[Federal Register: April 18, 2008 (Volume 73, Number 76)]
[Rules and Regulations]
[Page 21054-21057]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ap08-10]
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NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES
45 CFR Part 1160
RIN 3134-AA01
Technical Amendments To Reflect the New Authorization for a
Domestic Indemnity Program
AGENCY: Federal Council on the Arts and the Humanities.
ACTION: Final rule.
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SUMMARY: The Federal Council on the Arts and the Humanities is adopting
as a final rule, without change, the amendments which were published in
the Federal Register as a proposed rule on March 4, 2008. The
amendments reflect Congress's authorization of a Domestic Indemnity
Program under section 426 of The Consolidated Appropriations Act of
2008, Public Law 110-161 (December 26, 2007), and provide examples to
guide applicants considering applying for indemnification of
exhibitions with domestic or foreign-owned objects.
DATES: This rule is effective April 18, 2008.
FOR FURTHER INFORMATION CONTACT: Heather C. Gottry, Counsel to the
Federal Council on Arts and the Humanities, 1100 Pennsylvania Avenue,
NW., Room 529, Washington, DC 20506. (Phone: (202) 606-8322, facsimile
(202) 606-8600, or e-mail to gencounsel@neh.gov.) Hearing-impaired
individuals are advised that information on this matter may be obtained
by contacting the TDD terminal on (202) 606-8282.
[[Page 21055]]
SUPPLEMENTARY INFORMATION:
I. Background on Domestic Indemnity Program Technical Amendments
In 1975, the United States Congress enacted the Arts and Artifacts
Indemnity Act, 20 U.S.C. 971-977, as amended, which established the
Arts and Artifacts Indemnity Program administered by the Federal
Council on the Arts and the Humanities (Federal Council). Under the
Arts and Artifacts Indemnity Program, the United States Government
guarantees to pay claims for loss or damage, subject to certain
limitations, arising from exhibitions of foreign and domestic-owned
objects determined by the Federal Council to be of educational,
cultural, historical or scientific value. The Arts and Artifacts
Indemnity Program is administered by the Museum Program at the National
Endowment for the Arts, on behalf of the Federal Council, per
``Indemnities Under the Arts and Artifacts Act'' regulations
(hereinafter ``the Regulations''), which are set forth at 45 CFR part
1160.
Since 1975, the Regulations have been promulgated and amended by
the Federal Council pursuant to the express and implied rulemaking
authorities granted by Congress to make and amend rules needed for the
effective administration of the Indemnity Program. On December 26,
2007, through section 426 of The Consolidated Appropriations Act of
2008, Public Law 110-161, the Arts and Artifacts Indemnity Act was
amended in part to expand coverage of the Arts and Artifacts Indemnity
program to up to $5,000,000,000 at any one time for domestic
exhibitions. (20 U.S.C. 974(b).) On March 4, 2008, a proposed rule was
published by the Federal Council in the Federal Register (73 FR 11577)
and public comment was solicited on technical amendments to the
Regulations to reflect the authorization of a Domestic Indemnity
Program.
II. Public Comments on the Proposed Rule
The Federal Council's March 4, 2008 proposed rule in the Federal
Register at 73 FR 11577 provided a 30-day public comment period which
ended on April 3, 2008. No comments were submitted in response to the
proposed rulemaking.
III. Matters of Regulatory Procedure
Regulatory Planning and Review (E.O. 12866)
Under Executive Order 12866, the Federal Council on the Arts and
the Humanities must determine whether the regulatory action is
``significant'' and therefore subject to OMB review and the
requirements of the Executive Order. The Order defines a ``significant
regulatory action'' as one that is likely to result in a rule that may:
(1) Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities; (2) create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency; (3) materially alter
the budgetary impact of entitlements, grants, user fees, or loan
programs or the rights and obligations of recipients thereof; or (4)
raise novel legal or policy issues arising out of legal mandates, the
President's priorities, or the principles set forth in the Executive
Order.
The final rule makes technical amendments to reflect Congress'
authorization of a Domestic Indemnity Program under section 426 of The
Consolidated Appropriations Act of 2008, Public Law 110-161 (December
26, 2007)). As such, it does not impose a compliance burden on the
economy generally or on any person or entity. Accordingly, this final
rule is not a ``significant regulatory action'' from an economic
standpoint, and it does not otherwise create any inconsistencies or
budgetary impacts to any other agency or Federal Program.
Regulatory Flexibility Act
Because this final rule makes certain technical amendments, the
Federal Council has determined in Regulatory Flexibility Act (5 U.S.C.
601 et seq.) review that this final rule will not have a significant
economic impact on a substantial number of small entities.
Paperwork Reduction Act
This final rule is exempt from the requirements of the Paperwork
Reduction Act, since it makes only technical amendments to reflect
Congress' authorization of a Domestic Indemnity Program under Section
426 of The Consolidated Appropriations Act of 2008, Public Law 110-161
(December 26, 2007). An OMB form 83-1 is not required.
Unfunded Mandates Reform Act
For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
chapter 25, subchapter II), this final rule will not significantly or
uniquely affect State, local, and tribal governments and will not
result in increased expenditures by State, local, and tribal
governments, or by the private sector, of $100 million or more as
adjusted for inflation in any one year.
Small Business Regulatory Enforcement Fairness Act (SBREFA)
This final rule is not a major rule under 5 U.S.C. 804(2), the
Small Business Regulatory Enforcement Fairness Act. This final rule:
a. Does not have an annual effect on the economy of $100 million or
more.
b. Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions.
c. Does not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises.
Takings (E.O. 12630)
In accordance with Executive Order 12630, the final rule does not
have significant takings implications. No rights, property or
compensation has been, or will be, taken. A takings implication
assessment is not required.
Federalism (E.O. 13132)
In accordance with Executive Order 13132, this final rule does not
have federalism implications that warrant the preparation of a
federalism assessment.
Civil Justice Reform (E.O. 12988)
In accordance with Executive Order 12988, the Federal Council has
determined that this final rule does not unduly burden the judicial
system and meets the requirements of sections 3(a) and 3(b)(2) of the
Order.
Consultation With Indian Tribes (E.O. 13175)
In accordance with Executive Order 13175, the Federal Council has
evaluated this final rule and determined that it has no potential
negative effects on federally recognized Indian tribes.
National Environmental Policy Act
This final rule does not constitute a major Federal action
significantly affecting the quality of the human environment.
List of Subjects in 45 CFR Part 1160
Administrative practice and procedure, Art, Indemnity payments,
Museums, Nonprofit organizations.
Dated: April 11, 2008.
Heather C. Gottry,
Counsel to the Federal Council on the Arts and the Humanities.
0
For the reasons stated in the preamble and under the authority of
section 426 of The Consolidated Appropriations Act
[[Page 21056]]
of 2008, Public Law 110-161 (December 26, 2007), the Federal Council on
the Arts and the Humanities amends 45 CFR Part 1160 as follows:
PART 1160--INDEMNITIES UNDER THE ARTS AND ARTIFACTS INDEMNITY ACT
0
1. The authority citation for 45 CFR Part 1160 continues to read as
follows:
Authority: 20 U.S.C. 971-977.
0
2. Revise Sec. 1160.4 to read as follows:
Sec. 1160.4 Eligibility for international exhibitions.
An indemnity agreement for an international exhibition made under
these regulations shall cover:
(a) Eligible items from outside the United States while on
exhibition in the United States;
(b) Eligible items from the United States while on exhibition
outside this country, preferably when they are part of an exchange of
exhibitions; and
(c) Eligible items from the United States while on exhibition in
the United States, in connection with other eligible items from outside
the United States which are integral to the exhibition as a whole.
(d)(1) Example. An American art museum is organizing a
retrospective exhibition which will include more than 150 works of art
by Impressionist painter Auguste Renoir. Museums in Paris and London
have agreed to lend 125 works of art, covering every aspect of his
career, many of which have not been seen together since the artist's
death in 1919. The organizer is planning to include 25 masterpieces by
Renoir from American public and private collections. The show will open
in Chicago and travel to San Francisco and Washington.
(2) Discussion. This example is a common application for coverage
of both foreign- and domestic-owned objects in an international
exhibition. The foreign-owned objects are eligible for indemnity
coverage under paragraph (a) of this section, and the domestic-owned
objects may be eligible for indemnity coverage under paragraph (c) of
this section if the foreign-owned objects are integral to the purposes
of the exhibition as a whole. In reviewing this application, the
Federal Council would evaluate the exhibition as a whole and determine
whether the loans of 125 foreign-owned objects are integral to the
educational, cultural, historical, or scientific significance of the
exhibition on Renoir. It would also be necessary for the U.S.
Department of State to determine whether or not the exhibition was in
the national interest.
Sec. Sec. 1160.5 through 1160.12 [Redesignated as Sec. Sec. 1160.6
through 1160.13]
0
3. Sections 1160.5 through 1160.12 are redesignated as Sec. Sec.
1160.6 through 1160.13.
0
4. A new Sec. 1160.5 is added to read as follows:
Sec. 1160.5 Eligibility for domestic exhibitions.
An indemnity agreement for a domestic exhibition made under these
regulations shall cover eligible items from the United States while on
Exhibition in the United States.
(a)(1) Example 1. An American museum is undergoing renovation and
will be closed to the public for one year. During that time,
masterpieces from the collection will go on tour to three other museums
in the United States. Many of these works have never been lent for
travel, and this will be a unique and the last opportunity for museum
visitors in other parts of the country to see them exhibited together.
Once the new building opens, they will be permanently installed and
dispersed throughout the museum's galleries.
(2) Discussion. (i) This is a straightforward example of a domestic
exhibition which would be eligible for consideration for indemnity
coverage. Under the previous regulations, eligibility was limited to:
(A) Exhibitions in the United States of entirely foreign-owned
objects;
(B) Exhibitions outside of the United States of domestic-owned
objects; or
(C) Exhibitions in the United States of both foreign- and domestic-
owned objects, with the foreign-owned objects having integral
importance to the exhibition.
(ii) In this example, the Federal Council will consider the
educational, cultural, historical, or scientific significance of the
proposed domestic exhibition of the domestic-owned objects. It would
not be necessary for the U.S. Department of State to determine whether
or not the exhibition was in the national interest.
(b)(1) Example 2. An American museum is organizing an exhibition of
works by 20th century American artists, which will travel to one other
U.S. museum. There are more than 100 objects in the exhibition. The
majority of the paintings, drawings and sculpture, valued at more than
$500,000,000, are from galleries, museums and private collections in
the United States. The organizing curator has selected ten works of
art, mostly drawings and preparatory sketches relating to paintings in
the exhibition, valued at less than $5,000,000, which will be borrowed
from foreign lenders.
(2) Discussion. (i) This example raises the question of whether
this applicant should submit an application for indemnity coverage for
a domestic exhibition or an international exhibition. If the applicant
submitted an application for an international exhibition requesting
coverage for only the foreign-owned objects eligible under Section
1160.4(a), the Federal Council would evaluate whether the ten foreign-
owned objects further the exhibition's educational, cultural,
historical, or scientific purposes. It would also be necessary for the
U.S. Department of State to determine whether or not the exhibition was
in the national interest. In this case, the applicant would have to
insure the loans of the domestic-owned objects by other means.
(ii) In the case of an application for an international exhibition
requesting coverage for both domestic-owned and foreign-owned objects
eligible under section 1160.4(a) and (c), the Federal Council would
evaluate the exhibition as a whole to determine if the ten foreign-
owned objects are integral to achieving the exhibition's educational,
cultural, historical, or scientific purposes. It would also be
necessary for the U.S. Department of State to determine whether or not
the exhibition was in the national interest.
(iii) If the applicant submitted an application for a domestic
exhibition, however, only the loans of domestic-owned objects, the
highest valued part of the exhibition, would be eligible for coverage.
The Federal Council would consider if the U.S. loans were of
educational, cultural or historic interest. It would not be necessary
for the U.S. Department of State to determine whether or not the
exhibition was in the national interest. In this case, the applicant
would have to insure the loans of the foreign-owned objects by other
means.
Sec. 1160.6 [Amended]
0
5. Amend paragraph (j)(2) of newly redesignated Sec. 1160.6 by
removing ``Director of the United States Information Agency that the
exhibition'' and adding in its place ``Secretary of State or his
designee that the international exhibition with eligible items under
Sec. 1160.4''.
Sec. 1160.7 [Amended]
0
6. Amend newly redesignated Sec. 1160.7 by removing ``the application
will be submitted to the Director of the United States Information
Agency'' and adding in its place ``applications for international
exhibitions with eligible
[[Page 21057]]
items under Sec. 1160.4 will be submitted to the Secretary of State or
his designee.''
[FR Doc. E8-8224 Filed 4-17-08; 8:45 am]
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