(2) the term "eligible organization" means any public or private nonprofit organization with a record of providing effective services to family literacy providers, such as the National Center for Family Literacy, Parents as Teachers, Inc., the Home Instruction Program for Preschool Youngsters, and the Home and School Institute, Inc.; (3) the terms "Indian tribe" and "tribal organization" have the meanings given those terms in section 4 of the Indian SelfDetermination and Education Assistance Act; (4) the term "scientifically based reading research" has the meaning given that term in section 1208; and (5) the term "State" means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. SEC. 1233. [20 U.S.C. 6381b] STATE EDUCATIONAL AGENCY PROGRAMS. (a) STATE EDUCATIONAL AGENCY LEVEL ACTIVITIES.-Each State educational agency that receives a grant under section 1232(d)(1) may use not more than a total of 6 percent of the grant funds for the costs of (1) administration, which amount shall not exceed half of the total; (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 sections 1240 and 1234(c). (b) SUBGRANTS FOR LOCAL PROGRAMS. (1) IN GENERAL.-Each State educational agency shall use the grant funds received under section 1232(d)(1) and not reserved under subsection (a) to award subgrants to eligible entities to carry out Even Start programs. (2) MINIMUM SUBGRANT AMOUNTS.— (A) IN GENERAL.-Except as provided in subparagraphs (B) and (C), no State educational agency shall award a subgrant under paragraph (1) in an amount less than $75,000. (B) SUBGRANTEES IN NINTH AND SUCCEEDING YEARS.— No State educational agency shall award a subgrant under paragraph (1) in an amount less than $52,500 to an eligible entity for a fiscal year to carry out an Even Start program that is receiving assistance under this subpart or its predecessor authority for the ninth (or any subsequent) fiscal year. (C) EXCEPTION FOR SINGLE SUBGRANT.-A State educational agency may award one subgrant in each fiscal year of sufficient size, scope, and quality to be effective in an amount less than $75,000 if, after awarding subgrants under paragraph (1) for that fiscal year in accordance with subparagraphs (A) and (B), less than $75,000 is available to the State educational agency to award those subgrants. SEC. 1234. [20 U.S.C. 6381c] USES OF FUNDS. (a) IN GENERAL.-In carrying out an Even Start program under this subpart, a recipient of funds under this subpart shall use those funds to pay the Federal share of the cost of providing intensive family literacy services that involve parents and children, from birth through age 7, in a cooperative effort to help parents become full partners in the education of their children and to assist children in reaching their full potential as learners. (b) FEDERAL SHARE LIMITATION.— (1) IN GENERAL.— (A) FEDERAL SHARE.-Except as provided in paragraph (2), the Federal share under this subpart may not exceed(i) 90 percent of the total cost of the program in the first year that the program receives assistance under this subpart or its predecessor authority; (ii) 80 percent in the second year; (v) 50 percent in the fifth, sixth, seventh, and eighth such years; and (vi) 35 percent in any subsequent year. (B) REMAINING COST.-The remaining cost of a program assisted under this subpart may be provided in cash or in kind, fairly evaluated, and may be obtained from any source, including other Federal funds under this Act. (2) WAIVER.-The State educational agency may waive, in whole or in part, the Federal share described in paragraph (1) for an eligible entity if the entity— (A) demonstrates that it otherwise would not be able to participate in the program assisted under this subpart; and (B) negotiates an agreement with the State educational agency with respect to the amount of the remaining cost to which the waiver will be applicable. (3) PROHIBITION.-Federal funds provided under this subpart may not be used for the indirect costs of a program assisted under this subpart, except that the Secretary may waive this paragraph if an eligible recipient of funds reserved under section 1232(a)(1)(C) demonstrates to the Secretary's satisfaction that the recipient otherwise would not be able to participate in the program assisted under this subpart. (c) USE OF FUNDS FOR FAMILY LITERACY SERVICES. (1) IN GENERAL.-A State educational agency may use a portion of funds reserved under section 1233(a), to assist eligible entities receiving a subgrant under section 1233(b) in improving the quality of family literacy services provided under Even Start programs under this subpart, except that in no case may a State educational agency's use of funds for this purpose for a fiscal year result in a decrease from the level of activities and services provided to program participants in the preceding year. (2) PRIORITY.-In carrying out paragraph (1), a State educational agency shall give priority to programs that were of low quality, as evaluated based on the indicators of program quality developed by the State educational agency under section 1240. (3) TECHNICAL ASSISTANCE TO HELP LOCAL PROGRAMS RAISE ADDITIONAL FUNDS.-In carrying out paragraph (1), a State educational agency may use the funds referred to in that paragraph to provide technical assistance to help local programs of demonstrated effectiveness to access and leverage additional funds for the purpose of expanding services and reducing waiting lists, including requesting and applying for non-Federal re sources. (4) TECHNICAL ASSISTANCE AND TRAINING.-Assistance under paragraph (1) shall be in the form of technical assistance and training, provided by a State educational agency through a grant, contract, or cooperative agreement with an entity that has experience in offering high-quality training and technical assistance to family literacy providers. SEC. 1235. [20 U.S.C. 6381d] PROGRAM ELEMENTS. Each program assisted under this subpart shall— (1) include the identification and recruitment of families most in need of services provided under this subpart, as indicated by a low level of income, a low level of adult literacy or English language proficiency of the eligible parent or parents, and other need-related indicators; (2) include screening and preparation of parents, including teenage parents, and children to enable those parents and children to participate fully in the activities and services provided under this subpart, including testing, referral to necessary counselling, other developmental and support services, and related services; (3) be designed to accommodate the participants' work schedule and other responsibilities, including the provision of support services, when those services are unavailable from other sources, necessary for participation in the activities assisted under this subpart, such as (A) scheduling and locating of services to allow joint participation by parents and children; (B) child care for the period that parents are involved in the program provided under this subpart; and (C) transportation for the purpose of enabling parents and their children to participate in programs authorized by this subpart; (4) include high-quality, intensive instructional programs that promote adult literacy and empower parents to support the educational growth of their children, developmentally appropriate early childhood educational services, and preparation of children for success in regular school programs; (5) with respect to the qualifications of staff the cost of whose salaries are paid, in whole or in part, with Federal funds provided under this subpart, ensure that (A) not later than December 21, 2004 (i) a majority of the individuals providing academic instruction (I) shall have obtained an associate's, bachelor's, or graduate degree in a field related to early childhood education, elementary school or secondary school education, or adult education; and (II) if applicable, shall meet qualifications established by the State for early childhood education, elementary school or secondary school edu cation, or adult education provided as part of an Even Start program or another family literacy program; (ii) the individual responsible for administration of family literacy services under this subpart has received training in the operation of a family literacy program; and (iii) paraprofessionals who provide support for academic instruction have a secondary school diploma or its recognized equivalent; and (B) all new personnel hired to provide academic instruction (i) have obtained an associate's, bachelor's, or graduate degree in a field related to early childhood education, elementary school or secondary school education, or adult education; and (ii) if applicable, meet qualifications established by the State for early childhood education, elementary school or secondary school education, or adult education provided as part of an Even Start program or another family literacy program; (6) include special training of staff, including child-care staff, to develop the skills necessary to work with parents and young children in the full range of instructional services offered through this subpart; (7) provide and monitor integrated instructional services to participating parents and children through home-based programs; (8) operate on a year-round basis, including the provision of some program services, including instructional and enrichment services, during the summer months; (9) be coordinated with (A) other programs assisted under this Act; (B) any relevant programs under the Adult Education and Family Literacy Act, the Individuals with Disabilities Education Act, and title I of the Workforce Investment Act of 1998; and (C) the Head Start program, volunteer literacy programs, and other relevant programs; (10) use instructional programs based on scientifically based reading research for children and adults, to the extent that research is available; (11) encourage participating families to attend regularly and to remain in the program a sufficient time to meet their program goals; (12) include reading-readiness activities for preschool children based on scientifically based reading research, to the extent available, to ensure that children enter school ready to learn to read; (13) if applicable, promote the continuity of family literacy to ensure that individuals retain and improve their educational outcomes; (14) ensure that the programs will serve those families most in need of the activities and services provided by this subpart; and (15) provide for an independent evaluation of the program, to be used for program improvement. SEC. 1236. [20 U.S.C. 6381e] ELIGIBLE PARTICIPANTS. (a) IN GENERAL.-Except as provided in subsection (b), eligible participants in an Even Start program are (1) a parent or parents (A) who are eligible for participation in adult education and literacy activities under the Adult Education and Family Literacy Act; or (B) who are within the State's compulsory school attendance age range, so long as a local educational agency provides (or ensures the availability of) the basic education component required under this subpart, or who are attending secondary school; and (2) the child or children, from birth through age 7, of any individual described in paragraph (1). (b) ELIGIBILITY FOR CERTAIN OTHER PARTICIPANTS. (1) IN GENERAL.-Family members of eligible participants described in subsection (a) may participate in activities and services provided under this subpart, when appropriate to serve the purpose of this subpart. (2) SPECIAL RULE.-Any family participating in a program assisted under this subpart that becomes ineligible to participate as a result of one or more members of the family becoming ineligible to participate may continue to participate in the program until all members of the family become ineligible to participate, which (A) in the case of a family in which ineligibility was due to the child or children of the family attaining the age of 8, shall be in 2 years or when the parent or parents become ineligible due to educational advancement, whichever occurs first; and (B) in the case of a family in which ineligibility was due to the educational advancement of the parent or parents of the family, shall be when all children in the family attain the age of 8. (3) CHILDREN 8 YEARS OF AGE OR OLDER.-If an Even Start program assisted under this subpart collaborates with a program under part A, and funds received under the part A program contribute to paying the cost of providing programs under this subpart to children 8 years of age or older, the Even Start program may, notwithstanding subsection (a)(2), permit the participation of children 8 years of age or older if the focus of the program continues to remain on families with young children. SEC. 1237. [20 U.S.C. 6381f] APPLICATIONS. (a) SUBMISSION.-To be eligible to receive a subgrant under this subpart, an eligible entity shall submit an application to the State educational agency in such form and containing or accompanied by such information as the State educational agency shall require. (b) REQUIRED DOCUMENTATION.-Each application shall include documentation, satisfactory to the State educational agency, that the eligible entity has the qualified personnel needed |