576
the annual report required by subsection (c) when pre-
paring their annual budget submissions.
‘‘SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.
‘‘(a) ESTABLISHMENT OF SYSTEM AND FORWARD
FUNDING.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish, by regulation adopted in accordance with sec-
tion 1138, a system for the direct funding and sup-
port of all Bureau funded schools. Such system shall
allot funds in accordance with section 1127. All
amounts appropriated for distribution under this
section may be made available under paragraph (2).
‘‘(2) TIMING FOR USE OF FUNDS.—(A) For the
purposes of affording adequate notice of funding
available pursuant to the allotments made under sec-
tion 1127, amounts appropriated in an appropria-
tions Act for any fiscal year shall become available
for obligation by the affected schools on July 1 of
the fiscal year in which such amounts are appro-
priated without further action by the Secretary, and
shall remain available for obligation through the suc-
ceeding fiscal year.
‘‘(B) The Secretary shall, on the basis of the
amount appropriated in accordance with this
paragraph—
577
‘‘(i) publish, not later than July 1 of the
fiscal year for which the funds are appro-
priated, allotments to each affected school made
under section 1127 of 85 percent of such ap-
propriation; and
‘‘(ii) publish, not later than September 30
of such fiscal year, the allotments to be made
under section 1127 of the remaining 15 percent
of such appropriation, adjusted to reflect the
actual student attendance.
‘‘(3) LIMITATION.—(A) Notwithstanding any
other provision of law or regulation, the supervisor
of a Bureau funded school may expend an aggregate
of not more than $50,000 of the amount allotted the
school under section 1127 to acquire materials, sup-
plies, equipment, services, operation, and mainte-
nance for the school without competitive bidding if—
‘‘(i) the cost for any single item purchased
does not exceed $15,000;
‘‘(ii) the school board approves the pro-
curement;
‘‘(iii) the supervisor certifies that the cost
is fair and reasonable;
‘‘(iv) the documents relating to the pro-
curement executed by the supervisor or other
578
school staff cite this paragraph as authority for
the procurement; and
‘‘(v) the transaction is documented in a
journal maintained at the school clearly identi-
fying when the transaction occurred, what was
acquired and from whom, the price paid, the
quantities acquired, and any other information
the supervisor or school board considers rel-
evant.
‘‘(B) Not later than 6 months after the date of
the enactment of the No Child Left Behind Act of
2001, the Secretary shall cause to be sent to each
supervisor of a Bureau operated program and school
board chairperson, the education line officer or offi-
cers of each agency and area, and the Bureau Divi-
sion in charge of procurement, at both the local and
national levels, notice of this paragraph.
‘‘(C) The Director shall be responsible for de-
termining the application of this paragraph, includ-
ing the authorization of specific individuals to carry
out this paragraph, and shall be responsible for the
provision of guidelines on the use of this paragraph
and adequate training on such guidelines.
‘‘(4) EFFECT OF SEQUESTRATION ORDER.—If a
sequestration order issued under the Balanced
579
Budget and Emergency Deficit Control Act of 1985
reduces the amount of funds available for allotment
under section 1127 for any fiscal year by more than
7 percent of the amount of funds available for allot-
ment under such section during the preceding fiscal
year—
‘‘(A) to fund allotments under section
1127, the Secretary, notwithstanding any other
law, may use—
‘‘(i) funds appropriated for the oper-
ation of any Bureau school that is closed
or consolidated; and
‘‘(ii) funds appropriated for any pro-
gram that has been curtailed at any Bu-
reau school; and
‘‘(B) the Secretary may waive the applica-
tion of the provisions of section 1121(h) with
respect to the closure or consolidation of a
school, or the curtailment of a program at a
school, during such fiscal year if the funds de-
scribed in clauses (i) and (ii) of subparagraph
(A) with respect to such school are used to fund
allotments made under section 1127 for such
fiscal year.
580
‘‘(b) LOCAL FINANCIAL PLANS FOR EXPENDITURE
OF FUNDS.—
‘‘(1) PLAN REQUIRED.—In the case of all Bu-
reau operated schools, allotted funds shall be ex-
pended on the basis of local financial plans which
ensure meeting the accreditation requirements or
standards for the school established pursuant to sec-
tion 1121 and which shall be prepared by the local
school supervisor in active consultation with the local
school board for each school. The local school board
for each school shall have the authority to ratify, re-
ject, or amend such financial plan, and expenditures
thereunder, and, on its own determination or in re-
sponse to the supervisor of the school, to revise such
financial plan to meet needs not foreseen at the time
of preparation of the financial plan.
‘‘(2) The supervisor—
‘‘(A) shall put into effect the decisions of
the school board;
‘‘(B) shall provide the appropriate local
union representative of the education employees
with copies of proposed draft financial plans
and all amendments or modifications thereto, at
the same time such copies are submitted to the
local school board; and
581
‘‘(C) may appeal any such action of the
local school board to the appropriate education
line officer of the Bureau agency by filing a
written statement describing the action and the
reasons the supervisor believes such action
should be overturned. A copy of such statement
shall be submitted to the local school board and
such board shall be afforded an opportunity to
respond, in writing, to such appeal. After re-
viewing such written appeal and response, the
appropriate education line officer may, for good
cause, overturn the action of the local school
board. The appropriate education line officer
shall transmit the determination of such appeal
in the form of a written opinion to such board
and to such supervisor identifying the reasons
for overturning such action.
‘‘(c) 
USE
OF
SELF-DETERMINATION
GRANTS
FUNDS.—Funds for self-determination grants under sec-
tion 103(a)(2) of the Indian Self-Determination and Edu-
cation Assistance Act shall not be used for providing tech-
nical assistance and training in the field of education by
the Bureau unless such services are provided in accord-
ance with a plan, agreed to by the tribe or tribes affected
and the Bureau, under which control of education pro-
582
grams is intended to be transferred to such tribe or tribes
within a specific period of time negotiated under such
agreement. The Secretary may approve applications for
funding tribal divisions of education and development of
tribal codes of education from funds appropriated pursu-
ant to section 104(a) of such Act.
‘‘(d) TECHNICAL ASSISTANCE AND TRAINING.—In
the exercise of its authority under this section, a local
school board may request technical assistance and training
from the Secretary, and the Secretary shall, to the great-
est extent possible, provide such services, and make appro-
priate provisions in the budget of the Office for such serv-
ices.
‘‘(e) SUMMER PROGRAM OF ACADEMIC AND SUPPORT
SERVICES.—
‘‘(1) IN GENERAL.—A financial plan under sub-
section (b) for a school may include, at the discre-
tion of the local administrator and the school board
of such school, a provision for a summer program of
academic and support services for students of the
school. Any such program may include activities re-
lated to the prevention of alcohol and substance
abuse. The Assistant Secretary for Indian Affairs
shall provide for the utilization of any such school
583
facility during any summer in which such utilization
is requested.
‘‘(2) USE OF OTHER FUNDS.—Notwithstanding
any other provision of law, funds authorized under
the Act of April 16, 1934, and this Act may be used
to augment the services provided in each summer
program at the option, and under the control, of the
tribe or Indian controlled school receiving such
funds.
‘‘(3) TECHNICAL
ASSISTANCE
AND
PROGRAM
COORDINATION.—The Assistant Secretary for Indian
Affairs, acting through the Director of the Office,
shall provide technical assistance and coordination
for any program described in paragraph (1) and
shall, to the extent possible, encourage the coordina-
tion of such programs with any other summer pro-
grams that might benefit Indian youth, regardless of
the funding source or administrative entity of any
such program.
‘‘(f) COOPERATIVE AGREEMENTS.—
‘‘(1) IN GENERAL.—From funds allotted to a
Bureau school under section 1127, the Secretary
shall, if specifically requested by the tribal governing
body (as defined in section 1141), implement any co-
operative agreement entered into between the tribe,
584
the Bureau school board, and the local public school
district which meets the requirements of paragraph
(2) and involves the school. The tribe, the Bureau
school board, and the local public school district
shall determine the terms of the agreement. Such
agreement may encompass coordination of all or any
part of the following:
‘‘(A) Academic program and curriculum,
unless the Bureau school is currently accredited
by a State or regional accrediting entity and
would not continue to be so accredited.
‘‘(B) Support services, including procure-
ment and facilities maintenance.
‘‘(C) Transportation.
‘‘(2) EQUAL
BENEFIT
AND
BURDEN.—Each
agreement entered into pursuant to the authority
provided in paragraph (1) shall confer a benefit
upon the Bureau school commensurate with the bur-
den assumed, though this requirement shall not be
construed so as to require equal expenditures or an
exchange of similar services.
‘‘(g) 
PRODUCT
OR
RESULT
OF
STUDENT
PROJECTS.—Notwithstanding any other provision of law,
where there is agreement on action between the super-
intendent and the school board of a Bureau funded school,
585
the product or result of a project conducted in whole or
in major part by a student may be given to that student
upon the completion of such project.
‘‘(h) NOT
CONSIDERED
FEDERAL
FUNDS
FOR
MATCHING REQUIREMENTS.—Notwithstanding any other
provision of law, funds received by a Bureau funded school
under this part shall not be considered Federal funds for
the purposes of meeting a matching funds requirement for
any Federal program.
‘‘SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDU-
CATION.
‘‘(a) FACILITATION OF INDIAN CONTROL.—It shall
be the policy of the Secretary and the Bureau, in carrying
out the functions of the Bureau, to facilitate tribal control
of Indian affairs in all matters relating to education.
‘‘(b) CONSULTATION WITH TRIBES.—
‘‘(1) IN GENERAL.—All actions under this Act
shall be done with active consultation with tribes.
‘‘(2) REQUIREMENTS.—The consultation re-
quired under paragraph (1) means a process involv-
ing the open discussion and joint deliberation of all
options with respect to potential issues or changes
between the Bureau and all interested parties. Dur-
ing such discussions and joint deliberations, inter-
ested parties (including tribes and school officials)
586
shall be given an opportunity to present issues in-
cluding proposals regarding changes in current prac-
tices or programs which will be considered for future
action by the Bureau. All interested parties shall be
given an opportunity to participate and discuss the
options presented or to present alternatives, with the
views and concerns of the interested parties given ef-
fect unless the Secretary determines, from informa-
tion available from or presented by the interested
parties during one or more of the discussions and
deliberations, that there is a substantial reason for
another course of action. The Secretary shall submit
to any Member of Congress, within 18 days of the
receipt of a written request by such Member, a writ-
ten explanation of any decision made by the Sec-
retary which is not consistent with the views of the
interested parties.
‘‘SEC. 1132. INDIAN EDUCATION PERSONNEL.
‘‘(a) IN GENERAL.—Chapter 51, subchapter III of
chapter 53, and chapter 63 of title 5, United States Code,
relating to classification, pay and leave, respectively, and
the sections of such title relating to the appointment, pro-
motion, hours of work, and removal of civil service employ-
ees, shall not apply to educators or to education positions
(as defined in subsection (p)).
587
‘‘(b) REGULATIONS.—Not later than 60 days after
the date of the enactment of the No Child Left Behind
Act of 2001, the Secretary shall prescribe regulations to
carry out this section. Such regulations shall include—
‘‘(1) the establishment of education positions;
‘‘(2) the establishment of qualifications for edu-
cators and education personnel;
‘‘(3) the fixing of basic compensation for edu-
cators and education positions;
‘‘(4) the appointment of educators;
‘‘(5) the discharge of educators;
‘‘(6) the entitlement of educators to compensa-
tion;
‘‘(7) the payment of compensation to educators;
‘‘(8) the conditions of employment of educators;
‘‘(9) the leave system for educators;
‘‘(10) the annual leave and sick leave for edu-
cators; and
‘‘(11) such matters as may be appropriate.
‘‘(c) QUALIFICATIONS OF EDUCATORS.—
‘‘(1) REQUIREMENTS.—In prescribing regula-
tions to govern the qualifications of educators, the
Secretary shall require—
‘‘(A)(i) that lists of qualified and inter-
viewed applicants for education positions be
589
‘‘(C) that it shall not be a prerequisite to
the employment of an individual in an edu-
cation position at the local level that such indi-
vidual’s name appear on the national list main-
tained pursuant to subparagraph (A)(ii) or that
such individual has applied at the national level
for an education position.
‘‘(2) EXCEPTION FOR CERTAIN TEMPORARY EM-
PLOYMENT.—The Secretary may authorize the tem-
porary employment in an education position of an
individual who has not met the certification stand-
ards established pursuant to regulations, if the Sec-
retary determines that failure to do so would result
in that position remaining vacant.
‘‘(d) HIRING OF EDUCATORS.—
‘‘(1) REQUIREMENTS.—In prescribing regula-
tions to govern the appointment of educators, the
Secretary shall require—
‘‘(A)(i) that educators employed in a Bu-
reau operated school (other than the supervisor
of the school) shall be hired by the supervisor
of the school. In cases where there are no quali-
fied applicants available, such supervisor may
consult the national list maintained pursuant to
subsection (c)(1)(A)(ii);
590
‘‘(ii) each school supervisor shall be hired
by the education line officer of the agency office
of the Bureau in which the school is located;
‘‘(iii) educators employed in an agency of-
fice of the Bureau shall be hired by the super-
intendent for education of the agency office;
and
‘‘(iv) each education line officer and edu-
cators employed in the Office of the Director of
Indian Education Programs shall be hired by
the Director;
‘‘(B) that before an individual is employed
in an education position in a school by the su-
pervisor of a school (or with respect to the posi-
tion of supervisor, by the appropriate agency
education line officer), the local school board
for the school shall be consulted. A determina-
tion by such school board that such individual
should or should not be so employed shall be in-
stituted by the supervisor (or with respect to
the position of supervisor, by the agency super-
intendent for education);
‘‘(C) that before an individual may be em-
ployed in an education position at the agency
level, the appropriate agency school board shall
591
be consulted, and that a determination by such
school board that such individual should or
should not be employed shall be instituted by
the agency superintendent for education; and
‘‘(D) that before an individual may be em-
ployed in an education position in the Office of
the Director (other than the position of Direc-
tor), the national school boards representing all
Bureau schools shall be consulted.
‘‘(2) INFORMATION
REGARDING
APPLICATION
AT NATIONAL LEVEL.—Any individual who applies
at the local level for an education position shall state
on such individual’s application whether or not such
individual has applied at the national level for an
education position in the Bureau. If such individual
is employed at the local level, such individual’s name
shall be immediately forwarded to the Secretary,
who shall, as soon as practicable but in no event in
more than 30 days, ascertain the accuracy of the
statement made by such individual pursuant to the
first sentence of this paragraph. Notwithstanding
subsection (e), if the individual’s statement is found
to have been false, such individual, at the Sec-
retary’s discretion, may be disciplined or discharged.
If the individual has applied at the national level for
592
an education position in the Bureau, the appoint-
ment of such individual at the local level shall be
conditional for a period of 90 days, during which pe-
riod the Secretary may appoint a more qualified in-
dividual (as determined by the Secretary) from the
list maintained at the national level pursuant to sub-
section (c)(1)(A)(ii) to the position to which such in-
dividual was appointed.
‘‘(3) STATUTORY
CONSTRUCTION.—Except as
expressly provided, nothing in this section shall be
construed as conferring upon local school boards au-
thority over, or control of, educators at Bureau
funded schools or the authority to issue management
decisions.
‘‘(e) DISCHARGE AND CONDITIONS OF EMPLOYMENT
OF EDUCATORS.—
‘‘(1) REGULATIONS.—In prescribing regulations
to govern the discharge and conditions of employ-
ment of educators, the Secretary shall require—
‘‘(A) that procedures be established for the
rapid and equitable resolution of grievances of
educators;
‘‘(B) that no educator may be discharged
without notice of the reasons therefore and op-
portunity for a hearing under procedures that
593
comport with the requirements of due process;
and
‘‘(C) that educators employed in Bureau
schools be notified 30 days prior to the end of
the school year whether their employment con-
tract will be renewed for the following year.
‘‘(2) PROCEDURES FOR DISCHARGE.—The su-
pervisor of a Bureau school may discharge (subject
to procedures established under paragraph (1)(B))
for cause (as determined under regulations pre-
scribed by the Secretary) any educator employed in
such school. Upon giving notice of proposed dis-
charge to an educator, the supervisor involved shall
immediately notify the local school board for the
school of such action. A determination by the local
school board that such educator shall not be dis-
charged shall be followed by the supervisor. The su-
pervisor shall have the right to appeal such action
to the education line officer of the appropriate agen-
cy office of the Bureau. Upon such an appeal, the
agency education line officer may, for good cause
and in writing to the local school board, overturn the
determination of the local school board with respect
to the employment of such individual.
594
‘‘(3) RECOMMENDATIONS OF SCHOOL BOARDS
FOR DISCHARGE.—Each local school board for a Bu-
reau school shall have the right—
‘‘(A) to recommend to the supervisor of
such school that an educator employed in the
school be discharged; and
‘‘(B) to recommend to the education line
officer of the appropriate agency office of the
Bureau and to the Director of the Office, that
the supervisor of the school be discharged.
‘‘(f) 
APPLICABILITY
OF
INDIAN
PREFERENCE
LAWS.—
‘‘(1) IN GENERAL.—Notwithstanding any provi-
sion of the Indian preference laws, such laws shall
not apply in the case of any personnel action under
this section respecting an applicant or employee not
entitled to Indian preference if each tribal organiza-
tion concerned grants a written waiver of the appli-
cation of such laws with respect to such personnel
action and states that such waiver is necessary. This
paragraph shall not relieve the Bureau’s responsi-
bility to issue timely and adequate announcements
and advertisements concerning any such personnel
action if such action is intended to fill a vacancy (no
matter how such vacancy is created).
936
programs under subpart 1 of part B of title III, and
the education for homeless children and youth pro-
gram under subtitle B of title VII of the Stewart B.
McKinney Homeless Assistance Act, the amounts al-
lotted to the Department of the Interior under those
programs.
‘‘(2) AGREEMENT.—(A) The Secretary and the
Secretary of the Interior shall enter into an agree-
ment, consistent with the requirements of the pro-
grams specified in paragraph (1), for the distribu-
tion and use of those program funds under terms
that the Secretary determines best meet the pur-
poses of those programs.
‘‘(B) The agreement shall—
‘‘(i) set forth the plans of the Secretary of
the Interior for the use of the amount trans-
ferred and the performance measures to assess
program effectiveness, including measurable
goals and objectives; and
‘‘(ii) be developed in consultation with In-
dian tribes.
‘‘(b) ADMINISTRATION.—The Department of the In-
terior may use not more than 1.5 percent of the funds
consolidated under this section for such department’s