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later than 90 days after the date of enactment of 
this paragraph. The panel should complete its rec-
ommendations within 18 months of its convening. 
‘‘(4) APPLICATION
OF PANEL REPORT.—The 
results of the panel study shall be used as guidelines 
by the Secretary to develop, inform and revise, 
where appropriate, the Head Start education per-
formance measures and standards and the assess-
ments utilized in the Head Start program.’’. 
SEC. 115. REPORTS. 
Section 650 of the Head Start Act (42 U.S.C. 9845) 
is amended as follows: 
(1) The first sentence of subsection (a) is 
amended to read as follows: ‘‘At least once during 
every 2-year period, the Secretary shall prepare and 
submit, to the Committee on Education and the 
Workforce of the House of Representatives and the 
Committee on Health, Education, Labor and Pen-
sions of the Senate, a report concerning the status 
of children (including disabled, homeless, and non-
English language background children) in Head 
Start programs, including the number of children 
and the services being provided to such children.’’. 
(2) Paragraph (8) of subsection (a) is amended 
by inserting ‘‘, homelessness’’ after ‘‘background’’.
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SEC. 116. HEAD START NONDISCRIMINATION PROVISIONS. 
Section 654 of the Head Start Act (42 U.S.C. 9849) 
is amended to read as follows: 
‘‘SEC. 654. NONDISCRIMINATION PROVISIONS. 
‘‘(a)(1) The Secretary shall not provide financial as-
sistance for any program, project, or activity under this 
subchapter unless the grant or contract with respect there-
to specifically provides that no person with responsibilities 
in the operation thereof will discriminate with respect to 
any such program, project, or activity because of race, 
creed, color, national origin, sex, political affiliation, or be-
liefs. 
‘‘(2) Paragraph (1) shall not apply to a recipient of 
financial assistance under this subchapter that is a reli-
gious corporation, association, educational institution, or 
society, with respect to the employment of individuals of 
a particular religion to perform work connected with the 
carrying on by such corporation, association, educational 
institution, or society of its activities. Such recipients shall 
comply with the other requirements contained in this sub-
section. 
‘‘(b) No person in the United States shall on the 
ground of sex be excluded from participation in, be denied 
the benefits of, be subjected to discrimination under, or 
be denied employment in connection with any program or 
activity receiving assistance under this subchapter. The
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Secretary shall enforce the provisions of the preceding sen-
tence in accordance with section 602 of the Civil Rights 
Act of 1964. Section 603 of such Act shall apply with re-
spect to any action taken by the Secretary to enforce such 
sentence. This section shall not be construed as affecting 
any other legal remedy that a person may have if such 
person is excluded from participation in, denied the benefit 
of, subjected to discrimination under, or denied employ-
ment (except as provided in subsection (a)(2)), in the ad-
ministration of any program, project, or activity receiving 
assistance under this subchapter. 
‘‘(c) The Secretary shall not provide financial assist-
ance for any program, project, or activity under this sub-
chapter unless the grant or contract relating to the finan-
cial assistance specifically provides that no person with re-
sponsibilities in the operation of the program, project, or 
activity will discriminate against any individual because of 
a handicapping condition in violation of section 504 of the 
Rehabilitation Act of 1973, except as provided in sub-
section (a)(2).’’. 
SEC. 117. EFFECTIVE DATE. 
The amendments made by this Act shall be effective 
with respect to fiscal years beginning on and after October 
1, 2003.
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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.—
‘‘(A) ELIGIBLE STATES.—In the case of 
each eligible State that submits to the Sec-
retary an application that fulfills the require-
ments 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 sec-
tion, except that the Secretary shall not make 
such grants to more than 8 eligible States. 
‘‘(B) 
DETERMINATION.—The 
Secretary 
shall make awards to those States that dem-
onstrate—
‘‘(i) that the State standards generally 
meet or exceed the standards that ensure 
the quality and effectiveness of programs 
operated by Head Start agencies;
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‘‘(ii) the capacity to deliver high qual-
ity early childhood education services to 
prepare children, including low-income chil-
dren, for school; and 
‘‘(iii) success in improving the school 
readiness of children. 
‘‘(2) STATE ELIGIBILITY.—A State shall be eli-
gible to participate in the program under this sec-
tion if it meets each of the following criteria: 
‘‘(A) The State has an existing State sup-
ported system providing public prekindergarten 
to children prior to entry into kindergarten. 
‘‘(B) The State has implemented standards 
as of fiscal year 2003 for school readiness that 
include standards for language, prereading and 
premathematics development for prekinder-
garten that are aligned with State kindergarten 
through twelfth grade academic content stand-
ards and which shall apply to all programs re-
ceiving funds under this part or provides an as-
surance that such standards will be aligned by 
the end of the second fiscal year of participa-
tion. 
‘‘(C) State and locally appropriated funds 
for prekindergarten services and Head Start
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services in the base year under this section shall 
not be less than 50 percent of the Federal 
funds that the grantees in the State received 
under this Act in the base year for services to 
Head Start eligible children, excluding amounts 
for services provided under section 645A. 
‘‘(D) The State has established a means 
for inter-agency coordination and collaboration 
in the development of the plan under subsection 
(h). 
‘‘(b) LEAD AGENCY.—A program under this section 
shall be administered by a State governmental entity des-
ignated 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.—For 60 months after the 
effective date of this section, the State shall continue 
to provide funds to each local grantee who—
‘‘(A) was receiving funds under this sub-
chapter, as in effect prior to the date of enact-
ment of this section, and
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‘‘(B) is serving the geographic area cov-
ered by the plan in section 643A(h). 
Such continuing grants shall be made in accordance 
with the terms of the grant made to the local grant-
ee immediately prior to such date of enactment. This 
paragraph shall not apply to a grant applicant who 
has experienced substantial uncorrected deficiencies 
on Department of Health and Human Services mon-
itoring reports during any year of the most recent 
5-year period, or to a grantee that, as determined by 
the State, does not comply with the State plan de-
scribed in subsection 643A(h) submitted to the Sec-
retary. 
‘‘(e) FEDERAL FINANCIAL ASSISTANCE.—
‘‘(1) ALLOCATION
OF
FEDERAL
ALLOTMENTS 
TO STATE PROGRAMS.—From each total amount de-
scribed in paragraph (2) allotted to a State for a fis-
cal 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—
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‘‘(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), excluding amounts for 
services provided under section 645A. 
‘‘(B) STATE ALLOTMENTS OF EXPANSION 
FUNDS.—Amounts allotted to States pursuant
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to section 640(a)(3)(D)(i)(I) for program ex-
pansion. 
‘‘(C) QUALITY
IMPROVEMENT
FUNDS.—
Quality improvement funds (if any) reserved 
pursuant to section 640(a)(3). 
‘‘(D) TRAINING AND TECHNICAL ASSIST-
ANCE FUNDS.—An amount bearing the same 
ratio to the amount set aside for training and 
technical assistance activities pursuant to sec-
tion 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 allot-
ted (and for purposes of subparagraph (A), 
such amount shall be considered an amount al-
lotted to the State for the fiscal year). 
‘‘(3) NON-FEDERAL
MATCH.—(A) In deter-
mining the amount of Federal and non-Federal con-
tributions for purposes of this section, the amounts 
required to be expended by the State under sub-
section (h)(14)(B) (relating to maintenance of ef-
fort) shall be excluded. 
‘‘(B) Financial assistance made available to a 
State under this subchapter shall be in an amount 
equal to 95 percent of the total amount expended for 
such programs. The Secretary shall require non-Fed-
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eral contributions in an amount equal to 5 percent 
of the total amount expended under this subchapter 
for such programs. 
‘‘(C) Non-Federal contributions may be made 
in cash or in kind, fairly evaluated, including plant, 
equipment, or services. 
‘‘(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 pro-
grams serving children in the same age group, as 
long as all applicable requirements of this sub-
chapter 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 sub-
chapter or non-Federal matching contributions 
under this subchapter. 
‘‘(5) USE OF FUNDS WITHOUT REGARD TO AL-
LOTMENT PURPOSES.—A State may use funds re-
ceived pursuant to this section for any program pur-
pose set forth in section 636, without regard to the 
purposes for such funds specified in section 640.
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‘‘(6) OTHER
FUNDS.—Funds received under 
this section shall not supplant any non-Federal, 
State or local funds that would otherwise be used for 
activities authorized under this section or similar ac-
tivities carried out in the State. 
‘‘(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 coordi-
nation 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.
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‘‘(iii) The Ready-to-Learn Television 
Program under subpart 3 of part D of title 
II of the Elementary and Secondary Edu-
cation Act. 
‘‘(B) OPTIONAL PROGRAMS.—Such coordi-
nation may occur regarding the implementation 
of the following: 
‘‘(i) Programs under the Child Care 
and Development Block Grant Act. 
‘‘(ii) Other publicly funded early child-
hood 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 sec-
tion 641A at least as extensive as were provided, and to 
at least as many low-income 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 geo-
graphic area included in the State program). A program 
under this section shall include the following comprehen-
sive activities designed to promote school readiness and 
success in school:
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‘‘(1) CHILD DEVELOPMENT AND EDUCATION.—
Activities with enrolled children that promote—
‘‘(A) cognitive development, language de-
velopment, prereading, and premathematics 
knowledge and skills; 
‘‘(B) physical development, health, and nu-
trition (including through coordination with, 
and referral of children and families to local 
health service entities; and 
‘‘(C) social development important for en-
vironments constructive for child development, 
early learning, and school success. 
‘‘(2) 
PARENT
EDUCATION
AND
INVOLVE-
MENT.—Activities with the parents of enrolled chil-
dren directed at enhancing and encouraging—
‘‘(A) involvement in, and ability to sup-
port, their children’s educational development; 
‘‘(B) parenting skills and understanding of 
child development; and 
‘‘(C) ability to participate effectively in de-
cisions relating to the education of their chil-
dren. 
‘‘(3) SOCIAL
AND
FAMILY
SUPPORT
SERV-
ICES.—Activities directed at securing appropriate so-
cial and family support services for enrolled children
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and their families, primarily through referral and co-
ordination with local, State, and Federal entities 
that provide such services. 
‘‘(4) HEAD START SERVICES.—For purposes of 
paragraph (1) Head Start services furnished in a 
State program under this section shall include all 
Head Start services, other than—
‘‘(A) Indian Head Start programs and mi-
grant and seasonal Head Start programs sup-
ported with funds reserved under section 
640(a)(2)(A); and 
‘‘(B) Early Head Start services provided 
under section 645A. 
‘‘(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 fol-
lowing: 
‘‘(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 speci-
fy 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,
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standard metropolitan statistical area, or such other 
geographic area in the State. 
‘‘(3) PROGRAM
PERIOD.—A State program 
under this section shall be in effect for 5 Federal fis-
cal years. 
‘‘(4) PROGRAM DESCRIPTION.—The plan shall 
describe the services under subsection (f) to be pro-
vided in the program and arrangements the State 
proposes to use to provide the services specified in 
subsection (g), including how the State will leverage 
existing delivery systems for such services. 
‘‘(5) NEEDS ASSESSMENT.—The plan shall de-
scribe the results of a State needs assessment and 
shall provide an assurance that the State will use 
the results to identify the needs for early childhood 
education services within a State or geographic area 
to be served and is targeting services to those areas 
of greatest need and to expand and improve services 
to disadvantaged children in the State. 
‘‘(6) ASSURANCE OF COMPLIANCE.—The plan 
shall provide an assurance that the State program 
will comply with the requirements of this section, in-
cluding each of the following: 
‘‘(A) PRIORITY
FOR
LOW-INCOME
CHIL-
DREN.—Requirements established pursuant to
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section 645(a) concerning the eligibility and pri-
ority of individuals for participation in Head 
Start programs. 
‘‘(B) CONTINUATION FOR EXISTING PRO-
VIDERS.—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 eligi-
ble to receive any grants, contract, or coopera-
tive agreements under this section. 
‘‘(C) PARTICIPATION OF CHILDREN WITH 
DISABILITIES.—Requirements pursuant to sec-
tion 640(d) concerning Head Start enrollment 
opportunities and services for children with dis-
abilities. 
‘‘(D) PROVISIONS CONCERNING FEES AND 
COPAYMENTS.—The 
provisions 
of 
section 
645(b) concerning the charging of fees and the 
circumstances under which copayments are per-
missible. 
‘‘(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.
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‘‘(F) ADMINISTRATIVE COSTS.—The provi-
sions 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 regard-
ing the Federal Government interest in prop-
erty (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 ap-
plication is submitted. 
‘‘(8) STATE GUIDELINES FOR SCHOOL READI-
NESS.—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;
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‘‘(ii) align early childhood and kinder-
garten curricula to ensure program con-
tinuity; and 
‘‘(iii) ensure that children successfully 
transition to kindergarten. 
‘‘(9) TEACHER
QUALIFICATIONS.—The plan 
shall assure that the qualifications and credentials 
for early childhood teachers meet or exceed the 
standards in section 648A(a)(2)(A), (B), and (C). 
‘‘(10) 
PROFESSIONAL
DEVELOPMENT.—The 
plan shall provide a description of the State plan for 
assuring the ongoing professional development of 
early childhood educators and administrators includ-
ing how the State intends to—
‘‘(A) improve the competencies of early 
childhood educators in meeting the cognitive 
and other developmental needs of young chil-
dren through effective instructional strategies, 
methods, and skills; 
‘‘(B) develop and implement initiatives to 
effectively recruit and promote the retention of 
well-qualified early childhood educators; 
‘‘(C) encourage institutions of higher edu-
cation, providers of community-based training, 
and other qualified providers to develop high-
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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. 
‘‘(11) QUALITY STANDARDS.—The State shall 
describe the State’s standards, applicable to all 
agencies, programs, and projects that receive funds 
under this subchapter, including a description of—
‘‘(A) standards with respect to services re-
quired to be provided, including health, parental 
involvement, nutritional, social, transition ac-
tivities described in section 642(d) of this sub-
chapter, and other services; 
‘‘(B)(i) education standards to promote the 
school readiness of children participating in a 
State program under title II of this subchapter; 
and 
‘‘(ii) additional education standards to en-
sure that the children participating in the pro-
gram, at a minimum develop and dem-
onstrate—
‘‘(I) language skills; 
‘‘(II) prereading knowledge and skills, 
including interest in and appreciation of
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books, reading and writing either alone or 
with others; 
‘‘(III) premathematics knowledge and 
skills, including aspects of classification, 
seriation, number, spatial relations, and 
time; 
‘‘(IV) cognitive abilities related to aca-
demic achievement; 
‘‘(V) social development important for 
environments constructive for child devel-
opment, early learning, and school success; 
and 
‘‘(VI) in the case of limited-English 
proficient children, progress toward acqui-
sition of the English language; 
‘‘(C) the State’s minimum standards for 
early childhood teacher credentials and quali-
fications; 
‘‘(D) the student-teacher ratio for each 
age-group served; 
‘‘(E) administrative and financial manage-
ment standards; 
‘‘(F) standards relating to the condition 
and location of facilities for such agencies, pro-
grams, and projects; and
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‘‘(G) such other standards as the State 
finds to be appropriate. 
‘‘(12) 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 kindergarten 
success; 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 pro-
gram. 
‘‘(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
SAFE-
GUARDS.—The system shall have in effect 
privacy safeguards ensuring that informa-
tion on children included in data and re-
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sults made public in accordance with 
clause (i) shall be in aggregated form, and 
shall not include information allowing iden-
tification of individual children. 
‘‘(13) TRANSITION
PLAN.—The initial State 
plan shall make provision for transition from the di-
rect Federal program under section 640 to the dem-
onstration program. 
‘‘(14) COOPERATION
WITH
RESEARCH
STUD-
IES.—The plan shall provide assurances that the 
State will cooperate with research activities de-
scribed in section 649. 
‘‘(15) 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 ex-
penditures and numbers of children and fami-
lies served in preschool and Head Start pro-
grams during the base year and each fiscal year 
covered under the State plan, sufficient to sat-
isfy the Secretary that the State program will 
meet its obligation with respect to the mainte-
nance of effort requirement under subpara-
graph (B); and
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‘‘(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, includ-
ing Head Start, in the State (or, if applicable, 
in the geographic area included in the State 
program) for each fiscal year in which the pro-
gram 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 geo-
graphic area) for the base year. 
‘‘(16) TRAINING
AND
TECHNICAL
ASSIST-
ANCE.—The State plan shall describe the training 
and technical assistance activities that shall provide 
high quality, sustained, intensive, and classroom-fo-
cused training and technical assistance in order to 
have a positive and lasting impact on classroom in-
struction. 
‘‘(i) RECORDS, REPORTS AND AUDITS.—The State 
agency administering the State program, and each entity 
participating as a Head Start service provider, shall main-
tain such records, make such reports, and cooperate with 
such audits as the Secretary may require for oversight of 
program activities and expenditures.
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‘‘(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 admin-
ister a program under this section shall submit, with the 
plan under this section, assurances that the plan was de-
veloped 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
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‘‘(8) continue funding, for a period of 60 
months, all current Head Start grantees as de-
scribed in section 643A(d); 
‘‘(9) provide services described in section 641A 
that are at least as extensive as were provided, and 
to at least as many low-income children and families 
in the State, in each fiscal year as were provided 
such services in the base year; 
‘‘(10) establish a comprehensive collaboration 
effort to integrate Head Start, state-funded pre-kin-
dergarten programs, Even Start, Title I preschool, 
and Early Reading First; 
‘‘(11) participate in independent evaluations of 
the demonstration program authorized under this 
subchapter; and 
‘‘(12) submit to Federal oversight by the Sec-
retary. 
‘‘(q) DEFINITION.—For purposes of this section, the 
term ‘base year’ means the fiscal year 2003.’’.
Passed the House of Representatives July 25 (legis-
lative day, July 24), 2003. 
Attest: 
JEFF TRANDAHL, 
Clerk.