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“(2) BUREAU ELEMENTARY AND SECONDARY not excessive) funding of the administrative “(6) PROJECTION OF COSTS.—The Secretary FUNCTIONS.—The term “Bureau elementary costs of the largest tribal elementary or sec shall include in the Bureau's justification for and secondary functions' meansondary educational programs; and

each appropriations request beginning in the “(A) all functions funded at Bureau schools “(iii) a standard direct cost base which is first fiscal year after the completion of the by the Office;

the aggregate direct cost funding level for studies conducted under paragraph (1), a pro“(B) all programs

which the percentage determined under sub jection of the overall costs associated with "(i) funds for which are appropriated to section (c) will

the formula set forth in subsection (c) for all other agencies of the Federal Government; “(I) be equal to the median between the tribal elementary or secondary education and

maximum base rate and the minimum base programs which the Secretary expects to be “(ii) which are administered for the benefit rate; and

funded in the fiscal year for which the approof Indians through Bureau schools; and

“(II) ensure that the amount of the grants priations are sought. "(C) all operation, maintenance, and repair

provided under this section will provide ade “(7) DETERMINATION OF PROGRAM SIZE.–For funds for facilities and government quarters

quate (but not excessive) funding of the ad purposes of this subsection, the size of tribal used in the operation or support of elemenministrative costs of tribal elementary or

elementary or secondary educational protary and secondary education functions for

secondary educational programs closest to grams is determined by the aggregate direct the benefit of Indians, from whatever source the size of the program.

cost program funding level for all Bureau derived.

“(2) GUIDELINES.—The studies required funded programs which share common ad“(3) DIRECT COST BASE.—(A) Except as othunder paragraph (1) shall

ministrative cost functions. erwise provided in subparagraph (B), the di

“(A) be conducted in full consultation (in “(j) AUTHORIZATION OF APPROPRIATIONS.rect cost base of a tribe or tribal organizaaccordance with section 1131) with

“(1) IN GENERAL.—There are authorized to tion for the fiscal year is the aggregate di

"(i) the tribes and tribal organizations be appropriated such sums as necessary to rect cost program funding for all tribal ele

that are affected by the application of the carry out this section. mentary or secondary educational programs formula set forth in subsection (c); and

“(2) REDUCTIONS.-If the total amount of operated by the tribe or tribal organization

“(ii) all national and regional Indian orga funds necessary to provide grants to tribes during

nizations of which such tribes and tribal or and tribal organizations in the amounts de"(i) the second fiscal year preceding such ganizations are typically members;

termined under subsection (b) for a fiscal fiscal year; or

“(B) be conducted onsite with a representa year exceeds the amount of funds appro“(ii) if such programs have not been oper

tive statistical sample of the tribal elemen priated to carry out this section for such fisated by the tribe or tribal organization dur

tary or secondary educational programs cal year, the Secretary shall reduce the ing the two preceding fiscal years, the first

under a contract entered into with a nation amount of each grant determined under subfiscal year preceding such fiscal year.

ally reputable public accounting and busi section (b) for such fiscal year by an amount “(B) In the case of Bureau elementary or secondary education functions which have ness consulting firm;

that bears the same relationship to such ex

“(C) take into account the availability of cess as the amount of such grants deternot previously been operated by a tribe or

skilled labor; commodities, business and mined under subsection (b) bears to the total tribal organization under contract, grant, or

automatic data processing services, related of all grants determined under subsection (b) agreement with the Bureau, the direct cost base for the initial year shall be the pro

Indian preference and Indian control of edu section for all tribes and tribal organizations jected aggregate direct cost program funding cation requirements, and any other market

for such fiscal year. factors found substantially to affect the ad

“(k) APPLICABILITY TO SCHOOLS OPERATING for all Bureau elementary and secondary functions to be operated by the tribe or trib

UNDER TRIBALLY CONTROLLED SCHOOLS ACT ministrative costs and efficiency of each

such tribal elementary or secondary edu OF 1988.—The provisions of this section shall al organization during that fiscal year. “(4) MAXIMUM BASE RATE.—The term 'max

cational program studied in order to assure also apply to those schools operating under imum base rate' means 50 percent.

that all required administrative activities the Tribally Controlled Schools Act of 1988. “(5) MINIMUM BASE RATE.—The term 'min

can reasonably be delivered in a cost effec "SEC. 1129. DIVISION OF BUDGET ANALYSIS. imum base rate' means 11 percent.

tive manner for each such program, given an “(a) ESTABLISHMENT.-Not later than 12 “(6) STANDARD DIRECT COST BASE.—The

administrative cost allowance generated by months after the date of the enactment of term 'standard direct cost base'

the values, percentages, or other factors the Student Results Act of 1999, the Sec

means $600,000.

found in the studies to be relevant in such retary shall establish within the Office of In(7) TRIBAL ELEMENTARY OR SECONDARY formula;

dian Education Programs a Division of BudgEDUCATIONAL PROGRAMS.—The term “tribal

“(D) identify, and quantify in terms of per et Analysis (hereinafter referred to as the elementary or secondary educational pro centages of direct program costs, any gen 'Division'). Such Division shall be under the grams' means all Bureau elementary and

eral factors arising from geographic isola direct supervision and control of the Direcsecondary functions, together with any other tion, or numbers of programs administered, tor of the Office. Bureau programs or portions of programs

independent of program size factors used to “(b) FUNCTIONS.—In consultation with the (excluding funds for social services that are compute a base administrative cost percent tribal governing bodies and tribal school appropriated to agencies other than the Bu age in such formula; and

boards, the Director of the Office, through reau and are expended through the Bureau, “(E) identify any other incremental cost the Division, shall conduct studies, surveys, funds for major subcontracts, construction, factors substantially affecting the costs of or other activities to gather demographic inand other major capital expenditures, and required administrative cost functions at formation on Bureau funded schools and unexpended funds carried over from prior any of the tribal elementary or secondary project the amount necessary to provide Inyears) which share common administrative educational programs studied and determine dian students in such schools the educost functions, that are operated directly by whether the factors are of general applica cational program set forth in this part. a tribe or tribal organization under a con bility to other such programs, and (if so) how “(C) ANNUAL REPORTS.—Not later than the tract, grant, or agreement with the Bureau. the factors may effectively be incorporated date that the Assistant Secretary for Indian “(i) STUDIES FOR DETERMINATION OF FAC into such formula.

Affairs makes the annual budget submission, TORS AFFECTING COSTS; BASE RATES LIMITS; “(3) CONSULTATION WITH INSPECTOR GEN for each fiscal year after the date of the enSTANDARD DIRECT COST BASE; REPORT TO ERAL.-In carrying out the studies required actment of the Student Results Act of 1999, CONGRESS.

under this subsection, the Director shall ob the Director of the Office shall submit to the “(1) STUDIES.—Not later than 120 days after tain the input of, and afford an opportunity appropriate committees of Congress (includthe date of the enactment of the Student Re to participate to, the Inspector General of ing the Appropriations committees), all Busults Act of 1999, the Director of the Office of the Department of the Interior.

reau funded schools, and the tribal governing Indian Education Programs shall

“(4) CONSIDERATION OF DELIVERY OF ADMIN bodies of such schools, a report which shall (A) conduct such studies as may be need ISTRATIVE SERVICES.-Determinations de contained to establish an empirical basis for deter scribed in paragraph (2)(C) shall be based on “(1) projections, based upon the informamining relevant factors substantially affect what is practicable at each location studied, tion gathered pursuant to subparagraph (b) ing required administrative costs of tribal given prudent management practice, irre and any other relevant information, of elementary and secondary education pro spective of whether required administrative amounts necessary to provide Indian stugrams, using the formula set forth in sub services were actually or fully delivered at dents in Bureau funded schools the edusection (c); and

these sites, or whether other services were cational program set forth in this part; “(B) conduct a study to determine

delivered instead, during the period of the “(2) a description of the methods and for“(i) a maximum base rate which ensures study.

mulas used to calculate the amounts prothat the amount of the grants provided “(5) REPORT.–Upon completion of the jected pursuant to paragraph (1); and under this section will provide adequate (but studies conducted under paragraph (1), the “(3) such other information as the Director not excessive) funding of the administrative Director shall submit to Congress a report of the Office considers appropriate. costs of the smallest tribal elementary or on the findings of the studies, together with “(d) USE OF REPORTS.—The Director of the secondary educational programs;

determinations based upon such studies that Office and the Assistant Secretary for Indian “(ii) a minimum base rate which ensures would affect the definitions set forth under Affairs shall use the annual report required that the amount of the grants provided subsection (e) that are used in the formula by subsection (c) when preparing their anunder this section will provide adequate (but set forth in subsection (c).

nual budget submissions.

"SEC. 1130. UNIFORM DIRECT FUNDING AND SUP

PORT.

“(a) ESTABLISHMENT OF SYSTEM AND FORWARD FUNDING.–

“(1) IN GENERAL.—The Secretary shall establish, by regulation adopted in accordance with section 1138, a system for the direct funding and support of all Bureau funded schools. Such system shall allot funds in accordance with section 1127. All amounts appropriated for distribution under this section may be made available under paragraph (2).

“(2) TIMING FOR USE OF FUNDS.—(A) For the purposes of affording adequate notice of funding available pursuant to the allotments made under section 1127, amounts appropriated in an appropriations Act for any fiscal year shall become available for obligation by the affected schools on July 1 of the fiscal year in which such amounts are appropriated without further action by the Secretary, and shall remain available for obligation through the succeeding fiscal year.

“(B) The Secretary shall, on the basis of the amount appropriated in accordance with this paragraph

“(i) publish, not later than July 1 of the fiscal year for which the funds are appropriated, allotments to each affected school made under section 1127 of 85 percent of such appropriation; and

“(ii) publish, not later than September 30 of such fiscal year, the allotments to be made under section 1127 of the remaining 15 percent of such appropriation, adjusted to reflect the actual student attendance.

"(3) LIMITATION.-(A) Notwithstanding any other provision of law or regulation, the supervisor of a Bureau funded school may expend an aggregate of not more than $50,000 of the amount allotted the school under section 1127 to acquire materials, supplies, equipment, services, operation, and maintenance for the school without competitive bidding if

"(i) the cost for any single item purchased does not exceed $15,000;

“(ii) the school board approves the procurement;

"(iii) the supervisor certifies that the cost is fair and reasonable;

"(iv) the documents relating to the procurement executed by the supervisor or other school staff cite this paragraph as authority for the procurement; and

“(v) the transaction is documented in a journal maintained at the school clearly identifying when the transaction occurred, what was acquired and from whom, the price paid, the quantities acquired, and any other information the supervisor or school board considers relevant.

"(B) Not later than 6 months after the date of the enactment of the Student Results Act of 1999, the Secretary shall cause to be sent to each supervisor of a Bureau operated program and school board chairperson, the education line officer or officers of each agency and area, and the Bureau Division in charge of procurement, at both the local and national levels, notice of this paragraph.

"(C) The Director shall be responsible for determining the application of this paragraph, including the authorization of specific individuals to carry out this paragraph, and shall be responsible for the provision of guidelines on the use of this paragraph and adequate training on such guidelines.

“(4) EFFECT OF SEQUESTRATION ORDER.-If a sequestration order issued under the Balanced Budget and Emergency Deficit Control Act of 1985 reduces the amount of funds available for allotment under section 1127 for any fiscal year by more 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 Secretary, notwithstanding any other law, may use

“(i) funds appropriated for the operation of any Bureau 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.—(A) In the case of all Bureau operated schools, allotted funds shall be expended on the basis of local financial plans which ensure meeting the accreditation requirements or standards for the school established pursuant to section 1121 and which shall be prepared by the local school supervisor in active consultation with the local school board for each school. The local school board for each school shall have the authority to ratify, reject, or amend such financial plan, and expenditures thereunder, and, on its own determination 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.

"(B) The supervisor

“(i) shall put into effect the decisions of the school board;

"(ii) shall provide the appropriate local union representative of the education employees with copies of proposed draft financial plans and all amendments or modifications thereto, at the same time such copies are submitted to the local school board; and

“(iii) 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. 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. After reviewing such written appeal and response, the appropriate education line officer may, for good cause, overturn the action of the local school board. The appropriate education 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 action.

"(c) USE OF SELF-DETERMINATION GRANTS FUNDS.-Funds for self-determination grants under section 103(a)(2) of the Indian Self-Determination and Education Assistance Act shall not be used for providing technical assistance and training in the field of education by the Bureau unless such services are provided in accordance with a plan, agreed to by the tribe or tribes affected and the Bureau, under which control of education programs is intended to be transferred to such tribe or tribes within a specific period of time negotiated under such agreement. The Secretary may approve applications for funding tribal divisions of education and development of tribal codes of education from funds appropriated pursuant to section 104(a) of such Act.

“(d) TECHNICAL ASSISTANCE AND TRAINING.-In the exercise of its authority under this section, a local school board may request technical assistance and training from the Secretary, and the Secretary shall, to the greatest extent possible, provide such

services, and make appropriate provisions in the budget of the Office for such services.

“(e) SUMMER PROGRAM OF ACADEMIC AND SUPPORT SERVICES.

“(1) 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 provision for a summer program of academic and support services for students of the school. Any such program may include activities related to the prevention of alcohol and substance abuse. The Assistant Secretary for Indian Affairs shall provide for the utilization of any such school facility during any summer in which such utilization 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 provided 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 provide technical assistance and coordination for any program described in paragraph (1) and shall, to the extent possible, encourage the coordination 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) IN GENERAL.-From funds allotted to a Bureau school under section 1127, the Secretary shall, if specifically requested by the tribal governing body (as defined in section 1141), implement any cooperative agreement entered into between the tribe, the Bureau school board, and the local public school district which meets the requirements of paragraph (2) and involves the school. The tribe, the Bureau school board, and the local public school district shall determine the terms of the agreement. Such agreement may encompass coordination of all or any part of the following:

"(A) Academic program and curriculum, unless the Bureau school is currently accredited by a State or regional accrediting entity and would not continue to be so accredited.

“(B) Support services, including procurement and facilities maintenance.

"(C) Transportation.

“(2) EQUAL BENEFIT AND BURDEN. Each agreement entered into pursuant to the authority provided in paragraph (1) shall confer a benefit upon the Bureau school commensurate with the burden assumed, though this requirement shall not be construed so as to require equal expenditures or an exchange of similar services.

“(g) PRODUCT OR RESULT OF STUDENT PROJECTS.-Notwithstanding any other provision of law, where 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) NOT CONSIDERED FEDERAL FUNDS FOR MATCHING REQUIREMENTS.-Notwithstanding any other provision of law, funds received by a Bureau funded school under this title shall not be considered Federal funds for the purposes of meeting a matching funds requirement for any Federal program. "SEC. 1131. POLICY FOR INDIAN CONTROL OF IN

DIAN EDUCATION. “(a) FACILITATION OF INDIAN CONTROL.-It shall be the policy of the Secretary and the Bureau, in carrying out the functions of the Bureau, to facilitate tribal control of Indian affairs in all matters relating to education.

“(b) CONSULTATION WITH TRIBES.

basis, any formal education or degree quali is found to have been false, such individual, “(1) IN GENERAL.-All actions under this fications established by regulation pursuant at the Secretary's discretion, may be disAct shall be done with active consultation to subsection (b)(2), in order for a tribal ciplined or discharged. If the individual has with tribes.

member to be hired in an education position applied at the national level for an education “(2) REQUIREMENTS.—The consultation re to teach courses on tribal culture and lan position in the Bureau, the appointment of quired under paragraph (1) means a process guage and that subject to subsection (e)(2), a such individual at the local level shall be involving the open discussion and joint de determination by a school board that such a conditional for a period of 90 days, during liberation of all options with respect to po person be hired shall be instituted super which period the Secretary may appoint a tential issues or changes between the Bureau visor; and

more qualified individual (as determined by and all interested parties. During such dis “(C) that it shall not be a prerequisite to

the Secretary) from the list maintained at cussions and joint deliberations, interested the employment of an individual in an edu

the national level pursuant to subsection parties (including tribes and school officials) cation position at the local level that such

(C)(1)(A)(ii) to the position to which such inshall be given an opportunity to present

individual's name appear on the national list dividual was appointed. issues including proposals regarding changes maintained pursuant to subparagraph (A)(ii)

“(3) STATUTORY CONSTRUCTION.—Except as in current practices or programs which will or that such individual has applied at the na

expressly provided, nothing in this section be considered for future action by the Bu tional level for an education position.

shall be construed as conferring upon local reau. All interested parties shall be given an “(2) EXCEPTION FOR CERTAIN TEMPORARY

school boards authority over, or control of, opportunity to participate and discuss the EMPLOYMENT.—The Secretary may authorize

educators at Bureau funded schools or the options presented or to present alternatives, the temporary employment in an education

authority to issue management decisions. with the views and concerns of the interested position of an individual who has not met parties given effect unless the Secretary de the certification standards established pur

“(e) DISCHARGE AND CONDITIONS OF EMPLOYtermines, from information available from suant to regulations, if the Secretary deter MENT OF EDUCATORS.or presented by the interested parties during

mines that failure to do so would result in “(1) REGULATIONS.-In prescribing regulaone or more of the discussions and deliberathat position remaining vacant.

tions to govern the discharge and conditions

“(d) HIRING OF EDUCATORS.tions, that there is a substantial reason for

of employment of educators, the Secretary another course of action. The Secretary shall

“(1) REQUIREMENTS.-In prescribing regula shall requiresubmit to any Member of Congress, within 18

tions to govern the appointment of edu "(A) that procedures be established for the days of the receipt of a written request by cators, the Secretary shall require

rapid and equitable resolution of grievances such Member, a written explanation of any

“(A)(i) that educators employed in a Bu of educators;

reau operated school (other than the superdecision made by the Secretary which is not

“(B) that no educator may be discharged visor of the school) shall be hired by the suconsistent with the views of the interested

without notice of the reasons therefore and pervisor of the school. In cases where there parties.

opportunity for a hearing under procedures are no qualified applicants available, such “SEC. 1132. INDIAN EDUCATION PERSONNEL.

that comport with the requirements of due supervisor may consult the national list “(a) IN GENERAL.-Chapter 51, subchapter

process; and maintained pursuant to subsection

"(C) that educators employed in Bureau III of chapter 53, and chapter 63 of title 5,

(c)(1)(A)(ii); United States Code, relating to classifica

schools be notified 30 days prior to the end of

"(ii) each school supervisor shall be hired tion, pay and leave, respectively, and the

the school year whether their employment by the education line officer of the agency

contract will be renewed for the following sections of such title relating to the appointoffice of the Bureau in which the school is lo

year. ment, promotion, hours of work, and recated;

“(2) PROCEDURES FOR DISCHARGE.—The sumoval of civil service employees, shall not

“(iii) educators employed in an agency of

pervisor of a Bureau school may discharge apply to educators or to education positions fice of the Bureau shall be hired by the su(as defined in subsection (p)).

(subject to procedures established under perintendent for education of the agency of“(b) REGULATIONS.—Not later than 60 days

paragraph (1)(B)) for cause (as determined fice; and after the date of the enactment of the Stu

under regulations prescribed by the Sec“(iv) each education line officer and edu

retary) any dent Results Act of 1999, the Secretary shall

educator employed in such cators employed in the Office of the Director prescribe regulations to carry out this sec

school. Upon giving notice of proposed disof Indian Education Programs shall be hired tion. Such regulations shall include

charge to an educator, the supervisor inby the Director; "(1) the establishment of education posi

volved shall immediately notify the local

“(B) that before an individual is employed tions;

school board for the school of such action. A in an education position in a school by the “(2) the establishment of qualifications for

determination by the local school board that supervisor of a school (or with respect to the

such educator shall not be discharged shall educators and education personnel;

position of supervisor, by the appropriate "(3) the fixing of basic compensation for

be followed by the supervisor. The supervisor agency education line officer), the local educators and education positions;

shall have the right to appeal such action to school board for the school shall be con

the education line officer of the appropriate “(4) the appointment of educators;

sulted. A determination by such school board “(5) the discharge of educators; that such individual should or should not be

agency office of the Bureau. Upon such an “(6) the entitlement of educators to com

appeal, the agency education line officer so employed shall be instituted by the superpensation; visor (or with respect to the position of su

may, for good cause and in writing to the (7) the payment of compensation to edu pervisor, by the agency superintendent for

local school board, overturn the determina

tion of the local school board with respect to cators;

education); "(8) the conditions of employment of edu “(C) that before an individual may be em

the employment of such individual.

“(3) RECOMMENDATIONS OF SCHOOL BOARDS cators;

ployed in an education position at the agen"(9) the leave system for educators; cy level, the appropriate agency school board

FOR DISCHARGE.-Each local school board for “(10) the annual leave and sick leave for shall be consulted, and that a determination

a Bureau school shall have the righteducators; and by such school board that such individual

“(A) to recommend to the supervisor of "(11) such matters as may be appropriate. should or should not be employed shall be in

such school that an educator employed in “(C) QUALIFICATIONS OF EDUCATORS.stituted by the agency superintendent for

the school be discharged; and “(1) REQUIREMENTS.-In prescribing regula education; and

“(B) to recommend to the education line tions to govern the qualifications of edu “(D) that before an individual may be em

officer of the appropriate agency office of the cators, the Secretary shall requireployed in an education position in the Office

Bureau and to the Director of the Office, "(A)(i) that lists of qualified and inter of the Director (other than the position of

that the supervisor of the school be disviewed applicants for education positions be

charged. Director), the national school boards repmaintained in each agency and area office of resenting all Bureau schools shall be con “(f) APPLICABILITY OF INDIAN PREFERENCE the Bureau from among individuals who have sulted.

LAWS.— applied at the agency or area level for an “(2) INFORMATION REGARDING APPLICATION “(1) IN GENERAL.-Notwithstanding any education position or who have applied at AT NATIONAL LEVEL.–Any individual who ap provision of the Indian preference laws, such the national level and have indicated in such plies at the local level for an education posi laws shall not apply in the case of any perapplication an interest in working in certain tion shall state on such individual's applica sonnel action under this section respecting areas or agencies; and

tion whether or not such individual has ap an applicant or employee not entitled to In"(ii) that a list of qualified and inter plied at the national level for an education dian preference if each tribal organization viewed applicants for education positions be position in the Bureau. If such individual is concerned grants a written waiver of the apmaintained in the Office from among indi employed at the local level, such individual's plication of such laws with respect to such viduals who have applied at the national name shall be immediately forwarded to the personnel action and states that such waiver level for an education position and who have Secretary, who shall, as soon as practicable is necessary. This paragraph shall not relieve expressed interest in working in an edu but in no event in more than 30 days, ascer the Bureau's responsibility to issue timely cation position anywhere in the United tain the accuracy of the statement made by and adequate announcements and advertiseStates;

such individual pursuant to the first sen ments concerning any such personnel action "(B) that a local school board shall have tence of this paragraph. Notwithstanding if such action is intended to fill a vacancy the authority to waive on a case-by-case subsection (e), if the individual's statement (no matter how such vacancy is created).

“(2) TRIBAL ORGANIZATION DEFINED.-For purposes of this subsection, the term 'tribal organization' means

“(A) the recognized governing body of any Indian tribe, band, nation, pueblo, or other organized community, including a Native village (as defined in section 3(c) of the Alaska Native Claims Settlement Act); or

“(B) in connection with any personnel action referred to in this subsection, any local school board as defined in section 1141 which has been delegated by such governing body the authority to grant a waiver under this subsection with respect to personnel action.

“(3) INDIAN PREFERENCE LAW DEFINED.—The term 'Indian preference laws' means section 12 of the Act of June 18, 1934 or any other provision of law granting a preference to Indians in promotions and other personnel actions. Such term shall not include section 7(b) of the Indian Self-Determination and Education Assistance Act.

"(g) COMPENSATION OR ANNUAL SALARY.

“(1) IN GENERAL.—(A) Except as otherwise provided in this section, the Secretary shall fix the basic compensation for educators and education positions 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 on the basis of the Federal Wage System schedule in effect for the locality, and for the comparable positions, the rates of compensation in effect for the senior executive service.

“(B) The Secretary shall establish the rate of basic compensation, or annual salary rates, for the positions of teachers and counselors (including dormitory counselors and home-living counselors) at the rates of basic compensation applicable (on the date of the enactment of the Student Results Act of 1999 and thereafter) to comparable positions in the overseas schools under the Defense Department Overseas Teachers Pay Act. The Secretary shall allow the local school boards authority to implement only the aspects of the Defense Department Overseas Teacher pay provisions that are considered essential for recruitment and retention. Implementation of such provisions shall not be construed to require the implementation of the Act in its entirety.

"(C)(i) Beginning with the fiscal year following the date of the enactment of the Student Results Act of 1999, each school board may set the rate of compensation or annual salary rate for teachers and counselors (including academic counselors) who are new hires at the school and who have not worked at the school on the date of implementation of this provision, at rates consistent with the rates paid for individuals in the same positions, with the same tenure and training, in any other school within whose boundaries the Bureau school lies. In instances where the adoption of such rates cause a reduction in the payment of compensation from that which was in effect for the fiscal year following the date of the enactment of the Student Results Act of 1999, the new rate may be applied to the compensation of employees of the school who worked at the school on of the date of the enactment of that Act by applying those rates to each contract renewal such that the reduction takes effect in three equal installments. Where adoption of such rates lead to an increase in the payment of compensation from that which was in effect for the fiscal year following the date of the enactment of the Student Results Act of 1999, the school board may make such rates applicable at the next contract renewal such that either

“(I) the increase occurs in its entirety; or

“(II) the increase is applied in three equal installments.

"(ii) The establishment of rates of basic compensation and annual salary rates under

subparagraphs (B) and (C) shall not preclude the use of regulations and procedures used by the Bureau prior to April 28, 1988, in making determinations regarding promotions and advancements through levels of pay that are based on the merit, education, experience, or tenure of the educator.

“(D) The establishment of rates of basic compensation and annual salary rates under subparagraphs (B) and (C) shall not affect the continued employment or compensation of an educator who was employed in an education position on October 31, 1979, and who did not make an election under subsection (p) is in effect on January 1, 1990.

“(2) POST-DIFFERENTIAL RATES.-(A) The Secretary may pay a post-differential rate not to exceed 25 percent of the rate of basic compensation, on the basis of conditions of environment or work which warrant additional pay as a recruitment and retention incentive.

"(B)(i) Upon 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-differentials under subparagraph (A) unless the Secretary determines for clear and convincing reasons (and advises the board in writing of those reasons) that certain of the requested post-differentials should be disapproved or decreased because there is no disparity of compensation for the involved employees or positions in the Bureau school, as compared with the nearest public school, that is either

“(I) at least 5 percent; or

“(II) less than 5 percent and affects the recruitment or retention of employees at the school.

“(ii) A request under clause (i) shall be deemed granted 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 modification, or disapproved by the Secretary.

"(iii) The Secretary or the supervisor of a Bureau school may discontinue or decrease a post-differential authorized under this subparagraph at the beginning of a school year if

“(I) the local school board requests that such differential be discontinued or decreased; or

"(II) the Secretary or the supervisor 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.

“(iv) On or before February 1 of each year, the Secretary shall submit to Congress a report describing the requests and grants of authority under this subparagraph during the previous year and listing the positions contracted under those grants of authority.

"(h) LIQUIDATION OF REMAINING LEAVE UPON TERMINATION.–Upon termination of employment with the Bureau, any annual leave remaining to the credit of an individual within the purview of 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 prescribed pursuant to subsection (b)(10) of this section shall not be so liquidated.

“(i) TRANSFER OF REMAINING SICK LEAVE UPON TRANSFER, PROMOTION, 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 prescribed pursuant to subsection (b)(10) shall be transferred to such person's credit in the employing agency on an ad

justed basis in accordance with regulations which shall be prescribed by the Office of Personnel Management.

"(j) INELIGIBILITY FOR EMPLOYMENT OF VOLUNTARILY TERMINATED 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 (1)(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.

(1) VOLUNTARY SERVICES.-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. Nothing in this title shall be construed to require Federal employees to work without compensation or to allow the use of volunteer services to displace or replace Federal employees. An individual providing volunteer services under this section is a Federal employee only for purposes of chapter 81 of title 5, United States Code, and chapter 171 of title 28, United States Code.

“(m) PRORATION OF PAY.

“(1) ELECTION OF EMPLOYEE.-Notwithstanding any other provision 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. Each educator employed for the academic school year shall annually elect to be paid on a 12-month basis or for those months while school is in session. No educator shall suffer a loss of pay or benefits, including benefits under unemployment or other Federal or federally assisted programs, 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) DEFINITIONS.—For purposes of this subsection, the terms “educator' and 'education position' have the meanings contained in paragraphs (1) and (2) of subsection (0). This subsection applies to those individuals employed under the provisions of section 1132 of this title or title 5, United States Code.

"(n) EXTRACURRICULAR ACTIVITIES.

“(1) STIPEND.-Notwithstanding any other provision of law, the Secretary may provide, for each Bureau area, a stipend in lieu of overtime premium pay or compensatory time off. Any employee of the Bureau who performs additional activities to provide services 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. Such stipend shall be paid as a supplement to the employee's

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section, the appropriate provisions of title 5, “SEC. 1135. RECRUITMENT OF INDIAN EDU "SEC. 1138A. REGIONAL MEETINGS AND NEGOUnited States Code, shall apply.

CATORS.

TIATED RULEMAKING. “(3) APPLICABILITY OF SUBSECTION.—This "The Secretary shall institute a policy for

“(a) MEETINGS.subsection applies to all Bureau employees, the recruitment of qualified Indian edu “(1) IN GENERAL.—The Secretary shall obwhether employed under section 1132 of this cators and a detailed plan to promote em

tain tribal involvement in the development title or title 5, United States Code. ployees from within the Bureau. Such plan

of proposed regulations under this part and “(0) DEFINITIONS. For the purpose of this shall include opportunities for acquiring

the Tribally Controlled Schools Act of 1988. sectionwork experience prior to actual work assign

The Secretary shall obtain the advice of and “(1) EDUCATION POSITION.—The term edu ment.

recommendations from representatives of Incation position' means a position in the Bu

dian tribes with Bureau-funded schools on "SEC. 1136. BIENNIAL REPORT; AUDITS. reau the duties and responsibilities of

their reservations, Indian tribes whose chil

“(a) BIENNIAL REPORTS.—The Secretary which

dren attend Bureau funded off-reservation shall submit to each appropriate committee boarding schools, school boards, administra“(A) are performed on a school-year basis

of Congress, all Bureau funded schools, and principally in a Bureau school and involve

tors or employees of Bureau-funded schools, the tribal governing bodies of such schools, a “(i) classroom or other instruction or the

and parents and teachers of students endetailed biennial report on the state of edusupervision or direction of classroom or

rolled in Bureau-funded schools. cation within the Bureau and any problems other instruction;

“(2) ISSUES.- The Secretary shall provide encountered in Indian education during the for a comprehensive discussion and exchange "(ii) any activity (other than teaching)

2-year period covered by the report. Such rewhich requires academic credits in edu

of information concerning the implementaport shall contain suggestions for the im tion of this part and the Tribally Controlled cational theory and practice equal to the provement of the Bureau educational system

Schools Act of 1988 through such mechaacademic credits in educational theory and

and for increasing tribal or local Indian con nisms as regional meetings and electronic practice required for a bachelor's degree in

trol of such system. Such report shall also exchanges of information. The Secretary education from an accredited institution of

include the current status of tribally con shall take into account the information rehigher education;

trolled community colleges. The annual ceived through such mechanisms in the de“(iii) any activity in or related to the field

budget submission for the Bureau's eduof education notwithstanding that academic

velopment of proposed regulations and shall cation programs shall include

publish a summary of such information in credits in educational theory and practice

*(1) information on the funds provided to the Federal Register together with such proare not a formal requirement for the conduct previously private schools under section 208

posed regulations. of such activity; or

of the Indian Self-Determination and Edu “(b) DRAFT REGULATIONS.— "(iv) support services at, or associated

cation Assistance Act, and recommendations “(1) IN GENERAL.–After obtaining the adwith, the site of the school; or

with respect to the future use of such funds; vice and recommendations described in sub“(B) are performed at the agency level of

“(2) the needs and costs of operations and section (a)(1) and before publishing proposed the Bureau and involve the implementation

maintenance of tribally controlled commu regulations in the Federal Register, the Secof education-related programs other than the

nity colleges eligible for assistance under retary shall prepare draft regulations impleposition for agency superintendent for edu

the Tribally Controlled Community College menting this part and the Tribally Concation.

Assistance Act of 1978 and recommendations trolled Schools Act of 1988 and shall submit (2) EDUCATOR. --The term "educator

with respect to meeting such needs and such regulations to a negotiated rulemaking means an individual whose services are recosts; and

process. Participants in the negotiations quired, or who is employed, in an education

"(3) the plans required by sections 1121 (g), process shall be chosen by the Secretary position. 1122(c), and 1125(b).

from individuals nominated by the entities “(p) COVERED INDIVIDUALS; ELECTION.—This

“(b) FINANCIAL AND COMPLIANCE AUDITS. described in subsection (a)(1). To the maxsection shall apply with respect to any eduThe Inspector General of the Department of

imum extent possible, the Secretary shall cator hired after November 1, 1979 (and to the Interior shall establish a system to en

ensure that the tribal representative memany educator who elected for coverage under sure that financial and compliance audits

bership chosen pursuant to the preceding that provision after November 1, 1979) and to are conducted of each Bureau operated

sentence reflects the proportionate share of the position in which such individual is emschool at least once in every 3 years. Audits

students from tribes served by the Bureauployed. The enactment of this section shall of Bureau schools shall be based upon the ex

funded school system. The negotiation procnot affect the continued employment of an tent to which such school has complied with

ess shall be conducted in a timely manner in individual employed on October 31, 1979 in an its local financial plan under section 1130.

order that the final regulations may issued education position, or such person's right to

by the Secretary no later than 18 months "SEC. 1137. RIGHTS OF INDIAN STUDENTS. receive the compensation attached to such

after the enactment of this section. position.

“The Secretary shall prescribe such rules

“(2) NOTIFICATION TO CONGRESS.-If draft “SEC. 1133. COMPUTERIZED MANAGEMENT INand regulations as are necessary to ensure

regulations implementing this part and the FORMATION SYSTEM. the constitutional and civil rights of Indian

Tribally Controlled Schools Act of 1988 are “(a) ESTABLISHMENT OF SYSTEM.-Not later students attending Bureau funded schools,

not issued in final form by the deadline prothan July 1, 2001, the Secretary shall estabincluding such students' right to privacy

vided in paragraph (1), the Secretary shall lish within the Office, a computerized manunder the laws of the United States, such

notify the appropriate committees of Conagement information system, which shall students' right to freedom of religion and ex

gress of which draft regulations were not provide processing and information to the pression, and such students' right to due

issued in final form by the deadline and the Office. The information provided shall inprocess in connection with disciplinary ac

reason such final regulations were not clude information regardingtions, suspensions, and expulsions.

issued. “(1) student enrollment; “SEC. 1138. REGULATIONS.

“(3) EXPANSION NEGOTIATED RULE"(2) curriculum;

“(a) IN GENERAL.—The Secretary is author MAKING.-All regulations pertaining to this "(3) staffing;

ized to issue only such regulations as are part and the Tribally Controlled Schools Act (4) facilities;

necessary to ensure compliance with the spe of 1988 that are promulgated after the date of “(5) community demographics;

cific provision of this Act. The Secretary the enactment of this subsection shall be “(6) student assessment information;

shall publish proposed regulations in the subject to a negotiated rulemaking (includ(7) information on the administrative and Federal Register, shall provide a period of ing the selection of the regulations to be neprogram costs attributable to each Bureau not less than 90 days for public comment gotiated), unless the Secretary determines program, divided into discreet elements;

thereon, and shall place in parentheses after that applying such a requirement with re“(8) relevant reports;

each regulatory section the citation to any spect to given regulations is impracticable, “(9) personnel records;

statutory provision providing authority to unnecessary, or contrary to the public inter“(10) finance and payroll; and promulgate such regulatory provision.

est (within the meaning of section “(11) such other items as the Secretary “(b) MISCELLANEOUS.

553(b)(3)(B) of title 5), and publishes the basis deems appropriate.

“(1) CONSTRUCTION.—The provisions of this for such determination in the Federal Reg“(b) IMPLEMENTATION OF SYSTEM.—Not Act shall supersede any conflicting provi ister at the same time as the proposed regulater than July 1, 2002, the Secretary shall sions of law (including any conflicting regu lations in question are first published. All complete implementation of such a system lations) in effect on the day before the date published proposed regulations shall conform at each field office and Bureau funded of the enactment of this Act and the Sec to agreements resulting from such negoschool.

retary is authorized to repeal any regulation tiated rulemaking unless the Secretary re“SEC. 1134. UNIFORM EDUCATION PROCEDURES inconsistent with the provisions of this Act. opens the negotiated rulemaking process or AND PRACTICES.

“(2) LEGAL AUTHORITY TO BE STATED.-Reg provides a written explanation to the par“The Secretary shall cause the various di ulations issued to implement this Act shall ticipants in that process why the Secretary visions of the Bureau to formulate uniform contain, immediately following each sub has decided to depart from such agreements. procedures and practices with respect to stantive provision of such regulations, cita Such negotiated rulemaking shall be consuch concerns of those divisions as relate to tions to the particular section or sections of ducted in accordance with the provisions of education, and shall report such practices statutory law or other legal authority upon subsection (a), and the Secretary shall enand procedures to the Congress. which provision is based.

sure that a clear and reliable record of agree

OF

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