H. R. 1—651
of the amount which the grantee was entitled to receive
during the preceding academic year; and
‘‘(B) the second payment, consisting of the remainder
to which the grantee is entitled for the academic year,
shall be made not later than December 1 of each year.
‘‘(2) EXCESS
FUNDING.—In a case in which the amount
provided to a grant recipient under paragraph (1)(A) is in
excess of the amount that the recipient is entitled to receive
for the academic year involved, the recipient shall return to
the Secretary such excess amount not later than 30 days after
the final determination that the school was overpaid pursuant
to this section. The amount returned to the Secretary under
this paragraph shall be distributed equally to all schools in
the system.
‘‘(3) NEWLY FUNDED SCHOOLS.—For any school for which
no payment under this part was made from Bureau funds
in the preceding academic year, full payment of the amount
computed for the first academic year of eligibility under this
part shall be made not later than December 1 of the academic
year.
‘‘(4) LATE FUNDING.—With regard to funds for grantees
that become available for obligation on October 1 of the fiscal
year for which such funds are appropriated, the Secretary shall
make payments to grantees not later than December 1 of the
fiscal year.
‘‘(5) APPLICABILITY OF CERTAIN TITLE 31 PROVISIONS.—The
provisions of chapter 39 of title 31, United States Code, shall
apply to the payments required to be made by paragraphs
(1), (3), and (4).
‘‘(6) RESTRICTIONS.—Paragraphs (1), (3), and (4) shall be
subject to any restriction on amounts of payments under this
part that are imposed by a continuing resolution or other Act
appropriating the funds involved.
‘‘(b) INVESTMENT OF FUNDS.—
‘‘(1) TREATMENT OF INTEREST AND INVESTMENT INCOME.—
Notwithstanding any other provision of law, any interest or
investment income that accrues to any funds provided under
this part after such funds are paid to the Indian tribe or
tribal organization and before such funds are expended for
the purpose for which such funds were provided under this
part shall be the property of the Indian tribe or tribal organiza-
tion and shall not be taken into account by any officer or
employee of the Federal Government in determining whether
to provide assistance, or the amount of assistance, under any
provision of Federal law. Such interest income shall be spent
on behalf of the school.
‘‘(2) PERMISSIBLE
INVESTMENTS.—Funds provided under
this part may be invested by the Indian tribe or tribal organiza-
tion before such funds are expended for the purposes of this
part so long as such funds are—
‘‘(A) invested by the Indian tribe or tribal organization
only in obligations of the United States, or in obligations
or securities that are guaranteed or insured by the United
States, or mutual (or other) funds registered with the Secu-
rities and Exchange Commission and which only invest
in obligations of the United States, or securities that are
guaranteed or insured by the United States; or
H. R. 1—652
‘‘(B) deposited only into accounts that are insure by
and agency or instrumentality of the United States, or
are fully collateralized to ensure protection of the funds,
even in the event of a bank failure.
‘‘(c) RECOVERIES.—For the purposes of underrecovery and over-
recovery determinations by any Federal agency for any other funds,
from whatever source derived, funds received under this part shall
not be taken into consideration.
‘‘SEC. 5208. APPLICATION WITH RESPECT TO INDIAN SELF-DETERMINA-
TION AND EDUCATION ASSISTANCE ACT.
‘‘(a) CERTAIN PROVISIONS TO APPLY TO GRANTS.—The following
provisions of the Indian Self-Determination and Education Assist-
ance Act (and any subsequent revisions thereto or renumbering
thereof), shall apply to grants provided under this part:
‘‘(1) Section 5(f) (relating to single agency audit).
‘‘(2) Section 6 (relating to criminal activities; penalties).
‘‘(3) Section 7 (relating to wage and labor standards).
‘‘(4) Section 104 (relating to retention of Federal employee
coverage).
‘‘(5) Section 105(f) (relating to Federal property).
‘‘(6) Section 105(k) (relating to access to Federal sources
of supply).
‘‘(7) Section 105(l) (relating to lease of facility used for
administration and delivery of services).
‘‘(8) Section 106(f) (relating to limitation on remedies
relating to cost allowances).
‘‘(9) Section 106(j) (relating to use of funds for matching
or cost participation requirements).
‘‘(10) Section 106(k) (relating to allowable uses of funds).
‘‘(11) Section 108(c) (Model Agreements provisions (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)
(relating to availability of funds).
‘‘(12) Section 109 (relating to reassumption).
‘‘(13) Section 111 (relating to sovereign immunity 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 contract under the Indian
Self-Determination and Education Assistance Act that is in
effect on the date of enactment of the Native American Edu-
cation Improvement 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.
‘‘(2) EFFECTIVE
DATE
OF
ELECTION.—Any election made
under paragraph (1) shall take effect on the first day of July
immediately following the date of such election.
‘‘(3) EXCEPTION.—In any case in which the first day of
July immediately following the date of an election under para-
graph (1) is less than 60 days after such election, such election
shall not take effect until the first day of July of year following
the year in which the election is made.
‘‘(c) NO DUPLICATION.—No funds may be provided under any
contract entered into under the Indian Self-Determination and Edu-
cation Assistance Act to pay any expenses incurred in providing
H. R. 1—653
any program or services if a grant has been made under this
part to pay such expenses.
‘‘(d) TRANSFERS AND CARRYOVERS.—
‘‘(1) BUILDINGS, EQUIPMENT, SUPPLIES, MATERIALS.—A tribe
or tribal organization assuming the operation of—
‘‘(A) a Bureau school with assistance under this part
shall be entitled to the transfer or use of buildings, equip-
ment, supplies, and materials to the same extent as if
it were contracting under the Indian Self-Determination
and Education Assistance Act; or
‘‘(B) a contract school with assistance under this part
shall be entitled to the transfer or use of buildings, equip-
ment, supplies, and materials that were used in the oper-
ation of the contract school to the same extent as if it
were contracting under the Indian Self-Determination and
Education Assistance Act.
‘‘(2) FUNDS.—Any tribe or tribal organization which
assumes operation of a Bureau school with assistance under
this part and any tribe or tribal organization which elects
to operate a school with assistance under this part rather
that to continue as a contract school shall be entitled to any
funds which would carryover from the previous fiscal year
as if such school were operated as a contract school.
‘‘(3) FUNDING
FOR
SCHOOL
IMPROVEMENT.—Any tribe or
tribal organization that assumes operation of a Bureau school
or a contract school with assistance under this part shall be
eligible for funding for the improvement, alteration, replace-
ment, and repair of facilities to the same extent as a Bureau
school.
‘‘(e) EXCEPTIONS, PROBLEMS, AND DISPUTES.—Any exception or
problem cited in an audit conducted pursuant to section 5206(b)(1),
any dispute regarding a grant authorized to be made pursuant
to this part or any amendment to such grant, and any dispute
involving an administrative cost grant under section 1128 of the
Education Amendments of 1978 shall be administered under the
provisions governing such exceptions, problems, or disputes in the
case of contracts under the Indian Self-Determination and Edu-
cation Assistance Act. The Equal Access to Justice Act shall apply
to administrative appeals filed after September 8, 1988, by grantees
regarding a grant under this part, including an administrative
cost grant.
‘‘SEC. 5209. ROLE OF THE DIRECTOR.
‘‘Applications for grants under this part, and all application
modifications, shall be reviewed and approved by personnel under
the direction and control of the Director of the Office of Indian
Education Programs. Required reports shall be submitted to edu-
cation personnel under the direction and control of the Director
of such Office.
‘‘SEC. 5210. REGULATIONS.
‘‘The Secretary is authorized to issue regulations relating to
the discharge of duties specifically assigned to the Secretary in
this part. For all other matters relating to the details of planning,
developing, implementing, and evaluating grants under this part,
the Secretary shall not issue regulations.
H. R. 1—654
‘‘SEC. 5211. THE TRIBALLY CONTROLLED GRANT SCHOOL ENDOWMENT
PROGRAM.
‘‘(a) IN GENERAL.—
‘‘(1) ESTABLISHMENT.—Each school receiving a grant under
this part may establish, at a federally insured financial institu-
tion, a trust fund for the purposes of this section.
‘‘(2) DEPOSITS AND USE.—The school may provide—
‘‘(A) for deposit into the trust fund, only funds from
non-Federal sources, except that the interest on funds
received from grants provided under this part may be used
for that purpose;
‘‘(B) for deposit into the trust fund, any earnings on
funds deposited in the fund; and
‘‘(C) for the sole use of the school any noncash, in-
kind contributions of real or personal property, which may
at any time be used, sold, or otherwise disposed of.
‘‘(b) INTEREST.—Interest from the fund established under sub-
section (a) may periodically be withdrawn and used, at the discre-
tion of the school, to defray any expenses associated with the
operation of the school consistent with the purposes of this Act.
‘‘SEC. 5212. DEFINITIONS.
‘‘In this part:
‘‘(1) BUREAU.—The term ‘Bureau’ means the Bureau of
Indian Affairs of the Department of the Interior.
‘‘(2) ELIGIBLE INDIAN STUDENT.—The term ‘eligible Indian
student’ has the meaning given such term in section 1127(f)
of the Education Amendments of 1978.
‘‘(3) INDIAN.—The term ‘Indian’ means a member of an
Indian tribe, and includes individuals who are eligible for mem-
bership in a tribe, and the child or grandchild of such an
individual.
‘‘(4) INDIAN
TRIBE.—The term ‘Indian tribe’ means any
Indian tribe, band, nation, or other organized group or commu-
nity, including an Alaska Native Village Corporation or
Regional Corporation (as defined in or established pursuant
to the Alaska Native Claims Settlement Act), which is recog-
nized as eligible for the special programs and services provided
by the United States to Indians because of their status as
Indians.
‘‘(5) LOCAL EDUCATIONAL AGENCY.—The term ‘local edu-
cational agency’ means a public board of education or other
public authority legally constituted within a State for either
administrative control or direction of, or to perform a service
function for, public elementary schools or secondary schools
in a city, county, township, school district, or other political
subdivision of a State or such combination of school districts
or counties as are recognized in a State as an administrative
agency for the State’s public elementary schools or secondary
schools. Such term includes any other public institution or
agency having administrative control and direction of a public
elementary school or secondary school.
‘‘(6) SECRETARY.—The term ‘Secretary’ means the Secretary
of the Interior.
‘‘(7) TRIBAL GOVERNING BODY.—The term ‘tribal governing
body’ means, with respect to any school that receives assistance