Also, it authorizes the Librarian to use 
unexpended funds from Title 1 for Title 2.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets):

                 NATIONAL FILM PRESERVATION ACT OF 1992

                 [TITLE II--NATIONAL FILM PRESERVATION

[SEC. 201. SHORT TITLE.

  [This title may be cited as the ``National Film Preservation 
Act of 1992''.

[SEC. 202. NATIONAL FILM REGISTRY OF THE LIBRARY OF CONGRESS.

  [The Librarian of Congress (hereinafter in this title 
referred to as the ``Librarian'') shall establish a National 
Film Registry pursuant to the provisions of this title, for the 
purpose of maintaining and preserving films that are 
culturally, historically, or aesthetically significant.

[SEC. 203. DUTIES OF THE LIBRARIAN OF CONGRESS.

  [(a) Study of Film Preservation.--(1) The Librarian shall, 
after consultation with the Board established pursuant to 
section 204, conduct a study on the current state of film 
preservation and restoration activities, including the 
activities of the Library of Congress and the other major film 
archives in the United States. The Librarian shall, in 
conducting the study--
          [(A) take into account the objectives of the national 
        film preservation program set forth in clauses (i) 
        through (iii) of subsection (b)(1)(A); and
          [(B) consult with film archivists, educators and 
        historians, copyright owners, film industry 
        representatives, including those involved in the 
        preservation of film, and others involved in activities 
        related to film preservation.
The study shall include an examination of the concerns of 
private organizations and individuals involved in the 
collection and use of abandoned films such as training, 
educational, and other historically important films.
  [(2) Not later than 1 year after the date of the enactment of 
this Act, the Librarian shall submit to the Congress a report 
containing the results of the study conducted under paragraph 
(1).
  [(b) Powers.--(1) The Librarian shall, after consultation 
with the Board, do the following:
          [(A) After completion of the study required by 
        subsection (a), the Librarian shall, taking into 
        account the results of the study, establish a 
        comprehensive national film preservation program for 
        motion pictures, in conjunction with other film 
        archivists and copyright owners. The objectives of such 
        a program shall include--
                  [(i) coordinating activities to assure that 
                efforts of archivists and copyright owners, and 
                others in the public and private sector, are 
                effective and complementary;
                  [(ii) generating public awareness of and 
                support for those activities; and
                  [(iii) increasing accessibility of films for 
                educational purposes, and improving nationwide 
                activities in the preservation of works in 
                other media such as videotape.
          [(B) The Librarian shall establish guidelines and 
        procedures under which films may be included in the 
        National Film Registry, except that no film shall be 
        eligible for inclusion in the National Film Registry 
        until 10 years after such film's first publication.
          [(C) The Librarian shall establish procedures under 
        which the general public may make recommendations to 
        the Board regarding the inclusion of films in the 
        National Film Registry.
          [(D) The Librarian shall establish procedures for the 
        examination by the Librarian of prints of films named 
        for inclusion in the National Film Registry to 
        determine their eligibility for the use of the seal of 
        the National Film Registry under paragraph (3).
          [(E) The Librarian shall determine which films 
        satisfy the criteria established under subparagraph (B) 
        and qualify for inclusion in the National Film 
        Registry, except that the Librarian shall not select 
        more than 25 films each year for inclusion in the 
        Registry.
  [(2) The Librarian shall publish in the Federal Register the 
name of each film that is selected for inclusion in the 
National Film Registry.
  [(3) The Librarian shall provide a seal to indicate that a 
film has been included in the National Film Registry and is the 
Registry version of that film.
  [(4) The Librarian shall publish in the Federal Register the 
criteria used to determine the Registry version of a film.
  [(5) The Librarian shall submit to the Congress a report, not 
less than once every two years, listing films included in the 
National Film Registry and describing the activities of the 
Board.
  [(c) Seal.--The seal provided under subsection (b)(3) may be 
used on any copy of the Registry version of a film. Such seal 
may be used only after the Librarian has examined and approved 
the print from which the copy was made. In the case of 
copyrighted works, only the copyright owner or an authorized 
licensee of the copyright may place or authorize the placement 
of the seal on a copy of a film selected for inclusion in the 
National Film Registry, and the Librarian may place the seal on 
any print or copy of the film that is maintained in the 
National Film Registry Collection of the Library of Congress. 
The person authorized to place the seal on a copy of a film 
selected for inclusion in the National Film Registry may 
accompany such seal with the following language: ``This film is 
included in the National Film Registry, which is maintained by 
the Library of Congress, and was preserved under the National 
Film Preservation Act of 1992.''.
  [(d) Development of Standards.--The Librarian shall develop 
standards or guidelines by which to assess the preservation or 
restoration of films that will qualify films for use of the 
seal under this section.

[SEC. 204. NATIONAL FILM PRESERVATION BOARD.

  [(a) Number and Appointment.--(1) The Librarian shall 
establish in the Library of Congress a National Film 
Preservation Board to be comprised of up to 18 members, who 
shall be selected by the Librarian in accordance with the 
provisions of this section. Subject to subparagraphs (C) and 
(O), the Librarian shall request each organization listed in 
subparagraphs (A) through (P) to submit to the Librarian a list 
of not less than 3 candidates qualified to serve as a member of 
the Board. Except for the members-at-large appointed under 
paragraph (2), the Librarian shall appoint 1 member from each 
such list submitted by such organizations, and shall designate 
from that list an alternate who may attend those meetings to 
which the individual appointed to the Board cannot attend. The 
organizations are the following:
          [(A) The Academy of Motion Pictures Arts and 
        Sciences.
          [(B) The Directors Guild of America.
          [(C) The Writers Guild of America. The Writers Guild 
        of America East and the Writers Guild of America West 
        shall each nominate not less than 3 candidates, and a 
        representative from 1 such organization shall be 
        selected as the member and a representative from the 
        other such organization as the alternate.
          [(D) The National Society of Film Critics.
          [(E) The Society for Cinema Studies.
          [(F) The American Film Institute.
          [(G) The Department of Theatre, Film and Television 
        of the College of Fine Arts at the University of 
        California, Los Angeles.
          [(H) The Department of Film and Television of the 
        Tisch School of the Arts at New York University.
          [(I) The University Film and Video Association.
          [(J) The Motion Picture Association of America.
          [(K) The National Association of Broadcasters.
          [(L) The Alliance of Motion Picture and Television 
        Producers.
          [(M) The Screen Actors Guild of America.
          [(N) The National Association of Theater Owners.
          [(O) The American Society of Cinematographers and the 
        International Photographers Guild, which shall jointly 
        submit 1 list of candidates from which a member and 
        alternate will be selected.
          [(P) The United States members of the International 
        Federation of Film Archives.
  [(2) In addition to the Members appointed under paragraph 
(1), the Librarian shall appoint up to 2 members-at-large. The 
Librarian shall select the at-large members from names 
submitted by organizations in the film industry, creative 
artists, producers, film critics, film preservation 
organizations, academic institutions with film study programs, 
and others with knowledge of copyright law and of the 
importance, use, and dissemination of films. The Librarian 
shall, in selecting 1 such member-at-large, give preference to 
individuals who are responsible for commercial film libraries. 
The Librarian shall also select from the names submitted under 
this paragraph an alternate for each member-at-large, who may 
attend those meetings to which the member-at-large cannot 
attend.
  [(b) Chairperson.--The Librarian shall appoint 1 member of 
the Board to serve as Chairperson.
  [(c) Term of Office.--(1) The term of each member of the 
Board shall be 3 years, except that there shall be no limit to 
the number of terms that any individual member may serve.
  [(2) A vacancy in the Board shall be filled in the manner in 
which the original appointment was made under subsection (a), 
except that the Librarian may fill the vacancy from a list of 
candidates previously submitted by the organization or 
organizations involved. Any member appointed to fill a vacancy 
before the expiration of the term for which his or her 
predecessor was appointed shall be appointed only for the 
remainder of such term.
  [(d) Quorum.--9 members of the Board shall constitute a 
quorum but a lesser number may hold hearings.
  [(e) Basic Pay.--Members of the Board shall serve without 
pay. While away from their home or regular places of business 
in the performance of functions of the Board, members of the 
Board shall be allowed travel expenses, including per diem in 
lieu of subsistence, in the same manner as persons employed 
intermittently in Government service are allowed expenses under 
section 5701 of title 5, United States Code.
  [(f) Meetings.--The Board shall meet at least once each 
calendar year. Meetings shall be at the call of the Librarian.
  [(g) Conflict of Interest.--The Librarian shall establish 
rules and procedures to address any potential conflict of 
interest between a member of the Board and the responsibilities 
of the Board.

[SEC. 205. RESPONSIBILITIES AND POWERS OF BOARD.

  [(a) In General.--The Board shall review nominations of films 
submitted to it for inclusion in the National Film Registry and 
shall consult with the Librarian, as provided in section 203, 
with respect to the inclusion of such films in the Registry and 
the preservation of these and other films that are culturally, 
historically, or aesthetically significant.
  [(b) Nomination of Films.--The Board shall consider, for 
inclusion in the National Film Registry, nominations submitted 
by the general public as well as representatives of the film 
industry, such as the guilds and societies representing actors, 
directors, screenwriters, cinematographers and other creative 
artists, producers, film critics, film preservation 
organizations, and representatives of academic institutions 
with film study programs. The Board shall nominate not more 
than 25 films each year for inclusion in the Registry.
  [(c) General Powers.--The Board may, for the purpose of 
carrying out its duties, hold such hearings, sit and act at 
such times and places, take such testimony, and receive such 
evidence, as the Librarian and the Board considers appropriate.

[SEC. 206. NATIONAL FILM REGISTRY COLLECTION OF THE LIBRARY OF 
                    CONGRESS.

  [(a) Acquisition of Archival Quality Copies.--The Librarian 
shall endeavor to obtain, by gift from the owner, an archival 
quality copy of the Registry version of each film included in 
the National Film Registry. Whenever possible, the Librarian 
shall endeavor to obtain the best surviving materials, 
including preprint materials.
  [(b) Additional Materials.--The Librarian shall endeavor to 
obtain, for educational and research purposes, additional 
materials related to each film included in the National Film 
Registry, such as background materials, production reports, 
shooting scripts (including continuity scripts) and other 
similar materials.
  [(c) Property of United States.--All copies of films on the 
National Film Registry that are received by the Librarian and 
other materials received by the Librarian under subsection (b) 
shall become the property of the United States Government, 
subject to the provisions of title 17, United States Code.
  [(d) National Film Registry Collection.--All copies of films 
on the National Film Registry that are received by the 
Librarian and other materials received by the Librarian under 
subsection (b) shall be maintained in a special collection in 
the Library of Congress to be known as the ``National Film 
Registry Collection of the Library of Congress''. The Librarian 
shall, by regulation, and in accordance with title 17, United 
States Code, provide for reasonable access to films in such 
collection for scholarly and research purposes.

[SEC. 207. SEAL OF THE NATIONAL FILM REGISTRY.

  [(a) Use of the Seal.--(1) No person shall knowingly 
distribute or exhibit to the public a version of a film which 
bears the seal described in section 203(b)(3) if such film--
          [(A) is not included in the National Film Registry; 
        or
          [(B) is included in the National Film Registry, but 
        such copy was not made from a print that was examined 
        and approved for the use of the seal by the Librarian 
        under section 203(c).
  [(2) No person shall knowingly use the seal described in 
section 203(b)(3) to promote any version of a film other than a 
Registry version.
  [(b) Effective Date of the Seal.--The use of the seal 
described in section 203(b)(3) shall be effective for each film 
after the Librarian publishes in the Federal Register the name 
of that film as selected for inclusion in the National Film 
Registry.

[SEC. 208. REMEDIES.

  [(a) Jurisdiction.--The several district courts of the United 
States shall have jurisdiction, for cause shown, to prevent and 
restrain violations of section 207(a).
  [(b) Relief.--(1) Except as provided in paragraph (2), relief 
for a violation of section 207(a) shall be limited to the 
removal of the seal of the National Film Registry from the film 
involved in the violation.
  [(2) In the case of a pattern or practice of the willful 
violation of section 207(a), the United States district courts 
may order a civil fine of not more than $10,000 and appropriate 
injunctive relief.

[SEC. 209. LIMITATIONS OF REMEDIES.

  [The remedies provided in section 208 shall be the exclusive 
remedies under this title, or any other Federal or State law, 
regarding the use of the seal described in section 203(b)(3).

[SEC. 210. STAFF OF BOARD; EXPERTS AND CONSULTANTS.

  [(a) Staff.--The Librarian may appoint and fix the pay of 
such personnel as the Librarian considers appropriate to carry 
out this title.
  [(b) Experts and Consultants.--The Librarian may, in carrying 
out this title, procure temporary and intermittent services 
under section 3109(b) of title 5, United States Code, but at 
rates for individuals not to exceed the daily equivalent of the 
maximum rate of basic pay payable for GS-15 of the General 
Schedule. In no case may a member of the Board be paid as an 
expert or consultant under such section.

[SEC. 211. DEFINITIONS.

  [As used in this title--
          [(1) the term ``Librarian'' means the Librarian of 
        Congress;
          [(2) the term ``Board'' means the National Film 
        Preservation Board;
          [(3) the term ``film'' means a ``motion picture'' as 
        defined in section 101 of title 17, United States Code, 
        except that such term does not include any work not 
        originally fixed on film stock, such as a work fixed on 
        videotape or laser disks;
          [(4) the term ``publication'' means ``publication'' 
        as defined in section 101 of title 17, United States 
        Code; and
          [(5) the term ``Registry version'' means, with 
        respect to a film, the version of the film first 
        published, or as complete a version as the bona fide 
        preservation and restoration activities by the 
        Librarian, an archivist other than the Librarian, or 
        the copyright owner can compile in those cases where 
        the original material has been irretrievably lost.

[SEC. 212. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to the Librarian 
such sums as are necessary to carry out the provisions of this 
title, but in no fiscal year shall such sum exceed $250,000.

[SEC. 213. EFFECTIVE DATE.

  [The provisions of this title shall be effective for four 
years beginning on the date of the enactment of this Act. The 
provisions of this title shall apply to any copy of any film, 
including those copies of films selected for inclusion in the 
National Film Registry under the National Film Preservation Act 
of 1988, except that any film so selected under such Act shall 
be deemed to have been selected for the National Film Registry 
under this title.

[SEC. 214. REPEAL.

  [The National Film Preservation Act of 1988 (2 U.S.C. 178 and 
following) is repealed.]