H. R. 1—617
than 7 percent of the amount of funds available for allotment
under such section during the preceding fiscal year—
‘‘(A) to fund allotments under section 1127, the Sec-
retary, notwithstanding any other law, may use—
‘‘(i) funds appropriated for the operation of any
Bureau-funded school that is closed or consolidated;
and
‘‘(ii) funds appropriated for any program that has
been curtailed at any Bureau school; and
‘‘(B) the Secretary may waive the application of the
provisions of section 1121(h) with respect to the closure
or consolidation of a school, or the curtailment of a program
at a school, during such fiscal year if the funds described
in clauses (i) and (ii) of subparagraph (A) with respect
to such school are used to fund allotments made under
section 1127 for such fiscal year.
‘‘(b) LOCAL FINANCIAL PLANS FOR EXPENDITURE OF FUNDS.—
‘‘(1) PLAN REQUIRED.—Each Bureau-operated school that
receives an allotment under section 1127 shall prepare a local
financial plan that specifies the manner in which the school
will expend the funds made available under the allotment
and ensures that the school will meet the accreditation require-
ments or standards for the school pursuant to section 1121.
‘‘(2) REQUIREMENT.—A local financial plan under paragraph
(1) shall comply with all applicable Federal and tribal laws.
‘‘(3) PREPARATION AND REVISION.—
‘‘(A) IN GENERAL.—The financial plan for a school under
subparagraph (A) shall be prepared by the supervisor of
the school in active consultation with the local school board
for the school.
‘‘(B) AUTHORITY OF SCHOOL BOARD.—The local school
board for each school shall have the authority to ratify,
reject, or amend such financial plan and, at the initiative
of the local school board or in response to the supervisor
of the school, to revise such financial plan to meet needs
not foreseen at the time of preparation of the financial
plan.
‘‘(4) ROLE OF SUPERVISOR.—The supervisor of the school—
‘‘(A) shall implement the decisions of the school board
relating to the financial plan under paragraph (1);
‘‘(B) shall provide the appropriate local union rep-
resentative of the education employees of the school with
copies of proposed financial plans relating to the school
and all modifications and proposed modifications to the
plans, and at the same time submit such copies to the
local school board; and
‘‘(C) may appeal any such action of the local school
board to the appropriate education line officer of the Bureau
agency by filing a written statement describing the action
and the reasons the supervisor believes such action should
be overturned.
‘‘(5) STATEMENTS.—
‘‘(A) IN GENERAL.—A copy of each statement filed under
paragraph (4)(C) shall be submitted to the local school
board and such board shall be afforded an opportunity
to respond, in writing, to such appeal.
H. R. 1—618
‘‘(B) OVERTURNED ACTIONS.—After reviewing such writ-
ten appeal and response, the appropriate education line
officer may, for good cause, overturn the action of the
local school board.
‘‘(C) TRANSMISSION
OF
DETERMINATION.—The appro-
priate education line officer shall transmit the determina-
tion of such appeal in the form of a written opinion to
such board and to such supervisor identifying the reasons
for overturning such action.
‘‘(c) TRIBAL
DIVISION
OF
EDUCATION, SELF-DETERMINATION
GRANT AND CONTRACT FUNDS.—The Secretary may approve applica-
tions for funding tribal divisions of education and developing tribal
codes of education, from funds made available pursuant to section
103(a) of the Indian Self-Determination and Education Assistance
Act.
‘‘(d) TECHNICAL ASSISTANCE AND TRAINING.—In carrying out
this section, a local school board may request technical assistance
and training from the Secretary, and the Secretary shall, to the
maximum extent practicable, provide those services and make
appropriate provisions in the budget of the Office for the provision
of those services.
‘‘(e) SUMMER PROGRAM OF ACADEMIC AND SUPPORT SERVICES.—
‘‘(1) PLAN.—
‘‘(A) IN GENERAL.—A financial plan under subsection
(b) for a school may include, at the discretion of the local
administrator and the school board of such school, a provi-
sion for a summer program of academic and support serv-
ices for students of the school.
‘‘(B) PREVENTION ACTIVITIES.—Any such program may
include activities related to the prevention of alcohol and
substance abuse.
‘‘(C) SUMMER USE.—The Assistant Secretary for Indian
Affairs shall provide for the use of any such school facility
during any summer in which such use is requested.
‘‘(2) USE
OF
OTHER
FUNDS.—Notwithstanding any other
provision of law, funds authorized under the Act of April 16,
1934, and this Act may be used to augment the services pro-
vided in each summer program at the option, and under the
control, of the tribe or Indian controlled school receiving such
funds.
‘‘(3) TECHNICAL ASSISTANCE AND PROGRAM COORDINATION.—
The Assistant Secretary for Indian Affairs, acting through the
Director of the Office, shall—
‘‘(A) provide technical assistance and coordination for
any program described in paragraph (1); and
‘‘(B) to the extent practicable, encourage the coordina-
tion of such programs with any other summer programs
that might benefit Indian youth, regardless of the funding
source or administrative entity of any such program.
‘‘(f) COOPERATIVE AGREEMENTS.—
‘‘(1) IMPLEMENTATION.—
‘‘(A) IN GENERAL.—From funds allotted to a Bureau
school under section 1127, the Secretary shall, if specifically
requested by the appropriate tribal governing body, imple-
ment a cooperative agreement that is entered into between
the tribe, the Bureau, the local school board, and a local
H. R. 1—619
public school district that meets the requirements of para-
graph (2) and involves the school.
‘‘(B) TERMS.—The tribe, the Bureau, the school board,
and the local public school district shall determine the
terms of an agreement entered into under subparagraph
(A).
‘‘(2) COORDINATION
PROVISIONS.—An agreement under
paragraph (1) may, with respect to the Bureau school and
schools in the school district involved, encompass coordination
of all or any part of the following:
‘‘(A) The academic program and curriculum, unless
the Bureau school is accredited by a State or regional
accrediting entity and would not continue to be so accred-
ited if the agreement encompassed the program and cur-
riculum.
‘‘(B) Support services, including procurement and facili-
ties maintenance.
‘‘(C) Transportation.
‘‘(3) EQUAL BENEFIT AND BURDEN.—
‘‘(A) IN GENERAL.—Each agreement entered into under
paragraph (1) shall confer a benefit upon the Bureau school
commensurate with the burden assumed by the school.
‘‘(B) LIMITATION.—Subparagraph (A) shall not be con-
strued to require equal expenditures, or an exchange of
similar services, by the Bureau school and schools in the
school district.
‘‘(g) PRODUCT
OR RESULT
OF STUDENT PROJECTS.—Notwith-
standing any other provision of law, in a case in which there
is agreement on action between the superintendent and the school
board of a Bureau-funded school, the product or result of a project
conducted in whole or in major part by a student may be given
to that student upon the completion of such project.
‘‘(h) MATCHING FUND REQUIREMENTS.—
‘‘(1) NOT CONSIDERED FEDERAL FUNDS.—Notwithstanding
any other provision of law, funds received by a Bureau-funded
school under this title for education-related activities (not
including funds for construction, maintenance, and facilities
improvement or repair) shall not be considered Federal funds
for the purposes of a matching funds requirement for any
Federal program.
‘‘(2) LIMITATION.—In considering an application from a
Bureau-funded school for participation in a program or project
that requires matching funds, the entity administering such
program or project or awarding such grant shall not give posi-
tive or negative weight to such application based solely on
the provisions of paragraph (1).
‘‘SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.
‘‘(a) FACILITATION OF INDIAN CONTROL.—It shall be the policy
of the United States acting through the Secretary, in carrying
out the functions of the Bureau, to facilitate Indian control of
Indian affairs in all matters relating to education.
‘‘(b) CONSULTATION WITH TRIBES.—
‘‘(1) IN GENERAL.—All actions under this Act shall be done
with active consultation with tribes. The United States acting
through the Secretary and tribes shall work in a government-
H. R. 1—620
to-government relationship to ensure quality education for all
tribal members.
‘‘(2) REQUIREMENTS.—
‘‘(A) DEFINITION OF CONSULTATION.—In this subsection,
the term ‘consultation’ means a process involving the open
discussion and joint deliberation of all options with respect
to potential issues or changes between the Bureau and
all interested parties.
‘‘(B) DISCUSSION
AND
JOINT
DELIBERATION.—During
discussions and joint deliberations, interested parties
(including tribes and school officials) shall be given an
opportunity—
‘‘(i) to present issues (including proposals regarding
changes in current practices or programs) that will
be considered for future action by the Secretary; and
‘‘(ii) to participate and discuss the options pre-
sented, or to present alternatives, with the views and
concerns of the interested parties given effect unless
the Secretary determines, from information available
from or presented by the interested parties during
one or more of the discussions and deliberations, that
there is a substantial reason for another course of
action.
‘‘(C) EXPLANATION BY SECRETARY.—The Secretary shall
submit to any Member of Congress, within 18 days of
the receipt of a written request by such Member, a written
explanation of any decision made by the Secretary which
is not consistent with the views of the interested parties
described in subparagraph (B).
‘‘SEC. 1132. INDIAN EDUCATION PERSONNEL.
‘‘(a) IN GENERAL.—Chapter 51, subchapter III of chapter 53,
and chapter 63 of title 5, United States Code, relating to classifica-
tion, pay and leave, respectively, and the sections of such title
relating to the appointment, promotion, hours of work, and removal
of civil service employees, shall not apply to educators or to edu-
cation positions (as defined in subsection (p)).
‘‘(b) REGULATIONS.—Not later than 60 days after the date of
enactment of the Native American Education Improvement Act
of 2001, the Secretary shall prescribe regulations to carry out this
section. Such regulations shall provide for—
‘‘(1) the establishment of education positions;
‘‘(2) the establishment of qualifications for educators and
education personnel;
‘‘(3) the fixing of basic compensation for educators and
education positions;
‘‘(4) the appointment of educators;
‘‘(5) the discharge of educators;
‘‘(6) the entitlement of educators to compensation;
‘‘(7) the payment of compensation to educators;
‘‘(8) the conditions of employment of educators;
‘‘(9) the leave system for educators;
‘‘(10) the annual leave and sick leave for educators;
‘‘(11) the length of the school year applicable to education
positions described in subsection (a); and
‘‘(12) such additional matters as may be appropriate.
‘‘(c) QUALIFICATIONS OF EDUCATORS.—
H. R. 1—621
‘‘(1) REQUIREMENTS.—In prescribing regulations to govern
the qualifications of educators, the Secretary shall require
that—
‘‘(A) lists of qualified and interviewed applicants for
education positions be maintained in each agency and area
office of the Bureau from among individuals who have
applied at the agency or area level for an education position
or who have applied at the national level and have
indicated in such application an interest in working in
certain areas or agencies;
‘‘(B) a local school board shall have the authority to
waive on a case-by-case basis, any formal education or
degree qualifications established by regulation pursuant
to subsection (b)(2), in order for a tribal member to be
hired in an education position to teach courses on tribal
culture and language and that subject to subsection (e)(2),
a determination by a school board that such a person
be hired shall be instituted by the supervisor of the school
involved; and
‘‘(C) that it shall not be a prerequisite to the employ-
ment of an individual in an education position at the local
level that—
‘‘(i) such individual’s name appear on a list main-
tained pursuant to subparagraph (A); or
‘‘(ii) such individual have applied at the national
level for an education position.
‘‘(2) EXCEPTION FOR CERTAIN TEMPORARY EMPLOYMENT.—
The Secretary may authorize the temporary employment in
an education position of an individual who has not met the
certification standards established pursuant to regulations if
the Secretary determines that failure to do so would result
in that position remaining vacant.
‘‘(d) HIRING OF EDUCATORS.—
‘‘(1) REQUIREMENTS.—In prescribing regulations to govern
the appointment of educators, the Secretary shall require—
‘‘(A)(i)(I) that educators employed in a Bureau school
(other than the supervisor of the school) shall be hired
by the supervisor of the school; and
‘‘(II) in a case in which there are no qualified applicants
available to fill a vacancy at a Bureau school, the supervisor
may consult a list maintained pursuant to subsection
(c)(1)(A);
‘‘(ii) each supervisor of a Bureau school shall be hired
by the education line officer of the agency office of the
Bureau for the jurisdiction in which the school is located;
‘‘(iii) each educator employed in an agency office of
the Bureau shall be hired by the superintendent for edu-
cation of the agency office; and
‘‘(iv) each education line officer and educator employed
in the office of the Director of the Office shall be hired
by the Director;
‘‘(B)(i) before an individual is employed in an education
position in a Bureau school by the supervisor of the school
(or, with respect to the position of supervisor, by the appro-
priate agency education line officer), the local school board
for the school shall be consulted; and
H. R. 1—622
‘‘(ii) that a determination by such school board, as
evidenced by school board records, that such individual
should or should not be so employed shall be instituted
by the supervisor (or with respect to the position of super-
visor, by the superintendent for education of the agency
office);
‘‘(C)(i) before an individual is employed in an education
position in an agency or area office of the Bureau, the
appropriate agency school board shall be consulted; and
‘‘(ii) a determination by such school board, as evidenced
by school board records, that such individual should or
should not be employed shall be instituted by the super-
intendent for education of the agency office; and
‘‘(D) all employment decisions or actions be in compli-
ance with all applicable Federal, State, and tribal laws.
‘‘(2) INFORMATION
REGARDING
APPLICATION
AT
NATIONAL
LEVEL.—
‘‘(A) IN GENERAL.—Any individual who applies at the
local level for an education position shall state on such
individual’s application whether or not such individual has
applied at the national level for an education position in
the Bureau.
‘‘(B) DETERMINATION OF ACCURACY.—If such individual
is employed at the local level, such individual’s name shall
be immediately forwarded to the Secretary, who shall, as
soon as practicable but in no event in more than 30 days,
ascertain the accuracy of the statement made by such
individual pursuant to subparagraph (A).
‘‘(C) FALSE STATEMENTS.—Notwithstanding subsection
(e), if the individual’s statement is found to have been
false, such individual, at the Secretary’s discretion, may
be disciplined or discharged.
‘‘(D) CONDITIONAL APPOINTMENT FOR NATIONAL PROVI-
SION.—If the individual has applied at the national level
for an education position in the Bureau, the appointment
of such individual at the local level shall be conditional
for a period of 90 days, during which period the Secretary
may appoint a more qualified individual (as determined
by the Secretary) from the list maintained at the national
level pursuant to subsection (c)(1)(A)(ii) to the position
to which such individual was appointed.
‘‘(3) STATUTORY CONSTRUCTION.—Except as expressly pro-
vided, nothing in this section shall be construed as conferring
upon local school boards authority over, or control of, educators
at Bureau-funded schools or the authority to issue management
decisions.
‘‘(4) APPEALS.—
‘‘(A) BY SUPERVISOR.—
‘‘(i) IN GENERAL.—The supervisor of a school may
appeal to the appropriate agency education line officer
any determination by the local school board for the
school that an individual be employed, or not be
employed, in an education position in the school (other
than that of supervisor) by filing a written statement
describing the determination and the reasons the
supervisor believes such determination should be over-
turned.
H. R. 1—623
‘‘(ii) ACTION BY BOARD.—A copy of such statement
shall be submitted to the local school board and such
board shall be afforded an opportunity to respond,
in writing, to such appeal.
‘‘(iii) OVERTURNING
OF
DETERMINATION.—After
reviewing such written appeal and response, the edu-
cation line officer may, for good cause, overturn the
determination of the local school board.
‘‘(iv) TRANSMISSION OF DETERMINATION.—The edu-
cation line officer shall transmit the determination of
such appeal in the form of a written opinion to such
board and to such supervisor identifying the reasons
for overturning such determination.
‘‘(B) BY EDUCATION LINE OFFICER.—
‘‘(i) IN GENERAL.—The education line officer of an
agency office of the Bureau may appeal to the Director
of the Office any determination by the local school
board for the school that an individual be employed,
or not be employed, as the supervisor of a school by
filing a written statement describing the determination
and the reasons the supervisor believes such deter-
mination should be overturned.
‘‘(ii) ACTION BY BOARD.—A copy of such statement
shall be submitted to the local school board and such
board shall be afforded an opportunity to respond,
in writing, to such appeal.
‘‘(iii) OVERTURNING
OF
DETERMINATION.—After
reviewing such written appeal and response, the
Director may, for good cause, overturn the determina-
tion of the local school board.
‘‘(iv) 
TRANSMISSION
OF
DETERMINATION.—The
Director shall transmit the determination of such
appeal in the form of a written opinion to such board
and to such education line officer identifying the rea-
sons for overturning such determination.
‘‘(5) OTHER APPEALS.—
‘‘(A) IN
GENERAL.—The education line officer of an
agency office of the Bureau may appeal to the Director
of the Office any determination by the agency school board
that an individual be employed, or not be employed, in
an education position in such agency office by filing a
written statement describing the determination and the
reasons the supervisor believes such determination should
be overturned.
‘‘(B) ACTION BY BOARD.—A copy of such statement shall
be submitted to the agency school board and such board
shall be afforded an opportunity to respond, in writing,
to such appeal.
‘‘(C) 
OVERTURNING
OF
DETERMINATION.—After
reviewing such written appeal and response, the Director
may, for good cause, overturn the determination of the
agency school board.
‘‘(D) TRANSMISSION OF DETERMINATION.—The Director
shall transmit the determination of such appeal in the
form of a written opinion to such board and to such edu-
cation line officer identifying the reasons for overturning
such determination.
H. R. 1—624
‘‘(e) DISCHARGE
AND CONDITIONS
OF EMPLOYMENT
OF EDU-
CATORS.—
‘‘(1) REGULATIONS.—In promulgating regulations to govern
the discharge and conditions of employment of educators, the
Secretary shall require—
‘‘(A) that procedures shall be established for the rapid
and equitable resolution of grievances of educators;
‘‘(B) that no educator may be discharged without notice
of the reasons for the discharge and an opportunity for
a hearing under procedures that comport with the require-
ments of due process; and
‘‘(C) that each educator employed in a Bureau school
shall be notified 30 days prior to the end of an academic
year whether the employment contract of the individual
will be renewed for the following year.
‘‘(2) PROCEDURES FOR DISCHARGE.—
‘‘(A) DETERMINATIONS.—
‘‘(i) IN
GENERAL.—Except as provided in clause
(iii), the supervisor of a Bureau school may discharge
(subject to procedures established under paragraph
(1)(B)) for cause (as determined under regulations pre-
scribed by the Secretary) any educator employed in
such school.
‘‘(ii) NOTIFICATION
OF
BOARD.—On giving notice
to an educator of the supervisor’s intention to discharge
the educator, the supervisor shall immediately notify
the local school board of the proposed discharge.
‘‘(iii) DETERMINATION BY BOARD.—If the local school
board determines that such educator shall not be dis-
charged, that determination shall be followed by the
supervisor.
‘‘(B) APPEALS.—
‘‘(i) IN GENERAL.—The supervisor shall have the
right to appeal to the education line officer of the
appropriate agency office of the Bureau a determina-
tion by a local school board under subparagraph (A)(iii),
as evidenced by school board records, not to discharge
an educator.
‘‘(ii) 
DECISION
OF
AGENCY
EDUCATION
LINE
OFFICER.—Upon hearing such an appeal, the agency
education line officer may, for good cause, issue a deci-
sion overturning the determination of the local school
board with respect to the employment of such indi-
vidual.
‘‘(iii) FORM
OF
DECISION.—The education line
officer shall make the decision in writing and submit
the decision to the local school board.
‘‘(3) RECOMMENDATIONS
OF
SCHOOL
BOARDS
FOR
DIS-
CHARGE.—Each local school board for a Bureau school shall
have the right—
‘‘(A) to recommend to the supervisor that an educator
employed in the school be discharged; and
‘‘(B) to recommend to the education line officer of the
appropriate agency office of the Bureau and to the Director
of the Office, that the supervisor of the school be dis-
charged.
‘‘(f) APPLICABILITY OF INDIAN PREFERENCE LAWS.—
H. R. 1—625
‘‘(1) APPLICABILITY.—
‘‘(A) IN GENERAL.—Notwithstanding any provision of
the Indian preference laws, such laws shall not apply in
the case of any personnel action carried out under this
section with respect to an applicant or employee not enti-
tled to an Indian preference if each tribal organization
concerned—
‘‘(i) grants a written waiver of the application of
those laws with respect to the personnel action; and
‘‘(ii) states that the waiver is necessary.
‘‘(B) NO EFFECT ON RESPONSIBILITY OF BUREAU.—This
paragraph shall not be construed to relieve the responsi-
bility of the Bureau to issue timely and adequate announce-
ments and advertisements concerning any such personnel
action if such action is intended to fill a vacancy (no matter
how such vacancy is created).
‘‘(2) DEFINITIONS.—In this subsection:
‘‘(A) INDIAN PREFERENCE LAWS.—
‘‘(i) IN
GENERAL.—The term ‘Indian preference
laws’ means section 12 of the Act of June 18, 1934
(48 Stat. 986, chapter 576) or any other provision of
law granting a preference to Indians in promotions
and other personnel actions.
‘‘(ii) EXCLUSION.—The term ‘Indian preference
laws’ does not include section 7(b) of the Indian Self-
Determination and Education Assistance Act.
‘‘(B) TRIBAL ORGANIZATION.—The term ‘tribal organiza-
tion’ means—
‘‘(i) the recognized governing body of any Indian
tribe, band, nation, pueblo, or other organized commu-
nity, including a Native village (as defined in section
3(c) of the Alaska Native Claims Settlement Act); or
‘‘(ii) in connection with any personnel action
referred to in this subsection, any local school board
to which the governing body has delegated the
authority to grant a waiver under this subsection with
respect to a personnel action.
‘‘(g) COMPENSATION OR ANNUAL SALARY.—
‘‘(1) IN GENERAL.—
‘‘(A) COMPENSATION FOR EDUCATORS AND EDUCATION
POSITIONS.—Except as otherwise provided in this section,
the Secretary shall establish the compensation or annual
salary rate for educators and education positions—
‘‘(i) at rates in effect under the General Schedule
for individuals with comparable qualifications, and
holding comparable positions, to whom chapter 51 of
title 5, United States Code, is applicable; or
‘‘(ii) on the basis of the Federal Wage System
schedule in effect for the locality involved, and for
the comparable positions, at the rates of compensation
in effect for the senior executive service.
‘‘(B) COMPENSATION
OR
SALARY
FOR
TEACHERS
AND
COUNSELORS.—
‘‘(i) IN GENERAL.—The Secretary shall establish the
rate of compensation, or annual salary rate, for the
positions of teachers and counselors (including dor-
mitory counselors and home-living counselors) at the
H. R. 1—626
rate of compensation applicable (on the date of enact-
ment of the Native American Education Improvement
Act of 2001 and thereafter) for comparable positions
in the overseas schools under the Defense Department
Overseas Teachers Pay and Personnel Practices Act.
‘‘(ii) ESSENTIAL PROVISIONS.—The Secretary shall
allow the local school boards involved authority to
implement only the aspects of the Defense Department
Overseas Teachers Pay and Personnel Practices Act
pay provisions that are considered essential for recruit-
ment and retention of teachers and counselors.
Implementation of such provisions shall not be con-
strued to require the implementation of that entire
Act.
‘‘(C) RATES FOR NEW HIRES.—
‘‘(i) IN GENERAL.—Beginning with the first fiscal
year following the date of enactment of the Native
American Education Improvement Act of 2001, each
local school board of a Bureau school may establish
a rate of compensation or annual salary rate described
in clause (ii) for teachers and counselors (including
academic counselors) who are new hires at the school
and who had not worked at the school, as of the first
day of such fiscal year.
‘‘(ii) CONSISTENT
RATES.—The rates established
under clause (i) shall be consistent with the rates
paid for individuals in the same positions, with the
same tenure and training, as the teachers and coun-
selors, in any other school within whose boundaries
the Bureau school is located.
‘‘(iii) DECREASES.—In a case in which the establish-
ment of rates under clause (i) causes a reduction in
compensation at a school from the rate of compensation
that was in effect for the first fiscal year following
the date of enactment of the Native American Edu-
cation Improvement Act of 2001, the new rates of com-
pensation may be applied to the compensation of
employees of the school who worked at the school as
of such date of enactment by applying those rates
at each contract renewal for the employees so that
the reduction takes effect in three equal installments.
‘‘(iv) INCREASES.—In a case in which adoption of
rates under clause (i) leads to an increase in the pay-
ment of compensation from that which was in effect
for the fiscal year following the date of enactment
of the Native American Education Improvement Act
of 2001, the school board may make such rates
applicable at the next contract renewal such that—
‘‘(I) the increase occurs in its entirety; or
‘‘(II) the increase is applied in three equal
installments.
‘‘(D) USE OF REGULATIONS; CONTINUED EMPLOYMENT
OF
CERTAIN
EDUCATORS.—The establishment of rates of
basic compensation and annual salary rates under subpara-
graphs (B) and (C) shall not—
‘‘(i) preclude the use of regulations and procedures
used by the Bureau prior to April 28, 1988, in making
H. R. 1—627
determinations regarding promotions and advance-
ments through levels of pay that are based on the
merit, education, experience, or tenure of the educator;
or
‘‘(ii) affect the continued employment or compensa-
tion of an educator who was employed in an education
position on October 31, 1979, and who did not make
an election under subsection (p) as in effect on January
1, 1990.
‘‘(2) POST DIFFERENTIAL RATES.—
‘‘(A) IN GENERAL.—The Secretary may pay a post dif-
ferential rate, not to exceed 25 percent of the rate of com-
pensation, for educators or education positions, on the basis
of conditions of environment or work that warrant addi-
tional pay, as a recruitment and retention incentive.
‘‘(B) SUPERVISOR’S AUTHORITY.—
‘‘(i) IN
GENERAL.—Except as provided in clause
(ii), on the request of the supervisor and the local
school board of a Bureau school, the Secretary shall
grant the supervisor of the school authorization to
provide one or more post differential rates under
subparagraph (A).
‘‘(ii) EXCEPTION.—The Secretary shall disapprove,
or approve with a modification, a request for authoriza-
tion to provide a post differential rate if the Secretary
determines for clear and convincing reasons (and
advises the board in writing of those reasons) that
the rate should be disapproved or decreased because
the disparity of compensation between the appropriate
educators or positions in the Bureau school, and the
comparable educators or positions at the nearest public
school, is—
‘‘(I)(aa) at least 5 percent; or
‘‘(bb) less than 5 percent; and
‘‘(II) does not affect the recruitment or reten-
tion of employees at the school.
‘‘(iii) APPROVAL
OF
REQUESTS.—A request made
under clause (i) shall be considered to be approved
at the end of the 60th day after the request is received
in the Central Office of the Bureau unless before that
time the request is approved, approved with a modifica-
tion, or disapproved by the Secretary.
‘‘(iv) 
DISCONTINUATION
OF
OR
DECREASE
IN
RATES.—The Secretary or the supervisor of a Bureau
school may discontinue or decrease a post differential
rate provided for under this paragraph at the beginning
of an academic year if—
‘‘(I) the local school board requests that such
differential be discontinued or decreased; or
‘‘(II) the Secretary or the supervisor, respec-
tively, determines for clear and convincing reasons
(and advises the board in writing of those reasons)
that there is no disparity of compensation that
would affect the recruitment or retention of
employees at the school after the differential is
discontinued or decreased.
H. R. 1—628
‘‘(v) REPORTS.—On or before February 1 of each
year, the Secretary shall submit to Congress a report
describing the requests and approvals of authorization
made under this paragraph during the previous year
and listing the positions receiving post differential
rates under contracts entered into under those
authorizations.
‘‘(h) LIQUIDATION OF REMAINING LEAVE UPON TERMINATION.—
Upon termination of employment with the Bureau, any annual
leave remaining to the credit of an individual covered by this
section shall be liquidated in accordance with sections 5551(a) and
6306 of title 5, United States Code, except that leave earned or
accrued under regulations promulgated pursuant to subsection
(b)(10) shall not be so liquidated.
‘‘(i) TRANSFER OF REMAINING SICK LEAVE UPON TRANSFER, PRO-
MOTION, OR REEMPLOYMENT.—In the case of any educator who
is transferred, promoted, or reappointed, without break in service,
to a position in the Federal Government under a different leave
system, any remaining leave to the credit of such person earned
or credited under the regulations promulgated pursuant to sub-
section (b)(10) shall be transferred to such person’s credit in the
employing agency on an adjusted basis in accordance with regula-
tions which shall be promulgated by the Office of Personnel Manage-
ment.
‘‘(j) INELIGIBILITY FOR EMPLOYMENT OF VOLUNTARILY TERMI-
NATED
EDUCATORS.—An educator who voluntarily terminates
employment with the Bureau before the expiration of the existing
employment contract between such educator and the Bureau shall
not be eligible to be employed in another education position in
the Bureau during the remainder of the term of such contract.
‘‘(k) DUAL
COMPENSATION.—In the case of any educator
employed in an education position described in subsection (l)(1)(A)
who—
‘‘(1) is employed at the close of a school year;
‘‘(2) agrees in writing to serve in such position for the
next school year; and
‘‘(3) is employed in another position during the recess period
immediately preceding such next school year, or during such
recess period receives additional compensation referred to in
section 5533 of title 5, United States Code, relating to dual
compensation,
shall not apply to such educator by reason of any such employment
during a recess period for any receipt of additional compensation.
‘‘(l) VOLUNTARY SERVICES.—
‘‘(1) IN GENERAL.—Notwithstanding section 1342 of title
31, United States Code, the Secretary may, subject to the
approval of the local school board concerned, accept voluntary
services on behalf of Bureau schools.
‘‘(2) FEDERAL EMPLOYEE PROTECTION.—Nothing in this part
requires Federal employees to work without compensation or
allows the use of volunteer services to displace or replace Fed-
eral employees.
‘‘(3) FEDERAL STATUS.—An individual providing volunteer
services under this section is a Federal employee only for pur-
poses of chapter 81 of title 5, United States Code, and chapter
171 of title 28, United States Code.
‘‘(m) PRORATION OF PAY.—
H. R. 1—629
‘‘(1) ELECTION OF EMPLOYEE.—
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, including laws relating to dual compensation,
the Secretary, at the election of the employee, shall prorate
the salary of an employee employed in an education position
for the academic school year over the entire 12-month
period.
‘‘(B) ELECTION.—Each educator employed for the aca-
demic school year shall annually elect to be paid on a
12-month basis or for those months while school is in
session.
‘‘(C) NO LOSS OF PAY OR BENEFITS.—No educator shall
suffer a loss of pay or benefits, including benefits under
unemployment or other Federal or federally assisted pro-
grams, because of such election.
‘‘(2) CHANGE OF ELECTION.—During the course of such year
the employee may change election once.
‘‘(3) LUMP SUM PAYMENT.—That portion of the employee’s
pay which would be paid between academic school years may
be paid in a lump sum at the election of the employee.
‘‘(4) NONAPPLICABILITY.—This subsection applies to those
individuals employed under the provisions of section 1132 of
this title or title 5, United States Code.
‘‘(5) DEFINITIONS.—For purposes of this subsection, the
terms ‘educator’ and ‘education position’ have the meanings
contained in paragraphs (1) and (2) of subsection (o).
‘‘(n) EXTRACURRICULAR ACTIVITIES.—
‘‘(1) STIPEND.—
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Secretary may provide, for each Bureau
area, a stipend in lieu of overtime premium pay or compen-
satory time off.
‘‘(B) PROVISION TO EMPLOYEES.—Any employee of the
Bureau who performs additional activities to provide serv-
ices to students or otherwise support the school’s academic
and social programs may elect to be compensated for all
such work on the basis of the stipend.
‘‘(C) NATURE OF STIPEND.—Such stipend shall be paid
as a supplement to the employee’s base pay.
‘‘(2) ELECTION NOT TO RECEIVE STIPEND.—If an employee
elects not to be compensated through the stipend established
by this subsection, the appropriate provisions of title 5, United
States Code, shall apply.
‘‘(3) 
APPLICABILITY
OF
SUBSECTION.—This 
subsection
applies to all Bureau employees, regardless of whether the
employee is employed under section 1132 of this title or title
5, United States Code.
‘‘(o) DEFINITIONS.—In this section:
‘‘(1) EDUCATION POSITION.—The term ‘education position’
means a position in the Bureau the duties and responsibilities
of which—
‘‘(A)(i) are performed on a school year basis principally
in a Bureau school; and
‘‘(ii) involve—
‘‘(I) classroom or other instruction or the super-
vision or direction of classroom or other instruction;
H. R. 1—630
‘‘(II) any activity (other than teaching) which
requires academic credits in educational theory and
practice equal to the academic credits in educational
theory and practice required for a bachelor’s degree
in education from an accredited institution of higher
education;
‘‘(III) any activity in or related to the field of
education notwithstanding that academic credits in
educational theory and practice are not a formal
requirement for the conduct of such activity; or
‘‘(IV) support services at, or associated with, the
site of the school; or
‘‘(B) are performed at the agency level of the Bureau
and involve the implementation of education-related pro-
grams other than the position for agency superintendent
for education.
‘‘(2) EDUCATOR.—The term ‘educator’ means an individual
whose services are required, or who is employed, in an edu-
cation position.
‘‘(p) COVERED INDIVIDUALS; ELECTION.—This section shall apply
with respect to any educator hired after November 1, 1979 (and
to any educator who elected for coverage under that provision
after November 1, 1979) and to the position in which such individual
is employed. The enactment of this section shall not affect the
continued employment of an individual employed on October 31,
1979, in an education position, or such person’s right to receive
the compensation attached to such position.
‘‘(q) FURLOUGH WITHOUT CONSENT.—
‘‘(1) IN GENERAL.—An educator who was employed in an
education position on October 31, 1979, who was eligible to
make an election under subsection (p) at that time, and who
did not make the election under such subsection, may not
be placed on furlough (within the meaning of section 7511(a)(5)
of title 5, United States Code, without the consent of such
educator for an aggregate of more than 4 weeks within the
same calendar year, unless—
‘‘(A) the supervisor, with the approval of the local
school board (or of the education line officer upon appeal
under paragraph (2)), of the Bureau school at which such
educator provides services determines that a longer period
of furlough is necessary due to an insufficient amount
of funds available for personnel compensation at such
school, as determined under the financial plan process as
determined under section 1129(b); and
‘‘(B) all educators (other than principals and clerical
employees) providing services at such Bureau school are
placed on furloughs of equal length, except that the super-
visor, with the approval of the local school board (or of
the agency education line officer upon appeal under para-
graph (2)), may continue one or more educators in pay
status if—
‘‘(i) such educators are needed to operate summer
programs, attend summer training sessions, or partici-
pate in special activities including curriculum develop-
ment committees; and