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                                                       Calendar No. 402
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-207
_______________________________________________________________________


 
     TO AMEND THE INDIAN EMPLOYMENT, TRAINING AND RELATED SERVICES 
 DEMONSTRATION ACT OF 1992 TO PROVIDE FOR THE TRANSFER OF SERVICES AND 
   PERSONNEL FROM THE BUREAU OF INDIAN AFFAIRS TO THE OFFICE OF SELF-
     GOVERNANCE, TO EMPHASIZE THE NEED FOR JOB CREATION ON INDIAN 
                  RESERVATIONS, AND FOR OTHER PURPOSES

                                _______
                                

                  June 5, 1998.--Ordered to be printed

_______________________________________________________________________


   Mr. Campbell, from the Committee on Indian Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1279]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 1279) to amend the Indian Employment, Training, and 
Related Services Demonstration Act of 1992 to provide for the 
transfer of services and personnel from the Bureau of Indian 
Affairs to the Office of Self-Governance, to emphasize the need 
for job creation on Indian reservations, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment in the nature of a substitute and recommends 
that the bill as amended do pass.
    The amendment is an amendment in the nature of a substitute 
as follows:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Indian Employment, Training and 
Related Services Demonstration Act Amendments of 1998''.

SEC. 2. FINDINGS.

  Congress finds that--
          (1) Indian tribes and Alaska Native organizations that have 
        participated in carrying out programs under the Indian 
        Employment, Training and Related Services Demonstration Act of 
        1992 (25 U.S.C. 3401 et seq.) have--
                  (A) improved the effectiveness of services provided 
                by those tribes and organizations;
                  (B) enabled more Indian people to secure employment;
                  (C) assisted welfare recipients; and
                  (D) otherwise demonstrated the value of integrating 
                education, employment, and training services;
          (2) the initiative under the Indian Employment, Training and 
        Related Services Demonstration Act of 1992 should be 
        strengthened by ensuring that all programs that emphasize the 
        value of work may be included within a demonstration program of 
        an Indian tribe or Alaska Native organization;
          (3) the initiative under the Indian Employment, Training and 
        Related Services Demonstration Act of 1992 shares goals and 
        innovative approaches of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450 et seq.);
          (4) the programs referred to in paragraph (2) should be 
        implemented by the Office of Self-Governance of the Department 
        of the Interior, the unit within the Department of the Interior 
        responsible for carrying out self-governance programs under the 
        Indian Self-Determination and Education Assistance Act; and
          (5) the initiative under the Indian Employment, Training and 
        Related Services Demonstration Act of 1992 should have the 
        benefit of the support and attention of the officials of--
                  (A) the Department of the Interior; and
                  (B) other Federal agencies involved with policymaking 
                authority with respect to programs that emphasize the 
                value of work for American Indians and Alaska Natives.

SEC. 3. AMENDMENTS TO THE INDIAN EMPLOYMENT, TRAINING AND RELATED 
                    SERVICES DEMONSTRATION ACT OF 1992.

  (a) Definitions.--Section 3 of the Indian Employment, Training and 
Related Services Demonstration Act of 1992 (25 U.S.C. 3402) is 
amended--
          (1) by redesignating paragraphs (1) through (3) as paragraphs 
        (2) through (4), respectively; and
          (2) by inserting before paragraph (2) the following:
          ``(1) Federal agency.--The term `Federal agency' has the same 
        meaning given the term `agency' in section 551(1) of title 5, 
        United States Code.''.
  (b) Programs Affected.--Section 5 of the Indian Employment, Training 
and Related Services Demonstration Act of 1992 (25 U.S.C. 3404) is 
amended--
          (1) by inserting ``(a) In General.--'' before ``The 
        programs'';
          (2) in subsection (a), as designated by paragraph (1) of this 
        subsection, by striking ``employment opportunities, or skill 
        development'' and all that follows through the end of the 
        subsection, and inserting ``securing employment, retaining 
        employment, or creating employment opportunities and other 
        programs relating to the world of work.''; and
          (3) by adding at the end the following:
  ``(b) Programs.--The programs referred to in subsection (a) may 
include, at the option of an Indian tribe--
          ``(1) the program commonly referred to as the general 
        assistance program established under the Act of November 2, 
        1921 (commonly known as the `Snyder Act') (42 Stat. 208, 
        chapter 115; 25 U.S.C. 13); and
          ``(2) the program known as the Johnson-O'Malley Program 
        established under the Johnson-O'Malley Act (25 U.S.C. 452 
        through 457), if the applicable plan for the Indian tribe under 
        section 4 includes educational services for elementary and 
        secondary school students that familiarize those students with 
        the world of work.''.
  (c) Plan Review.--Section 7 of the Indian Employment, Training and 
Related Services Demonstration Act of 1992 (25 U.S.C. 3406) is 
amended--
          (1) by striking ``Federal department'' and inserting 
        ``Federal agency'';
          (2) by striking ``Federal departmental'' and inserting 
        ``Federal agency'';
          (3) by striking ``department'' each place it appears and 
        inserting ``agency''; and
          (4) in the third sentence, by inserting ``statutory 
        requirement,'' after ``to waive any''.
  (d) Plan Approval.--Section 8 of the Indian Employment, Training and 
Related Services Demonstration Act of 1992 (25 U.S.C. 3407) is 
amended--
          (1) in the first sentence, by inserting before the period at 
        the end the following: ``(including any request for a waiver 
        that is made as part of the plan submitted by the tribal 
        government)''; and
          (2) in the second sentence, by inserting before the period at 
        the end the following: ``, including reconsidering the 
        disapproval of any waiver requested by the Indian tribe''.
  (e) Job Creation Activities.--Section 9 of the Indian Employment, 
Training and Related Services Demonstration Act of 1992 (25 U.S.C. 
3408) is amended--
          (1) by inserting ``(a) In General.--'' before ``The plan 
        submitted''; and
          (2) by adding at the end the following:
  ``(b) Employment Opportunities.--
          ``(1) In general.--Notwithstanding any other provision of 
        law, including any requirement of a program that is integrated 
        under a plan under this Act, a tribal government may use a 
        percentage of the funds made available under this Act (as 
        determined under paragraph (2)) for the creation of employment 
        opportunities, including providing private sector training 
        placement under section 10.
          ``(2) Determination of percentage.--The percentage of funds 
        that a tribal government may use under this subsection is the 
        greater of--
                  ``(A) the rate of unemployment in the area subject to 
                the jurisdiction of the tribal government; or
                  ``(B) 10 percent.
  ``(c) Limitation.--The funds used for an expenditure described in 
subsection (a) may only include funds made available to the Indian 
tribe by a Federal agency under a statutory or administrative 
formula.''.
  (f) Federal Responsibilities.--Section 11(a) of the Indian 
Employment, Training and Related Services Demonstration Act of 1992 (25 
U.S.C. 3410(a)) is amended--
          (1) in the matter preceding paragraph (1), by striking 
        ``Bureau of Indian Affairs'' and inserting ``Office of Self-
        Governance'';
          (2) in paragraph (3), by striking ``and'' at the end;
          (3) in paragraph (4)--
                  (A) by inserting ``delivered under an arrangement 
                subject to the approval of the Indian tribe 
                participating in the project,'' after ``appropriate to 
                the project,''; and
                  (B) by striking the period and inserting ``; and''; 
                and
          (4) by adding at the end the following:
          ``(5) the convening by an appropriate official of the lead 
        agency (whose appointment is subject to the confirmation of the 
        Senate) and a representative of the Indian tribes that carry 
        out demonstration projects under this Act, in consultation with 
        each such Indian tribe, of a meeting not less than 2 times 
        during each fiscal year for the purpose of providing an 
        opportunity for all Indian tribes that carry out demonstration 
        projects under this Act to discuss issues relating to the 
        implementation of this Act with officials of each department 
        specified in subsection (a).''.
  (g) Additional Responsibilities.--In assuming the responsibilities 
for carrying out the duties of a lead agency under section 11(a) of the 
Indian Employment, Training and Related Services Demonstration Act of 
1992 (25 U.S.C. 3410(a)) pursuant to the amendments made to that 
section by subsection (f) of this section, the Director of the Office 
of Self-Governance of the Department of the Interior shall ensure that 
an orderly transfer of those lead agency functions to the Office occurs 
in such manner as to eliminate any potential adverse effects on any 
Indian tribe that participates in a demonstration project under the 
Indian Employment, Training and Related Services Demonstration Act of 
1992 (25 U.S.C. 3401 et seq.).
  (h) Personnel.--In carrying out the amendment made by subsection 
(f)(1), the Secretary of the Interior shall transfer from the Bureau of 
Indian Affairs to the Office of Self-Governance of the Department of 
the Interior such personnel and resources as the Secretary determines 
to be appropriate.

SEC. 4. CONSOLIDATED ADVISORY COMMITTEES.

  The Indian Employment, Training and Related Services Demonstration 
Act of 1992 (25 U.S.C. 3401 et seq.) is amended by adding at the end 
the following:

``SEC. 19. CONSOLIDATED ADVISORY COMMITTEE.

  ``(a) In General.--The head of each Federal agency specified in 
section 4 that otherwise has jurisdiction over a program that is 
integrated under this Act (in accordance with a plan under section 6) 
shall permit a tribal government that carries out that plan to 
establish a consolidated advisory committee to carry out the duties of 
each advisory committee that would otherwise be required under 
applicable law (including any council or commission relating to private 
industry) to carry out the programs integrated under the plan.
  ``(b) Waivers.--As necessary to carry out subsection (a), each agency 
head referred to in that paragraph shall waive any statutory 
requirement, regulation, or policy requiring the establishment of an 
advisory committee (including any advisory commission or council).''.

SEC. 5. ALASKA REGIONAL CONSORTIA.

  The Indian Employment, Training and Related Services Demonstration 
Act of 1992 (25 U.S.C. 3401 et seq.), as amended by section 4 of this 
Act, is amended by adding at the end the following:

``SEC. 20. ALASKA REGIONAL CONSORTIA.

  ``(a) In General.--Notwithstanding any other provision of law, 
subject to subsection (b), the Secretary shall permit a regional 
consortium of Alaska Native villages or regional or village 
corporations (as defined in or established under the Alaska Native 
Claims Settlement Act (43 U.S.C. 1601 et seq.)) to carry out a project 
under a plan that meets the requirements of this Act through a 
resolution adopted by the governing body of that consortium or 
corporation.
  ``(b) Withdrawal.--Nothing in subsection (a) is intended to prohibit 
an Alaska Native village or regional or village corporation from 
withdrawing from participation in any portion of a program conducted 
pursuant to that subsection.''.

SEC. 6. EFFECTIVE DATES.

  This Act and the amendments made by this Act shall take effect on the 
date of enactment of this Act, except that the transfer of functions to 
the Office of Self-Governance of the Department of the Interior under 
the amendment made by section 3(f)(1) shall be carried out not later 
than 90 days after the date of enactment of this Act.

                                Purpose

    S. 1279 proposes to amend Public Law 102-477, the Indian 
Employment, Training and Related Services Demonstration Act of 
1992 (codified at 25 U.S.C. Sec. Sec. 3401-3417, and 
hereinafter referred to as the ``477 program''). The Amendments 
proposed in this Act address several concerns with the 477 
program that were revealed by tribal participants, coalition 
members, and federal administrators at a Senate Committee on 
Indian Affairs hearing held on May 13, 1997.\1\ The bill's 
primary purposes are threefold: (1) to transfer the lead agency 
responsibilities from the Bureau of Indian Affairs to the 
Office of Self-Governance; (2) to clarify and expand the 
federal formula programs that may be integrated into tribal 477 
plans; and (3) to encourage Indian country entrepreneurship and 
expand permissible employment creation activities.
---------------------------------------------------------------------------
    \1\ Oversight Hearing on the Indian Employment, Training, and 
Related Services Demonstration Act Before the Senate Committee on 
Indian Affairs, 105th Cong., S. Hrg. 105-191 (May 13, 1997) 
[hereinafter Committee Hearing Report].
---------------------------------------------------------------------------

                               Background

    Since its enactment, the 477 program has become one of the 
few successful economic development programs in Indian country. 
The program was enacted to address the severe problems of 
unemployment and poverty faced by most Native American 
communities. The program permits tribal governments to 
consolidate formula funded employment, training and related 
programs into one streamlined, efficient plan designed to meet 
tribe-specific employment needs. Currently, twenty-two (22) 
tribal grantees participate in the 477 program, representing 
190 of the 557 federally recognized tribes. All of the tribes 
participating in the program report that they are providing 
more jobs and better quality services to tribal members while 
reducing paper work and related administrative costs.
    The 477 program was developed to provide tribes with a 
mechanism to take full advantage of the wide variety of 
employment training programs, while minimizing administrative 
time and costs, and by reducing federal paper work. Throughout 
the 1970's and 1980's, Congress authorized a number of 
employment training programs to address the unemployment 
problem that existed throughout the nation. Within each of 
these programs, Congress reserved funds exclusively for and 
allocated funds directly to tribes, pursuant to the federal 
government's special trust relationship with tribes. When 
enacting these tribal-specific employment training programs, it 
was Congress' intent to increase the economic self-sufficiency 
of tribal governments and their communities. However, contrary 
to this intent, many tribes were not able to take advantage of 
the programs, because of the great number of regulations, and 
filing and reporting requirements each program required of 
tribes. Additionally, the small amounts awarded under each 
grant relative to the significant time and paperwork burdens 
were often prohibitive and served to detract from the overall 
effectiveness of these programs.
    The current 477 program authorizes the Secretary of the 
Interior, in collaboration with the Secretaries of Education, 
Health and Human Services, and Labor to review for approval 
tribal plans proposing to integrate formula funded employment 
and training and related services programs.\2\ Integration of 
these programs permits tribes to more efficiently administer 
employment training and related services, and is designed to 
reduce unemployment in tribal communities, while serving the 
federal policy of Indian self-determination. Tribal plan must: 
identify programs to be integrated; \3\ describe a strategy 
identifying potential employment opportunities on and near the 
tribe's service area, and services to be provided; include a 
projected budget; identify tribal agencies involved in the 
delivery of services; identify necessary waivers; and be 
approved by the governing body of the tribe.\4\ The Secretary 
then, after consulting with the other department Secretaries 
involved is required to approve or reject the tribal plan, 
along with approval or rejection of any waivers requested, 
within ninety (90) days after receipt of the tribe's plan.\5\ 
If disapproved, the tribe has an opportunity to amend its plan 
or petition for reconsideration.\6\
---------------------------------------------------------------------------
    \2\ ``The Department of Education is not currently participating 
since they have not identified any formula funded programs which would 
be appropriate.'' Bureau of Indian Affairs, Preliminary Report on 
Public Law 102-477 at 2 (January 1997) [hereinafter ``BIA Preliminary 
Report''].
    One reason for the lack of participation by the Department of 
Education, cited at the May 13th hearing, was that relevant Indian 
programs are small, and therefore, distribute funding on a competitive 
rather than formula basis. Committee Hearing Report, supra note 1, at 
39.
    \3\ The BIA, the lead agency responsible for implementation of the 
477 program, formally lists eleven (11) programs that are eligible for 
integration into tribal 477 plans, but other programs have been 
integrated on a case-by-case basis. In its initial report, dated June 
6, 1997, the Bureau lists the following programs as eligible for 
integration, with program Departments listed in italics:
    Department of Labor: Job Training Partnership Act (JTPA), P.L. 97-
300 Sec. 401, Title IV(A); JTPA, P.L. 97-300 Sec. 401, Title II-B 
(Indian Summer Youth).
    Department of Health and Human Services: Job Opportunities and 
Basic Skills Training (JOBS), P.L. 104-193 Sec. 412(A)(2); Child Care 
and Development Block Grant (CCDBG), P.L. 101-508 (as amended); 
Temporary Assistance for Needy Families (TANF), P.L. 104-193.
    Department of the Interior (BIA): Adult Vocational Training, 20 
U.S.C. Sec. Sec. 2302, 2313; Direct Employment; Adult Education; Higher 
Education, 25 U.S.C. Sec. Sec. 3302 et seq.; General Assistance, 25 
U.S.C. Sec. 13; Tribal Work Experience.
    BIA Preliminary Report, supra note 2, at 2-3.
    \4\ 25 U.S.C. Sec. 3405.
    \5\ 25 U.S.C. Sec. 3406.
    \6\ 25 U.S.C. Sec. 3407.
---------------------------------------------------------------------------
    According to the Bureau of Indian Affairs' (BIA) 
Preliminary Report on Public Law 102-477, as of October 6, 
1996, more than $17 million of federal funding had been pooled 
by participating agencies under the program.\7\ This same 
report stated that the size of grants varied with one third 
under $500,000; one third between $500,000 and $1 million; and 
the final third over $1 million.\8\ Tribal administrative 
compliance with the act has been exemplary. All grantees are in 
good standing having timely submitted program and financial 
reports to the BIA.\9\
---------------------------------------------------------------------------
    \7\ BIA Preliminary Report, supra note 2, at 3.
    \8\ Id.
    \9\ Id.
---------------------------------------------------------------------------
    The record shows that the 477 program has been successful, 
and should be expanded and strengthened. An oversight hearing, 
held by the Senate Committee on Indian Affairs on May 13, 1997 
revealed several concerns with the program's administration and 
certain limitations that prevented broad implementation of the 
program. Additionally, implementation of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996, 
Public Law 104-193, will make successful implementation of the 
477 program a high priority for tribal governments. Known as 
the ``Welfare Reform'' law, this initiative places primary 
emphasis on securing and keeping gainful employment. Because 
the centerpiece of the Act is work, the 477 program will play a 
critical role in helping tribes make the transition to an 
employment-oriented framework. S. 1279 was developed to 
specifically address these concerns.

                      Summary of Major Amendments

Lead agency change

    The most prevalent concern raised before the Committee at 
the May 13th hearing was the lack of commitment from the Bureau 
of Indian Affairs, the lead federal agency responsible for 
implementation of the 477 program. The Committee received 
testimony from a number of tribal participants complaining of 
the Bureau's administrative record. As a result of this 
testimony and other considerations discussed below, Section 
3(f) of S. 1279 proposes to transfer lead agency 
responsibilities from the Bureau of Indian Affairs to the 
Office of Self-Governance (OSG). Both agencies are located 
within the Department of the Interior, and the Secretary of the 
Interior will continue to be vested with primary responsibility 
to administer the program at the federal level. Section 3(h) 
requires the Secretary of the Interior to transfer personnel 
and resources from the BIA to OSG as is deemed appropriate.
    Section 11 of Public Law 102-477 currently names the BIA as 
lead agency, and sets forth four (4) primary responsibilities: 
(1) to develop single report forms for tribal applicants; (2) 
to submit a number of reports to this Committee regarding 
progress of the 477 program; (3) to provide technical 
assistance to tribal participants; and (4) to act as the single 
agency responsible for transferring funds integral under the 
program to tribal participants.
    Testimony revealed that the BIA failed to satisfy 3 of the 
4 responsibilities listed. First, the Bureau failed to meet 
every deadline regarding reporting to this Committee listed by 
statue.\10\ Second, the BIA has dedicated only one full time 
staff person to provide technical assistance to tribes.\11\ 
Instead of the Bureau providing technical assistance, the 
witnesses explained that the tribal participants themselves are 
providing assistance to tribes in writing 477 plans and 
developing their 477 budgets.\12\ Finally, tribal participants 
have consistently complained to this Committee about delays in 
receiving their funding under the program. The Executive 
Director of the Cook Inlet Tribal Council testified that the 
Bureau withheld Johnson O'Malley (JOM) program funding 
integrated under an approved FY 1996 477 plan, until the last 
day of the school year. The tribe ran a program for the entire 
school year without money.\13\ Another tribe stated that:
---------------------------------------------------------------------------
    \10\ The preliminary report, required under section 16(a) of Public 
Law 102-477, was to be provided to this Committee ``[n]ot later than 
two years after the date of enactment.'' It was, however, filed more 
than four years after the program's enactment.
    \11\ The number of BIA staff working on the program was not clearly 
revealed at the May 13th hearing. Nancy Jemison, BIA's 
Director of Economic Development, stated that the Bureau had ``two 
full-time people working on the program[, who] are also responsible for 
some collateral responsibilities related to census-related issues.'' 
Committee Hearing Report, supra note 1, at 12. However, in response to 
a question form the Chairman, Ms. Jemison stated that no one at the 
agency level works on the program full-time. Id.
    \12\ Id. at 111-112 (written statement of Norm DeWeaver, Washington 
Representative of the Indian and Native American Employment and 
Training Coalition) (noting that ``[f]or the last several years, BIA 
has provided a modest amount of funds to a 477 tribe * * * to support 
the [tribe-to-tribe] TA effort.'').
    \13\ Id. at 22 (statement of Leroy Bingham, Chief Executive 
Officer, Cook Inlet Tribal Council, Anchorage, AK).

          The Bureau of Indian Affairs has been the biggest 
        obstacle to the implementation of P.L. 102-477. BIA 
        officials have either ignored the needs of P.L. 102-477 
        tribes or have refused to exercise the flexible 
        authorities mandated by the statute. Without BIA 
        involvement, the Act cannot be implemented. BIA is an 
        important link in the chain of getting the different 
        Federal agency funds to the tribes.\14\
---------------------------------------------------------------------------
    \14\ Id. at 91 (written statement of Edward K. Thomas, President, 
Central Council of the Tlingit and Haida Indian Tribes of Alaska).

Finally, the Tribal work group, representing all tribes 
participating in the program, noted that the BIA's lack of 
attention to the program in one particular case caused a tribe 
to ``almost shut down its employment services because it had to 
wait for six months to get any of its 477 funds.'' \15\
---------------------------------------------------------------------------
    \15\ Id. at 110 (written statement of Norm DeWeaver, Washington 
Representative of the Indian and Native American Employment and 
Training Coalition).
---------------------------------------------------------------------------
    The most significant reason justifying the transfer to the 
Office of Self-Governance is that it is better equipped to 
administer the program and constitutes a more natural fit to 
the 477 program. Nearly half of the tribes participating in the 
477 program also participate in the self-governance program. 
Like 477, Self-Governance is an initiative that enables tribes 
to combine a number of services under a single plan to provide 
flexibility in delivery of federally-funded services. The Self-
Governance program gives tribes the ability to consolidate 
programs within the Interior Department. The 477 program, on 
the other hand, is limited to formula-funded programs dealing 
with employment training and related services, but allows for 
integration of programs administered by the Departments of 
Labor, Health and Human Services, Education, and the Interior. 
The Committee notes, however, tribes are not required to 
participate in either program. Both are completely separate and 
voluntary programs, which permit tribal governments to 
determine for themselves the best method of delivering services 
to their members.
    S. 1279 does not move the administration of this program to 
another Department, and in no way acts to diminish the 
government-to-government relationship that exists between 
Indian tribes and the federal government. These amendments 
continue to recognize that the Secretary of the Interior is 
vested with primary responsibility for leading this initiative 
at the federal level. The reasons for the transfer of lead 
agency responsibilities to the Office of Self-Governance 
include the expertise which that agency holds in this area, its 
close ties to tribes already participating in the 477 program, 
and its recorded efficiency in administering consolidation 
plans like those permitted under the 477 program.

Programs affected

    Another problem that surfaced at the May hearing was the 
BIA's inconsistent treatment of integration of the General 
Assistance \16\ and Johnson O'Malley \17\ programs into tribal 
477 plans. Since 1994, several tribes have attempted to 
integrate both programs into their tribal 477 plans. They have 
received a variety of responses from the BIA. On several 
occasions the Bureau approved the integration, and other times 
it rejected integration. The Bureau confirmed this confusion at 
the hearing when it submitted conflicting testimony regarding 
its approval of including the JOM program into tribal 477 
plans.\18\
---------------------------------------------------------------------------
    \16\ 25 U.S.C. Sec. 13.
    \17\ 25 U.S.C. Sec. 452-457.
    \18\ Committee Hearing Report, supra note 1, at 10-13.
---------------------------------------------------------------------------
    Section 3(b) of S. 1279 attempts to eliminate this 
uncertainty by expressly providing that both programs may be 
integrated into tribal 477 plans, at the option of the 
tribe.\19\ This amendment does not change any statutory or 
regulatory requirements listed in the JOM program, and the 
program continues to be administered by the Assistant Secretary 
for Indian Affairs. A letter from the Assistant Secretary, 
dated March 27, 1998, notes that while these amendments will 
enable tribes to integrate the JOM program within its 477 plan, 
``the JOM program must continue to be conducted in accordance 
with its authorizing statutes.'' \20\ The Committee stresses, 
however, that statutory obligations under the JOM program are 
subject to the waiver provision under current section 7 of 
Public Law 102-477 (as amended by section 3(c) of S. 1279).
---------------------------------------------------------------------------
    \19\ At a Committee business meeting held on April 1, 1998, this 
amendment was revised, as included in the substitute version of S. 
1279, to require that tribal plans seeking to integrate JOM funding 
into their 477 plan must use such funds for the intended beneficiaries 
of the JOM program, children aged 3 through grade 12.
    \20\ Letter from Kevin Gover, Assistant Secretary--Indian Affairs, 
Department of the Interior to the Senate Committee on Indian Affairs 
(Mar. 27, 1998) (included in appendix).
---------------------------------------------------------------------------
    In 1994, the JOM program was placed within the Tribal 
Priority Allocation (TPA) portion of the BIA's budget. Since 
that move was made, tribes were permitted to take over the JOM 
program through self-determination contracting or self-
governance compacting.\21\ Section 3(b) does not constitute 
another move of the JOM program, or obligate tribes to 
participate in either the 477 or Self-Governance programs. S. 
1279 merely provides tribes with a third avenue to take over 
the JOM program, to run it as the tribe sees fit, keeping with 
Congress' policy of tribal self-determination.
---------------------------------------------------------------------------
    \21\ 25 U.S.C. 450 et seq.
---------------------------------------------------------------------------
    Section 3(b) also provides Secretarial guidance to future 
treatment of programs sought to be integrated by broadening the 
language contained in current section 5 of Public Law 102-
477.\22\ Thus, the Committee encourages the Secretaries in 
charge of approving the inclusion of a program into a tribal 
477 plan to give it broad consideration in favor of 
integration.
---------------------------------------------------------------------------
    \22\ 25 U.S.C. Sec. 3404.
---------------------------------------------------------------------------

Plan approval: Statutory waiver provision

    Section 3(c) of the substitute to S. 1279 proposes to amend 
section 7 of Public Law 102-477. Section 7 currently vests the:

          Secretary of the affected department [with] authority 
        to waive any regulation, policy, or procedure 
        promulgated by that department that has been so 
        identified by such tribal government * * *, unless the 
        Secretary of the affected department determines that 
        such a waiver is inconsistent with the purposes of this 
        Act or those provisions of the statute from the which 
        the program involved derives its authority. * * *\23\
---------------------------------------------------------------------------
    \23\ 25 U.S.C. Sec. 3406 (emphasis added).

Section 3(c) amends this sentence of section 7 by adding the 
words ``statutory requirement'' after the words ``authority to 
waive any''. The intent of this amendment is to place tribal 
governments on par with state entities operating similar 
programs, and to broaden the number of programs that may be 
integrated into the program that are currently prevented from 
being integrated due to certain statutory requirements.
    The Department of the Interior, in a letter to the 
Committee dated March 30, 1998, expressed its opposition to 
section 3(c), reasoning that ``the agency with statutory 
authority for administering the affected programs should have 
sole responsibility for granting waivers.'' \24\ It is not the 
Committee's intent to vest the Secretary of the Interior with 
authority to waive statutory requirements, regulations, 
policies or procedures that are within the authority of the 
Secretaries of other Departments. All waiver authority 
continues to be within the sole discretion of the Secretary of 
the affected department. The amended waiver authority in S. 
1279 is intended to work in the same manner that the existing 
waiver provision does. Each Department acts on waivers 
involving its own programs. The decisions on tribal waiver 
requests are communicated to the tribes as part of the 
Secretary of the Interior's action in approving tribal plans.
---------------------------------------------------------------------------
    \24\ Letter from Kevin Gover, Assistant Secretary--Indian Affairs, 
Department of the Interior to the Senate Committee on Indian Affairs 
(Mar. 31, 1998) (included in appendix).
---------------------------------------------------------------------------
    This provision also makes clear the original intent to tie 
in the 90 day limit on plan approval with the approval of 
requested waivers. As discussed above, the BIA approved tribal 
plans that included both General Assistance and Johnson 
O'Malley program funding. The Bureau then withheld funding 
under these programs, because waivers that would permit 
integration of these programs were not yet approved.\25\ This 
amendment hopes to end this confusion, by making clear that the 
Secretary must act on both plans and waivers within the 90 day 
period.
---------------------------------------------------------------------------
    \25\ Committee Hearing Report, supra note 1, at 12.
---------------------------------------------------------------------------

Job creation activities

    A major purpose of S. 1279 is to strengthen the ability of 
tribes to use 477 resources to create jobs for Indian and 
Alaskan Native people in their service areas. Employment 
training is futile in the absence of job opportunities. Welfare 
reform increases the pressure on all tribes, including those 
participating in the 477 initiative, to open up new employment 
opportunities. Job creation in the private sector was a major 
purpose of P.L. 102-477 when it was originally enacted. Section 
3(e) of S. 1279 proposes to reinforce this objective and take 
it several steps further by authorizing the use of funds 
commingled under a 477 plan to facilitate economic development, 
notwithstanding provisions written into statutes whose programs 
fund tribal 477 plans--provisions written without regard for 
the urgent need for job creation in Native communities. The 
amount of funds permitted for creation of employment 
opportunities is based on the greater of two figures: ``the 
rate of unemployment in the area subject to the jurisdiction of 
the tribal government''; or ten percent (10%).
    Several of the participation 477 tribes have already shown 
that integrating their existing resources can facilitate job 
creation:
    The employment and training department of the Three 
Affiliated Tribes in North Dakota was able to respond quickly 
when a data entry business explored the possibility of 
establishing a facility in a small, isolated community on the 
Fort Berthold Reservation. With all of its employment and 
training funds pooled under a single plan and one budget, the 
program could immediately commit assistance to recruit 
potential employees, provide start-up training and help insure 
that a qualified work force was available to the enterprise. 
Without the 477 program, the program at the Three Affiliated 
Tribes would have had to revise at least three separate program 
plans and related budgets, obtain the approval of several 
different federal agencies and otherwise withhold support for 
the project, perhaps until the business opportunity had passed.
    The Sisseton-Wahpeton Sioux Tribe was able to use the 477 
program to support the expansion of a major tribal enterprise 
and enable it to move to a more favorable location. Providing 
on-the-job training for a variety of tribal enterprises is a 
feature of the 477 program on the White Earth Reservation in 
Minnesota.
    The Bristol Bay Native Association expects to use 477 
resources to support village job creation efforts currently 
funded through Tribal Priority Allocation money in its self-
governance compact.
    The Tlingit Haida Central Council in southeast Alaska is 
using 477 resources to support a joint effort of several 
village corporations in the mining industry.
    The Committee encourages all the federal agencies whose 
programs are involved in 477 to remove any barriers in 
regulation or policy to the active involvement of the 477 
tribes in economic development. The Committee also encourages 
the 477 tribes to make even greater use of their integrated 
programs to serve tribal job creation goals.

Alaska regional consortia

    Section 5 of S. 1279 proposes to clarify the requirement 
for tribal governing body resolutions as it applies 
specifically in Alaska. Many of the federal programs covered by 
the 477 program are implemented in Alaska at the regional 
level, as regions are described in the Alaska Native Claims 
Settlement Act. The service delivery system consists in most 
cases of the Alaska regional nonprofit corporations. Section 5 
is intended to reduce the burden involved in repeatedly 
gathering governing body resolutions from tribal entities at 
the village level by requiring one resolution to approve the 
regional organization's plan from that group's own governing 
body to satisfy the tribal resolution requirement in Section 
6(8) of the current law.
    At the same time, the Committee wishes to stress that any 
federally-recognized entity covered by a regional 477 plan can 
withdraw from that plan at any time by adopting an appropriate 
governing body resolution. Should one or more villages within a 
region decide by resolution not to participate in the regional 
plan, the ability of such village or villages to obtain funds 
directly is subject to the requirements of law or of federal 
agency regulations governing the program involved.

                              Conclusions

    S. 1279 further bolsters an already successful program by 
eliminating limits placed on it by the original statute and 
addressing concerns raised by current tribal grantees. The need 
to strengthen this program has become urgent, because of the * 
* *. Further lessen federal regulations over the limited funds 
made available for employment training services. * * *

                          Legislative History

    On May 13, 1997, the Senate Committee on Indian Affairs 
held an oversight hearing on P.L. 102-477, the Indian 
Employment, Training, and Related Services Demonstration Act of 
1992 (25 U.S.C. Sec. Sec. 3401-3417). Senator Campbell 
introduced S. 1279 on October 9, 1997 for himself, and Mr. 
Murkowski, which was referred to the Committee on Indian 
Affairs. That same day, Senator Murkowski introduced S. 1281 
for himself and Mr. Campbell, which proposed similar amendments 
to the 477 program, and addresses several Alaska-specific 
concerns. An amendment in the nature of a substitute was 
prepared by the Chairman of the Committee, Senator Campbell, 
incorporating the two bills.

            Committee Recommendation and Tabulation of Vote

    In an open business session on April 1, 1998, the Committee 
on Indian Affairs, by voice vote, adopted the amendment in the 
nature of a substitute offered by Senator Campbell and ordered 
the bill reported with the recommendation that the Senate pass 
S. 1279 as reported.

                      Section-by-Section Analysis

                         Section 1--Short Title

    The Act will be cited as the Indian Employment, Training 
and Related Services Demonstration Act Amendments of 1998.

                          Section 2--Findings

    The bill creates a findings section, which recognizes that 
tribes participating in the 477 program have improved the 
quality of employment-related services delivered to their 
members while cutting administrative costs, paper work, and 
time.

                         Section 3--Amendments

(b) Programs affected

    This change generally broadens the scope of programs 
affected by the Act, and specifically recognizes that the 
General Assistance and Johnson O'Malley programs may be 
integrated into tribal consolidation plans. Integration of 
Johnson O'Malley funding is stipulated upon a tribe making 
assurances in its 477 plan proposal that such funds will be 
used to familiarize elementary and secondary school students 
with ``the world of work''.

(c) Plan review

    This amendment permits agency heads to waive ``statutory 
requirements'' for programs integrated into tribal plans at the 
request of the participating tribe, subject to approval by the 
Secretary of the affected department.

(d) Plan approval

    Existing law requires the Secretary to permit tribal 
applicants to amend disapproved plans or to petition for 
reconsideration. This amendment would additionally direct the 
Secretary to reconsider disapproval of requested statutory 
waivers.

(e) Job creation activities

    The bill adds language to Section 9 of the Act that permits 
tribes to use a percentage of their 477 funds to create 
employment opportunities, including private sector training 
placement. The permitted percentage is based on the tribal 
community's rate of unemployment.

(f) Federal responsibilities

    This amendment would transfer lead agency responsibility 
from the Bureau of Indian Affairs (BIA) to the Office of Self-
Governance (OSG), which in addition to existing 
responsibilities as lead agency, must meet with tribes 
participating in the program at least twice a year.

(g) Additional responsibilities

    This subsection requires the Director of the Office of 
Self-Governance to ensure an orderly transfer of functions 
occurs to eliminate any potential adverse effects on 
participating tribes.

(h) Personnel

    The bill directs the Secretary to transfer personnel and 
resources from the BIA to the Office of Self-Governance as he 
deems necessary to carry out the purposes of this Act.

                  Section 5--Alaska Regional Consortia

    Section 4 of the bill clarifies the requirement for tribal 
governing body resolutions as it applies specifically to Alaska 
tribal regional corporations. The bill is intended to reduce 
the burden involved in repeatedly gathering governing body 
resolutions from tribal entities at the village level, while at 
the same time, any federally-recognized entity covered by a 
regional 477 plan to withdraw from that plan at any time by 
adopting an appropriate governing body resolution.

                       Section 6--Effective Date

    This subsection requires that all amendments take effect 
upon enactment, and provides transfer of lead agency functions 
take place within 90 days of enactment.

                     Cost and Budget Considerations

    The cost estimate for S. 1279, as evaluated by the 
Congressional Budget Office, is set forth below:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 4, 1998.
Hon. Ben Nighthorse Campbell,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1279, the Indian 
Employment, Training and Related Services Demonstration Act 
Amendments of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kristen 
Layman (for federal costs) and Marjorie Miller (for the state 
and local impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

S. 1279--Indian Employment, Training and Related Services Demonstration 
        Act Amendments of 1998

    S. 1279 would transfer federal responsibility for 
demonstration programs under the Indian Employment, Training 
and Related Services Demonstration Act of 1992 from the Bureau 
of Indian Affairs (BIA) to the Office of Self-Governance (OSG), 
both at the Department of the Interior. It would allow tribal 
governments and Alaska Native Organizations to include programs 
that emphasize job creation within a demonstration program, 
subject to certain limits and conditions. The bill also would 
expand the scope of demonstration programs under the act and 
would change various administrative requirements.
    CBO estimates that enacting S. 1279 would have no 
significant impact on the federal budget. Based on information 
provided by BIA, CBO estimates that the discretionary costs 
associated with the transfer of responsibility from BIA to OSG 
would be less than $10,000. The bill would not affect direct 
spending or receipts; therefore, pay-as-you-go procedures would 
not apply.
    S. 1279 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
and would not affect the budgets of state, local, or tribal 
governments. Tribes would benefit from enactment of provisions 
in this bill that would allow them to consolidate additional 
grant programs into a single demonstration project, seek 
waivers of statutory requirements associated with the 
consolidated programs, and use part of the project funds for 
private-sector job training. Alaska Native Corporations would 
further benefit from the provision allowing regional consortia 
to represent individual, regional, or village corporations.
    The CBO staff contacts are Kristen Layman (for federal 
costs) and Marjorie Miller (for the state and local impact). 
The estimate was approved by Robert A. Sunshine, Deputy 
Assistant Director for Budget Analysis.

                      Regulatory Impact Statement

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires each report accompanying a bill to evaluate the 
regulatory and paperwork impact that would be incurred in 
carrying out the bill. The Committee has concluded that 
enactment of S. 1279 will reduce regulatory or paperwork 
impacts.

                        Executive Communications

    The Committee received two letters from the Department of 
Interior commenting on S. 1279, dated March 27, 1998 and March 
31, 1998. Both are set forth below:

                        Department of the Interior,
                                   Office of the Secretary,
                                    Washington, DC, March 27, 1998.
Hon. Ben Nighthorse Campbell,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter of February 3, 
1998, requesting clarification of the Bureau of Indian Affairs 
position regarding the relationship of the Johnson-O'Malley 
(JOM) Program and S. 1279 and S. 1281.
    After careful reconsideration of the issues involved, we 
have determined that inclusion of the JOM program is allowable, 
and can strengthen the Federal-tribal partnership. While both 
Senate bills will enable tribes to integrate certain Federal 
programs to simultaneously improve overall program 
effectiveness and reduce unemployment in tribal communities, 
the JOM program must continue to be conducted in accordance 
with its authorizing statues.
    Thank you for your continued interest and support of Indian 
education programs. For additional information, please contact 
the Director, Office of Indian Education Programs.
    A similar letter is being sent to Honorable Frank H. 
Murkowski, United States Senator.
            Sincerely,
                                               Kevin Gover,
                               Assistant Secretary--Indian Affairs.
                                ------                                

                        Department of the Interior,
                                   Office of the Secretary,
                                    Washington, DC, March 31, 1998.
Hon. Ben Nighthorse Campbell,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: We are writing to express the Department 
of the Interior's (Department) position on S. 1279, a bill to 
amend the Indian Employment, Training and Related Services 
Demonstration Act of 1992, to provide for the transfer of 
services and personnel from the Bureau of Indian Affairs to the 
Office of Self-Governance, to emphasize the need for job 
creation on Indian reservations, and for other purposes. We 
oppose two sections of S. 1279 and our comments follow.
    There are four major points of consideration with the 
legislation. They are to: (1) transfer certain services and 
personnel from the Bureau of Indian Affairs (Bureau) to the 
Office of Self-Governance (OSG) for the purpose of 
administering the 477 program, (2) require that the General 
Assistance and the Johnson O`Malley (JOM) Programs be included 
in Public Law 102-477, (3) allow the Department to waive 
statutory requirements, and (4) require at least two meetings 
per year between tribal representatives and the Assistant 
Secretary for Indian Affairs.

1. Transfer certain services and personnel from the Bureau of Indian 
        Affairs (Bureau) to the Office of Self-Governance

    Overall, we do not support S. 1279 as a means for 
organization the management and administration of Federal 
programs. Public Law 102-477 was enacted in October 1992 and 
the first grantees began implementing the program in January 
1994. Since that time, the Bureau has made considerable 
progress in the program's development. Participating tribes 
consistently report increased success in placing tribal members 
in jobs as a direct result of the program. We do not believe 
that a transfer of the program from the Bureau of the OSG is 
necessary or will ensure a more successful program.
    Tribes have argued that transferring the Public Law 102-477 
demonstration program into the OSG would provide more 
visibility and attention for the project; however, the program 
would then be competing for attention with the self-governance 
issues that surround the 64 compacts that include 206 Federally 
recognized tribes. The Public Law 102-477 program has had a 
high level of visibility and will continue to build on this 
visibility as more tribes seek to consolidate Bureau social 
service programs with other federal agencies programs under 
welfare reform.Tribes also assert that funds would be 
distributed more rapidly if OSG administered the Public Law 102-477 
program. At its inception, the tribes experienced grant approval and 
fund distribution delays. Furthermore, the numerous Continuing 
Resolutions in FY 1996 and FY 1997, further exacerbated funding 
distribution delays in this relatively new program. However, the Bureau 
has been and continues to modify internal procedures to address these 
delays. For example, initially Public Law 102-477 grants under Public 
Law 93-638 authority were issued by the Bureau's Area Offices. Due to 
the Area Office grant approval delays, we contradicted the Bureau's 
policy of decentralization, by centralizing and redelegating grant 
authority to the Bureau's Central Office Director of Economic 
Development in FY 1996. This reduced the amount of time to transfer 
funds to the tribes considerably.
    Upon approval of the Bureau's budget, Tribal Priority 
Allocation (TPA) funds are included in a tribe's base budget. 
Unless the tribe notifies the Bureau otherwise, the Bureau 
allots TPA funds to the Area Offices. Based on grant 
modifications, the portion of the funds which are attributable 
to the Public Law 102-477 grant are then returned to the Office 
of Economic Development so that the funds will be made 
available. For the FY 1999 distribution of Public Law 102-477 
funds, the Bureau will implement a similar procedure by 
withholding identified funds from the tribe's base budgets 
(i.e. TPA accounts) contingent upon tribal approval that their 
base budget may be decremented. This will ensure that funds are 
moved directly from Central Office to the tribes and bypass 
Area Office accounts. The Bureau is confident that this 
approach will further expedite fund transfers.
    We believe that a legislative mandate to make 
organizational changes as proposed will reduce the Bureau's 
management flexibility. For example, as the Bureau seeks 
creative strategies to address the current ``welfare-to-work'' 
initiatives, the Bureau may want to follow the lead of Public 
Law 102-477 tribes by combining the Public Law 102-477 
initiative with its social services programs.

2. Require that the General Assistance and the Johnson O'Malley (JOM) 
        Programs be included in Public Law 102-477

    After careful reconsideration of the issues involved, we 
have determined that inclusion of both the General Assistance 
(GA) and the Johnson O'Malley (JOM) Programs into Public Law 
102-477 is allowable. With respect to the GA program, 25 U.S.C. 
Sec. 13d restricts the available uses of GA appropriations. 
Nevertheless, incorporation of GA into a Public Law 102-477 
plan will allow tribes to more actively coordinate federal 
approaches to Indian education, employment, training and 
related programs as well as strengthen the federal-tribal 
partnership.
    We ask that the Committee consider that under 25 U.S.C. 
Sec. 456, the JOM parent committee must fully participate in 
the development of the programs that a JOM contractor will 
utilize in its educational plan; also the JOM parent committee 
has the authority to approve and disapprove those programs. The 
JOM program assists students by providing the tools to achieve 
basic state education requirements in their pursuit of 
elementary and high school diplomas; it is not a post-high 
school job placement and training program for adults. Moreover, 
JOM program funds must be expended in accordance with the 
statute.

3. Allow the Department to waive statutory requirements

    The Department of the Interior would be granted the 
authority to waive statutes for all programs including those 
under other Federal agencies. We oppose this provision because 
we believe the agency with statutory authority for 
administering the affected programs should have sole 
responsibility for granting waivers.

4. Require at least two (2) meetings per year between tribal 
        representatives and an official of the bureau whose appointment 
        is subject to the confirmation of the Senate

    The Deputy Commissioner meets regularly with tribal 
representatives and has a good working relationship with the 
Public Law 102a-477 grantees. As a testament to its commitment 
to work with the tribes, the Bureau has funded a tribal work 
group over the past several years to assist the Bureau in its 
implementation of the Public Law 102-477 program. Furthermore, 
the Assistant Secretary for Indian Affairs is currently in the 
process of extending invitations to the participating agencies 
and tribal grantees to discuss and review the Public Law 102-
477 programs' progress.
    We look forward to further discussions with Committee staff 
on these issues.
            Sincerely,
                                               Kevin Gover,
                               Assistant Secretary--Indian Affairs.

                        Changes in Existing Law

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
enactment of S. 1279 will result in the following changes in 25 
U.S.C. Sec. Sec. 3401 et seq., with existing language which is 
to be deleted in black brackets and new language to be added to 
italic:

           *       *       *       *       *       *       *


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Indian Employment, Training 
and Related Services Demonstration Act Amendments of 1998''.

           *       *       *       *       *       *       *


SEC. 2. FINDINGS.

    Congress finds that--
          (1) Indian tribes and Alaska Native organizations 
        that have participated in carrying out programs under 
        the Indian Employment, Training and Related Services 
        Demonstration Act of 1992 (25 U.S.C. 3401 et seq.) 
        have--
                  (A) improved the effectiveness of services 
                provided by those tribes and organizations;
                  (B) enabled more Indian people to secure 
                employment;
                  (C) assisted welfare recipients; and
                  (D) otherwise demonstrated the value of 
                integrating education, employment, and training 
                services.
          (2) The initiative under the Indian Employment, 
        Training and Related Services Demonstration Act of 1992 
        should be strengthened by ensuring that all programs 
        that emphasize the value of work may be included within 
        a demonstration program of an Indian tribe or Alaska 
        Native organization.
          (3) The initiative under the Indian Employment, 
        Training and Related Services Demonstration Act of 1992 
        shares goals and innovative approaches of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450 et seq.).
          (4) The programs referred to in paragraph (2) should 
        be implemented by the Office of Self-Governance of the 
        Department of the Interior, the unit within the 
        Department of the Interior responsible for carrying out 
        self-governance programs under the Indian Self-
        Determination and Education Assistance Act.
          (5) The initiative under the Indian Employment, 
        Training and Related Services Demonstration Act of 1992 
        should have the benefit of the support and attention of 
        the officials of--
                  (A) the Department of the Interior; and
                  (B) other Federal agencies involved with 
                policymaking authority with respect to programs 
                that emphasize the value of work for American 
                Indians and Alaska Natives.

           *       *       *       *       *       *       *


                             25 U.S.C. 3402

Sec. 3402. Definitions

    For the purposes of this Act, the following definitions 
apply:
          (1) Federal agency.--The term ``Federal agency'' has 
        the same meaning given the term ``agency'' in section 
        551(1) of title 5, United States Code.
          [(1)](2) Indian tribe.--The terms ``Indian tribe'' 
        and ``tribe'' shall have the meaning given the term 
        ``Indian tribe'' in section 4(e) of the Indian Self-
        Determination and Education Assistance Act.
          [(2)](3) Indian.--The term ``Indian'' shall have the 
        meaning given such term in section 4(d) of the Indian 
        Self-Determination and Education Assistance Act.
          [(3)](4) Secretary.--Except where otherwise provided, 
        the term ``Secretary'' means the Secretary of the 
        Interior.

           *       *       *       *       *       *       *


                             25 U.S.C. 3404

Sec. 3404. Programs affected

    (a) In General.--The programs that may be integrated in a 
demonstration project under any such plan referred to in 
section 4 shall include any program under which an Indian tribe 
is eligible for receipt of funds under a statutory or 
administrative formula for the purposes of job training, tribal 
work experience, [employment opportunities, or skill 
development, or any program designed for the enhancement of job 
opportunities or employment training.] securing employment, 
retaining employment, or creating employment opportunities and 
other programs relating to the world of work.
    (b) Programs.--The programs referred to in subsection (a) 
may include, at the option of an Indian tribe--
          (1) the program commonly referred to as the general 
        assistance program established under the Act of 
        November 2, 1921 (commonly known as the ``Snyder Act'') 
        (42 Stat. 208, chapter 115; 25 U.S.C. 13); and
          (2) the program known as the Johnson O'Malley Program 
        established under the Johnson O'Malley Act (25 U.S.C. 
        452 through 457), if the applicable plan for the Indian 
        tribe under section 4 includes education services for 
        elementary and secondary school students that 
        familiarize those students with the world of work.

           *       *       *       *       *       *       *


                             25 U.S.C. 3406

Sec. 3406. Plan review

    Upon receipt of the plan from a tribal government, the 
Secretary of the Interior shall consult with the Secretary of 
each [Federal department] Federal Agency providing funds to be 
used to implement the plan, and with the tribal government 
submitting the plan. The parties so consulting shall identify 
any waivers of statutory requirements or of [Federal 
departmental] Federal agency regulations, policies, or 
procedures necessary to enable the tribal government to 
implement its plan. Notwithstanding any other provision of law, 
the Secretary of the affected [department] agency shall have 
the authority to waive any statutory requirement, regulation, 
policy, or procedure promulgated by that [department] agency 
that has been so identified by such tribal government or 
[department] agency, unless the Secretary of the affected 
[department] agency determines that such a waiver is 
inconsistent with the purposes of this Act or those provisions 
of the statute from which the program involved derives its 
authority which are specifically applicable to Indian programs.

           *       *       *       *       *       *       *


                             25 U.S.C. 3407

Sec. 3407. Plan approval

    Within 90 days after the receipt of a tribal government's 
plan by the Secretary, the Secretary shall inform the tribal 
government, in writing, of the Secretary's approval or 
disapproval of the plan (including any request for a waiver 
that is made as part of the plan submitted by the tribal 
government). If the plan is disapproved, the tribal government 
shall be informed, in writing, of the reasons for the 
disapproval and shall be given an opportunity to amend its plan 
or to petition the Secretary to reconsider such disapproval, 
including reconsidering the disapproval of any waiver requested 
by the Indian tribe.

           *       *       *       *       *       *       *


                             25 U.S.C. 3408

Sec. 3408. Job creation activities

    (a) In General.--The plan submitted by a tribal government 
may involve the expenditure of funds for the creation of 
employment opportunities and for the development of the 
economic resources of the tribal government or of individual 
Indian people if such expenditures are consistent with an 
overall regional economic activity which has a reasonable 
likelihood of success and consistent with the purposes 
specifically applicable to Indian programs in the statute under 
which the funds are authorized.
    (b) Employment Opportunities.--
          (1) In general.--Notwithstanding any other provision 
        of law, including any requirement of a program that is 
        integrated under a plan under this Act, a tribal 
        government may use a percentage of the funds made 
        available under this Act (as determined under paragraph 
        (2)) for the creation of employment opportunities, 
        including providing private sector training placement 
        under section 10.
          (2) Determination of percentage.--The percentage of 
        funds that a tribal government may use under this 
        subsection is the greater of--
                  (A) the rate of unemployment in the area 
                subject to the jurisdiction of the tribal 
                government; or
                  (B) 10 percent.
    (c) Limitation.--The funds used for an expenditure 
described in subsection (a) may only include funds made 
available to the Indian tribe by a Federal agency under a 
statutory or administrative formula.

           *       *       *       *       *       *       *


                           25 U.S.C. 3410(a)

Sec. 3410. Federal responsibilities

    (a) Responsibilities of the Department of the Interior.--
Within 180 days following the date of enactment of this Act, 
the Secretary of the Interior, the Secretary of Labor, the 
Secretary of Health and Human Services and the Secretary of 
Education shall enter into an interdepartmental memorandum of 
agreement providing for the implementation of the demonstration 
projects authorized under this Act. The lead agency for a 
demonstration program under this Act shall be the [Bureau of 
Indian Affairs] Office of Self-Governance of the Department of 
the Interior. The responsibilities of the lead agency shall 
include--
          (1) the use of a single report format related to the 
        plan for the individual project which shall be used by 
        a tribal government to report on the activities 
        undertaken under the project;
          (2) the use of a single report format related to the 
        projected expenditures for the individual project which 
        shall be used by a tribal government to report on all 
        project expenditures;
          (3) the development of a single system of Federal 
        oversight for the project, which shall be implemented 
        by the lead agency; [and]
          (4) the provision of technical assistance to a tribal 
        government appropriate to the project, delivered under 
        an arrangement subject to the approval of the Indian 
        tribe participating in the project, except that a 
        tribal government shall have the authority to accept or 
        reject the plan for providing such technical assistance 
        and the technical assistance provider[.]; and
          (5) the convening by an appropriate official of the 
        lead agency (whose appointment is subject tothe 
confirmation of the Senate) and a representative of the Indian tribes 
that carry out demonstration projects under this Act, in consultation 
with each such Indian tribe, of a meeting not less than 2 times during 
each fiscal year for the purpose of providing an opportunity for all 
Indian tribes that carry out demonstration projects under this Act to 
discuss issues relating to the implementation of this Act with 
officials of each department specified in subsection (a).

           *       *       *       *       *       *       *


                   Note to 25 U.S.C. 3410 as amended

SECTION 3(G). ADDITIONAL RESPONSIBILITIES.

    Additional Responsibilities.--In assuming the 
responsibilities for carrying out the duties of a lead agency 
under section 11(a) of the Indian Employment, Training and 
Related Services Demonstration Act of 1992 (25 U.S.C. 3410(a)) 
pursuant to the amendments made to that section by subsection 
(f) of this section, the Director of the Office of Self-
Governance of the Department of the Interior shall ensure that 
an orderly transfer of those lead agency functions to the 
Office occurs in such manner as to eliminate any potential 
adverse effects on any Indian tribe that participates in a 
demonstration project under the Indian Employment, Training and 
Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et 
seq.).

           *       *       *       *       *       *       *


                   Note to 25 U.S.C. 3410 as amended

SECTION 3(H). PERSONNEL

    Personnel.--In carrying out the amendment made by 
subsection (f)(1), the Secretary of the Interior shall transfer 
from the Bureau of Indian Affairs to the Office of Self-
Governance of the Department of the Interior such personnel and 
resources as the Secretary determines to be appropriate.

           *       *       *       *       *       *       *


                             25 U.S.C. 3418

SEC. 19. CONSOLIDATED ADVISORY COMMITTEE.

    (a) In General.--The head of each Federal agency specified 
in section 4 that otherwise has jurisdiction over a program 
that is integrated under this Act (in accordance with a plan 
under section 6) shall permit a tribal government that carries 
out that plan to establish a consolidated advisory committee to 
carry out the duties of each advisory committee that would 
otherwise be required under applicable law (including any 
council or commission relating to private industry) to carry 
out the programs integrated under the plan.
    (b) Waivers.--As necessary to carry out subsection (a), 
each agency head referred to in that paragraph shall waive any 
statutory requirement, regulation, or policy requiring the 
establishment of an advisory committee (including any advisory 
commission or council).

           *       *       *       *       *       *       *


                             25 U.S.C. 3419

SEC. 20. ALASKA REGIONAL CONSORTIA.

    (a) In General.--Notwithstanding any other provision of 
law, subject to subsection (b), the Secretary shall permit a 
regional consortium of Alaska Native villages or regional or 
village corporations (as defined in or established under the 
Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)) 
to carry out a project under a plan that meets the requirements 
of this Act through a resolution adopted by the governing body 
of that consortium or corporation.
    (b) Withdrawal.--Nothing in subsection (a) is intended to 
prohibit an Alaska Native village or regional or village 
corporation from withdrawing from participation in any portion 
of a program conducted pursuant to that subsection.

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                           Note to Amendment

SECTION 6. EFFECTIVE DATES.

    This Act and the amendments made by this Act shall take 
effect on the date of enactment of this Act, except that the 
transfer of functions to the Office of Self-Governance of the 
Department of the Interior under the amendment made by section 
3(f)(1) shall be carried out not later than 90 days after the 
date of enactment of this Act.