[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2123 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 2123

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 5, 2005

 Mr. Castle (for himself, Mr. Boehner, Mr. McKeon, Mr. Wilson of South 
  Carolina, Mr. Regula, Mr. Cunningham, Mr. Putnam, and Mr. Sullivan) 
 introduced the following bill; which was referred to the Committee on 
                      Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 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 2005''.

SEC. 2. 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. 3. DEFINITIONS.

    Section 637 of the Head Start Act (42 U.S.C. 9832) is amended--
            (1) in paragraph (17) by striking ``, but for fiscal 
        years'' and all that follows down to the period;
            (2) by redesignating paragraphs (15), (16), and (17) as 
        paragraphs (19), (20), and (21), respectively;
            (3) by redesignating paragraphs (10) through (14) as 
        paragraphs (13) through (17), respectively;
            (4) by redesignating paragraphs (3) through (9) as 
        paragraphs (5) through (11), respectively;
            (5) by redesignating paragraph (2) as paragraph (3);
            (6) by inserting after paragraph (1) the following:
            ``(2) The term `deficiency' means--
                    ``(A) failure of a Head Start agency in an area of 
                performance that the Secretary determines involves--
                            ``(i) a threat to the health, safety, or 
                        civil rights of children or staff;
                            ``(ii) a denial to parents of the exercise 
                        of their full roles and responsibilities 
                        related to program governance;
                            ``(iii) a failure to perform the 
                        requirements of this subchapter, as determined 
                        by the Secretary;
                            ``(iv) the misuse of funds received under 
                        this subchapter;
                            ``(v) loss of legal status (as determined 
                        by the Secretary) or financial viability, loss 
                        of permits, debarment from receiving Federal 
                        grants or contracts, or the improper use of 
                        Federal funds; or
                            ``(vi) failure to meet any other of Federal 
                        or State requirement;
                    ``(B) failure of the board of directors of a Head 
                Start agency to fully exercise its legal and fiduciary 
                responsibilities;
                    ``(C) failure of a Head Start agency to meet the 
                administrative requirements of section 644(b); or
                    ``(D) failure of a Head Start agency to meet the 
                integration requirements of 642B.'';
            (7) by inserting after paragraph (3), as so redesignated, 
        the following:
            ``(4) 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.'';
            (8) by inserting after paragraph (11), as so redesignated, 
        the following:
            ``(12) 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.).'';
            (9) by inserting after paragraph (17), as so redesignated, 
        the following:
            ``(18) Professional Development.--The term `professional 
        development' includes activities that--
                    ``(A) assist teachers in meeting the professional 
                requirements insection 648A(a)(1);
                    ``(B) improve classroom management skills;
                    ``(C) are high quality, sustained, intensive, and 
                classroom-focused in order to have a positive and 
                lasting impact on classroom instruction and the 
                teacher's performance in the classroom;
                    ``(D) are not 1-day or short-term workshops or 
                conferences;
                    ``(E) assist teachers and staff in increasing their 
                knowledge and skills in program administration, program 
                quality, and the provision of services and instruction 
                in a manner that improves service delivery to eligible 
                children and families;
                    ``(F) support the recruiting, hiring, and training 
                of teachers that meet the requirements of section 
                648A(a)(2);
                    ``(G) are part of a sustained effort to improve 
                overall program quality and outcomes for eligible 
                children and families;
                    ``(H) advance teacher understanding of effective 
                instructional strategies that are--
                            ``(i) based on scientifically based 
                        research; and
                            ``(ii) strategies for improving school 
                        readiness or substantially increasing the 
                        knowledge and teaching skills of teachers;
                    ``(I) are, where applicable, aligned with and 
                directly related to--
                            ``(i) State academic content standards, 
                        student academic achievement standards, and 
                        assessments; and
                            ``(ii) the curricula and programs tied to 
                        the standards described in section 641(a)(1);
                    ``(J) are developed with extensive participation of 
                administrators and teachers from Head Start programs;
                    ``(K) are appropriate for the children being 
                served;
                    ``(L) are designed to give teachers of non-English 
                language background children, and other teachers and 
                instructional staff, the knowledge and skills to 
                provide instruction and appropriate language and 
                support services to those children;
                    ``(M) as a whole, are regularly evaluated for their 
                impact on increased staff effectiveness and improved 
                ability of teachers to support learning and increase 
                participating children's school readiness, with the 
                findings of the evaluations used to improve the quality 
                of professional development;''.
                    ``(N) provide instruction in methods of teaching 
                children with special needs; and
                    ``(O) include instruction in ways that Head Start 
                personnel may work more effectively with parents.'', 
                and
    (10) by adding at the end the following:
            ``(22) The term `unresolved area of noncompliance' means a 
        failure to correct a noncompliance item within 90 days, or 
        within such additional time (if any) authorized by the 
        Secretary, after receiving from the Secretary notice of such 
        noncompliance item.''.

SEC. 4. FINANCIAL ASSISTANCE FOR HEAD START PROGRAMS.

    Section 638 of the Head Start Act (42 U.S.C. 9833) is amended by 
inserting ``for a period of 5 years'' after ``provide financial 
assistance to such agency''.

SEC. 5. 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 $6,899,000,000 for the 
fiscal year 2006 and such sums as may be necessary for the fiscal years 
2007 through 2011.
    ``(b) Specific Programs.--From the amount appropriated under 
subsection (a), the Secretary shall make available not more than 
$20,000,000 for fiscal year 2006, and such sums as may be necessary for 
fiscal years 2007 through 2011 to carry out such other research, 
demonstration, and evaluation activities, including longitudinal 
studies, under section 649, of which not more than $7,000,000 for each 
of the fiscal years 2006 through 2011 to carry out impact studies under 
section 649(g).''.

SEC. 6. ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE.

    (a) Allotments.--Section 640(a) of the Head Start Act (42 U.S.C. 
9835(a)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A) by striking ``1998'' and 
                inserting ``2005'';
                    (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;'';
                    (C) by amending (C) to read as follows:
            ``(C) training and technical assistance activities to 
        foster program quality and management improvement as described 
        in section 648, in an amount for each fiscal year which is 
        equal to 2 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 make program 
                improvements identified by such agencies and 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 20 percent shall be made 
                available to support a State system of early childhood 
                education training and technical assistance, including 
                the State Early Learning Council described in section 
                642B;
                    ``(iii) not less than 30 percent shall be made 
                available to the Secretary to assist local programs in 
                meeting the standards described in section 641A(a)(1) 
                and shall be allocated to address program weaknesses 
                identified by monitoring activities conducted by the 
                Secretary under section 641A(c); 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);''; and
                    (D) by striking the last sentence.
            (2) in paragraph (3)--
                    (A) in subparagraph (A)--
                            (i) in clause (i)(I) by striking ``1999'' 
                        and all that follows down to the semicolon and 
                        inserting ``2006 through 2011''; and
                            (ii) by adding at the end the following:
    ``(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--
            ``(I) to expand services to underserved populations, such 
        as children receiving services under the Early Head Start and 
        migrant and seasonal Head Start programs; and
            ``(II) to increase funding to grantees with full enrollment 
        and whose aggregate amount of financial assistance provides 
        funding per child that is below the national average.'';
                    (B) by amending subparagraph (B) to read as 
                follows:
    ``(B) Funds reserved under this paragraph (in this paragraph 
referred to 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--
                    ``(I) to assist with the implementation of quality 
                programs and improve staff qualifications;
                    ``(II) to ensure that staff can promote the 
                language skills and literacy growth of children and can 
                provide children with a variety of skills that have 
                been identified, through scientifically based early 
                reading research, as predictive of later reading 
                achievement; and
                    ``(III) 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 postsecondary 
        coursework including scholarships or other financial 
        incentives, such as differential and merit pay, to enable Head 
        Start teachers to improve competencies and the resulting child 
        outcomes.
            ``(ix) Making such other improvements in the quality of 
        such programs as the Secretary may designate.
            ``(x) Promoting the regular attendance and stability of all 
        Head Start children with particular attention to highly mobile 
        children, including children from migrant and seasonal 
        farmworker families (if appropriate), homeless children, and 
        children in foster care.''; and
                    (C) by amending subparagraph (C) to read as 
                follows:
    ``(C) Quality improvement funds shall be used to carry out the 
activities in any or all of the following clauses:
            ``(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 may carry out the activities described in clauses 
        (ii) through (vii).
            ``(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 provide education and training necessary 
                to improve the qualifications of Head Start staff, 
                particularly assistance to enable more instructors to 
                be fully competent and 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 challenges of children 
                participating in Head Start programs, including 
                children from immigrant, refugee, and asylee families, 
                children from families in crisis, 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 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.'';
            (3) in paragraph (4) by striking ``1998'' in subparagraph 
        (A) and inserting ``2005'';
            (4) in paragraph (5) by amending subparagraphs (A), (B), 
        and (C) to read as follows:
    ``(A) From amounts reserved and allotted pursuant to paragraph (4) 
and the amounts reserved in Section 640(a)(2)(C)(ii), the Secretary 
shall award the grants described in Section 642B(b).
    ``(B) From the reserved sums in paragraph (4) the Secretary shall 
award a collaboration grant to any State that submits a written request 
outlining why it is unable to comply with Section 642B(b). Such grant 
shall be equal to the amount the State received under this paragraph 
for such activity for fiscal year 2005. Such grant shall be used by the 
State to facilitate collaboration regarding activities carried out in 
the State under this subchapter, and other activities carried out in 
and by the State that are designed to benefit low-income children and 
families and to encourage Head Start agencies to collaborate with 
entities involved in State and local planning processes (including the 
State lead agency administering the financial assistance under the 
Child Care and Development Block Grant Act of 1990 and the entities 
that provide child care resource and referral services in the State) in 
order to better meet the needs of low-income children and their 
families.
    ``(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 2005' 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 
        Assistance 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.'';
                    (C) in subparagraph (D)(i) by inserting ``and 
                providers of services supporting early childhood 
                education and child care'' after ``Associations''; and
                    (D) by amending paragraph (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 each of the fiscal years 
2006 through 2011, of the amount appropriated pursuant to section 
639(a), except as provided in subparagraph (B).''.
    (b) Service Delivery Models.--Section 640(f) of the Head Start Act 
(42 U.S.C. 9835(f)) is amended by inserting before the period at the 
end the following: ``, including models that leverage the existing 
capacity and capabilities of the delivery system of early childhood 
education and child care'';
    (c) Maintenance of Service Levels.--Section 640(g)(2) of the Head 
Start Act (42 U.S.C. 9835(g)(2)) is amended--
            (1) by striking ``For purposes of expanding Head Start 
        programs, in'' and inserting ``in'';
            (2) by amending subparagraph (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 Federal, State, and 
        local 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 individuals, 
        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 Assistance Act 
        (42 U.S.C. 11432(g)(1)(J)(ii));'';
            (3) in subparagraph (D) by striking ``other local'' and 
        inserting ``the State and local'';
            (4) in subparagraph (E) by inserting ``would like to 
        participate but'' after ``community who'';
            (5) in subparagraph (G)--
                    (A) by inserting ``leverage the existing delivery 
                systems of such services and'' after ``manner that 
                will''; and
                    (B) by striking ``and'' at the end;
            (6) in subparagraph (H)--
                    (A) by inserting ``, including the local 
                educational agency liaison designated under section 
                722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)),'' after 
                ``community involved'';
                    (B) by striking ``plans to coordinate'' and 
                inserting ``successfully coordinated its activities''; 
                and
                    (C) by striking the period at the end and inserting 
                ``; and''; and
            (7) by adding at the end the following:
            ``(I) the amount of funds used by such agency to pay 
        administrative expenses and the amount of available funds 
        received by such agency under this section to serve each 
        enrolled child.''.
    (d) Vehicle Safety Requirements.--Section 640(i) of the Head Start 
Act (42 U.S.C. 9835(i)) is amended--
            (1) by striking ``(i) The'' and inserting the following:
    ``(i) Transportation Safety.--
            ``(1) Regulations.--The''; and
            (2) by adding at the end the following:
            ``(2) Waiver authority.--
                    ``(A) In general.--The Secretary may waive for a 
                period of up to one year the requirements of 
                regulations promulgated under paragraph (1) for one or 
                more vehicles used by the agency or its designee in 
                transporting children enrolled in a Head Start program 
                or an Early Head Start program if--
                            ``(i) such requirements pertain to child 
                        restraint systems and bus monitors;
                            ``(ii) the agency demonstrates that 
                        compliance with such requirements will result 
                        in a significant disruption to the Head Start 
                        or Early Head Start program; and
                            ``(iii) is in the best interest of the 
                        child.
                    ``(B) Renewal.--The Secretary may renew a waiver 
                under subparagraph (A)''.
    (e) Migrant and Seasonal Head Start Programs.--Section 640(l) of 
the Head Start Act (42 U.S.C. 9835(l)) is amended--
            (1) in paragraph (3) by adding at the end the following:
``In carrying out this subchapter, the Secretary shall continue the 
administrative arrangement at the National level for meeting the needs 
of Indian children and children of migrant and seasonal farmworkers to 
ensure that appropriate funding is provided to meet such needs.''; and
            (2) by adding at the end the following:
    ``(4)(A) For the purposes of paragraph (3), the Secretary shall 
conduct an annual consultation in each affected Head Start region, with 
tribal governments operating Head Start programs and Early Head Start 
programs.
    ``(B) The consultations shall be for the purpose of better meeting 
the needs of American Indian and Alaska Native children and families 
pertinent to subsections (a), (b), and (c) of section 641, taking into 
consideration funding allocations, distribution formulas, and other 
issues affecting the delivery of Head Start services within tribal 
communities.
    ``(C) The Secretary shall publish a notification of the 
consultations in the Federal Register prior to conducting the 
consultations.
    ``(D) A detailed report of each consultation shall be prepared and 
made available, on a timely basis, to all tribal governments receiving 
funds under this subchapter.''.
    (f) Enrollment of Homeless Children.--Section 640 of the Head Start 
Act (42 U.S.C. 9835) is amended by adding at the end the following:
    ``(m) Enrollment of Homeless Children.--The Secretary shall by 
regulation prescribe policies and procedures to remove barriers to the 
enrollment and participation of homeless children in Head Start 
programs. Such regulations shall require Head Start agencies--
            ``(1) to implement policies and procedures to ensure that 
        homeless children are identified and prioritized for 
        enrollment;
            ``(2) to 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 subchapter 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. 7. DESIGNATION OF AGENCIES.

    (a) Authority To Designate.-- Section 641(a) of the Head Start Act 
(42 U.S.C. 9836(a)) is amended to read as follows:
    ``(a) Authority To Designate.--
            ``(1) In general.--The Secretary is authorized to designate 
        as a Head Start agency any local public or private nonprofit or 
        for-profit agency within a State, including a community-based 
        or faith-based organization that--
                    ``(A) has power and authority to carry out the 
                purpose of this subchapter and perform the functions 
                set forth in section 642 within a State; and
                    ``(B) is determined to be capable of planning, 
                conducting, administering, and evaluating, either 
                directly or by other arrangements, a Head Start 
                program.
            ``(2) Designation requirements.--In order to be designated 
        as a Head Start agency and to receive a financial assistance 
        under this subchapter, an entity described in paragraph (1) 
        shall establish measurable objectives for improving the school 
        readiness of children participating in a program under this 
        subchapter, including measurable objectives for meeting the 
        performance standards described in section 641A and for--
                    ``(A) educational instruction in prereading, 
                premathematical, and language skills;
                    ``(B) the provision of health, educational, 
                nutritional, social, and other services related to 
                school readiness standards; and
                    ``(C) school readiness standards that are aligned 
                with State-developed K-12 academic content standards.
            ``(3) Eligibility for subsequent financial assistance.--In 
        order to receive a financial assistance under this subchapter-
        subsequent to the initial financial assistance provided 
        following the effective date of this subsection, an entity 
        described in paragraph (1) shall demonstrate that the entity 
        has met the measurable objectives described in paragraph (2);
            ``(4) Measuring Progress.--Progress in meeting such 
        measurable objectives shall not be measured primarily or solely 
        by the results of assessments.''
    (b) Priority in Designation.--Section 641(c) of the Head Start Act 
(42 U.S.C. 9836(c)) is amended to read as follows:
    ``(c) Consultation.--In the administration of this section, the 
Secretary shall, in consultation with the chief executive officer of 
the State involved, give priority in the designation of Head Start 
agencies to Head Start agencies that--
            ``(1) are receiving assistance under this subchapter on the 
        effective date of this subsection;
            ``(2) meet or exceeds program and financial management 
        requirements, standards described in section 641A(a)(1);
            ``(3) meet or exceed the results-based performance measures 
        developed by the Secretary under section 641A(b)(4);
            ``(4) have no unresolved areas of noncompliance;
            ``(5) have not been deemed deficient;
            ``(6) employ qualified staff (including, in center-based 
        programs, a teaching staff of whom at least 50 percent have a 
        associate, baccalaureate, or advanced degree in early child 
        education or a related field);
            ``(7) were not deemed by the Secretary as chronically 
        under-enrolled at any time during the term for which financial 
        assistance was provided;
            ``(8) utilize research-based curricula that are aligned 
        with State-developed K-12 academic content standards;
            ``(9) demonstrate active partnerships with local 
        educational agencies serving the same communities to facilitate 
        smooth transitions to kindergarten;
            ``(10) actively implement a memorandum of understanding 
        with any local educational agency within the service area and 
        additional partnership agreements with organizations that 
        enhance the delivery of services to children;
            ``(11) demonstrate success in improving child outcomes 
        across all domains of development, including measurable 
        progress in language skills, prereading knowledge, and 
        premathematics knowledge;
            ``(12) maintain classroom environments constructive to 
        early learning and future school success;
            ``(13) demonstrate strong parental involvement and 
        activities to develop parent skills to support their children's 
        educational development and ability to participate effectively 
        in decisions relating to the education of their children;
            ``(14) are overseen by a local governance board that 
        provides direction and actively oversees all program 
        activities;
            ``(15) document strong fiscal controls, including--
                    ``(A) the employment of well-qualified fiscal staff 
                with a history of successful management of a public or 
                private organization;
                    ``(B) having no reportable noncompliance with 
                applicable laws and regulations on all annual financial 
                audits performed since the most recent designation;
                    ``(C) meeting or exceeding annual requirements for 
                financial support under section 640(b); and
                    ``(D) maintaining total administrative costs at or 
                below 15 percent of total program costs;
            ``(16) are licensed to operate in accordance with all 
        applicable State child care regulations;
            ``(17) conduct outreach activities to ensure that services 
        are provided to the most at-risk families in the community;
            ``(18) have developed strong community partnerships with 
        public and private organizations, such as businesses, health, 
        and social service providers; and
            ``(19) provide opportunities for ongoing professional 
        development.''.
    (c) Designation When No Entity Has Priority.--Section 641(d) of the 
Head Start Act (43 U.S.C. 9836(d)) is amended to read as follows:
    ``(d) Designation When No Entity Has Priority.--
            ``(1) In general.--If no entity in a community is entitled 
        to the priority specified in subsection (c), the Secretary 
        shall, after conducting an open competition, designate a Head 
        Start agency from among qualified applicants in such 
        community.''.
            ``(2) Considerations in designation.--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--
                    ``(A) any past performance of such applicant in 
                providing services comparable to Head Start services, 
                including how effectively such applicant provided such 
                comparable services;
                    ``(B) the plan of such applicant to provide 
                comprehensive health, educational, nutritional, social, 
                and other services needed to prepare children to 
                succeed in school;
                    ``(C) the capacity of such applicant to serve 
                eligible children with scientifically based programs 
                that promote the school readiness of children 
                participating in the program;
                    ``(D) 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;
                    ``(E) the proposed budget and plan of such 
                applicant to maintain strong fiscal controls and cost 
                effective fiscal management;
                    ``(F) the plan of such applicant to coordinate the 
                Head Start program the applicant proposes to carry out 
                with other educational programs for young children, 
                including--
                            ``(i) the Early Reading First and Even 
                        Start programs under subparts 2 and 3 of part B 
                        of title I of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 6371 et seq., 
                        6381 et seq.);
                            ``(ii) programs under section 619 and part 
                        C of the Individuals with Disabilities 
                        Education Act (20 U.S.C. 1419, 1431 et seq.);
                            ``(iii) State prekindergarten programs;
                            ``(iv) child care programs;
                            ``(v) the educational programs that the 
                        children participating in the Head Start 
                        program involved will enter at the age of 
                        compulsory school attendance; and
                            ``(vi) reading readiness programs such as 
                        those conducted by public and school libraries;
                    ``(G) the plan of such applicant to coordinate the 
                Head Start program that the applicant proposes to carry 
                out, with public and private entities that are willing 
                to commit resources to assist the Head Start -program 
                in meeting its program needs;
                    ``(H) the plan of such applicant--
                            ``(i) to seek the involvement of parents of 
                        children participating in the proposed Head 
                        Start program, in activities (at home and, if 
                        practicable, at the location of the Head Start 
                        program) designed to help such parents become 
                        full partners in the education of their 
                        children;
                            ``(ii) to afford such parents the 
                        opportunity to participate in the development 
                        and overall conduct of the program at the local 
                        level;
                            ``(iii) to offer (directly or through 
                        referral to local entities, such as entities 
                        carrying out Even Start programs under subpart 
                        3 of part B of title I of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 6381 
                        et seq.), public and school libraries, and 
                        entities carrying out family support programs) 
                        to such parents--
                                    ``(I) family literacy services; and
                                    ``(II) parenting skills training;
                            ``(iv) to offer to parents of participating 
                        children, substance abuse counseling (either 
                        directly or through referral to local 
                        entities), including information on the effect 
                        of drug exposure on infants and fetal alcohol 
                        syndrome;
                            ``(v) at the option of such applicant, to 
                        offer (directly or through referral to local 
                        entities) to such parents--
                                    ``(I) training in basic child 
                                development (including cognitive 
                                development);
                                    ``(II) assistance in developing 
                                literacy and communication skills;
                                    ``(III) opportunities to share 
                                experiences with other parents 
                                (including parent mentor 
                                relationships);
                                    ``(IV) regular in-home visitation; 
                                or
                                    ``(V) any other activity designed 
                                to help such parents become full 
                                partners in the education of their 
                                children;
                            ``(vi) 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
                            ``(vii) to extend outreach to fathers, in 
                        appropriate cases, in order to strengthen the 
                        role of fathers in families, in the education 
                        of their young children, and in the Head Start 
                        program, by working directly with fathers and 
                        father figures through activities such as--
                                    ``(I) in appropriate cases, 
                                including fathers in home visits and 
                                providing opportunities for direct 
                                father-child interactions; and
                                    ``(II) targeting increased male 
                                participation in the conduct of the 
                                program;
                    ``(I) the ability of such applicant to carry out 
                the plans described in paragraphs (2), (4), and (5);
                    ``(J) the plan of such applicant to meet the needs 
                of non-English background children and their families, 
                including procedures to identify such children, plans 
                to provide trained personnel, and plans to provide 
                services to assist the children in making progress 
                toward the acquisition of the English language;
                    ``(K) the plan of such applicant to meet the needs 
                of children with disabilities;
                    ``(L) the plan of such applicant who chooses to 
                assist younger siblings of children who will 
                participate in the Head Start program, to obtain health 
                services from other sources;
                    ``(M) the plan of such applicant to collaborate 
                with other entities carrying out early childhood 
                education and child care programs in the community;
                    ``(N) the plan of such applicant to meet the needs 
                of homeless children, including transportation needs, 
                and children in foster care;
                    ``(O) the plan of such applicant to maintain a 
                qualified staff, including a teaching staff qualified 
                to implement research-based educational curricula 
                aligned with State-developed K-12 academic content 
                standards;
                    ``(P) the plan of such applicant to enter into 
                memoranda of understanding with local educational 
                agencies, child care providers, and other entities 
                within the service area; and
                    ``(Q) other factors related to the requirements of 
                this subchapter.''.

SEC. 8. QUALITY STANDARDS; MONITORING OF HEAD START AGENCIES AND 
              PROGRAMS.

    (a) Quality Standards.--Section 641A(a) of the Head Start Act (42 
U.S.C. 9836a(a)) is amended--
            (1) by amending paragraph (1)(B)--
                    (A) in clause (i)--
                            (i) by inserting ``based on sound 
                        scientific evidence'' after ``standards''; and
                            (ii) by inserting ``and sustained academic 
                        gains'' after ``readiness''; and
                    (B) by amending clause (ii) to read as follows:
                    ``(ii) additional scientifically-based education 
                standards to ensure that the children participating in 
                the program, at a minimum develop and demonstrate--
                            ``(I) language knowledge and skills, 
                        including language and listening comprehension;
                            ``(II) prereading knowledge and skills that 
                        prepare children for early literacy in schools, 
                        including phonological awareness, print 
                        awareness, and alphabetic knowledge;
                            ``(III) premathematics knowledge and 
                        skills, including aspects of classification, 
                        seriation, number, spatial relations, and time;
                            ``(IV) cognitive abilities related to 
                        academic achievement and child development;
                            ``(V) social and emotional development 
                        related to constructive child development, 
                        early learning, and school success and 
                        sustained academic gains; and
                            ``(VI) in the case of limited-English 
                        proficient children, progress toward 
                        acquisition of the English language while 
                        making meaningful progress in attaining the 
                        knowledge, skills, abilities, and development 
                        described in subclauses (I) through (IV);'';
            (2) in paragraph (2)--
                    (A) by amending subparagraph (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 research 
                        based 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 that the 
                        children will be attending; and
                            ``(viii) the unique challenges faced by 
                        individual programs, including those that are 
                        seasonal or short term, and those that serve 
                        rural populations; and''; and
                    (B) in subparagraph (C)(ii) by striking ``the 
                date'' and all that follows through ``Act of'', and 
                inserting ``October 27, 1998''; and
            (3) by adding at the end the following:
            ``(4) Evaluations and corrective actions for delegate 
        agencies.--
                    ``(A) Procedures.--The Head Start agency shall 
                establish procedures relating to its delegate agencies, 
                including--
                            ``(i) procedures for evaluating delegate 
                        agencies;
                            ``(ii) procedures for defunding delegate 
                        agencies; and
                            ``(iii) procedures for appealing a 
                        defunding decision relating to a delegate 
                        agency.
                    ``(B) Evaluations.--Each Head Start agency--
                            ``(i) shall evaluate its delegate agencies 
                        using the procedures established pursuant to 
                        this section, including subparagraph (A); and
                            ``(ii) shall inform the delegate agencies 
                        of the deficiencies identified through the 
                        evaluation that shall be corrected.
                    ``(C) Remedies to ensure corrective actions.--In 
                the event that the Head Start agency identifies a 
                deficiency for a delegate agency through the 
                evaluation, the Head Start agency may--
                            ``(i) initiate procedures to terminate the 
                        designation of the agency unless the agency 
                        corrects the deficiency;
                            ``(ii) conduct monthly monitoring visits to 
                        such delegate agency until all deficiencies are 
                        corrected or the Head Start agency decides to 
                        defund such delegate agency; and
                            ``(iii) release funds to such delegate 
                        agency only as reimbursements until all 
                        deficiencies are corrected or the Head Start 
                        agency decides to defund such delegate agency.
                    ``(D) Rule of construction.--Nothing in this 
                paragraph shall be construed to impact or obviate the 
                responsibilities of the Secretary with respect to Head 
                Start agencies or delegate agencies receiving funding 
                under this subchapter.''.
    (b) Results-Based Performance Measures.--Section 641A(b) of the 
Head Start Act (42 U.S.C. 9836a(b)) is amended--
            (1) by amending paragraph (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).''; and
            (2) 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.''.
    (c) Monitoring of Local Agencies and Programs.--Section 641A(c) of 
the Head Start Act (42 U.S.C. 9836a(c)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``develop and utilize a risk-based assessment 
                system to'' after ``shall'';
                    (B) by amending subparagraph (C) to read as 
                follows:
                    ``(C) Unannounced site inspections of Head Start 
                centers, as appropriate.'';
                    (C) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (D) by inserting after subparagraph (C) the 
                following:
                    ``(D) Followup reviews including a review of 
                programs with citations that include 1 or more findings 
                of deficiencies not later than 6 months after the date 
                of such citation.''; and
            (2) by amending paragraph (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 composed of 
                individuals who are knowledgeable about the program 
                areas they are reviewing 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, including strengths and areas for 
                improvement, 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);
                    ``(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); and
                    ``(I) are conducted in a manner that evaluates 
                program performance, quality, and overall operations 
                with consistency and objectivity, and based on a 
                transparent and reliable system of review.''.
    (d) Corrective Action; Termination.--Section 641A(d) of the Head 
Start Act (42 U.S.C. 9836a(d)) is amended--
            (1) in paragraph (1) by amending the matter preceding 
        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--'';
            (2) by amending paragraph (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.'';
            (3) in paragraph (3) by inserting ``and programs'' after 
        ``agencies'';
            (4) by amending subsection (e) 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 children receiving assistance under this 
subchapter 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.''; and
            (5) by adding at the end the following:
    ``(f) Reduction of Grants and Redistribution of Funds in Cases of 
Under-Enrollment.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Actual enrollment.--The term `actual 
                enrollment' means, with respect to the program of a 
                Head Start agency, the actual number of children 
                enrolled in such program and reported by the agency (as 
                required in paragraph (2)) in a given month.
                    ``(B) Base grant.--The term `base grant' means, 
                with respect to a Head Start agency for a fiscal year, 
                that portion of the grant derived--
                            ``(i) from amounts reserved for use in 
                        accordance with section 640(a)(2)(A), for a 
                        Head Start agency administering an Indian Head 
                        Start program or migrant and seasonal Head 
                        Start program;
                            ``(ii) from amounts reserved for payments 
                        under section 640(a)(2)(B); or
                            ``(iii) from amounts available under 
                        section 640(a)(2)(D) or allotted among States 
                        under section 640(a)(4).
                    ``(C) Funded enrollment.--The term `funded 
                enrollment' means, with respect to the program of a 
                Head Start agency in a fiscal year, the number of 
                children that the agency is funded to serve through a 
                grant for the program during such fiscal year, as 
                indicated in the grant agreement.
            ``(2) Enrollment reporting requirement for current fiscal 
        year.--Each entity carrying out a Head Start program shall 
        report on a monthly basis to the Secretary and the relevant 
        Head Start agency--
                    ``(A) the actual enrollment in such program; and
                    ``(B) if such actual enrollment is less than the 
                funded enrollment, any apparent reason for such 
                enrollment shortfall.
            ``(3) Secretarial review and plan.--The Secretary shall--
                    ``(A) on a semiannual basis, determine which Head 
                Start agencies are operating with an actual enrollment 
                that is less than the funded enrollment based on not 
                less than 4 consecutive months of data;
                    ``(B) for each such Head Start agency operating a 
                program with an actual enrollment that is less than 98 
                percent of its funded enrollment, as determined under 
                subparagraph (A), develop, in collaboration with such 
                agency, a plan and timetable for reducing or 
                eliminating under-enrollment taking into 
                consideration--
                            ``(i) the quality and extent of the 
                        outreach, recruitment, and community needs 
                        assessment conducted by such agency;
                            ``(ii) changing demographics, mobility of 
                        populations, and the identification of new 
                        underserved low-income populations;
                            ``(iii) facilities-related issues that may 
                        impact enrollment;
                            ``(iv) the ability to provide full-day 
                        programs, where needed, through Head Start 
                        funds or through collaboration with entities 
                        carrying out other preschool or child care 
                        programs, or programs with other funding 
                        sources (where available);
                            ``(v) the availability and use by families 
                        of other preschool and child care options 
                        (including parental care) in the local 
                        catchment area; and
                            ``(vi) agency management procedures that 
                        may impact enrollment; and
                    ``(C) provide timely and ongoing technical 
                assistance to each agency described in subparagraph (B) 
                for the purpose of implementing the plan described in 
                such subparagraph.
            ``(4) Implementation.--Upon receipt of the technical 
        assistance described in paragraph (3)(C), a Head Start agency 
        shall immediately implement the plan described in paragraph 
        (3)(B).
            ``(5) Secretarial action for continued under-enrollment.--
        If, 1 year after the date of implementation of the plan 
        described in paragraph (3)(B), the Head Start agency continues 
        to operate a program at less than full enrollment, the 
        Secretary shall, where determined appropriate, continue to 
        provide technical assistance to such agency.
            ``(6) Secretarial review and adjustment for chronic under-
        enrollment.--
                    ``(A) In general.--If, after receiving technical 
                assistance and developing and implementing a plan to 
                the extent described in paragraphs (3), (4), and (5) 
                for 6 months, a Head Start agency is still operating a 
                program with an actual enrollment that is less than 98 
                percent of its funded enrollment, the Secretary may--
                            ``(i) designate such agency as chronically 
                        under-enrolled; and
                            ``(ii) recapture, withhold, or reduce the 
                        base grant for the program by, a percentage 
                        equal to the percentage difference between 
                        funded enrollment and actual enrollment for the 
                        program for the most recent year in which the 
                        agency is determined to be under-enrolled under 
                        paragraph (2)(B).
                    ``(B) Waiver or limitation of reductions.--If the 
                Secretary, after the implementation of the plan 
                described in paragraph (3)(B), finds that--
                            ``(i) the shortfall can reasonably be 
                        expected to be temporary; or
                            ``(ii) the number of slots allotted to the 
                        agency is small enough that under-enrollment 
                        does not constitute a significant shortfall,
                the Secretary may, as appropriate, waive or reduce the 
                percentage recapturing, withholding, or reduction 
                otherwise required by subparagraph (A).
                    ``(C) Procedural requirements; effective date.--The 
                actions taken by the Secretary under this paragraph 
                with respect to a Head Start agency shall take effect 1 
                day after the date on which--
                            ``(i) the time allowed for appeal under 
                        section 646(a) expires without an appeal by the 
                        agency; or
                            ``(ii) the action is upheld in an 
                        administrative hearing under section 646.
            ``(7) Redistribution of funds.--
                    ``(A) In general.--The Secretary shall use amounts 
                recovered from a Head Start agency through recapturing, 
                withholding, or reduction under paragraph (6) in a 
                fiscal year--
                            ``(i) in the case of a Head Start agency 
                        administering an Indian Head Start program or a 
                        migrant and seasonal Head Start program, whose 
                        base grant is derived from amounts specified in 
                        paragraph (1)(C)(i), to redirect funds to 1 or 
                        more agencies that--
                                    ``(I) are administering Head Start 
                                programs serving the same special 
                                population; and
                                    ``(II) demonstrate that the 
                                agencies will use such redirected funds 
                                to increase enrollment in their Head 
                                Start programs in such fiscal year; or
                            ``(ii) in the case of a Head Start agency 
                        in a State, whose base grant is derived from 
                        amounts specified in clause (ii) or (iii) of 
                        paragraph (1)(C), to redirect funds to 1 or 
                        more agencies that--
                                    ``(I) are administering Head Start 
                                programs in the same State; and
                                    ``(II) make the demonstration 
                                described in clause (i)(II).
                    ``(B) Special rule.--If there is no agency located 
                in a State that meets the requirements of subclauses 
                (I) and (II) of subparagraph (A)(ii), the Secretary 
                shall use amounts described in subparagraph (A) to 
                redirect funds to Head Start agencies located in other 
                States that make the demonstration described in 
                subparagraph (A)(i)(II).
                    ``(C) Adjustment to funded enrollment.--The 
                Secretary shall adjust as necessary the requirements 
                relating to funded enrollment indicated in the grant 
                agreement of a Head Start agency receiving 
                redistributed amounts under this paragraph.''.

SEC. 9. POWERS AND FUNCTIONS OF HEAD START AGENCIES.

    (a) Qualifications for Designation.--Section 642(b) of the Head 
Start Act (42 U.S.C. 9837(b)) is amended to read as follows:
    ``(b) In order to be so designated, a Head Start agency shall do 
all of the following:--
            ``(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) Establish an independent board of directors selected 
        from among eligible individuals who shall serve on the board 
        without compensation. An individual who has a conflict of 
        interest is ineligible to serve as a member of the board. 
        Members of the board shall include parents of children 
        participating in the Head Start program and representatives of 
        the local community (including at least 1 member with 
        significant financial management or accounting experience). 
        Additional members shall be selected for their expertise in 
        education, business administration, community affairs, 
        government, legal affairs, and such other areas of expertise as 
        may contribute to effective governance of the Head Start 
        agency. All members of the board shall receive training in the 
        management responsibilities and obligations, ethics, and 
        financial literacy and management, and shall adopt practices 
        that assure active, independent and informed governance of the 
        Head Start agency, including independent oversight of the 
        financial and management practices of such agency. The board 
        shall operate as an entity independent of staff employed by the 
        Head start agency, entity, or applicant and have the following 
        duties and responsibilities:
                    ``(A) To provide independent oversight to ensure 
                that the Head Start agency is delivering high quality 
                services to children and families in compliance with 
                all applicable standards in effect under this 
                subchapter and with the applicable performance measures 
                established by the Secretary under section 644.
                    ``(B) To establish 2 or more standing committees to 
                facilitate governance of the Head Start agency which 
                shall include both of the following:
                            ``(i) A finance committee whose primary 
                        responsibility shall be--
                                    ``(I) to develop and recommend 
                                annually the operating budget of the 
                                Head Start agency;
                                    ``(II) to review and recommend to 
                                the board the selection or termination 
                                of independent auditors (or the 
                                extension of existing audit firm) at 
                                least once every 4 years;
                                    ``(III) to review and advise the 
                                board of the audit management letter 
                                provided pursuant to the chapter 75 of 
                                title 31 of the United States Code, and 
                                of any audit findings; and
                                    ``(IV) to monitor agency actions to 
                                correct any such audit findings or 
                                other actions necessary to comply with 
                                applicable laws (including regulations) 
                                governing financial statements and 
                                accounting practices.
                            ``(ii) A policy committee, a majority of 
                        whose representatives shall be parents of 
                        children participating in a Head Start program 
                        or in an Early Head Start program, or of 
                        children who participated in a Head Start 
                        program or in an Early Head Start program in 
                        the then most recent 5-year period preceding 
                        the selection of the particular representative 
                        involved, and whose primary responsibility 
                        shall be to serve as a link between parents and 
                        the Board of Directors and to make 
                        recommendations on--
                                    ``(I) the strategic direction of 
                                the program, including long and short-
                                term planning goals and objectives;
                                    ``(II) program operation policies, 
                                including standards of conduct for 
                                program staff and volunteers; and
                                    ``(III) activities to support the 
                                active involvement of parents in 
                                supporting program operations.
                    ``(C) To approve the selection and dismissal of the 
                Head Start director, and to review annually the human 
                resources available to ensure the effective operation 
                of the Head Start agency.
                    ``(D) To review and approve the major operational 
                policies of the Head Start agency, including policies 
                addressing accounting, financial management, 
                procurement, record confidentiality, and personnel 
                (including specific standards governing salaries, 
                salary adjustments, travel and per diem allowances, and 
                other employee benefits).
                    ``(E) To ensure that the Head Start agency is 
                operated in compliance with applicable Federal, State, 
                and local laws (including regulations), and to monitor 
                agency implementation of any corrective action 
                necessary to comply with applicable laws (including 
                regulations);
                    ``(F) To oversee the program planning of the Head 
                Start agency, including adoption of the Head Start 
                agency philosophy and mission statement, adoption of 
                policies for determining community needs, setting long- 
                and short-range goals and objectives, establishment of 
                criteria for selecting families in Head Start or Early 
                Head Start programs, and to oversee and approve the 
                agency's applications to receive funds made available 
                under this subchapter; and
                    ``(G) To establish, adopt, and periodically update 
                a written `Standards of Conduct' that establishes 
                standards and procedures for disclosing and addressing 
                conflicts of interest, and the appearance of conflicts 
                of interest, by board members, officers, employees, 
                consultants, and agents who provide services or furnish 
                goods to the Head Start agency.
            ``(5) Seek the involvement of parents, area residents, and 
        local business in the design and implementation of the program.
            ``(6) 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.
            ``(7) Establish effective procedures to facilitate 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 and overall 
        conduct of the program at the local level.
            ``(8) 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.
            ``(9) Offer (directly or through referral to local 
        entities, such as entities carrying out Even Start programs 
        under subpart 3 of 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.
            ``(10) 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.
            ``(11) At the option of such agency, offer (directly or 
        through referral to local entities), to such parents--
                    ``(A) training in basic child development 
                (including cognitive development);
                    ``(B) assistance in developing literacy and 
                communication skills;
                    ``(C) opportunities to share experiences with other 
                parents (including parent-mentor relationships);
                    ``(D) regular in-home visitation; or
                    ``(E) any other activity designed to help such 
                parents become full partners in the education of their 
                children.
            ``(12) 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 (5) through (8) in which 
        such parents may choose to be involved (taking into 
        consideration their specific family needs, work schedules, and 
        other responsibilities).
            ``(13) Consider providing services to assist younger 
        siblings of children participating in its Head Start program to 
        obtain health services from other sources.
            ``(14) Perform community outreach to encourage individuals 
        previously unaffiliated with Head Start programs to participate 
        in its Head Start program as volunteers.
            ``(15)(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.'';
    (b) Coordination and Collaboration.--Section 642(c) of the Head 
Start Act (42 U.S.C. 9837(c)) is amended 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 subpart 3 of 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.''.
    (c) Other Coordination.--Section 642(d) of the Head Start Act (42 
U.S.C. 9837(d)) is amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraph (5) through (7), respectively;
            (2) by inserting after paragraph (1) the following:
            ``(2) Coordination.--
                    ``(A) Local educational agency.--In communities 
                where both public prekindergarten programs and Head 
                Start programs operate, a Head Start agency shall 
                collaborate and coordinate activities with the local 
                educational agency or other public agency responsible 
                for the operation of the prekindergarten program and 
                providers of prekindergarten, including outreach 
                activities to identify eligible children.
                    ``(B) Elementary schools.--Head Start staff shall, 
                with the permission of the parents of children enrolled 
                in Head Start programs, regularly communicate with the 
                elementary schools such children will be attending--
                            ``(i) to share information about such 
                        children;
                            ``(ii) to get advice and support from the 
                        teachers in such elementary schools 
                        participating in programs funded under title I 
                        of subpart 1 of the Elementary and Secondary 
                        Education Act of 1965 regarding scientifically 
                        based teaching strategies and options; and
                            ``(iii) to ensure a smooth transition to 
                        elementary school for such children.
                    ``(C) Other programs.--The head of each Head Start 
                agency shall coordinate activities 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 entities carrying out early childhood 
                education and development programs, programs under 
                subtitle B of title VII of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11431 et seq.), Even Start 
                programs under subpart 3 of part B of title I of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6381 et seq.), and programs under section 619 
                and part C of the Individuals with Disabilities 
                Education Act (20 U.S.C 1419, 1431 et seq.), serving 
                the children and families served by the Head Start 
                agency.
            ``(3) Collaboration.--A Head Start agency shall take steps 
        to coordinate activities with the local educational agency 
        serving the community involved and with schools in which 
        children participating in a Head Start program operated by such 
        agency will enroll following such program, including--
                    ``(A) collaborating on the shared use of 
                transportation and facilities;
                    ``(B) collaborating to enhance the efficiency of 
                services while increasing the program participation of 
                underserved populations of eligible children; and
                    ``(C) exchanging information on the provision of 
                noneducational services to such children.
            ``(4) Parental involvement.--In order to promote the 
        continued involvement of the parents of children that 
        participate in Head Start programs in the education of their 
        children upon transition to school, the Head Start agency 
        shall--
                    ``(A) provide training to the parents--
                            ``(i) to inform the parents about their 
                        rights and responsibilities concerning the 
                        education of their children; and
                            ``(ii) to enable the parents--
                                    ``(I) to understand and work with 
                                schools in order to communicate with 
                                teachers and other school personnel;
                                    ``(II) to support the schoolwork of 
                                their children; and
                                    ``(III) to participate as 
                                appropriate in decisions relating to 
                                the education of their children; and
                    ``(B) take other actions, as appropriate and 
                feasible, to support the active involvement of the 
                parents with schools, school personnel, and school-
                related organizations.'';
            (3) in paragraph (5), as so redesignated--
                    (A) by striking ``A'' and inserting ``Each'';
                    (B) by striking ``may'' and inserting ``shall'';
                    (C) by striking ``and'' at the end of subparagraph 
                (A); and
                    (D) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (E) by inserting after subparagraph (A) the 
                following:
            ``(B) collaborating to increase the program participation 
        of underserved populations of eligible children; and''; and
            (4) by adding at the end the following:
    ``(6) Head Start agencies shall implement a research-based early 
childhood curricula that promotes young children's school readiness in 
the areas of language and cognitive development, early reading and 
premathematics skills, socio-emotional skills, physical development, 
and approaches to learning. Such curricula should be--
            ``(A) based on scientifically based research and have 
        standardized training procedures and published curriculum 
        materials to support implementation; and
            ``(B) comprehensive, balance child and teacher-initiated 
        activities, be outcomes based, and be linked to ongoing 
        assessment with concrete instructional goals and objectives.
    ``(7) Head Start agencies shall use ongoing, research-based 
assessment methods that are developmentally appropriate, culturally and 
linguistically responsive, and tied to children's daily activities in 
order to support the educational instruction of children in the 
program, including language skills, prereading knowledge and 
premathematics knowledge. Assessment instruments shall be those 
designed and validated for making decisions about teaching and learning 
and aligned with the program's curricula and Section 641A(a)(1).
    ``(8) For the purpose of meeting the performance standards, Head 
Start agencies shall use high-quality research-based developmental 
screening tools that have been demonstrated to be standardized, 
reliable, valid, and accurate for children from a range of racial, 
ethnic, linguistic, and cultural backgrounds.''.
    (d) Assessment.--Section 642 of the Head Start Act (42 U.S.C. 9837) 
is amended by striking subsection (e) and inserting the following:
    ``(e) Assessment.--Each Head Start agency shall adopt, in 
consultation with experts in child development and with classroom 
teachers, an assessment to be used when hiring or evaluating any 
classroom teacher in a center-based Head Start program. Such assessment 
shall measure whether such teacher has mastered the functions described 
in section 648A(a)(1) and attained a level of literacy appropriate to 
implement Head Start curricula.
    ``(f) Funded Enrollment; Waiting List.--Each Head Start agency 
shall enroll 100 percent of its funded enrollment and maintain an 
active waiting list at all times with ongoing outreach to the community 
and activities to identify underserved populations.''.

SEC. 10. LOCAL AND STATE INTEGRATION OF EARLY CHILDHOOD EDUCATION.

    The Head Start Act (42 U.S.C. 9831 et. seq.) is amended by 
inserting after section 642A the following:

``SEC. 642B. LOCAL AND STATE INTEGRATION OF EARLY CHILDHOOD EDUCATION.

    ``(a) Local Integration.--In general, Head Start agencies shall 
enter into ongoing partnerships with local educational agencies, State-
funded preschool and other early childhood programs. Head Start 
agencies shall operate in a manner consistent with the goal of creating 
and expanding an efficient and effective system of early childhood and 
school readiness services in each State and community, while 
maintaining compliance with Standards under section 641A(a).
            ``(1) Memoranda of understanding.--Each Head Start agency 
        shall enter into a memorandum of understanding with any local 
        educational agencies or local councils, responsible for 
        managing publicly funded prekindergarten programs in the 
        service area of the Head Start agency (or if such agencies and 
        such councils are not applicable in the service area, with the 
        largest provider of publicly funded prekindergarten in the 
        service area), that shall include plans to coordinate the 
        following activities:
                    ``(A) Educational activities, curricula, and 
                instruction aligned to State developed K-12 academic 
                standards, as defined by section 1111(b)(1) of the 
                Elementary and Secondary Education Act of 1965.
                    ``(B) Public information dissemination and access 
                to programs for families contacting any of the early 
                childhood programs.
                    ``(C) Selection priorities for eligible children to 
                be served by programs.
                    ``(D) Service delivery areas.
                    ``(E) Staff training, including opportunities for 
                joint staff training on topics such as academic content 
                standards and instructional methods.
                    ``(F) Program technical assistance.
                    ``(G) Provision of additional services to meet the 
                child care needs of working parents.
                    ``(H) Planning and parent education for smooth 
                transitions to kindergarten as required in section 
                642A(3) and 642A(6).
                    ``(I) Provision and use of facilities, 
                transportation, and other program elements, and
                    ``(J) Other elements mutually agreed to by the 
                parties to such memorandum.
            ``(2) Timing of memoranda--Each Head Start agency shall 
        enter into a memorandum of understanding under paragraph (1) 
        not later than 1 year after the effective date of this section.
            ``(3) Secretarial review.--Each memorandum of understanding 
        entered into under paragraph (1) shall be submitted to the 
        Secretary not later than 30 days after entering into such 
        memorandum.
                    ``(A) If a Head Start agency is unable to comply 
                with the -requirement in (1) the Head Start agency 
                shall notify the Secretary and the chief executive 
                officer of the State not later than 30 days after 
                determining that they are unable to enter into such 
                memorandum. The Secretary, in cooperation with the 
                State Early Learning Council and the State Director of 
                Head Start Collaboration, shall evaluate the causes of 
                failure to enter into a memorandum of understanding 
                under paragraph (1). With the assistance of the State 
                Early Learning Council and the State Director of Head 
                Start Collaboration, all parties shall again attempt to 
                enter into a memorandum of understanding under 
                paragraph (1). Then if no such memorandum of 
                understanding is entered into, the Secretary shall make 
                1 of the following determinations:
                            ``(i) The local educational agency, local 
                        council, or other -appropriate entity is unable 
                        or unwilling to enter into such a memorandum 
                        despite reasonable efforts on the part of the 
                        Head Start agency.
                            ``(ii) The Head Start agency has not 
                        engaged in reasonable efforts to successfully 
                        negotiate and enter into a memorandum of -
                        understanding pursuant to paragraph (1).
                            ``(iii) There is an absence of publicly 
                        funded prekindergarten in the service area of 
                        the Head Start agency.
                    ``(B) If the Secretary determines the Head Start 
                agency is not --making reasonable efforts to enter into 
                a memorandum of ---understanding pursuant to paragraph 
                (1), the Head Start agency shall be found deficient and 
                shall be considered by the Secretary in the same manner 
                as other deficiency findings.
                    ``(C) If the Secretary concludes that the local ---
                educational agency, local council, or other appropriate 
                entity is --not making reasonable efforts to reach such 
                a memorandum of --understanding, the Head Start agency 
                shall not be found out of compliance with paragraph 
                (1).
            ``(4) Revision of memoranda--Each memorandum of 
        understanding shall be revised and renewed annually by the 
        parties to such memorandum, in alignment with the beginning of 
        the school year.
            ``(5) Absence of prekindergarten.--In the absence of 
        publicly funded prekindergarten in the service area of a Head 
        Start agency, the Head Start agency shall submit notice to the 
        Secretary and the chief executive officer of the State and 
        shall work with the State Early Learning Council and the State 
        Director of Head Start Collaboration to improve coordination in 
        their service area.
    ``(b) Statewide Integration.--From the amounts reserved and 
allotted in section 640(a)(4) and the amounts reserved in section 
640(a)(2)(C)(ii), the Secretary shall award an early learning 
collaboration grant to each State for the purposes of supporting a 
State Early Learning Council responsible for advancing the development 
of a coordinated early childhood services delivery system in the State. 
A State that receives a grant under this subparagraph shall--
            ``(1) establish a State Early Learning Council, which shall 
        include the State Director of Head Start Collaboration, 
        representatives from the State preschool programs, 
        representatives of local educational agencies, representatives 
        of State child care programs, representatives of State 
        preschool special education programs, and representatives from 
        Head Start agencies located in the State. The chief executive 
        officer of the State may designate an existing entity to serve 
        as the Early Learning Council if such entity includes 
        representatives described in this paragraph;
            ``(2) ensure that allotted funds distributed to a State for 
        a fiscal year to carry out this subsection may be used by the 
        State to pay not more than 30 percent of the cost of carrying 
        out this subsection;
            ``(3) direct the Early Learning Council--
                    ``(A) to increase coordination and collaboration 
                among State preschool, Head Start programs, child care 
                programs, early childhood special education, and other 
                early childhood programs, including in the areas of 
                outcomes and standards, technical assistance, 
                coordination of services, cross-sector professional 
                development and training, outreach, communication, and 
                better serving the needs of working families through 
                provision of full-day and full-year early education 
                services;
                    ``(B) to work with State agencies responsible for 
                education, child care, and early intervention to 
                provide leadership and assistance to local Head Start 
                programs, school districts, and State and locally 
                funded preschool and child care programs to increase 
                integration among early childhood programs through 
                adoption of local memoranda of understanding described 
                in subparagraph (A) and other means;
                    ``(C) to conduct periodic statewide needs 
                assessments concerning early care and education 
                programs for children from birth to school entry;
                    ``(D) to work to identify and address barriers to 
                and opportunities for integration between entities 
                carrying out Federal and State child development, child 
                care, and early childhood education programs;
                    ``(E) to develop recommendations regarding means of 
                establishing a unified data collection system for early 
                care and education programs operating throughout the 
                State;
                    ``(F) to address coordination of early learning 
                programs with health care, welfare, family literacy and 
                services for homeless children; and
                    ``(G) to support a State system of early childhood 
                education, and training and technical assistance that 
                improves the quality of early learning programs and the 
                capacity of such programs to deliver services pursuant 
                to section 648(b).
            ``(4) Nothing in this subsection shall be construed to 
        provide the Early Learning Council with authority to alter the 
        provisions of this Act.
            ``(5) Funds made available under this section shall be used 
        to supplement, and not supplant, other Federal, State, and 
        local funds that would otherwise be expended to carry out the 
        purposes of this section.
    ``(c) State Director of Head Start Collaboration.--The chief 
executive officer of the State shall appoint an individual to serve as 
the State Director of Head Start Collaboration and shall ensure that 
the Director holds a position with sufficient authority and access to 
be capable of facilitating the coordination of programs designed to 
benefit low-income children and their families. Such position shall be 
located within the State Early Learning Council and shall require the 
Director--
            ``(1) to collaborate with entities involved in State and 
        local planning processes to better meet the needs of low income 
        families and children from birth to school entry;
            ``(2) to assist Head Start agencies in coordinating 
        activities with the State agency responsible for administering 
        the State program carried out under the Child Care and 
        Development Block Grant Act of 1990 and entities that provide 
        child care resource and referral services in the State to make 
        full-day and full calendar year services available to children;
            ``(3) to align Head Start and State prekindergarten 
        activities to meet shared goals of school readiness; and
            ``(4) to establish improved linkages between Head Start 
        agencies and other children and family agencies, including 
        agencies that provide health, mental health or family services 
        or other child and family support services.''.

SEC. 11. HEAD START ALIGNMENT WITH K-12 EDUCATION.

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

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

            (2) in paragraph (2)--
                    (A) by inserting ``ongoing'' after 
                ``establishing''; and
                    (B) after ``social workers,'' by inserting the 
                following: ``McKinney-Vento liaisons as established 
                under section 722 (g)(1)(J)(ii) of the McKinney-Vento 
                Homeless Assistance Act,'';
            (3) by redesignating paragraphs (3) through (7) as 
        paragraphs (5) through (9), respectively;
            (4) by inserting the following after paragraph (2):
            ``(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) organizing and participating in joint training, 
        including transition-related training for school staff and Head 
        Start staff;'';
            (5) by amending paragraph (7), as so redesignated, to read 
        as follows:
            ``(7) 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;'';
            (6) in paragraph (8), as so redesignated--
                    (A) by inserting ``and continuity in parental 
                involvement activities'' after ``developmental 
                continuity''; and
                    (B) by striking ``and'' at the end of paragraph 
                (8), as so redesignated;
            (7) by amending paragraph (9), as so redesignated, to read 
        as follows:
            ``(9) linking the services provided in such Head Start 
        program with the education services, including services 
        relating to language, literacy, and numeracy, provided by such 
        local educational agency;''; and
            (8) by adding at the end the following:
            ``(10) 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;
            ``(11) developing and implementing a system to increase 
        program participation of underserved populations of eligible 
        children; and
            ``(12) coordinating activities and collaborating to ensure 
        that curricula used in the Head Start program is aligned with 
        State early learning standards with regard to cognitive, 
        social, emotional, and physical competencies that children 
        entering kindergarten are expected to demonstrate.''.

SEC. 12. ADMINISTRATIVE REQUIREMENTS AND STANDARDS.

    Section 644 of the Head Start Act (42 U.S.C. 9839(f)(2)) is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1) Standards.--'' after 
                ``(a)''; and
                    (B) by inserting after the 3d sentence the 
                following:
    ``(2) Annual report.--Each Head Start agency shall make available 
to the public a report published at least once in each fiscal year that 
discloses the following information from the then most recently 
concluded fiscal year:
            ``(A) The total amount of public and private funds received 
        and the amount from each source.
            ``(B) An explanation of budgetary expenditures and proposed 
        budget for following fiscal year.
            ``(C) The Total number of children and families served and 
        percent of average monthly enrollment, including the percent of 
        eligible children served.
            ``(D) The results of the most recent review by the 
        Secretary and the financial audit.
            ``(E) The percentage of enrolled children that received 
        medical and dental exams.
            ``(F) Information about parent involvement activities.
            ``(G) The performance of the agency in preparing children 
        for kindergarten.
            ``(H) Any other information that describes the activities 
        of the agency.
    ``(3) Procedural conduct.--''; and
            (2) in subsection (f)(2)
                    (A) by redesignating subparagraphs (A) through (E) 
                as subparagraphs (B) through (F), respectively; and
                    (B) by inserting before subparagraph (B), as so 
                redesignated, the following:
            ``(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 subchapter, 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. 13. ELIGIBILITY.

    Section 645(a) of the Head Start Act (42 U.S.C. 9840) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)(i)--
                            (i) by striking ``to a reasonable extent'' 
                        and inserting ``not to exceed 10 percent of the 
                        total enrollment''; and
                            (ii) by striking ``benefit from such 
                        programs'' and inserting ``benefit from such 
                        programs, including children referred by child 
                        welfare services,''; and
                    (B) by adding at the end the following:
``A homeless child shall be deemed to meet the low-income criteria.''; 
and
            (2) by adding at the end the following:
    ``(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. 14. EARLY HEAD START PROGRAMS.

    (a) In General.--Section 645A(b) of the Head Start Act (42 U.S.C. 
9640a(b)) is amended--
            (1) by amending paragraphs (4) and (5) 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) 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);''.
            (3) by redesignating paragraph (9) as paragraph (11); and
            (4) by inserting after paragraph (8) the following:
            ``(9) develop and implement a systematic procedure for 
        transitioning children and parents from an Early Head Start 
        program into a Head Start program or another local early 
        childhood education program;
            ``(10) establish channels of communication between staff of 
        Early Head Start programs and staff of Head Start programs or 
        other local early childhood education programs, to facilitate 
        the coordination of programs; and''.
    (b) Migrant and Seasonal Programs; Community- and Faith-Based 
Organizations.--Section 645A(d) of the Head Start Act (42 U.S.C. 
9640a(d)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) entities operating Head Start programs under this 
        subpart, including migrant and seasonal Head Start programs; 
        and''; and
            (2) in paragraph (2) of the Head Start Act (42 US.C. 
        9643(d)(2)) is amended by inserting ``, including community- 
        and faith-based organizations'' after ``entities'' the 2d place 
        it appears.
    (c) Training and Technical Assistance Account.--Section 
645A(g)(2)(B) of the Head Start Act (42 U.S.C. 9640a(g)(2)(B)) is 
amended--
            (1) in clause (iii) by striking ``and'' at the end;
            (2) in clause (iv) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(v) providing professional development 
                        designed to increase program participation for 
                        underserved populations of eligible 
                        children.''.
    (d) Center-Based Staff.--Section 645A of the Head Start Act (42 
U.S.C. 9640a) is amended by adding at the end the following:
    ``(h) Center-Based Staff.--The Secretary shall ensure that, not 
later than September 30, 2008, all teachers providing direct services 
to Early Head Start children and families in Early Head Start centers 
have a minimum of a child development associate credential or an 
associate degree, and have been trained (or have equivalent course 
work) in early childhood development.''.

SEC. 15. PARENTAL CONSENT REQUIREMENT FOR NONEMERGENCY INTRUSIVE 
              PHYSICAL EXAMINATIONS.

    The Head Start Act (42 U.S.C. 9831 et seq.) is amended by inserting 
after section 645A the following:

``SEC. 645B. PARENTAL CONSENT REQUIREMENT FOR NONEMERGENCY INTRUSIVE 
              PHYSICAL EXAMINATIONS.

    ``(a) Definition.--The term `nonemergency intrusive physical 
examination' means, with respect to a child, a physical examination 
that--
            ``(1) is not immediately necessary to protect the health or 
        safety of such child, or the health or safety of another 
        individual; and
            ``(2) includes incision or is otherwise invasive, or 
        includes exposure of private body parts.
    ``(b) Requirement.--Before administering any health care service 
(including any nonemergency intrusive physical examination) to a child 
(or referring such child to obtain such service) in connection with 
participation in a program under this subchapter, a Head Start agency 
and an entity that receives assistance under section 645A shall obtain 
the written consent of a parent of such child.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to prohibit a Head Start agency or an entity that receives 
assistance under section 645A from using established methods, for 
handling cases of suspected or known child abuse and neglect, that are 
in compliance with applicable Federal, State, or tribal law.''.

SEC. 16. RIGHT TO APPEAL.

    Section 646(a)(3) of the Head Start Act (42 U.S.C. 9841(a)(3)) is 
amended to read as follows:
    ``(3) if financial assistance under this subchapter is terminated 
or reduced, an application for a noncompeting continuation award is 
denied based on a previous failure to comply with terms applicable to 
financial assistance previously provided this subchapter, or suspension 
of financial assistance is continued for more than 30 days, the 
recipient with respect to whom such action is taken shall have the 
opportunity to appeal such action in accordance with such procedures, 
except that no funds made available under this subchapter may be used 
to reimburse any such recipient for legal fees and other costs incurred 
in pursuing such an appeal;''.

SEC. 17. AUDITS.

    Section 647 of the Head Start Act (42 U.S.C. 9842) is amended by 
adding at the end the following:
    ``(c)(1) Not later that 60 days after the end of each fiscal year, 
each Head Start agency, and each entity that receives assistance under 
section 645A, shall submit to the Secretary an independent financial 
audit of the Head Start program carried out with financial assistance 
provided under this subchapter. Such audit shall be carried out by a 
certified public accountant selected through a competitive process from 
among qualified certified accountants by the local oversight board 
established in accordance with section 641(a) by such agency, except 
that no accountant may perform audits of such program for a period 
exceeding 2 consecutive fiscal years.
    ``(2) Not later than 60 days after receiving such audit, the 
Secretary shall provide to such agency or such entity, and to the chief 
executive officer of the State in which such program is operated, a 
notice identifying the actions such agency or such entity is required 
to take to correct all deficiencies identified in such audit.
    ``(d) Each recipient of financial assistance under this subchapter 
shall--
            ``(1) maintain, and annually submit to the Secretary, a 
        complete accounting of its administrative expenses (including a 
        detailed statement identifying the amount of financial 
        assistance provided under this subchapter used to pay expenses 
        for salaries and compensation and the amount (if any) of other 
        funds used to pay such expenses); and
            ``(2) provide such additional documentation as the 
        Secretary may require.''.

SEC. 18. TECHNICAL ASSISTANCE AND TRAINING.

    (a) State-Based System.--Section 648 of the Head Start Act (42 
U.S.C. 9843) is amended--
            (1) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively; and
            (2) by inserting after subsection (a) the following:
    ``(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.''.
    (b) Allocation of Resources.--Section 648(d) of the Head Start Act 
(42 U.S.C. 9843(d)), as so redesignated, is amended--
            (1) in paragraph (2) by inserting ``and for activities 
        described in section 1221(b)(3) of the Elementary and Secondary 
        Education Act of 1965'' after ``disabilities'' ; and
            (2) in paragraph (5) by inserting ``, including the needs 
        of homeless children and their families'' after ``assessment'';
            (3) in paragraph (10) by striking ``and'' at the end;
            (4) in paragraph (11) by striking the period at the end and 
        inserting ``; and''; and
            (5) by adding the following at the end:
            ``(12) assist Head Start agencies and programs in 
        increasing program participation of homeless children.''.
    (c) Training in Use of Media.--Section 648(e) of the Head Start Act 
(42 U.S.C. 9843(e)), as so redesignated, is amended by inserting ``, 
including community- and faith-based organizations'' after 
``entities''.
    (d) Child Development and National Assessment Program.--Section 
648(f) of the Head Start Act (42 U.S.C. 9843(f)), as so redesignated, 
is amended 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.''.
    (e) Addressing Unique Needs.--Section 648 of the Head Start Act (42 
U.S.C. 9843) is amended by adding at the end the following:
    ``(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.--More than 50 percent 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)(1) The Secretary shall work in collaboration with the Head 
Start agencies that carry out migrant and seasonal Head Start programs, 
State Collaboration Directors, the Migrant and Seasonal Farmworker 
Collaboration Project Director, and other appropriate entities--
            ``(A) to accurately determine the number of children 
        nationwide who are eligible to participate in migrant and 
        seasonal Head Start programs each year; and
            ``(B) to document how many of these children are receiving 
        Head Start services each year; and
            ``(C) to the extent practicable, to ensure that access to 
        migrant and seasonal Head Start programs for eligible children 
        is comparable to access to other Head Start programs for other 
        eligible children;
    ``(2) In carrying out paragraph (1)(A), the Secretary shall consult 
with the Secretary of Education about the Department of Education's 
systems for collecting and reporting data about, and maintaining 
records on, students from migrant and seasonal farmworker families.
    ``(3) Not later than 1 year after the effective date of this 
subsection, the Secretary shall submit a report to the Congress 
detailing how the Department of Health and Human Services plans to 
carry out paragraph (1).''.
    ``(k) 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. 19. STAFF QUALIFICATIONS AND DEVELOPMENT.

    (a) Classroom Teachers.--Section 648A(a)(2) of the Head Start Act 
(42 U.S.C. 9843a(a)(2)) is amended to read as follows:
            ``(2) Degree requirements.--
                    ``(A) In general.--The Secretary shall ensure that 
                not later than September 30, 2010, 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 effective date of this 
                subparagraph, the Secretary shall require that all Head 
                Start teachers nationwide in center-based programs 
                hired following the effective date 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 subchapter 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.
                    ``(E) Limitation.--The Secretary shall require that 
                any Federal funds provided directly or indirectly to 
                comply with subparagraph (A) shall be used toward 
                degrees awarded by an institution of higher education, 
                as defined by sections 101 or 102 of the Higher 
                Education Act (20 U.S.C. 1001-1002).''.
    (b) Classroom Teachers.--Section 648A of the Head Start Act (42 
U.S.C. 9843a) is amended by adding at the end the following:
    ``(f) Professional Development Plans.--Each 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. 20. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

    (a) New Ideas and Approaches.--Section 649(a)(1)(B) of the Head 
Start Act (42 U.S.C. 9844(a)(1)(B)) is amended to read as follows:
                    ``(B) use the Head Start programs to develop, test, 
                and disseminate new ideas and approaches based on 
                existing scientifically based research, 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.''.
    (b) Study.--Section 649(d) of the Head Start Act (42 U.S.C. 9844(d) 
is amended--
            (1) in paragraph (7) by adding ``and'' at the end;
            (2) in paragraph (8) by striking the semicolon and 
        inserting a period;
            (3) by striking paragraph (9); and
            (4) by striking the last sentence.
    (c) Expert Panel.--Section 649(g) of the Head Start Act (42 U.S.C. 
9844(g)) is amended--
            (1) in paragraph (1)--
                    (A) by striking clause (i); and
                    (B) by redesignating clauses (ii) and (iii) as 
                clauses (i) and (ii), respectively; and
            (2) in paragraph (7)(C)(i) is amended to read as follows:
                            ``(i) Not later than September 30, 2007, 
                        the Secretary shall transmit to the committees 
                        specified in clause (ii) the final report.''.
    (d) NAS Study.--Section 649(h) of the Head Start Act (42 U.S.C. 
9844(h)) is amended 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 which shall 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 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 
                (including systematic observation assessment in a 
                child's natural environment, and parent and provider 
                interviews) for purposes of improving instruction, 
                services, and program quality , and accommodations for 
                children with disabilities and appropriate assessments 
                for children with special needs (including needs 
                related to the acquisition of the English language).
            ``(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 the date of the enactment of the 
        School Readiness Act of 2005. The panel shall complete its 
        recommendations within 18 months of its convening.
            ``(4) Application of panel report recommendations.--The 
        recommendations of the panel 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. 21. REPORTS.

    Section 650(a) of the Head Start Act (42 U.S.C. 9845) is amended--
            (1) by amending the first sentence 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.''; and
            (2) in paragraph (8) by inserting ``, homelessness'' after 
        ``background''.

SEC. 22. LIMITATION ON RATE OF FEDERAL FUNDING FOR COMPENSATION.

    Section 653 of the Head Start Act (42 U.S.C. 9848) is amended--
            (1) by striking the heading;
            (2) by striking ``Sec. 653. The'' and inserting the 
        following:

``SEC. 653. WAGES AND COMPENSATION.

    ``(a) Comparability of Wages.--The''; and
            (3) by adding at the end the following:
    ``(b) Federal Rate Limitation.--Notwithstanding any other provision 
of law, no Federal funds shall be used to pay all or any part of the 
compensation of an individual employed by a Head Start agency in 
carrying out programs under this subchapter, either as direct or 
indirect costs or any proration thereof, at a rate in excess of the 
rate then payable for level II of the Executive Schedule under section 
5316 of title 5, United State Code.''.

SEC. 23. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) General Effective Date.--Except as provided in subsection (b), 
this Act and the amendments made by this Act shall take effect on the 
date of the enactment of this Act.
    (b) Application of Amendments.--The amendments made by this Act 
shall not apply with respect to any fiscal year that begins before the 
date of the enactment of this Act.
                                 <all>