[Congressional Record (Bound Edition), Volume 151 (2005), Part 8]
[Senate]
[Pages 10865-10890]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. CORZINE (for himself and Mr. Lautenberg):
  S. 1096. A bill to amend the Wild and Scenic Rivers Act to designate 
portions of the Musconetcong River in the State of New Jersey as a 
component of the National Wild and Scenic Rivers System, and for other 
purposes; to the Committee on Energy and Natural Resources.
  Mr. CORZINE. Mr. President, today, along with Senator Lautenberg, I 
am introducing legislation, the Musconetcong Wild and Scenic Rivers 
Act, to designate portions of the Musconetcong River in New Jersey as a 
component of the National Wild and Scenic Rivers System. I am proud to 
be joining my New Jersey colleague, Representative Scott Garrett, who 
has introduced this legislation in the House of Representatives, with 
the support of Congressmen Robert Andrews, Michael Ferguson, Rodney 
Frelinghuysen, Robert Menendez, Frank Pallone, Donald Payne and James 
Saxton.
  This is important legislation to help preserve and protect one of the 
most valuable natural resources in the State of New Jersey. The 
Musconetcong River is a 43 mile river that runs westward from Lake 
Musconetcong to the Delaware River. It provides many ecological, 
recreational and scenic benefits to the northwestern portion of our 
State. In addition, it is also home to a number of archeological sites 
and other historic areas, including one site in Warren County where 
scientists have discovered stone knives and other weapons dating back 
at least ten thousand years. Finally, it feeds acquifers that provide 
many residents in Hunterdon and Warren counties with quality drinking 
water.
  Unfortunately, the beauty and value that the Musconetcong provides is 
at risk. The river faces pressures, for example, from the development 
that is occurring on or near its shores. This has caused water quality 
to deteriorate from increased levels of bacteria, silt and runoff from 
roadways. Further, many of the municipalities that lie along the river 
lack the financial resources to adequately protect the river for future 
generations.
  The Musconetcong Wild and Scenic Rivers Act would help state, county 
and local officials begin to address these concerns, working alongside 
environmental and public interest groups. By including this river in 
the Wild and Scenic River System, it would allow New Jersey to 
implement a management plan for the river that has the support of three 
counties and 13 municipalities. In addition it would make the river 
eligible for financial, planning, and technical assistance to help 
preserve and protect it. The goal is to encourage uses and development 
that is compatible with the river.
  The Wild and Scenic River System already includes the Maurice and 
Great Egg Harbor Rivers in New Jersey as well as the lower and middle 
portions of the Delaware River
  I will work hard in the 109th Congress to see that the Musconetcong 
is added to this list. I hope my colleagues will support this 
legislation, and I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1096

       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 ``Musconetcong Wild and Scenic 
     Rivers Act''.

[[Page 10866]]



     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Secretary of the Interior, in cooperation and 
     consultation with appropriate Federal, State, regional, and 
     local agencies, is conducting a study of the eligibility and 
     suitability of the Musconetcong River in the State of New 
     Jersey for inclusion in the Wild and Scenic Rivers System;
       (2) the Musconetcong Wild and Scenic River Study Task 
     Force, with assistance from the National Park Service, has 
     prepared a river management plan for the study area entitled 
     ``Musconetcong River Management Plan'' and dated April 2002 
     that establishes goals and actions to ensure long-term 
     protection of the outstanding values of the river and 
     compatible management of land and water resources associated 
     with the Musconetcong River; and
       (3) 13 municipalities and 3 counties along segments of the 
     Musconetcong River that are eligible for designation have 
     passed resolutions in which the municipalities and counties--
       (A) express support for the Musconetcong River Management 
     Plan;
       (B) agree to take action to implement the goals of the 
     management plan; and
       (C) endorse designation of the Musconetcong River as a 
     component of the Wild and Scenic Rivers System.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Additional river segment.--The term ``additional river 
     segment'' means the approximately 4.3-mile Musconetcong River 
     segment designated as ``C'' in the management plan, from 
     Hughesville Mill to the Delaware River Confluence.
       (2) Management plan.--The term ``management plan'' means 
     the river management plan prepared by the Musconetcong River 
     Management Committee, the National Park Service, the Heritage 
     Conservancy, and the Musconetcong Watershed Association 
     entitled ``Musconetcong River Management Plan'' and dated 
     April 2002 that establishes goals and actions to--
       (A) ensure long-term protection of the outstanding values 
     of the river segments; and
       (B) compatible management of land and water resources 
     associated with the river segments.
       (3) River segment.--The term ``river segment'' means any 
     segment of the Musconetcong River, New Jersey, designated as 
     a scenic river or recreational river by section 3(a)(167) of 
     the Wild and Scenic Rivers Act (as added by section 4).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 4. DESIGNATION OF PORTIONS OF MUSCONETCONG RIVER, NEW 
                   JERSEY, AS SCENIC AND RECREATIONAL RIVERS.

       Section 3(a) of the Wild and Scenic Rivers Act (16 U.S.C. 
     1274(a)) is amended by adding at the end the following:
       ``(167) Musconetcong river, new jersey.--
       ``(A) Designation.--The 24.2 miles of river segments in New 
     Jersey, consisting of--
       ``(i) the approximately 3.5-mile segment from Saxton Falls 
     to the Route 46 bridge, to be administered by the Secretary 
     of the Interior as a scenic river; and
       ``(ii) the approximately 20.7-mile segment from the Kings 
     Highway bridge to the railroad tunnels at Musconetcong Gorge, 
     to be administered by the Secretary of the Interior as a 
     recreational river.
       ``(B) Administration.--Notwithstanding section 10(c), the 
     river segments designated under subparagraph (A) shall not be 
     administered as part of the National Park System.''.

     SEC. 5. MANAGEMENT.

       (a) Management Plan.--
       (1) In general.--The Secretary shall manage the river 
     segments in accordance with the management plan.
       (2) Satisfaction of requirements for plan.--The management 
     plan shall be considered to satisfy the requirements for a 
     comprehensive management plan for the river segments under 
     section 3(d) of the Wild and Scenic Rivers Act (16 U.S.C. 
     1274(d)).
       (3) Restrictions on water resource projects.--For purposes 
     of determining whether a proposed water resources project 
     would have a direct and adverse effect on the values for 
     which a river segment is designated as part of the Wild and 
     Scenic Rivers System under section 7(a) of the Wild and 
     Scenic Rivers Act (16 U.S.C. 1278(a)), the Secretary shall 
     consider the extent to which the proposed water resources 
     project is consistent with the management plan.
       (4) Implementation.--The Secretary may provide technical 
     assistance, staff support, and funding to assist in the 
     implementation of the management plan.
       (b) Cooperation.--
       (1) In general.--The Secretary shall manage the river 
     segments in cooperation with appropriate Federal, State, 
     regional, and local agencies, including--
       (A) the Musconetcong River Management Committee;
       (B) the Musconetcong Watershed Association;
       (C) the Heritage Conservancy;
       (D) the National Park Service; and
       (E) the New Jersey Department of Environmental Protection.
       (2) Cooperative agreements.--Any cooperative agreement 
     entered into under section 10(e) of the Wild and Scenic 
     Rivers Act (16 U.S.C. 1281(e)) relating to a river segment--
       (A) shall be consistent with the management plan; and
       (B) may include provisions for financial or other 
     assistance from the United States to facilitate the long-term 
     protection, conservation, and enhancement of the river 
     segment.
       (c) Land Management.--
       (1) In general.--The Secretary may provide planning, 
     financial, and technical assistance to local municipalities 
     and nonprofit organizations to assist in the implementation 
     of actions to protect the natural and historic resources of 
     the river segments.
       (2) Plan requirements.--After adoption of recommendations 
     made in section IV of the management plan, the zoning 
     ordinances of the municipalities bordering the segments shall 
     be considered to satisfy the standards and requirements under 
     section 6(c) of the Wild and Scenic Rivers Act (16 U.S.C. 
     1277(c)).
       (d) Designation of Additional River Segment.--
       (1) Finding.--Congress finds that the additional river 
     segment is suitable for designation as a recreational river 
     if the Secretary determines that there is adequate local 
     support for the designation of the additional river segment 
     in accordance with paragraph (3).
       (2) Designation and administration.--If the Secretary 
     determines that there is adequate local support for 
     designating the additional river segment as a recreational 
     river--
       (A) the Secretary shall publish in the Federal Register 
     notice of the designation of the segment;
       (B) the segment shall be designated as a recreational river 
     in accordance with the Wild and Scenic Rivers Act (16 U.S.C. 
     1271 et seq.); and
       (C) the Secretary shall administer the additional river 
     segment as a recreational river.
       (3) Criteria for local support.--In determining whether 
     there is adequate local support for the designation of the 
     additional river segment, the Secretary shall consider the 
     preferences of local governments expressed in resolutions 
     concerning designation of the additional river segment.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this Act and the amendments made by this Act.
                                 ______
                                 
      By Mr. DODD (for himself and Mr. Lieberman):
  S. 1097. A bill to amend title 4 of the United States Code to 
prohibit the double taxation of telecommuters and others who work from 
home; to the Committee on Finance.
  Mr. DODD. Mr. President. I am pleased to rise today, together with my 
colleague Senator Lieberman, to introduce The Telecommuter Tax Fairness 
Act of 2005.
  The Telecommuter Tax Fairness Act of 2005 will put an end to legal 
doctrine that unfairly penalizes thousands of workers in Connecticut 
and in other States throughout the country whose only offense is that 
they sometimes work from home or from a local office of their employer.
  Technology has changed the way business is conducted in America. With 
the use of cell phones, lap-top computers, email, the Internet, mobile 
networking, and many other telecommunication advancements of the 21st 
century, Americans have a greater flexibility in where they can work, 
without compromising productivity. Many citizens now choose to work 
from home or alternative offices when their physical presence is not 
necessary at their primary place of work.
  Telecommuting provides enormous benefits for businesses, families, 
and communities. It helps businesses lower costs and raise worker 
productivity. It reduces congestion on our roads and rails, and in so 
doing it lowers pollution. It helps workers better manage the demands 
of work and family. And last but not least, it can mean lower income 
taxes for working men and women.
  Yet, the many benefits to workers of telecommuting are today placed 
in jeopardy because of current law in New York and a few other States. 
Today, New York State requires that workers pay income tax on income 
even if it is not earned in the State through their ``convenience of 
the employer'' rule. While there are several States that have the 
``convenience of the employer'' rule, no other State applies it with 
the same rigor as New York.
  New York's ``convenience of the employer'' rule requires that by 
working for a New York employer, all income earned from that employer 
must be declared in New York so long as the worker ``could'' perform 
his or her duties in New York. A worker for a New

[[Page 10867]]

York employer who works part-time from home in Connecticut or another 
State is still subject to taxation by New York on 100 percent of his or 
her income. At the same time, the work done by that worker in a State 
outside New York is subject to taxation by that State.
  This unfairly subjects many workers who telecommute from their homes 
or from satellite offices outside of New York to a double tax on that 
part of the income earned from home. According to Connecticut's 
Attorney General, thousands of Connecticut residents alone are affected 
by this unfair double taxation.
  However, it isn't only Connecticut residents that are affected.
  Thomas Huckaby is a Tennessee-based computer programmer that 
telecommuted for a firm in Queens, NY. In 1994 and 1995, Mr. Huckaby 
spent 75 percent of his time working in Tennessee and the remaining 25 
percent working in the Queens office and attempted to apportion his 
income accordingly. New York, however, sought to tax 100 percent of his 
income and was successful due to it's ``convenience of employer'' rule. 
On March 29, 2005 the New York Court of Appeals upheld New York's rule 
in a 4 to 3 decision. Currently, Mr. Huckaby is in the process of 
petitioning the Supreme Court.
  A similar story involves Arthur Gray, a New Hampshire resident who 
worked for the New York Company Cowen & Co. as an investment counselor 
from 1976 through 1996, and paid New York State income taxes during 
that time. In 1997, Arthur Gray, per his employer's request, opened and 
managed an office from his home in New Hampshire. Several times during 
the year, Mr. Gray worked in New York, but most of his days were spent 
in New Hampshire. When paying his taxes during this time, he paid New 
York State income taxes for the days he was in New York, but not for 
the days he worked in New Hampshire. New York, however, sought to tax 
100 percent of his income and was successful due to this ``convenience 
of the employer'' rule.
  These are only two examples of the far-reaching consequences of this 
``convenience of employer'' rule. There are thousands of individuals 
across the country who are adversely impacted by this rule. Most, 
however, but most lack the time, money, or energy to take their case to 
court.
  This potential for double taxation is not only unfair, it also 
discourages workers from telecommuting when we should be doing the 
opposite.
  Legislation is needed to protect these honest workers who deserve 
fair and equitable treatment under the law. The Telecommuter Tax 
Fairness Act of 2005 accomplishes this by specifically preventing a 
State from engaging in the current fiction of deeming a nonresident to 
be in the taxing State when the nonresident is actually working in 
another State. In doing so, it will eliminate the possibility that 
citizens will be double-taxed when telecommuting.
  Establishing a ``physical presence'' test--as this legislation would 
do--is the most logical basis for determining tax status. If a worker 
is in a State, and taking advantage of that State's infrastructure, the 
worker should pay taxes in that State.
  Some suggest that the double-taxation quandary can easily be fixed by 
having other States provide a tax credit to those telecommuters. 
However, why should Connecticut, or any other State, be required to 
allow a credit on income actually earned in the State? If a worker is 
working in Connecticut, he or she is benefiting from a range of 
Services paid for and maintained by Connecticut including roads, water, 
police, fire protection, and communications services. It's only fair 
that Connecticut ask that worker to help support the services that he 
or she uses.
  This is not just an issue which deals with a small group of citizens 
from one small State. Rather, this is an issue which affects workers 
throughout the country. It will only grow more pressing as people and 
businesses continue to seek to take advantage of new technologies that 
affect the way we live and work.
  I hope our colleagues will favorably consider this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1097

       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 ``Telecommuter Tax Fairness 
     Act of 2005''.

     SEC. 2. PROHIBITION ON DOUBLE TAXATION OF TELECOMMUTERS.

       (a) In General.--Chapter 4 of title 4, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 127. Prohibition on double taxation of telecommuters 
       and others who work at home

       ``(a) Physical Presence Required.--
       ``(1) In general.--In applying its income tax laws to the 
     salary of a nonresident individual, a State may only deem 
     such nonresident individual to be present in or working in 
     such State for any period of time if such nonresident 
     individual is physically present in such State for such 
     period and such State may not impose nonresident income taxes 
     on such salary with respect to any period of time when such 
     nonresident individual is physically present in another 
     State.
       ``(2) Determination of physical presence.--For purposes of 
     determining physical presence, no State may deem a 
     nonresident individual to be present in or working in such 
     State on the grounds that such nonresident individual is 
     present at or working at home for the nonresident 
     individual's convenience.
       ``(b) Definitions.--As used in this section--
       ``(1) State.--The term `State' includes any political 
     subdivision of a State, the District of Columbia, and the 
     possessions of the United States.
       ``(2) Income tax.--The term `income tax' has the meaning 
     given such term by section 110(c).
       ``(3) Income tax laws.--The term `income tax laws' includes 
     any statutes, regulations, administrative practices, 
     administrative interpretations, and judicial decisions.
       ``(4) Nonresident individual.--The term `nonresident 
     individual' means an individual who is not a resident of the 
     State applying its income tax laws to such individual.
       ``(5) Salary.--The term `salary' means the compensation, 
     wages, or other remuneration earned by an individual for 
     personal services performed as an employee or as an 
     independent contractor.
       ``(c) No Inference.--Nothing in this section shall be 
     construed as bearing on--
       ``(1) any tax laws other than income tax laws,
       ``(2) the taxation of corporations, partnerships, trusts, 
     estates, limited liability companies, or other entities, 
     organizations, or persons other than nonresident individuals 
     in their capacities as employees or independent contractors,
       ``(3) the taxation of individuals in their capacities as 
     shareholders, partners, trust and estate beneficiaries, 
     members or managers of limited liability companies, or in any 
     similar capacities, and
       ``(4) the income taxation of dividends, interest, 
     annuities, rents, royalties, or other forms of unearned 
     income.''.
       (b) Clerical Amendment.--The table of sections of such 
     chapter 4 is amended by adding at the end the following new 
     item:

``127. Prohibition on double taxation of telecommuters and others who 
              work at home.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of enactment of this Act.
                                 ______
                                 
      By Mr. SHELBY:
  S. 1099. A bill to repeal the current Internal Revenue Code and 
replace it with a flat tax, thereby guaranteeing economic growth and 
greater fairness for all Americans; to the Committee on Finance.
  Mr. SHELBY. Mr. President, I rise today to once again introduce my 
flat tax bill, S. 1099 the ``Tax Simplification Act of 2005.'' The 
President has made fundamental tax reform a top priority for his second 
term. I believe my bill offers that fundamental tax reform and will 
drastically improve our Nation's economy and the way Americans go about 
the business of paying taxes. This bill would repeal the current 
Internal Revenue Code and create a single rate for all taxpayers--
seventeen percent when the tax is fully implemented--and gives tax-free 
treatment to all savings and investment, not just dividends.
  A major reason why I support a flat tax is because it wil1 place more 
money into the hands of hardworking Americans. It will allow 
individuals--not the government--to decide how to best

[[Page 10868]]

spend their money. Lowering taxes allows Americans to keep more of 
their money to keep up with monthly expenses like, insurance coverage, 
educational costs, and prescription drugs. Lowering taxes also makes it 
easier for Americans to save for their retirement through private 
savings plans. Although I strongly believe in the importance of private 
savings, my bill leaves the Social Security system intact and, in fact, 
provides seniors with more money by repealing the current tax on Social 
Security benefits.
  I have said many times before that our current progressive tax system 
is unfair. It punishes success and stymies economic growth. The only 
way we can remedy this is to adopt a single tax rate for all taxpayers. 
Transitioning to a flat tax will not only increase the fairness of the 
tax code, but it will also increase the incentives to work and thus 
boost economic growth.
  Today our tax code and its regulations total more than 60,000 pages 
which are complex, confusing and costly to comply with. Were a flat tax 
in place now, taxpayers would file a return the size of a postcard, and 
every American would be taxed equally and at the same rate. Rather than 
spending hours poring over convoluted IRS forms, or resorting to 
professional tax assistance, the flat tax allows taxpayers to determine 
their taxes quickly and easily. Everyone will fill out the same simple 
return, everyone will be taxed at the same rate, and everyone will pay 
their fare share. Paying taxes may never be a pleasant experience, but 
at least under a flat tax it wouldn't be mind-boggling.
  I fully realize that the bill I am introducing today is a monumental 
shift from the current tax code, but the time is ripe for fundamental 
tax reform. We must not allow the enormity of the task to deter us from 
enacting better, more efficient tax laws. I therefore urge my 
colleagues to join me in support of this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1099

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Tax 
     Simplification Act of 2005''.
       (b) Table of Contents.--
Sec. 1. Short title; table of contents.

               TITLE I--TAX REDUCTION AND SIMPLIFICATION

Sec. 101. Individual income tax.
Sec. 102. Tax on business activities.
Sec. 103. Simplification of rules relating to qualified retirement 
              plans.
Sec. 104. Repeal of alternative minimum tax.
Sec. 105. Repeal of credits.
Sec. 106. Repeal of estate and gift taxes and obsolete income tax 
              provisions.
Sec. 107. Effective date.

            TITLE II--SUPERMAJORITY REQUIRED FOR TAX CHANGES

Sec. 201. Supermajority required.

               TITLE I--TAX REDUCTION AND SIMPLIFICATION

     SEC. 101. INDIVIDUAL INCOME TAX.

       (a) In General.--Section 1 of the Internal Revenue Code of 
     1986 is amended to read as follows:

     ``SECTION 1. TAX IMPOSED.

       ``There is hereby imposed on the taxable income of every 
     individual a tax equal to 19 percent (17 percent in the case 
     of taxable years beginning after December 31, 2007) of the 
     taxable income of such individual for such taxable year.''.
       (b) Taxable Income.--Section 63 of such Code is amended to 
     read as follows:

     ``SEC. 63. TAXABLE INCOME.

       ``(a) In General.--For purposes of this subtitle, the term 
     `taxable income' means the excess of--
       ``(1) the sum of--
       ``(A) wages (as defined in section 3121(a) without regard 
     to paragraph (1) thereof) which are paid in cash and which 
     are received during the taxable year for services performed 
     in the United States,
       ``(B) retirement distributions which are includible in 
     gross income for such taxable year, plus
       ``(C) amounts received under any law of the United States 
     or of any State which is in the nature of unemployment 
     compensation, over
       ``(2) the standard deduction.
       ``(b) Standard Deduction.--
       ``(1) In general.--For purposes of this subtitle, the term 
     `standard deduction' means the sum of--
       ``(A) the basic standard deduction, plus
       ``(B) the additional standard deduction.
       ``(2) Basic standard deduction.--For purposes of paragraph 
     (1), the basic standard deduction is--
       ``(A) $25,580 in the case of--
       ``(i) a joint return, or
       ``(ii) a surviving spouse (as defined in section 2(a)),
       ``(B) $16,330 in the case of a head of household (as 
     defined in section 2(b)), and
       ``(C) $12,790 in the case of an individual--
       ``(i) who is not married and who is not a surviving spouse 
     or head of household, or
       ``(ii) who is a married individual filing a separate 
     return.
       ``(3) Additional standard deduction.--For purposes of 
     paragraph (1), the additional standard deduction is $5,510 
     for each dependent (as defined in section 152) who is 
     described in section 151(c) for the taxable year and who is 
     not required to file a return for such taxable year.
       ``(c) Retirement Distributions.--For purposes of subsection 
     (a), the term `retirement distribution' means any 
     distribution from--
       ``(1) a plan described in section 401(a) which includes a 
     trust exempt from tax under section 501(a),
       ``(2) an annuity plan described in section 403(a),
       ``(3) an annuity contract described in section 403(b),
       ``(4) an individual retirement account described in section 
     408(a),
       ``(5) an individual retirement annuity described in section 
     408(b),
       ``(6) an eligible deferred compensation plan (as defined in 
     section 457),
       ``(7) a governmental plan (as defined in section 414(d)), 
     or
       ``(8) a trust described in section 501(c)(18).

     Such term includes any plan, contract, account, annuity, or 
     trust which, at any time, has been determined by the 
     Secretary to be such a plan, contract, account, annuity, or 
     trust.
       ``(d) Income of Certain Children.--For purposes of this 
     subtitle--
       ``(1) an individual's taxable income shall include the 
     taxable income of each dependent child of such individual who 
     has not attained age 14 as of the close of such taxable year, 
     and
       ``(2) such dependent child shall have no liability for tax 
     imposed by section 1 with respect to such income and shall 
     not be required to file a return for such taxable year.
       ``(e) Inflation Adjustment.--
       ``(1) In general.--In the case of any taxable year 
     beginning in a calendar year after 2006, each dollar amount 
     contained in subsection (b) shall be increased by an amount 
     determined by the Secretary to be equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment for such calendar year.
       ``(2) Cost-of-living adjustment.--For purposes of paragraph 
     (1), the cost-of-living adjustment for any calendar year is 
     the percentage (if any) by which--
       ``(A) the CPI for the preceding calendar year, exceeds
       ``(B) the CPI for the calendar year 2005.
       ``(3) CPI for any calendar year.--For purposes of paragraph 
     (2), the CPI for any calendar year is the average of the 
     Consumer Price Index as of the close of the 12-month period 
     ending on August 31 of such calendar year.
       ``(4) Consumer price index.--For purposes of paragraph (3), 
     the term `Consumer Price Index' means the last Consumer Price 
     Index for all-urban consumers published by the Department of 
     Labor. For purposes of the preceding sentence, the revision 
     of the Consumer Price Index which is most consistent with the 
     Consumer Price Index for calendar year 1986 shall be used.
       ``(5) Rounding.--If any increase determined under paragraph 
     (1) is not a multiple of $10, such increase shall be rounded 
     to the next highest multiple of $10.
       ``(f) Marital Status.--For purposes of this section, 
     marital status shall be determined under section 7703.''.

     SEC. 102. TAX ON BUSINESS ACTIVITIES.

       (a) In General.--Section 11 of the Internal Revenue Code of 
     1986 (relating to tax imposed on corporations) is amended to 
     read as follows:

     ``SEC. 11. TAX IMPOSED ON BUSINESS ACTIVITIES.

       ``(a) Tax Imposed.--There is hereby imposed on every person 
     engaged in a business activity a tax equal to 19 percent (17 
     percent in the case of taxable years beginning after December 
     31, 2007) of the business taxable income of such person.
       ``(b) Liability for Tax.--The tax imposed by this section 
     shall be paid by the person engaged in the business activity, 
     whether such person is an individual, partnership, 
     corporation, or otherwise.
       ``(c) Business Taxable Income.--For purposes of this 
     section--
       ``(1) In general.--The term `business taxable income' means 
     gross active income reduced by the deductions specified in 
     subsection (d).
       ``(2) Gross active income.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `gross active income' means gross receipts from--
       ``(i) the sale or exchange of property or services in the 
     United States by any person in connection with a business 
     activity, and

[[Page 10869]]

       ``(ii) the export of property or services from the United 
     States in connection with a business activity.
       ``(B) Exchanges.--For purposes of this section, the amount 
     treated as gross receipts from the exchange of property or 
     services is the fair market value of the property or services 
     received, plus any money received.
       ``(C) Coordination with special rules for financial 
     services, etc.--Except as provided in subsection (e)--
       ``(i) the term `property' does not include money or any 
     financial instrument, and
       ``(ii) the term `services' does not include financial 
     services.
       ``(3) Exemption from tax for activities of governmental 
     entities and tax-exempt organizations.--For purposes of this 
     section, the term `business activity' does not include any 
     activity of a governmental entity or of any other 
     organization which is exempt from tax under this chapter.
       ``(d) Deductions.--
       ``(1) In general.--The deductions specified in this 
     subsection are--
       ``(A) the cost of business inputs for the business 
     activity,
       ``(B) wages (as defined in section 3121(a) without regard 
     to paragraph (1) thereof) which are paid in cash for services 
     performed in the United States as an employee, and
       ``(C) retirement contributions to or under any plan or 
     arrangement which makes retirement distributions (as defined 
     in section 63(c)) for the benefit of such employees to the 
     extent such contributions are allowed as a deduction under 
     section 404.
       ``(2) Business inputs.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `cost of business inputs' means--
       ``(i) the amount paid for property sold or used in 
     connection with a business activity,
       ``(ii) the amount paid for services (other than for the 
     services of employees, including fringe benefits paid by 
     reason of such services) in connection with a business 
     activity, and
       ``(iii) any excise tax, sales tax, customs duty, or other 
     separately stated levy imposed by a Federal, State, or local 
     government on the purchase of property or services which are 
     for use in connection with a business activity.

     Such term shall not include any tax imposed by chapter 2 or 
     21.
       ``(B) Exceptions.--Such term shall not include--
       ``(i) items described in subparagraphs (B) and (C) of 
     paragraph (1), and
       ``(ii) items for personal use not in connection with any 
     business activity.
       ``(C) Exchanges.--For purposes of this section, the amount 
     treated as paid in connection with the exchange of property 
     or services is the fair market value of the property or 
     services exchanged, plus any money paid.
       ``(e) Special Rules for Financial Inter-mediation Service 
     Activities.--In the case of the business activity of 
     providing financial intermediation services, the taxable 
     income from such activity shall be equal to the value of the 
     intermediation services provided in such activity.
       ``(f) Exception for Services Performed as Employee.--For 
     purposes of this section, the term `business activity' does 
     not include the performance of services by an employee for 
     the employee's employer.
       ``(g) Carryover of Credit-Equivalent of Excess 
     Deductions.--
       ``(1) In general.--If the aggregate deductions for any 
     taxable year exceed the gross active income for such taxable 
     year, the credit-equivalent of such excess shall be allowed 
     as a credit against the tax imposed by this section for the 
     following taxable year.
       ``(2) Credit-equivalent of excess deductions.--For purposes 
     of paragraph (1), the credit-equivalent of the excess 
     described in paragraph (1) for any taxable year is an amount 
     equal to--
       ``(A) the sum of--
       ``(i) such excess, plus
       ``(ii) the product of such excess and the 3-month Treasury 
     rate for the last month of such taxable year, multiplied by
       ``(B) the rate of the tax imposed by subsection (a) for 
     such taxable year.
       ``(3) Carryover of unused credit.--If the credit allowable 
     for any taxable year by reason of this subsection exceeds the 
     tax imposed by this section for such year, then (in lieu of 
     treating such excess as an overpayment) the sum of--
       ``(A) such excess, plus
       ``(B) the product of such excess and the 3-month Treasury 
     rate for the last month of such taxable year, shall be 
     allowed as a credit against the tax imposed by this section 
     for the following taxable year.
       ``(4) 3-month treasury rate.--For purposes of this 
     subsection, the 3-month Treasury rate is the rate determined 
     by the Secretary based on the average market yield (during 
     any 1-month period selected by the Secretary and ending in 
     the calendar month in which the determination is made) on 
     outstanding marketable obligations of the United States with 
     remaining periods to maturity of 3 months or less.''.
       (b) Tax on Tax-Exempt Entities Providing Noncash 
     Compensation to Employees.--Section 4977 of such Code is 
     amended to read as follows:

     ``SEC. 4977. TAX ON NONCASH COMPENSATION PROVIDED TO 
                   EMPLOYEES NOT ENGAGED IN BUSINESS ACTIVITY.

       ``(a) Imposition of Tax.--There is hereby imposed a tax 
     equal to 19 percent (17 percent in the case of calendar years 
     beginning after December 31, 2007) of the value of excludable 
     compensation provided during the calendar year by an employer 
     for the benefit of employees to whom this section applies.
       ``(b) Liability for Tax.--The tax imposed by this section 
     shall be paid by the employer.
       ``(c) Excludable Compensation.--For purposes of subsection 
     (a), the term `excludable compensation' means any 
     remuneration for services performed as an employee other 
     than--
       ``(1) wages (as defined in section 3121(a) without regard 
     to paragraph (1) thereof) which are paid in cash,
       ``(2) remuneration for services performed outside the 
     United States, and
       ``(3) retirement contributions to or under any plan or 
     arrangement which makes retirement distributions (as defined 
     in section 63(c)).
       ``(d) Employees to Whom Section Applies.--This section 
     shall apply to an employee who is employed in any activity 
     by--
       ``(1) any organization which is exempt from taxation under 
     this chapter, or
       ``(2) any agency or instrumentality of the United States, 
     any State or political subdivision of a State, or the 
     District of Columbia.''.

     SEC. 103. SIMPLIFICATION OF RULES RELATING TO QUALIFIED 
                   RETIREMENT PLANS.

       (a) In General.--The following provisions of the Internal 
     Revenue Code of 1986 are hereby repealed:
       (1) Nondiscrimination rules.--
       (A) Paragraphs (4) and (5) of section 401(a) (relating to 
     nondiscrimination requirements).
       (B) Sections 401(a)(10)(B) and 416 (relating to top heavy 
     plans).
       (C) Section 401(a)(17) (relating to compensation limit).
       (D) Sections 401(a)(26) and 410(b) (relating to minimum 
     participation and coverage requirements).
       (E) Paragraphs (3), (8), (11), and (12) of sections 401(k), 
     and section 4979, (relating to actual deferral percentage).
       (F) Section 401(l) (relating to permitted disparity in plan 
     contributions or benefits).
       (G) Section 401(m) (relating to nondiscrimination test for 
     matching contributions and employee contributions).
       (H) Paragraphs (1)(D) and (12) of section 403(b) (relating 
     to nondiscrimination requirements).
       (I) Paragraph (3) of section 408(k) and paragraph (6) 
     (other than subparagraph (A)(i)) of such section (relating to 
     simplified employee pensions).
       (2) Contribution limits.--
       (A) Sections 401(a)(16), 403(b) (2) and (3), and 415 
     (relating to limitations on benefits and contributions under 
     qualified plans).
       (B) Sections 401(a)(30) and 402(g) (relating to limitation 
     on exclusion for elective deferrals).
       (C) Paragraphs (3) and (7) of section 404(a) (relating to 
     percentage of compensation limits).
       (D) Section 404(l) (relating to limit on includible 
     compensation).
       (3) Restrictions on distributions.--
       (A) Section 72(t) (relating to 10-percent additional tax on 
     early distributions from qualified retirement plans).
       (B) Sections 401(a)(9), 403(b)(10), and 4974 (relating to 
     minimum distribution rules).
       (C) Section 402(e)(4) (relating to net unrealized 
     appreciation).
       (4) Special requirements for plan benefiting self-employed 
     individuals.--Subsections (a)(10)(A) and (d) of section 401.
       (5) Prohibition of tax-exempt organizations and governments 
     from having qualified cash or deferred arrangements.--Section 
     401(k)(4)(B).
       (b) Employer Reversions of Excess Pension Assets Permitted 
     Subject Only to Income Inclusion.--
       (1) Repeal of tax on employer reversions.--Section 4980 of 
     such Code is hereby repealed.
       (2) Employer reversions permitted without plan 
     termination.--Section 420 of such Code is amended to read as 
     follows:

     ``SEC. 420. TRANSFERS OF EXCESS PENSION ASSETS.

       ``(a) In General.--If there is a qualified transfer of any 
     excess pension assets of a defined benefit plan (other than a 
     multiemployer plan) to an employer--
       ``(1) a trust which is part of such plan shall not be 
     treated as failing to meet the requirements of section 401(a) 
     or any other provision of law solely by reason of such 
     transfer (or any other action authorized under this section), 
     and
       ``(2) such transfer shall not be treated as a prohibited 
     transaction for purposes of section 4975.

     The gross income of the employer shall include the amount of 
     any qualified transfer made during the taxable year.
       ``(b) Qualified Transfer.--For purposes of this section--
       ``(1) In general.--The term `qualified transfer' means a 
     transfer--
       ``(A) of excess pension assets of a defined benefit plan to 
     the employer, and

[[Page 10870]]

       ``(B) with respect to which the vesting requirements of 
     subsection (c) are met in connection with the plan.
       ``(2) Only 1 transfer per year.--No more than 1 transfer 
     with respect to any plan during a taxable year may be treated 
     as a qualified transfer for purposes of this section.
       ``(c) Vesting Requirements of Plans Transferring Assets.--
     The vesting requirements of this subsection are met if the 
     plan provides that the accrued pension benefits of any 
     participant or beneficiary under the plan become 
     nonforfeitable in the same manner which would be required if 
     the plan had terminated immediately before the qualified 
     transfer (or in the case of a participant who separated 
     during the 1-year period ending on the date of the transfer, 
     immediately before such separation).
       ``(d) Definition and Special Rule.--For purposes of this 
     section--
       ``(1) Excess pension assets.--The term `excess pension 
     assets' means the excess (if any) of--
       ``(A) the amount determined under section 412(c)(7)(A)(ii), 
     over
       ``(B) the greater of--
       ``(i) the amount determined under section 412(c)(7)(A)(i), 
     or
       ``(ii) 125 percent of current liability (as defined in 
     section 412(c)(7)(B)).

     The determination under this paragraph shall be made as of 
     the most recent valuation date of the plan preceding the 
     qualified transfer.
       ``(2) Coordination with section 412.--In the case of a 
     qualified transfer--
       ``(A) any assets transferred in a plan year on or before 
     the valuation date for such year (and any income allocable 
     thereto) shall, for purposes of section 412, be treated as 
     assets in the plan as of the valuation date for such year, 
     and
       ``(B) the plan shall be treated as having a net experience 
     loss under section 412(b)(2)(B)(iv) in an amount equal to the 
     amount of such transfer and for which amortization charges 
     begin for the first plan year after the plan year in which 
     such transfer occurs, except that such section shall be 
     applied to such amount by substituting `10 plan years' for `5 
     plan years'.''.

     SEC. 104. REPEAL OF ALTERNATIVE MINIMUM TAX.

       Part VI of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is hereby repealed.

     SEC. 105. REPEAL OF CREDITS.

       Part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is hereby repealed.

     SEC. 106. REPEAL OF ESTATE AND GIFT TAXES AND OBSOLETE INCOME 
                   TAX PROVISIONS.

       (a) Repeal of Estate and Gift Taxes.--
       (1) In general.--Subtitle B of the Internal Revenue Code of 
     1986 is hereby repealed.
       (2) Effective date.--The repeal made by paragraph (1) shall 
     apply to the estates of decedents dying, and gifts and 
     generation-skipping transfers made, after December 31, 2005.
       (b) Repeal of Obsolete Income Tax Provisions.--
       (1) In general.--Except as provided in paragraph (2), 
     chapter 1 of the Internal Revenue Code of 1986 is hereby 
     repealed.
       (2) Exceptions.--Paragraph (1) shall not apply to--
       (A) sections 1, 11, and 63 of such Code, as amended by this 
     Act,
       (B) those provisions of chapter 1 of such Code which are 
     necessary for determining whether or not--
       (i) retirement distributions are includible in the gross 
     income of employees, or
       (ii) an organization is exempt from tax under such chapter, 
     and
       (C) subchapter D of such chapter 1 (relating to deferred 
     compensation).

     SEC. 107. EFFECTIVE DATE.

       Except as otherwise provided in this title, the amendments 
     made by this title shall apply to taxable years beginning 
     after December 31, 2005.

            TITLE II--SUPERMAJORITY REQUIRED FOR TAX CHANGES

     SEC. 201. SUPERMAJORITY REQUIRED.

       (a) In General.--It shall not be in order in the House of 
     Representatives or the Senate to consider any bill, joint 
     resolution, amendment thereto, or conference report thereon 
     that includes any provision that--
       (1) increases any Federal income tax rate,
       (2) creates any additional Federal income tax rate,
       (3) reduces the standard deduction, or
       (4) provides any exclusion, deduction, credit, or other 
     benefit which results in a reduction in Federal revenues.
       (b) Waiver or Suspension.--This section may be waived or 
     suspended in the House of Representatives or the Senate only 
     by the affirmative vote of three-fifths of the Members, duly 
     chosen and sworn.
                                 ______
                                 
      By Mrs. MURRAY (for herself and Mr. DeWine):
  S. 1101. A bill to amend the Head Start Act to address the needs of 
victims of child abuse and neglect, children in foster care, children 
in kinship care, and homeless children; to the Committee on Health, 
Education, Labor, and Pensions.
  Mrs. MURRAY. Mr. President, today I rise with Senator DeWine to 
introduce the ``Improving Head Start Access for Homeless and Foster 
Children Act of 2005.''
  Head Start has made significant strides in providing comprehensive 
services to low-income children. Since Head Start was established in 
1965, low-income preschool-aged children have received education, 
health, nutritional, social and developmental services they would not 
otherwise have access to. Unfortunately, children in greatest need of 
these services--homelss and foster youth--are not receiving those 
services at adequate levels.
  It is estimated that 1.35 million children experience homelessness 
each year, and the mean income of a homeless family is at 46 percent of 
the Federal poverty level. Due to extreme poverty and the inherent 
instability of homelessness, children facing these conditions have 
considerably higher physical, mental and emotional difficulties. It is 
not surprising that homeless children are reported to be twice as 
likely to have a learning disability and three times as likely of 
having an emotional or behavioral problem that interferes with their 
learning.
  These children also face significant barriers to participation in 
Head Start. These children lack transportation. They lack the necessary 
documentation. They suffer from the invisibility of homeless families 
which leaves the community unaware of the need to include these 
children in Head Start recruitment and prioritization. As a result of 
these and other barriers, only 15 percent of preschool children 
identified as homeless are enrolled in preschool programs of any kind, 
compared to the 57 percent of low-income preschool children. Currently 
only 2 percent of the more than 900,000 students served by Head Start 
are children identified as homeless. States report that 60 percent of 
homeless students are having difficulties gaining access to Head Start.
  In addition to homeless children, kids in foster care face a unique 
set of challenges which both increase their need for the stability and 
educational services provided by Head Start. Tragically, these same 
challenges also hinder their ability to gain access to those services. 
Foster children are likely to suffer from both emotional and physical 
instability. With more than 500,000 children in foster care and a 
shortage of foster parents in this country, these children often go 
without the attention and advocacy that preschool age children need.
  More than 40 percent of the children in homeless shelters are under 
the age of five. The first years of a child's life significantly impact 
personal development and future academic achievement. That is why I 
once again stand with Senator DeWine to increase access to Head Start 
for homeless and foster children.
  Our bill would ensure equal access and benefits from to early 
education and supportive services provided by Head Start for the 
Nation's poorest children. It would make all homeless children eligible 
for Head Start. The bill also allow homeless children to be immediately 
enrolled in Head Start by allowing them extra time to provided required 
documentation; providing that that documentation be in a reasonable 
time frame. And, our bill would require school, district liaisons to 
assist families in obtaining necessary documents. In addition, our bill 
increases Head Start's outreach to homeless and foster children. 
Further, the bill would reduce barriers by encouraging coordination 
between Head Start agencies and community programs that serve these 
vulnerable populations.
  Again, I would like to thank my colleague Senator DeWine for his many 
efforts in supporting homeless and foster youth. I urge the Senate to 
ensure that all children, despite their background and socioeconomic 
situation receive equal access to a quality education.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

[[Page 10871]]



                                S. 1101

       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 ``Improving Head Start Access 
     for Homeless and Foster Children Act of 2005''.

     SEC. 2. DEFINITIONS.

       Section 637 of the Head Start Act (42 U.S.C. 9832) is 
     amended by adding at the end the following:
       ``(18) The term `family' means all persons living in the 
     same household who are--
       ``(A) supported by the income of at least 1 parent or 
     guardian (including any relative acting in place of a parent, 
     such as a grandparent) of a child enrolling or participating 
     in the Head Start program; and
       ``(B) related to the parent or guardian by blood, marriage, 
     or adoption.
       ``(19) The term `homeless child' means a child described in 
     section 725(2) of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11434a(2)).
       ``(20) The term `homeless family' means the family of a 
     homeless child.''.

     SEC. 3. ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE.

       (a) Quality Improvement.--Section 640(a)(3) of the Head 
     Start Act (42 U.S.C. 9835(a)(3)) is amended--
       (1) in subparagraph (B)--
       (A) in clause (ii), by inserting ``children in foster care, 
     children referred to Head Start programs by child welfare 
     agencies,'' after ``background''; and
       (B) in clause (v), by inserting ``, including collaboration 
     to increase program participation by underserved populations, 
     including homeless children, children in foster care, and 
     children referred to Head Start programs by child welfare 
     agencies'' before the period; and
       (2) in subparagraph (C)--
       (A) in clause (ii)(IV)--
       (i) by inserting ``homeless children, children in foster 
     care, children referred to Head Start programs by child 
     welfare agencies, '' after ``dysfunctional families''; and
       (ii) by inserting ``and families'' after ``communities'';
       (B) in clause (v)--
       (i) by inserting ``homeless children, children in foster 
     care, children referred to Head Start programs by child 
     welfare agencies,'' after ``dysfunctional families''; and
       (ii) by inserting ``and families'' after ``communities'';
       (C) by redesignating clause (vi) as clause (viii); and
       (D) by inserting after clause (v) the following:
       ``(vi) To conduct outreach to homeless families and to 
     increase Head Start program participation by homeless 
     children.''.
       (b) Collaboration Grants.--Section 640(a)(5)(C)(iv) of the 
     Head Start Act (42 U.S.C. 9835(a)(5)(C)(iv)) is amended--
       (1) by inserting ``child welfare (including child 
     protective services),'' after ``child care,'';
       (2) by inserting ``home-based services (including home 
     visiting services),'' after ``family literacy services''; and
       (3) by striking ``and services for homeless children'' and 
     inserting ``services provided through grants under section 
     106 of the Child Abuse Prevention and Treatment Act (42 
     U.S.C. 5106a ) and parts B and E of title IV of the Social 
     Security Act (42 U.S.C. 620 et seq. and 670 et seq.), and 
     services for homeless children (including coordination of 
     services with the Coordinator for Education of Homeless 
     Children and Youth designated under section 722 of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11432)), 
     children in foster care, and children referred to Head Start 
     programs by child welfare agencies''.
       (c) Allocation of Funds.--Section 640(g)(2) of the Head 
     Start Act (42 U.S.C. 9835(g)(2)) is amended--
       (1) in subparagraph (C)--
       (A) by inserting ``organizations and agencies providing 
     family support services, child abuse prevention services, 
     protective services, and foster care, and'' after 
     ``(including''; and
       (B) by striking ``and public entities serving children with 
     disabilities'' and inserting ``, public entities, and 
     individuals serving children with disabilities and homeless 
     children (including local educational agency liaisons 
     designated under section 722(g)(1)(J)(ii) of the McKinney-
     Vento Homeless Assistance Act (42 U.S.C. 
     11432(g)(1)(J)(ii)))'';
       (2) in subparagraph (F), by inserting ``and homeless 
     families'' after ``low-income families''; and
       (3) in subparagraph (H), 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''.
       (d) 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) The Secretary shall issue regulations to remove 
     barriers to the enrollment and participation of homeless 
     children in Head Start programs. Such regulations shall 
     require Head Start agencies to--
       ``(1) implement policies and procedures to ensure that 
     homeless children are identified and prioritized for 
     enrollment;
       ``(2) allow homeless children 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; and
       ``(3) coordinate individual Head Start programs with 
     programs for homeless children (including efforts to 
     implement subtitle B of title VII of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11431 et seq.)).''.

     SEC. 4. DESIGNATION OF HEAD START AGENCIES.

       Section 641(d)(4) of the Head Start Act (42 U.S.C. 
     9836(d)(4)) is amended--
       (1) in subparagraph (B), by inserting ``including providing 
     services, to the extent practicable, such as transportation, 
     to enable such parents to participate'' after ``level''
       (2) in subparagraph (E)(iv), by striking ``; and'' and 
     inserting a semicolon;
       (3) in subparagraph (F), by inserting ``and'' after the 
     semicolon; and
       (4) by adding at the end the following:
       ``(G) to meet the needs of homeless children (including, to 
     the extent practicable, the transportation needs of such 
     children), children in foster care, and children referred to 
     Head Start programs by child welfare agencies;''.

     SEC. 5. QUALITY STANDARDS; MONITORING OF HEAD START AGENCIES 
                   AND PROGRAMS.

       Section 641A of the Head Start Act (42 U.S.C. 9836a) is 
     amended--
       (1) in subsection (a)(2)(B)--
       (A) in clause (iii), by inserting ``homeless children, 
     children being raised by grandparents or other relatives, 
     children in foster care, children referred to Head Start 
     Programs by child welfare agencies,'' after ``children with 
     disabilities,''; and
       (B) in clause (vi), by striking ``background and family 
     structure of such children'' and inserting ``background, 
     family structure of such children (including the number of 
     children being raised by grandparents and other relatives and 
     the number of children in foster care), and the number of 
     homeless children''; and
       (2) in subsection (c)(2)(C), by striking ``disabilities)'' 
     and inserting ``disabilities, homeless children, children 
     being raised by grandparents or other relatives, children in 
     foster care, and children referred to Head Start programs by 
     child welfare agencies)''.

     SEC. 6. POWERS AND FUNCTIONS OF HEAD START AGENCIES.

       Section 642 of the Head Start Act (42 U.S.C. 9837) is 
     amended--
       (1) in subsection (b)--
       (A) in paragraph (6), by inserting ``mental health services 
     and treatment, domestic violence services, and'' after 
     ``participating children'';
       (B) in paragraph (10), by striking ``; and'' and inserting 
     a semicolon;
       (C) in paragraph (11)(B), by striking the period and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(12) inform foster parents or grandparents or other 
     relatives raising children enrolled in the Head Start 
     program, that they have a right to participate in programs, 
     activities, or services carried out or provided under this 
     subchapter.'';
       (2) in subsection (c), by inserting ``, the agencies 
     responsible for administering section 106 of the Child Abuse 
     Prevention and Treatment Act (42 U.S.C. 5106a), parts B and E 
     of title IV of the Social Security Act (42 U.S.C. 620 et seq. 
     and 670 et seq.), and programs under subtitle B of title VII 
     of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11431 et seq.), homeless shelters, other social service 
     agencies serving homeless children and families,'' after 
     ``(42 U.S.C. 9858 et seq.)''; and
       (3) in subsection (d)(2)--
       (A) in subparagraph (A), by striking ``; and'' and 
     inserting a semicolon;
       (B) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(C) collaborating to increase the program participation 
     of homeless children.''.

     SEC. 7. HEAD START TRANSITION.

       Section 642A of the Head Start Act (42 U.S.C. 9837a) is 
     amended--
       (1) in paragraph (2), by inserting ``local educational 
     agency liaisons 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 ``social workers'';
       (2) in paragraph (5), by inserting ``and family outreach 
     and support efforts under subtitle B of title VII of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et 
     seq.)'' before the semicolon;
       (3) in paragraph (6), by striking ``; and '' and inserting 
     a semicolon;
       (4) in paragraph (7), by striking the period and inserting 
     ``; and''; and
       (5) by adding at the end the following:
       ``(8) developing and implementing a system to increase 
     program participation of underserved populations, including 
     homeless children.''.

     SEC. 8. PARTICIPATION IN HEAD START PROGRAMS.

       Section 645(a)(1) of the Head Start Act (42 U.S.C. 
     9840(a)(1)) is amended--
       (1) in subparagraph (B), by striking clause (i) and 
     inserting the following:
       ``(i) programs assisted under this subchapter may include--

[[Page 10872]]

       ``(I) participation of homeless children, children whose 
     families are receiving public assistance, children in foster 
     care, and children who have been referred to a Head Start 
     program by a child welfare agency; or
       ``(II) to a reasonable extent, participation of other 
     children in the area served who would benefit from such 
     programs,

     whose families do not meet the low-income criteria prescribed 
     pursuant to subparagraph (A); and''; and
       (2) in the flush matter following subparagraph (B), by 
     adding at the end the following: ``A homeless child shall 
     automatically be deemed to meet the low-income criteria.''.

     SEC. 9. EARLY HEAD START PROGRAMS FOR FAMILIES WITH INFANTS 
                   AND TODDLERS.

       Section 645A of the Head Start Act (42 U.S.C. 9840a) is 
     amended--
       (1) in subsection (b)--
       (A) in paragraph (4), by inserting ``(including parenting 
     skills training, training in basic child development, and 
     training to meet the special needs of their children)'' after 
     ``role as parents'';
       (B) in paragraph (5)--
       (i) by inserting ``(including home visiting and other home-
     based services)'' after ``with services'';
       (ii) by striking ``disabilities)'' and inserting 
     ``disabilities and homeless infants and toddlers (including 
     homeless infants and toddlers with disabilities)); and
       (iii) by striking ``services);'' and inserting ``services, 
     housing services, family support services, and other child 
     welfare services);''; and
       (C) in paragraph (8), by inserting ``, and the agencies 
     responsible for administering section 106 of the Child Abuse 
     Prevention and Treatment Act (42 U.S.C. 5106a) and parts B 
     and E of title IV of the Social Security Act (42 U.S.C. 620 
     et seq. and 670 et seq.)'' before the semicolon; and
       (2) in subsection (g)(2)(B)--
       (A) in clause (iii), by striking ``; and'' and inserting a 
     semicolon;
       (B) in clause (iv), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(v) providing professional development designed to 
     increase the program participation of underserved 
     populations, including homeless infants and toddlers, infants 
     and toddlers in foster care, and infants and toddlers 
     referred by child welfare agencies.''.

     SEC. 10. TECHNICAL ASSISTANCE AND TRAINING.

       Section 648 of the Head Start Act (42 U.S.C. 9843) is 
     amended--
       (1) in subsection (c)--
       (A) in paragraph (2), by striking ``disabilities)'' and 
     inserting ``disabilities, children in foster care, and 
     children referred by child welfare agencies)'';
       (B) in paragraph (5), by inserting ``, including the needs 
     of homeless children and their families'' before the 
     semicolon;
       (C) in paragraph (10), by striking ``; and'' and inserting 
     a semicolon;
       (D) in paragraph (11) by striking the period and inserting 
     ``; and''; and
       (E) by adding at the end the following:
       ``(12) assist Head Start agencies and programs in 
     increasing the program participation of homeless children.''; 
     and
       (2) in subsection (e)--
       (A) by inserting ``training for personnel providing 
     services to children determined to be abused or neglected, 
     children receiving child welfare services, and children 
     referred by child welfare agencies,'' after ``language),''; 
     and
       (B) by inserting ``and family'' after ``community''.

     SEC. 11. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

       Section 649 of the Head Start Act (42 U.S.C. 9844) is 
     amended--
       (1) in subsection (a)(1)(B), by striking ``disabilities)'' 
     and inserting ``disabilities, homeless children, children who 
     have been abused or neglected, and children in foster care''; 
     and
       (2) in subsection (c)(1)(B) by inserting ``, including 
     those that work with children with disabilities, children who 
     have been abused and neglected, children in foster care, 
     children and adults who have been exposed to domestic 
     violence, children and adults facing mental health and 
     substance abuse problems, and homeless children and 
     families'' before the semicolon.

     SEC. 12. REPORTS.

       Section 650(a) of the Head Start Act (42 U.S.C. 9846(a)) is 
     amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``disabled and'' and inserting ``disabled children, homeless 
     children, children in foster care, and'';
       (2) in paragraph (8), by inserting ``homelessness, whether 
     the child is in foster care or was referred by a child 
     welfare agency,'' after ``background''; and
       (3) in paragraph (12), by inserting ``substance abuse 
     treatment, housing services,'' after ``physical fitness''.

  Mr. DeWINE. Mr. President, today I join with Senator MURRAY to 
introduce the ``Improving Head Start Access for Homeless and Foster 
Children Act of 2005.'' The problems children who are homeless and in 
foster care face are daunting. I am grateful to Senator Murray for her 
leadership in this area. She and I worked on coordinating and improving 
access to services for homeless and foster children in the Individuals 
with Disabilities Education Act (IDEA), and I am glad to have had the 
opportunity to work with her again on this issue.
  Who is more vulnerable than a child, under the age of five, living on 
the street or in a shelter? Who is more vulnerable than a child under 
five who has been abused and neglected? Just because young children 
cannot speak to their needs does not mean that they should have no 
voice. The hundreds of thousands of children in the United States who 
experience homelessness, separation from their parents, or abuse and 
neglect each year are in need of our help to ensure their needs are 
met. Unfortunately, their voices are all too often not heard and their 
needs go unmet. The bill we are introducing today would serve as one 
more step, one move closer, to ensuring homeless and foster children 
are visible and their voices audible.
  In the United States, on any given day, more than half a million 
children are in foster care, 20,000 of whom are in my home State of 
Ohio, alone. Of this group, 27 percent are age five and--under. In 
2003, we also know that more than 900,000 children were found to be 
victims of child abuse or neglect. Children as young as six months old 
can suffer from long-term effects after experiencing or witnessing 
trauma. More than half of the children in foster care experience 
developmental delays. Children in foster care have three to seven times 
more chronic medical conditions, birth defects, emotional disorders, 
and academic failures than children of similar socioeconomic 
backgrounds who never enter foster care.
  In its 2000 Report to Congress, the U.S. Department of Education 
noted that only 15 percent of preschool children identified as homeless 
were enrolled in preschool programs. In comparison, 57 percent of low-
income preschool children participated in preschool in 1999. These 
statistics are especially troubling in light of the fact that over 40 
percent of children living in shelters are under the age of five--an 
age when early childhood education can have a significant positive 
impact on a child's development and future academic achievement.
  Head Start began in 1965, and since its inception, it has served more 
than 22 million of America's poorest children. This important program 
has helped these children build the skills they need to succeed in 
school and provide them with the services they need to be healthy and 
active in society. With its comprehensive services and family-centered 
approach, Head Start often offers the most appropriate educational 
setting for children and families experiencing homelessness and for 
children in foster care. By providing comprehensive health, nutrition, 
education, and social services, Head Start helps provide for the needs 
of these vulnerable children. And, with the passage of this bill, Head 
Start could help even more. Yet, programmatic and policy barriers 
continue to limit their access to and participation in Head Start. Some 
barriers to Head Start access are related to lack of coordination with 
child welfare agencies, high mobility, lack of required documentation, 
and lack of transportation.
  Our bill would encourage Head Start grantees to reduce these barriers 
by directing them to increase their outreach to homeless and foster 
children. It also would encourage coordination between Head Start 
grantees and community service providers and homeless and foster 
children. It would increase the coordination for these populations as 
they transition out of Head Start to elementary school and increase 
reporting requirements. And, it would allow homeless children to be 
automatically eligible for Head Start.
  Again, I thank my colleague, Senator Murray, for her leadership on 
this issue. I look forward to working with her to incorporate these 
ideas into the Head Start reauthorization bill currently being 
considered in the Health, Education, Labor, and Pensions Committee.

[[Page 10873]]


                                 ______
                                 
      By Mr. ROCKEFELLER (for himself and Mr. Burns):
  S. 1102. A bill to extend the aviation war risk insurance program for 
3 years; to the Committee on Commerce, Science, and Transportation.
  Mr. ROCKEFELLER. Mr. President, I rise today to introduce legislation 
to mandate that the Federal Aviation Administration (FAA) extend the 
offering of war risk insurance through August 31, 2007, to our Nation's 
air carriers. I am very pleased that Senator Burns, the Chairman of the 
Aviation Subcommittee, has agreed to co-sponsor this legislation.
  Prior to September 11, 2001, war risk insurance was generally 
attainable and affordable for U.S. airlines. But, as we know, that day 
changed everything for America. No industry was more dramatically and 
fundamentally changed than the U.S. aviation industry. Recognizing that 
the commercial insurance market was not willing to provide war risk 
insurance to the airline industry in the immediate aftermath of 
September 11, Congress required the FAA provide war risk insurance to 
U.S. air carriers. We expected that in time U.S. air carriers would be 
able to obtain commercial war risk insurance. Unfortunately, the 
commercial war risk insurance market has priced its products beyond the 
means of our air carriers. According to the Air Transport Association, 
a return to the commercial market to obtain war risk insurance could 
cost U.S. airlines $600 million to $700 million a year, up from the 
current $140 million. Because of the lack of a vibrant competitive 
commercial market, last year, Congress extended its mandate that the 
FAA provide this insurance.
  In a report to Congress, the FAA noted that even though war risk 
insurance is available in the private market, it is offered on terms 
that the industry just cannot afford. My bill would mandate the 
continuation of this vital program through August 31, 2008. In time, we 
should expect the private market to offer this coverage, but the 
reality is that the insurance industry continues to seek exorbitant 
rates for this coverage. The market has failed and it is the 
government's responsibility to provide this insurance as we have done 
in previous times of war.
  The financial conditions faced by domestic airlines have seen little, 
if any, improvement. This legislation is supported by the low-cost 
carriers who are the healthiest companies in the industry, as they know 
that their profitability would be at risk if they were forced to go to 
commercial market for this insurance at this time. The current 
commercial market is simply unable to provide adequate war-risk 
coverage without unreasonable cost to airlines. For airlines, private 
coverage would mean annual payment increases of millions of dollars. 
Even with FAA insurance coverage, airlines are projected to lose $5.5 
billion this year. This legislation will help the airlines weather 
their current financial crisis. If U.S. airlines were forced to go to 
the commercial market for this insurance, we would likely see more 
airlines in bankruptcy or cease to exist at all.
  I believe that airlines remain a prime targets for terrorist acts. It 
is because of this threat that the commercial insurance market is 
unaffordable for the airlines. My legislation seeks to address a 
pressing problem facing one of the most critical industries in the 
country. My bill is one small but important measure that Congress can 
take to make sure our nation has a vibrant and financially secure 
airline industry.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1102

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

     SECTION 1. EXTENSION OF AIRLINE WAR RISK POLICIES AND 
                   TERRORISM COVERAGE.

       (a) Extension of Policies.--Section 44302(f) of title 49, 
     United States Code, is amended by striking ``August 31, 2005, 
     and may extend through December 31, 2005,'' in paragraph (1) 
     and inserting ``August 31, 2008, and may extend through 
     December 31, 2008,''.
       (b) Extension of Terrorism Coverage.--Section 44303(b) of 
     title 49, United States Code, is amended by striking 
     ``December 31, 2005,'' and inserting ``December 31, 2008,''.
                                 ______
                                 
      By Mr. BAUCUS (for himself, Mr. Grassley, Mr. Wyden, Mr. Kyl, Mr. 
        Schumer, Mr. Crapo, Mr. Pryor, Mr. Jeffords, and Mr. Frist):
  S. 1103. A bill to amend the Internal Revenue Code of 1986 to repeal 
the individual alternative minimum tax; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, this weekend, millions of Americans 
watched in suspense as Anakin Skywalker was lured to the Dark side and 
became Darth Vader. What millions of those same Americans may not be 
aware of is another Darth Vader lurking in our tax code; that is, the 
Alternative Minimum Tax, or AMT.
  The AMT has many of the same qualities as Anakin Skywalker. The AMT 
was supposed to bring order and fairness to the tax world, but it 
eventually got off on the wrong path and became a threat to middle-
income taxpayers. Both Skywalker and the AMT started off with great 
intentions, but eventually they went astray. And now we have the Darth 
Vader of the Tax Code bearing down on millions of unsuspecting 
families.
  That is why I am pleased to join with my friend and Chairman Chuck 
Grassley, and our fellow committee colleagues, Senators Wyden and Kyl, 
to introduce legislation today that will repeal the individual AMT. Our 
bill simply says that individuals beginning January 1, 2006 will owe 
zero, I repeat, zero dollars under the AMT. Further, our bill provides 
that individuals with AMT credits can continue to use those up to 90 
percent of their regular tax liability.
  If we do not act, CRS estimates that in 2006, the family-unfriendly 
AMT will hit middle-income families earning $63,000 with three 
children. What was once meant to ensure that a handful of millionaires 
did not eliminate all taxes through excessive deductions is now meaning 
millions of working families, including thousands in my home State of 
Montana, are subject to a higher stealth tax. It is truly bizarre, Mr. 
Chairman, that we have designed a tax deeming more children ``excessive 
deductions'' and duly paying your State taxes a bad thing. Already, 
5,000 Montana families pay a higher tax because of the AMT. But this 
number could multiply many times over if we do not act soon.
  Not only is the AMT unfair and poorly targeted, it is an awful mess 
to figure out. The Finance Committee heard testimony today from our 
National Taxpayer Advocate, who has singled out this item as causing 
the most complexity for individual taxpayers, and also from a tax 
practitioner who has seen first-hand how difficult this is for her 
clients. We heard also from other witnesses who said it is time for 
repeal of the AMT.
  Of course, repeal does not come without cost and that cost is 
significant even if we assume the 2001 and 2003 tax cuts are not 
extended. We are committed to working together to identify reasonable 
offsets. Certainly, I do not think we want a tax system unfairly 
placing a higher tax burden on millions of middle-income families with 
children. But it does not serve those families either if our budget 
deficit is significantly worse.
  Again, I look forward to working with my colleagues on this AMT 
repeal bill will put an end to the Darth Vader of the tax code, without 
any sequels.
                                 ______
                                 
      By Mrs. CLINTON (for herself, Mr. Chafee, Mr. Nelson of Florida, 
        Ms. Collins, Mr. Bingaman, and Ms. Cantwell):
  S. 1104. A bill to amend titles XIX and XXI of the Social Security 
Act to provide States with the option to cover certain legal immigrants 
under the medicaid and State children's health insurance programs; to 
the Committee on Finance.
  Mrs. CLINTON. Mr. President, I rise to introduce legislation that 
would allow States to use Federal funds to provide critical healthcare 
services to pregnant women and children. I want to thank Senator Chafee 
for his leadership on this important issue. I also

[[Page 10874]]

want to recognize former Senator Bob Graham and the late Senator John 
Chafee, who championed this legislation for many years. Their 
commitment laid the groundwork for our bill introduction today.
  This bill, the Immigrant Children's Health Improvement Act, is 
fundamentally about three things--fairness, fiscal relief, and 
financial savings.
  I will start with fairness. All across New York and America, legal 
immigrants work hard, pay taxes, and exercise their civic 
responsibilities. I see examples of this every day in New York. They 
fight for our country in the military. They contribute to our Nation's 
competitiveness and economic growth. They help revitalize neighborhoods 
and small towns across the country. And most are fiercely proud to call 
themselves Americans.
  Yet, in 1996, Congress denied safety net services to legal immigrants 
who had been in the country for less than 5 years. Today, Senator 
Chafee and I are here to introduce legislation that would take a first 
step towards correcting that injustice. The Immigrant Children's Health 
Improvement Act will allow States to use, Federal funds to make SCHIP, 
(the State Children's Health Improvement Program, and Medicaid 
available to pregnant women and children who are legal immigrants 
within the 5-year ban.
  There is tremendous need for this legislation. An Urban Institute 
study found that children of immigrants are three times as likely to be 
in fair or poor health. While most children receive preventative 
medicine, such as vaccines, too often immigrant children do not. They 
are forced to receive their healthcare via emergency rooms--the least 
cost-effective place to provide care. To make matters worse, minor 
illnesses, which would be easily treated by a pediatrician, may 
snowball into life-threatening conditions.
  This legislation is also a matter of good fiscal policy. Today, 19 
States, including New York and Rhode Island, plus the District of 
Columbia, use State funds to provide healthcare services to legal 
immigrants within the 5-year waiting period. According to the most 
recent estimates from the Congressional Budget Office, at least 155,000 
children and 60,000 adults are receiving these benefits. A total of 
387,000 recent legal immigrants would be eligible to receive these 
services if their States opt to take advantage of the program.
  And finally, this bill is about long-term healthcare cost savings. 
According to the National Bureau of Economic Research, covering 
uninsured children and pregnant women through Medicaid can reduce 
unnecessary hospitalization by 22 percent. Pregnant women who forgo 
prenatal care are likely to develop complications during pregnancy, 
which results in higher costs for postpartum care. And women without 
access to prenatal care are four times more likely to deliver low birth 
weight infants and seven times more likely to deliver prematurely than 
women who receive prenatal care, according to the Institute of 
Medicine. All of these health outcomes are costly to society and to the 
individuals involved.
  Thank you for allotting me this time to speak on such an urgent 
matter. I look forward to working with you and the rest of my 
colleagues to enact this bill into law in the near future.
                                 ______
                                 
      By Mr. DODD (for himself, Mr. Cochran, Mr. Levin, Mr. Kennedy, 
        and Mr. Akaka):
  S. 1105. A bill to amend title VI of the Higher Education Act of 1965 
regarding international and foreign language studies; to the Committee 
on Health, Education, Labor, and Pensions.
  Mr. DODD. Mr. President, I rise today with Senators Cochran, Levin, 
Kennedy and Akaka to introduce The International and Foreign Language 
Studies Act of 2005.
  In recent years, foreign language needs have significantly increased 
throughout the Federal Government due to the presence of a wider range 
of security threats, the emergence of new nation states, and the 
globalization of the U.S. economy. Likewise, American business 
increasingly needs internationally experienced employees to compete in 
the global economy and to manage a culturally diverse workforce.
  Currently, the U.S. government requires 34,000 employees with foreign 
language skills across 70 Federal agencies. These agencies have stated 
over the last few years, that translator and interpreter shortfalls 
have adversely affected agency operations and hindered U.S. military, 
law enforcement, intelligence, and diplomatic efforts.
  Despite our growing needs, the number of undergraduate foreign 
language degrees conferred is only one percent of all degrees. Only one 
third of undergraduates report that they are taking foreign language 
courses and only 11 percent report that they have studied abroad.
  At a time when our security needs are more important than ever, at a 
time when our economy demands that we enter new markets, and at a time 
when the world requires us to engage in diplomacy in more thoughtful 
and considered ways, it is extremely important that we have at our 
disposal a multilingual, multicultural, internationally experienced 
workforce. The Dodd-Cochran International and Foreign Language Studies 
Act attempts to do this in a number of ways.
  The Dodd-Cochran International and Foreign Language Studies Act will 
increase undergraduate study abroad as a means to enhance foreign 
language proficiency and deepen cultural knowledge. The bill will 
reinstate undergraduate eligibility for Foreign Language and Area 
Studies Fellowships. The bill will encourage the Department of 
Education to engage in the collection, analysis and dissemination of 
data on international education and foreign language needs so that we 
know and understand exactly what our needs in this area are. Within the 
Institute for International and Public Policy, the bill provides 
scholarships and creates an ``expert track'' for doctoral students in 
critical areas, disciplines and languages. And, most importantly, the 
Dodd-Cochran bill will demonstrate our nation's commitment to 
increasing the foreign language proficiency and international expertise 
of our citizens by increasing the amount appropriated to international 
education, including international business education, to allow for 
more opportunities for more students.
  The Higher Education Act authorizes the Federal Government's major 
activities as they relate to financial assistance for students 
attending colleges and universities. It provides aid to institutions of 
higher education, services to help students complete high school and 
enter and succeed in postsecondary education, and mechanisms to improve 
the training of our emerging workforce. This bill will help fulfill 
that mission.
  Foreign language skills and international study are vital to secure 
the future economic welfare of the United States in an increasingly 
international economy. Foreign language skills and international study 
are also vital for the nation to meet 21st century security challenges 
properly and effectively, especially in light of the terrorist attacks 
on September 11, 2001.
  I hope our colleagues who are not cosponsoring this bill will give it 
serious consideration. By working together, I believe that the Senate 
as a body can act to ensure that we strengthen our Nation's security 
and economy by capitalizing on the talents and dreams of those who wish 
to enter the international arena.
  Mr. KENNEDY. Mr. President, it is a privilege to join my colleagues 
Senators Dodd, Cochran, Levin and Akaka in introducing the 
International and Foreign Languages Studies Act to increase study 
abroad and increase foreign language study here at home for 
undergraduate and graduate students.
  The study of foreign language and foreign cultures is more important 
than ever. Yet in 2003, the number of fellowships awarded for such 
studies was 30 percent less than the high point in 1967. Only 40 
percent of undergraduates report taking any foreign language coursework 
and only 20 percent have studied abroad.
  Learning another language is more than a desirable educational goal. 
It is a national security goal as well. We

[[Page 10875]]

need more students to pursue other languages, especially the lesser 
taught languages like Chinese, Japanese, Farsi, Dari Persian and 
Arabic, which will be critical for international business as well as 
for national defense.
  In addition to supporting language studies, the bill builds bridges 
with overseas universities to promote research and training abroad for 
American students. It supports the expansion of the Centers for 
International Business Education, and increases the scope of the 
Institute for International and Public Policy by creating an 
accelerated track for PhD students in key areas.
  This bill is an important part of America's participation in 
globaliza-
tion, and I urge my colleagues to strongly support it.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Salazar):
  S. 1106. A bill to authorize the construction of the Arkansas Valley 
Conduit in the State of Colorado, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mr. ALLARD. Mr. President, it is with much excitement and 
anticipation that I, along with Congresswoman Marilyn Musgrave in the 
House of Representatives, introduce legislation known as ``The Arkansas 
Valley Conduit.'' This bill will ensure the expedited construction of a 
pipeline that will provide the small, financially strapped towns and 
water agencies along the Arkansas River with safe, clean, affordable 
water. By creating a Federal-Local cost share to help offset the costs 
of constructing the Conduit, this legislation will protect the future 
of Southeastern Colorado. First introduced during the 107th Session of 
Congress and subsequently in the 108th, we have redrafted the 
legislation for the 109th Session to create a stronger stand-alone 
bill. Congresswoman Musgrave and I have worked hard to craft it so that 
it meets the needs of a region of Colorado that has suffered from 
decades of inadequate drinking water supplies. On the heels of one of 
the worst droughts in Colorado history, the Conduit will provide a 
dependable source of water to communities--water that will allow these 
communities to grow and prosper.
  By way of background, the Arkansas Valley Conduit was originally 
authorized by Congress forty years ago as a part of the Fryingpan-
Arkansas Project. Due to the authorizing statute's lack of a cost share 
provision and Southeastern Colorado's depressed economic status, the 
Conduit was never built. Until recently, the region has been fortunate 
to enjoy an economical and safe alternative to pipeline-transportation 
of Project Water: the Arkansas River. Sadly, the water quality in the 
Arkansas has degraded to a point where it is no longer economical to 
use as a means of transport. At the same time, the Federal Government 
has continued to strengthen its unfunded water quality standards.
  Several years ago, in an effort to resurrect the Conduit, Senator Ben 
Nighthorse Campbell and I worked to secure $200,000 for a Bureau of 
Reclamation Re-evaluation Statement on the project. Thanks to this 
effort, the people of the valley began to realize that the Conduit may 
one day be more than just a pipedream, and that Congress was serious 
about fulfilling the promise of the Fryingpan-Arkansas Project.
  Our legislation calls for a 80/20 Federal/Local cost share. This is a 
sizeable sum, but is a far cry from the estimated $640 million it would 
take to build new treatment facilities for each of the communities if 
the Conduit was not built. It requires cooperation of the Department of 
the Interior, U.S. Army Corps of Engineers and local project 
participants.
  The Arkansas Valley Conduit will deliver fresh, clean water to dozens 
of valley communities and tens-of-thousands of people along the river. 
Local community participants continue to explore options for financing 
their share of the costs, and are working hard to develop the 
organization that will oversee the Conduit project. I applaud those in 
the community who have worked so hard for the past several years to 
make the Conduit a reality. Upon its completion, it will stand as 
testament to a pioneering vision and commitment to sensible water 
policy.
  With the help of my colleagues, the promise made by Congress forty 
years ago to the people of Southeastern Colorado, will finally become a 
reality.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1106

       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 ``Arkansas Valley Conduit 
     Act''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) Public Law 87-590 (76 Stat. 389) authorized the 
     Fryingpan-Arkansas project, including construction of the 
     Arkansas Valley Conduit, a pipeline extending from Pueblo 
     Reservoir, Pueblo, Colorado to Lamar, Colorado;
       (2) the Arkansas Valley Conduit was never built, partly 
     because of the inability of local communities to pay 100 
     percent of the costs of construction of the Arkansas Valley 
     Conduit;
       (3) in furtherance of the goals and authorization of the 
     Fryingpan-Arkansas project, it is necessary to provide 
     separate authorization for the construction of the Arkansas 
     Valley Conduit;
       (4) the construction of the Arkansas Valley Conduit is 
     necessary for the continued viability of southeast Colorado; 
     and
       (5) the Arkansas Valley Conduit would provide the 
     communities of southeast Colorado with safe, clean, and 
     affordable water.
       (b) Purposes.--The purposes of this Act are--
       (1) to ensure a safe and adequate water supply for the 
     beneficiaries identified in Public Law 87-590 (76 Stat. 389) 
     and related authorizing documents and subsequent studies; and
       (2) to establish a cost-sharing requirement for the 
     construction of the Arkansas Valley Conduit.

     SEC. 3. ARKANSAS VALLEY CONDUIT, COLORADO.

       (a) In General.--The Secretary of the Interior (referred to 
     in this Act as the ``Secretary'') shall plan, design, and 
     construct a water delivery pipeline, and branch lines as 
     needed, from a location in the vicinity (as determined by the 
     Secretary) of Pueblo Reservoir, Pueblo, Colorado to a 
     location in the vicinity (as determined by the Secretary) of 
     Lamar, Colorado, to be known as the ``Arkansas Valley 
     Conduit'', without regard to the cost-ceiling for the 
     Fryingpan Arkansas Project established under section 7 of 
     Public Law 87-590 (76 Stat. 393).
       (b) Lead Non-Federal Entity.--
       (1) Designation.--The Southeastern Colorado Water 
     Conservancy District, or a designee of the Southeastern 
     Colorado Water Conservancy District that is recognized under 
     State law as an entity that has taxing authority, shall be 
     the lead non-Federal entity for the Arkansas Valley Conduit.
       (2) Duties.--The lead non-Federal entity shall--
       (A) act as the official agent of the Arkansas Valley 
     Conduit;
       (B) pay--
       (i) the non-Federal share of any increased costs required 
     under subsection (e)(2)(C); and
       (ii) the non-Federal share of construction costs under 
     subsection (e)(2); and
       (C) pay costs relating to, and perform, the operations, 
     maintenance, and replacement of the Arkansas Valley Conduit.
       (c) Cooperation.--To the maximum extent practicable during 
     the planning, design, and construction of the Arkansas Valley 
     Conduit, the Secretary shall collaborate and cooperate with 
     the United States Army Corps of Engineers, other Federal 
     agencies, and non-Federal entities.
       (d) Cost Estimate.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary, in cooperation with the 
     lead non-Federal entity, shall prepare an estimate of the 
     total costs of constructing the Arkansas Valley Conduit.
       (2) Actual costs.--If the actual costs of construction 
     exceed the estimated costs, the difference between the actual 
     costs and the estimated costs shall be apportioned in 
     accordance with subsection (e)(2)(C).
       (3) Agreement on estimate and design.--The estimate 
     prepared under paragraph (1), and the final design for the 
     Arkansas Valley Conduit, shall be--
       (A) subject to the agreement of the Secretary and the lead 
     non-Federal entity;
       (B) developed in cooperation with the lead non-Federal 
     entity; and
       (C) consistent with commonly accepted engineering 
     practices.
       (e) Cost-sharing Requirement.--
       (1) Federal share.--
       (A) In general.--The Federal share of the total costs of 
     the planning, design, and construction of the Arkansas Valley 
     Conduit shall be 80 percent.
       (B) Increased costs.--The Federal share of any increased 
     costs that are a result of fundamental design changes 
     conducted at the

[[Page 10876]]

     request of any person other than the lead non-Federal entity 
     shall be 100 percent.
       (2) Non-federal share.--
       (A) Non-federal share.--The non-Federal share of the total 
     costs of the planning, design, and construction of the 
     Arkansas Valley Conduit shall be 20 percent.
       (B) Form.--Up to 100 percent of the non-Federal share may 
     be in the form of in-kind contributions or tasks that are 
     identified in the cost estimate prepared under subsection 
     (d)(1) as necessary for the planning, design, and 
     construction of the Arkansas Valley Conduit.
       (C) Increased costs.--
       (i) Fundamental design changes.--The lead non-Federal 
     entity shall pay any increased costs that are a result of 
     fundamental design changes conducted at the request of the 
     lead non-Federal entity.
       (ii) Other causes.--For any increased costs that are from 
     causes (including increased supply and labor costs and 
     unforseen field changes) other than fundamental design 
     changes referred to in clause (i) and paragraph (1)(B)--

       (I) the Federal share shall be 80 percent; and
       (II) the non-Federal share shall be 20 percent.

       (D) Up-front payment.--Not later than 180 days after the 
     date of completion of the cost-estimate under subsection (d), 
     the Secretary and the non-Federal entity may enter into an 
     agreement under which--
       (i) the Secretary pays 100 percent of the non-Federal share 
     on behalf of the non-Federal entity; and
       (ii) the non-Federal entity reimburses the Secretary for 
     the funds paid by the Secretary in accordance with the terms 
     of the agreement.
       (E) Timing.--Except as provided in subparagraph (D), the 
     non-Federal share shall be paid in accordance with a schedule 
     established by the Secretary that--
       (i) takes into account the capability of the applicable 
     non-Federal entities to pay; and
       (ii) provides for full payment of the non-Federal share by 
     a date that is not later than 50 years after the date on 
     which the Arkansas Valley Conduit is capable of delivering 
     water.
       (f) Transfer on Completion.--On completion of the Arkansas 
     Valley Conduit, as certified in an agreement between the 
     Secretary and the lead non-Federal entity, the Secretary 
     shall transfer ownership of the Arkansas Valley Conduit to 
     the lead non-Federal entity.
       (g) Applicable Law.--Except as provided in this Act, Public 
     Law 87-590 (76 Stat. 389) and related authorizing documents 
     and subsequent studies shall apply to the planning, design, 
     and construction of the Arkansas Valley Conduit.
       (h) Water Rights.--Nothing in this Act affects any State 
     water law or interstate compact.

     SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     such sums as are necessary to carry out this Act.
       (b) Limitation.--Amounts made available under subsection 
     (a) shall not be used for the operation or maintenance of the 
     Arkansas Valley Conduit.
                                 ______
                                 
      By Mr. ENZI (for himself and Mr. Kennedy):
  S. 1107. A bill to reauthorize the Head Start Act, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. ENZI. Mr. President, I rise today to introduce the Head Start 
Improvements for School Readiness Act with my colleague, Senator 
Kennedy.
  This legislation would reauthorize the Head Start program and make 
important improvements to the Head Start Act and help ensure that 
today's children receiving services by this important program will be 
better prepared for success in the future. Success in life depends a 
great deal on the preparation for that success, which comes early in 
life. It is well documented in early childhood education research that 
students who are not reading well by the third grade will struggle with 
reading most of their lives. That is why the Head Start program is so 
important. Head Start provides early education for thousands of 
children each year, most of whom would not have the opportunity to 
attend preschool programs elsewhere.
  The Head Start program is important generally, but there is some room 
for improvement. Earlier this year the Senate Committee on Health, 
Education, Labor and Pensions held a hearing on the administration of 
the Head Start program, and found that a number of changes might help 
improve the performance of the program overall.
  The first change required by this program would be providing for all 
Head Start grantees found to have a deficiency to recompete the next 
time the program's grant is up for renewal. The bill would also require 
grantees to recompete if they have not resolved issues of noncompliance 
within 120 days, or a longer time specified by the Secretary of Health 
and Human Services. This will create an important incentive for 
programs to operate at their best, which is in the best interest of our 
children.
  The bill would also shorten the timeline for programs to be 
terminated. In some instances, Head Start grantees have been found to 
be operating programs that are unsafe, or improperly using Federal 
funds. In these cases, the Administration has acted to terminate these 
programs. Unfortunately, under the law, Head Start grantees have been 
able to appeal these rulings. This process can be lengthy, some 
examples exceed 600 days, or almost two years, before a final ruling is 
made. In order to address this issue, and put the health and education 
of children first, the legislation we introduce today would limit the 
time available for Head Start grantees to appeal decisions made by the 
Secretary to terminate grants.
  A third improvement is to clarify the role of the governing body and 
policy councils in individual Head Start programs. After careful 
review, the Committee found that many of the important fiscal and legal 
responsibilities of Head Start grantees were not explicitly assigned to 
either the policy council or the governing body, or in many instances, 
were assigned equally to both. In order to clarify the shared 
governance model, the bill we introduce today would clarify the 
responsibilities of the governing body and the policy council for each 
Head Start grantee. We believe this will lead to more consistent, high 
quality fiscal and legal management, which will ensure these programs 
are serving children in the best way they can.
  I wish to thank my colleagues on the Committee, particularly Senator 
Kennedy, for their help in drafting this bipartisan legislation to 
reauthorize the Head Start Act. I believe the legislation we are 
introducing today will improve the quality and effectiveness of the 
Head Start program for generations of children to come.
  I ask unanimous consent that a copy of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1107

       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 ``Head Start Improvements for 
     School Readiness Act''.

     SEC. 2. STATEMENT OF PURPOSE.

       Section 636 of the Head Start Act (42 U.S.C. 9831) is 
     amended by inserting ``educational instruction in prereading 
     skills, premathematics skills, and language and through'' 
     after ``low-income children through''.

     SEC. 3. DEFINITIONS.

       Section 637 of the Head Start Act (42 U.S.C. 9832) is 
     amended--
       (1) in paragraph (2), by inserting ``(including a 
     community-based organization)'' after ``nonprofit'';
       (2) in paragraph (3)(C), by inserting ``, including 
     financial literacy,'' after ``Parent literacy'';
       (3) in paragraph (17), by striking ``Mariana Islands,'' and 
     all that follows and inserting ``Mariana Islands.''; and
       (4) by adding at the end the following:
       ``(18) The term `homeless child' means a child described in 
     section 725(2) of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11434a(2)).
       ``(19) The term `limited English proficient', used with 
     respect to a child, means a child--
       ``(A) who is enrolled or preparing to enroll in a Head 
     Start program, Early Head Start program, or other early care 
     and education program;
       ``(B)(i) who was not born in the United States or whose 
     native language is a language other than English;
       ``(ii)(I) who is a Native American, Alaska Native, or a 
     native resident of a United States territory; and
       ``(II) who comes from an environment where a language other 
     than English has had a significant impact on the child's 
     level of English language proficiency; or
       ``(iii) who is migratory, whose native language is a 
     language other than English, and who comes from an 
     environment where a language other than English is dominant; 
     and
       ``(C) whose difficulty in speaking or understanding the 
     English language may be sufficient to deny such child--

[[Page 10877]]

       ``(i) the ability to successfully achieve in a classroom in 
     which the language of instruction is English; or
       ``(ii) the opportunity to participate fully in society.
       ``(20) The term `deficiency' means--
       ``(A) a systemic or substantial failure of an 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 operations;
       ``(iii) a failure to comply with standards related to early 
     childhood development and health services, family and 
     community partnerships, or program design and management;
       ``(iv) the misuse of funds under this subchapter;
       ``(v) loss of legal status 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 Federal or State 
     requirement that the agency has shown an unwillingness or 
     inability to correct, after notice from the Secretary, within 
     the period specified;
       ``(B) systemic failure of the board of directors of an 
     agency to fully exercise its legal and fiduciary 
     responsibilities;
       ``(C) substantial failure of an agency to meet the 
     administrative requirements of section 644(b);
       ``(D) failure of an agency to demonstrate that the agency 
     attempted to meet the coordination and collaboration 
     requirements with entities described in section 
     640(a)(5)(D)(iii)(I); or
       ``(E) having an unresolved area of noncompliance.
       ``(21) The term `unresolved area of noncompliance' means 
     failure to correct a noncompliance item within 120 days, or 
     within such additional time (if any) authorized by the 
     Secretary, after receiving from the Secretary notice of such 
     noncompliance item, pursuant to section 641A(d).''.

     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 OF APPROPRIATIONS.

       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 
     $7,215,000,000 for fiscal year 2006, $7,515,000,000 for 
     fiscal year 2007, $7,815,000,000 for fiscal year 2008, and 
     such sums as may be necessary for each of fiscal years 2009 
     and 2010.
       ``(b) Specific Programs.--From the amount appropriated 
     under subsection (a), the Secretary shall make available to 
     carry out research, demonstration, and evaluation activities, 
     including longitudinal studies under section 649, not more 
     than $20,000,000 for fiscal year 2006, and such sums as may 
     be necessary for each of fiscal years 2007 through 2010, of 
     which not more than $7,000,000 for each of fiscal years 2006 
     through 2010 shall be available to carry out impact studies 
     under section 649(g).''.

     SEC. 6. ALLOTMENT OF FUNDS.

       (a) Allotment.--Section 640(a) of the Head Start Act (42 
     U.S.C. 9835(a)) is amended--
       (1) in paragraph (2)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Indian Head Start programs, services for children 
     with disabilities, and migrant and seasonal Head Start 
     programs, except that--
       ``(i) subject to the availability of appropriations, the 
     Secretary shall reserve for each fiscal year for use by 
     Indian Head Start and migrant and seasonal Head Start 
     programs (referred to in this subparagraph as `covered 
     programs'), on a nationwide basis, a sum that is the total of 
     not less than 4 percent of the amount appropriated under 
     section 639 for that fiscal year (for Indian Head Start 
     programs), and not less than 5 percent of that appropriated 
     amount (for migrant and seasonal Head Start programs), except 
     that--
       ``(I) if reserving the specified percentages for Indian 
     Head Start programs and migrant and seasonal Head Start 
     programs would reduce the number of children served by Head 
     Start programs, relative to the number of children served on 
     the date of enactment of the Head Start Improvements for 
     School Readiness Act, taking into consideration an 
     appropriate adjustment for inflation, the Secretary shall 
     reserve percentages that approach, as closely as practicable, 
     the specified percentages and that do not cause such a 
     reduction; and
       ``(II) notwithstanding any other provision of this 
     subparagraph, the Secretary shall reserve for each fiscal 
     year for use by Indian Head Start programs and by migrant and 
     seasonal Head Start programs, on a nationwide basis, not less 
     than the amount that was obligated for use by Indian Head 
     Start programs and by migrant and seasonal Head Start 
     programs for the previous fiscal year;
       ``(ii) after ensuring that each grant recipient for a 
     covered program has received an amount sufficient to enable 
     the grant recipient to serve the same number of children in 
     Head Start programs as were served by such grant recipient on 
     the date of enactment of the Head Start Improvements for 
     School Readiness Act, taking into consideration an 
     appropriate adjustment for inflation, and after allotting the 
     funds reserved under paragraph (3)(A) as specified in 
     paragraph (3)(D), the Secretary shall distribute the 
     remaining funds available under this subparagraph for covered 
     programs, by--
       ``(I) distributing 65 percent of the remainder by giving 
     priority to grant recipients in the States serving the 
     smallest percentages of eligible children (as determined by 
     the Secretary); and
       ``(II) distributing 35 percent of the remainder on a 
     competitive basis;'';
       (B) by striking subparagraph (C) and inserting the 
     following:
       ``(C) training and technical assistance activities that are 
     sufficient to meet the needs associated with program 
     expansion and to foster program and management improvement 
     activities as described in section 648, in an amount for each 
     fiscal year that is equal to 2 percent of the amount 
     appropriated under section 639 for such fiscal year, of 
     which--
       ``(i) 50 percent shall be made available to Head Start 
     agencies to use directly, or by establishing local or 
     regional agreements with community experts, colleges and 
     universities, or private consultants, for any of the 
     following training and technical assistance activities, 
     including--
       ``(I) activities that ensure that Head Start programs meet 
     or exceed the program performance standards described in 
     section 641A(a)(1);
       ``(II) activities that ensure that Head Start programs have 
     adequate numbers of trained, qualified staff who have skills 
     in working with children and families, including children and 
     families who are limited English proficient and children with 
     disabilities;
       ``(III) activities to pay expenses, including direct 
     training for expert consultants working with any staff, to 
     improve the management and implementation of Head Start 
     services and systems;
       ``(IV) activities that help ensure that Head Start programs 
     have qualified staff who can promote language skills and 
     literacy growth of children and who can provide children with 
     a variety of skills that have been identified as predictive 
     of later reading achievement, school success, and other 
     educational skills described in section 641A;
       ``(V) activities to improve staff qualifications and to 
     assist with the implementation of career development programs 
     and to encourage the staff to continually improve their 
     skills and expertise, including developing partnerships with 
     programs that recruit, train, place, and support college 
     students in Head Start centers to deliver an innovative early 
     learning program to preschool children;
       ``(VI) activities that help local programs ensure that the 
     arrangement, condition, and implementation of the learning 
     environments in Head Start programs are conducive to 
     providing effective program services to children and 
     families;
       ``(VII) activities to provide training necessary to improve 
     the qualifications of Head Start staff and to support staff 
     training, child counseling, health services, and other 
     services necessary to address the needs of children enrolled 
     in Head Start programs, including children from families in 
     crises, children who experience chronic violence or 
     homelessness, and children who experience substance abuse in 
     their families, and children under 3 years of age, where 
     applicable;
       ``(VIII) activities to provide classes or in-service-type 
     programs to improve or enhance parenting skills, job skills, 
     adult and family literacy, including financial literacy, or 
     training to become a classroom aide or bus driver in a Head 
     Start program;
       ``(IX) additional activities deemed appropriate to the 
     improvement of Head Start agencies' programs, as determined 
     by the agencies' technical assistance and training plans; or
       ``(X) any other activities regarding the use of funds as 
     determined by the Secretary;
       ``(ii) 50 percent shall be made available to the Secretary 
     to support a regional or State system of early childhood 
     education training and technical assistance, and to assist 
     local programs (including Indian Head Start programs and 
     migrant and seasonal Head Start programs) in meeting the 
     standards described in section 641A(a)(1); and
       ``(iii) not less than $3,000,000 of the amount in clause 
     (ii) appropriated for such fiscal year shall be made 
     available to carry out activities described in section 
     648(d)(4);'';
       (C) in subparagraph (D), by striking ``agencies;'' and 
     inserting ``agencies);''; and
       (D) by adding at the end of the flush matter at the end the 
     following: ``The Secretary shall require each Head Start 
     agency to report at the end of each budget year on how funds 
     provided to carry out subparagraph (C)(i) were used.'';
       (2) in paragraph (3)--
       (A) in subparagraph (A)(i)(I)--
       (i) by striking ``60 percent of such excess amount for 
     fiscal year 1999'' and all that follows through ``2002, 
     and''; and
       (ii) by inserting before the semicolon the following: ``, 
     30 percent of such excess

[[Page 10878]]

     amount for fiscal year 2006, and 40 percent of such excess 
     amount for each of fiscal years 2007 through 2010'';
       (B) in subparagraph (B)--
       (i) in clause (i), by striking ``performance standards'' 
     and all that follows and inserting ``standards and measures 
     pursuant to section 641A.'';
       (ii) by striking clause (ii) and inserting the following:
       ``(ii) Ensuring that such programs have adequate numbers of 
     qualified staff, and that such staff is furnished adequate 
     training, including training to promote the development of 
     language skills, premathematics skills, and prereading in 
     young children and in working with limited English proficient 
     children, children in foster care, children referred by child 
     welfare services, and children with disabilities, when 
     appropriate.'';
       (iii) by striking clause (iii) and inserting the following:
       ``(iii) Developing and financing the salary scales and 
     benefits standards 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) by striking clause (iv) and inserting the following:
       ``(iv) Using salary increases to--
       ``(I) assist with the implementation of quality programs 
     and improve staff qualifications;
       ``(II) 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, as well as additional skills 
     identified in section 641A(a)(1)(B)(ii); and
       ``(III) 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) in clause (v), by inserting ``, including 
     collaborations to increase program participation by 
     underserved populations of eligible children'' before the 
     period; and
       (vi) by striking clauses (vii) and (viii) and inserting the 
     following:
       ``(vii) 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.
       ``(viii) Promoting the regular attendance and stability of 
     all Head Start children with particular attention to highly 
     mobile children, including children from migrant and seasonal 
     farmworking families (where appropriate), homeless children, 
     and children in foster care.
       ``(ix) Making such other improvements in the quality of 
     such programs as the Secretary may designate.'';
       (C) in subparagraph (C)--
       (i) in clause (i)(I), by striking the last sentence and 
     inserting ``Salary increases, in excess of cost-of-living 
     allowances, provided with such funds shall be subject to the 
     specific standards governing salaries and salary increases 
     established pursuant to section 644(a).'';
       (ii) in clause (ii)--

       (I) in the matter preceding subclause (I), by striking 
     ``education performance'' and inserting ``additional 
     educational'';
       (II) in subclause (I), by inserting ``, prereading,'' after 
     ``language'';
       (III) by striking subclause (II) and inserting the 
     following:

       ``(II) to help limited English proficient children attain 
     the knowledge, skills, and development specified in section 
     641A(a)(1)(B)(ii) and to promote the acquisition of the 
     English language by such children and families;''; and

       (IV) by striking subclause (IV) and inserting the 
     following:

       ``(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, homeless 
     children, children in foster care, children referred to Head 
     Start programs by child welfare agencies, and children who 
     are exposed to chronic violence or substance abuse.'';
       (iii) in clause (iii), by inserting ``, educational staff 
     who have the qualifications described in section 648A(a),'' 
     after ``ratio'';
       (iv) in clause (v), by striking ``programs, including'' and 
     all that follows and inserting ``programs.'';
       (v) by redesignating clause (vi) as clause (ix); and
       (vi) by inserting after clause (v) the following:
       ``(vi) To conduct outreach to homeless families in an 
     effort to increase the program participation of eligible 
     homeless children.
       ``(vii) To conduct outreach to migrant and seasonal 
     farmworking families and families with limited English 
     proficient children.
       ``(viii) To partner with institutions of higher education 
     and nonprofit organizations, including community-based 
     organizations, that recruit, train, place, and support 
     college students to serve as mentors and reading coaches to 
     preschool children in Head Start programs.
       ``(ix) To upgrade the qualifications and skills of 
     educational personnel to meet the professional standards 
     described in section 648A(a)(1), including certification and 
     licensure as bilingual education teachers and for other 
     educational personnel who serve limited English proficient 
     students.'';
       (3) in paragraph (4)--
       (A) in subparagraph (A), by striking ``1998'' and inserting 
     ``2005''; and
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) any amount available after all allotments are made 
     under subparagraph (A) for such fiscal year shall be 
     distributed as follows:
       ``(i) Each State shall receive an amount sufficient to 
     serve the same number of children in Head Start programs in 
     each State as were served on the date of enactment of the 
     Head Start Improvements for School Readiness Act, taking into 
     consideration an appropriate adjustment for inflation.
       ``(ii) After ensuring that each State has received the 
     amount described in clause (i) and after allotting the funds 
     reserved under paragraph (3)(A) as specified in paragraph 
     (3)(D), the Secretary shall distribute the remaining balance, 
     by--
       ``(I) distributing 65 percent of the balance by giving 
     priority to States serving the smallest percentages of 
     eligible children (as determined by the Secretary); and
       ``(II) distributing 35 percent of the balance on a 
     competitive basis.'';
       (4) in paragraph (5)--
       (A) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (F) and (G), respectively; and
       (B) by striking subparagraphs (B), (C), and (D) and 
     inserting the following:
       ``(B)(i) From the reserved sums, the Secretary shall award 
     a collaboration grant to each State to facilitate 
     collaboration between Head Start agencies and entities 
     (including the State) that carry out other activities 
     designed to benefit low-income families and children from 
     birth to school entry.
       ``(ii) Grants described in clause (i) shall be used to--
       ``(I) encourage Head Start agencies 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;
       ``(II) encourage Head Start agencies to coordinate 
     activities 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 entities providing resources and referral 
     services in the State to make full-working-day and full 
     calendar year services available to children;
       ``(III) promote alignment of Head Start services with State 
     early learning and school readiness goals and standards, 
     including the Head Start child outcome framework;
       ``(IV) promote better linkages between Head Start agencies 
     and other child and family agencies, including agencies that 
     provide health, mental health, or family services, or other 
     child or family supportive services; and
       ``(V) carry out the activities of the State Director of 
     Head Start Collaboration authorized in subparagraph (D).
       ``(C) In order to improve coordination and delivery of 
     early education services to children in the State, a State 
     that receives a grant under subparagraph (B) shall--
       ``(i) appoint an individual to serve as the State Director 
     of Head Start Collaboration;
       ``(ii) ensure that the State Director of Head Start 
     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; and
       ``(iii) involve the State Head Start Association in the 
     selection of the Director and involve the Association in 
     determinations relating to the ongoing direction of the 
     collaboration office.
       ``(D) The State Director of Head Start Collaboration, after 
     consultation with the State Advisory Council described in 
     subparagraph (E), shall--
       ``(i) not later than 1 year after the date of enactment of 
     the Head Start Improvements for School Readiness Act, conduct 
     an assessment that--
       ``(I) addresses the needs of Head Start agencies in the 
     State with respect to collaborating, coordinating services, 
     and implementing State early learning and school readiness 
     goals and standards to better serve children enrolled in Head 
     Start programs in the State;
       ``(II) shall be updated on an annual basis; and
       ``(III) shall be made available to the general public 
     within the State;
       ``(ii) assess the availability of high quality 
     prekindergarten services for low-income children in the 
     State;
       ``(iii) develop a strategic plan that is based on the 
     assessment described in clause (i) that will--

[[Page 10879]]

       ``(I) enhance collaboration and coordination of Head Start 
     services with other entities providing early childhood 
     programs and services (such as child care and services 
     offered by museums), health care, mental health care, 
     welfare, child protective services, education and community 
     service activities, family literacy services, reading 
     readiness programs (including such programs offered by public 
     and school libraries), services relating to children with 
     disabilities, other early childhood programs and services for 
     limited English proficient children and homeless children, 
     and services provided for children in foster care and 
     children referred to Head Start programs by child welfare 
     agencies, including agencies and State officials responsible 
     for such services;
       ``(II) assist Head Start agencies to develop a plan for the 
     provision of full-working-day, full calendar year services 
     for children enrolled in Head Start programs who need such 
     care;
       ``(III) assist Head Start agencies to align services with 
     State early learning and school readiness goals and standards 
     and to facilitate collaborative efforts to develop local 
     school readiness standards; and
       ``(IV) enable agencies in the State to better coordinate 
     professional development opportunities for Head Start staff, 
     such as by--
       ``(aa) assisting 2- and 4-year public and private 
     institutions of higher education to develop articulation 
     agreements;
       ``(bb) awarding grants to institutions of higher education 
     to develop model early childhood education programs, 
     including practica or internships for students to spend time 
     in a Head Start or prekindergarten program;
       ``(cc) working with local Head Start agencies to meet the 
     degree requirements described in section 648A(a)(2)(A), 
     including providing distance learning opportunities for Head 
     Start staff, where needed to make higher education more 
     accessible to Head Start staff; and
       ``(dd) enabling the State Head Start agencies to better 
     coordinate outreach to eligible families;
       ``(iv) promote partnerships between Head Start agencies, 
     State governments, and the private sector to help ensure that 
     preschool children from low-income families are receiving 
     comprehensive services to prepare the children to enter 
     school ready to learn;
       ``(v) consult with the chief State school officer, local 
     educational agencies, and providers of early childhood 
     education and care to conduct unified planning regarding 
     early care and education services at both the State and local 
     levels, including undertaking collaborative efforts to 
     develop and make improvements in school readiness standards;
       ``(vi) promote partnerships (such as the partnerships 
     involved with the Free to Grow initiative) between Head Start 
     agencies, schools, law enforcement, and substance abuse and 
     mental health treatment agencies to strengthen family and 
     community environments and to reduce the impact on child 
     development of substance abuse, child abuse, domestic 
     violence, and other high risk behaviors that compromise 
     healthy development;
       ``(vii) promote partnerships between Head Start agencies 
     and other organizations in order to enhance the Head Start 
     curriculum, including partnerships to promote inclusion of 
     more books in Head Start classrooms and partnerships to 
     promote coordination of activities with the Ready-to-Learn 
     Television program carried out under subpart 3 of part D of 
     title II of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6775 et seq.); and
       ``(viii) identify other resources and organizations (both 
     public and private) for the provision of in-kind services to 
     Head Start agencies in the State.
       ``(E)(i) The Governor of the State shall designate or 
     establish a council to serve as the State advisory council on 
     collaboration on early care and education activities for 
     children from birth to school entry (in this subchapter 
     referred to as the `State Advisory Council').
       ``(ii) The Governor may designate an existing entity to 
     serve as the State Advisory Council, if the entity includes 
     representatives described in subclauses (I) through (XXIV) of 
     clause (iii).
       ``(iii) Members of the State Advisory Council shall 
     include, to the maximum extent possible--
       ``(I) the State Director of Head Start Collaboration;
       ``(II) a representative of the appropriate regional office 
     of the Administration for Children and Families;
       ``(III) a representative of the State educational agency 
     and local educational agencies;
       ``(IV) a representative of institutions of higher 
     education;
       ``(V) a representative (or representatives) of the State 
     agency (or agencies) responsible for health or mental health 
     care;
       ``(VI) a representative of the State agency responsible for 
     teacher professional standards, certification, and licensing, 
     including prekindergarten teacher professional standards, 
     certification standards, certification, and licensing, where 
     applicable;
       ``(VII) a representative of the State agency responsible 
     for child care;
       ``(VIII) early childhood education professionals, including 
     professionals with expertise in second language acquisition 
     and instructional strategies in teaching limited English 
     proficient children;
       ``(IX) kindergarten teachers and teachers in grades 1 
     through 3;
       ``(X) health care professionals;
       ``(XI) child development specialists, including specialists 
     in prenatal, infant, and toddler development;
       ``(XII) a representative of the State agency responsible 
     for assisting children with developmental disabilities;
       ``(XIII) a representative of the State agency responsible 
     for programs under part C of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1431 et seq.);
       ``(XIV) a representative of the State interagency 
     coordinating councils established under section 641 of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1441);
       ``(XV) a representative of the State Head Start Association 
     (where appropriate), and other representatives of Head Start 
     programs in the State;
       ``(XVI) a representative of the State network of child care 
     resource and referral agencies;
       ``(XVII) a representative of community-based organizations;
       ``(XVIII) a representative of State and local providers of 
     early childhood education and child care;
       ``(XIX) a representative of migrant and seasonal Head Start 
     programs and Indian Head Start programs (where appropriate);
       ``(XX) parents;
       ``(XXI) religious and business leaders;
       ``(XXII) the head of the State library administrative 
     agency;
       ``(XXIII) representatives of State and local organizations 
     and other entities providing professional development to 
     early care and education providers; and
       ``(XXIV) a representative of other entities determined to 
     be relevant by the chief executive officer of the State.
       ``(iv)(I) The State Advisory Council shall be responsible 
     for, in addition to responsibilities assigned to the council 
     by the chief executive officer of the State--
       ``(aa) conducting a periodic statewide needs assessment 
     concerning early care and education programs for children 
     from birth to school entry;
       ``(bb) identifying barriers to, and opportunities for, 
     collaboration and coordination between entities carrying out 
     Federal and State child development, child care, and early 
     childhood education programs;
       ``(cc) developing recommendations regarding means of 
     establishing a unified data collection system for early care 
     and education programs throughout the State;
       ``(dd) developing a statewide professional development and 
     career ladder plan for early care and education in the State; 
     and
       ``(ee) reviewing and approving the strategic plan, 
     regarding collaborating and coordinating services to better 
     serve children enrolled in Head Start programs, developed by 
     the State Director of Head Start Collaboration under 
     subparagraph (D)(iii).
       ``(II) The State Advisory Council shall hold public 
     hearings and provide an opportunity for public comment on the 
     needs assessment and recommendations described in subclause 
     (I). The State Advisory Council shall submit a statewide 
     strategic report containing the needs assessment and 
     recommendations described in subclause (I) to the State 
     Director of Head Start Collaboration and the chief executive 
     officer of the State.
       ``(III) After submission of a statewide strategic report 
     under subclause (II), the State Advisory Council shall meet 
     periodically to review any implementation of the 
     recommendations in such report and any changes in State and 
     local needs.''; and
       (5) in paragraph (6)--
       (A) in subparagraph (A), by striking ``7.5 percent'' and 
     all that follows and inserting ``11 percent for fiscal year 
     2006, 13 percent for fiscal year 2007, 15 percent for fiscal 
     year 2008, 17 percent for fiscal year 2009, and 18 percent 
     for fiscal year 2010, of the amount appropriated pursuant to 
     section 639(a).'';
       (B) by striking subparagraph (B);
       (C) in subparagraph (C)(i), by striking ``required to be''; 
     and
       (D) by redesignating subparagraph (C) as subparagraph (B).
       (b) Service Delivery Models.--Section 640(f) of the Head 
     Start Act (42 U.S.C. 9835(f)) is amended by striking 
     ``needs.'' and inserting ``needs, including--
       ``(1) models that leverage the capacity and capabilities of 
     the delivery system of early childhood education and child 
     care; and
       ``(2) procedures to provide for the conversion of part-day 
     programs to full-day programs or part-day slots to full-day 
     slots.''.
       (c) Additional Funds.--Section 640(g)(2) of the Head Start 
     Act (42 U.S.C. 9835(g)(2)) is amended--
       (1) by striking subparagraph (C) and inserting the 
     following:
       ``(C) the extent to which the applicant has undertaken 
     communitywide 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

[[Page 10880]]

     in whose homes English is not the language customarily 
     spoken), and individuals, organizations, and public entities 
     serving children with disabilities, children in foster care, 
     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));'';
       (2) in subparagraph (D), by striking ``other local'' and 
     inserting ``the State and local'';
       (3) in subparagraph (E), by inserting ``would like to 
     participate but'' after ``community who'';
       (4) in subparagraph (G), by inserting ``leverage the 
     existing delivery systems of such services and'' after 
     ``manner that will''; and
       (5) in subparagraph (H), 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''.
       (d) Regulations.--Section 640(i) of the Head Start Act (42 
     U.S.C. 9835(i)) is amended by inserting ``and requirements to 
     ensure the appropriate supervision and background checks of 
     individuals with whom the agencies contract to transport 
     those children'' before the period.
       (e) Migrant and Seasonal Head Start Programs.--Section 
     640(l) of the Head Start Act (42 U.S.C. 9835(l)) is amended 
     by striking paragraph (3) and inserting the following:
       ``(3) In carrying out this subchapter, the Secretary shall 
     continue the administrative arrangement at the national or 
     regional level for meeting the needs of Indian children and 
     children of migrant and seasonal farmworkers and shall ensure 
     that appropriate funding is provided to meet such needs, 
     including training and technical assistance and the 
     appointment of a national migrant and seasonal Head Start 
     collaboration director and a national Indian Head Start 
     collaboration director.
       ``(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 
     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) 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 
     issue regulations to remove barriers to the enrollment and 
     participation of homeless children in Head Start programs. 
     Such regulations shall require Head Start agencies to--
       ``(1) implement policies and procedures to ensure that 
     homeless children are identified and receive appropriate 
     priority for enrollment;
       ``(2) allow homeless children to apply to, enroll in, and 
     attend Head Start programs while required documents, such as 
     proof of residency, proof of immunization, and other medical 
     records, birth certificates, and other documents, are 
     obtained within a reasonable timeframe (consistent with State 
     law); and
       ``(3) coordinate individual Head Start programs with 
     efforts to implement subtitle B of title VII of the McKinney-
     Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.).
       ``(n) Rule of Construction.--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 in order 
     to attend preschool, or to participate in any initial 
     screening prior to participation in such program, except as 
     provided under section 612(a)(3) of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1412(a)(3)) and 
     consistent with section 614(a)(1)(C) of such Act (20 U.S.C. 
     1414(a)(1)(C)).
       ``(o) Materials.--All curricula funded under this 
     subchapter shall be scientifically based and age appropriate. 
     Parents shall have the opportunity to examine any such 
     curricula or instructional materials funded under this 
     subchapter.''.

     SEC. 7. DESIGNATION OF HEAD START AGENCIES.

       Section 641 of the Head Start Act (42 U.S.C. 9836) is 
     amended to read as follows:

     ``SEC. 641. DESIGNATION OF HEAD START AGENCIES.

       ``(a) Designation.--
       ``(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 community, including a 
     community-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 community; and
       ``(B) is determined to be capable of planning, conducting, 
     administering, and evaluating, either directly or by other 
     arrangements, a Head Start program.
       ``(2) Required goals for designation.--In order to be 
     designated as a Head Start agency, an entity described in 
     paragraph (1) shall establish program goals for improving the 
     school readiness of children participating in a program under 
     this subchapter, including goals for meeting the performance 
     standards and additional educational standards described in 
     section 641A and shall establish results-based school 
     readiness goals that are aligned with State early learning 
     standards, if applicable, and requirements and expectations 
     for local public schools.
       ``(3) Eligibility for subsequent grants.--In order to 
     receive a grant under this subchapter subsequent to the 
     initial grant provided following the date of enactment of the 
     Head Start Improvements for School Readiness Act, an entity 
     described in paragraph (1) shall demonstrate that the entity 
     has met or is making progress toward meeting the goals 
     described in paragraph (2).
       ``(4) Governing body.--
       ``(A) In general.--
       ``(i) Ensuring high quality programs.--In order to be 
     designated as a Head Start agency, an entity described in 
     paragraph (1) shall have a governing body--

       ``(I) with legal and fiscal responsibility for 
     administering and overseeing programs under this subchapter; 
     and
       ``(II) that fully participates in the development, 
     planning, implementation, and evaluation of the programs to 
     ensure the operation of programs of high quality.

       ``(ii) Ensuring compliance with laws.--The governing body 
     shall be responsible for ensuring compliance with Federal 
     laws and regulations, including the performance standards 
     described in section 641A, as well as applicable State, 
     Tribal, and local laws and regulations, including laws 
     defining the nature and operations of the governing body.
       ``(B) Composition of governing body.--
       ``(i) In general.--The governing body shall be composed as 
     follows:

       ``(I) Not less than 1 member of the governing body shall 
     have a background in fiscal management.
       ``(II) Not less than 1 member of the governing body shall 
     have a background in early childhood development.
       ``(III) Not less than 1 member of the governing body shall 
     live in the local community to be served by the entity.

       ``(ii) Conflict of interest.--Members of the governing body 
     shall--

       ``(I) not have a conflict of interest with the Head Start 
     agency or delegate agencies; and
       ``(II) not receive compensation for service to the Head 
     Start agency.

       ``(C) Responsibilities.--
       ``(i) In general.--The governing body shall be responsible, 
     in consultation with the policy council or the policy 
     committee of the Head Start agency, for--

       ``(I) the selection of delegate agencies and such agencies' 
     service areas;
       ``(II) establishing criteria for defining recruitment, 
     selection, and enrollment priorities;
       ``(III) all funding applications and amendments to funding 
     applications for programs under this subchapter;
       ``(IV) the annual self-assessment of the Head Start agency 
     or delegate agency's progress in carrying out the 
     programmatic and fiscal intent of such agency's grant 
     application, including planning or other actions that may 
     result from the review of the annual audit, self-assessment, 
     and findings from the Federal monitoring review;
       ``(V) the composition of the policy council or the policy 
     committee of the Head Start agency and the procedures by 
     which group members are chosen;
       ``(VI) audits, accounting, and reporting;
       ``(VII) personnel policies and procedures including 
     decisions with regard to salary scales (and changes made to 
     the scale), salaries of the Executive Director, Head Start 
     Director, the Director of Human Resources, and the Chief 
     Fiscal Officer, and decisions to hire and terminate program 
     staff; and
       ``(VIII) the community assessment, including any updates to 
     such assessment.

       ``(ii) Conduct of responsibilities.--The governing body 
     shall develop an internal control structure to facilitate 
     these responsibilities in order to--

       ``(I) safeguard Federal funds;
       ``(II) comply with laws and regulations that have an impact 
     on financial statements;
       ``(III) detect or prevent noncompliance with this 
     subchapter; and
       ``(IV) receive audit reports and direct and monitor staff 
     implementation of corrective actions.

       ``(D) Receipt of information.--To facilitate oversight and 
     Head Start agency accountability, the governing body shall 
     receive regular and accurate information about program 
     planning, policies, and Head Start agency operations, 
     including--
       ``(i) monthly financial statements (including detailed 
     credit card account expenditures for any employee with a Head 
     Start agency credit card or who seeks reimbursement for 
     charged expenses);
       ``(ii) monthly program information summaries;
       ``(iii) program enrollment reports, including attendance 
     reports for children whose

[[Page 10881]]

     care is partially subsidized by another public agency;
       ``(iv) monthly report of meals and snacks through programs 
     of the Department of Agriculture;
       ``(v) the annual financial audit;
       ``(vi) the annual self-assessment, including any findings 
     related to the annual self-assessment;
       ``(vii) the community assessment of the Head Start agency's 
     service area and any applicable updates; and
       ``(viii) the program information reports.
       ``(E) Training and technical assistance.--Appropriate 
     training and technical assistance shall be provided to the 
     members of the governing body to ensure that the members 
     understand the information the members receive and can 
     effectively oversee and participate in the programs of the 
     Head Start agency.
       ``(b) Communities.--For purposes of this subchapter, a 
     community may be a city, county, or multicity or multicounty 
     unit within a State, an Indian reservation (including Indians 
     in any off-reservation area designated by an appropriate 
     tribal government in consultation with the Secretary), or a 
     neighborhood or other area (irrespective of boundaries or 
     political subdivisions) that provides a suitable 
     organizational base and possesses the commonality of interest 
     needed to operate a Head Start program.
       ``(c) Priority in Designation.--In administering the 
     provisions of this section, the Secretary shall, in 
     consultation with the chief executive officer of the State 
     involved, give priority in the designation (including 
     redesignation) of Head Start agencies to any high-performing 
     Head Start agency or delegate agency that--
       ``(1) is receiving assistance under this subchapter;
       ``(2) meets or exceeds program and financial management 
     requirements or standards described in section 641A(a)(1);
       ``(3) has no unresolved deficiencies and has not had 
     findings of deficiencies during the last triennial review 
     under section 641A(c); and
       ``(4) can demonstrate, through agreements such as memoranda 
     of understanding, active collaboration with the State or 
     local community in the provision of services for children 
     (such as the provision of extended day services, education, 
     professional development and training for staff, and other 
     types of cooperative endeavors).
       ``(d) Designation When Entity Has Priority.--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.
       ``(e) Rule of Construction.--Notwithstanding any other 
     provision of law, under no condition may a non-Indian Head 
     Start agency receive a grant to carry out an Indian Head 
     Start program.
       ``(f) Effectiveness.--In selecting from among qualified 
     applicants for designation as a Head Start agency, the 
     Secretary shall consider the effectiveness of each such 
     applicant to provide Head Start services, based on--
       ``(1) any past performance of such applicant in providing 
     services comparable to Head Start services, including how 
     effectively such applicant provided such comparable services;
       ``(2) the plan of such applicant to provide comprehensive 
     health, educational, nutritional, social, and other services 
     needed to aid participating children in attaining their full 
     potential, and to prepare children to succeed in school;
       ``(3) the capacity of such applicant to serve eligible 
     children with programs that use scientifically based research 
     that promote school readiness of children participating in 
     the program;
       ``(4) 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;
       ``(5) the plan of such applicant to coordinate the Head 
     Start program the applicant proposes to carry out with other 
     preschool programs, including--
       ``(A) 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.);
       ``(B) programs under section 619 and part C of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1419, 
     1431 et seq.);
       ``(C) State prekindergarten programs;
       ``(D) child care programs;
       ``(E) the educational programs that the children in the 
     Head Start program involved will enter at the age of 
     compulsory school attendance; and
       ``(F) reading readiness programs such as those conducted by 
     public and school libraries;
       ``(6) the plan of such applicant to coordinate the Head 
     Start program that the applicant proposes to carry out with 
     public and private entities who are willing to commit 
     resources to assist the Head Start program in meeting its 
     program needs;
       ``(7) the plan of such applicant to collaborate with a 
     local library, where available, that is interested in that 
     collaboration, to--
       ``(A) develop innovative programs to excite children about 
     the world of books, such as programs that involve--
       ``(i) taking children to the library for a story hour;
       ``(ii) promoting the use of library cards;
       ``(iii) developing a lending library or using a mobile 
     library van; and
       ``(iv) providing fresh books in the Head Start classroom on 
     a regular basis;
       ``(B) assist in literacy training for Head Start teachers; 
     and
       ``(C) support parents and other caregivers in literacy 
     efforts;
       ``(8) the plan of such applicant--
       ``(A) to seek the involvement of parents of participating 
     children in activities (at home and in the center involved 
     where practicable) designed to help such parents become full 
     partners in the education of their children;
       ``(B) to afford such parents the opportunity to participate 
     in the development and overall conduct of the program at the 
     local level, including through providing transportation 
     costs;
       ``(C) 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;
       ``(D) 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;
       ``(E) at the option of such applicant, to offer (directly 
     or through referral to local entities) to such parents--
       ``(i) training in basic child development (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;
       ``(F) to provide, with respect to each participating 
     family, a family needs assessment that includes consultation 
     with such parents about the benefits of parent involvement 
     and about the activities described in subparagraphs (C), (D), 
     and (E) in which such parents may choose to become involved 
     (taking into consideration their specific family needs, work 
     schedules, and other responsibilities); and
       ``(G) to extend 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;
       ``(9) the ability of such applicant to carry out the plans 
     described in paragraphs (2), (4), and (5);
       ``(10) other factors related to the requirements of this 
     subchapter;
       ``(11) the plan of such applicant to meet the needs of 
     limited English proficient 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;
       ``(12) the plan of such applicant to meet the needs of 
     children with disabilities;
       ``(13) 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;
       ``(14) the plan of such applicant to collaborate with other 
     entities carrying out early childhood education and child 
     care programs in the community;
       ``(15) the plan of such applicant to meet the needs of 
     homeless children and children in foster care, including the 
     transportation needs of such children; and
       ``(16) the plan of such applicant to recruit and retain 
     qualified staff.
       ``(g) Interim Basis.--If there is not a qualified applicant 
     in a community for designation as a Head Start agency, the 
     Secretary shall designate a qualified agency to carry out the 
     Head Start program in the community on an interim basis until 
     a qualified applicant from the community is so designated.
       ``(h) Involvement of Parents and Area Residents.--The 
     Secretary shall continue the practice of involving parents 
     and area residents who are affected by programs under this 
     subchapter in the selection of qualified applicants for 
     designation as Head Start agencies.
       ``(i) Priority.--In selecting from among qualified 
     applicants for designation as a Head Start agency, the 
     Secretary shall give priority to applicants that have 
     demonstrated capacity in providing effective,

[[Page 10882]]

     comprehensive, and well-coordinated early childhood services 
     to children and their families.''.

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

       Section 641A of the Head Start Act (42 U.S.C. 9836a) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(A), by striking ``642(d)'' and 
     inserting ``642(c)'';
       (B) in paragraph (1)(B)--
       (i) in clause (i), by striking ``education performance 
     standards'' and inserting ``educational performance 
     standards''; and
       (ii) by striking clause (ii) and inserting the following:
       ``(ii) additional educational standards based on the 
     recommendations of the National Academy of Sciences panel 
     described in section 649(h) and other experts in the field, 
     to ensure that the curriculum involved addresses, and that 
     the children participating in the program show appropriate 
     progress toward developing and applying, the recommended 
     educational outcomes, after the panel considers the 
     appropriateness of additional educational standards relating 
     to--
       ``(I) language skills related to listening, understanding, 
     speaking, and communicating, including--

       ``(aa) understanding and use of a diverse vocabulary 
     (including knowing the names of colors) and knowledge of how 
     to use oral language to communicate for various purposes;
       ``(bb) narrative abilities used, for example, to 
     comprehend, tell, and respond to a story, or to comprehend 
     instructions;
       ``(cc) ability to detect and produce sounds of the language 
     the child speaks or is learning; and
       ``(dd) clarity of pronunciation and speaking in 
     syntactically and grammatically correct sentences;

       ``(II) prereading knowledge and skills, including--

       ``(aa) alphabet knowledge including knowing the letter 
     names and associating letters with their shapes and sounds in 
     the language the child speaks or is learning;
       ``(bb) phonological awareness and processes that support 
     reading, for example, rhyming, recognizing speech sounds and 
     separate syllables in spoken words, and putting speech sounds 
     together to make words;
       ``(cc) knowledge, interest in, and appreciation of books, 
     reading, and writing (either alone or with others), and 
     knowledge that books have parts such as the front, back, and 
     title page;
       ``(dd) early writing, including the ability to write one's 
     own name and other words and phrases; and
       ``(ee) print awareness and concepts, including recognizing 
     different forms of print and understanding the association 
     between spoken and written words;

       ``(III) premathematics knowledge and skills, including--

       ``(aa) number recognition;
       ``(bb) use of early number concepts and operations, 
     including counting, simple adding and subtracting, and 
     knowledge of quantitative relationships, such as part versus 
     whole and comparison of numbers of objects;
       ``(cc) use of early space and location concepts, including 
     recognizing shapes, classification, striation, and 
     understanding directionality; and
       ``(dd) early pattern skills and measurement, including 
     recognizing and extending simple patterns and measuring 
     length, weight, and time;

       ``(IV) scientific abilities, including--

       ``(aa) building awareness about scientific skills and 
     methods, such as gathering, describing, and recording 
     information, making observations, and making explanations and 
     predictions; and
       ``(bb) expanding scientific knowledge of the environment, 
     time, temperature, and cause-and-effect relationships;

       ``(V) general cognitive abilities related to academic 
     achievement and child development, including--

       ``(aa) reasoning, planning, and problem-solving skills;
       ``(bb) ability to engage, sustain attention, and persist on 
     challenging tasks;
       ``(cc) intellectual curiosity, initiative, and task 
     engagement; and
       ``(dd) motivation to achieve and master concepts and 
     skills;

       ``(VI) social and emotional development related to early 
     learning and school success, including developing--

       ``(aa) the ability to develop social relationships, 
     demonstrate cooperative behaviors, and relate to teachers and 
     peers in positive and respectful ways;
       ``(bb) an understanding of the consequences of actions, 
     following rules, and appropriately expressing feelings;
       ``(cc) a sense of self, such as self-awareness, 
     independence, and confidence;
       ``(dd) the ability to control negative behaviors with 
     teachers and peers that include impulsiveness, aggression, 
     and noncompliance; and
       ``(ee) knowledge of civic society and surrounding 
     communities;

       ``(VII) physical development, including developing--

       ``(aa) fine motor skills, such as strength, manual 
     dexterity, and hand-eye coordination; and
       ``(bb) gross motor skills, such as balance and coordinated 
     movements; and

       ``(VIII) 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 (VII);'';
       (C) in paragraph (1)(D), by striking ``projects; and'' and 
     inserting ``projects, including regulations that require that 
     the facilities used by Head Start agencies (including Early 
     Head Start agencies) and delegate agencies for regularly 
     scheduled center-based and combination program option 
     classroom activities--
       ``(i) shall be in compliance with State and local 
     requirements concerning licensing for such facilities; and
       ``(ii) shall be accessible by State and local authorities 
     for purposes of monitoring and ensuring compliance.'';
       (D) in paragraph (2)--
       (i) in subparagraph (B)--

       (I) in clause (i), by striking ``the date of enactment of 
     this section'' and inserting ``the date of enactment of the 
     Head Start Improvements for School Readiness Act'';
       (II) in clause (ii), by striking ``the date of enactment of 
     this Act'' and inserting ``the date of enactment of the Head 
     Start Improvements for School Readiness Act'';
       (III) in clause (vi), by striking ``; and'' and inserting a 
     semicolon;
       (IV) in clause (vii), by striking ``public schools'' and 
     inserting ``the schools that the children will be 
     attending''; and
       (V) by adding at the end the following:

       ``(viii) the unique challenges faced by individual 
     programs, including those programs that are seasonal or short 
     term and those programs that serve rural populations; and'';
       (ii) in subparagraph (C)(ii), by striking ``the date of 
     enactment of the Coats Human Services Reauthorization Act of 
     1998'' and inserting ``the date of enactment of the Head 
     Start Improvements for School Readiness Act''; and
       (iii) by adding at the end the following:
       ``(D) consult with Indian tribes, American Indian and 
     Alaska Native experts in early childhood development, 
     linguists, and the National Indian Head Start Directors 
     Association on the review and promulgation of program 
     standards and measures (including standards and measures for 
     language acquisition and school readiness).'';
       (E) by adding at the end the following:
       ``(4) Evaluations and corrective actions for delegate 
     agencies.--
       ``(A) Procedures.--
       ``(i) In general.--Subject to clause (ii), 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.

       ``(ii) Termination.--The Head Start agency may not 
     terminate a delegate agency's contract or reduce a delegate 
     agency's service area without showing cause or demonstrating 
     the cost-effectiveness of such a decision.
       ``(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.'';
       (2) in subsection (b)--
       (A) in paragraph (2)--
       (i) by striking the paragraph heading and inserting the 
     following:
       ``(2) Characteristics and use of measures.--'';
       (ii) in subparagraph (B), by striking ``, not later than 
     July 1, 1999; and'' and inserting a semicolon;
       (iii) in subparagraph (C), by striking the period and 
     inserting a semicolon;
       (iv) by striking the flush matter following subparagraph 
     (C); and
       (v) by adding at the end the following:
       ``(D) measure characteristics that are strongly predictive 
     (as determined on a scientific basis) of a child's school 
     readiness and later performance in school;
       ``(E) be appropriate for the population served; and

[[Page 10883]]

       ``(F) be reviewed not less than every 4 years, based on 
     advances in the science of early childhood development.

     The performance measures shall include the performance 
     standards and additional educational standards described in 
     subparagraphs (A) and (B) of subsection (a)(1).'';
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``; and'' and 
     inserting a semicolon;
       (ii) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) to enable Head Start agencies to individualize 
     programs of instruction to better meet the needs of the child 
     involved.'';
       (C) by striking paragraph (4) and inserting the following:
       ``(4) Results-based outcome measures.--Results-based 
     outcome measures shall be designed for the purpose of 
     promoting the knowledge, skills, abilities, and development, 
     described in subsection (a)(1)(B)(ii), of children 
     participating in Head Start programs that are strongly 
     predictive (as determined on a scientific basis) of a child's 
     school readiness and later performance in school.''; and
       (D) by striking paragraph (5) and inserting the following:
       ``(5) Additional local results-based educational measures 
     and goals.--Head Start agencies may establish and implement 
     additional local results-based educational measures and 
     goals.'';
       (3) in subsection (c)--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``and Head Start centers'' after ``Head Start programs'';
       (ii) in subparagraph (A), by striking ``such agency'' and 
     inserting ``Head Start center'';
       (iii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Unannounced site inspections of Head Start centers 
     for health and safety reasons, as appropriate.'';
       (iv) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (v) by inserting after subparagraph (C) the following:
       ``(D) Notwithstanding subparagraph (C), followup reviews, 
     including--
       ``(i) prompt return visits to agencies, programs, and 
     centers that fail to meet 1 or more of the performance 
     measures developed by the Secretary under subsection (b); and
       ``(ii) a review of programs with citations that include 
     findings of deficiencies not later than 6 months after the 
     date of such citation.''; and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Conduct of reviews.--The Secretary shall ensure that 
     reviews described in paragraph (1)--
       ``(A) that incorporate a monitoring visit, may incorporate 
     the visit without prior notice of the visit to the agency 
     involved or with such limited prior notice as is necessary to 
     ensure the participation of parents and key staff members;
       ``(B) are conducted by review teams that shall include 
     individuals who are knowledgeable about Head Start and other 
     early childhood education programs and, to the maximum extent 
     practicable, the diverse (including linguistic and cultural) 
     needs of eligible children (including children with 
     disabilities, homeless children, and children in foster care) 
     and limited English proficient children and their families;
       ``(C) include as part of the reviews of the programs, a 
     review and assessment of program effectiveness, as measured 
     in accordance with the results-based performance measures 
     developed by the Secretary pursuant to subsection (b) and 
     with the standards established pursuant to subparagraphs (A) 
     and (B) of subsection (a)(1);
       ``(D) seek information from the communities and States 
     where Head Start programs exist about innovative or effective 
     collaborative efforts, barriers to collaboration, and the 
     efforts of the Head Start agencies to collaborate with the 
     entities carrying out early childhood education and child 
     care programs in the community;
       ``(E) include as part of the reviews of the programs, a 
     review and assessment of whether the programs are in 
     conformity with the income eligibility requirements under 
     section 645 and regulations promulgated under such section;
       ``(F) 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 needs 
     of populations of limited English proficient children and 
     children of migrant and seasonal farmworking families); and
       ``(G) include as part of the reviews of the programs, data 
     from the results of periodic child assessments, and a review 
     and assessment of child outcomes and performance as they 
     relate to State, local, and agency-determined school 
     readiness goals.'';
       (4) in subsection (d)(1)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``or fails to address the community needs and strategic plan 
     identified in section 640(g)(2)(C),'' after ``subsection 
     (b),''; and
       (B) in subparagraph (A), by inserting ``and identify the 
     technical assistance to be provided consistent with paragraph 
     (3)'' after ``corrected'';
       (5) in subsection (e), by striking the last sentence and 
     inserting ``The information contained in such report shall be 
     made available to all parents with children receiving 
     assistance under this subchapter in an understandable and 
     uniform format, and to the extent practicable, provided in a 
     language that the parents can understand. Such information 
     shall be made widely available through public means such as 
     distribution through public agencies, and, at a minimum, by 
     posting such information on the Internet immediately upon 
     publication.''; and
       (6) by adding at the end the following:
       ``(f) Self-Assessments.--
       ``(1) In general.--Not less frequently than once each 
     program year, with the consultation and participation of 
     policy groups and, as appropriate, other community members, 
     each agency receiving funds under this subchapter shall 
     conduct a self-assessment of the effectiveness and progress 
     in meeting programs goals and objectives and in implementing 
     and complying with Head Start program performance standards.
       ``(2) Report and improvement plans.--
       ``(A) Report.--An agency conducting a self-assessment shall 
     report the findings of the self-assessment to the relevant 
     policy council, policy committee, governing body, and 
     regional office of the Department of Health and Human 
     Services. Each self-assessment shall identify areas of 
     strength and weakness.
       ``(B) Improvement plan.--The agency shall develop an 
     improvement plan approved by the governing body of the agency 
     to strengthen any areas identified in the self-assessment as 
     weaknesses or in need of improvement.
       ``(3) Ongoing monitoring.--Each Head Start agency, Early 
     Head Start agency, and delegate agency shall establish and 
     implement procedures for the ongoing monitoring of their Head 
     Start and Early Head Start programs, to ensure that the 
     operations of the programs work toward meeting program goals 
     and objectives and Head Start performance standards.
       ``(4) Training and technical assistance.--Funds may be made 
     available, through section 648(d)(13), for training and 
     technical assistance to assist agencies in conducting self-
     assessments.
       ``(g) 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 95 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);

[[Page 10884]]

       ``(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 9 months, a 
     Head Start agency is still operating a program with an actual 
     enrollment that is less than 95 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 causes of the enrollment shortfall, or a portion 
     of the shortfall, are beyond the agency's control (such as 
     serving significant numbers of migrant or seasonal 
     farmworker, homeless, foster, or other highly mobile 
     children);
       ``(ii) the shortfall can reasonably be expected to be 
     temporary; or
       ``(iii) 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. CENTERS OF EXCELLENCE IN EARLY CHILDHOOD.

       The Head Start Act is amended by inserting after section 
     641A (42 U.S.C. 9836a) the following:

     ``SEC. 641B. CENTERS OF EXCELLENCE IN EARLY CHILDHOOD.

       ``(a) Definition.--In this section, the term `center of 
     excellence' means a Center of Excellence in Early Childhood 
     designated under subsection (b).
       ``(b) Designation and Bonus Grants.--The Secretary shall, 
     subject to the availability of funds under this subchapter, 
     including under subsection (f), establish a program under 
     which the Secretary shall--
       ``(1) designate not more than 200 exemplary Head Start 
     agencies (including Early Head Start agencies, Indian Head 
     Start agencies, and migrant and seasonal Head Start agencies) 
     as Centers of Excellence in Early Childhood; and
       ``(2) make bonus grants to the centers of excellence to 
     carry out the activities described in subsection (d).
       ``(c) Application and Designation.--
       ``(1) Application.--
       ``(A) Nomination and submission.--
       ``(i) In general.--To be eligible to receive a designation 
     as a center of excellence under subsection (b), except as 
     provided in clause (ii), a Head Start agency in a State shall 
     be nominated by the Governor of the State and shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(ii) Indian and migrant and seasonal head start 
     programs.--In the case of an Indian Head Start agency or a 
     migrant or seasonal Head Start agency, to be eligible to 
     receive a designation as a center of excellence under 
     subsection (b), such an agency shall be nominated by the head 
     of the appropriate regional office of the Department and 
     Health and Human Services and shall submit an application to 
     the Secretary in accordance with clause (i).
       ``(B) Contents.--At a minimum, the application shall 
     include--
       ``(i) evidence that the Head Start program carried out by 
     the agency has significantly improved the school readiness 
     of, and enhanced academic outcomes for, children who have 
     participated in the program;
       ``(ii) evidence that the program meets or exceeds standards 
     and performance measures described in subsections (a) and (b) 
     of section 641A, as evidenced by successful completion of 
     programmatic and monitoring reviews, and has no findings of 
     deficiencies with respect to the standards and measures;
       ``(iii) evidence that the program is making progress toward 
     meeting the requirements described in section 648A;
       ``(iv) evidence demonstrating the existence of a 
     collaborative partnership among the Head Start agency, the 
     State (or a State agency), and other early care and education 
     providers in the local community involved;
       ``(v) a nomination letter from the Governor, or appropriate 
     regional office, demonstrating the agency's ability to carry 
     out the coordination, transition, and training services of 
     the program to be carried out under the bonus grant involved, 
     including coordination of activities with State and local 
     agencies that provide early childhood services to children 
     and families in the community served by the agency;
       ``(vi) information demonstrating the existence of a local 
     council for excellence in early childhood, which shall 
     include representatives of all the institutions, agencies, 
     and groups involved in the work of the center for, and the 
     local provision of services to, eligible children and other 
     at-risk children, and their families; and
       ``(vii) a description of how the Center, in order to expand 
     accessibility and continuity of quality early care and 
     education, will coordinate the early care and education 
     activities assisted under this section with--

       ``(I) programs carried out under the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.);
       ``(II) other programs carried out under this subchapter, 
     including the Early Head Start programs carried out under 
     section 645A;
       ``(III)(aa) Early Reading First and Even Start programs 
     carried out 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.);
       ``(bb) other preschool programs carried out under title I 
     of that Act (20 U.S.C. 6301 et seq.); and
       ``(cc) the Ready-to-Learn Television program carried out 
     under subpart 3 of part D of title II of that Act (20 U.S.C. 
     6775 et seq.);
       ``(IV) programs carried out under part C of the Individuals 
     with Disabilities Education Act (20 U.S.C. 1431 et seq.);
       ``(V) State prekindergarten programs; and
       ``(VI) other early care and education programs.

       ``(2) Selection.--In selecting agencies to designate as 
     centers of excellence under subsection (b), the Secretary 
     shall designate not less than 1 from each of the 50 States, 
     the District of Columbia, an Indian Head Start program, a 
     migrant and seasonal Head Start program, and the Commonwealth 
     of Puerto Rico.
       ``(3) Term of designation.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall designate a Head Start agency as a center of 
     excellence for a 5-year term. During the period of that 
     designation, subject to the availability of appropriations, 
     the agency shall be eligible to receive a bonus grant under 
     subsection (b).
       ``(B) Revocation.--The Secretary may revoke an agency's 
     designation under subsection (b) if the Secretary determines 
     that the agency is not demonstrating adequate performance or 
     has had findings of deficiencies described in paragraph 
     (1)(B)(ii).

[[Page 10885]]

       ``(4) Amount of bonus grant.--The Secretary shall base the 
     amount of funding provided through a bonus grant made under 
     subsection (b) to a center of excellence on the number of 
     children eligible for Head Start services in the community 
     involved. The Secretary shall, subject to the availability of 
     funding, make such a bonus grant in an amount of not less 
     than $200,000 per year.
       ``(d) Use of Funds.--
       ``(1) Activities.--A center of excellence that receives a 
     bonus grant under subsection (b) may use the funds made 
     available through the bonus grant--
       ``(A) to provide Head Start services to additional eligible 
     children;
       ``(B) to better meet the needs of working families in the 
     community served by the center by serving more children in 
     existing Early Head Start programs (existing as of the date 
     the center is designated under this section) or in full-
     working-day, full calendar year Head Start programs;
       ``(C) to model and disseminate best practices for achieving 
     early academic success, including achieving school readiness 
     and developing prereading and premathematics skills for at-
     risk children and achieving the acquisition of the English 
     language for limited English proficient children, and to 
     provide seamless service delivery for eligible children and 
     their families;
       ``(D) to further coordinate early childhood and social 
     services available in the community served by the center for 
     at-risk children (birth through age 8), their families, and 
     pregnant women;
       ``(E) to provide training and cross training for Head Start 
     teachers and staff, child care providers, public and private 
     preschool and elementary school teachers, and other providers 
     of early childhood services, and training and cross training 
     to develop agency leaders;
       ``(F) to provide effective transitions between Head Start 
     programs and elementary school, to facilitate ongoing 
     communication between Head Start and elementary school 
     teachers concerning children receiving Head Start services, 
     and to provide training and technical assistance to providers 
     who are public elementary school teachers and other staff of 
     local educational agencies, child care providers, family 
     service providers, and other providers of early childhood 
     services, to help the providers described in this 
     subparagraph increase their ability to work with low-income, 
     at-risk children and their families;
       ``(G) to develop or maintain partnerships with institutions 
     of higher education and nonprofit organizations, including 
     community-based organizations, that recruit, train, place, 
     and support college students to serve as mentors and reading 
     coaches to preschool children in Head Start programs; and
       ``(H) to carry out other activities determined by the 
     center to improve the overall quality of the Head Start 
     program carried out by the agency and the program carried out 
     under the bonus grant involved.
       ``(2) Involvement of other head start agencies and 
     providers.--A center that receives a bonus grant under 
     subsection (b), in carrying out activities under this 
     subsection, shall work with the center's delegate agencies, 
     several additional Head Start agencies, and other providers 
     of early childhood services in the community involved, to 
     encourage the agencies and providers described in this 
     sentence to carry out model programs.
       ``(e) Research and Reports.--
       ``(1) Research.--The Secretary shall, subject to the 
     availability of funds to carry out this subsection, make a 
     grant to an independent organization to conduct research on 
     the ability of the centers of excellence to improve the 
     school readiness of children receiving Head Start services, 
     and to positively impact school results in the earliest 
     grades. The organization shall also conduct research to 
     measure the success of the centers of excellence at 
     encouraging the center's delegate agencies, additional Head 
     Start agencies, and other providers of early childhood 
     services in the communities involved to meet measurable 
     improvement goals, particularly in the area of school 
     readiness.
       ``(2) Report.--Not later than 48 months after the date of 
     enactment of the Head Start Improvements for School Readiness 
     Act, the organization shall prepare and submit to the 
     Secretary and Congress a report containing the results of the 
     research described in paragraph (1).
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated for fiscal year 2006 and each 
     subsequent fiscal year--
       ``(1) $90,000,000 to make bonus grants to centers of 
     excellence under subsection (b) to carry out activities 
     described in subsection (d);
       ``(2) $2,500,000 to pay for the administrative costs of the 
     Secretary in carrying out this section, including the cost of 
     a conference of centers of excellence; and
       ``(3) $2,000,000 for research activities described in 
     subsection (e).''.

     SEC. 10. POWERS AND FUNCTIONS OF HEAD START AGENCIES.

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

     ``SEC. 642. POWERS AND FUNCTIONS OF HEAD START AGENCIES.

       ``(a) In General.--In order to be designated as a Head 
     Start agency under this subchapter, an agency shall have 
     authority under its charter or applicable law to receive and 
     administer funds provided under this subchapter, funds and 
     contributions from private or local public sources that may 
     be used in support of a Head Start program, and funds 
     provided under any Federal or State assistance program 
     pursuant to which a public or private nonprofit or for-profit 
     agency (as the case may be) organized in accordance with this 
     subchapter, could act as a grantee, contractor, or sponsor of 
     projects appropriate for inclusion in a Head Start program. 
     Such an agency shall also be empowered to transfer funds so 
     received, and to delegate powers to other agencies, subject 
     to the powers of its governing board and its overall program 
     responsibilities. The power to transfer funds and delegate 
     powers shall include the power to make transfers and 
     delegations covering component projects in all cases in which 
     that power will contribute to efficiency and effectiveness or 
     otherwise further program objectives.
       ``(b) Additional Requirements.--In order to be designated 
     as a Head Start agency under this subchapter, a Head Start 
     agency shall also--
       ``(1) establish a program with all 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 the capacity to serve eligible children 
     with scientifically based curricula and other interventions 
     and support services that help promote the school readiness 
     of children participating in the program;
       ``(3) establish effective procedures and provide for the 
     regular assessment of Head Start children, including 
     observational and direct formal assessment, where 
     appropriate;
       ``(4) seek the involvement of parents, area residents, and 
     local business in the design and implementation of the 
     program;
       ``(5) provide for the regular participation of parents and 
     area residents in the implementation of the program;
       ``(6) provide technical and other support needed to enable 
     such 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 will 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 title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6381 et seq.)), to 
     parents of participating children, family literacy services, 
     and parenting skills training;
       ``(10) offer to parents of participating children substance 
     abuse and other counseling (either directly or through 
     referral to local entities), if needed, including information 
     on the effect of drug exposure on 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 (including foster parents and grandparents, 
     where applicable) about the benefits of parent involvement 
     and about the activities described in this subsection 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;
       ``(16) provide parents of limited English proficient 
     children outreach and information

[[Page 10886]]

     in an understandable and uniform format and, to the extent 
     practicable, in a language that the parents can understand; 
     and
       ``(17) at the option of such agency, partner with an 
     institution of higher education and a nonprofit organization 
     to provide college students with the opportunity to serve as 
     mentors or reading coaches to Head Start participants.
       ``(c) Progress.--
       ``(1) In general.--Each Head Start agency shall take steps 
     to ensure, to the maximum extent possible, that children 
     maintain the developmental and educational gains achieved in 
     Head Start programs and build upon such gains in further 
     schooling.
       ``(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 to--
       ``(i) share information about such children;
       ``(ii) get advice and support from the teachers in such 
     elementary schools regarding teaching strategies and options; 
     and
       ``(iii) 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.), other entities carrying 
     out early childhood education and development programs, and 
     the agencies responsible for administering section 106 of the 
     Child Abuse Prevention and Treatment Act (42 U.S.C. 5106a), 
     parts B and E of title IV of the Social Security Act (42 
     U.S.C. 620 et seq. and 670 et seq.), 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 reduce the duplication 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.
       ``(d) 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.
       ``(e) 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.
       ``(f) Technical Assistance and Training Plan.--In order to 
     receive funds under this subchapter, a Head Start agency 
     shall develop an annual technical assistance and training 
     plan. Such plan shall be based on the agency's self-
     assessment, the community needs assessment, and the needs of 
     parents to be served by such agency.''.

     SEC. 11. HEAD START TRANSITION.

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

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

       ``Each 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--
       ``(1) developing and implementing a systematic procedure 
     for transferring, with parental consent, Head Start program 
     records for each participating child to the school in which 
     such child will enroll;
       ``(2) establishing ongoing channels of communication 
     between Head Start staff and their counterparts in the 
     schools (including teachers, social workers, health staff, 
     and local educational agency liaisons designated under 
     section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii))) to facilitate 
     coordination of programs;
       ``(3) developing continuity of developmentally appropriate 
     curricula and practice between the Head Start agency and 
     local educational agency to ensure an effective transition 
     and appropriate shared expectations for children's learning 
     and development as the children make the transition to 
     school;
       ``(4) conducting meetings involving parents, kindergarten 
     or elementary school teachers, and Head Start teachers to 
     discuss the educational, developmental, and other needs of 
     individual children;
       ``(5) organizing and participating in joint training, 
     including transition-related training of school staff and 
     Head Start staff;
       ``(6) developing and implementing a family outreach and 
     support program, in cooperation with entities carrying out 
     parental involvement efforts under title I of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), 
     and family outreach and support efforts under subtitle B of 
     title VII of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11431 et seq.), taking into consideration the language 
     needs of limited English proficient parents;
       ``(7) assisting families, administrators, and teachers in 
     enhancing educational and developmental continuity and 
     continuity of parental involvement in activities between Head 
     Start services and elementary school classes;
       ``(8) 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;
       ``(9) helping parents understand the importance of parental 
     involvement in a child's academic success while teaching the 
     parents strategies for maintaining parental involvement as 
     their child moves from the Head Start program to elementary 
     school;
       ``(10) developing and implementing a system to increase 
     program participation of underserved populations of eligible 
     children, including children with disabilities, homeless 
     children, children in foster care, and limited English 
     proficient children; and
       ``(11) 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. SUBMISSION OF PLANS TO GOVERNORS.

       Section 643 of the Head Start Act (42 U.S.C. 9838) is 
     amended--
       (1) in the first sentence--
       (A) by inserting ``for approval'' after ``submitted to the 
     chief executive officer of the State''; and
       (B) by striking ``45'' and inserting ``30''; and
       (2) in the last sentence, by inserting ``to Indian and 
     migrant and seasonal Head Start programs in existence on the 
     date of enactment of the Head Start Improvements for School 
     Readiness Act, or'' after ``other assistance''.

     SEC. 13. PARTICIPATION IN HEAD START PROGRAMS.

       Section 645(a) of the Head Start Act (42 U.S.C. 9840(a)) is 
     amended--
       (1) in paragraph (1)(A), by inserting ``130 percent of'' 
     after ``below''; and
       (2) by adding at the end the following:
       ``(3)(A) In this paragraph:
       ``(i) The term `dependent' has the meaning given the term 
     in paragraphs (2)(A) and (4)(A)(i) of section 401(a) of title 
     37, United States Code.
       ``(ii) The terms `member' and `uniformed services' have the 
     meanings given the terms in paragraphs (23) and (3), 
     respectively, of section 101 of title 37, United States Code.
       ``(B) The following amounts of pay and allowance of a 
     member of the uniformed services shall not be considered to 
     be income for purposes of determining the eligibility of a 
     dependent of such member for programs funded under this 
     subchapter:
       ``(i) The amount of any special pay payable under section 
     310 if title 37, United States Code, relating to duty subject 
     to hostile fire or imminent danger.
       ``(ii) The amount of basic allowance payable under section 
     403 of such title, including

[[Page 10887]]

     any such amount that is provided on behalf of the member for 
     housing that is acquired or constructed under the alternative 
     authority for the acquisition and improvement of military 
     housing under subchapter IV of chapter 169 of title 10, 
     United States Code, or any other related provision of law.
       ``(4) After demonstrating a need through a community needs 
     assessment, a Head Start agency may apply to the Secretary to 
     convert part-day sessions, particularly consecutive part-day 
     sessions, into full-day sessions.''.

     SEC. 14. EARLY HEAD START PROGRAMS.

       Section 645A of the Head Start Act (42 U.S.C. 9840a) is 
     amended--
       (1) by striking the section heading and inserting the 
     following:

     ``SEC. 645A. EARLY HEAD START PROGRAMS.'';

       (2) in subsection (b)--
       (A) in paragraph (4), by striking ``provide services to 
     parents to support their role as parents'' and inserting 
     ``provide additional services to parents to support their 
     role as parents (including parenting skills training and 
     training in basic child development)'';
       (B) by redesignating paragraphs (5), (6), (7), (8), and (9) 
     as paragraphs (6), (7), (10), (11), and (12), respectively;
       (C) by inserting after paragraph (4) the following:
       ``(5) where appropriate and in conjunction with services 
     provided under this section to the children's immediate 
     families (or as approved by the Secretary), provide home-
     based services to family child care homes and kin caregivers 
     caring for infants and toddlers who also participate in Early 
     Head Start programs, to provide continuity in supporting the 
     children's physical, social, emotional, and intellectual 
     development;'';
       (D) in paragraph (6), as redesignated by subparagraph (B)--
       (i) by inserting ``(including home-based services)'' after 
     ``with services''; and
       (ii) by inserting ``, and family support services'' after 
     ``health services'';
       (E) by inserting after paragraph (7), as redesignated by 
     subparagraph (B), the following:
       ``(8) 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;
       ``(9) 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
       (F) in paragraph (11), as redesignated by subparagraph 
     (B)--
       (i) by striking ``and providers'' and inserting ``, 
     providers''; and
       (ii) by inserting ``, and the agencies responsible for 
     administering section 106 of the Child Abuse Prevention and 
     Treatment Act (42 U.S.C. 5106a) and parts B and E of title IV 
     of the Social Security Act (42 U.S.C. 620 et seq. and 670 et 
     seq.)'' after ``(20 U.S.C. 1400 et seq.)'';
       (3) in subsection (d)--
       (A) in paragraph (1), by inserting ``, including tribal 
     governments and entities operating migrant and seasonal Head 
     Start programs'' after ``subchapter''; and
       (B) in paragraph (2), by inserting ``, including community-
     based organizations'' after ``private entities'';
       (4) in subsection (g)(2)(B), by striking clause (iv) and 
     inserting the following:
       ``(iv) providing professional development and personnel 
     enhancement activities, including the provision of funds to 
     recipients of grants under subsection (a), relating to--

       ``(I) effective methods of conducting parent education, 
     home visiting, and promoting quality early childhood 
     development;
       ``(II) recruiting and retaining qualified staff; and
       ``(III) increasing program participation for underserved 
     populations of eligible children.'';

       (5) by adding at the end the following:
       ``(h) Staff Qualifications and Development.--
       ``(1) Center-based staff.--The Secretary shall ensure that, 
     not later than September 30, 2010, 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.
       ``(2) Home visitor staff.--
       ``(A) Standards.--In order to further enhance the quality 
     of home visiting services provided to families of children 
     participating in home-based, center-based, or combination 
     program options under this subchapter, the Secretary shall 
     establish standards for training, qualifications, and the 
     conduct of home visits for home visitor staff in Early Head 
     Start programs.
       ``(B) Contents.--The standards for training, 
     qualifications, and the conduct of home visits shall include 
     content related to--
       ``(i) structured child-focused home visiting that promotes 
     parents' ability to support the child's cognitive, social, 
     emotional, and physical development;
       ``(ii) effective strengths-based parent education, 
     including methods to encourage parents as their child's first 
     teachers;
       ``(iii) early childhood development with respect to 
     children from birth through age 3;
       ``(iv) methods to help parents promote emergent literacy in 
     their children from birth through age 3, including use of 
     research-based strategies to support the development of 
     literacy and language skills for children who are limited 
     English proficient;
       ``(v) health, vision, hearing, and developmental 
     screenings;
       ``(vi) strategies for helping families coping with crisis; 
     and
       ``(vii) the relationship of health and well-being of 
     pregnant women to prenatal and early child development.''.

     SEC. 15. APPEALS, NOTICE, AND HEARING AND RECORDS AND AUDITS.

       (a) Appeals.--Section 646(a) of the Head Start Act (42 
     U.S.C. 9841(a)) is amended by striking paragraphs (3) and (4) 
     and inserting the following:
       ``(3) financial assistance under this subchapter may be 
     terminated or reduced, and an application for funding may be 
     denied, after the recipient has been afforded reasonable 
     notice and opportunity for a full and fair hearing, 
     including--
       ``(A) a right to file a notice of appeal of a decision 
     within 30 days of notice of the decision from the Secretary; 
     and
       ``(B) access to a full and fair hearing of the appeal, not 
     later than 120 days from receipt by the Secretary of the 
     notice of appeal;
       ``(4) the Secretary shall develop and publish procedures 
     (including mediation procedures) to be used in order to--
       ``(A) resolve in a timely manner conflicts potentially 
     leading to an adverse action between--
       ``(i) recipients of financial assistance under this 
     subchapter; and
       ``(ii) delegate agencies or Head Start Parent Policy 
     Councils;
       ``(B) avoid the need for an administrative hearing on an 
     adverse action; and
       ``(C) prohibit a Head Start agency from expending financial 
     assistance awarded under this subchapter for the purpose of 
     paying legal fees pursuant to an appeal under paragraph (3), 
     except that such fees shall be reimbursed by the Secretary if 
     the agency prevails in such decision; and
       ``(5) the Secretary may suspend funds to a grantee for not 
     more than 30 days.''.
       (b) Recipients.--Section 647(a) of the Head Start Act (42 
     U.S.C. 9842(a)) is amended by striking ``Each recipient of'' 
     and inserting ``Each Head Start agency, Head Start center, or 
     Early Head Start center receiving''.
       (c) Accounting.--Section 647 of the Head Start Act (42 
     U.S.C. 9842) is amended by adding at the end the following:
       ``(c) Each Head Start agency, Head Start center, or Early 
     Head Start center receiving financial assistance under this 
     subchapter shall maintain, and annually submit to the 
     Secretary, a complete accounting of its administrative 
     expenses, including expenses for salaries and compensation 
     funded under this subchapter and provide such additional 
     documentation as the Secretary may require.''.

     SEC. 16. TECHNICAL ASSISTANCE AND TRAINING.

       Section 648 of the Head Start Act (42 U.S.C. 9843) is 
     amended--
       (1) in subsection (a)(2), by striking ``(b) and (c)'' and 
     inserting ``(b), (c), and (d)'';
       (2) by redesignating subsections (b) through (e) as 
     subsections (c) through (f), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) The Secretary shall make available funds set aside in 
     section 640(a)(2)(C)(ii) to support a regional or State 
     system of early childhood education training and technical 
     assistance that improves the capacity of Head Start programs 
     to deliver services in accordance with the standards 
     described in section 641A(a)(1), with particular attention to 
     the standards described in subparagraphs (A) and (B) of such 
     section. The Secretary shall--
       ``(1) ensure that 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 Associations, State agencies, migrant and 
     seasonal Head Start programs, and other entities providing 
     training and technical assistance in early education, for the 
     region or State are included in the planning and coordination 
     of the system; and
       ``(2) encourage States to supplement the funds authorized 
     in section 640(a)(2)(C)(ii) with Federal, State, or local 
     funds other than Head Start funds, to expand training and 
     technical assistance activities beyond Head Start agencies to 
     include other providers of other early childhood services 
     within a region or State.'';
       (4) in subsection (d), as so redesignated--
       (A) in paragraph (1)(B)(ii), by striking ``educational 
     performance measures'' and inserting ``measures'';
       (B) in paragraph (2), by inserting ``and for activities 
     described in section 1221(b)(3) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6371(b)(3))'' 
     after ``children with disabilities'';
       (C) in paragraph (5), by inserting ``, including assessing 
     the needs of homeless children and their families'' after 
     ``needs assessment'';
       (D) in paragraph (10), by striking ``; and'' and inserting 
     a semicolon;
       (E) in paragraph (11), by striking the period and inserting 
     a semicolon; and

[[Page 10888]]

       (F) by adding at the end the following:
       ``(12) assist Head Start agencies and programs in 
     increasing the program participation of homeless children;
       ``(13) provide training and technical assistance to members 
     of governing bodies to ensure that the members can fulfill 
     the functions described in section 641(a)(4);
       ``(14) provide training and technical assistance to Head 
     Start agencies to assist such agencies in conducting self-
     assessments; and
       ``(15) assist Head Start agencies and Head Start programs 
     in improving outreach to, and quality of services available 
     to, limited English proficient children and their families, 
     including such services to help such families learn English, 
     particularly in communities that have experienced a large 
     percentage increase in the population of limited English 
     proficient individuals, as measured by the Bureau of the 
     Census.'';
       (5) in subsection (e), as so redesignated, by inserting 
     ``including community-based organizations,'' after 
     ``nonprofit entities'';
       (6) in subsection (f), as so redesignated, by inserting 
     ``or providing services to children determined to be abused 
     or neglected, training for personnel providing services to 
     children referred by entities providing child welfare 
     services or receiving child welfare services,'' after 
     ``English language),''; and
       (7) by adding at the end the following:
       ``(g) 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 farmworking families, families with 
     limited English proficiency, and homeless families.
       ``(h) Funds used under this section shall be used to 
     provide high quality, sustained, and intensive, 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 1 or more 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) Funds used under this section for training shall be 
     used for needs identified annually by a grant applicant or 
     delegate agency in its program improvement plan, except that 
     funds shall not be used for long-distance travel expenses for 
     training activities--
       ``(1) available locally or regionally; or
       ``(2) substantially similar to locally or regionally 
     available training activities.
       ``(j)(1) To support local efforts to enhance early language 
     and preliteracy development of children in Head Start 
     programs, and to provide the children with high-quality oral 
     language skills, and environments that are rich in 
     literature, in which to acquire language and preliteracy 
     skills, each Head Start agency, in coordination with the 
     appropriate State office and the relevant State Head Start 
     collaboration office, shall ensure that all of the agency's 
     Head Start teachers receive ongoing training in language and 
     emergent literacy (referred to in this subsection as 
     `literacy training'), including appropriate curricula and 
     assessments to improve instruction and learning. Such 
     training shall include training in methods to promote 
     phonological and phonemic awareness and vocabulary 
     development in an age-appropriate and culturally and 
     linguistically appropriate manner.
       ``(2) The literacy training shall be provided at the local 
     level in order--
       ``(A) to be provided, to the extent feasible, in the 
     context of the Head Start programs of the State involved and 
     the children the program serves; and
       ``(B) to be tailored to the early childhood literacy 
     background and experience of the teachers involved.
       ``(3) The literacy training shall be culturally and 
     linguistically appropriate and support children's development 
     in their home language.
       ``(4) The literacy training shall include training in how 
     to work with parents to enhance positive language and early 
     literacy development at home.
       ``(5) The literacy training shall include specific methods 
     to best address the needs of children who are English 
     language learners or are limited English proficient.
       ``(6) The literacy training shall include specific methods 
     to best address the needs of children who have speech and 
     language delays, including problems with articulation, or 
     have other disabilities.''.

     SEC. 17. STAFF QUALIFICATION AND DEVELOPMENT.

       Section 648A of the Head Start Act (42 U.S.C. 9843a) is 
     amended--
       (1) in subsection (a)--
       (A) by striking paragraph (2) and inserting the following:
       ``(2) Degree requirements.--
       ``(A) In general.--The Secretary shall ensure that--
       ``(i) not later than September 30, 2010, all Head Start 
     teachers in center-based programs have at least--

       ``(I)(aa) an associate degree (or equivalent coursework) 
     relating to early childhood; or
       ``(bb) an associate degree in a related educational area 
     and, to the extent practicable, coursework relating to early 
     childhood; and
       ``(II) demonstrated teaching competencies, as determined by 
     the program director involved (including, at a minimum, an 
     appropriate level of literacy, a demonstrated capacity to be 
     highly engaged with children, and a demonstrated ability to 
     effectively implement an early childhood curriculum); and

       ``(ii) not later than September 30, 2008, all Head Start 
     curriculum specialists and education coordinators in center-
     based programs have--

       ``(I) the capacity to offer assistance to other teachers in 
     the implementation and adaptation of curricula to the group 
     and individual needs of a class; and
       ``(II)(aa) a baccalaureate or advanced degree relating to 
     early childhood; or
       ``(bb) a baccalaureate or advanced degree and coursework 
     equivalent to a major relating to early childhood;

       ``(iii) not later than September 30, 2008, all Head Start 
     teaching assistants in center-based programs have--

       ``(I) at least a child development associate credential;
       ``(II) enrolled in a program leading to an associate or 
     baccalaureate degree; or
       ``(III) enrolled in a child development associate 
     credential program to be completed within 2 years; and

       ``(iv) not later than September 30, 2011--

       ``(I) in States that have established teacher requirements 
     for State prekindergarten programs, all Head Start teachers 
     in center-based programs--

       ``(aa) if such requirements are not less than those 
     requirements described in subclause (II), meet such teacher 
     requirements for State prekindergarten programs; and
       ``(bb) if such requirements are less than those 
     requirements described in subclause (II), meet the 
     requirements described in subclause (II); and

       ``(II) in States that do not have teacher requirements for 
     their State prekindergarten programs, 50 percent of all Head 
     Start teachers in each center-based program have a 
     baccalaureate degree relating to early childhood (or a 
     related educational area or a baccalaureate degree that meets 
     State specialized training requirements for prekindergarten 
     teachers, such as State licensure, endorsement, or 
     certification for prekindergarten or other early childhood 
     area), and demonstrated teaching competencies, as determined 
     by the program director involved (including, at a minimum, an 
     appropriate level of literacy, a demonstrated capacity to be 
     highly engaged with children, and a demonstrated ability to 
     effectively implement an early childhood curriculum).

       ``(B) Teacher in-service requirement.--Each Head Start 
     teacher shall attend an average of not less than 15 clock 
     hours of professional development per year. Such professional 
     development shall be 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, and regularly evaluated for effectiveness.
       ``(C) Progress.--
       ``(i) Report.--The Secretary shall--

       ``(I) require Head Start agencies to--

       ``(aa) demonstrate continuing progress each year to reach 
     the result described in subparagraph (A);
       ``(bb) submit to the Secretary a report indicating the 
     number and percentage of classroom instructors in center-
     based programs with child development associate credentials 
     or associate, baccalaureate, or graduate degrees; and

       ``(II) compile and submit a summary of all program reports 
     described in subclause (I)(bb) 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.

       ``(ii) Demonstrate progress.--A Head Start agency may 
     demonstrate progress by partnering with institutions of 
     higher education or other programs that recruit, train, 
     place, and support college students to deliver an innovative 
     early learning program to preschool children.
       ``(D) Service requirements.--The Secretary shall establish 
     requirements to ensure that, in order to enable Head Start 
     agencies to comply with the requirements of subparagraph (A), 
     individuals who receive financial assistance under this 
     subchapter to pursue a degree described in subparagraph (A) 
     shall--
       ``(i) teach or work in a Head Start program for a minimum 
     of 3 years after receiving the degree; or
       ``(ii) repay the total or a prorated amount of the 
     financial assistance received based on the length of service 
     completed after receiving the degree.''; and
       (B) by striking paragraphs (3) and (4) and inserting the 
     following:
       ``(3) Waiver.--
       ``(A) In general.--On request, the Secretary may grant a 
     waiver of the postsecondary degree requirements of paragraph 
     (2) for 1 or more Head Start agencies, either individually, 
     statewide, or throughout a region, that can demonstrate--
       ``(i) that continuing aggressive statewide and national 
     efforts have been unsuccessful at recruiting an individual to 
     serve as a Head Start teacher or curriculum specialist or 
     education coordinator who meets the requirements of paragraph 
     (2)(A);
       ``(ii) limited access to degree programs (including quality 
     distance learning programs),

[[Page 10889]]

     due to the remote location of the program involved; or
       ``(iii) that Head Start staff members are, as of the day 
     the waiver is granted, enrolled in a program that--

       ``(I) grants the required degree; and
       ``(II) will be completed within 1 year.

       ``(B) Limitation.--An agency that receives a waiver under 
     subparagraph (A) shall ensure that Head Start teachers for 
     the agency, as of the day the waiver is granted, who have not 
     met the postsecondary degree requirements of paragraph (2) 
     but are otherwise highly qualified and competent shall be 
     directly and appropriately supervised by a teacher who has 
     met or exceeded the requirements of this subchapter.
       ``(C) Duration.--The Secretary may not grant a waiver under 
     subparagraph (A) for a period that exceeds 1 year.'';
       (2) in subsection (c)--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(4) promote the use of appropriate strategies to meet the 
     needs of special populations (including limited English 
     proficient populations).'';
       (3) in subsection (d)(3)(C) by inserting ``, including a 
     center,'' after ``any agency''; and
       (4) by adding at the end the following:
       ``(f) Professional Development Plans.--Every Head Start 
     agency and center shall create, in consultation with 
     employees of the agency or center (including family service 
     workers), a professional development plan for employees who 
     provide direct services to children, including a plan for 
     classroom teachers, curriculum specialists, and education 
     coordinators to meet the requirements set forth in subsection 
     (a).''.

     SEC. 18. TRIBAL COLLEGES AND UNIVERSITIES HEAD START 
                   PARTNERSHIP.

       The Head Start Act (42 U.S.C. 9831 et seq.) is amended by 
     inserting after section 648A the following:

     ``SEC. 648B. TRIBAL COLLEGE OR UNIVERSITY HEAD START 
                   PARTNERSHIP PROGRAM.

       ``(a) Purpose.--The purpose of this section is to promote 
     social competencies and school readiness in Indian children.
       ``(b) Tribal College or University Head Start Partnership 
     Program.--
       ``(1) Grants.--The Secretary is authorized to award grants, 
     for periods of not less than 5 years, to Tribal Colleges and 
     Universities to--
       ``(A) implement education programs that include education 
     concerning tribal culture and language and increase the 
     number of associate, baccalaureate, and graduate degrees in 
     early childhood education and related fields that are earned 
     by Indian Head Start agency staff members, parents of 
     children served by such an agency, and members of the tribal 
     community involved;
       ``(B) develop and implement the programs under subparagraph 
     (A) in technology-mediated formats, including providing the 
     programs through such means as distance learning and use of 
     advanced technology, as appropriate; and
       ``(C) provide technology literacy programs for Indian Head 
     Start agency staff members and children and families of 
     children served by such an agency.
       ``(2) Staffing.--The Secretary shall ensure that the 
     American Indian Programs Branch of the Head Start Bureau of 
     the Department of Health and Human Services shall have 
     staffing sufficient to administer the programs under this 
     section and to provide appropriate technical assistance to 
     Tribal Colleges and Universities receiving grants under this 
     section.
       ``(c) Application.--Each Tribal College or University 
     desiring a grant under this section shall submit an 
     application to the Secretary, at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including a certification that the Tribal College or 
     University has established a partnership with 1 or more 
     Indian Head Start agencies for the purpose of conducting the 
     activities described in subsection (b).
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, 
     $10,000,000 for fiscal year 2006 and such sums as may be 
     necessary for each of fiscal years 2007 through 2010.
       ``(e) Definitions.--In this section:
       ``(1) Institution of higher education.--The term 
     `institution of higher education' has the meaning given such 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       ``(2) Tribal college or university.--The term `Tribal 
     College or University'--
       ``(A) has the meaning given such term in section 316 of the 
     Higher Education Act of 1965 (20 U.S.C. 1059c); and
       ``(B) means an institution determined to be accredited or a 
     candidate for accreditation by a nationally recognized 
     accrediting agency or association.''.

     SEC. 19. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

       Section 649 of the Head Start Act (42 U.S.C. 9844) is 
     amended--
       (1) in subsection (a)(1)(B), by inserting ``and children 
     determined to be abused or neglected'' after ``children with 
     disabilities'';
       (2) in subsection (d)--
       (A) in paragraph (8), by adding ``and'' after the 
     semicolon;
       (B) by striking paragraph (9);
       (C) by redesignating paragraph (10) as paragraph (9); and
       (D) by striking the last sentence;
       (3) in subsection (g)--
       (A) in paragraph (1)(A)--
       (i) by striking clause (i); and
       (ii) by redesignating clauses (ii) and (iii) as clauses (i) 
     and (ii), respectively; and
       (B) in paragraph (7)(C)--
       (i) in clause (i)(I), by striking ``2003'' and inserting 
     ``2007''; and
       (ii) in clause (ii), by striking ``Labor and Human 
     Resources'' and inserting ``Health, Education, Labor, and 
     Pensions''; and
       (4) by striking subsection (h) and inserting the following:
       ``(h) National Academy of Sciences Study.--
       ``(1) In general.--The Secretary shall enter into a 
     contract with the Board on Children, Youth, and Families of 
     the National Research Council, the Board on Testing and 
     Assessments, and the Institute of Medicine, of the National 
     Academy of Sciences to establish an independent panel of 
     experts to review and synthesize research and theories in the 
     social, behavioral, and biological sciences regarding early 
     childhood, and make recommendations with regard to each of 
     the following:
       ``(A) Age- and developmentally appropriate Head Start 
     academic requirements and outcomes, including the standards 
     described in section 641A(a)(1)(B)(ii).
       ``(B) Differences in the type, length, mix, and intensity 
     of services that are necessary to ensure that children from 
     challenging family or social backgrounds (including low-
     income children, children with disabilities, and limited 
     English proficient children) enter kindergarten ready to 
     succeed.
       ``(C) Appropriate assessments of young children for the 
     purposes of improving instruction, services, and program 
     quality, including--
       ``(i) formal and systematic observational assessments in a 
     child's natural environment;
       ``(ii) assessments of children's development through parent 
     and provider interviews;
       ``(iii) appropriate accommodations for children with 
     disabilities and limited English proficient children;
       ``(iv) appropriate assessments for children with 
     disabilities, limited English proficient children, and 
     children from different cultural backgrounds; and
       ``(v) other assessments used in Head Start programs.
       ``(D) Identification of existing, or recommendations for 
     the development of, scientifically based, valid and reliable 
     assessments that are capable of measuring child outcomes in 
     the domains important to school readiness, including language 
     skills, prereading ability, premathematics ability, cognitive 
     ability, scientific ability, social and emotional 
     development, and physical development;
       ``(E) Appropriate use and application of valid and reliable 
     assessments for Head Start programs identified in accordance 
     with subparagraph (D).
       ``(2) Composition.--
       ``(A) In general.--The panel described in paragraph (1) 
     shall consist of multiple experts in each of the following 
     areas:
       ``(i) Child development (including cognitive, social, 
     emotional, and physical development) and child education 
     (including approaches to learning).
       ``(ii) Professional development, including preparation of 
     individuals who teach young children.
       ``(iii) Assessment of young children (including children 
     with disabilities and limited English proficient children), 
     including screening, diagnostic, and classroom-based 
     instructional assessment.
       ``(B) Representatives.--The panel described in paragraph 
     (1) shall be selected and appointed by the National Academy 
     of Sciences, after consultation with the Secretary of Health 
     and Human Services.
       ``(3) Timing.--
       ``(A) Establishment.--Not later than 90 days after the date 
     of enactment of the Head Start Improvements for School 
     Readiness Act, the Board on Children, Youth, and Families of 
     the National Research Council, the Board on Testing and 
     Assessments, and the Institute of Medicine, of the National 
     Academy of Sciences shall establish the panel described in 
     paragraph (1), including selecting and appointing the members 
     of the panel. Representatives described in paragraph (2) 
     shall be selected and appointed after consultation with the 
     Secretary.
       ``(B) Recommendations.--Not later than 1 year after the 
     panel described in paragraph (1) is established, the panel 
     shall complete, and submit to the Secretary a report 
     containing, the recommendations described in paragraph (1). 
     The Secretary shall not implement the amendments made to 
     section 641A(a)(1)(B)(ii) by the Head Start Improvements for 
     School Readiness Act until the panel submits the report.
       ``(4) Application of panel report.--The Secretary shall use 
     the results of the review and recommendations described in 
     paragraph (1) to (where appropriate) develop, inform, and 
     revise--

[[Page 10890]]

       ``(A) the educational standards, and the performance 
     measures, described in section 641A; and
       ``(B) the assessments utilized in the Head Start programs.
       ``(i) Services to Limited English Proficient Children and 
     Families.--
       ``(1) Study.--The Secretary shall conduct a study on the 
     status of limited English proficient children and their 
     families in Head Start or Early Head Start programs.
       ``(2) Report.--The Secretary shall prepare and submit to 
     Congress, not later than September 2009, a report containing 
     the results of the study, including information on--
       ``(A) the demographics of limited English proficient 
     children from birth through age 5, including the number of 
     such children receiving Head Start or Early Head Start 
     services and the geographic distribution of children 
     described in this subparagraph;
       ``(B) the nature of Head Start or Early Head Start services 
     provided to limited English proficient children and their 
     families, including the types, content, duration, intensity, 
     and costs of family services, language assistance, and 
     educational services;
       ``(C) procedures in Head Start programs for the assessment 
     of language needs and the transition of limited English 
     proficient children to kindergarten, including the extent to 
     which Head Start programs meet the requirements of section 
     642A for limited English proficient children;
       ``(D) the qualifications and training provided to Head 
     Start and Early Head Start teachers serving limited English 
     proficient children and their families;
       ``(E) the rate of progress made by limited English 
     proficient children and their families in Head Start programs 
     and Early Head Start programs, including--
       ``(i) the rate of progress of the limited English 
     proficient children toward meeting the additional educational 
     standards described in section 641A(a)(1)(B)(ii) while 
     enrolled in Head Start programs, measured between 1990 and 
     2004;
       ``(ii) the correlation between such progress and the type 
     of instruction and educational program provided to the 
     limited English proficient children; and
       ``(iii) the correlation between such progress and the 
     health and family services provided by Head Start programs to 
     limited English proficient children and their families; and
       ``(F) the extent to which Head Start programs make use of 
     funds under section 640(a)(3) to improve the quality of Head 
     Start services provided to limited English proficient 
     children and their families.''.

     SEC. 20. REPORTS.

       Section 650 of the Head Start Act (42 U.S.C. 9846) is 
     amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``Labor and Human Resources'' and inserting ``Health, 
     Education, Labor, and Pensions'';
       (B) in paragraph (8), by inserting ``homelessness, children 
     in foster care, children who are abused or neglected,'' after 
     ``ethnic background,''; and
       (C) in the flush matter at the end by striking ``Labor and 
     Human Resources'' and inserting ``Health, Education, Labor, 
     and Pensions''; and
       (2) in subsection (b), by striking ``Labor and Human 
     Resources'' and inserting ``Health, Education, Labor, and 
     Pensions''.

     SEC. 21. COMPARABILITY OF WAGES.

       Section 653 of the Head Start Act (42 U.S.C. 9848) is 
     amended--
       (1) by striking ``The Secretary shall take'' and inserting 
     ``(a) The Secretary shall take'';
       (2) in the first sentence of subsection (a), by striking 
     ``or (2)'' and inserting ``(2) in excess of the salary of the 
     Secretary, in the case of an individual compensated with 
     funds awarded under this subchapter or the Community Services 
     Block Grant Act (42 U.S.C. 9901 et seq.); or (3)''; and
       (3) by adding at the end the following:
       ``(b) If in any fiscal year the restriction described in 
     subsection (a)(2) is violated, the Secretary shall withhold 
     from the base grant of the Head Start agency involved (as 
     defined in section 641A(g)(1)) for the next fiscal year, an 
     amount equal to the aggregate amount by which the salary that 
     resulted in the violation exceeded the salary of the 
     Secretary.''.

     SEC. 22. LIMITATION WITH RESPECT TO CERTAIN UNLAWFUL 
                   ACTIVITIES.

       Section 655 of the Head Start Act (42 U.S.C. 9850) is 
     amended by inserting ``or in'' after ``assigned by''.

     SEC. 23. POLITICAL ACTIVITIES.

       Section 656 of the Head Start Act (42 U.S.C. 9851) is 
     amended--
       (1) by striking all that precedes ``chapter 15'' and 
     inserting the following:

     ``SEC. 656. POLITICAL ACTIVITIES.

       ``(a) State or Local Agency.--For purposes of''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) Restrictions.--
       ``(1) In general.--A program assisted under this 
     subchapter, and any individual employed by, or assigned to, a 
     program assessed under this subchapter (during the hours in 
     which such individual is working on behalf of such program), 
     shall not engage in--
       ``(A) any partisan or nonpartisan political activity or any 
     other political activity associated with a candidate, or 
     contending faction or group, in an election for public or 
     party office;
       ``(B) any activity to provide voters or prospective voters 
     with transportation to the polls or similar assistance in 
     connection with any such election; or
       ``(C) any voter registration activity.
       ``(2) Rules and regulations.--The Secretary, after 
     consultation with the Director of the Office of Personnel 
     Management, may issue rules and regulations to provide for 
     the enforcement of this section, which may include provisions 
     for summary suspension of assistance or other action 
     necessary to permit enforcement on an emergency basis.''.

     SEC. 24. PARENTAL CONSENT REQUIREMENT FOR HEALTH SERVICES.

       The Head Start Act (42 U.S.C. 9831 et seq.) is amended by 
     adding at the end the following new section:

     ``SEC. 657A. 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 the child or the health or safety of another 
     individual; and
       ``(2) requires incision or is otherwise invasive, or 
     involves exposure of private body parts.
       ``(b) Requirement.--A Head Start agency shall obtain 
     written parental consent before administration of, or 
     referral for, any health care service provided or arranged to 
     be provided, including any nonemergency intrusive physical 
     examination of a child in connection with participation in a 
     program under this subchapter.
       ``(c) Rule of Construction.--Nothing in this section shall 
     be construed to prohibit agencies 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.''.

                          ____________________