392
the commitment of those institutions, agencies, or
organizations to the applicant’s program;
‘‘(4) a description of how the applicant will
evaluate the progress and effectiveness of its pro-
gram, including—
‘‘(A) the program’s goals and objectives;
‘‘(B) the performance indicators the appli-
cant will use to measure the program’s
progress; and
‘‘(C) the outcome measures that will be
used to determine the program’s effectiveness;
and
‘‘(5) such other information and assurances as
the Secretary may require.
‘‘(d) USES OF FUNDS AND PERIOD OF SERVICE.—
‘‘(1) AUTHORIZED
ACTIVITIES.—Funds under
this section may be used for—
‘‘(A) recruiting program participants, in-
cluding informing them of opportunities under
the program and putting them in contact with
other institutions, agencies, or organizations
that would train, place, and support them;
‘‘(B) training stipends and other financial
incentives for program participants, not to ex-
ceed $5,000 per participant;
393
‘‘(C) assisting institutions of higher edu-
cation or other providers of teacher training to
tailor their training to meet the particular
needs of professionals who are changing their
careers to teaching;
‘‘(D) placement activities, including identi-
fying high-need local educational agencies with
a need for the particular skills and characteris-
tics of the newly trained program participants
and assisting those participants to obtain em-
ployment in those local educational agencies;
and
‘‘(E) post-placement induction or support
activities for program participants.
‘‘(2) PERIOD OF SERVICE.—A program partici-
pant in a program under this section who completes
his or her training shall serve in a high-need local
educational agency for at least 3 years.
‘‘(3) REPAYMENT.—The Secretary shall estab-
lish such requirements as the Secretary determines
appropriate to ensure that program participants who
receive a training stipend or other financial incentive
under paragraph (1)(B), but fail to complete their
service obligation under paragraph (2), repay all or
a portion of such stipend or other incentive.
394
‘‘(e) EQUITABLE
DISTRIBUTION.—To the extent
practicable, the Secretary shall make awards under this
section that support programs in different geographic re-
gions of the United States.
‘‘(f) DEFINITION.—As used in this section, the term
‘program participants’ means career-changing profes-
sionals who—
‘‘(1) hold at least a baccalaureate degree;
‘‘(2) demonstrate interest in, and commitment
to, becoming a teacher; and
‘‘(3) have knowledge and experience that are
relevant to teaching a high-need subject area in a
high-need local educational agency.
‘‘Subpart 5—Funding
‘‘SEC. 2051. AUTHORIZATIONS OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—For the purpose of carrying out
this part, other than subpart 4, there are authorized to
be appropriated $3,600,000,000 for fiscal year 2002 and
such sums as may be necessary for each of fiscal years
2003 through 2006.
‘‘(b) SUBPART 4.—For the purpose of carrying out
subpart 4, there are authorized to be appropriated
$50,000,000 for fiscal year 2002 and such sums as may
be necessary for each of fiscal years 2003 through 2006.
395
‘‘Subpart 6—General Provisions
‘‘SEC. 2061. DEFINITIONS.
‘‘For purposes of this part—
‘‘(1) ARTS AND SCIENCES.—The term ‘arts and
sciences’ means—
‘‘(A) when referring to an organizational
unit of an institution of higher education, any
academic unit that offers one or more academic
majors in disciplines or content areas cor-
responding to the academic subject matter
areas in which teachers provide instruction; and
‘‘(B) when referring to a specific academic
subject matter area, the disciplines or content
areas in which academic majors are offered by
the arts and sciences organizational unit.
‘‘(2) BEGINNING TEACHER.—The term ‘begin-
ning teacher’ means an educator in a public school
who has not yet been teaching 3 full school years.
‘‘(3) MENTORING PROGRAM.—The term ‘men-
toring program’ means to provide professional sup-
port and development, instruction, and guidance to
beginning teachers, but does not include a teacher or
individual who begins to work in a supervisory posi-
tion.
‘‘(4) PUBLICLY
REPORT.—The term ‘publicly
report’, when used with respect to the dissemination
396
of information, means that the information is made
widely available to the public, including parents and
students, through such means as the Internet and
major print and broadcast media outlets.’’.
SEC. 202. NATIONAL WRITING PROJECT.
(a) TRANSFER
AND REDESIGNATION.—Part K of
title X (20 U.S.C. 8331 et seq.) is transferred and redesig-
nated as part B of title II. Sections 10991 and 10992
are redesignated as sections 2101 and 2102, respectively.
(b) EVALUATION.—Section 2102(g) (as so redesig-
nated) is amended—
(1) in paragraph (1), by striking ‘‘14701.’’ and
inserting ‘‘8651.’’; and
(2) in paragraph (2), by striking ‘‘1994’’ and
inserting ‘‘2002’’.
(c) REAUTHORIZATION.—Section 2102(i) (as so re-
designated) is amended by striking ‘‘$4,000,000 for fiscal
year 1995, and such sums as may be necessary for each
of the four succeeding fiscal years,’’ and inserting ‘‘such
sums as may be necessary for fiscal year 2002 and the
four succeeding fiscal years,’’.
(d) CONTINUATION OF AWARDS.—Notwithstanding
any other provision of this Act, any person or agency that
was awarded a grant or contract under part K of title
X (20 U.S.C. 8331 et seq.) prior to the date of the enact-
397
ment of this Act shall continue to receive funds in accord-
ance with the terms of such award until the date on which
the award period terminates under such terms.
SEC. 203. CIVIC EDUCATION; TEACHER LIABILITY PROTEC-
TION.
(a) IN GENERAL.—Title II, as amended by sections
201 and 202, is further amended by adding at the end
the following:
‘‘PART C—CIVIC EDUCATION
‘‘SEC. 2201. SHORT TITLE.
‘‘This part may be cited as the ‘Education for De-
mocracy Act’.
‘‘SEC. 2202. FINDINGS.
‘‘The Congress finds that—
‘‘(1) college freshmen surveyed in 1999 by the
Higher Education Research Institute at the Univer-
sity of California at Los Angeles demonstrated high-
er levels of disengagement, both academically and
politically, than any previous entering class of stu-
dents;
‘‘(2) college freshmen in 1999 demonstrated the
lowest levels of political interest in the 20-year his-
tory of surveys conducted by the Higher Education
Research Institute at the University of California at
Los Angeles;
398
‘‘(3) United States secondary school students
expressed relatively low levels of interest in politics
and economics in a 1999 Harris survey;
‘‘(4) the 32d Annual Phi Delta Kappa/Gallup
Poll of 2000 indicated that preparing students to be-
come responsible citizens was the most important
purpose of public schools;
‘‘(5) Americans surveyed by the Organization of
Economic Cooperation and Development indicated
that only 59 percent had confidence that schools
have a major effect on the development of good citi-
zenship;
‘‘(6) teachers too often do not have sufficient
expertise in the subjects that they teach, and 50 per-
cent of all secondary school history students in
America are being taught by teachers with neither a
major nor a minor in history;
‘‘(7) secondary school students correctly an-
swered fewer than 50 percent of the questions on a
national test of economic knowledge in a 1999 Har-
ris survey;
‘‘(8) the 1998 National Assessment of Edu-
cational Progress indicated that students have only
superficial knowledge of, and lacked a depth of un-
derstanding regarding, civics;
399
‘‘(9) civics and economic education are impor-
tant not only to developing citizenship competencies
in the United States but also are critical to sup-
porting political stability and economic health in
other democracies, particularly emerging democratic
market economies;
‘‘(10) more than 75 percent of Americans sur-
veyed by the National Constitution Center in 1997
admitted that they knew only some or very little
about the Constitution of the United States; and
‘‘(11) the Constitution of the United States is
too often viewed within the context of history and
not as a living document that shapes current events.
‘‘SEC. 2203. PURPOSE.
‘‘It is the purpose of this part—
‘‘(1) to improve the quality of civics and gov-
ernment education by educating students about the
history and principles of the Constitution of the
United States, including the Bill of Rights;
‘‘(2) to foster civic competence and responsi-
bility; and
‘‘(3) to improve the quality of civic education
and economic education through cooperative civic
education and economic education exchange pro-
grams with emerging democracies.
400
‘‘SEC. 2204. AUTHORITY.
‘‘The Secretary may make grants to, or enter into
contracts with—
‘‘(1) the Center for Civic Education to carry
out civic education activities in accordance with sec-
tions 2205 and 2206; and
‘‘(2) the National Council on Economic Edu-
cation to carry out economic education activities in
accordance with section 2206.
‘‘SEC. 2205. WE THE PEOPLE PROGRAM.
‘‘(a) USE OF FUNDS.—The Center for Civic Edu-
cation may use funds made available under grants or con-
tracts under section 2204(1) only to carry out activities—
‘‘(1) under the Citizen and the Constitution
program in accordance with subsection (b); and
‘‘(2) under the Project Citizen program in ac-
cordance with subsection (c).
‘‘(b) CITIZEN AND THE CONSTITUTION PROGRAM.—
‘‘(1) EDUCATIONAL
ACTIVITIES.—The Center
for Civic Education—
‘‘(A) shall use funds made available under
grants or contracts under section 2204(1)—
‘‘(i) to continue and expand the edu-
cational activities of the program entitled
the ‘We the People . . . The Citizen and the
401
Constitution’ administered by the Center
for Civic Education;
‘‘(ii) to carry out activities to enhance
student attainment of challenging aca-
demic content standards in civics and gov-
ernment;
‘‘(iii) to provide a course of instruc-
tion on the basic principles of the Nation’s
constitutional democracy and the history of
the Constitution of the United States, in-
cluding the Bill of Rights;
‘‘(iv) to provide, at the request of a
participating school, school and community
simulated congressional hearings following
the course of instruction described in
clause (iii); and
‘‘(v) to provide an annual national
competition of simulated congressional
hearings for secondary school students who
wish to participate in such a program; and
‘‘(B) may use assistance made available
under section 2204(1)—
‘‘(i) to provide advanced sustained
and ongoing training of teachers about the
402
Constitution of the United States and the
political system of the United States;
‘‘(ii) to provide materials and methods
of instruction, including teacher training,
that utilize the latest advancements in edu-
cational technology; and
‘‘(iii) to provide civic education mate-
rials and services to address specific prob-
lems such as the prevention of school vio-
lence and the abuse of drugs and alcohol.
‘‘(2) AVAILABILITY OF PROGRAM.—As a condi-
tion of receipt of funds under grants or contracts
under section 2204(1), the Secretary shall require
the Center for Civic Education to make the edu-
cation program authorized under this subsection
available to public and private elementary schools
and secondary schools, including Bureau-funded
schools, in each of the 435 congressional districts,
and in the District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern
Mariana Islands.
‘‘(c) PROJECT CITIZEN.—
‘‘(1) EDUCATIONAL
ACTIVITIES.—The Center
for Civic Education—
403
‘‘(A) shall use funds made available under
grants or contracts under section 2204(1)—
‘‘(i) to continue and expand the edu-
cational activities of the program entitled
the ‘We the People . . . Project Citizen’ pro-
gram administered by the Center;
‘‘(ii) to carry out activities to enhance
student attainment of challenging aca-
demic content standards in civics and gov-
ernment;
‘‘(iii) to provide a course of instruc-
tion at the middle school level on the roles
of State and local governments in the Fed-
eral system established by the Constitution
of the United States; and
‘‘(iv) to provide an annual national
showcase or competition; and
‘‘(B) may use funds made available under
grants or contracts under section 2204(1)—
‘‘(i) to provide optional school and
community 
simulated 
State 
legislative
hearings;
‘‘(ii) to provide advanced sustained
and ongoing training of teachers on the
roles of State and local governments in the
404
Federal system established by the Con-
stitution of the United States;
‘‘(iii) to provide materials and meth-
ods of instruction, including teacher train-
ing, that utilize the latest advancements in
educational technology; and
‘‘(iv) to provide civic education mate-
rials and services to address specific prob-
lems such as the prevention of school vio-
lence and the abuse of drugs and alcohol.
‘‘(2) AVAILABILITY OF PROGRAM.—As a condi-
tion of receipt of funds under grants or contracts
under section 2204(1), the Secretary shall require
the Center for Civic Education to make the edu-
cation program authorized under this subsection
available to public and private middle schools, in-
cluding Bureau-funded schools, in each of the 50
States, the District of Columbia, the Commonwealth
of Puerto Rico, the Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern
Mariana Islands.
‘‘(d) BUREAU-FUNDED SCHOOL DEFINED.—In this
section, the term ‘Bureau-funded school’ has the meaning
given such term in section 1146 of the Education Amend-
ments of 1978 (25 U.S.C. 2026).
405
‘‘SEC. 2206. COOPERATIVE CIVIC EDUCATION AND ECO-
NOMIC EDUCATION EXCHANGE PROGRAMS.
‘‘(a) USE OF FUNDS.—The Center for Civic Edu-
cation and the National Council on Economic Education
may use funds made available under grants or contracts
under section 2204(2) only to carry out cooperative edu-
cation exchange programs that—
‘‘(1) make available to educators from eligible
countries exemplary curriculum and teacher training
programs in civics and government education, and
economics education, developed in the United States;
‘‘(2) assist eligible countries in the adaptation,
implementation, and institutionalization of programs
described in paragraph (1);
‘‘(3) create and implement programs for civics
and government education, and economic education,
for students that draw upon the experiences of the
participating eligible countries;
‘‘(4) provide means for the exchange of ideas
and experiences in civics and government education,
and economic education, among political, edu-
cational, governmental, and private sector leaders of
participating eligible countries; and
‘‘(5) provide support for—
‘‘(A) independent research and evaluation
to determine the effects of educational pro-
406
grams on students’ development of the knowl-
edge, skills, and traits of character essential for
the preservation and improvement of constitu-
tional democracy; and
‘‘(B) effective participation in and the
preservation and improvement of an efficient
market economy.
‘‘(b) ACTIVITIES.—In carrying out the cooperative
education exchange programs assisted under this section,
the Center for Civic Education and the National Council
on Economic Education shall—
‘‘(1) provide to the participants from eligible
countries—
‘‘(A) seminars on the basic principles of
United States constitutional democracy and
economic system, including seminars on the
major governmental and economic institutions
and systems in the United States, and visits to
such institutions;
‘‘(B) visits to school systems, institutions
of higher education, and nonprofit organizations
conducting exemplary programs in civics and
government education, and economic education,
in the United States;
407
‘‘(C) translations and adaptations with re-
spect to United States civics and government
education, and economic education, curricular
programs for students and teachers, and in the
case of training programs for teachers trans-
lations and adaptations into forms useful in
schools in eligible countries, and joint research
projects in such areas; and
‘‘(D) independent research and evaluation
assistance—
‘‘(i) to determine the effects of the co-
operative education exchange programs on
students’ development of the knowledge,
skills, and traits of character essential for
the preservation and improvement of con-
stitutional democracy; and
‘‘(ii) to identify effective participation
in and the preservation and improvement
of an efficient market economy;
‘‘(2) provide to the participants from the
United States—
‘‘(A) seminars on the histories, economies,
and systems of government of eligible countries;
‘‘(B) visits to school systems, institutions
of higher education, and organizations con-
408
ducting exemplary programs in civics and gov-
ernment education, and economic education, lo-
cated in eligible countries;
‘‘(C) assistance from educators and schol-
ars in eligible countries in the development of
curricular materials on the history, government,
and economy of such countries that are useful
in United States classrooms;
‘‘(D) opportunities to provide onsite dem-
onstrations of United States curricula and ped-
agogy for educational leaders in eligible coun-
tries; and
‘‘(E) independent research and evaluation
assistance to determine—
‘‘(i) the effects of the cooperative edu-
cation exchange programs assisted under
this section on students’ development of
the knowledge, skills, and traits of char-
acter essential for the preservation and im-
provement of constitutional democracy;
and
‘‘(ii) effective participation in and im-
provement of an efficient market economy;
and
409
‘‘(3) assist participants from eligible countries
and the United States to participate in international
conferences on civics and government education, and
economic education, for educational leaders, teacher
trainers, scholars in related disciplines, and edu-
cational policymakers.
‘‘(c) PARTICIPANTS.—The primary participants in
the cooperative education exchange programs assisted
under this section shall be educational leaders in the areas
of civics and government education, and economic edu-
cation, including teachers, curriculum and teacher train-
ing specialists, scholars in relevant disciplines, and edu-
cational policymakers, and government and private sector
leaders from the United States and eligible countries.
‘‘(d) CONSULTATION.—The Secretary may make a
grant, or enter into a contract, under section 2204(2) only
if the Secretary of State concurs with the Secretary that
such grant, or contract, is consistent with the foreign pol-
icy of the United States.
‘‘(e) AVOIDANCE OF DUPLICATION.—With the con-
currence of the Secretary of State, the Secretary shall en-
sure that—
‘‘(1) the activities carried out under the pro-
grams assisted under this section are not duplicative
410
of other activities conducted in eligible countries;
and
‘‘(2) any institutions in eligible countries, with
which the Center for Civic Education or the Na-
tional Council on Economic Education may work in
conducting such activities, are creditable.
‘‘(f) ELIGIBLE COUNTRY DEFINED.—In this section,
the term ‘eligible country’ means a Central European
country, an Eastern European country, Lithuania, Latvia,
Estonia, the independent states of the former Soviet
Union as defined in section 3 of the FREEDOM Support
Act (22 U.S.C. 5801), the Republic of Ireland, the prov-
ince of Northern Ireland in the United Kingdom, and any
developing country (as such term is defined in section
209(d) of the Education for the Deaf Act) if the Sec-
retary, with the concurrence of the Secretary of State, de-
termines that such developing country has a democratic
form of government.
‘‘SEC. 2207. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) WE THE PEOPLE PROGRAM.—There are
authorized to be appropriated to carry out sections
2204(1) and 2205 such sums as may be necessary
for each of fiscal years 2002 through 2006.
411
‘‘(2) COOPERATIVE CIVIC EDUCATION AND ECO-
NOMIC
EDUCATION
EXCHANGE
PROGRAMS.—There
are authorized to be appropriated to carry out sec-
tions 2204(2) and 2206 such sums as may be nec-
essary for each of fiscal years 2002 through 2006.
‘‘(b) LIMITATION.—In each fiscal year, the Secretary
may use not more than 50 percent of the amount appro-
priated under subsection (a)(2) for assistance for eco-
nomic educational activities.
‘‘PART D—TEACHER LIABILITY PROTECTION
‘‘SEC. 2301. SHORT TITLE.
‘‘This part may be cited as the ‘Paul Coverdell Teach-
er Liability Protection Act of 2001’.
‘‘SEC. 2302. FINDINGS AND PURPOSE.
‘‘(a) FINDINGS.—Congress makes the following find-
ings:
‘‘(1) The ability of teachers, principals and
other school professionals to teach, inspire and
shape the intellect of our Nation’s elementary and
secondary school students is deterred and hindered
by frivolous lawsuits and litigation.
‘‘(2) Each year more and more teachers, prin-
cipals and other school professionals face lawsuits
for actions undertaken as part of their duties to pro-
412
vide millions of school children quality educational
opportunities.
‘‘(3) Too many teachers, principals and other
school professionals face increasingly severe and ran-
dom acts of violence in the classroom and in schools.
‘‘(4) Providing teachers, principals and other
school professionals a safe and secure environment is
an important part of the effort to improve and ex-
pand educational opportunities.
‘‘(5) Clarifying and limiting the liability of
teachers, principals and other school professionals
who undertake reasonable actions to maintain order,
discipline and an appropriate educational environ-
ment is an appropriate subject of Federal legislation
because—
‘‘(A) the scope of the problems created by
the legitimate fears of teachers, principals and
other school professionals about frivolous, arbi-
trary or capricious lawsuits against teachers is
of national importance; and
‘‘(B) millions of children and their families
across the Nation depend on teachers, prin-
cipals and other school professionals for the in-
tellectual development of children.
413
‘‘(b) PURPOSE.—The purpose of this part is to pro-
vide teachers, principals and other school professionals the
tools they need to undertake reasonable actions to main-
tain order, discipline and an appropriate educational envi-
ronment.
‘‘SEC. 2303. PREEMPTION AND ELECTION OF STATE NON-
APPLICABILITY.
‘‘(a) PREEMPTION.—This part preempts the laws of
any State to the extent that such laws are inconsistent
with this part, except that this part shall not preempt any
State law that provides additional protection from liability
relating to teachers.
‘‘(b) ELECTION OF STATE REGARDING NONAPPLICA-
BILITY.—This part shall not apply to any civil action in
a State court against a teacher with respect to claims aris-
ing within that State if such State enacts a statute in ac-
cordance 
with 
State 
requirements 
for 
enacting
legislation—
‘‘(1) citing the authority of this subsection;
‘‘(2) declaring the election of such State that
this part shall not apply, as of a date certain, to
such civil action in the State; and
‘‘(3) containing no other provisions.
414
‘‘SEC. 2304. LIMITATION ON LIABILITY FOR TEACHERS.
‘‘(a) LIABILITY PROTECTION FOR TEACHERS.—Ex-
cept as provided in subsections (b) and (c), no teacher in
a school shall be liable for harm caused by an act or omis-
sion of the teacher on behalf of the school if—
‘‘(1) the teacher was acting within the scope of
the teacher’s employment or responsibilities related
to providing educational services;
‘‘(2) the actions of the teacher were carried out
in conformity with local, State, and Federal laws,
rules and regulations in furtherance of efforts to
control, discipline, expel, or suspend a student or
maintain order or control in the classroom or school;
‘‘(3) if appropriate or required, the teacher was
properly licensed, certified, or authorized by the ap-
propriate authorities for the activities or practice in
the State in which the harm occurred, where the ac-
tivities were or practice was undertaken within the
scope of the teacher’s responsibilities;
‘‘(4) the harm was not caused by willful or
criminal misconduct, gross negligence, reckless mis-
conduct, or a conscious, flagrant indifference to the
rights or safety of the individual harmed by the
teacher; and
‘‘(5) the harm was not caused by the teacher
operating a motor vehicle, vessel, aircraft, or other
415
vehicle for which the State requires the operator or
the owner of the vehicle, craft, or vessel to—
‘‘(A) possess an operator’s license; or
‘‘(B) maintain insurance.
‘‘(b) CONCERNING RESPONSIBILITY OF TEACHERS
TO SCHOOLS AND GOVERNMENTAL ENTITIES.—Nothing
in this section shall be construed to affect any civil action
brought by any school or any governmental entity against
any teacher of such school.
‘‘(c) EXCEPTIONS TO TEACHER LIABILITY PROTEC-
TION.—If the laws of a State limit teacher liability subject
to one or more of the following conditions, such conditions
shall not be construed as inconsistent with this section:
‘‘(1) A State law that requires a school or gov-
ernmental entity to adhere to risk management pro-
cedures, including mandatory training of teachers.
‘‘(2) A State law that makes the school or gov-
ernmental entity liable for the acts or omissions of
its teachers to the same extent as an employer is lia-
ble for the acts or omissions of its employees.
‘‘(3) A State law that makes a limitation of li-
ability inapplicable if the civil action was brought by
an officer of a State or local government pursuant
to State or local law.
416
‘‘(d) LIMITATION ON PUNITIVE DAMAGES BASED ON
THE ACTIONS OF TEACHERS.—
‘‘(1) GENERAL RULE.—Punitive damages may
not be awarded against a teacher in an action
brought for harm based on the action of a teacher
acting within the scope of the teacher’s responsibil-
ities to a school or governmental entity unless the
claimant establishes by clear and convincing evidence
that the harm was proximately caused by an action
of such teacher which constitutes willful or criminal
misconduct, or a conscious, flagrant indifference to
the rights or safety of the individual harmed.
‘‘(2) CONSTRUCTION.—Paragraph (1) does not
create a cause of action for punitive damages and
does not preempt or supersede any Federal or State
law to the extent that such law would further limit
the award of punitive damages.
‘‘(e) EXCEPTIONS TO LIMITATIONS ON LIABILITY.—
‘‘(1) IN GENERAL.—The limitations on the li-
ability of a teacher under this part shall not apply
to any misconduct that—
‘‘(A) constitutes a crime of violence (as
that term is defined in section 16 of title 18,
United States Code) or act of international ter-
rorism (as that term is defined in section 2331
417
of title 18, United States Code) for which the
defendant has been convicted in any court;
‘‘(B) involves a sexual offense, as defined
by applicable State law, for which the defendant
has been convicted in any court;
‘‘(C) involves misconduct for which the de-
fendant has been found to have violated a Fed-
eral or State civil rights law; or
‘‘(D) where the defendant was under the
influence (as determined pursuant to applicable
State law) of intoxicating alcohol or any drug at
the time of the misconduct.
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in
this subsection shall be construed to affect sub-
section (a)(3) or (d).
‘‘SEC. 2305. LIABILITY FOR NONECONOMIC LOSS.
‘‘(a) GENERAL RULE.—In any civil action against a
teacher, based on an action of a teacher acting within the
scope of the teacher’s responsibilities to a school or gov-
ernmental entity, the liability of the teacher for non-
economic loss shall be determined in accordance with sub-
section (b).
‘‘(b) AMOUNT OF LIABILITY.—
‘‘(1) IN GENERAL.—Each defendant who is a
teacher, shall be liable only for the amount of non-
418
economic loss allocated to that defendant in direct
proportion to the percentage of responsibility of that
defendant (determined in accordance with paragraph
(2)) for the harm to the claimant with respect to
which that defendant is liable. The court shall
render a separate judgment against each defendant
in an amount determined pursuant to the preceding
sentence.
‘‘(2) PERCENTAGE
OF
RESPONSIBILITY.—For
purposes of determining the amount of noneconomic
loss allocated to a defendant who is a teacher under
this section, the trier of fact shall determine the per-
centage of responsibility of that defendant for the
claimant’s harm.
‘‘SEC. 2306. RULE OF CONSTRUCTION.
‘‘Nothing in this part shall be construed to affect any
State or local law (including a rule or regulation) or policy
pertaining to the use of corporal punishment.
‘‘SEC. 2307. DEFINITIONS.
‘‘For purposes of this part:
‘‘(1) ECONOMIC
LOSS.—The term ‘economic
loss’ means any pecuniary loss resulting from harm
(including the loss of earnings or other benefits re-
lated to employment, medical expense loss, replace-
ment services loss, loss due to death, burial costs,
419
and loss of business or employment opportunities) to
the extent recovery for such loss is allowed under ap-
plicable State law.
‘‘(2) HARM.—The term ‘harm’ includes phys-
ical, nonphysical, economic, and noneconomic losses.
‘‘(3) NONECONOMIC LOSSES.—The term ‘non-
economic losses’ means losses for physical and emo-
tional pain, suffering, inconvenience, physical im-
pairment, mental anguish, disfigurement, loss of en-
joyment of life, loss of society and companionship,
loss of consortium (other than loss of domestic serv-
ice), hedonic damages, injury to reputation and all
other nonpecuniary losses of any kind or nature.
‘‘(4) SCHOOL.—The term ‘school’ means a pub-
lic or private kindergarten, a public or private ele-
mentary school or secondary school (as defined in
section 14101, or a home school.
‘‘(5) STATE.—The term ‘State’ means each of
the several States of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, any other territory or possession of the
United States, or any political subdivision of any
such State, territory, or possession.
420
‘‘(6) TEACHER.—The term ‘teacher’ means a
teacher, instructor, principal, administrator, or other
educational professional that works in a school, a
local school board and any member of such board,
and a local educational agency and any employee of
such agency.
‘‘SEC. 2308. APPLICABILITY.
‘‘This part applies to any claim for harm caused by
an act or omission of a teacher if that claim is filed on
or after the effective date of the No Child Left Behind
Act of 2001 without regard to whether the harm that is
the subject of the claim or the conduct that caused the
harm occurred before such effective date.’’.
TITLE III—EDUCATION OF LIM-
ITED ENGLISH PROFICIENT
AND IMMIGRANT CHILDREN;
INDIAN AND ALASKA NATIVE
EDUCATION
PART A—EDUCATION OF LIMITED ENGLISH
PROFICIENT AND IMMIGRANT CHILDREN
SEC. 301. PROGRAMS AUTHORIZED.
(a) TITLE HEADING.—The heading for title III is
amended to read as follows:
421
‘‘TITLE III—EDUCATION OF LIM-
ITED ENGLISH PROFICIENT
AND IMMIGRANT CHILDREN;
INDIAN AND ALASKA NATIVE
EDUCATION’’.
(b) SHORT TITLE.—Section 3101 (20 U.S.C. 6801)
is repealed.
(c) LIMITATION
ON
AVAILABILITY
OF
CERTAIN
FUNDS FOR SCHOOLS.—
(1) IN
GENERAL.—Section 3601 (20 U.S.C.
7001)—
(A) is transferred to part B of title V (as
amended by section 501) and inserted after sec-
tion 5204 (as so amended);
(B) is redesignated as section 5205; and
(C) is amended by striking ‘‘this title’’
each place such term appears and inserting
‘‘this part’’.
(2) PART HEADING REPEAL.—The part heading
for part F of title III is repealed.
(d) LIMITED ENGLISH PROFICIENT AND IMMIGRANT
CHILDREN.—Parts A through E of title III (20 U.S.C.
6811 et seq.) are amended to read as follows:
422
‘‘PART A—EDUCATION OF LIMITED ENGLISH
PROFICIENT AND IMMIGRANT CHILDREN
‘‘Subpart 1—English Language and Academic
Instructional Programs
‘‘SEC. 3101. SHORT TITLE.
‘‘This subpart may be cited as the ‘English Language
Proficiency and Academic Achievement Act’.
‘‘SEC. 3102. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—The Congress finds as follows:
‘‘(1) English is the common language of the
United States and every citizen and other person re-
siding in the United States should have a command
of the English language in order to develop to their
full potential.
‘‘(2) Limited English proficient children, in-
cluding recent immigrant children, must overcome a
number of challenges in receiving an education in
order to participate fully in American society,
including—
‘‘(A) segregated educational programs;
‘‘(B) disproportionate and improper place-
ment in special education and other special pro-
grams due to the use of inappropriate evalua-
tion procedures;
‘‘(C) the limited English proficiency of
their parents, which hinders the parents’ ability
423
to fully participate in the education of their
children; and
‘‘(D) a need for additional teachers and
other staff who are professionally trained and
qualified to serve such children.
‘‘(3) States and local educational agencies need
assistance in developing the capacity to provide pro-
grams of instruction that offer and provide an equal
educational opportunity to children who need special
assistance because English is not their dominant
language.
‘‘(4) Since 1979, the number of limited English
proficient children attending school in the United
States has more than doubled to greater than
4,000,000, and demographic trends indicate the pop-
ulation of limited English proficient children will
continue to increase.
‘‘(5) Native Americans, including native resi-
dents of the outlying areas, and Native American
languages (as such terms are defined in section 103
of the Native American Languages Act) have a
unique status under Federal law that requires spe-
cial policies within the broad purposes of this part
to serve the educational needs of language minority
students in the United States.
424
‘‘(6) Research, evaluation, and data collection
capabilities in the field of instruction for limited
English proficient children need to be strengthened
so that educators and other staff teaching limited
English proficient children in the classroom can bet-
ter identify and promote programs, program imple-
mentation strategies, and instructional practices that
result in the effective education of limited English
proficient children.
‘‘(7) The Federal Government has a special and
continuing obligation to ensure that States and local
educational agencies provide children of limited
English proficiency the same educational opportuni-
ties afforded other children.
‘‘(b) PURPOSES.—The purposes of this part are—
‘‘(1) to help ensure that children who are lim-
ited English proficient, including recent immigrant
children, attain English proficiency, develop high lev-
els of academic attainment in English, and meet the
same challenging State academic content standards
and challenging State student academic achievement
standards expected of all children;
‘‘(2) to develop high-quality programs designed
to assist local educational agencies in teaching lim-
ited English proficient children;
425
‘‘(3) to assist local educational agencies to de-
velop and enhance their capacity to provide high-
quality instructional programs designed to prepare
limited English proficient students, including recent
immigrant students, to enter all-English instruc-
tional settings within 3 years; and
‘‘(4) to provide State educational agencies and
local educational agencies with the flexibility to im-
plement instructional programs, tied to scientifically
based reading research and sound research and the-
ory on teaching limited English proficient children,
that the agencies believe to be the most effective for
teaching English.
‘‘SEC. 3103. PARENTAL NOTIFICATION AND CONSENT FOR
ENGLISH LANGUAGE INSTRUCTION.
‘‘(a) NOTIFICATION.—If a local educational agency
uses funds under this subpart to provide English language
instruction to limited English proficient children, the
agency shall inform a parent or the parents of a child par-
ticipating in an English language instruction program for
limited English proficient children assisted under this sub-
part of—
‘‘(1) the reasons for the identification of the
child as being in need of English language instruc-
tion;
426
‘‘(2) the child’s level of English proficiency, how
such level was assessed, and the status of the child’s
academic achievement;
‘‘(3) how the English language instruction pro-
gram will specifically help the child acquire English
and meet age-appropriate standards for grade pro-
motion and graduation;
‘‘(4) what the specific exit requirements are for
the program;
‘‘(5) the expected rate of transition from the
program into a classroom that is not tailored for
limited English proficient children; and
‘‘(6) the expected rate of graduation from high
school for the program if funds under this subpart
are used for children in secondary schools.
‘‘(b) CONSENT.—
‘‘(1) AGENCY REQUIREMENTS.—
‘‘(A) INFORMED
CONSENT.—For a child
who has been identified as limited English pro-
ficient prior to the beginning of the school year,
each local educational agency that receives
funds under this subpart shall make a reason-
able and substantial effort to obtain informed
parental consent prior to the placement of a
child in an English language instruction pro-
427
gram for limited English proficient children
funded under this subpart, if the program does
not include classes which exclusively or almost
exclusively use the English language in instruc-
tion.
‘‘(B) 
WRITTEN
CONSENT
NOT
OB-
TAINED.—
‘‘(i) IN GENERAL.—If written consent
is not obtained, the local educational agen-
cy shall maintain a written record that in-
cludes the date and the manner in which
such informed consent was sought, includ-
ing the specific efforts made to obtain such
consent.
‘‘(ii) PROOF OF EFFORT.—Notice, in
an understandable form, of specific efforts
made to obtain written consent and a copy
of the written record described in clause (i)
shall be mailed or delivered in writing to a
parent or the parents of a child prior to
placing the child in a program described in
subparagraph (A), and shall include a final
request for parental consent for such serv-
ices. After such notice has been mailed or
delivered in writing, the local educational
428
agency shall provide appropriate edu-
cational services.
‘‘(iii) SPECIAL
RULE
APPLICABLE
DURING
SCHOOL
YEAR.—For those chil-
dren who have not been identified as lim-
ited English proficient prior to the begin-
ning of the school year, the local edu-
cational agency shall make a reasonable
and substantial effort to obtain parental
consent under this clause. For such chil-
dren, the agency shall document, in writ-
ing, its specific efforts to obtain such con-
sent prior to placing the child in a pro-
gram described in subparagraph (A). After
such documentation has been made, the
local educational agency shall provide ap-
propriate educational services to such
child. The proof of documentation shall be
mailed or delivered in writing to a parent
or the parents of the child in a timely
manner and shall include information on
how to have their child immediately re-
moved from the program upon their re-
quest. Nothing in this clause shall be con-
strued as exempting a local educational
429
agency from complying with the notifica-
tion requirements of subsection (a) and the
consent requirements of this paragraph.
‘‘(2) PARENTAL RIGHTS.—A parent or the par-
ents of a child participating in an English language
instruction program for limited English proficient
children assisted under this subpart—
‘‘(A) shall select among methods of in-
struction, if more than one method is offered in
the program; and
‘‘(B) shall have the right to have their
child immediately removed from the program
upon their request.
‘‘(c) RECEIPT OF INFORMATION.—A parent or the
parents of a child identified for participation in an English
language instruction program for limited English pro-
ficient children assisted under this subpart shall receive,
in a manner and form understandable to the parent or
parents, the information required by this subsection. At
a minimum, the parent or parents shall receive—
‘‘(1) timely information about English language
instruction programs for limited English proficient
children assisted under this part;
‘‘(2) if a parent or the parents of a partici-
pating child so desire, notice of opportunities for
430
regular meetings for the purpose of formulating and
responding to recommendations from the parent or
parents; and
‘‘(3) procedural information for removing a
child from a program for limited English proficient
children.
‘‘(d) BASIS FOR ADMISSION OR EXCLUSION.—Stu-
dents shall not be admitted to, or excluded from, any fed-
erally assisted education program on the basis of a sur-
name or language-minority status.
‘‘SEC. 3104. TESTING OF LIMITED ENGLISH PROFICIENT
CHILDREN.
‘‘(a) IN GENERAL.—Assessments of limited English
proficient children participating in programs funded under
this subpart, to the extent practicable, shall be in the lan-
guage and form most likely to yield accurate and reliable
information on what such students know and can do in
content areas.
‘‘(b) SPECIAL RULE.—Notwithstanding subsection
(a), in the case of an assessment of reading or language
arts of any student who has attended school in the United
States (excluding Puerto Rico) for 3 or more consecutive
school years, the assessment shall be in the form of a test
written in English, except that, if the entity administering
the assessment determines, on a case-by-case individual
431
basis, that assessments in another language or form would
likely yield more accurate and reliable information on what
such student knows and can do, the entity may assess
such student in such language or form for 1 additional
year.
‘‘SEC. 3105. FORMULA GRANTS TO STATES.
‘‘(a) IN GENERAL.—In the case of each State that
in accordance with section 3107 submits to the Secretary
an application for a fiscal year, the Secretary shall make
a grant for the year to the State for the purposes specified
in subsection (b). The grant shall consist of the allotment
determined for the State under subsection (c).
‘‘(b) PURPOSES OF GRANTS.—
‘‘(1) REQUIRED
EXPENDITURES.—The Sec-
retary may make a grant under subsection (a) only
if the State involved agrees that the State will ex-
pend at least 95 percent of its allotment under sub-
section (c) for the purpose of making subgrants to
eligible entities to provide assistance to limited
English proficient children in accordance with sec-
tions 3108 and 3109.
‘‘(2) AUTHORIZED EXPENDITURES.—Subject to
paragraph (3), a State that receives a grant under
subsection (a) may expend not more than 5 percent
432
of its allotment under subsection (c) for one or more
of the following purposes:
‘‘(A) Carrying out—
‘‘(i) professional development activi-
ties, and other activities, that assist per-
sonnel in meeting State and local certifi-
cation requirements for teaching limited
English proficient children; and
‘‘(ii) other activities that provide such
personnel with the skills and knowledge
necessary to educate limited English pro-
ficient children.
‘‘(B) Providing scholarships and fellow-
ships to students who agree to teach limited
English proficient children once they graduate.
‘‘(C) Planning, administration, and inter-
agency coordination related to the subgrants re-
ferred to in paragraph (1).
‘‘(D) Providing technical assistance and
other forms of assistance to local educational
agencies that—
‘‘(i) educate limited English proficient
children; and
‘‘(ii) are not receiving a subgrant
from a State under this subpart.
433
‘‘(E) Providing bonuses to subgrantees
whose performance has been exceptional in
terms of the speed with which children enrolled
in the subgrantee’s programs and activities at-
tain English language proficiency and meet
challenging State academic content standards
and 
challenging 
State 
student 
academic
achievement standards.
‘‘(3) LIMITATION ON ADMINISTRATIVE COSTS.—
In carrying out paragraph (2), a State that receives
a grant under subsection (a) may expend not more
than 2 percent of its allotment under subsection (c)
for the purposes described in paragraph (2)(C).
‘‘(c) DETERMINATION OF ALLOTMENT AMOUNTS.—
‘‘(1) RESERVATIONS.—From the amount appro-
priated under section 3110 to carry out this subpart
for each fiscal year, the Secretary shall reserve—
‘‘(A) .5 percent of such amount for pay-
ments to entities that are considered to be local
educational agencies under section 3106(a) for
activities approved by the Secretary;
‘‘(B) .5 percent of such amount for pay-
ments to outlying areas, to be allotted in ac-
cordance with their respective needs for assist-
ance under this subpart, as determined by the
434
Secretary, for activities, approved by the Sec-
retary, consistent with this part; and
‘‘(C) 1⁄2 of 1 percent of such amount for
evaluation of the programs under this part and
for dissemination of best practices.
‘‘(2) CONTINUATION AWARDS.—Before making
awards to States under paragraph (3) for any fiscal
year, the Secretary shall make continuation awards
to recipients of grants under subpart 1 of part A of
the Bilingual Education Act, as that Act was in ef-
fect on the day before the effective date of the No
Child Left Behind Act of 2001, in order to allow
such recipients to continue to receive funds in ac-
cordance with the terms of their grant until the date
on which the grant period otherwise would have ter-
minated if the No Child Left Behind Act of 2001
had not been enacted.
‘‘(3) STATE ALLOTMENTS.—
‘‘(A) IN GENERAL.—From the amount ap-
propriated under section 3110 to carry out this
subpart for each fiscal year that remains after
carrying out paragraphs (1) and (2), the Sec-
retary shall allot to each of the 50 States, the
District of Columbia, and the Commonwealth of
Puerto Rico an amount which bears the same
435
ratio to such amount as the total number of
children and youth who are limited English pro-
ficient and who reside in such State bears to
the total number of such children and youth re-
siding in all such States that, in accordance
with section 3107, submit to the Secretary an
application for the year.
‘‘(B) REALLOTMENT.—
‘‘(i) IN GENERAL.—If any State de-
scribed in subparagraph (A) does not sub-
mit to the Secretary an application for a
fiscal year, or submits an application (or
any modification to an application) that
the Secretary, after reasonable notice and
opportunity for a hearing, determines does
not satisfy the requirements of this sub-
part, the Secretary—
‘‘(I) shall endeavor to make the
State’s allotment available on a com-
petitive basis to specially qualified
agencies within the State that satisfy
the requirements applicable to eligible
entities under section 3108 and any
additional requirements that may be
imposed by the Secretary; and
436
‘‘(II) shall reallot any portion of
such allotment remaining after the
application of subclause (I) to the re-
maining States in accordance with
subparagraph (A).
‘‘(ii) REQUIREMENTS
ON
SPECIALLY
QUALIFIED
AGENCIES.—If 
a 
specially
qualified agency receives funds under this
subparagraph, the requirements of sub-
section (b) shall not apply to the agency.
In lieu of those requirements, the specially
qualified agency shall expend the funds for
the authorized activities described in sec-
tion 3108(b) and otherwise shall satisfy
the requirements of section 3108.
‘‘(C) SPECIAL RULE FOR PUERTO RICO.—
The total amount allotted to Puerto Rico for
any fiscal year under subparagraph (A) shall
not exceed .5 percent of the total amount allot-
ted to all States for that fiscal year.
‘‘(4) USE OF DATA FOR DETERMINATIONS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), for the purpose of deter-
mining the number of children and youth who
are limited English proficient and reside in a
437
State and in all States for each fiscal year, the
Secretary shall use the most recent satisfactory
data available from the Bureau of the Census
and the American Community Survey available
from the Department of Commerce.
‘‘(B) EXCEPTION.—If the data described
in subparagraph (A) are more than 4 years old
or unavailable, the Secretary shall use the most
recent satisfactory data provided by the States,
such as enrollment data and data that reflect
the number of students taking the English pro-
ficiency assessments in the States.
‘‘(5) NO
REDUCTION
PERMITTED
BASED
ON
TEACHING METHOD.—The Secretary may not reduce
a State’s allotment based on the State’s selection of
any method of instruction as its preferred method of
teaching the English language to children who are
limited English proficient.
‘‘SEC. 3106. NATIVE AMERICAN AND ALASKA NATIVE CHIL-
DREN IN SCHOOL.
‘‘(a) ELIGIBLE ENTITIES.—For the purpose of car-
rying out programs under this part for individuals served
by elementary, secondary, and postsecondary schools oper-
ated predominately for Native American or Alaska Native
438
children, the following shall be considered to be a local
educational agency:
‘‘(1) An Indian tribe.
‘‘(2) A tribally sanctioned educational author-
ity.
‘‘(3) A Native Hawaiian or Native American
Pacific Islander native language educational organi-
zation.
‘‘(4) An elementary or secondary school that is
operated or funded by the Bureau of Indian Affairs,
or a consortium of such schools.
‘‘(5) An elementary or secondary school oper-
ated under a contract with or grant from the Bu-
reau of Indian Affairs, in consortium with another
such school or a tribal or community organization.
‘‘(6) An elementary or secondary school oper-
ated by the Bureau of Indian Affairs and an institu-
tion of higher education, in consortium with an ele-
mentary or secondary school operated under a con-
tract with or grant from the Bureau of Indian Af-
fairs or a tribal or community organization.
‘‘(b) SUBMISSION
OF APPLICATIONS
FOR ASSIST-
ANCE.—Notwithstanding any other provision of this part,
an entity that is considered to be a local educational agen-
cy under subsection (a), and that desires to submit an ap-
439
plication for Federal financial assistance under this sub-
part, shall submit the application to the Secretary. In all
other respects, such an entity shall be eligible for a
subgrant under this subpart on the same basis as any
other local educational agency.
‘‘SEC. 3107. APPLICATIONS BY STATES.
‘‘For purposes of section 3105, an application sub-
mitted by a State for a grant under such section for a
fiscal year is in accordance with this section if the
application—
‘‘(1) describes the process that the State will
use in making competitive subgrants to eligible enti-
ties under section 3109(c);
‘‘(2) contains an agreement that, in carrying
out this subpart, the State will address the needs of
school systems of all sizes and in all geographic
areas, including rural and urban schools;
‘‘(3) contains an agreement that competitive
subgrants to eligible entities under section 3109(c)
shall be of sufficient size and scope to allow such en-
tities to carry out high quality education programs
for limited English proficient children;
‘‘(4) contains an agreement that the State will
coordinate its programs and activities under this
440
subpart with its other programs and activities under
this Act and other Acts, as appropriate;
‘‘(5) contains an agreement that the State—
‘‘(A) shall monitor the progress of students
enrolled in programs and activities receiving as-
sistance under this subpart in attaining English
proficiency and in attaining challenging State
academic content standards and challenging
State student academic achievement standards;
‘‘(B) shall establish standards and bench-
marks for English language development that
are aligned with State academic content and
achievement standards; and
‘‘(C) will ensure that eligible entities com-
ply with section 3104 to annually test children
in English who have been in the United States
for 3 or more consecutive years;
‘‘(6) contains an assurance that the State will
develop high-quality annual assessments to measure
English language proficiency and require eligible en-
tities receiving a subgrant under this subpart annu-
ally to assess the English proficiency of all children
with limited English proficiency participating in a
program funded under this subpart;
441
‘‘(7) contains an agreement that the State will
develop annual performance objectives for raising
the level of English proficiency of each limited
English proficient student, and that these objectives
shall include percentage increases in performance on
annual assessments in reading, writing, speaking,
and listening comprehension as compared to the pre-
ceding school year; and
‘‘(8) contains an agreement that the State will
require eligible entities receiving a subgrant under
this subpart to use the subgrant in ways that will
build such recipient’s capacity to continue to offer
high-quality English language instruction and pro-
grams which assist limited English proficient chil-
dren in attaining challenging State academic content
standards and challenging State student academic
achievement standards once assistance under this
subpart is no longer available.
‘‘SEC. 3108. SUBGRANTS TO ELIGIBLE ENTITIES.
‘‘(a) PURPOSES OF SUBGRANTS.—A State may make
a subgrant to an eligible entity from funds received by
the State under this subpart only if the entity agrees to
expend the funds to improve the education of limited
English proficient children and their families, through the
acquisition of English and the attainment of challenging
442
State academic content standards and challenging State
student academic achievement standards, using ap-
proaches and methodologies based on scientifically based
reading research and sound research and theory on teach-
ing limited English proficient children, by—
‘‘(1) developing and implementing new English
language and academic content instructional pro-
grams for children who are limited English pro-
ficient, including programs of early childhood edu-
cation and kindergarten through 12th grade edu-
cation;
‘‘(2) carrying out highly focused, innovative, lo-
cally designed projects to expand or enhance existing
English language and academic content instruction
programs for limited English proficient children;
‘‘(3) implementing, within an individual school,
schoolwide programs for restructuring, reforming,
and upgrading all relevant programs and operations
relating to English language and academic content
instruction for limited English proficient students;
or
‘‘(4) implementing, within the entire jurisdic-
tion of a local educational agency, agencywide pro-
grams for restructuring, reforming, and upgrading
all relevant programs and operations relating to
443
English language and academic content instruction
for limited English proficient students.
‘‘(b) AUTHORIZED SUBGRANTEE ACTIVITIES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), a
State may make a subgrant to an eligible entity
from funds received by the State under this subpart
in order that the eligible entity may achieve one of
the purposes described in subsection (a) by under-
taking one or more of the following activities to im-
prove the understanding, and use, of the English
language, based on a child’s learning skills and at-
tainment of challenging State academic content
standards and challenging State student academic
achievement standards:
‘‘(A) Upgrading program objectives and ef-
fective instructional strategies.
‘‘(B) Improving the instruction program
for limited English proficient students by iden-
tifying, acquiring, and upgrading curricula, in-
structional materials, educational software, and
assessment procedures.
‘‘(C) Providing—
‘‘(i) tutorials and academic or voca-
tional education for limited English pro-
ficient children; and
444
‘‘(ii) intensified instruction.
‘‘(D) Developing and implementing elemen-
tary or secondary school English language in-
structional programs that are coordinated with
other relevant programs and services.
‘‘(E) Providing professional development to
classroom teachers, principals, administrators,
and other school or community-based organiza-
tional personnel to improve the instruction and
assessment of children who are limited English
proficient children.
‘‘(F) Improving the English language pro-
ficiency and academic performance of limited
English proficient children.
‘‘(G) Improving the instruction of limited
English proficient children by providing for the
acquisition or development of education tech-
nology or instructional materials, access to and
participation in electronic networks for mate-
rials, training and communications, and incor-
poration of such resources in curricula and pro-
grams, such as those funded under this sub-
part.
‘‘(H) Developing tutoring programs for
limited English proficient children that provide
445
early intervention and intensive instruction in
order to improve academic achievement, to in-
crease graduation rates among limited English
proficient children, and to prepare students for
transition as soon as possible into classrooms
where instruction is not tailored for limited
English proficient children.
‘‘(I) Providing family literacy services and
parent outreach and training activities to lim-
ited English proficient children and their fami-
lies to improve their English language skills and
assist parents in helping their children to im-
prove their academic performance.
‘‘(J) Other activities that are consistent
with the purposes of this part.
‘‘(2) MOVING CHILDREN OUT OF SPECIALIZED
CLASSROOMS.—Any program or activity undertaken
by an eligible entity using a subgrant from a State
under this subpart shall be designed to assist stu-
dents enrolled in the program or activity to attain
English proficiency and meet challenging State aca-
demic content standards and challenging State stu-
dent academic achievement standards as soon as
possible, but not later than after 3 consecutive years
of attendance in United States schools (excluding
446
schools in Puerto Rico), and to move into a class-
room 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
eligible entity shall select one or more methods or forms
of instruction to be used in the programs and activities
undertaken by the entity to assist limited English pro-
ficient children to attain English proficiency and meet
challenging State academic content standards and chal-
lenging 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.
‘‘(2) REQUIRED DOCUMENTATION.—The appli-
cation shall—
447
‘‘(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 require-
ment 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 determine if such schools are making the
adequate yearly progress necessary to ensure
that limited English proficient students attend-
ing the schools will meet the State’s proficient
level of performance on the State assessment
described in section 1111(b)(4), and will hold
such schools accountable 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
professional credentials in teaching English to
448
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
agency 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
programs will enable children to speak, read,
write, and comprehend the English language
and meet challenging State academic content
449
standards and challenging State student aca-
demic achievement 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
ENTITIES.
‘‘(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 enti-
ties within the State that have approved applications, in
accordance with subsections (b) and (c).
‘‘(b) FORMULA SUBGRANTS.—
‘‘(1) RESERVATION.—75 percent of the amount
expended by a State for subgrants under this sub-
part shall be reserved for subgrants to eligible enti-
ties described in subsection (a) in which, during the
fiscal year for which the subgrant is to be made, the
450
number of limited English proficient children and
youth who are enrolled in public and nonpublic ele-
mentary 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 per-
cent of the total number of children and youth en-
rolled in such schools during such fiscal year, which-
ever is less.
‘‘(2) ALLOTMENT.—From the amount reserved
under paragraph (1), the State shall allot to each el-
igible entity described in such paragraph a percent-
age 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
jurisdiction 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
451
made, the State shall, in accordance with such rules
as it deems appropriate, reallot such amount, con-
sistent 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 chil-
dren, that have enrolled in public and nonpublic ele-
mentary 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 sub-
section (b)(1) but have significant needs for pro-
grams 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
452
year 2002 and such sums as may be necessary for each
of the 4 succeeding fiscal years.
‘‘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 dur-
ing 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
453
standards for each of the 2 years after such students
are no longer receiving services under this part.
‘‘(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 activi-
ties;
‘‘(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
provided 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
454
academic and challenging State student aca-
demic achievement standards; and
‘‘(B) have achieved a working knowledge of
the English language that is sufficient to per-
mit them to perform, in English, in a classroom
that is not tailored to limited English proficient
children; and
‘‘(2) such other information as the State may
require.
‘‘(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
455
a grant under subpart 1 shall prepare and submit every
second year to the Secretary a report on programs and
activities undertaken by the State under such subpart and
the effectiveness of such programs and activities in im-
proving 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 Pen-
sions 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
456
funded under such subpart into classrooms where in-
struction is not tailored for limited English pro-
ficient children; and
‘‘(5) other information gathered from the re-
ports submitted under subsection (a).
‘‘SEC. 3123. COORDINATION WITH RELATED PROGRAMS.
‘‘In order to maximize Federal efforts aimed at serv-
ing 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 ‘chil-
dren and youth’ means individuals aged 3 through
21.
‘‘(2) COMMUNITY-BASED ORGANIZATION.—The
term ‘community-based organization’ means a pri-
vate nonprofit organization of demonstrated effec-
tiveness or Indian tribe or tribally sanctioned edu-
cational authority which is representative of a com-
munity or significant segments of a community and
457
which provides educational or related services to in-
dividuals in the community. Such term includes a
Native Hawaiian or Native American Pacific Is-
lander native language educational organization.
‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means—
‘‘(A) one or more local educational agen-
cies; or
‘‘(B) one or more local educational agen-
cies in collaboration with an institution of high-
er education, community-based organization, or
State educational agency.
‘‘(4) NATIVE HAWAIIAN OR NATIVE AMERICAN
PACIFIC ISLANDER NATIVE LANGUAGE EDUCATIONAL
ORGANIZATION.—The term ‘Native Hawaiian or Na-
tive 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 tradi-
tional Native American languages used in their edu-
cational programs and with not less than 5 years
successful experience in providing educational serv-
ices in traditional Native American languages.
‘‘(5) NATIVE
LANGUAGE.—The term ‘native
language’, when used with reference to an individual
458
who is limited English proficient, means the lan-
guage normally used by such individual.
‘‘(6) SPECIALLY
QUALIFIED
AGENCY.—The
term ‘specially qualified agency’, when used with re-
spect to a fiscal year, means an eligible entity lo-
cated 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 re-
quirements 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-
459
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 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
460
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 offi-
cial, 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
PUERTO RICO.
‘‘Programs authorized under subpart 1 that serve
Native American children, Native Pacific Island children,
and children in the Commonwealth of Puerto Rico, not-
withstanding any other provision of subpart 1, may in-
clude programs of instruction, teacher training, cur-
riculum development, evaluation, and testing designed for
Native American children learning and studying Native
American languages and children of limited Spanish pro-
ficiency, except that a primary outcome of programs serv-
ing such children shall be increased English proficiency
among such children.’’.
461
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 strik-
ing ‘‘Office of Bilingual Education and Minority
Languages Affairs’’ each place such term appears in
the text and inserting ‘‘Office of Educational Serv-
ices 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:
462
‘‘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 section 209 to read as follows:
‘‘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 section 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—
463
‘‘(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, inter-
nationally competitive academic content stand-
ards and student academic achievement stand-
ards and build on Indian culture and the Indian
community;
‘‘(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 ini-
tial Indian Education Act in 1972, the level of in-
volvement of Indian parents in the planning, devel-
opment, and implementation of educational pro-
grams that affect such parents and their children
has increased significantly, and schools should con-
tinue to foster such involvement;
‘‘(3) although the number of Indian teachers,
administrators, and university professors has in-
464
creased since 1972, teacher training programs are
not recruiting, training, or retraining a sufficient
number of Indian 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
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
percent, and the readiness of Indian children to
learn is hampered by the high incidence of poverty,
unemployment, and health problems among Indian
children and their families; and
‘‘(6) research related specifically to the edu-
cation of Indian children and adults is very limited,
and much of the research is of poor quality or is fo-
cused 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
465
other entities to meet the unique educational and cul-
turally related academic needs of American Indians and
Alaska Natives, so that such students can achieve to the
same challenging State academic achievement standards
expected of all other students.
‘‘(b) PROGRAMS.—this subpart carries out the pur-
pose described in subsection (a) by authorizing programs
of direct assistance for—
‘‘(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
educational agencies in their efforts to reform elementary
and secondary school programs that serve Indian students
in order to ensure that such programs—
466
‘‘(1) are based on challenging State academic
content standards and State student academic
achievement standards that are used for all stu-
dents; 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.—
‘‘(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,
during 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.—
467
‘‘(1) IN GENERAL.—If a local educational agen-
cy 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 rep-
resents 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
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
allocate 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—
468
‘‘(i) the average per pupil expenditure
of the State in which such agency is lo-
cated; 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
paragraph (1) in accordance with subsection (e).
‘‘(b) MINIMUM GRANT.—
‘‘(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 op-
erated 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
469
determines 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 re-
gard to the sources of funds from which such local
or State expenditures 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
BUREAU 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
470
‘‘(ii) an Indian tribe, or an organization
controlled or sanctioned by an Indian tribal
government, for the children of that tribe under
a contract with, or grant from, the Department
of the Interior under the Indian Self-Deter-
mination Act or the Tribally Controlled Schools
Act of 1988; and
‘‘(B) the greater of—
‘‘(i) the average per pupil expenditure of
the State in which the school is located; or
‘‘(ii) 80 percent of the average per pupil
expenditure in the United States.
‘‘(2) Any school described in paragraph (1)(A) that
wishes to receive an allocation under this chapter shall
submit an application in accordance with section 3214,
and shall otherwise be treated as a local educational agen-
cy for the purpose of this chapter, except that such school
shall not be subject to section 3214(c)(4), section 3218(c),
or section 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.
471
‘‘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 informa-
tion as the Secretary may reasonably require.
‘‘(b) COMPREHENSIVE PROGRAM REQUIRED.—Each
application submitted under subsection (a) shall include
a 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
performance goals for such children, and bench-
marks for attaining such goals, that are based on
the challenging 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 de-
scribed in section 3215;
472
‘‘(5) describes the professional development op-
portunities that will be provided, as needed, to en-
sure that—
‘‘(A) teachers and other school profes-
sionals who are new to the Indian community
are prepared to work with Indian children; and
‘‘(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 as-
sessment referred to in subparagraph (A) to—
‘‘(i) the committee of parents de-
scribed in subsection (c)(4); and
‘‘(ii) the community served by the
local educational agency; and
473
‘‘(C) is responding to findings of any pre-
vious assessments that are similar to the as-
sessments 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
level of funds that, in the absence of the Federal
funds made available under this chapter, such agen-
cy 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—
474
‘‘(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 stu-
dents to whom the local educational agency is
providing an education;
‘‘(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 stu-
dents from secondary schools, including public
hearings held by such agency to provide the in-
dividuals described in this subparagraph a full
opportunity 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—
475
‘‘(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
parents of Indian children;
‘‘(C) that sets forth such policies and pro-
cedures, including policies and procedures relat-
ing to the hiring of personnel, as will ensure
that the 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 de-
scribing 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
476
‘‘(E) that has adopted reasonable bylaws
for the conduct of the activities of the com-
mittee 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 activi-
ties that—
‘‘(1) are designed to carry out the comprehen-
sive program of the local educational agency for In-
dian students, and described in the application of
the local educational agency submitted to the Sec-
retary under section 3214(b);
‘‘(2) are designed with special regard for the
language 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;
477
‘‘(2) early childhood and family programs that
emphasize school readiness;
‘‘(3) enrichment programs that focus on prob-
lem solving and cognitive skills development and di-
rectly support the attainment of challenging State
academic content standards and State student aca-
demic 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-
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 chap-
478
ter 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
administrative 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 inte-
gration of education and related services provided to In-
dian students.
‘‘(b) COORDINATION OF PROGRAMS.—Upon the re-
ceipt of an acceptable plan, the Secretary, in cooperation
with each Federal agency providing grants for the provi-
sion of education and related services to the applicant,
shall authorize the applicant to coordinate, in accordance
with such plan, its federally funded education and related
services programs, or portions thereof, serving Indian stu-
dents in a manner that integrates the program services
involved into a single, coordinated, comprehensive pro-
479
gram and reduces administrative costs by consolidating
administrative functions.
‘‘(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
formula for the purposes of providing education and re-
lated services which would be used to serve Indian stu-
dents.
‘‘(d) PLAN REQUIREMENTS.—For a plan to be ac-
ceptable pursuant to subsection (b), it shall—
‘‘(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;
480
‘‘(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 serv-
ices 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
‘‘(9) be approved by a parent committee formed
in accordance with section 3214(c)(4), if such a
committee 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 submit-
ting the plan. The parties so consulting shall identify any
waivers of statutory requirements or of Federal depart-
mental regulations, policies, or procedures necessary to en-
481
able the applicant to implement its plan. Notwithstanding
any other provision of law, the Secretary of the affected
department or departments shall have the authority to
waive any regulation, policy, or procedure promulgated by
that department that has been so identified by the appli-
cant or department, unless the Secretary of the affected
department determines that such a waiver is inconsistent
with the intent of this chapter or those provisions of the
statute from which the program involved derives its au-
thority which are specifically applicable to Indian stu-
dents.
‘‘(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
the reasons for the disapproval and shall be given an op-
portunity 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
enactment of the No Child Left Behind Act of 2001, the
Secretary of Education, the Secretary of the Interior, and
the head of any other Federal department or agency iden-
tified by the Secretary of Education, shall enter into an
482
interdepartmental memorandum of agreement providing
for the implementation of the demonstration projects au-
thorized under this section. The lead agency head for a
demonstration 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 Amend-
ments 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
undertaken under the project;
‘‘(2) the use of a single report format related
to the projected expenditures for the individual
project which shall be used by an eligible entity to
report on all project expenditures;
‘‘(3) the development of a single system of Fed-
eral oversight for the project, which shall be imple-
mented by the lead agency; and
‘‘(4) the provision of technical assistance to an
eligible entity appropriate to the project, except that
483
an eligible entity shall have the authority to accept
or reject the plan for providing such technical assist-
ance and the technical assistance provider.
‘‘(i) REPORT REQUIREMENTS.—A single report for-
mat shall be developed by the Secretary, consistent with
the requirements of this section. Such report format, to-
gether with records maintained on the consolidated pro-
gram at the local level, shall contain such information as
will allow a determination that the eligible entity has com-
plied with the requirements incorporated in its approved
plan, including the demonstration of student achievement,
and will provide assurances to each Secretary that the eli-
gible entity has complied with all directly applicable statu-
tory requirements and with those directly applicable regu-
latory requirements which have not been waived.
‘‘(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 AUTHOR-
IZED.—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.—
484
‘‘(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 requir-
ing the eligible entity to maintain separate records
tracing any services or activities conducted under its
approved plan to the individual programs under
which funds were authorized, nor shall the eligible
entity be required to allocate expenditures among
such individual programs.
‘‘(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
subpart shall be construed so as to interfere with the abil-
ity of the Secretary or the lead agency to fulfill the respon-
485
sibilities for the safeguarding of Federal funds pursuant
to the Single Audit Act of 1984.
‘‘(o) REPORT ON STATUTORY OBSTACLES TO PRO-
GRAM 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 Pen-
sions of the Senate and the Committee on Education
and the Workforce of the House of Representatives
on the status of the implementation of the dem-
onstration program 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 submit a 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 results of the
implementation of the demonstration program au-
thorized under this section. Such report shall iden-
tify statutory barriers to the ability of participants
to integrate more effectively their education and re-
486
lated services to Indian students in a manner con-
sistent 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 Amend-
ments 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 Indian child eligible for assistance under this chap-
ter and that otherwise meets the requirements of subsec-
tion (b).
‘‘(b) FORMS.—
‘‘(1) IN GENERAL.—The form described in sub-
section (a) shall include—
‘‘(A) either—
487
‘‘(i)(I) the name of the tribe or band
of 
Indians 
(as 
described 
in 
section
3251(3)) with respect to which the child
claims membership;
‘‘(II) the enrollment number estab-
lishing the membership of the child (if
readily available); and
‘‘(III) the name and address of the
organization that maintains updated and
accurate 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
enrollment number (if readily available),
and the organization (and address thereof)
responsible for maintaining updated and
accurate membership rolls of the tribe of
any parent or grandparent of the child
from whom the child claims eligibility;
‘‘(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;
488
‘‘(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 accu-
rate 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
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 eligi-
ble Indian child for the purposes of determining the
amount of a grant award made under section 3213.
489
‘‘(c) STATUTORY CONSTRUCTION.—Nothing in this
section 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 entitlement 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 deter-
mining 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 such tribe or band. Nothing in
subsection (b) shall be construed 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
490
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
subparagraph 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
penalty, by reason of the findings of an audit that
relates to the date of completion, or the date of sub-
mission, of any forms used to establish, before April
28, 1988, the eligibility of a child for entitlement
under the Indian 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—
‘‘(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
provides false information for the form required
491
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.—
Notwithstanding any other provision of this section, in
awarding 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
determining 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
subsection (g)(1)), the local educational agency shall—
‘‘(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 Sec-
retary for submitting an application under section
3214; and
492
‘‘(2) determine that each such child was en-
rolled, and receiving a free public education, in a
school of the agency on that date or during that pe-
riod, 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 agen-
cy that submits an application that is approved by the Sec-
retary under this chapter the amount determined under
section 3213. The Secretary shall notify the local edu-
cational 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 edu-
cational agency is located takes into consideration pay-
ments made under this chapter in determining the eligi-
bility of the local educational agency for State aid, or the
amount of the State aid, with respect to the free public
education of children during such fiscal year or the pre-
ceding fiscal year.
‘‘(c) REDUCTION OF PAYMENT FOR FAILURE TO
MAINTAIN FISCAL EFFORT.—
493
‘‘(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
respect to the provision of free public education by
the local educational agency for the preceding fiscal
year, the combined fiscal effort of the local edu-
cational agency and the State, computed on either a
per student 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
educational agency failed to maintain the fiscal ef-
fort of such agency at the level specified in para-
graph (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
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
494
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).
‘‘(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 exceptional or uncontrollable circumstances, such
as a natural disaster or a precipitous and unforeseen
decline 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 re-
quired to comply with paragraph (1) in the absence
of the waiver.
‘‘(d) REALLOCATIONS.—The Secretary may reallo-
cate, 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
495
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 sub-
mit 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 respec-
tive local educational agencies, with an opportunity to re-
spond.
‘‘CHAPTER 2—SPECIAL PROGRAMS AND
PROJECTS 
TO 
IMPROVE 
EDU-
CATIONAL OPPORTUNITIES FOR IN-
DIAN CHILDREN
‘‘SEC. 3221. IMPROVEMENT OF EDUCATIONAL OPPORTUNI-
TIES FOR INDIAN CHILDREN.
‘‘(a) PURPOSE.—
‘‘(1) IN GENERAL.—It is the purpose of this
section to support projects to develop, test, and dem-
onstrate the effectiveness of services and programs
496
to improve educational opportunities and achieve-
ment of Indian children.
‘‘(2) COORDINATION.—The Secretary shall take
such actions as are necessary to achieve the coordi-
nation 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
section, the term ‘eligible entity’ means a State edu-
cational agency, local educational agency, Indian tribe, In-
dian organization, federally supported elementary and sec-
ondary school for Indian students, Indian institution, in-
cluding an Indian institution of higher education, or a con-
sortium 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—
497
‘‘(A) innovative programs related to the
educational needs of educationally disadvan-
taged children;
‘‘(B) educational services that are not
available 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 lan-
guages, art, history, 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 prob-
lems 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-
498
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
educational agencies and institutions of higher
education that allow secondary school students
to enroll in courses at the postsecondary level to
aid such students in the transition from sec-
ondary 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 edu-
cation;
‘‘(K) family literacy services; or
‘‘(L) other services that meet the purpose
described in subsection (a)(1).
‘‘(2) PROFESSIONAL
DEVELOPMENT.—Profes-
sional development of teaching professionals and
499
paraprofessional may be a part of any program as-
sisted under this section.
‘‘(d) GRANT REQUIREMENTS AND APPLICATIONS.—
‘‘(1) GRANT
REQUIREMENTS.—(A) The Sec-
retary may make multiyear grants under this section
for the planning, development, pilot operation, or
demonstration of any activity described in subsection
(c) for a period not to exceed 5 years.
‘‘(B) In making multiyear grants under this
section, the Secretary shall give priority to applica-
tions 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 modifica-
tions 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-
500
nation of exemplary materials or programs assisted
under this section.
‘‘(ii) The Secretary may award a dissemination
grant under this subparagraph if, prior to awarding
the grant, the Secretary determines that the mate-
rial or program to be disseminated has been ade-
quately 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 submit an application to the Secretary at such
time and in such manner as the Secretary may re-
quire.
‘‘(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 as-
sistance is sought;
‘‘(ii) assurances that the applicant will par-
ticipate, at the request of the Secretary, in any
501
national evaluation of activities assisted under
this section;
‘‘(iii) information demonstrating that the
proposed program is either a research-based
program (which may be a research-based pro-
gram that has been modified to be culturally
appropriate 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 informa-
tion 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 profes-
sions that serve Indian people;
502
‘‘(2) to provide training to qualified Indian indi-
viduals to enable such individuals to become teach-
ers, administrators, teacher aides, social workers,
and ancillary educational personnel; and
‘‘(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
section, 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 in-
clude but are not limited to, continuing programs,
503
symposia, workshops, conferences, and direct finan-
cial support.
‘‘(2) SPECIAL RULES.—(A) For education per-
sonnel, the training received pursuant to a grant
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
Secretary has awarded such entity; or
‘‘(B) the length of any period during which
such entity received such grants.
504
‘‘(g) GRANT PERIOD.—Each grant under this section
shall be awarded for a period of not more than 5 years.
‘‘(h) SERVICE OBLIGATION.—
‘‘(1) IN
GENERAL.—The Secretary shall re-
quire, by regulation, that an individual who receives
training 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 estab-
lish, 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 training, and periodically thereafter, provide in-
formation concerning the compliance of such recipi-
ent with the work requirement under paragraph (1).
505
‘‘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;
‘‘(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 con-
sistent 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.
506
‘‘(c) COORDINATION.—Research activities supported
under this section—
‘‘(1) shall be carried out in consultation with
the Office of Educational Research and Improve-
ment to assure that such activities are coordinated
with and enhance the research and development ac-
tivities supported by the Office; and
‘‘(2) may include collaborative research activi-
ties which are jointly funded and carried out by the
Office of Indian Education Programs and the Office
of Educational 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
furnished, from time-to-time, by Indian tribes and
organizations; and
‘‘(2) represent different geographic areas of the
United States.
‘‘(b) DUTIES.—The Council shall—
507
‘‘(1) advise the Secretary concerning the fund-
ing and administration (including the development of
regulations and administrative policies and prac-
tices) of any program, including any program estab-
lished under this subpart—
‘‘(A) with respect to which the Secretary
has jurisdiction; and
‘‘(B)(i) that includes Indian children or
adults as participants; or
‘‘(ii) that may benefit Indian children or
adults;
‘‘(2) make recommendations to the Secretary
for filling the position of Director of Indian Edu-
cation 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 Council, including—
‘‘(A) any recommendations that the Coun-
cil 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
funding of any program described in subpara-
graph (A).
508
‘‘SEC. 3242. PEER REVIEW.
‘‘The Secretary may use a peer review process to re-
view applications submitted to the Secretary under chap-
ter 2 or 3.
‘‘SEC. 3243. PREFERENCE FOR INDIAN APPLICANTS.
‘‘In making grants under chapter 2 or 3, the Sec-
retary shall give a preference to Indian tribes, organiza-
tions, and institutions of higher education under any pro-
gram with respect to which Indian tribes, organizations,
and institutions 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
509
‘‘(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
public supervision and direction, and without
tuition charge; and
‘‘(B) provided as elementary or secondary
education in the applicable State or to preschool
children.
‘‘(3) INDIAN.—The term ‘Indian’ means an in-
dividual 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 re-
sides;
‘‘(B) a descendant, in the first or second
degree, of an individual described in subpara-
graph (A);
510
‘‘(C) considered by the Secretary of the In-
terior to be an Indian for any purpose;
‘‘(D) an Eskimo, Aleut, or other Alaska
Native; 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
Improving America’s Schools Act of 1994.
‘‘SEC. 3252. AUTHORIZATIONS OF APPROPRIATIONS.
‘‘(a) CHAPTER 1.—For the purpose of carrying out
chapter 1 of this subpart, there are authorized to be ap-
propriated $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 car-
rying out chapters 2 and 3 of this subpart, there are au-
thorized 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
511
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
Educational Equity, Support, and Assistance Act’.
‘‘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
Alaska Native education programs.
‘‘(3) Alaska Native children enter and exit
school with serious educational handicaps.
‘‘(4) The educational achievement of Alaska
Native children is far below national norms. In addi-
tion to low Native performance on standardized
512
tests, Native student dropout rates are high, and
Natives are significantly underrepresented among
holders of baccalaureate degrees in the State of
Alaska. As a result, Native students are being de-
nied 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
programs are essential if educational handicaps are
to be overcome.
‘‘(6) The sheer magnitude of the geographic
barriers to be overcome in delivering educational
services in rural and village Alaska should be ad-
dressed through the development and implementa-
tion of innovative, model programs in a variety of
areas.
‘‘(7) Congress finds that Native children should
be afforded the opportunity to begin their formal
education on a par with their non-Native peers. The
Federal Government should lend support to efforts
developed by and undertaken within the Alaska Na-
513
tive 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-
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 Alas-
ka Native programs or programs of instruction con-
ducted in Alaska Native languages, and consortia of
514
such organizations and entities to carry out pro-
grams 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;
‘‘(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;
515
‘‘(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 Alas-
ka 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;
‘‘(F) the development and operation of stu-
dent enrichment programs in science and math-
ematics 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
516
are needed to enable such students to ben-
efit 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 edu-
cational needs of Alaska Native children and
adults.
‘‘(3) HOME
INSTRUCTION
PROGRAMS.—Home
instruction programs for Alaska Native preschool
children under paragraph (2)(D) may include—
‘‘(A) programs for parents and their in-
fants, from prenatal through age three;
‘‘(B) preschool programs; and
‘‘(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.
517
‘‘(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 con-
taining 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.
‘‘(c) CONSULTATION REQUIRED.—Each applicant for
funding shall provide for ongoing advice from and con-
sultation with representatives of the Alaska Native com-
munity.
‘‘(d) LOCAL
EDUCATIONAL
AGENCY
COORDINA-
TION.—Each applicant for an award under this subpart
shall inform each local educational agency serving stu-
518
dents who would participate in the project about its appli-
cation.
‘‘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 organi-
zation.’’.
(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 subpart 2 of part B of title III of such Act, as added
by this section.
519
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 fol-
lows:
‘‘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
operation and financial support of the Bureau of Indian
Affairs funded school system that it has established on
or near Indian 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 In-
dian Affairs funded school system are of the highest qual-
ity and meet the unique educational and cultural needs
of Indian children.
‘‘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 stu-
dents being served by a school funded by the Bureau of
520
Indian Affairs the same opportunities as all other students
in the United States to achieve the same challenging State
academic 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 contract with an Indian organization, studies and sur-
veys to establish and revise standards for the basic edu-
cation of Indian children attending Bureau funded
schools. Such studies and surveys shall take into account
factors such as academic needs, local cultural differences,
type and level of language skills, geographic isolation, and
appropriate teacher-student ratios for such children, and
shall be directed toward the attainment of equal edu-
cational opportunity for such children.
‘‘(c) REVISION
OF MINIMUM ACADEMIC STAND-
ARDS.—
‘‘(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—
521
‘‘(A) propose revisions to the minimum
academic standards published in the Federal
Register on September 9, 1995 (50 Fed. Reg.
174) for the basic education of Indian children
attending Bureau funded schools in accordance
with the purpose described in subsection (a)
and the findings of the studies and surveys con-
ducted 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 im-
provement plans for the States in which
any school operated by the Bureau of In-
dian Affairs is located; or
‘‘(ii) in the case where schools oper-
ated by the Bureau are within the bound-
522
aries of reservation land of one tribe but
within the boundaries of more than one
State, with the standards of the State im-
provement 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
Secretary shall establish final standards, distribute
such standards to all tribes and publish such final
standards in the Federal Register. The Secretary
shall revise 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 Federal Register, for the purpose of receiving
comments from the tribes and other interested par-
ties.
‘‘(3) APPLICABILITY
OF
STANDARDS.—Except
as provided in subsection (e), the final standards
published under paragraph (2) shall apply to all Bu-
reau funded schools not accredited under subsection
(f), and may also serve as a model for educational
programs for Indian children in public schools.
‘‘(4) CONSIDERATIONS
WHEN
ESTABLISHING
AND REVISING STANDARDS.—In establishing and re-
523
vising 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 cause and in writing to the affected tribes or local
524
school board, which rejection shall be final and not subject
to review.
‘‘(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
provided, all Bureau funded schools shall meet the
standards 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 ex-
ceed 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
APPLIED.—The accreditation type or standards ap-
plied 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 School Board and the Administrator
525
fail to agree on the type of accreditation and stand-
ards 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
Secretary, 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 imple-
mented.
‘‘(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
fiscal control and fund accounting for all contract
and grant schools. Such standards shall provide data
comparable to those used by Bureau operated
schools.
‘‘(g) ANNUAL PLAN
FOR MEETING
OF STAND-
ARDS.—Except as provided in subsections (e) and (f), the
Secretary shall begin to implement the standards estab-
lished under this section immediately upon the date of
their establishment. On an annual basis, the Secretary
shall submit to the appropriate committees of Congress,
526
all Bureau funded schools, and the tribal governing bodies
of such schools a detailed plan to bring all Bureau schools
and contract or 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 ap-
plicable 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 pro-
gram 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
527
plant conditions which constitute an immediate
hazard to health and safety.
‘‘(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
another authority, consolidation, or substantial cur-
tailment of a school is under active consideration or
review 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 formal decision is made to close, transfer to an-
other authority, consolidate, or substantially curtail
a school, the affected tribe, tribal governing body,
and designated school board shall be notified at least
6 months prior to the end of the school year pre-
ceding the proposed closure date. Copies of any such
notices and information shall be transmitted prompt-
ly to the appropriate committees of Congress and
published in the Federal Register.
528
‘‘(5) REPORT.—The Secretary shall make a re-
port to the appropriate committees of Congress, the
affected tribe, and the designated school board de-
scribing the process of the active consideration or re-
view 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 par-
ticular educational and social needs, and ensure that
alternative services are available to such students.
Such report shall include the description of the con-
sultation conducted between the potential service
provider, current service provider, parents, tribal
representatives and the tribe or tribes involved, and
the Director of the Office of Indian Education Pro-
grams within the Bureau regarding such students.
‘‘(6) LIMITATION
ON
CERTAIN
ACTIONS.—No
irrevocable action may be taken in furtherance of
any such proposed school closure, transfer to an-
other authority, consolidation, or substantial curtail-
ment (including any action which would prejudice
the personnel or programs of such school) prior to
the end of the first full academic year after such re-
port is made.
‘‘(7) TRIBAL GOVERNING BODY APPROVAL RE-
QUIRED FOR CERTAIN ACTIONS.—The Secretary may
529
terminate, contract, transfer to any other authority,
consolidate, or substantially curtail the operation or
facilities of—
‘‘(A) any Bureau funded school that is op-
erated 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
530
‘‘(bb) the expansion of a Bureau
funded 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
primarily upon the geographic proximity of com-
parable public education.
‘‘(B) With respect to applications described in
subparagraph (A) the Secretary shall consider the
following factors relating to the program and serv-
ices that are the subject of the application:
‘‘(i) The adequacy of the facilities or the
potential to obtain or provide adequate facili-
ties.
‘‘(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.
531
‘‘(v) The stated needs of all affected par-
ties, including students, families, tribal govern-
ments 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 legisla-
tion on education.
‘‘(viii) The history and success of these
services for the proposed population to be
served, as determined from all factors, including
but not limited to standardized examination
performance.
‘‘(2) DETERMINATION
ON
APPLICATION.—(A)
The Secretary shall make a determination of wheth-
er to approve any application described in paragraph
(1)(A) not later than 180 days after such applica-
tion 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
532
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
Assistance Act and an opportunity to appeal
the objections raised by the Secretary.
533
‘‘(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 ex-
pansion of grades and related facilities at a Bureau
funded school where such expansion and the mainte-
nance 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 Edu-
cation or any other Federal agency for the purpose of pro-
534
viding 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 oper-
ated by Bureau funded schools, taking into account unique
circumstances applicable to Bureau funded schools, as well
as expenditures for comparable purposes in public schools
nationally. Upon completion of the study, the Secretary
of the Interior shall take such action as necessary to en-
sure distribution 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 na-
tional 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) situa-
535
tions), therapeutic programs, space, and privacy. Such
standards shall be implemented in Bureau operated
schools, and shall serve as minimum standards for con-
tract or grant schools. Once established, any revisions of
such standards shall be developed according to the re-
quirements 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 sub-
mission for Bureau educational services is presented, the
Secretary shall submit to the appropriate committees of
Congress, the tribes, and the affected schools, and publish
in the Federal Register, a detailed plan to bring all Bu-
reau funded schools that provide home-living (dormitory)
situations up to the standards established under this sec-
tion. Such plan shall include a statement of the relative
needs of each Bureau funded home-living (dormitory)
school, projected future needs of each Bureau funded
home-living (dormitory) school, detailed information on
the status of each school in relation to the standards es-
tablished under this section, specific cost estimates for
meeting each standard for each such school, aggregate
cost estimates for bringing all such schools into compli-
ance with the criteria established under this section, and
536
specific timelines for bringing each school into compliance
with such standards.
‘‘(d) WAIVER.—The criteria established under this
section may be waived in the same manner as the stand-
ards provided under section 1121(c) may be waived.
‘‘(e) CLOSURE FOR FAILURE TO MEET STANDARDS
PROHIBITED.—No school in operation on or before Janu-
ary 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 criteria.
‘‘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 treat-
ed as though such provisions are set forth in this sub-
section. 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.
537
‘‘(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 Sec-
retary shall establish, by regulation, separate geographical
attendance 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 governing body, the relevant school boards of the
Bureau funded schools on the reservation may, by mutual
consent, establish 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
established with respect to any Bureau funded
school unless the tribal governing body or the local
school board concerned (if so designated by the trib-
al governing body) has been afforded—
538
‘‘(A) at least 6 months notice of the inten-
tion of the Bureau to revise or establish such
attendance 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 con-
sultation with the affected tribe or tribes, that such
revised boundaries do not reflect the needs of the In-
dian students to be served or do not provide ade-
quate 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 deny-
ing 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 eligi-
ble Indian student attending the school solely because that
539
student’s home or domicile is outside of the geographical
attendance area established for that school under this sec-
tion. No funding shall be made available without tribal au-
thorization to enable a school to provide transportation for
any student to or from the school and a location outside
the approved attendance area of the school.
‘‘(e) RESERVATION
AS BOUNDARY.—In any case
where there is only one Bureau funded program located
on an Indian reservation, the attendance area for the pro-
gram shall be the boundaries (established by treaty, agree-
ment, legislation, 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 (dor-
mitory) schools shall include students requiring special
emphasis programs to be implemented at each off-reserva-
tion home-living (dormitory) school. Such attendance shall
be coordinated between education line officers, the family,
and the referring and receiving programs.
‘‘SEC. 1125. FACILITIES CONSTRUCTION.
‘‘(a) COMPLIANCE WITH HEALTH
AND SAFETY
STANDARDS.—The Secretary shall immediately begin to
540
bring all schools, dormitories, and other Indian education-
related facilities operated by the Bureau or under contract
or grant with the Bureau into compliance with all applica-
ble 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 applicable Federal or State standards), with sec-
tion 504 of the Rehabilitation Act of 1973, and with the
Americans with Disabilities Act of 1990. Nothing in this
section shall require 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 an-
nual budget request for Bureau educational services is
presented, the Secretary shall submit to the appropriate
committees of Congress a detailed plan to bring all facili-
ties covered under subsection (a) of this section into com-
pliance 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 compli-
ance with such standards.
‘‘(c) CONSTRUCTION PRIORITIES.—
541
‘‘(1) SYSTEM TO ESTABLISH PRIORITIES.—On
an annual basis the Secretary shall submit to the
appropriate committees of Congress and cause to be
published in the Federal Register, the system used
to establish priorities for replacement and construc-
tion projects for Bureau funded schools and home-
living schools, including boarding schools and dor-
mitories. At the time any budget request for edu-
cation is presented, the Secretary shall publish in
the Federal Register and submit with the budget re-
quest the current list of all Bureau funded school
construction priorities.
‘‘(2) LONG-TERM
CONSTRUCTION
AND
RE-
PLACEMENT
LIST.—In addition to the plan sub-
mitted under subsection (b), the Secretary shall—
‘‘(A) not later than 18 months after the
date of the enactment of the No Child Left Be-
hind Act of 2001, establish a long-term con-
struction and replacement list for all Bureau
funded schools;
‘‘(B) using the list prepared under sub-
paragraph (A), propose a list for the orderly re-
placement of all Bureau funded education-re-
lated facilities over a period of 40 years to en-
542
able planning and scheduling of budget re-
quests;
‘‘(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 sub-
stantially curtailed by reason of plant conditions
that constitute an immediate hazard to health and
safety only if a health and safety officer of the Bu-
543
reau determines that such conditions exist at the
Bureau funded school.
‘‘(2) INSPECTION.—(A) After making a deter-
mination described in paragraph (1), the Bureau
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 para-
graph (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
544
funded school are substantially curtailed under this
subsection and the Secretary determines that the
closure, consolidation, or curtailment will exceed 1
year, the Secretary shall submit to the Congress, by
not later than 6 months after the date on which the
closure, consolidation, or curtailment was initiated, a
report which sets forth the reasons for such tem-
porary actions, the actions the Secretary is taking to
eliminate the conditions that constitute the hazard,
and an estimated date by which such actions will be
concluded.
‘‘(e) FUNDING REQUIREMENT.—
‘‘(1) DISTRIBUTION
OF
FUNDS.—Beginning
with the fiscal year following the year of the date of
the enactment of the No Child Left Behind Act of
2001, all funds appropriated for the operations and
maintenance of Bureau funded schools shall be dis-
tributed 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 Bu-
reau.
‘‘(2) REQUIREMENTS FOR CERTAIN USES.—No
funds shall be withheld from the distribution to the
budget of any school operated under contract or
545
grant by the Bureau for maintenance or any other
facilities or road related purpose, unless such school
has consented, as a modification to the contract or
in writing for grants schools, to the withholding of
such funds, including the amount thereof, the pur-
pose for which the funds will be used, and the
timeline for the services to be provided. The school
may, at the end of any fiscal year, cancel an agree-
ment under this paragraph upon giving the Bureau
30 days notice of its intent to do so.
‘‘(f) NO REDUCTION IN FEDERAL FUNDING.—Noth-
ing in this section shall be construed to diminish any Fed-
eral funding due to the receipt by the school of funding
for facilities improvement or construction from a State or
any other source.
‘‘SEC. 1126. BUREAU OF INDIAN AFFAIRS EDUCATION FUNC-
TIONS.
‘‘(a) FORMULATION AND ESTABLISHMENT OF POL-
ICY AND PROCEDURE; SUPERVISION OF PROGRAMS AND
EXPENDITURES.—The Secretary shall vest in the Assist-
ant 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
546
such functions 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 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 edu-
cation services by the Bureau, including school or institu-
tion custodial or maintenance personnel, facilities manage-
ment, contracting, procurement, and finance personnel.
The Assistant Secretary for Indian Affairs shall coordi-
nate the transfer of functions relating to procurement,
contracts, operation, and maintenance of schools and
other support functions to the Director.
‘‘(c) EVALUATION
OF PROGRAMS; SERVICES
AND
SUPPORT FUNCTIONS; TECHNICAL AND COORDINATING
ASSISTANCE.—Education personnel who are under the di-
rection and supervision of the Director of the Office of
Indian Education Programs in accordance with the first
sentence of subsection (b) shall—
‘‘(1) monitor and evaluate Bureau education
programs;
547
‘‘(2) provide all services and support functions
for education programs with respect to personnel
matters involving staffing actions and functions; and
‘‘(3) provide technical and coordinating assist-
ance in areas such as procurement, contracting,
budgeting, personnel, curriculum, and operation and
maintenance of school facilities.
‘‘(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
Secretary shall establish a program, including
548
the distribution of appropriated funds, for the
operation and maintenance of education facili-
ties. Such program shall include—
‘‘(i) a method of computing the
amount necessary for each educational fa-
cility;
‘‘(ii) similar treatment of all Bureau
funded schools;
‘‘(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 rou-
tine preventive maintenance.
549
‘‘(B) LOCAL
SUPERVISORS.—The appro-
priate education line officers shall make ar-
rangements for the maintenance of education
facilities with the local supervisors of the Bu-
reau maintenance personnel. The local super-
visors of Bureau maintenance personnel shall
take appropriate action to implement the deci-
sions made by the appropriate education line of-
ficers, except that no funds under this chapter
may be authorized for expenditure unless such
appropriate education 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
practicable 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 mecha-
nisms for the acceptance of gifts and bequests for the use
and benefit of particular schools or designated Bureau op-
erated education programs, including, where appropriate,
the establishment and administration of trust funds.
When a Bureau operated program is the beneficiary of
550
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 du-
ties.
‘‘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 stu-
dents 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;
551
‘‘(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
designated school board;
‘‘(vii) costs associated with greater
lengths of service by education personnel;
‘‘(viii) the costs of therapeutic pro-
grams for students requiring such pro-
grams; and
‘‘(ix) special costs for gifted and tal-
ented students;
‘‘(C) the cost of providing academic serv-
ices which are at least equivalent to those pro-
vided by public schools in the State in which
the school is located; and
‘‘(D) such other relevant factors as the
Secretary 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-
552
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. Concur-
rent with such action, the Secretary shall review the
standards established under section 1122 to be cer-
tain that adequate provision is made for parental no-
tification 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 estab-
lished 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
subsection (a) to ensure that the formula does the
following:
553
‘‘(A) Uses a weighted unit of 1.2 for each
eligible 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 enroll-
ment of less than 50 eligible Indian students as
having an average daily attendance of 50 eligi-
ble Indian students for purposes of imple-
menting the adjustment 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 super-
visor of the school determine that a less than
9-month basis will be implemented for the
school year involved.
‘‘(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
students served by the school.
554
‘‘(E) Uses a weighted unit of 0.25 for each
eligible Indian student who is enrolled in a
yearlong credit course in an Indian or Native
language as part of the regular curriculum of a
school, in considering the number of eligible In-
dian students served by such school. The ad-
justment required under this subparagraph
shall be used for such school after—
‘‘(i) the certification of the Indian or
Native language curriculum by the school
board of such school to the Secretary, 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 imple-
ment such adjustment at such school with-
out reducing allotments made under this
section to any school by virtue of such ad-
justment.
‘‘(2) RESERVATION OF AMOUNT.—
555
‘‘(A) IN GENERAL.—From the funds allot-
ted in accordance with the formula established
under subsection (a) for each Bureau school,
the local school board of such school may re-
serve 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, in-
cluding (notwithstanding any other provision of
law) meeting expenses and the cost of member-
ship in, and support of, organizations engaged
in activities on behalf of Indian education.
‘‘(B) TRAINING.—Each school board shall
see that each new member of the school board
receives, within 12 months of the individual’s
assuming 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
Bureau, legal issues pertaining to school
556
boards, ethics, and other topics deemed appro-
priate by the school board.
‘‘(d) RESERVATION
OF
AMOUNT
FOR
EMER-
GENCIES.—The Secretary shall reserve from the funds
available for distribution for each fiscal year under this
section an amount which, in the aggregate, shall equal 1
percent of the funds available for such purpose for that
fiscal year. Such funds shall be used, at the discretion of
the Director of the Office of Indian Education Programs,
to meet emergencies and unforeseen contingencies affect-
ing the education programs funded under this section.
Funds reserved under this subsection may only be ex-
pended for education services or programs, including
emergency repairs of educational facilities, at a schoolsite
(as defined by section 5204(c)(2) of the Tribally Con-
trolled Schools Act of 1988). Funds reserved under this
subsection shall remain available without fiscal year limi-
tation 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 Con-
gress within the annual budget submission.
‘‘(e) 
SUPPLEMENTAL
APPROPRIATIONS.—Supple-
mental appropriations enacted to meet increased pay costs
557
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-
reservation home-living (dormitory) school.
‘‘(g) TUITION.—
‘‘(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
attending 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—
558
‘‘(A) the Secretary determines that the
student’s attendance will not adversely affect
the school’s program for eligible Indian stu-
dents because of cost, overcrowding, or violation
of standards 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 stu-
dents, and shall be in addition to the school’s
allocation under this section.
‘‘(3) ATTENDANCE OF NON-INDIAN STUDENTS
AT CONTRACT AND GRANT SCHOOLS.—The school
board of a contract or grant school may permit stu-
dents 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
LIMITATION.—Notwithstanding any other provision of
559
law, at the election of the school board of a Bureau school
made at any time during the fiscal year, a portion equal
to not more than 15 percent of the funds allocated with
respect to a school under this section for any fiscal year
shall remain available to the school for expenditure with-
out fiscal year limitation. The Assistant Secretary shall
take steps as may be necessary to implement this provi-
sion.
‘‘(i) STUDENTS AT RICHFIELD DORMITORY, RICH-
FIELD, UTAH.—Tuition for out-of-State Indian students
in home-living (dormitory) arrangements at the Richfield
dormitory in Richfield, Utah, who attend Sevier County
high schools in Richfield, Utah, shall be paid from the In-
dian school equalization program funds authorized in this
section and section 1130 at a rate not to exceed the
amounts per weighted student unit for that year for the
instruction 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
appropriated funds, the Secretary shall provide
grants to each tribe or tribal organization operating
a contract school or grant school in the amount de-
560
termined under this section with respect to the tribe
or tribal organization for the purpose of paying the
administrative and indirect costs incurred in oper-
ating contract or grant schools, provided that no
school operated as a stand-alone institution shall re-
ceive less than $200,000 per year for these pur-
poses, 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
the Secretary or other Federal officers or em-
ployees, from resources other than direct pro-
gram 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 addi-
tion to, and shall not reduce, the amounts appro-
561
priated 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
administrative cost percentage rate determined
under subsection (c) does not apply to other pro-
grams operated by the tribe or tribal organization.
‘‘(2) DIRECT
COST
BASE
FUNDS.—The Sec-
retary shall—
‘‘(A) reduce the amount of the grant deter-
mined under paragraph (1) to the extent that
payments for administrative costs are actually
received by an Indian tribe or tribal organiza-
tion under any Federal education program in-
cluded in the direct cost base of the tribe or
tribal organization; and
‘‘(B) take such actions as may be nec-
essary to be reimbursed by any other depart-
562
ment or agency of the Federal Government for
the portion of grants made under this section
for the costs of administering any program for
Indians that is funded by appropriations made
to such other department or agency.
‘‘(c) ADMINISTRATIVE COST PERCENTAGE RATE.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the administrative cost percentage rate for a
contract or grant school for a fiscal year is equal to
the percentage determined by dividing—
‘‘(A) the sum of—
‘‘(i) the amount equal to—
‘‘(I) the direct cost base of the
tribe or tribal organization for the fis-
cal year, multiplied by
‘‘(II) the minimum base rate;
plus
‘‘(ii) the amount equal to—
‘‘(I) the standard direct cost
base; multiplied by
‘‘(II) the maximum base rate; by
‘‘(B) the sum of—
‘‘(i) the direct cost base of the tribe or
tribal organization for the fiscal year; plus
‘‘(ii) the standard direct cost base.
563
‘‘(2) ROUNDING.—The administrative cost per-
centage rate shall be determined to the 1⁄100 of a
decimal point.
‘‘(d) COMBINING FUNDS.—
‘‘(1) IN GENERAL.—Funds received by a tribe
or contract or grant school as grants under this sec-
tion for tribal elementary or secondary educational
programs may be combined by the tribe or contract
or grant school into a single administrative cost ac-
count without the necessity of maintaining separate
funding source accounting.
‘‘(2) INDIRECT
COST
FUNDS.—Indirect cost
funds for programs at the school which share com-
mon administrative services with tribal elementary
or secondary educational programs may be included
in the administrative cost account described in para-
graph (1).
‘‘(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.
564
‘‘(f) TREATMENT
OF FUNDS.—Funds received as
grants under this section for Bureau funded programs op-
erated by a tribe or tribal organization under a contract
or agreement shall not be taken into consideration for pur-
poses of indirect cost underrecovery and overrecovery de-
terminations by any Federal agency for any other funds,
from whatever source derived.
‘‘(g) TREATMENT OF ENTITY OPERATING OTHER
PROGRAMS.—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 ad-
ministrative costs incurred in operating a contract or
grant school or a school operated under the Tribally
Controlled Schools Act of 1988; and
‘‘(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 ad-
ministrative costs that are associated with operating the
contract or grant school, and of the indirect costs, that
are associated with all of such other programs, provided
that funds appropriated for implementation of this section
565
shall be used only to supply the amount of the grant re-
quired to be provided by this section.
‘‘(h) DEFINITIONS.—For purposes of this section:
‘‘(1) ADMINISTRATIVE
COST.—(A) The term
‘administrative cost’ means the costs of necessary
administrative functions which—
‘‘(i) the tribe or tribal organization incurs
as a result of operating a tribal elementary or
secondary educational program;
‘‘(ii) are not customarily paid by 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 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;
566
‘‘(ii) executive, policy, and corporate lead-
ership and decisionmaking;
‘‘(iii) program planning, development, and
management;
‘‘(iv) fiscal, personnel, property, and pro-
curement management;
‘‘(v) related office services and record
keeping; and
‘‘(vi) costs of necessary insurance, audit-
ing, 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—
‘‘(i) funds for which are appropriated
to other agencies of the Federal Govern-
ment; 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
567
and secondary education functions for the ben-
efit 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
programs operated by the tribe or tribal organization
during—
‘‘(i) the second fiscal year preceding such
fiscal year; or
‘‘(ii) if such programs have not been oper-
ated by the tribe or tribal organization during
the two preceding fiscal years, the first fiscal
year preceding such fiscal year.
‘‘(B) In the case of Bureau elementary or sec-
ondary education functions which have not pre-
viously been operated by a tribe or tribal organiza-
tion under contract, grant, or agreement with the
Bureau, the direct cost base for the initial year shall
be the projected aggregate direct cost program fund-
ing for all Bureau elementary and secondary func-
tions to be operated by the tribe or tribal organiza-
tion during that fiscal year.
568
‘‘(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
EDUCATIONAL PROGRAMS.—The term ‘tribal elemen-
tary or secondary educational programs’ means all
Bureau elementary and secondary functions, to-
gether with any other Bureau programs or portions
of programs (excluding funds for social services that
are appropriated to agencies other than the Bureau
and are expended through the Bureau, funds for
major subcontracts, construction, and other major
capital expenditures, and unexpended funds carried
over from prior years) which share common adminis-
trative cost functions, that are operated directly by
a tribe or tribal organization under a contract,
grant, or agreement with the Bureau.
‘‘(i) STUDIES FOR DETERMINATION OF FACTORS AF-
FECTING COSTS; BASE RATES LIMITS; STANDARD DI-
RECT COST BASE; REPORT TO CONGRESS.—
‘‘(1) STUDIES.—Not later than 120 days after
the date of the enactment of the No Child Left Be-
570
‘‘(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 ele-
mentary or secondary educational pro-
grams 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—
‘‘(i) the tribes and tribal organizations
that are affected by the application of the
formula set forth in subsection (c); and
‘‘(ii) all national and regional Indian
organizations of which such tribes and
tribal organizations are typically members;
‘‘(B) be conducted onsite with a represent-
ative 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;
571
‘‘(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 effec-
tive manner for each such program, given an
administrative cost allowance generated by the
values, percentages, or other factors found in
the studies to be relevant in such formula;
‘‘(D) identify, and quantify in terms of
percentages of direct program costs, any gen-
eral factors arising from geographic isolation,
or numbers of programs administered, inde-
pendent of program size factors used to com-
pute a base administrative 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
572
programs studied and determine whether the
factors are of general applicability to other such
programs, and (if so) how the factors may ef-
fectively 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
Inspector General of the Department of the Interior.
‘‘(4) CONSIDERATION OF DELIVERY OF ADMIN-
ISTRATIVE 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
administrative services were actually or fully deliv-
ered 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 for-
mula set forth in subsection (c).
573
‘‘(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 sub-
section (c) for all tribal elementary or secondary
education programs which the Secretary expects to
be funded in the fiscal year for which the appropria-
tions are sought.
‘‘(7) DETERMINATION OF PROGRAM SIZE.—For
purposes of this subsection, the size of tribal elemen-
tary or secondary educational programs is deter-
mined by the aggregate direct cost program funding
level for all Bureau funded programs which share
common administrative cost functions.
‘‘(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 trib-
al organizations in the amounts determined under
subsection (b) for a fiscal year exceeds the amount
of funds appropriated to carry out this section for
574
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 determined under subsection (b) bears
to the total of all grants determined under sub-
section (b) section for all tribes and tribal organiza-
tions for such fiscal year.
‘‘(k) APPLICABILITY
TO
SCHOOLS
OPERATING
UNDER
TRIBALLY
CONTROLLED
SCHOOLS
ACT
OF
1988.—The provisions of this section shall also apply to
those schools operating under the Tribally Controlled
Schools Act of 1988.
‘‘SEC. 1129. DIVISION OF BUDGET ANALYSIS.
‘‘(a) ESTABLISHMENT.—Not later than 12 months
after the date of the enactment of the No Child Left Be-
hind Act of 2001, the Secretary shall establish within the
Office of Indian Education Programs a Division of Budget
Analysis (hereinafter referred to as the ‘Division’). Such
Division shall be under the direct supervision and control
of the Director of the Office.
‘‘(b) FUNCTIONS.—In consultation with the tribal
governing bodies and tribal school boards, the Director of
the Office, through the Division, shall conduct studies,
surveys, or other activities to gather demographic informa-
575
tion on Bureau funded schools and project the amount
necessary to provide Indian students in such schools the
educational program 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 Director of the Office shall submit to the
appropriate committees of Congress (including the Appro-
priations 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 educational program set forth in this part;
‘‘(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