§ 1907. — Helen Keller National Center Federal Endowment Fund.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 29USC1907]
TITLE 29--LABOR
CHAPTER 21--HELEN KELLER NATIONAL CENTER FOR YOUTHS AND ADULTS WHO ARE
DEAF-BLIND
Sec. 1907. Helen Keller National Center Federal Endowment Fund
(a) Establishment
The Secretary and the Board of Directors of the Helen Keller
National Center are authorized to establish the Helen Keller National
Center Federal Endowment Fund (hereafter in this section referred to as
the ``Endowment Fund'') in accordance with the provisions of this
section, to promote the financial independence of the Helen Keller
National Center. The Secretary and the Board may enter into such
agreements as may be necessary to carry out the purposes of this
section.
(b) Federal payments
(1) In general
The Secretary shall make payments to the Endowment Fund from
amounts appropriated pursuant to subsection (h) of this section,
consistent with the provisions of this section.
(2) Amount of payment
Subject to the availability of appropriations, the Secretary
shall make payments to the Endowment Fund in amounts equal to sums
contributed to the Endowment Fund from non-Federal sources
(excluding transfers from other endowment funds of the Center).
(c) Investments
(1) In general
The Center, in investing the Endowment Fund corpus and income,
shall exercise the judgment and care, under the prevailing
circumstances, which a person of prudence, discretion, and
intelligence would exercise in the management of that person's own
business affairs.
(2) Limitations
(A) Federally insured investments and other investments
The Endowment Fund corpus and income shall be invested in
federally insured bank savings accounts or comparable interest
bearing accounts, certificates of deposit, money market funds,
mutual funds, obligations of the United States, or other low-
risk instruments and securities in which a regulated insurance
company may invest under the laws of the State of New York.
(B) Real estate
The Endowment Fund corpus and income may not be invested in
real estate.
(C) Conflict of interest
The Endowment Fund corpus or income may not be invested in
instruments or securities issued by an organization in which an
executive officer is a controlling shareholder, director, or
owner within the meaning of Federal securities laws and other
applicable laws.
(D) Encumbrances
The Center may not assign, hypothecate, encumber, or create
a lien on the Endowment Fund corpus without specific written
authorization of the Secretary.
(d) Withdrawals and expenditures
(1) In general
For a 20-year period following the receipt of a payment under
this section, the Center shall not withdraw or expend the Federal
payment or matching contribution made to the Endowment Fund corpus.
On the expiration of such period, the Center may use the Endowment
Fund corpus plus any of the Endowment Fund income for any purpose
that benefits individuals who are deaf-blind.
(2) Operational and commercial expenses
(A) In general
The Helen Keller National Center may withdraw or expend the
Endowment Fund income for any expenses necessary for the
operation of the Center, including expenses of operations and
maintenance, administration, academic and support personnel,
construction and renovation, community and client services
programs, technical assistance, and research.
(B) Limitation
The Center may not withdraw or expend the Endowment Fund
income for any commercial purpose.
(3) Limitations and waiver of limitations
(A) In general
Except as provided in subparagraph (B), the Center shall not
withdraw or expend more than 50 percent of the total aggregate
Endowment Fund income earned prior to the time of withdrawal or
expenditure.
(B) Exception
The Secretary may permit the Center to withdraw or expend
more than 50 percent of its total aggregate endowment income
where the Center demonstrates to the Secretary's satisfaction
that such withdrawal or expenditure is necessary because of--
(i) a financial emergency, such as a pending insolvency
or temporary liquidity problem;
(ii) a life-threatening situation occasioned by a
natural disaster or arson; or
(iii) another unusual occurrence or exigent
circumstance.
(e) Reporting requirements
(1) Financial records
The Helen Keller National Center shall keep accurate financial
records relating to the operation of the Endowment Fund.
(2) Audit and report
(A) Audit
The Center shall arrange for the conduct of an annual
financial and compliance audit of the Endowment Fund in the
manner prescribed by the Secretary pursuant to section 1903(a)
of this title.
(B) Report
The Center shall submit a copy of the report on the audit
required under subparagraph (A) to the Secretary within 15 days
after completion of the audit and acceptance of the audit by the
Center.
(3) Annual report
Not later than 60 days after the end of each fiscal year, the
Center shall provide to the Secretary an annual report on the uses
of funds provided by the Federal endowment program authorized under
this section. Such report shall contain such information, and be in
such form as the Secretary may require.
(f) Recovery of payments
After notice and an opportunity for a hearing, the Secretary is
authorized to recover any Federal payments made under this section if
the Helen Keller National Center--
(1) makes a withdrawal or expenditure from the Endowment Fund
corpus or income which is not consistent with the provisions of this
section;
(2) fails to comply with the investment standards and
limitations under this section; or
(3) fails to account properly to the Secretary concerning the
investment of or expenditures from the Endowment Fund corpus or
income.
(g) Definitions
For the purposes of this section:
(1) Endowment fund
The term ``endowment fund'' means a fund, or a tax-exempt
foundation, established and maintained by the Helen Keller National
Center for the purpose of generating income for the support of the
Center.
(2) Endowment Fund corpus
The term ``Endowment Fund corpus'' means an amount equal to the
Federal payments made to the Endowment Fund and amounts contributed
to the Endowment Fund from non-Federal sources.
(3) Endowment Fund income
The term ``Endowment Fund income'' means an amount equal to the
total market value of the Endowment Fund minus the Endowment Fund
corpus.
(h) Authorization of appropriations
There are authorized to be appropriated to carry out this section,
such sums as may be necessary for each of the fiscal years 1999 through
2003. Such sums shall remain available until expended.
(Pub. L. 98-221, title II, Sec. 208, as added Pub. L. 102-569, title IX,
Sec. 907, Oct. 29, 1992, 106 Stat. 4483; amended Pub. L. 105-220, title
IV, Sec. 412(b), Aug. 7, 1998, 112 Stat. 1241.)
Amendments
1998--Subsec. (h). Pub. L. 105-220 substituted ``1999 through 2003''
for ``1993 through 1997''.
