H. R. 6—474
be established by the school boards through their regional or
national organizations.
‘‘(B) For each year in which the Secretary uses a weighted
unit formula established under subsection (a) to fund Bureau
schools, a Bureau school which generates less than 168 weighted
units shall receive an additional 2 weighted units to defray school
board activities.
‘‘(C) From the funds allotted in accordance with the formula
established under subsection (a) for each Bureau school, the local
school board of such school may reserve an amount which does
not exceed the greater of—
‘‘(i) $5,000, or
‘‘(ii) the lesser of—
‘‘(I) $15,000, or
‘‘(II) 1 percent of such allotted funds,
for school board activities for such school, including and notwith-
standing any other provision of law, meeting expenses and the
cost of membership in, and support of, organizations engaged in
activities on behalf of Indian education.
‘‘(3) The Secretary shall adjust the formula established under
subsection (a) to use a weighted unit of 2.0 for each eligible Indian
student that—
‘‘(A) is gifted and talented, and
‘‘(B) is enrolled in the school on a full-time basis,
in considering the number of eligible Indian students served by
the school.
‘‘(4)(A) The Secretary shall adjust the formula established under
subsection (a) to use a weighted unit of 0.25 for each eligible
Indian student who is enrolled in a year-long credit course in
an Indian or Native language as part of the regular curriculum
of a school, in considering the number of eligible Indian students
served by such school.
‘‘(B) The adjustment required under subparagraph (A) shall
be used for such school after—
‘‘(i) the certification of the Indian or Native language
curriculum by the school board of such school to the Secretary,
together with an estimate of the number of full-time students
expected to be enrolled in the curriculum in the second school
year following the school year for which the certification is
made; and
‘‘(ii) the funds appropriated for allotment under this section
are designated by the appropriations Act appropriating such
funds as the amount necessary to implement such adjustment
at such school without reducing allotments made under this
section to any school by virtue of such adjustment.
‘‘(d) The Secretary shall reserve from the funds available for
distribution for each fiscal year under this section an amount which,
in the aggregate, shall equal 1 percent of the funds available
for such purpose for that fiscal year. Such funds shall be used,
at the discretion of the Director of the Office, to meet emergencies
and unforeseen contingencies affecting the education programs
funded under this section. Funds reserved under this subsection
may only be expended for education services or programs at a
schoolsite (as defined in section 5204(c)(2) of the Tribally Controlled
Schools Act of 1988). Funds reserved under this subsection shall
remain available without fiscal year limitation until expended. How-
ever, the aggregate amount available from all fiscal years may
H. R. 6—475
not exceed 1 percent of the current year funds. Whenever the
Secretary makes funds available under this subsection, the Sec-
retary shall report such action to the appropriate committees of
Congress within the annual budget submission.
‘‘(e) Supplemental appropriations enacted to meet increased
pay costs attributable to school level personnel shall be distributed
under this section.
‘‘(f) For the purpose of this section, the term ‘eligible Indian
student’ means a student who—
‘‘(1) is a member of or is at least a 1⁄4 degree Indian
blood descendant of a member of an Indian tribe which is
eligible for the special programs and services provided by the
United States through the Bureau to Indians because of their
status as Indians, and
‘‘(2) resides on or near an Indian reservation or meets
the criteria for attendance at a Bureau off-reservation boarding
school.
‘‘(g)(1) An eligible Indian student may not be charged tuition
for attendance at a Bureau school or contract or grant school.
A student attending a Bureau school under paragraph (2)(C) may
not be charged tuition.
‘‘(2) The Secretary may permit the attendance at a Bureau
school of a student who is not an eligible Indian student if—
‘‘(A) the Secretary determines that the student’s attendance
will not adversely affect the school’s program for eligible Indian
students because of cost, overcrowding, or violation of stand-
ards,
‘‘(B) the school board consents,
‘‘(C) the student is a dependent of a Bureau, Indian Health
Service, or tribal government, employee who lives on or near
the school site, or
‘‘(D) a tuition is paid for the student that is not more
than that charged by the nearest public school district for
out-of-district students, is in addition to the school’s allocation
under this section.
‘‘(3) The school board of a contract or grant school may permit
students who are not eligible Indian students under this subsection
to attend its contract school or grant school and any tuition collected
for those students is in addition to funding under this section.
‘‘(h) Notwithstanding any other provision of law, at the election
of the school board of a Bureau school made at any time during
the fiscal year, a portion equal to not more than 15 percent of
the funds allocated with respect to a school under this section
for any fiscal year shall remain available to the school for expendi-
ture without fiscal year limitation. The Assistant Secretary shall
take steps as may be necessary to implement this provision imme-
diately.
‘‘(i) Beginning with academic year 1994–1995, tuition for the
out-of-State students boarding at the Richfield Dormitory in Rich-
field, Utah, who attend Sevier County high schools in Richfield,
Utah, shall be paid from the Indian school equalization program
funds authorized in this section and section 1130 at a rate not
to exceed the amount per weighted student unit for that year
for the instruction of such students. No additional administrative
cost funds shall be added to the grant.
H. R. 6—476
‘‘SEC. 1128. ADMINISTRATIVE COST GRANTS.
‘‘(a)(1) The Secretary shall, subject to the availability of appro-
priated funds, provide grants to each tribe or tribal organization
operating a contract school or grant school in the amount deter-
mined under this section with respect to the tribe or tribal organiza-
tion for the purpose of paying the administrative and indirect
costs incurred in operating contract or grant schools in order to—
‘‘(A) enable tribes and tribal organizations operating such
schools, without reducing direct program services to the bene-
ficiaries of the program, to provide all related administrative
overhead services and operations necessary to meet the require-
ments of law and prudent management practice, and
‘‘(B) carry out other necessary support functions which
would otherwise be provided by the Secretary or other Federal
officers or employees, from resources other than direct program
funds, in support of comparable Bureau operated programs.
‘‘(2) Amounts appropriated to fund the grants provided under
this section shall be in addition to, and shall not reduce, the
amounts appropriated for the program being administered by the
contract or grant school.
‘‘(b)(1) The amount of the grant provided to each tribe or
tribal organization under this section for each fiscal year shall
be determined by applying the administrative cost percentage rate
of the tribe or tribal organization to the aggregate of the Bureau
elementary and secondary functions operated by the tribe or tribal
organization for which funds are received from or through the
Bureau. The administrative cost percentage rate determined under
subsection (c) does not apply to other programs operated by the
tribe or tribal organization.
‘‘(2) The Secretary shall—
‘‘(A) reduce the amount of the grant determined under
paragraph (1) to the extent that payments for administrative
costs are actually received by an Indian tribe or tribal organiza-
tion under any Federal education program included in the
direct cost base of the tribe or tribal organization, and
‘‘(B) take such actions as may be necessary to be reimbursed
by any other department or agency of the Federal Government
for the portion of grants made under this section for the costs
of administering any program for Indians that is funded by
appropriations made to such other department or agency.
‘‘(c)(1) For purposes of this section, the administrative cost
percentage rate for a contract or grant school for a fiscal year
is equal to the percentage determined by dividing—
‘‘(A) the sum of—
‘‘(i) the amount equal to—
‘‘(I) the direct cost base of the tribe or tribal
organization for the fiscal year, multiplied by
‘‘(II) the minimum base rate, plus
‘‘(ii) the amount equal to—
‘‘(I) the standard direct cost base, multiplied by
‘‘(II) the maximum base rate, by
‘‘(B) the sum of—
‘‘(i) the direct cost base of the tribe or tribal organiza-
tion for the fiscal year, plus
‘‘(ii) the standard direct cost base.
‘‘(2) The administrative cost percentage rate shall be deter-
mined to the 1⁄100 of a decimal point.
H. R. 6—477
‘‘(d)(1)(A) Funds received by a tribe or contract or grant school
as grants under this section for tribal elementary or secondary
educational programs may be combined by the tribe or contract
or grant school into a single administrative cost account without
the necessity of maintaining separate funding source accounting.
‘‘(B) Indirect cost funds for programs at the school which share
common administrative services with tribal elementary or secondary
educational programs may be included in the administrative cost
account described in subparagraph (A).
‘‘(2) Funds received as grants under this section with respect
to tribal elementary or secondary education programs shall remain
available to the contract or grant school without fiscal year limita-
tion and without diminishing the amount of any grants otherwise
payable to the school under this section for any fiscal year beginning
after the fiscal year for which the grant is provided.
‘‘(3) Funds received as grants under this section for Bureau
funded programs operated by a tribe or tribal organization under
a contract or agreement shall not be taken into consideration for
purposes of indirect cost underrecovery and overrecovery determina-
tions by any Federal agency for any other funds, from whatever
source derived.
‘‘(4) In applying this section and section 105 of the Indian
Self-Determination and Education Assistance Act with respect to
an Indian tribe or tribal organization that—
‘‘(A) receives funds under this section for administrative
costs incurred in operating a contract or grant school or a
school operated under the Tribally Controlled Schools Act of
1988, and
‘‘(B) operates 1 or more other programs under a contract
or grant provided under the Indian Self-Determination and
Education Assistance Act,
the Secretary shall ensure that the Indian tribe or tribal organiza-
tion is provided with the full amount of the administrative costs,
and of the indirect costs, that are associated with operating the
contract or grant school, a school operated under the Tribally Con-
trolled Schools Act of 1988, and all of such other programs, except
that funds appropriated for implementation of this section shall
be used only to supply the amount of the grant required to be
provided by this section.
‘‘(e) For purposes of this section:
‘‘(1)(A) The term ‘administrative cost’ means the costs of
necessary administrative functions which—
‘‘(i) the tribe or tribal organization incurs as a result
of operating a tribal elementary or secondary educational
program,
‘‘(ii) are not customarily paid by comparable Bureau
operated programs out of direct program funds, and
‘‘(iii) are either—
‘‘(I) normally provided for comparable Bureau pro-
grams by Federal officials using resources other than
Bureau direct program funds, or
‘‘(II) are otherwise required of tribal self-deter-
mination program operators by law or prudent manage-
ment practice.
‘‘(B) The term ‘administrative cost’ may include—
‘‘(i) contract or grant (or other agreement) administra-
tion;
H. R. 6—478
‘‘(ii) executive, policy, and corporate leadership and
decisionmaking;
‘‘(iii) program planning, development, and manage-
ment;
‘‘(iv) fiscal, personnel, property, and procurement
management;
‘‘(v) related office services and record keeping; and
‘‘(vi) costs of necessary insurance, auditing, legal, safety
and security services.
‘‘(2) The term ‘Bureau elementary and secondary functions’
means—
‘‘(A) all functions funded at Bureau schools by the
Office;
‘‘(B) all programs—
‘‘(i) funds for which are appropriated to other agen-
cies of the Federal Government, and
‘‘(ii) which are administered for the benefit of
Indians through Bureau schools; and
‘‘(C) all operation, maintenance, and repair funds for
facilities and government quarters used in the operation
or support of elementary and secondary education functions
for the benefit of Indians, from whatever source derived.
‘‘(3)(A) Except as otherwise provided in this subparagraph
(B), the direct cost base of a tribe or tribal organization for
the fiscal year is the aggregate direct cost program funding
for all tribal elementary or secondary educational programs
operated by the tribe or tribal organization during—
‘‘(i) the second fiscal year preceding such fiscal year,
or
‘‘(ii) if such programs have not been operated by the
tribe or tribal organization during the 2 preceding fiscal
years, the first fiscal year preceding such fiscal year.
‘‘(B) In the case of Bureau elementary or secondary edu-
cation functions which have not previously been operated by
a tribe or tribal organization under contract, grant, or agree-
ment with the Bureau, the direct cost base for the initial
year shall be the projected aggregate direct cost program fund-
ing for all Bureau elementary and secondary functions to be
operated by the tribe or tribal organization during that fiscal
year.
‘‘(4) The term ‘maximum base rate’ means 50 percent.
‘‘(5) The term ‘minimum base rate’ means 11 percent.
‘‘(6) The term ‘standard direct cost base’ means $600,000.
‘‘(7) The term ‘tribal elementary or secondary educational
programs’ means all Bureau elementary and secondary func-
tions, together with any other Bureau programs or portions
of programs (excluding funds for social services that are appro-
priated to agencies other than the Bureau and are expended
through the Bureau, funds for major subcontracts, construction,
and other major capital expenditures, and unexpended funds
carried over from prior years) which share common administra-
tive cost functions, that are operated directly by a tribe or
tribal organization under a contract, grant, or agreement with
the Bureau.
‘‘(f)(1) Upon the date of enactment of the Indian Education
Amendments of 1988, the Secretary shall—
H. R. 6—479
‘‘(A) conduct such studies as may be needed to establish
an empirical basis for determining relevant factors substan-
tially affecting the required administrative costs of tribal
elementary and secondary educational programs, using the for-
mula set forth in subsection (c), and
‘‘(B) conduct a study to determine—
‘‘(i) a maximum base rate which ensures that the
amount of the grants provided under this section will pro-
vide adequate (but not excessive) funding of the administra-
tive costs of the smallest tribal elementary or secondary
educational programs,
‘‘(ii) a minimum base rate which ensures that the
amount of the grants provided under this section will pro-
vide adequate (but not excessive) funding of the administra-
tive costs of the largest tribal elementary or secondary
educational programs, and
‘‘(iii) a standard direct cost base which is the aggregate
direct cost funding level for which the percentage deter-
mined under subsection (c) will—
‘‘(I) be equal to the median between the maximum
base rate and the minimum base rate, and
‘‘(II) ensure that the amount of the grants provided
under this section will provide adequate (but not exces-
sive) funding of the administrative costs of tribal
elementary or secondary educational programs closest
to the size of the program.
‘‘(2) The studies required under paragraph (1) shall—
‘‘(A) be conducted in full consultation (in accordance with
section 1131) with—
‘‘(i) the tribes and tribal organizations that are affected
by the application of the formula set forth in subsection
(c), and
‘‘(ii) all national and regional Indian organizations of
which such tribes and tribal organizations are typically
members;
‘‘(B) be conducted onsite with a representative statistical
sample of the tribal elementary or secondary educational pro-
grams under a contract entered into with a nationally reputable
public accounting and business consulting firm;
‘‘(C) take into account the availability of skilled labor,
commodities, business and automatic data processing services,
related Indian preference and Indian control of education
requirements, and any other market factors found substantially
to affect the administrative costs and efficiency of each such
tribal elementary or secondary educational program studied
in order to assure that all required administrative activities
can reasonably be delivered in a cost effective manner for
each such program, given an administrative cost allowance
generated by the values, percentages, or other factors found
in the studies to be relevant in such formula;
‘‘(D) identify, and quantify in terms of percentages of direct
program costs, any general factors arising from geographic
isolation, or numbers of programs administered, independent
of program size factors used to compute a base administrative
cost percentage in such formula; and
‘‘(E) identify any other incremental cost factors substan-
tially affecting the costs of required administrative cost func-
H. R. 6—480
tions at any of the tribal elementary or secondary educational
programs studied and determine whether the factors are of
general applicability to other such programs, and (if so) how
the factors may effectively be incorporated into such formula.
‘‘(3) In carrying out the studies required under this subsection,
the Secretary shall obtain the input of, and afford an opportunity
to participate to, the Inspector General of the Department of the
Interior.
‘‘(4) Determinations described in paragraph (2)(C) shall be
based on what is pragmatically possible to do at each location
studied, given prudent management practice, irrespective of
whether required administrative services were actually or fully
delivered at these sites, or other services were delivered instead,
during the period of the study.
‘‘(5) Upon completion of the studies conducted under paragraph
(1), but in no case later than October 1, 1989, the Secretary shall
submit to the Congress a report on the findings of the studies,
together with determinations based upon such findings that would
affect the definitions of terms used in the formula that is set
forth in subsection (c).
‘‘(6) The Secretary shall include in the Bureau’s justification
for each appropriations request for each fiscal year beginning after
fiscal year 1989, a projection of the overall costs associated with
the formula set forth in subsection (c) for all tribal elementary
or secondary educational programs which the Secretary expects
to be funded in the fiscal year for which the appropriations are
sought.
‘‘(7) For purposes of this subsection, the size of tribal elementary
or secondary educational programs is determined by the aggregate
direct cost program funding level for all Bureau funded programs
which share common administrative cost functions.
‘‘(g)(1) There are authorized to be appropriated for each fiscal
year such sums as may be necessary to carry out this section.
‘‘(2) If the total amount of funds necessary to provide grants
to tribes and tribal organizations in the amounts determined under
subsection (b) for a fiscal year exceeds the amount of funds appro-
priated to carry out this section for such fiscal year, the Secretary
shall reduce the amount of each grant determined under subsection
(b) for such fiscal year by an amount that bears the same relation-
ship to such excess as the amount of such grant determined under
subsection (b) bears to the total of all grants determined under
subsection (b) for all tribes and tribal organizations for such fiscal
year.
‘‘(h)(1) Notwithstanding any other provision of this section,
the amount of the grants provided under this section for fiscal
year 1989 shall—
‘‘(A) in lieu of being determined under subsection (b), be
determined for each tribal elementary or secondary educational
program on the same basis that indirect costs were determined
for such programs for fiscal year 1988, and
‘‘(B) be subject to the provisions of subsection (d).
‘‘(2) Notwithstanding any other provision of this section, the
amount of the grant provided under this section for fiscal year
1990 with respect to each tribal elementary and secondary edu-
cational program that was operated by a tribe or tribal organization
in fiscal year 1989 shall be equal to—
H. R. 6—481
‘‘(A) if the amount of the grant determined under subsection
(b) for fiscal year 1990 with respect to such program exceeds
the amount received by the tribe or tribal organization with
respect to such program for administrative costs for fiscal year
1988 (or fiscal year 1989 if such program was not operated
by the tribe or tribal organization during fiscal year 1988),
the sum of—
‘‘(i) such amount received, plus
‘‘(ii) 1⁄3 of the excess of—
‘‘(I) such amount determined under subsection (b),
over
‘‘(II) such amount received, or
‘‘(B) if such amount received exceeds such amount deter-
mined under subsection (b), the excess of—
‘‘(i) such amount received, over
‘‘(ii) an amount equal to 1⁄3 of the excess of—
‘‘(I) such amount received, over
‘‘(II) such amount determined under subsection (b).
‘‘(3) Notwithstanding any other provision of this section, the
amount of the grants provided under this section for fiscal year
1991 with respect to each tribal elementary and secondary edu-
cational program that was operated by a tribe or tribal organization
in fiscal year 1989 shall be equal to—
‘‘(A) if the amount of the grant determined under subsection
(b) for fiscal year 1991 with respect to such program exceeds
the amount received by the tribe or tribal organization with
respect to such program for administrative costs for fiscal year
1990, the sum of—
‘‘(i) such amount received, plus
‘‘(ii) 1⁄2 of the excess of—
‘‘(I) such amount determined under subsection (b),
over
‘‘(II) such amount received, or
‘‘(B) if such amount received exceeds such amount deter-
mined under subsection (b), the excess of—
‘‘(i) such amount received, over
‘‘(ii) an amount equal to 1⁄2 of the excess of—
‘‘(I) such amount received over,
‘‘(II) such amount determined under subsection (b).
‘‘(i) The provisions of this section shall also apply to those
schools operating under the Tribally Controlled Schools Act of 1988.
‘‘SEC. 1129. DIVISION OF BUDGET ANALYSIS.
‘‘(a) Within 24 months of the date of enactment of the Improving
America’s Schools Act of 1994, the Secretary shall establish within
the Office a Division of Budget Analysis (hereinafter referred to
as the ‘Division’). Such Division shall be under the direct supervision
and control of the Director of the Office.
‘‘(b) The Division shall have the capacity to conduct such
studies, surveys, or other activities as are necessary to gather
demographic information on Bureau-funded schools (current and
future) and project the amount necessary to provide Indian students
in such schools the educational program set forth in this part.
‘‘(c) The Division shall prepare projections on such amounts,
along with such other information as the Director of the Office
shall require, for each fiscal year beginning after October 1, 1996.
The Director of the Office and the Assistant Secretary for Indian
H. R. 6—482
Affairs shall use such reports when preparing their annual budget
submissions.
‘‘SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.
‘‘(a)(1) Within six months after the date of enactment of the
Improving America’s Schools Act of 1994, the Secretary shall estab-
lish, by regulation adopted in accordance with section 1139, a
system for the direct funding and support 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)(A) For the purpose of affording adequate notice of funding
available pursuant to the allotments made by section 1127, amounts
appropriated in an appropriation 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 appropriated without
further action by the Secretary, and shall remain available for
obligation through the succeeding fiscal year.
‘‘(B) The Secretary shall, on the basis of the amount appro-
priated in accordance with this paragraph—
‘‘(i) publish, on July 1 of the fiscal year for which the
funds are appropriated, allotments to each affected school made
under section 1127 of 85 percent of such appropriation; 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
actual student attendance.
‘‘(3)(A) Notwithstanding any law or regulation, the supervisor
of a Bureau school may expend an aggregate of not more than
$35,000 of the amount allotted the school under section 1127 to
acquire supplies and equipment for the school without competitive
bidding if—
‘‘(i) the cost for any single item purchased does not exceed
$10,000;
‘‘(ii) the school board approves the procurement;
‘‘(iii) the supervisor certifies that the cost is fair and reason-
able;
‘‘(iv) the documents relating to the procurement executed
by the supervisor or other school staff cite this paragraph
as authority for the procurement; and
‘‘(v) the transaction is documented in a journal maintained
at the school clearly identifying when the transaction occurred,
what was acquired and from whom, the prices paid, the quan-
tities acquired, and any other information the supervisor or
school board considers relevant.
‘‘(B) The Director shall be responsible for determining the
application of this paragraph, including 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) If a sequestration order issued under the Balanced 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 allotment under such section during the preceding fiscal year—
‘‘(A) the Secretary, notwithstanding any other law, may
use—
H. R. 6—483
‘‘(i) funds appropriated for the operation of any Bureau
school that is closed or consolidated, and
‘‘(ii) funds appropriated for any program that has been
curtailed at any Bureau school,
to fund allotments made under section 1127, and
‘‘(B) the Secretary may waive the application of the provi-
sions of section 1121(h) with respect to the closure or consolida-
tion of a school, or the curtailment of a program at a school,
during such fiscal year if the funds described 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.
‘‘(b) In the case of all Bureau schools, allotted funds shall
be expended on the basis of local financial plans which shall be
prepared by the local school supervisor in active consultation with
the local school board for each school, and the local school board
for each school shall have the authority to ratify, reject, or amend
such financial plan, and expenditures thereunder, and, on its own
determination or in response 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. The supervisor shall provide
the appropriate 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. The supervisor of the school may appeal
any such action of the local school board to the appropriate edu-
cation 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 review-
ing such written appeal and response, the appropriate education
line officer may, for good cause, overturn the action of the local
school board. The appropriate line education 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) Funds for self-determination grants under section 103(a)(2)
of the Indian Self-Determination and Education Assistance Act
shall not be used for providing technical assistance and training
in the field of education by the Bureau unless such services are
provided in accordance with a plan, agreed to by the tribe or
tribes affected and the Bureau, under which control of education
programs 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 the development of tribal codes of education from
funds appropriated pursuant to section 104(a) of such Act.
‘‘(d) 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 greatest extent pos-
sible, provide such services, and make appropriate provisions in
the budget of the Office for such services.
‘‘(e)(1) A financial plan under subsection (b) for a school may
include, at the discretion 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
H. R. 6—484
may include activities related to the prevention of alcohol and
substance abuse. The Assistant Secretary of Indian Affairs shall
provide for the utilization of any such school facility during any
summer in which such utilization is requested.
‘‘(2) Notwithstanding any other provision of law, funds author-
ized under the Act of April 16, 1934 (25 U.S.C. 452 et seq.) 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) The Assistant Secretary of 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 coordination of such programs
with any other summer programs that might benefit Indian youth,
regardless of the funding source or administrative entity of any
such program.
‘‘(f)(1) From funds allotted to a Bureau school under section
1127, the Secretary shall, if specifically requested by the tribal
governing body (within the meaning of section 1121(k)), implement
any cooperative agreement entered into between the tribe, 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 procurement and facilities
maintenance.
‘‘(C) Transportation.
‘‘(2) Each agreement entered into pursuant to the authority
provided in paragraph (1) shall confer a benefit upon the Bureau
school commensurate with the burden assumed, though this require-
ment shall not be construed so as to require equal expenditures
or an exchange of similar services.
‘‘(g) Notwithstanding any other provision of law, where there
is agreement on action between the superintendent and the school
board of a Bureau funded school, 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) Notwithstanding any other provision of law, funds received
by a Bureau funded school under this title shall not be considered
Federal funds for purposes of meeting a matching funds require-
ment in any Federal program.
‘‘SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.
‘‘(a) It shall be the policy of the Secretary and the Bureau,
in carrying out the functions of the Bureau, to facilitate Indian
control of Indian affairs in all matters relating to education.
‘‘(b)(1) All actions under this Act shall be done with active
consultation with tribes.
‘‘(2) The consultation required under paragraph (1) means a
process involving the open discussion and joint deliberation of all
options with respect to potential issues or changes between the
Bureau and all interested parties. During such discussions and
joint deliberations, interested parties (including tribes and school
H. R. 6—485
officials) shall be given an opportunity to present issues including
proposals regarding changes in current practices 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 other alternatives, with the
views and concerns of the interested parties given effect unless
the Secretary determines, from information educed or presented
by the interested parties during 1 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 written explanation of any decision made by the Secretary which
is not consistent with the views of the interested parties.
‘‘SEC. 1132. EDUCATION PERSONNEL.
‘‘(a)(1) 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, promotion, and removal of civil service employees,
shall not apply to educators or to education positions (as defined
in subsection (n)).
‘‘(2) Paragraph (1) shall take effect 1 year after the date of
enactment of this Act.
‘‘(b) Not later than the effective date of subsection (a)(2), the
Secretary shall prescribe regulations to carry out this section. Such
regulations shall govern—
‘‘(1) the establishment of education positions,
‘‘(2) the establishment of qualifications for educators,
‘‘(3) the fixing of basic compensation for educators and
education positions,
‘‘(4) the appointment of educators,
‘‘(5) the discharge of educators,
‘‘(6) the entitlement of educators to compensation,
‘‘(7) the payment of compensation to educators,
‘‘(8) the conditions of employment of educators,
‘‘(9) the length of the school year applicable to education
positions described in subsection (n)(1)(A),
‘‘(10) the leave system for educators, and
‘‘(11) such other matters as may be appropriate.
‘‘(c)(1) In prescribing regulations to govern the qualifications
of educators, the Secretary shall require—
‘‘(A)(i) that lists of qualified and interviewed applicants
for education positions be maintained in each agency and area
office of the Bureau from among individuals who have applied
at the agency or area level for an education position or who
have applied at the national level and have indicated in such
application an interest in working in certain areas or agencies;
and
‘‘(ii) that a list of qualified and interviewed applicants
for education positions be maintained in the Office from among
individuals who have applied at the national level for an edu-
cation position and who have expressed interest in working
in an education position anywhere in the United States;
‘‘(B) that a local school board shall have the authority
to waive on a case-by-case basis, any formal education or degree
qualifications established by regulation pursuant to subsection
(b)(2), in order for a tribal member to be hired in an education
H. R. 6—486
position to teach courses on tribal culture and language and
that subject to subsection (d)(2)(A), a determination by a school
board that such a person be hired shall be followed by the
supervisor; and
‘‘(C) that it shall not be a prerequisite to the employment
of an individual in an education position at the local level
that such individual’s name appear on the national list main-
tained pursuant to paragraph (1)(A)(ii) or that such individual
has applied at the national level for an education position.
‘‘(2) The Secretary may authorize the temporary employment
in an education position of an individual who has not met the
certification standards established pursuant to regulations, if the
Secretary determines that failure to do so would result in that
position remaining vacant.
‘‘(d)(1) In prescribing regulations to govern the appointment
of educators, the Secretary shall require—
‘‘(A)(i) that educators employed in a school (other than
the supervisor of the school) shall be hired by the supervisor
of the school unless there are no qualified applicants available,
in which case the vacant position shall be filled at the national
level from the list maintained pursuant to subsection
(c)(1)(A)(ii);
‘‘(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; and
‘‘(iii) educators employed in an agency office of the Bureau
shall be hired by the superintendent for education of the agency
office;
‘‘(B) that before an individual is employed in an education
position in a school by the supervisor of a school (or, with
respect to the position of supervisor, by the appropriate agency
education line officer), the local school board for the school
shall be consulted, and that subject to paragraph (2), a deter-
mination by the school board that such individual should or
should not be so employed shall be followed by the supervisor
(or with respect to the position of supervisor, by the agency
superintendent for education); and
‘‘(C) that before an individual may be employed in an
education position at the agency level, the appropriate agency
school board shall be consulted, and that, subject to paragraph
(3), a determination by such school board that such individual
should or should not be employed shall be followed by the
agency superintendent for education.
‘‘(2)(A) The supervisor of a school may appeal to the appropriate
agency education line officer any determination by the local school
board for the school that an individual be employed, or not be
employed, in an education position in the school (other than that
of supervisor) by filing a written statement describing the
determination and the reasons the supervisor believes such deter-
mination 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 reviewing such written appeal and response, the education
line officer may, for good cause, overturn the determination of
the local school board. The education line officer shall transmit
the determination of such appeal in the form of a written opinion
H. R. 6—487
to such board and to such supervisor identifying the reasons for
overturning such determination.
‘‘(B) The education line officer of an agency office of the Bureau
may appeal to the Director of the Office any determination by
the local school board for the school that an individual be employed,
or not be employed, as the supervisor of a school by filing a written
statement describing the determination and the reasons the super-
visor believes such determination 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 reviewing such written appeal and
response, the Director may, for good cause, overturn the determina-
tion of the local school board. The Director shall transmit the
determination of such appeal in the form of a written opinion
to such board and to such education line officer identifying the
reasons for overturning such determination.
‘‘(3) The education line officer of an agency office of the Bureau
may appeal to the Director of the Office any determination by
the agency school board that an individual be employed, or not
be employed, in an education position in such agency office by
filing a written statement describing the determination and the
reasons the supervisor believes such determination should be over-
turned. A copy of such statement shall be submitted to the agency
school board and such board shall be afforded an opportunity to
respond, in writing, to such appeal. After reviewing such written
appeal and response, the Director may, for good cause, overturn
the determination of the agency school board. The Director shall
transmit the determination of such appeal in the form of a written
opinion to such board and to such education line officer identifying
the reasons for overturning such determination.
‘‘(4) Any individual who applies at the local level for an edu-
cation 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 immediately be
forwarded to the Secretary, who shall, as soon as possible 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. If the individual’s statement is found to have
been false, such individual, at the Secretary’s discretion, may be
disciplined or discharged. If the individual had applied at the
national level for 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 period the Secretary may
appoint a more qualified individual (as determined by the Secretary)
from the list maintained at the national level pursuant to subsection
(c)(1)(A)(ii) to the position to which such individual was appointed.
‘‘(5) Except as expressly provided, nothing in this section shall
be construed as conferring upon local school boards, authority over,
or control of, educators.
‘‘(e)(1) In prescribing regulations to govern the discharge and
conditions of employment of educators, the Secretary shall require—
‘‘(A) that procedures be established for the rapid and equi-
table resolution of grievances of educators;
‘‘(B) that no educator may be discharged without notice
of the reasons therefore and opportunity for a hearing under
H. R. 6—488
procedures that comport with the requirements of due process;
and
‘‘(C) educators employed in Bureau schools shall be notified
60 days prior to the end of the school year whether their
employment contract will be renewed for the following year.
‘‘(2) The supervisor of a Bureau school may discharge (subject
to procedures established under paragraph (1)(B)) for cause (as
determined under regulations prescribed by the Secretary) any
educator employed in such school. Upon giving notice of proposed
discharge to an educator, the supervisor involved shall immediately
notify the local school board for the school of such action. A deter-
mination by the local school board that such educator shall not
be discharged shall be followed by the supervisor. The supervisor
shall have the right to appeal such action to the education line
officer of the appropriate agency 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.
‘‘(3) Each local school board for a Bureau 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)(1) Notwithstanding any provision of the Indian preference
laws, such laws shall not apply in the case of any personnel action
within the purview of this section respecting an applicant or
employee not entitled to Indian preference if each tribal organiza-
tion concerned grants, in writing, a waiver of the application of
such laws with respect to such personnel action, if such a waiver
is in writing deemed to be a necessity by the tribal organization,
except that this paragraph shall in no way relieve the Bureau
of the Bureau’s responsibility 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).
‘‘(2) For purposes of this subsection, the term ‘tribal organiza-
tion’ means—
‘‘(A) the recognized governing body of any Indian tribe,
band, nation, pueblo, or other organized community, including
a Native village (as defined in section 3(c) of the Alaska Native
Claims Settlement Act (43 U.S.C. 1602(c); 85 Stat. 688)); or
‘‘(B) in connection with any personnel action referred to
in this subsection, any local school board as defined in section
1146, and which has been delegated by such governing body
the authority to grant a waiver under such subsection with
respect to such personnel action.
‘‘(3) The term ‘Indian preference laws’ means section 12 of
the Act of June 18, 1934 (25 U.S.C. 472; 48 Stat. 986) or any
other provision of law granting a preference to Indians in pro-
motions and other personnel actions, except that such term shall
not be considered to include section 7(b) of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 450e(b)).
‘‘(g) Subject to the authority of the Office of Personnel Manage-
ment to determine finally the applicability of chapter 51 of title
H. R. 6—489
5, United States Code, to specific positions and employees in the
executive branch, the Secretary shall determine in accordance with
subsection (a)(1) the applicability or inapplicability of such chapter
to positions and employees in the Bureau.
‘‘(h)(1)(A) Except as otherwise provided in this section, the
Secretary shall fix the basic compensation or annual salary rate
for educators and education positions at rates comparable to the
rates in effect under the General Schedule for individuals with
comparable qualifications, and holding comparable positions, to
whom chapter 51 of title 5, United States Code, is applicable or
on the basis of the Federal Wage System schedule in effect for
the locality.
‘‘(B) By not later than October 28, 1988, the Secretary shall
establish, for contracts for the 1991–1992 academic year, and there-
after, the rates of basic compensation, or annual salary rates, for
the positions of teachers and counselors (including dormitory coun-
selors and home-living counselors) at the rates of basic compensa-
tion applicable (on the date of enactment of such amendments
and thereafter) to comparable positions in overseas schools under
the Defense Department Overseas Teachers Pay and Personnel
Practices Act, unless the Secretary establishes such rates within
such 6-month period through collective bargaining with the appro-
priate union representative of the education employees that is recog-
nized by the Bureau.
‘‘(C) By not later than October 28, 1988, the Secretary shall
establish the rates of basic compensation or annual salary rates
for the positions of teachers and counselors (including dormitory
and home-living counselors)—
‘‘(i) for contracts for the 1989–1990 academic year, at rates
which reflect 1⁄3 of the changes in the rates applicable to such
positions on April 28, 1988, that must be made to conform
the rates to the rates established under subparagraph (B) for
such positions for contracts for the 1991–1992 academic year,
and
‘‘(ii) for contracts for the 1990–1991 academic year, at
rates which reflect 2⁄3 of such changes.
‘‘(D) The establishment of rates of basic compensation and
annual salary rates by the Secretary under subparagraphs (B)
and (C) shall not preclude the use of regulations and procedures
used by the Bureau before the enactment of the Indian Education
Amendments of 1988 in making determinations regarding pro-
motions and advancements through levels of pay that are based
on the merit, education, experience, or tenure of the educator.
‘‘(E)(i) Except as provided in clause (ii), the establishment of
rates of basic compensation and annual salary rates by the Sec-
retary under subparagraphs (B) and (C) shall not affect the contin-
ued employment or compensation of an educator who was employed
in an education position on October 31, 1979, and who did not
make the election under paragraph (2) of subsection (o).
‘‘(ii) Any individual described in clause (i) may, during the
5-year period beginning on the date on which the Secretary estab-
lishes rates of basic compensation and annual salary rates under
subparagraph (B), make an irrevocable election to have the basic
compensation rate or annual salary rate of such individual deter-
mined in accordance with this paragraph.
‘‘(iii) If an individual makes the election described in clause
(ii), such election shall not affect the application to the individual
H. R. 6—490
of the same retirement system and leave system that applies to
the individual during the fiscal year preceding the fiscal year in
which such election is made, except that the individual must use
leave accrued during a contract period by the end of that contract
period.
‘‘(F) The President shall include with the budget submitted
under section 1105 of title 31, United States Code, for each of
the fiscal years 1990, 1991, and 1992 a written statement by the
Secretary which specifies—
‘‘(i) the amount of funds the Secretary needs to pay basic
compensation and the annual salaries of educators for such
fiscal year, and
‘‘(ii) the amount of funds the Secretary estimates would
be needed to pay basic compensation and the annual salaries
of educators for such fiscal year if the amendments made to
this paragraph by the Indian Education Amendments of 1988
had not been enacted.
‘‘(2) Each educator employed in an education position in Alaska
shall be paid a cost-of-living allowance equal to 25 percent of
the rate of basic compensation to which such educator is entitled.
‘‘(3)(A) The Secretary may pay a postdifferential not to exceed
25 percent of the rate of basic compensation, on the basis of condi-
tions of environment or work which warrant additional pay as
a recruitment and retention incentive.
‘‘(B)(i) Upon the request of the supervisor and the local school
board of a Bureau school, the Secretary shall grant the supervisor
of the school authorization to provide 1 or more post differentials
under subparagraph (A) unless the Secretary determines for clear
and convincing reasons (and advises the board in writing of those
reasons) that certain of the requested post differentials should
be disapproved or decreased because there is no disparity of com-
pensation for the involved employees or positions in the Bureau
school, as compared with the nearest public school, that is either—
‘‘(I) at least 5 percent, or
‘‘(II) less than 5 percent and affects the recruitment or
retention of employees at the school.
‘‘(ii) The request under clause (i) shall be deemed granted
as requested at the end of the 60th day after the request is received
in the Central Office of the Bureau unless before that time the
request is approved, approved with modification, or disapproved
by the Secretary.
‘‘(iii) The Secretary or the supervisor of a Bureau school may
discontinue or decrease a post differential authorized by reason
of this subparagraph at the beginning of a school year after either—
‘‘(I) the local school board requests that such differential
be discontinued or decreased, or
‘‘(II) the Secretary or the supervisor determines for clear
and convincing reasons (and advises the board in writing of
those reasons) that there is no disparity of compensation that
would affect the recruitment or retention of employees at the
school after the differential is discontinued or decreased.
‘‘(iv) On or before February 1 of each year, the Secretary shall
submit to Congress a report describing the requests and grants
of authority under this subparagraph during the previous fiscal
year and listing the positions contracted under those grants of
authority.
‘‘(i) Any individual—
H. R. 6—491
‘‘(1) who on the date of enactment of this Act is holding
a position which is determined under subsection (f) to be an
education position and who elects under subsection (o)(2) to
be covered under the provisions of this section, or
‘‘(2) who is an employee of the Federal Government or
the municipal government of the District of Columbia and
is transferred, promoted, or reappointed, without break in serv-
ice, from a position under a different leave system to an edu-
cation position,
shall be credited for the purpose of the leave system provided
under regulations prescribed pursuant to subsection (b)(10), with
the annual and sick leave to such individual’s credit immediately
before the effective date of such election, transfer, promotion, or
reappointment.
‘‘(j) Upon termination of employment with the Bureau, any
annual leave remaining to the credit of an individual within the
purview of this section shall be liquidated in accordance with sec-
tions 5551(a) and 6306 of title 5, United States Code, except that
leave earned or accrued under regulations prescribed pursuant to
subsection (b)(10) shall not be so liquidated.
‘‘(k) In the case of any educator who is transferred, promoted,
or reappointed, without break in service, to a position in the Federal
Government under a different leave system, any remaining leave
to the credit of such person earned or credited under the regulations
prescribed pursuant to subsection (b)(10) shall be transferred to
such person’s credit in the employing agency on an adjusted basis
in accordance with regulations which shall be prescribed by the
Office of Personnel Management.
‘‘(l) An educator who voluntarily terminates employment with
the Bureau before the expiration of the existing employment con-
tract between such educator and the Bureau shall not be eligible
to be employed in another education position in the Bureau during
the remainder of the term of such contract.
‘‘(m) In the case of any educator employed in an education
position described in subsection (n)(1)(A) who—
‘‘(1) is employed at the close of a school year,
‘‘(2) agrees in writing to serve in such a position for the
next school year, and
‘‘(3) is employed in another position during the recess period
immediately preceding such next school year, or during such
recess period receives additional compensation referred to in
section 5533 of title 5, United States Code, relating to dual
compensation, shall not apply to such educator by reason of
any such employment during a recess period for any such
receipt of additional compensation.
‘‘(n) For the purpose of this section—
‘‘(1) The term ‘education position’ means a position in the
Bureau the duties and responsibilities of which—
‘‘(A) are performed on a school-year basis principally
in a Bureau school and involve—
‘‘(i) classroom or other instruction or the super-
vision or direction of classroom or other instruction;
‘‘(ii) any activity (other than teaching) which
requires academic credits in educational theory and
practice equal to the academic credits in educational
theory and practice required for a bachelor’s degree
H. R. 6—492
in education from an accredited institution of higher
education;
‘‘(iii) any activity in or related to the field of
education notwithstanding that academic credits in
educational theory and practice are not a formal
requirement for the conduct of such activity; or
‘‘(iv) support services at, or associated with, the
site of the school; or
‘‘(B) are performed at the agency level of the Bureau
and involve the implementation of education-related pro-
grams other than the position for agency superintendent
for education.
‘‘(2) The term ‘educator’ means an individual whose services
are required, or who is employed, in an education position.
‘‘(o)(1) Subsections (a) through (n) of this section apply to an
educator hired after November 1, 1979 (and to an educator who
elected application under paragraph (2)) and to the position in
which such individual is employed. Subject to paragraph (2), the
enactment of this Act shall not affect the continued employment
of an individual employed on October 31, 1979 in an education
position, or such individual’s right to receive the compensation
attached to such position.
‘‘(2) Any individual employed in an education position on Octo-
ber 31, 1979, may, not later than November 1, 1983, make an
irrevocable election to be covered under the provisions of subsections
(a) through (n) of this section.
‘‘(p)(1) An educator who was employed in an education position
on October 31, 1979, who was eligible to make an election under
paragraph (2) of subsection (o) at that time, and who did not
make the election under paragraph (2) of subsection (o), may not
be placed on furlough (within the meaning of section 7511(a)(5)
of title 5, United States Code) without the consent of such educator
for an aggregate of more than 4 weeks within the same calendar
year, unless—
‘‘(A) the supervisor, with the approval of the local school
board (or of the education line officer upon appeal under para-
graph (2)), of the Bureau school at which such educator provides
services determines that a longer period of furlough is necessary
due to an insufficient amount of funds available for personnel
compensation at such school, as determined under the financial
plan process as determined under section 1130(b) of this Act,
and
‘‘(B) all educators (other than principals and clerical
employees) providing services at such Bureau school are placed
on furloughs of equal length, except that the supervisor, with
the approval of the local school board (or of the agency education
line officer upon appeal under paragraph (2)), may continue
1 or more educators in pay status if—
‘‘(i) such educators are needed to operate summer pro-
grams, attend summer training sessions, or participate in
special 
activities 
including 
curriculum 
development
committees; and
‘‘(ii) such educators are selected based upon such edu-
cator’s qualifications, after public notice of the minimum
qualifications reasonably necessary and without discrimina-
tion as to supervisory, nonsupervisory, or other status of
the educators who apply.