H. R. 1—631
‘‘(ii) such educators are selected based upon such
educator’s qualifications after public notice of the min-
imum qualifications reasonably necessary and without
discrimination as to supervisory, nonsupervisory, or
other status of the educators who apply.
‘‘(2) APPEALS.—The supervisor of a Bureau school may
appeal to the appropriate agency education line officer any
refusal by the local school board to approve any determination
of the supervisor that is described in paragraph (1)(A) by filing
a written statement describing the determination and the rea-
sons the supervisor believes such determination should be
approved. A copy of such statement shall be submitted to the
local school board and such board shall be afforded an oppor-
tunity to respond, in writing, to such appeal. After reviewing
such written appeal and response, the education line officer
may, for good cause, approve the determination of the super-
visor. The educational line officer shall transmit the determina-
tion of such appeal in the form of a written opinion to such
local school board and to the supervisor identifying the reasons
for approving such determination.
‘‘(r) STIPENDS.—The Secretary is authorized to provide annual
stipends to teachers who become certified by the National Board
of Professional Teaching Standards, the National Council on
Teacher Quality, or other nationally recognized certification or
credentialing organizations.
‘‘SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.
‘‘(a) IN GENERAL.—Not later than 12 months after the date
of enactment of the Native American Education Improvement Act
of 2001, the Secretary shall update the computerized management
information system within the Office. The information to be updated
shall include information regarding—
‘‘(1) student enrollment;
‘‘(2) curricula;
‘‘(3) staffing;
‘‘(4) facilities;
‘‘(5) community demographics;
‘‘(6) student assessment information;
‘‘(7) information on the administrative and program costs
attributable to each Bureau program, divided into discrete ele-
ments;
‘‘(8) relevant reports;
‘‘(9) personnel records;
‘‘(10) finance and payroll; and
‘‘(11) such other items as the Secretary determines to be
appropriate.
‘‘(b) IMPLEMENTATION OF SYSTEM.—Not later than July 1, 2003,
the Secretary shall complete the implementation of the updated
computerized management information system at each Bureau field
office and Bureau-funded school.
‘‘SEC. 1134. RECRUITMENT OF INDIAN EDUCATORS.
‘‘The Secretary shall institute a policy for the recruitment 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.
H. R. 1—632
‘‘SEC. 1135. ANNUAL REPORT; AUDITS.
‘‘(a) ANNUAL 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 annual report
on the state of education within the Bureau, and any problems
encountered in Indian education during the period covered by the
report, that includes—
‘‘(1) suggestions for the improvement of the Bureau edu-
cational system and for increasing tribal or local Indian control
of such system; and
‘‘(2) information on the status of tribally controlled commu-
nity colleges.
‘‘(b) BUDGET REQUEST.—The annual budget request for the
education programs of the Bureau, as submitted as part of the
President’s next annual budget request under section 1105 of title
31, United States Code, shall include the plans required by sections
1121(c), 1122(c), and 1124(c).
‘‘(c) FINANCIAL AND COMPLIANCE AUDITS.—The Inspector Gen-
eral of the Department of the Interior shall establish a system
to ensure that financial and compliance audits, based upon the
extent to which a school described in subsection (a) has complied
with the local financial plan under section 1130, are conducted
of each Bureau-operated school at least once every 3 years.
‘‘(d) ADMINISTRATIVE EVALUATION OF SCHOOLS.—The Director
shall, at least once every 3 to 5 years, conduct a comprehensive
evaluation of Bureau-operated schools. Such evaluation shall be
in addition to any other program review or evaluation that may
be required under Federal law.
‘‘SEC. 1136. RIGHTS OF INDIAN STUDENTS.
‘‘The Secretary shall prescribe such rules and regulations as
are necessary to ensure the constitutional and civil rights of Indian
students attending Bureau-funded schools, including such students’
rights to—
‘‘(1) privacy under the laws of the United States;
‘‘(2) freedom of religion and expression; and
‘‘(3) due process in connection with disciplinary actions,
suspensions, and expulsions.
‘‘SEC. 1137. REGULATIONS.
‘‘(a) PROMULGATION.—
‘‘(1) IN GENERAL.—The Secretary may promulgate only such
regulations—
‘‘(A) as are necessary to ensure compliance with the
specific provisions of this part; and
‘‘(B) as the Secretary is authorized to promulgate
pursuant to section 5211 of the Tribally Controlled Schools
Act of 1988 (25 U.S.C. 2510).
‘‘(2) PUBLICATION.—In promulgating the regulations, the
Secretary shall—
‘‘(A) publish proposed regulations in the Federal Reg-
ister; and
‘‘(B) provide a period of not less than 120 days for
public comment and consultation on the regulations.
‘‘(3) CITATION.—The regulations shall contain, immediately
following each regulatory section, a citation to any statutory
H. R. 1—633
provision providing authority to promulgate such regulatory
section.
‘‘(b) MISCELLANEOUS.—The provisions of this Act shall super-
sede any conflicting provisions of law (including any conflicting
regulations) in effect on the day before the date of enactment
of this Act and the Secretary is authorized to repeal any regulation
inconsistent with the provisions of this Act.
‘‘SEC. 1138. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
‘‘(a) REGIONAL MEETINGS.—Prior to publishing any proposed
regulations under subsection (b)(1), and prior to establishing the
negotiated rulemaking committee under subsection (b)(3), the Sec-
retary shall convene regional meetings to consult with personnel
of the Office of Indian Education Programs, educators at Bureau
schools, and tribal officials, parents, teachers, administrators, and
school board members of tribes served by Bureau-funded schools
to provide guidance to the Secretary on the content of regulations
authorized to be promulgated under this part and the Tribally
Controlled Schools Act of 1988.
‘‘(b) NEGOTIATED RULEMAKING.—
‘‘(1) IN
GENERAL.—Notwithstanding sections 563(a) and
565(a) of title 5, United States Code, the Secretary shall promul-
gate regulations authorized under subsection (a) and under
the Tribally Controlled Schools Act of 1988, in accordance with
the negotiated rulemaking procedures provided for under sub-
chapter III of chapter 5 of title 5, United States Code, and
shall publish final regulations in the Federal Register.
‘‘(2) NOTIFICATION
TO
CONGRESS.—If draft regulations
implementing this part and the Tribally Controlled Schools
Act of 1988 are not promulgated in final form within 18 months
after the date of enactment of the Native American Education
Improvement Act of 2001, the Secretary shall notify the appro-
priate committees of Congress of which draft regulations were
not promulgated in final form by the deadline and the reason
such final regulations were not promulgated.
‘‘(3) RULEMAKING COMMITTEE.—The Secretary shall estab-
lish a negotiated rulemaking committee to carry out this sub-
section. In establishing such committee, the Secretary shall—
‘‘(A) apply the procedures provided for under sub-
chapter III of chapter 5 of title 5, United States Code,
in a manner that reflects the unique government-to-govern-
ment relationship between Indian tribes and the United
States;
‘‘(B) ensure that the membership of the committee
includes only representatives of the Federal Government
and of tribes served by Bureau-funded schools;
‘‘(C) select the tribal representatives of the committee
from among individuals nominated by the representatives
of the tribal and tribally operated schools;
‘‘(D) ensure, to the maximum extent possible, that the
tribal representative membership on the committee reflects
the proportionate share of students from tribes served by
the Bureau-funded school system; and
‘‘(E) comply with the Federal Advisory Committee Act
(5 U.S.C. App.).
H. R. 1—634
‘‘(4) SPECIAL
RULE.—The Secretary shall carry out this
section using the general administrative funds of the Depart-
ment of the Interior. In accordance with subchapter III of
chapter 5 of title 5, United States Code, and section 7(d) of
the Federal Advisory Committee Act, payment of costs associ-
ated with negotiated rulemaking shall include the reasonable
expenses of committee members.
‘‘(c) APPLICATION OF SECTION.—
‘‘(1) SUPREMACY
OF
PROVISIONS.—The provisions of this
section shall supersede any conflicting regulations in effect
on the day before the date of enactment of this part, and
the Secretary may repeal any regulation that is inconsistent
with the provisions of this part.
‘‘(2) MODIFICATIONS.—The Secretary may modify regula-
tions promulgated under this section or the Tribally Controlled
Schools Act of 1988, only in accordance with this section.
‘‘SEC. 1139. EARLY CHILDHOOD DEVELOPMENT PROGRAM.
‘‘(a) IN GENERAL.—The Secretary shall provide grants to tribes,
tribal organizations, and consortia of tribes and tribal organizations
to fund early childhood development programs that are operated
by such tribes, organizations, or consortia.
‘‘(b) AMOUNT OF GRANTS.—
‘‘(1) IN GENERAL.—The total amount of the grants provided
under subsection (a) with respect to each tribe, tribal organiza-
tion, or consortium of tribes or tribal organizations for each
fiscal year shall be equal to the amount which bears the same
relationship to the total amount appropriated under the
authority of subsection (g) for such fiscal year (less amounts
provided under subsection (f)) as—
‘‘(A) the total number of children under 6 years of age
who are members of—
‘‘(i) such tribe;
‘‘(ii) the tribe that authorized such tribal organiza-
tion; or
‘‘(iii) any tribe that—
‘‘(I) is a member of such consortium; or
‘‘(II) authorizes any tribal organization that
is a member of such consortium; bears to
‘‘(B) the total number of all children under 6 years
of age who are members of any tribe that—
‘‘(i) is eligible to receive funds under subsection
(a);
‘‘(ii) is a member of a consortium that is eligible
to receive such funds; or
‘‘(iii) authorizes a tribal organization that is
eligible to receive such funds.
‘‘(2) LIMITATION.—No grant may be provided under sub-
section (a)—
‘‘(A) to any tribe that has less than 500 members;
‘‘(B) to any tribal organization which is authorized—
‘‘(i) by only one tribe that has less than 500 mem-
bers; or
‘‘(ii) by one or more tribes that have a combined
total membership of less than 500 members; or
H. R. 1—635
‘‘(C) to any consortium composed of tribes, or tribal
organizations authorized by tribes, that have a combined
total tribal membership of less than 500 members.
‘‘(c) APPLICATION.—
‘‘(1) IN GENERAL.—A grant may be provided under sub-
section (a) to a tribe, tribal organization, or consortium of
tribes and tribal organizations only if the tribe, organization,
or consortium submits to the Secretary an application for the
grant at such time and in such form as the Secretary shall
prescribe.
‘‘(2) CONTENTS.—Applications submitted under paragraph
(1) shall set forth the early childhood development program
that the applicant desires to operate.
‘‘(d) REQUIREMENT OF PROGRAMS FUNDED.—The early childhood
development programs that are funded by grants provided under
subsection (a)—
‘‘(1) shall coordinate existing programs and may provide
services that meet identified needs of parents and children
under 6 years of age which are not being met by existing
programs, including—
‘‘(A) prenatal care;
‘‘(B) nutrition education;
‘‘(C) health education and screening;
‘‘(D) family literacy services;
‘‘(E) educational testing; and
‘‘(F) other educational services;
‘‘(2) may include instruction in the language, art, and cul-
ture of the tribe; and
‘‘(3) shall provide for periodic assessment of the program.
‘‘(e) COORDINATION OF FAMILY LITERACY PROGRAMS.—Family
literacy programs operated under this section and other family
literacy programs operated by the Bureau of Indian Affairs shall
be coordinated with family literacy programs for Indian children
under part B of title I of the Elementary and Secondary Education
Act of 1965 in order to avoid duplication and to encourage the
dissemination of information on quality family literacy programs
serving Indians.
‘‘(f) ADMINISTRATIVE COSTS.—The Secretary shall, out of funds
appropriated under subsection (g), include in the grants provided
under subsection (a) amounts for administrative costs incurred by
the tribe, tribal organization, or consortium of tribes in establishing
and maintaining the early childhood development program.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as may
be necessary.
‘‘SEC. 1140. TRIBAL DEPARTMENTS OR DIVISIONS OF EDUCATION.
‘‘(a) IN GENERAL.—Subject to the availability of appropriations,
the Secretary shall make grants and provide technical assistance
to tribes for the development and operation of tribal departments
or divisions of education for the purpose of planning and coordi-
nating all educational programs of the tribe.
‘‘(b) APPLICATIONS.—For a tribe to be eligible to receive a grant
under this section, the governing body of the tribe shall submit
an application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
H. R. 1—636
‘‘(c) DIVERSITY.—The Secretary shall award grants under this
section in a manner that fosters geographic and population diver-
sity.
‘‘(d) USE.—Tribes that receive grants under this section shall
use the funds made available through the grants—
‘‘(1) to facilitate tribal control in all matters relating to
the education of Indian children on reservations (and on former
Indian reservations in Oklahoma);
‘‘(2) to provide for the development of coordinated edu-
cational programs (including all preschool, elementary, sec-
ondary, and higher or vocational educational programs funded
by tribal, Federal, or other sources) on reservations (and on
former Indian reservations in Oklahoma) by encouraging tribal
administrative support of all Bureau-funded educational pro-
grams as well as encouraging tribal cooperation and coordina-
tion with entities carrying out all educational programs
receiving financial support from other Federal agencies, State
agencies, or private entities; and
‘‘(3) to provide for the development and enforcement of
tribal educational codes, including tribal educational policies
and tribal standards applicable to curriculum, personnel, stu-
dents, facilities, and support programs.
‘‘(e) PRIORITIES.—In making grants under this section, the Sec-
retary shall give priority to any application that—
‘‘(1) includes—
‘‘(A) assurances that the applicant serves three or more
separate Bureau-funded schools; and
‘‘(B) assurances from the applicant that the tribal
department of education to be funded under this section
will provide coordinating services and technical assistance
to all of such schools;
‘‘(2) includes assurances that all education programs for
which funds are provided by such a contract or grant will
be monitored and audited, by or through the tribal department
of education, to ensure that the programs meet the require-
ments of law; and
‘‘(3) provides a plan and schedule that—
‘‘(A) provides for—
‘‘(i) the assumption, by the tribal department of
education, of all assets and functions of the Bureau
agency office associated with the tribe, to the extent
the assets and functions relate to education; and
‘‘(ii) the termination by the Bureau of such func-
tions and office at the time of such assumption; and
‘‘(B) provides that the assumption shall occur over
the term of the grant made under this section, except
that, when mutually agreeable to the tribal governing body
and the Assistant Secretary, the period in which such
assumption is to occur may be modified, reduced, or
extended after the initial year of the grant.
‘‘(f) TIME PERIOD
OF GRANT.—Subject to the availability of
appropriated funds, a grant provided under this section shall be
provided for a period of 3 years. If the performance of the grant
recipient is satisfactory to the Secretary, the grant may be renewed
for additional 3-year terms.
‘‘(g) TERMS, CONDITIONS, OR REQUIREMENTS.—A tribe that
receives a grant under this section shall comply with regulations
H. R. 1—637
relating to grants made under section 103(a) of the Indian Self-
Determination and Education Assistance Act that are in effect
on the date that the tribal governing body submits the application
for the grant under subsection (b). The Secretary shall not impose
any terms, conditions, or requirements on the provision of grants
under this section that are not specified in this section.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section $2,000,000.
‘‘SEC. 1141. DEFINITIONS.
‘‘For the purposes of this part, unless otherwise specified:
‘‘(1) AGENCY
SCHOOL
BOARD.—The term ‘agency school
board’ means a body—
‘‘(A) the members of which are appointed by all of
the school boards of the schools located within an agency,
including schools operated under contract or grant; and
‘‘(B) the number of such members is determined by
the Secretary, in consultation with the affected tribes;
except that, in agencies serving a single school, the school
board of such school shall fulfill these duties, and in agencies
having schools or a school operated under contract or grant,
one such member at least shall be from such a school.
‘‘(2) BUREAU.—The term ‘Bureau’ means the Bureau of
Indian Affairs of the Department of the Interior.
‘‘(3) BUREAU-FUNDED SCHOOL.—The term ‘Bureau-funded
school’ means—
‘‘(A) a Bureau school;
‘‘(B) a contract or grant school; or
‘‘(C) a school for which assistance is provided under
the Tribally Controlled Schools Act of 1988.
‘‘(4) BUREAU
SCHOOL.—The term ‘Bureau school’ means
a Bureau-operated elementary or secondary day or boarding
school or a Bureau-operated dormitory for students attending
a school other than a Bureau school.
‘‘(5) COMPLEMENTARY EDUCATIONAL FACILITIES.—The term
‘complementary educational facilities’ means educational pro-
gram functional spaces such as libraries, gymnasiums, and
cafeterias.
‘‘(6) CONTRACT OR GRANT SCHOOL.—The term ‘contract or
grant school’ means an elementary school, secondary school,
or dormitory that receives financial assistance for its operation
under a contract, grant, or agreement with the Bureau under
section 102, 103(a), or 208 of the Indian Self-Determination
and Education Assistance Act, or under the Tribally Controlled
Schools Act of 1988.
‘‘(7) DIRECTOR.—The term ‘Director’ means the Director
of the Office of Indian Education Programs.
‘‘(8) EDUCATION LINE OFFICER.—The term ‘education line
officer’ means a member of the education personnel under the
supervision of the Director of the Office, whether located in
a central, area, or agency office.
‘‘(9) FAMILY LITERACY SERVICES.—The term ‘family literacy
services’ has the meaning given that term in section 8101
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801).
‘‘(10) FINANCIAL PLAN.—The term ‘financial plan’ means
a plan of services provided by each Bureau school.
H. R. 1—638
‘‘(11) INDIAN ORGANIZATION.—The term ‘Indian organiza-
tion’ means any group, association, partnership, corporation,
or other legal entity owned or controlled by a federally recog-
nized Indian tribe or tribes, or a majority of whose members
are members of federally recognized tribes.
‘‘(12) INHERENTLY FEDERAL FUNCTIONS.—The term ‘inher-
ently Federal functions’ means functions and responsibilities
which, under section 1126(c), are noncontractable, including—
‘‘(A) the allocation and obligation of Federal funds and
determinations as to the amounts of expenditures;
‘‘(B) the administration of Federal personnel laws for
Federal employees;
‘‘(C) the administration of Federal contracting and
grant laws, including the monitoring and auditing of con-
tracts and grants in order to maintain the continuing trust,
programmatic, and fiscal responsibilities of the Secretary;
‘‘(D) the conducting of administrative hearings and
deciding of administrative appeals;
‘‘(E) the determination of the Secretary’s views and
recommendations concerning administrative appeals or
litigation and the representation of the Secretary in
administrative appeals and litigation;
‘‘(F) the issuance of Federal regulations and policies
as well as any documents published in the Federal Register;
‘‘(G) reporting to Congress and the President;
‘‘(H) the formulation of the Secretary’s and the Presi-
dent’s policies and their budgetary and legislative rec-
ommendations and views; and
‘‘(I) the nondelegable statutory duties of the Secretary
relating to trust resources.
‘‘(13) LOCAL EDUCATIONAL AGENCY.—The term ‘local edu-
cational agency’ means a board of education or other legally
constituted local school authority having administrative control
and direction of free public education in a county, township,
or independent or other school district located within a State,
and includes any State agency that directly operates and main-
tains facilities for providing free public education.
‘‘(14) LOCAL SCHOOL BOARD.—The term ‘local school board’,
when used with respect to a Bureau school, means a body
chosen in accordance with the laws of the tribe to be served
or, in the absence of such laws, elected by the parents of
the Indian children attending the school, except that, for a
school serving a substantial number of students from different
tribes—
‘‘(A) the members of the body shall be appointed by
the tribal governing bodies of the tribes affected; and
‘‘(B) the number of such members shall be determined
by the Secretary in consultation with the affected tribes.
‘‘(15) OFFICE.—The term ‘Office’ means the Office of Indian
Education Programs within the Bureau.
‘‘(16) REGULATION.—
‘‘(A) IN GENERAL.—The term ‘regulation’ means any
part of a statement of general or particular applicability
of the Secretary designed to carry out, interpret, or pre-
scribe law or policy in carrying out this Act.
‘‘(B) RULE
OF
CONSTRUCTION.—Nothing in subpara-
graph (A) or any other provision of this title shall be
H. R. 1—639
construed to prohibit the Secretary from issuing guidance,
internal directives, or other documents similar to the docu-
ments found in the Indian Affairs Manual of the Bureau
of Indian Affairs.
‘‘(17) SECRETARY.—The term ‘Secretary’ means the Sec-
retary of the Interior.
‘‘(18) SUPERVISOR.—The term ‘supervisor’ means the indi-
vidual in the position of ultimate authority at a Bureau school.
‘‘(19) TRIBAL GOVERNING BODY.—The term ‘tribal governing
body’ means, with respect to any school, the tribal governing
body, or tribal governing bodies, that represent at least 90
percent of the students served by such school.
‘‘(20) TRIBE.—The term ‘tribe’ means any Indian tribe,
band, nation, or other organized group or community, including
an Alaska Native Regional Corporation or Village Corporation
(as defined in or established pursuant to the Alaska Native
Claims Settlement Act), which is recognized as eligible for
the special programs and services provided by the United States
to Indians because of their status as Indians.’’.
SEC. 1043. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.
The Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501
et seq.) is amended by striking sections 5202 through 5212 and
inserting the following new sections:
‘‘SEC. 5202. DECLARATION OF POLICY.
‘‘(a) RECOGNITION.—Congress recognizes that the Indian Self-
Determination and Education Assistance Act, which was a product
of the legitimate aspirations and a recognition of the inherent
authority of Indian nations, was and is a crucial positive step
toward tribal and community control and that the United States
has an obligation to assure maximum Indian participation in the
direction of educational services so as to render the persons admin-
istering such services and the services themselves more responsive
to the needs and desires of Indian communities.
‘‘(b) COMMITMENT.—Congress declares its commitment to the
maintenance of the Federal Government’s unique and continuing
trust relationship with and responsibility to the Indian people for
the education of Indian children through the establishment of a
meaningful Indian self-determination policy for education that will
deter further perpetuation of Federal bureaucratic domination of
programs.
‘‘(c) NATIONAL GOAL.—Congress declares that a national goal
of the United States is to provide the resources, processes, and
structure that will enable tribes and local communities to obtain
the quantity and quality of educational services and opportunities
that will permit Indian children—
‘‘(1) to compete and excel in areas of their choice; and
‘‘(2) to achieve the measure of self-determination essential
to their social and economic well-being.
‘‘(d) EDUCATIONAL NEEDS.—Congress affirms—
‘‘(1) true self-determination in any society of people is
dependent upon an educational process that will ensure the
development of qualified people to fulfill meaningful leadership
roles;
‘‘(2) that Indian people have special and unique educational
needs, including the need for programs to meet the linguistic
and cultural aspirations of Indian tribes and communities; and
H. R. 1—640
‘‘(3) that those needs may best be met through a grant
process.
‘‘(e) FEDERAL RELATIONS.—Congress declares a commitment to
the policies described in this section and support, to the full extent
of congressional responsibility, for Federal relations with the Indian
nations.
‘‘(f) TERMINATION.—Congress repudiates and rejects House
Concurrent Resolution 108 of the 83d Congress and any policy
of unilateral termination of Federal relations with any Indian
nation.
‘‘SEC. 5203. GRANTS AUTHORIZED.
‘‘(a) IN GENERAL.—
‘‘(1) ELIGIBILITY.—The Secretary shall provide grants to
Indian tribes, and tribal organizations that—
‘‘(A) operate contract schools under title XI of the Edu-
cation Amendments of 1978 and notify the Secretary of
their election to operate the schools with assistance under
this part rather than continuing the schools as contract
schools;
‘‘(B) operate other tribally controlled schools eligible
for assistance under this part and submit applications
(which are approved by their tribal governing bodies) to
the Secretary for such grants; or
‘‘(C) elect to assume operation of Bureau-funded schools
with the assistance under this part and submit applications
(which are approved by their tribal governing bodies) to
the Secretary for such grants.
‘‘(2) DEPOSIT OF FUNDS.—Grants provided under this part
shall be deposited into the general operating fund of the tribally
controlled school with respect to which the grant is made.
‘‘(3) USE OF FUNDS.—
‘‘(A) IN
GENERAL.—Except as otherwise provided in
this paragraph, grants provided under this part shall be
used to defray, at the discretion of the school board of
the tribally controlled school with respect to which the
grant is provided, any expenditures for education related
activities for which any funds that compose the grant may
be used under the laws described in section 5205(a),
including expenditures for—
‘‘(i) school operations, academic, educational, resi-
dential, guidance and counseling, and administrative
purposes; and
‘‘(ii) support services for the school, including
transportation.
‘‘(B) EXCEPTION.—Grants provided under this part
may, at the discretion of the school board of the tribally
controlled school with respect to which such grant is pro-
vided, be used to defray operations and maintenance
expenditures for the school if any funds for the operation
and maintenance of the school are allocated to the school
under the provisions of any of the laws described in section
5205(a).
‘‘(b) LIMITATIONS.—
‘‘(1) ONE GRANT PER TRIBE OR ORGANIZATION PER FISCAL
YEAR.—Not more than one grant may be provided under this
H. R. 1—641
part with respect to any Indian tribe or tribal organization
for any fiscal year.
‘‘(2) NONSECTARIAN USE.—Funds provided under any grant
made under this part may not be used in connection with
religious worship or sectarian instruction.
‘‘(3) ADMINISTRATIVE COSTS LIMITATION.—Funds provided
under any grant under this part may not be expended for
administrative costs (as defined in section 1128(h)(1) of the
Education Amendments of 1978) in excess of the amount gen-
erated for such costs under section 1128 of such Act.
‘‘(c) LIMITATION
ON
TRANSFER
OF
FUNDS
AMONG
SCHOOL
SITES.—
‘‘(1) IN GENERAL.—In the case of a grantee that operates
schools at more than one school site, the grantee may expend
at any school site operated by the grantee not more than
the lesser of—
‘‘(A) 10 percent of the funds allocated for another school
site under section 1128 of the Education Amendments of
1978; or
‘‘(B) $400,000 of the funds allocated for another school
site.
‘‘(2) DEFINITION
OF
SCHOOL
SITE.—For purposes of this
subsection, the term ‘school site’ means the physical location
and the facilities of an elementary or secondary educational
or residential program operated by, or under contract or grant
with, the Bureau for which a discreet student count is identified
under the funding formula established under section 1127 of
the Education Amendments of 1978.
‘‘(d) NO REQUIREMENT TO ACCEPT GRANTS.—Nothing in this
part may be construed—
‘‘(1) to require a tribe or tribal organization to apply for
or accept; or
‘‘(2) to allow any person to coerce any tribe or tribal
organization to apply for, or accept,
a grant under this part to plan, conduct, and administer all of,
or any portion of, any Bureau program. Such applications and
the timing of such applications shall be strictly voluntary. Nothing
in this part may be construed as allowing or requiring any grant
with any entity other than the entity to which the grant is provided.
‘‘(e) NO EFFECT ON FEDERAL RESPONSIBILITY.—Grants provided
under this part shall not terminate, modify, suspend, or reduce
the responsibility of the Federal Government to provide a program.
‘‘(f) RETROCESSION.—
‘‘(1) IN
GENERAL.—Whenever a tribal governing body
requests retrocession of any program for which assistance is
provided under this part, such retrocession shall become effec-
tive upon a date specified by the Secretary that is not later
than 120 days after the date on which the tribal governing
body requests the retrocession. A later date may be specified
if mutually agreed upon by the Secretary and the tribal gov-
erning body. If such a program is retroceded, the Secretary
shall provide to any Indian tribe served by such program at
least the same quantity and quality of services that would
have been provided under such program at the level of funding
provided under this part prior to the retrocession.
‘‘(2) STATUS AFTER RETROCESSION.—The tribe requesting
retrocession shall specify whether the retrocession is to status
H. R. 1—642
as a Bureau-operated school or as a school operated under
contract under the Indian Self-Determination and Education
Assistance Act.
‘‘(3) TRANSFER OF EQUIPMENT AND MATERIALS.—Except as
otherwise determined by the Secretary, the tribe or tribal
organization operating the program to be retroceded must
transfer to the Secretary (or to the tribe or tribal organization
which will operate the program as a contract school) the
existing equipment and materials which were acquired—
‘‘(A) with assistance under this part; or
‘‘(B) upon assumption of operation of the program
under this part, if the school was a Bureau-funded school
under title XI of the Education Amendments of 1978 before
receiving assistance under this part.
‘‘(g) PROHIBITION OF TERMINATION FOR ADMINISTRATIVE CON-
VENIENCE.—Grants provided under this part may not be terminated,
modified, suspended, or reduced solely for the convenience of the
administering agency.
‘‘SEC. 5204. COMPOSITION OF GRANTS.
‘‘(a) IN GENERAL.—The grant provided under this part to an
Indian tribe or tribal organization for any fiscal year shall consist
of—
‘‘(1) the total amount of funds allocated for such fiscal
year under sections 1127 and 1128 of the Education Amend-
ments of 1978 with respect to the tribally controlled schools
eligible for assistance under this part which are operated by
such Indian tribe or tribal organization, including, but not
limited to, funds provided under such sections, or under any
other provision of law, for transportation costs;
‘‘(2) to the extent requested by such Indian tribe or tribal
organization, the total amount of funds provided from oper-
ations and maintenance accounts and, notwithstanding section
105 of the Indian Self-Determination Act, or any other provision
of law, other facilities accounts for such schools for such fiscal
year (including but not limited to those referenced under section
1126(d) of the Education Amendments of 1978 or any other
law); and
‘‘(3) the total amount of funds that are allocated to such
schools for such fiscal year under—
‘‘(A) title I of the Elementary and Secondary Education
Act of 1965;
‘‘(B) the Individuals with Disabilities Education Act;
and
‘‘(C) any other Federal education law, that are allocated
to such schools for such fiscal year.
‘‘(b) SPECIAL RULES.—
‘‘(1) IN GENERAL.—
‘‘(A) APPLICABILITY OF CERTAIN LAWS.—Funds allocated
to a tribally controlled school by reason of paragraph (1)
or (2) of subsection (a) shall be subject to the provisions
of this part and shall not be subject to any additional
restriction, priority, or limitation that is imposed by the
Bureau with respect to funds provided under—
‘‘(i) title I of the Elementary and Secondary Edu-
cation Act of 1965;
H. R. 1—643
‘‘(ii) the Individuals with Disabilities Education
Act; or
‘‘(iii) any Federal education law other than title
XI of the Education Amendments of 1978.
‘‘(B) APPLICABILITY
OF
BUREAU
PROVISIONS.—Indian
tribes and tribal organizations to which grants are provided
under this part, and tribally controlled schools for which
such grants are provided, shall not be subject to any
requirements, 
obligations, 
restrictions, 
or 
limitations
imposed by the Bureau that would otherwise apply solely
by reason of the receipt of funds provided under any law
referred to in clause (i), (ii), or (iii) of subparagraph (A).
‘‘(2) SCHOOLS
CONSIDERED
CONTRACT
SCHOOLS.—Tribally
controlled schools for which grants are provided under this
part shall be treated as contract schools for the purposes of
allocation of funds under sections 1126(e), 1127, and 1128 of
the Education Amendments of 1978.
‘‘(3) SCHOOLS CONSIDERED BUREAU SCHOOLS.—Tribally con-
trolled schools for which grants are provided under this chapter
shall be treated as Bureau schools for the purposes of allocation
of funds provided under—
‘‘(A) title I of the Elementary and Secondary Education
Act of 1965;
‘‘(B) the Individuals with Disabilities Education Act;
and
‘‘(C) any other Federal education law, that are distrib-
uted through the Bureau.
‘‘(4) ACCOUNTS; USE OF CERTAIN FUNDS.—
‘‘(A) SEPARATE ACCOUNT.—
‘‘(i) 
IN
GENERAL.—Notwithstanding 
section
5204(a)(2), with respect to funds from facilities
improvement and repair, alteration and renovation
(major or minor), health and safety, or new construc-
tion accounts included in the grant provided under
section 5204(a), the grant recipient shall maintain a
separate account for such funds.
‘‘(ii) SUBMISSION OF ACCOUNTING.—At the end of
the period designated for the work covered by the
funds received, the grant recipient shall submit to
the Secretary a separate accounting of the work done
and the funds expended.
‘‘(iii) USE OF FUNDS.—Funds received from those
accounts may only be used for the purpose for which
the funds were appropriated and for the work encom-
passed by the application or submission for which the
funds were received.
‘‘(iv) COMPLETION OF PROJECT.—Upon completion
of a project for which a separate account is established
under this paragraph, the portion of the grant related
to such project may be closed out upon agreement
by the grantee and the Secretary.
‘‘(B) REQUIREMENTS FOR PROJECTS.—
‘‘(i) REGULATORY REQUIREMENTS.—With respect to
a grant to a tribally controlled school under this part
for new construction or facilities improvements and
repair in excess of $100,000, such grant shall be subject
to the Administrative and Audit Requirements and
H. R. 1—644
Cost Principles for Assistance Programs contained in
part 12 of title 43, Code of Federal Regulations.
‘‘(ii) 
EXCEPTION.—Notwithstanding 
clause 
(i),
grants described in such clause shall not be subject
to section 12.61 of title 43, Code of Federal Regulations.
The Secretary and the grantee shall negotiate and
determine a schedule of payments for the work to
be performed.
‘‘(iii) APPLICATIONS.—In considering applications
for a grant described in clause (i), the Secretary shall
consider whether the Indian tribe or tribal organization
involved would be deficient in ensuring that the
construction projects under the proposed grant conform
to applicable building standards and codes and Federal,
tribal, or State health and safety standards as required
under section 1124 of the Education Amendments of
1978 (25 U.S.C. 2005(a)) with respect to organizational
and financial management capabilities.
‘‘(iv) DISPUTES.—Any disputes between the Sec-
retary and any grantee concerning a grant described
in clause (i) shall be subject to the dispute provisions
contained in section 5209(e).
‘‘(C) NEW CONSTRUCTION.—Notwithstanding subpara-
graph (A), a school receiving a grant under this part for
facilities improvement and repair may use such grant funds
for new construction if the tribal governing body or tribal
organization that submits the application for the grant
provides funding for the new construction equal to at least
25 percent of the total cost of such new construction.
‘‘(D) PERIOD.—In a case in which the appropriations
measure under which the funds described in subparagraph
(A) are made available or the application submitted for
the funds does not stipulate a period for the work covered
by the funds, the Secretary and the grant recipient shall
consult and determine such a period prior to the transfer
of the funds. A period so determined may be extended
upon mutual agreement of the Secretary and the grant
recipient.
‘‘(5) ENFORCEMENT OF REQUEST TO INCLUDE FUNDS.—
‘‘(A) IN GENERAL.—If the Secretary fails to carry out
a request filed by an Indian tribe or tribal organization
to include in such tribe or organization’s grant under this
part the funds described in subsection (a)(2) within 180
days after the filing of the request, the Secretary shall—
‘‘(i) be deemed to have approved such request;
and
‘‘(ii) immediately upon the expiration of such 180-
day period amend the grant accordingly.
‘‘(B) RIGHTS.—A tribe or organization described in
subparagraph (A) may enforce its rights under subsection
(a)(2) and this paragraph, including rights relating to any
denial or failure to act on such tribe’s or organization’s
request, pursuant to the dispute authority described in
section 5209(e).
‘‘SEC. 5205. ELIGIBILITY FOR GRANTS.
‘‘(a) RULES.—
H. R. 1—645
‘‘(1) IN GENERAL.—A tribally controlled school is eligible
for assistance under this part if the school—
‘‘(A) on April 28, 1988, was a contract school under
title XI of the Education Amendments of 1978 and the
tribe or tribal organization operating the school submits
to the Secretary a written notice of election to receive
a grant under this part;
‘‘(B) was a Bureau-operated school under title XI of
the Education Amendments of 1978 and has met the
requirements of subsection (b);
‘‘(C) is a school for which the Bureau has not provided
funds, but which has met the requirements of subsection
(c); or
‘‘(D) is a school with respect to which an election has
been made under paragraph (2) and which has met the
requirements of subsection (b).
‘‘(2) NEW SCHOOLS.—Any application which has been sub-
mitted under the Indian Self-Determination and Education
Assistance Act by an Indian tribe for a school which is not
in operation on the date of enactment of the Native American
Education Improvement Act of 2001 shall be reviewed under
the guidelines and regulations for applications submitted under
the Indian Self-Determination and Education Assistance Act
that were in effect at the time the application was submitted,
unless the Indian tribe or tribal organization elects to have
the application reviewed under the provisions of subsection
(b).
‘‘(b) ADDITIONAL REQUIREMENTS FOR BUREAU-FUNDED SCHOOLS
AND CERTAIN ELECTING SCHOOLS.—
‘‘(1) BUREAU-FUNDED
SCHOOLS.—A school that was a
Bureau-funded school under title XI of the Education Amend-
ments of 1978 on the date of enactment of the Native American
Education Improvement Act of 2001 and any school with respect
to which an election is made under subsection (a)(2), meets
the requirements of this subsection if—
‘‘(A) the Indian tribe or tribal organization that oper-
ates, or desires to operate, the school submits to the Sec-
retary an application requesting that the Secretary—
‘‘(i) transfer operation of the school to the Indian
tribe or tribal organization, if the Indian tribe or tribal
organization is not already operating the school; and
‘‘(ii) make a determination as to whether the school
is eligible for assistance under this part; and
‘‘(B) the Secretary makes a determination that the
school is eligible for assistance under this part.
‘‘(2) CERTAIN ELECTING SCHOOLS.—
‘‘(A) IN GENERAL.—By not later than the date that
is 120 days after the date on which an application is
submitted to the Secretary under paragraph (1)(A), the
Secretary shall determine—
‘‘(i) in the case of a school which is not being
operated by the Indian tribe or tribal organization,
whether to transfer operation of the school to the
Indian tribe or tribal organization; and
‘‘(ii) whether the school is eligible for assistance
under this part.
H. R. 1—647
‘‘(II) adequacy and comparability of programs
already available;
‘‘(III) consistency of available programs with
tribal education codes or tribal legislation on edu-
cation; and
‘‘(IV) the history and success of these services
for the proposed population to be served, as deter-
mined from all factors including, if relevant,
standardized examination performance.
‘‘(C) GEOGRAPHIC PROXIMITY.—The Secretary may not
make a determination under this paragraph that is pri-
marily based upon the geographic proximity of comparable
public education.
‘‘(D) OTHER
INFORMATION.—Applications submitted
under paragraph (1)(A) shall include information on the
factors described in subparagraph (B)(i), but the applicant
may also provide the Secretary such information relative
to the factors described in subparagraph (B)(ii) as the
applicant considers appropriate.
‘‘(E) DEADLINE.—If the Secretary fails to make a deter-
mination under subparagraph (A) with respect to an
application within 180 days after the date on which the
Secretary received the application, the Secretary shall be
treated as having made a determination that the tribally
controlled school is eligible for assistance under the title
and the grant shall become effective 18 months after the
date on which the Secretary received the application, or
on an earlier date, at the Secretary’s discretion.
‘‘(d) FILING OF APPLICATIONS AND REPORTS.—
‘‘(1) IN GENERAL.—All applications and reports submitted
to the Secretary under this part, and any amendments to
such applications or reports, shall be filed with the education
line officer designated by the Director of the Office of Indian
Education Programs of the Bureau of Indian Affairs. The date
on which such filing occurs shall, for purposes of this part,
be treated as the date on which the application or amendment
was submitted to the Secretary.
‘‘(2) SUPPORTING
DOCUMENTATION.—Any application that
is submitted under this chapter shall be accompanied by a
document indicating the action taken by the tribal governing
body in authorizing such application.
‘‘(e) EFFECTIVE DATE FOR APPROVED APPLICATIONS.—Except as
provided by subsection (c)(2)(E), a grant provided under this part,
and any transfer of the operation of a Bureau school made under
subsection (b), shall become effective beginning the academic year
succeeding the fiscal year in which the application for the grant
or transfer is made, or at an earlier date determined by the Sec-
retary.
‘‘(f) DENIAL OF APPLICATIONS.—
‘‘(1) IN
GENERAL.—Whenever the Secretary refuses to
approve a grant under this chapter, to transfer operation of
a Bureau school under subsection (b), or determines that a
school is not eligible for assistance under this part, the Sec-
retary shall—
‘‘(A) state the objections in writing to the tribe or
tribal organization within the allotted time;
H. R. 1—648
‘‘(B) provide assistance to the tribe or tribal organiza-
tion to overcome all stated objections;
‘‘(C) at the request of the tribe or tribal organization,
provide the tribe or tribal organization a hearing on the
record under the same rules and regulations that apply
under the Indian Self-Determination and Education Assist-
ance Act; and
‘‘(D) provide an opportunity to appeal the objection
raised.
‘‘(2) TIMELINE FOR RECONSIDERATION OF AMENDED APPLICA-
TIONS.—The Secretary shall reconsider any amended applica-
tion submitted under this part within 60 days after the
amended application is submitted to the Secretary.
‘‘(g) REPORT.—The Bureau shall submit an annual report to
the Congress on all applications received, and actions taken
(including the costs associated with such actions), under this section
at the same time that the President is required to submit to
Congress the budget under section 1105 of title 31, United States
Code.
‘‘SEC. 5206. DURATION OF ELIGIBILITY DETERMINATION.
‘‘(a) IN GENERAL.—If the Secretary determines that a tribally
controlled school is eligible for assistance under this part, the eligi-
bility determination shall remain in effect until the determination
is revoked by the Secretary, and the requirements of subsection
(b) or (c) of section 5205, if applicable, shall be considered to
have been met with respect to such school until the eligibility
determination is revoked by the Secretary.
‘‘(b) ANNUAL REPORTS.—
‘‘(1) IN GENERAL.—Each recipient of a grant provided under
this part shall complete an annual report which shall be limited
to—
‘‘(A) an annual financial statement reporting revenue
and expenditures as defined by the cost accounting estab-
lished by the grantee;
‘‘(B) an annual financial audit conducted pursuant to
the standards of the Single Audit Act of 1984;
‘‘(C) a biennial compliance audit of the procurement
of personal property during the period for which the report
is being prepared that shall be in compliance with written
procurement standards that are developed by the local
school board;
‘‘(D) an annual submission to the Secretary of the
number of students served and a brief description of pro-
grams offered under the grant; and
‘‘(E) a program evaluation conducted by an impartial
evaluation review team, to be based on the standards estab-
lished for purposes of subsection (c)(1)(A)(ii).
‘‘(2) EVALUATION REVIEW TEAMS.—Where appropriate, other
tribally controlled schools and representatives of tribally con-
trolled community colleges shall make up members of the
evaluation review teams.
‘‘(3) EVALUATIONS.—In the case of a school which is accred-
ited, evaluations will be conducted at intervals under the terms
of accreditation.
‘‘(4) SUBMISSION OF REPORT.—
H. R. 1—649
‘‘(A) TO
TRIBAL
GOVERNING
BODY.—Upon completion
of the report required under paragraph (1), the recipient
of the grant shall send (via first class mail, return receipt
requested) a copy of such annual report to the tribal gov-
erning body (as defined in section 1132(f) of the Education
Amendments of 1978) of the tribally controlled school.
‘‘(B) TO
SECRETARY.—Not later than 30 days after
receiving written confirmation that the tribal governing
body has received the report sent pursuant to subparagraph
(A), the recipient of the grant shall send a copy of the
report to the Secretary.
‘‘(c) REVOCATION OF ELIGIBILITY.—
‘‘(1) DETERMINATION OF ELIGIBILITY FOR ASSISTANCE.—The
Secretary shall not revoke a determination that a school is
eligible for assistance under this part if—
‘‘(A) the Indian tribe or tribal organization submits
the reports required under subsection (b) with respect to
the school; and
‘‘(B) at least one of the following clauses applies with
respect to the school:
‘‘(i) The school is certified or accredited by a State
or regional accrediting association 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 students within the edu-
cation programs are, or will be, accepted at grade
level by a State certified or regionally accredited
institution.
‘‘(ii) The Secretary determines that there is a
reasonable expectation that the certification or accredi-
tation described in clause (i), or candidacy in good
standing for such certification or accreditation, will
be achieved by the school within 3 years. The school
seeking accreditation shall remain under the standards
of the Bureau in effect on the date of enactment of
the Native American Education Improvement Act of
2001 until such time as the school is accredited, except
that if the Bureau standards are in conflict with the
standards of the accrediting agency, the standards of
such agency shall apply in such case.
‘‘(iii) The school is accredited by a tribal depart-
ment of education if such accreditation is accepted
by a generally recognized regional or State accredita-
tion agency.
‘‘(iv)(I) With respect to a school that lacks accredi-
tation, or that is not a candidate for accreditation,
based on circumstances that are not beyond the control
of the school board, every 3 years an impartial eval-
uator agreed upon by the Secretary and the grant
recipient conducts evaluations of the school, and the
school receives a positive assessment under such
evaluations. The evaluations are conducted under
standards adopted by a contractor under a contract
for the school entered into under the Indian Self-Deter-
mination and Education Assistance Act (or revisions
of such standards agreed to by the Secretary and the
H. R. 1—650
grant recipient) prior to the date of enactment of the
Native American Education Improvement Act of 2001.
‘‘(II) If the Secretary and a grant recipient other
than a tribal governing body fail to agree on such
an evaluator, the tribal governing body shall choose
the evaluator or perform the evaluation. If the Sec-
retary and a grant recipient that is a tribal governing
body fail to agree on such an evaluator, subclause
(I) shall not apply.
‘‘(III) A positive assessment by an impartial eval-
uator under this clause shall not affect the revocation
of a determination of eligibility by the Secretary where
such revocation is based on circumstances that were
within the control of the school board.
‘‘(2) NOTICE
REQUIREMENTS
FOR
REVOCATION.—The Sec-
retary shall not revoke a determination that a school is eligible
for assistance under this part, or reassume control of a school
that was a Bureau school prior to approval of an application
submitted under section 5206(b)(1)(A) until the Secretary—
‘‘(A) provides notice to the tribally controlled school
and the tribal governing body (within the meaning of sec-
tion 1141 of the Education Amendments of 1978) of the
tribally controlled school which states—
‘‘(i) the specific deficiencies that led to the revoca-
tion or resumption determination; and
‘‘(ii) the actions that are needed to remedy such
deficiencies; and
‘‘(B) affords such authority an opportunity to effect
the remedial actions.
‘‘(3) TECHNICAL ASSISTANCE.—The Secretary shall provide
such technical assistance to enable the school and governing
body to carry out such remedial actions.
‘‘(4) HEARING AND APPEAL.—In addition to notice and tech-
nical assistance under this subsection, the Secretary shall pro-
vide to the school and governing body—
‘‘(A) at the request of the school or governing body,
a hearing on the record regarding the revocation or re-
assumption determination, to be conducted under the rules
and regulations described in section 5206(f)(1)(C); and
‘‘(B) an opportunity to appeal the decision resulting
from the hearing.
‘‘(d) APPLICABILITY OF SECTION PURSUANT TO ELECTION UNDER
SECTION 5208(b).—With respect to a tribally controlled school that
receives assistance under this part pursuant to an election made
under section 5208(b)—
‘‘(1) subsection (b) of this section shall apply; and
‘‘(2) the Secretary may not revoke eligibility for assistance
under this part except in conformance with subsection (c) of
this section.
‘‘SEC. 5207. PAYMENT OF GRANTS; INVESTMENT OF FUNDS.
‘‘(a) PAYMENTS.—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
subsection, the Secretary shall make payments to grantees
under this part in two payments, of which—
‘‘(A) the first payment shall be made not later than
July 1 of each year in an amount equal to 80 percent