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``PART E--INEXPENSIVE BOOK DISTRIBUTION PROGRAM
``SEC. 10501. 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 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.