[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2210 Referred in Senate (RFS)]

  1st Session
                                H. R. 2210


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 25 (legislative day, July 21), 2003

     Received; read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 AN ACT


 
 To reauthorize the Head Start Act to improve the school readiness of 
            disadvantaged children, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``School Readiness Act of 2003''.

      TITLE I--HEAD START REAUTHORIZATION AND PROGRAM IMPROVEMENTS

SEC. 101. PURPOSE.

    Section 636 of the Head Start Act (42 U.S.C. 9831) is amended to 
read as follows:

``SEC. 636. STATEMENT OF PURPOSE.

    ``It is the purpose of this subchapter to promote school readiness 
by enhancing the development of low-income children, through 
educational instruction in prereading skills, premathematics skills, 
and language, and through the provision to low-income children and 
their families of health, educational, nutritional, social and other 
services that are determined, based on family needs assessments, to be 
necessary.''.

SEC. 102. DEFINITIONS.

    Section 637 of the Head Start Act (42 U.S.C. 9832) is amended as 
follows:
            (1) In paragraph (17) by striking ``, but for fiscal 
        years'' and all that follows down to the period.
            (2) By adding the following at the end thereof:
            ``(18) The term `eligible entities' means an institution of 
        higher education or other agency with expertise in delivering 
        training in early childhood development, family support, and 
        other assistance designed to improve the quality of early 
        childhood educations programs.
            ``(19) The term `homeless children' has the meaning given 
        such term in subtitle B of title VII of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11431 et seq.).''.

SEC. 103. AUTHORIZATION.

    Section 639 of the Head Start Act (42 U.S.C. 9834) is amended to 
read as follows:

``SEC. 639. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated for 
carrying out the provisions of this subchapter $6,870,000,000 for the 
fiscal year 2004, $6,988,750,000 for fiscal year 2005, $7,106,500,000 
for fiscal year 2006, $7,245,000,000 for fiscal year 2007, and 
$7,427,000,000 for fiscal year 2008.
    ``(b) Specific Programs.--From the amount appropriated under 
subsection (a), the Secretary shall make available not more than 
$20,000,000 for fiscal year 2004, and such sums as may be necessary for 
fiscal year 2005 through 2008 to carry out such other research, 
demonstration, and evaluation activities, including longitudinal 
studies, under section 649.
            ``(1) not more than $7,000,000 for each of fiscal years 
        2004 through 2008 to carry out impact studies under section 
        649(g); and
            ``(2) not more than $13,000,000 for fiscal year 2004, and 
        such sums as may be necessary for each of fiscal years 2005 
        through 2008, to carry out other research, demonstration, and 
        evaluation activities, including longitudinal studies, under 
        section 649.
    ``(c) Administrative Expenses.--There are authorized to be 
appropriated $5,000,000 for each of fiscal years 2004 through 2008 to 
assist participating States with the administrative expenses associated 
with implementing a program under section 643A.''.

SEC. 104. ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE.

    Section 640 of the Head Start Act (42 U.S.C. 9835) is amended as 
follows:
            (1) In subsection (a)(2):
                    (A) By striking ``1998'' in subparagraph (A) and 
                inserting ``2003''.
                    (B) By amending subparagraph (B) to read as 
                follows:
            ``(B) payments, subject to paragraph (7) to Guam, American 
        Samoa, the Commonwealth of the Northern Mariana Islands, and 
        the Virgin Islands of the United States;''.
            (2) By striking the last sentence of paragraph (2) of 
        subsection (a).
            (3)(A) By amending subsection (a)(2)(C) to read as follows:
            ``(C) training and technical assistance activities that are 
        sufficient to meet the needs associated with program expansion 
        and to foster program and management improvement as described 
        in section 648 of this subchapter, in an amount for each fiscal 
        year which is equal to one percent of the amount appropriated 
        for such fiscal year, of which--
                    ``(i) not less than 50 percent shall be made 
                available to local Head Start agencies to comply with 
                the standards described in section 641A(a)(1), of which 
                not less than 50 percent shall be used to comply with 
                the standards described in section 641A(a)(1)(B) and 
                for the uses described in clauses (iii), (iv), and 
                (vii) of subsection (a)(3)(B);
                    ``(ii) not less than 30 percent shall be made 
                available to support a State system of early childhood 
                education training and technical assistance;
                    ``(iii) not less than 20 percent shall be made 
                available to the Secretary to assist local programs in 
                meeting the standards described in section 641A(a)(1); 
                and
                    ``(iv) not less than $3,000,000 of the amount in 
                clause (iii) appropriated for such fiscal year shall be 
                made available to carry out activities described in 
                section 648(c)(4);''.
            (B) By inserting the following at the end of subsection 
        (a)(2):
``Of an additional one percent of the amount appropriated for such 
fiscal year, the Secretary shall use not less than 25 percent of such 
funds to fund the expansion of services to migrant and seasonal Head 
Start children. If sufficient migrant and seasonal eligible children 
are not available to use such funds, then enrollment priority shall be 
given to other disadvantaged populations referred to in subparagraph 
(A). Not less than 60 percent of such one percent amount shall be used 
to fund quality improvement activites as described in sec 640(a)(3)(B) 
and (C)''.
            (4) In subsection (a)(3)(A) by inserting at the end 
        thereof:
    ``(iii) After the reservation of amounts under paragraph (2) and 
the 60 percent amount referred to in subparagraph (A) of this 
paragraph, a portion of the remaining funds shall be made available for 
quality to expand services to underserved populations, such as children 
receiving services under the Early Head Start and Migrant and Seasonal 
Head Start programs.''.
            (5) In subsection (a)(3)(A)(i)(I) by striking ``1999'' and 
        all that follows down to the semicolon and inserting ``2004 
        through 2008''.
            (6) By amending subsection (a)(3)(B) to read as follows:
    ``(B) Funds reserved under this paragraph (referred to in this 
paragraph as `quality improvement funds') shall be used to accomplish 
any or all of the following goals:
            ``(i) Ensuring that Head Start programs meet or exceed 
        standards pursuant to section 641A(a)(1).
            ``(ii) Ensuring that such programs have adequate numbers of 
        qualified staff, and that such staff is furnished adequate 
        training, including developing skills to promote the 
        development of language skills, premathematic skills, and 
        prereading in young children and in working with children with 
        non-English language background, children referred by child 
        welfare services, and children with disabilities, when 
        appropriate.
            ``(iii) Developing and financing the salary scales 
        described under section 644(a) and section 653, in order to 
        ensure that salary levels and benefits are adequate to attract 
        and retain qualified staff for such programs.
            ``(iv) Using salary increases to improve staff 
        qualifications, and to assist with the implementation of 
        programs specifically designed to enable lead instructors to 
        become more effective educators, for the staff of Head Start 
        programs, and to encourage the staff to continually improve 
        their skills and expertise by informing the staff of the 
        availability of Federal and State incentive and loan 
        forgiveness programs for professional development.
            ``(v) Improving community-wide strategic planning and needs 
        assessments for such programs and collaboration efforts for 
        such programs, including collaborations to increase program 
        participation by underserved populations of eligible children.
            ``(vi) Ensuring that the physical environments of Head 
        Start programs are conducive to providing effective program 
        services to children and families, and are accessible to 
        children with disabilities and their parents.
            ``(vii) Ensuring that such programs have qualified staff 
        that can promote language skills and literacy growth of 
        children and that can provide children with a variety of skills 
        that have been identified, through scientifically based reading 
        research, as predictive of later reading achievement.
            ``(viii) Providing assistance to complete post-secondary 
        course work needed to attain baccalaureate degrees in early 
        childhood education.
            ``(ix) Making such other improvements in the quality of 
        such programs as the Secretary may designate.
            ``(x) To promote the regular attendance and stability of 
        highly mobile children, including migrant and homeless 
        children.''.
            (7) By amending subsection (a)(3)(C) to read as follows:
    ``(C) Quality improvement funds shall be used to carry out any or 
all of the following activities:
            ``(i)(I) Not less than one-half of the amount reserved 
        under this paragraph, to improve the compensation (including 
        benefits) of classroom teachers and other staff of Head Start 
        agencies providing instructional services and thereby enhancing 
        recruitment and retention of qualified staff, including 
        recruitment and retention pursuant to achieving the 
        requirements set forth in section 648A(a). The expenditure of 
        funds under this clause shall be subject to section 653. Salary 
        increases, in excess of cost-of-living allowance, provided with 
        such funds shall be subject to the specific standards governing 
        salaries and salary increases established pursuant to section 
        644(a).
            ``(II) If a Head Start agency certifies to the Secretary 
        for such fiscal year that part of the funds set aside under 
        subclause (I) to improve wages cannot be expended by such 
        agency to improve wages because of the operation of section 
        653, then such agency may expend such part for any of the uses 
        specified in this subparagraph (other than wages).
            ``(III) From the remainder of the amount reserved under 
        this paragraph (after the Secretary carries out subclause (I)), 
        the Secretary shall carry out any or all of the activities 
        described in clauses (ii) through (vii), placing the highest 
        priority on the activities described in clause (ii).
            ``(ii) To train classroom teachers and other staff to meet 
        the education standards described in section 641A(a)(1)(B), 
        through activities--
                    ``(I) to promote children's language and prereading 
                growth, through techniques identified through 
                scientifically based reading research;
                    ``(II) to promote the acquisition of the English 
                language for non-English background children and 
                families;
                    ``(III) to foster children's school readiness 
                skills through activities described in section 
                648A(a)(1); and
                    ``(IV) to educate and provide training necessary to 
                improve the qualifications particularly with respect to 
                such assistance to enable more instructors to meet the 
                degree requirements under section 648A(a)(2)(A) and to 
                support staff training, child counseling, and other 
                services necessary to address the problems of children 
                participating in Head Start programs, including 
                children from dysfunctional families, children who 
                experience chronic violence in their communities, and 
                children who experience substance abuse in their 
                families.
            ``(iii) To employ additional Head Start staff, including 
        staff necessary to reduce the child-staff ratio lead 
        instructors who meet the qualifications of section 648A(a) and 
        staff necessary to coordinate a Head Start program with other 
        services available to children participating in such program 
        and to their families.
            ``(iv) To pay costs incurred by Head Start agencies to 
        purchase insurance (other than employee benefits) and thereby 
        maintain or expand Head Start services.
            ``(v) To supplement amounts provided under paragraph (2)(C) 
        to provide training necessary to improve the qualifications of 
        the staff of the Head Start agencies, and to support staff 
        training, child counseling, and other services necessary to 
        address the problems of children participating in Head Start 
        programs, including children from dysfunctional families, 
        children who experience chronic violence in their communities, 
        and children who experience substance abuse in their families.
            ``(vi) To conduct outreach to homeless families in an 
        effort to increase the program participation of eligible 
        homeless children.
            ``(vii) Such other activities as the Secretary may 
        designate.
            ``(viii) To conduct outreach to migrant and seasonal farm-
        working families and families with children with a limited 
        English proficiency.''.
            (8) In subsection (a)(4) by striking ``1998'' in 
        subparagraph (A) and inserting ``2003''.
            (9) In subsection (a)(5)(B)--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by inserting ``early childhood education'' 
                after ``regarding''.
            (10) By amending subsection (a)(5)(C) to read as follows:
    ``(C) In order to improve results for children, a State that 
receives a grant under subparagraph (B) shall--
            ``(i) appoint an individual to serve as the State Director 
        of Collaboration between--
                    ``(I) the appropriate regional office of the 
                Administration for Children and Families;
                    ``(II) the State educational agency;
                    ``(III) the State Department of Health and Human 
                Services;
                    ``(IV) the State agency that oversees child care;
                    ``(V) the State agency that assists children with 
                developmental disabilities;
                    ``(VI) the State Head Start Association;
                    ``(VII) the State network of child care resource 
                and referral agencies;
                    ``(VIII) local educational agencies;
                    ``(IX) community-based and faith-based 
                organizations;
                    ``(X) State representatives of migrant and seasonal 
                Head Start programs;
                    ``(XI) State representatives of Indian Head Start 
                programs;
                    ``(XII) State and local providers of early 
                childhood education and child care; and
                    ``(XIII) other entities carrying out programs 
                serving low-income children and families in the State;
            ``(ii) ensure that the State Director of Collaboration 
        holds a position with sufficient authority and access to ensure 
        that the collaboration described in subparagraph (B) is 
        effective and involves a range of State agencies;
            ``(iii) involve the entities described in section clause 
        (i) to develop a strategic plan for the coordinated outreach to 
        identify eligible children and implementation strategies based 
        on a needs assessment conducted by the Office of the State 
        Director of Collaboration which shall include an assessment of 
        the availability of high quality prekindergarten services for 
        low-income children in the State. Such assessment shall be 
        completed within one year after the date of enactment of the 
        `School Readiness Act of 2003' and be updated on an annual 
        basis and shall be made available to the general public within 
        the State;
            ``(iv) ensure that the collaboration described in 
        subparagraph (B) involves coordination of Head Start services 
        with health care, welfare, child care, child protective 
        services, education, and community service activities, family 
        literacy services, activities relating to children with 
        disabilities (including coordination of services with those 
        State officials who are responsible for administering part C 
        and section 619 of the Individuals with Disabilities Education 
        Act), and services for homeless children (including 
        coordination of services with the Office of Coordinator for 
        Education of Homeless Children and Youth designated under 
        section 722 (g)(1)(J)(ii) of the McKinney-Vento Homeless 
        Education Assistance Improvements Act of 2001;
            ``(v) consult with the chief State school officer, local 
        educational agencies, and representatives of local Head Start 
        agencies and providers of early childhood education and care in 
        unified planning regarding early care and education services at 
        both the State and local levels, including collaborative 
        efforts to develop school readiness standards; and
            ``(vi) consult with the chief State school officer, local 
        educational agencies, State child care administrators, State 
        human services administrators, representatives of local 
        resource and referral agencies, local early childhood councils, 
        providers of early childhood education and care and other 
        relevant State and local agencies, and representatives of the 
        State Head Start Associations to plan for the provision of 
        full-working-day, full calendar year early care and education 
        services for children.''.
            (11) By amending clause (i) of subsection (a)(5)(D) by 
        inserting ``and providers of services supporting early 
        childhood education and child care'' after ``Associations''.
            (12) By amending subsection (a)(6)(A) to read as follows:
    ``(A) From amounts reserved and allotted pursuant to paragraphs (2) 
and (4), the Secretary shall use, for grants for programs described in 
section 645A(a) of this subchapter, a portion of the combined total of 
such amounts equal to at least 10 percent for fiscal years 2004 through 
2008, of the amount appropriated pursuant to section 639(a), except as 
provided in subparagraph (B).''.
            (13) By inserting the following before the period at the 
        end of subsection (f): ``, including models that leverage the 
        existing capacity and capabilities of the delivery system of 
        early childhood education and child care''.
            (14) By inserting the following after ``manner that will'' 
        in subsection (g)(2)(G): ``leverage the existing delivery 
        systems of such services and''.
            (15) By amending subsection (g)(2)(C) to read as follows:
            ``(C) the extent to which the applicant has undertaken 
        community-wide strategic planning and needs assessments 
        involving other community organizations and public agencies 
        serving children and families (including organizations and 
        agencies providing family support services and protective 
        services to children and families, and organizations serving 
        families in whose homes English is not the language customarily 
        spoken), and organizations and public entities serving children 
        with disabilities and homeless children (including the local 
        educational agency liaison designated under section 
        722(g)(1)(J)(ii) of the McKinney-Vento Homeless Education 
        Assistance Improvements Act of 2001);''.
            (16) By inserting in subsection (g)(2)(H) after ``serving 
        the community involved'' the following: ``, including the 
        liaison designated under section 722(g)(1)(J)(ii) of the 
        McKinney-Vento Homeless Education Assistance Improvements Act 
        of 2001,''.
            (17) By adding the following new subsections at the end 
        thereof:
    ``(m) Enrollment of Homeless Children.--The Secretary shall by 
regulation prescribe policies and procedures to remove barriers to the 
enrollment and participation of eligible homeless children in Head 
Start programs. Such regulations shall require Head Start agencies to:
            ``(1) implement policies and procedures to ensure that 
        eligible homeless children are identified and prioritized for 
        enrollment,
            ``(2) allow homeless families to apply to, enroll in and 
        attend Head Start programs while required documents, such as 
        proof of residency, immunization and other medical records, 
        birth certificates and other documents, are obtained within a 
        reasonable time frame, and
            ``(3) coordinate individual Head Start centers and programs 
        with efforts to implement Subtitle VII-B of the McKinney-Vento 
        Homeless Assistance Act.
    ``(n) Savings Provision.--Nothing in this Act shall be construed to 
require a State to establish a program of early education for children 
in the State, to require any child to participate in a program of early 
education, to attend school, or to participate in any initial screening 
prior to participation in such program, except as provided under 
section 612(a)(3), (consistent with section 614(a)(1)(C)), of the 
Individuals with Disabilities Education Act.
    ``(o) Materials.--All curricula and instructional materials funded 
under this subchapter shall be scientifically based and age 
appropriate. Parents shall have the ability to inspect, upon request, 
any curricula or instructional materials.''.

SEC. 105. DESIGNATION OF AGENCIES.

    Section 641 of the Head Start Act (42 U.S.C. 9836) is amended as 
follows:
            (1) In subsection (a)--
                    (A) by inserting after ``community'' in the first 
                place it appears ``, including a community-based or 
                faith-based organization'';
                    (B) by inserting ``(1)'' after ``(a)'';
                    (C) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively; and
                    (D) by adding the following at the end thereof:
    ``(2) In order to be designated as a Head Start agency and to 
receive a grant under this subchapter, a grantee shall establish 
grantee-determined goals for improving the school readiness of children 
participating in a program under this subchapter, which shall include 
goals for--
            ``(A) educational instruction in prereading, 
        premathematical, and language skills; and
            ``(B) the provision of health, educational, nutritional, 
        social, and other services.
    ``(3) In order to receive a grant subsequent to the initial grant 
provided following the date of enactment of this subchapter, the 
grantee shall demonstrate that it has met the goals described in 
paragraph (2).
    ``(4) Progress in meeting such goals shall not be measured 
primarily or solely by the results of assessments.''.
            (2) By amending subsection (c) to read as follows:
    ``(c) In the administration of the provisions of this section, the 
Secretary shall, in consultation with the chief executive officer of 
the State involved if such State expends non-Federal funds to carry out 
Head Start programs, give priority in the designation of Head Start 
agencies to any local public or private nonprofit or for-profit agency 
which is receiving funds under any Head Start program on the date of 
the enactment of this Act that fulfills the program and financial 
management requirements, standards described in section 641A(a)(1), 
results-based performance measures developed by the Secretary under 
section 641A(b), or other requirements established by the Secretary.''.
            (3) By amending subsection (d) to read as follows:
    ``(d) If no entity in a community is entitled to the priority 
specified in subsection (c), then the Secretary may designate a Head 
Start agency from among qualified applicants in such community. In 
selecting from among qualified applicants for designation as a Head 
Start agency, the Secretary shall give priority to any qualified agency 
that functioned as a Head Start delegate agency in the community and 
carried out a Head Start program that the Secretary determines met or 
exceeded such performance standards and such results-based performance 
measures. In selecting from among qualified applicants for designation 
as a Head Start agency, the Secretary shall consider the effectiveness 
of each such applicant to provide Head Start services, based on--
            ``(1) any past performance of such applicant in providing 
        services comparable to Head Start services, including how 
        effectively such applicant provided such comparable services;
            ``(2) the capacity of such applicant to serve eligible 
        children with scientifically-based programs that promote school 
        readiness of children participating in the program;
            ``(3) the plan of such applicant to meet standards set 
        forth in section 641A(a)(1), with particular attention to the 
        standards set forth in subparagraphs (A) and (B) of such 
        section;
            ``(4) the plan of such applicant to provide comprehensive 
        health, nutritional, educational, social, and other services 
        needed to prepare children to succeed in school;
            ``(5) the plan of such applicant to coordinate the Head 
        Start program it proposes to carry out with other preschool 
        programs, including Early Reading First and Even Start programs 
        under title I, part B, subparts 1 and 2 of the Elementary and 
        Secondary Education Act of 1965; other preschool programs 
        carried out under title I of the Act; programs under part C and 
        section 619 of the Individuals with Disabilities Education Act; 
        State prekindergarten programs; and with the educational 
        programs such children will enter at the age of compulsory 
        school attendance;
            ``(6) the plan of such applicant to coordinate the Head 
        Start program it proposes to carry out with private entities 
        with resources available to assist the Head Start Program meet 
        its program needs;
            ``(7) the plan of such applicant--
                    ``(A) to seek the involvement of parents of 
                participating children in activities (at home and in 
                the center involved where practicable) designed to help 
                such parents become full partners in the education of 
                their children;
                    ``(B) to afford such parents the opportunity to 
                participate in the development, conduct, and overall 
                performance of the program at the local level;
                    ``(C) to offer (directly or through referral to 
                local entities, such as entities carrying out Even 
                Start programs under part B of chapter 1 of title I of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 2741 et seq.), public and school libraries, and 
                family support programs) to such parents--
                            ``(i) family literacy services; and
                            ``(ii) parenting skills training;
                    ``(D) to offer to parents of participating children 
                substance abuse counseling (either directly or through 
                referral to local entities), including information on 
                drug-exposed infants and fetal alcohol syndrome;
                    ``(E) at the option of such applicant, to offer 
                (directly or through referral to local entities) to 
                such parents--
                            ``(i) training in basic child development;
                            ``(ii) assistance in developing 
                        communication skills;
                            ``(iii) opportunities for parents to share 
                        experiences with other parents; or
                            ``(iv) any other activity designed to help 
                        such parents become full partners in the 
                        education of their children;
                    ``(F) to provide, with respect to each 
                participating family, a family needs assessment that 
                includes consultation with such parents about the 
                benefits of parent involvement and about the activities 
                described in subparagraphs (C) (D), and (E) in which 
                such parents may choose to become involved (taking into 
                consideration their specific family needs, work 
                schedules, and other responsibilities); and
                    ``(G) to extend out reach to fathers in order to 
                strengthen the role of fathers in families by working 
                directly with fathers and father-figures through such 
                activities as including fathers in home visits; 
                implementing father outreach efforts, providing 
                opportunities for direct father-child interactions; and 
                targeting increased male participation in the program;
            ``(8) the ability of such applicant to carry out the plans 
        described in paragraphs (2), (3), and (4);
            ``(9) other factors related to the requirements of this 
        subchapter;
            ``(10) the plan of such applicant to meet the needs of non-
        English background children and their families, including needs 
        related to the acquisition of the English language;
            ``(11) the plan of such applicant to meet the needs of 
        children with disabilities;
            ``(12) the plan of such applicant who chooses to assist 
        younger siblings of children who will participate in the 
        proposed Head Start program to obtain health services from 
        other sources;
            ``(13) the plan of such applicant to collaborate with other 
        entities carrying out early childhood education and child care 
        programs in the community; and
            ``(14) the plan of such applicant to meet the needs of 
        homeless children.''.

SEC. 106. QUALITY STANDARDS; MONITORING OF HEAD START AGENCIES AND 
              PROGRAMS.

    Section 641A of the Head Start Act (42 U.S.C. 9836a) is amended as 
follows:
            (1) In subsection (a)(1)(B) by amending clause (ii) to read 
        as follows:
                    ``(ii) additional education standards to ensure 
                that the children participating in the program, at a 
                minimum develop and demonstrate--
                            ``(I) language skills;
                            ``(II) prereading knowledge and skills, 
                        including interest in and appreciation of 
                        books, reading and writing either alone or with 
                        others;
                            ``(III) premathematics knowledge and 
                        skills, including aspects of classification, 
                        seriation, number, spatial relations, and time;
                            ``(IV) cognitive abilities related to 
                        academic achievement;
                            ``(V) social and emotional development 
                        important for environments constructive for 
                        child development, early learning, and school 
                        success; and
                            ``(VI) in the case of limited-English 
                        proficient children, progress toward 
                        acquisition of the English language.''.
            (2) By amending subsection (a)(2)(B) to read as follows:
                    ``(B) take into consideration--
                            ``(i) past experience with use of the 
                        standards in effect under this subchapter on 
                        October 27, 1998;
                            ``(ii) changes over the period since 
                        October 27, 1998, in the circumstances and 
                        problems typically facing children and families 
                        served by Head Start agencies;
                            ``(iii) developments concerning best 
                        practices with respect to early childhood 
                        education and development, children with 
                        disabilities, family services, program 
                        administration, and financial management;
                            ``(iv) projected needs of an expanding Head 
                        Start program;
                            ``(v) guidelines and standards currently in 
                        effect or under consideration that promote 
                        child health services, and projected needs of 
                        expanding Head Start programs;
                            ``(vi) changes in the population of 
                        children who are eligible to participate in 
                        Head Start programs, including the language 
                        background and family structure of such 
                        children;
                            ``(vii) the need for, and state-of-the-art 
                        developments relating to, local policies and 
                        activities designed to ensure that children 
                        participating in Head Start programs make a 
                        successful transition to schools; and
                            ``(viii) the unique challenges faced by 
                        individual programs, including those that are 
                        seasonal or short term, and those that serve 
                        rural populations; and''.
            (3) In subsection (a)(2)(C)(ii) by striking all that 
        follows ``in effect on'' down to the period and inserting 
        ``October 27, 1998''.
            (4) By amending subsection (b)(2) to read as follows:
            ``(2) Characteristics of measures.--The performance 
        measures developed under this subsection shall--
                    ``(A) be used to assess the impact of the various 
                services provided by Head Start programs and, to the 
                extent the Secretary finds appropriate, administrative 
                and financial management practices of such programs;
                    ``(B) be adaptable for use in self-assessment, peer 
                review, and program evaluation of individual Head Start 
                agencies and programs;
                    ``(C) be developed for other program purposes as 
                determined by the Secretary;
                    ``(D) be appropriate for the population served; and
                    ``(E) be reviewed no less than every 4 years, based 
                on advances in the science of early childhood 
                development.
        The performance measures shall include the performance 
        standards described in subsection (a)(1)(A) and (B).''.
            (5) By amending subsection (b)(4) to read as follows:
            ``(4) Educational measures.--Results based measures shall 
        be designed for the purpose of promoting the competencies of 
        children participating in Head Start programs specified in 
        subsection (a)(1)(B)(ii), with an emphasis on measuring those 
        competencies that have a strong scientifically-based 
        predictability of a child's school readiness and later 
        performance in school.''.
            (6) In subsection (c)(1)(C) by striking ``the standards'' 
        and inserting ``one or more of the performance measures 
        developed by the Secretary under subsection (b)''.
            (7) By amending subsection (c)(2) to read as follows:
            ``(2) Conduct of reviews.--The Secretary shall ensure that 
        reviews described in subparagraphs (A) through (C) of paragraph 
        (1)--
                    ``(A) that incorporate a monitoring visit, do so 
                without prior notice of the visit to the local agency 
                or program;
                    ``(B) are conducted by review teams that shall 
                include individuals who are knowledgeable about Head 
                Start programs and, to the maximum extent practicable, 
                the diverse (including linguistic and cultural) needs 
                of eligible children (including children with 
                disabilities) and limited-English proficient children 
                and their families;
                    ``(C) include as part of the reviews of the 
                programs, a review and assessment of program 
                effectiveness, as measured in accordance with the 
                results-based performance measures developed by the 
                Secretary pursuant to subsection (b) and with the 
                standards established pursuant to subparagraphs (A) and 
                (B) of subsection (a)(1);
                    ``(D) seek information from the communities and the 
                States involved about the performance of the programs 
                and the efforts of the Head Start agencies to 
                collaborate with other entities carrying out early 
                childhood education and child care programs in the 
                community;
                    ``(E) seek information from the communities where 
                Head Start programs exist about innovative or effective 
                collaborative efforts, barriers to collaboration, and 
                the efforts of the Head Start agencies and programs to 
                collaborate with the entities carrying out early 
                childhood education and child care programs in the 
                community;
                    ``(F) include as part of the reviews of the 
                programs, a review and assessment of whether a program 
                is in conformity with the income eligibility 
                requirements, as defined in section 645 and regulations 
                promulgated thereunder;
                    ``(G) include as part of the reviews of the 
                programs, a review and assessment of whether programs 
                have adequately addressed the population and community 
                needs (including populations of children with a limited 
                English proficiency and children of migrant and 
                seasonal farm-working families); and
                    ``(H) include as part of the review the extent to 
                which the program addresses the community needs and 
                strategic plan identified in section 640(g)(2)(C).''.
            (8) By amending so much of subsection (d)(1) as precedes 
        subparagraph (A) to read as follows:
            ``(1) Determination.--If the Secretary determines, on the 
        basis of a review pursuant to subsection (c), that a Head Start 
        agency designated pursuant to section 641 fails to meet the 
        standards described in subsection (a) or results-based 
        performance measures developed by the Secretary under 
        subsection (b), or fails to adequately address the community 
        needs and strategic plan identified in 640(g)(2)(C), the 
        Secretary shall--''
            (9) By amending subsection (d)(2) to read as follows:
            ``(2) Quality improvement plan.--
                    ``(A) Agency and program responsibilities.--In 
                order to retain a designation as a Head Start agency 
                under this subchapter, or in the case of a Head Start 
                Program, in order to continue to receive funds from 
                such agency, a Head Start agency, or Head Start program 
                that is the subject of a determination described in 
                paragraph (1) (other than an agency or program required 
                to correct a deficiency immediately or during a 90-day 
                period under clause (i) or (ii) of paragraph (1)(B)) 
                shall--
                            ``(i) develop in a timely manner, a quality 
                        improvement plan which shall be subject to the 
                        approval of the Secretary, or in the case of a 
                        program, the sponsoring agency, and which shall 
                        specify--
                                    ``(I) the deficiencies to be 
                                corrected;
                                    ``(II) the actions to be taken to 
                                correct such deficiencies; and
                                    ``(III) the timetable for 
                                accomplishment of the corrective 
                                actions specified; and
                            ``(ii) eliminate each deficiency 
                        identified, not later than the date for 
                        elimination of such deficiency specified in 
                        such plan (which shall not be later than 1 year 
                        after the date the agency or program received 
                        notice of the determination and of the specific 
                        deficiency to be corrected).
                    ``(B) Secretarial responsibility.--Not later than 
                30 days after receiving from a Head Start agency a 
                proposed quality improvement plan pursuant to 
                subparagraph (A), the Secretary shall either approve 
                such proposed plan or specify the reasons why the 
                proposed plan cannot be approved.
                    ``(C) Agency responsibility for program 
                improvement.--Not later than 30 days after receiving 
                from a Head Start program, a proposed quality 
                improvement plan pursuant to subparagraph (A), the 
                sponsoring agency shall either approve such proposed 
                plan or specify the reasons why the proposed plan 
                cannot be approved.''.
            (10) In subsection (d)(3) by inserting ``and programs'' 
        after ``agencies''.
            (11) Subsection (e) is amended to read as follows:
    ``(e) Summaries of Monitoring Outcomes.--Not later than 120 days 
after the end of each fiscal year, the Secretary shall publish a 
summary report on the findings of reviews conducted under subsection 
(c) and on the outcomes of quality improvement plans implemented under 
subsection (d), during such fiscal year. Such information shall be made 
available to all parents with students receiving assistance under this 
Act in a understandable and uniform format, and to the extent 
practicable, provided in a language that the parents can understand, 
and in addition, make the information widely available through public 
means such as distribution through public agencies, and at a minimum 
posting such information on the Internet immediately upon 
publication.''.

SEC. 107. POWERS AND FUNCTIONS OF HEAD START AGENCIES.

    Section 642 of the Head Start Act (42 U.S.C. 9837(b)) is amended as 
follows:
            (1) By amending subsection (b) to read as follows:
    ``(b) In order to be so designated, a Head Start agency shall 
also--
            ``(1) establish a program with standards set forth in 
        section 641A(a)(1), with particular attention to the standards 
        set forth in subparagraphs (A) and (B) of such section;
            ``(2) demonstrate capacity to serve eligible children with 
        scientifically-based curricula and other interventions that 
        help promote the school readiness of children participating in 
        the program;
            ``(3) establish effective procedures by which parents and 
        area residents concerned will be enabled to directly 
        participate in decisions that influence the character of 
        programs affecting their interests;
            ``(4) provide for their regular participation in the 
        implementation of such programs;
            ``(5) provide technical and other support needed to enable 
        parents and area residents to secure on their own behalf 
        available assistance from public and private sources;
            ``(6) seek the involvement of parents of participating 
        children in activities designed to help such parents become 
        full partners in the education of their children, and to afford 
        such parents the opportunity to participate in the development, 
        conduct, and overall performance of the program at the local 
        level;
            ``(7) conduct outreach to schools in which Head Start 
        children enroll, local educational agencies, the local business 
        community, community-based organizations, faith-based 
        organizations, museums, and libraries to generate support and 
        leverage the resources of the entire local community in order 
        to improve school readiness;
            ``(8) offer (directly or through referral to local 
        entities, such as entities carrying out Even Start programs 
        under part B of chapter 1 of title I of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 2741 et seq.)), to 
        parents of participating children, family literacy services and 
        parenting skills training;
            ``(9) offer to parents of participating children substance 
        abuse counseling (either directly or through referral to local 
        entities), including information on drug-exposed infants and 
        fetal alcohol syndrome;
            ``(10) at the option of such agency, offer (directly or 
        through referral to local entities), to such parents--
                    ``(A) training in basic child development;
                    ``(B) assistance in developing communication 
                skills;
                    ``(C) opportunities to share experiences with other 
                parents;
                    ``(D) regular in-home visitation; or
                    ``(E) any other activity designed to help such 
                parents become full partners in the education of their 
                children;
            ``(11) provide, with respect to each participating family, 
        a family needs assessment that includes consultation with such 
        parents about the benefits of parent involvement and about the 
        activities described in paragraphs (4) through (7) in which 
        such parents may choose to be involved (taking into 
        consideration their specific family needs, work schedules, and 
        other responsibilities);
            ``(12) consider providing services to assist younger 
        siblings of children participating in its Head Start program to 
        obtain health services from other sources;
            ``(13) perform community outreach to encourage individuals 
        previously unaffiliated with Head Start programs to participate 
        in its Head Start program as volunteers; and
            ``(14)(A) inform custodial parents in single-parent 
        families that participate in programs, activities, or services 
        carried out or provided under this subchapter about the 
        availability of child support services for purposes of 
        establishing paternity and acquiring child support; and
            ``(B) refer eligible parents to the child support offices 
        of State and local governments.''.
            (2) Amend subsection (c) to read as follows:
    ``(c) The head of each Head Start agency shall coordinate and 
collaborate with the State agency responsible for administering the 
State program carried out under the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858 et seq.), and other early childhood 
education and development programs, including programs under subtitle 
VII-B of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431-
11435), Even Start programs under part B of chapter 1 of title I of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2741 et 
seq.), and programs under Part C and section 619 of the Individuals 
with Disabilities Education Act (20 U.S.C. 1431-1445, 1419), and the 
Child Abuse Prevention and Treatment Act (42 U.S.C. 5106a), serving the 
children and families served by the Head Start agency to carry out the 
provisions of this subchapter.''.
            (3) In subsection (d) by redesignating paragraphs (2) 
        through (4) as paragraph (3) through (5) and inserting the 
        following new paragraph after paragraph (1):
    ``(2) In communities where both public prekindergarten programs and 
Head Start programs operate, a Head Start agency shall coordinate with 
the local educational agency or other public agency responsible for the 
operation of the prekindergarten program and providers of 
prekindergarten, including for outreach to identify eligible 
children.''.
    (5) In paragraph (3) (as redesignated) of subsection (d), strike 
``and'' at the end of subparagraph (A) and insert the following after 
subparagraph (A) and redesignate subparagraph (B) as (C):
                    ``(B) collaborating to increase the program 
                participation of underserved populations of eligible 
                children; and''.

SEC. 108. HEAD START ALIGNMENT WITH K-12 EDUCATION.

    Section 642A of the Head Start Act (42 U.S.C. 9837a) is amended as 
follows:
            (1) The heading is amended to read as follows:

``SEC. 642A. HEAD START ALIGNMENT WITH K-12 EDUCATION.''.

            (2) In paragraph (2) after ``social workers,'' insert the 
        following: ``McKinney-Vento liaisons as established under 
        section 722 (g)(1)(J)(ii) of the McKinney-Vento Homeless 
        Education Assistance Improvements Act of 2001,''.
            (3) Add the following new paragraph after paragraph (2) and 
        redesignated paragraphs (3) through (7) as (4) through (8):
            ``(3) developing continuity of developmentally appropriate 
        curricula between Head Start and local educational agencies to 
        ensure an effective transition and appropriate shared 
        expectations for children's learning and development as they 
        make such transition to school;''.
            (4) Paragraph (6)(as redesignated by paragraph (3) of this 
        section) is amended to read as follows:
            ``(6) developing and implementing a family outreach and 
        support program in cooperation with entities carrying out 
        parental involvement efforts under title I of the Elementary 
        and Secondary Education Act of 1965 and family outreach and 
        support efforts under subtitle VII-B of the McKinney-Vento 
        Homeless Assistance Act;''.
            (4) In paragraph (7)(as redesignated by paragraph (3) of 
        this section) by inserting ``and continuity in parental 
        involvement activities'' after ``developmental continuity''.
            (5) Strike ``and'' at the end of paragraph (7)(as 
        redesignated by paragraph (3) of this section) and strike the 
        period at the end of paragraph (8)(as redesignated by paragraph 
        (3) of this section) and insert a semicolon.
            (6) Add the following after paragraph (8):
            ``(9) helping parents to understand the importance of 
        parental involvement in a child's academic success while 
        teaching them strategies for maintaining parental involvement 
        as their child moves from Head Start to elementary school; and
            ``(10) developing and implementing a system to increase 
        program participation of underserved populations of eligible 
        children.''.

SEC. 109. ADMINISTRATIVE REQUIREMENTS AND STANDARDS.

    Section 644 of the Head Start Act (42 U.S.C. 9839) is amended in 
subsection (f)(2) by redesignating subparagraphs (A) through (E) as (B) 
through (F) and inserting the following new subparagraph before 
subparagraph (B) (as so redesignated):
            ``(A) a description of the consultation conducted by the 
        Head Start agency with the providers in the community 
        demonstrating capacity and capability to provide services under 
        this Act, and of the potential for collaboration with such 
        providers and the cost effectiveness of such collaboration as 
        opposed to the cost effectiveness of the purchase of a 
        facility;''

SEC. 110. ELIGIBILITY.

    Section 645(a) of the Head Start Act (42 U.S.C. 9843) is amended as 
follows:
            (1) By striking ``to a reasonable extent'' in paragraph 
        (1)(B)(i) and inserting ``not to exceed 10 percent of the total 
        enrollment'' and by striking ``benefit from such programs'' and 
        inserting ``benefit from such programs, including children 
        referred by child welfare services,''.
            (2) By adding the following new paragraph at the end 
        thereof:
    ``(3) The amount of a basic allowance provided under section 403 of 
title 37, United States Code, on behalf of an individual who is a 
member of the uniformed services for housing that is acquired or 
constructed under the authority of subchapter IV of chapter 169 of 
title 10, United States Code, or any other related provision of law, 
shall not be considered to be income for purposes of determining the 
eligibility of a child of the individual for programs assisted under 
this subchapter.''.

SEC. 111. EARLY HEAD START PROGRAMS.

    (a) In General.--Section 645A of the Head Start Act (42 U.S.C. 
9643) is amended as follows:
            (1) By amending paragraphs (4) and (5) of subsection (b) to 
        read as follows:
            ``(4) provide services to parents to support their role as 
        parents (including parenting skills training and training in 
        basic child development) and to help the families move toward 
        self-sufficiency (including educational and employment services 
        as appropriate);
            ``(5) coordinate services with services (including home-
        based services) provided by programs in the State and programs 
        in the community (including programs for infants and toddlers 
        with disabilities) to ensure a comprehensive array of services 
        (such as health and mental health services, and family support 
        services);''.
            (2) By amending paragraph (8) of subsection (b) to read as 
        follows:
            ``(8) ensure formal linkages with the agencies and entities 
        described in section 644(b) of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1444(b)) and providers of 
        early intervention services for infants and toddlers with 
        disabilities under the Individuals with Disabilities Education 
        Act (20 U.S.C. 1400 et seq.) and the agency responsible for 
        administering the section 106 of the Child Abuse Prevention and 
        Treatment Act (42 U.S.C. 5106a); and''.
            (3) In subsection (g)(2)(B) by striking ``and'' at the end 
        of clause (iii), by striking the period at the end of clause 
        (iv) and inserting ``; and'' and by inserting the following at 
        the end:
                            ``(v) providing professional development 
                        designed to increase program participation for 
                        underserved populations of eligible 
                        children.''.
    (b) Migrant and Seasonal Programs.--Section 645A(d)(1) of the Head 
Start Act (42 US.C. 9643(d)(1)) is amended to read as follows:
            ``(1) entities operating Head Start programs under this 
        subpart, including migrant and seasonal Head Start programs; 
        and''.
    (c) Community- and Faith-Based Organizations.--Section 645A(d)(2) 
of the Head Start Act (42 US.C. 9643(d)(21)) is amended by inserting 
``, including community- and faith-based organizations'' after 
``entities'' in the second place it appears.

SEC. 112. TECHNICAL ASSISTANCE AND TRAINING.

    Section 648 of the Head Start Act (42 U.S.C. 9843) is amended as 
follows:
            (1) By inserting the following new subsection after 
        subsection (a) and redesignating subsections (b) through (e) as 
        subsections (c) through (f):
    ``(b) The Secretary shall make available to each State the money 
reserved in section 640(a)(2)(C)(ii) to support a State-based system 
delivering training and technical assistance that improves the capacity 
of Head Start programs within a State to deliver services in accordance 
with the Head Start standards in section 641A(a)(1), with particular 
attention to the standards set forth in subparagraphs (A) and (B) of 
such section. The Secretary shall--
            ``(1) ensure eligible entities within a State are chosen by 
        the Secretary, in consultation with the State Collaboration 
        Board described in section 640(a)(5)(C)(i), through a 
        competitive bid process;
            ``(2) ensure that existing agencies with demonstrated 
        expertise in providing high quality training and technical 
        assistance to improve the delivery of Head Start services, 
        including the State Head Start Association, State agencies, 
        migrant and seasonal Head Start programs operating in the 
        State, and other entities currently providing training and 
        technical assistance in early education, be included in the 
        planning and coordination of the State system of training and 
        technical assistance; and
            ``(3) encourage States to supplement the funds authorized 
        in section 640(a)(2)(C)(ii) with State, Federal, or local funds 
        other than Head Start funds, to expand activities beyond Head 
        Start agencies to include other providers of other early 
        childhood services within a State.''.
            (2) In subsection (d) (as redesignated):
                    (A) In paragraph (2), after ``disabilities'' insert 
                ``and for activities described in section 1221(b)(3) of 
                the Elementary and Secondary Education Act of 1965''.
                    (B) In paragraph (5) after ``assessment'' insert 
                ``, including the needs of homeless children and their 
                families''.
                    (C) By striking ``and'' at the end of paragraph 
                (10), by striking the period at the end of paragraph 
                (11) and inserting ``; and'' and by inserting the 
                following at the end:
            ``(12) assist Head Start agencies and programs in 
        increasing program participation of eligible homeless 
        children.''.
            (3) In subsection (e) (as redesignated by paragraph (1)) by 
        inserting ``, including community- and faith-based 
        organizations'' after ``entities''.
            (4) By amending subsection (f) (as redesignated by 
        paragraph (1)) to read as follows:
    ``(f) The Secretary shall provide, either directly or through 
grants or other arrangements, funds from programs authorized under this 
subchapter to support an organization to administer a centralized child 
development and national assessment program leading to recognized 
credentials for personnel working in early childhood development and 
child care programs, training for personnel providing services to non-
English language background children (including services to promote the 
acquisition of the English language), training for personnel providing 
services to children determined to be abused or neglected, training for 
personnel providing services to children referred by or receiving child 
welfare services, training for personnel in helping children cope with 
community violence, and resource access projects for personnel working 
with disabled children.''.
            (5) Insert at the end of the section:
    ``(g) Helping Personnel Better Serve Migrant and Seasonal Farm-
working Communities and Homeless Families.--The Secretary shall 
provide, either directly or through grants, or other arrangements, 
funds for training of Head Start personnel in addressing the unique 
needs of migrant and seasonal working families, families with a limited 
English proficiency, and homeless families.
    ``(h) Authorized Activities.--The majority of funds expended under 
this section shall be used to provide high quality, sustained, 
intensive, and classroom-focused training and technical assistance in 
order to have a positive and lasting impact on classroom instruction. 
Funds shall be used to carry out activities related to any or all of 
the following:
            ``(1) Education and early childhood development.
            ``(2) Child health, nutrition, and safety.
            ``(3) Family and community partnerships.
            ``(4) Other areas that impact the quality or overall 
        effectiveness of Head Start programs.
    ``(i) Prohibition on Use of Funds.--Funds under this subchapter 
used for training shall be used for needs identified annually by a 
grant applicant or delegate agency in their program improvement plan, 
except that funds shall not be used for long-distance travel expenses 
for training activities available locally or regionally or for training 
activities substantially similar to locally or regionally available 
training activities.
    ``(j) Definition.--For purposes of this section, the term `eligible 
entities' means an institution of higher education or other entity with 
expertise in delivering training in early childhood development, family 
support, and other assistance designed to improve the delivery of Head 
Start services.''.

SEC. 113. STAFF QUALIFICATIONS AND DEVELOPMENT.

    Section 648A of the Head Start Act (42 U.S.C. 9843a) is amended as 
follows:
            (1) By amending paragraph (2) of subsection (a) to read as 
        follows:
            ``(2) Degree requirements.--
                    ``(A) In general.--The Secretary shall ensure that 
                not later than September 30, 2008, at least 50 percent 
                of all Head Start teachers nationwide in center-based 
                programs have--
                            ``(i) a baccalaureate, or advanced degree 
                        in early childhood education; or
                            ``(ii) a baccalaureate, or advanced degree 
                        in a field related to early childhood 
                        education, with experience in teaching 
                        preschool children.
                    ``(B) Progress.--Each Head State agency shall 
                provide to the Secretary a report indicating the number 
                and percentage of classroom instructors with child 
                development associate credentials and associate, 
                baccalaureate, or advanced degrees. The Secretary shall 
                compile all program reports and make them available to 
                the Committee on Education and the Workforce of the 
                United States House of Representatives and the 
                Committee on Health, Education, Labor, and Pensions of 
                the United States Senate.
                    ``(C) Requirement for new Head Start teachers.--
                Within 3 years after the date of enactment of this 
                clause, the Secretary shall require that all Head Start 
                teachers nationwide in center-based programs hired 
                following the date of enactment of this subparagraph--
                            ``(i) have an associate, baccalaureate, or 
                        advanced degree in early childhood education;
                            ``(ii) have an associate, baccalaureate, or 
                        advanced degree in a field related to early 
                        childhood education, with experience in 
                        teaching preschool children; or
                            ``(iii) be currently enrolled in a program 
                        of study leading to an associate degree in 
                        early childhood education and agree to complete 
                        degree requirements within 3 years from the 
                        date of hire.
                    ``(D) Service requirements.--The Secretary shall 
                establish requirements to ensure that individuals who 
                receive financial assistance under this Act in order to 
                comply with the requirements under section 648A(a)(2) 
                shall subsequently teach in a Head Start center for a 
                period of time equivalent to the period for which they 
                received assistance or repay the amount of the 
                funds.''.
            (2) By adding the following at the end thereof:
    ``(f) Professional Development Plans.--Every Head Start agency and 
program shall create, in consultation with an employee, a professional 
development plan for all full-time employees who provide direct 
services to children.''.

SEC. 114. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

    Section 649 of the Head Start Act (42 U.S.C. 9844) is amended as 
follows:
            (1) By amending subsection (a)(1)(B) to read as follows:
                    ``(B) use the Head Start programs to develop, test, 
                and disseminate new ideas and approaches for addressing 
                the needs of low-income preschool children (including 
                children with disabilities and children determined to 
                be abused or neglected) and their families and 
                communities (including demonstrations of innovative 
                non-center based program models such as home-based and 
                mobile programs), and otherwise to further the purposes 
                of this subchapter.''.
            (1) By striking paragraph (9) of subsection (d) and 
        inserting ``(9) Repealed.--''.
            (2) By striking clause (i) of subsection (g)(1)(A) and 
        redesignating clauses (ii) and (iii) as clauses (i) and (ii).
            (3) In subsection (g)(7)(C)(i) by striking ``1999'' and 
        inserting ``2003'', striking ``2001'' and inserting ``2005'', 
        and striking ``2003'' and inserting ``2006''.
            (4) By amending subsection (h) to read as follows:
    ``(h) NAS Study.--
            ``(1) In General.--The Secretary shall use funds allocated 
        in section 640(a)(2)(C)(iii) to contract with the National 
        Academy of Sciences for the Board on Children, Youth, and 
        Families of the National Research Council to establish an 
        independent panel of experts to review and synthesize research, 
        theory and applications in the social, behavioral and 
        biological sciences and shall make recommendations on early 
        childhood pedagogy with regard to each of the following:
                    ``(A) Age and developmentally appropriate Head 
                Start academic requirements and outcomes, including but 
                not limited to the domains in 641A(a)(B).
                    ``(B) Differences in the type, length, mix and 
                intensity of services necessary to ensure that children 
                from challenging family and social backgrounds 
                including: low-income children, children of color, 
                children with special needs, and children with limited 
                English proficiency enter kindergarten ready to 
                succeed.
                    ``(C) Appropriate assessments of young children for 
                the purposes of improving instruction, services, and 
                program quality, including systematic observation 
                assessment in a child's natural environment, parent and 
                provider interviews, and accommodations for children 
                with disabilities and appropriate assessments for 
                children with special needs, including English language 
                learners.
            ``(2) Composition.--The panel shall consist of multiple 
        experts in each of the following areas:
                    ``(A) Child development and education, including 
                cognitive, social, emotional, physical, approaches to 
                learning, and other domains of child development and 
                learning.
                    ``(B) Professional development, including teacher 
                preparation, to individuals who teach young children in 
                programs.
                    ``(C) Assessment of young children, including 
                screening, diagnostic and classroom-based instructional 
                assessment; children with special needs, including 
                children with disabilities and limited English 
                proficient children.
            ``(3) Timing.--The National Academy of Sciences and the 
        Board shall establish the panel not later than 90 days after 
        the date of enactment of this paragraph. The panel should 
        complete its recommendations within 18 months of its convening.
            ``(4) Application of Panel Report.--The results of the 
        panel study shall be used as guidelines by the Secretary to 
        develop, inform and revise, where appropriate, the Head Start 
        education performance measures and standards and the 
        assessments utilized in the Head Start program.''.

SEC. 115. REPORTS.

    Section 650 of the Head Start Act (42 U.S.C. 9845) is amended as 
follows:
            (1) The first sentence of subsection (a) is amended to read 
        as follows: ``At least once during every 2-year period, the 
        Secretary shall prepare and submit, to the Committee on 
        Education and the Workforce of the House of Representatives and 
        the Committee on Health, Education, Labor and Pensions of the 
        Senate, a report concerning the status of children (including 
        disabled, homeless, and non-English language background 
        children) in Head Start programs, including the number of 
        children and the services being provided to such children.''.
            (2) Paragraph (8) of subsection (a) is amended by inserting 
        ``, homelessness'' after ``background''.

SEC. 116. HEAD START NONDISCRIMINATION PROVISIONS.

    Section 654 of the Head Start Act (42 U.S.C. 9849) is amended to 
read as follows:

``SEC. 654. NONDISCRIMINATION PROVISIONS.

    ``(a)(1) The Secretary shall not provide financial assistance for 
any program, project, or activity under this subchapter unless the 
grant or contract with respect thereto specifically provides that no 
person with responsibilities in the operation thereof will discriminate 
with respect to any such program, project, or activity because of race, 
creed, color, national origin, sex, political affiliation, or beliefs.
    ``(2) Paragraph (1) shall not apply to a recipient of financial 
assistance under this subchapter that is a religious corporation, 
association, educational institution, or society, with respect to the 
employment of individuals of a particular religion to perform work 
connected with the carrying on by such corporation, association, 
educational institution, or society of its activities. Such recipients 
shall comply with the other requirements contained in this subsection.
    ``(b) No person in the United States shall on the ground of sex be 
excluded from participation in, be denied the benefits of, be subjected 
to discrimination under, or be denied employment in connection with any 
program or activity receiving assistance under this subchapter. The 
Secretary shall enforce the provisions of the preceding sentence in 
accordance with section 602 of the Civil Rights Act of 1964. Section 
603 of such Act shall apply with respect to any action taken by the 
Secretary to enforce such sentence. This section shall not be construed 
as affecting any other legal remedy that a person may have if such 
person is excluded from participation in, denied the benefit of, 
subjected to discrimination under, or denied employment (except as 
provided in subsection (a)(2)), in the administration of any program, 
project, or activity receiving assistance under this subchapter.
    ``(c) The Secretary shall not provide financial assistance for any 
program, project, or activity under this subchapter unless the grant or 
contract relating to the financial assistance specifically provides 
that no person with responsibilities in the operation of the program, 
project, or activity will discriminate against any individual because 
of a handicapping condition in violation of section 504 of the 
Rehabilitation Act of 1973, except as provided in subsection (a)(2).''.

SEC. 117. EFFECTIVE DATE.

    The amendments made by this Act shall be effective with respect to 
fiscal years beginning on and after October 1, 2003.

                 TITLE II--STATE DEMONSTRATION PROGRAM

SEC. 201. STATE DEMONSTRATION PROGRAM.

    The Head Start Act is amended by inserting after section 643 the 
following new section:

``SEC. 643A. STATE DEMONSTRATION PROGRAM.

    ``(a) Grants.--
            ``(1) In general.--
                    ``(A) Eligible States.--In the case of each 
                eligible State that submits to the Secretary an 
                application that fulfills the requirements of this 
                section, the Secretary, from amounts appropriated under 
                section 639(a), shall make a grant to the State to 
                carry out a State demonstration program under this 
                section, except that the Secretary shall not make such 
                grants to more than 8 eligible States.
                    ``(B) Determination.--The Secretary shall make 
                awards to those States that demonstrate--
                            ``(i) that the State standards generally 
                        meet or exceed the standards that ensure the 
                        quality and effectiveness of programs operated 
                        by Head Start agencies;
                            ``(ii) the capacity to deliver high quality 
                        early childhood education services to prepare 
                        children, including low-income children, for 
                        school; and
                            ``(iii) success in improving the school 
                        readiness of children.
            ``(2) State eligibility.--A State shall be eligible to 
        participate in the program under this section if it meets each 
        of the following criteria:
                    ``(A) The State has an existing State supported 
                system providing public prekindergarten to children 
                prior to entry into kindergarten.
                    ``(B) The State has implemented standards as of 
                fiscal year 2003 for school readiness that include 
                standards for language, prereading and premathematics 
                development for prekindergarten that are aligned with 
                State kindergarten through twelfth grade academic 
                content standards and which shall apply to all programs 
                receiving funds under this part or provides an 
                assurance that such standards will be aligned by the 
                end of the second fiscal year of participation.
                    ``(C) State and locally appropriated funds for 
                prekindergarten services and Head Start services in the 
                base year under this section shall not be less than 50 
                percent of the Federal funds that the grantees in the 
                State received under this Act in the base year for 
                services to Head Start eligible children, excluding 
                amounts for services provided under section 645A.
                    ``(D) The State has established a means for inter-
                agency coordination and collaboration in the 
                development of the plan under subsection (h).
    ``(b) Lead Agency.--A program under this section shall be 
administered by a State governmental entity designated by the Chief 
Executive Officer of the State as the lead State agency.
    ``(c) State Operation of Program.--The State may conduct all or any 
part of the program under this section (including the activities 
specified in subsection (g)) directly or by grant, contract, or 
cooperative agreement.
    ``(d) Transition.--
            ``(1) In general.--For 60 months after the effective date 
        of this section, the State shall continue to provide funds to 
        each local grantee who--
                    ``(A) was receiving funds under this subchapter, as 
                in effect prior to the date of enactment of this 
                section, and
                    ``(B) is serving the geographic area covered by the 
                plan in section 643A(h).
        Such continuing grants shall be made in accordance with the 
        terms of the grant made to the local grantee immediately prior 
        to such date of enactment. This paragraph shall not apply to a 
        grant applicant who has experienced substantial uncorrected 
        deficiencies on Department of Health and Human Services 
        monitoring reports during any year of the most recent 5-year 
        period, or to a grantee that, as determined by the State, does 
        not comply with the State plan described in subsection 643A(h) 
        submitted to the Secretary.
    ``(e) Federal Financial Assistance.--
            ``(1) Allocation of federal allotments to state programs.--
        From each total amount described in paragraph (2) allotted to a 
        State for a fiscal year, the Secretary shall pay to a State 
        with a program approved under this section for such fiscal year 
        an amount equal to--
                    ``(A) if the State program is statewide, 100 
                percent of such total amount; and
                    ``(B) if the State program is limited to a 
                geographic area or areas, the sum of--
                            ``(i) an amount equal to the amount 
                        received by grantees in such geographic area or 
                        areas for the Federal fiscal year preceding the 
                        first fiscal year of the State program under 
                        this section; plus
                            ``(ii) an amount bearing the same ratio to 
                        the excess (if any) above the total amount for 
                        such preceding fiscal year as the number of 
                        children less than 5 years of age from families 
                        whose income is below the poverty line in the 
                        geographic area or areas included in the 
                        program bears to the total number of such 
                        children in the State (as determined using the 
                        same data used pursuant to section 
                        640(a)(4)(B)).
            ``(2) Funds allocated.--For purposes of paragraph (1), 
        amounts described in this paragraph are:
                    ``(A) Basic state allotments.--Amounts allotted to 
                States pursuant to section 640(a)(4), including amounts 
                reserved pursuant to section 640(a)(5), excluding 
                amounts for services provided under section 645A.
                    ``(B) State allotments of expansion funds.--Amounts 
                allotted to States pursuant to section 
                640(a)(3)(D)(i)(I) for program expansion.
                    ``(C) Quality improvement funds.--Quality 
                improvement funds (if any) reserved pursuant to section 
                640(a)(3).
                    ``(D) Training and technical assistance funds.--An 
                amount bearing the same ratio to the amount set aside 
                for training and technical assistance activities 
                pursuant to section 640(a)(2)(C)(i) and (ii) as the 
                State's share of amounts allotted under section 
                640(a)(4)(B) bears to the total amount so allotted (and 
                for purposes of subparagraph (A), such amount shall be 
                considered an amount allotted to the State for the 
                fiscal year).
            ``(3) Non-Federal match.--(A) In determining the amount of 
        Federal and non-Federal contributions for purposes of this 
        section, the amounts required to be expended by the State under 
        subsection (h)(14)(B) (relating to maintenance of effort) shall 
        be excluded.
            ``(B) Financial assistance made available to a State under 
        this subchapter shall be in an amount equal to 95 percent of 
        the total amount expended for such programs. The Secretary 
        shall require non-Federal contributions in an amount equal to 5 
        percent of the total amount expended under this subchapter for 
        such programs.
            ``(C) Non-Federal contributions may be made in cash or in 
        kind, fairly evaluated, including plant, equipment, or 
        services.
            ``(4) Combined operations with other early childhood 
        education programs.--A State may combine funds for a program 
        under this section with funds for other early childhood 
        programs serving children in the same age group, as long as all 
        applicable requirements of this subchapter are met with respect 
        to either--
                    ``(A) the entire combined program; or
                    ``(B) each child served in such combined program 
                for whom the services provided are funded from 
                appropriations under this subchapter or non-Federal 
                matching contributions under this subchapter.
            ``(5) Use of funds without regard to allotment purposes.--A 
        State may use funds received pursuant to this section for any 
        program purpose set forth in section 636, without regard to the 
        purposes for such funds specified in section 640.
            ``(6) Other funds.--Funds received under this section shall 
        not supplant any non-Federal, State or local funds that would 
        otherwise be used for activities authorized under this section 
        or similar activities carried out in the State.
    ``(f) Coordination and Choice.--
            ``(1) In general.--A State demonstration Program shall be 
        coordinated with the education programs of local educational 
        agencies in the State to ensure that the program is effectively 
        designed to develop in children in the program the knowledge 
        and behaviors necessary to transition successfully to 
        kindergarten and to succeed in school.
            ``(2) Programs concerned.--
                    ``(A) Required programs.--Such coordination shall 
                occur regarding the implementation of the following:
                            ``(i) The Early Reading First and Even 
                        Start programs under title I, part B, subparts 
                        2 and 3 of the Elementary and Secondary 
                        Education Act of 1965, and other preschool 
                        programs carried out under title I of that Act.
                            ``(ii) State prekindergarten programs.
                            ``(iii) The Ready-to-Learn Television 
                        Program under subpart 3 of part D of title II 
                        of the Elementary and Secondary Education Act.
                    ``(B) Optional programs.--Such coordination may 
                occur regarding the implementation of the following:
                            ``(i) Programs under the Child Care and 
                        Development Block Grant Act.
                            ``(ii) Other publicly funded early 
                        childhood education programs.
            ``(3) Parental choice.--The program shall allow parents to 
        choose the preschool program for their child.
    ``(g) Required Services.--With funds under this section, the State 
shall provide services described in section 641A at least as extensive 
as were provided, and to at least as many low-income children and 
families in each fiscal year as were provided such services, with such 
funds in the base year in the State (or, if applicable, in the 
geographic area included in the State program). A program under this 
section shall include the following comprehensive activities designed 
to promote school readiness and success in school:
            ``(1) Child development and education.--Activities with 
        enrolled children that promote--
                    ``(A) cognitive development, language development, 
                prereading, and premathematics knowledge and skills;
                    ``(B) physical development, health, and nutrition 
                (including through coordination with, and referral of 
                children and families to local health service entities; 
                and
                    ``(C) social development important for environments 
                constructive for child development, early learning, and 
                school success.
            ``(2) Parent education and involvement.--Activities with 
        the parents of enrolled children directed at enhancing and 
        encouraging--
                    ``(A) involvement in, and ability to support, their 
                children's educational development;
                    ``(B) parenting skills and understanding of child 
                development; and
                    ``(C) ability to participate effectively in 
                decisions relating to the education of their children.
            ``(3) Social and family support services.--Activities 
        directed at securing appropriate social and family support 
        services for enrolled children and their families, primarily 
        through referral and coordination with local, State, and 
        Federal entities that provide such services.
            ``(4) Head start services.--For purposes of paragraph (1) 
        Head Start services furnished in a State program under this 
        section shall include all Head Start services, other than--
                    ``(A) Indian Head Start programs and migrant and 
                seasonal Head Start programs supported with funds 
                reserved under section 640(a)(2)(A); and
                    ``(B) Early Head Start services provided under 
                section 645A.
    ``(h) State Plan.--A State proposing to administer a program under 
this section shall submit a State plan to the Secretary. The State plan 
shall include the following:
            ``(1) Lead state agency.--The plan shall identify the 
        entity designated by the Chief Executive Officer of the State 
        as the lead State agency.
            ``(2) Geographic area.--The plan shall specify whether the 
        program is statewide, and, if it is not, identify the 
        geographic area or areas covered by the plan. A geographic area 
        may be a city, county, standard metropolitan statistical area, 
        or such other geographic area in the State.
            ``(3) Program period.--A State program under this section 
        shall be in effect for 5 Federal fiscal years.
            ``(4) Program description.--The plan shall describe the 
        services under subsection (f) to be provided in the program and 
        arrangements the State proposes to use to provide the services 
        specified in subsection (g), including how the State will 
        leverage existing delivery systems for such services.
            ``(5) Needs assessment.--The plan shall describe the 
        results of a State needs assessment and shall provide an 
        assurance that the State will use the results to identify the 
        needs for early childhood education services within a State or 
        geographic area to be served and is targeting services to those 
        areas of greatest need and to expand and improve services to 
        disadvantaged children in the State.
            ``(6) Assurance of compliance.--The plan shall provide an 
        assurance that the State program will comply with the 
        requirements of this section, including each of the following:
                    ``(A) Priority for low-income children.--
                Requirements established pursuant to section 645(a) 
                concerning the eligibility and priority of individuals 
                for participation in Head Start programs.
                    ``(B) Continuation for existing providers.--An 
                applicant who received funds under this subchapter in 
                prior fiscal years and has not corrected any 
                substantial deficiencies identified in the past 5 years 
                shall not be eligible to receive any grants, contract, 
                or cooperative agreements under this section.
                    ``(C) Participation of children with 
                disabilities.--Requirements pursuant to section 640(d) 
                concerning Head Start enrollment opportunities and 
                services for children with disabilities.
                    ``(D) Provisions concerning fees and copayments.--
                The provisions of section 645(b) concerning the 
                charging of fees and the circumstances under which 
                copayments are permissible.
                    ``(E) Federal share; state and local matching.--The 
                provisions of section 640(b) limiting Federal financial 
                assistance for Head Start programs, and providing for 
                non-Federal contributions.
                    ``(F) Administrative costs.--The provisions of 
                section 644(b) limiting the share of program funds that 
                may be used for developing and administering a program.
                    ``(G) Federal property interest.--Applicable 
                provisions of this subchapter regarding the Federal 
                Government interest in property (including real 
                property) purchased, leased, or renovated with Federal 
                funds.
            ``(7) Identification of barriers.--The plan shall identify 
        barriers in the State to the effective use of Federal, State, 
        and local public funds, and private funds, for early education 
        and care that are available to the State on the date on which 
        the application is submitted.
            ``(8) State guidelines for school readiness.--The plan 
        shall include--
                    ``(A) a State definition of school readiness;
                    ``(B) a description of the State's general goals 
                for school readiness, including how the State intends 
                to--
                            ``(i) promote and maintain ongoing 
                        communication and collaboration between 
                        providers of early care and education and local 
                        educational agencies in the State;
                            ``(ii) align early childhood and 
                        kindergarten curricula to ensure program 
                        continuity; and
                            ``(iii) ensure that children successfully 
                        transition to kindergarten.
            ``(9) Teacher qualifications.--The plan shall assure that 
        the qualifications and credentials for early childhood teachers 
        meet or exceed the standards in section 648A(a)(2)(A), (B), and 
        (C).
            ``(10) Professional development.--The plan shall provide a 
        description of the State plan for assuring the ongoing 
        professional development of early childhood educators and 
        administrators including how the State intends to--
                    ``(A) improve the competencies of early childhood 
                educators in meeting the cognitive and other 
                developmental needs of young children through effective 
                instructional strategies, methods, and skills;
                    ``(B) develop and implement initiatives to 
                effectively recruit and promote the retention of well-
                qualified early childhood educators;
                    ``(C) encourage institutions of higher education, 
                providers of community-based training, and other 
                qualified providers to develop high-quality programs to 
                prepare students to be early childhood education 
                professionals; and
                    ``(D) improve the quality of professional 
                development available to meet the needs of teachers 
                that serve preschool children.
            ``(11) Quality Standards.--The State shall describe the 
        State's standards, applicable to all agencies, programs, and 
        projects that receive funds under this subchapter, including a 
        description of--
                    ``(A) standards with respect to services required 
                to be provided, including health, parental involvement, 
                nutritional, social, transition activities described in 
                section 642(d) of this subchapter, and other services;
                    ``(B)(i) education standards to promote the school 
                readiness of children participating in a State program 
                under title II of this subchapter; and
                    ``(ii) additional education standards to ensure 
                that the children participating in the program, at a 
                minimum develop and demonstrate--
                            ``(I) language skills;
                            ``(II) prereading knowledge and skills, 
                        including interest in and appreciation of 
                        books, reading and writing either alone or with 
                        others;
                            ``(III) premathematics knowledge and 
                        skills, including aspects of classification, 
                        seriation, number, spatial relations, and time;
                            ``(IV) cognitive abilities related to 
                        academic achievement;
                            ``(V) social development important for 
                        environments constructive for child 
                        development, early learning, and school 
                        success; and
                            ``(VI) in the case of limited-English 
                        proficient children, progress toward 
                        acquisition of the English language;
                    ``(C) the State's minimum standards for early 
                childhood teacher credentials and qualifications;
                    ``(D) the student-teacher ratio for each age-group 
                served;
                    ``(E) administrative and financial management 
                standards;
                    ``(F) standards relating to the condition and 
                location of facilities for such agencies, programs, and 
                projects; and
                    ``(G) such other standards as the State finds to be 
                appropriate.
            ``(12) State accountability system.--
                    ``(A) In general.--The State plan shall--
                            ``(i) ensure that individual providers are 
                        achieving results in advancing the knowledge 
                        and behaviors identified by the State as 
                        prerequisites for kindergarten success; and
                            ``(ii) specify the measures the State will 
                        use to evaluate the progress toward achieving 
                        such results and the effectiveness of the State 
                        program under this section, and of individual 
                        providers in such program.
                    ``(B) Publication of results.--
                            ``(i) In general.--Subject to clause (ii), 
                        the results shall be made publicly available in 
                        the communities served by the program.
                            ``(ii) Confidentiality safeguards.--The 
                        system shall have in effect privacy safeguards 
                        ensuring that information on children included 
                        in data and results made public in accordance 
                        with clause (i) shall be in aggregated form, 
                        and shall not include information allowing 
                        identification of individual children.
            ``(13) Transition plan.--The initial State plan shall make 
        provision for transition from the direct Federal program under 
        section 640 to the demonstration program.
            ``(14) Cooperation with research studies.--The plan shall 
        provide assurances that the State will cooperate with research 
        activities described in section 649.
            ``(15) Maintenance of effort.--The State plan shall--
                    ``(A) contain a commitment to provide data, at such 
                times and in such format as the Secretary requires, 
                concerning non-Federal expenditures and numbers of 
                children and families served in preschool and Head 
                Start programs during the base year and each fiscal 
                year covered under the State plan, sufficient to 
                satisfy the Secretary that the State program will meet 
                its obligation with respect to the maintenance of 
                effort requirement under subparagraph (B); and
                    ``(B) assure that the resources (which may be cash 
                or in-kind) contributed by the State government to 
                child care for preschool-aged children and other 
                preschool programs, including Head Start, in the State 
                (or, if applicable, in the geographic area included in 
                the State program) for each fiscal year in which the 
                program under this section is in effect shall be in an 
                amount at least equal to the total amount of such State 
                governmental resources contributed to support such 
                programs in the State (or geographic area) for the base 
                year.
            ``(16) Training and Technical Assistance.--The State plan 
        shall describe the training and technical assistance activities 
        that shall provide high quality, sustained, intensive, and 
        classroom-focused training and technical assistance in order to 
        have a positive and lasting impact on classroom instruction.
    ``(i) Records, Reports and Audits.--The State agency administering 
the State program, and each entity participating as a Head Start 
service provider, shall maintain such records, make such reports, and 
cooperate with such audits as the Secretary may require for oversight 
of program activities and expenditures.
    ``(j) Inapplicability of Provisions Concerning Priority in Agency 
Designation.--The provisions of subsections (c) and (d) of section 641 
(concerning priority in designation of Head Start agencies, successor 
agencies, and delegate agencies) shall not apply to a State program 
under this section.
    ``(k) Consultation.--A State proposing to administer a program 
under this section shall submit, with the plan under this section, 
assurances that the plan was developed through timely and meaningful 
consultation with appropriate public and private sector entities, 
including--
            ``(1) representatives of agencies responsible for 
        administering early education and care programs in the State, 
        including Head Start providers;
            ``(2) parents;
            ``(3) the State educational agency and local educational 
        agencies;
            ``(4) early childhood education professionals;
            ``(5) kindergarten teachers and teachers in grades 1 
        through 4;
            ``(6) child welfare agencies;
            ``(7) child care resource and referral agencies;
            ``(8) child care providers; and
            ``(9) a wide array of persons interested in and involved 
        with early care and early education issues in the State, such 
        as representatives of--
                    ``(A) health care professionals;
                    ``(B) the State agency with responsibility for the 
                special supplemental nutrition program for women, 
                infants, and children established by section 17 of the 
                Child Nutrition Act of 1966;
                    ``(C) institutions of higher education;
                    ``(D) community-based and faith-based 
                organizations;
                    ``(E) the business community;
                    ``(F) State legislators and local officials;
                    ``(G) museums and libraries;
                    ``(H) other relevant entities in the State; and
                    ``(I) other agencies that provide resources for 
                young children.
    ``(l) State Plan Submission.--An application shall be submitted by 
a State pursuant to this section to the Secretary, in consultation with 
the Secretary of Education, and shall be deemed to be approved by the 
Secretary unless the Secretary makes a written determination, prior to 
the expiration of a reasonable time beginning on the date on which the 
Secretary received the application, that the application is not in 
compliance with this section.
    ``(m) Treatment of Funds.--If a State or local government 
contributes its own funds to supplement activities carried out under 
the applicable programs, the State or local government has the option 
to separate out the Federal funds or commingle them. If the funds are 
commingled, the provisions of this subchapter shall apply to all of the 
commingled funds in the same manner, and to the same extent, as the 
provisions apply to the Federal funds.
    ``(n) Federal Oversight Authority; Corrective Action; Withdrawal of 
Approval.--
            ``(1) Federal oversight.--The Secretary shall retain the 
        authority to oversee the operation of the State program under 
        this section, including through review of records and reports, 
        audits, and onsite inspection of records and facilities and 
        monitoring of program activities and operations.
            ``(2) Correction of deficiencies.--If the Secretary 
        determines that a State program under this section 
        substantially fails to meet the requirements of this section, 
        the Secretary shall notify the State of the deficiencies 
        identified and require corrective action as follows:
                    ``(A) Deficiencies causing immediate jeopardy.--The 
                Secretary shall require immediate corrective action to 
                eliminate a deficiency that the Secretary finds 
                threatens the health or safety of staff or program 
                participants or poses a threat to the integrity of 
                Federal funds.
                    ``(B) Other deficiencies.--The Secretary, taking 
                into consideration the nature and magnitude of a 
                deficiency not described in subparagraph (A), and the 
                time reasonably required for correction, may--
                            ``(i) require the State to correct the 
                        deficiency within 90 days after notification 
                        under this paragraph; or
                            ``(ii) require the State to implement a 
                        quality improvement plan designed to correct 
                        the deficiency within one year from 
                        identification of the deficiency.
            ``(3) Withdrawal of approval.--If the deficiencies 
        identified under paragraph (2) are not corrected by the 
        deadlines established by the Secretary, the Secretary shall 
        initiate proceedings to withdraw approval of the State program 
        under this section.
            ``(4) Procedural rights.--A State subject to adverse action 
        under this subsection shall have the same procedural rights as 
        a Head Start agency subject to adverse action under section 
        641A.
    ``(o) Independent Evaluation.--
            ``(1) In General.--The Secretary shall contract with an 
        independent organization outside of the Department to design 
        and conduct a multi-year, rigorous, scientifically valid, 
        quantitative evaluation of the State demonstration program.
            ``(2) Process.--The Secretary shall award a contract within 
        180 days of the date of enactment of the School Readiness Act 
        of 2003, to an organization that is capable of designing and 
        carrying out an independent evaluation described in this 
        subsection.
            ``(3) Analysis.--The evaluation shall include an analysis 
        of each State participating in the State demonstration program, 
        including--
                    ``(A) A quantitative description of the State 
                prekindergarten program and Head Start programs within 
                such State, as such programs existed prior to 
                participation in the State demonstration program, 
                including:
                            ``(i) data on the characteristics of the 
                        children served, including the overall number 
                        and percentages of children served 
                        disaggregated by socioeconomic status, race and 
                        ethnicity of those served;
                            ``(ii) the quality and characteristics of 
                        the services provided to such children; and
                            ``(iii) the education attainment of 
                        instructional staff.
                    ``(B) A quantitative and qualitative description of 
                the State program after each year of participation in 
                the State demonstration, which shall include each of 
                the following:
                            ``(i) A description of changes in the 
                        administration of the State program, including 
                        the Head Start program, within such State.
                            ``(ii) The rate of progress of the State in 
                        improving the school readiness of disadvantaged 
                        children in the key domains of development.
                            ``(iii) Data as described in subparagraph 
                        (A), as updated annually.
                            ``(iv) The extent to which each State has 
                        met the goals established by such State with 
                        respect to annual goals as described under 
                        section 643(h)(10).
            ``(4) Report.--(A) The Secretary shall provide an interim 
        report on the progress of such evaluation and of the progress 
        of States participating in the State demonstration in 
        increasing the availability of high quality prekindergarten 
        services for low-income children not later than October 1, 2006 
        to the Committee on Education and the Workforce in the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions in the Senate.
            ``(B) The Secretary shall provide a final report to the 
        Committee on Education and the Workforce in the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions in the Senate, not later than October 1, 2007, 
        which shall include an overall evaluation of the State 
        demonstration program, including an assessment of its success 
        in increasing the overall availability of high quality 
        prekindergarten services for low income children in each of the 
        participating States as compared to a representative sample of 
        non-participating States.
    ``(p) State Participation Agreement.--Following the submission of 
an application fulfilling all requirements of this section, a State 
that meets all eligibility requirements set forth in section 643A(a)(2) 
and is selected by the Secretary to participate in the demonstration 
program under this section shall:
            ``(1) maintain or increase fiscal year 2003 State funding 
        levels for early childhood education;
            ``(2) provide an additional contribution of non-federal 
        funds equal to 5 percent of the State's Federal Head Start 
        allotment;
            ``(3) use Head Start funding only for the purposes of Head 
        Start as described in section 636;
            ``(4) provide all comprehensive social services currently 
        available to Head Start children, including health and 
        nutrition;
            ``(5) develop a strategy to maximize parental involvement 
        to enable parents to become full partners in the education of 
        their children;
            ``(6) demonstrate that the qualifications and credentials 
        for early childhood teachers meet or exceed the standards in 
        section 648A(a)(2)(A), (B), and (C);
            ``(7) enforce quality standards for school readiness that 
        are aligned with K-12 educational standards and generally meet 
        or exceed the Federal Head Start performance standards;
            ``(8) continue funding, for a period of 60 months, all 
        current Head Start grantees as described in section 643A(d);
            ``(9) provide services described in section 641A that are 
        at least as extensive as were provided, and to at least as many 
        low-income children and families in the State, in each fiscal 
        year as were provided such services in the base year;
            ``(10) establish a comprehensive collaboration effort to 
        integrate Head Start, state-funded pre-kindergarten programs, 
        Even Start, Title I preschool, and Early Reading First;
            ``(11) participate in independent evaluations of the 
        demonstration program authorized under this subchapter; and
            ``(12) submit to Federal oversight by the Secretary.
    ``(q) Definition.--For purposes of this section, the term `base 
year' means the fiscal year 2003.''.

            Passed the House of Representatives July 25 (legislative 
      day, July 24), 2003.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.