105 STAT. 358 PUBLIC LAW 102-73-JULY 25, 1991 education, shall annually make 1 or more awards under this section to effective and innovative programs for inmate education and literacy.". 20 USC 2966 (b) EFFECTIVE DATE. —The amendment made by subsection (a) note. shall take effect on October 1, 1992. TITLE VII—VOLUNTEERS FOR LITERACY SEC. 701. LITERACY CHALLENGE GRANTS. (a) GENERAL AUTHORITY. — (1) PROGRAM AUTHORIZED.— Part C of title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4991 et seq.) is amended by adding at the end the following: "UTERACY CHALLENGE GRANTS 42 USC 4996. "SEC, 125. (a) The Director is authorized to award challenge grants to eligible public agencies and private organizations to pay the Federal share of the costs of establishing, operating or expanding community or employee literacy programs or projects that include the use of full-time or part-time volunteers as one method of addressing illiteracy. "(b) Each eligible organization desiring a grant under this section shall submit to the ACTION Agency an application in such form and accompanied by such information as the Director may reasonably require. Each such application shall— "(1) describe the activities for which assistance is sought, "(2) contain assurances that the eligible organization will provide from non-Federal sources the non-Federal share of the cost of the program or project, "(3) provide assurances, satisfactory to the Director, that the literacy project will be operated in cooperation with other public and private agencies and organizations interested in, and •;. qualified to, combat illiteracy in the community where the project is to be conducted, and "(4) contain such other information and assurances as the Director may reasonably require. "(c)(l)(A) The Federal share of the cost of a program or project authorized by this section administered by a public agency, a nonprofit organization other than an organization described in paragraph (2), or a private, for-profit organization shall not exceed— "(i) 80 percent in the first fiscal year; "(ii) 70 percent in the second fiscal year; and "(iii) 60 percent in the third fiscal year. "(B) The non-Federal share paid by a private, for-profit organization shall be in cash. "(2) The Federal share of the cost of a program or project administered by a nonprofit or community-based organization shall not exceed— "(A) 90 percent in the first fiscal year; "(B) 80 percent in the second fiscal year; and "(C) 70 percent in the third fiscal year. "(3) The non-Federal share provided by a public agency or a nonprofit or community-based organization may be provided in cash, or in kind, fairly evaluated, and may include the use of plant, equipment, and services.".
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