(House agreed to Senate amendment with an amendment) Prohibits the establishment of any commemorative work on Federal land in the District of Columbia and its environs, except by an Act of Congress. Redesignates the National Capital Memorial Advisory Committee as the National Capital Memorial Commission to advise the Secretary of the Interior and the Administrator of the General Services Administration on the establishment of such works. Permits only commemorative works of preeminent historical and lasting significance to the Nation in the area designated as Area I. Requires congressional approval before such a work may go forward. Permits military commemorative works honoring a major conflict (war) or military branch in Area II. Permits nonmilitary commemorative works in such area if the individual(s) commemorated have been dead at least 25 years. Permits subjects of lasting historical significance to be commemorated in such area. Sets forth the requirements which must be met by any person authorized by law to establish a commemorative work in the District of Columbia, including consultation with the National Capital Memorial Commission and submission of site and design proposals to the Commission of Fine Arts, the National Capital Planning Commission, and the Secretary or Administrator (as appropriate) for approval. Requires a work to be sited in appropriate and noninterfering surroundings. Sets forth construction permit criteria, including the requisite Federal approvals and sufficient funds. Requires a payment to offset maintenance. Authorizes the Secretary to permit the temporary location of a commemorative work in certain areas of the District of Columbia after giving the Congress sufficient notice of a plan for such site. Requires the person installing the work to indemnify the United States for any liability arising from such work's display. Terminates authority to construct a commemorative work if a construction permit has not been issued within five years. Requires the Secretary or the Administrator, as appropriate, to maintain any commemorative work in the District of Columbia or its environs.