PUBLIC LAW 107-110-^AN. 8, 2002 115 STAT. 1825 literacy resources and shall assign the highest priority to serving the youngest and neediest children in the United States. "(b) AUTHORIZATION.—The Secretary is authorized to enter into Contracts. 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 young and school-age children, that motivate children to read. "(c) REQUIREMENTS OF CONTRACT.— Any contract entered into under subsection (b) shall contain each of the following: "(1) A provision 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 by loan, to children from birth through secondary school age, including children in family literacy programs. "(2) A provision that funds made available to subcontractors will be used only to pay the Federal share of the cost of such programs. "(3) A provision 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 the following: "(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, ildren without access to libraries. "(H) Institutionalized or incarcerated children. "(I) Children whose parents are institutionalized or incarcerated. "(4) A provision that the contractor will provide such training and technical assistance to subcontractors as may be necessary to carry out the purpose of this subpart. "(5) A provision that the contractor will annually report to the Secretary the number, and a description, of programs funded under paragraph (3). "(6) Such other terms and conditions as the Secretary determines to be appropriate to ensure the effectiveness of such programs. "(d) 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. "(e) SPECIAL RULES FOR CERTAIN SUBCONTRACTORS.— "(1) FUNDS FROM OTHER FEDERAL SOURCES.—Subcontractors operating programs under this section in low-income
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