In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Detroit Economic Competitiveness 
Act''.

SEC. 2. DETROIT JOBS TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. DETROIT JOBS TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Detroit Jobs 
Trust Fund', consisting of such amounts as may be appropriated or 
credited to such fund as provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Detroit Jobs Trust Fund amounts equivalent to receipts in the 
Treasury of taxes (including all income, excise, and employment taxes 
whether imposed with respect to individuals or businesses) imposed 
under this title (with respect to periods after the date of the 
enactment of this section) which are (as determined by the Secretary) 
attributable to Detroit, Michigan. The city of Detroit, Michigan, shall 
provide the Secretary such information as the Secretary may request for 
purposes of making the determinations required under this subsection. 
For purposes of this subsection, the taxes imposed on a corporation or 
other business entity shall not be treated as attributable to Detroit, 
Michigan, merely because the headquarters of such corporation or entity 
is located in Detroit, Michigan.
    ``(c) Expenditures.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, amounts in the Detroit Jobs Trust Fund shall 
        (without need of any further appropriation) be distributed 
        annually by the Secretary to the city of Detroit, Michigan, to 
        carry out the purposes described in paragraph (2).
            ``(2) Use of expenditures.--Amounts distributed to the city 
        of Detroit, Michigan, under this section shall be used for the 
        following purposes and in the following order of priority:
                    ``(A) First, of the amounts distributed with 
                respect the annual period not in excess of the Detroit 
                income tax suspension hold harmless amount, for any 
                purpose determined by the city government of Detroit, 
                Michigan.
                    ``(B) Second, for payment of principal and interest 
                on any general obligation issued by the city of 
                Detroit, Michigan (to the extent of such obligations).
                    ``(C) Third, for payment of principal and interest 
                on obligations to which section 103 applies and the 
                proceeds of which were used for the public schools of 
                the city of Detroit, Michigan (to the extent of such 
                obligations).
                    ``(D) Fourth, for jobs development, public safety, 
                education, business infrastructure, or public 
                infrastructure (to the extent consistent with the plan 
                described in paragraph (4)).
            ``(3) Restriction on distributions.--No distribution shall 
        be made by the Secretary under paragraph (1) unless--
                    ``(A) the city of Detroit, Michigan, does not 
                impose an income tax with respect to the period to 
                which such distribution relates,
                    ``(B) such city has reduced the aggregate property 
                taxes imposed by an amount not less than the reduction 
                in the payment obligations of such city by reason of 
                the payments described in paragraph (2),
                    ``(C) all prior distributions made to the city 
                under paragraph (2) were used by the city in a manner 
                consistent with the requirements of paragraph (2), and
                    ``(D) such city has provided such information to 
                the Comptroller General of the United States as the 
                Comptroller General may request to carry out section 
                2(b) of the Detroit Economic Competitiveness Act.
            ``(4) 5-year development plan.--A plan is described in this 
        paragraph if such plan--
                    ``(A) is a 5-year plan describing development goals 
                for Detroit, Michigan, and detailing how distributions 
                for purposes described in paragraph (2)(D) will be 
                spent,
                    ``(B) has been approved by simple majority vote of 
                the City Council of Detroit, Michigan (after 
                consultation with the Detroit Board of Education), and
                    ``(C) has been submitted to, and approved by, the 
                Secretary of the Treasury, the Secretary of Housing and 
                Urban Development, and the Secretary of Education.
        No distribution shall be made under paragraph (1) for a purpose 
        described in paragraph (2)(D) unless a plan described in this 
        paragraph is in effect and all prior such distributions for 
        such purposes were used in accordance with such plan.
            ``(5) Special rules during period of plan development.--
        During the period during which the plan described in paragraph 
        (4) is developed (but not in excess of the 5-month period 
        beginning on the date of the first distribution under paragraph 
        (1)), amounts distributed may be used concurrently for the 
        purposes described in subparagraphs (A), (B), and (C) of 
        paragraph (2).
            ``(6) Detroit income tax suspension hold harmless amount.--
                    ``(A) In general.--For purposes of paragraph 
                (2)(A), the term `Detroit income tax suspension hold 
                harmless amount' means the amount (as determined by the 
                Secretary) of revenue collected by the city of Detroit 
                pursuant to the income tax imposed by such city during 
                the calendar year preceding the calendar year which 
                includes the date of the enactment of this section.
                    ``(B) Cross reference.--For provision which 
                requires suspension of the Detroit income tax, see 
                paragraph (3)(A).
                    ``(C) Tax returns may still be required.--The city 
                of Detroit, Michigan, shall not be treated as failing 
                to satisfy the requirement of paragraph (3)(A) with 
                respect to any period merely because taxpayers are 
                required to file tax returns and report income with 
                respect to such period.
            ``(7) Amounts made available not to reduce other funding.--
        Amounts distributed to the city of Detroit, Michigan, under 
        this section shall supplement, and not supplant, any other 
        funding (including any Federal funding) for such city.
    ``(d) Termination.--No amount shall be distributed from, or 
appropriated to, the Detroit Jobs Trust Fund after the 5-year period 
beginning on the date of the enactment of this section. Any amounts 
remaining in such Trust Fund at the end of such period shall be 
transferred to the general fund of the Treasury. The 5-year period 
specified in this subsection shall not be renewed or extended.''.
    (b) GAO Reports.--The Comptroller General of the United States 
shall submit an annual report to Congress which--
            (1) describes the manner and purposes for which 
        distributions made from the Detroit Jobs Trust Fund have been 
        used,
            (2) describes the extent to which progress has been made 
        toward meeting the development goals under the plan described 
        in section 9512(c)(4) of the Internal Revenue Code of 1986 (as 
        added by this section) and whether such progress is consistent 
        with meeting such goals, and
            (3) includes any recommendations the Comptroller General 
        may have regarding improvements to the program described in 
        section 9512 of such Code.
The first such annual report shall be submitted not later than 90 days 
after the 1-year period beginning on the date of the enactment of this 
Act and the last such annual report shall be submitted not later than 
90 days after the date on which the Detroit Jobs Trust Fund terminates 
pursuant to section 9512(d) of such Code.
    (c) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``Sec. 9512. Detroit Jobs Trust Fund.''.

SEC. 3. ZERO CAPITAL GAINS RATE FOR CERTAIN NEW INVESTMENTS IN DETROIT, 
              MICHIGAN.

    (a) In General.--Subchapter Y of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

        ``PART IV--CERTAIN NEW INVESTMENTS IN DETROIT, MICHIGAN

``Sec. 1400V. Zero capital gains rate for certain new investments in 
                            Detroit, Michigan.

``SEC. 1400V. ZERO CAPITAL GAINS RATE FOR CERTAIN NEW INVESTMENTS IN 
              DETROIT, MICHIGAN.

    ``(a) In General.--Gross income does not include any qualified 
capital gain from the sale or exchange of a specified new investment 
held for more than 1 year.
    ``(b) Specified New Investment.--For purposes of this section--
            ``(1) In general.--The term `specified new investment' 
        means--
                    ``(A) any qualified stock,
                    ``(B) any qualified partnership interest, and
                    ``(C) any qualified business property.
            ``(2) Qualified stock.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `qualified stock' means any 
                stock in a domestic corporation if--
                            ``(i) such stock is acquired by the 
                        taxpayer during the 1-year period beginning on 
                        the date of the enactment of this section, at 
                        its original issue (directly or through an 
                        underwriter) from the corporation solely in 
                        exchange for cash,
                            ``(ii) as of the time such stock was 
                        issued, such corporation was a specified 
                        Detroit business (or, in the case of a new 
                        corporation, such corporation was being 
                        organized for purposes of being a specified 
                        Detroit business), and
                            ``(iii) during substantially all of the 
                        taxpayer's holding period for such stock, such 
                        corporation qualified as a specified Detroit 
                        business.
                    ``(B) Redemptions.--A rule similar to the rule of 
                section 1202(c)(3) shall apply for purposes of this 
                paragraph.
            ``(3) Qualified partnership interest.--The term `qualified 
        partnership interest' means any capital or profits interest in 
        a domestic partnership if--
                    ``(A) such interest is acquired by the taxpayer 
                during the 1-year period beginning on the date of the 
                enactment of this section, from the partnership solely 
                in exchange for cash,
                    ``(B) as of the time such interest was acquired, 
                such partnership was a specified Detroit business (or, 
                in the case of a new partnership, such partnership was 
                being organized for purposes of being a specified 
                Detroit business), and
                    ``(C) during substantially all of the taxpayer's 
                holding period for such interest, such partnership 
                qualified as a specified Detroit business.
        A rule similar to the rule of paragraph (2)(B) shall apply for 
        purposes of this paragraph.
            ``(4) Qualified business property.--
                    ``(A) In general.--The term `qualified business 
                property' means tangible property if--
                            ``(i) such property was acquired by the 
                        taxpayer by purchase (as defined in section 
                        179(d)(2)) during the 1-year period beginning 
                        on the date of the enactment of this section,
                            ``(ii) the original use of such property in 
                        Detroit, Michigan, commences with the taxpayer, 
                        and
                            ``(iii) during substantially all of the 
                        taxpayer's holding period for such property, 
                        substantially all of the use of such property 
                        was in a specified Detroit business of the 
                        taxpayer.
                    ``(B) Special rule for substantial improvements.--
                The requirements of clauses (i) and (ii) of 
                subparagraph (A) shall be treated as satisfied with 
                respect to--
                            ``(i) property which is substantially 
                        improved by the taxpayer before the end of the 
                        period described in subparagraph (A)(i), and
                            ``(ii) any land on which such property is 
                        located.
                The determination of whether a property is 
                substantially improved shall be made under clause (ii) 
                of section 1400B(b)(4)(B), except that `the date of the 
                enactment of section 1400V' shall be substituted for 
                `December 31, 1997' in such clause.
    ``(c) Qualified Capital Gain.--For purposes of this section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `qualified capital gain' means any gain 
        recognized on the sale or exchange of--
                    ``(A) a capital asset, or
                    ``(B) property used in the trade or business (as 
                defined in section 1231(b)).
            ``(2) Gain before enactment not qualified.--The term 
        `qualified capital gain' shall not include any gain 
        attributable to periods before the date of the enactment of 
        this section.
            ``(3) Certain rules to apply.--Rules similar to the rules 
        of paragraphs (3), (4), and (5) of section 1400B(e) shall apply 
        for purposes of this subsection.
    ``(d) Specified Detroit Business.--For purposes of this section, 
the term `specified Detroit business' means any enterprise zone 
business (as defined in section 1397C), determined--
            ``(1) without regard to subsections (b)(6) and (c)(5) 
        thereof,
            ``(2) by substituting `80 percent' for `50 percent' in 
        subsections (b)(2) and (c)(1) thereof,
            ``(3) by treating Detroit, Michigan, as an empowerment zone 
        (and by treating no area other than Detroit, Michigan, as an 
        empowerment zone).
    ``(e) Certain Rules To Apply.--For purposes of this section, rules 
similar to the rules of paragraphs (6) and (7) of subsection (b), and 
subsections (f) and (g), of section 1400B shall apply; except that for 
such purposes section 1400B(g)(2) shall be applied by substituting 
`before the date of the enactment of section 1400V' for `before January 
1, 1998, or after December 31, 2014'.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out the purposes of this section, 
including regulations to prevent the abuse of the purposes of this 
section.''.
    (b) Clerical Amendment.--The table of parts for subchapter Y of 
chapter 1 of such Code is amended by adding at the end the following 
new item:

       ``Part IV. Certain New Investments in Detroit, Michigan''.

    (c) Effective Date.--The amendments made by this section shall 
apply to property acquired after the date of the enactment of this Act.
[A]: Detroit Economic Competitiveness Act - Amends the Internal Revenue Code to establish the Detroit Jobs Trust Fund to finance economic development in Detroit, Michigan. Requires the Secretary of the Treasury to make annual distributions from such Fund to the city of Detroit for payment of debt obligations and for job development, public safety, education, and business and public infrastructure. Prohibits any distributions unless the city of Detroit: (1) does not impose an income tax during a period of distribution, (2) has made specified reductions in aggregate property taxes, (3) has used prior distributions as required under this Act, (4) has provided required information to the Comptroller General (GAO), and (5) has implemented a five-year plan describing development goals for Detroit and detailing how distributions from the Trust Fund will be spent. Terminates such Fund five years after enactment of this Act.

Requires GAO to submit annual reports to Congress describing the use of distributions from the Trust Fund, the extent to which progress has been made in meeting the plan's development goals, and Comptroller General recommendations for improving the program established under this Act.

Excludes from gross income capital gain from the sale or exchange of investment property used in trade or business in Detroit.


[Q]: SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Johnson-O'Malley Supplemental Indian 
Education Program Modernization Act''.
SEC. 2. INDIAN EDUCATION PROGRAM STUDENT COUNT UPDATE.
    The Act of April 16, 1934 (25 U.S.C. 5342 et seq.) (commonly 
referred to as the Johnson-O'Malley Act) is amended by adding at the 
end the following:
``SEC. 7. COMPUTATION OF STUDENT COUNT.
    ``(a) Definitions.--For the purposes of this Act, the following 
definitions apply:
        ``(1) Contracting party.--The term `contracting party' means an 
    entity that has a contract through a program authorized under this 
    Act.
        ``(2) Eligible entity.--The term `eligible entity' means an 
    entity that is eligible to apply for a contract for a supplemental 
    or operational support program under this Act, as outlined in 
    section 1.
        ``(3) Existing contracting party.--The term `existing 
    contracting party' means a contracting party that has a contract 
    under this Act that is in effect on the date of enactment of the 
    JOM Modernization Act.
        ``(4) JOM modernization act.--The term `JOM Modernization Act' 
    means the Johnson-O'Malley Supplemental Indian Education Program 
    Modernization Act.
        ``(5) New contracting party.--The term `new contracting party' 
    means an entity that enters into a contract under this Act after 
    the date of enactment of the JOM Modernization Act.
        ``(6) Secretary.--The term `Secretary' means the Secretary of 
    the Interior.
    ``(b) Determination of the Number of Eligible Indian Students.--
        ``(1) Initial determinations.--
            ``(A) In general.--The Secretary shall make an initial 
        determination of the number of eligible Indian students served 
        or potentially served by each eligible entity in accordance 
        with subparagraph (B).
            ``(B) Process for making the initial determination.--
                ``(i) Preliminary report.--Not later than 180 days 
            after the date of enactment of the JOM Modernization Act, 
            the Secretary shall publish a preliminary report describing 
            the number of eligible Indian students served or 
            potentially served by each eligible entity, using the most 
            applicable and accurate data (as determined by the 
            Secretary in consultation with eligible entities) from the 
            fiscal year preceding the fiscal year for which the initial 
            determination is to be made from--

                    ``(I) the Bureau of the Census;
                    ``(II) the National Center for Education 
                Statistics; or
                    ``(III) the Office of Indian Education of the 
                Department of Education.

                ``(ii) Data reconciliation.--To improve the accuracy of 
            the preliminary report described in clause (i) prior to 
            publishing, the Secretary shall reconcile the data 
            described in the preliminary report with--

                    ``(I) each existing contracting party's data 
                regarding the number of eligible Indian students served 
                by the existing contracting party for the fiscal year 
                preceding the fiscal year for which the initial 
                determination is made; and
                    ``(II) identifiable tribal enrollment information.

                ``(iii) Comment period.--After publishing the 
            preliminary report under clause (i) in accordance with 
            clause (ii), the Secretary shall establish a 60-day comment 
            period to gain feedback about the preliminary report from 
            eligible entities, which the Secretary shall take into 
            consideration in preparing the final report described in 
            clause (iv).
                ``(iv) Final report.--Not later than 120 days after 
            concluding the consultation described in clause (iii), the 
            Secretary shall publish a final report on the initial 
            determination of the number of eligible Indian students 
            served or potentially served by each eligible entity, 
            including justification for not including any feedback 
            gained during such consultation, if applicable.
        ``(2) Subsequent academic years.--For each academic year 
    following the fiscal year for which an initial determination is 
    made under paragraph (1) to determine the number of eligible Indian 
    students served or potentially served by a contracting party, the 
    Secretary shall determine the number of eligible Indian students 
    served by the contracting party based on the reported eligible 
    Indian student count numbers identified through the reporting 
    process described in subsection (c).
    ``(c) Contracting Party Student Count Reporting Compliance.--
        ``(1) In general.--For each academic year following the fiscal 
    year for which an initial determination is made under subsection 
    (b) to determine the number of eligible Indian students served or 
    potentially served by a contracting party, the contracting party 
    shall submit to the Secretary a report describing the number of 
    eligible Indian students who were served using amounts allocated to 
    such party under this Act during the previous fiscal year. The 
    report shall also include an accounting of the amounts and purposes 
    for which the contract funds were expended.
        ``(2) Failure to comply.--A contracting party that fails to 
    submit a report under paragraph (1) shall receive no amounts under 
    this Act for the fiscal year following the academic year for which 
    the report should have been submitted.
        ``(3) Notice.--The Secretary shall provide contracting parties 
    with timely information relating to--
            ``(A) initial and final reporting deadlines; and
            ``(B) the consequences of failure to comply outlined in 
        paragraph (2).
        ``(4) Technical assistance.--The Secretary, acting through the 
    Director of the Bureau of Indian Education, shall provide technical 
    assistance and training on compliance with the reporting 
    requirements of this subsection to contracting parties.
    ``(d) Annual Report.--
        ``(1) In general.--The Secretary shall prepare an annual 
    report, including the most recent determination of the number of 
    eligible Indian students served by each contracting party, 
    recommendations on appropriate funding levels for the program based 
    on such determination, and an assessment of the contracts under 
    this Act that the Secretary--
            ``(A) may include in the budget request of the Department 
        of the Interior for each fiscal year;
            ``(B) shall submit to--
                ``(i) the Committee on Indian Affairs of the Senate;
                ``(ii) the Subcommittee on Interior, Environment, and 
            Related Agencies of the Committee on Appropriations of the 
            Senate;
                ``(iii) the Committee on Education and the Workforce of 
            the House of Representatives; and
                ``(iv) the Subcommittee on Interior, Environment, and 
            Related Agencies of the Committee on Appropriations of the 
            House of Representatives; and
            ``(C) shall make publicly available.
        ``(2) Manner of preparation.--The Secretary shall prepare the 
    report under paragraph (1) in a manner so as to prevent or minimize 
    new administrative burdens on contracting parties receiving funds 
    under this Act.
    ``(e) Hold Harmless.--
        ``(1) Initial hold harmless.--
            ``(A) In general.--Except as provided under subparagraph 
        (B) and subject to subparagraphs (C) and (D), for a fiscal 
        year, an existing contracting party shall not receive an amount 
        under this Act that is less than the amount that such existing 
        contracting party received under this Act for the fiscal year 
        preceding the date of enactment of the JOM Modernization Act.
            ``(B) Exceptions.--
                ``(i) In general.--An existing contracting party shall 
            receive an amount under this Act for a fiscal year that is 
            less than the amount that the existing contracting party 
            received under this Act for the fiscal year preceding the 
            date of enactment of the JOM Modernization Act, if one or 
            more of the following conditions is met:

                    ``(I) Failure to report.--The existing contracting 
                party failed to submit a complete report described in 
                subsection (c) that was most recently due from the date 
                of the determination.
                    ``(II) Violations of contract or law.--The 
                Secretary has found that the existing contracting party 
                has violated the terms of a contract entered into under 
                this Act or has otherwise violated Federal law.
                    ``(III) Student count decrease.--The number of 
                eligible Indian students reported by such existing 
                contracting party under subsection (c) has decreased 
                below the number of eligible Indian students served by 
                the existing contracting party in the fiscal year 
                preceding the date of enactment of the JOM 
                Modernization Act.

                ``(ii) Amount of funding reduction for existing 
            contracting parties reporting decreased student counts.--A 
            reduction in an amount pursuant to clause (i)(III) shall 
            not be done in such a manner that the existing contracting 
            party receives an amount of funding per eligible Indian 
            student that is less than the amount of funding per 
            eligible Indian student such party received for the fiscal 
            year preceding the date of enactment of the JOM 
            Modernization Act.
            ``(C) Ratable reductions in appropriations.--If the funds 
        available under this Act for a fiscal year are insufficient to 
        pay the full amounts that all existing contracting parties are 
        eligible to receive under subparagraph (A) for the fiscal year, 
        the Secretary shall ratably reduce those amounts for the fiscal 
        year.
            ``(D) Sunset.--This paragraph shall cease to be effective 4 
        years after the date of enactment of the JOM Modernization Act.
        ``(2) Maximum decrease after 4 years.--Beginning 4 years after 
    the date of enactment of the JOM Modernization Act, no contracting 
    party shall receive for a fiscal year more than a 10 percent 
    decrease in funding per eligible Indian student from the previous 
    fiscal year.
    ``(f) Funding Allocation and Reform.--
        ``(1) Funding reform.--The Secretary may make recommendations 
    for legislation to increase the amount of funds available per 
    eligible Indian student through contracts under this Act to equal 
    to or greater than the amount of funds that were available per 
    eligible Indian student through contracts under this Act for fiscal 
    year 1995, and attempt to identify additional sources of funding 
    that do not reallocate existing funds otherwise utilized by Indian 
    students served--
            ``(A) by the Bureau of Indian Education; or
            ``(B) under title VI of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7401 et seq.).
        ``(2) Increases in program funding.--
            ``(A) In general.--Subject to subsection (e) and 
        subparagraph (B), for any fiscal year for which the amount 
        appropriated to carry out this Act exceeds the amount 
        appropriated to carry out this Act for the preceding fiscal 
        year, the excess amounts shall--
                ``(i) be allocated only to those contracting parties 
            that did not receive their full per student funding 
            allocation for the previous fiscal year; and
                ``(ii) be allocated first to new contracting parties 
            that did not receive their full per student funding 
            allocation for the previous fiscal year.
            ``(B) Parity in funding.--Subparagraph (A) shall have no 
        effect after the first fiscal year for which each contracting 
        party receives their full per student funding allocation.
    ``(g) Increased Geographical and Tribal Participation in the 
Johnson-O'Malley Supplementary Education Program.--To the maximum 
extent practicable, the Secretary shall consult with Indian tribes and 
contact State educational agencies, local educational agencies, and 
Alaska Native organizations that have not previously entered into a 
contract under this Act--
        ``(1) to determine the interest of the Indian tribes, State 
    educational agencies, local educational agencies, and Alaska Native 
    organizations, in entering into such contracts; and
        ``(2) to share information relating to the process for entering 
    into a contract under this Act.
    ``(h) Rulemaking.--
        ``(1) In general.--Not later than 1 year after the date of 
    enactment of the JOM Modernization Act, the Secretary, acting 
    through the Director of the Bureau of Indian Education, shall 
    undertake and complete a rulemaking process, following the 
    provisions of subchapter II of chapter 5 of title 5, United States 
    Code, to--
            ``(A) determine how the regulatory definition of `eligible 
        Indian student' may be revised to clarify eligibility 
        requirements for contracting parties under this Act;
            ``(B) determine, as necessary, how the funding formula 
        described in section 273.31 of title 25, Code of Federal 
        Regulations (as in effect on the day before the date of 
        enactment of the JOM Modernization Act) may be clarified and 
        revised to ensure full participation of contracting parties and 
        provide clarity on the funding process under this Act; and
            ``(C) otherwise reconcile and modernize the rules to 
        comport with the activities of the contracting parties under 
        this Act as of the date of enactment of the JOM Modernization 
        Act.
        ``(2) Report.--Not later than 30 days after the date the 
    rulemaking under paragraph (1) is complete, the Secretary shall 
    submit a report to Congress describing the results of such 
    rulemaking and necessary recommendations to ensure the full 
    implementation of such rulemaking.
    ``(i) Student Privacy.--The Secretary shall ensure that data is 
collected and each report is prepared under this section in a manner 
that protects the rights of eligible Indian students in accordance with 
section 444 of the General Education Provisions Act (commonly referred 
to as the Family Educational Rights and Privacy Act of 1974) (20 U.S.C. 
1232g).
    ``(j) GAO Report.--Not later than 18 months after the final report 
described in subsection (b)(1)(B)(iv) is published, the Comptroller 
General shall--
        ``(1) conduct a review of the implementation of this section 
    during the preceding 2-year period, including any factors 
    impacting--
            ``(A) the accuracy of the determinations of the number of 
        eligible Indian students under this section;
            ``(B) the communication between the Bureau of Indian 
        Education and contracting parties; and
            ``(C) the efforts by the Bureau of Indian Education to 
        ensure accurate and sufficient distribution of funding for 
        Indian students;
        ``(2) submit a report describing the results of the review 
    under paragraph (1) to--
            ``(A) the Committee on Indian Affairs of the Senate;
            ``(B) the Subcommittee on Interior, Environment, and 
        Related Agencies of the Committee on Appropriations of the 
        Senate;
            ``(C) the Subcommittee on Indian, Insular and Alaska Native 
        Affairs of the Committee on Natural Resources of the House of 
        Representatives; and
            ``(D) the Subcommittee on Interior, Environment, and 
        Related Agencies of the Committee on Appropriations of the 
        House of Representatives; and
        ``(3) make such report publicly available.
    ``(k) Effect.--Nothing in this section--
        ``(1) creates a new program or duplicates program activities 
    under this Act; or
        ``(2) replaces or diminishes the effect of regulations to carry 
    out this Act existing on the day before the date of enactment of 
    the JOM Modernization Act, unless expressly provided in this 
    section.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
[A]: Johnson-O'Malley Supplemental Indian Education Program Modernization Act This bill requires the Department of the Interior to annually update the count of Indian students eligible for the Johnson-O'Malley Program (JOM Program). The JOM Program awards contracts to tribal organizations, schools, states, and others to support the cultural and academic needs of Indian students. The contract amounts are based on the number of students served. Contracting parties must annually report to Interior on the number of students they serve. If they fail to submit the report, then Interior may not give them program funds for the next fiscal year.  The bill sets forth a process to revise funding allocations provided under the program.  Interior must consult with Indian tribes and state and local education agencies that have not participated in the program to determine their interest in entering into contracts. The Bureau of Indian Education must determine how: (1) the regulatory definition of eligible student may be clarified for contracting parties, and (2) the program funding formula may be updated to ensure the full participation of contracting parties and provide clarity on the funding process.


[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Pay Comparability Act of 
2003''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) One of the underlying principles of the all-volunteer 
        Armed Forces is the principle that military pay increases must 
        remain comparable to private sector pay growth, as measured by 
        the Employment Cost Index.
            (2) The capping of military pay raises below private sector 
        pay growth for extended periods during the past 30 years has 
        led to significant retention problems among second-term and 
        career members of the Armed Forces.
            (3) Such retention problems cost the United States more in 
        terms of lost military experience, decreased readiness, and 
        increased training costs than maintaining the principle of pay 
        comparability.
            (4) Since military pay was last deemed reasonably 
        comparable with private sector pay in 1982, military pay raises 
        have lagged a cumulative 6.4 percent behind private sector wage 
        growth, although recent efforts of the President and Congress 
        have reduced the gap significantly from its peak of 13.5 
        percent in 1999.
            (5) Under existing law, while military pay increases must 
        exceed growth in the Employment Cost Index through fiscal year 
        2006, increases in subsequent years will be capped one-half 
        percentage point below the Employment Cost Index, to the 
        detriment of retention and readiness over the long term.
            (6) The remaining so-called pay comparability gap should be 
        eliminated as quickly as possible, and military pay increases 
        must sustain full comparability with increases in the 
        Employment Cost Index.

SEC. 3. ANNUAL ADJUSTMENTS IN MONTHLY BASIC PAY FOR MEMBERS OF THE 
              UNIFORMED SERVICES.

    (a) Annual Adjustment Required.--Section 1009 of title 37, United 
States Code, is amended by striking subsections (a), (b), and (c) and 
inserting the following new subsections:
    ``(a) Requirement for Annual Adjustment.--Effective on January 1 of 
each year, the rates of basic pay for members of the uniformed services 
under section 203(a) of this title shall be increased under this 
section.
    ``(b) Effectiveness of Adjustment.--An adjustment under this 
section shall have the force and effect of law.
    ``(c) Equal Percentage Increase for All Members.--(1) Subject to 
subsection (d), an adjustment made under this section in a year shall 
provide all eligible members with an increase in the monthly basic pay 
that is the percentage (rounded to the nearest one-tenth of 1 percent) 
by which the Employment Cost Index for the base quarter of the year 
before the preceding year exceeds the Employment Cost Index for the 
base quarter of the second year before the preceding calendar year (if 
at all).
    ``(2) Notwithstanding paragraph (1), but subject to subsection (d), 
the percentage of the adjustment taking effect under this section 
during each of fiscal years 2004, 2005, and 2006, shall be one-half of 
one percentage point higher than the percentage that would otherwise be 
applicable under such paragraph.''.
    (b) Publication of Adjusted Rates.--Subsection (e) of such section 
is amended--
            (1) by striking ``(e) Notice of Allocations.--'' and 
        inserting ``(e) Notification and Publication Requirements.--
        (1)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The rates of basic pay that take effect under this section 
shall be printed in the Federal Register and the Code of Federal 
Regulations.''.
    (c) Presidential Determination of Need for Alternative Pay 
Adjustment.--Such section is further amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following new 
        subsection (g):
    ``(g) Effect of National Emergency or Serious Economic 
Conditions.--(1) If, because of national emergency or serious economic 
conditions affecting the general welfare, the President determines that 
the pay adjustment otherwise required by this section for a year is 
inappropriate, the President may prepare a plan proposing such 
alternative pay adjustments as the President considers appropriate. The 
President shall submit the plan, together with the reasons for the 
alternative pay adjustments, to Congress before March 1 of the 
preceding year.
    ``(2) In evaluating an economic condition affecting the general 
welfare under this subsection, the President shall consider pertinent 
economic measures including the Indexes of Leading Economic Indicators, 
the Gross National Product, the unemployment rate, the budget deficit, 
the Consumer Price Index, the Producer Price Index, the Employment Cost 
Index, and the Implicit Price Deflator for Personal Consumption 
Expenditures.
    ``(3) The President shall include in the plan submitted under 
paragraph (1) an assessment of the impact that the alternative pay 
adjustments proposed in the plan will have on the ability to recruit 
and retain well-qualified members of the uniformed services.
    (d) Definitions.--Such section, as amended by subsection (c), is 
further amended by adding at the end the following new subsection:
    ``(i) Definitions.--In this section:
            ``(1) The term `Employment Cost Index' means the Employment 
        Cost Index (wages and salaries, private industry workers) 
        published quarterly by the Bureau of Labor Statistics.
            ``(2) The term `base quarter' for any year is the three-
        month period ending on September 30 of such year.''.
    (e) Conforming Amendment.--Subsection (d)(2) of such section is 
amended by striking ``in the General Schedule rates of basic pay for 
civilian employees.'' and inserting ``in the rates of monthly basic pay 
under this section.''.
[A]:
Military Pay Comparability Act of 2003 - Requires the monthly rates of basic military pay to be adjusted effective January 1 of each year. (Currently, such rates are adjusted whenever the General Schedule (GS) of Compensation for Federal employees is adjusted.)Requires equal annual pay percentage increases for all military personnel to be based on percentage increases in the Employment Cost Index (currently on GS adjustments). Increases percentage adjustments by one-half percent for FY 2004 through 2006.Requires new annual rates of pay to be published in the Federal Register and the Code of Federal Regulations.Authorizes the President, upon determining that annual pay adjustments would be inappropriate because of national emergency or serious economic conditions, to prepare and transmit to Congress a plan for an alternative pay adjustment. Requires the President to consider under such plan the impact that the alternative adjustment would have on the Government's ability to recruit and retain well-qualified members of the armed forces.