My state (Iowa) has the same type of rules. They block you from getting into K and 1st too early, but once you are in second, you're fine (in theory, you could get into second younger than they would allow you into first). The only options are to wait, or home school/private school for the first two years.
As far as keeping your daughter challenged, you can try to do stuff outside of school. For my daughter K would have been a completely different year had we not started her in piano lessons. School was pretty much a waste of time, but the piano kept her challenged as it was completely new.
After an unsuccessful attempts to discuss a grade skip at public school, we ended up sending my daughter to a wonderfully challenging private school for 1st through 5th. Are there any other private schools where you are at that might offer a better challenge?
-S.F.