 
                CHAPTER 73--ADULT EDUCATION AND LITERACY
 
            SUBCHAPTER I--ADULT EDUCATION AND FAMILY LITERACY
 
              Part A--Adult Education and Literacy Programs
 
                      subpart 1--federal provisions
 
Sec. 9211. Reservation of funds; grants to eligible agencies; 
        allotments
        

(a) Reservation of funds

    From the sum appropriated under section 9204 of this title for a 
fiscal year, the Secretary--
        (1) shall reserve 1.5 percent to carry out section 9252 of this 
    title, except that the amount so reserved shall not exceed 
    $8,000,000;
        (2) shall reserve 1.5 percent to carry out section 9253 of this 
    title, except that the amount so reserved shall not exceed 
    $8,000,000; and
        (3) shall make available, to the Secretary of Labor, 1.72 
    percent for incentive grants under section 9273 of this title.

(b) Grants to eligible agencies

                           (1) In general

        From the sum appropriated under section 9204 of this title and 
    not reserved under subsection (a) of this section for a fiscal year, 
    the Secretary shall award a grant to each eligible agency having a 
    State plan approved under section 9224 of this title in an amount 
    equal to the sum of the initial allotment under subsection (c)(1) of 
    this section and the additional allotment under subsection (c)(2) of 
    this section for the eligible agency for the fiscal year, subject to 
    subsections (f) and (g) of this section, to enable the eligible 
    agency to carry out the activities assisted under this part.

                        (2) Purpose of grants

        The Secretary may award a grant under paragraph (1) only if the 
    eligible entity involved agrees to expend the grant for adult 
    education and literacy activities in accordance with the provisions 
    of this part.

(c) Allotments

                       (1) Initial allotments

        From the sum appropriated under section 9204 of this title and 
    not reserved under subsection (a) of this section for a fiscal year, 
    the Secretary shall allot to each eligible agency having a State 
    plan approved under section 9224(f) of this title--
            (A) $100,000, in the case of an eligible agency serving an 
        outlying area; and
            (B) $250,000, in the case of any other eligible agency.

                      (2) Additional allotments

        From the sum appropriated under section 9204 of this title, not 
    reserved under subsection (a) of this section, and not allotted 
    under paragraph (1), for a fiscal year, the Secretary shall allot to 
    each eligible agency that receives an initial allotment under 
    paragraph (1) an additional amount that bears the same relationship 
    to such sum as the number of qualifying adults in the State or 
    outlying area served by the eligible agency bears to the number of 
    such adults in all States and outlying areas.

(d) Qualifying adult

    For the purpose of subsection (c)(2) of this section, the term 
``qualifying adult'' means an adult who--
        (1) is at least 16 years of age;
        (2) is beyond the age of compulsory school attendance under the 
    law of the State or outlying area;
        (3) does not have a secondary school diploma or its recognized 
    equivalent; and
        (4) is not enrolled in secondary school.

(e) Special rule

                           (1) In general

        From amounts made available under subsection (c) of this section 
    for the Republic of the Marshall Islands, the Federated States of 
    Micronesia, and the Republic of Palau, the Secretary shall award 
    grants to Guam, American Samoa, the Commonwealth of the Northern 
    Mariana Islands, the Republic of the Marshall Islands, the Federated 
    States of Micronesia, or the Republic of Palau to carry out 
    activities described in this part in accordance with the provisions 
    of this part that the Secretary determines are not inconsistent with 
    this subsection.

                           (2) Award basis

        The Secretary shall award grants pursuant to paragraph (1) on a 
    competitive basis and pursuant to recommendations from the Pacific 
    Region Educational Laboratory in Honolulu, Hawaii.

                   (3) Termination of eligibility

        Notwithstanding any other provision of law, the Republic of the 
    Marshall Islands, the Federated States of Micronesia, and the 
    Republic of Palau shall not receive any funds under this part for 
    any fiscal year that begins after September 30, 2001.

                      (4) Administrative costs

        The Secretary may provide not more than 5 percent of the funds 
    made available for grants under this subsection to pay the 
    administrative costs of the Pacific Region Educational Laboratory 
    regarding activities assisted under this subsection.

(f) Hold-harmless

                           (1) In general

        Notwithstanding subsection (c) of this section--
            (A) for fiscal year 1999, no eligible agency shall receive 
        an allotment under this part that is less than 90 percent of the 
        payments made to the State or outlying area of the eligible 
        agency for fiscal year 1998 for programs for which funds were 
        authorized to be appropriated under section 313 of the Adult 
        Education Act (as such Act was in effect on the day before 
        August 7, 1998); and
            (B) for fiscal year 2000 and each succeeding fiscal year, no 
        eligible agency shall receive an allotment under this part that 
        is less than 90 percent of the allotment the eligible agency 
        received for the preceding fiscal year under this part.

                        (2) Ratable reduction

        If for any fiscal year the amount available for allotment under 
    this part is insufficient to satisfy the provisions of paragraph 
    (1), the Secretary shall ratably reduce the payments to all eligible 
    agencies, as necessary.

(g) Reallotment

    The portion of any eligible agency's allotment under this part for a 
fiscal year that the Secretary determines will not be required for the 
period such allotment is available for carrying out activities under 
this part, shall be available for reallotment from time to time, on such 
dates during such period as the Secretary shall fix, to other eligible 
agencies in proportion to the original allotments to such agencies under 
this part for such year.

(Pub. L. 105-220, title II, Sec. 211, Aug. 7, 1998, 112 Stat. 1062; Pub. 
L. 105-277, div. A, Sec. 101(f) [title VIII, Sec. 404(b)], Oct. 21, 
1998, 112 Stat. 2681-337, 2681-416.)

                       References in Text

    Section 313 of the Adult Education Act (as such Act was in effect on 
the day before August 7, 1998), referred to in subsec. (f)(1)(A), means 
section 313 of Pub. L. 89-750, which was classified to section 1201b of 
this title, prior to repeal by Pub. L. 105-220, title II, 
Sec. 251(a)(1), Aug. 7, 1998, 112 Stat. 1079.


                               Amendments

    1998--Subsec. (d)(1). Pub. L. 105-277 struck out ``, but less than 
61 years of age'' after ``16 years of age''.

                  Section Referred to in Other Sections

    This section is referred to in sections 9212, 9222, 9241 of this 
title.
