Since museum-l has been receiving messages from the Washington group OMB
Watch on the "Istook amendment," I thought I would give you a little
background on what it means for museums and what AAM is doing about it.

Briefly, the amendment forbids organizations that receive federal grants
from spending more than 5% of their budget on "political activity" which
is quite broadly defined.  This obviously would have a very limited
impact on the museum community; it probably would have a small impact
on AAM as well, although in this extraordinary political year we may be
approaching the 5% limit.

The pernicious provisions are as follows:

First, grant recipients would be forbidden to use federal funds to purchase
*any* good or service, including membership, from an organization that
spends 15% of its budget on political activity.  So if AAM went up to 15%,
you would not be able to use IMS funds (technical assistance grant, GOS,
MAP, etc.) to purchase an AAM book on, say, how to run a historic house
museum.

Second, if an institution uses its own funds to purchase the good or
service from an organization that spends 15% on political activity, then
it would be considered itself to be engaging in political activity.

Third, *every* federal granting agency would be required to ask *all*
recipients whether they engage in political activity.  If the answer is
yes -- as it would be if you buy a book from a 15 percenter -- then the
burden will be on you to show that you do not hit the 5% limit which
would forbid you from receiving the grant.  You would have to fill out
forms, track expenditures, etc., if you answer yes.

So one important question is, how do you know if the book you buy -- let's say,
not from AAM, but from some other organization -- is from a 15 percenter?  Does
every purchaser have to ask the vender whether they are political -- does
every vender have to attest whether they are political?  It's all fairly
scary.

Leaving aside that last question, the direct impact on museums will
probably be small because AAM is very unlikely to get up to 15% on
political activities, even under the expanded definition.  The indirect
impact may be large, however, because we would effectively be discouraged
from contributing institutional funds, or purchasing goods or services,
from any organization that is a 15 percenter; and our ability to
contribute to organizations that are organized around a lobbying cause --
such as the American Arts Alliance, for example -- would be dramatically
curtailed if not eliminated.

In other words, the amendment would appear to be a pretty serious threat
to free speech.

AAM government affairs has sent letters to all members of the House
Appropriations Committee stating our objections, and we have signed on to
a group letter put together by Independent Sector.  We expect to do some
direct lobbying (visits, calls) under the Independent Sector umbrella.

The prospects for passage of some form of the legislation appear bright,
since the Senate recently approved a similar (though not as sweeping)
measure.

Please let me know if you have any questions.

Andy Finch
AAM Government Affairs
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