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‘‘(B) LEVELS OF EMPLOYMENT PERFORM-
ANCE.—The eligible agency shall identify, in the 
State plan, eligible agency levels of performance 
for each of the employment performance indica-
tors described in paragraph (2)(B). Such levels 
shall be considered to be eligible agency ad-
justed levels of performance for purposes of this 
title. 
‘‘(c) REPORT.— 
‘‘(1) IN GENERAL.—Each eligible agency that 
receives a grant under section 211(b) shall annually 
prepare and submit to the Secretary, the Governor, 
the State legislature, and eligible providers a report 
on the progress of the eligible agency in achieving el-
igible agency performance measures, including the 
following: 
‘‘(A) Information on the levels of perform-
ance achieved by the eligible agency with re-
spect to the core indicators of performance and 
employment performance indicators. 
‘‘(B) The number and type of each eligible 
provider that receives funding under such 
grant. 
‘‘(2) INFORMATION DISSEMINATION.—The Sec-
retary—
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‘‘(A) shall make the information contained 
in such reports available to the general public 
through publication (including on the Internet 
site of the Department of Education) and other 
appropriate methods; 
‘‘(B) shall disseminate State-by-State com-
parisons of the information; and 
‘‘(C) shall provide the appropriate commit-
tees of the Congress with copies of such re-
ports. 
‘‘SEC. 213. INCENTIVE GRANTS FOR STATES. 
‘‘(a) IN GENERAL.—From funds appropriated under 
section 211(a)(1), the Secretary may award grants to 
States for exemplary performance in carrying out pro-
grams under this title. Such awards shall be based on 
States exceeding the core indicators of performance estab-
lished under section 212(b)(2)(A) and may be based on 
the performance of the State in serving populations, such 
as those described in section 224(b)(10), including the lev-
els of service provided and the performance outcomes, and 
such other factors relating to the performance of the State 
under this title as the Secretary determines appropriate. 
‘‘(b) USE OF FUNDS.—The funds awarded to a State 
under this paragraph may be used to carry out any activi-
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ties authorized under this title, including demonstrations 
and innovative programs for hard-to-serve populations. 
‘‘CHAPTER 2—STATE PROVISIONS 
‘‘SEC. 221. STATE ADMINISTRATION. 
‘‘Each eligible agency shall be responsible for the fol-
lowing activities under this title: 
‘‘(1) The development, submission, implementa-
tion, and monitoring of the State plan. 
‘‘(2) Consultation with other appropriate agen-
cies, groups, and individuals that are involved in, or 
interested in, the development and implementation 
of activities assisted under this title. 
‘‘(3) Coordination and avoidance of duplication 
with other Federal and State education, training, 
corrections, public housing, and social service pro-
grams. 
‘‘SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING RE-
QUIREMENT. 
‘‘(a) STATE DISTRIBUTION OF FUNDS.—Each eligi-
ble agency receiving a grant under this title for a fiscal 
year— 
‘‘(1) shall use an amount not less than 82.5 
percent of the grant funds to award grants and con-
tracts under section 231 and to carry out section
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225, of which not more than 10 percent of such 
amount shall be available to carry out section 225; 
‘‘(2) shall use not more than 12.5 percent of 
the grant funds to carry out State leadership activi-
ties under section 223; and 
‘‘(3) shall use not more than 5 percent of the 
grant funds, or $75,000, whichever is greater, for 
the administrative expenses of the eligible agency. 
‘‘(b) MATCHING REQUIREMENT.— 
‘‘(1) IN GENERAL.—In order to receive a grant 
from the Secretary under section 211(b), each eligi-
ble agency shall provide, for the costs to be incurred 
by the eligible agency in carrying out the adult edu-
cation, basic skills, and family literacy education 
programs for which the grant is awarded, a non- 
Federal contribution in an amount at least equal 
to— 
‘‘(A) in the case of an eligible agency serv-
ing an outlying area, 12 percent of the total 
amount of funds expended for adult education, 
basic skills, and family literacy education pro-
grams in the outlying area, except that the Sec-
retary may decrease the amount of funds re-
quired under this subparagraph for an eligible 
agency; and
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‘‘(B) in the case of an eligible agency serv-
ing a State, 25 percent of the total amount of 
funds expended for adult education, basic skills, 
and family literacy education programs in the 
State. 
‘‘(2) NON-FEDERAL CONTRIBUTION.—An eligi-
ble agency’s non-Federal contribution required under 
paragraph (1) may be provided in cash or in kind, 
fairly evaluated, and shall include only non-Federal 
funds that are used for adult education, basic skills, 
and family literacy education programs in a manner 
that is consistent with the purpose of this title. 
‘‘SEC. 223. STATE LEADERSHIP ACTIVITIES. 
‘‘(a) IN GENERAL.—Each eligible agency may use 
funds made available under section 222(a)(2) for any of 
the following adult education, basic skills, and family lit-
eracy education programs: 
‘‘(1) The establishment or operation of profes-
sional development programs to improve the quality 
of instruction provided pursuant to local activities 
required under section 231(b), including instruction 
incorporating the essential components of reading 
instruction and instruction provided by volunteers or 
by personnel of a State or outlying area.
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‘‘(2) The provision of technical assistance to eli-
gible providers of adult education, basic skills, and 
family literacy education programs, including for the 
development and dissemination of scientifically based 
research instructional practices in reading, writing, 
speaking, math, and English language acquisition 
programs. 
‘‘(3) The provision of assistance to eligible pro-
viders in developing, implementing, and reporting 
measurable progress in achieving the objectives of 
this title. 
‘‘(4) The provision of technology assistance, in-
cluding staff training, to eligible providers of adult 
education, basic skills, and family literacy education 
programs, including distance learning activities, to 
enable the eligible providers to improve the quality 
of such activities. 
‘‘(5) The development and implementation of 
technology applications or distance learning, includ-
ing professional development to support the use of 
instructional technology. 
‘‘(6) Coordination with other public programs, 
including welfare-to-work, workforce development, 
and job training programs.