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(a) RULES-
(1) IN GENERAL- A tribally controlled school is eligible for assistance under this part if the school —

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(A) on April 28, 1988, was a contract school under title XI of the Education Amendments of 1978 and the tribe or tribal organization operating the school submits to the Secretary a written notice of election to receive a grant under this part;

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(B) was a Bureau-operated school under title XI of the Education Amendments of 1978 and has met the requirements of subsection (b);

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(C) is a school for which the Bureau has not provided funds, but which has met the requirements of subsection (c); or

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(D) is a school with respect to which an election has been made under paragraph (2) and which has met the requirements of subsection (b).

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(2) NEW SCHOOLS- Any application which has been submitted under the Indian Self-Determination and Education Assistance Act by an Indian tribe for a school which is not in operation on the date of enactment of the Native American Education Improvement Act of 2001 shall be reviewed under the guidelines and regulations for applications submitted under the Indian Self-Determination and Education Assistance Act that were in effect at the time the application was submitted, unless the Indian tribe or tribal organization elects to have the application reviewed under the provisions of subsection (b).

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(b) ADDITIONAL REQUIREMENTS FOR BUREAU-FUNDED SCHOOLS AND CERTAIN ELECTING SCHOOLS-
(1) BUREAU-FUNDED SCHOOLS- A school that was a Bureau-funded school under title XI of the Education Amendments of 1978 on the date of enactment of the Native American Education Improvement Act of 2001 and any school with respect to which an election is made under subsection (a)(2), meets the requirements of this subsection if —

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(A) the Indian tribe or tribal organization that operates, or desires to operate, the school submits to the Secretary an application requesting that the Secretary —

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(i) transfer operation of the school to the Indian tribe or tribal organization, if the Indian tribe or tribal organization is not already operating the school; and

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(ii) make a determination as to whether the school is eligible for assistance under this part; and

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(B) the Secretary makes a determination that the school is eligible for assistance under this part.

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(2) CERTAIN ELECTING SCHOOLS-
(A) IN GENERAL- By not later than the date that is 120 days after the date on which an application is submitted to the Secretary under paragraph (1)(A), the Secretary shall determine —

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(i) in the case of a school which is not being operated by the Indian tribe or tribal organization, whether to transfer operation of the school to the Indian tribe or tribal organization; and

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(ii) whether the school is eligible for assistance under this part.

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(B) OTHER DETERMINATIONS- In considering applications submitted under paragraph (1)(A), the Secretary —

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(i) shall transfer operation of the school to the Indian tribe or tribal organization, if the tribe or tribal organization is not already operating the school; and

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(ii) shall determine that the school is eligible for assistance under this part, unless the Secretary finds by clear and convincing evidence that the services to be provided by the Indian tribe or tribal organization will be deleterious to the welfare of the Indians served by the school.

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(C) CONSIDERATIONS- In considering applications submitted under paragraph (1)(A), the Secretary shall consider whether the Indian tribe or tribal organization would be deficient in operating the school with respect to —

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(i) equipment;
(ii) bookkeeping and accounting procedures;
(iii) ability to adequately manage a school; or
(iv) adequately trained personnel.

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(c) ADDITIONAL REQUIREMENTS FOR A SCHOOL WHICH IS NOT A BUREAU-FUNDED SCHOOL-
(1) IN GENERAL- A school which is not a Bureau-funded school under title XI of the Education Amendments of 1978 meets the requirements of this subsection if —

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(A) the Indian tribe or tribal organization that operates, or desires to operate, the school submits to the Secretary an application requesting a determination by the Secretary as to whether the school is eligible for assistance under this part; and

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(B) the Secretary makes a determination that a school is eligible for assistance under this part.

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(2) DEADLINE FOR DETERMINATION BY SECRETARY-
(A) IN GENERAL- By not later than the date that is 180 days after the date on which an application is submitted to the Secretary under paragraph (1)(A), the Secretary shall determine whether the school is eligible for assistance under this part.

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(B) CONSIDERATIONS- In making the determination under subparagraph (A), the Secretary shall give equal consideration to each of the following factors:

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(i) With respect to the applicants proposal —
(I) the adequacy of facilities or the potential to obtain or provide adequate facilities;
(II) geographic and demographic factors in the affected areas;
(III) adequacy of the applicants program plans;
(IV) geographic proximity of comparable public education; and
(V) the needs as expressed by all affected parties, including but not limited to students, families, tribal governments at both the central and local levels, and school organizations.

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(ii) With respect to all education services already available —

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(I) geographic and demographic factors in the affected areas;
(II) adequacy and comparability of programs already available;
(III) consistency of available programs with tribal education codes or tribal legislation on education; and
(IV) the history and success of these services for the proposed population to be served, as determined from all factors including, if relevant, standardized examination performance.

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(C) GEOGRAPHIC PROXIMITY- The Secretary may not make a determination under this paragraph that is primarily based upon the geographic proximity of comparable public education.

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(D) OTHER INFORMATION- Applications submitted under paragraph (1)(A) shall include information on the factors described in subparagraph (B)(i), but the applicant may also provide the Secretary such information relative to the factors described in subparagraph (B)(ii) as the applicant considers appropriate.

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(E) DEADLINE- If the Secretary fails to make a determination under subparagraph (A) with respect to an application within 180 days after the date on which the Secretary received the application, the Secretary shall be treated as having made a determination that the tribally controlled school is eligible for assistance under the title and the grant shall become effective 18 months after the date on which the Secretary received the application, or on an earlier date, at the Secretarys discretion.

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(d) FILING OF APPLICATIONS AND REPORTS-
(1) IN GENERAL- All applications and reports submitted to the Secretary under this part, and any amendments to such applications or reports, shall be filed with the education line officer designated by the Director of the Office of Indian Education Programs of the Bureau of Indian Affairs. The date on which such filing occurs shall, for purposes of this part, be treated as the date on which the application or amendment was submitted to the Secretary.

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(2) SUPPORTING DOCUMENTATION- Any application that is submitted under this chapter shall be accompanied by a document indicating the action taken by the tribal governing body in authorizing such application.

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(e) EFFECTIVE DATE FOR APPROVED APPLICATIONS- Except as provided by subsection (c)(2)(E), a grant provided under this part, and any transfer of the operation of a Bureau school made under subsection (b), shall become effective beginning the academic year succeeding the fiscal year in which the application for the grant or transfer is made, or at an earlier date determined by the Secretary.

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(f) DENIAL OF APPLICATIONS-
(1) IN GENERAL- Whenever the Secretary refuses to approve a grant under this chapter, to transfer operation of a Bureau school under subsection (b), or determines that a school is not eligible for assistance under this part, the Secretary shall —

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(A) state the objections in writing to the tribe or tribal organization within the allotted time;

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(B) provide assistance to the tribe or tribal organization to overcome all stated objections;

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(C) at the request of the tribe or tribal organization, provide the tribe or tribal organization a hearing on the record under the same rules and regulations that apply under the Indian Self-Determination and Education Assistance Act; and

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(D) provide an opportunity to appeal the objection raised.

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(2) TIMELINE FOR RECONSIDERATION OF AMENDED APPLICATIONS- The Secretary shall reconsider any amended application submitted under this part within 60 days after the amended application is submitted to the Secretary.

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(g) REPORT- The Bureau shall submit an annual report to the Congress on all applications received, and actions taken (including the costs associated with such actions), under this section at the same time that the President is required to submit to Congress the budget under section 1105 of title 31, United States Code.