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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 797 Introduced in Senate (IS)]

104th CONGRESS
  1st Session
                                 S. 797

To provide assistance to States and local communities to improve adult 
education and family literacy, to help achieve the National Educational 
            Goals for all citizens, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                 May 11 (legislative day, May 1), 1995

  Mr. Kennedy introduced the following bill; which was read twice and 
         referred to the Committee on Labor and Human Resources

_______________________________________________________________________

                                 A BILL

 
To provide assistance to States and local communities to improve adult 
education and family literacy, to help achieve the National Educational 
            Goals for all citizens, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the ``Adult Education and Family Literacy Reform Act of 
1995''.

        TITLE I--AMENDMENT TO THE ADULT EDUCATION ACT AMENDMENT

    Section 1. The Adult Education Act (20 U.S.C. 1201 et seq.; 
hereinafter referred to as ``the Act'') is amended in its entirety to 
read as follows:

                    ``short title; table of contents

    ``Sec. 101. (a) Short Title.--This Act may be cited as the `Adult 
Education and Family Literacy Act'.
    ``(b) Table of Contents.--The table of contents for this Act is as 
follows:
                          ``TABLE OF CONTENTS

``Sec. 1. Short title; table of contents.
``Sec. 2. Findings; purpose.
``Sec. 3. Authorization of appropriations.
             ``TITLE I--ADULT EDUCATION AND FAMILY LITERACY

``Sec. 101. Program authority; priorities.
``Sec. 102. State grants for adult education and family literacy.
``Sec. 103. State leadership activities.
``Sec. 104. Even Start Family Literacy Program.
``Sec. 105. State administration.
``Sec. 106. State plan.
``Sec. 107. Subgrants to eligible applicants.
``Sec. 108. Applications from eligible applicants.
``Sec. 109. State performance goals and indicators.
``Sec. 110. Evaluation, improvement, and accountability.
``Sec. 111. Allotments; reallotment.
                    ``TITLE II--NATIONAL LEADERSHIP

``Sec. 201. National leadership activities.
``Sec. 202. Awards for national excellence.
``Sec. 203. National Institute for Literacy.
                    ``TITLE III--GENERAL PROVISIONS

``Sec. 301. Waivers.
``Sec. 302. Definitions.
                          ``findings; purpose

    ``Sec. 2. (a) Findings.--The Congress finds the following:
            ``(1) Our Nation's well-being is dependent on the 
        knowledge, skills, and abilities of all of its citizens.
            ``(2) Advances in technology and changes in the workplace 
        are rapidly increasing the knowledge and skill requirements for 
        workers.
            ``(3) Our social cohesion and success in combatting 
        poverty, crime, and disease also depend on the Nation's having 
        an educated citizenry.
            ``(4) The success of State and local educational reforms 
        supported by the Goals 2000: Educate America Act and other 
        programs that State and local communities are implementing 
        requires that parents be well educated and possess the ability 
        to be a child's first and most continuous teacher.
            ``(5) There is a strong relationship between educational 
        attainment and welfare dependence. Adults with very low levels 
        of literacy are ten times as likely to be poor as those with 
        high levels of literacy.
            ``(6) Studies, including the National Adult Literacy 
        Survey, have found that more than one-fifth of American adults 
        demonstrate very low literacy skills that make it difficult for 
        them to enter high-skill, high-wage jobs, to assist effectively 
        in their children's education, or to carry out their 
        responsibilities as citizens.
            ``(7) National studies have also shown that existing 
        federally supported adult education programs have assisted many 
        adults in acquiring basic literacy skills, learning English, or 
        acquiring a high school diploma (or its equivalent), and family 
        literacy programs have shown great potential for breaking the 
        intergenerational cycle of low literacy and having a positive 
        effect on later school performance and high school completion, 
        especially for children from low-income families.
            ``(8) Current adult education programs, however, are often 
        narrowly focused on specific populations or methods of service 
        delivery, have conflicting or overlapping requirements, and are 
        not administered in an integrated manner, thus inhibiting the 
        capacity of State and local officials to implement programs 
        that meet the needs of individual States and localities.
            ``(9) The President's GI Bill for America's Workers, of 
        which this Act is a key component, will help strengthen the 
        capacity of States, educational institutions, and businesses, 
        working together, to upgrade the skills and literacy levels of 
        youth and adults.
            ``(10) The Federal Government can, through a performance 
        partnership with States and localities based on clear State-
        developed goals and indicators, increased State and local 
        flexibility, improved accountability and incentives for 
        performance, and enhanced consumer choice and information, 
        assist States and localities with the improvement and expansion 
        of their adult education and family literacy programs.
            ``(11) The Federal Government can also assist States and 
        localities by carrying out research, development, 
        demonstration, dissemination, evaluation, capacity-building, 
        data collection, professional development, and technical 
        assistance activities that support State and local efforts to 
        implement successfully services and activities that are funded 
        under this Act, as well as adult education and family literacy 
        activities supported with non-Federal resources.
    ``(b) Purpose.--(1) It is the purpose of this Act to create a 
performance partnership with States and localities for the provision of 
adult education and family literacy services so that, as called for in 
the National Education Goals, all adults who need such services will, 
as appropriate, be able to--
            ``(A) become literate and obtain the knowledge and skills 
        needed to compete in a global economy and exercise the rights 
        and responsibilities of citizenship;
            ``(B) complete a high school education;
            ``(C) become and remain actively involved in their 
        children's education in order to ensure their children's 
        readiness for, and success in, school.
    ``(2) This purpose shall be pursued through--
            ``(A) building on State and local education reforms 
        supported by the Goals 2000: Educate America Act and other 
        Federal and State legislation;
            ``(B) consolidating numerous Federal adult education and 
        literacy programs into a single, flexible grant;
            ``(C) tying local programs to challenging State-developed 
        performance goals that are consistent with the purpose of this 
        Act;
            ``(D) holding States and localities accountable for 
        achieving such goals;
            ``(E) building program quality though such measures as 
        encouraging greater use of new technologies in adult education 
        and family literacy programs and better professional 
        development of educators working in those programs;
            ``(F) integrating adult education and family literacy 
        programs with States' school-to-work opportunities systems, 
        career preparation education services and activities, job 
        training programs, early childhood and elementary school 
        programs, and other related activities; and
            ``(G) supporting the improvement of State and local 
        activities through nationally significant efforts in research, 
        development, demonstration, dissemination, evaluation, 
        capacity-building, data collection, professional development, 
        and technical assistance.

                   ``authorization of appropriations

    ``Sec. 3. (a) State Grants for Adult Education and Family 
Literacy.--For the purpose of carrying out this Act there are 
authorized to be appropriated $490,487,000 for fiscal year 1996 and 
such sums as may be necessary for each of the fiscal years 1997 through 
2005.
    ``(b) Reservations.--(1) Except as provided in paragraph (2), from 
the amount appropriated for any fiscal year under subsection (a), the 
Secretary may reserve--
            ``(A) not more than 5 percent to carry out section 202;
            ``(B) not more than 3 percent to carry out sections 201 and 
        203; and
            ``(C) not more than $5,000,000 for Even Start family 
        literacy programs for migratory families and Indian families 
        under section 104(c).
    ``(2) The Secretary may reserve funds under paragraph (1)(A) 
beginning in fiscal year 1998.

             ``TITLE I--ADULT EDUCATION AND FAMILY LITERACY

                    ``program authority; priorities

    ``Sec. 101. (a) Program Authorized.--In order to prepare adults for 
family, work, citizenship, and job training, and adults and their 
children for success in future learning, funds
 under this title shall be used to support the development, 
implementation, and improvement of adult education and family literacy 
programs at the State and local levels.
    ``(b) Program Priorities.--In using funds under this title, States 
and local recipients shall give priority to--
            ``(1) services and activities designed to ensure that all 
        adults have the opportunity to achieve to challenging State 
        performance standards for literacy proficiency, including basic 
        literacy, English language proficiency, and completion of high 
        school or its equivalent;
            ``(2) services and activities designed to enable parents to 
        prepare their children for school, enhance their children's 
        language and cognitive abilities, and promote their own career 
        advancement; and
            ``(3) adult education and family literacy programs that--
                    ``(A) are built on a strong foundation of research 
                and effective educational practices;
                    ``(B) effectively employ advances in technology, as 
                well as learning in the context of family, work, and 
                the community;
                    ``(C) are staffed by well-trained instructors, 
                counselors, and administrators;
                    ``(D) are of sufficient intensity and duration for 
                participants to achieve substantial learning gains;
                    ``(E) establish strong links with elementary and 
                secondary schools, postsecondary institutions, one-stop 
                career centers, job-training programs, and social 
                service agencies; and
                    ``(F) offer flexible schedules and, when necessary, 
                support services to enable people, including adults 
                with disabilities or other special needs, to attend and 
                complete programs.

         ``state grants for adult education and family literacy

    ``Sec. 102. (a) State Grant.--From the funds available for State 
grants under section 3 for each fiscal year, the Secretary shall, in 
accordance with section 111, make a grant to each State that has an 
approved State plan under section 106, to assist that State in 
developing, implementing, and improving adult education and family 
literacy programs within the State.
    ``(b) Reservation of Funds.--From the amount awarded to a State for 
any fiscal year under subsection (a), the State--
            ``(1) may use up to 5 percent, or $80,000, whichever is 
        greater, for the cost of administering its program under this 
        title;
            ``(2) may use up to 10 percent for leadership activities 
        under section 103;
            ``(3)(A) may, beginning in fiscal year 1998, use up to 5 
        percent for financial incentives or awards to one or more 
        eligible recipients in recognition of--
                    ``(i) exemplary quality or innovation in adult 
                education or family literacy services and activities; 
                or
                    ``(ii) exemplary services and activities for 
                individuals who are most in need of such services and 
                activities, or are hardest to serve, such as adults 
                with disabilities or other special needs; or
                    ``(iii) both.
            ``(B) The incentives or awards made under subparagraph (A) 
        shall be determined by the State through a peer review process, 
        using the performance goals and indicators described in section 
        109 and, if appropriate, other criteria; and
            ``(4) shall use the remainder for subgrants to eligible 
        applicants under section 107, except that at least 25 percent 
        of the remainder shall be used for Even Start family literacy 
        programs under section 104, unless the State demonstrates in 
        its State plan under section 106, to the satisfaction of the 
        Secretary, that it will otherwise meet the needs of individuals 
        in the State for family literacy programs in a manner that is 
        consistent with the purpose of this Act.
    ``(c) Federal Share.--(1) The Federal share of expenditures to 
carry out a State plan under section 106 shall be paid from the State's 
grant under subsection (a).
    ``(2) The Federal share shall be no greater than 75 percent of the 
cost of carrying out the State plan for each fiscal year, except that 
with respect to Guam, American Samoa, the Virgin Islands, and the 
Northern Mariana Islands the Federal share may be 100 percent.
    ``(3) The State's share of expenditures to carry out a State plan 
submitted under section 106 may be in cash or in kind, fairly 
evaluated, and may include only non-Federal funds that are used for 
adult education and family literacy activities in a manner that is 
consistent with the purpose of this Act.
    ``(d) Maintenance of Effort.--(1) A State may receive funds under 
this title for any fiscal year only if the Secretary finds that the 
aggregate expenditures of the State for adult education and family 
literacy by such State for the preceding fiscal year were not less than 
90 percent of such aggregate expenditures for the second preceding 
fiscal year.
    ``(2) The Secretary shall reduce the amount of the allocation of 
funds under section 111 for any fiscal year in the exact proportion to 
which a State fails to meet the requirement of paragraph (1) by falling 
below 90 percent of the aggregate expenditures for adult education and 
family literacy for the second preceding fiscal year.
    ``(3) The Secretary may waive the requirements of this subsection 
if the Secretary determines that a waiver would be equitable due to 
exceptional or uncontrollable circumstances, such as a natural disaster 
or a precipitous decline in the financial resource of the State.
    ``(4) No lesser amount of State expenditures under paragraphs (2) 
and (3) may be used for computing the effort required under paragraph 
(1) for subsequent years.

                     ``state leadership activities

    ``Sec. 103. (a) State Leadership.--Each State that receives a grant 
under section 102(a) for any fiscal year shall use funds reserved for 
State leadership under section 102(b)(2) to conduct activities of 
Statewide significance that develop, implement, or improve programs of 
adult education and family literacy, consistent with its State plan 
under section 106.
    ``(b) Uses of Funds.--States shall use funds under subsection (a) 
for one or more of the following--
            ``(1) professional development and training;
            ``(2) disseminating curricula for adult education and 
        family literacy programs;
            ``(3) monitoring and evaluating the quality of, and 
        improvement in, services and activities conducted with 
        assistance under this title, including establishing performance 
        goals and indicators under section 109(a), in order to assess 
        program quality and improvement;
            ``(4) establishing State content standards for adult 
        education and family literacy programs;
            ``(5) establishing challenging State performance standards 
        for literacy proficiency;
            ``(6) promoting the integration of literacy instruction and 
        occupational skill training, and linkages with employers;
            ``(7) promoting the use of and acquiring instructional and 
        management software and technology;
            ``(8) establishing or operating State or regional adult 
        literacy resource centers;
            ``(9) developing and participating in networks and 
        consortia of States that seek to establish and implement adult 
        education and family literacy programs that have significance 
        to the State or region, and may have national significance; and
            ``(10) other activities of Statewide significance that 
        promote the purposes of this Act.

                 ``even start family literacy programs

    ``Sec. 104. (a) Even Start Grants.--Each State that receives a 
grant under section 102(a) for any fiscal year shall use funds reserved 
under section 102(b)(4) to award subgrants to partnerships described in 
subsection (b)(5) to carry out Even Start family literacy programs.
    ``(b) Program Elements.--An Even Start family literacy program 
shall--
            ``(1) provide opportunities (including opportunities for 
        home-based instructional services) for joint participation by 
        parents or guardians (including parents or guardians who are 
        within the State's compulsory school attendance age range, so 
        long as a local educational agency provides, or ensures the 
        availability of, their basic education), other family members, 
        and children;
            ``(2) provide developmentally appropriate childhood 
        education for children from birth through age seven;
            ``(3) identify and recruit families that are most in need 
        of family literacy services, as indicated by low levels of 
        income and adult literacy (including limited English 
        proficiency), and such other need-related indicators as may be 
        appropriate;
            ``(4) enable participants, including individuals with 
        disabilities or other special needs, to succeed through 
        services and activities designed to meet their needs, such as 
        support services and flexible class schedules; and
            ``(5) except as provided in subsection (c), be operated by 
        a partnership composed of--
                    ``(A) one or more local educational agencies; and
                    ``(B) one or more community-based organizations, 
                institutions of higher education, private non-profit 
                organizations, or public agencies (including 
                correctional institutions or agencies) other than local 
                educational agencies.
    ``(c) Migratory and Indian Families.--From funds reserved under 
section 3(b)(1)(C) for any fiscal year, the Secretary shall, under such 
terms and conditions as the Secretary shall establish, support Even 
Start family literacy programs through grants to, or cooperative 
agreements with--
            ``(1) eligible applicants under section 107(b) for 
        migratory families; and
            ``(2) Indian tribes and tribal organizations for Indian 
        families.

                         ``state administration

    ``Sec. 105. (a) Designated State Agency or Agencies.--A State 
desiring to receive a grant under section 102(a) shall, consistent with 
State law, designate an education agency or agencies that shall be 
responsible for the administration of services and activities under 
this title, including--
            ``(1) the development, submission, and implementation of 
        the State plan;
            ``(2) consultation with other appropriate agencies, groups, 
        and individuals that are involved in, or interested in, the 
        development and implementation of programs assisted under this 
        title, such as business, industry, labor organizations, and 
        social service agencies; and
            ``(3) coordination with other State and Federal education, 
        training, employment, and social service programs, and one-stop 
        career centers.
    ``(b) State-Imposed Requirements.--Whenever a State imposes any 
rule or policy relating to the administration and operation of programs 
funded by this title (including any rule or policy based on State 
interpretation of any Federal law, regulation, or guideline), it shall 
identify the rule or policy as a State-imposed requirement.

                              ``state plan

    ``Sec. 106. (a) Five-Year Plans.--(1) Except as provided in 
subsection (f), each State desiring to receive a grant under this title 
for any fiscal year shall submit to, or have on file with, the 
Secretary a five-year State plan in accordance with this section. Each 
State plan submitted to the Secretary shall be approved by the 
designated State agency or agencies under section 105(a).
    ``(2) The State may submit its State plan as part of a 
comprehensive plan that includes State plan provisions under one or 
more of the following statutes: section 14302 of the Elementary and 
Secondary Education Act of 1965; the Carl D. Perkins Career Preparation 
Education Act of 1995; the Goals 2000: Educate America Act; the Job 
Training Partnership Act, and the School-to-Work Opportunities Act of 
1994.
    ``(b) Plan Assessment.--In developing its State plan, and any 
revisions to the State plan under subsection (e), the State shall base 
its plan or revisions on a recent, objective assessment of--
            ``(1) the needs of individuals in the State for adult 
        education and family literacy programs, including individuals 
        most in need or hardest to serve (such as educationally 
        disadvantaged adults and families, recent immigrants, 
        individuals with limited English proficiency, incarcerated 
        individuals, homeless individuals, recipients of public 
        assistance, and individuals with disabilities);
            ``(2) the capacity of programs and providers to meet those 
        needs, taking into account the priorities under section 101 and 
        the State's performance goals under section 109(a).
    ``(c) Public Participation.--In developing its State plan, and any 
revisions under subsection (e), the State shall consult
 widely with individuals, agencies, organizations, and institutions in 
the State that have an interest in the provision and quality of adult 
education and family literacy, including--
            ``(1) individuals who currently participate, or who want to 
        participate, in adult education and family literacy programs;
            ``(2) practitioners and experts in adult education and 
        family literacy, social services, and workforce development; 
        and
            ``(3) representatives of business and labor.
    ``(d) Plan Contents.--The plan shall be in such form and contain 
such information and assurances as the Secretary may require, and shall 
include--
            ``(1) a summary of the methods used to conduct the 
        assessment under subsection (b) and the findings of that 
        assessment;
            ``(2) a description of how, in addressing the needs 
        identified in the State's assessment, funds under this title 
        will be used to establish adult education and family literacy 
        programs, or improve or expand current programs, that will lead 
        to high-quality learning outcomes, including measurable 
        learning gains, for individuals in such programs;
            ``(3) a statement of the State's performance goals and 
        indicators established under section 109, or, in the first 
        plan, a description of how the State will establish such 
        performance goals and indicators;
            ``(4) a description of the criteria the State will use to 
        award funds under this title to eligible applicants under 
        section 107, including how the State will ensure that its 
        selection of applicants to operate programs assisted under this 
        title will reflect the findings of program evaluations carried 
        out under section 110(a);
            ``(5) a description of how the State will integrate 
        services and activities under this Act, including planning and 
        coordination of programs, with those of other agencies, 
        institutions, and organizations involved in adult education and 
        family literacy, such as the public school system, early 
        childhood education programs, social service agencies, 
        business, labor unions, libraries, institutions of higher 
        education, public health authorities, vocational education and 
        special education programs, one-stop career centers, and 
        employment or training programs, in order to ensure effective 
        use of funds and to avoid duplication of services;
            ``(6) a description of the leadership activities the State 
        will carry out under section 103;
            ``(7) any comments the Governor may have on the State plan; 
        and
            ``(8) assurances that--
                    ``(A) the State will comply with the requirements 
                of this Act and the provisions of the State plan;
                    ``(B) the State will use such fiscal control and 
                accounting procedures as are necessary for the proper 
                and efficient administration of this title; and
                    ``(C) programs funded under this title will be of 
                such size, scope, and quality as to give realistic 
                promise of furthering the purpose of this Act.
    ``(e) Plan Revisions.--When changes in conditions or other factors 
require substantial modifications to an approved State plan, the 
designated State agency or agencies shall submit a revision to the plan 
to the Secretary. Such a revision shall be approved by the designated 
State agency or agencies.
    ``(f) Planning Year.--(1) For fiscal year 1996 only, a State may 
submit a one year State plan to the Secretary that either satisfies the 
specific requirements of this section or describes how the State will 
complete the development of its State plan with respect to those 
specific requirements within the following year. A State may use funds 
reserved under section 102(b)(2) to complete the development of its 
State plan.
    ``(2) A one year State plan under this subsection shall--
            ``(A) be developed in accordance with subsection (c); and
            ``(B) contain the assurances described in subsection 
        (d)(8).
    ``(3) In order to receive a grant under section 102(a) for fiscal 
year 1997, a State that submits a one year State plan under this 
subsection shall submit a four year State plan that covers fiscal year 
1997 and the three succeeding fiscal years.
    ``(g) Consultation.--The designated State agency or agencies 
shall--
            ``(1) submit the State plan, and any revision to the State 
        plan, to the Governor for review and comment; and
            ``(2) ensure that any comments the Governor may have are 
        included with the State plan, or revision, when the State plan, 
        or revision, is submitted to the Secretary.
    ``(h) Plan Approval.--(1) The Secretary shall approve a State plan, 
or a revision to an approved State plan, if it meets the requirements 
of this section and is of sufficient quality to meet the purpose of 
this Act, and shall not finally disapprove a State plan, or a revision 
to an approved State plan, except after giving the State reasonable 
notice and an opportunity for a hearing.
    ``(2) The Secretary shall establish a peer review process to make 
recommendations regarding approval of State plans and revisions to the 
State plans.

                   ``subgrants to eligible applicants

    ``Sec. 107. (a) Authority.--(1) From funds available under section 
102(b)(4), States shall make subgrants to eligible applicants under 
subsection (b) to develop, implement, and improve adult education and 
family literacy programs within the State.
    ``(2) To the extent practicable, States shall make multi-year 
subgrants under this section.
    ``(b) Eligibility.--(1) Except as provided for subgrants for Even 
Start family literacy programs under section 104, the following 
entities shall be eligible to apply to the State for a subgrant under 
this section:
            ``(A) local educational agencies;
            ``(B) community-based organizations;
            ``(C) institutions of higher education;
            ``(D) public and private nonprofit agencies (including 
        State and local welfare agencies, corrections agencies, public 
        libraries, and public housing authorities); and
            ``(E) consortia of such agencies, organizations, 
        institutions, or partnerships, including consortia that include 
        one or more for-profit agencies, organizations, or 
        institutions, if such agencies, organizations, or institutions 
        can make a significant contribution to attaining the objectives 
        of this Act.
    ``(2) Each State receiving funds under this title shall ensure that 
all eligible applicants described under subsection (b)(1) receive 
equitable consideration for subgrants under this section.

                ``applications from eligible applicants

    ``Sec. 108. (a) Application.--Any eligible applicant under sections 
104(a) or 107(b)(1) that desires a subgrant under this title shall 
submit an application to the State containing such information and 
assurances as the State may reasonably require, including--
            ``(1) a description of the applicant's current adult 
        education and family literacy programs, if any;
            ``(2) a description of how funds awarded under this title 
        will be spent;
            ``(3) a description of how the applicant's program will 
        help the State address the needs identified in the State's 
        assessment under section 106(b)(1);
            ``(4) the projected goals of the applicant with respect to 
        participant recruitment, retention, and educational 
        achievement, and how the applicant will measure and report to 
        the State regarding the information required in section 110(a); 
        and
            ``(5) any cooperative arrangements the applicant has with 
        others (including arrangements with social service agencies, 
        one-stop career centers, business, industry, and volunteer 
        literacy organizations) that have been made to deliver adult 
        education and family literacy programs.
    ``(b) Funding.--In determining which applicants receive funds under 
this title, the State shall--
            ``(1) give preference to those applicants that serve local 
        areas with high concentrations of individuals in poverty or 
        with low levels of literacy (including English language 
        proficiency), or both; and
            ``(2) consider--
                    ``(A) the results of the evaluations required under 
                section 110(a), if any; and
                    ``(B) the degree to which the applicant will 
                coordinate with and utilize other literacy and social 
                services available in the community.

                ``state performance goals and indicators

    ``Sec. 109. (a) State-Established Performance Goals and 
Indicators.--Any State desiring to receive a grant under section 
102(a), in consultation with individuals, agencies, organizations, and 
institutions described in section 106(c), shall--
            ``(1) identify performance goals that define the level of 
        student achievement to be attained by adult education and 
        family literacy programs, and express such goals in an 
        objective, quantifiable, and measurable form;
            ``(2) identify performance indicators that State and local 
        recipients will use in measuring or assessing progress toward 
        achieving such goals; and
            ``(3) by July 1, 1997, ensure that the State performance 
        indicators include, at least--
                    ``(A) achievement in linguistic skills, including 
                English language skills;
                    ``(B) receipt of a high school diploma or its 
                equivalent;
                    ``(C) entry into a postsecondary school, job 
                training program, employment, or career advancement; 
                and
                    ``(D) successful transition of children to school.
    ``(b) Transition.--Except as provided in subsection (a)(3), each 
State receiving funds under this title may continue to use the 
indicators of program quality it developed under section 331(a)(2) of 
the Adult Education Act as in effect before the date of enactment of 
the Adult Education and Family Literacy Reform Act of 1995, to the 
extent that they are consistent with the State's performance goals.
    ``(c) Technical Assistance.--The Secretary shall provide technical 
assistance to States regarding the development of the State's 
performance goals and indicators under subsection (a). Notwithstanding 
any other provision of law, the Secretary may use funds reserved under 
section 3(b)(1)(B) to provide technical assistance under this section.

             ``evaluation, improvement, and accountability

    ``Sec. 110. (a) Local Evaluation.--Each recipient of a subgrant 
under this title shall biennially evaluate, using the performance goals 
and indicators established under section 109, the programs supported 
under this title and report to the State regarding the effectiveness of 
its programs in addressing the priorities under section 101 and the 
needs identified in the State assessment under section 106(b)(1).
    ``(b) Improvement Activities.--If a State determines, based on the 
applicable performance goals and indicators established under section 
109 and the evaluations under subsection (a), that a subgrant recipient 
is not making substantial progress in achieving the purpose of this 
Act, the State may work jointly with the local recipient to develop an 
improvement plan. If, after not more than two years of implementation 
of the improvement plan, the State determines that the recipient is not 
making substantial progress, the State shall take whatever corrective 
action it deems necessary, which may include termination of funding or 
the implementation of alternative service arrangements, consistent with 
State law. The State shall take corrective action under the preceding 
sentence only after it has provided technical assistance to the 
recipient and shall ensure that any corrective action it takes allows 
for continued services and activities to the recipient's students.
    ``(c) State Report.--The State shall biennially report to the 
Secretary on the quality and effectiveness of the adult education and 
family literacy programs funded through its subgrants under this title, 
based on the performance goals and indicators under section 109(a) and 
the needs identified in the State assessment under section 106(b)(1).
    ``(d) Technical Assistance.--If the Secretary determines that the 
State is not properly implementing its responsibilities under 
subsection (b), or is not making substantial progress in meeting the 
purpose of this Act, based on its performance goals and indicators 
under section 109(a), the Secretary shall work with the State to 
implement improvement activities.
    ``(e) Withholding of Federal Funds.--If, after a reasonable time, 
but not earlier than one year after implementing activities described 
in subsection (d), the Secretary determines that the
 State is not making sufficient progress, based on its performance 
goals and indicators under section 109(a), the Secretary shall, after 
notice and opportunity for a hearing, withhold from the State all, or a 
portion, of the State's allotment under this title. The Secretary may 
use funds withheld under the preceding sentence to provide, through 
alternative arrangements, services and activities within the State that 
meet the purposes of this Act.

                       ``allotments; reallotment

    ``Sec. 111. (a) Allotment to States.--(1) Subject to subsection 
(b), from the funds available under section 102(a) for each fiscal 
year, the Secretary shall allot to each State--
            ``(A) a sum that bears the same ratio to one-half that 
        amount as the number of individuals in the State who are 16 
        years of age or older and not enrolled, or required to be 
        enrolled, in secondary school and who do not possess a high 
        school diploma or its equivalent, bears to the number of such 
        individuals in all the States; and
            ``(B) a sum that bears the same ratio to one-half that 
        amount as the number of individuals in the State who are 18 
        years of age or older and who are living at or below poverty 
        bears to the number of such individuals in all the States.
    ``(2)(A) The Secretary shall allot to the Commonwealth of Puerto 
Rico an amount equal to 2.95 percent of the funds available under 
section 102(a) for each fiscal year.
    ``(B) For the purpose of this subsection, the term 'State' shall be 
deemed to exclude the Commonwealth of Puerto Rico.
    ``(3) The numbers of individuals specified in paragraph (1) shall 
be determined by the Secretary on the basis of the latest estimates 
available to the Department that are satisfactory to the Secretary.
    ``(b) Hold-Harmless.--(1) Notwithstanding any other provision of 
law and subject to paragraph (2)--
            ``(A) for fiscal year 1996, no State shall receive under 
        title I of this Act less than 90 percent of the sum of the 
        payments made to the State for the fiscal year 1995 for 
        programs authorized by section 313 of the Adult Education Act, 
        section 1202 of the Elementary and Secondary Education Act of 
        1965, and sections 202(c)(1)(C) and 262(c)(1)(C) of the Job 
        Training Partnership Act, as they were in effect prior to the 
        enactment of the Adult Education and Family Literacy Reform Act 
        of 1995; and
            ``(B) for fiscal year 1997, no State shall receive under 
        title I of this Act less than 90 percent of the amount it 
        received under title I for fiscal year 1996.
    ``(2) If for any fiscal year the amount available for allotment 
under this section is insufficient to satisfy the provisions of 
paragraph (1), the Secretary shall ratably reduce the payments to all 
States for such services and activities as necessary.
    ``(c) Reallotment.--If the Secretary determines that any amount of 
a State's allotment under this section for any fiscal year will not be 
required for carrying out the program for which such amount has been 
allotted, the Secretary shall make such amount available for 
reallotment to one or more other States on a basis that the Secretary 
determines would best serve the purposes of this Act. Any amount 
reallotted to a State under this subsection shall be deemed to be part 
of its allotment for the fiscal year in which it is obligated.
    ``(d) Report.--The Secretary shall, by September 30, 2000--
            ``(1) conduct a study to determine the availability and 
        reliability of statistical data on the number of immigrants and 
        limited English proficient individuals in each State; and
            ``(2) report to the Congress on the feasibility and 
        advisability of including such populations as factors in the 
        formula under subsection (a)(1).

                   ``TITLE II -- NATIONAL LEADERSHIP

                    ``national leadership activities

    ``Sec. 201. (a) Authority.--From the amount reserved under section 
3(b)(1)(B) for any fiscal year, the Secretary is authorized to 
establish a program of national leadership and evaluation activities to 
enhance the quality of adult education and family literacy nationwide.
    ``(b) Method of Funding.--The Secretary may carry out national 
leadership and evaluation activities directly or through grants, 
contracts, and cooperative agreements.
    ``(c) Uses of Funds.--Funds used under this section may be used 
for--
            ``(1) research and development;
            ``(2) demonstration of model and innovative programs;
            ``(3) dissemination;
            ``(4) evaluations and assessments, including independent 
        assessments of services and activities assisted under this Act 
        and of the condition and progress of literacy in the United 
        States;
            ``(5) capacity building at the State and local levels;
            ``(6) data collection;
            ``(7) professional development;
            ``(8) technical assistance; and
            ``(9) other activities designed to enhance the quality of 
        adult education and family literacy nationwide.

                    ``awards for national excellence

    ``Sec. 202. The Secretary may, from the amount reserved under 
section 3(b)(1)(A) for any fiscal year after fiscal year 1997, and 
through a peer review process, make performance awards to one or more 
States that have--
            ``(1) exceeded in an outstanding manner their performance 
        goals under section 109(a);
            ``(2) made exemplary progress in developing, implementing, 
        or improving their adult education and family literacy programs 
        in accordance with the priorities described in section 101; or
            ``(3) provided exemplary services and activities for those 
        individuals within the State who are most in need of adult 
        education and family literacy services, or are hardest to 
        serve.

                   ``national institute for literacy

    ``Sec. 203. (a) Purpose.--The National Institute for Literacy 
shall--
            ``(1) provide national leadership;
            ``(2) coordinate literacy services; and
            ``(3) be a national resource for adult education and family 
        literacy, by providing the best and most current information 
        available and supporting the creation of new ways to offer 
        improved services.
    ``(b) Establishment.--(1) There shall be a 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 Secretary may include in the 
Institute any research and development 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 Interagency Group shall consider the recommendations of 
the National Institute for Literacy Advisory Board (the `Board') under 
subsection (e) 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.
    ``(c) Duties.--(1) In order to provide leadership for the 
improvement and expansion of the system for delivery of literacy 
services, the Institute is authorized, to--
            ``(A) establish a national electronic data base of 
        information that disseminates information to the broadest 
        possible audience within the literacy and basic skills field, 
        and that includes--
                    ``(i) effective practices in the provision of 
                literacy and basic skills instruction, including the 
                integration of such instruction with occupational 
                skills training;
                    ``(ii) public and private literacy and basic skills 
                programs and Federal, State, and local policies 
                affecting the provision of literacy services at the 
                national, State, and local levels;
                    ``(iii) opportunities for technical assistance, 
                meetings, conferences, and other opportunities that 
                lead to the improvement of literacy and basic skills 
                services; and
                    ``(iv) a communication network for literacy 
                programs, providers, social service agencies, and 
                students;
            ``(B) coordinate support for the provision of literacy and 
        basic skills services across Federal agencies and at the State 
        and local levels;
            ``(C) coordinate the support of research and development on 
        literacy and basic skills in families and adults across Federal 
        agencies, especially with the Office of Educational Research 
        and Improvement, and carry out basic and applied research and 
        development on topics that are not being investigated by other 
        organizations or agencies;
            ``(D) collect and disseminate information on methods of 
        advancing literacy that show great promise;
            ``(E) work with the National Education Goals Panel, assist 
        local, State, and national organizations and agencies in making 
        and measuring progress towards the National Education Goals, as 
        established by Public Law 103-227;
            ``(F) coordinate and share information with national 
        organizations and associations that are interested in literacy 
        and workforce development; and
            ``(G) inform the development of policy with respect to 
        literacy and basic skills.
    ``(2) The Institute may enter into contracts or cooperative 
agreements with, or make grants to, individuals, public or private 
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.
    ``(d) Literacy Leadership.--(1) The Institute may, in consultation 
with the Board, 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) The Institute, in consultation with the Board, is authorized 
to award paid and unpaid internships to individuals seeking to assist 
in carrying out the Institute's mission and to accept assistance from 
volunteers.
    ``(e) National Institute for Literacy Advisory Board.--(1)(A) There 
shall be a National Institute for Literacy Advisory Board (the 
`Board'), which shall consist of 10 individuals appointed by the 
President.
    ``(B) The Board shall comprise individuals who are not otherwise 
officers or employees of the Federal Government and who are 
representative of such entities as--
            ``(i) literacy organizations and providers of literacy 
        services, including nonprofit providers, providers of English 
        as a second language, programs and services, social service 
        organizations, and providers receiving assistance under this 
        Act;
            ``(ii) businesses that have demonstrated interest in 
        literacy programs;
            ``(iii) literacy students, including those with 
        disabilities;
            ``(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; and
            ``(B) provide independent advice on the operation of the 
        Institute.
    ``(3)(A) Appointments to the Board made after the date of enactment 
of the `Adult Education and Family Literacy Reform Act of 1995' shall 
be for three-year terms, except that the initial terms for members may 
be established at one, two, or three years in order to establish a 
rotation in which one-third of the members are selected each year.
    ``(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.
    ``(4) The Chairperson and Vice Chairperson of the Board shall be 
elected by the members.
    ``(5) The Board shall meet at the call of the Chairperson or a 
majority of its members.
    ``(f) Gifts, Bequests, and Devises.--(1) The Institute may accept, 
administer, and use gifts or donations of services, money, or property, 
whether real or personal, tangible or intangible.
    ``(2) The responsible official shall establish written rules 
setting forth the criteria to be used by the Institute in determining 
whether the acceptance of contributions of services, money, or property 
whether real or personal, tangible or intangible services would reflect 
unfavorably upon the ability of the Institute or any employee to carry 
out its responsibilities or official duties in a fair and objective 
manner, or would compromise the integrity or the appearance of the 
integrity of its programs or any official involved in those programs.
    ``(g) 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.
    ``(h) Staff.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the pay of a 
Director.
    ``(i) 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 level IV of the Executive Schedule.
    ``(j) Experts and Consultants.--The Institute may procure temporary 
and intermittent services under section 3109(b) of title 5, United 
States Code.
    ``(k) Report.--The Institute shall submit a biennial report to the 
Interagency Group and the Congress.
    ``(l) Funding.--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.

                    ``TITLE III--GENERAL PROVISIONS

                               ``waivers

    ``Sec. 301. (a)(1) Request for Waiver.--Any State may request, on 
its own behalf or on behalf of a local recipient, a waiver by the 
Secretary of Education, the Secretary of the Interior, or the Secretary 
of Labor, as appropriate, of one or more statutory or regulatory 
provisions described in subsection (c) in order to carry out adult 
education and family literacy programs under title I more effectively.
    ``(2) An Indian tribe or tribal organization may request a waiver 
by a Secretary described in subsection (a)(1), as appropriate, of one 
or more statutory or regulatory provisions described in subsection (c) 
in order to carry out an Even Start family literacy program under 
section 104(c) more effectively.
    ``(b) General Authority.--(1) Except as provided in subsection (d), 
a Secretary described in subsection (a)(1) may waive any requirement of 
a statute listed in subsection (c), or of the regulations issued under 
that statute, for a State that requests such a waiver--
            ``(A) if, and only to the extent that, the Secretary 
        determines that such requirement impedes the ability of the 
        State or a subgrant recipient under title I to carry out adult 
        education and family literacy programs or activities in an 
        effective manner;
            ``(B) if the State waives, or agrees to waive, any similar 
        requirements of State law;
            ``(C) if, in the case of a statewide waiver, the State--
                    ``(i) has provided all subgrant recipients of 
                assistance under this title I in the State with notice 
                of, and an opportunity to comment on, the State's 
                proposal to request a waiver; and
                    ``(ii) has submitted the comments of such 
                recipients to the Secretary; and
            ``(D) if the State provides such information as the 
        Secretary reasonably requires in order to make such 
        determinations.
    ``(2) A Secretary shall act promptly on any request submitted under 
paragraph (1).
    ``(3) Each waiver approved under this subsection shall be for a 
period not to exceed five years, except that a Secretary may extend 
such period if the Secretary determines that the waiver has been 
effective in enabling the State to carry out the purpose of this Act.
    ``(c) Education Programs.--(1) The statutes subject to the waiver 
authority of the Secretary of Education under this section are--
            ``(A) this Act;
            ``(B) part A of title I of the Elementary and Secondary 
        Education Act of 1965 (authorizing programs and activities to 
        help disadvantaged children meet high standards);
            ``(C) part B of title II of the Elementary and Secondary 
        Education Act of 1965 (Dwight D. Eisenhower Professional 
        Development Program);
            ``(D) title VI of the Elementary and Secondary Education 
        Act of 1965 (Innovative Education Program Strategies);
            ``(E) part C of title VII of the Elementary and Secondary 
        Education Act of 1965 (Emergency Immigrant Education Program);
            ``(F) the School-to-Work Opportunities Act of 1994, but 
        only with the concurrence of the Secretary of Labor; and
            ``(G) the Carl D. Perkins Career Preparation Education Act 
        of 1995.
    ``(2) The Secretary of Interior may waive under this section the 
provisions of part B of the Education Amendments of 1978.
    ``(3) The statutes subject to the waiver authority of the Secretary 
of Labor under this section are--
            ``(A) the Job Training Partnership Act; and
            ``(B) the School-to-Work Opportunities Act of 1994, but 
        only with the concurrence of the Secretary of Education.
    ``(d) Waivers Not Authorized.--A Secretary may not waive any 
statutory or regulatory requirement of the programs listed in 
subsection (c) relating to--
            ``(1) the basic purposes or goals of the affected programs;
            ``(2) maintenance of effort;
            ``(3) comparability of services;
            ``(4) the equitable participation of students attending 
        private schools;
            ``(5) parental participation and involvement;
            ``(6) the distribution of funds to States or to local 
        recipients;
            ``(7) the eligibility of an individual for participation in 
        the affected programs;
            ``(8) public health or safety, labor standards, civil 
        rights, occupational safety and health, or environmental 
        protection; or
            ``(9) prohibitions or restrictions relating to the 
        construction of buildings or facilities.
    ``(e) Termination of Waivers.--A Secretary shall periodically 
review the performance of any State or local recipient for which the 
Secretary has granted a waiver under this section and shall terminate 
such waiver if the Secretary determines that the performance of the 
State affected by the waiver has been inadequate to justify a 
continuation of the waiver, or the State fails to waive similar 
requirements of State law in accordance with subsection (b)(1)(B).

                             ``definitions

    ``Sec. 302. For the purpose of this Act--
            ``(1) the term `adult' means an individual who is 16 years 
        of age, or beyond the age of compulsory school attendance under 
        State law, and who is not enrolled, or required to be enrolled, 
        in secondary school;
            ``(2) the term `adult education' means services or 
        instruction below the college level for adults who--
                    ``(A) lack sufficient education or literacy skills 
                to enable them to function effectively in society; or
                    ``(B) do not have a certificate of graduation from 
                a school providing secondary education and who have not 
                achieved an equivalent level of education;
            ``(3) the term `community-based organization' means a 
        private nonprofit organization that is representative of a 
        community or significant segments of a community and that 
        provides education, vocational rehabilitation, job training, or 
        internship services and programs;
            ``(4) the term `family literacy program' means a program 
        that integrates adult education, parenting education, and early 
        childhood education into a unified set of services and 
        activities for low-income families that are most in need of 
        such services and activities, and that is designed to help 
        break the cycle of intergenerational poverty and 
        undereducation;
            ``(5) the terms `Indian tribes' and `tribal organizations' 
        have the meaning given such terms in section 3 of the Indian 
        Self-Determination and Education Assistance Act;
            ``(6) the term `individual of limited English proficiency' 
        means an adult or out-of-school youth who has limited ability 
        in speaking, reading, writing, or understanding the English 
        language and--
                    ``(A) whose native language is a language other 
                than English; or
                    ``(B) who lives in a family or community 
                environment where a language other than English is the 
                dominant language;
            ``(7) the term `institution of higher education' means any 
        such institution as defined by section 1201(a) of the Higher 
        Education Act of 1965;
            ``(8) 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;
            ``(9) the term `local educational agency' means a public 
        board of education or other public authority legally 
        constituted within a State for either administrative control or 
        direction of, or to perform a service function for, public 
        elementary or secondary schools in a city, county, township, 
        school district, or other political subdivision of a State, or 
        such combination of school districts or counties as are 
        recognized in a State as an administrative agency for its 
        public elementary or secondary schools, except that, if there 
        is a separate board or other legally constituted local 
        authority having administrative control and direction of adult 
        education in public schools therein, such term means such other 
        board or authority;
            ``(10) the term `migratory family' means a family with a 
        migratory child as defined in section 1309(2) of the Elementary 
        and Secondary Education Act of 1965;
            ``(11) the term `public housing authority' means a public 
        housing agency, as defined in 42 U.S.C. 1437a(b)(6), that 
        participates in public housing, as defined in 42 U.S.C. 
        1437a(b)(1).
            ``(12) except under section 301, the term `Secretary' means 
        the Secretary of Education; and
            ``(13) except as provided in section 111(a)(2)(B), the term 
        `State' means each of the 50 States and the District of 
        Columbia, the Commonwealth of Puerto Rico, Guam, American 
        Samoa, the Northern Mariana Islands, and the Virgin Islands.''.

                  TITLE II--EFFECTIVE DATE; TRANSITION

                             effective date

    Sec. 201. This Act shall take effect on July 1, 1996.

                               transition

    Sec. 202. Notwithstanding any other provisions of law--
            (1) upon enactment of the Adult Education and Family 
        Literacy Reform Act of 1995, a State or local recipient of 
        funds under the Adult Education Act, the Even Start Family 
        Literacy Programs of the Elementary and Secondary Education Act 
        of 1965, and sections 202(c)(1)(C) and 262(c)(1)(C) of the Job 
        Training Partnership Act, as they were in effect prior to the 
        enactment of the Adult Education and Family Literacy Reform Act 
        of 1995, may use any such unexpended funds to carry out 
        services and activities that are authorized by those statutes 
        or the Adult Education and Family Literacy Act; and
            (2) a State or local recipient of funds under the Adult 
        Education and Family Literacy Act for the fiscal year 1996 may 
        use such funds to carry out services and activities that are 
        authorized by either such Act or were authorized by the Adult 
        Education Act, the Even Start Family Literacy Programs of the 
        Elementary and Secondary Education Act of 1965, and sections 
        202(c)(1)(C) and 262(c)(1)(C) of the Job Training Partnership 
        Act, as they were in effect prior to the enactment of the Adult 
        Education and Family Literacy Reform Act of 1995.

                    TITLE III--REPEALS OF OTHER ACTS

                                repeals

    Sec. 301 (a) Even Start.--Part B of title I of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6361 et seq.) is repealed.
    (b) National Literacy Act.--The National Literacy Act of 1991 (20 
U.S.C. 1201 et seq.) is repealed.
    (c) Grants to States for Workplace and Community Transition 
Training for Incarcerated Youth Offenders.--Part E of title X of the 
Higher Education Act of 1965 (20 U.S.C. 1135g) is repealed.
                                 <all>
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