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tent standards and challenging State student aca-
demic achievement standards as soon as possible, but
not later than after 3 consecutive years of attendance
in United States schools (excluding schools in Puerto
Rico), and to move into a classroom where instruction
is not tailored for limited English proficient children.
‘‘(c) SELECTION OF METHOD OF INSTRUCTION.—To
receive a subgrant from a State under this subpart, an eligi-
ble entity shall select one or more methods or forms of in-
struction to be used in the programs and activities under-
taken by the entity to assist limited English proficient chil-
dren to attain English proficiency and meet challenging
State academic content standards and challenging State
student academic achievement standards. Such selection
shall be consistent with sections 3134 and 3135.
‘‘(d) DURATION OF SUBGRANTS.—The duration of a
competitive subgrant made by a State under section 3109(c)
shall be determined by the State in its discretion.
‘‘(e) APPLICATIONS BY ELIGIBLE ENTITIES.—
‘‘(1) IN GENERAL.—To receive a subgrant from
a State under this subpart, an eligible entity shall
submit an application to the State at such time, in
such form, and containing such information as the
State may require.
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‘‘(2) REQUIRED DOCUMENTATION.—The applica-
tion shall—
‘‘(A) describe the programs and activities
proposed to be developed, implemented, and ad-
ministered under the subgrant;
‘‘(B) describe how the eligible entity will use
the subgrant funds to satisfy the requirement in
subsection (b)(2); and
‘‘(C) describe how the eligible entity, using
the disaggregated results of the student assess-
ments required under section 1111(b)(4) and
other measures available, will annually review
the progress of elementary and secondary schools
within its jurisdiction, or served by it, to deter-
mine if such schools are making the adequate
yearly progress necessary to ensure that limited
English proficient students attending the schools
will meet the State’s proficient level of perform-
ance on the State assessment described in section
1111(b)(4), and will hold such schools account-
able for making such progress.
‘‘(3) REQUIREMENTS FOR APPROVAL.—The ap-
plication shall contain assurances that—
‘‘(A) the eligible entity will use qualified
personnel who have appropriate training and
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professional credentials in teaching English to
children who are limited English proficient, and
who are proficient in English, including written
and oral communication skills;
‘‘(B) if the eligible entity includes one or
more local educational agencies, each such agen-
cy is complying with section 3103(b) prior to,
and throughout, each school year;
‘‘(C) the eligible entity annually will assess
the English proficiency of all children with lim-
ited English proficiency participating in pro-
grams funded under this subpart;
‘‘(D) the eligible entity has based its pro-
posal on scientifically based reading research
and sound research and theory on teaching lim-
ited English proficient children;
‘‘(E) the eligible entity has described in the
application how students enrolled in the pro-
grams and activities proposed in the application
will be proficient in English after 3 academic
years of enrollment;
‘‘(F) the eligible entity will ensure that pro-
grams will enable children to speak, read, write,
and comprehend the English language and meet
challenging State academic content standards
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and challenging State student academic achieve-
ment standards; and
‘‘(G) the eligible entity is not in violation
of any State law, including State constitutional
law, regarding the education of limited English
proficient children, consistent with sections 3134
and 3135.
‘‘(4) QUALITY.—For the purposes of awarding
competitive subgrants under section 3109(c), a State
shall consider the quality of each application and en-
sure that it is of sufficient size and scope to meet the
purposes of this subpart.
‘‘SEC. 3109. DISTRIBUTION OF SUBGRANTS TO ELIGIBLE EN-
TITIES.
‘‘(a) IN GENERAL.—A State shall expend at least 95
percent of its allotment under section 3105(c) each fiscal
year for the purpose of making subgrants to eligible entities
within the State that have approved applications, in ac-
cordance with subsections (b) and (c).
‘‘(b) FORMULA SUBGRANTS.—
‘‘(1) RESERVATION.—75 percent of the amount
expended by a State for subgrants under this subpart
shall be reserved for subgrants to eligible entities de-
scribed in subsection (a) in which, during the fiscal
year for which the subgrant is to be made, the number
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of limited English proficient children and youth who
are enrolled in public and nonpublic elementary or
secondary schools located in geographic areas under
the jurisdiction of, or served by, such entities is equal
to at least 500 students, or 3 percent of the total num-
ber of children and youth enrolled in such schools
during such fiscal year, whichever is less.
‘‘(2) ALLOTMENT.—From the amount reserved
under paragraph (1), the State shall allot to each eli-
gible entity described in such paragraph a percentage
based on the ratio of—
‘‘(A) the number of limited English pro-
ficient children and youth who are enrolled in
public and nonpublic elementary or secondary
schools located in geographic areas under the ju-
risdiction of, or served by, such entity during the
fiscal year for which the allotment is to be made;
to
‘‘(B) the number of such children and youth
in all such eligible entities.
‘‘(3) REALLOTMENT.—Whenever a State deter-
mines that an allotment made to an eligible entity
under this subsection for a fiscal year will not be used
by the entity for the purpose for which it was made,
the State shall, in accordance with such rules as it
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deems appropriate, reallot such amount, consistent
with paragraph (2), to other eligible entities in the
State for carrying out that purpose.
‘‘(c) COMPETITIVE SUBGRANTS.—25 percent of the
amount expended by a State for subgrants under this sub-
part shall be reserved for competitive subgrants to eligible
entities described in subsection (a) that the State
determines—
‘‘(1) have experienced significant increases, as
compared to the previous 2 years, in the percentage
or number of children and youth with limited English
proficiency, including recent immigrant children,
that have enrolled in public and nonpublic elemen-
tary or secondary schools in the geographic areas
under the jurisdiction of, or served by, such entities
during the fiscal year for which the subgrant is to be
made; or
‘‘(2) do not satisfy the requirements of subsection
(b)(1) but have significant needs for programs under
this subpart.
‘‘SEC. 3110. AUTHORIZATION OF APPROPRIATIONS.
‘‘For the purpose of carrying out this subpart, there
are authorized to be appropriated $750,000,000 for fiscal
year 2002 and such sums as may be necessary for each of
the 4 succeeding fiscal years.
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‘‘Subpart 2—Administration
‘‘SEC. 3121. EVALUATIONS.
‘‘(a) IN GENERAL.—Each eligible entity that receives
a subgrant from a State under subpart 1 shall provide the
State, at the conclusion of every second fiscal year during
which the subgrant is received, with an evaluation, in a
form prescribed by the State, of—
‘‘(1) the programs and activities conducted by
the entity with funds received under subpart 1 during
the 2 immediately preceding fiscal years;
‘‘(2) the progress made by students in learning
the English language and meeting challenging State
academic content standards and challenging State
student academic achievement standards;
‘‘(3) the number and percentage of students in
the programs and activities attaining English lan-
guage proficiency by the end of each school year, as
determined by a valid and reliable assessment of
English proficiency; and
‘‘(4) the progress made by students in meeting
challenging State academic content standards and
challenging State student academic achievement
standards for each of the 2 years after such students
are no longer receiving services under this part.
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•HR 1 RH1&2
‘‘(b) USE OF EVALUATION.—An evaluation provided
by an eligible entity under subsection (a) shall be used by
the entity and the State—
‘‘(1) for improvement of programs and activities;
‘‘(2) to determine the effectiveness of programs
and activities in assisting children who are limited
English proficient to attain English proficiency (as
measured consistent with subsection (d)) and meet
challenging State academic content standards and
challenging State student academic achievement
standards; and
‘‘(3) in determining whether or not to continue
funding for specific programs or projects.
‘‘(c) EVALUATION COMPONENTS.—An evaluation pro-
vided by an eligible entity under subsection (a) shall
include—
‘‘(1) an evaluation of whether students enrolling
in a program or activity conducted by the entity with
funds received under subpart 1—
‘‘(A) have attained English proficiency and
are meeting challenging State academic content
academic and challenging State student aca-
demic achievement standards; and
‘‘(B) have achieved a working knowledge of
the English language that is sufficient to permit
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them to perform, in English, in a classroom that
is not tailored to limited English proficient chil-
dren; and
‘‘(2) such other information as the State may re-
quire.
‘‘(d) EVALUATION MEASURES.—In prescribing the
form of an evaluation provided by an entity under sub-
section (a), a State shall approve evaluation measures, as
applicable, for use under subsection (c) that are designed
to assess—
‘‘(1) oral language proficiency in kindergarten;
‘‘(2) oral language proficiency, including speak-
ing and listening skills, in first grade;
‘‘(3) both oral language proficiency, including
speaking and listening skills, and reading and writ-
ing proficiency in grades 2 and higher; and
‘‘(4) attainment of challenging State student
academic achievement standards.
‘‘SEC. 3122. REPORTING REQUIREMENTS.
‘‘(a) STATES.—Based upon the evaluations provided
to a State under section 3121, each State that receives a
grant under subpart 1 shall prepare and submit every sec-
ond year to the Secretary a report on programs and activi-
ties undertaken by the State under such subpart and the
effectiveness of such programs and activities in improving
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the education provided to children who are limited English
proficient.
‘‘(b) SECRETARY.—Every second year, the Secretary
shall prepare and submit to the Committee on Education
and the Workforce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of
the Senate a report on—
‘‘(1) programs and activities undertaken by
States under subpart 1 and the effectiveness of such
programs and activities in improving the education
provided to children who are limited English pro-
ficient;
‘‘(2) the types of instructional programs used
under subpart 1 to teach limited English proficient
children;
‘‘(3) the number of programs or projects, if any,
that were terminated because they were not able to
reach program goals;
‘‘(4) the number of limited English proficient
children 
served 
under 
subpart 
who 
were
transitioned out of special instructional programs
funded under such subpart into classrooms where in-
struction is not tailored for limited English proficient
children; and
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‘‘(5) other information gathered from the reports
submitted under subsection (a).
‘‘SEC. 3123. COORDINATION WITH RELATED PROGRAMS.
‘‘In order to maximize Federal efforts aimed at serving
the educational needs of children and youth of limited
English proficiency, the Secretary shall coordinate and en-
sure close cooperation with other programs serving lan-
guage-minority and limited English proficient students
that are administered by the Department and other agen-
cies.
‘‘Subpart 3—General Provisions
‘‘SEC. 3131. DEFINITIONS.
‘‘For purposes of this part:
‘‘(1) CHILDREN AND YOUTH.—The term ‘children
and youth’ means individuals aged 3 through 21.
‘‘(2) COMMUNITY-BASED
ORGANIZATION.—The
term ‘community-based organization’ means a private
nonprofit organization of demonstrated effectiveness
or Indian tribe or tribally sanctioned educational au-
thority which is representative of a community or sig-
nificant segments of a community and which provides
educational or related services to individuals in the
community. Such term includes a Native Hawaiian
or Native American Pacific Islander native language
educational organization.
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‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means—
‘‘(A) one or more local educational agencies;
or
‘‘(B) one or more local educational agencies
in collaboration with an institution of higher
education, community-based organization, or
State educational agency.
‘‘(4) NATIVE HAWAIIAN OR NATIVE AMERICAN PA-
CIFIC ISLANDER NATIVE LANGUAGE EDUCATIONAL OR-
GANIZATION.—The term ‘Native Hawaiian or Native
American Pacific Islander native language edu-
cational organization’ means a nonprofit organiza-
tion with a majority of its governing board and em-
ployees consisting of fluent speakers of the traditional
Native American languages used in their educational
programs and with not less than 5 years successful
experience in providing educational services in tradi-
tional Native American languages.
‘‘(5) NATIVE LANGUAGE.—The term ‘native lan-
guage’, when used with reference to an individual
who is limited English proficient, means the language
normally used by such individual.
‘‘(6) SPECIALLY QUALIFIED AGENCY.—The term
‘specially qualified agency’, when used with respect to
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a fiscal year, means an eligible entity located in a
State that, for that year—
‘‘(A) does not submit to the Secretary an
application under sections 3105(a) and 3107; or
‘‘(B) submits an application (or any modi-
fication to an application) that the Secretary,
after reasonable notice and opportunity for a
hearing, determines does not satisfy the require-
ments of subpart 1.
‘‘(7) TRIBALLY SANCTIONED EDUCATIONAL AU-
THORITY.—The term ‘tribally sanctioned educational
authority’ means—
‘‘(A) any department or division of edu-
cation operating within the administrative
structure of the duly constituted governing body
of an Indian tribe; and
‘‘(B) any nonprofit institution or organiza-
tion that is—
‘‘(i) chartered by the governing body of
an Indian tribe to operate a school de-
scribed in section 3106(a) or otherwise to
oversee the delivery of educational services
to members of the tribe; and
‘‘(ii) approved by the Secretary for the
purpose of carrying out programs under
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subpart 1 for individuals served by a school
described in section 3106(a).
‘‘SEC. 3132. RULES OF CONSTRUCTION.
‘‘Nothing in subpart 1 shall be construed—
‘‘(1) to prohibit a local educational agency from
serving limited English proficient children and youth
simultaneously with students with similar edu-
cational needs, in the same educational settings where
appropriate;
‘‘(2) to require a State or a local educational
agency to establish, continue, or eliminate any par-
ticular type of instructional program for limited
English proficient children; or
‘‘(3) to limit the preservation or use of Native
American languages as defined in the Native Amer-
ican Languages Act of 1990.
‘‘SEC. 3133. LIMITATION ON FEDERAL REGULATIONS.
‘‘The Secretary shall issue regulations under this part
only to the extent that such regulations are necessary to
ensure compliance with the specific requirements of this
part.
‘‘SEC. 3134. LEGAL AUTHORITY UNDER STATE LAW.
‘‘Nothing in this part shall be construed to negate or
supersede State law, or the legal authority under State law
of any State agency, State entity, or State public official,
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over programs that are under the jurisdiction of the State
agency, entity, or official.
‘‘SEC. 3135. CIVIL RIGHTS.
‘‘Nothing in this part shall be construed in a manner
inconsistent with any Federal law guaranteeing a civil
right.
‘‘SEC. 3136. PROGRAMS FOR NATIVE AMERICANS AND PUER-
TO RICO.
‘‘Programs authorized under subpart 1 that serve Na-
tive American children, Native Pacific Island children, and
children in the Commonwealth of Puerto Rico, notwith-
standing any other provision of subpart 1, may include
programs of instruction, teacher training, curriculum devel-
opment, evaluation, and testing designed for Native Amer-
ican children learning and studying Native American lan-
guages and children of limited Spanish proficiency, except
that a primary outcome of programs serving such children
shall be increased English proficiency among such chil-
dren.’’.
SEC. 302. CONFORMING AMENDMENT TO DEPARTMENT OF
EDUCATION ORGANIZATION ACT.
(a) IN GENERAL.—
(1) RENAMING OF OFFICE.—The Department of
Education Organization Act is amended by striking
‘‘Office of Bilingual Education and Minority Lan-
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guages Affairs’’ each place such term appears in the
text and inserting ‘‘Office of Educational Services for
Limited English Proficient Children’’.
(2) CONFORMING AMENDMENT.—Section 209 of
the Department of Education Organization Act is
amended by striking ‘‘Director of Bilingual Edu-
cation and Minority Languages Affairs,’’ and insert-
ing ‘‘Director of Educational Services for Limited
English Proficient Children,’’.
(b) CLERICAL AMENDMENTS.—
(1) SECTION 209.—The section heading for sec-
tion 209 of the Department of Education Organiza-
tion Act is amended to read as follows:
‘‘OFFICE OF EDUCATIONAL SERVICES FOR LIMITED
ENGLISH PROFICIENT CHILDREN’’.
(2) SECTION 216.—The section heading for sec-
tion 216 of the Department of Education Organiza-
tion Act is amended to read as follows:
‘‘SEC. 216. OFFICE OF EDUCATIONAL SERVICES FOR LIM-
ITED ENGLISH PROFICIENT CHILDREN.’’.
(3) TABLE OF CONTENTS.—
(A) SECTION 209.—The table of contents of
the Department of Education Organization Act
is amended by amending the item relating to sec-
tion 209 to read as follows:
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‘‘Sec. 209. Office of Educational Services for Limited English Proficient Chil-
dren.’’.
(B) SECTION 216.—The table of contents of
the Department of Education Organization Act
is amended by amending the item relating to sec-
tion 216 to read as follows:
‘‘Sec. 216. Office of Educational Services for Limited English Proficient Chil-
dren.’’.
PART B—INDIAN AND ALASKA NATIVE
EDUCATION
SEC. 311. ELEMENTARY AND SECONDARY EDUCATION ACT
OF 1965.
(a) IN GENERAL.—Title III (as amended by section
301 of this Act) is further amended by adding at the end
the following new part:
‘‘PART B—INDIAN AND ALASKA NATIVE
EDUCATION
‘‘Subpart 1—Indian Education
‘‘SEC. 3201. FINDINGS.
‘‘Congress finds that—
‘‘(1) the Federal Government has a special re-
sponsibility to ensure that educational programs for
all American Indian and Alaska Native children and
adults—
‘‘(A) are based on high-quality, internation-
ally competitive academic content standards and
student academic achievement standards and
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•HR 1 RH1&2
build on Indian culture and the Indian commu-
nity;
‘‘(B) assist local educational agencies, In-
dian tribes, and other entities and individuals in
providing Indian students the opportunity to
achieve such standards; and
‘‘(C) meet the unique educational and cul-
turally related academic needs of American In-
dian and Alaska Native students;
‘‘(2) since the date of the enactment of the initial
Indian Education Act in 1972, the level of involve-
ment of Indian parents in the planning, development,
and implementation of educational programs that af-
fect such parents and their children has increased sig-
nificantly, and schools should continue to foster such
involvement;
‘‘(3) although the number of Indian teachers, ad-
ministrators, and university professors has increased
since 1972, teacher training programs are not recruit-
ing, training, or retraining a sufficient number of In-
dian individuals as educators to meet the needs of a
growing Indian student population in elementary,
secondary, vocational, adult, and higher education;
‘‘(4) the dropout rate for Indian students is un-
acceptably high; 9 percent of Indian students who
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were eighth graders in 1988 had dropped out of school
by 1990;
‘‘(5) during the period from 1980 to 1990, the
percentage of Indian individuals living at or below
the poverty level increased from 24 percent to 31 per-
cent, and the readiness of Indian children to learn is
hampered by the high incidence of poverty, unemploy-
ment, and health problems among Indian children
and their families; and
‘‘(6) research related specifically to the education
of Indian children and adults is very limited, and
much of the research is of poor quality or is focused
on limited local or regional issues.
‘‘SEC. 3202. PURPOSE.
‘‘(a) PURPOSE.—It is the purpose of this subpart to
support the efforts of local educational agencies, Indian
tribes and organizations, postsecondary institutions, and
other entities to meet the unique educational and culturally
related academic needs of American Indians and Alaska
Natives, so that such students can achieve to the same chal-
lenging State academic achievement standards expected of
all other students.
‘‘(b) PROGRAMS.—this subpart carries out the purpose
described in subsection (a) by authorizing programs of di-
rect assistance for—
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‘‘(1) meeting the unique educational and cul-
turally related academic needs of American Indians
and Alaska Natives;
‘‘(2) the education of Indian children and adults;
‘‘(3) the training of Indian persons as educators
and counselors, and in other professions serving In-
dian people; and
‘‘(4) research, evaluation, data collection, and
technical assistance.
‘‘CHAPTER 1—FORMULA GRANTS TO
LOCAL EDUCATIONAL AGENCIES
‘‘SEC. 3211. PURPOSE.
‘‘It is the purpose of this chapter to support local edu-
cational agencies in their efforts to reform elementary and
secondary school programs that serve Indian students in
order to ensure that such programs—
‘‘(1) are based on challenging State academic
content standards and State student academic
achievement standards that are used for all students;
and
‘‘(2) are designed to assist Indian students in
meeting those standards and assist the Nation in
reaching the National Education Goals.
‘‘SEC. 3212. GRANTS TO LOCAL EDUCATIONAL AGENCIES.
‘‘(a) IN GENERAL.—
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‘‘(1) ENROLLMENT
REQUIREMENTS.—A local
educational agency shall be eligible for a grant under
this chapter for any fiscal year if the number of In-
dian children eligible under section 3217 and who
were enrolled in the schools of the agency, and to
whom the agency provided free public education, dur-
ing the preceding fiscal year—
‘‘(A) was at least 10; or
‘‘(B) constituted not less than 25 percent of
the total number of individuals enrolled in the
schools of such agency.
‘‘(2) EXCLUSION.—The requirement of para-
graph (1) shall not apply in Alaska, California, or
Oklahoma, or with respect to any local educational
agency located on, or in proximity to, a reservation.
‘‘(b) INDIAN TRIBES.—
‘‘(1) IN GENERAL.—If a local educational agency
that is eligible for a grant under this chapter does not
establish a parent committee under section 3214(c)(4)
for such grant, an Indian tribe that represents not
less than one-half of the eligible Indian children who
are served by such local educational agency may
apply for such grant.
‘‘(2) SPECIAL RULE.—The Secretary shall treat
each Indian tribe applying for a grant pursuant to
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•HR 1 RH1&2
paragraph (1) as if such Indian tribe were a local
educational agency for purposes of this chapter, ex-
cept that any such tribe is not subject to section
3214(c)(4), section 3218(c), or section 3219.
‘‘SEC. 3213. AMOUNT OF GRANTS.
‘‘(a) AMOUNT OF GRANT AWARDS.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b) and paragraph (2), the Secretary shall al-
locate to each local educational agency which has an
approved application under this chapter an amount
equal to the product of—
‘‘(A) the number of Indian children who are
eligible under section 3217 and served by such
agency; and
‘‘(B) the greater of—
‘‘(i) the average per pupil expenditure
of the State in which such agency is located;
or
‘‘(ii) 80 percent of the average per
pupil expenditure in the United States.
‘‘(2) REDUCTION.—The Secretary shall reduce
the amount of each allocation determined under para-
graph (1) in accordance with subsection (e).
‘‘(b) MINIMUM GRANT.—
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•HR 1 RH1&2
‘‘(1) IN GENERAL.—Notwithstanding subsection
(e), a local educational agency or an Indian tribe (as
authorized under section 3212(b)) that is eligible for
a grant under section 3212, and a school that is oper-
ated or supported by the Bureau of Indian Affairs
that is eligible for a grant under subsection (d), that
submits an application that is approved by the Sec-
retary, shall, subject to appropriations, receive a
grant under this chapter in an amount that is not
less than $3,000.
‘‘(2) CONSORTIA.—Local educational agencies
may form a consortium for the purpose of obtaining
grants under this chapter.
‘‘(3) INCREASE.—The Secretary may increase
the minimum grant under paragraph (1) to not more
than $4,000 for all grantees if the Secretary deter-
mines such increase is necessary to ensure the quality
of the programs provided.
‘‘(c) DEFINITION.—For the purpose of this section, the
term ‘average per pupil expenditure of a State’ means an
amount equal to—
‘‘(1) the sum of the aggregate current expendi-
tures of all the local educational agencies in the State,
plus any direct current expenditures by the State for
the operation of such agencies, without regard to the
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sources of funds from which such local or State ex-
penditures were made, during the second fiscal year
preceding the fiscal year for which the computation is
made; divided by
‘‘(2) the aggregate number of children who were
included in average daily attendance for whom such
agencies provided free public education during such
preceding fiscal year.
‘‘(d) SCHOOLS OPERATED OR SUPPORTED BY THE BU-
REAU OF INDIAN AFFAIRS.—(1) Subject to subsection (e),
in addition to the grants awarded under subsection (a), the
Secretary shall allocate to the Secretary of the Interior an
amount equal to the product of—
‘‘(A) the total number of Indian children en-
rolled in schools that are operated by—
‘‘(i) the Bureau of Indian Affairs; or
‘‘(ii) an Indian tribe, or an organization
controlled or sanctioned by an Indian tribal gov-
ernment, for the children of that tribe under a
contract with, or grant from, the Department of
the Interior under the Indian Self-Determination
Act or the Tribally Controlled Schools Act of
1988; and
‘‘(B) the greater of—
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‘‘(i) the average per pupil expenditure of the
State in which the school is located; or
‘‘(ii) 80 percent of the average per pupil ex-
penditure in the United States.
‘‘(2) Any school described in paragraph (1)(A) that
wishes to receive an allocation under this chapter shall sub-
mit an application in accordance with section 3214, and
shall otherwise be treated as a local educational agency for
the purpose of this chapter, except that such school shall
not be subject to section 3214(c)(4), section 3218(c), or sec-
tion 3219.
‘‘(e) RATABLE REDUCTIONS.—If the sums appro-
priated for any fiscal year under section 3252(a) are insuf-
ficient to pay in full the amounts determined for local edu-
cational agencies under subsection (a)(1) and for the Sec-
retary of the Interior under subsection (d), each of those
amounts shall be ratably reduced.
‘‘SEC. 3214. APPLICATIONS.
‘‘(a) APPLICATION
REQUIRED.—Each local edu-
cational agency that desires to receive a grant under this
chapter shall submit an application to the Secretary at such
time, in such manner, and containing such information as
the Secretary may reasonably require.
‘‘(b) COMPREHENSIVE PROGRAM REQUIRED.—Each
application submitted under subsection (a) shall include a
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comprehensive program for meeting the needs of Indian
children served by the local educational agency, including
the language and cultural needs of the children, that—
‘‘(1) provides programs and activities to meet the
culturally related academic needs of American Indian
and Alaska Native students;
‘‘(2)(A) is consistent with State and local plans
under other provisions of this Act; and
‘‘(B) includes academic content and student per-
formance goals for such children, and benchmarks for
attaining such goals, that are based on the chal-
lenging State standards under title I;
‘‘(3) explains how Federal, State, and local pro-
grams, especially under title I, will meet the needs of
such students;
‘‘(4) demonstrates how funds made available
under this chapter will be used for activities described
in section 3215;
‘‘(5) describes the professional development op-
portunities that will be provided, as needed, to ensure
that—
‘‘(A) teachers and other school professionals
who are new to the Indian community are pre-
pared to work with Indian children; and
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•HR 1 RH1&2
‘‘(B) all teachers who will be involved in
programs assisted under this chapter have been
properly trained to carry out such programs;
and
‘‘(6) 
describes 
how 
the 
local 
educational
agency—
‘‘(A) will periodically assess the progress of
all Indian children enrolled in the schools of the
local educational agency, including Indian chil-
dren who do not participate in programs as-
sisted under this chapter, in meeting the goals
described in paragraph (2);
‘‘(B) will provide the results of each assess-
ment referred to in subparagraph (A) to—
‘‘(i) the committee of parents described
in subsection (c)(4); and
‘‘(ii) the community served by the local
educational agency; and
‘‘(C) is responding to findings of any pre-
vious assessments that are similar to the assess-
ments described in subparagraph (A).
‘‘(c) 
ASSURANCES.—Each 
application 
submitted
under subsection (a) shall include assurances that—
‘‘(1) the local educational agency will use funds
received under this chapter only to supplement the
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level of funds that, in the absence of the Federal funds
made available under this chapter, such agency would
make available for the education of Indian children,
and not to supplant such funds;
‘‘(2) the local educational agency will submit
such reports to the Secretary, in such form and con-
taining such information, as the Secretary may re-
quire to—
‘‘(A) carry out the functions of the Sec-
retary under this chapter; and
‘‘(B) determine the extent to which funds
provided to the local educational agency under
this chapter are effective in improving the edu-
cational achievement of Indian students served
by such agency;
‘‘(3) the program for which assistance is
sought—
‘‘(A) is based on a comprehensive local as-
sessment and prioritization of the unique edu-
cational and culturally related academic needs of
the American Indian and Alaska Native students
to whom the local educational agency is pro-
viding an education;
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•HR 1 RH1&2
‘‘(B) will use the best available talents and
resources, including individuals from the Indian
community; and
‘‘(C) was developed by such agency in open
consultation with parents of Indian children and
teachers, and, if appropriate, Indian students
from secondary schools, including public hear-
ings held by such agency to provide the individ-
uals described in this subparagraph a full oppor-
tunity to understand the program and to offer
recommendations regarding the program; and
‘‘(4) the local educational agency developed the
program with the participation and written approval
of a committee—
‘‘(A) that is composed of, and selected by—
‘‘(i) parents of Indian children in the
local educational agency’s schools and
teachers; and
‘‘(ii) if appropriate, Indian students
attending secondary schools;
‘‘(B) a majority of whose members are par-
ents of Indian children;
‘‘(C) that sets forth such policies and proce-
dures, including policies and procedures relating
to the hiring of personnel, as will ensure that the
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program for which assistance is sought will be
operated and evaluated in consultation with, and
with the involvement of, parents of the children,
and representatives of the area, to be served;
‘‘(D) with respect to an application describ-
ing a schoolwide program in accordance with
section 3215(c), that has—
‘‘(i) reviewed in a timely fashion the
program; and
‘‘(ii) determined that the program will
not diminish the availability of culturally
related activities for American Indian and
Alaskan Native students; and
‘‘(E) that has adopted reasonable bylaws for
the conduct of the activities of the committee and
abides by such bylaws.
‘‘SEC. 3215. AUTHORIZED SERVICES AND ACTIVITIES.
‘‘(a) GENERAL
REQUIREMENTS.—Each local edu-
cational agency that receives a grant under this chapter
shall use the grant funds, in a manner consistent with the
purpose specified in section 3211, for services and activities
that—
‘‘(1) are designed to carry out the comprehensive
program of the local educational agency for Indian
students, and described in the application of the local
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educational agency submitted to the Secretary under
section 3214(b);
‘‘(2) are designed with special regard for the lan-
guage and cultural needs of the Indian students; and
‘‘(3) supplement and enrich the regular school
program of such agency.
‘‘(b) PARTICULAR ACTIVITIES.—The services and ac-
tivities referred to in subsection (a) may include—
‘‘(1) culturally related activities that support the
program described in the application submitted by
the local educational agency;
‘‘(2) early childhood and family programs that
emphasize school readiness;
‘‘(3) enrichment programs that focus on problem
solving and cognitive skills development and directly
support the attainment of challenging State academic
content standards and State student academic
achievement standards;
‘‘(4) integrated educational services in combina-
tion with other programs that meet the needs of In-
dian children and their families;
‘‘(5) career preparation activities to enable In-
dian students to participate in programs such as the
programs supported by the Carl D. Perkins Voca-
tional and Technical Education Act of 1998, includ-
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•HR 1 RH1&2
ing programs for tech-prep, mentoring, and appren-
ticeship;
‘‘(6) activities to educate individuals concerning
substance abuse and to prevent substance abuse;
‘‘(7) the acquisition of equipment, but only if the
acquisition of the equipment is essential to meet the
purposes described in section 3211; and
‘‘(8) family literacy services.
‘‘(c) SCHOOLWIDE PROGRAMS.—Notwithstanding any
other provision of law, a local educational agency may use
funds made available to such agency under this chapter to
support a schoolwide program under section 1114 if—
‘‘(1) the committee composed of parents estab-
lished pursuant to section 3214(c)(4) approves the use
of the funds for the schoolwide program; and
‘‘(2) the schoolwide program is consistent with
the purposes described in section 3211.
‘‘(d) LIMITATION ON ADMINISTRATIVE COSTS.—Not
more than 5 percent of the funds provided to a grantee
under this chapter for any fiscal year may be used for ad-
ministrative purposes.
‘‘SEC. 3216. INTEGRATION OF SERVICES AUTHORIZED.
‘‘(a) PLAN.—An entity receiving funds under this
chapter may submit a plan to the Secretary for the integra-
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tion of education and related services provided to Indian
students.
‘‘(b) COORDINATION OF PROGRAMS.—Upon the receipt
of an acceptable plan, the Secretary, in cooperation with
each Federal agency providing grants for the provision of
education and related services to the applicant, shall au-
thorize the applicant to coordinate, in accordance with such
plan, its federally funded education and related services
programs, or portions thereof, serving Indian students in
a manner that integrates the program services involved into
a single, coordinated, comprehensive program and reduces
administrative costs by consolidating administrative func-
tions.
‘‘(c) PROGRAMS AFFECTED.—The funds that may be
consolidated in a demonstration project under any such
plan referred to in subsection (b) shall include funds for
any Federal program exclusively serving Indian children
or the funds reserved under any program to exclusively
serve Indian children under which the applicant is eligible
for receipt of funds under a statutory or administrative for-
mula for the purposes of providing education and related
services which would be used to serve Indian students.
‘‘(d) PLAN REQUIREMENTS.—For a plan to be accept-
able pursuant to subsection (b), it shall—
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‘‘(1) identify the programs or funding sources to
be consolidated;
‘‘(2) be consistent with the purposes of this sec-
tion authorizing the services to be integrated in a
demonstration project;
‘‘(3) describe a comprehensive strategy which
identifies the full range of potential educational op-
portunities and related services to be provided to as-
sist Indian students to achieve the goals set forth in
this chapter;
‘‘(4) describe the way in which services are to be
integrated and delivered and the results expected from
the plan;
‘‘(5) identify the projected expenditures under
the plan in a single budget;
‘‘(6) identify the local, State, or tribal agency or
agencies to be involved in the delivery of the services
integrated under the plan;
‘‘(7) identify any statutory provisions, regula-
tions, policies, or procedures that the applicant be-
lieves need to be waived in order to implement its
plan;
‘‘(8) set forth measures of student achievement
and performance goals designed to be met within a
specified period of time; and
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•HR 1 RH1&2
‘‘(9) be approved by a parent committee formed
in accordance with section 3214(c)(4), if such a com-
mittee exists.
‘‘(e) PLAN REVIEW.—Upon receipt of the plan from
an eligible entity, the Secretary shall consult with the Sec-
retary of each Federal department providing funds to be
used to implement the plan, and with the entity submitting
the plan. The parties so consulting shall identify any waiv-
ers of statutory requirements or of Federal departmental
regulations, policies, or procedures necessary to enable the
applicant to implement its plan. Notwithstanding any
other provision of law, the Secretary of the affected depart-
ment or departments shall have the authority to waive any
regulation, policy, or procedure promulgated by that de-
partment that has been so identified by the applicant or
department, unless the Secretary of the affected department
determines that such a waiver is inconsistent with the in-
tent of this chapter or those provisions of the statute from
which the program involved derives its authority which are
specifically applicable to Indian students.
‘‘(f) PLAN APPROVAL.—Within 90 days after the re-
ceipt of an applicant’s plan by the Secretary, the Secretary
shall inform the applicant, in writing, of the Secretary’s
approval or disapproval of the plan. If the plan is dis-
approved, the applicant shall be informed, in writing, of
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•HR 1 RH1&2
the reasons for the disapproval and shall be given an oppor-
tunity to amend its plan or to petition the Secretary to
reconsider such disapproval.
‘‘(g) RESPONSIBILITIES
OF DEPARTMENT
OF EDU-
CATION.—Not later than 180 days after the date of the en-
actment of the No Child Left Behind Act of 2001, the Sec-
retary of Education, the Secretary of the Interior, and the
head of any other Federal department or agency identified
by the Secretary of Education, shall enter into an inter-
departmental memorandum of agreement providing for the
implementation of the demonstration projects authorized
under this section. The lead agency head for a demonstra-
tion program under this section shall be—
‘‘(1) the Secretary of the Interior, in the case of
applicant meeting the definition of contract or grant
school under title XI of the Education Amendments of
1978; or
‘‘(2) the Secretary of Education, in the case of
any other applicant.
‘‘(h) RESPONSIBILITIES OF LEAD AGENCY.—The re-
sponsibilities of the lead agency shall include—
‘‘(1) the use of a single report format related to
the plan for the individual project which shall be used
by an eligible entity to report on the activities under-
taken under the project;
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•HR 1 RH1&2
‘‘(j) NO REDUCTION IN AMOUNTS.—In no case shall
the amount of Federal funds available to an eligible entity
involved in any demonstration project be reduced as a re-
sult of the enactment of this section.
‘‘(k) INTERAGENCY FUND TRANSFERS AUTHORIZED.—
The Secretary is authorized to take such action as may be
necessary to provide for an interagency transfer of funds
otherwise available to an eligible entity in order to further
the purposes of this section.
‘‘(l) ADMINISTRATION OF FUNDS.—
‘‘(1) IN GENERAL.—Program funds shall be ad-
ministered in such a manner as to allow for a deter-
mination that funds from specific a program or pro-
grams are spent on allowable activities authorized
under such program, except that the eligible entity
shall determine the proportion of the funds granted
which shall be allocated to such program.
‘‘(2) SEPARATE
RECORDS
NOT
REQUIRED.—
Nothing in this section shall be construed as requiring
the eligible entity to maintain separate records trac-
ing any services or activities conducted under its ap-
proved plan to the individual programs under which
funds were authorized, nor shall the eligible entity be
required to allocate expenditures among such indi-
vidual programs.
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•HR 1 RH1&2
‘‘(m) OVERAGE.—All administrative costs may be
commingled and participating entities shall be entitled to
the full amount of such costs (under each program or de-
partment’s regulations), and no overage shall be counted for
Federal audit purposes, provided that the overage is used
for the purposes provided for under this section.
‘‘(n) FISCAL ACCOUNTABILITY.—Nothing in this sub-
part shall be construed so as to interfere with the ability
of the Secretary or the lead agency to fulfill the responsibil-
ities for the safeguarding of Federal funds pursuant to the
Single Audit Act of 1984.
‘‘(o) REPORT ON STATUTORY OBSTACLES TO PROGRAM
INTEGRATION.—
‘‘(1) PRELIMINARY REPORT.—Not later than 2
years after the date of the enactment of the No Child
Left Behind Act of 2001, the Secretary of Education
shall submit a preliminary report to the Committee
on Health, Education, Labor, and Pensions of the
Senate and the Committee on Education and the
Workforce of the House of Representatives on the sta-
tus of the implementation of the demonstration pro-
gram authorized under this section.
‘‘(2) FINAL
REPORT.—Not later than 5 years
after the date of the enactment of the No Child Left
Behind Act of 2001, the Secretary of Education shall
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•HR 1 RH1&2
submit a report to the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate and the
Committee on Education and the Workforce of the
House of Representatives on the results of the imple-
mentation of the demonstration program authorized
under this section. Such report shall identify statu-
tory barriers to the ability of participants to inte-
grate more effectively their education and related
services to Indian students in a manner consistent
with the purposes of this section.
‘‘(p) DEFINITIONS.—For the purposes of this section,
the term ‘Secretary’ means—
‘‘(1) the Secretary of the Interior, in the case of
applicant meeting the definition of contract or grant
school under title XI of the Education Amendments of
1978; or
‘‘(2) the Secretary of Education, in the case of
any other applicant.
‘‘SEC. 3217. STUDENT ELIGIBILITY FORMS.
‘‘(a) IN GENERAL.—The Secretary shall require that,
as part of an application for a grant under this chapter,
each applicant shall maintain a file, with respect to each
Indian child for whom the local educational agency pro-
vides a free public education, that contains a form that sets
forth information establishing the status of the child as an
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•HR 1 RH1&2
Indian child eligible for assistance under this chapter and
that otherwise meets the requirements of subsection (b).
‘‘(b) FORMS.—
‘‘(1) IN GENERAL.—The form described in sub-
section (a) shall include—
‘‘(A) either—
‘‘(i)(I) the name of the tribe or band of
Indians (as described in section 3251(3))
with respect to which the child claims mem-
bership;
‘‘(II) the enrollment number estab-
lishing the membership of the child (if read-
ily available); and
‘‘(III) the name and address of the or-
ganization that maintains updated and ac-
curate membership data for such tribe or
band of Indians; or
‘‘(ii) if the child is not a member of a
tribe or band of Indians, the name, the en-
rollment number (if readily available), and
the organization (and address thereof) re-
sponsible for maintaining updated and ac-
curate membership rolls of the tribe of any
parent or grandparent of the child from
whom the child claims eligibility;
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•HR 1 RH1&2
‘‘(B) a statement of whether the tribe or
band of Indians with respect to which the child,
parent, or grandparent of the child claims mem-
bership is federally recognized;
‘‘(C) the name and address of the parent or
legal guardian of the child;
‘‘(D) a signature of the parent or legal
guardian of the child that verifies the accuracy
of the information supplied; and
‘‘(E) any other information that the Sec-
retary considers necessary to provide an accurate
program profile.
‘‘(2) MINIMUM
INFORMATION.—In order for a
child to be eligible to be counted for the purpose of
computing the amount of a grant award made under
section 3213, an eligibility form prepared pursuant to
this section for a child shall include—
‘‘(A) the name of the child;
‘‘(B) the name of the tribe or band of Indi-
ans (as described in section 3251(3)) with re-
spect to which the child claims eligibility; and
‘‘(C) the dated signature of the parent or
guardian of the child.
‘‘(3) FAILURE.—The failure of an applicant to
furnish any information described in this subsection
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•HR 1 RH1&2
other than the information described in paragraph
(2) with respect to any child shall have no bearing on
the determination of whether the child is an eligible
Indian child for the purposes of determining the
amount of a grant award made under section 3213.
‘‘(c) STATUTORY CONSTRUCTION.—Nothing in this sec-
tion shall be construed to affect a definition contained in
section 3251.
‘‘(d) FORMS AND STANDARDS OF PROOF.—The forms
and the standards of proof (including the standard of good
faith compliance) that were in use during the 1985–1986
academic year to establish the eligibility of a child for enti-
tlement under the Indian Elementary and Secondary
School Assistance Act shall be the forms and standards of
proof used—
‘‘(1) to establish such eligibility; and
‘‘(2) to meet the requirements of subsection (a).
‘‘(e) DOCUMENTATION.—For purposes of determining
whether a child is eligible to be counted for the purpose of
computing the amount of a grant under section 3213, the
membership of the child, or any parent or grandparent of
the child, in a tribe or band of Indians may be established
by proof other than an enrollment number, notwithstanding
the availability of an enrollment number for a member of
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•HR 1 RH1&2
such tribe or band. Nothing in subsection (b) shall be con-
strued to require the furnishing of an enrollment number.
‘‘(f) MONITORING AND EVALUATION REVIEW.—
‘‘(1) IN GENERAL.—(A) For each fiscal year, in
order to provide such information as is necessary to
carry out the responsibility of the Secretary to pro-
vide technical assistance under this chapter, the Sec-
retary shall conduct a monitoring and evaluation re-
view of a sampling of the recipients of grants under
this chapter. The sampling conducted under this sub-
paragraph shall take into account the size of the local
educational agency and the geographic location of
such agency.
‘‘(B) A local educational agency may not be held
liable to the United States or be subject to any pen-
alty, by reason of the findings of an audit that relates
to the date of completion, or the date of submission,
of any forms used to establish, before April 28, 1988,
the eligibility of a child for entitlement under the In-
dian Elementary and Secondary School Assistance
Act.
‘‘(2) FALSE
INFORMATION.—Any local edu-
cational agency that provides false information in an
application for a grant under this chapter shall—
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•HR 1 RH1&2
‘‘(A) be ineligible to apply for any other
grant under this subpart; and
‘‘(B) be liable to the United States for any
funds that have not been expended.
‘‘(3) EXCLUDED CHILDREN.—A student who pro-
vides false information for the form required under
subsection (a) shall not be counted for the purpose of
computing the amount of a grant under section 3213.
‘‘(g) TRIBAL GRANT AND CONTRACT SCHOOLS.—Not-
withstanding any other provision of this section, in award-
ing funds under this chapter to a tribal school that receives
a grant or contract from the Bureau of Indian Affairs, the
Secretary shall use only one of the following, as selected by
the school:
‘‘(1) A count of the number of students in those
schools certified by the Bureau.
‘‘(2) A count of the number of students for whom
the school has eligibility forms that comply with this
section.
‘‘(h) TIMING OF CHILD COUNTS.—For purposes of de-
termining the number of children to be counted in calcu-
lating the amount of a local educational agency’s grant
under this chapter (other than in the case described in sub-
section (g)(1)), the local educational agency shall—
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•HR 1 RH1&2
‘‘(1) establish a date on, or a period not longer
than 31 consecutive days during which, the agency
counts those children, so long as that date or period
occurs before the deadline established by the Secretary
for submitting an application under section 3214;
and
‘‘(2) determine that each such child was enrolled,
and receiving a free public education, in a school of
the agency on that date or during that period, as the
case may be.
‘‘SEC. 3218. PAYMENTS.
‘‘(a) IN GENERAL.—Subject to subsections (b) and (c),
the Secretary shall pay to each local educational agency
that submits an application that is approved by the Sec-
retary under this chapter the amount determined under sec-
tion 3213. The Secretary shall notify the local educational
agency of the amount of the payment not later than June
1 of the year for which the Secretary makes the payment.
‘‘(b) PAYMENTS
TAKEN
INTO
ACCOUNT
BY
THE
STATE.—The Secretary may not make a grant under this
chapter to a local educational agency for a fiscal year if,
for such fiscal year, the State in which the local educational
agency is located takes into consideration payments made
under this chapter in determining the eligibility of the local
educational agency for State aid, or the amount of the State
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•HR 1 RH1&2
aid, with respect to the free public education of children
during such fiscal year or the preceding fiscal year.
‘‘(c) REDUCTION OF PAYMENT FOR FAILURE TO MAIN-
TAIN FISCAL EFFORT.—
‘‘(1) IN GENERAL.—The Secretary may not pay
a local educational agency the full amount of a grant
award determined under section 3213 for any fiscal
year unless the State educational agency notifies the
Secretary, and the Secretary determines that, with re-
spect to the provision of free public education by the
local educational agency for the preceding fiscal year,
the combined fiscal effort of the local educational
agency and the State, computed on either a per stu-
dent or aggregate expenditure basis, was not less than
90 percent of the amount of the combined fiscal effort,
computed on the same basis, for the second preceding
fiscal year.
‘‘(2) FAILURE TO MAINTAIN EFFORT.—If, for any
fiscal year, the Secretary determines that a local edu-
cational agency failed to maintain the fiscal effort of
such agency at the level specified in paragraph (1),
the Secretary shall—
‘‘(A) reduce the amount of the grant that
would otherwise be made to such agency under
this chapter in the exact proportion of such
472
•HR 1 RH1&2
agency’s failure to maintain its fiscal effort at
such level; and
‘‘(B) not use the reduced amount of the
agency’s expenditures for the preceding year to
determine compliance with paragraph (1) for
any succeeding fiscal year, but shall use the
amount of expenditures that would have been re-
quired to comply with paragraph (1).
‘‘(3) WAIVER.—(A) The Secretary may waive the
requirement of paragraph (1), for not more than 1
year at a time, if the Secretary determines that the
failure to comply with such requirement is due to ex-
ceptional or uncontrollable circumstances, such as a
natural disaster or a precipitous and unforeseen de-
cline in the agency’s financial resources.
‘‘(B) The Secretary shall not use the reduced
amount of such agency’s expenditures for the fiscal
year preceding the fiscal year for which a waiver is
granted to determine compliance with paragraph (1)
for any succeeding fiscal year, but shall use the
amount of expenditures that would have been required
to comply with paragraph (1) in the absence of the
waiver.
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•HR 1 RH1&2
‘‘(d) REALLOCATIONS.—The Secretary may reallocate,
in a manner that the Secretary determines will best carry
out the purpose of this chapter, any amounts that—
‘‘(1) based on estimates made by local edu-
cational agencies or other information, the Secretary
determines will not be needed by such agencies to
carry out approved programs under this chapter; or
‘‘(2) otherwise become available for reallocation
under this chapter.
‘‘SEC. 3219. STATE EDUCATIONAL AGENCY REVIEW.
‘‘Before submitting an application to the Secretary
under section 3214, a local educational agency shall submit
the application to the State educational agency, which may
comment on such application. If the State educational
agency comments on the application, it shall comment on
all applications submitted by local educational agencies in
the State and shall provide those comments to the respective
local educational agencies, with an opportunity to respond.
‘‘CHAPTER 2—SPECIAL PROGRAMS AND
PROJECTS TO IMPROVE EDUCATIONAL
OPPORTUNITIES FOR INDIAN CHIL-
DREN
‘‘SEC. 3221. IMPROVEMENT OF EDUCATIONAL OPPORTUNI-
TIES FOR INDIAN CHILDREN.
‘‘(a) PURPOSE.—
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•HR 1 RH1&2
‘‘(1) IN GENERAL.—It is the purpose of this sec-
tion to support projects to develop, test, and dem-
onstrate the effectiveness of services and programs to
improve educational opportunities and achievement of
Indian children.
‘‘(2) COORDINATION.—The Secretary shall take
such actions as are necessary to achieve the coordina-
tion of activities assisted under this chapter with—
‘‘(A) other programs funded under this Act;
and
‘‘(B) other Federal programs operated for
the benefit of American Indian and Alaska Na-
tive children.
‘‘(b) ELIGIBLE ENTITIES.—For the purpose of this sec-
tion, the term ‘eligible entity’ means a State educational
agency, local educational agency, Indian tribe, Indian or-
ganization, federally supported elementary and secondary
school for Indian students, Indian institution, including an
Indian institution of higher education, or a consortium of
such institutions.
‘‘(c) GRANTS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary shall award
grants to eligible entities to enable such entities to
carry out activities that meet the purpose specified in
subsection (a)(1), including—
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•HR 1 RH1&2
‘‘(A) innovative programs related to the
educational needs of educationally disadvantaged
children;
‘‘(B) educational services that are not avail-
able to such children in sufficient quantity or
quality, including remedial instruction, to raise
the achievement of Indian children in one or
more of the core academic subjects of English,
mathematics, science, foreign languages, art, his-
tory, and geography;
‘‘(C) bilingual and bicultural programs and
projects;
‘‘(D) special health and nutrition services,
and other related activities, that address the
unique health, social, and psychological problems
of Indian children;
‘‘(E) special compensatory and other pro-
grams and projects designed to assist and en-
courage Indian children to enter, remain in, or
reenter school, and to increase the rate of sec-
ondary school graduation;
‘‘(F) comprehensive guidance, counseling,
and testing services;
‘‘(G) early childhood and kindergarten pro-
grams, including family-based preschool pro-
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•HR 1 RH1&2
grams that emphasize school readiness and pa-
rental skills, and the provision of services to In-
dian children with disabilities;
‘‘(H) partnership projects between local edu-
cational agencies and institutions of higher edu-
cation that allow secondary school students to
enroll in courses at the postsecondary level to aid
such students in the transition from secondary
school to postsecondary education;
‘‘(I) partnership projects between schools
and local businesses for career preparation pro-
grams designed to provide Indian youth with the
knowledge and skills such youth need to make an
effective transition from school to a high-skill,
high-wage career;
‘‘(J) programs designed to encourage and
assist Indian students to work toward, and gain
entrance into, an institution of higher education;
‘‘(K) family literacy services; or
‘‘(L) other services that meet the purpose de-
scribed in subsection (a)(1).
‘‘(2) 
PROFESSIONAL
DEVELOPMENT.—Profes-
sional development of teaching professionals and
paraprofessional may be a part of any program as-
sisted under this section.
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•HR 1 RH1&2
‘‘(d) GRANT REQUIREMENTS AND APPLICATIONS.—
‘‘(1) GRANT REQUIREMENTS.—(A) The Secretary
may make multiyear grants under this section for the
planning, development, pilot operation, or demonstra-
tion of any activity described in subsection (c) for a
period not to exceed 5 years.
‘‘(B) In making multiyear grants under this sec-
tion, the Secretary shall give priority to applications
that present a plan for combining two or more of the
activities described in subsection (c) over a period of
more than 1 year.
‘‘(C) The Secretary shall make a grant payment
to an eligible entity after the initial year of the
multiyear grant only if the Secretary determines that
the eligible entity has made substantial progress in
carrying out the activities assisted under the grant in
accordance with the application submitted under
paragraph (2) and any subsequent modifications to
such application.
‘‘(D)(i) In addition to awarding the multiyear
grants described in subparagraph (A), the Secretary
may award grants to eligible entities for the dissemi-
nation of exemplary materials or programs assisted
under this section.
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•HR 1 RH1&2
‘‘(ii) The Secretary may award a dissemination
grant under this subparagraph if, prior to awarding
the grant, the Secretary determines that the material
or program to be disseminated has been adequately
reviewed and has demonstrated—
‘‘(I) educational merit; and
‘‘(II) the ability to be replicated.
‘‘(2) APPLICATION.—(A) Any eligible entity that
desires to receive a grant under this section shall sub-
mit an application to the Secretary at such time and
in such manner as the Secretary may require.
‘‘(B) Each application submitted to the Sec-
retary under subparagraph (A), other than an appli-
cation for a dissemination grant under paragraph
(1)(D), shall contain—
‘‘(i) a description of how parents of Indian
children and representatives of Indian tribes
have been, and will be, involved in developing
and implementing the activities for which assist-
ance is sought;
‘‘(ii) assurances that the applicant will par-
ticipate, at the request of the Secretary, in any
national evaluation of activities assisted under
this section;
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‘‘(iii) information demonstrating that the
proposed program is either a research-based pro-
gram (which may be a research-based program
that has been modified to be culturally appro-
priate for the students who will be served);
‘‘(iv) a description of how the applicant
will incorporate the proposed services into the
ongoing school program once the grant period is
over; and
‘‘(v) such other assurances and information
as the Secretary may reasonably require.
‘‘(e) ADMINISTRATIVE COSTS.—Not more than 5 per-
cent of the funds provided to a grantee under this chapter
for any fiscal year may be used for administrative pur-
poses.
‘‘SEC. 3222. PROFESSIONAL DEVELOPMENT FOR TEACHERS
AND EDUCATION PROFESSIONALS.
‘‘(a) PURPOSES.—The purposes of this section are—
‘‘(1) to increase the number of qualified Indian
individuals in teaching or other education professions
that serve Indian people;
‘‘(2) to provide training to qualified Indian in-
dividuals to enable such individuals to become teach-
ers, administrators, teacher aides, social workers, and
ancillary educational personnel; and
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‘‘(3) to improve the skills of qualified Indian in-
dividuals who serve in the capacities described in
paragraph (2).
‘‘(b) ELIGIBLE ENTITIES.—For the purpose of this sec-
tion, the term ‘eligible entity’ means—
‘‘(1) an institution of higher education, includ-
ing an Indian institution of higher education;
‘‘(2) a State or local educational agency, in con-
sortium with an institution of higher education; and
‘‘(3) an Indian tribe or organization, in consor-
tium with an institution of higher education.
‘‘(c) PROGRAM AUTHORIZED.—The Secretary is au-
thorized to award grants to eligible entities having applica-
tions approved under this section to enable such entities to
carry out the activities described in subsection (d).
‘‘(d) AUTHORIZED ACTIVITIES.—
‘‘(1) IN GENERAL.—Grant funds under this sec-
tion shall be used to provide support and training for
Indian individuals in a manner consistent with the
purposes of this section. Such activities may include
but are not limited to, continuing programs,
symposia, workshops, conferences, and direct finan-
cial support.
‘‘(2) SPECIAL RULES.—(A) For education per-
sonnel, the training received pursuant to a grant
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under this section may be inservice or preservice
training.
‘‘(B) For individuals who are being trained to
enter any field other than teaching, the training re-
ceived pursuant to a grant under this section shall be
in a program that results in a graduate degree.
‘‘(e) APPLICATION.—Each eligible entity desiring a
grant under this section shall submit an application to the
Secretary at such time, in such manner and accompanied
by such information, as the Secretary may reasonably re-
quire.
‘‘(f) SPECIAL RULE.—In making grants under this
section, the Secretary—
‘‘(1) shall consider the prior performance of the
eligible entity; and
‘‘(2) may not limit eligibility to receive a grant
under this section on the basis of—
‘‘(A) the number of previous grants the Sec-
retary has awarded such entity; or
‘‘(B) the length of any period during which
such entity received such grants.
‘‘(g) GRANT PERIOD.—Each grant under this section
shall be awarded for a period of not more than 5 years.
‘‘(h) SERVICE OBLIGATION.—
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‘‘(1) IN GENERAL.—The Secretary shall require,
by regulation, that an individual who receives train-
ing pursuant to a grant made under this section—
‘‘(A) perform work—
‘‘(i) related to the training received
under this section; and
‘‘(ii) that benefits Indian people; or
‘‘(B) repay all or a prorated part of the as-
sistance received.
‘‘(2) REPORTING.—The Secretary shall establish,
by regulation, a reporting procedure under which a
grant recipient under this section shall, not later than
12 months after the date of completion of the train-
ing, and periodically thereafter, provide information
concerning the compliance of such recipient with the
work requirement under paragraph (1).
‘‘CHAPTER 3—NATIONAL RESEARCH
ACTIVITIES
‘‘SEC. 3231. NATIONAL ACTIVITIES.
‘‘(a) AUTHORIZED ACTIVITIES.—The Secretary may
use funds made available under section 3252(b) for each
fiscal year to—
‘‘(1) conduct research related to effective ap-
proaches for the education of Indian children and
adults;
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‘‘(2) evaluate federally assisted education pro-
grams from which Indian children and adults may
benefit;
‘‘(3) collect and analyze data on the educational
status and needs of Indians; and
‘‘(4) carry out other activities that are consistent
with the purpose of this subpart.
‘‘(b) ELIGIBILITY.—The Secretary may carry out any
of the activities described in subsection (a) directly or
through grants to, or contracts or cooperative agreements
with Indian tribes, Indian organizations, State educational
agencies, local educational agencies, institutions of higher
education, including Indian institutions of higher edu-
cation, and other public and private agencies and
institutions.
‘‘(c) COORDINATION.—Research activities supported
under this section—
‘‘(1) shall be carried out in consultation with the
Office of Educational Research and Improvement to
assure that such activities are coordinated with and
enhance the research and development activities sup-
ported by the Office; and
‘‘(2) may include collaborative research activities
which are jointly funded and carried out by the Office
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of Indian Education Programs and the Office of Edu-
cational Research and Improvement.
‘‘CHAPTER 4—FEDERAL ADMINISTRATION
‘‘SEC. 3241. NATIONAL ADVISORY COUNCIL ON INDIAN EDU-
CATION.
‘‘(a) MEMBERSHIP.—There is established a National
Advisory Council on Indian Education (hereafter in this
section referred to as the ‘Council’), which shall—
‘‘(1) consist of 15 Indian members, who shall be
appointed by the President from lists of nominees fur-
nished, from time-to-time, by Indian tribes and orga-
nizations; and
‘‘(2) represent different geographic areas of the
United States.
‘‘(b) DUTIES.—The Council shall—
‘‘(1) advise the Secretary concerning the funding
and administration (including the development of
regulations and administrative policies and practices)
of any program, including any program established
under this subpart—
‘‘(A) with respect to which the Secretary has
jurisdiction; and
‘‘(B)(i) that includes Indian children or
adults as participants; or
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‘‘(ii) that may benefit Indian children or
adults;
‘‘(2) make recommendations to the Secretary for
filling the position of Director of Indian Education
whenever a vacancy occurs; and
‘‘(3) submit to the Congress, not later than June
30 of each year, a report on the activities of the Coun-
cil, including—
‘‘(A) any recommendations that the Council
considers appropriate for the improvement of
Federal education programs that include Indian
children or adults as participants, or that may
benefit Indian children or adults; and
‘‘(B) recommendations concerning the fund-
ing of any program described in subparagraph
(A).
‘‘SEC. 3242. PEER REVIEW.
‘‘The Secretary may use a peer review process to re-
view applications submitted to the Secretary under chapter
2 or 3.
‘‘SEC. 3243. PREFERENCE FOR INDIAN APPLICANTS.
‘‘In making grants under chapter 2 or 3, the Secretary
shall give a preference to Indian tribes, organizations, and
institutions of higher education under any program with
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respect to which Indian tribes, organizations, and institu-
tions are eligible to apply for grants.
‘‘SEC. 3244. MINIMUM GRANT CRITERIA.
‘‘The Secretary may not approve an application for
a grant under subpart 2 unless the application is for a
grant that is—
‘‘(1) of sufficient size, scope, and quality to
achieve the purpose or objectives of such grant; and
‘‘(2) based on relevant research findings.
‘‘CHAPTER 5—DEFINITIONS;
AUTHORIZATIONS OF APPROPRIATIONS
‘‘SEC. 3251. DEFINITIONS.
‘‘For the purposes of this subpart:
‘‘(1) ADULT.—The term ‘adult’ means an indi-
vidual who—
‘‘(A) has attained the age of 16 years; or
‘‘(B) has attained an age that is greater
than the age of compulsory school attendance
under an applicable State law.
‘‘(2) FREE PUBLIC EDUCATION.—The term ‘free
public education’ means education that is—
‘‘(A) provided at public expense, under pub-
lic supervision and direction, and without tui-
tion charge; and
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‘‘(B) provided as elementary or secondary
education in the applicable State or to preschool
children.
‘‘(3) INDIAN.—The term ‘Indian’ means an indi-
vidual who is—
‘‘(A) a member of an Indian tribe or band,
as membership is defined by the tribe or band,
including—
‘‘(i) any tribe or band terminated since
1940; and
‘‘(ii) any tribe or band recognized by
the State in which the tribe or band resides;
‘‘(B) a descendant, in the first or second de-
gree, of an individual described in subparagraph
(A);
‘‘(C) considered by the Secretary of the Inte-
rior to be an Indian for any purpose;
‘‘(D) an Eskimo, Aleut, or other Alaska Na-
tive; or
‘‘(E) a member of an organized Indian
group that received a grant under the Indian
Education Act of 1988 as it was in effect the day
preceding the date of the enactment of the Im-
proving America’s Schools Act of 1994.
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‘‘SEC. 3252. AUTHORIZATIONS OF APPROPRIATIONS.
‘‘(a) CHAPTER 1.—For the purpose of carrying out
chapter 1 of this subpart, there are authorized to be appro-
priated $100,000,000 for fiscal year 2002, and such sums
as may be necessary for each of fiscal years 2003 through
2006.
‘‘(b) CHAPTERS 2 AND 3.—For the purpose of carrying
out chapters 2 and 3 of this subpart, there are authorized
to be appropriated $25,000,000 for fiscal year 2002, and
such sums as may be necessary for each of the fiscal years
2003 through 2006.’’.
(b) SAVINGS PROVISION.—Funds appropriated for
part A of title IX of the Elementary and Secondary Edu-
cation Act of 1965 (as in effect on the day before the date
of the enactment of this Act) shall be available for use under
subpart 1 of part B of title III of such Act, as added by
this section.
SEC. 312. ALASKA NATIVE EDUCATION.
(a) IN GENERAL.—Part B of title III (as added by
section 311 of this Act) is further amended by adding at
the end the following new subpart:
‘‘Subpart 2—Alaska Native Education
‘‘SEC. 3301. SHORT TITLE.
‘‘This subpart may be cited as the ‘Alaska Native Edu-
cational Equity, Support, and Assistance Act’.
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‘‘SEC. 3302. FINDINGS.
‘‘The Congress finds and declares:
‘‘(1) The attainment of educational success is
critical to the betterment of the conditions, long-term
well-being and preservation of the culture of Alaska
Natives.
‘‘(2) It is the policy of the Federal Government
to encourage the maximum participation by Alaska
Natives in the planning and the management of Alas-
ka Native education programs.
‘‘(3) Alaska Native children enter and exit school
with serious educational handicaps.
‘‘(4) The educational achievement of Alaska Na-
tive children is far below national norms. In addition
to low Native performance on standardized tests, Na-
tive student dropout rates are high, and Natives are
significantly underrepresented among holders of bac-
calaureate degrees in the State of Alaska. As a result,
Native students are being denied their opportunity to
become full participants in society by grade school
and high school educations that are condemning an
entire generation to an underclass status and a life
of limited choices.
‘‘(5) The programs authorized herein, combined
with expanded Head Start, infant learning and early
childhood education programs, and parent education
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programs are essential if educational handicaps are
to be overcome.
‘‘(6) The sheer magnitude of the geographic bar-
riers to be overcome in delivering educational services
in rural and village Alaska should be addressed
through the development and implementation of inno-
vative, model programs in a variety of areas.
‘‘(7) Congress finds that Native children should
be afforded the opportunity to begin their formal edu-
cation on a par with their non-Native peers. The Fed-
eral Government should lend support to efforts devel-
oped by and undertaken within the Alaska Native
community to improve educational opportunity for
all students.
‘‘SEC. 3303. PURPOSE.
‘‘It is the purpose of this subpart to—
‘‘(1) recognize the unique educational needs of
Alaska Natives;
‘‘(2) authorize the development of supplemental
educational programs to benefit Alaska Natives;
‘‘(3) supplement existing programs and authori-
ties in the area of education to further the purposes
of this subpart; and
‘‘(4) provide direction and guidance to appro-
priate Federal, State and local agencies to focus re-
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sources, including resources made available under this
subpart, on meeting the educational needs of Alaska
Natives.
‘‘SEC. 3304. PROGRAM AUTHORIZED.
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) PROGRAM AUTHORIZED.—The Secretary is
authorized to make grants to, or enter into contracts
with, Alaska Native organizations, educational enti-
ties with experience in developing or operating Alaska
Native programs or programs of instruction con-
ducted in Alaska Native languages, and consortia of
such organizations and entities to carry out programs
that meet the purpose of this subpart.
‘‘(2) PERMISSIBLE ACTIVITIES.—Programs under
this subpart may include—
‘‘(A) the development and implementation
of plans, methods, and strategies to improve the
education of Alaska Natives;
‘‘(B) the development of curricula and edu-
cational programs that address the educational
needs of Alaska Native students, including—
‘‘(i) curriculum materials that reflect
the cultural diversity or the contributions of
Alaska Natives;
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‘‘(ii) instructional programs that make
use of Native Alaskan languages; and
‘‘(iii) networks that introduce success-
ful programs, materials, and techniques to
urban and rural schools;
‘‘(C) professional development activities for
educators, including—
‘‘(i) programs to prepare teachers to
address the cultural diversity and unique
needs of Alaska Native students;
‘‘(ii) in-service programs to improve
the ability of teachers to meet the unique
needs of Alaska Native students; and
‘‘(iii) recruiting and preparing teach-
ers who are Alaska Natives, reside in com-
munities with high concentrations of Alaska
Native students, or are likely to succeed as
teachers in isolated, rural communities and
engage in cross-cultural instruction;
‘‘(D) the development and operation of home
instruction programs for Alaska Native preschool
children, the purpose of which is to ensure the
active involvement of parents in their children’s
education from the earliest ages;
‘‘(E) family literacy services;
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‘‘(F) the development and operation of stu-
dent enrichment programs in science and mathe-
matics that—
‘‘(i) are designed to prepare Alaska
Native students from rural areas, who are
preparing to enter high school, to excel in
science and math; and
‘‘(ii) provide appropriate support serv-
ices to the families of such students that are
needed to enable such students to benefit
from the program;
‘‘(G) research and data collection activities
to determine the educational status and needs of
Alaska Native children and adults;
‘‘(H) other research and evaluation activi-
ties related to programs under this subpart; and
‘‘(I) other activities, consistent with the
purposes of this subpart, to meet the educational
needs of Alaska Native children and adults.
‘‘(3) HOME INSTRUCTION PROGRAMS.—Home in-
struction programs for Alaska Native preschool chil-
dren under paragraph (2)(D) may include—
‘‘(A) programs for parents and their in-
fants, from prenatal through age three;
‘‘(B) preschool programs; and
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‘‘(C) training, education, and support for
parents in such areas as reading readiness, ob-
servation, story-telling, and critical thinking.
‘‘(b) LIMITATION ON ADMINISTRATIVE COSTS.—Not
more than 5 percent of funds provided to a grantee under
this section for any fiscal year may be used for administra-
tive purposes.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated $15,000,000 for fiscal year
2002, and such sums as may be necessary for each of the
fiscal years 2003 through 2006 to carry out this subpart.
‘‘SEC. 3305. ADMINISTRATIVE PROVISIONS.
‘‘(a) APPLICATION REQUIRED.—No grant may be
made under this subpart, nor any contract be entered into
under this subpart, unless an application is submitted to
the Secretary in such form, in such manner, and containing
such information as the Secretary may determine necessary
to carry out the provisions of this subpart.
‘‘(b) APPLICATIONS.—State and local educational
agencies may apply for an award under this subpart only
as subpart of a consortium involving an Alaska Native or-
ganization. This consortium may include other eligible ap-
plicants.
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‘‘(c) CONSULTATION REQUIRED.—Each applicant for
funding shall provide for ongoing advice from and consulta-
tion with representatives of the Alaska Native community.
‘‘(d) LOCAL EDUCATIONAL AGENCY COORDINATION.—
Each applicant for an award under this subpart shall in-
form each local educational agency serving students who
would participate in the project about its application.
‘‘SEC. 3306. DEFINITIONS.
‘‘For purposes of this subpart—
‘‘(1) the term ‘Alaska Native’ has the same
meaning as the term ‘Native’ has in section 3(b) of
the Alaska Native Claims Settlement Act; and
‘‘(2) the term ‘Alaska Native organization’
means a federally recognized tribe, consortium of
tribes, regional nonprofit Native association, and
other Alaska Native organizations that—
‘‘(A) has or commits to acquire expertise in
the education of Alaska Natives; and
‘‘(B) has Alaska Natives in substantive and
policy-making positions within the organiza-
tion.’’.
(b) SAVINGS PROVISION.—Funds appropriated for
part C of title IX of the Elementary and Secondary Edu-
cation Act of 1965 (as in effect on the day before the date
of the enactment of this Act) shall be available for use under
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subpart 2 of part B of title III of such Act, as added by
this section.
SEC. 313. AMENDMENTS TO THE EDUCATION AMENDMENTS
OF 1978.
Part B of title XI of the Education Amendments of
1978 (25 U.S.C. 2001 et seq.) is amended to read as follows:
‘‘PART B—BUREAU OF INDIAN AFFAIRS
PROGRAMS
‘‘SEC. 1120. FINDING AND POLICY.
‘‘(a) FINDING.—Congress finds and recognizes that the
Federal Government has the sole responsibility for the oper-
ation and financial support of the Bureau of Indian Affairs
funded school system that it has established on or near In-
dian reservations and Indian trust lands throughout the
Nation for Indian children.
‘‘(b) POLICY.—It is the policy of the United States to
work in full cooperation with Indian tribes toward the goal
of assuring that the programs of the Bureau of Indian Af-
fairs funded school system are of the highest quality and
meet the unique educational and cultural needs of Indian
children.
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‘‘SEC. 1121. ACCREDITATION AND STANDARDS FOR THE
BASIC EDUCATION OF INDIAN CHILDREN IN
BUREAU OF INDIAN AFFAIRS SCHOOLS.
‘‘(a) PURPOSE.—The purpose of the standards imple-
mented under this section shall be to afford Indian students
being served by a school funded by the Bureau of Indian
Affairs the same opportunities as all other students in the
United States to achieve the same challenging State aca-
demic achievement standards expected of all students.
‘‘(b) STUDIES AND SURVEYS RELATING TO STAND-
ARDS.—Not later than 1 year after the date of the enact-
ment of the No Child Left Behind Act of 2001, the Sec-
retary, in consultation with the Secretary of Education,
consortia of education organizations, and Indian organiza-
tions and tribes, and making the fullest use possible of other
existing studies, surveys, and plans, shall carry out by con-
tract with an Indian organization, studies and surveys to
establish and revise standards for the basic education of In-
dian children attending Bureau funded schools. Such stud-
ies and surveys shall take into account factors such as aca-
demic needs, local cultural differences, type and level of lan-
guage skills, geographic isolation, and appropriate teacher-
student ratios for such children, and shall be directed to-
ward the attainment of equal educational opportunity for
such children.
‘‘(c) REVISION OF MINIMUM ACADEMIC STANDARDS.—
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‘‘(1) IN GENERAL.—Not later than 2 years after
the date of the enactment of the No Child Left Behind
Act of 2001, the Secretary shall—
‘‘(A) propose revisions to the minimum aca-
demic standards published in the Federal Reg-
ister on September 9, 1995 (50 Fed. Reg. 174)
for the basic education of Indian children at-
tending Bureau funded schools in accordance
with the purpose described in subsection (a) and
the findings of the studies and surveys conducted
under subsection (b);
‘‘(B) publish such proposed revisions to such
standards in the Federal Register for the purpose
of receiving comments from the tribes, tribal
school boards, Bureau funded schools, and other
interested parties; and
‘‘(C) consistent with the provisions of this
section and section 1131, take such actions as
are necessary to coordinate standards imple-
mented under this section with the Comprehen-
sive School Reform Plan developed by the Bu-
reau and—
‘‘(i) with the standards of the improve-
ment plans for the States in which any
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school operated by the Bureau of Indian Af-
fairs is located; or
‘‘(ii) in the case where schools operated
by the Bureau are within the boundaries of
reservation land of one tribe but within the
boundaries of more than one State, with the
standards of the State improvement plan of
one such State selected by the tribe.
‘‘(2) FURTHER
REVISIONS.—Not later that 6
months after the close of the comment period, the Sec-
retary shall establish final standards, distribute such
standards to all tribes and publish such final stand-
ards in the Federal Register. The Secretary shall re-
vise such standards periodically as necessary. Prior to
any revision of such final standards, the Secretary
shall distribute such proposed revision to all the
tribes, and publish such proposed revision in the Fed-
eral Register, for the purpose of receiving comments
from the tribes and other interested parties.
‘‘(3) APPLICABILITY OF STANDARDS.—Except as
provided in subsection (e), the final standards pub-
lished under paragraph (2) shall apply to all Bureau
funded schools not accredited under subsection (f),
and may also serve as a model for educational pro-
grams for Indian children in public schools.
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‘‘(4) CONSIDERATIONS WHEN ESTABLISHING AND
REVISING STANDARDS.—In establishing and revising
such standards, the Secretary shall take into account
the unique needs of Indian students and support and
reinforcement of the specific cultural heritage of each
tribe.
‘‘(d) ALTERNATIVE OR MODIFIED STANDARDS.—The
Secretary shall provide alternative or modified standards
in lieu of the standards established under subsection (c),
where necessary, so that the programs of each school are
in compliance with the minimum accreditation standards
required for schools in the State or region where the school
is located.
‘‘(e) WAIVER OF STANDARDS; ALTERNATIVE STAND-
ARDS.—A tribal governing body, or the local school board
so designated by the tribal governing body, shall have the
local authority to waive, in part or in whole, the standards
established under subsections (c) and (d) if such standards
are deemed by such body to be inappropriate. The tribal
governing body or designated school board shall, not later
than 60 days after a waiver under this subsection, submit
to the Secretary a proposal for alternative standards that
take into account the specific needs of the tribe’s children.
Such alternative standards shall be established by the Sec-
retary unless specifically rejected by the Secretary for good
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cause and in writing to the affected tribes or local school
board, which rejection shall be final and not subject to re-
view.
‘‘(f) 
ACCREDITATION
AND
IMPLEMENTATION
OF
STANDARDS.—
‘‘(1) DEADLINE FOR MEETING STANDARDS.—Not
later the second academic year after publication of the
standards, to the extent necessary funding is pro-
vided, all Bureau funded schools shall meet the stand-
ards established under subsections (c) and (d) or shall
be accredited—
‘‘(A) by a tribal accrediting body, if the ac-
creditation standards of the tribal accrediting
body have been accepted by formal action of the
tribal governing body and are equal to or exceed
the accreditation standards of the State or region
in which the school is located;
‘‘(B) by a regional accreditation agency; or
‘‘(C) by State accreditation standards for
the State in which it is located.
‘‘(2) DETERMINATION OF STANDARDS TO BE AP-
PLIED.—The accreditation type or standards applied
for each school shall be determined by the school board
of the school, in consultation with the Administrator
of the school, provided that in the case where the
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School Board and the Administrator fail to agree on
the type of accreditation and standards to apply, the
decision of the school board with the approval of the
tribal governing body shall be final.
‘‘(3) ASSISTANCE TO SCHOOL BOARDS.—The Sec-
retary, through contracts and grants, shall assist
school boards of contract or grant schools in imple-
mentation of the standards established under sub-
sections (c) and (d), if the school boards request that
such standards, in part or in whole, be implemented.
‘‘(4) FISCAL CONTROL AND FUND ACCOUNTING
STANDARDS.—The Bureau shall, either directly or
through contract with an Indian organization, estab-
lish a consistent system of reporting standards for fis-
cal control and fund accounting for all contract and
grant schools. Such standards shall provide data com-
parable to those used by Bureau operated schools.
‘‘(g) ANNUAL PLAN FOR MEETING OF STANDARDS.—
Except as provided in subsections (e) and (f), the Secretary
shall begin to implement the standards established under
this section immediately upon the date of their establish-
ment. On an annual basis, the Secretary shall submit to
the appropriate committees of Congress, all Bureau funded
schools, and the tribal governing bodies of such schools a
detailed plan to bring all Bureau schools and contract or
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grant schools up to the level required by the applicable
standards established under this section. Such plan shall
include detailed information on the status of each school’s
educational program in relation to the applicable standards
established under this section, specific cost estimates for
meeting such standards at each school and specific timelines
for bringing each school up to the level required by such
standards.
‘‘(h) CLOSURE OR CONSOLIDATION OF SCHOOLS.—
‘‘(1) IN
GENERAL.—Except as specifically re-
quired by statute, no school or peripheral dormitory
operated by the Bureau on or after January 1, 1992,
may be closed or consolidated or have its program
substantially curtailed unless done according to the
requirements of this subsection.
‘‘(2) EXCEPTIONS.—This subsection shall not
apply—
‘‘(A) in those cases where the tribal gov-
erning body, or the local school board concerned
(if so designated by the tribal governing body),
requests closure or consolidation; or
‘‘(B) when a temporary closure, consolida-
tion, or substantial curtailment is required by
plant conditions which constitute an immediate
hazard to health and safety.
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‘‘(3) REGULATIONS.—The Secretary shall, by
regulation, promulgate standards and procedures for
the closure, transfer to another authority, consolida-
tion, or substantial curtailment of Bureau schools, in
accordance with the requirements of this subsection.
‘‘(4) NOTICE.—Whenever closure, transfer to an-
other authority, consolidation, or substantial curtail-
ment of a school is under active consideration or re-
view by any division of the Bureau or the Depart-
ment of the Interior, the affected tribe, tribal gov-
erning body, and designated local school board, will
be notified immediately, kept fully and currently in-
formed, and afforded an opportunity to comment with
respect to such consideration or review. When a for-
mal decision is made to close, transfer to another au-
thority, consolidate, or substantially curtail a school,
the affected tribe, tribal governing body, and des-
ignated school board shall be notified at least 6
months prior to the end of the school year preceding
the proposed closure date. Copies of any such notices
and information shall be transmitted promptly to the
appropriate committees of Congress and published in
the Federal Register.
‘‘(5) REPORT.—The Secretary shall make a re-
port to the appropriate committees of Congress, the
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affected tribe, and the designated school board describ-
ing the process of the active consideration or review
referred to in paragraph (4). The report shall include
a study of the impact of such action on the student
population, identify those students with particular
educational and social needs, and ensure that alter-
native services are available to such students. Such
report shall include the description of the consultation
conducted between the potential service provider, cur-
rent service provider, parents, tribal representatives
and the tribe or tribes involved, and the Director of
the Office of Indian Education Programs within the
Bureau regarding such students.
‘‘(6) LIMITATION ON CERTAIN ACTIONS.—No ir-
revocable action may be taken in furtherance of any
such proposed school closure, transfer to another au-
thority, consolidation, or substantial curtailment (in-
cluding any action which would prejudice the per-
sonnel or programs of such school) prior to the end
of the first full academic year after such report is
made.
‘‘(7) TRIBAL
GOVERNING
BODY
APPROVAL
RE-
QUIRED FOR CERTAIN ACTIONS.—The Secretary may
terminate, contract, transfer to any other authority,
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•HR 1 RH1&2
consolidate, or substantially curtail the operation or
facilities of—
‘‘(A) any Bureau funded school that is oper-
ated on or after of January 1, 1999;
‘‘(B) any program of such a school that is
operated on or after January 1, 1999; or
‘‘(C) any school board of a school operated
under a grant under the Tribally Controlled
Schools Act of 1988,
only if the tribal governing body approves such ac-
tion.
‘‘(i) APPLICATION FOR CONTRACTS OR GRANTS FOR
NON-BUREAU FUNDED SCHOOLS OR EXPANSION OF BU-
REAU FUNDED SCHOOLS.—
‘‘(1) IN GENERAL.—(A)(i) The Secretary shall
only consider the factors described in subparagraph
(B) in reviewing—
‘‘(I) applications from any tribe for the
awarding of a contract or grant for a school that
is not a Bureau funded school; and
‘‘(II) applications from any tribe or school
board of any Bureau funded school for—
‘‘(aa) a school which is not a Bureau
funded school; or
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•HR 1 RH1&2
‘‘(bb) the expansion of a Bureau fund-
ed school which would increase the amount
of funds received by the Indian tribe or
school board under section 1127.
‘‘(ii) With respect to applications described in
this subparagraph, the Secretary shall give consider-
ation to all the factors described in subparagraph (B),
but no such application shall be denied based pri-
marily upon the geographic proximity of comparable
public education.
‘‘(B) With respect to applications described in
subparagraph (A) the Secretary shall consider the fol-
lowing factors relating to the program and services
that are the subject of the application:
‘‘(i) The adequacy of the facilities or the po-
tential to obtain or provide adequate facilities.
‘‘(ii) Geographic and demographic factors
in the affected areas.
‘‘(iii) The adequacy of the applicant’s pro-
gram plans or, in the case of a Bureau funded
school, of projected needs analysis done either by
the tribe or the Bureau.
‘‘(iv) Geographic proximity of comparable
public education.
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‘‘(v) The stated needs of all affected parties,
including students, families, tribal governments
at both the central and local levels, and school
organizations.
‘‘(vi) Adequacy and comparability of pro-
grams already available.
‘‘(vii) Consistency of available programs
with tribal educational codes or tribal legislation
on education.
‘‘(viii) The history and success of these serv-
ices for the proposed population to be served, as
determined from all factors, including but not
limited to standardized examination perform-
ance.
‘‘(2) DETERMINATION ON APPLICATION.—(A) The
Secretary shall make a determination of whether to
approve any application described in paragraph
(1)(A) not later than 180 days after such application
is submitted to the Secretary.
‘‘(B) If the Secretary fails to make the deter-
mination with respect to an application by the date
described in subparagraph (A), the application shall
be treated a having been approved by the Secretary.
‘‘(3) REQUIREMENTS
FOR
APPLICATIONS.—(A)
Notwithstanding paragraph (2)(B), an application
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•HR 1 RH1&2
described in paragraph (1)(A) may be approved by
the Secretary only if—
‘‘(i) the application has been approved by
the tribal governing body of the students served
by (or to be served by) the school or program
that is the subject of the application; and
‘‘(ii) written evidence of such approval is
submitted with the application.
‘‘(B) Each application described in paragraph
(1)(A) shall provide information concerning each of
the factors described in paragraph (1)(B).
‘‘(4) DENIAL OF APPLICATIONS.—Whenever the
Secretary makes a determination to deny approval of
any application described in paragraph (1)(A), the
Secretary shall—
‘‘(A) state the objections in writing to the
applicant not later 180 days after the applica-
tion is submitted to the Secretary;
‘‘(B) provide assistance to the applicant to
overcome stated objections; and
‘‘(C) provide the applicant a hearing, under
the same rules and regulations pertaining to the
Indian Self-Determination and Education As-
sistance Act and an opportunity to appeal the
objections raised by the Secretary.
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‘‘(5) EFFECTIVE DATE OF A SUBJECT APPLICA-
TION.—(A) Except as otherwise provided in this
paragraph, the action which is the subject of any ap-
plication described in paragraph (1)(A) that is ap-
proved by the Secretary shall become effective at the
beginning of the academic year following the fiscal
year in which the application is approved, or at an
earlier date determined by the Secretary.
‘‘(B) If an application is treated as having been
approved by the Secretary under paragraph (2)(B),
the action that is the subject of the application shall
become effective on the date that is 18 months after
the date on which the application is submitted to the
Secretary, or at an earlier date determined by the
Secretary.
‘‘(6) STATUTORY
CONSTRUCTION.—Nothing in
this section shall be read so as to preclude the expan-
sion of grades and related facilities at a Bureau fund-
ed school where such expansion and the maintenance
of such expansion is occasioned or paid for with non-
Bureau funds.
‘‘(j) GENERAL USE OF FUNDS.—Funds received by
Bureau funded schools from the Bureau of Indian Affairs
and under any program from the Department of Education
or any other Federal agency for the purpose of providing
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•HR 1 RH1&2
education or related services may be used for schoolwide
projects to improve the educational program for all Indian
students.
‘‘(k) STUDY
ON ADEQUACY
OF FUNDS
AND FOR-
MULAS.—The Comptroller General shall conduct a study,
in consultation with Indian tribes and local school boards,
to determine the adequacy of funding, and formulas used
by the Bureau to determine funding, for programs operated
by Bureau funded schools, taking into account unique cir-
cumstances applicable to Bureau funded schools, as well as
expenditures for comparable purposes in public schools na-
tionally. Upon completion of the study, the Secretary of the
Interior shall take such action as necessary to ensure dis-
tribution of the findings of the study to all affected Indian
tribes, local school boards, and associations of local school
boards.
‘‘SEC. 1122. NATIONAL CRITERIA FOR HOME-LIVING SITUA-
TIONS.
‘‘(a) IN GENERAL.—The Secretary, in consultation
with the Secretary of Education, Indian organizations and
tribes, and Bureau funded schools, shall revise the national
standards for home-living (dormitory) situations to include
such factors as heating, lighting, cooling, adult-child ratios,
needs for counselors (including special needs related to off-
reservation home-living (dormitory) situations), thera-
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•HR 1 RH1&2
peutic programs, space, and privacy. Such standards shall
be implemented in Bureau operated schools, and shall serve
as minimum standards for contract or grant schools. Once
established, any revisions of such standards shall be devel-
oped according to the requirements established under section
1138A.
‘‘(b) IMPLEMENTATION.—The Secretary shall imple-
ment the revised standards established under this section
immediately upon their completion.
‘‘(c) PLAN.—At the time of each annual budget submis-
sion for Bureau educational services is presented, the Sec-
retary shall submit to the appropriate committees of Con-
gress, the tribes, and the affected schools, and publish in
the Federal Register, a detailed plan to bring all Bureau
funded schools that provide home-living (dormitory) situa-
tions up to the standards established under this section.
Such plan shall include a statement of the relative needs
of each Bureau funded home-living (dormitory) school, pro-
jected future needs of each Bureau funded home-living (dor-
mitory) school, detailed information on the status of each
school in relation to the standards established under this
section, specific cost estimates for meeting each standard for
each such school, aggregate cost estimates for bringing all
such schools into compliance with the criteria established
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•HR 1 RH1&2
under this section, and specific timelines for bringing each
school into compliance with such standards.
‘‘(d) WAIVER.—The criteria established under this sec-
tion may be waived in the same manner as the standards
provided under section 1121(c) may be waived.
‘‘(e) CLOSURE FOR FAILURE TO MEET STANDARDS
PROHIBITED.—No school in operation on or before January
1, 1987 (regardless of compliance or noncompliance with
the criteria established under this section), may be closed,
transferred to another authority, consolidated, or have its
program substantially curtailed for failure to meet the cri-
teria.
‘‘SEC. 1123. CODIFICATION OF REGULATIONS.
‘‘(a) PART 32 OF TITLE 25 OF CODE OF FEDERAL
REGULATIONS.—The provisions of part 32 of title 25 of the
Code of Federal Regulations, as in effect on January 1,
1987, are incorporated into this Act and shall be treated
as though such provisions are set forth in this subsection.
Such provisions may be altered only by means of an Act
of Congress. To the extent that such provisions of part 32
do not conform with this Act or any statutory provision
of law enacted before November 1, 1978, the provisions of
this Act and the provisions of such other statutory law shall
govern.
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•HR 1 RH1&2
‘‘(b) REGULATION DEFINED.—For purposes of this
part, the term ‘regulation’ means any rules, regulations,
guidelines, interpretations, orders, or requirements of gen-
eral applicability prescribed by any officer or employee of
the executive branch.
‘‘SEC. 1124. SCHOOL BOUNDARIES.
‘‘(a) ESTABLISHMENT BY SECRETARY.—The Secretary
shall establish, by regulation, separate geographical attend-
ance areas for each Bureau funded school.
‘‘(b) ESTABLISHMENT BY TRIBAL BODY.—In any case
where there is more than one Bureau funded school located
on an Indian reservation, at the direction of the tribal gov-
erning body, the relevant school boards of the Bureau fund-
ed schools on the reservation may, by mutual consent, estab-
lish the relevant attendance areas for such schools, subject
to the approval of the tribal governing body. Any such
boundaries so established shall be accepted by the Secretary.
‘‘(c) BOUNDARY REVISIONS.—
‘‘(1) IN GENERAL.—On or after July 1, 2001, no
geographical attendance area shall be revised or estab-
lished with respect to any Bureau funded school un-
less the tribal governing body or the local school board
concerned (if so designated by the tribal governing
body) has been afforded—
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•HR 1 RH1&2
‘‘(A) at least 6 months notice of the inten-
tion of the Bureau to revise or establish such at-
tendance area; and
‘‘(B) the opportunity to propose alternative
boundaries.
Any tribe may petition the Secretary for revision of
existing attendance area boundaries. The Secretary
shall accept such proposed alternative or revised
boundaries unless the Secretary finds, after consulta-
tion with the affected tribe or tribes, that such revised
boundaries do not reflect the needs of the Indian stu-
dents to be served or do not provide adequate stability
to all of the affected programs. The Secretary shall
cause such revisions to be published in the Federal
Register.
‘‘(2) TRIBAL
RESOLUTION
DETERMINATION.—
Nothing in this section shall be interpreted as denying
a tribal governing body the authority, on a con-
tinuing basis, to adopt a tribal resolution allowing
parents the choice of the Bureau funded school their
children may attend, regardless of the attendance
boundaries established under this section.
‘‘(d) FUNDING RESTRICTIONS.—The Secretary shall
not deny funding to a Bureau funded school for any eligible
Indian student attending the school solely because that stu-
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•HR 1 RH1&2
dent’s home or domicile is outside of the geographical at-
tendance area established for that school under this section.
No funding shall be made available without tribal author-
ization to enable a school to provide transportation for any
student to or from the school and a location outside the ap-
proved attendance area of the school.
‘‘(e) RESERVATION AS BOUNDARY.—In any case where
there is only one Bureau funded program located on an In-
dian reservation, the attendance area for the program shall
be the boundaries (established by treaty, agreement, legisla-
tion, court decisions, or executive decisions and as accepted
by the tribe) of the reservation served, and those students
residing near the reservation shall also receive services from
such program.
‘‘(f) OFF-RESERVATION HOME-LIVING (DORMITORY)
SCHOOLS.—Notwithstanding any geographical attendance
areas, attendance at off-reservation home-living (dormitory)
schools shall include students requiring special emphasis
programs to be implemented at each off-reservation home-
living (dormitory) school. Such attendance shall be coordi-
nated between education line officers, the family, and the
referring and receiving programs.
‘‘SEC. 1125. FACILITIES CONSTRUCTION.
‘‘(a) COMPLIANCE WITH HEALTH AND SAFETY STAND-
ARDS.—The Secretary shall immediately begin to bring all
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•HR 1 RH1&2
schools, dormitories, and other Indian education-related fa-
cilities operated by the Bureau or under contract or grant
with the Bureau into compliance with all applicable tribal,
Federal, or State health and safety standards, whichever
provides greater protection (except that the tribal standards
to be applied shall be no greater than any otherwise appli-
cable Federal or State standards), with section 504 of the
Rehabilitation Act of 1973, and with the Americans with
Disabilities Act of 1990. Nothing in this section shall re-
quire termination of the operations of any facility which
does not comply with such provisions and which is in use
on the date of the enactment of the No Child Left Behind
Act of 2001.
‘‘(b) COMPLIANCE PLAN.—At the time that the annual
budget request for Bureau educational services is presented,
the Secretary shall submit to the appropriate committees
of Congress a detailed plan to bring all facilities covered
under subsection (a) of this section into compliance with
the standards referred to in subsection (a). Such plan shall
include detailed information on the status of each facility’s
compliance with such standards, specific cost estimates for
meeting such standards at each school, and specific
timelines for bringing each school into compliance with
such standards.
‘‘(c) CONSTRUCTION PRIORITIES.—
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•HR 1 RH1&2
‘‘(1) SYSTEM
TO
ESTABLISH
PRIORITIES.—On
an annual basis the Secretary shall submit to the ap-
propriate committees of Congress and cause to be pub-
lished in the Federal Register, the system used to es-
tablish priorities for replacement and construction
projects for Bureau funded schools and home-living
schools, including boarding schools and dormitories.
At the time any budget request for education is pre-
sented, the Secretary shall publish in the Federal Reg-
ister and submit with the budget request the current
list of all Bureau funded school construction prior-
ities.
‘‘(2) LONG-TERM CONSTRUCTION AND REPLACE-
MENT LIST.—In addition to the plan submitted under
subsection (b), the Secretary shall—
‘‘(A) not later than 18 months after the date
of the enactment of the No Child Left Behind Act
of 2001, establish a long-term construction and
replacement list for all Bureau funded schools;
‘‘(B) using the list prepared under subpara-
graph (A), propose a list for the orderly replace-
ment of all Bureau funded education-related fa-
cilities over a period of 40 years to enable plan-
ning and scheduling of budget requests;
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•HR 1 RH1&2
‘‘(C) cause the list prepared under sub-
section (B) to be published in the Federal Reg-
ister and allow a period of not less than 120
days for public comment;
‘‘(D) make such revisions to the list pre-
pared under subparagraph (B) as are appro-
priate based on the comments received; and
‘‘(E) cause the final list to be published in
the Federal Register.
‘‘(3) EFFECT ON OTHER LIST.—Nothing in this
section shall be construed as interfering with or
changing in any way the construction priority list as
it exists on the date of the enactment of the No Child
Left Behind Act of 2001.
‘‘(d) HAZARDOUS CONDITION AT BUREAU SCHOOL.—
‘‘(1) CLOSURE OR CONSOLIDATION.—A Bureau
funded school may be closed or consolidated, and the
programs of a Bureau funded school may be substan-
tially curtailed by reason of plant conditions that
constitute an immediate hazard to health and safety
only if a health and safety officer of the Bureau deter-
mines that such conditions exist at the Bureau funded
school.
‘‘(2) INSPECTION.—(A) After making a deter-
mination described in paragraph (1), the Bureau
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•HR 1 RH1&2
health and safety officer shall conduct an inspection
of the condition of such plant accompanied by an ap-
propriate tribal, county, municipal, or State health
and safety officer in order to determine whether con-
ditions at such plant constitute an immediate hazard
to health and safety. Such inspection shall be com-
pleted by not later than the date that is 30 days after
the date on which the action described in paragraph
(1) is taken. No further negative action may be taken
unless the findings are concurred in by the second,
non-Bureau of Indian Affairs inspector.
‘‘(B) If the health and safety officer conducting
the inspection of a plant required under subpara-
graph (A) determines that conditions at the plant do
not constitute an immediate hazard to health and
safety, any consolidation or curtailment that was
made under paragraph (1) shall immediately cease
and any school closed by reason of conditions at the
plant shall be reopened immediately.
‘‘(C) If a Bureau funded school is temporarily
closed or consolidated or the programs of a Bureau
funded school are substantially curtailed under this
subsection and the Secretary determines that the clo-
sure, consolidation, or curtailment will exceed 1 year,
the Secretary shall submit to the Congress, by not
521
•HR 1 RH1&2
later than 6 months after the date on which the clo-
sure, consolidation, or curtailment was initiated, a
report which sets forth the reasons for such temporary
actions, the actions the Secretary is taking to elimi-
nate the conditions that constitute the hazard, and an
estimated date by which such actions will be con-
cluded.
‘‘(e) FUNDING REQUIREMENT.—
‘‘(1) DISTRIBUTION OF FUNDS.—Beginning with
the fiscal year following the year of the date of the en-
actment of the No Child Left Behind Act of 2001, all
funds appropriated for the operations and mainte-
nance of Bureau funded schools shall be distributed by
formula to the schools. No funds from this account
may be retained or segregated by the Bureau to pay
for administrative or other costs of any facilities
branch or office, at any level of the Bureau.
‘‘(2) REQUIREMENTS
FOR
CERTAIN
USES.—No
funds shall be withheld from the distribution to the
budget of any school operated under contract or grant
by the Bureau for maintenance or any other facilities
or road related purpose, unless such school has con-
sented, as a modification to the contract or in writing
for grants schools, to the withholding of such funds,
including the amount thereof, the purpose for which
522
•HR 1 RH1&2
the funds will be used, and the timeline for the serv-
ices to be provided. The school may, at the end of any
fiscal year, cancel an agreement under this paragraph
upon giving the Bureau 30 days notice of its intent
to do so.
‘‘(f) NO REDUCTION IN FEDERAL FUNDING.—Nothing
in this section shall be construed to diminish any Federal
funding due to the receipt by the school of funding for facili-
ties improvement or construction from a State or any other
source.
‘‘SEC. 1126. BUREAU OF INDIAN AFFAIRS EDUCATION FUNC-
TIONS.
‘‘(a) FORMULATION AND ESTABLISHMENT OF POLICY
AND PROCEDURE; SUPERVISION OF PROGRAMS AND EX-
PENDITURES.—The Secretary shall vest in the Assistant
Secretary for Indian Affairs all functions with respect to
formulation and establishment of policy and procedure and
supervision of programs and expenditures of Federal funds
for the purpose of Indian education administered by the
Bureau. The Assistant Secretary shall carry out such func-
tions through the Director of the Office of Indian Education
Programs.
‘‘(b) DIRECTION AND SUPERVISION OF PERSONNEL
OPERATIONS.—Not later than 6 months after the date of
the enactment of the No Child Left Behind Act of 2001, the
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•HR 1 RH1&2
Director of the Office of Indian Education Programs shall
direct and supervise the operations of all personnel directly
and substantially involved in the provision of education
services by the Bureau, including school or institution cus-
todial or maintenance personnel, facilities management,
contracting, procurement, and finance personnel. The As-
sistant Secretary for Indian Affairs shall coordinate the
transfer of functions relating to procurement, contracts, op-
eration, and maintenance of schools and other support func-
tions to the Director.
‘‘(c) EVALUATION OF PROGRAMS; SERVICES AND SUP-
PORT FUNCTIONS; TECHNICAL AND COORDINATING ASSIST-
ANCE.—Education personnel who are under the direction
and supervision of the Director of the Office of Indian Edu-
cation Programs in accordance with the first sentence of
subsection (b) shall—
‘‘(1) monitor and evaluate Bureau education
programs;
‘‘(2) provide all services and support functions
for education programs with respect to personnel mat-
ters involving staffing actions and functions; and
‘‘(3) provide technical and coordinating assist-
ance in areas such as procurement, contracting, budg-
eting, personnel, curriculum, and operation and
maintenance of school facilities.
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•HR 1 RH1&2
‘‘(d) CONSTRUCTION, IMPROVEMENT, OPERATION, AND
MAINTENANCE OF FACILITIES.—
‘‘(1) PLAN FOR CONSTRUCTION.—The Assistant
Secretary shall submit in the annual budget a plan—
‘‘(A) for school facilities to be constructed
under section 1125(c);
‘‘(B) for establishing priorities among
projects and for the improvement and repair of
educational facilities, which together shall form
the basis for the distribution of appropriated
funds; and
‘‘(C) for capital improvements to be made
over the five succeeding years.
‘‘(2) PROGRAM
FOR
OPERATION
AND
MAINTE-
NANCE.—
‘‘(A) ESTABLISHMENT.—The Assistant Sec-
retary shall establish a program, including the
distribution of appropriated funds, for the oper-
ation and maintenance of education facilities.
Such program shall include—
‘‘(i) a method of computing the
amount necessary for each educational facil-
ity;
‘‘(ii) similar treatment of all Bureau
funded schools;
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•HR 1 RH1&2
‘‘(iii) a notice of an allocation of ap-
propriated funds from the Director of the
Office of Indian Education Programs di-
rectly to the education line officers and ap-
propriate school officials;
‘‘(iv) a method for determining the
need for, and priority of, facilities repair
and maintenance projects, both major and
minor. In making such determination, the
Assistant Secretary shall cause to be con-
ducted a series of meetings at the agency
and area level with representatives of the
Bureau funded schools in those areas and
agencies to receive comment on the lists and
prioritization of such projects; and
‘‘(v) a system for the conduct of routine
preventive maintenance.
‘‘(B) LOCAL
SUPERVISORS.—The appro-
priate education line officers shall make arrange-
ments for the maintenance of education facilities
with the local supervisors of the Bureau mainte-
nance personnel. The local supervisors of Bureau
maintenance personnel shall take appropriate
action to implement the decisions made by the
appropriate education line officers, except that
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•HR 1 RH1&2
no funds under this chapter may be authorized
for expenditure unless such appropriate edu-
cation line officer is assured that the necessary
maintenance has been, or will be, provided in a
reasonable manner.
‘‘(3) IMPLEMENTATION.—The requirements of
this subsection shall be implemented as soon as prac-
ticable after the date of the enactment of the No Child
Left Behind Act of 2001.
‘‘(e) ACCEPTANCE OF GIFTS AND BEQUESTS.—Not-
withstanding any other provision of law, the Director shall
promulgate guidelines for the establishment of mechanisms
for the acceptance of gifts and bequests for the use and ben-
efit of particular schools or designated Bureau operated
education programs, including, where appropriate, the es-
tablishment and administration of trust funds. When a Bu-
reau operated program is the beneficiary of such a gift or
bequest, the Director shall make provisions for monitoring
its use and shall report to the appropriate committees of
Congress the amount and terms of such gift or bequest, the
manner in which such gift or bequest shall be used, and
any results achieved by such action.
‘‘(f) FUNCTIONS CLARIFIED.—For the purpose of this
section, the term ‘functions’ includes powers and duties.
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•HR 1 RH1&2
‘‘SEC. 1127. ALLOTMENT FORMULA.
‘‘(a) FACTORS CONSIDERED; REVISION TO REFLECT
STANDARDS.—
‘‘(1) FORMULA.—The Secretary shall establish,
by regulation adopted in accordance with section
1138A, a formula for determining the minimum an-
nual amount of funds necessary to sustain each Bu-
reau funded school. In establishing such formula, the
Secretary shall consider—
‘‘(A) the number of eligible Indian students
served and total student population of the school;
‘‘(B) special cost factors, such as—
‘‘(i) the isolation of the school;
‘‘(ii) the need for special staffing,
transportation, or educational programs;
‘‘(iii) food and housing costs;
‘‘(iv) maintenance and repair costs as-
sociated with the physical condition of the
educational facilities;
‘‘(v) special transportation and other
costs of isolated and small schools;
‘‘(vi) the costs of home-living (dor-
mitory) arrangements, where determined
necessary by a tribal governing body or des-
ignated school board;
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•HR 1 RH1&2
‘‘(vii) costs associated with greater
lengths of service by education personnel;
‘‘(viii) the costs of therapeutic pro-
grams for students requiring such programs;
and
‘‘(ix) special costs for gifted and tal-
ented students;
‘‘(C) the cost of providing academic services
which are at least equivalent to those provided
by public schools in the State in which the school
is located; and
‘‘(D) such other relevant factors as the Sec-
retary determines are appropriate.
‘‘(2) REVISION OF FORMULA.—Upon the estab-
lishment of the standards required in sections 1121
and 1122, the Secretary shall revise the formula es-
tablished under this subsection to reflect the cost of
funding such standards. Not later than January 1,
2003, the Secretary shall review the formula estab-
lished under this section and shall take such steps as
are necessary to increase the availability of coun-
seling and therapeutic programs for students in off-
reservation home-living (dormitory) schools and other
Bureau operated residential facilities. Concurrent
with such action, the Secretary shall review the stand-
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•HR 1 RH1&2
ards established under section 1122 to be certain that
adequate provision is made for parental notification
regarding, and consent for, such counseling and
therapeutic programs.
‘‘(b) PRO RATA ALLOTMENT.—Notwithstanding any
other provision of law, Federal funds appropriated for the
general local operation of Bureau funded schools shall be
allotted pro rata in accordance with the formula established
under subsection (a).
‘‘(c) ANNUAL ADJUSTMENT; RESERVATION OF AMOUNT
FOR SCHOOL BOARD ACTIVITIES.—
‘‘(1) ANNUAL
ADJUSTMENT.—For fiscal year
2003, and for each subsequent fiscal year, the Sec-
retary shall adjust the formula established under sub-
section (a) to ensure that the formula does the fol-
lowing:
‘‘(A) Uses a weighted unit of 1.2 for each el-
igible Indian student enrolled in the seventh and
eighth grades of the school in considering the
number of eligible Indian students served by the
school.
‘‘(B) Considers a school with an enrollment
of less than 50 eligible Indian students as having
an average daily attendance of 50 eligible Indian
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students for purposes of implementing the adjust-
ment factor for small schools.
‘‘(C) Takes into account the provision of
residential services on less than a 9-month basis
at a school when the school board and supervisor
of the school determine that a less than 9-month
basis will be implemented for the school year in-
volved.
‘‘(D) Uses a weighted unit of 2.0 for each
eligible Indian student that—
‘‘(i) is gifted and talented; and
‘‘(ii) is enrolled in the school on a full-
time basis,
in considering the number of eligible Indian stu-
dents served by the school.
‘‘(E) Uses 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 lan-
guage as part of the regular curriculum of a
school, in considering the number of eligible In-
dian students served by such school. The adjust-
ment required under this subparagraph shall be
used for such school after—
‘‘(i) the certification of the Indian or
Native language curriculum by the school
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•HR 1 RH1&2
board of such school to the Secretary, to-
gether with an estimate of the number of
full-time students expected to be enrolled in
the curriculum in the second school year for
which the certification is made; and
(ii) the funds appropriated for allot-
ment under this section are designated by
the appropriations Act appropriating such
funds as the amount necessary to implement
such adjustment at such school without re-
ducing allotments made under this section
to any school by virtue of such adjustment.
‘‘(2) RESERVATION OF AMOUNT.—
‘‘(A) IN GENERAL.—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) $8,000; or
‘‘(ii) the lesser of—
‘‘(I) $15,000; or
‘‘(II) 1 percent of such allotted
funds,
for school board activities for such school, includ-
ing (notwithstanding any other provision of law)
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•HR 1 RH1&2
meeting expenses and the cost of membership in,
and support of, organizations engaged in activi-
ties on behalf of Indian education.
‘‘(B) TRAINING.—Each school board shall
see that each new member of the school board re-
ceives, within 12 months of the individual’s as-
suming a position on the school board, 40 hours
of training relevant to that individual’s service
on the board. Such training may include legal
issues pertaining to schools funded by the Bu-
reau, legal issues pertaining to school boards,
ethics, and other topics deemed appropriate by
the school board.
‘‘(d) RESERVATION OF AMOUNT FOR EMERGENCIES.—
The Secretary shall reserve from the funds available for dis-
tribution 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
of Indian Education Programs, to meet emergencies and
unforeseen contingencies affecting the education programs
funded under this section. Funds reserved under this sub-
section may only be expended for education services or pro-
grams, including emergency repairs of educational facili-
ties, at a schoolsite (as defined by section 5204(c)(2) of the
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•HR 1 RH1&2
Tribally Controlled Schools Act of 1988). Funds reserved
under this subsection shall remain available without fiscal
year limitation until expended. However, the aggregate
amount available from all fiscal years may not exceed 1
percent of the current year funds. Whenever, the Secretary
makes funds available under this subsection, the Secretary
shall report such action to the appropriate committees of
Congress within the annual budget submission.
‘‘(e) 
SUPPLEMENTAL
APPROPRIATIONS.—Supple-
mental appropriations enacted to meet increased pay costs
attributable to school level personnel shall be distributed
under this section.
‘‘(f) ELIGIBLE INDIAN STUDENT DEFINED.—For the
purpose of this section, the term ‘eligible Indian student’
means a student who—
‘‘(1) is a member of or is at least one-fourth de-
gree Indian blood descendant of a member of an In-
dian tribe which is eligible for the special programs
and services provided by the United States through
the Bureau 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-res-
ervation home-living (dormitory) school.
‘‘(g) TUITION.—
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‘‘(1) IN GENERAL.—An eligible Indian student
may not be charged tuition for attendance at a Bu-
reau school or contract or grant school. A student at-
tending a Bureau school under paragraph (2)(C) may
not be charged tuition for attendance at such a school.
‘‘(2) ATTENDANCE OF NON-INDIAN STUDENTS AT
BUREAU SCHOOLS.—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 stu-
dent’s attendance will not adversely affect the
school’s program for eligible Indian students be-
cause of cost, overcrowding, or violation of stand-
ards or accreditation;
‘‘(B) the school board consents;
‘‘(C) the student is a dependent of a Bu-
reau, Indian Health Service, or tribal govern-
ment employee who lives on or near the
schoolsite; 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,
and shall be in addition to the school’s allocation
under this section.
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•HR 1 RH1&2
‘‘(3) ATTENDANCE OF NON-INDIAN STUDENTS AT
CONTRACT AND GRANT SCHOOLS.—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 shall be in addition
to funding received under this section.
‘‘(h) FUNDS AVAILABLE WITHOUT FISCAL YEAR LIMI-
TATION.—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 re-
main available to the school for expenditure without fiscal
year limitation. The Assistant Secretary shall take steps as
may be necessary to implement this provision.
‘‘(i) STUDENTS
AT RICHFIELD DORMITORY, RICH-
FIELD, UTAH.—Tuition for out-of-State Indian students in
home-living (dormitory) arrangements at the Richfield dor-
mitory in Richfield, Utah, who attend Sevier County high
schools in Richfield, Utah, shall be paid from the Indian
school equalization program funds authorized in this sec-
tion and section 1130 at a rate not to exceed the amounts
per weighted student unit for that year for the instruction
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•HR 1 RH1&2
of such students. No additional administrative cost funds
shall be added to the grant.
‘‘SEC. 1128. ADMINISTRATIVE COST GRANTS.
‘‘(a) 
GRANTS; 
EFFECT
UPON
APPROPRIATED
AMOUNTS.—
‘‘(1) GRANTS.—Subject to the availability of ap-
propriated funds, the Secretary shall provide grants
to each tribe or tribal organization operating a con-
tract school or grant school in the amount determined
under this section with respect to the tribe or tribal
organization for the purpose of paying the adminis-
trative and indirect costs incurred in operating con-
tract or grant schools, provided that no school oper-
ated as a stand-alone institution shall receive less
than $200,000 per year for these purposes, in order
to—
‘‘(A) enable tribes and tribal organizations
operating such schools, without reducing direct
program services to the beneficiaries of the pro-
gram, to provide all related administrative over-
head services and operations necessary to meet
the requirements of law and prudent manage-
ment practice; and
‘‘(B) carry out other necessary support
functions which would otherwise be provided by
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•HR 1 RH1&2
the Secretary or other Federal officers or employ-
ees, from resources other than direct program
funds, in support of comparable Bureau operated
programs.
‘‘(2) EFFECT UPON APPROPRIATED AMOUNTS.—
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) DETERMINATION OF GRANT AMOUNT.—
‘‘(1) IN
GENERAL.—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 administra-
tive cost percentage rate determined under subsection
(c) does not apply to other programs operated by the
tribe or tribal organization.
‘‘(2) DIRECT COST BASE FUNDS.—The Secretary
shall—
‘‘(A) reduce the amount of the grant deter-
mined under paragraph (1) to the extent that
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•HR 1 RH1&2
payments for administrative costs are actually
received by an Indian tribe or tribal organiza-
tion under any Federal education program in-
cluded in the direct cost base of the tribe or trib-
al 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 de-
partment or agency.
‘‘(c) ADMINISTRATIVE COST PERCENTAGE RATE.—
‘‘(1) IN GENERAL.—For purposes of this section,
the administrative cost percentage rate for a contract
or grant school for a fiscal year is equal to the per-
centage 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 fis-
cal year, multiplied by
‘‘(II) the minimum base rate; plus
‘‘(ii) the amount equal to—
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•HR 1 RH1&2
‘‘(e) AVAILABILITY
OF FUNDS.—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 limitation
and without diminishing the amount of any grants other-
wise payable to the school under this section for any fiscal
year beginning after the fiscal year for which the grant is
provided.
‘‘(f) TREATMENT
OF
FUNDS.—Funds received as
grants under this section for Bureau funded programs oper-
ated 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.
‘‘(g) TREATMENT OF ENTITY OPERATING OTHER PRO-
GRAMS.—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—
‘‘(1) receives funds under this section for admin-
istrative costs incurred in operating a contract or
grant school or a school operated under the Tribally
Controlled Schools Act of 1988; and
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•HR 1 RH1&2
‘‘(2) operates one 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
organization is provided with the full amount of the admin-
istrative costs that are associated with operating the con-
tract or grant school, and of the indirect costs, that are asso-
ciated with all of such other programs, provided 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.
‘‘(h) DEFINITIONS.—For purposes of this section:
‘‘(1) ADMINISTRATIVE COST.—(A) The term ‘ad-
ministrative cost’ means the costs of necessary admin-
istrative 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 com-
parable Bureau operated programs out of direct
program funds; and
‘‘(iii) are either—
‘‘(I) normally provided for comparable
Bureau programs by Federal officials using
542
•HR 1 RH1&2
resources other than Bureau direct program
funds; or
‘‘(II) are otherwise required of tribal
self-determination program operators by
law or prudent management practice.
‘‘(B) The term ‘administrative cost’ may
include—
‘‘(i) contract or grant (or other agreement)
administration;
‘‘(ii) executive, policy, and corporate leader-
ship and decisionmaking;
‘‘(iii) program planning, development, and
management;
‘‘(iv) fiscal, personnel, property, and pro-
curement management;
‘‘(v) related office services and record keep-
ing; and
‘‘(vi) costs of necessary insurance, auditing,
legal, safety and security services.
‘‘(2) BUREAU
ELEMENTARY
AND
SECONDARY
FUNCTIONS.—The term ‘Bureau elementary and sec-
ondary functions’ means—
‘‘(A) all functions funded at Bureau schools
by the Office;
‘‘(B) all programs—
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•HR 1 RH1&2
‘‘(i) funds for which are appropriated
to other agencies 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) DIRECT COST BASE.—(A) Except as other-
wise provided in 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 pro-
grams 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 oper-
ated by the tribe or tribal organization during
the two preceding fiscal years, the first fiscal
year preceding such fiscal year.
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•HR 1 RH1&2
‘‘(B) In the case of Bureau elementary or sec-
ondary education functions which have not previously
been operated by a tribe or tribal organization under
contract, grant, or agreement with the Bureau, the di-
rect cost base for the initial year shall be the projected
aggregate direct cost program funding for all Bureau
elementary and secondary functions to be operated by
the tribe or tribal organization during that fiscal
year.
‘‘(4) MAXIMUM
BASE
RATE.—The term ‘max-
imum base rate’ means 50 percent.
‘‘(5) MINIMUM
BASE
RATE.—The term ‘min-
imum base rate’ means 11 percent.
‘‘(6) STANDARD DIRECT COST BASE.—The term
‘standard direct cost base’ means $600,000.
‘‘(7) TRIBAL ELEMENTARY OR SECONDARY EDU-
CATIONAL PROGRAMS.—The term ‘tribal elementary
or secondary educational programs’ means all Bureau
elementary and secondary functions, 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 ex-
pended through the Bureau, funds for major sub-
contracts, construction, and other major capital ex-
penditures, and unexpended funds carried over from
545
•HR 1 RH1&2
prior years) which share common administrative cost
functions, that are operated directly by a tribe or
tribal organization under a contract, grant, or agree-
ment with the Bureau.
‘‘(i) STUDIES FOR DETERMINATION OF FACTORS AF-
FECTING COSTS; BASE RATES LIMITS; STANDARD DIRECT
COST BASE; REPORT TO CONGRESS.—
‘‘(1) STUDIES.—Not later than 120 days after
the date of the enactment of the No Child Left Behind
Act of 2001, the Director of the Office of Indian Edu-
cation Programs shall—
‘‘(A) conduct such studies as may be needed
to establish an empirical basis for determining
relevant factors substantially affecting required
administrative costs of tribal elementary and
secondary education 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 provide adequate (but not exces-
sive) funding of the administrative costs of the
smallest tribal elementary or secondary edu-
cational programs;
546
•HR 1 RH1&2
‘‘(ii) a minimum base rate which ensures
that the amount of the grants provided under
this section will provide adequate (but not exces-
sive) funding of the administrative costs of the
largest tribal elementary or secondary edu-
cational programs; and
‘‘(iii) a standard direct cost base which is
the aggregate direct cost funding level for which
the percentage determined 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 pro-
vide adequate (but not excessive) funding of
the administrative costs of tribal elementary
or secondary educational programs closest
to the size of the program.
‘‘(2) GUIDELINES.—The studies required under
paragraph (1) shall—
‘‘(A) be conducted in full consultation (in
accordance with section 1131) with—
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•HR 1 RH1&2
‘‘(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 trib-
al organizations are typically members;
‘‘(B) be conducted onsite with a representa-
tive statistical sample of the tribal elementary or
secondary educational programs under a con-
tract entered into with a nationally reputable
public accounting and business consulting firm;
‘‘(C) take into account the availability of
skilled labor; commodities, business and auto-
matic data processing services, related Indian
preference and Indian control of education re-
quirements, 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 activi-
ties can reasonably be delivered in a cost effective
manner for each such program, given an admin-
istrative cost allowance generated by the values,
percentages, or other factors found in the studies
to be relevant in such formula;
548
•HR 1 RH1&2
‘‘(D) identify, and quantify in terms of per-
centages of direct program costs, any general fac-
tors arising from geographic isolation, or num-
bers of programs administered, independent of
program size factors used to compute a base ad-
ministrative cost percentage in such formula;
and
‘‘(E) identify any other incremental cost
factors substantially affecting the costs of re-
quired administrative cost functions at any of
the tribal elementary or secondary educational
programs studied and determine whether the fac-
tors are of general applicability to other such
programs, and (if so) how the factors may effec-
tively be incorporated into such formula.
‘‘(3) CONSULTATION
WITH
INSPECTOR
GEN-
ERAL.—In carrying out the studies required under
this subsection, the Director shall obtain the input of,
and afford an opportunity to participate to, the In-
spector General of the Department of the Interior.
‘‘(4) CONSIDERATION OF DELIVERY OF ADMINIS-
TRATIVE
SERVICES.—Determinations described in
paragraph (2)(C) shall be based on what is prac-
ticable at each location studied, given prudent man-
agement practice, irrespective of whether required ad-
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•HR 1 RH1&2
ministrative services were actually or fully delivered
at these sites, or whether other services were delivered
instead, during the period of the study.
‘‘(5) REPORT.—Upon completion of the studies
conducted under paragraph (1), the Director shall
submit to Congress a report on the findings of the
studies, together with determinations based upon such
studies that would affect the definitions set forth
under subsection (e) that are used in the formula set
forth in subsection (c).
‘‘(6) PROJECTION
OF
COSTS.—The Secretary
shall include in the Bureau’s justification for each
appropriations request beginning in the first fiscal
year after the completion of the studies conducted
under paragraph (1), a projection of the overall costs
associated with the formula set forth in subsection (c)
for all tribal elementary or secondary education pro-
grams which the Secretary expects to be funded in the
fiscal year for which the appropriations are sought.
‘‘(7) DETERMINATION OF PROGRAM SIZE.—For
purposes of this subsection, the size of tribal elemen-
tary or secondary educational programs is determined
by the aggregate direct cost program funding level for
all Bureau funded programs which share common ad-
ministrative cost functions.
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•HR 1 RH1&2
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated such sums as necessary to carry out this
section.
‘‘(2) REDUCTIONS.—If the total amount of funds
necessary to provide grants to tribes and tribal orga-
nizations in the amounts determined under subsection
(b) for a fiscal year exceeds the amount of funds ap-
propriated 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 relationship
to such excess as the amount of such grants deter-
mined under subsection (b) bears to the total of all
grants determined under subsection (b) section for all
tribes and tribal organizations for such fiscal year.
‘‘(k) APPLICABILITY TO SCHOOLS OPERATING UNDER
TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.—The pro-
visions of this section shall also apply to those schools oper-
ating under the Tribally Controlled Schools Act of 1988.
‘‘SEC. 1129. DIVISION OF BUDGET ANALYSIS.
‘‘(a) ESTABLISHMENT.—Not later than 12 months
after the date of the enactment of the No Child Left Behind
Act of 2001, the Secretary shall establish within the Office
of Indian Education Programs a Division of Budget Anal-
551
•HR 1 RH1&2
ysis (hereinafter referred to as the ‘Division’). Such Divi-
sion shall be under the direct supervision and control of
the Director of the Office.
‘‘(b) FUNCTIONS.—In consultation with the tribal gov-
erning bodies and tribal school boards, the Director of the
Office, through the Division, shall conduct studies, surveys,
or other activities to gather demographic information on
Bureau funded schools and project the amount necessary to
provide Indian students in such schools the educational pro-
gram set forth in this part.
‘‘(c) ANNUAL REPORTS.—Not later than the date that
the Assistant Secretary for Indian Affairs makes the annual
budget submission, for each fiscal year after the date of the
enactment of the No Child Left Behind Act of 2001, the Di-
rector of the Office shall submit to the appropriate commit-
tees of Congress (including the Appropriations committees),
all Bureau funded schools, and the tribal governing bodies
of such schools, a report which shall contain—
‘‘(1) projections, based upon the information
gathered pursuant to subparagraph (b) and any other
relevant information, of amounts necessary to provide
Indian students in Bureau funded schools the edu-
cational program set forth in this part;
552
•HR 1 RH1&2
‘‘(2) a description of the methods and formulas
used to calculate the amounts projected pursuant to
paragraph (1); and
‘‘(3) such other information as the Director of
the Office considers appropriate.
‘‘(d) USE OF REPORTS.—The Director of the Office
and the Assistant Secretary for Indian Affairs shall use the
annual report required by subsection (c) when preparing
their annual budget submissions.
‘‘SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.
‘‘(a) ESTABLISHMENT
OF SYSTEM
AND FORWARD
FUNDING.—
‘‘(1) IN GENERAL.—The Secretary shall establish,
by regulation adopted in accordance with section
1138, 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) 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
553
•HR 1 RH1&2
fiscal year in which such amounts are appropriated
without further action by the Secretary, and shall re-
main available for obligation through the succeeding
fiscal year.
‘‘(B) The Secretary shall, on the basis of the
amount appropriated in accordance with this
paragraph—
‘‘(i) publish, not later than 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 the ac-
tual 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—
554
•HR 1 RH1&2
‘‘(i) the cost for any single item purchased
does not exceed $15,000;
‘‘(ii) the school board approves the procure-
ment;
‘‘(iii) the supervisor certifies that the cost is
fair and reasonable;
‘‘(iv) the documents relating to the procure-
ment 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 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 relevant.
‘‘(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 su-
pervisor 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.
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•HR 1 RH1&2
‘‘(C) The Director shall be responsible for deter-
mining the application of this paragraph, including
the authorization of specific individuals to carry out
this paragraph, and shall be responsible for the provi-
sion 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 Budget
and Emergency Deficit Control Act of 1985 reduces
the amount of funds available for allotment under sec-
tion 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) 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 Bureau
school; and
‘‘(B) the Secretary may waive the applica-
tion of the provisions of section 1121(h) with re-
spect to the closure or consolidation of a school,
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•HR 1 RH1&2
or the curtailment of a program at a school, dur-
ing such fiscal year if the funds described in
clauses (i) and (ii) of subparagraph (A) with re-
spect to such school are used to fund allotments
made under section 1127 for such fiscal year.
‘‘(b) LOCAL FINANCIAL PLANS FOR EXPENDITURE OF
FUNDS.—
‘‘(1) PLAN REQUIRED.—In the case of all Bureau
operated schools, allotted funds shall be expended on
the basis of local financial plans which ensure meet-
ing the accreditation requirements or standards for
the school established pursuant to section 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, 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.
‘‘(2) The supervisor—
‘‘(A) shall put into effect the decisions of the
school board;
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•HR 1 RH1&2
‘‘(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
‘‘(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 re-
spond, in writing, to such appeal. After review-
ing such written appeal and response, the appro-
priate 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 su-
pervisor identifying the reasons for overturning
such action.
‘‘(c) 
USE
OF
SELF-DETERMINATION
GRANTS
FUNDS.—Funds for self-determination grants under section
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•HR 1 RH1&2
103(a)(2) of the Indian Self-Determination and Education
Assistance Act shall not be used for providing technical as-
sistance and training in the field of education by the Bu-
reau unless such services are provided in accordance with
a plan, agreed to by the tribe or tribes affected and the Bu-
reau, under which control of education programs is in-
tended to be transferred to such tribe or tribes within a spe-
cific period of time negotiated under such agreement. The
Secretary may approve applications for funding tribal di-
visions of education and development of tribal codes of edu-
cation from funds appropriated pursuant 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 greatest extent
possible, provide such services, and make appropriate provi-
sions in the budget of the Office for such services.
‘‘(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 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
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•HR 1 RH1&2
school. Any such program may include activities re-
lated to the prevention of alcohol and substance abuse.
The Assistant Secretary for Indian Affairs shall pro-
vide for the utilization of any such school facility
during any summer in which such utilization is re-
quested.
‘‘(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 pro-
gram at the option, and under the control, of the tribe
or Indian controlled school receiving such funds.
‘‘(3) TECHNICAL ASSISTANCE AND PROGRAM CO-
ORDINATION.—The Assistant Secretary for Indian Af-
fairs, 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) COOPERATIVE AGREEMENTS.—
‘‘(1) IN GENERAL.—From funds allotted to a Bu-
reau school under section 1127, the Secretary shall, if
specifically requested by the tribal governing body (as
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•HR 1 RH1&2
defined in section 1141), 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 deter-
mine the terms of the agreement. Such agreement may
encompass coordination of all or any part of the fol-
lowing:
‘‘(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 pro-
vided in paragraph (1) shall confer a benefit upon the
Bureau school commensurate with the burden as-
sumed, 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
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•HR 1 RH1&2
is agreement on action between the superintendent and the
school board of a Bureau funded school, the product or re-
sult 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 MATCH-
ING REQUIREMENTS.—Notwithstanding any other provi-
sion of law, funds received by a Bureau funded school under
this part shall not be considered Federal funds for the pur-
poses of meeting a matching funds requirement for any Fed-
eral 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 be-
tween the Bureau and all interested parties. During
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•HR 1 RH1&2
such discussions and joint deliberations, interested
parties (including tribes and school officials) shall be
given an opportunity to present issues including pro-
posals regarding changes in current practices or pro-
grams 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 effect un-
less the Secretary determines, from information avail-
able from or presented by the interested parties dur-
ing 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 written explanation of any
decision made by the Secretary which is not con-
sistent 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-
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•HR 1 RH1&2
ees, shall not apply to educators or to education positions
(as defined in subsection (p)).
‘‘(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—
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•HR 1 RH1&2
that such a person be hired shall be instituted
supervisor; and
‘‘(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 Sec-
retary 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 qualified ap-
plicants available, such supervisor may consult
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•HR 1 RH1&2
the national list maintained pursuant to sub-
section (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;
‘‘(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 determination by
such school board that such individual should or
should not be so employed shall be instituted by
the supervisor (or with respect to the position of
supervisor, by the agency superintendent for edu-
cation);
‘‘(C) that before an individual may be em-
ployed in an education position at the agency
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•HR 1 RH1&2
level, the appropriate agency school board shall
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 Director),
the national school boards representing all Bu-
reau 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 in-
dividual has applied at the national level for an edu-
cation 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 sen-
tence of this paragraph. Notwithstanding subsection
(e), 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
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•HR 1 RH1&2
has applied at the national level for an education po-
sition in the Bureau, the appointment of such indi-
vidual at the local level shall be conditional for a pe-
riod of 90 days, during which period the Secretary
may appoint a more qualified individual (as deter-
mined 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 ap-
pointed.
‘‘(3) STATUTORY CONSTRUCTION.—Except as ex-
pressly provided, nothing in this section shall be con-
strued as conferring upon local school boards author-
ity over, or control of, educators at Bureau funded
schools or the authority to issue management deci-
sions.
‘‘(e) DISCHARGE AND CONDITIONS OF EMPLOYMENT
OF EDUCATORS.—
‘‘(1) REGULATIONS.—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 equitable resolution of grievances of
educators;
‘‘(B) that no educator may be discharged
without notice of the reasons therefore and op-
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•HR 1 RH1&2
portunity for a hearing under procedures that
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 contract
will be renewed for the following year.
‘‘(2) PROCEDURES FOR DISCHARGE.—The super-
visor 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 educa-
tor, 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 edu-
cator shall not be discharged shall be followed by the
supervisor. The supervisor shall have the right to ap-
peal 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.
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•HR 1 RH1&2
‘‘(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 of-
ficer of the appropriate agency office of the Bu-
reau 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 enti-
tled to Indian preference if each tribal organization
concerned grants a written waiver of the application
of such laws with respect to such personnel action and
states that such waiver is necessary. This paragraph
shall not relieve the Bureau’s responsibility to issue
timely and adequate announcements and advertise-
ments concerning any such personnel action if such
action is intended to fill a vacancy (no matter how
such vacancy is created).
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•HR 1 RH1&2
‘‘(2) TRIBAL ORGANIZATION DEFINED.—For pur-
poses of this subsection, the term ‘tribal organization’
means—
‘‘(A) the recognized governing body of any
Indian tribe, band, nation, pueblo, or other orga-
nized community, including a Native village (as
defined in section 3(c) of the Alaska Native
Claims Settlement Act); or
‘‘(B) in connection with any personnel ac-
tion referred to in this subsection, any local
school board as defined in section 1141 which
has been delegated by such governing body the
authority to grant a waiver under this sub-
section with respect to personnel action.
‘‘(3) INDIAN PREFERENCE LAW DEFINED.—The
term ‘Indian preference laws’ means section 12 of the
Act of June 18, 1934, or any other provision of law
granting a preference to Indians in promotions and
other personnel actions. Such term shall not include
section 7(b) of the Indian Self-Determination and
Education Assistance Act.
‘‘(g) COMPENSATION OR ANNUAL SALARY.—
‘‘(1) IN GENERAL.—(A) Except as otherwise pro-
vided in this section, the Secretary shall fix the basic
compensation for educators and education positions
572
•HR 1 RH1&2
at rates in effect under the General Schedule for indi-
viduals 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 lo-
cality, and for the comparable positions, the rates of
compensation in effect for the senior executive service.
‘‘(B) The Secretary shall establish the rate of
basic compensation, or annual salary rates, for the
positions of teachers and counselors (including dor-
mitory counselors and home-living counselors) at the
rates of basic compensation applicable (on the date of
the enactment of the No Child Left Behind Act of
2001 and thereafter) to comparable positions in the
overseas schools under the Defense Department Over-
seas Teachers Pay Act. The Secretary shall allow the
local school boards authority to implement only the
aspects of the Defense Department Overseas Teacher
pay provisions that are considered essential for re-
cruitment and retention. Implementation of such pro-
visions shall not be construed to require the imple-
mentation of the Act in its entirety.
‘‘(C)(i) Beginning with the fiscal year following
the date of the enactment of the No Child Left Behind
Act of 2001, each school board may set the rate of
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•HR 1 RH1&2
compensation or annual salary rate for teachers and
counselors (including academic counselors) who are
new hires at the school and who have not worked at
the school on the date of implementation of this provi-
sion, at rates consistent with the rates paid for indi-
viduals in the same positions, with the same tenure
and training, in any other school within whose
boundaries the Bureau school lies. In instances where
the adoption of such rates cause a reduction in the
payment of compensation from that which was in ef-
fect for the fiscal year following the date of the enact-
ment of the No Child Left Behind Act of 2001, the
new rate may be applied to the compensation of em-
ployees of the school who worked at the school on of
the date of the enactment of that Act by applying
those rates to each contract renewal such that the re-
duction takes effect in three equal installments. Where
adoption of such rates lead to an increase in the pay-
ment of compensation from that which was in effect
for the fiscal year following the date of the enactment
of the No Child Left Behind Act of 2001, the school
board may make such rates applicable at the next
contract renewal such that either—
‘‘(I) the increase occurs in its entirety; or
574
•HR 1 RH1&2
‘‘(II) the increase is applied in three equal
installments.
‘‘(ii) The establishment of rates of basic com-
pensation and annual salary rates under subpara-
graphs (B) and (C) shall not preclude the use of regu-
lations and procedures used by the Bureau prior to
April 28, 1988, in making determinations regarding
promotions and advancements through levels of pay
that are based on the merit, education, experience, or
tenure of the educator.
‘‘(D) The establishment of rates of basic com-
pensation and annual salary rates under subpara-
graphs (B) and (C) shall not affect the continued em-
ployment or compensation of an educator who was
employed in an education position on October 31,
1979, and who did not make an election under sub-
section (p) is in effect on January 1, 1990.
‘‘(2) POST-DIFFERENTIAL RATES.—(A) The Sec-
retary may pay a post-differential rate not to exceed
25 percent of the rate of basic compensation, on the
basis of conditions of environment or work which
warrant additional pay as a recruitment and reten-
tion incentive.
‘‘(B)(i) Upon the request of the supervisor and
the local school board of a Bureau school, the Sec-
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•HR 1 RH1&2
retary shall grant the supervisor of the school author-
ization to provide one 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 re-
quested post-differentials should be disapproved or de-
creased because there is no disparity of compensation
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 re-
cruitment or retention of employees at the school.
‘‘(ii) A request under clause (i) shall be deemed
granted 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 Bu-
reau school may discontinue or decrease a post-dif-
ferential authorized under this subparagraph at the
beginning of a school year if—
‘‘(I) the local school board requests that such
differential be discontinued or decreased; or
576
•HR 1 RH1&2
‘‘(II) the Secretary or the supervisor deter-
mines for clear and convincing reasons (and ad-
vises 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 sub-
paragraph during the previous year and listing the
positions contracted under those grants of authority.
‘‘(h) LIQUIDATION OF REMAINING LEAVE UPON TER-
MINATION.—Upon termination of employment with the Bu-
reau, any annual leave remaining to the credit of an indi-
vidual within the purview of this section shall be liquidated
in accordance with sections 5551(a) and 6306 of title 5,
United States Code, except that leave earned or accrued
under regulations prescribed pursuant to subsection (b)(10)
of this section shall not be so liquidated.
‘‘(i) TRANSFER OF REMAINING SICK LEAVE UPON
TRANSFER, PROMOTION, OR REEMPLOYMENT.—In the case
of any educator who is transferred, promoted, or re-
appointed, without break in service, to a position in the
Federal Government under a different leave system, any re-
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•HR 1 RH1&2
maining 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 Per-
sonnel Management.
‘‘(j) INELIGIBILITY
FOR EMPLOYMENT
OF VOLUN-
TARILY TERMINATED EDUCATORS.—An educator who vol-
untarily terminates employment with the Bureau before the
expiration of the existing employment contract between such
educator and the Bureau shall not be eligible to be employed
in another education position in the Bureau during the re-
mainder of the term of such contract.
‘‘(k) DUAL COMPENSATION.—In the case of any educa-
tor employed in an education position described in sub-
section (l)(1)(A) who—
‘‘(1) is employed at the close of a school year;
‘‘(2) agrees in writing to serve in such 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,
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•HR 1 RH1&2
shall not apply to such educator by reason of any such em-
ployment during a recess period for any receipt of addi-
tional compensation.
‘‘(l) VOLUNTARY SERVICES.—Notwithstanding section
1342 of title 31, United States Code, the Secretary may,
subject to the approval of the local school board concerned,
accept voluntary services on behalf of Bureau schools. Noth-
ing in this part shall be construed to require Federal em-
ployees to work without compensation or to allow the use
of volunteer services to displace or replace Federal employ-
ees. An individual providing volunteer services under this
section is a Federal employee only for purposes of chapter
81 of title 5, United States Code, and chapter 171 of title
28, United States Code.
‘‘(m) PRORATION OF PAY.—
‘‘(1) ELECTION OF EMPLOYEE.—Notwithstanding
any other provision of law, including laws relating to
dual compensation, the Secretary, at the election of
the employee, shall prorate the salary of an employee
employed in an education position for the academic
school year over the entire 12-month period. Each ed-
ucator employed for the academic school year shall
annually elect to be paid on a 12-month basis or for
those months while school is in session. No educator
shall suffer a loss of pay or benefits, including benefits
579
•HR 1 RH1&2
under unemployment or other Federal or federally as-
sisted programs, because of such election.
‘‘(2) CHANGE OF ELECTION.—During the course
of such year the employee may change election once.
‘‘(3) LUMP SUM PAYMENT.—That portion of the
employee’s pay which would be paid between aca-
demic school years may be paid in a lump sum at
the election of the employee.
‘‘(4) DEFINITIONS.—For purposes of this sub-
section, the terms ‘educator’ and ‘education position’
have the meanings contained in paragraphs (1) and
(2) of subsection (o). This subsection applies to those
individuals employed under the provisions of section
1132 of this title or title 5, United States Code.
‘‘(n) EXTRACURRICULAR ACTIVITIES.—
‘‘(1) STIPEND.—Notwithstanding any other pro-
vision of law, the Secretary may provide, for each
Bureau area, a stipend in lieu of overtime premium
pay or compensatory time off. Any employee of the
Bureau who performs additional activities to provide
services to students or otherwise support the school’s
academic and social programs may elect to be com-
pensated for all such work on the basis of the stipend.
Such stipend shall be paid as a supplement to the em-
ployee’s base pay.
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•HR 1 RH1&2
‘‘(2) ELECTION NOT TO RECEIVE STIPEND.—If
an employee elects not to be compensated through the
stipend established by this subsection, the appropriate
provisions of title 5, United States Code, shall apply.
‘‘(3) APPLICABILITY OF SUBSECTION.—This sub-
section applies to all Bureau employees, whether em-
ployed under section 1132 of this title or title 5,
United States Code.
‘‘(o) DEFINITIONS.—For the purpose of this section—
‘‘(1) EDUCATION
POSITION.—The term ‘edu-
cation 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 supervision or direction of classroom or
other instruction;
‘‘(ii) any activity (other than teaching)
which requires academic credits in edu-
cational theory and practice equal to the
academic credits in educational theory and
practice required for a bachelor’s degree in
education from an accredited institution of
higher education;
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•HR 1 RH1&2
‘‘(iii) any activity in or related to the
field of education notwithstanding that aca-
demic 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 programs other than the posi-
tion for agency superintendent for education.
‘‘(2) EDUCATOR.—The term ‘educator’ means an
individual whose services are required, or who is em-
ployed, in an education position.
‘‘(p) COVERED INDIVIDUALS; ELECTION.—This section
shall apply with respect to any educator hired after Novem-
ber 1, 1979 (and to any educator who elected for coverage
under that provision after November 1, 1979) and to the
position in which such individual is employed. The enact-
ment of this section shall not affect the continued employ-
ment of an individual employed on October 31, 1979 in
an education position, or such person’s right to receive the
compensation attached to such position.
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•HR 1 RH1&2
‘‘SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION
SYSTEM.
‘‘(a) ESTABLISHMENT OF SYSTEM.—Not later than
July 1, 2003, the Secretary shall establish within the Office,
a computerized management information system, which
shall provide processing and information to the Office. The
information 
provided 
shall 
include 
information
regarding—
‘‘(1) student enrollment;
‘‘(2) curriculum;
‘‘(3) staffing;
‘‘(4) facilities;
‘‘(5) community demographics;
‘‘(6) student assessment information;
‘‘(7) information on the administrative and pro-
gram costs attributable to each Bureau program, di-
vided into discreet elements;
‘‘(8) relevant reports;
‘‘(9) personnel records;
‘‘(10) finance and payroll; and
‘‘(11) such other items as the Secretary deems
appropriate.
‘‘(b) IMPLEMENTATION OF SYSTEM.—Not later than
July 1, 2004, the Secretary shall complete implementation
of such a system at each field office and Bureau funded
school.
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•HR 1 RH1&2
‘‘SEC. 1134. UNIFORM EDUCATION PROCEDURES AND PRAC-
TICES.
‘‘The Secretary shall cause the various divisions of the
Bureau to formulate uniform procedures and practices with
respect to such concerns of those divisions as relate to edu-
cation, and shall report such practices and procedures to
the Congress.
‘‘SEC. 1135. RECRUITMENT OF INDIAN EDUCATORS.
‘‘The Secretary shall institute a policy for the recruit-
ment of qualified Indian educators and a detailed plan to
promote employees from within the Bureau. Such plan shall
include opportunities for acquiring work experience prior
to actual work assignment.
‘‘SEC. 1136. BIENNIAL REPORT; AUDITS.
‘‘(a) BIENNIAL REPORTS.—The Secretary shall submit
to each appropriate committee of Congress, all Bureau
funded schools, and the tribal governing bodies of such
schools, a detailed biennial report on the state of education
within the Bureau and any problems encountered in Indian
education during the 2-year period covered by the report.
Such report shall contain suggestions for the improvement
of the Bureau educational system and for increasing tribal
or local Indian control of such system. Such report shall
also include the current status of tribally controlled commu-
nity colleges. The annual budget submission for the Bu-
reau’s education programs shall include—
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‘‘(1) information on the funds provided to pre-
viously private schools under section 208 of the In-
dian Self-Determination and Education Assistance
Act, and recommendations with respect to the future
use of such funds;
‘‘(2) the needs and costs of operations and main-
tenance of tribally controlled community colleges eli-
gible for assistance under the Tribally Controlled
Community College Assistance Act of 1978 and rec-
ommendations with respect to meeting such needs and
costs; and
‘‘(3) the plans required by sections 1121 (g),
1122(c), and 1125(b).
‘‘(b) FINANCIAL AND COMPLIANCE AUDITS.—The In-
spector General of the Department of the Interior shall es-
tablish a system to ensure that financial and compliance
audits are conducted of each Bureau operated school at least
once in every 3 years. Audits of Bureau schools shall be
based upon the extent to which such school has complied
with its local financial plan under section 1130.
‘‘SEC. 1137. RIGHTS OF INDIAN STUDENTS.
‘‘The Secretary shall prescribe such rules and regula-
tions as are necessary to ensure the constitutional and civil
rights of Indian students attending Bureau funded schools,
including such students’ right to privacy under the laws
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of the United States, such students’ right to freedom of reli-
gion and expression, and such students’ right to due process
in connection with disciplinary actions, suspensions, and
expulsions.
‘‘SEC. 1138. REGULATIONS.
‘‘(a) IN GENERAL.—The Secretary is authorized to
issue only such regulations as are necessary to ensure com-
pliance with the specific provision of this Act. The Sec-
retary shall publish proposed regulations in the Federal
Register, shall provide a period of not less than 90 days
for public comment thereon, and shall place in parentheses
after each regulatory section the citation to any statutory
provision providing authority to promulgate such regu-
latory provision.
‘‘(b) MISCELLANEOUS.—
‘‘(1) CONSTRUCTION.—The provisions of this Act
shall supersede any conflicting provisions of law (in-
cluding any conflicting regulations) in effect on the
day before the date of the enactment of this Act and
the Secretary is authorized to repeal any regulation
inconsistent with the provisions of this Act.
‘‘(2) LEGAL AUTHORITY TO BE STATED.—Regu-
lations issued to implement this Act shall contain,
immediately following each substantive provision of
such regulations, citations to the particular section or
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sections of statutory law or other legal authority upon
which provision is based.
‘‘SEC. 1138A. REGIONAL MEETINGS AND NEGOTIATED RULE-
MAKING.
‘‘(a) MEETINGS.—
‘‘(1) IN GENERAL.—The Secretary shall obtain
tribal involvement in the development of proposed reg-
ulations under this part and the Tribally Controlled
Schools Act of 1988. The Secretary shall obtain the
advice of and recommendations from representatives
of Indian tribes with Bureau funded schools on their
reservations, Indian tribes whose children attend Bu-
reau funded off-reservation boarding schools, school
boards, administrators or employees of Bureau funded
schools, and parents and teachers of students enrolled
in Bureau funded schools.
‘‘(2) ISSUES.—The Secretary shall provide for a
comprehensive discussion and exchange of informa-
tion concerning the implementation of this part and
the Tribally Controlled Schools Act of 1988 through
such mechanisms as regional meetings and electronic
exchanges of information. The Secretary shall take
into account the information received through such
mechanisms in the development of proposed regula-
tions and shall publish a summary of such informa-
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tion in the Federal Register together with such pro-
posed regulations.
‘‘(b) DRAFT REGULATIONS.—
‘‘(1) IN GENERAL.—After obtaining the advice
and recommendations described in subsection (a)(1)
and before publishing proposed regulations in the
Federal Register, the Secretary shall prepare draft
regulations implementing this part and the Tribally
Controlled Schools Act of 1988 and shall submit such
regulations to a negotiated rulemaking process. Par-
ticipants in the negotiations process shall be chosen
by the Secretary from individuals nominated by the
entities described in subsection (a)(1). To the max-
imum extent possible, the Secretary shall ensure that
the tribal representative membership chosen pursuant
to the preceding sentence reflects the proportionate
share of students from tribes served by the Bureau
funded school system. The negotiation process shall be
conducted in a timely manner in order that the final
regulations may issued by the Secretary no later than
18 months after the enactment of this section.
‘‘(2) NOTIFICATION TO CONGRESS.—If draft reg-
ulations implementing this part and the Tribally
Controlled Schools Act of 1988 are not issued in final
form by the deadline provided in paragraph (1), the
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Secretary shall notify the appropriate committees of
Congress of which draft regulations were not issued in
final form by the deadline and the reason such final
regulations were not issued.
‘‘(3) 
EXPANSION
OF
NEGOTIATED
RULE-
MAKING.—All regulations pertaining to this part and
the Tribally Controlled Schools Act of 1988 that are
promulgated after the date of the enactment of this
subsection shall be subject to a negotiated rulemaking
(including the selection of the regulations to be nego-
tiated), unless the Secretary determines that applying
such a requirement with respect to given regulations
is impracticable, unnecessary, or contrary to the pub-
lic 
interest 
(within 
the 
meaning 
of 
section
553(b)(3)(B) of title 5), and publishes the basis for
such determination in the Federal Register at the
same time as the proposed regulations in question are
first published. All published proposed regulations
shall conform to agreements resulting from such nego-
tiated rulemaking unless the Secretary reopens the ne-
gotiated rulemaking process or provides a written ex-
planation to the participants in that process why the
Secretary has decided to depart from such agreements.
Such negotiated rulemaking shall be conducted in ac-
cordance with the provisions of subsection (a), and
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the tribal governing body has received the report
send pursuant to subsection (A), the recipient of
the grant shall send a copy of the report to the
Secretary.
‘‘(c) REVOCATION OF ELIGIBILITY.—
‘‘(1) IN GENERAL.—(A) The Secretary shall not
revoke a determination that a school is eligible for as-
sistance under this part if—
‘‘(i) the Indian tribe or tribal organization
submits the reports required under subsection (b)
with respect to the school; and
‘‘(ii) at least one of the following subclauses
applies with respect to the school:
‘‘(I) The school is certified or accred-
ited by a State or regional accrediting asso-
ciation or is a candidate in good standing
for such accreditation under the rules of the
State or regional accrediting association,
showing that credits achieved by the stu-
dents within the education programs are, or
will be, accepted at grade level by a State
certified or regionally accredited institution.
‘‘(II) A determination made by the
Secretary that there is a reasonable expecta-
tion that the accreditation described in sub-
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clause (I), or the candidacy in good stand-
ing for such accreditation, will be reached
by the school within 3 years and that the
program offered by the school is beneficial to
the Indian students.
‘‘(III) The school is accredited by a
tribal department of education if such ac-
creditation is accepted by a generally recog-
nized regional or State accreditation agen-
cy.
‘‘(IV) The schools accept the standards
promulgated under section 1121 of the Edu-
cation Amendments of 1978 and an evalua-
tion of performance is conducted under this
section in conformance with the regulations
pertaining to Bureau operated schools by
an impartial evaluator chosen by the grant-
ee, but no grantee shall be required to com-
ply with these standards to a higher degree
than a comparable Bureau operated school.
‘‘(V) A positive evaluation of the school
is conducted by an impartial evaluator
agreed upon by the Secretary and the grant-
ee every 2 years under standards adopted
by the contractor under a contract for a
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‘‘(8) Section 106(e) (relating to limitation on
remedies relating to cost allowances).
‘‘(9) Section 106(i) (relating to use of funds for
matching or cost participation requirements).
‘‘(10) Section 106(j) (relating to allowable uses
of funds).
‘‘(11) Section 108(c) (Model Agreements provi-
sions (1)(a)(5) (relating to limitations of costs),
(1)(a)(7) (relating to records and monitoring),
(1)(a)(8) (relating to property), and (a)(1)(9) (relat-
ing to availability of funds).
‘‘(12) Section 109 (relating to reassumption).
‘‘(13) Section 111 (relating to sovereign immu-
nity and trusteeship rights unaffected).
‘‘(b) ELECTION FOR GRANT IN LIEU OF CONTRACT.—
‘‘(1) IN GENERAL.—Contractors for activities to
which this part applies who have entered into a con-
tract under the Indian Self-Determination and Edu-
cation Assistance Act that is in effect upon the date
of the enactment of the No Child Left Behind Act of
2001 may, by giving notice to the Secretary, elect to
have the provisions of this part apply to such activity
in lieu of such contract.
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‘‘(C) contains information setting forth the
allocation of such funds required to implement
section 4142;
‘‘(D) describes how assistance under this
subpart will contribute to improving student
academic achievement;
‘‘(E) provides assurances of compliance
with the provisions of this subpart, including the
participation of children enrolled in private,
nonprofit schools in accordance with section
4142;
‘‘(F) provides assurance that the local edu-
cational agency will keep such records, and pro-
vide such information to the State as may be
reasonably required for fiscal audit and program
evaluation, consistent with the responsibilities of
the State under this subpart;
‘‘(G) provides in the allocation of funds for
the assistance authorized by this subpart, and in
the design, planning, and implementation of
such programs, for systematic consultation with
parents of children attending elementary and
secondary schools in the area served by the local
educational agency, with teachers and adminis-
trative personnel in such schools, and with other