 
                 CHAPTER 72--MUSEUM AND LIBRARY SERVICES
 
             SUBCHAPTER II--LIBRARY SERVICES AND TECHNOLOGY
 
                   Part 1--Basic Program Requirements
 
Sec. 9133. Payments; Federal share; and maintenance of effort 
        requirements
        

(a) Payments

    Subject to appropriations provided pursuant to section 9123 of this 
title, the Director shall pay to each State library administrative 
agency having a State plan approved under section 9134 of this title the 
Federal share of the cost of the activities described in the State plan.

(b) Federal share

                           (1) In general

        The Federal share shall be 66 percent.

                        (2) Non-Federal share

        The non-Federal share of payments shall be provided from non-
    Federal, State, or local sources.

(c) Maintenance of effort

                       (1) State expenditures

        (A) Requirement

            (i) In general

                The amount otherwise payable to a State for a fiscal 
            year pursuant to an allotment under this part shall be 
            reduced if the level of State expenditures, as described in 
            paragraph (2), for the previous fiscal year is less than the 
            average of the total of such expenditures for the 3 fiscal 
            years preceding that previous fiscal year. The amount of the 
            reduction in the allotment for any fiscal year shall be 
            equal to the allotment multiplied by a fraction--
                    (I) the numerator of which is the result obtained by 
                subtracting the level of such State expenditures for the 
                fiscal year for which the determination is made, from 
                the average of the total level of such State 
                expenditures for the 3 fiscal years preceding the fiscal 
                year for which the determination is made; and
                    (II) the denominator of which is the average of the 
                total level of such State expenditures for the 3 fiscal 
                years preceding the fiscal year for which the 
                determination is made.
            (ii) Calculation

                Any decrease in State expenditures resulting from the 
            application of subparagraph (B) shall be excluded from the 
            calculation of the average level of State expenditures for 
            any 3-year period described in clause (i).

        (B) Decrease in Federal support

            If the amount made available under this subchapter for a 
        fiscal year is less than the amount made available under this 
        subchapter for the preceding fiscal year, then the expenditures 
        required by subparagraph (A) for such preceding fiscal year 
        shall be decreased by the same percentage as the percentage 
        decrease in the amount so made available.

                   (2) Level of State expenditures

        The level of State expenditures for the purposes of paragraph 
    (1) shall include all State dollars expended by the State library 
    administrative agency for library programs that are consistent with 
    the purposes of this subchapter. All funds included in the 
    maintenance of effort calculation under this subsection shall be 
    expended during the fiscal year for which the determination is made, 
    and shall not include capital expenditures, special one-time project 
    costs, or similar windfalls.

                             (3) Waiver

        The Director may waive the requirements of paragraph (1) if the 
    Director determines that such a waiver would be equitable due to 
    exceptional or uncontrollable circumstances such as a natural 
    disaster or a precipitous and unforeseen decline in the financial 
    resources of the State.

(Pub. L. 94-462, title II, Sec. 223, as added Pub. L. 104-208, div. A, 
title I, Sec. 101(e) [title VII, Sec. 702], Sept. 30, 1996, 110 Stat. 
3009-233, 3009-299; amended Pub. L. 105-128, Sec. 5, Dec. 1, 1997, 111 
Stat. 2549.)


                               Amendments

    1997--Subsec. (c)(1)(A)(i). Pub. L. 105-128 amended second sentence 
generally. Prior to amendment, second sentence read as follows: ``The 
amount of the reduction in allotment for any fiscal year shall be equal 
to the amount by which the level of such State expenditures for the 
fiscal year for which the determination is made is less than the average 
of the total of such expenditures for the 3 fiscal years preceding the 
fiscal year for which the determination is made.''
