I'm in a "blue" state: gifted programming mandated and partially funded by the state.
http://www.davidsongifted.org/db/state_policies.aspx

Your DS7's scores were 99% for end of first grade so you have good reason to think he may be gifted. Is there a gifted coordinator at the school you could meet with to discuss what options are available? Another idea is to call the district gifted coordinator.

Here's a good web site for ideas to challenge his reading. The bookmarks are great!
http://www.gifted.uconn.edu/SEMR/about/talented-readers.html