H. R. 1385—124
(3) The Displaced Homemakers Self-Sufficiency Assistance
Act (29 U.S.C. 2301 et seq.).
(4) Section 211 of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 211).
(5) Subtitle C of title VII of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11441 et seq.), except sec-
tion 738 of such title (42 U.S.C. 11448).
(6) Subchapter I of chapter 421 of title 49, United States
Code.
(b) SUBSEQUENT
REPEALS.—The following provisions are
repealed:
(1) Title VII of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11421 et seq.), except subtitle B and section
738 of such title (42 U.S.C. 11431 et seq. and 11448).
(2) The Job Training Partnership Act (29 U.S.C. 1501 et
seq.).
(c) EFFECTIVE DATES.—
(1) IMMEDIATE REPEALS.—The repeals made by subsection
(a) shall take effect on the date of enactment of this Act.
(2) SUBSEQUENT REPEALS.—
(A) STEWART
B. 
MCKINNEY
HOMELESS
ASSISTANCE
ACT.—The repeal made by subsection (b)(1) shall take effect
on July 1, 1999.
(B) JOB TRAINING PARTNERSHIP ACT.—The repeal made
by subsection (b)(2) shall take effect on July 1, 2000.
SEC. 199A. CONFORMING AMENDMENTS.
(a) PREPARATION.—After consultation with the appropriate
committees of Congress and the Director of the Office of Manage-
ment and Budget, the Secretary shall prepare recommended legisla-
tion containing technical and conforming amendments to reflect
the changes made by this subtitle.
(b) SUBMISSION TO CONGRESS.—Not later than 6 months after
the date of enactment of this Act, the Secretary shall submit to
Congress the recommended legislation referred to under subsection
(a).
(c) REFERENCES.—All references in any other provision of law
to a provision of the Comprehensive Employment and Training
Act, or of the Job Training Partnership Act, as the case may
be, shall be deemed to refer to the corresponding provision of
this title.
TITLE II—ADULT EDUCATION AND
LITERACY
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Adult Education and Family
Literacy Act’’.
SEC. 202. PURPOSE.
It is the purpose of this title to create a partnership among
the Federal Government, States, and localities to provide, on a
voluntary basis, adult education and literacy services, in order
to—
(1) assist adults to become literate and obtain the knowl-
edge and skills necessary for employment and self-sufficiency;
H. R. 1385—125
(2) assist adults who are parents to obtain the educational
skills necessary to become full partners in the educational
development of their children; and
(3) assist adults in the completion of a secondary school
education.
SEC. 203. DEFINITIONS.
In this subtitle:
(1) ADULT EDUCATION.—The term ‘‘adult education’’ means
services or instruction below the postsecondary level for individ-
uals—
(A) who have attained 16 years of age;
(B) who are not enrolled or required to be enrolled
in secondary school under State law; and
(C) who—
(i) lack sufficient mastery of basic educational
skills to enable the individuals to function effectively
in society;
(ii) do not have a secondary school diploma or
its recognized equivalent, and have not achieved an
equivalent level of education; or
(iii) are unable to speak, read, or write the English
language.
(2) ADULT EDUCATION AND LITERACY ACTIVITIES.—The term
‘‘adult education and literacy activities’’ means activities
described in section 231(b).
(3) EDUCATIONAL SERVICE AGENCY.—The term ‘‘educational
service agency’’ means a regional public multiservice agency
authorized by State statute to develop and manage a service
or program, and to provide the service or program to a local
educational agency.
(4) ELIGIBLE AGENCY.—The term ‘‘eligible agency’’ means
the sole entity or agency in a State or an outlying area respon-
sible for administering or supervising policy for adult education
and literacy in the State or outlying area, respectively, consist-
ent with the law of the State or outlying area, respectively.
(5) ELIGIBLE
PROVIDER.—The term ‘‘eligible provider’’
means—
(A) a local educational agency;
(B) a community-based organization of demonstrated
effectiveness;
(C) a volunteer literacy organization of demonstrated
effectiveness;
(D) an institution of higher education;
(E) a public or private nonprofit agency;
(F) a library;
(G) a public housing authority;
(H) a nonprofit institution that is not described in
any of subparagraphs (A) through (G) and has the ability
to provide literacy services to adults and families; and
(I) a consortium of the agencies, organizations, institu-
tions, libraries, or authorities described in any of subpara-
graphs (A) through (H).
(6) ENGLISH LITERACY PROGRAM.—The term ‘‘English lit-
eracy program’’ means a program of instruction designed to
help individuals of limited English proficiency achieve com-
petence in the English language.
H. R. 1385—126
(7) FAMILY LITERACY SERVICES.—The term ‘‘family literacy
services’’ means services that are of sufficient intensity in terms
of hours, and of sufficient duration, to make sustainable
changes in a family, and that integrate all of the following
activities:
(A) Interactive literacy activities between parents and
their children.
(B) Training for parents regarding how to be the pri-
mary teacher for their children and full partners in the
education of their children.
(C) Parent literacy training that leads to economic
self-sufficiency.
(D) An age-appropriate education to prepare children
for success in school and life experiences.
(8) GOVERNOR.—The term ‘‘Governor’’ means the chief
executive officer of a State or outlying area.
(9) INDIVIDUAL WITH A DISABILITY.—
(A) IN GENERAL.—The term ‘‘individual with a disabil-
ity’’ means an individual with any disability (as defined
in section 3 of the Americans with Disabilities Act of 1990
(42 U.S.C. 12102)).
(B) 
INDIVIDUALS
WITH
DISABILITIES.—The 
term
‘‘individuals with disabilities’’ means more than one individ-
ual with a disability.
(10) INDIVIDUAL OF LIMITED ENGLISH PROFICIENCY.—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 lan-
guage.
(11) INSTITUTION
OF
HIGHER
EDUCATION.—The term
‘‘institution of higher education’’ has the meaning given the
term in section 1201 of the Higher Education Act of 1965
(20 U.S.C. 1141).
(12) LITERACY.—The term ‘‘literacy’’ means an individual’s
ability to read, write, and speak in English, compute, and
solve problems, at levels of proficiency necessary to function
on the job, in the family of the individual, and in society.
(13) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local edu-
cational agency’’ has the meaning given the term in section
14101 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 8801).
(14) OUTLYING AREA.—The term ‘‘outlying area’’ has the
meaning given the term in section 101.
(15) POSTSECONDARY EDUCATIONAL INSTITUTION.—The term
‘‘postsecondary educational institution’’ means—
(A) an institution of higher education that provides
not less than a 2-year program of instruction that is accept-
able for credit toward a bachelor’s degree;
(B) a tribally controlled community college; or
(C) a nonprofit educational institution offering certifi-
cate or apprenticeship programs at the postsecondary level.
(16) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means 
the
Secretary of Education.
H. R. 1385—127
(17) STATE.—The term ‘‘State’’ means each of the several
States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.
(18) WORKPLACE LITERACY SERVICES.—The term ‘‘workplace
literacy services’’ means literacy services that are offered for
the purpose of improving the productivity of the workforce
through the improvement of literacy skills.
SEC. 204. HOME SCHOOLS.
Nothing in this subtitle shall be construed to affect home
schools, or to compel a parent engaged in home schooling to partici-
pate in an English literacy program, family literacy services, or
adult education.
SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this subtitle
such sums as may be necessary for each of the fiscal years 1999
through 2003.
Subtitle A—Adult Education and Literacy
Programs
CHAPTER 1—FEDERAL PROVISIONS
SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.
(a) RESERVATION OF FUNDS.—From the sum appropriated under
section 205 for a fiscal year, the Secretary—
(1) shall reserve 1.5 percent to carry out section 242, except
that the amount so reserved shall not exceed $8,000,000;
(2) shall reserve 1.5 percent to carry out section 243, except
that the amount so reserved shall not exceed $8,000,000; and
(3) shall make available, to the Secretary of Labor, 1.72
percent for incentive grants under section 503.
(b) GRANTS TO ELIGIBLE AGENCIES.—
(1) IN GENERAL.—From the sum appropriated under section
205 and not reserved under subsection (a) for a fiscal year,
the Secretary shall award a grant to each eligible agency having
a State plan approved under section 224 in an amount equal
to the sum of the initial allotment under subsection (c)(1)
and the additional allotment under subsection (c)(2) for the
eligible agency for the fiscal year, subject to subsections (f )
and (g), to enable the eligible agency to carry out the activities
assisted under this subtitle.
(2) PURPOSE OF GRANTS.—The Secretary may award a grant
under paragraph (1) only if the eligible entity involved agrees
to expend the grant for adult education and literacy activities
in accordance with the provisions of this subtitle.
(c) ALLOTMENTS.—
(1) INITIAL
ALLOTMENTS.—From the sum appropriated
under section 205 and not reserved under subsection (a) for
a fiscal year, the Secretary shall allot to each eligible agency
having a State plan approved under section 224(f )—
(A) $100,000, in the case of an eligible agency serving
an outlying area; and
(B) $250,000, in the case of any other eligible agency.
H. R. 1385—128
(2) ADDITIONAL ALLOTMENTS.—From the sum appropriated
under section 205, not reserved under subsection (a), and not
allotted under paragraph (1), for a fiscal year, the Secretary
shall allot to each eligible agency that receives an initial allot-
ment under paragraph (1) an additional amount that bears
the same relationship to such sum as the number of qualifying
adults in the State or outlying area served by the eligible
agency bears to the number of such adults in all States and
outlying areas.
(d) QUALIFYING ADULT.—For the purpose of subsection (c)(2),
the term ‘‘qualifying adult’’ means an adult who—
(1) is at least 16 years of age, but less than 61 years
of age;
(2) is beyond the age of compulsory school attendance under
the law of the State or outlying area;
(3) does not have a secondary school diploma or its recog-
nized equivalent; and
(4) is not enrolled in secondary school.
(e) SPECIAL RULE.—
(1) IN GENERAL.—From amounts made available under sub-
section (c) for the Republic of the Marshall Islands, the Fed-
erated States of Micronesia, and the Republic of Palau, the
Secretary shall award grants to Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Republic
of the Marshall Islands, the Federated States of Micronesia,
or the Republic of Palau to carry out activities described in
this subtitle in accordance with the provisions of this subtitle
that the Secretary determines are not inconsistent with this
subsection.
(2) AWARD BASIS.—The Secretary shall award grants pursu-
ant to paragraph (1) on a competitive basis and pursuant
to recommendations from the Pacific Region Educational Lab-
oratory in Honolulu, Hawaii.
(3) TERMINATION
OF
ELIGIBILITY.—Notwithstanding any
other provision of law, the Republic of the Marshall Islands,
the Federated States of Micronesia, and the Republic of Palau
shall not receive any funds under this subtitle for any fiscal
year that begins after September 30, 2001.
(4) ADMINISTRATIVE
COSTS.—The Secretary may provide
not more than 5 percent of the funds made available for grants
under this subsection to pay the administrative costs of the
Pacific Region Educational Laboratory regarding activities
assisted under this subsection.
(f ) HOLD-HARMLESS.—
(1) IN GENERAL.—Notwithstanding subsection (c)—
(A) for fiscal year 1999, no eligible agency shall receive
an allotment under this subtitle that is less than 90 percent
of the payments made to the State or outlying area of
the eligible agency for fiscal year 1998 for programs for
which funds were authorized to be appropriated under
section 313 of the Adult Education Act (as such Act was
in effect on the day before the date of the enactment
of the Workforce Investment Act of 1998); and
(B) for fiscal year 2000 and each succeeding fiscal
year, no eligible agency shall receive an allotment under
this subtitle that is less than 90 percent of the allotment
H. R. 1385—129
the eligible agency received for the preceding fiscal year
under this subtitle.
(2) RATABLE REDUCTION.—If for any fiscal year the amount
available for allotment under this subtitle is insufficient to
satisfy the provisions of paragraph (1), the Secretary shall
ratably reduce the payments to all eligible agencies, as nec-
essary.
(g) REALLOTMENT.—The portion of any eligible agency’s allot-
ment under this subtitle for a fiscal year that the Secretary deter-
mines will not be required for the period such allotment is available
for carrying out activities under this subtitle, shall be available
for reallotment from time to time, on such dates during such period
as the Secretary shall fix, to other eligible agencies in proportion
to the original allotments to such agencies under this subtitle
for such year.
SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) PURPOSE.—The purpose of this section is to establish a
comprehensive performance accountability system, comprised of the
activities described in this section, to assess the effectiveness of
eligible agencies in achieving continuous improvement of adult edu-
cation and literacy activities funded under this subtitle, in order
to optimize the return on investment of Federal funds in adult
education and literacy activities.
(b) ELIGIBLE AGENCY PERFORMANCE MEASURES.—
(1) IN
GENERAL.—For each eligible agency, the eligible
agency performance measures shall consist of—
(A)(i) the core indicators of performance described in
paragraph (2)(A); and
(ii) additional indicators of performance (if any) identi-
fied by the eligible agency under paragraph (2)(B); and
(B) an eligible agency adjusted level of performance
for each indicator described in subparagraph (A).
(2) INDICATORS OF PERFORMANCE.—
(A) CORE
INDICATORS
OF
PERFORMANCE.—The core
indicators of performance shall include the following:
(i) Demonstrated improvements in literacy skill
levels in reading, writing, and speaking the English
language, numeracy, problem solving, English lan-
guage acquisition, and other literacy skills.
(ii) Placement in, retention in, or completion of,
postsecondary 
education, 
training, 
unsubsidized
employment or career advancement.
(iii) Receipt of a secondary school diploma or its
recognized equivalent.
(B) ADDITIONAL INDICATORS.—An eligible agency may
identify in the State plan additional indicators for adult
education and literacy activities authorized under this sub-
title.
(3) LEVELS OF PERFORMANCE.—
(A) ELIGIBLE AGENCY ADJUSTED LEVELS OF PERFORM-
ANCE FOR CORE INDICATORS.—
(i) IN GENERAL.—For each eligible agency submit-
ting a State plan, there shall be established, in accord-
ance with this subparagraph, levels of performance
for each of the core indicators of performance described
in paragraph (2)(A) for adult education and literacy
H. R. 1385—130
activities authorized under this subtitle. The levels
of performance established under this subparagraph
shall, at a minimum—
(I) be expressed in an objective, quantifiable,
and measurable form; and
(II) show the progress of the eligible agency
toward continuously improving in performance.
(ii) IDENTIFICATION IN STATE PLAN.—Each eligible
agency shall identify, in the State plan submitted
under section 224, expected levels of performance for
each of the core indicators of performance for the first
3 program years covered by the State plan.
(iii) AGREEMENT
ON
ELIGIBLE
AGENCY
ADJUSTED
LEVELS OF PERFORMANCE FOR FIRST 3 YEARS.—In order
to ensure an optimal return on the investment of Fed-
eral funds in adult education and literacy activities
authorized under this subtitle, the Secretary and each
eligible agency shall reach agreement on levels of
performance for each of the core indicators of perform-
ance, for the first 3 program years covered by the
State plan, taking into account the levels identified
in the State plan under clause (ii) and the factors
described in clause (iv). The levels agreed to under
this clause shall be considered to be the eligible agency
adjusted levels of performance for the eligible agency
for such years and shall be incorporated into the State
plan prior to the approval of such plan.
(iv) FACTORS.—The agreement described in clause
(iii) or (v) shall take into account—
(I) how the levels involved compare with the
eligible agency adjusted levels of performance
established for other eligible agencies, taking into
account factors including the characteristics of
participants when the participants entered the pro-
gram, and the services or instruction to be pro-
vided; and
(II) the extent to which such levels involved
promote continuous improvement in performance
on the performance measures by such eligible
agency and ensure optimal return on the invest-
ment of Federal funds.
(v) AGREEMENT
ON
ELIGIBLE
AGENCY
ADJUSTED
LEVELS OF PERFORMANCE FOR 4TH AND 5TH YEARS.—
Prior to the fourth program year covered by the State
plan, the Secretary and each eligible agency shall reach
agreement on levels of performance for each of the
core indicators of performance for the fourth and fifth
program years covered by the State plan, taking into
account the factors described in clause (iv). The levels
agreed to under this clause shall be considered to
be the eligible agency adjusted levels of performance
for the eligible agency for such years and shall be
incorporated into the State plan.
(vi) REVISIONS.—If unanticipated circumstances
arise in a State resulting in a significant change in
the factors described in clause (iv)(II), the eligible
agency may request that the eligible agency adjusted
H. R. 1385—131
levels of performance agreed to under clause (iii) or
(v) be revised. The Secretary, after collaboration with
the representatives described in section 136( j), shall
issue objective criteria and methods for making such
revisions.
(B) LEVELS OF PERFORMANCE FOR ADDITIONAL INDICA-
TORS.—The eligible agency may identify, in the State plan,
eligible agency levels of performance for each of the addi-
tional indicators described in paragraph (2)(B). Such levels
shall be considered to be eligible agency adjusted levels
of performance for purposes of this subtitle.
(c) REPORT.—
(1) IN GENERAL.—Each eligible agency that receives a grant
under section 211(b) shall annually prepare and submit to
the Secretary a report on the progress of the eligible agency
in achieving eligible agency performance measures, including
information on the levels of performance achieved by the eligible
agency with respect to the core indicators of performance.
(2) INFORMATION DISSEMINATION.—The Secretary—
(A) shall make the information contained in such
reports available to the general public through publication
and other appropriate methods;
(B) shall disseminate State-by-State comparisons of the
information; and
(C) shall provide the appropriate committees of
Congress with copies of such reports.
CHAPTER 2—STATE PROVISIONS
SEC. 221. STATE ADMINISTRATION.
Each eligible agency shall be responsible for the State or
outlying area administration of activities under this subtitle, includ-
ing—
(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 activities assisted under
this subtitle; and
(3) coordination and nonduplication with other Federal and
State education, training, corrections, public housing, and social
service programs.
SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
(a) STATE
DISTRIBUTION
OF
FUNDS.—Each eligible agency
receiving a grant under this subtitle for a fiscal year—
(1) shall use not less than 82.5 percent of the grant funds
to award grants and contracts under section 231 and to carry
out section 225, of which not more than 10 percent of the
82.5 percent 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 activities under section
223; and
(3) shall use not more than 5 percent of the grant funds,
or $65,000, whichever is greater, for the administrative
expenses of the eligible agency.
(b) MATCHING REQUIREMENT.—
H. R. 1385—132
(1) IN
GENERAL.—In order to receive a grant from the
Secretary under section 211(b) each eligible agency shall pro-
vide, for the costs to be incurred by the eligible agency in
carrying out the adult education and literacy activities for
which the grant is awarded, a non-Federal contribution in
an amount equal to—
(A) in the case of an eligible agency serving an outlying
area, 12 percent of the total amount of funds expended
for adult education and literacy activities in the outlying
area, except that the Secretary may decrease the amount
of funds required under this subparagraph for an eligible
agency; and
(B) in the case of an eligible agency serving a State,
25 percent of the total amount of funds expended for adult
education and literacy activities in the State.
(2) NON-FEDERAL CONTRIBUTION.—An eligible agency’s non-
Federal contribution required under paragraph (1) may be pro-
vided in cash or in kind, fairly evaluated, and shall include
only non-Federal funds that are used for adult education and
literacy activities in a manner that is consistent with the pur-
pose of this subtitle.
SEC. 223. STATE LEADERSHIP ACTIVITIES.
(a) IN GENERAL.—Each eligible agency shall use funds made
available under section 222(a)(2) for one or more of the following
adult education and literacy activities:
(1) The establishment or operation of professional develop-
ment programs to improve the quality of instruction provided
pursuant to local activities required under section 231(b),
including 
instruction 
incorporating 
phonemic 
awareness,
systematic phonics, fluency, and reading comprehension, and
instruction provided by volunteers or by personnel of a State
or outlying area.
(2) The provision of technical assistance to eligible provid-
ers of adult education and literacy activities.
(3) The provision of technology assistance, including staff
training, to eligible providers of adult education and literacy
activities to enable the eligible providers to improve the quality
of such activities.
(4) The support of State or regional networks of literacy
resource centers.
(5) The monitoring and evaluation of the quality of, and
the improvement in, adult education and literacy activities.
(6) Incentives for—
(A) program coordination and integration; and
(B) performance awards.
(7) Developing and disseminating curricula, including
curricula 
incorporating 
phonemic 
awareness, 
systematic
phonics, fluency, and reading comprehension.
(8) Other activities of statewide significance that promote
the purpose of this title.
(9) Coordination with existing support services, such as
transportation, child care, and other assistance designed to
increase rates of enrollment in, and successful completion of,
adult education and literacy activities, to adults enrolled in
such activities.
H. R. 1385—133
(10) Integration of literacy instruction and occupational
skill training, and promoting linkages with employers.
(11) Linkages with postsecondary educational institutions.
(b) COLLABORATION.—In carrying out this section, eligible agen-
cies shall collaborate where possible, and avoid duplicating efforts,
in order to maximize the impact of the activities described in
subsection (a).
(c) STATE-IMPOSED REQUIREMENTS.—Whenever a State or outly-
ing area implements any rule or policy relating to the administra-
tion or operation of a program authorized under this subtitle that
has the effect of imposing a requirement that is not imposed under
Federal law (including any rule or policy based on a State or
outlying area interpretation of a Federal statute, regulation, or
guideline), the State or outlying area shall identify, to eligible
providers, the rule or policy as being State- or outlying area-
imposed.
SEC. 224. STATE PLAN.
(a) 5-YEAR PLANS.—
(1) IN
GENERAL.—Each eligible agency desiring a grant
under this subtitle for any fiscal year shall submit to, or have
on file with, the Secretary a 5-year State plan.
(2) COMPREHENSIVE
PLAN
OR
APPLICATION.—The eligible
agency may submit the State plan as part of a comprehensive
plan or application for Federal education assistance.
(b) PLAN CONTENTS.—In developing the State plan, and any
revisions to the State plan, the eligible agency shall include in
the State plan or revisions—
(1) an objective assessment of the needs of individuals
in the State or outlying area for adult education and literacy
activities, including individuals most in need or hardest to
serve;
(2) a description of the adult education and literacy activi-
ties that will be carried out with any funds received under
this subtitle;
(3) a description of how the eligible agency will evaluate
annually the effectiveness of the adult education and literacy
activities based on the performance measures described in sec-
tion 212;
(4) a description of the performance measures described
in section 212 and how such performance measures will ensure
the improvement of adult education and literacy activities in
the State or outlying area;
(5) an assurance that the eligible agency will award not
less than one grant under this subtitle to an eligible provider
who offers flexible schedules and necessary support services
(such as child care and transportation) to enable individuals,
including individuals with disabilities, or individuals with other
special needs, to participate in adult education and literacy
activities, which eligible provider shall attempt to coordinate
with support services that are not provided under this subtitle
prior to using funds for adult education and literacy activities
provided under this subtitle for support services;
(6) an assurance that the funds received under this subtitle
will not be expended for any purpose other than for activities
under this subtitle;
H. R. 1385—134
(7) a description of how the eligible agency will fund local
activities in accordance with the considerations described in
section 231(e);
(8) an assurance that the eligible agency will expend the
funds under this subtitle only in a manner consistent with
fiscal requirements in section 241;
(9) a description of the process that will be used for public
participation and comment with respect to the State plan;
(10) a description of how the eligible agency will develop
program strategies for populations that include, at a mini-
mum—
(A) low-income students;
(B) individuals with disabilities;
(C) single parents and displaced homemakers; and
(D) individuals with multiple barriers to educational
enhancement, including individuals with limited English
proficiency;
(11) a description of how the adult education and literacy
activities that will be carried out with any funds received
under this subtitle will be integrated with other adult edu-
cation, career development, and employment and training
activities in the State or outlying area served by the eligible
agency; and
(12) a description of the steps the eligible agency will
take to ensure direct and equitable access, as required in section
231(c)(1).
(c) PLAN REVISIONS.—When changes in conditions or other fac-
tors require substantial revisions to an approved State plan, the
eligible agency shall submit the revisions to the State plan to
the Secretary.
(d) CONSULTATION.—The eligible agency shall—
(1) submit the State plan, and any revisions to the State
plan, to the Governor of the State or outlying area for review
and comment; and
(2) ensure that any comments by the Governor regarding
the State plan, and any revision to the State plan, are submit-
ted to the Secretary.
(e) PEER REVIEW.—The Secretary shall establish a peer review
process to make recommendations regarding the approval of State
plans.
(f ) PLAN APPROVAL.—A State plan submitted to the Secretary
shall be approved by the Secretary unless the Secretary makes
a written determination, within 90 days after receiving the plan,
that the plan is inconsistent with the specific provisions of this
subtitle.
SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
(a) PROGRAM AUTHORIZED.—From funds made available under
section 222(a)(1) for a fiscal year, each eligible agency shall carry
out corrections education or education for other institutionalized
individuals.
(b) USES OF FUNDS.—The funds described in subsection (a)
shall be used for the cost of educational programs for criminal
offenders in correctional institutions and for other institutionalized
individuals, including academic programs for—
(1) basic education;
H. R. 1385—135
(2) special education programs as determined by the eligible
agency;
(3) English literacy programs; and
(4) secondary school credit programs.
(c) PRIORITY.—Each eligible agency that is using assistance
provided under this section to carry out a program for criminal
offenders in a correctional institution shall give priority to serving
individuals who are likely to leave the correctional institution with
5 years of participation in the program.
(d) DEFINITION OF CRIMINAL OFFENDER.—
(1) CRIMINAL
OFFENDER.—The term ‘‘criminal offender’’
means any individual who is charged with or convicted of
any criminal offense.
(2) CORRECTIONAL
INSTITUTION.—The term ‘‘correctional
institution’’ means any—
(A) prison;
(B) jail;
(C) reformatory;
(D) work farm;
(E) detention center; or
(F) halfway house, community-based rehabilitation
center, or any other similar institution designed for the
confinement or rehabilitation of criminal offenders.
CHAPTER 3—LOCAL PROVISIONS
SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
(a) GRANTS AND CONTRACTS.—From grant funds made available
under section 211(b), each eligible agency shall award multiyear
grants or contracts, on a competitive basis, to eligible providers
within the State or outlying area to enable the eligible providers
to develop, implement, and improve adult education and literacy
activities within the State.
(b) REQUIRED LOCAL ACTIVITIES.—The eligible agency shall
require that each eligible provider receiving a grant or contract
under subsection (a) use the grant or contract to establish or operate
one or more programs that provide services or instruction in one
or more of the following categories:
(1) Adult education and literacy services, including work-
place literacy services.
(2) Family literacy services.
(3) English literacy programs.
(c) DIRECT
AND EQUITABLE ACCESS; SAME PROCESS.—Each
eligible agency receiving funds under this subtitle shall ensure
that—
(1) all eligible providers have direct and equitable access
to apply for grants or contracts under this section; and
(2) the same grant or contract announcement process and
application process is used for all eligible providers in the
State or outlying area.
(d) SPECIAL RULE.—Each eligible agency awarding a grant or
contract under this section shall not use any funds made available
under this subtitle for adult education and literacy activities for
the purpose of supporting or providing programs, services, or activi-
ties for individuals who are not individuals described in subpara-
graphs (A) and (B) of section 203(1), except that such agency may
use such funds for such purpose if such programs, services, or
H. R. 1385—136
activities are related to family literacy services. In providing family
literacy services under this subtitle, an eligible provider shall
attempt to coordinate with programs and services that are not
assisted under this subtitle prior to using funds for adult education
and literacy activities under this subtitle for activities other than
adult education activities.
(e) CONSIDERATIONS.—In awarding grants or contracts under
this section, the eligible agency shall consider—
(1) the degree to which the eligible provider will establish
measurable goals for participant outcomes;
(2) the past effectiveness of an eligible provider in improv-
ing the literacy skills of adults and families, and, after the
1-year period beginning with the adoption of an eligible agency’s
performance measures under section 212, the success of an
eligible provider receiving funding under this subtitle in meet-
ing or exceeding such performance measures, especially with
respect to those adults with the lowest levels of literacy;
(3) the commitment of the eligible provider to serve individ-
uals in the community who are most in need of literacy services,
including individuals who are low-income or have minimal
literacy skills;
(4) whether or not the program—
(A) is of sufficient intensity and duration for partici-
pants to achieve substantial learning gains; and
(B) uses instructional practices, such as phonemic
awareness, systematic phonics, fluency, and reading com-
prehension that research has proven to be effective in
teaching individuals to read;
(5) whether the activities are built on a strong foundation
of research and effective educational practice;
(6) whether the activities effectively employ advances in
technology, as appropriate, including the use of computers;
(7) whether the activities provide learning in real life con-
texts to ensure that an individual has the skills needed to
compete in the workplace and exercise the rights and respon-
sibilities of citizenship;
(8) whether the activities are staffed by well-trained
instructors, counselors, and administrators;
(9) whether the activities coordinate with other available
resources in the community, such as by establishing strong
links with elementary schools and secondary schools, post-
secondary educational institutions, one-stop centers, job train-
ing programs, and social service agencies;
(10) whether the activities offer flexible schedules and sup-
port services (such as child care and transportation) that are
necessary to enable individuals, including individuals with
disabilities or other special needs, to attend and complete pro-
grams;
(11) whether the activities maintain a high-quality informa-
tion management system that has the capacity to report partici-
pant outcomes and to monitor program performance against
the eligible agency performance measures; and
(12) whether the local communities have a demonstrated
need for additional English literacy programs.
H. R. 1385—137
SEC. 232. LOCAL APPLICATION.
Each eligible provider desiring a grant or contract under this
subtitle shall submit an application to the eligible agency containing
such information and assurances as the eligible agency may require,
including—
(1) a description of how funds awarded under this subtitle
will be spent; and
(2) a description of any cooperative arrangements the
eligible provider has with other agencies, institutions, or
organizations for the delivery of adult education and literacy
activities.
SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
(a) IN GENERAL.—Subject to subsection (b), of the amount that
is made available under this subtitle to an eligible provider—
(1) not less than 95 percent shall be expended for carrying
out adult education and literacy activities; and
(2) the remaining amount, not to exceed 5 percent, shall
be used for planning, administration, personnel development,
and interagency coordination.
(b) SPECIAL RULE.—In cases where the cost limits described
in subsection (a) are too restrictive to allow for adequate planning,
administration, personnel development, and interagency coordina-
tion, the eligible provider shall negotiate with the eligible agency
in order to determine an adequate level of funds to be used for
noninstructional purposes.
CHAPTER 4—GENERAL PROVISIONS
SEC. 241. ADMINISTRATIVE PROVISIONS.
(a) SUPPLEMENT NOT SUPPLANT.—Funds made available for
adult education and literacy activities under this subtitle shall
supplement and not supplant other State or local public funds
expended for adult education and literacy activities.
(b) MAINTENANCE OF EFFORT.—
(1) IN GENERAL.—
(A) DETERMINATION.—An eligible agency may receive
funds under this subtitle for any fiscal year if the Secretary
finds that the fiscal effort per student or the aggregate
expenditures of such eligible agency for adult education
and literacy activities, in the second preceding fiscal year,
was not less than 90 percent of the fiscal effort per student
or the aggregate expenditures of such eligible agency for
adult education and literacy activities, in the third preced-
ing fiscal year.
(B) PROPORTIONATE
REDUCTION.—Subject to para-
graphs (2), (3), and (4), for any fiscal year with respect
to which the Secretary determines under subparagraph
(A) that the fiscal effort or the aggregate expenditures
of an eligible agency for the preceding program year were
less than such effort or expenditures for the second preced-
ing program year, the Secretary—
(i) shall determine the percentage decreases in
such effort or in such expenditures; and
(ii) shall decrease the payment made under this
subtitle for such program year to the agency for adult
H. R. 1385—138
education and literacy activities by the lesser of such
percentages.
(2) COMPUTATION.—In computing the fiscal effort and
aggregate expenditures under paragraph (1), the Secretary shall
exclude capital expenditures and special one-time project costs.
(3) DECREASE IN FEDERAL SUPPORT.—If the amount made
available for adult education and literacy activities under this
subtitle for a fiscal year is less than the amount made available
for adult education and literacy activities under this subtitle
for the preceding fiscal year, then the fiscal effort per student
and the aggregate expenditures of an eligible agency required
in order to avoid a reduction under paragraph (1)(B) shall
be decreased by the same percentage as the percentage decrease
in the amount so made available.
(4) WAIVER.—The Secretary may waive the requirements
of this subsection for 1 fiscal year only, if the Secretary deter-
mines that a waiver would be equitable due to exceptional
or uncontrollable circumstances, such as a natural disaster
or an unforeseen and precipitous decline in the financial
resources of the State or outlying area of the eligible agency.
If the Secretary grants a waiver under the preceding sentence
for a fiscal year, the level of effort required under paragraph
(1) shall not be reduced in the subsequent fiscal year because
of the waiver.
SEC. 242. NATIONAL INSTITUTE FOR LITERACY.
(a) PURPOSE.—The purpose of this section is to establish a
National Institute for Literacy that—
(1) provides national leadership regarding literacy;
(2) coordinates literacy services and policy; and
(3) serves as a national resource for adult education and
literacy programs by—
(A) providing the best and most current information
available, including the work of the National Institute of
Child Health and Human Development in the area of
phonemic awareness, systematic phonics, fluency, and read-
ing comprehension, to all recipients of Federal assistance
that focuses on reading, including programs under titles
I and VII of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6301 et seq. and 7401 et seq.),
the Head Start Act (42 U.S.C. 9831 et seq.), the Individuals
with Disabilities Education Act (20 U.S.C. 1400 et seq.),
and this Act; and
(B) supporting the creation of new ways to offer serv-
ices of proven effectiveness.
(b) ESTABLISHMENT.—
(1) IN
GENERAL.—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 Sec-
retary of Education with the Secretary of Labor and the Sec-
retary of Health and Human Services (in this section referred
to as the ‘‘Interagency Group’’). The Interagency Group may
include in the Institute any research and development center,
institute, or clearinghouse established within the Department
of Education, the Department of Labor, or the Department
H. R. 1385—139
of Health and Human Services the purpose of which is deter-
mined by the Interagency Group to be related to the purpose
of the Institute.
(2) OFFICES.—The Institute shall have offices separate from
the offices of the Department of Education, the Department
of Labor, and the Department of Health and Human Services.
(3) RECOMMENDATIONS.—The Interagency Group shall con-
sider the recommendations of the National Institute for Literacy
Advisory Board (in this section referred to as the ‘‘Board’’)
established under subsection (e) in planning the goals of the
Institute and in the implementation of any programs to achieve
the goals. If the Board’s recommendations are not followed,
the Interagency Group shall provide a written explanation to
the Board concerning actions the Interagency Group takes that
are inconsistent with the Board’s recommendations, including
the reasons for not following the Board’s recommendations with
respect to the actions. The Board may also request a meeting
of the Interagency Group to discuss the Board’s recommenda-
tions.
(4) DAILY
OPERATIONS.—The daily operations of the
Institute shall be administered by the Director of the Institute.
(c) DUTIES.—
(1) IN GENERAL.—In order to provide leadership for the
improvement and expansion of the system for delivery of
literacy services, the Institute is authorized—
(A) to 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 instruction in
phonemic awareness, systematic phonics, fluency, and
reading comprehension, and the integration of literacy
and basic skills instruction with occupational skills
training;
(ii) public and private literacy and basic skills
programs, and Federal, State, and local policies, affect-
ing the provision of literacy services at the national,
State, and local levels;
(iii) opportunities for technical assistance, meet-
ings, conferences, and other opportunities that lead
to the improvement of literacy and basic skills services;
and
(iv) a communication network for literacy pro-
grams, providers, social service agencies, and students;
(B) to coordinate support for the provision of literacy
and basic skills services across Federal agencies and at
the State and local levels;
(C) to coordinate the support of reliable and replicable
research and development on literacy and basic skills in
families and adults across Federal agencies, especially with
the Office of Educational Research and Improvement in
the Department of Education, and to carry out basic and
applied research and development on topics that are not
being investigated by other organizations or agencies, such
as the special literacy needs of individuals with learning
disabilities;
H. R. 1385—140
(D) to collect and disseminate information on methods
of advancing literacy that show great promise, including
phonemic awareness, systematic phonics, fluency, and read-
ing comprehension based on the work of the National
Institute of Child Health and Human Development;
(E) to provide policy and technical assistance to Fed-
eral, State, and local entities for the improvement of policy
and programs relating to literacy;
(F) to fund a network of State or regional adult literacy
resource centers to assist State and local public and private
nonprofit efforts to improve literacy by—
(i) 
encouraging 
the 
coordination 
of 
literacy
services;
(ii) enhancing the capacity of State and local
organizations to provide literacy services; and
(iii) serving as a link between the Institute and
providers of adult education and literacy activities for
the purpose of sharing information, data, research,
expertise, and literacy resources;
(G) to coordinate and share information with national
organizations and associations that are interested in lit-
eracy and workforce investment activities;
(H) to advise Congress and Federal departments and
agencies regarding the development of policy with respect
to literacy and basic skills; and
(I) to undertake other activities that lead to the
improvement of the Nation’s literacy delivery system and
that complement other such efforts being undertaken by
public and private agencies and organizations.
(2) GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS.—
The Institute may award grants to, or enter into contracts
or cooperative agreements with, individuals, public or private
institutions, agencies, organizations, or consortia of such
institutions, agencies, or organizations to carry out the activities
of the Institute.
(d) LITERACY LEADERSHIP.—
(1) IN GENERAL.—The Institute, in consultation with the
Board, may award fellowships, with such stipends and allow-
ances 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.—Fellowships awarded under this sub-
section 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) INTERNS AND VOLUNTEERS.—The Institute, in consulta-
tion with the Board, may award paid and unpaid internships
to individuals seeking to assist the Institute in carrying out
its mission. Notwithstanding section 1342 of title 31, United
States Code, the Institute may accept and use voluntary and
uncompensated services as the Institute determines necessary.
(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY BOARD.—
(1) ESTABLISHMENT.—
(A) IN GENERAL.—There shall be a National Institute
for Literacy Advisory Board (in this section referred to
H. R. 1385—141
as the ‘‘Board’’), which shall consist of 10 individuals
appointed by the President with the advice and consent
of the Senate.
(B) COMPOSITION.—The Board shall be comprised of
individuals who are not otherwise officers or employees
of the Federal Government and who are representative
of entities such as—
(i) literacy organizations and providers of literacy
services, including nonprofit providers, providers of
English literacy programs and services, social service
organizations, and eligible providers receiving assist-
ance under this subtitle;
(ii) businesses that have demonstrated interest in
literacy programs;
(iii) literacy students, including literacy students
with disabilities;
(iv) experts in the area of literacy research;
(v) State and local governments;
(vi) State Directors of adult education; and
(vii) 
representatives 
of 
employees, 
including
representatives of labor organizations.
(2) DUTIES.—The Board shall—
(A) make recommendations concerning the appoint-
ment 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) FEDERAL ADVISORY COMMITTEE ACT.—Except as other-
wise provided, the Board established by this subsection shall
be subject to the provisions of the Federal Advisory Committee
Act (5 U.S.C. App.).
(4) APPOINTMENTS.—
(A) IN
GENERAL.—Each member of the Board shall
be appointed for a term of 3 years, except that the initial
terms for members may be 1, 2, or 3 years in order to
establish a rotation in which one-third of the members
are selected each year. Any such member may be appointed
for not more than 2 consecutive terms.
(B) VACANCIES.—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 member’s term until
a successor has taken office.
(5) QUORUM.—A majority of the members of the Board
shall constitute a quorum but a lesser number may hold hear-
ings. Any recommendation of the Board may be passed only
by a majority of the Board’s members present.
(6) ELECTION
OF
OFFICERS.—The Chairperson and Vice
Chairperson of the Board shall be elected by the members
of the Board. The term of office of the Chairperson and Vice
Chairperson shall be 2 years.
(7) MEETINGS.—The Board shall meet at the call of the
Chairperson or a majority of the members of the Board.
(f ) GIFTS, BEQUESTS, AND DEVISES.—
H. R. 1385—142
(1) IN
GENERAL.—The Institute may accept, administer,
and use gifts or donations of services, money, or property,
whether real or personal, tangible or intangible.
(2) RULES.—The Board 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,
would reflect unfavorably upon the ability of the Institute or
any employee to carry out the responsibilities of the Institute
or employee, or official duties, in a fair and objective manner,
or would compromise the integrity or the appearance of the
integrity of the Institute’s 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 rec-
ommendations made by the Board, shall appoint and fix the pay
of a Director.
(i) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.—The Direc-
tor and staff of the Institute may be appointed without regard
to the provisions of title 5, United States Code, governing appoint-
ments 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 report biennially
to the Committee on Education and the Workforce of the House
of Representatives and the Committee on Labor and Human
Resources of the Senate. Each report submitted under this sub-
section shall include—
(1) a comprehensive and detailed description of the
Institute’s operations, activities, financial condition, and accom-
plishments in the field of literacy for the period covered by
the report;
(2) a description of how plans for the operation of the
Institute for the succeeding 2 fiscal years will facilitate achieve-
ment 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.
(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 pur-
poses that the Institute is authorized to perform under this section
may be provided to the Institute for such purposes.