COMMUNITY OPPORTUNITIES, ACCOUNTABILITY,

AND TRAINING AND EDUCATIONAL SERVICES ACT OF 1998

Public Law 105-285

105th Congress

An Act

To amend the Head Start Act, the Low-Income Home Energy Assistance Act

of 1981, and the Community Services Block Grant Act to reauthorize and

make improvements to those Acts, to establish demonstration projects

that provide an opportunity for persons with limited means to accumulate

assets, and for other purposes. <<NOTE: Oct. 27, 1998 - [S. 2206]>>

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, <<NOTE: Community

Opportunities, Accountability, and Training and Educational Services

Act of 1998. Children, youth, and

families. Education. Grants. Housing. Inter- governmental relations. 42

USC 9801 note.>>

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Community Opportunities,

Accountability, and Training and Educational Services Act of 1998'' or

the ``Coats Human Services Reauthorization Act of 1998''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I--HEAD START PROGRAMS

Sec. 101. Short title.

Sec. 102. Statement of purpose.

Sec. 103. Definitions.

Sec. 104. Financial assistance for Head Start programs.

Sec. 105. Authorization of appropriations.

Sec. 106. Allotment of funds.

Sec. 107. Designation of Head Start agencies.

Sec. 108. Quality standards.

Sec. 109. Powers and functions of Head Start agencies.

Sec. 110. Head Start transition.

Sec. 111. Submission of plans to Governors.

Sec. 112. Participation in Head Start programs.

Sec. 113. Early Head Start programs for families with infants and

toddlers.

Sec. 114. Technical assistance and training.

Sec. 115. Professional requirements.

Sec. 116. Research and evaluation.

Sec. 117. Reports.

Sec. 118. Repeal of consultation requirement.

Sec. 119. Repeal of Head Start Transition Project Act.

TITLE II--COMMUNITY SERVICES BLOCK GRANT PROGRAM

Sec. 201. Reauthorization.

Sec. 202. Conforming amendments.

TITLE III--LOW-INCOME HOME ENERGY ASSISTANCE

Sec. 301. Short title.

Sec. 302. Authorization.

Sec. 303. Definitions.

Sec. 304. Natural disasters and other emergencies.

Sec. 305. State allotments.

Sec. 306. Administration.

Sec. 307. Payments to States.

Sec. 308. Residential Energy Assistance Challenge option.

Sec. 309. Technical assistance, training, and compliance reviews.

TITLE IV--ASSETS FOR INDEPENDENCE

Sec. 401. Short title.

Sec. 402. Findings.

Sec. 403. Purposes.

Sec. 404. Definitions.

Sec. 405. Applications.

Sec. 406. Demonstration authority; annual grants.

Sec. 407. Reserve Fund.

Sec. 408. Eligibility for participation.

Sec. 409. Selection of individuals to participate.

Sec. 410. Deposits by qualified entities.

Sec. 411. Local control over demonstration projects.

Sec. 412. Annual progress reports.

Sec. 413. Sanctions.

Sec. 414. Evaluations.

Sec. 415. Treatment of funds.

Sec. 416. Authorization of appropriations.

TITLE I-- <<NOTE: Head Start Amendments of 1998.>> HEAD START PROGRAMS

SEC. 101. SHORT TITLE. <<NOTE: 42 USC 9801 note.>>

This title may be cited as the ``Head Start Amendments of 1998''.

SEC. 102. STATEMENT OF 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 social and cognitive development of low-income children

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. 103. DEFINITIONS.

Section 637 of the Head Start Act (42 U.S.C. 9832) is amended--

(1) by redesignating paragraphs (1) and (2) as paragraphs

(16) and (17) and inserting the paragraphs at the end of the

section;

(2) by inserting before paragraph (3) the following:

``(1) The term `child with a disability' means--

``(A) a child with a disability, as defined in

section 602(3) of the Individuals with Disabilities

Education Act; and

``(B) an infant or toddler with a disability, as

defined in section 632(5) of such Act.

``(2) The term `delegate agency' means a public, private

nonprofit, or for-profit organization or agency to which a

grantee has delegated all or part of the responsibility of the

grantee for operating a Head Start program.'';

(3) by striking paragraph (4);

(4) by redesignating paragraph (3) as paragraph (4);

(5) by inserting after paragraph (2) the following:

``(3) The term `family literacy services' means services

that are of sufficient intensity in terms of hours, and of

sufficient duration, to make sustainable changes in a family,

and that integrate all of the following activities:

``(A) Interactive literacy activities between

parents and their children.

``(B) Training for parents regarding how to be the

primary teacher for their children and full partners in

the education of their children.

``(C) Parent literacy training that leads to

economic self-sufficiency.

``(D) An age-appropriate education to prepare

children for success in school and life experiences.'';

(6) in paragraph (6), by adding at the end the following:

``Nothing in this paragraph shall be construed to require an

agency to provide services to a child who has not reached the

age of compulsory school attendance for more than the number of

hours per day permitted by State law (including regulation) for

the provision of services to such a child.'';

(7) by striking paragraph (12) and inserting the following:

``(12) The term `migrant and seasonal Head Start program'

means--

``(A) with respect to services for migrant

farmworkers, a Head Start program that serves families

who are engaged in agricultural labor and who have

changed their residence from one geographic location to

another in the preceding 2-year period; and

``(B) with respect to services for seasonal

farmworkers, a Head Start program that serves families

who are engaged primarily in seasonal agricultural labor

and who have not changed their residence to another

geographic location in the preceding 2-year period.'';

(8) by inserting after paragraph (14) the following:

``(15) The term `scientifically based reading research'--

``(A) means the application of rigorous, systematic,

and objective procedures to obtain valid knowledge

relevant to reading development, reading instruction,

and reading difficulties; and

``(B) shall include research that--

``(i) employs systematic, empirical methods

that draw on observation or experiment;

``(ii) involves rigorous data analyses that

are adequate to test the stated hypotheses and

justify the general conclusions drawn;

``(iii) relies on measurements or

observational methods that provide valid data

across evaluators and observers and across

multiple measurements and observations; and

``(iv) has been accepted by a peer-reviewed

journal or approved by a panel of independent

experts through a comparably rigorous, objective,

and scientific review.''; and

(9) in paragraph (17) (as redesignated in paragraph (1))--

(A) by striking ``Term'' and inserting ``term'';

(B) by striking ``Virgin Islands,'' and inserting

``Virgin Islands of the United States, and the

Commonwealth of the Northern Mariana Islands, but for

fiscal years ending before October 1, 2001 (and fiscal

year 2002, if the legislation described in section

640(a)(2)(B)(iii) has not been enacted before September

30, 2001), also means''; and

(C) by striking ``Palau, and the Commonwealth of the

Northern Mariana Islands.'' and inserting ``and the

Republic of Palau.''.

SEC. 104. FINANCIAL ASSISTANCE FOR HEAD START PROGRAMS.

Section 638(1) of the Head Start Act (42 U.S.C. 9833(1)) is

amended--

(1) by striking ``aid the'' and inserting ``enable the'';

and

(2) by striking the semicolon and inserting ``and attain

school readiness;''.

SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

Section 639 of the Head Start Act (42 U.S.C. 9834) is amended--

(1) in subsection (a), by striking ``1995 through 1998'' and

inserting ``1999 through 2003''; and

(2) in subsection (b), by striking paragraphs (1) and (2)

and inserting the following:

``(1) for each of fiscal years 1999 through 2003 to carry

out activities authorized under section 642A, not more than

$35,000,000 but not less than the amount that was made available

for such activities for fiscal year 1998;

``(2) not more than $5,000,000 for each of fiscal years 1999

through 2003 to carry out impact studies under section 649(g);

and

``(3) not more than $12,000,000 for fiscal year 1999, and

such sums as may be necessary for each of fiscal years 2000

through 2003, to carry out other research, demonstration, and

evaluation activities, including longitudinal studies, under

section 649.''.

SEC. 106. ALLOTMENT OF FUNDS.

(a) Allotments.--Section 640(a) of the Head Start Act (42 U.S.C.

9835(a)) is amended--

(1) in paragraph (2)--

(A) in subparagraph (A)--

(i) by striking ``and migrant'' the first

place it appears and all that follows through

``handicapped children'', and inserting ``Head

Start programs, services for children with

disabilities, and migrant and seasonal Head Start

programs'';

(ii) by striking ``and migrant'' each other

place it appears and inserting ``Head Start

programs and by migrant and seasonal''; and

(iii) by striking ``1994'' and inserting

``1998'';

(B) in subparagraph (B), by striking ``(B)

payments'' and all that follows through ``Virgin Islands

according'' and inserting the following:

``(B) payments, subject to paragraph (7)--

``(i) to Guam, American Samoa, the Commonwealth of

the Northern Mariana Islands, and the Virgin Islands of

the United States;

``(ii) for fiscal years ending before October 1,

2001, to the Federated States of Micronesia, the

Republic of the Marshall Islands, and the Republic of

Palau; and

``(iii) if legislation approving renegotiated

Compacts of Free Association for the jurisdictions

described in clause (ii) has not been enacted before

September 30, 2001, for fiscal year 2002 to those

jurisdictions;

according'';

(C) in subparagraph (C), by striking ``; and'' and

inserting ``, of which not less than $3,000,000 of the

amount appropriated for such fiscal year shall be made

available to carry out activities described in section

648(c)(4);'';

(D) in subparagraph (D), by striking ``related to

the development and implementation of quality

improvement plans under section 641A(d)(2).'' and

inserting ``carried out under paragraph (1), (2), or (3)

of section 641A(d) related to correcting deficiencies

and conducting proceedings to terminate the designation

of Head Start agencies; and'';

(E) by inserting after subparagraph (D) the

following:

``(E) payments for research, demonstration, and evaluation

activities under section 649.''; and

(F) by adding at the end the following: ``No Freely

Associated State may receive financial assistance under

this subchapter after fiscal year 2002.'';

(2) in paragraph (3)--

(A) in subparagraph (A)(i), by striking ``equal''

and all that follows through ``amount;'' and inserting

``equal to the sum of--

``(I) 60 percent of such excess amount for fiscal year 1999,

50 percent of such excess amount for fiscal year 2000, 47.5

percent of such excess amount for fiscal year 2001, 35 percent

of such excess amount for fiscal year 2002, and 25 percent of

such excess amount for fiscal year 2003;'';

(B) in subparagraph (B)--

(i) in clause (ii)--

(I) by striking ``adequate qualified

staff'' and inserting ``adequate numbers

of qualified staff''; and

(II) by inserting ``and children

with disabilities'' before ``, when'';

(ii) in clause (iv), by inserting before the

period the following: ``, and to encourage the

staff to continually improve their skills and

expertise by informing the staff of the

availability of Federal and State incentive and

loan forgiveness programs for professional

development'';

(iii) in clause (v), by inserting ``and

collaboration efforts for such programs'' before

the period;

(iv) in clause (vi), by striking the period

and inserting ``, and are accessible to children

with disabilities and their parents.'';

(v) by redesignating clause (vii) as clause

(viii); and

(vi) by inserting after clause (vi) the

following:

``(vii) Ensuring that such programs have qualified staff

that can promote language skills and literacy growth of children

and that can provide children with a variety of skills that have

been identified, through scientifically based reading research,

as predictive of later reading achievement.'';

(C) in subparagraph (C)--

(i) in clause (i)--

(I) in subclause (I)--

(aa) by striking ``this

subparagraph'' and inserting

``this paragraph'';

(bb) by striking ``of

staff'' and inserting ``of

classroom teachers and other

staff'';

(cc) by striking ``such

staff'' and inserting

``qualified staff, including

recruitment and retention

pursuant to achieving the

requirements set forth in

section 648A(a)''; and

(dd) by adding at the end

the following: ``Preferences in

awarding salary increases, in

excess of cost-of-living

allowances, with such funds

shall be granted to classroom

teachers and staff who obtain

additional training or education

related to their

responsibilities as employees of

a Head Start program.'';

(II) in subclause (II), by striking

``the subparagraph'' and inserting

``this subparagraph''; and

(III) by adding at the end the

following:

``(III) From the remainder of the amount reserved under this

paragraph (after the Secretary carries out subclause (I)), the

Secretary shall carry out any or all of the activities described

in clauses (ii) through (vii), placing the highest priority on

the activities described in clause (ii).'';

(ii) by amending clause (ii) to read as

follows:

``(ii) To train classroom teachers and other staff to meet

the education performance standards described in section

641A(a)(1)(B), through activities--

``(I) to promote children's language and literacy

growth, through techniques identified through

scientifically based reading research;

``(II) to promote the acquisition of the English

language for non-English background children and

families;

``(III) to foster children's school readiness skills

through activities described in section 648A(a)(1); and

``(IV) to provide training necessary to improve the

qualifications of the staff of the Head Start agencies

and to support staff training, child counseling, and

other services necessary to address the problems of

children participating in Head Start programs, including

children from dysfunctional families, children who

experience chronic violence in their communities, and

children who experience substance abuse in their

families.'';

(iii) by striking clause (v); and

(iv) by redesignating clauses (vi) and (vii)

as clauses (v) and (vi), respectively; and

(D) in subparagraph (D)(i)(II), by striking ``and

migrant'' and inserting ``Head Start programs and

migrant and seasonal'';

(3) in paragraph (4)--

(A) in subparagraph (A), by striking ``1981'' and

inserting ``1998'';

(B) by amending subparagraph (B) to read as follows:

``(B) any amount available after all allotments are made

under subparagraph (A) for such fiscal year shall be distributed

proportionately on the basis of the number of children less than

5 years of age from families whose income is below the poverty

line.''; and

(C) by adding at the end the following:

``For purposes of this paragraph, for each fiscal year the Secretary

shall use the most recent data available on the number of children less

than 5 years of age from families whose income is below the poverty

line, as published by the Department of Commerce, unless the Secretary

and the Secretary of Commerce determine that use of the most recent data

available would be inappropriate or unreliable. If the Secretary and the

Secretary of Commerce determine that some or all of the data referred to

in this paragraph are inappropriate or unreliable, the Secretaries shall

issue a report setting forth their reasons in detail.'';

(4) in paragraph (5)--

(A) in subparagraph (A), by striking ``subparagraph

(B)'' and inserting ``subparagraphs (B) and (D)'';

(B) in subparagraph (B), by inserting before the

period the following: ``and to encourage Head Start

agencies to collaborate with entities involved in State

and local planning processes (including the State lead

agency administering the financial assistance received

under the Child Care and Development Block Grant Act of

1990 (42 U.S.C. 9858 et seq.) and the entities providing

resource and referral services in the State) in order to

better meet the needs of low-income children and

families'';

(C) in subparagraph (C)--

(i) in clause (i)(I), by inserting ``the

appropriate regional office of the Administration

for Children and Families and'' before

``agencies'';

(ii) in clause (iii), by striking ``and'' at

the end;

(iii) in clause (iv)--

(I) by striking ``education, and

national service activities,'' and

inserting ``education, and community

service activities,'';

(II) by striking ``and activities''

and inserting ``activities''; and

(III) by striking the period and

inserting ``(including coordination of

services with those State officials who

are responsible for administering part C

and section 619 of the Individuals with

Disabilities Education Act (20 U.S.C.

1431-1445, 1419)), and services for

homeless children;''; and

(iv) by adding at the end the following:

``(v) include representatives of the State Head Start

Association and local Head Start agencies in unified planning

regarding early care and education services at both the State

and local levels, including collaborative efforts to plan for

the provision of full-working-day, full calendar year early care

and education services for children; and

``(vi) encourage local Head Start agencies to appoint a

State level representative to represent Head Start agencies

within the State in conducting collaborative efforts described

in subparagraphs (B) and (D), and in clause (v).'';

(D) by redesignating subparagraph (D) as

subparagraph (F); and

(E) by inserting after subparagraph (C) the

following:

``(D) Following the award of collaboration grants described in

subparagraph (B), the Secretary shall provide, from the reserved sums,

supplemental funding for collaboration grants--

``(i) to States that (in consultation with their State Head

Start Associations) develop statewide, regional, or local

unified plans for early childhood education and child care that

include the participation of Head Start agencies; and

``(ii) to States that engage in other innovative

collaborative initiatives, including plans for collaborative

training and professional development initiatives for child

care, early childhood education and Head Start service managers,

providers, and staff.

``(E)(i) The Secretary shall--

``(I) review on an ongoing basis evidence of barriers to

effective collaboration between Head Start programs and other

Federal, State, and local child care and early childhood

education programs and resources;

``(II) develop initiatives, including providing additional

training and technical assistance and making regulatory changes,

in necessary cases, to eliminate barriers to the collaboration;

and

``(III) develop a mechanism to resolve administrative and

programmatic conflicts between programs described in subclause

(I) that would be a barrier to service providers, parents, or

children related to the provision of unified services and the

consolidation of funding for child care services.

``(ii) In the case of a collaborative activity funded under this

subchapter and another provision of law providing for Federal child care

or early childhood education, the use of equipment and nonconsumable

supplies purchased with funds made available under this subchapter or

such provision shall not be restricted to children enrolled or otherwise

participating in the program carried out under that subchapter or

provision, during a period in which the activity is predominantly funded

under this subchapter or such provision.''; and

(5) in paragraph (6)--

(A) by inserting ``(A)'' before ``From'';

(B) by striking ``3 percent'' and all that follows

and inserting the following: ``7.5 percent for fiscal

year 1999, 8 percent for fiscal year 2000, 9 percent for

fiscal year 2001, 10 percent for fiscal year 2002, and

10 percent for fiscal year 2003, of the amount

appropriated pursuant to section 639(a), except as

provided in subparagraph (B).''; and

(C) by adding at the end the following:

``(B)(i) If the Secretary does not submit an interim report on the

preliminary findings of the Early Head Start impact study currently

being conducted by the Secretary (as of the date of enactment of the

Head Start Amendments of 1998) to the appropriate committees by June 1,

2001, the amount of the reserved portion for fiscal year 2002 that

exceeds the reserved portion for fiscal year 2001, if any, shall be used

for quality improvement activities described in section 640(a)(3) and

shall not be used to serve an increased number of eligible children

under section 645A.

``(ii) If the Secretary does not submit a final report on the Early

Head Start impact study to the appropriate committees by June 1, 2002,

or if the Secretary finds in the report that there are substantial

deficiencies in the programs carried out under section 645A, the amount

of the reserved portion for fiscal year 2003 that exceeds the reserved

portion for fiscal year 2002, if any, shall be used for quality

improvement activities described in section 640(a)(3) and shall not be

used to serve an increased number of eligible children under section

645A.

``(iii) In this subparagraph:

``(I) The term `appropriate committees' means the Committee

on Education and the Workforce and the Committee on

Appropriations of the House of Representatives and the Committee

on Labor and Human Resources and the Committee on Appropriations

of the Senate.

``(II) The term `reserved portion', used with respect to a

fiscal year, means the amount required to be used in accordance

with subparagraph (A) for that fiscal year.

``(C)(i) For any fiscal year for which the Secretary determines that

the amount appropriated under section 639(a) is not sufficient to permit

the Secretary to reserve the portion described in subparagraph (A)

without reducing the number of children served by Head Start programs or

adversely affecting the quality of Head Start services, relative to the

number of children served and the quality of the services during the

preceding fiscal year, the Secretary may reduce the percentage of funds

required to be reserved for the portion described in subparagraph (A)

for the fiscal year for which the determination is made, but not below

the percentage required to be so reserved for the preceding fiscal year.

``(ii) For any fiscal year for which the amount appropriated under

section 639(a) is reduced to a level that requires a lower amount to be

made available under this subchapter to Head Start agencies and entities

described in section 645A, relative to the amount made available to the

agencies and entities for the preceding fiscal year, adjusted as

described in paragraph (3)(A)(ii), the Secretary shall proportionately

reduce--

``(I) the amounts made available to the entities for

programs carried out under section 645A; and

``(II) the amounts made available to Head Start agencies for

Head Start programs.''.

(b) Children With Disabilities.--Section 640(d) of the Head Start

Act (42 U.S.C. 9835(d)) is amended--

(1) by striking ``1982'' and inserting ``1999'';

(2) by striking ``(as defined in section 602(a) of the

Individuals with Disabilities Education Act)''; and

(3) by adding at the end the following: ``Such policies and

procedures shall require Head Start agencies to coordinate

programmatic efforts with efforts to implement part C and

section 619 of the Individuals with Disabilities Education Act

(20 U.S.C 1431-1445, 1419).''.

(c) Increased Appropriations.--Section 640(g) of the Head Start Act

(42 U.S.C. 9835(g)) is amended--

(1) in paragraph (2)--

(A) in subparagraph (A), by striking the semicolon

and inserting ``, and the performance history of the

applicant in providing services under other Federal

programs (other than the program carried out under this

subchapter);'';

(B) in subparagraph (C), by striking the semicolon

and inserting ``, and organizations and public entities

serving children with disabilities;'';

(C) in subparagraph (D), by striking the semicolon

and inserting ``and the extent to which, and manner in

which, the applicant demonstrates the ability to

collaborate and participate with other local community

providers of child care or preschool services to provide

full-working-day full calendar year services;'';

(D) in subparagraph (E), by striking ``program;

and'' and inserting ``program or any other early

childhood program;'';

(E) in subparagraph (F), by striking the period and

inserting a semicolon; and

(F) by adding at the end the following:

``(G) the extent to which the applicant proposes to foster

partnerships with other service providers in a manner that will

enhance the resource capacity of the applicant; and

``(H) the extent to which the applicant, in providing

services, plans to coordinate with the local educational agency

serving the community involved and with schools in which

children participating in a Head Start program operated by such

agency will enroll following such program, regarding such

services and the education services provided by such local

educational agency.''; and

(2) by adding at the end the following:

``(4) Notwithstanding subsection (a)(2), after taking into account

paragraph (1), the Secretary may allocate a portion of the remaining

additional funds under subsection (a)(2)(A) for the purpose of

increasing funds available for activities described in such

subsection.''.

(d) Migrant and Seasonal Head Start Programs.--Section 640(l) (42

U.S.C. 9835(l)) is amended--

(1) by striking ``(l)'' and inserting ``(l)(1)'';

(2) by striking ``migrant Head Start programs'' each place

it appears and inserting ``migrant and seasonal Head Start

programs'';

(3) by striking ``migrant families'' and inserting ``migrant

and seasonal farmworker families''; and

(4) by adding at the end the following:

``(2) For purposes of subsection (a)(2)(A), in determining the need

and demand for migrant and seasonal Head Start programs (and services

provided through such programs), the Secretary shall consult with

appropriate entities, including providers of services for migrant and

seasonal Head Start programs. The Secretary shall, after taking into

consideration the need and demand for migrant and seasonal Head Start

programs (and such services), ensure that there is an adequate level of

such services for eligible children of migrant farmworkers before

approving an increase in the allocation of funds provided under such

subsection for unserved eligible children of seasonal farmworkers. In

serving the eligible children of seasonal farmworkers, the Secretary

shall ensure that services provided by migrant and seasonal Head Start

programs do not duplicate or overlap with other Head Start services

available to eligible children of such farmworkers.

``(3) In carrying out this subchapter, the Secretary shall continue

the administrative arrangement responsible for meeting the needs of

children of migrant and seasonal farmworkers and Indian children and

shall ensure that appropriate funding is provided to meet such needs.''.

(e) Conforming Amendment.--Section 644(f)(2) of the Head Start Act

(42 U.S.C. 9839(f)(2)) is amended by striking ``Except'' and all that

follows through ``financial'' and inserting ``Financial''.

SEC. 107. DESIGNATION OF HEAD START AGENCIES.

Section 641 of the Head Start Act (42 U.S.C. 9836) is amended--

(1) in subsection (a)--

(A) in the matter preceding paragraph (1), by

inserting ``or for-profit'' after ``nonprofit''; and

(B) by inserting ``(in consultation with the chief

executive officer of the State involved, if such State

expends non-Federal funds to carry out Head Start

programs)'' after ``Secretary'' the last place it

appears;

(2) in subsection (b), by striking ``area designated by the

Bureau of Indian Affairs as near-reservation'' and inserting

``off-reservation area designated by an appropriate tribal

government in consultation with the Secretary'';

(3) in subsection (c)--

(A) in paragraph (1)--

(i) by inserting ``, in consultation with the

chief executive officer of the State involved if

such State expends non-Federal funds to carry out

Head Start programs,'' after ``shall'';

(ii) by inserting ``or for-profit'' after

``nonprofit''; and

(iii) by striking ``makes a finding'' and all

that follows through the period at the end, and

inserting the following: ``determines that the

agency involved fails to meet program and

financial management requirements, performance

standards described in section 641A(a)(1),

results-based performance measures developed by

the Secretary under section 641A(b), or other

requirements established by the Secretary.'';

(B) in paragraph (2), by inserting ``, in

consultation with the chief executive officer of the

State if such State expends non-Federal funds to carry

out Head Start programs,'' after ``shall''; and

(C) by aligning the margins of paragraphs (2) and

(3) with the margin of paragraph (1);

(4) in subsection (d)--

(A) in the matter preceding paragraph (1), by

inserting after the first sentence the following: ``In

selecting from among qualified applicants for

designation as a Head Start agency, the Secretary shall

give priority to any qualified agency that functioned as

a Head Start delegate agency in the community and

carried out a Head Start program that the Secretary

determines met or exceeded such performance standards

and such results-based performance measures.'';

(B) in paragraph (3), by inserting ``and programs

under part C and section 619 of the Individuals with

Disabilities Education Act (20 U.S.C 1431-1445, 1419)''

after ``(20 U.S.C. 2741 et seq.)'';

(C) in paragraph (4)--

(i) in subparagraph (A), by inserting ``(at

home and in the center involved where

practicable)'' after ``activities'';

(ii) in subparagraph (D)--

(I) in clause (iii), by adding

``or'' at the end;

(II) by striking clause (iv); and

(III) by redesignating clause (v) as

clause (iv);

(iii) in subparagraph (E), by striking ``and

(D)'' and inserting ``, (D), and (E)'';

(iv) by redesignating subparagraphs (D) and

(E) as subparagraphs (E) and (F), respectively;

and

(v) by inserting after subparagraph (C) the

following:

``(D) to offer to parents of participating children

substance abuse counseling (either directly or through

referral to local entities), including information on

drug-exposed infants and fetal alcohol syndrome;'';

(D) by amending paragraph (7) to read as follows:

``(7) the plan of such applicant to meet the needs of non-

English background children and their families, including needs

related to the acquisition of the English language;'';

(E) in paragraph (8)--

(i) by striking the period at the end and

inserting ``; and''; and

(ii) by redesignating such paragraph as

paragraph (9);

(F) by inserting after paragraph (7) the following:

``(8) the plan of such applicant to meet the needs of

children with disabilities;''; and

(G) by adding at the end the following:

``(10) the plan of such applicant to collaborate with other

entities carrying out early childhood education and child care

programs in the community.'';

(5) by striking subsection (e) and inserting the following:

``(e) If no agency in the community receives priority designation

under subsection (c), and there is no qualified applicant in the

community, the Secretary shall designate a qualified agency to carry out

the Head Start program in the community on an interim basis until a

qualified applicant from the community is so designated.''; and

(6) by adding at the end the following:

``(g) If the Secretary determines that a nonprofit agency and a for-

profit agency have submitted applications for designation of equivalent

quality under subsection (d), the Secretary may give priority to the

nonprofit agency. In selecting from among qualified applicants for

designation as a Head Start agency under subsection (d), the Secretary

shall give priority to applicants that have demonstrated capacity in

providing comprehensive early childhood services to children and their

families.''.

SEC. 108. QUALITY STANDARDS.

(a) Quality Standards.--Section 641A(a) of the Head Start Act (42

U.S.C. 9836a(a)) is amended--

(1) in paragraph (1)--

(A) in the matter preceding subparagraph (A), by

inserting ``, including minimum levels of overall

accomplishment,'' after ``regulation standards'';

(B) in subparagraph (A), by striking ``education,'';

(C) by redesignating subparagraphs (B) through (D)

as subparagraphs (C) through (E), respectively; and

(D) by inserting after subparagraph (A) the

following:

``(B)(i) education performance standards to ensure

the school readiness of children participating in a Head

Start program, on completion of the Head Start program

and prior to entering school; and

``(ii) additional education performance standards to

ensure that the children participating in the program,

at a minimum--

``(I) develop phonemic, print, and numeracy

awareness;

``(II) understand and use language to

communicate for various purposes;

``(III) understand and use increasingly

complex and varied vocabulary;

``(IV) develop and demonstrate an appreciation

of books; and

``(V) in the case of non-English background

children, progress toward acquisition of the

English language.'';

(2) by striking paragraph (2);

(3) by redesignating paragraphs (3) and (4) as paragraphs

(2) and (3), respectively;

(4) in paragraph (2) (as redesignated in paragraph (3))--

(A) in subparagraph (B)(iii), by striking ``child''

and inserting ``early childhood education and''; and

(B) in subparagraph (C)--

(i) in clause (i)--

(I) by striking ``not later than 1

year after the date of enactment of this

section,''; and

(II) by striking ``section 651(b)''

and all that follows and inserting

``this subsection; and''; and

(ii) in subclause (ii), by striking ``November

2, 1978'' and inserting ``the date of enactment of

the Coats Human Services Reauthorization Act of

1998''; and

(5) in paragraph (3) (as redesignated in paragraph (3)), by

striking ``to an agency (referred to in this subchapter as the

`delegate agency')'' and inserting ``to a delegate agency''.

(b) Performance Measures.--Section 641A(b) of the Head Start Act (42

U.S.C. 9836a(b)) is amended--

(1) in the heading, by inserting ``Results-Based'' before

``Performance'';

(2) in paragraph (1)--

(A) by striking ``Not later than 1 year after the

date of enactment of this section, the'' and inserting

``The'';

(B) by striking ``child'' and inserting ``early

childhood education and'';

(C) by inserting before ``(referred'' the following:

``, and the impact of the services provided through the

programs to children and their families''; and

(D) by striking ``performance measures'' and

inserting ``results-based performance measures''; and

(3) in paragraph (2)--

(A) in the paragraph heading, by striking ``Design''

and inserting ``Characteristics'';

(B) in the matter preceding subparagraph (A), by

striking ``shall be designed--'' and inserting ``shall--

'';

(C) in subparagraph (A), by striking ``to assess''

and inserting ``be used to assess the impact of'';

(D) in subparagraph (B)--

(i) by striking ``to'';

(ii) by striking ``and peer review'' and

inserting ``, peer review, and program

evaluation''; and

(iii) by inserting ``, not later than July 1,

1999'' before the semicolon;

(E) in subparagraph (C), by inserting ``be

developed'' before ``for other''; and

(F) by adding at the end the following: ``The

performance measures shall include the performance

standards described in subsection (a)(1)(B)(ii).'';

(4) in paragraph (3)(A), by striking ``and by region'' and

inserting ``, regionally, and locally''; and

(5) by adding at the end the following:

``(4) Educational performance measures.--Such results-based

performance measures shall include educational performance

measures that ensure that children participating in Head Start

programs--

``(A) know that letters of the alphabet are a

special category of visual graphics that can be

individually named;

``(B) recognize a word as a unit of print;

``(C) identify at least 10 letters of the alphabet;

and

``(D) associate sounds with written words.

``(5) Additional local results-based performance measures.--

In addition to other applicable results-based performance

measures, Head Start agencies may establish local results-based

educational performance measures.''.

(c) Monitoring.--Section 641A(c) of the Head Start Act (42 U.S.C.

9836a(c)) is amended--

(1) in paragraph (1), by inserting ``and results-based

performance measures developed by the Secretary under subsection

(b)'' after ``standards established under this subchapter''; and

(2) in paragraph (2)--

(A) in subparagraph (B), by striking ``and'' at the

end;

(B) in subparagraph (C)--

(i) by inserting ``(including children with

disabilities)'' after ``eligible children''; and

(ii) by striking the period at the end and

inserting a semicolon; and

(C) by adding at the end the following:

``(D) include as part of the reviews of the

programs, a review and assessment of program

effectiveness, as measured in accordance with the

results-based performance measures developed by the

Secretary pursuant to subsection (b) and with the

performance standards established pursuant to

subparagraphs (A) and (B) of subsection (a)(1); and

``(E) seek information from the communities and the

States involved about the performance of the programs

and the efforts of the Head Start agencies to

collaborate with other entities carrying out early

childhood education and child care programs in the

community.''.

(d) Termination.--Section 641A(d) of the Head Start Act (42 U.S.C.

9836a(d)) is amended--

(1) in paragraph (1)--

(A) by inserting ``or results-based performance

measures developed by the Secretary under subsection

(b)'' after ``subsection (a)''; and

(B) by amending subparagraph (B) to read as follows:

``(B) with respect to each identified deficiency,

require the agency--

``(i) to correct the deficiency immediately,

if the Secretary finds that the deficiency

threatens the health or safety of staff or program

participants or poses a threat to the integrity of

Federal funds;

``(ii) to correct the deficiency not later

than 90 days after the identification of the

deficiency if the Secretary finds, in the

discretion of the Secretary, that such a 90-day

period is reasonable, in light of the nature and

magnitude of the deficiency; or

``(iii) in the discretion of the Secretary

(taking into consideration the seriousness of the

deficiency and the time reasonably required to

correct the deficiency), to comply with the

requirements of paragraph (2) concerning a quality

improvement plan; and''; and

(2) in paragraph (2)(A), in the matter preceding clause (i),

by striking ``able to correct a deficiency immediately'' and

inserting ``required to correct a deficiency immediately or

during a 90-day period under clause (i) or (ii) of paragraph

(1)(B)''.

(e) <<NOTE: Public information. Internet.>> Report.--Section 641A(e)

of the Head Start Act (42 U.S.C. 9836a(e)) is amended by adding at the

end the following: ``Such report shall be widely disseminated and

available for public review in both written and electronic formats.''.

SEC. 109. POWERS AND FUNCTIONS OF HEAD START AGENCIES.

Section 642 of the Head Start Act (42 U.S.C. 9837) is amended--

(1) in subsection (a), by inserting ``or for-profit'' after

``nonprofit'';

(2) in subsection (b)--

(A) in paragraph (6)--

(i) by striking subparagraph (D); and

(ii) by redesignating subparagraphs (E) and

(F) and subparagraphs (D) and (E), respectively;

(B) in paragraph (8), by striking ``and'' at the

end;

(C) in paragraph (9), by striking the period at the

end and inserting ``; and'';

(D) by redesignating paragraphs (6) through (9) as

paragraphs (7) through (10), respectively;

(E) by inserting after paragraph (5) the following:

``(6) offer to parents of participating children substance

abuse counseling (either directly or through referral to local

entities), including information on drug-exposed infants and

fetal alcohol syndrome;'';

(F) in paragraph (8) (as redesignated in

subparagraph (D)), by striking ``paragraphs (4) through

(6)'' and inserting ``paragraphs (4) through (7)''; and

(G) by adding at the end the following:

``(11)(A) inform custodial parents in single-parent families

that participate in programs, activities, or services carried

out or provided under this subchapter about the availability of

child support services for purposes of establishing paternity

and acquiring child support; and

``(B) refer eligible parents to the child support offices of

State and local governments.'';

(3) in subsection (c)--

(A) by inserting ``and collaborate'' after

``coordinate'';

(B) by striking ``section 402(g) of the Social

Security Act, and other'' and inserting ``the State

program carried out under the Child Care and Development

Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), and

other early childhood education and development''; and

(C) by inserting ``and programs under part C and

section 619 of the Individuals with Disabilities

Education Act (20 U.S.C 1431-1445, 1419)'' after ``(20

U.S.C. 2741 et seq.)'';

(4) in subsection (d)--

(A) in paragraph (1)--

(i) by striking ``carry out'' and all that

follows through ``maintain'' and inserting ``take

steps to ensure, to the maximum extent possible,

that children maintain'';

(ii) by inserting ``and educational'' after

``developmental''; and

(iii) by striking ``to build'' and inserting

``build'';

(B) by striking paragraph (2);

(C) by redesignating paragraphs (3) through (5) as

paragraphs (2) through (4), respectively; and

(D) in subparagraph (A) of paragraph (4) (as

redesignated in subparagraph (C)), by striking ``the

Head Start Transition Project Act (42 U.S.C. 9855 et

seq.)'' and inserting ``section 642A''; and

(5) by adding at the end the following:

``(e) Head Start agencies shall adopt, in consultation with experts

in child development and with classroom teachers, an assessment to be

used when hiring or evaluating any classroom teacher in a center-based

Head Start program. Such assessment shall measure whether such teacher

has mastered the functions described in section 648A(a)(1).''.

SEC. 110. HEAD START TRANSITION.

The Head Start Act (42 U.S.C. 9831 et seq.) is amended by inserting

after section 642 the following:

``SEC. 642A. HEAD START TRANSITION. <<NOTE: 42 USC 9837a.>>

``Each Head Start agency shall take steps to coordinate with the

local educational agency serving the community involved and with schools

in which children participating in a Head Start program operated by such

agency will enroll following such program, including--

``(1) developing and implementing a systematic procedure for

transferring, with parental consent, Head Start program records

for each participating child to the school in which such child

will enroll;

``(2) establishing channels of communication between Head

Start staff and their counterparts in the schools (including

teachers, social workers, and health staff) to facilitate

coordination of programs;

``(3) conducting meetings involving parents, kindergarten or

elementary school teachers, and Head Start program teachers to

discuss the educational, developmental, and other needs of

individual children;

``(4) organizing and participating in joint transition-

related training of school staff and Head Start staff;

``(5) developing and implementing a family outreach and

support program in cooperation with entities carrying out

parental involvement efforts under title I of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.);

``(6) assisting families, administrators, and teachers in

enhancing educational and developmental continuity between Head

Start services and elementary school classes; and

``(7) linking the services provided in such Head Start

program with the education services provided by such local

educational agency.''.

SEC. 111. SUBMISSION OF PLANS TO GOVERNORS.

The first sentence of section 643 of the Head Start Act (42 U.S.C.

9838) is amended--

(1) by striking ``30 days'' and inserting ``45 days'';

(2) by striking ``so disapproved'' and inserting

``disapproved (for reasons other than failure of the program to

comply with State health, safety, and child care laws, including

regulations applicable to comparable child care programs in the

State)''; and

(3) by inserting before the period ``, as evidenced by a

written statement of the Secretary's findings that is

transmitted to such officer''.

SEC. 112. PARTICIPATION IN HEAD START PROGRAMS.

(a) Regulations.--Section 645(a)(1) of the Head Start Act (42 U.S.C.

9840(a)(1)) is amended--

(1) by striking ``provide (A) that'' and inserting the

following: ``provide--

``(A) that'';

(2) by striking ``assistance; and (B) pursuant'' and

inserting the following: ``assistance; and

``(B) pursuant'';

(3) in subparagraph (B), by striking ``that programs'' and

inserting ``that--

``(i) programs''; and

(4) by striking ``clause (A).'' and inserting the following:

``subparagraph (A); and

``(ii) a child who has been determined to meet the

low-income criteria and who is participating in a Head

Start program in a program year shall be considered to

continue to meet the low-income criteria through the end

of the succeeding program year.

In determining, for purposes of this paragraph, whether a child who has

applied for enrollment in a Head Start program meets the low-income

criteria, an entity may consider evidence of family income during the 12

months preceding the month in which the application is submitted, or

during the calendar year preceding the calendar year in which the

application is submitted, whichever more accurately reflects the needs

of the family at the time of application.''.

(b) Sliding Fee Scale.--Section 645(b) of the Head Start Act (42

U.S.C. 9840(b)) is amended by adding at the end the following: ``A Head

Start agency that provides a Head Start program with full-working-day

services in collaboration with other agencies or entities may collect a

family copayment to support extended day services if a copayment is

required in conjunction with the collaborative. The copayment charged to

families receiving services through the Head Start program shall not

exceed the copayment charged to families with similar incomes and

circumstances who are receiving the services through participation in a

program carried out by another agency or entity.''.

(c) Continuous Recruitment and Acceptance of Applications.--Section

645(c) of the Head Start Act (42 U.S.C. 9840(c)) is amended by adding at

the end the following: ``Each Head Start program operated in a community

shall be permitted to recruit and accept applications for enrollment of

children throughout the year.''.

(d) Off-Reservation Area.--Section 645(d)(1)(B) of the Head Start

Act (42 U.S.C. 9840(d)(1)(B)) is amended by striking ``a community

with'' and all that follows through ``Indian Affairs'' and inserting ``a

community that is an off-reservation area, designated by an appropriate

tribal government, in consultation with the Secretary''.

SEC. 113. EARLY HEAD START PROGRAMS FOR FAMILIES WITH INFANTS AND

TODDLERS.

Section 645A of the Head Start Act (42 U.S.C. 9840a) is amended--

(1) in the section heading, by inserting ``early head

start'' before ``programs for'';

(2) in subsection (a)--

(A) in paragraph (1), by striking ``; and'' and

inserting a period;

(B) by striking paragraph (2); and

(C) by striking ``for--'' and all that follows

through ``(1)'' and inserting ``for'';

(3) in subsection (b)--

(A) in paragraph (5), by inserting ``(including

programs for infants and toddlers with disabilities)''

after ``community'';

(B) in paragraph (7), by striking ``and'' at the

end;

(C) by redesignating paragraph (8) as paragraph (9);

and

(D) by inserting after paragraph (7) the following:

``(8) ensure formal linkages with the agencies and entities

described in section 644(b) of the Individuals with Disabilities

Education Act (20 U.S.C. 1444(b)) and providers of early

intervention services for infants and toddlers with disabilities

under the Individuals with Disabilities Education Act (20 U.S.C.

1400 et seq.); and'';

(4) in subsection (c)--

(A) in the matter preceding paragraph (1), by

striking ``subsection (a)(1)'' and inserting

``subsection (a)''; and

(B) in paragraph (2), by striking ``3 (or under''

and all that follows and inserting ``3;'';

(5) in subsection (d)--

(A) in paragraph (1), by adding ``and'' at the end;