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(f) TERMINATION.-Congress repudiates and rejects House Concurrent Resolution 108 of the 83d Congress and any policy of unilateral termination of Federal relations with any Indian nation. SEC. 5203. [25 U.S.C. 2502] GRANTS AUTHORIZED.

(a) IN GENERAL.

(1) ELIGIBILITY.-The Secretary shall provide grants to Indian tribes, and tribal organizations that—

(A) operate contract schools under title XI of the Education Amendments of 1978 and notify the Secretary of their election to operate the schools with assistance under this part rather than continuing the schools as contract schools;

(B) operate other tribally controlled schools eligible for assistance under this part and submit applications (which are approved by their tribal governing bodies) to the Secretary for such grants; or

(C) elect to assume operation of Bureau-funded schools with the assistance under this part and submit applications (which are approved by their tribal governing bodies) to the Secretary for such grants.

(2) DEPOSIT OF FUNDS.-Grants provided under this part shall be deposited into the general operating fund of the tribally controlled school with respect to which the grant is made. (3) USE OF FUNDS.

(A) IN GENERAL.-Except as otherwise provided in this paragraph, grants provided under this part shall be used to defray, at the discretion of the school board of the tribally controlled school with respect to which the grant is provided, any expenditures for education related activities for which any funds that compose the grant may be used under the laws described in section 5205(a), including expenditures for

(i) school operations, academic, educational, residential, guidance and counseling, and administrative purposes; and

(ii) support services for the school, including transportation.

(B) EXCEPTION.-Grants provided under this part may, at the discretion of the school board of the tribally controlled school with respect to which such grant is provided, be used to defray operations and maintenance expenditures for the school if any funds for the operation and maintenance of the school are allocated to the school under the provisions of any of the laws described in section 5205(a).

(b) LIMITATIONS.

(1) ONE GRANT PER TRIBE OR ORGANIZATION PER FISCAL YEAR. Not more than one grant may be provided under this part with respect to any Indian tribe or tribal organization for any fiscal year.

(2) NONSECTARIAN USE.-Funds provided under any grant made under this part may not be used in connection with religious worship or sectarian instruction.

(3) ADMINISTRATIVE COSTS LIMITATION.-Funds provided under any grant under this part may not be expended for administrative costs (as defined in section 1128(h)(1) of the Education Amendments of 1978) in excess of the amount generated for such costs under section 1128 of such Act.

(c) LIMITATION ON TRANSFER OF FUNDS AMONG SCHOOL SITES.

(1) IN GENERAL.-In the case of a grantee that operates schools at more than one school site, the grantee may expend at any school site operated by the grantee not more than the lesser of

(A) 10 percent of the funds allocated for another school site under section 1128 of the Education Amendments of 1978; or

site.

(B) $400,000 of the funds allocated for another school

(2) DEFINITION OF SCHOOL SITE. For purposes of this subsection, the term "school site" means the physical location and the facilities of an elementary or secondary educational or residential program operated by, or under contract or grant with, the Bureau for which a discreet student count is identified under the funding formula established under section 1127 of the Education Amendments of 1978.

(d) NO REQUIREMENT TO ACCEPT GRANTS.-Nothing in this part may be construed

(1) to require a tribe or tribal organization to apply for or accept; or

(2) to allow any person to coerce any tribe or tribal organization to apply for, or accept,

a grant under this part to plan, conduct, and administer all of, or any portion of, any Bureau program. Such applications and the timing of such applications shall be strictly voluntary. Nothing in this part may be construed as allowing or requiring any grant with any entity other than the entity to which the grant is provided.

(e) NO EFFECT ON FEDERAL RESPONSIBILITY.-Grants provided under this part shall not terminate, modify, suspend, or reduce the responsibility of the Federal Government to provide a program. (f) RETROCESSION.

(1) IN GENERAL.-Whenever a tribal governing body requests retrocession of any program for which assistance is provided under this part, such retrocession shall become effective upon a date specified by the Secretary that is not later than 120 days after the date on which the tribal governing body requests the retrocession. A later date may be specified if mutually agreed upon by the Secretary and the tribal governing body. If such a program is retroceded, the Secretary shall provide to any Indian tribe served by such program at least the same quantity and quality of services that would have been provided under such program at the level of funding provided under this part prior to the retrocession.

(2) STATUS AFTER RETROCESSION.-The tribe requesting retrocession shall specify whether the retrocession is to status as a Bureau-operated school or as a school operated under contract under the Indian Self-Determination and Education Assistance Act.

(3) TRANSFER OF EQUIPMENT AND MATERIALS.-Except as otherwise determined by the Secretary, the tribe or tribal organization operating the program to be retroceded must transfer to the Secretary (or to the tribe or tribal organization which will operate the program as a contract school) the existing equipment and materials which were acquired

(A) with assistance under this part; or

(B) upon assumption of operation of the program under this part, if the school was a Bureau-funded school under title XI of the Education Amendments of 1978 before receiving assistance under this part.

(g) PROHIBITION OF TERMINATION FOR ADMINISTRATIVE CONVENIENCE. Grants provided under this part may not be terminated, modified, suspended, or reduced solely for the convenience of the administering agency.

SEC. 5204. [25 U.S.C. 2503] COMPOSITION OF GRANTS.

(a) IN GENERAL.-The grant provided under this part to an Indian tribe or tribal organization for any fiscal year shall consist of

(1) the total amount of funds allocated for such fiscal year under sections 1127 and 1128 of the Education Amendments of 1978 with respect to the tribally controlled schools eligible for assistance under this part which are operated by such Indian tribe or tribal organization, including, but not limited to, funds provided under such sections, or under any other provision of law, for transportation costs;

(2) to the extent requested by such Indian tribe or tribal organization, the total amount of funds provided from operations and maintenance accounts and, notwithstanding section 105 of the Indian Self-Determination Act, or any other provision of law, other facilities accounts for such schools for such fiscal year (including but not limited to those referenced under section 1126(d) of the Education Amendments of 1978 or any other law); and

(3) the total amount of funds that are allocated to such schools for such fiscal year under

(A) title I of the Elementary and Secondary Education Act of 1965;

(B) the Individuals with Disabilities Education Act; and

(C) any other Federal education law, that are allocated to such schools for such fiscal year.

(b) SPECIAL RULES.—

(1) IN GENERAL.

(A) APPLICABILITY OF CERTAIN LAWS.-Funds allocated to a tribally controlled school by reason of paragraph (1) or (2) of subsection (a) shall be subject to the provisions of this part and shall not be subject to any additional restriction, priority, or limitation that is imposed by the Bureau with respect to funds provided under

(i) title I of the Elementary and Secondary Education Act of 1965;

(ii) the Individuals with Disabilities Education Act; or

(iii) any Federal education law other than title XI of the Education Amendments of 1978.

(B) APPLICABILITY OF BUREAU PROVISIONS.-Indian tribes and tribal organizations to which grants are provided under this part, and tribally controlled schools for which such grants are provided, shall not be subject to any requirements, obligations, restrictions, or limitations imposed by the Bureau that would otherwise apply solely by reason of the receipt of funds provided under any law referred to in clause (i), (ii), or (iii) of subparagraph (A).

(2) SCHOOLS CONSIDERED CONTRACT SCHOOLS.-Tribally controlled schools for which grants are provided under this part shall be treated as contract schools for the purposes of allocation of funds under sections 1126(e), 1127, and 1128 of the Education Amendments of 1978.

(3) SCHOOLS CONSIDERED BUREAU SCHOOLS.-Tribally controlled schools for which grants are provided under this chapter shall be treated as Bureau schools for the purposes of allocation of funds provided under

(A) title I of the Elementary and Secondary Education Act of 1965;

(B) the Individuals with Disabilities Education Act; and

(C) any other Federal education law, that are distributed through the Bureau.

(4) ACCOUNTS; USE OF CERTAIN FUNDS.—

section

(A) SEPARATE ACCOUNT.-
(i) IN GENERAL.-Notwithstanding
5204(a)(2), with respect to funds from facilities im-
provement and repair, alteration and renovation
(major or minor), health and safety, or new construc-
tion accounts included in the grant provided under
section 5204(a), the grant recipient shall maintain a
separate account for such funds.

(ii) SUBMISSION OF ACCOUNTING.-At the end of the period designated for the work covered by the funds received, the grant recipient shall submit to the Secretary a separate accounting of the work done and the funds expended.

(iii) USE OF FUNDS.-Funds received from those accounts may only be used for the purpose for which the funds were appropriated and for the work encompassed by the application or submission for which the funds were received.

(iv) COMPLETION OF PROJECT.-Upon completion of a project for which a separate account is established under this paragraph, the portion of the grant related to such project may be closed out upon agreement by the grantee and the Secretary. (B) REQUIREMENTS FOR PROJECTS.

(i) REGULATORY REQUIREMENTS.-With respect to a grant to a tribally controlled school under this part for new construction or facilities improvements and repair in excess of $100,000, such grant shall be subject to the Administrative and Audit Requirements and

Cost Principles for Assistance Programs contained in part 12 of title 43, Code of Federal Regulations.

(ii) EXCEPTION.-Notwithstanding clause (i), grants described in such clause shall not be subject to section 12.61 of title 43, Code of Federal Regulations. The Secretary and the grantee shall negotiate and determine a schedule of payments for the work to be performed.

(iii) APPLICATIONS.-In considering applications for a grant described in clause (i), the Secretary shall consider whether the Indian tribe or tribal organization involved would be deficient in ensuring that the construction projects under the proposed grant conform to applicable building standards and codes and Federal, tribal, or State health and safety standards as required under section 1124 of the Education Amendments of 1978 (25 U.S.C. 2005(a)) with respect to organizational and financial management capabilities.

(iv) DISPUTES.-Any disputes between the Secretary and any grantee concerning a grant described in clause (i) shall be subject to the dispute provisions contained in section 5209(e).

(C) NEW CONSTRUCTION.-Notwithstanding subparagraph (A), a school receiving a grant under this part for facilities improvement and repair may use such grant funds for new construction if the tribal governing body or tribal organization that submits the application for the grant provides funding for the new construction equal to at least 25 percent of the total cost of such new construction.

(D) PERIOD.-In a case in which the appropriations measure under which the funds described in subparagraph (A) are made available or the application submitted for the funds does not stipulate a period for the work covered by the funds, the Secretary and the grant recipient shall consult and determine such a period prior to the transfer of the funds. A period so determined may be extended upon mutual agreement of the Secretary and the grant recipi

ent.

(5) ENFORCEMENT OF REQUEST TO INCLUDE FUNDS.—

(A) IN GENERAL.-If the Secretary fails to carry out a request filed by an Indian tribe or tribal organization to include in such tribe or organization's grant under this part the funds described in subsection (a)(2) within 180 days after the filing of the request, the Secretary shall

(i) be deemed to have approved such request; and (ii) immediately upon the expiration of such 180day period amend the grant accordingly.

(B) RIGHTS.-A tribe or organization described in subparagraph (A) may enforce its rights under subsection (a)(2) and this paragraph, including rights relating to any denial or failure to act on such tribe's or organization's request, pursuant to the dispute authority described in section 5209(e).

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