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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2210 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 2210

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2003

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

_______________________________________________________________________

                                 A BILL

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

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

SECTION 1. SHORT TITLE.

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

      TITLE I--HEAD START REAUTHORIZATION AND PROGRAM IMPROVEMENTS

SEC. 101. PURPOSE.

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

``SEC. 636. STATEMENT OF PURPOSE.

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

SEC. 102. DEFINITIONS.

    Section 637 of the Head Start Act (42 U.S.C. 9832) is amended as 
follows:
            (1) In paragraph (17) by striking ``, but for fiscal year'' 
        and all that follows down to the period.
            (2) By adding the following at the end thereof:
            ``(18) The term `eligible entities' means an institution of 
        higher education or other agency with expertise in delivering 
        training in early childhood development, family support, and 
        other assistance designed to improve the delivery of Head Start 
        services.''.

SEC. 103. AUTHORIZATION.

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

``SEC. 639. AUTHORIZATION OF APPROPRIATIONS.

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

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

    Section 640 of the Head Start Act (42 U.S.C. 9835) is amended as 
follows:
            (1) By striking clauses (ii) and (iii) of subsection 
        (a)(2)(B).
            (2) By striking the last sentence of paragraph (2).
            (3) By amending subsection (a)(2)(C) to read as follows:
                    ``(C) training and technical assistance activities 
                that are sufficient to meet the needs associated with 
                program expansion and to foster program and management 
                improvement activities as described in section 648 of 
                this title, in an amount for each fiscal year which is 
                not less than one percent, and shall not exceed 2 
                percent, of the amount appropriated for such fiscal 
                year, of which--
                            ``(i) not less than 50 percent shall be 
                        made available to local Head Start agencies to 
                        comply with the performance standards described 
                        in section 641A(a)(1), of which not less than 
                        50 percent shall be used to comply with the 
                        performance standards described in section 
                        641A(a)(1)(B) and for the uses described in 
                        subparagraph (a)(3)(B)(iii), (a)(3)(B)(iv), and 
                        (a)(3)(B)(vii);
                            ``(ii) not less than 30 percent shall be 
                        made available to support a State system of 
                        early childhood education training and 
                        technical assistance;
                            ``(iii) not less than 20 percent shall be 
                        made available to the Secretary to assist local 
                        programs to meet the performance standards 
                        described in 641A(a)(1); and
                            ``(iv) not less than $3,000,000 of the 
                        amount in clause (iii) appropriated for such 
                        fiscal year shall be made available to carry 
                        out activities described in section 
                        648(d)(4);''.
            (4) In subsection (a)(3)(A)(i)(I) by striking ``1999'' and 
        all that follows down to the semicolon and inserting ``2004 
        through 2008''.
            (5) In subsection (a)(3)(B)(i) by striking ``(a)(1)(A)'' 
        and inserting ``(a)(1)''.
            (6) In subsection (a)(3)(B)(ii) by striking ``staff are'' 
        and inserting ``staff is''.
            (7) In subsection (a)(3)(C) by redesignating clause (vi) as 
        clause (vii) and inserting the following new clause after 
        clause (v):
            ``(vi) To conduct outreach to homeless families in an 
        effort to increase the program participation of eligible 
        homeless children.''.
            (8) In subsection (a)(5)(B)--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by inserting ``early childhood education'' 
                after ``regarding''.
            (9) In subsection (a)(5)(C)--
                    (A) by striking ``A State'' and inserting ``In 
                order to improve results for children, a State'';
                    (B) by striking clauses (i), (ii), and (iii) and 
                inserting:
                            ``(i) appoint an individual to serve as the 
                        State collaborator between--
                                    ``(I) the appropriate regional 
                                office of the Administration for 
                                Children and Families;
                                    ``(II) the State educational 
                                agency;
                                    ``(III) the State Department of 
                                Health and Human Services;
                                    ``(IV) the State agency that 
                                oversees child care;
                                    ``(V) the State agency that 
                                oversees children with developmental 
                                disabilities;
                                    ``(VI) the State Head Start 
                                Association;
                                    ``(VII) the State network of child 
                                care resource and referral agencies;
                                    ``(VIII) local educational 
                                agencies;
                                    ``(IX) community-based and faith-
                                based organizations;
                                    ``(X) State migrant and seasonal 
                                Head Start associations;
                                    ``(XI) State Indian Head Start 
                                associations;
                                    ``(XII) State and local providers 
                                of early childhood education and child 
                                care; and
                                    ``(XIII) other entities carrying 
                                out programs serving low-income 
                                children and families in the State.''.
                            ``(ii) ensure that the State collaborator 
                        holds a position with sufficient authority and 
                        access to ensure that the collaboration 
                        described in subparagraph (B) is effective and 
                        involves a range of State agencies;
                            ``(iii) involve the entities described in 
                        section 640(a)(5)(C)(i) to develop a strategic 
                        plan for the coordinated outreach to identify 
                        eligible children and implementation strategies 
                        based on a needs assessment conducted by the 
                        Office of the State Collaborator;'';
                    (C) by amending clause (v) to read as follows:
                            ``(v) consult with the chief State school 
                        officer, local educational agencies, and 
                        representatives of local Head Start agencies in 
                        unified planning regarding early care and 
                        education services at both the State and local 
                        levels, including collaborative efforts to 
                        develop school readiness standards;''; and
                    (D) by inserting the following new clause after 
                clause (v) and redesignating clause (vi) as (vii):
                            ``(vi) consult with the chief State school 
                        officer, local educational agencies, State 
                        child care administrators, State human services 
                        administrators, representatives of local 
                        resource and referral agencies, local early 
                        childhood councils, and other relevant state 
                        and local agencies, and representatives of the 
                        State Head Start Associations to plan for the 
                        provision of full-working-day, full calendar 
                        year early care and education services for 
                        children; and''.
            (10) By amending clause (i) of subsection (a)(5)(D) by 
        inserting ``and providers of services supporting early 
        childhood education and child care'' after ``Associations''.
            (11) By striking subsection (a)(6)(B).
            (12) By inserting the following before the period at the 
        end of section 640(f): ``including models that leverage the 
        existing capacity and capabilities of the delivery system of 
        early childhood education and child care''.
            (13) By inserting the following after ``manner that will'' 
        in section 640(g)(2)(G): ``leverage the existing delivery 
        systems of such services and''.

SEC. 105. DESIGNATION OF AGENCIES.

    Section 641 of the Head Start Act (42 U.S.C. 9836) is amended as 
follows:
            (1) In subsection (a) by inserting after ``community'' in 
        the first place it appears ``any community-based or faith-based 
        organization'' and by inserting ``(1)'' after ``(a)'' and by 
        adding the following at the end thereof:
    ``(2) In order to be designated as a Head Start agency and to 
receive a grant under this subchapter, a grantee shall establish 
grantee-determined goals for improving the school readiness of children 
participating in a program under this subchapter, which shall include 
goals for--
                    ``(A) educational instruction in prereading, 
                premathematical, and language skills; and
                    ``(B) the provision of health, educational, 
                nutritional, social, and other services.
    ``(3) In order to receive a grant subsequent to the initial grant 
provided following the date of enactment of this subchapter, the 
grantee shall demonstrate that it has met the goals described in (2).''
            (2) In subsection (c)(1) by striking ``unless'' through 
        ``fails to meet'' and inserting ``that fulfills the''.
            (3) By striking paragraph (2) of subsection (c).
            (4) In subsection (d):
                    (A) By inserting the following new paragraphs after 
                paragraph (1):
            ``(2) the capacity of such applicant to serve eligible 
        children with scientifically-based programs that promote school 
        readiness of children participating in the program;
            ``(3) the plan of such applicant to meet standards set 
        forth in section 641A(a)(1), with particular attention to the 
        standards set forth in section 641A(a)(1)(B)(ii);''.
                    (B) By striking paragraph (3) and redesignating 
                paragraph (2) as paragraph (4) and in such paragraph 
                (4), by striking ``to aid participating children in 
                attaining their full potential'' and inserting 
                ``prepare children to succeed in school''.
                    (C) By inserting the following after paragraph (4) 
                and redesignating existing paragraphs (4) through (10) 
                as paragraphs (7) through (13):
            ``(5) the plan of such applicant to coordinate the Head 
        Start program it proposes to carry out with other preschool 
        programs, including Early Reading First and Even Start programs 
        under title I, part B, subparts 1 and 2 of the Elementary and 
        Secondary Education Act of 1965; other preschool programs 
        carried out under title I of the Act; programs under part C and 
        section 619 of the Individuals with Disabilities Education Act; 
        State prekindergarten programs; and with the educational 
        programs such children will enter at the age of compulsory 
        school attendance;
            ``(6) the plan of such applicant to coordinate the Head 
        Start program it proposes to carry out with private entities 
        with resources available to assist the Head Start Program meet 
        its program needs;''.

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

    Section 641A of the Head Start Act (42 U.S.C. 9836a)) is amended as 
follows:
            (1) In subsection (a)(1)(B) by amending clause (ii) to read 
        as follows:
                            ``(ii) additional education standards to 
                        ensure that the children participating in the 
                        program, at a minimum develop and demonstrate--
                                    ``(I) language skills;
                                    ``(II) prereading knowledge and 
                                skills, including interest in and 
                                appreciation of books, reading and 
                                writing either alone or with others;
                                    ``(III) premathematics knowledge 
                                and skills;
                                    ``(IV) cognitive abilities related 
                                to academic achievement;
                                    ``(V) social development important 
                                for environments constructive for child 
                                development, early learning, and school 
                                success; and
                                    ``(VI) in the case of limited-
                                English proficient children, progress 
                                toward acquisition of the English 
                                language.''.
            (2) In subsection (a)(2)(A) by amending the parenthetical 
        language to read as follows ``(including appropriate services 
        to limited-English proficient children and their families)''.
            (3) In subsection (a)(2)(B)--
                    (A) in clause (i) by striking ``on the date of 
                enactment of this section'' and inserting ``on October 
                27, 1998'';
                    (B) in clause (ii) by striking ``since the date of 
                enactment of this section'' and inserting ``since 
                October 27, 1998,''; and
                    (C) by striking ``and'' at the end of clause (vi) 
                and adding the following at the end thereof:
                            ``(viii) the unique challenges faced by 
                        individual programs, including those that are 
                        seasonal or short term, and those that serve 
                        rural populations; and''.
            (4) In subsection (a)(2)(C)(ii) by striking all that 
        follows ``in effect on'' down to the period and inserting 
        ``October 27, 1998''.
            (5) In subsection (b)(2):
                    (A) In subparagraph (B) by striking ``not later 
                than July 1, 1999; and'' and inserting a semicolon.
                    (B) By striking the period at the end of 
                subparagraph (C) and inserting ``; and''.
                    (C) By adding the following new subparagraph at the 
                end thereof:
                    ``(D) be appropriate for the population served; and
                    ``(E) be reviewed no less than every 5 years, based 
                on advances in the science of early childhood 
                development.''.
                    (D) In the language following new subparagraph (E) 
                by striking ``subsection (a)(1)(ii)'' and inserting 
                ``subsection (a)(1)(A) and (B)''.
            (6) In subsection (b) by amending paragraph (4) to read as 
        follows:
            ``(4) Educational measures.--Results based measures shall 
        be designed for the purpose of promoting the competencies of 
        children participating in Head Start programs specified in 
        subsection (a)(1)(B)(ii), with an emphasis on measuring those 
        competencies that have a strong scientifically-based 
        predictability of a child's school readiness and later 
        performance in school.''.
            (7) In subsection (c)(2):
                    (A) By striking subparagraphs (A) and (B).
                    (B) In subparagraph (C) by striking ``(including 
                linguistic and cultural)'' and inserting ``and limited-
English proficient children'' after ``disabilities''.
                    (C) At the end of subparagraph (D) by striking 
                ``and''.
                    (D) At the end of subparagraph (E) by striking the 
                period and inserting a semicolon and the following new 
                subparagraphs:
                    ``(F) include as part of the reviews of the 
                programs, a review and assessment of whether a program 
                is in conformity with the income eligibility 
                requirements, as defined in section 645 and regulations 
                promulgated thereunder; and
                    ``(G) seek information from the communities where 
                Head Start programs exist about innovative or effective 
                collaborative efforts, barriers to collaboration, and 
                the efforts of the Head Start agencies and programs to 
                collaborate with the entities carrying out early 
                childhood education and child care programs in the 
                community.''.

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

    Section 642 of the Head Start Act (42 U.S.C. 9837(b) is amended as 
follows:
            (1) By redesignating paragraphs (1) through (4) of 
        subsection (b) as (3) through (6) and by inserting the 
        following new paragraphs after ``shall also--'':
            ``(1) establish a program with standards set forth in 
        section 641A(a)(1), with particular attention to the standards 
        set forth in section 641A(a)(1)(B);
            ``(2) demonstrate capacity to serve eligible children with 
        scientifically-based curricula and other interventions that 
        help ensure the school readiness of children participating in 
        the program;''.
            (2) By inserting the following new paragraph after 
        redesignated paragraph (6) of subsection (b) and by 
        redesignating existing paragraphs (5) through (11) of 
        subsection (b) as (8) through (14):
            ``(7) conduct outreach to schools in which Head Start 
        children enroll, local educational agencies, the local business 
        community, community-based organizations, faith-based 
        organizations, museums, and libraries to generate support and 
        leverage the resources of the entire local community in order 
        to improve school readiness;''.
            (3) In subsection (d) by inserting the following new 
        paragraph after paragraph (1) and redesignating paragraphs (2) 
        through (5) as (3) through (6):
    ``(2) In communities where both public prekindergarten programs and 
Head Start programs operate, a Head Start agency shall coordinate with 
the local educational agency or other public agency responsible for the 
operation of the prekindergarten program, including for outreach to 
identify eligible children.''.

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

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

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

SEC. 109. ELIGIBILITY.

    Section 645(a) of the Head Start Act (42 U.S.C. 9843) is amended by 
adding the following new paragraph at the end thereof:
    ``(3) The amount of a basic allowance provided under section 403 of 
title 37, United States Code, on behalf of an individual who is a 
member of the uniformed services for housing that is acquired or 
constructed under the authority of subchapter IV of chapter 169 of 
title 10, United States Code, or any other related provision of law, 
shall not be considered to be income for purposes of determining the 
eligibility of a child of the individual for programs assisted under 
this subchapter.''.

SEC. 110. INFANTS AND TODDLERS.

    Section 645A of the Head Start Act (42 U.S.C. 9643) is amended in 
subsection (b)(1) by striking ``physical, emotional, and intellectual 
development'' and inserting ``learning, health, and development''.

SEC. 111. TECHNICAL ASSISTANCE AND TRAINING.

    Section 648 of the Head Start Act (42 U.S.C. 9843) is amended as 
follows:
            (1) By inserting the following new subsection after 
        subsection (a) and redesignating subsections (b) through (e) as 
        (c) through (f):
    ``(b) The Secretary shall make available the money reserved in 
section 640(a)(2)(C)(ii) to support a State-based system delivering 
training and technical assistance that improves the capacity of Head 
Start programs within a State to deliver services in accordance with 
the Head Start performance standards in section 641A(a)(1), with 
particular attention to the education standards in section 
641A(a)(1)(B). The Secretary shall--
            ``(1) ensure eligible entities within a State are chosen by 
        the Secretary through a competitive bid process;
            ``(2) ensure that existing agencies with demonstrated 
        expertise in providing high quality training and technical 
        assistance to improve the delivery of Head Start services, 
        including the State Head Start Association, State agencies, and 
        other entities currently providing training and technical 
        assistance in early education, be included in the planning and 
        coordination of the State system of training and technical 
        assistance; and
            ``(3) encourage States to supplement the funds authorized 
        in section 640(a)(2)(C)(ii) with State, Federal, or local funds 
        other than Head Start funds, to expand activities beyond Head 
        Start agencies to include other providers of other early 
        childhood services within a State.''.
            (2) By inserting the following at the end thereof:
    ``(g) For purposes of this section, the term `eligible entities' 
means an institution of higher education or other entity with expertise 
in delivering training in early childhood development, family support, 
and other assistance designed to improve the delivery of Head Start 
services.''.

SEC. 112. STAFF QUALIFICATIONS AND DEVELOPMENT.

    Section 648A of the Head Start Act (42 U.S.C. 9843a) is amended as 
follows:
            (1) In subparagraph (C) of subsection (a)(1) by striking 
        ``and emotional'' and inserting ``to ensure school readiness'' 
        after ``children''.
            (2) In subparagraph (A) of subsection (a)(2) by striking 
        ``2003'' and inserting ``2008'' and by striking ``an 
        associate,'' and inserting ``a'' in clauses (i) and (ii).
            (3) By adding the following at the end of subsection 
        (a)(2):
                    ``(C) Requirement for new head start teachers.--
                Within 3 years after the date of enactment of this 
                clause, the Secretary shall require that all Head Start 
                teachers nationwide in center-based programs hired 
                following the date of enactment of this subparagraph--
                            ``(i) have an associate, baccalaureate, or 
                        advanced degree in early childhood education;
                            ``(ii) have an associate, baccalaureate, or 
                        advanced degree in a field related to early 
                        childhood education, with experience in 
                        teaching preschool children; or
                            ``(iii) be currently enrolled in a program 
                        of study leading to an associate degree in 
                        early childhood education and agree to complete 
                        degree requirements within 3 years from the 
                        date of hire.
                    ``(D) Service requirements.--The Secretary shall 
                establish requirements to ensure that individuals who 
                receive financial assistance under this Act in order to 
                comply with the requirements under section 648A(a)(2) 
                shall subsequently teach in a Head Start center for a 
                period of time equivalent to the period for which they 
                received assistance or repay the amount of the 
                funds.''.
            (4) By adding the following at the end thereof:
    ``(f) Professional Development Plans.--Every Head Start agency and 
program shall create, in consultation with an employee, a professional 
development plan for all full-time employees who provide direct 
services to children.''.

SEC. 113. RESEARCH, DEMONSTRATIONS, AND EVALUATION.

    Section 649 of the Head Start Act (42 U.S.C. 9844) is amended as 
follows:
            (1) By striking subsection (b).
            (2) In subsection (c)(1)(C) by striking ``multicultural 
        nature'' and inserting ``range''.
            (3) By striking paragraph (9) of subsection (d).
            (4) In subsection (d)(10)(B) by striking ``socio-
        emotional''.
            (5) By striking clause (i) of subsection (g)(1)(A) and 
        redesignating clauses (ii) and (iii) as clauses (i) and (ii).
            (6) In subsection (g)(5)(A)(i) by striking ``the social 
        competence of children, by increasing''.
            (7) By amending subsection (g)(5)(A)(ii)(I) to read as 
        follows:
                            ``(I) enhance the learning, health, and 
                        development of children;''.
            (8) In subsection (g)(7)(C)(i) by striking ``1999'' and 
        inserting ``2003'', striking ``2001'' and inserting ``2005'', 
        and striking ``2003'' and inserting ``2006''.

SEC. 114. CONFORMING AMENDMENTS.

    Sections 640(a)(6)(B)(iii)(I), 648A(g)(7)(C)(ii), and 650(a) of the 
Head Start Act are each amended by striking ``Labor and Human 
Resources'' and inserting ``Health, Education, Labor, and Pensions''.

SEC. 115. EFFECTIVE DATE.

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

                 TITLE II--STATE DEMONSTRATION PROGRAM

SEC. 201. STATE DEMONSTRATION PROGRAM.

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

``SEC. 643A. STATE DEMONSTRATION PROGRAM.

    ``(a) Grants.--
            ``(1) In general.--In the case of each eligible State that 
        submits to the Secretary an application that fulfills the 
        requirements of this section, the Secretary, from amounts 
        appropriated under section 639(a), shall make a grant to the 
        State to carry out a State demonstration program under this 
        section.
            ``(2) State eligibility.--A State shall be eligible to 
        participate in the program under this section if it meets each 
        of the following criteria:
                    ``(A) The State has an existing State supported 
                system providing early childhood education services to 
                children prior to entry into kindergarten.
                    ``(B) The State has existing standards for school 
                readiness that are aligned with State kindergarten 
                through twelfth grade academic content standards or 
                provides an assurance that such standards will be 
                aligned by the end of the second fiscal year of 
                participation.
                    ``(C) The State has established qualifications for 
                early childhood educators.
                    ``(D) The State has established a means for inter-
                agency coordination and collaboration in the 
                development of the plan under (h).
    ``(b) Lead Agency.--A program under this section shall be 
administered by a State governmental entity designated by the Chief 
Executive Officer of the State as the lead State agency.
    ``(c) State Operation of Program.--The State may conduct all or any 
part of the program under this section (including the activities 
specified in subsection (g)) directly or by grant, contract, or 
cooperative agreement.
    ``(d) Transition.--
            ``(1) In general.--A local grantee that was receiving funds 
        under the Head Start Act of 1965, as that Act was in effect 
        prior to the date of enactment of this section, and is serving 
        the geographic area covered by the plan in section 643A(h) 
        shall continue to receive funds from the State, in accordance 
        with the terms of that award for at least 12 months after a 
        State receives approval to participate in a program under this 
        section, provided that the applicant has not experienced 
substantial uncorrected deficiencies on Department of Health and Human 
Services monitoring reports during any year of the most recent 5-year 
period.
            ``(2) After transition.--Following the end of the 
        transition, States are strongly encouraged to continue 
        utilizing current service providers that have demonstrated the 
        ability to provide high quality Head Start services consistent 
        with State guidelines for school preparedness for children 
        entering kindergarten.
    ``(e) Federal Financial Assistance.--
            ``(1) Allocation of federal allotments to state programs.--
        From each total amount described in paragraph (2) allotted to a 
        State for a fiscal year, the Secretary shall pay to a State 
        with a program approved under this section for such fiscal year 
        an amount equal to--
                    ``(A) if the State program is statewide, 100 
                percent of such total amount; and
                    ``(B) if the State program is limited to a 
                geographic area or areas, the sum of--
                            ``(i) an amount equal to the amount 
                        received by grantees in such geographic area or 
                        areas for the Federal fiscal year preceding the 
                        first fiscal year of the State program under 
                        this section; plus
                            ``(ii) an amount bearing the same ratio to 
                        the excess (if any) above the total amount for 
                        such preceding fiscal year as the number of 
                        children less than 5 years of age from families 
                        whose income is below the poverty line in the 
                        geographic area or areas included in the 
                        program bears to the total number of such 
                        children in the State (as determined using the 
                        same data used pursuant to section 
                        640(a)(4)(B)).
            ``(2) Funds allocated.--For purposes of paragraph (1), 
        amounts described in this paragraph are:
                    ``(A) Basic state allotments.--Amounts allotted to 
                States pursuant to section 640(a)(4), including amounts 
                reserved pursuant to section 640(a)(5).
                    ``(B) State allotments of expansion funds.--Amounts 
                allotted to States pursuant to section 
                640(a)(3)(D)(i)(I) for program expansion.
                    ``(C) Quality improvement funds.--Quality 
                improvement funds (if any) reserved pursuant to section 
                640(a)(3).
                    ``(D) Training and technical assistance funds.--An 
                amount bearing the same ratio to the amount set aside 
                for training and technical assistance activities 
                pursuant to section 640(a)(2)(C)(i) and (ii) as the 
                State's share of amounts allotted under section 
                640(a)(4)(B) bears to the total amount so allotted (and 
                for purposes of subparagraph (A), such amount shall be 
                considered an amount allotted to the State for the 
                fiscal year).
            ``(3) Non-federal match.--Financial assistance made 
        available to a State for programs carried out under this 
        section shall not exceed 95 percent of the total amount 
        expended for such programs. Non-Federal contributions may be 
        made in cash or in kind, fairly evaluated, including plant, 
        equipment, or services. The Secretary may not require non-
        Federal contributions in excess of 5 percent of the total 
        amount expended for such programs. In determining the amount of 
        Federal and non-Federal contributions for purposes of this 
        section, the amounts required to be expended by the State under 
        subsection (g)(1)(M)(iii)(relating to maintenance of effort) 
        shall be excluded.
            ``(4) Combined operations with other early childhood 
        education programs.--A State may combine funds for a program 
        under this section with funds for other early childhood 
        programs serving children in the same age group, as long as all 
        applicable requirements of this subchapter are met with respect 
        to either--
                    ``(A) the entire combined program; or
                    ``(B) each child served in such combined program 
                for whom the services provided are funded from 
                appropriations under this subchapter or non-Federal 
                matching contributions under this subchapter.
            ``(5) Use of funds without regard to allotment purposes.--A 
        State may use funds received pursuant to this section for any 
        program purpose set forth in section 636, without regard to the 
        purposes for such funds specified in section 640.
            ``(6) Other funds.--Funds received under this section shall 
        not supplant non-Federal funds that would otherwise be used for 
        activities authorized under this section.
    ``(f) Coordination and Choice.--
            ``(1) In general.--A State demonstration Program shall be 
        coordinated with the education programs of local educational 
        agencies in the State to ensure that the program is effectively 
        designed to develop in children in the program the knowledge 
        and behaviors necessary to transition successfully to 
        kindergarten and to succeed in school.
            ``(2) Programs concerned.--
                    ``(A) Required programs.--Such coordination shall 
                occur regarding the implementation of the following:
                            ``(i) The Early Reading First and Even 
                        Start programs under title I, part B, subparts 
                        2 and 3 of the Elementary and Secondary 
                        Education Act of 1965, and other preschool 
                        programs carried out under title I of that Act.
                            ``(ii) State prekindergarten programs.
                            ``(iii) The Ready-to-Learn Television 
                        Program under subpart 3 of Part D of title II 
                        of the Elementary and Secondary Education Act.
                    ``(B) Optional programs.--Such coordination may 
                occur regarding the implementation of the following:
                            ``(i) Programs under the Child Care and 
                        Development Block Grant Act.
                            ``(ii) Other publicly funded early 
                        childhood education programs.
            ``(3) Parental choice.--The program shall allow parents to 
        choose the preschool program for their child.
    ``(g) Required Services.--With funds under this section, the State 
shall provide services described in section 641A (and, if applicable, 
services described in section 645A) at least as extensive as were 
provided, and to at least as many children and families in each fiscal 
year as were provided such services, with such funds in the base year 
in the State (or, if applicable, in the geographic area included in the 
State program). A program under this section shall include the 
following comprehensive activities designed to promote school readiness 
and success in school:
            ``(1) Child development and education.--Activities with 
        enrolled children that promote--
                    ``(A) cognitive development, language development, 
                prereading, and premathematics knowledge and skills;
                    ``(B) physical development, health, and nutrition 
                (including through coordination with), and referral of 
                children and families to local health service entities; 
                and
                    ``(C) social development important for environments 
                constructive for child development, early learning, and 
                school success.
            ``(2) Parent education and involvement.--Activities with 
        the parents of enrolled children directed at enhancing and 
        encouraging--
                    ``(A) involvement in, and ability to support, their 
                children's educational development,
                    ``(B) parenting skills and understanding of child 
                development, and
                    ``(C) ability to participate effectively in 
                decisions relating to the education of their children.
            ``(3) Social and family support services.--Activities 
        directed at securing appropriate social and family support 
        services for enrolled children and their families, primarily 
        through referral and coordination with local, State, and 
        Federal entities that provide such services.
            ``(4) Head start services.--For purposes of paragraph (1):
                    ``(A) Head Start services furnished in a State 
                program under this section shall include all Head Start 
                services, other than--
                            ``(i) Indian Head Start programs and 
                        migrant and seasonal Head Start programs 
                        supported with funds reserved under section 
                        640(a)(2)(A); and
                            ``(ii) Early Head Start services, except as 
                        provided in subparagraph (B); and
                    ``(B) Services furnished may, at State option, 
                include Early Head Start services, either Statewide or 
                in selected geographic areas of the State. In the case 
                of a State that elects to administer an Early Head 
                Start program under this section, the State shall 
                provide a program of family-centered services for low-
                income infants, toddlers and pregnant women, meeting 
                the requirements of section 645A, designed to promote 
                the development of the children, and to enable their 
                parents to fulfill their roles as parents and to move 
                toward self-sufficiency.
    ``(h) State Plan.--A State proposing to administer a program under 
this section shall submit a State plan to the Secretary. The State plan 
shall include the following:
            ``(1) Lead state agency.--The plan shall identify the 
        entity designated by the Chief Executive Officer of the State 
        as the lead State agency.
            ``(2) Geographic area.--The plan shall specify whether the 
        program is statewide, and, if it is not, identify the 
        geographic area or areas covered by the plan. A geographic area 
        may be a city, county, standard metropolitan statistical area, 
        or such other geographic area in the State.
            ``(3) Program period.--The plan shall specify the period 
        during which the program will be in effect.
                    ``(A) In general.--A State program under this 
                section shall be in effect for a period of at least 
                three and not more than 5 Federal fiscal years.
                    ``(B) Extension.--A State that has administered a 
                program in accordance with the requirements of this 
                section--
                            ``(i) shall be allowed to extend such 
                        program through fiscal year 2008, upon 
                        submission to the Secretary, of a proposed plan 
                        meeting the requirements for approval; and
                            ``(ii) shall notify the Secretary, at least 
                        one year before the end of the current plan 
                        period, whether the State intends to extend the 
                        program.
            ``(4) Program description.--The plan shall describe the 
        services under subsection (f) to be provided in the program and 
        arrangements the State proposes to use to provide the services 
        specified in subsection (f).
            ``(5) Needs assessment.--The plan shall provide an 
        assurance that the State has identified the needs for services 
        within a State or geographic area to be served and is targeting 
        services to those areas of greatest need.
            ``(6) Assurance of compliance.--The plan shall provide an 
        assurance that the State program will comply with the 
        requirements of this section, including each of the following:
                    ``(A) Priority for low-income children.--
                Requirements established pursuant to section 645(a) 
                concerning the eligibility and priority of individuals 
                for participation in Head Start programs.
                    ``(B) Continuation for existing providers.--An 
                applicant who received funds under this subchapter in 
prior fiscal years and has not corrected any substantial deficiencies 
identified in the past 5 years shall not be eligible to receive any 
grants, contract, or cooperative agreements under this section.
                    ``(C) Participation of children with 
                disabilities.--Requirements pursuant to section 640(d) 
                concerning Head Start enrollment opportunities and 
                services for children with disabilities.
                    ``(D) Provisions concerning fees and copayments.--
                The provisions of section 645(b) concerning the 
                charging of fees and the circumstances under which 
                copayments are permissible.
                    ``(E) Federal share; state and local matching.--The 
                provisions of section 640(b) limiting Federal financial 
                assistance for Head Start programs, and providing for 
                non-Federal contributions.
                    ``(F) Administrative costs.--The provisions of 
                section 644(b) limiting the share of program funds that 
                may be used for developing and administering a program.
                    ``(G) Federal property interest.--Applicable 
                provisions of this subchapter regarding the Federal 
                Government interest in property (including real 
                property) purchased, leased, or renovated with Federal 
                funds.
            ``(7) Identification of barriers.--The plan shall identify 
        barriers in the State to the effective use of Federal, State, 
        and local public funds, and private funds, for early education 
        and care that are available to the State on the date on which 
        the application is submitted.
            ``(8) State guidelines for school readiness.--The plan 
        shall include--
                    ``(A) a State definition of school readiness;
                    ``(B) a description of the State's general goals 
                for school readiness, including how the State intends 
                to--
                            ``(i) promote and maintain ongoing 
                        communication and collaboration between 
                        providers of early care and education and local 
                        educational agencies in the State;
                            ``(ii) align early childhood and 
                        kindergarten curricula to ensure program 
                        continuity; and
                            ``(iii) ensure that children successfully 
                        transition to kindergarten.
            ``(9) Professional development.--The plan shall provide a 
        description of the State plan for assuring the ongoing 
        professional development of early childhood educators and 
        administrators including how the State intends to--
                    ``(A) improve the competencies of early childhood 
                educators in meeting the cognitive and other 
                developmental needs of young children through effective 
                instructional strategies, methods, and skills;
                    ``(B) develop and implement initiatives to 
                effectively recruit and promote the retention of early 
                childhood educators;
                    ``(C) encourage institutions of higher education, 
                providers of community-based training, and other 
                qualified providers to develop high-quality programs to 
                prepare students to be early childhood education 
                professionals; and
                    ``(D) improve the quality of professional 
                development available to meet the needs of teachers 
                that serve preschool children.
            ``(10) Quality assurance.--
                    ``(A) To assure the quality of early childhood 
                services provided to preschool age children the plan 
                shall--
                            ``(i) describe State early childhood 
                        teacher credentials and qualifications;
                            ``(ii) assure that the program has in place 
                        scientifically-based curricula;
                            ``(iii) describe student-teacher ratio for 
                        each age group served;
                            ``(iv) assure the program has in place 
                        services to promote congitive development, 
                        language, prereading, and premathematical 
                        knowledge and skills; and
                            ``(v) assure that the program has in place 
                        services to promote the health, safety, 
                        nutrition, and other developmental needs of 
                        preschool age children.
                    ``(B) The State plan shall provide an explanation 
                for any of the above that do not conform to 
                requirements under this subchapter.
            ``(11) State accountability system.--
                    ``(A) In general.--The State plan shall--
                            ``(i) ensure that individual providers are 
                        achieving results in advancing the knowledge 
                        and behaviors identified by the State as 
                        prerequisites for effective kindergarten 
                        performance; and
                            ``(ii) specify the measures the State will 
                        use to evaluate the progress toward achieving 
                        such results and the effectiveness of the State 
                        program under this section, and of individual 
                        providers in such program.
                    ``(B) Publication of results.--
                            ``(i) In general.--Subject to clause (ii), 
                        the results shall be made publicly available in 
                        the communities served by the program.
                            ``(ii) Confidentiality safeguards.--The 
                        system shall have in effect privacy safeguards 
                        ensuring that information on children included 
                        in data and results made public in accordance 
                        with clause (i) shall be in aggregated form, 
                        and shall not include information allowing 
                        identification of individual children.
            ``(12) Transition plan.--The initial State plan shall make 
        provision for transition from the direct Federal program under 
        section 640 to the demonstration program.
            ``(13) Cooperation with research studies.--The plan shall 
        provide assurances that the State will cooperate with research 
        activities described in section 649.
            ``(14) Maintenance of effort.--The State plan shall--
                    ``(A) contain a commitment to provide data, at such 
                times and in such format as the Secretary requires, 
                concerning non-Federal expenditures and numbers of 
                children and families served in preschool and Head 
                Start programs during the base year and each fiscal 
                year covered under the State plan, sufficient to 
                satisfy the Secretary that the State program will meet 
                its obligation with respect to the maintenance of 
                effort requirement under subparagraph (B); and
                    ``(B) assure that the resources (which may be cash 
                or in-kind) contributed by the State government to 
                child care for preschool-aged children and other 
                preschool programs, including Head Start, in the State 
                (or, if applicable, in the geographic area included in 
                the State program) for each fiscal year in which the 
program under this section is in effect shall be in an amount at least 
equal to the total amount of such State governmental resources 
contributed to support such programs in the State (or geographic area) 
for the base year.
    ``(i) Records, Reports and Audits.--The State agency administering 
the State program, and each entity participating as a Head Start 
service provider, shall maintain such records, make such reports, and 
cooperate with such audits as the Secretary may require for oversight 
of program activities and expenditures.
    ``(j) Inapplicability of Provisions Concerning Priority in Agency 
Designation.--The provisions of subsections (c) and (d) of section 641 
(concerning priority in designation of Head Start agencies, successor 
agencies, and delegate agencies) shall not apply to a State program 
under this section.
    ``(k) Consultation.--A State proposing to administer a program 
under this section shall submit, with the plan under this section, 
assurances that the plan was developed through timely and meaningful 
consultation with appropriate public and private sector entities, 
including--
            ``(1) representatives of agencies responsible for 
        administering early education and care programs in the State, 
        including Head Start providers;
            ``(2) parents;
            ``(3) the State educational agency and local educational 
        agencies;
            ``(4) early childhood education professionals;
            ``(5) kindergarten teachers and teachers in grades 1 
        through 4;
            ``(6) child welfare agencies;
            ``(7) child care resource and referral agencies;
            ``(8) child care providers; and
            ``(9) a wide array of persons interested in and involved 
        with early care and early education issues in the State, such 
        as representatives of--
                    ``(A) health care professionals;
                    ``(B) the State agency with responsibility for the 
                special supplemental nutrition program for women, 
                infants, and children established by section 17 of the 
                Child Nutrition Act of 1966;
                    ``(C) institutions of higher education;
                    ``(D) community-based and faith-based 
                organizations;
                    ``(E) the business community;
                    ``(F) State legislators and local officials;
                    ``(G) museums and libraries;
                    ``(H) other relevant entities in the State; and
                    ``(I) other agencies that provide resources for 
                young children.
    ``(l) State Plan Submission.--An application shall be submitted by 
a State pursuant to this section to the Secretary, in consultation with 
the Secretary of Education, and shall be deemed to be approved by the 
Secretary unless the Secretary makes a written determination, prior to 
the expiration of a reasonable time beginning on the date on which the 
Secretary received the application, that the application is not in 
compliance with this section.
    ``(m) Federal Oversight Authority; Corrective Action; Withdrawal of 
Approval.--
            ``(1) Federal oversight.--The Secretary shall retain the 
        authority to oversee the operation of the State program under 
        this section, including through review of records and reports, 
        audits, and onsite inspection of records and facilities and 
        monitoring of program activities and operations.
            ``(2) Correction of deficiencies.--If the Secretary 
        determines that a State program under this section 
        substantially fails to meet the requirements of this section, 
        the Secretary shall notify the State of the deficiencies 
        identified and require corrective action as follows:
                    ``(A) Deficiencies causing immediate jeopardy.--The 
                Secretary shall require immediate corrective action to 
                eliminate a deficiency that the Secretary finds 
                threatens the health or safety of staff or program 
                participants or poses a threat to the integrity of 
                Federal funds.
                    ``(B) Other deficiencies.--The Secretary, taking 
                into consideration the nature and magnitude of a 
                deficiency not described in subparagraph (A), and the 
                time reasonably required for correction, may--
                            ``(i) require the State to correct the 
                        deficiency within 90 days after notification 
                        under this paragraph; or
                            ``(ii) require the State to implement a 
                        quality improvement plan designed to correct 
                        the deficiency within one year from 
                        identification of the deficiency.
            ``(3) Withdrawal of approval.--If the deficiencies 
        identified under paragraph (2) are not corrected by the 
        deadlines established by the Secretary, the Secretary shall 
        initiate proceedings to withdraw approval of the State program 
        under this section.
            ``(4) Procedural rights.--A State subject to adverse action 
        under this subsection shall have the same procedural rights as 
        a Head Start agency subject to adverse action under section 
        641A.
    ``(n) Evaluation.--(1) The Secretary shall appoint an independent 
advisory committee to design, oversee, and compile findings from an 
evaluation of the state demonstration program--
    ``(2) The evaluation shall include--
            ``(A) data on the characteristics of preschool age children 
        served;
            ``(B) an assessment of the quality and characteristics of 
        the services provided;
            ``(C) the rate of progress of the State in improving the 
        school readiness of disadvantaged children in the key domains 
        of development; and
            ``(D) an assessment of the impact of the programs supported 
        under this section on the access and quality of early childhood 
        education systems.
    ``(o) Definition.--For purposes of this section, the term `base 
year' means the most recent Federal fiscal year preceding the first 
fiscal year of the State program under this section for which adequate 
and reliable data are available, as determined by the Secretary.''.
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