(B) The remaining cost of a program assisted under this part may be provided in cash or in kind, fairly evaluated and may be obtained from any source, including other Federal funds under this Act.

(2) WAIVER.-The State educational agency may waive, in whole or in part, the cost-sharing requirement described in paragraph (1) for an eligible entity if such entity—

(A) demonstrates that such entity otherwise would not be able to participate in the program assisted under this part; and

(B) negotiates an agreement with the State educational agency with respect to the amount of the remaining cost to which the waiver will be applicable.

(3) PROHIBITION.-Federal funds provided under this part may not be used for the indirect costs of a program assisted under this part, except that the Secretary may waive this paragraph if an eligible recipient of funds reserved under section 1202(a)(1)(C) demonstrates to the Secretary's satisfaction that such recipient otherwise would not be able to participate in the program assisted under this part.

SEC. 1205. [20 U.S.C. 6365] PROGRAM ELEMENTS.

Each program assisted under this part shall

(1) include the identification and recruitment of families most in need of services provided under this part, as indicated by a low level of income, a low level of adult literacy or English language proficiency of the eligible parent or parents, and other need-related indicators;

(2) include screening and preparation of parents, including teenage parents and children to enable such parents to participate fully in the activities and services provided under this part, including testing, referral to necessary counselling, other developmental and support services, and related services;

(3) be designed to accommodate the participants' work schedule and other responsibilities, including the provision of support services, when such services are unavailable from other sources, necessary for participation in the activities assisted under this part, such as

(A) scheduling and locating of services to allow joint participation by parents and children;

(B) child care for the period that parents are involved in the program provided under this part; and

(C) transportation for the purpose of enabling parents and their children to participate in programs authorized by this part;

(4) include high-quality, intensive instructional programs that promote adult literacy and empower parents to support the educational growth of their children, developmentally appropriate early childhood educational services, and preparation of children for success in regular school programs;

(5) include special training of staff, including child care staff, to develop the skills necessary to work with parents and young children in the full range of instructional services offered through this part;

(6) provide and monitor integrated instructional services to participating parents and children through home-based pro

grams;

(7) operate on a year-round basis, including the provision of some program services, instructional or enrichment, during the summer months;

(8) be coordinated with

(A) programs assisted under other parts of this title and this Act;

(B) any relevant programs under the Adult Education and Family Literacy Act, the Individuals with Disabilities Education Act, and the Job Training Partnership Act and 1 title I of the Workforce Investment Act of 1998; and

(C) the Head Start program, volunteer literacy programs, and other relevant programs;

(9) ensure that the programs will serve those families most in need of the activities and services provided by this part; and

(10) provide for an independent evaluation of the program.

SEC. 1206. [20 U.S.C. 6366] ELIGIBLE PARTICIPANTS.

(a) IN GENERAL.-Except as provided in subsection (b), eligible participants in an Even Start program are

(1) a parent or parents

(A) who are eligible for participation in adult education and literacy activities under the Adult Education and Family Literacy Act; or

(B) who are within the State's compulsory school attendance age range, so long as a local educational agency provides (or ensures the availability of) the basic education component required under this part; and

(2) the child or children, from birth through age seven, of any individual described in paragraph (1).

(b) ELIGIBILITY FOR CERTAIN OTHER PARTICIPANTS.—

(1) IN GENERAL.-Family members of eligible participants described in subsection (a) may participate in activities and services provided under this part, when appropriate to serve the purpose of this part.

(2) SPECIAL RULE.-Any family participating in a program assisted under this part that becomes ineligible for such participation as a result of one or more members of the family becoming ineligible for such participation may continue to participate in the program until all members of the family become ineligible for such participation, which—

(A) in the case of a family in which ineligibility was due to the child or children of such family attaining the age of eight, shall be in two years or when the parent or parents become ineligible due to educational advancement, whichever occurs first; and

1The amendment made by section 405(f)(13)(A) of Public Law 105-277 (112 Stat. 2681-431) takes effect on July 1, 2000 and is as follows:

(13) ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.—

(A) SECTION 1205.-Section 1205(8)(B) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6365(8)(B)) is amended by striking "the Job Training Partnership Act and".

(B) in the case of a family in which ineligibility was due to the educational advancement of the parent or parents of such family, shall be when all children in the family attain the age of eight.

SEC. 1207. [20 U.S.C. 6367] APPLICATIONS.

(a) SUBMISSION.-To be eligible to receive a subgrant under this part, an eligible entity shall submit an application to the State educational agency in such form and containing or accompanied by such information as the State educational agency shall require.

(b) REQUIRED DOCUMENTATION.-Each application shall include documentation, satisfactory to the State educational agency, that the eligible entity has the qualified personnel needed

(1) to develop, administer, and implement an Even Start program under this part; and

(2) to provide access to the special training necessary to prepare staff for the program, which may be offered by an eligible organization.

(c) PLAN.

(1) IN GENERAL. Such application shall also include a plan of operation for the program which shall include—

(A) a description of the program goals;

(B) a description of the activities and services that will be provided under the program, including a description of how the program will incorporate the program elements required by section 1205;

(C) a description of the population to be served and an estimate of the number of participants to be served;

(D) as appropriate, a description of the applicant's collaborative efforts with institutions of higher education, community-based organizations, the State educational agency, private elementary schools, or other eligible organizations in carrying out the program for which assistance is sought;

(E) a statement of the methods that will be used

(i) to ensure that the programs will serve families most in need of the activities and services provided by this part;

(ii) to provide services under this part to individuals with special needs, such as individuals with limited English proficiency and individuals with disabilities; and

(iii) to encourage participants to remain in the program for a time sufficient to meet the program's purpose; and

(F) a description of how the plan is integrated with other programs under this Act, the Goals 2000: Educate America Act, or other Acts, as appropriate, consistent with section 14306.

(2) DURATION OF THE PLAN.-Each plan submitted under paragraph (1)(A) shall

(A) remain in effect for the duration of the eligible entity's participation under this part; and

(B) be periodically reviewed and revised by the eligible

entity as necessary.

(d) CONSOLIDATED APPLICATION.-The plan described in subsection (c)(1)(F) may be submitted as part of a consolidated application under section 14302.

SEC. 1208. [20 U.S.C. 6368] AWARD OF SUBGRANTS.

(a) SELECTION PROCESS.

(1) IN GENERAL.-The State educational agency shall establish a review panel in accordance with paragraph (3) that will approve applications that

(A) are most likely to be successful in

(i) meeting the purpose of this part; and

(ii) effectively implementing the program elements required under section 1205;

(B) demonstrate that the area to be served by such program has a high percentage or a large number of children and families who are in need of such services as indicated by high levels of poverty, illiteracy, unemployment, limited-English proficiency, or other need-related indicators, including a high percentage of children to be served by the program who reside in a school attendance area eligible for participation in programs under part A;

(C) provide services for at least a three-year age range, which may begin at birth;

(D) demonstrate the greatest possible cooperation and coordination between a variety of relevant service providers in all phases of the program;

(E) include cost-effective budgets, given the scope of the application;

(F) demonstrate the applicant's ability to provide the Federal share required by section 1204(b);

(G) are representative of urban and rural regions of the State; and

(H) show the greatest promise for providing models that may be adopted by other local educational agencies. (2) PRIORITY FOR SUBGRANTS.—The State educational agency shall give priority for subgrants under this subsection to applications that

(A) target services primarily to families described in paragraph (1)(B); or

(B) are located in areas designated as empowerment zones or enterprise communities.

(3) REVIEW PANEL.-A review panel shall consist of at least three members, including one early childhood professional, one adult education professional, and one or more of the following individuals:

(A) A representative of a parent-child education organization.

(B) A representative of a community-based literacy organization.

(C) A member of a local board of education.

(D) A representative of business and industry with a commitment to education.

(E) An individual who has been involved in the implementation of programs under this title in the State. (b) DURATION.—

(1) IN GENERAL. Subgrants under this part may be awarded for a period not to exceed four years.

(2) STARTUP PERIOD.-The State educational agency may provide subgrant funds to an eligible recipient, at such recipient's request, for a three- to six-month startup period during the first year of the four-year grant period, which may include staff recruitment and training, and the coordination of services, before requiring full implementation of the program.

(3) CONTINUING ELIGIBILITY.-In awarding subgrant funds to continue a program under this part for the second, third, or fourth year, the State educational agency shall evaluate the program based on the indicators of program quality developed by the State under section 1210. Such evaluation shall take place after the conclusion of the startup period, if any.

(4) INSUFFICIENT PROGRESS.-The State educational agency may refuse to award subgrant funds if such agency finds that the eligible entity has not sufficiently improved the performance of the program, as evaluated based on the indicators of program quality developed by the State under section 1210, after

(A) providing technical assistance to the eligible entity; and

(B) affording the eligible entity notice and an opportunity for a hearing.

(5) GRANT RENEWAL. (A) An eligible entity that has previously received a subgrant under this part may reapply under this part for additional subgrants. An eligible recipient may receive funds under this part for a period not to exceed eight

years.

(B) The Federal share of any subgrant renewed under subparagraph (A) shall not exceed 50 percent in any fiscal year. SEC. 1209. [20 U.S.C. 6369] EVALUATION.

From funds reserved under section 1202(b)(1), the Secretary shall provide for an independent evaluation of programs assisted under this part

(1) to determine the performance and effectiveness of programs assisted under this part;

(2) to identify effective Even Start programs assisted under this part that can be duplicated and used in providing technical assistance to Federal, State, and local programs; and

(3) to provide States and eligible entities receiving a subgrant under this part, directly or through a grant or contract with an organization with experience in the development and operation of successful family literacy services, technical assistance to ensure local evaluations undertaken under section 1205(10) provide accurate information on the effectiveness of programs assisted under this part.

SEC. 1210. [20 U.S.C. 6369a] INDICATORS OF PROGRAM QUALITY.

Each State receiving funds under this part shall develop, based on the best available research and evaluation data, indicators of