[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 994 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 994

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 8, 1997

  Mr. Kennedy (for himself and Mr. Dodd) (by request) 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 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,

             TITLE I--AMENDMENT TO THE ADULT EDUCATION ACT

                               amendment

    Sec. 101. 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:

        ``TITLE III--ADULT BASIC EDUCATION AND LITERACY PROGRAMS

    ``Sec. 301. (a) Short Title.--This title may be cited as the `Adult 
Basic Education and Literacy Act'.
    ``(b) Table of Contents.--The table of contents for this title is 
as follows:

                          ``TABLE OF CONTENTS

``Sec. 301. Short title; table of contents.
``Sec. 302. Findings; purpose.
``Sec. 303. Authorization of appropriations.
                 ``Part A--Adult Education and Literacy

``Sec. 311. Program Authority; Priorities.
``Sec. 312. State Grants for Adult Education and Literacy.
``Sec. 313. State Leadership Activities.
``Sec. 314. State Administration.
``Sec. 315. State Plan.
``Sec. 316. Awards to Eligible Applicants.
``Sec. 317. Applications From Eligible Applicants.
``Sec. 318. State Performance Goals and Indicators.
``Sec. 319. Evaluation, Improvement, and Accountability.
``Sec. 320. Allotments; Reallotment.
                     ``Part B--National Leadership

``Sec. 331. National Leadership Activities.
``Sec. 332. Awards for National Excellence.
``Sec. 333. National Institute for Literacy.
                      ``Part C--General Provisions

``Sec. 341. Waivers.
``Sec. 342. Definitions.

                          ``findings; purpose

    ``Sec. 302. (a) Findings.--The Congress finds that:
            ``(1) Our Nation's well-being is dependent on the knowledge 
        and skills 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 combating poverty, 
        crime, and disease also depend on the Nation's having an 
        educated citizenry.
            ``(4) There is a strong relationship between parents' 
        education and literacy and their children's educational 
        achievement. 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 literacy and 
        poverty. Data from the 1993 National Adult Literacy Survey show 
        that 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 be economically self-sufficient, much less enter high-
        skill, high-wage jobs, or to assist effectively in their 
        children's education.
            ``(7) Many Americans desire English instruction to help 
        them exercise their rights and responsibilities as citizens.
            ``(8) 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 that 
        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.
            ``(9) Currently, the Adult Education Act lacks adequate 
        accountability requirements, and contains set-asides and 
        categorical programs that are often narrowly focused on 
        specific populations or methods of service delivery, thus 
        inhibiting the capacity of State and local officials to 
        implement programs that meet the needs of individual States and 
        localities.
            ``(10) The Federal Government, in partnership with States 
        and localities, can assist States and localities to improve and 
        expand their adult education and literacy programs through 
        provision of clear performance goals and indicators, increased 
        State and local flexibility, improved accountability, and 
        incentives for performance.
            ``(11) The Federal Government can also assist States and 
        localities by supporting research, development, demonstration, 
        dissemination, evaluation, capacity-building, data collection, 
        professional development, and technical assistance activities 
        that further State and local efforts to improve student 
        achievement in adult education and literacy programs.
    ``(b) Purpose.--(1) It is the purpose of this title to create a 
performance partnership that includes the Federal Government, States, 
and localities to help provide for adult education and 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; and
            ``(C) become their children's first teacher 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 by--
            ``(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 State grant programs; 
        and
            ``(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 through such measures as 
        improving instruction, encouraging greater use of technology in 
        adult education and literacy programs, and improving the 
        professional development of educators working in those 
        programs;
            ``(F) integrating adult education and literacy programs 
        with States' school-to-work opportunities systems, secondary 
        and postsecondary systems, job training programs, welfare 
        programs, early childhood and elementary school programs, and 
        other related activities;
            ``(G) supporting State leadership and program improvement 
        efforts; and
            ``(H) 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. 303. (a) State Grants for Adult Education and Literacy.--For 
the purpose of carrying out this title there are authorized to be 
appropriated $394,000,000 for fiscal year 1998 and such sums as may be 
necessary for each of the fiscal years 1999 through 2005.
    ``(b) Reservations.--From the amount appropriated for any fiscal 
year under subsection (a), the Secretary shall reserve not more than 5 
percent to carry out section 318(c)(2) and part B of this Act, of which 
not more than 3 percent of the amount appropriated for any fiscal year 
after 1999 under subsection (a) may be used for awards for national 
excellence under section 332.

                 ``Part A--Adult Education and Literacy

                    ``program authority; priorities

    ``Sec. 311. (a) Program Authorized.--In order to provide adults 
with the skills they need as workers, citizens, and parents, funds 
under this part shall be used to support the development, 
implementation, and improvement of adult education and literacy 
programs at the State and local levels.
  ``(b) Program Priorities.--In using funds under this part, States and 
local recipients shall give priority to adult education and literacy 
programs that--
            ``(1) are built on a strong foundation of research and 
        effective educational practice;
            ``(2) effectively employ advances in technology, as 
        appropriate, such as using computers in the classroom and 
        technology that brings learning into the home;
            ``(3) provide learning in `real life' contexts, such as 
        work, the family, and citizenship;
            ``(4) are staffed by well-trained instructors, counselors, 
        and administrators;
            ``(5) are of sufficient intensity and duration for 
        participants to achieve substantial learning gains, such as by 
        earning a basic skills certificate that reflects skills 
        acquisition and has meaning to employers;
            ``(6) establish measurable goals for client outcomes, such 
        as levels of literacy achieved and attainment of a high school 
        diploma or its equivalent, that are tied to challenging State 
        performance standards for literacy proficiency;
            ``(7) coordinate with other available resources in the 
        community, such as by establishing strong links with elementary 
        and secondary schools, postsecondary instructions, one-stop 
        career centers, job training programs, and social service 
        agencies;
            ``(8) offer flexible schedules and support services (such 
        as child care and transportation) that are necessary to enable 
        individuals, including adults with disabilities or other 
        special needs, to attend and complete programs; and
            ``(9) maintain a high-quality information management system 
        that has the capacity to report client outcomes and to monitor 
        program performance against the State goals and indicators.

            ``state grants for adult education and literacy

    ``Sec. 312. (a) State Grant.--From the funds available for State 
grants under section 303 for each fiscal year, the Secretary shall, in 
accordance with section 320, make a grant to each State that has an 
approved State plan under section 315, to assist that State in 
developing, implementing, and improving adult education and literacy 
programs within the State.
    ``(b) Reservation of Funds.--(1) From the amount awarded to a State 
for any fiscal year under subsection (a), a State may, subject to 
paragraph (2), use up to 18 percent for State leadership activities 
under section 313 and the cost of administering its program under this 
part.
    ``(2) A State may not use more than 5 percent of the amount awarded 
to it for any fiscal year under subsection (a), or $80,000, whichever 
is greater, for the cost of administering its program under this part.
    ``(c) Federal Share.--(1) The Federal share of expenditures to 
carry out a State plan under section 315 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 315 may be in cash or in kind, fairly 
evaluated, and may include only non-Federal funds that are used for 
adult education and literacy activities in a manner that is consistent 
with the purposes of this title.
    ``(d) Maintenance of Effort.--(1) A State may receive funds under 
this part for any fiscal year only if the Secretary finds that the 
amount expended by the State for adult education and literacy, in the 
second preceding fiscal year, was not less than 90 percent of the 
amount expended for adult education and literacy, in the third 
preceding fiscal year.
    ``(2) The Secretary shall reduce the amount of the allocation of 
funds to a State under section 320 for any fiscal year in the 
proportion to which the State fails to meet the requirement of 
paragraph (1) by expending in the second preceding fiscal year for 
adult education and literacy less than 90 percent of the amount the 
State expended in the third preceding fiscal year for adult education 
and literacy.
    ``(3) The Secretary may waive the requirements of this subsection 
for one fiscal year only if the Secretary determines that a waiver 
should 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.
    ``(4) If the Secretary reduces a State's allocation under paragraph 
(2), or grants a waiver under paragraph (3), the level of effort 
required under paragraph (1) shall not be reduced in the subsequent 
fiscal year because of the reduction or waiver.

                     ``state leadership activities

    ``Sec. 313. (a) State Leadership.--(1) Each State that receives a 
grant under section 312(a) for any fiscal year shall use funds reserved 
for State leadership under section 312(b) to conduct activities of 
Statewide significance that develop, implement, or improve programs of 
adult education and literacy, consistent with its State plan under 
section 315.
    ``(2) In using funds reserved for State leadership activities, each 
State shall, to the extent practicable, avoid duplicating research and 
development efforts conducted by other States.
    ``(b) Uses of Funds.--(1) States shall use funds under subsection 
(a) for one or more of the following--
            ``(A) professional development and training;
            ``(B) developing and disseminating curricula for adult 
        education and literacy programs;
            ``(C) monitoring and evaluating the quality of, and 
        improvement in, services and activities conducted with 
        assistance under this part, including establishing performance 
        goals and indicators under section 318, in order to assess 
        program quality and improvement;
            ``(D) establishing State content standards for adult 
        education and literacy programs;
            ``(E) establishing challenging State performance standards 
        for literacy proficiency;
            ``(F) promoting the integration of literacy instruction and 
        occupational skill training, and linkages with employers;
            ``(G) promoting, and providing staff training in, the use 
        of instructional and management software and technology;
            ``(H) establishing program and professional development 
        networks to assist in meeting the purposes of this Act;
            ``(I) developing and participating in networks and 
        consortia of States, and in cooperative Federal-State 
        initiatives, that seek to establish and implement adult 
        education and literacy programs that have significance to the 
        State, region, or Nation; and
            ``(J) other activities of Statewide significance that 
        promote the purposes of this title.
    ``(2)(A) beginning in fiscal year 2000, States may use funds under 
subsection (a) for financial incentives or awards to one or more 
eligible recipients in recognition of--
            ``(i) exemplary quality or innovation in adult education or 
        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 educationally disadvantaged adults 
and families, immigrants, individuals with limited English proficiency, 
incarcerated individuals, homeless individuals, recipients of public 
assistance, and individuals with disabilities; or
            ``(iii) both.
    ``(B) The incentives or awards made under subparagraph (A) shall be 
determined by the State using the performance goals and indicators 
described in section 318 and, if appropriate, other criteria that are 
consistent with the purposes of this Act.

                         ``state administration

    ``Sec. 314. (a) State Educational Agency.--The State educational 
agency shall be responsible for the administration of services and 
activities under this part, 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, 
        corrections agencies, public housing agencies, and social 
        service agencies; and
            ``(3) coordination with other State and Federal education, 
        training, employment, corrections, public housing, 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 part (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. 315. (a) Four-Year Plans.--(1) Each State desiring to 
receive a grant under this part for any fiscal year shall have the 
State educational agency submit to, or have on file with, the Secretary 
a four-year State plan in accordance with this section.
    ``(2) The State educational agency may submit the 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 1997; the Goals 2000: Educate America Act; 
the Job Training Partnership Act; and the School-to-Work Opportunities 
Act of 1994.
    ``(b) Plan Assessment.--(1) In developing the State plan, and any 
revisions to the State plan under subsection (e), the State educational 
agency shall base its plan or revisions on a recent, objective 
assessment of--
            ``(A) the needs of individuals in the State for adult 
        education and literacy programs, including individuals most in 
        need or hardest to serve (such as educationally disadvantaged 
        adults and families, immigrants, individuals with limited 
        English proficiency, incarcerated individuals, homeless 
        individuals, recipients of public assistance, and individuals 
        with disabilities); and
            ``(B) the capacity of programs and providers to meet those 
        needs, taking into account the priorities under section 311(b) 
        and the State's performance goals under section 318(a).
    ``(2) In its second 4-year State plan, the State educational agency 
shall also include in its assessment--
            ``(A) an analysis of the State's performance in progressing 
        toward its performance goals under the preceding 4-year State 
        plan; and
            ``(B) any changes in the second 4-year State plan that have 
        been made based on that analysis.
    ``(c) Public Participation.--In developing the State plan, and any 
revisions under subsection (e), the State educational agency 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 literacy, including--
            ``(1) individuals who currently participate, or who want to 
        participate, in adult education and literacy programs;
            ``(2) practitioners and experts in adult education and 
        literacy, social services, and workforce development;
            ``(3) representatives of business and labor organizations; 
        and
            ``(4) other agencies, such as volunteer and community-based 
        organizations, State and local health, social service, public 
        housing, public assistance, job training, and corrections 
        agencies, and public libraries.
    ``(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 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, expressed in terms of the performance 
        indicators published by the Secretary under section 318(b), and 
        any other performance indicators the State may choose, of the 
        State's performance goals established under section 318(a) and 
        the level of performance the State expects to achieve in 
        progressing toward its performance goals during the life of the 
        State plan;
            ``(4) a description of the criteria the State will use to 
        award funds under this title to eligible applicants under 
        section 316, including how the State will ensure that its 
        selection of applicants to operate programs assisted under this 
        Partwill reflect the program priorities under section 311(b) 
        and the findings of program evaluations carried out under 
        section 319(a);
            ``(5) a description of how the State will integrate 
        services and activities under this title, including planning 
        and coordination of programs, with those of other agencies, 
        institutions, and organizations involved in adult education and 
        literacy, such as the public school system, early childhood and 
        special education programs, institutions of higher education, 
        vocational education programs, libraries, business and labor 
        organizations, vocational rehabilitation programs, one-stop 
        career centers, employment and training programs, and health, 
        social services, public assistance, public housing, and 
        corrections agencies, in order to ensure effective use of funds 
        and to avoid duplication of services;
            ``(6) a description of how the State will ensure that the 
        data reported to it from its recipients of funds under this 
        part and the data it reports to the Secretary are complete, 
        accurate, and reliable;
            ``(7) a State-wide plan for the leadership activities the 
        State will carry out under section 313;
            ``(8) a description of how the State will provide 
        incentives or rewards for exemplary services and activities 
        under this part, if the State elects to implement the authority 
        authorized under section 313(b)(2);
            ``(9) any comments the Governor may have on the State plan; 
        and
            ``(10) assurances that--
                    ``(A) the State will comply with the requirements 
                of this part and the provisions of the State plan; and
                    ``(B) the State will use such fiscal control and 
                accounting procedures as are necessary for the proper 
                and efficient administration of funds under this part.
    ``(e) Plan Revisions.--When changes in conditions or other factors 
require substantial modifications to an approved State plan, the State 
educational agency shall submit a revision to the plan to the 
Secretary.
    ``(f) Consultation.--The State educational agency 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.
    ``(g) Plan Approval.--(1) The Secretary shall approve a State plan, 
or a revision to an approved State plan, only if the Secretary 
determines that it meets the requirements of this section and the 
State's performance goals and expected level of performance under 
subsection (d)(3) are sufficiently rigorous as to meet the purposes of 
this title and to allow the Department of Education to make progress 
toward its performance objectives and indicators established pursuant 
to the Government Performance and Results Act. The Secretary shall not 
finally disapprove a State plan, or a revision to an approved State 
plan, except after giving the State responsible 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.

                    ``awards to eligible applicants

    ``Sec. 316. (a). Awards.--(1) From funds available under section 
312, States shall make subgrants and contracts, as appropriate, to 
eligible applicants under subsection (b) to develop, implement, and 
improve adult education and literacy programs within the State.
    ``(2) To the extent practicable, States shall make multi-year 
awards under this section.
    ``(b) Eligibility.--(1) The following entities shall be eligible to 
apply to the State for an award 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 health, social service, public housing, public 
        assistance, job training, and corrections agencies and public 
        libraries); 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 purposes 
        of this title.
    ``(2) Each State receiving funds under this part shall ensure that 
all eligible applicants described under subsection (b)(1) receive 
direct and equitable access to awards under this section.

                ``applications from eligible applicants

    ``Sec. 317. (a) Application.--Any eligible applicant under section 
316(b)(1) that desires a subgrant or contract under this part 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 literacy programs, if any;
            ``(2) a description of how funds awarded under this part 
        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 315(b);
            ``(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 319(a); 
        and
            ``(5) any cooperative arrangements the applicant has with 
        others (including arrangements with health, social services, 
        public assistance, public housing, and corrections agencies, 
        libraries, one-stop career centers, business, industry, labor, 
        and volunteer literacy organizations) for the delivery of adult 
        education and literacy programs.
    ``(b) Funding.--In determining which applicants receive funds under 
this part, the State, in addition to addressing the program priorities 
under section 311(b), 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, if any, of the evaluations 
                required under section 319(a); and
                    ``(B) the degree to which the applicant will 
                coordinate with and utilize other literacy and social 
                services available in the community.

                   ``performance goals and indicators

    ``Sec. 318. (a) Performance Goals.--Any State desiring to receive a 
grant under section 312(a), in consultation with individuals, agencies, 
organizations, and institutions described in section 315(c), shall 
identify performance goals that define the level of student achievement 
to be attained by adult education and literacy programs, and express 
such goals in an objective, quantifiable, and measurable form.
    ``(b) Performance Indicators.--(1) After consultation with States, 
local educational agencies, service providers, representatives of 
business and industry, institutions of higher education, and other 
interested parties, the Secretary shall publish in the Federal Register 
performance indicators (including the definition of relevant terms) 
described in paragraph (2) that States and local recipients shall use 
in measuring or assessing progress toward achieving the State's 
performance goals under subsection (a).
    ``(2) The Secretary shall publish performance indicators for 
programs assisted under this part in the following areas:
            ``(A) achievement in the areas of reading, English language 
        acquisition, and numeracy;
            ``(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) such other indicators as are determined by the 
        Secretary.
    ``(c) Technical Assistance.--(1) The Secretary shall provide 
technical assistance to States regarding the development of--
            ``(A) the State's performance goals under subsection (a); 
        and
            ``(B) uniform national performance data.
    ``(2) The Secretary may use funds reserved under section 303(b) to 
provide technical assistance under this section.

             ``evaluation, improvement, and accountability

    ``Sec. 319. (a) Local Evaluation.--The adult education and literacy 
programs of each recipient of a subgrant or contract under this part 
shall be evaluated biennially, using the performance goals and 
indicators established under section 318, and the recipient shall 
report to the State regarding the effectiveness of its programs in 
addressing the priorities under section 311 and the needs identified in 
the State assessment under section 315(b).
    ``(b) Improvement Activities.--If, after reviewing the reports 
required in subsection (a), a State determines, based on the 
performance goals and indicators and expected level of performance 
included in its State plan under section 315(d)(3), and the evaluations 
under subsection (a), that a recipient is not making substantial 
progress in achieving the purposes of this title, the State may work 
jointly with the 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, to 
the extent practicable, that any corrective action it takes allows for 
continued services to and activities for the recipient's students.
    ``(c) State Report.--(1) The State educational agency shall report 
annually to the Secretary on--
            ``(A) the quality and effectiveness of the adult education 
        and literacy programs funded through its subgrants and 
        contracts under this part, based on the performance goals and 
        indicators and the expected level of performance included in 
        its State plan under section 315(d)(3), and the needs 
        identified in the State assessment under section 315(b); and
            ``(B) its State leadership activities under section 313.
    ``(2) The State educational agency shall include in such reports 
such information, and in such form, as the Secretary may reasonably 
require, in order to ensure the collection of uniform national data.
    ``(3) The State educational agency shall make available to the 
public its State plan under section 315 and its annual report under 
this subsection.
    ``(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 
purposes of this title, based on the performance goals and indicators 
and expected level of performance included in its State plan under 
section 315(d)(3), 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 and expected level of performance included in its State plan 
under section 315(d)(3), 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 part. 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 title.

                       ``allotments; reallotment

    ``Sec. 320. (a) Allotment to States.--(1) From the funds available 
under section 312(a) for each fiscal year, the Secretary shall allot to 
the Commonwealth of Puerto Rico, Guam, American Samoa, the Northern 
Mariana Islands, and the Virgin Islands, the amount that each would 
have been allotted under section 313(b) of the Adult Education Act as 
it was in effect the day before the enactment of the Adult Basic 
Education and Literacy for the Twenty-First Century Act.
    ``(2) From the remainder of such sums, the Secretary shall allot--
            ``(A) $250,000 to each of the States; and
            ``(B) from the remainder--
                    ``(i) 95 percent of such remainder to each of the 
                States in an amount that bears the same ratio to such 
                amount as the number of adults 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 adults in all the States; and
                    ``(ii) 5 percent of such remainder to each of the 
                States in an amount that bears the same ratio to such 
                amount as the number of adults with limited English 
                proficiency in the State bears to the number of such 
                adults in all the States.
    ``(3) The numbers of adults specified in paragraph (2)(B) shall be 
determined by the Secretary, using the latest estimates, satisfactory 
to the Secretary, that are based on the U.S. population demographic 
data produced and published by the Bureau of the Census.
    ``(b) Hold-Harmless.--(1) Notwithstanding subsection (a)--
            ``(A) for fiscal year 1998, no State shall receive under 
        this part an allotment that is less than 90 percent of the 
        payments made to the State for the fiscal year 1997 for 
        programs authorized by section 313 of the Adult Education Act 
        as it was in effect prior to the enactment of the Adult Basic 
        Education and Literacy for the Twenty-First Century Act; and
            ``(B) for fiscal year 1999 and each succeeding fiscal year, 
        no State shall receive under this part an allotment that is 
        less than 90 percent of the amount it received for the 
        preceding fiscal year for programs under this part.
    ``(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 the basis that the Secretary 
determines would best serve the purposes of this title. Any amount 
reallotted to a State under this subsection shall be deemed to be part 
of its allotment for the fiscal year in which is is obligated.

                     ``Part B--National Leadership

                    ``national leadership activities

    ``Sec. 331. (a) Authority.--From the amount reserved under section 
303(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 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 reserved under this section may be used 
for--
            ``(1) research and development, such as estimates of the 
        numbers of adults functioning at the lowest levels of literacy 
        proficiency;
            ``(2) demonstration of model and innovative programs, such 
        as the development of models for basic skill certificates, 
        identification of effective strategies for working with adults 
        with learning disabilities and with limited English proficient 
        adults, and development of case studies of family literacy and 
        workplace literacy programs;
            ``(3) dissemination, such as information on promising 
        practices resulting from federally funded demonstration 
        programs;
            ``(4) evaluations and assessments, such as periodic 
        independent evaluations of services and activities assisted 
        under this title and assessments of the condition and progress 
        of literacy in the United States;
            ``(5) efforts to support capacity building at the State and 
        local levels, such as technical assistance in program planning, 
        assessment, evaluation, and monitoring of programs under this 
        title;
            ``(6) data collection, such as improvement of both local 
        and State data systems through technical assistance and 
        development of model performance data collection systems;
            ``(7) professional development, such as technical 
        assistance activities to advance effective training practices, 
        identify professional development projects, and disseminate new 
        findings in adult education training;
            ``(8) technical assistance, such as endeavors that aid 
        distance learning, promote and improve the use of technology in 
        the classroom, and assist States in meeting the purposes of 
        this title; and
            ``(9) other activities designed to enhance the quality of 
        adult education and literacy nationwide.

                    ``awards for national excellence

    ``Sec. 332. The Secretary may, from the amount reserved under 
section 303(b) for any fiscal year after fiscal year 1999, 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 or expected level of performance under section 315(d)(3);
            ``(2) made exemplary progress in developing, implementing 
        or improving their adult education and literacy programs in 
        accordance with the priorities described in section 311; or
            ``(3) provided exemplary services and activities for those 
        individuals within the State who are most in need of adult 
        education and literacy services, or are hardest to serve.

                   ``national institute for literacy

    ``Sec. 333. (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 in the Department of Education, 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 Goal, as 
        established by P.L. 103-227;
            ``(F) coordinate and share information with national 
        organizations and associations that are interested in literacy 
        and workforce development;
            ``(G) inform the development of policy with respect to 
        literacy and basic skills; and
            ``(H) 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) 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, 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 
title;
            ``(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;
            ``(vi) State Directors of adult education; and
            ``(vii) labor organizations.
    ``(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 Basic Education and Literacy for the Twenty-First Century 
Act 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, 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.
    ``(1) Nonduplication.--The Institute shall not duplicate any 
functions carried out by the Secretaries of Education, Labor, and 
Health and Human Services under this title. This subsection shall not 
be construed to prohibit the Secretaries from delegating such functions 
to the Institute.
    ``(m) 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.

                      ``Part C--General Provisions

                               ``waivers

    ``Sec. 341. (a) Request for Waiver.--A State educational agency may 
request, on its own behalf or on behalf of a local recipient, a waiver 
by the Secretary on one or more statutory or regulatory provisions 
described in subsection (c) in order to carry out adult education and 
literacy programs under part A more effectively.
    ``(b) General Authority.--(1) Except as provided in subsection (d), 
the Secretary 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 or contract recipient under part A to carry 
        out adult education and 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 or contract 
                recipients under part A 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) The 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 the Secretary may extend 
such period if the Secretary determines that the waiver has been 
effective in enabling the State to carry out the purposes of this 
title.
    ``(c) Education Programs.--The statutes subject to the waiver 
authority of the Secretary under this section are--
            ``(1) this title;
            ``(2) 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);
            ``(3) part B of title II of the Elementary and Secondary 
        Education Act of 1965 (Dwight D. Eisenhower Professional 
        Development Program);
            ``(4) title VI of the Elementary and Secondary Education 
        Act of 1965 (Innovative Education Program Strategies);
            ``(5) part C of title VII of the Elementary and Secondary 
        Education Act of 1965 (Emergency Immigrant Education Program);
            ``(6) the School-to-Work Opportunities Act of 1994, but 
        only with the concurrence of the Secretary of Labor; and
            ``(7) the Carl D. Perkins Career Preparation Education Act 
        of 1997.
    ``(d) Waivers Not Authorized.--The 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.--The 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. 342. For the purposes of this title--
            ``(1) except under section 320(a)(2)(B)(ii), 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 `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;
            ``(5) the term `institution of higher education' means any 
        such institution as defined by section 1201(a) of the Higher 
        Education Act of 1965;
            ``(6) 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;
            ``(7) 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;
            ``(8) the term `public housing agency' means a public 
        housing agency as defined in section 3(b)(6) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437a(b)(6));
            ``(9) the term `Secretary' means the Secretary of 
        Education;
            ``(10) 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, except that for purposes of section 320(a)(2) the term 
        shall not include the Commonwealth of Puerto Rico, Guam, 
        American Samoa, the Northern Mariana Islands, and the Virgin 
        Islands; and
            ``(11) the term `State educational agency' means the State 
        board of education or other agency or officer primarily 
        responsible for the State supervision of public elementary and 
        secondary schools, or, if there is a separate State agency or 
        officer primarily responsible for supervision of adult 
        education in public schools, then such agency or officer may be 
        designated for the purposes of this title by the Governor or by 
        State law. If no agency or officer qualifies under the 
        preceding sentence, such term shall mean an appropriate agency 
        or officer designated for the purposes of this title by the 
        Governor.''.

                  TITLE II--EFFECTIVE DATE; TRANSITION

                             effective date

    Sec. 201. This Act shall take effect on July 1, 1998.

                               transition

    Sec. 202. Notwithstanding any other provisions of law--
            (1) upon enactment of the Adult Basic Education and 
        Literacy for the Twenty-First Century Act, a State or local 
        recipient of funds under the Adult Education Act as it was in 
        effect prior to the enactment of the Adult Basic Education and 
        Literacy for the Twenty-First Century Act, may use any such 
        unexpended funds to carry out services and activities that are 
        authorized by the Adult Education Act or part A of the Adult 
        Basic Education and Literacy Act; and
            (2) a State or local recipient of funds under part A of the 
        Adult Basic Education and Literacy Act for the fiscal year 1998 
        may use such funds to carry out services and activities that 
        are authorized either by such part or were authorized by the 
        Adult Education Act as it was in effect prior to the enactment 
        of the Adult Basic Education and Literacy for the Twenty-First 
        Century Act.

                    TITLE III--REPEALS OF OTHER ACTS

                                repeals

    Sec. 301(a). National Literacy Act.--The National Literacy Act of 
1991 (20 U.S.C. 1201 et seq.) is repealed.
    (b) 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.
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