SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Johnson-O'Malley Supplemental Indian 
Education Program Modernization Act''.

SEC. 2. SUPPLEMENTAL INDIAN EDUCATION PROGRAM MODERNIZATION.

    The Act of April 16, 1934 (25 U.S.C. 452 et seq.) (commonly known 
as the ``Johnson-O'Malley Act''), is amended by adding at the end the 
following:

``SEC. 7. SUPPLEMENTAL INDIAN EDUCATION PROGRAM MODERNIZATION.

    ``(a) Definitions.--In this section:
            ``(1) Elementary school.--The term `elementary school' has 
        the meaning given the term in section 8101 of the Elementary 
        and Secondary Education Act of 1965.
            ``(2) Eligible entity.--The term `eligible entity' means an 
        entity that educates or serves Indian students and is--
                    ``(A) a tribal organization;
                    ``(B) an Indian corporation;
                    ``(C) a school district;
                    ``(D) a State; or
                    ``(E) a consortium of tribal organizations.
            ``(3) Eligible indian student.--The term `eligible Indian 
        student' means an Indian student who is eligible under section 
        273.12 of title 25, Code of Federal Regulations (or any 
        corresponding similar regulation or ruling).
            ``(4) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(5) Secondary school.--The term `secondary school' has 
        the meaning given the term in section 8101 of the Elementary 
        and Secondary Education Act of 1965.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of the Interior, acting through the Assistant Secretary for 
        Indian Affairs.
            ``(7) Tribal college or university.--The term `Tribal 
        College or University' has the meaning given the term in 
        section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1059c(b)).
    ``(b) Establishment.--The Secretary, in coordination with the 
Director of the Bureau of Indian Education, shall establish a program 
to enter into contracts and to monitor and review contractual 
obligations with eligible entities to provide educational benefits to 
eligible Indian students.
    ``(c) Uses of Funds.--An eligible entity that enters into a 
contract under subsection (b) shall use the funds available under the 
contract for the educational benefit of eligible Indian students--
            ``(1) to establish and carry out programs, or to expand and 
        carry out programs in existence before the period of time 
        covered by the contract, to provide--
                    ``(A) remedial instruction, counseling, and 
                cultural programs;
                    ``(B) courses related to science, technology, 
                engineering, and mathematics;
                    ``(C) school supplies and other items that enable 
                students to participate in curricular and extra-
                curricular programs; or
                    ``(D) activities that were available to Indian 
                students under contracts entered into under this Act 
                before October 1, 2012;
            ``(2) to establish targeted, culturally sensitive, dropout 
        prevention activities; and
            ``(3) to purchase equipment to facilitate--
                    ``(A) training for professional trade skills; and
                    ``(B) intensified college preparation programs.
    ``(d) Computation of Awards.--
            ``(1) In general.--Except as provided in paragraph (3), the 
        Secretary shall base the amount that an eligible entity 
        receives under a contract entered into under subsection (b) for 
        any fiscal year on the number of eligible Indian students of 
        the eligible entity, as determined by the Secretary under 
        paragraph (2).
            ``(2) Determination of number of eligible indian 
        students.--
                    ``(A) In general.--The Secretary shall determine 
                the number of eligible Indian students of an eligible 
                entity in accordance with this paragraph.
                    ``(B) Initial determination.--Not later than 1 year 
                after the date of enactment of this section, the 
                Secretary shall publish a report describing the number 
                of potentially eligible Indian students of each 
                eligible entity, using data described in subparagraph 
                (D) from, as determined by the Secretary, the most 
                applicable, accurate, and current of--
                            ``(i) the Bureau of the Census; or
                            ``(ii) the National Center for Education 
                        Statistics.
                    ``(C) Reconciliation.--After publishing the report 
                under subparagraph (B), the Secretary, in coordination 
                with the Director of the Bureau of Indian Education, 
                shall consult with entities party to a contract under 
                subsection (b)--
                            ``(i) to establish a process to reconcile 
                        the data described in the report published 
                        under subparagraph (B) with--
                                    ``(I) data described in 
                                subparagraph (D) of entities party to a 
                                contract under subsection (b); and
                                    ``(II) tribal enrollment 
                                information; and
                            ``(ii) to determine an accurate number of 
                        eligible Indian students of each eligible 
                        entity.
                    ``(D) Data use.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary shall use data from not earlier 
                        than the fiscal year preceding the fiscal year 
                        for which an eligible entity is applying for a 
                        contract under subsection (b) to determine the 
                        number of eligible Indian students.
                            ``(ii) New contractors.--To determine the 
                        number of eligible Indian students of an entity 
                        party to a contract under subsection (b) that 
                        the Secretary recognized as an eligible entity 
                        during or after fiscal year 2012, the Secretary 
                        shall, for the first year of the period of time 
                        covered by the contract, use data of the school 
                        districts served by the entity for the fiscal 
                        year for which the entity is applying for a 
                        contract under subsection (b).
            ``(3) Hold harmless.--An eligible entity that educates or 
        serves eligible Indian students attending a public school that 
        has been afforded supplemental services under a contract under 
        this Act that took effect during or before fiscal year 1995 
        shall receive an amount under a contract entered into under 
        subsection (b) equal to or greater than the amount that the 
        eligible entity would have received under the contract entered 
        into under this Act during or before fiscal year 1995, for a 
        period of time ending not sooner than 2 years after the date of 
        enactment of this section.
            ``(4) Funding reform.--The Secretary shall submit to 
        Congress recommendations for legislation to provide resources 
        to restore the amount of funds available through contracts 
        under this Act per Indian student to the amount of funds 
        available through contracts under this Act per Indian student 
        during fiscal year 1995.
    ``(e) Additional Considerations.--
            ``(1) Geographic coverage and enhanced participation.--In 
        entering into contracts under subsection (b), the Secretary 
        shall, to the maximum extent practicable, ensure--
                    ``(A) full geographic coverage; and
                    ``(B) the full participation of eligible entities.
            ``(2) Increased participation of eligible entities.--To the 
        maximum extent practicable, the Secretary shall--
                    ``(A) contact and consult with Indian tribes and 
                school districts with significant populations of 
                eligible Indian students that have not previously 
                contracted under this Act; and
                    ``(B) determine the interest in and eligibility for 
                administering services under this Act of the Indian 
                tribes and school districts described in subparagraph 
                (A).
            ``(3) Complementary program participants.--In entering into 
        contracts under subsection (b), the Secretary may give 
        preference to a consortium of tribal organizations, including a 
        consortium of tribal organizations that includes a Tribal 
        College or University, to encourage as many students and 
        professionals as possible to benefit from the program 
        established under subsection (b).
    ``(f) Annual Report.--The Secretary shall include in the budget 
request of the Department of the Interior for each fiscal year an 
annual assessment of the program established under subsection (b).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as are necessary to carry out 
this section.''.
Johnson-O'Malley Supplemental Indian Education Program Modernization Act This bill amends the Johnson-O'Malley Act to establish a program through which the Bureau of Indian Affairs (BIA) shall contract with eligible entities for the purpose of providing educational benefits to Indian students. An eligible entity is an entity that educates or serves Indian students and is either a tribal organization, an Indian corporation, a school district, a state, or a consortium of tribal organizations. An eligible entity shall use the funds to establish or expand programs to: (1) provide remedial instruction, counseling, cultural programs, school supplies, and specified courses and activities; (2) establish targeted, culturally sensitive, dropout prevention activities; and (3) purchase equipment to facilitate training in trade skills and college preparation. In general, BIA shall base the amount of a contract on the number of eligible Indian students educated or served by an eligible entity. With respect to these contracts, BIA must ensure full geographic coverage and the full participation of eligible entities.
Johnson-O'Malley Supplemental Indian Education Program Modernization Act