SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Head Start Quality Improvement 
Act''.

SEC. 2. QUALITY IMPROVEMENT FUNDS.

    Section 637(5)(B) of the Head Start Act (42 U.S.C. 9832(5)(B)) is 
amended by striking ``25 percent'' and inserting ``30 percent''.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    Section 639(c) of the Head Start Act (42 U.S.C. 9834(c)) is amended 
to read as follows:
    ``(c) The Secretary shall make available to carry out the Head 
Start Transition Project Act, from the amount appropriated under 
subsection (a), not less than $50,000,000 for each of fiscal years 1993 
through 1996.''.

SEC. 4. MONITORING AND INCENTIVE GRANTS.

    Section 640(a)(2)(C) of the Head Start Act (42 U.S.C. 
9835(a)(2)(C)) is amended to read as follows:
            ``(C) program improvement activities, in an amount for each 
        fiscal year that is not less than 3 percent of the sum 
        appropriated under section 639 for such fiscal year, of which 
        amount--
                    ``(i) 75 percent shall be made available for 
                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;
                    ``(ii) 12.5 percent shall be made available to 
                provide funds for carrying out reviews and interim 
                evaluations under section 641(c)(1), audits and 
                examinations under section 647(b), and evaluations 
                under section 651, which funds shall be used to 
                supplement, and not supplant, any Federal funds that 
                would otherwise have been available to carry out such 
                reviews, audits, examinations, and evaluations; and
                    ``(iii) 12.5 percent shall be made available to 
                make grants to Head Start agencies that exceed the 
                outcome measures described in section 651(b)(2), for 
                carrying out the quality improvement activities 
                described in paragraph (3)(A).''.

SEC. 5. HEAD START AGENCIES.

    (a) Grants.--Section 641(a) of the Head Start Act (42 U.S.C. 
9836(a)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B);
            (2) by inserting ``(1)'' after ``(a)''; and
            (3) by adding at the end the following:
    ``(2) The Secretary may make grants to designated Head Start 
agencies to carry out Head Start programs under this Act.
    ``(3) The first grant awarded to an agency serving a community 
after the date of enactment of this paragraph, and first designation of 
such agency as a Head Start agency after such date, shall be for a 
period of 7 years. Subsequent grants and designations shall be made for 
periods of not less than 7 years.
    ``(4) To be eligible to be designated as a Head Start agency and 
receive such a grant, an agency shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require.''.
    (b) Reviews and Interim Evaluations.--Section 641(c) of the Head 
Start Act (42 U.S.C. 9836(c)) is amended--
            (1) by striking paragraph (1);
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``and shall'' and inserting 
                        ``and shall conduct an interim evaluation 
                        including a site visit at the site of such 
                        agency at least once each year, in order to''; 
                        and
                            (ii) by inserting ``, including outcome 
                        measures described in section 651(b)(2),'' 
                        after ``requirements''; and
                    (B) in subparagraph (C)--
                            (i) by striking ``The'' and inserting ``In 
                        addition to conducting the reviews and interim 
                        evaluations required under subparagraphs (A) 
                        and (B), the''; and
                            (ii) by striking ``followup reviews'' and 
                        inserting ``followup reviews and interim 
                        evaluations'';
            (3) in paragraph (3)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``review'' and inserting ``review or interim 
                evaluation'';
                    (B) in subparagraph (A), by striking ``review'' and 
                inserting ``review or interim evaluation''; and
                    (C) in subparagraph (B), by striking ``such review 
                at the site of such agency'' and inserting ``such a 
                site visit, conducted as part of a review or interim 
                evaluation'';
            (4) in paragraph (4)--
                    (A) by striking ``(4)'' and inserting ``(4)(A)'';
                    (B) in subparagraph (A) (as so designated by 
                subparagraph (A) of this paragraph) by striking 
                ``review'' and inserting ``review or interim 
                evaluation''; and
                    (C) add at the end the following:
    ``(B) If, in carrying out such a review or interim evaluation, the 
Secretary identifies program deficits in the programs provided by the 
agency, the Secretary--
            ``(i) may require the agency to take corrective action to 
        correct the program deficits;
            ``(ii) shall provide technical assistance under section 
        648(a) for the 1-year period beginning on the date of the 
        review or interim evaluation; and
            ``(iii) may conduct a full review of the program.
    ``(C)(i) In addition to any other authority of the Secretary to 
revoke the designation of an agency as a Head Start agency, if the 
Secretary determines that the agency described in subparagraph (B) has 
not corrected program deficits related to the outcome measures 
described in section 651(b)(2) within 1 year after the review or 
interim evaluation described in subparagraph (B), the Secretary may 
revoke such designation of the agency.
    ``(ii) The Secretary shall provide notice and an opportunity for 
comment to the agency prior to revoking the designation of the agency.
    ``(iii) After so revoking the designation of an agency that serves 
a community, the Secretary may designate, in accordance with subsection 
(d), an agency described in subsection (a) as a Head Start agency to 
serve the community and make grants under subsection (a) to such 
agency.''; and
            (5) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (1), (2), and (3), respectively.
    (c) Considerations.--Section 641(d) of the Head Start Act 942 
U.S.C. 9836(d)) is amended--
            (1) in the first sentence, by striking ``If there is'' and 
        all that follows through ``then the'' and inserting ``The'';
            (2) in the second sentence, by striking ``criteria,'' and 
        all that follows and inserting ``including outcome measures 
        described in section 651(b)(2), criteria, and standards, in 
        effect on the date of designation.'';
            (3) at the end of paragraph (8), by striking ``and'';
            (4) at the end of paragraph (9), by striking the period and 
        inserting ``; and''; and
            (5) by adding at the end the following:
            ``(10) the ability of the applicant to ensure continuity of 
        Head Start services.''.
    (d) Existing Head Start Agencies.--
            (1) Application.--Each agency that is a designated Head 
        Start agency under section 641 of the Head Start Act on the 
        date of enactment of this Act shall submit an application to 
        the Secretary of Health and Human Services as described in 
        section 641(a)(4) of such Act (as added by subsection (a) of 
        this section) and in accordance with the schedule described in 
        paragraph (2), in order to be eligible to--
                    (A) be designated as a Head Start agency; and
                    (B) receive a grant,
        for an additional period under section 641 of such Act.
            (2) Schedule.--The Secretary of Health and Human Services 
        shall by regulation establish a schedule for the submission of 
        applications as required in paragraph (1), which schedule shall 
        ensure the submission of all such applications within 7 years 
        after the date of enactment of this Act.
    (e) Technical and Conforming Amendment.--Section 651(g)(10) of the 
Head Start Act (42 U.S.C. 9846(g)(10)) is amended by striking 
``evaluations conducted under section 641(c)(2)'' and inserting 
``reviews and interim evaluations conducted under section 641(c)(1)''.

SEC. 6. ELIGIBILITY.

    Section 645(a)(1) of the Head Start Act (42 U.S.C. 9840(a)(1)) is 
amended to read as follows:
    ``(1)(A) The Secretary shall by regulation prescribe eligibility 
criteria for the participation of persons in Head Start programs 
assisted under this subchapter.
    ``(B) Except as provided in paragraph (2), such criteria may 
provide--
            ``(i) that a child from a low-income family shall be 
        eligible for participation in a program assisted under this 
        subchapter if the child is from--
                    ``(I) a family that has an income below the poverty 
                line; or
                    ``(II) a family that is eligible or, in the absence 
                of child care, would potentially be eligible for public 
                assistance;
            ``(ii) pursuant to such regulations as the Secretary shall 
        prescribe, that programs assisted under this subchapter may 
        include, to a reasonable extent, participation of children in 
        the area served who would benefit from such programs but whose 
        families do not meet the low-income criteria prescribed 
        pursuant to clause (i); and
            ``(iii) that a child shall be eligible for participation in 
        such a program if the child is from a family described in 
        subclause (I) or (II) of clause (i) on a date not more than 2 
        years before such participation, regardless of whether the 
        child was of an appropriate age to participate in such a 
        program on such date.''.

SEC. 7. NOTICE, HEARINGS, AND APPEALS.

    The Head Start Act is amended by repealing section 646 (42 U.S.C. 
9841) and inserting the following:

``SEC. 646. NOTICE, HEARINGS, AND APPEALS.

    ``The Secretary shall establish and implement procedures for 
providing notice, an opportunity for a hearing, and an opportunity for 
an appeal to persons who are grant recipients or applicants for grants 
under this Act. Such procedures shall be consistent with other 
procedures of the Department of Health and Human Services for providing 
such notice and such opportunities with respect to similar financial 
assistance.''.

SEC. 8. OUTCOME MEASURES.

    Section 651(b) of the Head Start Act (42 U.S.C. 9846(b)) is 
amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2) The Secretary shall promulgate regulations establishing 
outcome measures for Head Start agencies carrying out Head Start 
programs under this subchapter, which regulations shall require that, 
effective January 1, 1995, each Head Start agency carrying out such a 
Head Start program shall--
            ``(A)(i) conduct initial assessments of developmental 
        skills, including physical development, self-help skills, 
        social development, academic development, and communication 
        skills, for not less than 90 percent of the children who have 
        been enrolled in the program for not less than 90 days;
            ``(ii) conduct exit assessments of such developmental 
        skills for not less than 90 percent of the children who--
                    ``(I) have been enrolled in the program for not 
                less than 6 months; and
                    ``(II) are leaving the program;
            ``(iii) provide remedial activities to not less than 90 
        percent of the children enrolled in the program who have 
        identified developmental delays, to address the delays;
            ``(iv) prepare a medical, dental, and developmental history 
        for not less than 90 percent of the children who have been 
        enrolled in the program for not less than 90 days;
            ``(v) conduct medical, vision, hearing, and dental 
        screenings for not less than 90 percent of the children who 
        have been enrolled in the program for not less than 90 days;
            ``(vi) conduct medical and dental examinations for not less 
        than 90 percent of the children who have been enrolled in the 
        program for not less than 6 months;
            ``(vii) provide necessary treatment to not less than 90 
        percent of the children with identified medical and dental 
        needs who are enrolled in the program; and
            ``(viii) fully immunize, in accordance with Head Start 
        guidelines, all of the children who have been enrolled in the 
        program for not less than 90 days;
            ``(B)(i) prepare a family needs assessment, which utilizes 
        a formal assessment tool and meets such specifications as the 
        Secretary may require, for not less than 80 percent of the 
        families of children enrolled in the program;
            ``(ii) prepare a family assistance plan, which outlines the 
        specific measures to be taken by the staff of the Head Start 
        agency and members of the family to meet the needs of the 
        family, for not less than 75 percent of such families;
            ``(iii) provide assistance to not less than 75 percent of 
        such families who have identified needs, to assist such 
        families in meeting the goals and objectives of the family 
        assistance plan;
            ``(iv) provide an opportunity to participate in a parenting 
        skills program, or other assistance designed to improve 
        parenting skills, to not less than 90 percent of such families 
        who have identified needs related to parenting skills;
            ``(v) provide education and job skills assistance, 
        including participation in literacy, job search, and other 
        activities, to facilitate participation in appropriate 
        education and job skills programs, to not less than 90 percent 
        of families described in clause (i) who have identified needs 
        for such assistance; and
            ``(vi) provide an opportunity to participate in volunteer 
        activities related to the operation of the program, to not less 
        than 75 percent of the parents of children enrolled in the 
        program; and
            ``(C)(i) submit to the Secretary a written management plan 
        specifying, at a minimum, the administrative procedures, 
        classroom operations, job descriptions, salary schedules, 
        staffing plan, and records management, of the Head Start 
        agency;
            ``(ii) submit to the Secretary a written plan specifying 
        the goals and activities of the agency, and measurable outcomes 
        concerning, at a minimum--
                    ``(I) the staff to child ratios for classroom 
                teachers, supervisory staff, support staff, social 
                services staff, and other categories of center staff;
                    ``(II) the outreach activities;
                    ``(III) the facilities improvements;
                    ``(IV) the enrollment;
                    ``(V) the use of quality improvement funds;
                    ``(VI) the inservice and preservice training for 
                employees;
                    ``(VII) the home visiting services;
                    ``(VIII) the educational programming;
                    ``(IX) the parent participation in activities; and
                    ``(X) the program expansion,
        of the agency;
            ``(iii) implement a uniform recordkeeping system that meets 
        such requirements as the Secretary may require with respect to 
        information, including, at a minimum, education, developmental, 
        health, social service, assessment, and special needs 
        information, about the children, and the families of the 
        children, enrolled in the program;
            ``(iv) increase, by 25 percent each year, the percentage of 
        teachers providing services through the Head Start agency who 
        are certified according to such criteria as the Secretary may 
        determine to be appropriate, until all such teachers are so 
        certified;
            ``(v) develop--
                    ``(I) a variety of volunteer opportunities for the 
                parents of the children enrolled in the program, which 
                shall include opportunities to participate in 
                management of the Head Start agency, on advisory 
                boards, or in providing classroom assistance, outreach, 
                or support services; and
                    ``(II) other mechanisms to encourage the 
                participation of such parents;
            ``(vi) meet all applicable licensing standards for child 
        care facilities in the State and community in which the Head 
        Start agency is located; and
            ``(vii) transmit the exit assessments described in 
        subparagraph (A)(ii) for not less than 75 percent of the 
        children enrolled in the program--
                    ``(I) to the next elementary school in which such a 
                child is enrolled; or
                    ``(II) in the case of a child who is enrolled in a 
                program under the Head Start Transition Project Act, to 
                such program.''.
Head Start Quality Improvement Act - Amends the Head Start Act to increase the portions of specified funds which are to be set aside for:   (1) quality improvement activities of program grantees; (2) activities under the Head Start Transition Project Act; and (3) program improvement activities (adding monitoring and incentive grants to the current training and technical assistance). 
Authorizes the Secretary of Health and Human Services to make program grants to designated Head Start agencies on a seven-year funding cycle (thus requiring existing agency reapplication and recompetition for subsequent grants and designations).  Adds continuity of services to selection criteria. 
Requires an interim evaluation (including a site visit) of each designated agency at least once each year.  Authorizes the Secretary to require an agency to correct program deficits, and requires provision of technical assistance for such purpose.  Authorizes revocation of the agency's designation and grant if the problem is not corrected in that year, and provides for designation of and grants to another agency to serve the same community. 
Expands child eligibility criteria for program participation, allowing participation of families that would have been eligible within two years before. 
Revises notice, hearings, and appeals requirements and procedures. 
Adds requirements for program outcome measures.
Head Start Quality Improvement Act