A bill to amend and extend the National Foundation on the Arts and Humanities Act of 1965, to provide for the improvement of museum services, and to provide indemnities for exhibitions of artistic and humanistic endeavors.

Arts, Humanities, and Cultural Affairs Act - Title I: Arts and Humanities - Authorizes, under the National Foundation on the Arts and Humanities Act, the chairman of the National Endowment for the Arts to make grants to the American Film Institute.

Authorizes, under the same Act, the Chairman of the National Endowment for the Humanities to establish a grants-in- aid program for existing and developing humanities programs in States which meet the standards set forth in such Act. Sets forth the requirements for applications by States for such grants.

Sets forth the policy by which funds will be allotted to States under this Act. Establishes the minimum amount which will be allotted at $100,000. Provides for 100 percent funding of State programs in specified cases, and for grants to multi-State groups. Directs the chairman to withhold further grants or require repayment of grants already made when noncompliance by the State agency receiving such grants is discovered.

Authorizes, under the National Foundation on the Arts and Humanities Act, the appropriation of $113,500,000 for fiscal years 1977 and 1978 and such sums as may be necessary for fiscal years 1979 and 1980 for programs of the National Endowment for the Arts.

Authorizes, under such Act, identical appropriations for programs of the National Endowment for the Humanities. Authorizes, under such Act, the appropriation of up to $25,000,000 per year, each to the National Endowment for the Arts, and the National Endowment for the Humanities for each year through fiscal year 1980, for the purpose of matching donations made to each endowment.

Title II: Museum Service and Exhibitions - Museum Services Act - Establishes an Institute for the Improvement of Museum Services within the Department of Health, Education, and Welfare. Provides that such Institute shall consist of the Director of the Institute and a National Museum Services Board. States that the Board shall consist of fifteen members appointed by the President by and with the consent of the Senate and eight ex officio members as set forth in this Act. Sets forth the terms of office of the members of the Board.

Provides that the Board shall have the responsibility for the general policies with respect to the powers, duties, and authorities vested in the Institute under this Act. States that the Director shall make available to the Board such information and assistance as may be necessary to enable the Board to carry out its functions.

Provides that the Director shall be appointed by the President, by and with the advice and consent of the Senate and shall serve at the pleasure of the President and perform such duties and exercise such powers as the Board may prescribe. States that there shall be a Deputy Director who shall be appointed by the President and serve at his pleasure. States that the Deputy Director shall serve as Director during the absence or disability of the Director, or in the event of a vacancy in the office of Director.

Sets forth a list of activities for which the Director, subject to the approval of the Board, is authorized to make grants to museums to increase and improve museum services. Provides that grants under this Act may not exceed 75 percent of the cost of the program for which the grant is made. Gives the Institute the authority to accept in the name of the United States grants, gifts, or bequests of money for immediate disbursement in furtherance of the functions of the Institute.

Authorizes to be appropriated $25,000,000 for fiscal year 1975, and $30,000,000 for each of the succeeding fiscal years ending prior to October 1978. Authorizes to be appropriated an amount equal to the amount contributed to the Institute under this Act during such time period.

Arts and Artifacts Indemnity Act - Authorizes the Federal Council on the Arts and Humanities to indemnify works of art, printed matter, other artifacts and objects and motion pictures or recordings which have educational, cultural, historical or scientific value, and whose exhibition is certified by the Secretary of State as being in the national interest.

Sets forth the procedures to be followed in applying to the Council for the indemnification of works as provided by this Act. Pledges the full faith and credit of the United States to pay any amount for which the Council becomes liable under any indemnification agreement.

Limits the coverage under this Act to loss or damage in excess of the first $25,000 out of a single incident.

Directs the Council to issue regulations providing for prompt adjustment of all claims arising under valid agreements of indeminification, including the arbitration of the dollar value of damage not amounting to total loss. Directs the Council to certify the validity of all claims to the Speaker of the House of Representatives and the President of the Senate.

Authorizes to be appropriated such sums as may be necessary: (1) to enable the Council to carry out its functions under this Act; and (2) to pay certified claims.

Directs the Council to report annually to Congress: (1) all claims paid during the preceding fiscal year; (2) claims pending as of the close of such period; and (3) the total face value of outstanding contracts at the close of such year.