 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
             SUBCHAPTER X--PROGRAMS OF NATIONAL SIGNIFICANCE
 
              Part E--Inexpensive Book Distribution Program
 
Sec. 8131. Inexpensive book distribution program for reading 
        motivation
        

(a) Authorization

    The Secretary is authorized to enter into a contract with Reading is 
Fundamental (RIF) (hereafter in this section referred to as ``the 
contractor'') to support and promote programs, which include the 
distribution of inexpensive books to students, that motivate children to 
read.

(b) Requirements of contract

    Any contract entered into under subsection (a) of this section 
shall--
        (1) provide that the contractor will enter into subcontracts 
    with local private nonprofit groups or organizations, or with public 
    agencies, under which each subcontractor will agree to establish, 
    operate, and provide the non-Federal share of the cost of reading 
    motivation programs that include the distribution of books, by gift, 
    to the extent feasible, or loan, to children from birth through 
    secondary school age, including those in family literacy programs;
        (2) provide that funds made available to subcontractors will be 
    used only to pay the Federal share of the cost of such programs;
        (3) provide that in selecting subcontractors for initial 
    funding, the contractor will give priority to programs that will 
    serve a substantial number or percentage of children with special 
    needs, such as--
            (A) low-income children, particularly in high-poverty areas;
            (B) children at risk of school failure;
            (C) children with disabilities;
            (D) foster children;
            (E) homeless children;
            (F) migrant children;
            (G) children without access to libraries;
            (H) institutionalized or incarcerated children; and
            (I) children whose parents are institutionalized or 
        incarcerated;

        (4) provide that the contractor will provide such technical 
    assistance to subcontractors as may be necessary to carry out the 
    purpose of this section;
        (5) provide that the contractor will annually report to the 
    Secretary the number of, and describe, programs funded under 
    paragraph (3); and
        (6) include such other terms and conditions as the Secretary 
    determines to be appropriate to ensure the effectiveness of such 
    programs.

(c) Restriction on payments

    The Secretary shall make no payment of the Federal share of the cost 
of acquiring and distributing books under any contract under this 
section unless the Secretary determines that the contractor or 
subcontractor, as the case may be, has made arrangements with book 
publishers or distributors to obtain books at discounts at least as 
favorable as discounts that are customarily given by such publisher or 
distributor for book purchases made under similar circumstances in the 
absence of Federal assistance.

(d) ``Federal share'' defined

    For the purpose of this section, the term ``Federal share'' means, 
with respect to the cost to a subcontractor of purchasing books to be 
paid under this section, 75 percent of such costs to the subcontractor, 
except that the Federal share for programs serving children of migrant 
or seasonal farmworkers shall be 100 percent of such costs to the 
subcontractor.

(e) Authorization of appropriations

    For the purpose of carrying out this section, there are authorized 
to be appropriated $10,300,000 for fiscal year 1995 and such sums as may 
be necessary for each of the four succeeding fiscal years.

(Pub. L. 89-10, title X, Sec. 10501, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3837.)
