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The Center has broad authority, including the ability to enter into contracts; to establish a national archive in conjunction with any Federal entity; to acquire and loan objects; to disseminate exhibitions; and to develop programs to preserve American folklife.

The Librarian is vested with conventional administrative powers, and must include in his annual report to Congress on the Library a report on the Center. Appropriations are authorized through fiscal year 1978.

In 1969 legislation establishing such a center in the Smithsonian Institution was introduced.  At its meeting on May 21 of that year the Board of Regents endorsed the principle of a center but, inasmuch as the legislation directed that its direction be entrusted to a Board of Trustees virtually independent of the Regents, suggested that it not be housed within the Smithsonian.  At its meeting on November 5, 1969, the Board of Regents voted to direct the Secretary to report to Congress that it favored amending the legislation to establish an independent entity for folklife outside of the Institution but with the Smithsonian providing a strong advisory and contributory role.