(3) ADMINISTRATIVE COSTS.-(A) The Secretary may reserve not more than five percent of the grant funds received under this subpart in each fiscal year for the costs of administration.

(B) Each eligible recipient may reserve not more than 5 percent of any grant funds received under this subpart in each fiscal year for the costs of administration.

SEC. 10415. [20 U.S.C. 8105] AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this subpart, $45,000,000 for fiscal year 1995, and such sums as may be necessary for each of the four succeeding fiscal years.

PART E-INEXPENSIVE BOOK DISTRIBUTION

PROGRAM

SEC. 10501. [20 U.S.C. 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) 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) DEFINITION OF "FEDERAL SHARE".-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 subcontrac

tor.

(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.

PART F-CIVIC EDUCATION

SEC. 10601. [20 U.S.C. 8141] INSTRUCTION ON THE HISTORY AND PRINCIPLES OF DEMOCRACY IN THE UNITED STATES.

(a) GENERAL AUTHORITY.—

(1) PROGRAM ESTABLISHED.-(A) The Secretary is authorized to carry out a program to enhance the attainment of the third and sixth National Education Goals by educating students about the history and principles of the Constitution of the United States, including the Bill of Rights, and to foster civic competence and responsibility.

(B) Such program shall be known as "We the People The Citizen and the Constitution”.

(2) EDUCATIONAL ACTIVITIES.-The program required by paragraph (1) shall—

(A) continue and expand the educational activities of the "We the People . . . The Citizen and the Constitution" program administered by the Center for Civic Education; and

(B) enhance student attainment of challenging content standards in civics and government.

(3) CONTRACT OR GRANT AUTHORIZED.-The Secretary is authorized to award a grant or enter into a contract with the Center for Civic Education to carry out the program described in paragraph (1).

(b) PROGRAM CONTENT.-The education program authorized by this section shall provide

(1) a course of instruction on the basic principles of our Nation's constitutional democracy and the history of the Constitution and the Bill of Rights;

(2) at the request of a participating school, school and community simulated congressional hearings following the course of study; and

(3) an annual national competition of simulated congressional hearings for secondary students who wish to participate in such program.

(c) AVAILABILITY OF PROGRAM.-The education program authorized by this section shall be made available to public and private elementary and secondary schools in the 435 congressional districts, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the District of Columbia.

(d) SPECIAL RULE.-After the provisions of subsection (b) have been implemented, funds provided under this section may be used for

(1) advanced training of teachers about the United States Constitution and the political system the United States created; or

(2) a course of instruction at the middle school level on the roles of State and local governments in the Federal system established by the Constitution, which course shall provide for(A) optional school and community simulated State legislative hearings;

(B) an annual competition of simulated legislative hearings at the State legislative district, State, and national levels for middle school students who wish to participate in the program; and

(C) participation by public and private middle schools in the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

SEC. 10602. [20 U.S.C. 8142] INSTRUCTION IN CIVICS, GOVERNMENT, AND THE LAW.

(a) PROGRAM ESTABLISHED.-The Secretary is authorized to carry out a program of awarding grants and contracts to assist State and local educational agencies and other public and private nonprofit agencies, organizations, and institutions to enhance

(1) attainment by students of challenging State content standards and challenging State student performance standards in civics, government, and the law; and

(2) attainment by the Nation of the third and the sixth National Education Goals.

(b) AUTHORIZED ACTIVITIES.-Assistance under this section may support new and ongoing programs in elementary and secondary schools that provide for

(1) the development and implementation of curricular programs that enhance student understanding of

(A) the values and principles which underlie, and the institutions and processes which comprise, our Nation's system of government;

(B) the role of law in our constitutional democracy, including activities to promote

(i) legal literacy;

(ii) a dedication by students to the use of nonviolent means of conflict resolution such as arbitration, mediation, negotiation, trials, and appellate hearings; and

(iii) respect for cultural diversity and acceptance of cultural differences; and

(C) the rights and responsibilities of citizenship; (2) professional development for teachers, including preservice and inservice training;

(3) outside-the-classroom learning experiences for students, including community service activities;

(4) the active participation of community leaders, from the public and private sectors, in the schools; and

(5) the provision of technical assistance to State and local educational agencies and other institutions and organizations working to further the progress of the Nation in attaining the third and sixth National Education Goals regarding civics and government.

(c) APPLICATIONS, PEER REVIEW AND PRIORITY.—

(1) SUBMISSION OF APPLICATIONS.-A State or local educational agency, other public or private nonprofit agency, organization, or institution that desires to receive a grant or enter into a contract under this section shall submit an application to the Secretary at such time, in such manner, and containing or accompanied by such information as the Secretary may reasonably require.

(2) PEER REVIEW. (A) The Secretary shall convene a panel of individuals for purpose of reviewing and rating applications submitted under paragraph (1).

(B) Such individuals shall have experience with education programs in civics, government, and the law.

(3) PRIORITY.-In awarding grants or awarding contracts under this section, the Secretary shall give priority consideration to applications which propose the operation of statewide programs.

(d) DURATION OF GRANTS AND EXCEPTION.

(1) DURATION.-Except as provided in paragraph (2), the Secretary shall award grants and contracts under this section for periods of two or three years.

(2) EXCEPTION.-The Secretary may award a grant or a contract under this section for a period of less than 2 years if the Secretary determines that special circumstances exist which warrant a 1-year grant or contract award.

SEC. 10603. [20 U.S.C. 8143] REPORT; AUTHORIZATION OF APPROPRIATIONS.

(a) REPORT.-The Secretary shall report, on a biennial basis to the Committee on Education and Labor of the House of Representatives and to the Committee on Labor and Human Resources of the Senate regarding the distribution and use of funds authorized under this part.

(b) AUTHORIZATION OF APPROPRIATIONS.—

(1) GENERAL.-There are authorized to be appropriated to carry out this part $15,000,000 for fiscal year 1995 and such sums as may be necessary for each of the four succeeding fiscal

years.

(2) ALLOCATION.-Except as provided in paragraph (3), from the amount appropriated under subsection (a), the Secretary shall allocate

(A) 40 percent of such amount to carry out section 10601; and

(B) 60 percent of such amount to carry out section 10602.

(3) SPECIAL RULE.-From funds appropriated under paragraph (1), the Secretary shall make available for fiscal year 1995 and each succeeding fiscal year thereafter for the programs under sections 16101 and 16102 not less than the amount made available for fiscal year 1994 to carry out such programs under sections 4609 and 1562, respectively, of this Act (as such sections were in effect on the day preceding the date of enactment of the Improving America's Schools Act of 1994).

PART G-ALLEN J. ELLENDER FELLOWSHIP PROGRAM

SEC. 10701. [20 U.S.C. 8161] FINDINGS.

The Congress finds as follows:

(1) It is a worthwhile goal to ensure that all students in America are prepared for responsible citizenship and that all students should have the opportunity to be involved in activities that promote and demonstrate good citizenship.

(2) It is a worthwhile goal to ensure that America's educators have access to programs for the continued improvement of their professional skills.

(3) Allen J. Ellender, a Senator from Louisiana and President pro tempore of the United States Senate, had a distinguished career in public service characterized by extraordinary energy and real concern for young people. Senator Ellender provided valuable support and encouragement to the Close Up Foundation, a nonpartisan, nonprofit foundation promoting knowledge and understanding of the Federal Government among young people and educators. Therefore, it is a fitting and appropriate tribute to Senator Ellender to provide fellowships in his name to students of limited economic means, the teachers who work with such students, and older Americans, so that such students, teachers, and older Americans may participate in the programs supported by the Close Up Foundation.