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‘‘(I) Not less than 1 member of the
governing body shall have a back-
ground in fiscal management.
‘‘(II) Not less than 1 member of
the governing body shall have a back-
ground in early childhood education
and care.
‘‘(III) Not less than 1 member of
the governing body shall be a licensed
attorney familiar with issues that come
before the governing body.
‘‘(IV) Additional members shall
reflect the community to be served, and
include parents of children who are
currently, or were formerly, enrolled in
Head Start programs.
‘‘(V) In the case in which the gov-
erning body is a part of a Head Start
agency that is a public agency, mem-
bers of the governing body shall include
elected or appointed public officials.
‘‘(ii) CONSULTANTS.—In the case that
persons described in clause (i) are not
available to serve as members of the gov-
erning body, the governing body shall make
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use of consultants in the areas described in
clause (i) to work directly with the gov-
erning body.
‘‘(iii) CONFLICT OF INTEREST.—Mem-
bers of the governing body shall—
‘‘(I) not have a conflict of interest
with the Head Start agency (including
any delegate agency); and
‘‘(II) not receive compensation for
the purposes of serving on the gov-
erning body or for providing services to
the Head Start agency.
‘‘(C) RESPONSIBILITIES
OF
GOVERNING
BODY.—
‘‘(i) IN GENERAL.—The governing body
shall be responsible for—
‘‘(I) the selection of delegate agen-
cies and such agencies’ service areas;
‘‘(II) establishing procedures and
criteria for recruitment, selection, and
enrollment;
‘‘(III) all funding applications
and amendments to funding applica-
tions for programs under this sub-
chapter;
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‘‘(IV) establishing procedures and
guidelines to access and collect the in-
formation described in paragraph (6);
‘‘(V) review and approval of—
‘‘(aa) the annual self-assess-
ment, financial audit, and find-
ings from the Federal monitoring
review, of the Head Start agency
(including any delegate agency);
and
‘‘(bb) such agency’s progress
in carrying out the programmatic
and fiscal intent of such agency’s
grant application;
‘‘(VI) developing procedures for
how members of the policy council of
the Head Start agency are selected,
consistent with subparagraph (E)(ii);
‘‘(VII) financial audits, account-
ing, and reporting;
‘‘(VIII) personnel policies and
procedures regarding hiring, termi-
nation, salary scales (and changes
made to the scale), and salaries of the
Executive Director, Head Start Direc-
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tor, the Director of Human Resources,
the Chief Fiscal Officer, and any
equivalent position; and
‘‘(IX) review and approval of the
community assessment, including any
updates to such assessment.
‘‘(ii) 
CONDUCT
OF
RESPONSIBIL-
ITIES.—The governing body shall ensure the
development and approval of an internal
control structure to facilitate those respon-
sibilities in order to—
‘‘(I) safeguard Federal funds;
‘‘(II) comply with laws and regu-
lations that have an impact on finan-
cial statements;
‘‘(III) detect or prevent non-
compliance with this subchapter; and
‘‘(IV) receive financial audit re-
ports and direct and monitor staff im-
plementation of corrective actions.
‘‘(iii) COMMITTEES.—The governing
body shall, to the extent practicable and ap-
propriate, establish—
‘‘(I) advisory committees to over-
see responsibilities related to financial
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auditing and finances of the Head
Start agency, as well as compliance
with Federal, State, and local laws
and regulations; and
‘‘(II) at the discretion of the gov-
erning body, additional advisory com-
mittees to study and make rec-
ommendations on areas related to the
improvement of the Head Start pro-
gram.
‘‘(D) ESTABLISHMENT
OF
POLICY
COUN-
CIL.—Each Head Start agency shall establish a
policy council in accordance with paragraph (3).
‘‘(E) COMPOSITION OF POLICY COUNCIL.—
‘‘(i) IN GENERAL.—The policy council
shall consist of—
‘‘(I) parents of children currently
enrolled in the programs of the Head
Start agency (including any delegate
agency), which shall constitute a ma-
jority of the membership of the policy
council; and
‘‘(II) members at large of the com-
munity served by the Head Start agen-
cy, which may include parents of chil-
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dren previously enrolled in the pro-
grams of the Head Start agency (in-
cluding any delegate agency).
‘‘(ii) SELECTION.—Parents serving on
the policy council shall be elected by parents
of children currently enrolled in the pro-
grams of the Head Start agency (including
any delegate agency) and shall represent,
proportionately, all program options and
settings operated by the Head Start agency
(including any delegate agency).
‘‘(iii) CONFLICT OF INTEREST.—Mem-
bers of the policy council shall—
‘‘(I) not have a conflict of interest
with the Head Start agency (including
any delegate agency); and
‘‘(II) not receive compensation for
serving on the policy council or for
providing services to the Head Start
agency.
‘‘(F) RESPONSIBILITIES OF POLICY COUN-
CIL.—The policy council shall be responsible
for—
‘‘(i) program planning, including—
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‘‘(I) program design, including
long and short term program goals, all
funding applications and amendments
to funding applications, and objectives
based on the annual communitywide
assessment and self-assessment;
‘‘(II) program recruitment, selec-
tion, and enrollment priorities; and
‘‘(III) budget planning for pro-
gram expenditures consistent with sub-
paragraph (C)(i)(VII), including po-
lices for reimbursement and participa-
tion in policy council activities;
‘‘(ii) program operation consistent
with subparagraph (C)(i)(VIII), including
implementation of standards of conduct for
program staff, contractors, and volunteers
and criteria for the employment and dis-
missal of program staff; and
‘‘(iii) activities to support the active
involvement of parents in supporting pro-
gram operations, including policies to en-
sure that the Head Start program is re-
sponsive to community and parent needs.
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‘‘(6) INFORMATION
SHARING.—The governing
body and the policy council shall share with each
other regular and accurate information for use by
both entities about program planning, policies, and
Head Start agency operations, including—
‘‘(A) monthly financial statements (includ-
ing detailed credit card account expenditures for
any employee with a Head Start agency credit
card or who seeks reimbursement for charged ex-
penses);
‘‘(B) monthly program information sum-
maries;
‘‘(C) program enrollment reports, including
attendance reports for children whose care is
partially subsidized by another public agency;
‘‘(D) monthly reports of meals and snacks
provided through programs of the Department of
Agriculture;
‘‘(E) the financial audit;
‘‘(F) the annual self-assessment, including
any findings related to the annual self-assess-
ment;
‘‘(G) the community assessment of the Head
Start agency’s service area and any applicable
updates;
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‘‘(H) communication and guidance from the
Secretary; and
‘‘(I) the program information reports.
‘‘(7) TRAINING AND TECHNICAL ASSISTANCE.—
Appropriate training and technical assistance shall
be provided to the members of the governing body and
the policy council to ensure that the members under-
stand the information the members receive and can ef-
fectively 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 multi-
county unit within a State, an Indian reservation (includ-
ing Indians in any off-reservation area designated by an
appropriate tribal government in consultation with the Sec-
retary), or a neighborhood or other area (irrespective of
boundaries or political subdivisions) that provides a suit-
able organizational base and possesses the commonality of
interest needed to operate a Head Start program.
‘‘(c) REDESIGNATION.—
‘‘(1) IN GENERAL.—In administering the provi-
sions of this section, the Secretary shall, in consulta-
tion with the Governor of the State involved, redesig-
nate as a Head Start agency any Head Start agency
(including any delegate agency) that is high per-
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forming, as determined by meeting each of the fol-
lowing criteria:
‘‘(A) Is receiving assistance under this sub-
chapter.
‘‘(B) Meets or exceeds standards described
in section 641A(a)(1) (including program and
financial management requirements).
‘‘(C) Has no unresolved deficiencies, includ-
ing having resolved any deficiencies found dur-
ing the last triennial review under section
641A(c).
‘‘(D) Can demonstrate, through agreements
such as memoranda of understanding, active col-
laboration 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).
‘‘(E) Completes and submits the appro-
priate reapplication forms as required by the
Secretary.
‘‘(2) LIMITATION.—A Head Start agency with a
triennial review under section 641A(c) scheduled not
later than 18 months after the date of enactment of
the Head Start for School Readiness Act shall not be
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subject to the criteria described in paragraph (1) for
that review in order to be redesignated. The Head
Start agency shall be subject to the criteria for any
subsequent triennial review.
‘‘(d) DESIGNATION WHEN NO ENTITY IS REDESIG-
NATED.—If no entity in a community is redesignated ac-
cording to subsection (c), the Secretary shall, after con-
ducting an open competition, designate a Head Start agen-
cy from among qualified applicants in such community.
‘‘(e) EFFECTIVENESS.—In selecting from among quali-
fied applicants for designation as a Head Start agency, the
Secretary shall consider the effectiveness of each such appli-
cant 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 com-
prehensive health, educational, nutritional, social,
and other services needed to aid participating chil-
dren in attaining their full potential, and to prepare
children to succeed in school;
‘‘(3) the capacity of such applicant to serve eligi-
ble children with programs that use scientifically
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based research that promote school readiness of chil-
dren participating in the program;
‘‘(4) the plan of such applicant to meet stand-
ards 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) other preschool program under title I
of that Act (20 U.S.C. 6301 et seq.);
‘‘(C) programs under section 619 and part
C of the Individuals with Disabilities Education
Act (20 U.S.C. 1419, 1431 et seq.);
‘‘(D) State prekindergarten programs;
‘‘(E) child care programs;
‘‘(F) the educational programs that the chil-
dren in the Head Start program involved will
enter at the age of compulsory school attendance;
and
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‘‘(G) 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 inter-
ested in that collaboration, to—
‘‘(A) develop innovative programs to excite
children about the world of books, such as pro-
grams 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;
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‘‘(8) the plan of such applicant—
‘‘(A) to facilitate the involvement of parents
of participating children in activities (at home
and in the center involved where practicable) de-
signed 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, includ-
ing 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 Edu-
cation Act of 1965 (20 U.S.C. 6381 et seq.), pub-
lic 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 di-
rectly or through referral to local entities), if
needed, including information on the effect of
drug exposure on infants and fetal alcohol syn-
drome;
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‘‘(E) at the option of such applicant, to
offer (directly or through referral to local enti-
ties) to such parents—
‘‘(i) training in basic child develop-
ment (including cognitive development);
‘‘(ii) assistance in developing literacy
and communication skills;
‘‘(iii) opportunities to share experi-
ences 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 par-
ticipating family, a family needs assessment that
includes consultation with such parents (includ-
ing foster parents and grandparents, where ap-
plicable) about the benefits of parent involvement
and about the activities described in subpara-
graphs (C), (D), and (E) in which such parents
may choose to become involved (taking into con-
sideration their specific family needs, work
schedules, and other responsibilities); and
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‘‘(G) to extend outreach to fathers, in ap-
propriate 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 fig-
ures through activities such as—
‘‘(i) in appropriate cases, including fa-
thers in home visits and providing opportu-
nities for direct father-child interactions;
and
‘‘(ii) targeting increased male partici-
pation 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 chil-
dren, plans to provide trained personnel, and plans
to provide services to assist the children in making
progress toward the acquisition of the English lan-
guage;
‘‘(12) the plan of such applicant to meet the
needs of children with disabilities, including proce-
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dures to identify such children, procedures for referral
of such children for evaluation to State and local
agencies providing services under section 619 or part
C of the Individuals with Disabilities Education Act
(20 U.S.C. 1419, 1431 et seq), and plans for collabo-
ration with those State and local agencies;
‘‘(13) the plan of such applicant who chooses to
assist younger siblings of children who will partici-
pate in the Head Start program, to obtain health
services from other sources;
‘‘(14) the plan of such applicant to collaborate
with other entities providing early childhood edu-
cation and care 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.
‘‘(f) INVOLVEMENT
OF PARENTS
AND AREA RESI-
DENTS.—The Secretary shall continue the practice of in-
volving parents and area residents who are affected by pro-
grams under this subchapter in the selection of qualified
applicants for designation as Head Start agencies.
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‘‘(g) PRIORITY.—In selecting from among qualified
applicants for designation as a Head Start agency, the Sec-
retary shall give priority to applicants that have dem-
onstrated capacity in providing effective, comprehensive,
and well-coordinated early childhood education and care to
children and their families.
‘‘(h) INTERIM BASIS.—If there is not a qualified ap-
plicant 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 com-
munity is so designated.
‘‘(i) PROHIBITION AGAINST NON-INDIAN HEAD START
AGENCY RECEIVING A GRANT FOR AN INDIAN HEAD START
PROGRAM.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law except as provided in paragraph (2),
under no condition may a non-Indian Head Start
agency receive a grant to carry out an Indian Head
Start program.
‘‘(2) EXCEPTION.—In a community in which
there is no Indian Head Start agency available for
designation to carry out an Indian Head Start pro-
gram, a non-Indian Head Start agency may receive
a grant to carry out an Indian Head Start program