DESIGNATION OF HEAD START AGENCIES.

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.)”; 112 STAT. 2713 (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.”.