 
 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
    SUBCHAPTER I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS
 
     Part B--William F. Goodling Even Start Family Literacy Programs
 
Sec. 6368. Award of subgrants


(a) Selection process

                           (1) In general

        The State educational agency shall establish a review panel in 
    accordance with paragraph (3) that will approve applications that--
            (A) are most likely to be successful in--
                (i) meeting the purpose of this part; and
                (ii) effectively implementing the program elements 
            required under section 6365 of this title;

            (B) demonstrate that the area to be served by such program 
        has a high percentage or a large number of children and families 
        who are in need of such services as indicated by high levels of 
        poverty, illiteracy, unemployment, limited-English proficiency, 
        or other need-related indicators, such as a high percentage of 
        children to be served by the program who reside in a school 
        attendance area eligible for participation in programs under 
        part A of this subchapter, 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.);
            (C) provide services for at least a three-year age range, 
        which may begin at birth;
            (D) demonstrate the greatest possible cooperation and 
        coordination between a variety of relevant service providers in 
        all phases of the program;
            (E) include cost-effective budgets, given the scope of the 
        application;
            (F) demonstrate the applicant's ability to provide the non-
        Federal share required by section 6364(b) of this title;
            (G) are representative of urban and rural regions of the 
        State; and
            (H) show the greatest promise for providing models that may 
        be adopted by other family literacy projects and other local 
        educational agencies.

                     (2) Priority for subgrants

        The State educational agency shall give priority for subgrants 
    under this subsection to applications that--
            (A) target services primarily to families described in 
        paragraph (1)(B); or
            (B) are located in areas designated as empowerment zones or 
        enterprise communities.

                          (3) Review panel

        A review panel shall consist of at least three members, 
    including one early childhood professional, one adult education 
    professional, and one individual with expertise in family literacy 
    programs, and may include other individuals, such as one or more of 
    the following:
            (A) A representative of a parent-child education 
        organization.
            (B) A representative of a community-based literacy 
        organization.
            (C) A member of a local board of education.
            (D) A representative of business and industry with a 
        commitment to education.
            (E) An individual who has been involved in the 
        implementation of programs under this subchapter in the State.

(b) Duration

                           (1) In general

        Subgrants under this part may be awarded for a period not to 
    exceed four years.

                         (2) Startup period

        The State educational agency may provide subgrant funds to an 
    eligible recipient, at such recipient's request, for a three- to 
    six-month startup period during the first year of the four-year 
    grant period, which may include staff recruitment and training, and 
    the coordination of services, before requiring full implementation 
    of the program.

                     (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 6367(c)(1)(A) of this title and shall 
    evaluate the program based on the indicators of program quality 
    developed by the State under section 6369a of this title.

                      (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 
    6369a of this title, after--
            (A) providing technical assistance to the eligible entity; 
        and
            (B) affording the eligible entity notice and an opportunity 
        for a hearing.

                          (5) Grant renewal

        (A) An eligible entity that has previously received a subgrant 
    under this part may reapply under this part for additional 
    subgrants.
        (B) The Federal share of any subgrant renewed under subparagraph 
    (A) shall be limited in accordance with section 6364(b) of this 
    title.

(Pub. L. 89-10, title I, Sec. 1208, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3583; amended Pub. L. 105-277, div. 
A, Sec. 101(f) [title VIII, Sec. 204(c)], Oct. 21, 1998, 112 Stat. 2681-
337, 2681-409; Pub. L. 106-113, div. B, Sec. 1000(a)(4) [title III, 
Sec. 306(b)], Nov. 29, 1999, 113 Stat. 1535, 1501A-260; Pub. L. 106-554, 
Sec. 1(a)(4) [div. B, title XVI, Sec. 1604(l)], Dec. 21, 2000, 114 Stat. 
2763, 2763A-332.)

                       References in Text

    The Social Security Act, referred to in subsec. (a)(1)(B), is act 
Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title IV of 
the Act is classified generally to part A (Sec. 601 et seq.) of 
subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. 
For complete classification of this Act to the Code, see section 1305 of 
Title 42 and Tables.


                               Amendments

    2000--Subsec. (a)(1)(B). Pub. L. 106-554, Sec. 1(a)(4) [div. B, 
title XVI, Sec. 1604(l)(1)(A)], substituted ``such as a high'' for 
``including a high'' and ``part A of this subchapter, 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.);'' for ``part A of this subchapter;''.
    Subsec. (a)(1)(F). Pub. L. 106-554, Sec. 1(a)(4) [div. B, title XVI, 
Sec. 1604(l)(1)(B)], substituted ``non-Federal'' for ``Federal''.
    Subsec. (a)(1)(H). Pub. L. 106-554, Sec. 1(a)(4) [div. B, title XVI, 
Sec. 1604(l)(1)(C)], inserted ``family literacy projects and other'' 
before ``local educational agencies''.
    Subsec. (a)(3). Pub. L. 106-554, Sec. 1(a)(4) [div. B, title XVI, 
Sec. 1604(l)(1)(D)], in introductory provisions, substituted ``one 
individual with expertise in family literacy programs, and may include 
other individuals, such as one or more of the following:'' for ``one or 
more of the following individuals:''.
    Subsec. (b)(3). Pub. L. 106-554, Sec. 1(a)(4) [div. B, title XVI, 
Sec. 1604(l)(2)(A)], added par. (3) and struck out heading and text of 
former par. (3). Text read as follows: ``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 goals of the program referred to in section 6367(c)(1)(A) of 
this title and shall evaluate the program based on the indicators of 
program quality developed by the State under section 6369a of this 
title.''
    Subsec. (b)(5)(B). Pub. L. 106-554, Sec. 1(a)(4) [div. B, title XVI, 
Sec. 1604(l)(2)(B)], amended subpar. (B) generally. Prior to amendment, 
subpar. (B) read as follows: ``The Federal share of any subgrant renewed 
under subparagraph (A) shall not exceed 50 percent in any fiscal year.''
    1999--Subsec. (b)(3). Pub. L. 106-113, Sec. 1000(a)(4) [title III, 
Sec. 306(b)(1)], added par. (3) and struck out heading and text of 
former par. (3). Text read as follows: ``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 
6369a of this title. Such evaluation shall take place after the 
conclusion of the startup period, if any.''
    Subsec. (b)(5)(A). Pub. L. 106-113, Sec. 1000(a)(4) [title III, 
Sec. 306(b)(2)], struck out at end ``An eligible recipient may receive 
funds under this part for a period not to exceed eight years.''
    1998--Subsec. (b)(3). Pub. L. 105-277 amended heading and text of 
par. (3) generally. Prior to amendment, text read as follows: ``In 
awarding subgrant funds to continue a program under this part for the 
second, third, or fourth year, the State educational agency shall review 
the progress being made toward meeting the objectives of the program 
after the conclusion of the startup period, if any.''
    Subsec. (b)(4). Pub. L. 105-277 amended heading and text of par. (4) 
generally. Prior to amendment, text read as follows: ``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.''
