[Senate Report 105-208]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 404
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-208
_______________________________________________________________________


 
                         READING EXCELLENCE ACT

                                _______
                                

                 June 10, 1998.--Ordered to be printed

_______________________________________________________________________


    Mr. Jeffords, from the Committee on Labor and Human Resources, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2614]

    The Committee on Labor and Human Resources, to which was 
referred the bill (H.R. 2614) to improve the reading and 
literacy skills of children and families by improving in-
service instructional practices for teachers who teach reading, 
to stimulate the development of more high-quality family 
literacy programs, to support extended learning-term 
opportunities for children, to ensure that children can read 
well and independently not later than third grade, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment (in the nature of a substitute) and 
recommends that the bill (as amended) do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and summary..............................................1
 II.  Background and need for the legislation.........................2
III. History of the legislation and votes in committee................3
 IV.  Explanation of the bill and committee views.....................5
  V.  Cost estimate...................................................8
 VI.  Regulatory impact statement....................................10
VII.  Application of the law to the legislative branch...............10
VIII.Section-by-section analysis.....................................11

 IX.  Changes in existing law........................................14

                         I. Purpose and Summary

    The purpose of H.R. 2614, as amended by the Senate 
Committee on Labor and Human Resources, is to provide 
assistance to States and local communities primarily through 
teacher training in reading instruction. This purpose will be 
accomplished by amending title II of the Dwight D. Eisenhower 
Professional Development Program as established by the 
Elementary and Secondary Education Act of 1965.
    Each State will have the opportunity to submit a grant 
application to the Department of Education. If a State 
application is approved, funding will be provided to a State 
for the use of teacher training activities in reading.
    The State educational agency will award grants to local 
educational agencies where there is a demonstrated need for 
improved reading instruction. The local educational agencies 
will form partnerships with such entities as community-based 
organizations, early childhood organizations, adult education 
and family literacy programs, or libraries. The purpose of 
these partnerships will be to improve the teaching of reading 
and the reading achievement of children and their families.
    The National Institute for Literacy will be responsible for 
developing and maintaining strong networks to disseminate best 
practices based on research information to improve reading and 
literacy. the National Institute for Literacy will coordinate 
their efforts with the Secretary of Education, the National 
Center for Family Literacy, and the Readline Program.
    The second title of H.R. 2614 authorizes $10 million for 
Even Start grants to implement statewide family literacy 
activities.
    H.R. 2614, as amended by the Senate Committee on Labor and 
Human Resources, authorizes $210 million for each year if 
funding for the Individuals with Disabilities Education Act has 
been increased by at least $500 million in each previous year.
    The Reading Excellence Act is scheduled to sunset on 
September 30, 2000.

              II. Background and Need for the Legislation

    The most recent national survey of reading achievement by 
fourth graders (the 1994 National Assessment of Educational 
Progress) indicates that 44 percent of school children are 
reading below a basic level of achievement. Unfortunately, 
these statistics do not improve when looking at the findings 
from the most recent National Adult Literacy Survey. This 
survey found that over 40 million adults were at the lowest 
literacy level. Adults in this category displayed difficulty 
using reading and writing skills essential for carrying out 
daily activities.
    There are several federally funded programs that attempt to 
address the literacy issue. These include: Title I of the 
Elementary and Secondary Education Act which supports 
instructional activities that help students meet high standards 
in core subject areas such as reading and math; Even Start 
provides family literacy programs for parents and children; 
Reading Is Fundamental (RIF) promotes the establishment of 
reading programs, including the distribution of inexpensive 
books to students in order to encourage students to read; and 
Adult Education State Grants which give assistance to 
educationally disadvantaged adults in developing basic literacy 
skills. These programs have a good track record for those they 
have served. However, many individuals are not able to 
participate in these programs. For example: Title One currently 
only serves two-thirds of those students eligible to receive 
Title I services; Even Start provides support to about one-
fourth of those individuals who could be assisted by 
participation in the Even Start program; and Adult Education is 
estimated to serve only one-seventh of those adults who are 
functionally illiterate.
    In addition to federally supported reading and literacy 
programs, there are also many private initiatives underway that 
are aimed at combating illiteracy. One such effort is the 
Everybody Wins program which matches up reading volunteers with 
young students. Volunteer efforts are important, but they alone 
will not eradicate this nation's growing illiteracy problem.
    In order to improve this Nation's reading ability, we must 
have teachers who are appropriately trained to teach reading to 
both children and adults. The Reading Excellence Act, H.R. 
2614, as amended by the Senate Committee on Labor and Human 
Resources, expands the current Eisenhower Professional 
Development Program to include teacher training for reading. By 
emphasizing the importance of professional development for 
reading, those programs that currently attempt to address 
literacy issues will be greatly enhanced.

         III. History of the Legislation and Votes in Committee

                         full committee hearing

    On April 28, 1998, the Committee on Labor and Human 
Resources held an overview hearing on reading and literacy. The 
hearing focused on the need for expanding and improving teacher 
training for reading. This was highlighted by Blanche 
Podhajski, president of the Stern Center for Language and 
Learning in Williston, VT. Dr. Podhajski said that access to 
highly skilled teachers is the key to children learning how to 
read and that the personnel preparation for the teaching of 
reading is incomplete. In addition, the hearing also 
illustrated the importance of family literacy programs. Raynice 
Brumfield, an adult student in the District of Columbia Public 
Schools Head Start Toyota Family Literacy Program, testified 
that through her participation in a family literacy program, 
she is now able to read at a tenth grade level and will soon 
begin working at George Washington University.
    Dr. Catherine Snow, chair of the Committee on the 
Prevention of Reading Difficulties in Young Children and Dr. 
Reid Lyon, chief of the Learning Disabilities and Developmental 
Psychology Branch at the National Institute of Child Health and 
Human Development testified about various methods which may be 
used in teaching reading. Both commented that there must be an 
emphasis on professional development for reading. Teacher 
preparation in reading instruction should include phoneme 
awareness, phonics, fluency, and reading comprehension.
    The committee also heard from Dr. Perri Klass, from the 
Department of Pediatrics at Boston Medical Center, who 
discussed the importance of exposing children to books early in 
life, and presented a pediatric literacy program known as Reach 
Out and Read. At its 300 sites nationwide, pediatricians 
encourage parents to read aloud to their infants and young 
children, advise patients on practical tips on how to do so, 
and give them new, age-appropriate children's books at well-
child checkups from six months to five years old.
    Charles Bunting, Chancellor of Vermont State Colleges, 
presented testimony about the role of college work study 
students in tutoring children in reading. Chancellor Bunting 
discussed the importance of having a formal training program 
for those college work study students participating in a 
reading tutoring effort. Chancellor Bunting was joined by 
Dawnna Lactot, a Community College of Vermont student from 
Danville, Vermont who shared with the committee her reading 
tutoring experience with Vermont students.
    Peggy Minnis, the program coordinator of the D.C. Head 
Start Toyota Family Literacy Program, discussed the successful 
partnership that exists in her project between Head Start, the 
National Center for Family Literacy, and the Toyota 
Corporation. This partnership has been effective in enhancing 
the reading literacy levels of both children and their parents.
    The April 28, 1998 hearing also received testimony from 
Noel Gunther, the executive director of the W.E.T.A. Learning 
Project in Arlington, Virginia. Mr. Gunther's testimony focused 
on the Readline project which would primarily provide 
assistance on teaching reading to both teachers and parents 
through television, video tapes, the Internet, and 
teleconferences. The hearing concluded with testimony presented 
by Janet Arnowitz, a teacher in the Fairfax County, VA, school 
system. Ms. Arnowitz discussed the importance of professional 
development.

                           executive session

    On May 13, 1998, the Committee on Labor and Human Resources 
met in executive session to consider H.R. 2614. Following 
opening statements, three amendments were offered.
    The first was offered by Senator Jeffords. The amendment 
was offered as a substitute to the original text of H.R. 2614. 
The substitute included the following provisions: amending the 
Eisenhower Professional Development Program to include a new 
section for teacher training for reading instruction; providing 
processes for awarding grants to States and for the awarding of 
grants by States to local educational agencies; tutorial 
training to support extended learning time opportunities; 
dissemination of best practices research information through 
the National Institute for literacy; the expansion of the Even 
Start program; and the inclusion of a funding trigger for the 
Reading Excellence Act based on increasing the annual 
appropriation for the Individuals with Disabilities Education 
Act. The substitute was agreed to by unanimous voice vote.
    Following consideration of Senator Jeffords' substitute, 
Senator Jeffords offered a set of en bloc amendments. The en 
bloc amendments included the following items: targeting the 
with-in State grants to high poverty school districts with the 
greatest needs for improved reading instruction; ensuring that 
State and local professional development activities are based 
on the best available research in reading instruction; 
strengthening assessment provisions for local educational 
agencies; requiring State educational agencies to submit annual 
evaluation reports; requiring the Secretary of Education to 
consult with the National Research Council and the National 
Institute for Child Health and Human Development during the 
peer review process; providing that teacher training in reading 
instruction includes phonemic awareness, phonics, fluency, and 
reading comprehension. The en bloc amendments were agreed to by 
an unanimous voice vote.
    The third amendment was offered by Senator Gregg. The 
purpose of the amendment was to increase the Individuals with 
Disabilities Education Act trigger from $250 million to $500 
million. In order for funding to be appropriated annually for 
the Reading Excellence Act, the appropriation for the 
Individuals with Disabilities Education Act in the previous 
year must be increased by $500 million. The amendment was 
adopted by an unanimous voice vote.
    After the amendments were considered, H.R. 2614, the 
Reading Excellence Act was voted out favorably by the committee 
by a vote of 18 yeas and 0 nays.

            IV. Explanation of the Bill and Committee Views

    Last November, the House of Representatives passed the 
Reading Excellence Act, H.R. 2614, which was sponsored by 
Representative Bill Goodling, Chairman of the House Education 
and Workforce Committee. A similar bill, S. 1596, was 
introduced in the Senate by Senator Paul Coverdell earlier this 
year. The goal of this legislation is to improve the reading 
and literacy skills of children and families.
    During the committee's hearing on H.R. 2614, witness after 
witness emphasized the necessity of having teachers who were 
appropriately trained to teach reading to both children and 
adults. Following the hearing, the committee believed that it 
was essential to further enhance the professional development 
sections of H.R. 2614 without adding new Federal, State, or 
local bureaucracies to implement the professional development 
activities.
    The bipartisan objective of the committee was to expand the 
Eisenhower Professional Development Program, which is now 
geared toward math and science teacher training, to include 
professional development for reading. The Eisenhower program 
has been very effective and has an administrative structure 
that would effectively work for the implementation of 
professional development activities for teacher training for 
reading instruction. The committee believes that without having 
to add a new administrative structure, most of the funding 
allocated under the Reading Excellence Act will be used for 
direct services with the primary focus on professional 
development.

       Title I--Professional Development in Reading and Literacy

                           state applications

    Each State educational agency seeking funding under this 
program must submit an application to the Secretary of 
Education which the Secretary will either approve or 
disapprove. A State educational agency may join with other 
State educational agencies to develop a single application for 
a multi-State arrangement.
    Each State plan must be developed in conjunction with the 
Governor of the State (in those States where the Governor does 
not appoint the Chief State School Officer), the State agency 
for higher education, community-based and other nonprofit 
organizations with demonstrated effectiveness in reading 
readiness, reading instruction for both adults and children, 
and early childhood literacy, institutions of higher education 
or schools of education, and State directors of appropriate 
Federal and State programs with a strong reading or literacy 
component, and with teachers.
    In developing the State plan, an associate must be carried 
out pertaining to the local needs for reading and literacy 
professional development. Additionally, an assessment should 
also examine the availability, adequacy, and age 
appropriateness of reading and library materials within 
schools.
    The State plan must also assess and describe: the needs of 
local educational agencies serving rural and urban areas; of 
teachers; the use of technology in regard to professional 
development; parental participation in literacy-related 
activities; the role of reading tutors; how the State 
educational agency will provide technical assistance to local 
educational agencies; how the State educational agency will 
coordinate literacy programs; how the State educational agency 
will provide access to diverse and age-appropriate reading 
material; an evaluation process; how each local educational 
agency will carry out family literacy programs; and will carry 
out programs to assist those pre-kindergarten and kindergarten 
students who are not ready for the transition to first grade.

                           state use of funds

    Each State educational agency that receives funds under the 
Reading Excellence Act shall implement the following 
activities: providing technical assistance to schools and local 
educational agencies; conducting an assessment pertaining to 
the State's needs for reading and literacy professional 
development, including an assessment adequate and age 
appropriate reading and library materials; coordinating reading 
and literacy programs; and conducting evaluations of local 
educational agency literacy activities.
    Each grant that is awarded will be for three years in 
duration.

local plan for improving teaching and learning of reading and literacy 
                                programs

    Each local educational agency seeking funds under the 
Reading Excellence Act shall submit an application to the State 
educational agency for approval. In addition, each local 
educational agency requesting financial assistance must form a 
partnership with one or more community-based organizations with 
demonstrated effectiveness in reading readiness, reading 
instruction and reading achievement for adults and children.
    The local plan must include descriptions of the following: 
an assessment of local needs for reading and literacy 
professional development; an assessment of the needs of 
teachers; parental participation in reading and literacy 
activities; tutorial participation in literacy activities; how 
the local educational agency will work with the local public 
library to promote family literacy activities; how the local 
educational agency will promote coordination among literacy 
programs; how the local educational agency will carry out 
family literacy activities; and other public funds or private 
sources that may be used for literacy programs.

                            local activities

    Each local educational agency must use the funds for the 
following activities: supporting partnerships among pre-
schools, elementary schools, secondary schools, consortia of 
schools, local educational agencies, community-based 
organizations and public libraries, libraries would provide 
outreach to preschool children to promote reading readiness and 
family literacy activities; professional development for 
teachers and tutors that includes training in phoneme 
awareness, phonics, fluency, and reading comprehension; 
parental involvement literacy programs; promoting programs that 
provide access to diverse and age-appropriate reading material, 
including an assessment of adequate age-appropriate reading and 
library materials; coordinating literacy programs, including 
family literacy efforts; and establishing programs to assist 
pre-kindergarten and kindergarten students, especially for 
those students not ready for the transition to first grade.
    Public libraries are very important partners for carrying 
out the Reading Excellence Act activities. Unfortunately, not 
all communities have public libraries. If the local educational 
agency is situated in a community that does not have a public 
library, the local educational agency is not required to 
include a public library in the partnership.
    A local educational agency that is awarded a grant under 
the Reading Excellence Act would be required to provide 
professional development to teachers in schools that have the 
greatest need for such services. The greatest need would be 
determined by poor student performance on reading assessments, 
a higher percentage of students from low-income families, or a 
combination of both.

                      local distribution of funds

    Each local educational agency receiving a grant under the 
Reading Excellence Act, will not use less than eighty percent 
of the funds for professional development in reading 
instruction for teachers at individual schools. Not more than 
20 percent shall be used for professional development efforts 
at the school district level.

                       information dissemination

    The National Institute for Literacy is required to 
disseminate reading and literacy information. In carrying out 
this effort, the institute shall use information networks that 
have been developed by the Secretary of Education, the National 
Center for Family Literacy, and the Readline Program.
    The National Institute for Literacy is also encouraged to 
work with a leading local non-profit captioning agency with 
experience in education research to determine how captioned 
television may be used for family literacy activities.

                    authorization of appropriations

    $210 million is authorized for each of the fiscal years 
1998, 1999, and 2000 for carrying out the Reading Excellence 
Act. From the $210 million authorization, $10 million will be 
made available for the Even Start program and $5 million is 
reserved for the National Institute for Literacy to carry out 
dissemination activities. However, actual funding of the 
Reading Excellence Act will only occur if the amount 
appropriated to carry out the Individuals with Disabilities 
Education Act for fiscal years 1998, 1999, and 2000 exceeds by 
$500 million the amount appropriated for fiscal years 1997, 
1998, and 1999 respectively.

      Title II--Amendments to Even Start Family Literacy Programs

                         reservation for grants

    Funds awarded under this title will be used to enable 
states to plan and implement statewide family literacy 
initiatives to coordinate and integrate Federal, State, and 
local literacy resources. To receive a grant, a State must 
establish a consortium of literacy related programs. Each State 
that receives funding must provide a matching contribution to 
the Federal funds. The State match would be an amount equal to 
the Federal funds that were allocated under the grant.

                               evaluation

    States and entities receiving funding under this title 
would be required to carry out evaluations regarding the 
effectiveness of the initiatives.

                     indicators of program quality

    States shall use specific indicators in the evaluation 
process. For adult literacy programs, those indicators are: 
achievement in reading, writing, English language acquisition, 
problem solving, and numeracy; receipt of a secondary school 
diploma or its recognized equivalent; entry into a 
postsecondary school, a job retraining program, or employment 
or career advancement, including the military; and other 
indicators the State may develop. With respect to literacy 
activities involving children, those indicators are: 
improvement in the ability to read on grade level or reading 
readiness; school attendance; grade retention and promotion; 
and other indicators the State may develop.

                                research

    The Secretary of Education is required to carry out 
research pertaining to successful family literacy services. The 
National Institute for Literacy will be responsible for 
disseminating the results of the research.

                            V. Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 1, 1998.
Hon. James M. Jeffords,
Chairman, Committee on Labor and Human Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman. The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2614, an act to 
improve the reading and literacy skills of children and 
families.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Justin Latus.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

H.R. 2614--An act to improve the reading and literacy skills of 
        children and families

    Summary: H.R. 2614 would authorize appropriations of $210 
million for each of fiscal years 1998-2000 for grants to states 
for literacy programs if certain conditions are met. Funding 
has already been provided for fiscal year 1998. Assuming 
appropriation of the authorized amounts for 1999 and 2000, 
outlays for these programs would total $630 million over the 
1998-2003 period. Because enactment of H.R. 2614 would not 
affect direct spending or receipts, pay-as-you-go procedures 
would not apply.
    H.R. 2614 contains no intergovernmental or private-sector 
mandates, as defined in the Unfunded Mandates Reform Act 
(UMRA). Any requirements imposed on states and local education 
agencies would be conditions for receiving federal assistance 
under the programs authorized in the bill.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2614 is shown in the following table. 
The costs of this legislation fall within budget function 500 
(education, training, employment, and social services).

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1998     1999     2000     2001     2002     2003 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending under current law:\1\                                                                                  
    Budget authority......................................      210        0        0        0        0        0
    Estimated outlays.....................................       11      136       53       11        0        0
Proposed changes:                                                                                               
    Authorization level...................................        0      210      210        0        0        0
    Estimated outlays.....................................        0       11      147      189       63       11
Total spending under H.R. 2614:                                                                                 
    Authorization level...................................      210      210      210        0        0        0
    Estimated outlays.....................................       11      147      200      200       63       11
----------------------------------------------------------------------------------------------------------------
\1\ Public Law 105-78 appropriated $210 million for fiscal year 1998 for literacy programs, if authorizing      
  legislation was enacted by July 1, 1998. Otherwise the money would be used for special education programs.    

    Basis of estimate: The act would authorize appropriations 
of $210 million for literacy grants in any of the fiscal years 
1998, 1999, and 2000 in which appropriations for special 
education (pursuant to the Individuals with Disabilities 
Education Act) are at least $500 million higher than in the 
previous year. Funding for the special education program in 
fiscal year 1998 was $4.8 billion, exceeding the $4.0 billion 
the program received in 1997 by more than $500 million. H.R. 
2614, therefore, would authorize 1998 appropriations of $210 
million for literacy programs. For the purposes of this 
estimate, CBO assumes that the $500 million increases in 
appropriations would occur in subsequent years as well. We 
therefore estimate that the bill would also authorize 
appropriations of $210 million for literacy programs for fiscal 
years 1999 and 2000, totaling $630 million over the three-year 
period. H.R. 2614 states that notwithstanding the General 
Education Provisions Act, authorizations of appropriations for 
this program would not be automatically extended one more year.
    Funding for the 1998 authorization has already been 
appropriated. The Departments of Labor, Health and Human 
Services, and Education, and Related Agencies Appropriations 
Act, 1998 (Public Law 105-78) made $210 million available for 
literacy programs on July 1, 1998, provided that authorizing 
legislation was enacted by that date. Otherwise, the money will 
be transferred to the special education account. Pursuant to 
standardscorekeeping rules, the appropriation bill was charged 
with the $210 million cost at the time Public Law 105-78 was enacted, 
and thus H.R. 2614 would not have a direct spending impact.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2614 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Any requirements imposed on states and local 
education agencies would be conditions for receiving federal 
assistance under the programs authorized in the bill. CBO 
estimates that, under H.R. 2614, states and local education 
agencies would receive $204 million annually in grants for 
fiscal years 1998 to 2000, assuming appropriation of the 
necessary funds.
    Previous CBO estimate: On October 24, 1997, CBO provided an 
estimate for H.R. 2614, the Reading Excellence Act of 1997, 
which had been reported out of the House Committee on Education 
and the Workforce. The House-reported version of H.R. 2614 
authorized appropriations of $260 million a year for three 
years.
    Estimate prepared by: Federal costs: Justin Latus; Impact 
on State, local, and tribal governments: Marc Nicole; Impact on 
the private sector: Nabeel Alsalam.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.
    The Congressional Budget Office has determined that the 
costs associated with H.R. 2614 fall within budget function 500 
(education, training, employment, and social services).

                    VI. Regulatory Impact Statement

    The Committee has determined that H.R. 2614 may result in 
some additional paperwork, time, and costs to the Department of 
Education which would be entrusted with implementation and 
enforcement of the act. It is difficult to estimate the volume 
of additional paperwork necessary by the act, but the committee 
does not believe it will be significant.

         VII. Application of the Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1, the Congressional 
Accountability Act (CAA), requires a description of the 
application of this bill to the legislative branch. H.R. 2614 
amends title II and section 1202 of the Elementary and 
Secondary Education Act of 1965. Therefore, H.R. 2614 does not 
amend any act that applies to the legislative branch.

                   VIII. Section-by-Section Analysis

       Title 1--Professional Development in Reading and Literacy

Section 101. Professional development in reading and literacy

    Section 101 specifies the name for title I.

        part C--professional development in reading and literacy

Section 2251. Program authorized

    Section 2251 authorizes the Secretary to award grants to 
State educational agencies for reading and literacy 
professional development activities.

Section 2252. Allotment of funds

    Section 2252(a)(1) specifies a reservation of funds for the 
outlying areas.
    Section 2252(a)(2) specifies a reservation of funds for 
schools operated by the Bureau of Indian Affairs.
    Section 2252(b)(1)(2) specifies a calculation of State 
allotments.
    Section 2252(e) established the reallotment procedure.

Section 2253. Within-State allocations

    Section 2253(a) specifies that five percent may be reserved 
for State administrative costs.
    Section 2253(b) specifies the calculation of determining 
the within State allocations.

Section 2254. Consortia requirements

    Section 2254(a) specifies that a local educational agency 
that receives less than $10,000 shall form a consortium with 
another local educational agency or an education service agency 
serving another local educational agency.
    Section 2254(b)(1)(2) establishes that a State educational 
agency may grant a waiver to a local educational agency in 
regard to consortia requirements.
    Section 2254(c) specifies that each established consortium 
shall use technology or other mechanisms to implement 
professional development programs.

Section 2255. State applications

    Section 2255(a) establishes that each State educational 
agency must submit an application.
    Section 2255(b)(1) describes the State plan.
    Section 2255(b)(2) describes the contents of the State 
plan. The contents include: State and local assessments of the 
needs for reading and literacy professional development 
activities; a description of the needs of local educational 
agencies serving rural and urban areas; an assessment of the 
needs of teachers, parents, and tutors in enhancing children's 
reading fluency; a description of how the State educational 
agency will provide technical assistance; a description of how 
the State educational agency will promote the coordination of 
literacy programs in the State; a description of how the State 
educational agency will evaluate the local educational 
agencies' activities; a description of how the State 
educational agency will provide access to diverse and age-
appropriate reading materials; and an assurance that each 
participating local educational agency must carry out a family 
literacy program.
    Section 2255(c)(1) specifies the approval process for grant 
applications.
    Section 2255(c)(2) specifies the disapproval process for 
grant applications.
    Section 2255(c)(3) establishes a peer review process for 
grant applications.
    Section 2255(d) establishes compliance requirements for the 
State plan.
    Section 2255(e) describes an option for more than 1 State 
educational agency to submit a multi-State application.

Section 2256. State use of funds

    Section 2256(a) describes State educational agency 
activities.
    Section 2256(a)(1) provides for technical assistance in 
carrying out professional development and literacy activities.
    Section 2256(a)(2) establishes a State assessment process.
    Section 2256(a)(3) provides for State coordination of 
reading and literacy programs.
    Section 2256(4) establishes the evaluation process.
    Section 2256(b)(1) describes the awarding of grants by the 
State educational agency to local educational agencies within 
the State.
    Section 2256(b)(2) establishes that grants are awarded for 
three years.

Section 2257. Local plan for improving teaching and learning of reading 
        and literacy programs

    Section 2257(a) describes the local educational agency 
application process.
    Section 2257(b) describes a special rule which requires a 
local educational agency to form a partnership with one or more 
community-based organizations which have demonstrated 
effectiveness in carrying out activities related to reading 
readiness and reading instruction.
    Section 2257(c) describes the contents of the local plan.
    Section 2257(c)(1) establishes a local needs assessment.
    Section 2257(c)(2) requires a description of the needs of 
teachers.
    Section 2257(c)(3) requires a description of how parental 
participation will be addressed.
    Section 2257(c)(4) requires a description of how tutors can 
participate.
    Section 2257(c)(5) requires a description of how the local 
educational agency will coordinate literacy programs.
    Section 2257(c)(6) requires a description of how the local 
educational agency will carry out family literacy programs.
    Section 2257(c)(7) requires a description of how the local 
educational agency will coordinate reading activities.
    Section 2257(c)(8) requires a description of other public 
or private funding that may be combined with funds awarded 
under this part.
    Section 2257(d) establishes local plan approval.

Section 2258. Local activities

    Section 2258 establishes that each local educational agency 
shall use grant fundsfor activities including: supporting 
partnerships for professional development activities; providing 
activities to parents that will enhance their children's reading 
fluency; providing professional development for tutors; promoting 
programs that provide diverse and age-appropriate reading material; 
providing coordination of reading programs (including family literacy 
programs).

Section 2259. Local distribution of funds

    Section 2259 describes the local distribution of funds.

Section 2260. Information dissemination

    Section 2260(a) establishes that the National Institute for 
Literacy shall disseminate reading and literacy information;
    Section 2260(b) establishes that the National Institute for 
Literacy shall use networks developed with other public and 
private persons, including the Secretary, the National Center 
for Family Literacy, and the Readline program.

Section 2261. Authorization of appropriations

    Section 2261(a) establishes that prior to expending the 
authorized funds for each of the three years for the Reading 
Excellence Act, the Individuals with Disabilities Education Act 
is required to have its annual appropriation for each of the 
three years increased by five hundred million dollars.
    Section 2261(b) provides for a $5 million reservation of 
funds to carry out information dissemination.
    Section 2261(c) provides for the sunset of this part on 
September 30, 2000.

      Title II--Amendments to Even Start Family Literacy Programs

Section 201. Reservation for grants

    Section 201(c)(1) establishes the authorization for grants.
    Section 201(c)(2) establishes that a State shall establish 
a consortium of State-level programs including Even Start, Head 
Start, Adult Education, and other literacy programs.
    Section 201(b) establishes a State plan for a participating 
consortium.
    Section 201(c)(3) provides technical assistance to States.
    Section 201(c)(4) establishes a matching requirement.

Section 202. Definitions

    Section 202 establishes definitions for title II.

Section 203. Evaluation

    Section 203 provides for local evaluations.

Section 204. Indicators of program quality

    Section 204 makes technical amendments and redesignates 
related sections of the Elementary and Secondary Education Act 
of 1965.

Section 1210. Indicators of program quality

    Section 1210 requires each State receiving funding to 
develop program quality indicators.
    Section 1210(b) makes technical amendments to section 
1203(a) of the Elementary and Secondary Education Act of 1965.
    Section 1210(c) establishes the awarding of subgrants.

Section 205. Research

    Section 205 amends the Elementary and Secondary Education 
Act of 1965.

Section 1211. Research

    Section 1211 requires the Secretary to carry out research 
activities regarding successful family literacy services.

                      IX. Changes in Existing Law

    In compliance with rule XXVI paragraph 12 of the Standing 
Rules of the Senate, the following provides a print of the 
statute or the part or section thereof to be amended or 
replaced (existing law proposed to be omitted is enclosed in 
black brackets, new matter is printed in italic, existing law 
in which no change is proposed is shown in roman):

Elementary and Secondary Education Act of 1965

           *       *       *       *       *       *       *


      TITLE I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS

SEC. 1001. [20 U.S.C. 6301] DECLARATION OF POLICY AND STATEMENT OF 
                    PURPOSES.

           *       *       *       *       *       *       *


PART B--EVEN START FAMILY LITERACY PROGRAMS

           *       *       *       *       *       *       *


SEC. 1202. [20 U.S.C. 6362] PROGRAM AUTHORIZED.

    (a) Reservation for Migrant Programs, Outlying Areas, and 
Indian Tribes.--

           *       *       *       *       *       *       *

    (c) Reservation for Grants.--
          (1) Grants authorized.--In any fiscal year in which 
        the amount appropriated to carry out this part exceeds 
        the amount appropriated to carry out this part for the 
        preceding fiscal year, the Secretary may reserve such 
        funds in excess of the amount appropriated for such 
        preceding fiscal years as do not exceed $1,000,000 to 
        award grants, on a competitive basis, to States to 
        enable such States to plan and implement, statewide 
        family literacy initiatives to coordinate and integrate 
        existing Federal, State, and local literacy resources 
        consistent with the purposes of this part. Such 
        coordination and integration shall include funds 
        available under the Adult Education Act, Head Start, 
        Even Start, and the Family Support Act of 1988.
          (2) Matching requirement.--The Secretary shall not 
        make a grant to a State under paragraph (1) unless the 
        State agrees that, with respect to the costs to be 
        incurred by the eligible consortium in carrying out the 
        activities for which the grant was awarded, the State 
        will make available non-Federal contributions in an 
        amount equal to not less than the Federal funds 
        provided under the grant.
    (c) Reservation for Grants.--
          (1) Grants authorized.--From funds reserved under 
        section 2261(a) to carry out this section for a fiscal 
        year, the Secretary shall award grants, on a 
        competitive basis, to States to enable such States to 
        plan and implement statewide family literacy 
        initiatives to coordinate and integrate existing 
        Federal, State, and local literacy resources consistent 
        with the purposes of this part. Such coordination and 
        integration shall include coordination and integration 
        of funds available under the Adult Education Act, the 
        Head Start Act, this part, part A of this title, and 
        part A of title IV of the Social Security Act.
          (2) Consortia.--
                  (A) Establishment.--To receive a grant under 
                this subsection, a State shall establish a 
                consortium of State-level programs under the 
                following provisions of law:
                          (i) This title.
                          (ii) The Head Start Act.
                          (iii) The Adult Education Act.
                          (iv) All other State-funded preschool 
                        programs and programs providing 
                        literacy services to adults.
                  (B) Plan.--To receive a grant under this 
                subsection, the consortium established by a 
                State shall create a plan to use a portion of 
                the State's resources, derived from the 
                programs referred to in subparagraph (A), to 
                strengthen and expand family literacy services 
                in such State.
                  (C) Coordination with part c of title ii.--
                The consortium shall coordinate its activities 
                with the activities assisted under part C of 
                title II, if the State receives a grant under 
                such part.
          (3) Technical assistance.--The Secretary shall 
        provide, directly or through a grant or contract with 
        an organization with experience in the development and 
        operation of successful family literacy services, 
        technical assistance to States receiving a grant under 
        this subsection.
          (4) Matching requirement.--The Secretary shall not 
        make a grant to a State under this subsection unless 
        the State agrees that, with respect to the costs to be 
        incurred by the eligible consortium in carrying out the 
        activities for which the grant was awarded, the State 
        will make available non-Federal contributions in an 
        amount equal to not less than the Federal funds 
        provided under the grant.

           *       *       *       *       *       *       *

    (e) Definitions.--For the purpose of this part--
          (1) * * *

           *       *       *       *       *       *       *

          (3) 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 (such as eliminating or reducing welfare 
        dependency) and that integrate all of the following 
        activities:
                  (A) Interactive literacy activities between 
                parents and their children.
                  (B) Equipping parents to partner with their 
                children in learning.
                  (C) Parent literacy training, including 
                training that contributes to economic self-
                sufficiency.
                  (D) Appropriate instruction for children of 
                parents receiving parent literacy services.
          [(3)] (4) the terms ``Indian tribe'' and ``tribal 
        organization'' have the meanings given such terms in 
        section 4 of the Indian Self-Determination and 
        Education Assistance Act; and
          [(4)] (5) the term ``State'' includes each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.

           *       *       *       *       *       *       *


SEC. 1203. [20 U.S.C. 6363] STATE PROGRAMS.

      (A) State Level Activities.--Each State that receives a 
grant under section 1202(d)(1) may use not more than 5 percent 
of the grant funds for the costs of--
          (1) administration; [and]
          (2) providing, through one or more subgrants or 
        contracts, technical assistance for program improvement 
        and replication, to eligible entities that receive 
        subgrants under subsection (b)[.]; and
          (3) carrying out section 1210.

           *       *       *       *       *       *       *


SEC. 1208. [20 U.S.C. 6368] AWARD OF SUBGRANTS.

    (a) Selection Process.--

           *       *       *       *       *       *       *

          [(3) Continuing eligibility--In awarding subgrant 
        funds to continue a program under this part for the 
        second, third, or fourth year, the State education 
        agency shall review the progress being made toward 
        meeting the objectives of the program after the 
        conclusion of the startup period, if any.]
          [(4) Insufficient progress.--The State educational 
        agency may refuse to award subgrant funds if such 
        agency finds that sufficient progress has not been made 
        toward meeting such objectives, but only after 
        affording the applicant notice and an opportunity for a 
        hearing.]
          (3) Continuing eligibility.--In awarding subgrant 
        funds to continue a program under this part for the 
        second, third, or fourth year, the State educational 
        agency shall evaluate the program based on the 
        indicators of program quality developed by the State 
        under section 1210. Such evaluation shall take place 
        after the conclusion of the startup period, if any.
          (4) Insufficient progress.--The State educational 
        agency may refuse to award subgrant funds if such 
        agency finds that the eligible entity has not 
        sufficiently improved the performance of the program, 
        as evaluated based on the indicators of program quality 
        developed by the State under section 1210, after--
                  (A) providing technical assistance to the 
                eligible entity; and
                  (B) affording the eligible entity notice and 
                an opportunity for a hearing.

           *       *       *       *       *       *       *


SEC. 1209. [20 U.S.C. 6269] EVALUATION.

    From funds reserved under section 1202(b)(1), the Secretary 
shall provide for an independent evaluation of programs 
assisted under this part--
          (1) to determine the performance and effectiveness of 
        programs assisted under this part; [and]
          (2) to identify effective Even Start programs 
        assisted under this part that can be duplicated and 
        used in providing technical assistance to Federal, 
        State, and local programs[.]; and
          (3) to provide States and eligible entities receiving 
        a subgrant under this part, directly or through a grant 
        or contract with an organization with experience in the 
        development and operation of successful family literacy 
        services, technical assistance to ensure local 
        evaluations undertaken under section 1205(10) provide 
        accurate information on the effectiveness of programs 
        assisted under this part.

SEC. 1210. INDICATORS OF PROGRAM QUALITY.

    Each State receiving funds under this part shall develop, 
based on the best available research and evaluation data, 
indicators of program quality for programs assisted under this 
part. The indicators shall be used to monitor, evaluate, and 
improve such programs within the State. The indicators shall 
include the following:
          (1) With respect to eligible participants in a 
        program who are adults--
                  (A) achievement in the areas of reading, 
                writing, English language acquisition, problem 
                solving and numeracy;
                  (B) receipt of a secondary school diploma or 
                its recognized equivalent;
                  (C) entry into a postsecondary school, a job 
                retraining program, or employment or career 
                advancement, including the military; and
                  (D) such other indicators as the State may 
                develop.
          (2) With respect to eligible participants in a 
        program who are children--
                  (A) improvement in ability to read on grade 
                level or reading readiness;
                  (B) school attendance;
                  (C) grade retention and promotion; and
                  (D) such other indicators as the State may 
                develop.

SEC. 1211. RESEARCH.

    (a) In General.--The Secretary shall carry out, through 
grant or contract, research into the components of successful 
family literacy services. The purpose of the research shall 
be--
          (1) to improve the quality of existing programs 
        assisted under this part or other family literacy 
        programs carried out under this Act or the Adult 
        Education Act; and
          (2) to develop models for new programs to be carried 
        out under this Act or the Adult Education Act.
    (b) Dissemination.--The National Institute for Literacy 
shall disseminate, pursuant to section 2260, the results of the 
research described in subsection (a) to States and recipients 
of subgrants under this part.

SEC. [1210] 1212. [20 U.S.C. 6370] CONSTRUCTION.

    Nothing in this part shall be construed to prohibit a 
recipient of funds under this part from serving students 
participating in Even Start simultaneously with students with 
similar educational needs, in the same educational settings 
where appropriate.

           *       *       *       *       *       *       *


SEC. 2003. [20 U.S.C. 6603] AUTHORIZATION OF APPROPRIATIONS; ALLOCATION 
                    BETWEEN PARTS.

    (a) Authorization of Appropriations.--For the purpose of 
carrying out this title (other than part C), there are 
authorized to be appropriated $800,000,000 for fiscal year 1995 
and such sums as may be necessary for each of the four 
succeeding fiscal years.
    (b) * * *

           *       *       *       *       *       *       *

          (3) 1 percent of such amounts to carry out [part C] 
        part D except that such 1 percent shall not exceed 
        $3,200,000 in any fiscal year.

           *       *       *       *       *       *       *


TITLE II--DWIGHT D. EISENHOWER PROFESSIONAL DEVELOPMENT PROGRAM

           *       *       *       *       *       *       *


        PART C--PROFESSIONAL DEVELOPMENT IN READING AND LITERACY

SEC. 2251. PROGRAM AUTHORIZED.

    The Secretary is authorized to award grants to State 
educational agencies for the improvement of teaching and 
learning through sustained and intensive high quality 
professional development activities in reading and literacy at 
the State and local levels.

SEC. 2252. ALLOTMENT OF FUNDS.

    (a) Reservations.--From the amount available to carry out 
this part for any fiscal year, the Secretary shall reserve--
          (1) \1/2\ of 1 percent for the outlying areas, to be 
        distributed among the outlying areas on the basis 
oftheir relative need for assistance under this part, as determined by 
the Secretary; and
          (2) \1/2\ of 1 percent for the Secretary of the 
        Interior for programs under this part for professional 
        development activities for teachers, other staff, and 
        administrators in schools operated or funded by the 
        Bureau of Indian Affairs.
  (b) State Allotments.--The Secretary shall allot the amount 
available to carry out this part and not reserved under 
subsection (a) for a fiscal year to each of the 50 States, the 
District of Columbia, and the Commonwealth of Puerto Rico as 
follows, except that no State shall receive less than \1/2\ of 
1 percent of such amount:
          (1) 50 percent shall be allotted among such 
        jurisdictions on the basis of their relative 
        populations of individuals aged 5 through 17, as 
        determined by the Secretary on the basis of the most 
        recent satisfactory data.
          (2) 50 percent shall be allotted among such 
        jurisdictions in accordance with the relative amounts 
        such jurisdictions received under part A of title I for 
        the preceding fiscal year.
  (c) Reallotment.--If any jurisdiction does not apply for an 
allotment under subsection (b) for any fiscal year, the 
Secretary shall reallot the amount of the allotment to the 
remaining jurisdictions in accordance with such subsection.

SEC. 2253. WITHIN-STATE ALLOCATIONS.

  (a) Reservation.--From the amount made available to a State 
under this part for any fiscal year, not more than 5 percent 
may be reserved for the administrative costs of the State 
educational agency and to carry out State-level activities 
described in section 2256(a).
  (b) Local Educational Agency Eligibility.--A State 
educational agency shall award grants under this part for a 
fiscal year to a local educational agency only if the number of 
children, that are served by the local educational agency and 
counted under section 1124(c) for the fiscal year, is equal to 
or exceeds the lesser of--
          (1) 30 percent of the total number of children aged 5 
        through 17 served by the local educational agency for 
        the fiscal year; or
          (2) the total number of children aged 5 through 17 
        served by the local educational agency for the fiscal 
        year multiplied by the result obtained from multiplying 
        1.5 by a fraction, the numerator of which is the total 
        number of children in the State counted under section 
        1124(c) for the fiscal year, and the denominator of 
        which is the total number of children aged 5 through 17 
        in the State for the fiscal year.
  (c) Allocation.--A State educational agency shall allocate 
funds made available under this part and not reserved under 
subsection (a) for a fiscal year among local educational 
agencies in the State that are described in subsection (b), 
according to the local educational agencies respective need for 
assistance under this part, as determined by the State 
educational agency, taking into account factors such as--
          (1) the number of children served by the local 
        educational agency who are from low-income families; 
        and
          (2) the number of elementary school and secondary 
        school students who are served by the local educational 
        agency and whose reading achievement is unsatisfactory.

SEC. 2254. CONSORTIA REQUIREMENTS.

  (a) Consortia.--A local educational agency receiving a grant 
under this part of less than $10,000 shall form a consortium 
with another local educational agency or an educational service 
agency serving another local educational agency in order to be 
eligible to participate in programs assisted under this part.
  (b) Waiver.--The State educational agency may waive the 
application of subsection (a) in the case of any local 
educational agency that demonstrates that the amount of the 
agency's grant under this part is sufficient to provide a 
program of sufficient size, scope, and quality to be effective. 
In granting waivers under the preceding sentence, the State 
educational agency shall--
          (1) give special consideration to local educational 
        agencies serving rural areas if distances or traveling 
        time between schools make formation of the consortium 
        more costly or less effective; and
          (2) consider cash or in-kind contributions provided 
        from State or local sources that may be combined with 
        the local educational agency's grant for the purpose of 
        providing services under this part.
  (c) Special Rule.--Each consortium shall rely, as much as 
possible, on technology or other arrangements to provide 
professional development programs tailored to the needs of each 
school or school district participating in a consortium 
described in subsection (a).

SEC. 2255. STATE APPLICATIONS.

  (a) Applications Required.--Each State educational agency 
desiring an allotment under this part for any fiscal year shall 
submit an application to the Secretary at such time, in such 
form, and containing such information as the Secretary may 
require.
  (b) State Plan To Improve Teaching and Learning of Reading 
and Literacy Programs.
          (1) In general.--Each application under this section 
        shall include a State plan that is coordinated with the 
        State's plan for other Federal education programs that 
        pertain to reading and literacy activities.
          (2) Contents.--Each State plan shall--
                  (A) be developed--
                          (i) in conjunction with the Governor 
                        of the State (in those States where the 
                        Governor does not appoint the Chief 
                        State School Officer), the State agency 
                        for higher education, community-based 
                        and other nonprofit organizations of 
                        demonstrated effectiveness in reading 
                        readiness, reading instruction for both 
                        adults and children, and early 
                        childhood literacy, institutions of 
                        higher education or schools of 
                        education, and State directors of 
                        appropriate Federal or State programs 
                        with a strong reading or literacy 
                        component; and
                          (ii) with the extensive participation 
                        of teachers who teach reading, and of 
                        parents;
                  (B) include an assessment of State and local 
                needs for reading and literacy professional 
                development for pre-school, elementary school, 
                and secondary school teachers, and teachers who 
                teach in adult and family literacy programs;
                  (C) include a description of how the plan has 
                assessed the needs of local educational 
                agencies serving rural and urban areas, and a 
                description of the actions planned to meet such 
                needs;
                  (D) include a description of how the 
                activities assisted under this part will 
                address the needs of teachers in schools 
                receiving assistance under title I and will 
                effectively teach all students to read 
                independently;
                  (E) include a description of--
                          (i) how professional development 
                        activities assisted under this part 
                        will be based on the best available 
                        research on reading development and 
                        reading disorders; and
                          (ii) the extent to which the 
                        activities prepare teachers in all the 
                        major components of reading instruction 
                        (including phoneme awareness, phonics, 
                        fluency, and reading comprehension);
                  (F) describe how the State will use 
                technology to enhance reading and literacy 
                professional development activities for 
                teachers;
                  (G) describe how parents can participate in 
                literacy-related activities assisted under this 
                part to enhance children's reading fluency;
                  (H) describe how reading tutors can 
                participate in literacy-related activities 
                assisted under this part, including 
                professional development opportunities, to 
                enhance children's reading fluency;
                  (I) describe how the State educational agency 
                will facilitate the provision of technical 
                assistance to the local educational agencies 
                that receive grants under this part in order to 
                assist in establishing the local educational 
                agencies' local professional development 
                activities;
                  (J) describe how the State educational 
                agency--
                          (i) will build on, and promote 
                        coordination among, literacy programs 
                        in the State, in order to increase the 
                        effectiveness of the programs and to 
                        avoid duplication of the efforts of the 
                        programs; and
                          (ii) will promote programs that 
                        provide access to diverse and age-
                        appropriate reading material;
                  (K) describe how the State educational agency 
                will assess and evaluate, on a regular basis, 
                local educational agency activities assisted 
                under this part;
                  (L) describe the methods the State 
                educational agency will use to assess and 
                evaluate the progress of local educational 
                agencies in the State that receive grants under 
                this part; and
                  (M) include an assurance that each local 
                educational agency to which the State 
                educational agency awards a grant--
                          (i) will carry out family literacy 
                        programs, such as the Even Start family 
                        literacy program authorized under part 
                        B of title I, to enable parents to be 
                        their child's first and most important 
                        teacher; and
                          (ii) will carry out programs to 
                        assist those pre-kindergarten and 
                        kindergarten students who are not ready 
                        for the transition to 1st grade, 
                        particularly students experiencing 
                        difficulty with reading skills.
  (c) Plan Approval.--
          (1) In general.--The Secretary shall approve an 
        application of a State educational agency under this 
        section if such application meets the requirements of 
        this section.
          (2) Disapproval.--The Secretary shall not finally 
        disapprove a State plan, except after giving the State 
        educational agency notice and an opportunity for a 
        hearing.
          (3) Peer review.--The Secretary shall establish a 
        peer review process, in consultation with the National 
        Research Council of the National Academy of Sciences 
        and the National Institute of Child Health and Human 
        Development, to make recommendations regarding approval 
        of State plans.
  (d) Assurances.--A State plan shall contain assurances that 
the State will comply with the requirements of this section, 
and provide for such fiscal control and fund accounting 
procedures that may be necessary to ensure the proper 
disbursement of, and accounting for, funds paid to the State 
under this section.
  (e) Multi-State Partnership Arrangements.--For the purposes 
of carrying out this section, a State educational agency may 
join with other State educational agencies to develop a single 
application that satisfies the requirements of this section and 
identifies which State educational agency, from among the 
States joining, shall act as the fiscal agent for the multi-
State arrangement.
  (f) Reporting.--A State educational agency that receives an 
allotment under this part shall submit an annual performance 
report to the Secretary. Such report shall include a 
description of--
          (1) the assessment and evaluation methods described 
        in section 2255(b)(2)(L); and
          (2) the local educational agencies receiving grants 
        under this part.

SEC. 2256. STATE USE OF FUNDS.

  (a) State Level Activities.--Each State educational agency 
shall use funds made available under section 2253(a)--
          (1) to provide technical assistance to schools and 
        local educational agencies, and entities administering 
        adult and family literacy programs, for the purpose of 
        providing effective professional development reading 
        and literacy activities;
          (2) to conduct an assessment of State needs for 
        reading and literacy professional development, 
        including the needs in both rural and urban areas;
          (3) to provide for coordination of reading and 
        literacy programs within the State in order to avoid 
        duplication and increase the effectiveness of reading 
        and literacy activities; and
          (4) to conduct evaluations of local educational 
        agency activities assisted under this part.
  (b) Grants.--
          (1) In general.--Each State educational agency 
        receiving an allotment under this part shall use the 
        funds made available under section 2253(c) to award 
        grants in accordance with such section to local 
        educational agencies within the State.
          (2) Grant period.--A grant awarded under this 
        subsection shall be awarded for a period of 3 years.

SEC. 2257. LOCAL PLAN FOR IMPROVING TEACHING AND LEARNING OF READING 
                    AND LITERACY PROGRAMS.

  (a) In General.--Each local educational agency desiring a 
grant under this part shall submit an application to the State 
educational agency at such time, in such manner, and 
accompanied by such information as the State educational agency 
may require. Such application shall include an assessment of 
local needs for professional development activities in reading 
and literacy--
          (1) at the elementary school and secondary school 
        levels; and
          (2) in adult and family literacy programs.
  (b) Special Rule.--A local educational agency that applies 
for a grant under this part shall form a partnership, with 1 or 
more community-based organizations of demonstrated 
effectiveness in reading readiness, reading instruction and 
achievement for both adults and children, and early childhood 
literacy, such as a Head Start program, public library, or an 
agency that oversees adult education programs, to carry out the 
local activities described in section 2258.
  (c) Contents.--Each local plan shall--
          (1) include an assessment of local needs for reading 
        and literacy professional development;
          (2) include a description of how the activities 
        described in section 2258 will address the needs of 
        teachers--
                  (A) in schools receiving assistance under 
                title I; and
                  (B) in adult and family literacy programs;
          (3) describe how parents can participate in literacy-
        related activities assisted under this part to enhance 
        children's reading fluency;
          (4) describe how reading tutors can participate in 
        literacy-related activities assisted under this part, 
        including professional development opportunities, to 
        enhance children's reading fluency;
          (5) describe how the local educational agency will 
        build on, and promote coordination among, literacy 
        programs at the local level in order to increase the 
        effectiveness of the programs and to avoid duplication 
        of effort;
          (6) describe how the local educational agency--
                  (A) will carry out family literacy programs, 
                such as the Even Start family literacy program 
                authorized under part B of title I, to enable 
                parents to be their child's first and most 
                important teacher;
                  (B) will carry out programs to assist those 
                pre-kindergarten and kindergarten students who 
                are not ready for the transition to 1st grade, 
                particularly students experiencing difficulty 
                with reading skills; and
                  (C) will promote programs that provide access 
                to diverse and age-appropriate reading 
                material;
          (7) describe how the local plan will be carried out 
        in coordination with other Federal education programs 
        that pertain to reading and literacy activities; and
          (8) describe the amount and nature of funds from 
        other public or private sources that will be combined 
        with funds received under this section.
  (d) Local Plan Approval.--The State educational agency shall 
approve an application of a local educational agency under this 
section if such application meets the requirements of this 
section.

SEC. 2258. LOCAL ACTIVITIES.

  (a) In General.--Each local educational agency shall use the 
funds made available under section 2256(b)--
          (1) to support partnerships among pre-schools, 
        elementary schools, secondary schools, consortia of 
        such schools, local educational agencies, community-
        based organizations (such as a Head Start program), 
        adult education programs, institutions of higher 
        education, or (where appropriate) public libraries, of 
        demonstrated effectiveness in reading readiness, and in 
        reading instruction and achievement, for adults and 
        children;
          (2) to provide intensive, ongoing professional 
        development activities to train teachers to meet the 
        diverse reading needs of all students, which activities 
        shall--
                  (A) be based on the best available research 
                on reading development and reading disorders; 
                and
                  (B) prepare teachers in all the major 
                components of reading instruction (including 
                phoneme awareness, phonics, fluency, and 
                reading comprehension);
          (3) to develop professional development programs and 
        strategies to effectively involve parents in helping 
        their children with reading;
          (4) to provide parents with literacy-related 
        activities that will enhance children's reading 
        fluency;
          (5) to provide reading tutors with literacy-related 
        activities, including professional development 
        opportunities, to enhance children's reading fluency;
          (6) to promote programs that provide access to 
        diverse and age-appropriate reading material;
          (7) to provide coordination of reading and literacy 
        programs within the local educational agency to avoid 
        duplication and increase the effectiveness of reading 
        and literacy activities;
          (8) to coordinate family literacy programs, such as 
        the Even Start family literacy program authorized under 
        part B of title I, to enable parents to be their 
        child's first and most important teacher, and to make 
        payments for the receipt of technical assistance for 
        the development of such programs; and
          (9) to establish programs to assist those pre-
        kindergarten and kindergarten students enrolled in 
        schools served by the local educational agency who are 
        not ready for the transition to 1st grade, particularly 
        students experiencing difficulty with reading skills.
  (b) Special Rules.--A local educational agency receiving a 
grant under this part shall use the funds for activities 
described in subsection (a) that--
          (1) provide professional development activities in 
        reading instruction to teachers in elementary schools 
        and secondary schools having the greatest need for such 
        services, as evidenced by poor student performance on 
        reading assessments, a high percentage of students from 
        low-income families, or a combination of such 
        performance and percentage; and
          (2) are provided to teachers at public and private 
        nonprofit elementary schools and secondary schools.

SEC. 2259. LOCAL DISTRIBUTION OF FUNDS.

  Each local educational agency that receives funds under this 
part for any fiscal year--
          (1) shall use not less than 80 percent of such funds 
        for the professional development of teachers and, where 
        appropriate, administrators, pupil services personnel, 
        parents, tutors, and other staff of individual schools, 
        and for other literacy-related activities, in a manner 
        that--
                  (A) to the extent practicable, takes place at 
                an individual school site; and
                  (B) is consistent with the local educational 
                agency's plan under section 2257, any school 
                plan under part A of title I, and any other 
                plan for professional development carried out 
                with Federal, State, or local funds that 
                emphasizes sustained, ongoing activities 
                related to professional development for 
                teachers; and
          (2) may use not more than 20 percent of such funds 
        for school district-level professional development 
        activities, including, where appropriate, the 
        participation of administrators, policymakers, tutors, 
        and parents, if such activities directly support 
        instructional personnel, and for other literacy-related 
        activities.

SEC. 2260. INFORMATION DISSEMINATION.

  (a) In General.--From funds reserved under section 2261(b), 
the National Institute for Literacy shall disseminate 
information with respect to reading and literacy. At a minimum, 
the institute shall disseminate such information to all 
recipients of Federal financial assistance under this title, 
titles I and VII, the Head Start Act, the Individuals with 
Disabilities Education Act, and the Adult Education Act.
  (b) Coordination.--In carrying out this section, the National 
Institute for Literacy shall use, to the extent practicable, 
information networks developed and maintained through other 
public and private persons, including the Secretary, the 
National Center for Family Literacy, and the Readline Program.

SEC. 2261. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--If the amount appropriated to carry out the 
Individuals with Disabilities Education Act for fiscal year 
1998, 1999, or 2000 exceeds by $500,000,000 the amount so 
appropriated for fiscal year 1997, 1998, or 1999, respectively, 
there are authorized to be appropriated to carry out this part 
and section 1202(c) $210,000,000 for the fiscal year 1998, 
1999, or 2000, as the case may be, of which $10,000,000 shall 
be available to carry out section 1202(c).
  (b) Reservation.--From amounts appropriated under subsection 
(a) for a fiscal year, the Secretary shall reserve $5,000,000 
to carry out section 2260.
  (c) Sunset.--Notwithstanding section 422(a) of the General 
Education Provisions Act, this title is repealed, effective 
September 30, 2000, and is not subject to extension under such 
section.

       PART [C] D--PROFESSIONAL DEVELOPMENT DEMONSTRATION PROJECT

SEC. 2301. [20 U.S.C. 6671] FINDINGS AND PURPOSE.

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                     PART [D] E--GENERAL PROVISIONS

SEC. 2401. [20 U.S.C. 6701] REPORTING AND ACCOUNTABILITY.

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