TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Fracturing Regulations are Effective
in State Hands Act''.

SEC. 2. FINDINGS.

Congress finds that--
(1) hydraulic fracturing is a commercially viable practice
that has been used in the United States for more than 60 years
in more than 1,000,000 wells;
(2) the Ground Water Protection Council, a national
association of State water regulators that is considered to be
a leading groundwater protection organization in the United
States, released a report entitled ''State Oil and Natural Gas
Regulations Designed to Protect Water Resources'' and dated May
2009 finding that the ''current State regulation of oil and gas
activities is environmentally proactive and preventive'';
(3) that report also concluded that ''[a]ll oil and gas
producing States have regulations which are designed to provide
protection for water resources'';
(4) a 2004 study by the Environmental Protection Agency,
entitled ''Evaluation of Impacts to Underground Sources of
Drinking Water by Hydraulic Fracturing of Coalbed Methane
Reservoirs'', found no evidence of drinking water wells
contaminated by fracture fluid from the fracked formation;
(5) a 2009 report by the Ground Water Protection Council,
entitled ''State Oil and Natural Gas Regulations Designed to
Protect Water Resources'', found a ''lack of evidence'' that
hydraulic fracturing conducted in both deep and shallow
formations presents a risk of endangerment to ground water;
(6) a January 2009 resolution by the Interstate Oil and Gas
Compact Commission stated ''The states, who regulate
production, have comprehensive laws and regulations to ensure
operations are safe and to protect drinking water. States have
found no verified cases of groundwater contamination associated
with hydraulic fracturing.'';
(7) on May 24, 2011, before the Oversight and Government
Reform Committee of the House of Representatives, Lisa Jackson,
the Administrator of the Environmental Protection Agency,
testified that she was ''not aware of any proven case where the
fracking process itself has affected water'';
(8) in 2011, Bureau of Land Management Director Bob Abbey
stated, ''We have not seen evidence of any adverse effect as a
result of the use of the chemicals that are part of that
fracking technology.'';
(9)(A) activities relating to hydraulic fracturing (such as
surface discharges, wastewater disposal, and air emissions) are
already regulated at the Federal level under a variety of
environmental statutes, including portions of--
(i) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.);
(ii) the Safe Drinking Water Act (42 U.S.C. 300f et
seq.); and
(iii) the Clean Air Act (42 U.S.C. 7401 et seq.);
but
(B) Congress has continually elected not to include the
hydraulic fracturing process in the underground injection
control program under the Safe Drinking Water Act (42 U.S.C.
300f et seq.);
(10) in 2011, the Secretary of the Interior announced the
intention to promulgate new Federal regulations governing
hydraulic fracturing on Federal land;
(11) a February 2012 study by the Energy Institute at the
University of Texas at Austin, entitled ''Fact-Based Regulation
for Environmental Protection in Shale Gas Development'', found
that ''[n]o evidence of chemicals from hydraulic fracturing
fluid has been found in aquifers as a result of fracturing
operations''; and
(12) on October 1, 2014, the Ground Water Protection
Council and State Oil and Gas Regulatory Exchange released a
report entitled ''State Oil and Gas Regulations Designed to
Protect Water Resources'' that describes the cutting edge of
State-based oil and gas regulations, concluding that ''In step
with dramatic industry growth over the past five years, states
have substantially improved groundwater protection laws and
regulations governing oil and natural gas production.''.

SEC. 3. DEFINITION OF FEDERAL LAND.

In this Act, the term ''Federal land'' means--
(1) public lands (as defined in section 103 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C. 1702));
(2) National Forest System land;
(3) land under the jurisdiction of the Bureau of
Reclamation; and
(4) land under the jurisdiction of the Corps of Engineers.

SEC. 4. STATE AUTHORITY.

(a) In General.--A State shall have the sole authority to
promulgate or enforce any regulation, guidance, or permit requirement
regarding the treatment of a well by the application of fluids under
pressure to which propping agents may be added for the expressly
designed purpose of initiating or propagating fractures in a target
geologic formation in order to enhance production of oil, natural gas,
or geothermal production activities on or under any land within the
boundaries of the State.
(b) Federal Land.--The treatment of a well by the application of
fluids under pressure to which propping agents may be added for the
expressly designed purpose of initiating or propagating fractures in a
target geologic formation in order to enhance production of oil,
natural gas, or geothermal production activities on Federal land shall
be subject to the law of the State in which the land is located.

SOLUTION: Fracturing Regulations are Effective in State Hands Act This bill gives states the sole authority to promulgate or enforce any regulation, guidance, or permit requirement regarding hydraulic fracturing on or under any land within their boundaries. Hydraulic fracturing or fracking is a process to extract underground resources such as oil or gas from a geologic formation by injecting water, a propping agent (e.g., sand), and chemical additives into a well under enough pressure to fracture the geological formation. Hydraulic fracturing on federal land must comply with the law of the state in which the land is located.

PROBLEM: SECTION 1. PERMANENT EXTENSION OF ESTATE TAX AS IN EFFECT IN 2009.

(a) Restoration of Unified Credit Against Gift Tax.--Paragraph (1)
of section 2505(a) (relating to general rule for unified credit against
gift tax), after the application of subsection (f), is amended by
striking ''(determined as if the applicable exclusion amount were
$1,000,000)''.
(b) Exclusion Equivalent of Unified Credit Equal to $3,500,000.--
Subsection (c) of section 2010 of the Internal Revenue Code of 1986
(relating to unified credit against estate tax) is amended to read as
follows:
''(c) Applicable Credit Amount.--
''(1) In general.--For purposes of this section, the
applicable credit amount is the amount of the tentative tax
which would be determined under section 2001(c) if the amount
with respect to which such tentative tax is to be computed were
equal to the applicable exclusion amount.
''(2) Applicable exclusion amount.--
''(A) In general.--For purposes of this subsection,
the applicable exclusion amount is $3,500,000.
''(B) Inflation adjustment.--In the case of any
decedent dying in a calendar year after 2010, the
dollar amount in subparagraph (A) shall be increased by
an amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting 'calendar year
2009' for 'calendar year 1992' in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sentence
is not a multiple of $10,000, such amount shall be
rounded to the nearest multiple of $10,000.''.
(c) Maximum Estate Tax Rate Equal to 45 Percent.--
(1) In general.--Subsection (c) of section 2001 of the
Internal Revenue Code of 1986 (relating to imposition and rate
of tax) is amended--
(A) by striking ''but not over $2,000,000'' in the
table contained in paragraph (1),
(B) by striking the last 2 items in such table,
(C) by striking ''(1) in general.--'', and
(D) by striking paragraph (2).
(2) Conforming amendment.--Paragraphs (1) and (2) of
section 2102(b) of such Code are amended to read as follows:
''(1) In general.--A credit in an amount that would be
determined under section 2010 as the applicable credit amount
if the applicable exclusion amount were $60,000 shall be
allowed against the tax imposed by section 2101.
''(2) Residents of possessions of the united states.--In
the case of a decedent who is considered to be a 'nonresident
not a citizen of the United States' under section 2209, the
credit allowed under this subsection shall not be less than the
proportion of the amount that would be determined under section
2010 as the applicable credit amount if the applicable
exclusion amount were $175,000 which the value of that part of
the decedent's gross estate which at the time of the decedent's
death is situated in the United States bears to the value of
the decedent's entire gross estate, wherever situated.''.
(d) Modifications of Estate and Gift Taxes To Reflect Differences
in Unified Credit Resulting From Different Tax Rates.--
(1) Estate tax.--
(A) In general.--Section 2001(b)(2) of the Internal
Revenue Code of 1986 (relating to computation of tax)
is amended by striking ''if the provisions of
subsection (c) (as in effect at the decedent's death)''
and inserting ''if the modifications described in
subsection (g)''.
(B) Modifications.--Section 2001 of such Code is
amended by adding at the end the following new
subsection:
''(g) Modifications to Gift Tax Payable To Reflect Different Tax
Rates.--For purposes of applying subsection (b)(2) with respect to 1 or
more gifts, the rates of tax under subsection (c) in effect at the
decedent's death shall, in lieu of the rates of tax in effect at the
time of such gifts, be used both to compute--
''(1) the tax imposed by chapter 12 with respect to such
gifts, and
''(2) the credit allowed against such tax under section
2505, including in computing--
''(A) the applicable credit amount under section
2505(a)(1), and
''(B) the sum of the amounts allowed as a credit
for all preceding periods under section 2505(a)(2).
For purposes of paragraph (2)(A), the applicable credit amount
for any calendar year before 1998 is the amount which would be
determined under section 2010(c) if the applicable exclusion
amount were the dollar amount under section 6018(a)(1) for such
year.''.
(2) Gift tax.--Section 2505(a) of such Code (relating to
unified credit against gift tax) is amended by adding at the
end the following new flush sentence:
''For purposes of applying paragraph (2) for any calendar year, the
rates of tax in effect under section 2502(a)(2) for such calendar year
shall, in lieu of the rates of tax in effect for preceding calendar
periods, be used in determining the amounts allowable as a credit under
this section for all preceding calendar periods.''.
(e) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, generation-skipping transfers, and
gifts made, after December 31, 2009.
(f) Additional Modifications to Estate Tax.--
(1) In general.--The following provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001, and the
amendments made by such provisions, are hereby repealed:
(A) Subtitles A and E of title V.
(B) Subsection (d), and so much of subsection
(f)(3) as relates to subsection (d), of section 511.
(C) Paragraph (2) of subsection (b), and paragraph
(2) of subsection (e), of section 521.
The Internal Revenue Code of 1986 shall be applied as if such
provisions and amendments had never been enacted.
(2) Sunset not to apply.--
(A) Subsection (a) of section 901 of the Economic
Growth and Tax Relief Reconciliation Act of 2001 is
amended by striking ''this Act'' and all that follows
and inserting ''this Act (other than title V) shall not
apply to taxable, plan, or limitation years beginning
after December 31, 2010.''.
(B) Subsection (b) of such section 901 is amended
by striking '', estates, gifts, and transfers''.
(3) Repeal of deadwood.--
(A) Sections 2011, 2057, and 2604 of the Internal
Revenue Code of 1986 are hereby repealed.
(B) The table of sections for part II of subchapter
A of chapter 11 of such Code is amended by striking the
item relating to section 2011.
(C) The table of sections for part IV of subchapter
A of chapter 11 of such Code is amended by striking the
item relating to section 2057.
(D) The table of sections for subchapter A of
chapter 13 of such Code is amended by striking the item
relating to section 2604.

SEC. 2. UNIFIED CREDIT INCREASED BY UNUSED UNIFIED CREDIT OF DECEASED
SPOUSE.

(a) In General.--Section 2010(c) of the Internal Revenue Code of
1986, as amended by section 1(b), is amended by striking paragraph (2)
and inserting the following new paragraphs:
''(2) Applicable exclusion amount.--For purposes of this
subsection, the applicable exclusion amount is the sum of--
''(A) the basic exclusion amount, and
''(B) in the case of a surviving spouse, the
aggregate deceased spousal unused exclusion amount.
''(3) Basic exclusion amount.--
''(A) In general.--For purposes of this subsection,
the basic exclusion amount is $3,500,000.
''(B) Inflation adjustment.--In the case of any
decedent dying in a calendar year after 2010, the
dollar amount in subparagraph (A) shall be increased by
an amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting 'calendar year
2009' for 'calendar year 1992' in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sentence
is not a multiple of $10,000, such amount shall be
rounded to the nearest multiple of $10,000.
''(4) Aggregate deceased spousal unused exclusion amount.--
For purposes of this subsection, the term 'aggregate deceased
spousal unused exclusion amount' means the lesser of--
''(A) the basic exclusion amount, or
''(B) the sum of the deceased spousal unused
exclusion amounts computed with respect to each
deceased spouse of the surviving spouse.
''(5) Deceased spousal unused exclusion amount.--For
purposes of this subsection, the term 'deceased spousal unused
exclusion amount' means, with respect to the surviving spouse
of any deceased spouse dying after December 31, 2009, the
excess (if any) of--
''(A) the basic exclusion amount of the deceased
spouse, over
''(B) the amount with respect to which the
tentative tax is determined under section 2001(b)(1) on
the estate of such deceased spouse.
''(6) Special rules.--
''(A) Election required.--A deceased spousal unused
exclusion amount may not be taken into account by a
surviving spouse under paragraph (5) unless the
executor of the estate of the deceased spouse files an
estate tax return on which such amount is computed and
makes an election on such return that such amount may
be so taken into account. Such election, once made,
shall be irrevocable. No election may be made under
this subparagraph if such return is filed after the
time prescribed by law (including extensions) for
filing such return.
''(B) Examination of prior returns after expiration
of period of limitations with respect to deceased
spousal unused exclusion amount.--Notwithstanding any
period of limitation in section 6501, after the time
has expired under section 6501 within which a tax may
be assessed under chapter 11 or 12 with respect to a
deceased spousal unused exclusion amount, the Secretary
may examine a return of the deceased spouse to make
determinations with respect to such amount for purposes
of carrying out this subsection.
''(7) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
this subsection.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 2505(a) of the Internal
Revenue Code of 1986, as amended by section 1(a), is amended to
read as follows:
''(1) the applicable credit amount in effect under section
2010(c) which would apply if the donor died as of the end of
the calendar year, reduced by''.
(2) Section 2631(c) of such Code is amended by striking
''the applicable exclusion amount'' and inserting ''the basic
exclusion amount''.
(3) Section 6018(a)(1) of such Code is amended by striking
''applicable exclusion amount'' and inserting ''basic exclusion
amount''.
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, generation-skipping transfers, and
gifts made, after December 31, 2009.

SEC. 3. SENSE OF THE SENATE REGARDING REVENUE NEUTRALITY.

It is the sense of the Senate that any reduction in Federal
revenues resulting from the provisions of, and amendments made by, this
Act should be fully offset.

SOLUTION: Amends the Internal Revenue Code to: (1) establish a permanent estate tax exclusion of $3.5 million ($7 million for married couples filing joint tax returns) and a maximum 45% tax rate for decedents dying, generation-skipping transfers, and gifts made, after December 31, 2009; (2) allow an annual inflation adjustment to the exclusion amount after 2010; and (3) allow a surviving spouse an increase in the estate tax exclusion by the unused exclusion amount of a deceased spouse.

Expresses the sense of the Senate that any reduction in federal revenues resulting from this Act should be fully offset.

PROBLEM: 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.

SOLUTION:
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.