Education Contracts Under Johnson-O'Malley Act

Published date27 June 2019
Citation84 FR 30647
Record Number2019-13632
SectionProposed rules
CourtIndian Affairs Bureau
Federal Register, Volume 84 Issue 124 (Thursday, June 27, 2019)
[Federal Register Volume 84, Number 124 (Thursday, June 27, 2019)]
                [Proposed Rules]
                [Pages 30647-30666]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-13632]
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                DEPARTMENT OF THE INTERIOR
                Bureau of Indian Affairs
                25 CFR Part 273
                [190D0102DR/DS5A300000/DR.5A311.IA000119]
                RIN 1076-AF24
                Education Contracts Under Johnson-O'Malley Act
                AGENCY: Bureau of Indian Affairs, Interior.
                ACTION: Proposed rule.
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                SUMMARY: Under the Johnson O'Malley (JOM) Act, the Bureau of Indian
                Education (BIE) provides assistance, through contracts, for Indian
                students attending public schools and non-sectarian private schools.
                Congress recently updated the JOM Act with the JOM Supplemental Indian
                Education Program Modernization Act (JOM Modernization Act). This
                proposed rule would implement the JOM Act, as amended, to clarify the
                eligibility requirements for Indian students to receive the benefits of
                a JOM contract, to clarify the funding formula and process to ensure
                full participation of contracting parties, and to otherwise reconcile
                and modernize the rules to comport with the activities of the
                contracting parties under the Act, as amended.
                DATES: Please submit comments by August 26, 2019.
                ADDRESSES: You may submit comments by any of the following methods:
                --Federal rulemaking portal: http://www.regulations.gov. The rule is
                listed under the agency name ``Bureau of Indian Affairs.''
                --Email: [email protected]. Include the number 1076-AF24 in the
                subject line of the message.
                --Mail: Elizabeth Appel, Office of Regulatory Affairs & Collaborative
                Action, U.S. Department of the Interior, 1849 C Street NW, MIB-4660-MS,
                Washington, DC 20240. Include the number 1076-AF24 in the subject line
                of the message.
                --Hand delivery: Elizabeth Appel, Office of Regulatory Affairs &
                Collaborative Action, U.S. Department of the Interior, 1849 C Street
                NW, MS 4660, Washington, DC 20240. Include the number 1076-AF24 in the
                subject line of the message.
                 Docket: For access to the docket to read background documents or
                comments received, go to http://www.regulations.gov and search for
                Docket Number BIA-2018-0002. We cannot ensure that comments received
                after the close of the comment period (see DATES) will be included in
                the docket for this rulemaking and considered.
                 Comments on the information collections contained in this proposed
                regulation (see ``Paperwork Reduction Act'' section, below) are
                separate from those on the substance of the rule. Send comments on the
                information collection burden to OMB by facsimile to (202) 395-5806 or
                email to the OMB Desk Officer for the Department of the Interior at
                [email protected]. Please send a copy of your comments to the
                person listed in the FOR FURTHER INFORMATION CONTACT section of this
                notice.
                 Please see ``V. Tribal Consultation'' of this preamble for
                addresses of Tribal consultation sessions on this proposed rule.
                FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Director, Office of
                Regulatory Affairs & Collaborative Action, (202) 273-4680;
                [email protected].
                SUPPLEMENTARY INFORMATION:
                I. Background
                II. Overview of Proposed Rule
                 A. Indian Student Eligibility
                 1. History of Indian Student Eligibility for Benefits of JOM
                Education Contracts
                 2. March 2018 Proposed Rule: Comments and Responses
                 3. Proposed Revisions to Indian Student Eligibility Requirements
                 B. Funding Formula
                 C. Other Reconciliation and Modernization
                III. Subpart-by-Subpart Summary of Proposed Changes
                IV. Crosswalk of Proposed Changes
                V. Tribal Consultation
                VI. Procedural Requirements
                 A. Regulatory Planning and Review (E.O. 12866 and 13563)
                 B. Reducing Regulation and Controlling Regulatory Costs (E.O.
                13771)
                 C. Regulatory Flexibility Act
                 D. Small Business Regulatory Enforcement Fairness Act
                 E. Unfunded Mandates Reform Act
                 F. Takings (E.O. 12630)
                 G. Federalism (E.O. 13132)
                 H. Civil Justice Reform (E.O. 12988)
                 I. Consultation With Indian Tribes (E.O. 13175)
                 J. Paperwork Reduction Act
                 K. National Environmental Policy Act
                 L. Effects on the Energy Supply (E.O. 13211)
                 M. Clarity of This Regulation
                 N. Public Availability of Comments
                [[Page 30648]]
                I. Background
                 The JOM Act authorizes the Secretary of the Interior (Secretary) to
                enter into contracts with States, schools, and private nonsectarian
                organizations, and to expend appropriated funds in support of Indian
                students under such contracts. See, 25 U.S.C. 5341 et seq. Federally
                recognized Indian Tribes and Tribal organizations are also eligible to
                apply for JOM contracts. Contracts under JOM contain educational
                objectives that adequately address the educational needs of the Indian
                students who are to be beneficiaries of the contract and assures that
                the contract is capable of meeting such objectives. See, 25 U.S.C.
                5345. The regulations at 25 CFR part 273 implement this authority. The
                regulations at 25 CFR part 273 became effective in 1975 and the rule
                has been in effect over 40 years without substantial changes. In 2018,
                Congress updated the JOM Act with the JOM Modernization Act. This
                proposed rule, if adopted, would update 25 CFR part 273 to implement
                the JOM Modernization Act and make other changes necessary to update
                the rule, as described below.
                II. Overview of Proposed Rule
                 The JOM Modernization Act requires the BIE to revise the existing
                regulations at 25 CFR part 273, to:
                 1. Determine how the regulatory definition of ``eligible Indian
                student'' may be revised to clarify eligibility requirements for
                contracting parties under the Act;
                 2. Determine, as necessary, how the funding formula described in
                Sec. 273.31 may be clarified and revised to ensure full participation
                of contracting parties and provide clarity on the funding process under
                the Act; and
                 3. Reconcile and modernize the rule to comport with the activities
                of the contracting parties under the Act.
                 The proposed rule includes changes to meet these requirements.
                Specifically, the proposed rule would:
                 Revise who is an eligible Indian student;
                 Clarify how funds can be used;
                 Describe how a new contracting party can enter into
                contracts;
                 Revise what requirements do not apply to Tribal
                organizations;
                 Revise the funding formula to reflect how it is currently
                calculated;
                 Clarify the annual reporting requirements;
                 Clarify the contract renewal process;
                 Add a new subpart J--Responsibility and Accountability, to
                address the Secretary's reporting requirements and compliance with
                Paperwork Reduction Act; and
                 Clarify appeals processes.
                 Other technical edits would:
                 Revise the rule generally to meet plain language
                requirements;
                 Add, delete, and revise definitions to provide clarity;
                 Divide long sections into shorter sections to provide
                clarity; and
                 Update citations and remove citations that no longer
                apply.
                 The BIE has proposed changes that reflect the need to update Part
                273 and to incorporate the new requirements of the JOM Modernization
                Act. The BIE welcomes comments on those subparts that are new and on
                the substantive changes to the current rule, including: Terms and
                definitions; eligible entities; eligible students; funding formula;
                annual reporting requirements; contract renewal process; and appeals.
                The following provides more background and detail on these proposed
                changes.
                A. Indian Student Eligibility
                 On March 21, 2018, the Bureau of Indian Education (BIE) proposed a
                rule to update one section of the JOM regulations regarding when Indian
                students are eligible for benefits of JOM education contracts, to
                delete the requirement that the Indian student must have \1/4\ or more
                degree of Indian blood. See 83 FR 12301. BIE received six relevant
                comment submissions on the proposed rule, which are summarized below.
                During this time, the JOM Modernization Act was also moving through
                Congress and ultimately became law on December 31, 2018. See Public Law
                115-404. The JOM Modernization Act requires rulemaking on the same
                topic as the March 2018 proposed rule: Student eligibility for the
                benefits of JOM education contracts. BIE is now taking a new look at
                its March 2018 proposed rule based on comments received and proposing a
                new rule to address both the eligibility qualifications and the other
                requirements of the JOM Modernization Act.
                1. History of Indian Student Eligibility for Benefits of JOM Education
                Contracts
                 In 1957, the Bureau of Indian Affairs (BIA) published a rule, then
                at 25 CFR 33.4 (Contracts with public schools), which allowed for the
                expenditure of monies under contracts for the education of ``Indian
                children of one-fourth or more degree Indian blood.'' See 22 FR 10533
                (December 24, 1957). In 1974, BIA finalized a rule updating part 33 and
                defining ``Indian'' at Sec. 33.1(g) as an individual of one-fourth or
                more degree of Indian blood and a member of a Tribe, band, or other
                organized group of Indians, including Alaska Natives, which is
                recognized by the Secretary as being eligible for BIA Services. See 39
                FR 30114 (August 21, 1974). In 1975, BIA replaced part 33 with part 273
                and made changes in accordance with the Johnson O'Malley Act, 25 U.S.C.
                452-456, as amended by the Indian Self-Determination and Education
                Assistance Act (Pub. L. 93-638). See 40 FR 51282, 51286 (November 4,
                1975).\1\ In the new Sec. 273.12, BIA listed the eligibility criteria
                for students as one-fourth or more degree Indian blood and recognized
                by the Secretary as being eligible for Bureau Services. See 40 FR
                51303, 51305 (November 4, 1975).
                ---------------------------------------------------------------------------
                 \1\ Note: The BIA originally proposed replacing part 33 with
                part 403, but at the request of the Office of the Federal Register,
                ultimately redesignated part 33 as part 273. See 40 FR 40982
                (September 4, 1975).
                ---------------------------------------------------------------------------
                 The eligibility provision has not been updated in the regulations
                since 1975. Prior to the 1990's, the Department implemented this
                regulation to require one-fourth or more degree Indian blood. In 1990,
                the U.S. District Court for the District of Nevada stated that this
                regulatory requirement was too restrictive. See, Nevada Urban Indians,
                Inc. v. United States, CV-N-90-238 BRT (September 12, 1990). In 1991,
                the Director of the then-Office of Indian Education Programs (the
                predecessor office to BIE), issued a memorandum to all Education Line
                Officers and JOM Coordinators stating that to be eligible for JOM
                services, the recipient must be:
                 A member of, or at least a one-fourth degree Indian blood
                descendent of, a member of an Indian Tribe which is eligible for the
                special programs and services provided by the United States through the
                Bureau of Indian Affairs to Indians because of their status as Indians;
                and
                 Reside on or near an Indian reservation or meet the
                criteria for attendance at a Bureau off-reservation boarding school.
                 In April 2015, BIE held a series of Tribal consultation sessions to
                address remaining confusion when counting eligible students and
                proposed various options for revision to allow greater flexibility.
                Most Tribal participants supported an option that would delete the word
                ``and'' from Sec. 273.12, allowing for eligibility for students who
                are either Tribal members or have one-fourth degree Indian blood.
                2. March 2018 Proposed Rule: Comments and Responses
                 The March 2018 proposed rule would have revised Sec. 273.12 of the
                regulations
                [[Page 30649]]
                to define as eligible students only those students who are members of a
                federally recognized Tribe and delete the provision stating that
                students must also have one-fourth or more degree Indian blood. The
                March 2018 proposed rule stated that the Department does not require a
                certain degree of Indian blood and, as such proposed to delete the
                requirement for a blood degree quantum.
                 BIE received six relevant comment submissions on the proposed rule.
                Three of the submissions, including one from a Tribe, generally
                supported the proposed rule. Another commenter supported the rule, but
                questioned whether there are statistics showing that the blood
                requirement has not been in use over the past 27 years. The other
                comments are summarized here.
                 Comment 1: Delay the rulemaking until passage of the Johnson
                O'Malley Modernization Act. A few commenters noted that legislation
                requiring Interior to conduct a new student count and addressing the
                same topic as the March 2018 rule was pending in Congress. One
                commenter specifically suggested delaying the rulemaking as the JOM
                Modernization Act was moving through Congress because that Act requires
                a rulemaking that would be duplicative of the proposed rule.
                 Response: BIE accepted this comment, delaying further action on the
                March 2018 proposed rule until the Act became law in December 2018 and
                is now proposing a new rule that takes into account both the
                requirements of the JOM Modernization Act and comments received on the
                March 2018 proposed rule.
                 Comment 2: Retain the current regulation requiring a student to be
                both a member of a federally recognized Tribe and one-fourth degree of
                Indian blood or more. One Tribal commenter interpreted the current
                regulatory language as requiring both Tribal membership and one-fourth
                degree of Indian blood or more. According to that Tribal commenter,
                removing the one-fourth blood quantum requirement would increase the
                number of eligible students from 271,884 (the last national count of
                students funded through JOM, done in 1995) to over 1 million students.
                The Tribe's primary concern is that the funding per student will
                decrease to an unacceptable level.
                 Response: BIE does not currently require both membership and a one-
                fourth degree blood quantum because the U.S. District Court for the
                District of Nevada stated that requiring a student to meet both these
                requirements for eligibility was too restrictive. See, Nevada Urban
                Indians, Inc. v. United States, CV-N-90-238 BRT (September 12, 1990).
                In accordance with the requirements of the JOM Modernization Act, BIE
                will conduct an updated count of eligible Indian students to provide
                accuracy for Congress to determine the appropriate per-student funding
                amount.
                 Comment 3: Allow Indian students to be eligible for benefits of a
                JOM contract if they are a member of a federally recognized Tribe or,
                in the alternative, are of one-fourth degree of Indian blood or more.
                The National Indian Education Association (NIEA) pointed out in its
                comments that thousands of Native students have at least one-fourth
                blood quantum and currently participate in JOM programs, but are not
                Tribal members due to enrollment requirements (e.g., requirements that
                prevent enrollment until a certain age). The NIEA further noted that
                Tribes have the flexibility to provide services to students that are
                either enrolled in a Tribe or are descendants with at least one-fourth
                blood quantum. These students are eligible to attend BIE schools and
                participate in other Bureau-funded programs. The NIEA therefore
                recommended that the regulations reflect this approach of including
                students with at least one-fourth degree blood quantum as eligible for
                the benefits of JOM contracts, regardless of whether such students are
                Tribal members, both to align the regulations with current practice and
                to provide parity with other Bureau-funded programs.
                 Response: The rule being proposed today would incorporate this
                change by defining an eligible student as one who is a member of, or is
                at least one-fourth degree Indian blood descendant of a member of a
                federally recognized Tribe. This new proposed rule will clarify that a
                student who is not enrolled in a federally recognized Tribe (e.g., due
                to enrollment requirements) is still eligible if the student has
                documentation of descendancy indicating at least one-fourth Indian
                blood from federally recognized Tribe. This new proposed rule better
                aligns with eligibility requirements for Indian students in other BIE
                programs, such as the Indian Student Equalization Program (ISEP). The
                ISEP, which applies to BIE-funded schools, requires an eligible Indian
                student to be a member of, or at least one-fourth degree Indian blood
                descendant of a member of, a Tribe that is eligible for the special
                programs and services provided by the United States through the Bureau
                to Indians because of their status as Indians, as well as residing on
                or near a reservation, or meets the criteria for attendance at a Bureau
                off-reservation home-living school. See 25 U.S.C. 2007(f).
                 Comment 4: Clarify what it means to be eligible for Bureau services
                the definition of eligible students. A few commenters noted the
                importance of clarity in the eligibility requirements. One commenter
                stated that the rule should specify the requirements for a student to
                be ``recognized by the Secretary as being eligible for Bureau
                services.''
                 Response: BIE is addressing this comment by using language in the
                proposed rule that now refers to membership in a federally recognized
                Tribe. The Secretary publishes on an annual basis a list of Indian
                entities recognized and eligible to receive services from BIA under the
                1994 Lists Act. See, e.g., 84 FR 1200 (February 1, 2019). This list is
                the list of federally recognized Tribes. Individuals are then eligible
                for Bureau services by virtue of the individual's membership in a
                federally recognized Tribe. The proposed rule would clarify this
                portion of the eligibility criteria.
                3. Proposed Revisions to Indian Student Eligibility Requirements
                 This proposed rule would establish clearer eligibility requirements
                for Indian students to obtain the benefits of a JOM contract by
                specifying that a student either must be a member of a federally
                recognized Tribe or at least one-fourth degree Indian blood descendant
                of a member of a federally recognized Tribe. See Sec. 273.112 of the
                proposed rule.
                B. Funding Formula
                 Within the current rule, the funding formula is the number of
                eligible Indian students multiplied by 25 percent of whichever is
                higher: The State average per pupil operating cost or National average
                per pupil operating cost. Since 1988, BIE has been using a funding
                formula that relies on data from the U.S. Department of Education on
                the State annual cost per pupil and the National annual cost per pupil
                to determine a weight factor. The weight factor is then used to
                calculate funding, subject to a minimum weight factor.
                 The JOM Modernization Act requires the BIE determine ``as
                necessary,'' how the funding formula may be ``clarified and revised''
                to ensure full participation of contracting parties and provide clarity
                on the funding process. The BIE proposes to revise the funding formula
                to reflect the formula used since 1988, to ensure full participation of
                contracting parties. The revised language will provide clarity on what
                source is used to determine the initial
                [[Page 30650]]
                calculations, how the calculation is made to determine a weight factor
                by State, and how the minimum weight factor is to be used should the
                calculated weight factor for the State fall below the minimum. The
                funding formula for contracts will be based on the calculated weight
                factor and the number of eligible Indian students to be served by the
                contract.
                 The JOM Modernization Act, Section 7(e)(1)(A), includes a ``hold
                harmless'' provision that remains in effect for four years, which
                states that any existing contracting party may not receive an amount
                that is less than the amount that that party received for the fiscal
                year preceding the date of enactment of the Act. After expiration of
                the four years, the Act provides that no contractor may receive more
                than a 10 percent decrease from the amount received in the prior year.
                The BIE is not able to recommend a new funding formula without
                decreasing the funds made available to existing contracting parties;
                additionally, after four years it is possible that existing contractors
                may receive reductions in funding even beyond the FY 2017 levels. The
                BIE welcomes comments on this matter for any recommendations on how to
                revise the funding formula proposed in the rule to support all existing
                contracting parties receiving funding for JOM programs. Under the rule
                as proposed the funding formula at Sec. 273.31 will be at Sec.
                273.140.
                C. Other Reconciliation and Modernization
                 The JOM Modernization Act requires BIE to otherwise reconcile and
                modernize the rules to comport with the activities of the contracting
                parties. After a thorough review of the current rule, there were areas
                that clearly required a revision. The revisions being proposed are,
                among other things, intended to make the regulations more user-friendly
                through plain language.
                III. Subpart-by-Subpart Summary of Proposed Changes
                A. Subpart A--General Provisions and Definitions
                 In subpart A, the BIE proposes to continue to address the substance
                of each of the existing sections (purpose and scope, definitions,
                revision or amendment of regulations, and policy of maximum Indian
                participation) with updates. For example, BIE proposes to split the
                purpose and scope section into several sections; add, revise, and
                remove definitions; and change requirements for revising or amending
                the regulations to provide that the Bureau will follow the
                Administrative Procedure Act. The BIE proposes to add a section on how
                the Secretary will ensure full geographic coverage and full
                participation to address a requirement in the JOM Modernization Act
                that the Secretary consult with eligible entities that have not
                previously participated in the JOM program.
                B. Subpart B--Program Eligibility & Applicability
                 The proposed subpart B addresses the same topics of eligible
                applicants (but proposes updating the term to refer to ``eligible
                entities'' to reflect the language of the JOM Modernization Act) and
                eligible students as the current subpart B, but proposes moving the
                other subpart B topics to subparts C, D and E. The proposed subpart B
                would also address what funds may be used under JOM contracts and what
                programs may be contracted under the JOM Act. The BIE proposes to
                revise the description of ``eligible students'' to reflect information
                collected during previous Tribal consultations sessions and add
                examples of how JOM contract funds can be used. The BIE further
                proposes to clarify which provisions Tribal organizations are subject
                to (see proposed Sec. 273.111) and clarify that Tribal organizations
                are not excluded from the annual reporting requirements.
                C. Subpart C--Indian Education Committee
                 The proposed subpart C would address the Indian Education
                Committee, which is in current subpart B. The BIE proposes to revise
                the description of ``Indian Education Committee'' to include preference
                in committee membership be given to parents and guardians of children
                enrolled in a school. The BIE also proposes to remove a requirement to
                report to the Bureau regarding who will serve on the Indian Education
                Committee. The BIE proposes to add that organizational papers and by-
                laws of the Indian Education Committee may include additional powers
                and duties that would permit the Committee to, among other things,
                establish policy and procedures for hearing grievances.
                D. Subpart D--Education Plan
                 The proposed subpart D would address the contents of the Education
                Plan (currently addressed in subpart B) and would add a section
                specifying that an education plan will be approved by a Regional
                Director (updated from ``Area Director''), under 25 U.S.C. 5345.
                E. Subpart E--Contract Proposal, Review, and Approval
                 The BIE proposes to move provisions that are in the current subpart
                B regarding applications and requests to contract, contract review, and
                approval, to a new subpart E. This proposed subpart would include a
                section regarding how eligible entities who have not participated in
                the program in the past should submit a contract proposal. The BIE
                proposes to change the contract approval period from 60 days to 90 days
                and to indicate that contract approval and award will be made through
                the applicable Regional office, eliminating the need for the central
                office to process and approve. The change from 60 to 90 days aligns JOM
                contract approval with the statutory 90-day approval period for both
                Public Law 93-638 contracts and Public Law 102-477 plans. The proposed
                subpart also includes updates to outdated statutory and regulatory
                citations. Since the BIE is responsible for administering Indian
                education programming for the Department, the BIE is considering
                changes to this proposed rule to reflect JOM contract administration
                partly or entirely through the BIE as opposed to the Bureau of Indian
                Affairs. The BIE welcomes comments on such possible changes.
                F. Subpart F--Funding Provisions
                 The BIE proposes to move provisions that are in current subpart C
                to a new subpart F. The proposed subpart would revise the funding
                formula to reflect current practice, with the four-year ``hold
                harmless'' and phased decrease approach provided by the JOM
                Modernization Act. This proposed subpart would also move the section on
                advance payments from current subpart D and revise the section on
                advance payments to comply with 25 U.S.C. 5324(b).
                G. Subpart G--Annual Reporting Requirements
                 The BIE proposes to revise reporting requirements to reflect the
                annual student count reporting requirements of the JOM Modernization
                Act. As such, the BIE proposes to add sections requiring an annual
                report, describing what must be included in the annual report,
                describing what will happen if a contractor fails to submit an annual
                report, and identifying who will notify a contractor that they have
                failed to submit an annual report. The BIE also proposes to add a
                section explaining that the Bureau is required to provide technical
                assistance and training, and describing the process to request
                [[Page 30651]]
                assistance to meet annual reporting requirements. The BIE proposes to
                add a section describing how a decrease in the reported student count
                will affect future funding. The BIE proposes to include language
                reflective of the JOM Modernization Act defining a ``contracting
                party'' as an entity that has a contract through a program authorized
                under this Act.
                H. Subpart H--General Contract Requirements
                 Proposed subpart H addresses many of the same topics as current
                subpart D. In addition to updating outdated statutory and regulatory
                citations, the BIE proposes to update records requirements now that
                contract files are to be filed under the Department Records Schedule.
                The BIE proposes to revise a contractor's responsibility for penalties
                under the Privacy Act requirements. The BIE proposes to revise who will
                investigate a complaint received of a Civil Rights Act violation in
                State school districts and provide that such investigations will be
                performed by the Department of Education and remove references to the
                Department of Justice.
                I. Subpart I--Contract Renewal, Revisions, and Cancellations
                 Proposed subpart I would address the topics in current subpart E,
                but would also include new provisions adding a contract renewal
                process.
                J. Subpart J--Responsibility and Accountability
                 The BIE proposes to add this subpart to meet requirements in the
                JOM Modernization Act which, among other things, requires the Secretary
                to provide an annual report to the Committee on Indian Affairs in the
                Senate, the Subcommittee on Interior, Environment, and Related Agencies
                of the Committee on Appropriations of the Senate, the Committee on
                Education and the Workforce of the House of Representatives, and the
                Subcommittee on Interior, Environment, and Related Agencies of the
                Committee on Appropriations of the House of Representatives that
                includes a determination on the number of eligible students served by
                each contracting party, recommendations on appropriate funding levels
                for the program based upon such determination, and an assessment of the
                contracts under JOM.
                K. Subpart K--Appeals
                 The BIE proposes to change this subpart (currently at subpart F) to
                encourage the use of an Alternate Dispute Resolution (ADR) process that
                has been established by the Department of the Interior prior to filling
                a formal appeal. The proposed subpart would also be amended to refer to
                the Contracts Dispute Act of 1978, 41 U.S.C. 7101-7109, which created
                the Civilian Board of Contract Appeals (CBCA). The CBCA is an
                independent tribunal with its own formal appeal process. Additional
                information on the CBCA can be found at: https://www.dbca.gov/index.html. Tribes and Tribal organizations may bring appeals involving
                Self-Determination Act contracts before the CBCA under 25 U.S.C.
                5331(d)-(e).
                IV. Crosswalk of Proposed Changes to 25 CFR 273
                 The crosswalk below lists the current sections, proposed sections,
                and a summary of proposed substantive changes. Except in a few
                instances, this table does not note non-substantive changes. For
                example, except in the definitions sections, the crosswalk does not
                note terminology changes that do not substantively affect the meaning
                (e.g. replacing ``Area Director'' with ``Regional Director'' or ``Area
                Director or Commissioner'' with ``approving official,'' ``Bureau
                contracting officer'' with ``awarding official,'' ``application to
                contract'' with ``contract proposal'' or ``request'').
                ------------------------------------------------------------------------
                 Proposed 25 CFR Summary of proposed
                 Current 25 CFR section section changes
                ------------------------------------------------------------------------
                273.1(a) Purpose and Scope.. 273.101 What is the No substantive
                 purpose and scope change.
                 of this part?
                273.1(b) & (c).............. .................... Combines with
                 current 273.11(b)
                 and (c), into
                 proposed Sec.
                 273.111.
                273.1(d) & (e).............. 273.105 How do these No substantive
                 regulations affect change.
                 existing Tribal
                 rights?
                273.2 Definitions........... 273.106 What key --Deletes
                 terms do I need to definitions of
                 know? ``Commissioner,''
                 ``Public Law 93-
                 638,''
                 ``Superintendent,''
                 and ``Assistant
                 Secretary--Indian
                 Affairs'' because
                 those terms are not
                 used.
                 --Adds definitions
                 for ``Academic
                 year,'' ``Appeal,''
                 ``Approving
                 official,''
                 ``Awarding
                 official,''
                 ``Calendar year,''
                 ``Capital outlay,''
                 ``Contract,''
                 ``Contracting
                 party,''
                 ``Contractor,''
                 ``Debt
                 retirement,''
                 ``Director,''
                 ``Eligible
                 entity,''
                 ``Existing
                 contracting
                 party,'' ``Fiscal
                 year,'' ``Indian
                 advisory school
                 board,'' ``Initial
                 contract proposal
                 and contract
                 proposal,'' ``Local
                 Indian Committee,''
                 ``New contracting
                 party,'' ``Public
                 school district,''
                 ``Regional
                 Director,''
                 ``School official
                 or school
                 administrator,''
                 ``Scope of work,''
                 and ``System of
                 record.''
                 --Replaces
                 definition of
                 ``Area Director''
                 with a definition
                 of ``Regional
                 Director.''
                 --Revises the
                 definitions of
                 ``Bureau'' to refer
                 to BIE, ``Days'' to
                 address cases where
                 a specified date
                 falls on a weekend
                 or holiday,
                 ``Johnson-O'Malley
                 Act'' to reflect
                 statutory updates,
                 and ``Supplemental
                 programs'' to
                 reflect updates to
                 citations.
                273.3(a) & (e) Revision or 273.102 How will No substantive
                 amendment of regulations. revisions or change.
                 amendments be made
                 to this part?
                273.3(b) & (c).............. .................... Deletes because this
                 process is already
                 required under the
                 Administrative
                 Procedure Act.
                [[Page 30652]]
                
                273.3(d).................... .................... Deletes annual
                 consultation
                 requirement because
                 regulation already
                 requires
                 consultation for
                 revisions or
                 amendments.
                273.4 Policy of maximum 273.103 What is the No substantive
                 Indian participation. Secretary's policy change.
                 of maximum Indian
                 participation?
                 273.104 How will the New section.
                 Secretary extend
                 geographic coverage
                 and enhance
                 participation under
                 the Johnson-
                 O'Malley Act?
                273.11(a) Eligible 273.110 Who is Revises to clarify
                 applicants. eligible to request which school
                 contracts under the districts are
                 Johnson-O'Malley eligible entities
                 Act? to contract, to
                 define the purpose
                 of the contracts,
                 and to refer to
                 requesting, rather
                 than applying for,
                 contracts.
                273.11(b) & (c)............. 273.111 How do the Revises to state
                 requirements for which provisions
                 Tribal Tribal
                 organizations organizations are
                 differ from those not subject to.
                 for other eligible
                 entities?
                273.12 Eligible students.... 273.112 Who is an Revises based on
                 eligible Indian recommendations
                 student under the received in prior
                 Johnson-O'Malley Tribal
                 Act? and 273.128 consultations.
                 How are contracts
                 prioritized?
                 273.113 How can the New section.
                 funds be used under
                 the Johnson-
                 O'Malley Act?
                273.13(a) & (b) Proposals 273.126 What No substantive
                 eligible for contracts. proposals are change.
                 eligible for
                 contracts under the
                 Johnson-O'Malley
                 Act?
                273.13(c)................... Sec. 273.129 May No substantive
                 the Regional change.
                 Director reimburse
                 a public school
                 district for
                 educating non-
                 resident Indian
                 students?
                273.14 Preparing the 273.119 What is an Revises the
                 education plan. education plan and introduction
                 what must it paragraph to
                 include? include language
                 from 25 U.S.C. 5345
                 and combines
                 sections.
                 273.120 Does an New section.
                 education plan need
                 to be approved by
                 the Regional
                 Director?
                 273.121 When does New section.
                 the Regional
                 Director approve
                 the education plan?
                273.15(a) & (b) 273.115 Who No substantive
                 Establishment of Indian determines the change.
                 Education Committee. unique educational
                 needs of eligible
                 Indian students?
                273.15(c) & (d)............. 273.116 Does an Deletes requirement
                 Indian Education to file as soon as
                 Committee need to practicable.
                 establish
                 procedures and
                 report to the
                 Regional Director?
                273.16(a) Powers and duties 273.117 What are the No substantive
                 of Indian Education powers and duties change.
                 Committee. of the Indian
                 Education
                 Committee?
                273.16(b)................... 273.118 Are there No substantive
                 additional change.
                 authorities an
                 Indian Education
                 Committee can
                 exercise?
                273.17(a) Programs approved 273.114 What No substantive
                 by the Indian Education programs may be change.
                 Committee. contracted under
                 the Johnson-
                 O'Malley Act?
                273.17(b)................... 273.171 Can a No substantive
                 contractor make change.
                 changes to a
                 program approved by
                 an Indian Education
                 Committee?
                273.17(c)................... 273.127 Can a No substantive
                 contract include change.
                 funds to support
                 the duties of an
                 Indian Education
                 Committee?
                273.18 Additional .................... Combines with
                 requirements for education current section
                 plan. 273.14 (preparing
                 the education
                 plan), into
                 proposed section
                 273.119.
                273.19 Obtaining application 273.125 How may a Revises language to
                 forms. new contracting reflect an initial
                 party enter into contract proposal
                 contract under the versus an
                 Johnson-O'Malley application to
                 Act? contract.
                273.20 Content of 273.130 What is Revises language to
                 application to contract. required in the reflect an initial
                 contract proposal contract proposal
                 for funding? versus an
                 application to
                 contract.
                273.21 Tribal request for 273.131 What is Deletes the February
                 contract. required for a 1 deadline for
                 Tribal request for requests to
                 a contract? contract.
                273.22(a) Application 273.132 Who will Revises to reflect
                 approval officials. review and approve current process of
                 the contract Regions and
                 proposal? Regional Director.
                273.22(b)................... .................... Deletes.
                273.23 Submitting .................... Deletes.
                 application to Area Office.
                273.24 Area Office review 273.133 What is the Replaces ``Part 2 of
                 and decision. process for review this Chapter'' with
                 and decision? ``Subpart I of this
                 part.''
                273.25 Deadline for Area 273.134 What is the Extends timeline for
                 Office action. timeframe for approval from 60
                 contract decision? days to 90 days to
                 allow for
                 additional review.
                273.26 Submitting .................... Deletes because
                 application to Central proposals are
                 Office. submitted to
                 Regions.
                273.27 Central Office review .................... Deletes because
                 and decisions. proposals are
                 submitted to
                 Regions.
                273.28 Deadline for Central .................... Deletes because
                 Office action. proposals are
                 submitted to
                 Regions.
                273.29 Negotiating the 273.135 Who will No substantive
                 contract. negotiate the change.
                 contract?
                [[Page 30653]]
                
                273.31(a) Distribution 273.140 What is the Revises to reflect
                 formula. funding formula to the current funding
                 distribute funds? formula calculated
                 by the BIE.
                273.31(b)................... .................... Deletes because
                 there is no
                 authority for
                 exceptions in 25
                 U.S.C. 5342 et.
                 seq.
                273.32 Pro rata requirement. 273.141 Will funding No substantive
                 be pro-rated? change.
                273.33 Use of funds for .................... Deletes because this
                 operational support. is already part of
                 the definition of
                 ``operational
                 support.''
                273.34 Use of other Federal, 273.143 Must other No substantive
                 State and local funds. Federal, State and change.
                 local funds be
                 used?
                273.35 Capital outlay or 273.144 Can Johnson- No substantive
                 debt retirement. O'Malley funds be change.
                 used for Capital
                 outlay or debt
                 retirement?
                273.36 Eligible 273.145 How can No substantive
                 subcontractors. funds be used for change.
                 subcontractors?
                273.37 Use of funds outside 273.146 Can funds be No substantive
                 of schools. used outside of change.
                 schools?
                273.38 Equal quality and 273.147 Are there No substantive
                 standards of education. requirements of change.
                 equal quality and
                 standard of
                 education?
                273.41 Special program 273.170 What special No substantive
                 provision to be included in program provisions change.
                 contract. must be included in
                 the contract?
                273.42 Civil Rights Act 273.183 Can the Replaces
                 violations. Secretary ``Department of
                 investigate a Health, Education
                 potential Civil and Welfare'' with
                 Rights Act ``Department of
                 violation? Education,''
                 deletes requirement
                 for a Memorandum of
                 Understanding
                 between the
                 Department of the
                 Interior and the
                 Department of
                 Health, Education,
                 and Welfare.
                 Deletes provision
                 regarding formal
                 hearings.
                273.43 Advance payments..... 273.142 Are advance Replaces outdated
                 payments on a citations with
                 contract allowed provision allowing
                 under the Johnson- Regional Director
                 O'Malley Act? to determine
                 installments and
                 conditions under 25
                 U.S.C. 4324(b).
                273.44 Use and transfer of 273.176 May there be No substantive
                 Government property. a use and transfer change.
                 of Government
                 property?
                273.45(a)-(c) Indian 273.174 Are there Adds ``for the
                 preference. any Indian benefit of Indian
                 preference students'' from 25
                 requirements for U.S.C. 5306(b),
                 contracts and adds to (a) ``in
                 subcontracts? connection with the
                 administration of
                 such contract(s)''
                 from 25 U.S.C.
                 5306(b), and
                 deletes redundant
                 language.
                273.45(d)................... 273.175 How will a Deletes language
                 Tribal governing stating ``subject
                 body apply Indian to the provisions
                 preference of part 14H of
                 requirements for title 41'' and ``to
                 contracts and the extent that
                 subcontracts? such requirements
                 are not
                 inconsistent with
                 the purpose and
                 intent of
                 paragraphs (a), (b)
                 and (c) of this
                 section.''
                273.46 Liability and motor 273.177 Who will No substantive
                 vehicle insurance. provide liability change.
                 and motor vehicle
                 insurance?
                273.47 Recordkeeping........ 273.178 Are there Replaces ``General
                 contract Records Schedules
                 recordkeeping and the Bureau
                 requirements? Records Control
                 Schedule'' with
                 updated records
                 schedule.
                273.48 Audit and inspection. 273.179 Are there Replaces
                 contract audit and ``Comptroller
                 inspection General and the
                 requirements? Secretary'' with
                 ``Regional
                 Director.''
                273.49 Freedom of 273.180 Are there No substantive
                 Information. disclosure change.
                 requirements for
                 contracts?
                273.50(a) Annual Reporting.. 273.150 Does an Adds three
                 existing additional
                 contracting party reporting elements
                 need to submit any as required by
                 reports? and Public Law 115-404:
                 273.151 What General information
                 information must about the
                 the existing contractor, general
                 contracting party information about
                 provide in the the number and
                 annual report? and names of the
                 273.152 When is the schools, and the
                 annual report due? number of eligible
                 Indian students who
                 were served using
                 the amounts
                 allocated during
                 the previous fiscal
                 year.
                273.50(b)................... .................... Deletes.
                273.50(c)................... 273.153 Who else No substantive
                 needs a copy of the change.
                 annual report?
                 273.154 What will New section.
                 happen if the
                 existing
                 contracting party
                 fails to submit an
                 annual report?
                 273.155 How will the New section.
                 existing
                 contracting party
                 know when reports
                 are due?
                 273.156 Will New section.
                 technical
                 assistance be
                 available to comply
                 with the annual
                 reporting
                 requirements?
                 273.157 What is the New section.
                 process for
                 requesting
                 technical
                 assistance and/or
                 training?
                 273.158 When should New section.
                 the existing
                 contracting party
                 request technical
                 assistance and/or
                 training?
                 273.159 If the New section.
                 existing
                 contracting party
                 reported a decrease
                 of eligible Indian
                 students, how will
                 funding be reduced?
                 273.160 Can the New section.
                 Secretary apply a
                 ratable reduction
                 in Johnson-O'Malley
                 program funding?
                 273.161 What is the New section.
                 maximum decrease in
                 funding allowed?
                [[Page 30654]]
                
                273.51 Penalties............ 273.182 Are there No substantive
                 penalties for change.
                 misusing funds or
                 property?
                273.52 State school law..... 273.172 May State No substantive
                 employees enter change.
                 Tribal lands,
                 reservations or
                 allotments?
                273.53 Applicable 273.173 What Replaces
                 procurement regulations. procurement ``Procurement
                 requirements apply Regulations (41 CFR
                 to contracts? part 1), as
                 supplemented by the
                 Interior
                 Procurement
                 Regulations (41 CFR
                 part 14), and the
                 Bureau of Indian
                 Affairs Procurement
                 Regulations (41 CFR
                 part 14H), except
                 41 CFR part 14H-
                 70'' with
                 ``Acquisition
                 Regulations at 48
                 CFR Part 1.''
                273.54 Privacy Act 273.181 Are there Updates citations,
                 requirements. Privacy Act and clarifies the
                 requirements for potential for
                 contracts? criminal penalties
                 for knowingly and
                 willfully
                 disclosing a record
                 about an individual
                 without the written
                 request or consent
                 of that individual.
                 273.191 How may a New section.
                 contract be renewed
                 for Johnson-
                 O'Malley funding?
                 273.192 What is New section.
                 required to renew a
                 contract?
                273.6 Contract revision or 273.193 May a No substantive
                 amendments. contract be revised change.
                 or amended?
                 273.194 Does the New section.
                 Indian Education
                 Committee have
                 authority to cancel
                 contracts?
                273.62 Cancelling a contract 273.195 May a Replaces ``subpart C
                 for cause. contract be of 43 CFR part 4''
                 cancelled for for appeals with
                 cause? ``subpart K of this
                 part''.
                273.71 Contract Appeal and 273.206 May a Combines with
                 contract be current Sec. Sec.
                 appealed? 273.72 and 273.73
                 into proposed Sec.
                 273.206.
                273.72 Appeal from decision .................... Combines into
                 to cancel contract for proposed Sec.
                 cause. 273.206.
                273.73 Other appeals........ .................... Combines into
                 proposed Sec.
                 273.206.
                 273.201 What is New section.
                 required for the
                 Secretary to meet
                 his or her
                 reporting
                 responsibilities?
                 273.202 Does this New section.
                 part include an
                 information
                 collection?
                 273.207 How does a New section.
                 contractor request
                 dispute resolution?
                 273.208 How does a New section.
                 Tribal organization
                 request an appeal?
                 273.209 How does a New section.
                 State, public
                 school district, or
                 an Indian
                 corporation request
                 an appeal?
                ------------------------------------------------------------------------
                III. Procedural Requirements
                A. Regulatory Planning and Review (E.O. 12866 and 13563)
                 Executive Order (E.O.) 12866 provides that the Office of
                Information and Regulatory Affairs (OIRA) at the Office of Management
                and Budget (OMB) will review all significant rules. OIRA has determined
                that this rule is not significant.
                 E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
                improvements in the Nation's regulatory system to promote
                predictability, to reduce uncertainty, and to use the best, most
                innovative, and least burdensome tools for achieving regulatory ends.
                The E.O. directs agencies to consider regulatory approaches that reduce
                burdens and maintain flexibility and freedom of choice for the public
                where these approaches are relevant, feasible, and consistent with
                regulatory objectives. E.O. 13563 emphasizes further that regulations
                must be based on the best available science and that the rulemaking
                process must allow for public participation and an open exchange of
                ideas. We have developed this proposed rule in a manner consistent with
                these requirements. This proposed rule is also part of the Department's
                commitment under the Executive Order to reduce the number and burden of
                regulations.
                B. Reducing Regulations and Controlling Regulatory Costs (E.O. 13771)
                 E.O. 13771 of January 30, 2017, directs Federal agencies to reduce
                the regulatory burden on regulated entities and control regulatory
                costs. E.O. 13771, however, applies only to significant regulatory
                actions, as defined in Section 3(f) of E.O. 12866. Therefore, E.O.
                13771 does not apply to this rule.
                C. Regulatory Flexibility Act
                 The Department of the Interior certifies that this rule will not
                have a significant economic effect on a substantial number of small
                entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
                D. Small Business Regulatory Enforcement Fairness Act
                 This proposed rule is not a major rulemaking under 5 U.S.C. 804(2),
                the Small Business Regulatory Enforcement Fairness Act. This proposed
                rule:
                 (a) Does not have an annual effect on the economy of $100 million
                or more because the funding available through JOM does not approach
                this amount.
                 (b) Will not cause a major increase in costs or prices for
                consumers, individual industries, Federal, State, or local government
                agencies, or geographic regions because this rule affects only certain
                education contracts.
                 (c) Does not have significant adverse effects on competition,
                employment, investment, productivity, innovation, or the ability of
                U.S.-based enterprises to compete with foreign-based enterprises
                because this rule affects only certain education contracts.
                E. Unfunded Mandates Reform Act
                 This proposed rule does not impose an unfunded mandate on State,
                local, or Tribal governments or the private sector of more than $100
                million per year. The
                [[Page 30655]]
                proposed rule does not have a significant or unique effect on State,
                local, or Tribal governments or the private sector. A statement
                containing the information required by the Unfunded Mandates Reform Act
                (2 U.S.C. 1531 et seq.) is not required.
                F. Takings (E.O. 12630)
                 This proposed rule does not affect a taking of private property or
                otherwise have taking implications under Executive Order 12630 because
                this rulemaking, if adopted, does not affect individual property rights
                protected by the Fifth Amendment or involve a compensable ``taking.'' A
                takings implication assessment is not required.
                G. Federalism (E.O. 13132)
                 Under the criteria in section 1 of Executive Order 13132, this rule
                does not have sufficient federalism implications to warrant the
                preparation of a federalism summary impact statement because the rule
                affects only individuals' eligibility under certain education
                contracts. A federalism summary impact statement is not required.
                H. Civil Justice Reform (E.O. 12988)
                 This proposed rule complies with the requirements of Executive
                Order 12988. Specifically, this proposed rule: (a) Meets the criteria
                of section 3(a) requiring that all regulations be reviewed to eliminate
                errors and ambiguity and be written to minimize litigation; and (b)
                Meets the criteria of section 3(b)(2) requiring that all regulations be
                written in clear language and contain clear legal standards.
                I. Consultation With Indian Tribes (E.O. 13175)
                 The Department of the Interior strives to strengthen its
                government-to-government relationship with Indian Tribes through a
                commitment to consultation with Indian Tribes and recognition of their
                right to self-governance and Tribal sovereignty. We have evaluated this
                rule under the Department's consultation policy and under the criteria
                in Executive Order 13175 and have determined that it has substantial
                direct effects on federally recognized Indian Tribes because one
                portion of the criteria for eligibility of Indian students is Tribal
                membership. We will consult with Tribes following publication of this
                proposed rule. BIE consulted with Tribes on the eligibility criteria in
                2015 and provided an opportunity for input on this subject following
                publication of the March 2018 proposed rule; however, the statutory
                deadline for completion of this rulemaking December 31, 2019, prevents
                us from further consultation prior to publication of this rule.
                J. Paperwork Reduction Act
                 This rule contains information collections requiring approval under
                the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501 et seq. In
                accordance with the PRA, we provide the general public and other
                Federal agencies with an opportunity to comment on new, proposed,
                revised, and continuing collections of information. This helps us
                assess the impact of our information collection requirements and
                minimize the public's reporting burden. It also helps the public
                understand our information collection requirements and provide the
                requested data in the desired format.
                 We are soliciting comments on the proposed ICR that is described
                below. We are especially interested in public comment addressing the
                following issues:
                 (1) Is the collection necessary to the proper functions of the BIE;
                 (2) Will this information be processed and used in a timely manner;
                 (3) Is the estimate of burden accurate;
                 (4) How might the BIE enhance the quality, utility, and clarity of
                the information to be collected; and
                 (5) How might the BIE minimize the burden of this collection of the
                respondents, including through the use of information technology.
                 Comments you submit in response to this notice are a matter of
                public record. We will include or summarize each comment in our request
                to OMB to approve this ICR.
                 Abstract: The regulations at 25 CFR 273, Subpart E, implement in
                section 7(c) Contracting Party Student Count Reporting Compliance, of
                the Johnson-O'Malley Supplemental Indian Education Program
                Modernization Act (Pub. L. 115-404), enacted December 31, 2018. These
                regulations require the BIE to implement an annual reporting
                requirement for existing JOM contractors to report a student count
                served by each contracting party and for the BIE to provide an
                assessment on the contracts receiving JOM funds. The information
                received from the annual reporting requirements of the contractor will
                allow the Secretary to provide an annual report to the appropriate
                Committee and Subcommittees in the Senate and of the House of
                Representatives. The JOM Modernization Act indicates a ``contracting
                party'' is an entity that has a contract through a program authorized
                under this Act. It does not exclude Tribal organizations from the
                annual reporting requirements.
                 The Department is seeking approval for a new OMB Control Number.
                 Title of Collection: Johnson O'Malley Student Count Annual Report.
                 OMB Control Number: 1076-NEW.
                 Type of Review: New collection.
                 Respondents/Affected Public: Tribal organizations, States, public
                school districts, Indian corporations.
                 Total Estimated Number of Annual Respondents: 312.
                 Total Estimated Number of Annual Responses: 1,197.
                 Estimated Completion Time per Response: Ranges from 2 to 80 hours.
                 Total Estimated Number of Annual Burden Hours: 11,450.
                 Respondent's Obligation: Required to Obtain a Benefit.
                 Frequency of Collection: Annually.
                 Total Estimated Annual Non-hour Burden Cost: $0.
                K. National Environmental Policy Act
                 This proposed rule does not constitute a major Federal action
                significantly affecting the quality of the human environment. A
                detailed statement under the National Environmental Policy Act of 1969
                (NEPA) is not required because these are ``regulations . . . whose
                environmental effects are too broad, speculative, or conjectural to
                lend themselves to meaningful analysis and will later be subject to the
                NEPA process, either collectively or case-by-case.'' 43 CFR 46.210(i).
                We have also determined that the rulemaking does not involve any of the
                extraordinary circumstances listed in 43 CFR 46.215 that would require
                further analysis under NEPA.
                L. Effects on the Energy Supply (E.O. 13211)
                 This proposed rule is not a significant energy action under the
                definition in Executive Order 13211. A Statement of Energy Effects is
                not required.
                M. Clarity of This Regulation
                 We are required by Executive Orders 12866 (section 1(b)(12)), and
                12988 (section 3(b)(1)(B)), and 13563 (section 1(a)), and by the
                Presidential Memorandum of June 1, 1998, to write all rules in plain
                language. This means that each rule we publish must:
                 (a) Be logically organized;
                 (b) Use the active voice to address readers directly;
                 (c) Use clear language rather than jargon;
                 (d) Be divided into short sections and sentences; and,
                 (e) Use lists and tables wherever possible.
                [[Page 30656]]
                 If you feel that we have not met these requirements, send us
                comments by one of the methods listed in the ADDRESSES section. To
                better help us revise the rule, your comments should be as specific as
                possible. For example, you should tell us the numbers of the sections
                or paragraphs that are unclearly written, which sections or sentences
                are too long, the sections where you believe lists or tables would be
                useful, etc.
                N. Public Availability of Comments
                 Before including your address, phone number, email address, or
                other personal identifying information in your comment, you should be
                aware that your entire comment--including your personal identifying
                information--may be made publicly available at any time. While you can
                ask us in your comment to withhold your personal identifying
                information from public review, we cannot guarantee that we will be
                able to do so.
                V. Tribal Consultation
                 The JOM Modernization Act requires the Secretary to undertake and
                complete a rulemaking process, following the provisions of subchapter
                II of chapter 5 of title 5 of the United States Code, by December 31,
                2019. The BIE will be engaging in Tribal consultation and consultation
                with eligible entities and interested parties. Eligible entities
                include existing JOM contractors and potential JOM contractors,
                including States, public school districts, tribal organizations, Indian
                corporations, and previously private schools. Interested parties
                include, but are not limited to, JOM Indian Education Committee
                members, employees of public schools serving American Indian students,
                urban Indian communities, parents, and students.
                 BIE will be hosting a listening session for interested Tribal
                representatives on June 24, 2019, at the National Congress of American
                Indians (NCAI) Mid-Year Conference in Sparks, Nevada. The BIE will also
                conduct the following consultations, in locations across the country
                that reflect the greatest number of JOM contracts.
                ------------------------------------------------------------------------
                 Date Time Location
                ------------------------------------------------------------------------
                July 16, 2019............. 8 a.m.-10 a.m. (Local Sequoyah High School,
                 Time) Consultation 17091 S Muskogee
                 with Tribes. Ave., Tahlequah, OK
                 74464.
                July 16, 2019............. 1 p.m.-3 p.m. (Local Sequoyah High School,
                 Time) Consultation 17091 S Muskogee
                 with Eligible Ave., Tahlequah, OK
                 Entities. 74464.
                July 19, 2019............. 9:30 a.m.-11:30 a.m. Bismarck, ND--Please
                 (Local Time) check https://
                 Consultation with www.bie.edu/JOM for
                 Tribes. specific location.
                July 19, 2019............. 1 p.m.-3 p.m. (Local Bismarck, ND--Please
                 Time) Consultation check https://
                 with Eligible www.bie.edu/JOM for
                 Entities. specific location.
                July 23, 2019............. 9 a.m.-12 p.m. (MDT) Please see https://
                 Consultation with www.bie.edu/JOM for
                 Tribes. access information.
                July 23, 2019............. 1 p.m.-4 p.m. (MDT) Please see https://
                 Consultation with www.bie.edu/JOM for
                 Eligible Entities. access information.
                July 25, 2019............. 9 a.m.-12 p.m. (MDT) Please see https://
                 Consultation with www.bie.edu/JOM for
                 Tribes. access information.
                July 25, 2019............. 1 p.m.-4 p.m. (MDT) Please see https://
                 Consultation with www.bie.edu/JOM for
                 Eligible Entities. access information.
                ------------------------------------------------------------------------
                 You can find additional information at the BIE JOM web page at:
                https://www.bie.edu/JOM/.
                List of Subjects in 25 CFR Part 273
                 Government contracts, Indians--education, Reporting and
                recordkeeping requirements.
                0
                For the reasons set forth in the preamble, the Department of the
                Interior, Bureau of Indian Affairs, proposes to revise 25 CFR part 273
                as follows:
                PART 273--EDUCATION CONTRACTS UNDER JOHNSON-O'MALLEY ACT
                Subpart A--General Provisions and Definitions
                Sec.
                273.101 What is the purpose and scope of this part?
                273.102 How will revisions or amendments be made to this part?
                273.103 What is the Secretary's policy of maximum Indian
                participation?
                273.104 How will the Secretary extend geographic coverage and
                enhance participation under the Johnson-O'Malley Act?
                273.105 How do these regulations affect existing Tribal rights?
                273.106 What key terms do I need to know?
                Subpart B--Program Eligibility & Applicability
                273.110 Who is eligible to request contracts under the Johnson-
                O'Malley Act?
                273.111 How do the requirements for Tribal organizations differ from
                those for other eligible entities?
                273.112 Who is an eligible Indian student under the Johnson-O'Malley
                Act?
                273.113 How can the funds be used under the Johnson-O'Malley Act?
                273.114 What programs may be contracted under the Johnson-O'Malley
                Act?
                Subpart C--Indian Education Committee
                273.115 Who determines the unique educational needs of eligible
                Indian students?
                273.116 Does an Indian Education Committee need to establish
                procedures and report to the Director?
                273.117 What are the powers and duties of the Indian Education
                Committee?
                273.118 Are there additional authorities an Indian Education
                Committee can exercise?
                Subpart D--Education Plan
                273.119 What is an education plan and what must it include?
                273.120 Does an education plan need to be approved by the Regional
                Director?
                273.121 When does the Regional Director approve the education plan?
                Subpart E--Contract Proposal, Review and Approval
                273.125 How may a new contracting party request a contract under the
                Johnson-O'Malley Act?
                273.126 What proposals are eligible for contracts under the Johnson-
                O'Malley Act?
                273.127 Can a contract include funds to support the duties of an
                Indian Education Committee?
                273.128 How are contracts prioritized?
                273.129 May the Regional Director reimburse a public school district
                for educating non-resident Indian students?
                273.130 What is required in the contract proposal for funding?
                273.131 What is required for a Tribal request for a contract?
                273.132 Who will review and approve the contract proposal?
                273.133 What is the process for review and decision?
                273.134 What is the timeframe for contract decision?
                273.135 Who will negotiate the contract?
                Subpart F--Funding Provisions
                273.140 What is the funding formula to distribute funds?
                273.141 Will funding be pro-rated?
                [[Page 30657]]
                273.142 Are advance payments on a contract allowed under the
                Johnson-O'Malley Act?
                273.143 Must other Federal, State and local funds be used?
                273.144 Can Johnson-O'Malley funds be used for capital outlay or
                debt retirement?
                273.145 How can funds be used for subcontractors?
                273.146 Can funds be used outside of schools?
                273.147 Are there requirements of equal quality and standard of
                education?
                Subpart G--Annual Reporting Requirements
                273.150 Does an existing contracting party need to submit any
                reports?
                273.151 What information must the existing contracting party provide
                in the annual report?
                273.152 When is the annual report due?
                273.153 Who else needs a copy of the annual report?
                273.154 What will happen if the existing contracting party fails to
                submit an annual report?
                273.155 How will the existing contracting party know when reports
                are due?
                273.156 Will technical assistance be available to comply with the
                annual reporting requirements?
                273.157 What is the process for requesting technical assistance and/
                or training?
                273.158 When should the existing contracting party request technical
                assistance and/or training?
                273.159 If the existing contracting party reported a decrease of
                eligible Indian students, how will funding be reduced?
                273.160 Can the Secretary apply a ratable reduction in Johnson-
                O'Malley program funding?
                273.161 What is the maximum decrease in funding allowed?
                Subpart H--General Contract Requirements
                273.170 Are there special program provisions to be included in the
                contract?
                273.171 Can a contractor make changes to a program approved by an
                Indian Education Committee?
                273.172 May State employees enter Tribal lands, reservations or
                allotments?
                273.173 What procurement requirements apply to contracts?
                273.174 Are there any Indian preference requirements for contracts
                and subcontracts?
                273.175 How will a Tribal governing body apply Indian preference
                requirements for contracts and subcontracts?
                273.176 May there be a use and transfer of Government property?
                273.177 Who will provide liability and motor vehicle insurance?
                273.178 Are there contract recordkeeping requirements?
                273.179 Are there contract audit and inspection requirements?
                273.180 Are there disclosure requirements for contracts?
                273.181 Are there Privacy Act requirements for contracts?
                273.182 Are there penalties for misusing funds or property?
                273.183 Can the Secretary investigate a potential Civil Rights Act
                violation?
                Subpart I--Contract Renewal, Revisions, and Cancellations
                273.191 How may a contract be renewed for Johnson-O'Malley funding?
                273.192 What is required to renew a contract?
                273.193 May a contract be revised or amended?
                273.194 Does the Indian Education Committee have authority to cancel
                contracts?
                273.195 May a contract be cancelled for cause?
                Subpart J--Responsibility and Accountability
                273.201 What is required for the Secretary to meet his or her
                reporting responsibilities?
                273.202 Does this part include an information collection?
                Subpart K--Appeals
                273.206 May a contract be appealed?
                273.207 How does a contractor request dispute resolution?
                273.208 How does a Tribal organization request an appeal?
                273.209 How does a State, public school district or an Indian
                corporation request an appeal?
                 Authority: Secs. 201-203, Pub. L. 93-638, 88 Stat. 2203, 2213-
                2214 (25 U.S.C. 455-457), unless otherwise noted.
                Subpart A--General Provisions and Definitions
                Sec. 273.101 What is the purpose and scope of this part?
                 The purpose of this part is to set forth the process by which the
                Secretary will enter into contracts for the education of Indian
                students under the Johnson-O'Malley Act. Such contracts are for the
                purpose of financially assisting those efforts designed to meet the
                specialized and unique educational needs of eligible Indian students,
                including supplemental programs and school operational support, where
                such support is necessary to maintain established State educational
                standards.
                Sec. 273.102 How will revision or amendments be made to this part?
                 Prior to making any substantive revisions or amendments to this
                part, the Secretary will consult with Indian Tribes and national and
                regional Indian organizations to the extent practicable about the need
                for revision or amendment and will consider their views in preparing
                the proposed revision or amendment. Nothing in this section precludes
                Indian Tribes or national or regional Indian organizations from
                initiating a request for revisions or amendments.
                Sec. 273.103 What is the Secretary's policy of maximum Indian
                participation?
                 The meaningful participation in all aspects of educational program
                development and implementation by those affected by such programs is an
                essential requisite for success. Such participation not only enhances
                program responsiveness to the needs of those served, but also provides
                them with the opportunity to determine and affect the desired level of
                educational achievement and satisfaction which education can and should
                provide. Consistent with this concept, maximum Indian participation in
                the development, approval, and implementation of all programs
                contracted under this part is required.
                Sec. 273.104 How will the Secretary extend geographic coverage and
                enhance participation under the Johnson-O'Malley Act?
                 The Secretary will, to the extent practicable, and subject to the
                availability of appropriations, ensure full geographic coverage and the
                full participation of all federally recognized Tribes and school
                districts, regardless of whether the school districts had entered into
                a contract under the Johnson-O'Malley Act before fiscal year 1995.
                Sec. 273.105 How do these regulations affect existing Tribal rights?
                 Nothing in these regulations may be construed as:
                 (a) Affecting, modifying, diminishing, or otherwise impairing the
                sovereign immunity from suit enjoyed by an Indian Tribe;
                 (b) Authorizing or requiring the termination, waiving, modifying,
                or reducing of any existing trust responsibility of the United States
                with respect to the Indian people;
                 (c) Permitting significant reduction in services to Indian people
                as a result of this part; or
                 (d) Mandating an Indian Tribe to request a contract or contracts.
                Such requests are strictly voluntary.
                Sec. 273.106 What key terms do I need to know?
                 Terms used in this part:
                 Academic year means the period of the year during which students
                attend an educational institution.
                 Appeal means a request for an administrative review of an adverse
                Agency decision.
                 Approving official means the Regional Director, or Agency
                Superintendents (for Tribes assigned under their management), has the
                responsibility and
                [[Page 30658]]
                duties to review, approve or decline the contract in accordance with
                the Act.
                 Awarding official means any person who by appointment or delegation
                in accordance with applicable regulations has the authority to enter
                into and administer contracts on behalf of the United States of America
                and make determinations and findings with respect thereto. Pursuant to
                the Act, this person can be any Federal official, including but not
                limited to, contracting officers or awarding official technical
                representatives.
                 Bureau means the Bureau of Indian Education or Bureau of Indian
                Affairs, as applicable.
                 Calendar year means the period of 365 days (or 366 days in leap
                years) starting from January 1.
                 Capital outlay means money spent to acquire, maintain, repair, or
                upgrade capital asset. Capital assets, also known as fixed assets, may
                include machinery, land, facilities, or other business necessities that
                are not expended during normal use.
                 Contract means to transfer the funds in support of the efforts
                designed to meet the specialized and unique educational needs of Indian
                students in the Johnson-O'Malley program from the Federal Government to
                the contractor.
                 Contracting party means an entity that has a contract through a
                program authorized under the Johnson-O'Malley Act.
                 Contractor means any Tribal organization, State, school district,
                or Indian corporation to which a contract has been awarded.
                 Days means calendar days; except where a date specified in these
                regulations falls on a Saturday, Sunday, or a Federal holiday, the
                period will carry over to the next business day.
                 Debt retirement means the act of paying off debt completely to a
                lender.
                 Director means the Director of the Bureau of Indian Education or
                Bureau of Indian Affairs, as applicable.
                 Economic enterprise means any commercial, industrial, agricultural,
                or business activity that is at least 51 percent Indian owned,
                established or organized for the purpose of profit.
                 Education plan means a comprehensive plan for the programmatic and
                fiscal services of and accountability by a contractor for the education
                of eligible Indian students.
                 Eligible entity means a Tribal organization, State, public school
                district, or Indian corporation is eligible to request a contract for a
                supplemental or operational support program under this Act. For
                purposes of this part, previously private schools are considered Tribal
                organizations.
                 Existing contracting party means a contracting party that has a
                contract under this Act that is in effect on the date of the JOM
                Modernization Act (Pub. L. 115-404), enacted December 31, 2018.
                 Fiscal year means the period used by the Bureau for accounting and
                budget purposes. The Bureau's fiscal year begins October 1 and ends
                September 30.
                 Indian means a person who is a member of an Indian Tribe.
                 Indian Advisory School Board means an Indian advisory school board
                established pursuant to 25 U.S.C. 5342-5347 prior to January 4, 1975.
                 Indian corporation means a legally established organization of
                Indians chartered under State or Federal law and which is not included
                within the definition of ``Tribal organization''.
                 Indian Education Committee means one of the entities specified by
                Sec. 273.115.
                 Indian Tribe means any Indian Tribe, band, nation, rancheria,
                pueblo, colony or community, including any Alaska Native village or
                regional or village corporation as defined in or established pursuant
                to the Alaska Native Claims Settlement Act (85 Stat. 688) which is
                federally recognized as eligible by the U.S. Government through the
                Secretary for the special programs and services provided by the
                Secretary to Indians because of their status as Indians.
                 Initial contract proposal and contract proposal means a proposal
                for education contracts under the Johnson-O'Malley Act for the purpose
                of financially assisting those efforts designed to meet the specialized
                and unique educational needs of eligible Indian students, including
                programs supplemental to the regular school program and school
                operational support, where such support is necessary to maintain
                established State educational standards.
                 Johnson-O'Malley Act means the Act of April 16, 1934 (48 Stat.
                596), as amended by the Act of June 4, 1936 (49 Stat. 1458, 25 U.S.C.
                452-456), and by the Act of January 4, 1975 (88 Stat. 2203), and
                further amended by the Johnson-O'Malley Supplemental Indian Education
                Program Modernization Act (Pub. L. 115-404), enacted December 31, 2018
                (JOM Modernization Act).
                 Local Indian Committee means any committee established pursuant to
                20 U.S.C. 7424(c)(4), which provides that the committee may be composed
                of and selected by parents and family member of Indian children;
                representatives of Indian Tribes or Indian lands; teachers in the
                schools; and if appropriate, Indian students attending secondary
                schools.
                 New contracting party means an entity that enters into a contract
                under this Act after the date of enactment of the JOM Modernization Act
                (Pub. L. 115-404), enacted December 31, 2018.
                 Operational support means those expenditures for school operational
                costs in order to meet established State educational standards or
                Statewide requirements and as specified in Sec. 273.126.
                 Previously private school means a school (other than a Federal
                school formerly operated by the Bureau) that is operated primarily for
                Indian students from age 3 years through grades 12; and, which at the
                time of application is controlled, sanctioned, or chartered by the
                government body(s) of an Indian Tribe(s).
                 Public school district means a school district that (a) serves
                public elementary schools or public secondary schools; and (b) has
                established or will establish local committees or is using a committee
                or Indian advisory school board to approve supplementary or operational
                support programs beneficial to Indian students.
                 Regional Director means the Bureau of Indian Affairs Regional
                Director or Bureau of Indian Education Associate Deputy Director, as
                applicable.
                 Reservation or Indian reservation means any Indian Tribe's
                reservation, pueblo, colony, or rancheria, including former
                reservations in Oklahoma, Alaska Natives regions established pursuant
                to the Alaska Native Claims Settlement Act (85 Stat. 688), and Indian
                allotments.
                 School district or local education agency means that subdivision of
                the State which contains the public elementary and secondary
                educational institutions providing educational services and is
                controlled by a duly elected board, commission, or similarly
                constituted assembly.
                 Scope of work means a framework document that will outline the work
                that will be performed under a contract and detail the expectations for
                the Johnson-O'Malley program.
                 Secretary means the Secretary of the Interior.
                 State means each of the 50 States, the District of Columbia, the
                Commonwealth of Puerto Rico and each of the outlying areas, or any
                political subdivision of the 50 States.
                 School official or school administrator means a person employed by
                the school in an administration, supervisory, academic, or support
                staff position.
                [[Page 30659]]
                 Supplemental program means a program designed to meet the
                specialized and unique educational needs of eligible Indian students
                that may have resulted from socio-economic conditions of the parents,
                from cultural or language differences or other factors. Programs may
                also provide academic assistance to Indian students for the improvement
                of student learning, increase the quality of instruction, and as
                provided by Sec. 273.143(b).
                 System of record means a system of record that contains information
                that is retrieved by an individual name or other unique identifiers.
                 Tribal government, Tribal governing body and Tribal Council means
                the recognized governing body of an Indian Tribe.
                 Tribal organization means the recognized governing body of any
                Indian Tribe or any legally established organization of Indians or
                Tribes which is controlled, sanctioned, or chartered by such governing
                body or bodies, or which is democratically elected by the adult members
                of the Indian community to be served by such organization and which
                includes the maximum participation of Indians in all phases of its
                activities.
                Subpart B--Program Eligibility & Applicability
                Sec. 273.110 Who is eligible to request contracts under the Johnson-
                O'Malley Act?
                 The following entities are eligible to enter into an education
                contract under the Johnson-O'Malley Act for the purpose of financially
                assisting efforts designed to meet the specialized and unique
                educational needs of eligible Indian students, including supplemental
                programs and school operational support, where such support is
                necessary to maintain established State educational standards:
                 (a) Tribal organizations;
                 (b) States;
                 (c) Public school districts that:
                 (1) Serve public elementary schools or public secondary schools;
                and
                 (2) Have a local school board composed of a majority of Indians or
                have established or will establish an Indian Education Committee, as
                described in Sec. 273.115 to approve supplementary or operational
                support programs beneficial to Indian students; and
                 (d) Indian corporations.
                Sec. 273.111 How do the requirements for Tribal organizations differ
                from those for other eligible entities?
                 (a) States, public school districts, or Indian corporations must
                comply with the requirements in this part.
                 (b) The requirements of this part apply to Tribal organizations,
                except that Tribal organizations do not need to comply with:
                 (1) Sec. 273.113, regarding how funds can be used under the
                Johnson O'Malley Act;
                 (2) Sec. Sec. 273.120-273.121, regarding approval of an education
                plan by the Director;
                 (3) Sec. 273.125, regarding entering into a contract as a new
                contracting party;
                 (4) Sec. Sec. 273.132-273.135, regarding review, approval, and
                negotiation of the contract;
                 (5) Sec. 273.142, regarding advance payments;
                 (6) Any section in subpart H--General Contract Requirements (other
                than the following sections, which still apply: Sec. 273.170,
                regarding special program provisions to be included in a contract,
                Sec. 273.172, regarding State employees' access to Tribal lands,
                reservations or allotments, and Sec. 273.182, regarding penalties for
                misusing funds or property);
                 (7) Any section in subpart I--Contract Renewal, Revisions, and
                Cancellations (other than Sec. 273.194, regarding the Indian Education
                Committee's authority to revoke contracts, which still applies);
                 (8) Any section in Subpart K--Appeals (other than Sec. 273.208).
                 (c) The contract proposal submitted by the Tribal organization must
                meet the requirements in part 900 of this chapter, in addition to those
                in Sec. 273.130. The requirements in part 900 of this chapter apply to
                contracts with Tribal organizations, except for the provisions in
                Sec. Sec. 900.240 through 900.256 of this chapter concerning
                retrocession and reassumption of programs. If a Tribal organization
                retrocedes a contract, the Bureau will then contract with a State,
                public school district, or Indian corporation for the supplemental
                programs or operational support.
                Sec. 273.112 Who is an eligible Indian student under the Johnson-
                O'Malley Act?
                 An Indian student is eligible for benefits provided by a Johnson
                O'Malley contract if the student is:
                 (a) From age three (3) years through grade(s) twelve (12);
                 (b) Is not enrolled in a Bureau or sectarian operated school; and
                 (c) Is either:
                 (1) At least one-fourth (\1/4\) degree Indian blood descendant of a
                member of a federally recognized Indian Tribe; or
                 (2) A member of a federally recognized Tribe.
                Sec. 273.113 How can the funds be used under the Johnson-O'Malley
                Act?
                 An eligible entity may use the funds available under the contract
                to provide educational benefits to eligible Indian students to:
                 (a) Carry out programs or expand programs in existence before the
                contract period that provide:
                 (1) Remedial instruction, counseling, and cultural programs;
                 (2) Selected courses related to the academic and professional
                disciplines; or
                 (3) Important needs, such as school supplies and items that enable
                recipients to participate in curricular and extra-curricular programs;
                 (b) Establish targeted and culturally sensitive dropout prevention
                activities; and
                 (c) Purchase equipment to facilitate training for professional
                trade skills and intensified college preparation programs.
                Sec. 273.114 What programs may be contracted under the Johnson-
                O'Malley Act?
                 All programs contracted under this part must:
                 (a) Be developed and approved in full compliance with the powers
                and duties of the Indian Education Committee and as may be contained in
                the Committee's organizational documents and bylaws.
                 (b) Be included as a part of the education plan.
                Subpart C--Indian Education Committee
                Sec. 273.115 Who determines the unique educational needs of eligible
                Indian students?
                 When a school district to be affected by a contract(s) for the
                education of Indians has a local school board composed of a majority of
                Indians, the local school board may act as the Indian Education
                Committee; otherwise, the parents of Indian children may elect an
                Indian Education Committee from among their number or a Tribal
                governing body(ies) of the Indian Tribe(s) affected by the contract(s)
                may specify one of the following entities to serve as the Indian
                Education Committee:
                 (a) A Local Indian Committee or Committees; or
                 (b) An Indian Advisory School Board or Boards.
                Sec. 273.116 Does an Indian Education Committee need to establish
                procedures and report to the Regional Director?
                 The Indian Education Committee and its members must establish
                procedures under which the Committee serves. Such procedures must be
                set forth in the Committee's organizational documents and by-laws.
                 (a) Each Committee must file a copy of its organizational documents
                and by-
                [[Page 30660]]
                laws with the Regional Director, together with a list of its officers
                and members.
                 (b) The existence of an Indian Education Committee may not limit
                the continuing participation of the rest of the Indian community in all
                aspects of programs contracted under this part.
                Sec. 273.117 What are the powers and duties of the Indian Education
                Committee?
                 Consistent with the purpose of the Indian Education Committee, each
                such Committee is vested with the authority to undertake the activities
                in paragraphs (a) through (d) of this section.
                 (a) Participate fully in the planning, development, implementation,
                and evaluation of all programs, including both supplemental and
                operational support, conducted under a contract or contracts pursuant
                to this part. Such participation includes further authority to:
                 (1) Recommend curricula, including texts, materials, and teaching
                methods to be used in the contracted program or programs;
                 (2) Approve budget preparation and execution;
                 (3) Recommend criteria for employment in the program;
                 (4) Nominate a reasonable number of qualified prospective
                educational programmatic staff members from which the contractor would
                be required to select; and
                 (5) Evaluate staff performance and program results and recommend
                appropriate action to the contractor.
                 (b) Approve and disapprove all programs to be contracted under this
                part. All programs contracted require the prior approval of the
                appropriate Indian Education Committee.
                 (c) Secure a copy of the negotiated contract(s) that includes the
                program(s) approved by the Indian Education Committee.
                 (d) Recommend to the Director through the appropriate awarding
                official cancellation or suspension of a contract(s) that contains the
                program(s) approved by the Indian Education Committee if the contractor
                fails to permit the Committee to exercise its powers and duties.
                Sec. 273.118 Are there additional authorities an Indian Education
                Committee can exercise?
                 The organizational papers and by-laws of the Indian Education
                Committee may include additional powers and duties that would permit
                the Committee to:
                 (a) Participate in negotiations concerning all contracts;
                 (b) Make an annual assessment of the learning needs of Indian
                children in the community affected;
                 (c) Have access to all reports, evaluations, surveys, and other
                program and budget related documents determined necessary by the
                Committee to carry out its responsibilities, subject only to the
                provisions of Sec. 273.180;
                 (d) Request periodic reports and evaluations regarding the Indian
                education program;
                 (e) Establish a local grievance policy and procedures related to
                programs in the education plan;
                 (f) Meet regularly with the professional staff serving Indian
                children and with the local education agency;
                 (g) Hold committee meetings on a regular basis which are open to
                the public; and
                 (h) Have such additional powers as are consistent with these
                regulations.
                Subpart D--Education Plan
                Sec. 273.119 What is an education plan and what must it include?
                 A prospective contractor in consultation with its Indian Education
                Committee(s) must formulate an education plan that contains educational
                objectives that adequately address the educational needs of the Indian
                students and assures that the contract is capable of meeting such
                objectives. The education plan must contain:
                 (a) The education programs developed and approved by the Indian
                Education Committee(s);
                 (b) Educational goals and objectives that adequately address the
                educational needs of the Indian students to be served by the contract;
                 (c) Procedures for addressing hearing grievances from Indian
                students, parents, guardians, community members, and Tribal
                representatives relating to the program(s) contracted. Such procedures
                must provide for adequate advance notice of the hearing;
                 (d) Established State standards and requirements that must be
                maintained in operating the contracted programs and services;
                 (e) A description of how the State standards and requirements will
                be maintained;
                 (f) A requirement that the contractor comply in full with the
                requirements concerning meaningful participation by the Indian
                Education Committee;
                 (g) A requirement that education facilities receiving funds be open
                to visits and consultations by the Indian Education Committee(s),
                Tribal representatives, Indian parents and guardians in the community,
                and by duly authorized representatives of the Federal and State
                Governments;
                 (h) An outline of administrative and fiscal management procedures
                to be used by the contractor;
                 (i) Justification for requesting funds for operational support. The
                public school district must establish in its justification that it
                meets the requirements given in Sec. 273.126(b). The information given
                should include records of receipt of local, State, and Federal funds;
                 (j) Budget estimates and financial information needed to determine
                program costs to contract for services. This includes, but is not
                limited to, the following:
                 (1) State and district average operational cost per pupil;
                 (2) Other sources of Federal funding the applicant is receiving,
                the amount received from each, the programs being funded, and the
                number of eligible Indian students served by such funding;
                 (3) Administrative costs involved, total number of employees, and
                total number of Indian employees;
                 (4) Costs that parents normally are expected to pay for each
                school;
                 (5) Supplemental and operational funds outlined in a separate
                budget, by line item, to facilitate accountability; and
                 (6) Total number of employees for each special program and number
                of Indian employees for that program;
                 (k) The total enrollment of school or district, by age and grade
                level;
                 (l) The eligible Indian enrollment--total and classification by
                Tribal affiliation(s) and by age and grade level;
                 (m) The total number of school board members and number of Indian
                school board members;
                 (n) Government equipment needed to carry out the contract;
                 (o) The period of contract term requested;
                 (p) The signature of the authorized representative of applicant;
                and
                 (q) Written information regarding:
                 (1) Program goals and objectives related to the learning needs of
                potential target students;
                 (2) Procedures and methods to be used in achieving program
                objectives, including ways whereby parents, students and communities
                have been involved in determining needs and priorities;
                 (3) Overall program implementation including staffing practices,
                parental and community involvement, evaluation of program results, and
                dissemination thereof; and
                 (4) Determination of staff and program effectiveness in meeting the
                stated needs of target students.
                [[Page 30661]]
                Sec. 273.120 Does an education plan need to be approved by the
                Regional Director?
                 The Secretary will not enter into any contract for the education of
                Indians unless:
                 (a) The contractor has submitted an education plan to the Regional
                Director; and
                 (b) The Regional Director has determined that the education plan
                contains educational objectives that adequately address the educational
                needs of the Indian students who are to be beneficiaries of the
                contract, and that the contract is capable of meeting such objectives.
                Sec. 273.121 When does the Regional Director approve the education
                plan?
                 The Regional Director approves the education plan when a contractor
                submits a contract proposal for funding.
                Subpart E--Contract Proposal, Review, and Approval
                Sec. 273.125 How may a new contracting party request a contract under
                the Johnson-O'Malley Act?
                 Subject to the availability of appropriations, eligible entities
                who have not previously entered into a contract for the Johnson-
                O'Malley program may submit an initial contract proposal.
                Sec. 273.126 What proposals are eligible for contracts under the
                Johnson-O'Malley Act?
                 (a) Any proposal to contract for funding a supplemental program
                will be considered an eligible proposal.
                 (b)(1) To contract for operational support, a public school
                district is required to establish in the proposal that it:
                 (i) Cannot meet the applicable minimum State standards or
                requirements without such funds;
                 (ii) Has made a reasonable tax effort with a mill levy at least
                equal to the State average in support of educational programs;
                 (iii) Has fully utilized all other sources of financial aid,
                including all forms of State aid and Public Law 874 payments, and the
                State aid contribution per pupil is at least equal to the State
                average;
                 (iv) Has at least 70 percent eligible Indian enrollment;
                 (v) Has clearly identified the educational needs of the students
                intended to benefit from the contract;
                 (vi) Has made a good faith effort in computing State and local
                contributions without regard to contract funds pursuant to this part;
                and
                 (vii) Will not budget or project a deficit by using contract funds
                pursuant to this part.
                 (2) The requirements given in paragraph (b)(1) of this section do
                not apply to previously private schools.
                Sec. 273.127 Can a contract include funds to support the duties of an
                Indian Education Committee?
                 Programs developed or approved by the Indian Education Committee
                may, at the option of such Committee, include funds for the performance
                of Committee duties to include:
                 (a) Members' attendance at regular and special meetings, workshops
                and training sessions, as the Committee deems appropriate.
                 (b) Other reasonable expenses incurred by the Committee in
                performing its primary duties, including the planning, development,
                implementation and evaluation of the program.
                Sec. 273.128 How are contracts prioritized?
                 Priority will be given to contracts:
                 (a) Which would serve Indian students on or near reservations; and
                 (b) Where a majority of the Indian students will be members of the
                Tribe(s) of those reservations.
                Sec. 273.129 May the Regional Director reimburse a public school
                district for educating non-resident Indian students?
                 The Regional Director may consider a contract proposal to reimburse
                a public school district for the full per capita costs of educating
                Indian students who meet all of the following:
                 (a) Are members of recognized Indian Tribes;
                 (b) Do not normally reside in the State in which the school
                district is located; and
                 (c) Are residing in Federal boarding facilities for the purpose of
                attending public schools within the school district.
                Sec. 273.130 What is required in the contract proposal for funding?
                 A contract proposal must be in writing and contain the following:
                 (a) Name, address, and telephone number of the proposed contractor;
                 (b) Name, address, and telephone number of the Tribe(s) to be
                served by the contract;
                 (c) Descriptive narrative of the contract proposal;
                 (d) The education plan approved by the Indian Education Committee;
                 (e) A separate budget outlining the Johnson-O'Malley funds for
                operational support and/or supplemental programs, by line item, to
                facilitate accountability;
                 (f) A clear identification of what educational needs the Johnson-
                O'Malley funds requested for operational support will address; and
                 (g) Documentation of the requirements for operational support in
                Sec. 273.126(b)(1).
                Sec. 273.131 What is required for a Tribal request for a contract?
                 (a) An Indian Tribal governing body that desires that a contract be
                entered into with a Tribal organization must notify the Regional
                Director.
                 (b) The Tribal governing body has the option to contract with the
                State, public school district, or Indian corporation.
                Sec. 273.132 Who will review and approve the contract proposal?
                 Each approving official within each Bureau Region is authorized to
                approve the contract(s) submitted by the State, public school district,
                or Indian corporation to provide services to Indian children within
                that approving official's region.
                Sec. 273.133 What is the process for review and decision?
                 Upon receiving a contract proposal, the approving official will:
                 (a) Notify the applicant in writing that the contract proposal has
                been received, within 14 days after receiving the contract proposal.
                 (b) Review the contract proposal for completeness and request,
                within 20 days after receiving the contract proposal, any additional
                information from the applicant which will be needed to reach a
                decision.
                 (c) On receiving the contract proposal for operational support,
                make a formal written determination and findings supporting the need
                for such funds. In arriving at such a determination, the approving
                official must be assured that each local education agency has made a
                good faith effort in computing State and local contributions without
                regard to funds requested.
                 (d) Assess the completed contract proposal to determine if the
                proposal is feasible and if the proposal complies with the appropriate
                requirements of the Johnson-O'Malley Act and this part.
                 (e) Approve or disapprove the contract proposal after fully
                reviewing and assessing the application and any additional information
                submitted by the applicant.
                 (f) Promptly notify the applicant in writing of the decision to
                approve or disapprove the contract proposal.
                 (g) If the contract proposal is disapproved, the notice will give
                the reasons for disapproval and the applicant's right to appeal
                pursuant to Subpart K of this part.
                [[Page 30662]]
                Sec. 273.134 What is the timeframe for contract decision?
                 The approving official will approve or disapprove the contract
                proposal within 90 days after the approving official receives the
                contract proposal and any additional information requested. The
                approving official may extend the 90-day deadline after obtaining the
                written consent of the applicant.
                Sec. 273.135 Who will negotiate the contract?
                 After the approving official has approved the contract proposal,
                the awarding official, assisted by Bureau education personnel, will
                negotiate the contract.
                Subpart F--Funding Provisions
                Sec. 273.140 What is the funding formula to distribute funds?
                 Funds will be distributed to contractors based upon a funding
                formula. The funding formula is calculated using data obtained by the
                Department of Education from the previous year.
                 (a) The funding formula to determine the funding to be distributed
                to each contractor is the Weight Factor multiplied by the number of
                eligible Indian students, where the Weight Factor is:
                 (1) The State average cost per pupil count divided by the national
                average cost per pupil count; or
                 (2) A default weight factor of 1.3, if the calculation in paragraph
                (a)(1) of this section results in a weight factor of less than 1.3.
                 (b) Notwithstanding any other provisions of the law, Federal funds
                appropriated for the purpose will be allotted pro rata in accordance
                with the distribution method outlined in this formula.
                 (c) For four fiscal years following the date of enactment of the
                JOM Modernization Act (December 31, 2018):
                 (1) Existing contractors will not receive an amount that is less
                than the amount received for Fiscal Year 2017 (the fiscal year
                preceding the date of enactment of the JOM Modernization Act), unless:
                 (i) The existing contractor fails to submit a complete annual
                report;
                 (ii) The Secretary has found that the existing contractor has
                violated the terms of a contract under this part; or
                 (iii) The number of eligible students reported in the annual report
                has decreased below the number of eligible students served by the
                existing contractor in Fiscal Year 2017 (the fiscal year preceding the
                date of enactment of the JOM Modernization Act). (2) Paragraph
                (c)(1)(iii) of this section notwithstanding, no existing contractor
                will receive an amount of funding per eligible student that is less
                than the amount of funding per eligible Indian student that the
                existing contractor received for Fiscal Year 2017 (the fiscal year
                preceding the enactment of the JOM Modernization Act).
                 (d) Beginning December 31, 2022 (4 years after the December 31,
                2018, date of enactment of the JOM Modernization Act), no contracting
                party will receive for a fiscal year more than a 10 percent decrease in
                funding per eligible Indian student from the previous year.
                Sec. 273.141 Will funding be prorated?
                 All monies provided by a contract may be expended only for the
                benefit of eligible Indian students. Where students other than eligible
                Indian students participate in programs contracted, money expended
                under the contract will be prorated to cover the participation of only
                the eligible Indian students, except where the participation of non-
                eligible students is so incidental as to be de minimis. Such de minimis
                participation must be approved by the Indian Education Committee.
                Sec. 273.142 Are advance payments on a contract allowed under the
                Johnson-O'Malley Act?
                 Payments to States, public school districts and Indian corporations
                will be made in advance or by way of reimbursement and in such
                installments and on such conditions as the Regional Director deems
                necessary to carry out the purposes of the Act.
                Sec. 273.143 Must other Federal, State and local funds be used?
                 (a) Contract funds under this part supplement, and do not supplant,
                Federal, State and local funds. Each contract must require that the use
                of these contract funds will not result in a decrease in State, local,
                or Federal funds that would be made available for Indian students if
                there were no funds under this part.
                 (b) State, local and other Federal funds must be used to provide
                comparable services to non-Indian and Indian students prior to the use
                of contract funds.
                 (c) Except as hereinafter provided, the school lunch program of the
                United States Department of Agriculture (USDA) constitutes the only
                federally funded school lunch program for Indian students in public
                schools. Where Indian students do not qualify to receive free lunches
                under the National School Lunch Program of USDA because such students
                are non-needy and do not meet the family size and income guidelines for
                free USDA lunches, plans prepared pursuant to Sec. 273.119 may
                provide, to the extent of funding available for Johnson-O'Malley
                programs, for free school lunches for those students who do not qualify
                for free USDA lunches but who are eligible students under Sec.
                273.112.
                Sec. 273.144 Can Johnson-O'Malley funds be used for capital outlay or
                debt retirement?
                 In no instance may contract funds provided under this part be used
                as payment for capital outlay or debt retirement expenses; except that,
                such costs are allowable if they are considered to be a part of the
                full per capita cost of educating eligible Indian students who reside
                in Federal boarding facilities for the purpose of attending public
                schools.
                Sec. 273.145 How can funds be used for subcontractors?
                 The Bureau may make contract funds under the Johnson-O'Malley Act
                available directly only to Tribal organizations, States, public school
                districts, and Indian corporations. However, Tribal organizations,
                States, public school districts, and Indian corporations receiving
                funds may use the funds to subcontract for necessary services with any
                appropriate individual, organization, or corporation.
                Sec. 273.146 Can funds be used outside of schools?
                 Nothing in this part prevents the Regional Director from
                contracting with Indian corporations who will expend all or part of the
                funds in places other than the public or private schools in the
                community affected.
                Sec. 273.147 Are there requirements of equal quality and standard of
                education?
                 Contracts with State education agencies or public school districts
                receiving funds must provide educational opportunities to all Indian
                children within that school district on the same terms and under the
                same conditions that apply to all other students as long as it will not
                affect the rights of eligible Indian children to receive benefits from
                the supplemental programs. Public school districts receiving funds must
                ensure that Indian children receive all aid from the State, and proper
                sources other than the Johnson-O'Malley contract, which other schools
                in the district and other school districts similarly situated in the
                State are entitled to receive. In no instance may there be
                discrimination against Indians or the schools enrolling Indians.
                [[Page 30663]]
                Subpart G--Annual Reporting Requirements
                Sec. 273.150 Does an existing contracting party need to submit any
                reports?
                 Each existing contracting party must submit an annual report based
                on the JOM funding received and other contract-related reports as
                required by the Regional Director.
                Sec. 273.151 What information must the existing contracting party
                provide in the annual report?
                 Existing contracting parties who receive Johnson-O'Malley funding
                must submit the following information in the annual report:
                 (a) General information about the contractor;
                 (b) General information about the number and names of the schools;
                 (c) The number of eligible Indian students who were served using
                amounts allocated under the contract during the previous fiscal year;
                 (d) An accounting of the amounts and purposes for which the
                contract funds were expended;
                 (e) Information on the conduct of the program;
                 (f) A quantitative evaluation of the effectiveness of the contract
                program in meeting the stated objectives contained in the educational
                plans; and
                 (g) A complete accounting of actual receipts at the end of the
                fiscal year for which the contract funds were expended.
                Sec. 273.152 When is the annual report due?
                 All existing contracting parties must submit the annual report to
                the awarding official on or before September 15 of each year and
                covering the previous academic year.
                Sec. 273.153 Who else needs a copy of the annual report?
                 All existing contracting parties must send copies of the annual
                reports to the Indian Education Committee(s) and to the Tribe(s) under
                the contract at the same time as the reports are sent to the awarding
                official.
                Sec. 273.154 What will happen if the existing contracting party fails
                to submit an annual report?
                 Any existing contracting party that fails to submit the annual
                report will receive no amounts under this Act for the fiscal year
                following the academic year for which the annual report should have
                been submitted.
                Sec. 273.155 How will the existing contracting party know when
                reports are due?
                 The awarding official will provide existing contracting parties
                with timely information relating to:
                 (a) Initial and final reporting deadlines; and
                 (b) The consequences of failure to comply.
                Sec. 273.156 Will technical assistance be available to comply with
                the annual reporting requirements?
                 The Bureau will provide technical assistance and training on
                compliance with the reporting requirements to existing contracting
                parties. The Bureau will provide such technical assistance and training
                on an ongoing and timely basis.
                Sec. 273.157 What is the process for requesting technical assistance
                and/or training?
                 (a) Existing contracting parties may request technical assistance
                and/or training by addressing the request in writing to the Regional
                Director.
                 (b) The Regional Director, or designee, will acknowledge receipt of
                a request for technical assistance and/or training.
                 (c) No later than 30 days after receiving the original request, the
                Regional Director will identify a point of contact and begin the
                process of providing technical assistance and/or training. The Regional
                Director and requesting contracting party will work together to
                identify the form, substance, and timeline for the assistance.
                Sec. 273.158 When should the existing contracting party request
                technical assistance and/or training?
                 The existing contracting party is encouraged to request technical
                assistance and/or training before annual reporting requirements are due
                in order to avoid the consequences for failure to comply.
                Sec. 273.159 If the existing contracting party reported a decrease of
                eligible Indian students, how will funding be reduced?
                 Except as provided in Sec. 273.140(c)-(d) of this part, for four
                fiscal years following the date of enactment of the JOM Modernization
                Act (December 31, 2018) an existing contracting party's funding will
                not be reduced to a level that is less than the amount of funding per
                eligible Indian student that the existing contracting party received
                for Fiscal Year 2017 (the fiscal year preceding the date of enactment
                of the Johnson-O'Malley Modernization Act).
                Sec. 273.160 Can the Secretary apply a ratable reduction in Johnson-
                O'Malley program funding?
                 If the funds available under the Johnson-O'Malley Act for a fiscal
                year are insufficient to pay the full amounts that all existing
                contracting parties are eligible to receive under for the fiscal year,
                the Secretary will ratably reduce those amounts for the fiscal year.
                Sec. 273.161 What is the maximum decrease in funding allowed?
                 Beginning December 31, 2022 (4 years after the December 31, 2018,
                date of enactment of the JOM Modernization Act), no contracting party
                may receive for a fiscal year more than a 10 percent decrease in
                funding per eligible Indian student from the previous fiscal year.
                Subpart H--General Contract Requirements
                Sec. 273.170 What special program provisions must be included in the
                contract?
                 All contracts must contain the following:
                 (a) The education plan approved by the Indian Education
                Committee(s);
                 (b) Any formal written determination and findings made by the
                Regional Director supporting the need for operational support as
                required by Sec. 273.133(c); and
                 (c) A provision that State, local, and other Federal Funds will be
                used to provide comparable services to non-Indian and Indian students
                prior to the use of Johnson-O'Malley funds for the provision of
                supplementary program services to Indian children, as required in Sec.
                273.143(b).
                Sec. 273.171 Can a contractor make changes to a program approved by
                an Indian Education Committee?
                 No program contracted may be changed from the time of its original
                approval by the Indian Education Committee to the end of the contract
                period without the prior approval, in writing, of the Indian Education
                Committee.
                Sec. 273.172 May State employees enter Tribal lands, reservations or
                allotments?
                 In those States where Public Law 83-280 (18 U.S.C. 1162 and 28
                U.S.C. 1360) do not confer civil jurisdiction, State employees may be
                permitted to enter upon Indian Tribal lands, reservations, or
                allotments in an official capacity in connection with a contract under
                this part if the duly constituted governing body of the Tribe adopts a
                resolution of consent for the following purposes:
                 (a) Inspecting school conditions in the public schools located on
                Indian Tribal lands, reservations, or allotments; or
                 (b) Enforcing State compulsory school attendance laws against
                Indian children, parents or persons standing in loco parentis.
                [[Page 30664]]
                Sec. 273.173 What procurement requirements apply to contracts?
                 States, public school districts, or Indian corporations wanting to
                contract with the Bureau must comply with the applicable requirements
                in the Federal Acquisition Regulations at 48 CFR part 1.
                Sec. 273.174 Are there any Indian preference requirements for
                contracts and subcontracts?
                 (a) Any contract made with a State, public school district, or
                Indian corporation for the benefit of Indian students must require that
                the contractor, to the greatest extent feasible:
                 (1) Give preference in and opportunities for employment and
                training to Indians in connection with the administration of such
                contract(s); and
                 (2) Give preference in the award of subcontracts to Indian
                organizations and Indian-owned economic enterprises.
                 (b) All subcontractors employed by the contractor must, to the
                extent possible, give preference to Indians for employment and training
                and must include in their bid submission a plan to achieve maximum use
                of Indian personnel.
                Sec. 273.175 How will a Tribal governing body apply Indian preference
                requirements for contracts and subcontracts?
                 A Tribal governing body may develop its own Indian preference
                requirements for its contracts and subcontracts.
                Sec. 273.176 May there be a use and transfer of Government property?
                 (a) The use of Government-owned facilities for school purposes may
                be authorized when not needed for Government activities. Transfer of
                title to such facilities (except land) may be arranged under the
                provisions of the Act of June 4, 1953 (67 Stat. 41) subject to the
                approval of the Tribal government if such property is located on a
                reservation.
                 (b) In carrying out a contract, the Regional Director may, with the
                approval of the Tribal government, permit a contractor to use existing
                buildings, facilities, and related equipment and other personal
                property owned by the Bureau within its jurisdiction under terms and
                conditions agreed upon for their use and maintenance. The property at
                the time of transfer must conform to the minimum standards established
                by the Occupational Safety and Health Act of 1970 (84 Stat. 1590), as
                amended (29 U.S.C. 651). Use of Government property is subject to the
                following conditions:
                 (1) When nonexpendable Government property is turned over to public
                school authorities or Indian corporations under a use permit, the
                permittee must insure such property against damage by flood, fire,
                rain, windstorm, vandalism, snow, and tornado in amounts and with
                companies satisfactory to the Federal officer in charge of the
                property. In case of damage or destruction of the property by flood,
                fire, rain, windstorm, vandalism, snow, or tornado, the insurance money
                collected may be expended only for repair or replacement of property.
                Otherwise, insurance proceeds must be paid to the Bureau.
                 (2) If the public school authority is self-insured and can present
                evidence of that fact to the Regional Director, insurance for lost or
                damaged property will not be required. However, the public school
                authority will be responsible for replacement of such lost or damaged
                property at no cost to the Government or for paying the Government
                enough to replace the property.
                 (3) The permittee will maintain the property in a reasonable state
                of repair consistent with the intended use and educational purposes.
                 (c) The contractor may have access to existing Bureau records
                needed to carry out a contract under this part, as follows:
                 (1) The Bureau will make the records available subject to the
                provisions of the Freedom of Information Act (5 U.S.C. 552), as amended
                by the Act of November 21, 1974 (Pub. L. 93-502, 88 Stat. 1561).
                 (2) The contractor may have access to needed Bureau records at the
                appropriate Bureau office for review and making copies of selected
                records.
                 (3) If the contractor needs a small volume of identifiable Bureau
                records, the Bureau will furnish the copies to the contractor.
                Sec. 273.177 Who will provide liability and motor vehicle insurance?
                 (a) States, school districts, and Indian corporations must obtain
                public liability insurance under contracts entered into with the
                Bureau, unless the Bureau approving official determines that the risk
                of death, personal injury or property damage under the contract is
                small and that the time and cost of procuring the insurance is great in
                relation to the risk.
                 (b) Notwithstanding paragraph (a) of this section, any contract
                which requires or authorizes, either expressly or by implication, the
                use of motor vehicles must contain a provision requiring the State,
                school district, or Indian corporation to provide liability insurance,
                regardless of how small the risk.
                 (c) If the public school authority is self-insured and can present
                evidence of that fact to the approving official, liability and motor
                vehicle insurance will not be required.
                Sec. 273.178 Are there contract recordkeeping requirements?
                 A contractor will be required to maintain a recordkeeping system
                that allows the Bureau to meet its legal records program requirements
                under the Federal Records Act (44 U.S.C. 3101 et seq.). Such a record
                system must:
                 (a) Fully reflect all financial transactions involving the receipt
                and expenditure of funds provided under the contract in a manner that
                will provide accurate, current and complete disclosure of financial
                status; correlation with budget or allowable cost schedules; and clear
                audit facilitating data;
                 (b) Reflect the amounts and sources of funds other than Bureau
                contract funds that may be included in the operation of the contract;
                 (c) Provide for the creation, maintenance, and safeguarding of
                records of lasting value, including those involving individual rights,
                such as permanent records and transcripts; and
                 (d) Provide for the orderly retirement of permanent records in
                accordance with Department Records Schedule (Bureau of Indian Affairs
                (075)), when there is no established system set up by the State, public
                school district, or Indian corporation.
                Sec. 273.179 Are there contract audit and inspection requirements?
                 (a) During the term of a contract and for three (3) years after the
                project or undertaking is completed, the Regional Director, or any duly
                authorized representative, must have access, for audit and examination
                purposes, to any of the contractor's books, documents, papers, and
                records that, in the Regional Director's or representative's opinion,
                may be related or pertinent to the contract or any subcontract.
                 (b) The contractor is responsible for maintaining invoices,
                purchase orders, canceled checks, balance sheets and all other
                documents relating to financial transactions in a manner that will
                facilitate auditing. The contractor is responsible for maintaining
                files of correspondence and other documents relating to the
                administration of the contract, properly separated from general records
                or cross-referenced to general files.
                 (c) The contractor receiving funds is responsible for contract
                compliance.
                [[Page 30665]]
                 (d) The records involved in any claim or expenditure that has been
                questioned must be further maintained until a final determination is
                made on the questioned expenditures.
                 (e) The contractor and local school officials must make available
                to each member of the Indian Education Committee and to members of the
                public upon request: All contracts, non-confidential records concerning
                students served by the program, reports, budgets, budget estimates,
                plans, and other documents pertaining to administration of the contract
                program in the preceding and current years. The contractor or local
                school official must provide, free of charge, single copies of such
                documents upon request.
                Sec. 273.180 Are there disclosure requirements for contracts?
                 (a) Unless otherwise required by law, the Bureau may not place
                restrictions on contractors that will limit public access to the
                contractor's records except when records must remain confidential.
                 (b) A contractor must make all reports and information concerning
                the contract available to the Indian people that the contract affects.
                Reports and information may be withheld from disclosure only when both
                of the following conditions exist:
                 (1) The reports and information fall within one of the following
                exempt categories:
                 (i) Specifically required by statute or Executive Order to be kept
                secret;
                 (ii) Commercial or financial information obtained from a person or
                firm on a privileged or confidential basis; or
                 (iii) Personnel, medical, social, psychological, academic
                achievement and similar files where disclosure would be a clearly
                unwarranted invasion of personal privacy; and
                 (2) Disclosure is prohibited by statute or Executive Order or sound
                grounds exist for using the exemption given in paragraph (b)(1) of this
                section.
                 (c) A request to inspect or copy reports and information must be in
                writing and reasonably describe the reports and information requested.
                The request may be delivered or mailed to the contractor. Within 10
                working days after receiving the request, the contractor must determine
                whether to grant or deny the request and immediately notify the request
                of the determination.
                 (d) The time limit for making a determination may be extended up to
                an additional 10 working days for good reason. The requester must be
                notified in writing of the extension, reasons for the extension, and
                date on which the determination is expected to be made.
                Sec. [thinsp]273.181 Are there Privacy Act requirements for
                contracts?
                 (a) When a contractor operates a system of records to accomplish a
                Bureau function, the contractor must comply with subpart K of 43 CFR
                part 2 which implements the Privacy Act (5 U.S.C. 552a). Examples of
                the contractor's responsibilities are:
                 (1) To continue maintaining systems of records declared by the
                Bureau to be subject to the Privacy Act;
                 (2) To make such records available to individuals involved;
                 (3) To disclose an individual's record to third parties only after
                receiving permission from the individual to whom the record pertains,
                and in accordance with the exceptions listed in 43 CFR 2.231;
                 (4) To establish a procedure to account for access, disclosures,
                denials, and amendments to records; and
                 (5) To provide safeguards for the protection of the records.
                 (b) The contractor may not, without prior approval of the Bureau:
                 (1) Discontinue or alter any established systems of records;
                 (2) Deny requests for notification or access of records; or
                 (3) Approve or deny requests for amendments of records.
                 (c) The contractor may not establish a new system of records
                without prior approval of the Department of Interior and the Office of
                Management and Budget.
                 (d) The contractor may not collect information about an individual
                unless it is relevant or necessary to accomplish a purpose of the
                Bureau as required by statute or Executive Order.
                 (e) The contractor is subject to 5 U.S.C. 552a(i)(1), which imposes
                criminal penalties for knowingly and willfully disclosing a record
                about an individual without the written request or consent of that
                individual unless disclosure is permitted under one of the exceptions.
                Sec. 273.182 Are there penalties for misusing funds or property?
                 If any officer, director, agent, or employee of, or connected with,
                any contractor or subcontractor under this part embezzles, willfully
                misapplies, steals, or obtains by fraud any of the funds or property
                connected with the contract or subcontract, he or she will be subject
                to the following penalties:
                 (a) If the amount involved does not exceed $100, person(s) will be
                fined not more than $1,000 or imprisoned not more than one (1) year, or
                both.
                 (b) If the amount involved exceeds $100, person(s) will be fined
                not more than $10,000 or imprisoned for not more than two (2) years, or
                both.
                Sec. 273.183 Can the Secretary investigate a potential Civil Rights
                Act violation?
                 In no instance may there be discrimination against Indians or
                schools enrolling Indians. When informed by a complainant or through
                its own discovery that a possible violation of title VI of the Civil
                Rights Act of 1964 exists within a State school district receiving
                funds, the Secretary will, in accordance with Federal requirements,
                notify the Department of Education of the possible violation. The
                Department Education will conduct an investigation into the matters
                alleged. If the report of the investigation conducted by the Department
                of Education discloses a failure or threatened failure to comply with
                this part, and if the non-compliance cannot be corrected by informal
                means, compliance with this part may be effected by the suspension or
                termination of or refusal to contract or to continue financial
                assistance under the Johnson-O'Malley Act or by any other means
                authorized by law.
                Subpart I--Contract Renewal, Revisions, and Cancellations
                Sec. 273.191 How may a contract be renewed for Johnson-O'Malley
                funding?
                 An awarding official will notify the existing contracting party in
                advance of the contract's expiration and ask if the existing
                contracting party wants to renew the contract. The renewal must be in
                writing from the existing contracting party and the awarding official.
                Sec. 273.192 What is required to renew a contract?
                 (a) The existing contracting party seeking to renew a contract will
                submit to the awarding official:
                 (1) A written request to renew;
                 (2) The current education plan approved by the Indian Education
                Committee, if expired;
                 (3) A new Tribal resolution, if the current one has expired or its
                terms do not address renewal;
                 (4) A scope of work; and
                 (5) A budget outlining the Johnson-O'Malley funds for operational
                support and/or supplemental programs, by line item, to facilitate
                accountability.
                 (b) The awarding official will send the existing contracting party
                an acknowledgment letter and specify if any information is required to
                complete renewal package.
                [[Page 30666]]
                 (c) The approving official will approve or disapprove a renewal
                within 90 days after the approving official receives the renewal and
                any additional information requested. The approving official may extend
                the 90-day deadline after obtaining the written consent of the existing
                contracting party.
                Sec. [thinsp]273.193 May a contract be revised or amended?
                 Any contract may be revised or amended as deemed necessary to carry
                out the purposes of the program being contracted.
                 (a) A contractor may submit a written request for a revision or
                amendment of a contract to the awarding official.
                 (b) The written approval of the Indian Education Committee is
                required if the contract revision or amendment will alter a program
                that has been approved by the Indian Education Committee.
                Sec. [thinsp]273.194 Does the Indian Education Committee have
                authority to cancel contracts?
                 The Indian Education Committee may recommend to the Regional
                Director, through the appropriate awarding official, cancellation or
                suspension of a contract(s) that contains the program(s) approved by
                the Indian Education Committee, if the contractor fails to permit such
                Committee to exercise its powers and duties.
                Sec. [thinsp]273.195 May a contract be cancelled for cause?
                 (a) Any contract may be cancelled for cause when the contractor
                fails to perform the work called for under the contract or fails to
                permit an Indian Education Committee to perform its duties.
                 (b) Before cancelling the contract, the Regional Director will
                provide the contractor with written notice, including:
                 (1) The reasons why the Bureau is considering cancelling the
                contract; and
                 (2) The contractor will be given an opportunity to bring its work
                up to an acceptable level.
                 (c) If the contractor does not overcome the deficiencies in its
                contract performance, the Bureau will cancel the contract for cause.
                The Bureau will notify the contractor, in writing, of the cancellation.
                The notice will give the reasons for the cancellation and the right of
                the contractor to appeal under subpart K of this part.
                 (d) When a contract is cancelled for cause, the Bureau will attempt
                to perform the work by another contract.
                 (e) Any contractor that has a contract cancelled for cause must
                demonstrate that the cause(s) that led to the cancellation have been
                remedied before it will be considered for another contract.
                Subpart J--Responsibility and Accountability
                Sec. 273.201 What is required for the Secretary to meet his or her
                reporting responsibilities?
                 (a) The Secretary has the following reporting responsibilities to
                the Committee on Indian Affairs in the Senate; the Subcommittee on
                Interior, Environment, and Related Agencies of the Committee on
                Appropriations of the Senate; the Subcommittee on Indian, Insular, and
                Alaska Native Affairs of the Committee on Natural Resources of the
                House of Representatives; and the Subcommittee on Interior,
                Environment, and Related Agencies of the Committee on Appropriations of
                the House of Representatives:
                 (1) In order to provide information about the Johnson-O'Malley
                Program, the Bureau must obtain from all existing contracting parties
                the most recent determination of the number of eligible Indian students
                served by each contracting party.
                 (2) The Bureau will make recommendations on appropriate funding
                levels for the program based on such determination.
                 (3) The Bureau will make an assessment of the contracts under this
                Act.
                 (b) The Bureau will make such reports as described in subparagraph
                (a) of this section publically available.
                Sec. 273.202 Does this part include an information collection?
                 The collections of information in this part have been approved by
                the Office of Management and Budget under 44 U.S.C. 3501 et seq. and
                assigned OMB Control Number 1076-NEW. Responses is required to obtain a
                benefit. A Federal agency may not conduct or sponsor, and you are not
                required to respond to, a collection of information unless it displays
                a currently valid OMB Control Number.
                Subpart K--Appeals
                Sec. 273.206 May a contract be appealed?
                 (a) A contractor may appeal:
                 (1) An adverse decision or action of the Bureau regarding a
                contract; or
                 (2) A decision to cancel a contract for cause.
                 (b) The Secretary encourages contractors to seek all means of
                dispute resolution before a formal appeal.
                Sec. 273.207 How does a contractor request dispute resolution?
                 The contractor may request dispute resolution in writing to the
                Regional Director.
                 (a) The Bureau has in place an alternative dispute resolution (ADR)
                process.
                 (1) The ADR process is intended to be a supplement to, and not a
                replacement for, the normal appeal process.
                 (2) Participation as a complainant in the ADR process is voluntary.
                 (3) Should a contractor participate in an ADR process, the pre-
                complaint process may extend to 90 days.
                 (b) The ADR process may result in an informal resolution of the
                complaint;
                 (c) If the ADR process does not result in an informal resolution of
                the complaint, the contractor still has the right to continue to pursue
                an appeal.
                Sec. 273.208 How does a Tribal organization request an appeal?
                 A Tribal organization may request an appeal pursuant to Part 900 of
                this Chapter.
                Sec. 273.209 How does a State, public school district, or an Indian
                corporation request an appeal?
                 The State, public school district, or an Indian corporation may
                request an appeal by filing an appeal with the Civilian Board of
                Contract Appeals under the Contract Disputes Act, 41 U.S.C. 7101-7109,
                no later than 90 calendar days after the date the contractor receives
                the decision.
                 Dated: June 6, 2019.
                Tara Sweeney,
                Assistant Secretary--Indian Affairs.
                [FR Doc. 2019-13632 Filed 6-26-19; 8:45 am]
                 BILLING CODE 4337-15-P
                

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