SECTION 1. SHORT TITLE.

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

SEC. 2. JOHNSON-O'MALLEY SUPPLEMENTAL INDIAN EDUCATION PROGRAM 
              MODERNIZATION ACT.

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

``SEC. 7. JOHNSON-O'MALLEY SUPPLEMENTAL INDIAN EDUCATION PROGRAM 
              MODERNIZATION ACT.

    ``(a) Establishment.--Notwithstanding any other provision of law, 
the Secretary of the Interior, acting through the Assistant Secretary 
of Indian Affairs and in conjunction with the Director of the Bureau of 
Indian Education, shall establish a program to enter into contracts 
with eligible entities that have or serve Indian students to provide 
educational benefits to such Indian students.
    ``(b) Uses of Funds.--An eligible entity that enters into a 
contract under subsection (a) shall use the funds available under the 
contract to provide educational benefits to Indian students, by--
            ``(1) carrying out programs or expanding programs in 
        existence before the contract period that provide--
                    ``(A) remedial instruction, counseling, and 
                cultural programs;
                    ``(B) selected courses related to the academic and 
                professional disciplines of science, technology, 
                engineering, and mathematics;
                    ``(C) important needs, such as school supplies and 
                items that enable recipients to participate in 
                curricular and extra-curricular programs; and
                    ``(D) program activities that were available to 
                Indian students under contracts entered into under this 
                Act before October 1, 2012;
            ``(2) the establishment of targeted and culturally 
        sensitive dropout prevention activities; and
            ``(3) the purchase of equipment to facilitate training for 
        professional trade skills and intensified college preparation 
        programs.
    ``(c) Funding.--The Secretary shall transfer to the Bureau of 
Indian Education the funds necessary to carry out this section.
    ``(d) Computation of Awards.--
            ``(1) Determination of total students.--Except as provided 
        under paragraph (2), for the purpose of computing the amount 
        that an eligible entity may receive under a contract entered 
        into under subsection (a) for any fiscal year, the Secretary 
        shall--
                    ``(A) determine the number of Indian students who 
                were in average daily attendance in the schools of the 
                public school districts served by the eligible entity, 
                and for whom such school districts provided free public 
                education during the preceding school year; and
                    ``(B) provide a minimum of $125 per Indian student 
                described in subparagraph (A).
            ``(2) Hold harmless.--In the case of an eligible entity 
        that has or serves eligible Indian children attending a public 
        school that has been afforded supplemental services under a 
        contract entered into under this Act on or before October 1, 
        1995, such eligible entity shall receive an amount under a 
        contract entered into under subsection (a) that is at least 
        equal to the amount that such eligible entity would have 
        received under the contract entered into under this Act on or 
        before October 1, 1995.
    ``(e) Data Use.--
            ``(1) In general.--For purposes of the calculation under 
        subsection (d)(1), the Secretary shall use data for a public 
        school district from not later than the fiscal year preceding 
        the fiscal year for which the eligible entity involved is 
        applying for a contract under subsection (a).
            ``(2) Tribal organization.--In the case of a tribal 
        organization that has been established by the Bureau of Indian 
        Affairs on or after October 1, 2012, such tribal organization, 
        shall, for the first year of operation of such organization, be 
        based on data for the public school districts served by the 
        organization for the fiscal year for which the organization is 
        applying for a contract under subsection (a).
    ``(f) Geographic Coverage and Enhanced Participation.--In entering 
into contracts under subsection (a), the Secretary shall, to the extent 
practicable, ensure full geographic coverage and the full participation 
of all federally recognized tribes and school districts that have not 
entered into a contract under this Act before fiscal year 2015.
    ``(g) Complementary Program Participants.--In entering into 
contracts under subsection (a), the Secretary may give preference a 
consortium of tribal organizations, to encourage as many students and 
professionals as possible to benefit from the program established under 
this section, including such a consortium that includes a Tribal 
college or university.
    ``(h) Annual Report.--The Secretary shall include in the Department 
of the Interior fiscal year annual budget request to Congress an annual 
assessment of the program established under this section.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section such sums 
as may be necessary.
    ``(j) Definitions.--
            ``(1) Eligible entity.--The term `eligible entity' means 
        a--
                    ``(A) tribal organization;
                    ``(B) Indian Corporation;
                    ``(C) public school district;
                    ``(D) State; or
                    ``(E) a consortium of tribal organizations.
            ``(2) ESEA terms.--The terms `elementary school', 
        `secondary school', and `State' have the meanings given such 
        terms in section 9101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7801).
            ``(3) Indian student.--The term `Indian student' means a 
        student who--
                    ``(A) attends a public school district; and
                    ``(B) is between age 3 and grade 12, and--
                            ``(i) resides on or near an Indian 
                        reservation;
                            ``(ii) is an enrolled member, or at least 
                        one-fourth or more degree of Indian blood 
                        descendant, of a member of a federally 
                        recognized Indian tribal government eligible 
                        for service by the Bureau of Indian Affairs; or
                            ``(iii) is an Alaska Native.
            ``(4) Public school district.--The term `public school 
        district' means a school district that--
                    ``(A) serves public elementary schools or public 
                secondary schools; and
                    ``(B) has established or will establish local 
                committees under section 5 of this Act or is using a 
                committee or Indian advisory school board described in 
                such section 5 to approve supplementary or operational 
                support programs beneficial to Indian students, 
                including the programs described in paragraphs (1) 
                through (3) of subsection (b).
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(6) Tribal college or university.--The term `Tribal 
        college or university' has the meaning given the term in 
        section 316(b)(3) of the Higher Education Act of 1965 (20 
        U.S.C. 1059c(b)(3)).
            ``(7) Tribal organization.--The term `Tribal organization' 
        means any tribe, band, or community of Indians which is subject 
        to the laws of the United States relating to Indian affairs or 
        any corporation, association, or group which is organized under 
        any of such laws including Indian Education Consortiums and 
        Tribal Colleges and Universities.''.
Johnson-O'Malley Supplemental Indian Education Program Modernization Act - Amends the Johnson-O'Malley Act to direct the Secretary of the Interior to enter into contracts with tribal organizations, Indian corporations, public school districts, or states to provide educational benefits to Indian students who attend public elementary or secondary schools. Requires contract funds to be used for:    remedial instruction, counseling, and cultural programs;  science, technology, engineering, and mathematics (STEM) courses; important needs, such as school supplies and items that enable students to participate in curricular and extra-curricular programs; program activities that were available to Indian students under contracts entered into under the Act before October 1, 2012;  targeted and culturally sensitive dropout prevention activities; and   equipment to facilitate training for professional trade skills and intensified college preparation programs.  Determines the amount of funds each contractor is to receive by: (1) determining the number of Indian students who were in average daily attendance and receiving a free public education in the public schools of the school districts served by the contractor in the preceding school year, and (2) providing the contractor a minimum amount for each of those students. Authorizes the Secretary to give a contracting preference to a consortium of tribal organizations.
Johnson-O'Malley Supplemental Indian Education Program Modernization Act