National Institute for Literacy

Public Law 102-73, the National Literacy Act of 1991

                               Public Law 102-73

                         102nd Congress -- 1st Session

                                   [H.R. 751]

                           102 P.L. 73; 105 Stat. 333
                  1991 Enacted H.R. 751; 102 Enacted H.R. 751

DATE: JUL. 25, 1991 -- PUBLIC LAW 102-73

SYNOPSIS:                                  An Act



   To enhance the literacy and basic skills of adults, to ensure that all adults
in the United States acquire the basic skills necessary to function effectively
and achieve the greatest possible opportunity in their work and in their lives,
and to strengthen and coordinate adult literacy programs.

Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled, 
 
SECTION 1. SHORT TITLE.  
 
This Act may be cited as the "National Literacy Act of 1991".  
 
SEC. 2. FINDINGS.  
 
The Congress finds that -- 
   (1) nearly 30,000,000 adults in the United States have serious problems with
literacy; 
   (2) literacy problems are intergenerational and closely associated with
poverty and pose a major threat to the economic well-being of the United States;
   (3) present public and private literacy programs reach only a small portion
of the population in need and often result in only minimal learning gains; 
   (4) the prevention of illiteracy is essential to stem further growth in
national illiteracy rates; 
   (5) literacy programs generally lack adequate funding, adequate coordination
with other literacy programs, and an adequate investment in teacher training and
technology; 
   (6) access to better information about the best practices in the literacy
field and more research in order to provide better diagnostic and instructional
tools are essential for the improvement of literacy and employability in the
United States; 
   (7) as many as 50,000,000 workers may have to be trained or retrained
before the year 2000; 
   (8) the supply of unskilled workers is increasing while the demand for
unskilled labor is decreasing; 
   (9) programs under the Adult Education Act, which are the largest Federal
source of direct literacy services in the United States, serve only 10 percent
of eligible participants; and 
   (10) all public and private literacy programs serve only about 19 percent of
those who need help.  
 
SEC. 3. DEFINITION.  
 
For purposes of this Act the term "literacy" means an individual's ability to
read, write, and speak in English, and compute and solve problems at levels of
proficiency necessary to function on the job and in society, to achieve one's
goals, and develop one's knowledge and potential.  
 
   TITLE I -- LITERACY: STRATEGIC PLANNING, RESEARCH, AND COORDINATION 
 
SEC. 101. LITERACY RELATED PROGRAMS IN THE DEPARTMENT OF EDUCATION.  
 
Section 202 of the Department of Education Organization Act (20 U.S.C. 3412) is
amended by adding at the end the following: 
 
"(h) The Assistant Secretary for Vocational and Adult Education, in addition to
performing such functions as the Secretary may prescribe, shall have
responsibility for coordination of all literacy related programs and policy
initiatives in the Department. The Assistant Secretary for Vocational and Adult
Education shall assist in coordinating the related activities and programs of
other Federal departments and agencies.".  
 
SEC. 102. NATIONAL INSTITUTE FOR LITERACY.  
 
(a) Purpose. It is the purpose of the amendment made by this section to enhance
the national effort to eliminate the problem of illiteracy by the year 2000 by
improving research, development and information dissemination through a national
research center.  
 
(b) Findings. The Congress finds that -- 
   (1) much too little is known about how to improve access to, and enhance the
effectiveness of, adult literacy programs, assessment tools, and evaluation
efforts; 
   (2) there is neither a reliable nor a central source of information about the
knowledge base in the area of literacy; 
   (3) a national institute for literacy would -- 
   (A) provide a national focal point for research, technical assistance and
research dissemination, policy analysis, and program evaluation in the area of
literacy; and 
   (B) facilitate a pooling of ideas and expertise across fragmented programs
and research efforts.  
 
(c) Amendment to the Adult Education Act. Section 384 of the Adult Education Act
(20 U.S.C. 1213c) is amended --
   (1) in the second sentence of subsection (a), by inserting after "shall
include" the following: "the operation of the Institute established by
subsection (c) and"; and 
   (2) by adding at the end the following: 
 
"(c) Establishment. (1) There is established the National Institute for Literacy
(in this section referred to as the 'Institute').  The Institute shall be
administered under the terms of an interagency agreement entered into by the
Secretary with the Secretary of Labor and the Secretary of Health and Human
Services (in this section referred to as the 'Interagency Group'). The head of
any other agency designated by the President may be involved in the operation of
the Institute as fits the involvement of such agency in accomplishing the
purposes of the Institute. The Secretary may include in the Institute any
research and development center supported under section 405(d)(4)(A)(ii) of the
General Education Provisions Act and any other center, institute, or
clearinghouse established within the Department of Education whose purpose is
determined by the Secretary to be related to the purpose of the Institute.  
   "(2) The Institute shall have offices separate from the offices of any agency
or department involved in the operation of the Institute.  
   "(3) The Interagency Group shall consider the Board's recommendations in
planning the goals of the Institute and in the implementation of any programs to
achieve such goals. The daily operations of the Institute shall be carried out
by the Director. If the Board's recommendations are not followed, the
Interagency Group shall provide a written explanation to the Board concerning
actions the Interagency Group has taken that includes the Interagency Group's
reasons for not following the Board's recommendations with respect to such
actions. The Board may also request a meeting with the Interagency Group to
discuss the Board's recommendations.  
 
"(d) Duties. (1) The Institute is authorized, in order to improve and expand the
system for delivery of literacy services, to -- 
   "(A) assist appropriate Federal agencies in setting specific objectives and
strategies for meeting the goals of this title and in measuring the progress of
such agencies in meeting such goals; 
   "(B) conduct basic and applied research and demonstrations on literacy,
including -- 
   "(i) how adults learn to read and write and acquire other skills; 
   "(ii) how the literacy skills of parents affect the ability of children to
learn literacy skills; 
   "(iii) the assessment of literacy skills and the development of instructional
techniques; 
   "(iv) the best methods for assisting adults and families to acquire literacy
skills, including the use of technology; 
   "(v) the special literacy needs of individuals with learning disabilities and
individuals with limited English proficiency; 
   "(vi) how to effectively reach and teach the most educationally disadvantaged
individuals; 
   "(vii) the use of technology and other studies which will increase the
literacy knowledge base, use but not duplicate the work of other research
services, and build on the efforts of such other research services; and 
   "(viii) how to attract, train, and retrain professional and volunteer
teachers of literacy; 
   "(C) assist Federal, State, and local agencies in the development,
implementation, and evaluation of policy with respect to literacy by -- 
   "(i) establishing a national data base with respect to --
   "(I) literacy and basic skills programs, including programs in Federal
departments, State agencies, and local agencies, and programs that are privately
supported through nonprofit entities and for profit entities; 
   "(II) assessment tools and outcome measures; 
   "(III) the amount and quality of basic education provided in the workplace by
businesses and industries; and 
   "(IV) progress made toward the national literacy goals; and 
   "(ii) providing technical and policy assistance to government entities for
the improvement of policy and programs relating to literacy and the development
of model systems for implementing and coordinating Federal literacy programs
that can be replicated at the State and local level; 
   "(D) provide program assistance, training, and technical assistance for
literacy programs throughout the United States in order to improve the
effectiveness of such programs and to increase the number of such programs,
which assistance and training shall -- 
   "(i) be based on the best available research and knowledge; and 
   "(ii) be coordinated with activities conducted by -- 
   "(I) regional educational laboratories supported under section
405(d)(4)(A)(i) of the General Education Provisions Act; 
   "(II) curriculum centers assisted under section 251(a)(8) of the Carl D.
Perkins Vocational and Applied Technology Education Act; and 
   "(III) other educational and training entities that provide relevant
technical assistance; 
   "(E) collect and disseminate information to Federal, State, and local
entities with respect to literacy methods that show great promise (including
effective methods of assessment, effective literacy programs, and other
information obtained through research or practice relating to adult and family
learning that would increase the capacity and quality of literacy programs in
the United States), using a variety of methods to ensure that the best
information is received by State and local providers of literacy services; 
   "(F) review and make recommendations regarding -- 
   "(i) ways to achieve uniformity among reporting requirements; 
   "(ii) the development of performance measures; and 
   "(iii) the development of standards for program effectiveness of
literacy-related Federal programs; and 
   "(G) provide a toll-free long-distance telephone line for literacy providers
and volunteers.  
   "(2) The Institute may enter into contracts or cooperative agreements with,
or make grants to, individuals, public or private nonprofit institutions,
agencies, organizations, or consortia of such institutions, agencies, or
organizations to carry out the activities of the Institute. Such grants,
contracts, or agreements shall be subject to the laws and regulations that
generally apply to grants, contracts, or agreements entered into by Federal
agencies.  
 
"(e) Literacy Leadership. (1) The Institute is, in consultation with the Board,
authorized to award fellowships, with such stipends and allowances that the
Director considers necessary, to outstanding individuals pursuing careers in
adult education or literacy in the areas of instruction, management, research,
or innovation.  
   "(2) Fellowships awarded under this subsection shall be used, under the
auspices of the Institute, to engage in research, education, training, technical
assistance, or other activities to advance the field of adult education or
literacy, including the training of volunteer literacy providers at the
national, State, or local level.

   "(3) Individuals receiving fellowships pursuant to this subsection shall be
known as 'Literacy Leader Fellows'.  
 
"(f) National Institute Board. (1)(A) There is established the National
Institute Board (in this section referred to as the 'Board').  The Board shall
consist of 10 individuals appointed by the President with the advice and consent
of the Senate from individuals who -- 
   "(i) are not otherwise officers or employees of the Federal Government; 
   "(ii) are representative of entities or groups described in subparagraph (B);
and 
   "(iii) are chosen from recommendations made to the President by individuals
who represent such entities or groups.  
   "(B) Entities or groups described in this subparagraph are -- 
   "(i) literacy organizations and providers of literacy services, including -- 
   "(I) providers of literacy services receiving assistance under this Act; and 
   "(II) nonprofit providers of literacy services; 
   "(ii) businesses that have demonstrated interest in literacy programs; 
   "(iii) literacy students; 
   "(iv) experts in the area of literacy research; 
   "(v) State and local governments; and 
   "(vi) organized labor.  
   "(2) The Board shall -- 
   "(A) make recommendations concerning the appointment of the Director and
staff of the Institute; 
   "(B) provide independent advice on the operation of the Institute; and 
   "(C) receive reports from the Interagency Group and the Director.  
   "(3) The Interagency Group may carry out the duties of the Board until the
expiration of the 180-day period beginning on the date of the enactment of the
National Literacy Act of 1991.  
   "(4) Except as otherwise provided, the Board established by this subsection
shall be subject to the provisions of the Federal Advisory Committee Act.  
   "(5)(A) Each member of the Board shall be appointed for a term of 3 years.
Any such member may be appointed for not more than 2 consecutive terms.  
   "(B) Any member appointed to fill a vacancy occurring before the expiration
of the term for which the member's predecessor was appointed shall be appointed
only for the remainder of that term. A member may serve after the expiration of
that members' term until a successor has taken office. A vacancy in the Board
shall be filled in the manner in which the original appointment was made. A
vacancy in the Board shall not affect the powers of the Board.  
   "(6) A majority of the members of the Board shall constitute a quorum but a
lesser number may hold hearings. Any recommendation may be passed only by a
majority of its members present.  
   "(7) The Chairperson and Vice Chairperson of the Board shall be elected by
the members. The term of office of the Chairperson and Vice Chairperson shall be
2 years.  
   "(8) The Board shall meet at the call of the Chairperson or a majority of its
members.  
 
"(g) Gifts, Bequests, and Devises. The Institute and the Board may accept (but
not solicit), use, and dispose of gifts, bequests, or devises of services or
property, both real and personal, for the purpose of aiding or facilitating the
work of the Institute or the Board, respectively. Gifts, bequests, or devises of
money and proceeds from sales of other property received as gifts, bequests, or
devises shall be deposited in the Treasury and shall be available for
disbursement upon order of the Institute or the Board, respectively.
 
"(h) Mails. The Board and the Institute may use the United States mails in the
same manner and under the same conditions as other departments and agencies of
the United States.  
 
"(i) Staff. The Interagency Group, after considering recommendations made by the
Board, shall appoint and fix the pay of a Director.  
 
"(j) Applicability of Certain Civil Service Laws. The Director and staff of the
Institute may be appointed without regard to the provisions of title 5, United
States Code, governing appointments in the competitive service, and may be paid
without regard to the provisions of chapter 51 and subchapter III of chapter 53
of that title relating to classification and General Schedule pay rates, except
that an individual so appointed may not receive pay in excess of the annual rate
of basic pay payable for GS-18 of the General Schedule.  
 
"(k) Experts and Consultants. The Board and the Institute may procure temporary
and intermittent services under section 3109(b) of title 5, United States Code. 
 
"(l) Report. The Institute shall submit a report to the Congress in each of the
first 2 years in which it receives assistance under this section, and shall
submit a report biennially thereafter. Each report submitted under this
subsection shall include -- 
   "(1) a comprehensive and detailed description of the Institute's operations,
activities, financial condition, and accomplishments in the field of literacy
for such fiscal year; 
   "(2) a description of how plans for the operation of the Institute for the
succeeding fiscal year will facilitate achievement of the goals of the Institute
and the goals of the literacy programs within the Department of Education, the
Department of Labor, and the Department of Health and Human Services; and 
   "(3) any additional minority, or dissenting views submitted by members of the
Board.  
 
"(m) Nonduplication. The Institute shall not duplicate any functions carried out
by the Secretary pursuant to subsection (a) or (b). This subsection shall not be
construed to prohibit the Secretary from delegating such functions to the
Institute.  
 
"(n) Authorization of Appropriations. (1) There are authorized to be
appropriated for purposes of operating the Institute established by subsection
(c) $ 15,000,000 for each of the fiscal years 1992, 1993, 1994, and 1995.  
   "(2) Any amounts appropriated to the Secretary, the Secretary of Labor, the
Secretary of Health and Human Services, or any other department that
participates in the Institute for purposes that the Institute is authorized to
perform under this section may be provided to the Institute for such purposes.".
 
SEC. 103. STATE LITERACY RESOURCE CENTERS.  
 
Part B of the Adult Education Act (20 U.S.C. 1203 et seq.) is amended -- 
   (1) by redesignating subpart 7 as subpart 8; and 
   (2) by inserting after subpart 6 the following: 
 
              "SUBPART 7 -- STATE LITERACY RESOURCE CENTERS

    "SEC. 356. STATE LITERACY RESOURCE CENTERS.  
 
"(a) Purpose. It is the purpose of this section to assist State and local public
and private nonprofit efforts to eliminate illiteracy through a program of State
literacy resource center grants to -- 
   "(1) stimulate the coordination of literacy services, 
   "(2) enhance the capacity of State and local organizations to provide
literacy services, and 
   "(3) serve as a reciprocal link between the National Institute for Literacy
and service providers for the purpose of sharing information, data, research,
and expertise and literacy resources.  
 
"(b) Establishment. From amounts appropriated pursuant to subsection (k), the
Secretary is authorized to make grants for purposes of establishing a network of
State or regional adult literacy resource centers.  
 
"(c) Allotment. (1) From sums available for purposes of making grants under this
section for any fiscal year, the Secretary shall allot to each State having an
approved application under subsection (h) an amount that bears the same ratio to
such sums as the amount allotted to such State under section 313(b) for the
purpose of making grants under section 321 bears to the aggregate amount
allotted to all States under such section for such purpose.  
   "(2) The chief executive officer of each State that receives its allotment
under this section shall contract on a competitive basis with the State
educational agency, 1 or more local educational agencies, a State office on
literacy, a volunteer organization, a community-based organization, institution
of higher education, or other nonprofit entity to operate a State literacy
resource center. No applicant participating in a competition pursuant to the
preceding sentence shall participate in the review of its own application.  
 
"(d) Use of Funds. Funds provided to each State under subsection (c)(1) to carry
out this section shall be used to conduct activities to -- 
   "(1) improve and promote the diffusion and adoption of state-of-the-art
teaching methods, technologies and program evaluations; 
   "(2) develop innovative approaches to the coordination of literacy services
within and among States and with the Federal Government; 
   "(3) assist public and private agencies in coordinating the delivery of
literacy services; 
   "(4) encourage government and industry partnerships, including partnerships
with small businesses, private nonprofit organizations, and community-based
organizations; 
   "(5) encourage innovation and experimentation in literacy activities that
will enhance the delivery of literacy services and address emerging problems; 
   "(6) provide technical and policy assistance to State and local governments
and service providers to improve literacy policy and programs and access to such
programs; 
   "(7) provide training and technical assistance to literacy instructors in
reading instruction and in -- 
   "(A) selecting and making the most effective use of state-of-the-art
methodologies, instructional materials, and technologies such as -- 
   "(i) computer assisted instruction; 
   "(ii) video tapes; 
   "(iii) interactive systems; and 
   "(iv) data link systems; or 
   "(B) assessing learning style, screening for learning disabilities, and

providing individualized remedial reading instruction; or 
   "(8) encourage and facilitate the training of full-time professional adult
educators.  
 
"(e) Alternative Uses of Equipment. Equipment purchases pursuant to this
section, when not being used to carry out the provisions of this section, may be
used for other instructional purposes if -- 
   "(1) the acquisition of the equipment was reasonable and necessary for the
purpose of conducting a properly designed project or activity under this
section; 
   "(2) the equipment is used after regular program hours or on weekends; and 
   "(3) such other use is -- 
   "(A) incidental to the use of the equipment under this section; 
   "(B) does not interfere with the use of the equipment under this section; and
   "(C) does not add to the cost of using the equipment under this section.  
 
"(f) Limitation. Not more than 10 percent of amounts received under any grant
received under this section shall be used to purchase computer hardware or
software.  
 
"(g) Special Rule. (1) Each State receiving funds pursuant to this section may
not use more than 5 percent of such funds to establish a State advisory council
on adult education and literacy (in this section referred to as the 'State
council') pursuant to section 332.  
   "(2) Each State receiving funds pursuant to this section may use such funds
to support an established State council to the extent that such State council
meets the requirements of section 332.  
   "(3) Each State receiving funds pursuant to this paragraph to establish or
support a State council pursuant to section 332 shall provide matching funds on
a dollar-for-dollar basis.  
 
"(h) Applications. Each State or group of States, as appropriate, that desires
to receive a grant under this section for a regional adult literacy resource
center, a State adult literacy resource center, or both shall submit to the
Secretary an application that has been reviewed and commented on by the State
council, where appropriate, and that describes how the State or group of States
will -- 
   "(1) develop a literacy resource center or expand an existing literacy
resource center; 
   "(2) provide services and activities with the assistance provided under this
section; 
   "(3) assure access to services of the center for the maximum participation of
all public and private programs and organizations providing or seeking to
provide basic skills instruction, including local educational agencies, agencies
responsible for corrections education, service delivery areas under the Job
Training Partnership Act, welfare agencies, labor organizations, businesses,
volunteer groups, and community-based organizations; 
   "(4) address the measurable goals for improving literacy levels as set forth
in the plan submitted pursuant to section 342; and 
   "(5) develop procedures for the coordination of literacy activities for
statewide and local literacy efforts conducted by public and private
organizations, and for enhancing the systems of service delivery.  
 
"(i) Payments; Federal Share. (1) The Secretary shall pay to each State having
an application approved pursuant to subsection (h) the Federal share of the
cost of the activities described in the application.  
   "(2) The Federal share -- 
   "(A) for each of the first 2 fiscal years in which the State receives funds
under this section shall not exceed 80 percent; 
   "(B) for each of the third and fourth fiscal years in which the State
receives funds under this section shall not exceed 70 percent; and 
   "(C) for the fifth and each succeeding fiscal year in which the State
receives funds under this section shall not exceed 60 percent.  
   "(3) The non-Federal share of payments under this section may be in cash or
in kind, fairly evaluated, including plant, equipment, or services.  
 
"(j) Regional Centers. (1) A group of States may enter into an interstate
agreement to develop and operate a regional adult literacy resource center for
purposes of receiving assistance under this section if the States determine that
a regional approach is more appropriate for their situation.  
   "(2) Any State that receives assistance under this section as part of a
regional center shall only be required to provide under subsection (i) 50
percent of the funds such State would otherwise be required to provide under
such subsection.  
   "(3) In any fiscal year in which the amount a State will receive under this
section is less than $ 100,000, the Secretary may designate the State to receive
assistance under this section only as part of a regional center.  
   "(4) The provisions of paragraph (3) shall not apply to any State that can
demonstrate to the Secretary that the total amount of Federal, State, local and
private funds expended to carry out the purposes of this section would equal or
exceed $ 100,000.  
   "(5) In any fiscal year in which paragraph (2) applies, the Secretary may
allow certain States that receive assistance as part of a regional center to
reserve a portion of such assistance for a State adult literacy resource center
pursuant to this section.  
 
"(k) Authorization of Appropriations. There are authorized to be appropriated to
carry out the provisions of this section $ 25,000,000 for each of the fiscal
years 1992 and 1993, and such sums as may be necessary for each of the fiscal
years 1994 and 1995.".  
 
                      TITLE II -- WORKFORCE LITERACY 
 
SEC. 201. NATIONAL WORKFORCE LITERACY ASSISTANCE COLLABORATIVE.  
 
(a) Establishment. There is established in the Department of Labor a National
Workforce Literacy Assistance Collaborative (in this subsection referred to as
the "Collaborative") to improve the basic skills of individuals, especially
those individuals who are marginally employed or unemployed with low basic
skills and limited opportunity for long-term employment and advancement, by
assisting small- and medium-sized businesses, business associations that
represent small- and medium-sized businesses, and labor organizations to develop
and implement literacy programs tailored to the needs of the workforce.  
 
(b) Functions. The Collaborative shall -- 
   (1) develop and implement a plan for providing small- and medium-sized
businesses with the technical assistance required to address the literacy needs
of their workforce; 
   (2) monitor the development of workforce literacy training programs and
identify best practices and successful small- and medium-sized business program
models; 
   (3) inform businesses and unions of research findings and best practices
regarding exemplary curricula, instructional techniques, training models, and
the use of technology as a training tool in the workplace; 
   (4) provide technical assistance to help businesses assess individual worker
literacy skill needs, implement workforce literacy training programs, and
evaluate training program effectiveness; 
   (5) promote cooperation and coordination among State and local agencies and
the private sector to obtain maximum uses of existing literacy and basic skills
training resources; 
   (6) conduct regional and State small business workforce literacy meetings to
increase program effectiveness and accountability; 
   (7) establish cooperative arrangements with the National Institute for
Literacy and other centers involved in literacy and basic skills research and
development activities; and 
   (8) prepare and produce written and video materials necessary to support
technical assistance and information dissemination efforts.  
 
(c) Authorization of Appropriations. There are authorized to be appropriated for
purposes of carrying out this section $ 5,000,000 for each of the fiscal years
1992, 1993, 1994, and 1995.  
 
SEC. 202. GRANTS FOR NATIONAL WORKFORCE LITERACY STRATEGIES.  
 
Section 371 of the Adult Education Act (20 U.S.C. 1211) is amended -- 
   (1) in subsection (a) -- 
   (A) in paragraph (1), by inserting after "Secretary" the following: ", in
consultation with the Secretary of Labor and the Administrator of the Small
Business Administration,"; 
   (B) in subparagraph (B) of paragraph (2) -- 
   (i) by striking "and" and inserting a comma; and 
   (ii) by inserting after "local educational agencies" the following: ", and
other entities described in paragraph (1) that receive grants under this
subsection"; and 
   (C) by adding at the end the following: 
   "(5) In awarding grants under this section, the Secretary shall give priority
to applications from partnerships that include small businesses.  
   "(6) The Secretary is authorized to award grants under this section for a
period not to exceed 3 years."; 
   (2) in subsection (b) -- 
   (A) in paragraph (1), by striking "subsection (c)" and inserting "subsection
(e)"; 
   (B) in subparagraph (B) of paragraph (2) -- 
   (i) by striking "and" the first place it appears and inserting a comma; and 
   (ii) by inserting after "local educational agencies" the following: ", and
other entities described in paragraph (1) that receive grants under this
subsection"; and 
   (C) in paragraph (7), by amending subparagraph (B) to read as follows: 
   "(B) From the sum appropriated for each fiscal year under subsection (c) for
any fiscal year in which appropriations equal or exceed $ 50,000,000, the
Secretary shall allot to each State (as defined in section 312(7)) an amount
proportionate to the amount such State receives under section 313."; 
   (3) by redesignating subsection (c) as subsection (e);
   (4) by inserting after subsection (b) the following: 
 
"(c) Grant for National Workforce Literacy Strategies. (1) In any fiscal year in
which amounts appropriated pursuant to the authorization contained in subsection
(e) equal or exceed $ 25,000,000, the Secretary shall reserve not more than $
5,000,000 to establish a program of grants to facilitate the design and
implementation of national strategies to assist unions, unions in collaboration
with programs eligible for assistance under this Act and businesses, and small-
and medium-sized businesses to effectively provide literacy and basic skills
training to workers.  
   "(2) Grants awarded under this subsection shall pay the Federal share of the
cost of programs to establish large-scale national strategies in workforce
literacy, which may include the following activities: 
   "(A) Basic skills training that is -- 
   "(i) cost-effective; 
   "(ii) needed by employees; and 
   "(iii) required by employers to establish a trainable workforce that can take
advantage of further job specific training and advance the productivity of the
labor force on an individual, industry, or national level.  
   "(B) Specific program offerings, which may include -- 
   "(i) English as a second language instruction; 
   "(ii) communications skill building; 
   "(iii) interpersonal skill building; 
   "(iv) reading and writing skill building; and 
   "(v) computation and problem solving.  
   "(C) Appropriate assessments of the literacy and basic skills needs of
individual workers and the skill levels required by business.  
   "(D) Cooperative arrangements with other organizations involved in providing
literacy and basic skills training, including adult education organizations,
vocational education organizations, community and junior colleges,
community-based organizations, State level agencies, and private industry
councils.  
   "(E) The establishment as appropriate of technology-based learning
environments, such as computer-based learning centers.  
   "(3) Any partnership described in subsection (a)(1) that desires to receive a
grant under this subsection shall submit a proposal to the Secretary. The
proposal shall contain a plan specifying a strategy for designing and
implementing workforce literacy and basic skills training for workers, and
justifying the national, statewide, or industry-wide importance of this
strategy. The proposal shall include -- 
   "(A) a demonstration of need for literacy and basic skills training; 
   "(B) a description of the business or industry for which the strategy is to
be established; 
   "(C) a statement of specific, measurable goals and participant outcomes; 
   "(D) a strategy for achieving the goals, including a description of the
process to identify literacy and basic skills required by employers and the
skills of individual workers, and a description of the specific services to be
provided; and 
   "(E) a description of the costs of the activities to be undertaken.  
   "(4) The Secretary shall develop a formal process for the submission of
proposals and publish an announcement in the Federal Register with respect to
that process and the availability of grants under this subsection.  
   "(5) The Federal share of the cost of a program assisted under this
subsection shall not exceed 70 percent.  
   "(6) The Secretary shall give priority for grants under this subsection to
proposals to carry out activities described in paragraph (2)(D).  
   "(7) In awarding grants under this subsection, the Secretary may consider
geographic factors, such as rural and urban areas and national distribution.  
   "(8) Of the grants awarded under this subsection each year, not less than 5
shall each be for an amount that is not less than $ 500,000.  
 
"(d) Evaluation. The Secretary shall reserve not more than 2 percent of any
amount appropriated pursuant to the authorization contained in subsection (e)
for the purpose of carrying out an independent evaluation of the effectiveness
of programs assisted under this section in improving the literacy and basic
skills of workers and the productivity of employees, including potential for the
replicability or adaption of such programs."; and 
   (5) in subsection (e) (as redesignated by paragraph (3)) by striking
paragraph (1) and inserting the following: 
   "(1) There are authorized to be appropriated for purposes of carrying out
this section such sums as may be necessary for the fiscal year 1991, $
60,000,000 for the fiscal year 1992, and such sums as may be necessary for each
of the fiscal years 1993, 1994, and 1995.".  
 
                   TITLE III -- INVESTMENT IN LITERACY 
 
SEC. 301. AMENDMENTS TO THE ADULT EDUCATION ACT.  
 
(a) Authorization of Appropriations. Section 313 of the Adult Education Act (20
U.S.C. 1201b) is amended in subsection (a) by striking "$ 200,000,000" and all
that follows through "1993" and inserting the following: "such sums as may be
necessary for the fiscal year 1991, $ 260,000,000 for the fiscal year 1992, and
such sums as may be necessary for each of the fiscal years 1993, 1994, and
1995".  
 
(b) Use of Funds. Subsection (a) of section 322 of the Adult Education Act (20
U.S.C. 1203b(a)) is amended -- 
   (1) by amending paragraph (1) to read as follows: 
   "(1) Grants to States under this subpart shall be used in accordance with
State plans (and amendments thereto) approved under sections 341 and 351, to pay
the Federal share of the cost of the establishment or expansion of adult
education programs to be carried out by local educational agencies, correctional
education agencies, community-based organizations, public or private nonprofit
agencies, postsecondary educational institutions, and other institutions that
have the ability to provide literacy services to adults and families. Each State
educational agency receiving financial assistance under this subpart shall
provide assurance that local educational agencies, public or private nonprofit
agencies, community-based organizations, correctional education agencies,
postsecondary educational institutions, and institutions which serve
educationally disadvantaged adults will be provided direct and equitable access
to all Federal funds provided under this subpart. Failure to provide the
assurance required by the preceding sentence shall disqualify a State from
receiving its allotment under this title. In determining which programs shall
receive assistance under this paragraph, the State shall consider -- 
   "(A) the past effectiveness of applicants in providing services (especially
with respect to recruitment and retention of educationally disadvantaged adults
and the learning gains demonstrated by such adults); 
   "(B) the degree to which the applicant will coordinate and utilize other
literacy and social services available in the community; and
   "(C) the commitment of the applicant to serve individuals in the community
that are most in need of literacy services."; 
   (2) in paragraph (3) -- 
   (A) by striking the first sentence; 
   (B) by inserting after "sources;" the following: "the projected goals of the
applicant with respect to participant recruitment, retention, and educational
achievement and how the applicant will measure and report progress in meeting
its goals;"; 
   (C) by striking "the Carl D. Perkins Vocational Education Act" and inserting
"the Carl D. Perkins Vocational and Applied Technology Education Act"; and 
   (D) by striking "the Education of the Handicapped Act" and inserting "the
Individuals with Disabilities Education Act"; 
   (3) in paragraph (4) -- 
   (A) by striking "(A)"; 
   (B) by inserting after "adults" the following: ", particularly in areas with
a high proportion of adults who do not have a certificate of graduation from a
school providing secondary education or its equivalent"; and 
   (C) by striking subparagraph (B); 
   (4) by redesignating paragraphs (3) and (4) (as amended by paragraphs (2) and
(3) of this subsection) as paragraphs (4) and (5), respectively; and 
   (5) by inserting after paragraph (2) the following: 
   "(3)(A) Grants to States provided under this section shall also be used for
competitive 2-year grants to public housing authorities for literacy programs
and related activities. Any public housing authority that receives a grant under
this subparagraph shall consult with local adult education providers in
conducting programs and activities with assistance provided under the grant. Any
grant provided under this subparagraph shall be referred to as a 'Gateway
Grant'.  
   "(B) The Secretary shall, not less often than every 2 years, evaluate any
grants made under this paragraph and report the results of such evaluation to
the Committee on Education and Labor of the House of Representatives and the
Committee on Labor and Human Resources of the Senate.".  
 
(c) State Administration. Section 331(a) of the Adult Education Act (20 U.S.C.
1205(a)) is amended -- 
   (1) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4),
respectively; and 
   (2) by inserting after paragraph (1) the following: 
   "(2) within 2 years of the enactment of the National Literacy Act of 1991,
the development and implementation, in consultation with a widely representative
group of appropriate experts, educators, and administrators, of indicators of
program quality to be used to evaluate programs assisted under this title, as
required by section 352, to determine whether such programs are effective,
including whether such programs are successfully recruiting, retaining, and
improving the literacy skills of the individuals served in such programs;".  
 
(d) State Advisory Council. (1) The heading for section 332 of the Adult
Education Act is amended to read as follows:

    "SEC. 332. STATE ADVISORY COUNCIL ON ADULT EDUCATION AND LITERACY.".  
   (2) Section 332 of the Adult Education Act (20 U.S.C. 1205a) is amended -- 
   (A) in the first sentence of subsection (a)(1), by striking "adult education,
appointed by the Governor" and inserting "adult education and literacy,
appointed by, and responsible to, the Governor"; 
   (B) in the second sentence of subsection (a)(1) --
   (i) by inserting "and literacy" after "adult education"; and 
   (ii) by striking "consist" and all that follows through the period at the end
and inserting the following: "consist of -- 
   "(i) representatives of public education; 
   "(ii) representatives of public and private sector employment; 
   "(iii) representatives of recognized State labor organizations; 
   "(iv) representatives of private literacy organizations, voluntary literacy
organizations, and community-based literacy organizations; 
   "(v) the chief administrative officer of a State, or the designee of such
officer; 
   "(vi) representatives of -- 
   "(I) the State educational agency; 
   "(II) the State job training agency; 
   "(III) the State human services agency; 
   "(IV) the State public assistance agency; 
   "(V) the State library program; and 
   "(VI) the State economic development agency; 
   "(vii) officers of the State government whose agencies provide funding for
literacy services or who may be designated by the Governor or the Chairperson of
the council to serve whenever matters within the jurisdiction of the agency
headed by such an officer are to be considered by the council; and 
   "(viii) classroom teachers who have demonstrated outstanding results in
teaching children or adults to read."; 
   (C) by amending subsection (d) to read as follows: 
 
"(d) Procedures. (1) Subject to paragraphs (2) and (3), the State advisory
council shall determine its own procedures, staffing needs (subject to funding
levels authorized by the chief executive officer of the State), and the number,
time, place, and conduct of meetings.  
   "(2) The State advisory council shall meet at least 4 times each year. At
least 1 such meeting shall provide an opportunity for the general public to
express views concerning adult education in the State.  
   "(3) One member more than one-half of the members on the council shall
constitute a quorum for the purpose of transmitting recommendations and
proposals to the chief executive officer of the State, but a lesser number of
members may constitute a quorum for other purposes."; 
   (D) in subsection (f) -- 
   (i) by amending paragraph (1) to read as follows: 
   "(1) meet with the State agencies responsible for literacy training during
the planning year to advise on the development of a State plan for literacy and
for adult education that fulfills the literacy and adult education needs of the
State, especially with respect to the needs of the labor market, economic
development goals, and the needs of the individuals in the State;"; 
   (ii) by amending paragraph (2) to read as follows: 
   "(2) advise the Governor, the State educational agency, and other State
agencies concerning -- 
   "(A) the development and implementation of measurable State literacy and
adult education goals consistent with section 342(c)(2), especially with respect
to -- 
   "(i) improving levels of literacy in the State by ensuring that all
appropriate State agencies have specific objectives and strategies for such
goals in a comprehensive approach; 
   "(ii) improving literacy programs in the State; and 
   "(iii) fulfilling the long-term literacy goals of the State; 
   "(B) the coordination and monitoring of State literacy training programs in
order to progress toward the long-term literacy goals of the State; 
   "(C) the improvement of the quality of literacy programs in the State by
supporting the integration of services, staff training, and technology-based
learning and the integration of resources of literacy programs conducted by
various agencies of State government; and 
   "(D) private sector initiatives that would improve adult education programs
and literacy programs, especially through public-private partnerships;"; 
   (iii) by redesignating paragraph (3) as paragraph (7); and 
   (iv) by inserting after paragraph (2) the following: 
   "(3) review and comment on the plan submitted pursuant to section 356(h) and
submit such comments to the Secretary; 
   "(4) measure progress on meeting the goals and objectives established
pursuant to paragraph (2)(A); 
   "(5) recommend model systems for implementing and coordinating State literacy
programs for replication at the local level; 
   "(6) develop reporting requirements, standards for outcomes, performance
measures, and program effectiveness in State programs, that are consistent with
those proposed by the Interagency Task Force on Literacy; and".  
 
(e) State Plan. Subsection (c) of section 342 of the Adult Education Act (20
U.S.C. 1206a) is amended -- 
   (1) by amending paragraph (1) to read as follows: 
   "(1) describe and provide for the fulfillment of the literacy needs of
individuals in the State;"; 
   (2) by striking paragraph (9); 
   (3) by redesignating paragraphs (2) through (8) as paragraphs (3) through
(9), respectively; 
   (4) by inserting after paragraph (1) the following: 
   "(2) set forth measurable goals for improving literacy levels, retention in
literacy programs, and long-term learning gains of individuals in the State and
describe a comprehensive approach for achieving such goals, including the
development of indicators of program quality as required by section 331(a)(2);";
   (5) in paragraph (4) (as redesignated by paragraph (3) of this section) -- 
   (A) by striking "the use of" and inserting "coordination by"; 
   (B) by striking "other than" and inserting "including"; and 
   (C) by striking "such as" the second place such term appears; 
   (6) by striking "and" at the end of paragraph (12); 
   (7) by striking the period at the end of paragraph (13) and inserting a
semicolon; and 
   (8) by adding at the end the following: 
   "(14) report the amount of administrative funds spent on program
improvements; and 
   "(15) contain assurances that financial assistance provided pursuant to this
title shall be used to assist and expand existing programs and to develop new
programs for adults whose lack of basic skills -- 
   "(A) renders them unemployable; 
   "(B) keeps them, whether employed or unemployed, from functioning
independently in society; and 
   "(C) severely reduces their ability to have a positive effect on the literacy
of their children.".  
 
(f) Evaluation. Section 352 of the Adult Education Act (20 U.S.C.  1207a) is
amended -- 
   (1) in paragraph 1 -- 
   (A) by striking "data to the Secretary" and inserting the following: "to
the Secretary and make public within the State data"; 
   (B) by inserting before the semicolon the following: ", including -- 
   "(A) the number and percentage of local educational agencies, community-based
organizations, volunteer groups, and other organizations that are grant
recipients; and 
   "(B) results of the evaluations carried out as required by paragraph (2) in
the year preceding the year for which the data is submitted"; 
   (2) in paragraph (2) -- 
   (A) by striking "before the end" and all that follows through "shall
consider" and inserting the following: "evaluate 20 percent of the grant
recipients each year so that at the end of such period 80 percent of all grant
recipients shall have been evaluated once and such evaluations shall consider,
at a minimum"; 
   (B) by redesignating subparagraphs (A) through (D) as subparagraphs (B)
through (E), respectively; 
   (C) by inserting before subparagraph (B) (as redesignated by subparagraph (B)
of this paragraph) the following: 
   "(A) the projected goals of the grant recipient as described in its
application pursuant to section 322(a)(3);"; 
   (D) by amending subparagraph (D) (as redesignated by subparagraph (B) of this
paragraph) to read as follows: 
   "(D) the success of the grant recipient in meeting the State's indicators of
program quality after such indicators are developed as required by section
331(a)(2); and"; and 
   (E) by striking "and" at the end.  
 
(g) Teacher Training. (1) Subsection (a) of section 353 of the Adult Education
Act (20 U.S.C. 1208(a)) is amended -- 
   (A) by striking "and" at the end of paragraph (1); 
   (B) by striking the period at the end of paragraph (2) and inserting "; and";
and 
   (C) by adding at the end the following: 
   "(3) training professional teachers, volunteers, and administrators, with
particular emphasis on -- 
   "(A) training -- 
   "(i) full-time professional adult educators; 
   "(ii) minority adult educators; 
   "(iii) educators of adults with limited English proficiency; and 
   "(B) training teachers to recognize and more effectively serve illiterate
individuals with learning disabilities and individuals who have a reading
ability below the fifth grade level.".  
   (2) Section 353 of the Adult Education Act (as amended by paragraph (1) of
this subsection) (20 U.S.C. 1208) is amended -- 
   (A) in subsection (a), by striking "10" and inserting "15"; and 
   (B) by amending subsection (b) to read as follows: 
 
"(b) Special Rule. At least 2/3 of the 15 percent reserved pursuant to
subsection (a) shall be used to carry out the provisions of paragraphs (2) and
(3) of subsection (a).".  
 
(h) Federal Responsibility. Section 361 of the Adult Education Act (20 U.S.C.
1209) is amended by adding at the end the following: 
 
"(c) Federal Responsibility. Within 1 year after the enactment of the National
Literacy Act of 1991, the Secretary, in consultation with appropriate experts,
educators, and administrators, shall develop indicators of program quality that
may be used by State and local programs receiving assistance under this title as
models by which to judge the success of such programs, including success in
recruitment and retention of students and improvement in the literacy skills of
students. Such indicators shall take into account different conditions under
which programs operate and shall be modified as better means of assessing
program quality are developed.".  
 
SEC. 302. TARGETED ASSISTANCE.  
 
Section 1531(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
2941) is amended by -- 
   (1) redesignating paragraphs (5) and (6) as paragraphs (6) and (7),
respectively; and 
   (2) inserting the following new paragraph (5) after paragraph (4): 
   "(5) programs of training to enhance the ability of teachers and school
counselors to identify, particularly in the early grades, students with reading
and reading-related problems that place such students at risk for illiteracy in
their adult years;".  
 
SEC. 303. AMENDMENTS TO THE EVEN START PROGRAM.  
 
(a) Amendment to Part Heading. The heading for part B of chapter 1 of title I of
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 2741 et seq.) is
amended to read as follows: 
 
            "PART B -- EVEN START FAMILY LITERACY PROGRAMS".  
 
(b) State Grant Program. Section 1052 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 2742) is amended -- 
   (1) in subsection (a), by striking "local educational agencies or consortia
of such agencies" and inserting "eligible entities"; 
   (2) in subsection (b) -- 
   (A) by inserting "(1)" before "In"; and 
   (B) by adding at the end the following: 
   "(2) In any fiscal year in which this subsection applies, no State shall
award a grant under this part for an amount less than $ 75,000.  
   "(3) In any year in which this subsection applies, each State that receives a
grant under this part may use not more than 5 percent of assistance provided
under the grant for costs of -- 
   "(A) administration; and 
   "(B) the provision, through grant or contract, of technical assistance for
program improvement and replication to eligible entities that receive grants
under this part."; 
   (3) by redesignating subsection (c) as subsection (d); 
   (4) by inserting after subsection (b) the following new subsection: 
 
"(c) Reservation. From amounts appropriated for purposes of carrying out this
part, the Secretary may reserve an amount equal to not more than 2 percent of
such amounts or the amount reserved for such purposes in the fiscal year 1991,
whichever is greater, for purposes of -- 
   "(1) carrying out the evaluation required by section 1058; and 
   "(2) providing, through grant or contract, technical assistance for program
improvement and replication to eligible entities that receive grants under this
part."; and 
   (5) by amending subsection (d) (as redesignated by paragraph (3)) to read as
follows: 
 
"(d) Definitions. For the purpose of this part: 
   "(1) The term 'eligible entity' means -- 
   "(A) a local educational agency applying in collaboration with a
community-based organization, public agency, institution of higher education, or
other nonprofit organization; or 
   "(B) a community-based organization, or other nonprofit organization of
demonstrated quality applying in collaboration with a local educational agency. 
   "(2) The terms 'Indian tribe' and 'tribal organization' have the respective
meanings given such terms in section 4 of the Indian Self-Determination and
Education Assistance Act.  
   "(3) The term 'State' includes each of the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.".  
 
(c) Allocation. Subsection (a) of section 1053 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 2743) is amended to read as follows: 
 
"(a) Reservation for Migrant Programs and Territories. (1) In each fiscal year
in which section 1052(a) applies, the Secretary shall first reserve for programs
consistent with the purpose of this part -- 
   "(A) for programs for migrant children, which shall be conducted through the
Office of Migrant Education, an amount equal to 3 percent of the amount
appropriated for purposes of carrying out this part; and 
   "(B) for allocations to Guam, American Samoa, the Virgin Islands, the
Commonwealth of the Northern Mariana Islands, and Palau (until the Compact of
Free Association with Palau takes effect pursuant to section 101(a) of Public
Law 99-658), and to Indian tribes and tribal organizations, an amount comparable
to their relative need.  
   "(2) In each fiscal year in which section 1052(b) applies, the Secretary
shall first reserve for programs consistent with the purpose of this part, an
amount equal to 5 percent of the amount appropriated for purposes of carrying
out this part, of which -- 
   "(A) amounts shall be allocated for programs for migrant children, Guam,
American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana
Islands, and Palau (until the Compact of Free Association with Palau takes
effect pursuant to section 101(a) of Public Law 99-658), and Indian tribes and
tribal organizations, according to their relative need; but 
   "(B) in no case shall the amount reserved for programs for migrant children
be less than the amount reserved for such programs in the preceding fiscal
year.".  
 
(d) Federal Share Limitation. Section 1054 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 2744) is amended -- 
   (1) in subsection (a), by striking "local educational agencies" and all that
follows through "nonprofit organizations," and inserting "an eligible entity"; 
   (2) in paragraph (2) of subsection (b), by inserting after "counseling," the
following: "other developmental and support services,"; and 
   (3) in subsection (c) -- 
   (A) by redesignating paragraphs (1) through (4) as subparagraphs (A) through
(D), respectively; 
   (B) by inserting "(1)" before "The Federal share";
   (C) in subparagraph (A) (as redesignated by subparagraph (A) of this
paragraph), by striking "local educational agency" and inserting "eligible
entity"; 
   (D) by striking the last sentence and inserting the following: "The remaining
cost may be provided in cash or in kind, fairly evaluated, and may be obtained
from any source other than funds made available for programs under this
chapter."; and 
   (E) by adding at the end the following: 
   "(2) The Secretary (in any fiscal year in which section 1052(a) applies) or
the State educational agency (in any fiscal year in which section 1052(b)
applies) may waive, in whole or in part, the requirement that all or part of the
remaining cost described in paragraph (1) be obtained from sources other than
funds made available under this chapter if an eligible entity -- 
   "(A) demonstrates that it otherwise would not be able to participate in the
program under this part; and 
   "(B) negotiates an agreement with the Secretary or the State educational
agency, as appropriate, with respect to the amount of the remaining cost to
which the waiver would be applicable.".  
 
(e) Eligible Participants. Section 1055 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 2745) is amended -- 
   (1) by striking "Eligible" and inserting the following: "(a) In General.
Except as provided in subsection (b), eligible"; 
   (2) in paragraph (2) of subsection (a) (as designated by paragraph (1)), by
striking "(aged 1 to 7," and inserting "(from birth to age 7,"; and 
   (3) by adding at the end the following: 
 
"(b) Continuation of Eligibility for Certain Participants. Any family
participating in the program under this part that becomes ineligible for such
participation as a result of 1 or more members of the family becoming ineligible
for such participation, may continue to participate in the program until all
members of the family become ineligible for participation, which -- 
   "(1) in the case of a family in which ineligibility was due to the child or
children of such family attaining the age of 8, shall be when the parent or
parents become ineligible due to educational advancement; and 
   "(2) in the case of a family in which ineligibility was due to the
educational advancement of the parent or parents of such family, shall be when
all children in the family attain the age of 8.".  
 
(f) Applications. Section 1056 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 2746) is amended -- 
   (1) in subsection (a), by striking "a local educational agency" and inserting
"an eligible entity"; and 
   (2) in subsection (b), by striking "the local educational agency" and
inserting "the eligible entity".  
 
(g) Selection Process. Section 1057 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 2747) is amended -- 
   (1) in subsection (a) -- 
   (A) by redesignating paragraphs (1) through (7) as subparagraphs (A) through
(G), respectively; 
   (B) by inserting "(1)" before "The"; 
   (C) in paragraph (1) (as designated by subparagraph (B) of this paragraph) --
   (i) by amending subparagraph (B) (as redesignated by subparagraph (A) of this
paragraph) to read as follows:

   "(B) demonstrate that the area to be served by such program has a high
percentage or a large number of children and adults who are in need of such
services as indicated by high levels of poverty, illiteracy, unemployment,
limited English proficiency, or other need-related indicators;"; 
   (ii) in subparagraph (E) (as redesignated by subparagraph (A) of this
paragraph), by striking "the local educational agency's" and inserting "the
eligible entity's"; and 
   (iii) by adding at the end the following: 
   "(2) The review panel shall give priority for grants under this subsection to
proposals which -- 
   "(A) make the demonstration described in paragraph (1)(B); and 
   "(B) demonstrate an ability to operate an effective program."; 
   (2) by amending subsection (c) to read as follows: 
 
"(c) Distribution of Assistance. (1) In approving grants under this part
pursuant to section 1052(a), the Secretary shall ensure a representative
distribution of assistance among the States and among urban and rural areas of
the United States.  
   "(2) In approving grants under this part pursuant to section 1052(b), the
review panel shall ensure a representative distribution of assistance between
urban and rural areas of the State."; and 
   (3) in paragraph (1) of subsection (d) -- 
   (A) by striking "a local educational agency" and inserting "an eligible
entity"; and 
   (B) by striking "such local educational agency" and inserting "such eligible
entity".  
 
(h) Authorization of Appropriations. Section 1059 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 2749) is amended to read as follows:

    "SEC. 1059. AUTHORIZATION OF APPROPRIATIONS.  
 
"There are authorized to be appropriated for purposes of carrying out this part
such sums as may be necessary for the fiscal year 1991, $ 100,000,000 for the
fiscal year 1992, and such sums as may be necessary for the fiscal year 1993.". 
 
SEC. 304. FAMILY LITERACY PUBLIC BROADCASTING PROGRAM.  
 
(a) Program Authorized. (1) The Secretary is authorized, subject to the
availability of appropriations, to enter into a contract with the Corporation
for Public Broadcasting to arrange for the production and dissemination of
family literacy programming and accompanying materials which would assist
parents in improving family literacy skills and language development. In
producing and developing such programming, the Corporation for Public
Broadcasting shall work in cooperation with local public broadcasting stations
to avoid duplication of efforts.  
   (2) After the program described in paragraph (1) is produced, the Corporation
for Public Broadcasting shall arrange to have audio and video instructional
media materials for distribution at sites chosen from among -- 
   (A) State and local libraries operating literacy programs, and 
   (B) nonprofit entities serving hard-to-serve populations as defined in
section 304(b)(2), including community-based organizations, volunteer
organizations and other nongovernmental entities.  
   (3) The audio and video instructional media materials described in
paragraph (2) shall be used at sites described in paragraph (2), and on a loan
basis, distributed to families.  
   (4) One year after distribution of the audio and video instructional media
materials, the Corporation for Public Broadcasting shall report to the Congress
on the distribution and use of the audio and video instructional media materials
produced pursuant to this subsection and such audio and video instructional
media materials' contribution in promoting literacy.  
 
(b) Authorization of Appropriations. There are authorized to be appropriated $
2,000,000 for fiscal year 1992 to carry out the provisions of subsection (i), of
which $ 100,000 shall be reserved for reproducing and distributing programming
or audio and video instructional media materials.  
 
          TITLE IV -- BUSINESS LEADERSHIP FOR EMPLOYMENT SKILLS 
 
SEC. 401. EDUCATION PROGRAMS FOR COMMERCIAL DRIVERS.  
 
(a) In General. Part C of the Adult Education Act (20 U.S.C. 1211 et seq.) is
amended by adding at the end the following:

    "SEC. 373. EDUCATION PROGRAMS FOR COMMERCIAL DRIVERS.  
 
"(a) Program Authorized. The Secretary is authorized to make grants on a
competitive basis to pay the Federal share of the costs of establishing and
operating adult education programs which increase the literacy skills of
eligible commercial drivers so that such drivers may successfully complete the
knowledge test requirements under the Commercial Motor Vehicle Safety Act of
1986.  
 
"(b) Federal Share. The Federal share of the costs of the adult education
programs authorized under subsection (a) shall be 50 percent.  Nothing in this
subsection shall be construed to require States to meet the non-Federal share
from State funds.  
 
"(c) Eligible Entities. Entities eligible to receive a grant under this section
include -- 
   "(1) private employers employing commercial drivers in partnership with
agencies, colleges, or universities described in paragraph (2); 
   "(2) local educational agencies, State educational agencies, colleges,
universities, or community colleges; 
   "(3) approved apprentice training programs; and 
   "(4) labor organizations, the memberships of which include commercial
drivers.  
 
"(d) Referral Program. Grantees shall refer to appropriate adult education
programs as authorized under this title individuals who are identified as having
literacy skill problems other than or beyond those which prevent them from
successfully completing the knowledge test requirements under the Commercial
Motor Vehicle Safety Act of 1986.  
 
"(e) Definitions. For purposes of this section: 
   "(1) The term 'approved apprentice training programs' has the meaning given
such term in the National Apprenticeship Act of 1937.  
   "(2) The term 'eligible commercial driver' means a driver licensed prior to
the requirements of the Commercial Motor Vehicle Safety Act of 1986.  
 
"(f) Authorization of Appropriations. There are authorized to be appropriated
for purposes of carrying out this section $ 3,000,000 for each of the fiscal
years 1991, 1992, and 1993.".  
 
(b) Avoidance of Duplicate Enactment. The amendment made by subsection (a) shall
not take effect if the Higher Education Amendments of 1991 are enacted before
the enactment of this Act.  
 
                      TITLE V -- BOOKS FOR FAMILIES 
 
SEC. 501. INEXPENSIVE BOOK DISTRIBUTION PROGRAM.  
 
(a) Priority. Section 1563(b) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 2963) is amended by -- 
   (1) striking "and" at the end of paragraph (2); 
   (2) by redesignating paragraph (3) as paragraph (4); and 
   (3) by inserting after paragraph (2) the following: 
   "(3) in the fiscal year 1991 and each succeeding fiscal year, the contractor
will give priority in the selection of additional local programs to programs and
projects which serve children and students with special needs including, at a
minimum -- 
   "(A) low-income children (particularly such children in high poverty areas); 
   "(B) children at risk for school failure; 
   "(C) children with disabilities; 
   "(D) emotionally disturbed children; 
   "(E) foster children; 
   "(F) homeless children; 
   "(G) migrant children; 
   "(H) children without access to libraries; 
   "(I) institutionalized or incarcerated children; and 
   "(J) children whose parents are institutionalized or incarcerated; and".  
 
(b) Study. The contractor shall report to the Secretary of Education annually
regarding the number and description of the additional programs funded under
subsection 1563(a)(3) of the Elementary and Secondary Education Act of 1965.  
 
SEC. 502. LIBRARY LITERACY PROGRAMS.  
 
Section 601 of the Library Services and Construction Act (20 U.S.C. 375) is
amended by inserting at the end thereof the following new subsection: 
 
"(f) In awarding grants under this section the Secretary shall give priority to
programs and services which -- 
   "(1) will be delivered in areas of greatest need which have highest
concentrations of adults who do not have a secondary education or its
equivalent, and which -- 
   "(A) have few community or financial resources to establish the program
described under this section without Federal assistance, or 
   "(B) have low per capita income, unemployment or underemployment; and 
   "(2) coordinate with literacy organizations and community based organizations
providing literacy services.".

 
            TITLE VI -- LITERACY FOR INCARCERATED INDIVIDUALS 
 
SEC. 601. MANDATORY LITERACY PROGRAM.  
 
(a) Establishment. The chief correctional officer of each State correctional
system may establish a demonstration or system-wide functional literacy program.
 
(b) Program Requirements. (1) To qualify for funding under subsection (d), each
functional literacy program shall -- 
   (A) to the extent possible, make use of advanced technologies; and 
   (B) include -- 
   (i) a requirement that each person incarcerated in the system, jail, or
detention center who is not functionally literate, except a person described in
paragraph (2), shall participate in the program until the person -- 
   (I) achieves functional literacy or in the case of an individual with a
disability, achieves a level of functional literacy commensurate with his or her
ability; 
   (II) is granted parole; 
   (III) completes his or her sentence; or 
   (IV) is released pursuant to court order; 
   (ii) a prohibition on granting parole to any person described in clause (i)
who refuses to participate in the program, unless the State parole board
determines that the prohibition should be waived in a particular case; and 
   (iii) adequate opportunities for appropriate education services and the
screening and testing of all inmates for functional literacy and disabilities
affecting functional literacy, including learning disabilities, upon arrival in
the system or at the jail or detention center.  
   (2) The requirement of paragraph (1)(B) shall not apply to a person who -- 
   (A) is serving a life sentence without possibility of parole; 
   (B) is terminally ill; or 
   (C) is under a sentence of death.  
 
(c) Annual Report. (1) Within 90 days after the close of the first calendar year
in which a literacy program authorized by subsection (a) is placed in operation,
and annually for each of the 4 years thereafter, the chief correction officer of
each State correctional system shall submit a report to the Attorney General
with respect to its literacy program.  
   (2) A report under paragraph (1) shall disclose -- 
   (A) the number of persons who were tested for eligibility during the
preceding year; 
   (B) the number of persons who were eligible for the literacy program during
the preceding year; 
   (C) the number of persons who participated in the literacy program during the
preceding year; 
   (D) the names and types of tests that were used to determine functional
literacy and the names and types of testing that were used to determine
disabilities affecting functional literacy; 
   (E) the average number of hours of instruction that were provided per week
and the average number per student during the preceding year; 
   (F) sample data on achievement of participants in the program, including the
number of participants who achieved functional literacy; 
   (G) data on all direct and indirect costs of the program; and 
   (H) a plan for implementing a system-wide mandatory functional literacy
program, as required by subsection (b), and, if appropriate, information on
progress toward such a program.  
 
(d) Compliance Grants. (1) The Attorney General shall make grants to State
correctional agencies who elect to establish a program described in subsection
(a) for the purpose of assisting in carrying out the programs, developing the
plans, and submitting the reports required by this section.  
   (2) A State corrections agency is eligible to receive a grant under this
subsection if the agency agrees to provide to the Attorney General -- 
   (A) such data as the Attorney General may request concerning the cost and
feasibility of operating the mandatory functional literacy programs required by
subsections (a) and (b); and 
   (B) a detailed plan outlining the methods by which the requirements of
subsections (a) and (b) will be met, including specific goals and timetables.  
   (3) There are authorized to be appropriated for purposes of carrying out this
section $ 10,000,000 for fiscal year 1992, $ 15,000,000 for fiscal year 1993, $
20,000,000 for fiscal year 1994, and $ 25,000,000 for fiscal year 1995.  
 
(e) Definition. For the purposes of this section, the term "functional literacy"
means at least an eighth grade equivalence in reading on a nationally recognized
standardized test.  
 
SEC. 602. BLUE RIBBON AWARDS FOR CORRECTIONAL EDUCATION PROGRAMS.  
 
(a) In General. Section 1566 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 2966) is amended -- 
   (1) in subsection (a), by striking "The" and inserting "Subject to subsection
(d), the"; and 
   (2) by adding at the end the following: 
 
"(d) Blue Ribbon Awards for Correctional Education Programs. The Secretary,
through nominations provided by the Office on Correctional Education after
consultation with representatives of correctional education organizations and
others active in literacy education, shall annually make 1 or more awards under
this section to effective and innovative programs for inmate education and
literacy.".  
 
(b) Effective Date. The amendment made by subsection (a) shall take effect on
October 1, 1992.  
 
                   TITLE VII -- VOLUNTEERS FOR LITERACY 
 
SEC. 701. LITERACY CHALLENGE GRANTS.  
 
(a) General Authority 
   (1) Program authorized. Part C of title I of the Domestic Volunteer Service
Act of 1973 (42 U.S.C. 4991 et seq.) is amended by adding at the end the
following: 
 
                         "LITERACY CHALLENGE GRANTS 
 
"Sec. 125. (a) The Director is authorized to award challenge grants to eligible
public agencies and private organizations to pay the Federal share of the
costs of establishing, operating or expanding community or employee literacy
programs or projects that include the use of full-time or part-time volunteers
as one method of addressing illiteracy.  
 
"(b) Each eligible organization desiring a grant under this section shall submit
to the ACTION Agency an application in such form and accompanied by such
information as the Director may reasonably require. Each such application shall
-- 
   "(1) describe the activities for which assistance is sought, 
   "(2) contain assurances that the eligible organization will provide from
non-Federal sources the non-Federal share of the cost of the program or project,
   "(3) provide assurances, satisfactory to the Director, that the literacy
project will be operated in cooperation with other public and private agencies
and organizations interested in, and qualified to, combat illiteracy in the
community where the project is to be conducted, and 
   "(4) contain such other information and assurances as the Director may
reasonably require.  
 
"(c)(1)(A) The Federal share of the cost of a program or project authorized by
this section administered by a public agency, a nonprofit organization other
than an organization described in paragraph (2), or a private, for-profit
organization shall not exceed -- 
   "(i) 80 percent in the first fiscal year; 
   "(ii) 70 percent in the second fiscal year; and 
   "(iii) 60 percent in the third fiscal year.  
   "(B) The non-Federal share paid by a private, for-profit organization shall
be in cash.  
   "(2) The Federal share of the cost of a program or project administered by a
nonprofit or community-based organization shall not exceed -- 
   "(A) 90 percent in the first fiscal year; 
   "(B) 80 percent in the second fiscal year; and 
   "(C) 70 percent in the third fiscal year.  
   "(3) The non-Federal share provided by a public agency or a nonprofit or
community-based organization may be provided in cash, or in kind, fairly
evaluated, and may include the use of plant, equipment, and services.".  
   (2) Conforming amendment. The table of contents contained in the first
section of the Domestic Volunteer Service Act of 1973 (42 U.S.C.  4951 note) is
amended by inserting after the item relating to section 124 the following new
item.

    "Sec. 125. Literacy challenge grants.".  
 
(b) Authorization of Appropriations. Section 501(c) of the Domestic Volunteer
Service Act of 1973 (42 U.S.C. 5081(c)) is amended -- 
   (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B),
respectively; 
   (2) by inserting "(1)" after the subsection designation; and 
   (3) by inserting at the end the following: 
   "(2) Except as provided in paragraph (3) and in addition to the amounts
authorized to be appropriated pursuant to paragraph (1) there is authorized to
be appropriated $ 2,500,000 for the fiscal year 1992 and such sums as may be
necessary for 1993 for Literacy Challenge Grants under section 125.  
   "(3) No funds shall be appropriated pursuant to paragraph (2) in any fiscal
year unless -- 
   "(A) the funds available in such fiscal year for the VISTA Program under
part A of title I are sufficient to provide the years of volunteer service
specified for such fiscal year under section 501(d)(1) for the VISTA Program;
and 
   "(B) the funds available in such fiscal year for the VISTA Literacy Corps
under part A of title I are sufficient to provide at least the same years of
volunteer service as were provided in the fiscal year preceding such fiscal
year.".  
 
     TITLE VIII -- AMENDMENTS AFFECTING THE TERRITORIES AND THE FREELY
 
                            ASSOCIATED STATES 
 
SEC. 801. ELIGIBILITY FOR EDUCATION PROGRAMS.  
 
(a) Higher Education. Section 484 of the Act (20 U.S.C. 1091) is amended by
adding at the end thereof the following new subsection: 
 
"(k) Students Attending Institutions in the Freely Associated States and
Eligibility for Trio Programs. Notwithstanding any other provision of law, a
student who meets the requirements of paragraph (a)(5) of this section or who is
a resident of the freely associated states, and who attends a public or
nonprofit institution of higher education located in any of the freely
associated states rather than a State, shall be eligible, if otherwise
qualified, for assistance under subpart 1, 2, or 4 of part A or part C of this
title.".  
 
(b) Territorial Teacher Training Assistance Program. Section 4502 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 3142) is amended by
striking "the Northern Mariana Islands, and the Trust Territory of the Pacific
Islands" each place it appears and inserting in lieu thereof "the Commonwealth
of the Northern Mariana Islands, Palau, the Republic of the Marshall Islands,
and the Federated States of Micronesia.".  
 
(c) Treatment of Territories and Territorial Student Assistance.  Section 1204
of the Act (20 U.S.C. 1144a) is amended by adding at the end thereof the
following new subsection: 
 
"(d) Notwithstanding any other provision of law, an institution of higher
education that is located in any of the freely associated states, rather than a
State, shall be eligible, if otherwise qualified, for assistance under subpart 4
of part A of title IV of this Act.".  
 
SEC. 802. TREATMENT OF TERRITORIES AND FREELY ASSOCIATED STATES.  
 
(a) Elementary and Secondary Education Act of 1965. Subsection (a) of section
1005 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 2711) is
amended -- 
   (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5),
respectively; and 
   (2) by inserting after paragraph (2) the following: 
   "(3) Competitive Grants. (A) From amounts appropriated for purposes of
carrying out this section, the Secretary shall reserve an amount equal to the
amount described in subparagraph (B) for purposes of making competitive grants
to local educational agencies in Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, Palau, the Federated States of Micronesia, and the
Republic of the Marshall Islands. The Secretary shall make such grants according
to the recommendations of the Pacific Regional Laboratory in Honolulu, Hawaii,
which shall conduct a competition for such grants.  
   "(B) The amount described in this subparagraph is the portion of the
aggregate amount reserved in the fiscal year 1989 under sections 1005(a), 1291,
1404, 1405(a)(2)(A), and 1405(a)(2)(B) for the Trust Territory of the Pacific
Islands that was attributable to the Republic of the Marshall Islands and the
Federated States of Micronesia.  
   "(C) Subject to subparagraph (D), grants awarded under this paragraph may
only be used for -- 
   "(i) activities consistent with the purposes of -- 
   "(I) title I; 
   "(II) the Adult Education Act; 
   "(III) the Education of the Handicapped Act; 
   "(IV) the Library Services and Construction Act; or 
   "(V) the Dwight D. Eisenhower Mathematics and Science Education Act; 
   "(ii) teacher training; 
   "(iii) curriculum development; 
   "(iv) instructional materials; or 
   "(v) general school improvement and reform.  
   "(D) Grants awarded under this paragraph may only be used to provide direct
educational services.  
   "(E) The Secretary shall provide 5 percent of amounts made available for
grants under this paragraph to pay the administrative costs of the Pacific
Regional Laboratory with respect to the program under this paragraph.".  
 
(b) Adult Education Act. The Adult Education Act is amended -- 
   (1) in sections 312(7) and 371(b)(7)(B)(i) (20 U.S.C. 1201a(7) and
1211(b)(7)(B)(i)) by striking "the Trust Territory of the Pacific Islands" and
inserting "Palau (until the Compact of Free Association with Palau takes effect
pursuant to section 101(a) of Public Law 99-658)"; and 
   (2) in sections 313(b) and 361(a) (20 U.S.C. 1201b(b) and 1209a(a)) by
striking "and the Trust Territory of the Pacific Islands" and inserting "the
Federated States of Micronesia, the Republic of the Marshall Islands, and
Palau".  
 
(c) Star Schools Program. Section 907(8) of the Star Schools Program Assistance
Act (20 U.S.C. 4086(7)) is amended by striking "the Trust Territory of the
Pacific Islands" and inserting "the Federated States of Micronesia, the Republic
of the Marshall Islands, Palau".  
 
(d) Education of the Handicapped. The Education of the Handicapped Act is
amended in -- 
   (1) section 602(a)(6) (20 U.S.C. 1401(a)(6)) by striking "or the Trust
Territory of the Pacific Islands" and inserting "or Palau (until the Compact of
Free Association with Palau takes effect pursuant to section 101(a) of Public
Law 99-658)"; 
   (2) section 611(a)(2) (20 U.S.C. 1411(a)(2)) by striking "and the Trust
Territory of the Pacific Islands" and inserting "the Federated States of
Micronesia, the Republic of the Marshall Islands, and Palau"; and 
   (3) section 611(e)(1) (20 U.S.C. 1411(e)(1)) by striking "and the Trust
Territory of the Pacific Islands" and inserting "the Federated States of
Micronesia, the Republic of the Marshall Islands, and Palau (until the Compact
of Free Association with Palau takes effect pursuant to section 101(a) of Public
Law 99-658)".  
 
(e) Library Services and Construction Act. The Library Services and Construction
Act is amended in -- 
   (1) section 3(g) (20 U.S.C. 351a(g)) by striking "or the Trust Territory of
the Pacific Islands" and inserting "Palau (until the Compact of Free Association
with Palau takes effect pursuant to section 101(a) of Public Law 99-658)"; 
   (2) section 5(a)(3) (20 U.S.C. 351c(a)(3)) by striking "and the Trust
Territory of the Pacific Islands" each place such term appears and inserting
"Palau (until the Compact of Free Association with Palau takes effect pursuant
to section 101(a) of Public Law 99-658)"; 
   (3) section 7(a) (20 U.S.C. 351e(a)) by striking "the Trust Territory of the
Pacific Islands" and inserting "Palau (until the Compact of Free Association
with Palau takes effect pursuant to section 101(a) of Public Law 99-658)"; and 
   (4) section 7(b) (20 U.S.C. 351e(b)) by striking "and the Trust Territory of
the Pacific Islands" each place such term appears and inserting "the
Commonwealth of the Northern Mariana Islands and Palau (until the Compact of
Free Association with Palau takes effect pursuant to section 101(a) of Public
Law 99-658)".  
    Speaker of the House of Representatives.  
    Vice President of the United States and 
    President of the Senate.
National Institute for Literacy