104 STAT. 1230 PUBLIC LAW 101-501—NOV. 3, 1990 (2) by inserting "(1)" after "(c)", and (8) by striking paragraph (2) and the matter following such paragraph and inserting the following: "(B) except that, if there is no agency of the t3T)e referred to in subparagraph (A) because of any change in the assistance furnished to programs for economically disadvantaged persons, the Secretary shall give priority in the designation of Head Start agencies to any successor agency that is operating a Head Start program in substantially the same manner as the predecessor agency that did receive funds in the fiscal year preceding the fisc£d year for which the determination is made. "(2) The Secretary shall conduct a full review of each designated Head Start agency at least once during each 3-year period, and shall determine whether each agency meets program and fiscal requirements established by the S«;retary. "(3) In carrying out a review of each Head Start agency under paragraph (2), the Secretary shall— "(A) to the maximum extent practicable, carry out such review by using employees of the Department of Health and Human Services who are knowledgeable about Head Start programs; "(B) ensure that an employee of the Department of Health and Human Services who is knowledgeable about Head Start programs supervises such review at the site of such agency; "(C) measure the compliance of the programs of such agency with the performance standards in effect under section 651(b); and "(D) identify the types and conditions of facilities in which such programs are located. "(4) The results of a review conducted under this subsection shall not be sufficient alone for the purpose of determining whether to continue, or to discontinue, providing funds to a particular Head Start agency.". SEC. 108. DESIGNATION OF HEAD START AGENCIES. Section 641(d) of the Head Start Act (42 U.S.C. 9836(d)) is amended by adding at the end the following: "In selecting from among qualified applicants for designation as a Head Start agency and subject to the preceding sentence, the Secretary shall consider the effectiveness of each such applicant to provide Head Start services, based on— "(1) any past performance of such applicant in providing services comparable to Head Start services, including how effectively such applicant provided such comparable services; "(2) the plan of such applicant to provide comprehensive health, nutritional, educational, socisd, and other services needed to aid participating children in attaining their full potential; "(3) the plan of such applicant to coordinate the Head Start program it proposes to carry out, with other preschool programs and with the educational programs such children will enter at the age of compulsory school attendance; "(4) the plan of such applicant to involve parents of children who will participate in the proposed Head Start program in appropriate educational services (in accordance with the performance standards in effect under section 651(b) or through referral of such parents to educational services available in the
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