[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3222 Engrossed in House (EH)]


  2d Session

                               H. R. 3222

_______________________________________________________________________

                                 AN ACT

To amend the Elementary and Secondary Education Act of 1965 to improve 
   literacy through family literacy projects and to reauthorize the 
                 inexpensive book distribution program.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  2d Session
                                H. R. 3222

_______________________________________________________________________

                                 AN ACT


 
To amend the Elementary and Secondary Education Act of 1965 to improve 
   literacy through family literacy projects and to reauthorize the 
                 inexpensive book distribution program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Literacy Involves Families Together 
Act''.

                        TITLE I--FAMILY LITERACY

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Section 1002(b) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6302(b)) is amended by striking ``$118,000,000 for 
fiscal year 1995 and such sums as may be necessary for each of the four 
succeeding fiscal years.'' and inserting ``$250,000,000 for fiscal year 
2001.''.

SEC. 102. IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL 
              AGENCIES.

    Section 1111(c) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311(c)) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) the State educational agency will encourage local 
        educational agencies and individual schools participating in a 
        program assisted under this part to offer family literacy 
        services (using funds under this part), if the agency or school 
        determines that a substantial number of students served under 
        this part by the agency or school have parents who do not have 
        a high school diploma or its recognized equivalent or who have 
        low levels of literacy.''.

SEC. 103. EVEN START FAMILY LITERACY PROGRAMS.

    (a) Part Heading.--The part heading for part B of title I of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6361 et seq.) 
is amended to read as follows:

  ``PART B--WILLIAM F. GOODLING EVEN START FAMILY LITERACY PROGRAMS''.

    (b) Statement of Purpose.--Section 1201 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6361) is amended--
            (1) in paragraph (1), by inserting ``high quality'' after 
        ``build on''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2) promote the academic achievement of children and 
        adults;'';
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(4) use instructional programs based on scientifically 
        based reading research (as defined in section 2252) and the 
        prevention of reading difficulties for children and, to the 
        extent such research is available, scientifically based reading 
        research (as so defined) for adults.''.
    (c) Program Authorized.--
            (1) Reservation for migrant programs, outlying areas, and 
        indian tribes.--Section 1202(a) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6362(a)) is amended--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by inserting ``(or, if such 
                appropriated amount exceeds $200,000,000, 6 percent of 
                such amount)'' after ``1002(b)'';
                    (B) in paragraph (2), by striking ``If the amount 
                of funds made available under this subsection exceeds 
                $4,600,000,'' and inserting ``After the date of the 
                enactment of the Literacy Involves Families Together 
                Act,''; and
                    (C) by adding at the end the following:
            ``(3) Coordination of programs for american indians.--The 
        Secretary shall ensure that programs under paragraph (1)(C) are 
        coordinated with family literacy programs operated by the 
        Bureau of Indian Affairs in order to avoid duplication and to 
        encourage the dissemination of information on high quality 
        family literacy programs serving American Indians.''.
            (2) Reservation for federal activities.--Section 1202(b) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6362(b)) is amended to read as follows:
    ``(b) Reservation for Federal Activities.--
            ``(1) Evaluation, technical assistance, program 
        improvement, and replication activities.--From amounts 
        appropriated under section 1002(b), the Secretary may reserve 
        not more than 3 percent of such amounts for purposes of--
                    ``(A) carrying out the evaluation required by 
                section 1209; and
                    ``(B) providing, through grants or contracts with 
                eligible organizations, technical assistance, program 
                improvement, and replication activities.
            ``(2) Research.--In the case of fiscal years 2001 through 
        2004, if the amounts appropriated under section 1002(b) for any 
        of such years exceed such amounts appropriated for the 
        preceding fiscal year, the Secretary shall reserve from such 
        excess amount $2,000,000 or 50 percent, whichever is less, to 
        carry out section 1211(b).''.
    (d) Reservation for Grants.--Section 1202(c)(1) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6362(c)(1)) is amended--
            (1) by striking ``From funds reserved under section 
        2260(b)(3), the Secretary shall award grants,'' and inserting 
        ``For any fiscal year for which at least one State applies and 
        qualifies and for which the amount appropriated under section 
        1002(b) exceeds the amount appropriated under such section for 
        the preceding fiscal year, the Secretary shall reserve, from 
        the amount of such excess remaining after the application of 
        subsection (b)(2), the amount of such remainder or $1,000,000, 
        whichever is less, to award grants,''; and
            (2) by adding at the end ``No State may receive more than 
        one grant under this subsection.''.
    (e) Allocations.--Section 1202(d)(2) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6362(d)(2)) is amended by 
striking ``that section'' and inserting ``that part''.
    (f) Definitions.--Section 1202(e) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6362(e)) is amended--
            (1) in paragraph (1)(B), by striking ``or'' after ``higher 
        education,'' and inserting ``a religious organization, or''; 
        and
            (2) in paragraph (2), by striking ``nonprofit 
        organization'' and inserting ``nonprofit organization, 
        including a religious organization,''.
    (g) Subgrants for Local Programs.--Section 1203(b)(2) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6363(b)(2)) 
is amended to read as follows:
            ``(2) Minimum subgrant amounts.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), no State shall award a 
                subgrant under paragraph (1) in an amount less than 
                $75,000.
                    ``(B) Subgrantees in ninth and succeeding years.--
                No State shall award a subgrant under paragraph (1) in 
                an amount less than $52,500 to an eligible entity for a 
                fiscal year to carry out an Even Start program that is 
                receiving assistance under this part or its predecessor 
                authority for the ninth (or any subsequent) fiscal 
                year.
                    ``(C) Exception for single subgrant.--A State may 
                award one subgrant in each fiscal year of sufficient 
                size, scope, and quality to be effective in an amount 
                less than $75,000 if, after awarding subgrants under 
                paragraph (1) for such fiscal year in accordance with 
                subparagraphs (A) and (B), less than $75,000 is 
                available to the State to award such subgrants.''.
    (h) Uses of Funds.--Section 1204 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6364) is amended--
            (1) in subsection (a), by striking ``family-centered 
        education programs'' and inserting ``family literacy 
        services''; and
            (2) by adding at the end the following:
    ``(c) Use of Funds for Family Literacy Services.--
            ``(1) In general.--States may use a portion of funds 
        received under this part to assist eligible entities receiving 
        a subgrant under section 1203(b) in improving the quality of 
        family literacy services provided under Even Start programs 
        under this part, except that in no case may a State's use of 
        funds for this purpose for a fiscal year result in a decrease 
        from the level of activities and services provided to program 
        participants in the preceding year.
            ``(2) Priority.--In carrying out paragraph (1), a State 
        shall give priority to programs that were of low quality, as 
        evaluated based on the indicators of program quality developed 
        by the State under section 1210.
            ``(3) Technical assistance to help local programs raise 
        additional funds.--In carrying out paragraph (1), a State may 
        use the funds referred to in such paragraph to provide 
        technical assistance to help local programs of demonstrated 
        effectiveness to access and leverage additional funds for the 
        purpose of expanding services and reducing waiting lists.
            ``(4) Technical assistance and training.--Assistance under 
        paragraph (1) shall be in the form of technical assistance and 
        training, provided by a State through a grant, contract, or 
        cooperative agreement with an entity that has experience in 
        offering high quality training and technical assistance to 
        family literacy providers.''.
    (i) Program Elements.--Section 1205 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6365) is amended--
            (1) by redesignating paragraphs (9) and (10) as paragraphs 
        (13) and (14), respectively;
            (2) by redesignating paragraphs (5) through (8) as 
        paragraphs (6) through (9), respectively;
            (3) by inserting after paragraph (4) the following:
            ``(5) with respect to the qualifications of staff the cost 
        of whose salaries are paid, in whole or in part, with Federal 
        funds provided under this part, ensure that--
                    ``(A) not later than 4 years after the date of the 
                enactment of the Literacy Involves Families Together 
                Act--
                            ``(i) a majority of the individuals 
                        providing academic instruction--
                                    ``(I) shall have obtained an 
                                associate's, bachelor's, or graduate 
                                degree in a field related to early 
                                childhood education, elementary school 
                                education, or adult education; or
                                    ``(II) shall meet qualifications 
                                established by the State for early 
                                childhood education, elementary school 
                                education, or adult education provided 
                                as part of an Even Start program or 
                                another family literacy program;
                            ``(ii) the individual responsible for 
                        administration of family literacy services 
                        under this part has received training in the 
                        operation of a family literacy program; and
                            ``(iii) paraprofessionals who provide 
                        support for academic instruction have a high 
                        school diploma or its recognized equivalent; 
                        and
                    ``(B) beginning on the date of the enactment of the 
                Literacy Involves Families Together Act, all new 
                personnel hired to provide academic instruction--
                            ``(i) have obtained an associate's, 
                        bachelor's, or graduate degree in a field 
                        related to early childhood education, 
                        elementary school education, or adult 
                        education; or
                            ``(ii) meet qualifications established by 
                        the State for early childhood education, 
                        elementary school education, or adult education 
                        provided as part of an Even Start program or 
                        another family literacy program;'';
            (4) by inserting after paragraph (9) (as so redesignated by 
        paragraph (2)) the following:
            ``(10) use instructional programs based on scientifically 
        based reading research (as defined in section 2252) for 
        children and, to the extent such research is available, for 
        adults;
            ``(11) encourage participating families to attend regularly 
        and to remain in the program a sufficient time to meet their 
        program goals;
            ``(12) include reading readiness activities for preschool 
        children based on scientifically based reading research (as 
        defined in section 2252) to ensure children enter school ready 
        to learn to read;''; and
            (5) in paragraph (14) (as so redesignated), by striking 
        ``program.'' and inserting ``program to be used for program 
        improvement.''.
    (j) Eligible Participants.--Section 1206 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6366) is amended--
            (1) in subsection (a)(1)(B) by striking ``part;'' and 
        inserting ``part, or who are attending secondary school;''; and
            (2) in subsection (b), by adding at the end the following:
            ``(3) Children 8 years of age or older.--If an Even Start 
        program assisted under this part collaborates with a program 
        under part A, and funds received under such part A program 
        contribute to paying the cost of providing programs under this 
        part to children 8 years of age or older, the Even Start 
        program, notwithstanding subsection (a)(2), may permit the 
        participation of children 8 years of age or older.''.
    (k) Plan.--Section 1207(c) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6367(c)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``and continuous improvement'' after ``plan 
                of operation'';
                    (B) in subparagraph (A), by striking ``goals;'' and 
                inserting ``objectives, strategies to meet such 
                objectives, and how they are consistent with the 
                program indicators established by the State;'';
                    (C) in subparagraph (E), by striking ``and'' at the 
                end;
                    (D) in subparagraph (F)--
                            (i) by striking ``Act, the Goals 2000: 
                        Educate America Act,'' and inserting ``Act''; 
                        and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (E) by adding at the end the following:
                    ``(G) a description of how the plan provides for 
                rigorous and objective evaluation of progress toward 
                the program objectives described in subparagraph (A) 
                and for continuing use of evaluation data for program 
                improvement.''; and
            (2) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``(1)(A)'' and inserting ``(1)''.
    (l) Award of Subgrants.--Section 1208 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6368) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(B)--
                            (i) by striking ``including a high'' and 
                        inserting ``such as a high''; and
                            (ii) by striking ``part A;'' and inserting 
                        ``part A, a high number or percentage of 
                        parents who have been victims of domestic 
                        violence, or a high number or percentage of 
                        parents who are receiving assistance under a 
                        State program funded under part A of title IV 
                        of the Social Security Act (42 U.S.C. 601 et 
                        seq.);'';
                    (B) in paragraph (1)(F), by striking ``Federal'' 
                and inserting ``non-Federal'';
                    (C) in paragraph (1)(H), by inserting ``family 
                literacy projects and other'' before ``local 
                educational agencies''; and
                    (D) in paragraph (3), in the matter preceding 
                subparagraph (A), by striking ``one or more of the 
                following individuals:'' and inserting ``one individual 
                with expertise in family literacy programs, and may 
                include other individuals, such as one or more of the 
                following:''; and
            (2) in subsection (b)--
                    (A) by striking paragraph (3) and inserting the 
                following:
            ``(3) Continuing eligibility.--In awarding subgrant funds 
        to continue a program under this part after the first year, the 
        State educational agency shall review the progress of each 
        eligible entity in meeting the objectives of the program 
        referred to in section 1207(c)(1)(A) and shall evaluate the 
        program based on the indicators of program quality developed by 
        the State under section 1210.''; and
                    (B) by amending paragraph (5)(B) to read as 
                follows:
            ``(B) The Federal share of any subgrant renewed under 
        subparagraph (A) shall be limited in accordance with section 
        1204(b).''.
    (m) Research.--Section 1211 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6369b) is amended--
            (1) in subsection (b), by striking ``subsection (a)'' and 
        inserting ``subsections (a) and (b)'';
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following:
    ``(b) Scientifically Based Research on Family Literacy.--
            ``(1) In general.--From amounts reserved under section 
        1202(b)(2), the National Institute for Literacy shall carry out 
        research that--
                    ``(A) is scientifically based reading research (as 
                defined in section 2252); and
                    ``(B) determines--
                            ``(i) the most effective ways of improving 
                        the literacy skills of adults with reading 
                        difficulties; and
                            ``(ii) how family literacy services can 
                        best provide parents with the knowledge and 
                        skills they need to support their children's 
                        literacy development.
            ``(2) Use of expert entity.--The National Institute for 
        Literacy shall carry out the research under paragraph (1) 
        through an entity, including a Federal agency, that has 
        expertise in carrying out longitudinal studies of the 
        development of literacy skills in children and has developed 
        effective interventions to help children with reading 
        difficulties.''.
    (n) Treatment of Religious Organizations.--Part B of title I of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6361 et seq.) 
is amended by adding at the end the following:

``SEC. 1213. RELIGIOUS ORGANIZATIONS.

    ``(a) Religious Organizations Included as Partnership 
Participants.--In carrying out this part, the Secretary, and any 
grantee or subgrantee receiving assistance under this part, shall treat 
religious organizations the same as other nongovernmental 
organizations, so long as this part is implemented in a manner 
consistent with the Establishment Clause and the Free Exercise Clause 
of the first amendment to the Constitution. The Secretary, and any 
grantee or subgrantee receiving assistance under this part, shall not 
discriminate against an organization that participates in a partnership 
that is an eligible entity receiving assistance under this part, or an 
organization that participates in a partnership that is applying to 
receive such assistance, on the basis that the organization has a 
religious character.
    ``(b) Religious Character and Independence.--
            ``(1) In general.--A religious organization that 
        participates in a partnership that is an eligible entity 
        receiving assistance under this part, or that participates in a 
        partnership that is applying to receive such assistance, shall 
        retain its religious character and control over the definition, 
        development, practice, and expression of its religious beliefs.
            ``(2) Additional safeguards.--Neither the Federal 
        Government nor a State or local government shall require a 
        religious organization--
                    ``(A) to alter its form of internal governance; or
                    ``(B) to remove religious art, icons, scripture, or 
                other symbols,
        in order to be eligible to participate in a partnership that is 
        an eligible entity receiving assistance under this part or to 
        participate in a partnership that is applying to receive such 
        assistance.
            ``(3) Employment practices.--A religious organization's 
        exemption provided under section 702 of the Civil Rights Act of 
        1964 (42 U.S.C. 2000e-1) regarding employment practices shall 
        not be affected by its participation in, or receipt of funds 
        from, a program under this part.
    ``(c) Limitations on Use of Funds for Certain Purposes.--No funds 
provided to a religious organization under this part or section 1002(b) 
shall be expended for sectarian worship or instruction or 
proselytization.
    ``(d) Prohibition on Serving as Fiscal Agent.--A religious 
organization may not serve as a fiscal agent for a partnership that is 
an eligible entity receiving a subgrant under this part.
    ``(e) Nondiscrimination Against Beneficiaries.--A religious 
organization shall not discriminate against an individual, in regard to 
rendering services under this part, on the basis of religion, a 
religious belief, or refusal actively to participate in a religious 
practice.
    ``(f) Federal Financial Assistance.--For purposes of any Federal, 
State, or local law, receipt of financial assistance under this part or 
section 1002(b) shall constitute receipt of Federal financial 
assistance or aid.
    ``(g) Fiscal Accountability.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        religious organization providing services under this part shall 
        be subject to the same regulations as other entities providing 
        services under this part to account in accord with generally 
        accepted auditing principles.
            ``(2) Limited audit.--If such organization segregates 
        Federal funds provided under this part into a separate account 
        or accounts, then only the Federal funds used to provide 
        services shall be subject to audit.
    ``(h) Treatment of Program Participants.--
            ``(1) In general.--An eligible entity may not subject a 
        participant in an Even Start program assisted under this part, 
        during such program, to sectarian worship or instruction or 
        proselytization.
            ``(2) Construction.--Paragraph (1) shall not be construed 
        to affect any program that is not an Even Start program 
        (regardless of whether it is carried out before, after, or at 
        the same time as an Even Start program).

``SEC. 1214. PROHIBITION ON VOUCHERS OR CERTIFICATES.

    ``Notwithstanding any other provision of this Act, no services 
under this part may be provided through voucher or certificate.''.

SEC. 104. EDUCATION OF MIGRATORY CHILDREN.

    Section 1304(b) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6394(b)) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) a description of how the State will encourage 
        programs and projects assisted under this part to offer family 
        literacy services if the program or project serves a 
        substantial number of migratory children who have parents who 
        do not have a high school diploma or its recognized equivalent 
        or who have low levels of literacy.''.

SEC. 105. DEFINITIONS.

    (a) In General.--Section 14101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8801) is amended--
            (1) by redesignating paragraphs (15) through (29) as 
        paragraphs (16) through (30), respectively; and
            (2) by inserting after paragraph (14) the following:
            ``(15) Family literacy services.--The term `family literacy 
        services' means services provided to participants on a 
        voluntary basis 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 
                primary 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.''.
    (b) Conforming Amendments.--
            (1) Even start family literacy programs.--Section 1202(e) 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6362(e)) is amended--
                    (A) by striking paragraph (3); and
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.
            (2) Reading and literacy grants.--Section 2252 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6661a) is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively.

SEC. 106. INDIAN EDUCATION.

    (a) Early Childhood Development Program.--Section 1143 of the 
Education Amendments of 1978 (25 U.S.C. 2023) is amended--
            (1) in subsection (b)(1), in the matter preceding 
        subparagraph (A)--
                    (A) by striking ``(f)'' and inserting ``(g)''; and
                    (B) by striking ``(e))'' and inserting ``(f))'';
            (2) in subsection (d)(1)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following:
                    ``(D) family literacy services,'';
            (3) in subsection (e), by striking ``(f),'' and inserting 
        ``(g),'';
            (4) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (5) by inserting after subsection (d) the following:
    ``(e) Family literacy programs operated under this section, and 
other family literacy programs operated by the Bureau of Indian 
Affairs, shall be coordinated with family literacy programs for 
American Indian children under part B of title I of the Elementary and 
Secondary Education Act of 1965 in order to avoid duplication and to 
encourage the dissemination of information on quality family literacy 
programs serving American Indians.''.
    (b) Definitions.--Section 1146 of the Education Amendments of 1978 
(25 U.S.C. 2026) is amended--
            (1) by redesignating paragraphs (7) through (14) as 
        paragraphs (8) through (15), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) the term `family literacy services' has the meaning 
        given such term in section 14101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 8801);''.

            TITLE II--INEXPENSIVE BOOK DISTRIBUTION PROGRAM

SEC. 201. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING MOTIVATION.

    (a) Authorization.--Section 10501(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8131(a)) is amended by 
striking ``books to students, that motivate children to read.'' and 
inserting ``books to young and school-aged children that motivate them 
to read.''.
    (b) Requirements of Contract.--Section 10501(b)(4) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8131(b)(4)) 
is amended by inserting ``training and'' before ``technical 
assistance''.
    (c) Authorization of Appropriations.--Section 10501(e) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8131(e)) is 
amended--
            (1) by striking ``$10,300,000 for fiscal year 1995'' and 
        inserting ``$20,000,000 for fiscal year 2000''; and
            (2) by striking ``four'' and inserting ``five''.
    (d) Statement of Purpose.--Section 10501 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8131) is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (g) and (h), respectively;
            (2) by redesignating subsections (a) through (c) as 
        subsections (b) through (d), respectively; and
            (3) by inserting after the section heading the following:
    ``(a) Purpose.--The purpose of this program is to establish and 
implement a model partnership between a governmental entity and a 
private entity, to help prepare young children for reading, and 
motivate older children to read, through the distribution of 
inexpensive books. Local reading motivation programs assisted under 
this section shall use such assistance to provide books, training for 
volunteers, motivational activities, and other essential literacy 
resources, and shall assign the highest priority to serving the 
youngest and neediest children in the United States.''.
    (e) New Provisions.--Section 10501 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8131) is amended by inserting before 
subsection (g) (as so redesignated by subsection (d)) the following:
    ``(e) Special Rules for Certain Subcontractors.--
            ``(1) Funds from other federal sources.--Subcontractors 
        operating programs under this section in low-income communities 
        with a substantial number or percentage of children with 
        special needs, as described in subsection (c)(3), may use funds 
        from other Federal sources to pay the non-Federal share of the 
        cost of the program, if those funds do not comprise more than 
        50 percent of the non-Federal share of the funds used for the 
        cost of acquiring and distributing books.
            ``(2) Waiver authority.--Notwithstanding subsection (c), 
        the contractor may waive, in whole or in part, the requirement 
        in subsection (c)(1) for a subcontractor, if the subcontractor 
        demonstrates that it would otherwise not be able to participate 
        in the program, and enters into an agreement with the 
        contractor with respect to the amount of the non-Federal share 
        to which the waiver will apply. In a case in which such a 
        waiver is granted, the requirement in subsection (c)(2) shall 
        not apply.
    ``(f) Multi-Year Contracts.--The contractor may enter into a multi-
year subcontract under this section, if--
            ``(1) the contractor believes that such subcontract will 
        provide the subcontractor with additional leverage in seeking 
        local commitments; and
            ``(2) the subcontract does not undermine the finances of 
        the national program.''.

SEC. 202. EFFECTIVE DATE.

    The amendments made by section 201 shall take effect on October 1, 
2000.

            Passed the House of Representatives September 12, 2000.

            Attest:

                                                                 Clerk.