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                                                       Calendar No. 334
106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-197

======================================================================



 
 AMENDING TITLE 36 OF THE UNITED STATES CODE TO ESTABLISH THE AMERICAN 
                      INDIAN EDUCATION FOUNDATION

                                _______
                                

                October 20, 1999.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1290]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 1290) to amend title 36 of the United States Code to 
establish the American Indian Education Foundation, and for 
other purposes, having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                                Purpose

    The purpose of S. 1290 is to establish an American Indian 
Education Foundation (Foundation), a charitable, non-profit 
corporation that would be authorized to: (1) encourage, accept, 
and administer private gifts in support of the Bureau of Indian 
Affairs' (BIA) Office of Indian Education; (2) conduct 
activities that will further educational opportunities of 
American Indians and Alaska Natives attending BIA schools; and 
(3) assist Federal, State, tribal, and individual entities that 
will further the educational opportunities of American Indians 
and Alaska Natives attending BIA schools.

                               Background

    Currently, there is no formal mechanism that would enable 
those in the non-public sectors who desire to provide financial 
support to the education of Indian children in schools 
administered by the Bureau of Indian Affairs. In FY 2000, it 
will cost approximately $3,100 to send an Indian child to 
elementary or secondary school. S. 1290 would serve as the 
means to enable the contribution of private gifts in support of 
American Indian and Alaska Native students attending BIA 
schools. Similar foundations have been established to 
facilitate the support of the National Park Service and 
national fish and wildlife initiatives. The proposed American 
Indian Education Foundation is modeled after these foundations.
    The Congress established the National Park Foundation (NPF) 
in 1967. The NPF's purpose is to raise funds for the National 
Park Service in an official capacity. The Foundation receives 
contributions from other foundations, corporations and 
individuals and in turn makes funds available to individual 
parks through a competitive grants program. At the end of 
Fiscal Year 1998, the NPF helped raise over $10 million. One of 
the main purpose of the NPF is to assist parks in developing 
their own fund raising capacity through volunteers, referred to 
as ``friends'' organizations. Through grants of staff time and 
other support, NPF helps offset some fund raising start-up 
costs for such organizations.
    Congress established the National Fish and Wildlife 
Foundation (NFWF) in 1984. The NFWF identifies conservation 
needs, reviews proposed projects, fosters cooperative 
partnerships, and dedicates a mixture of Federal and non-
Federal funds to on-the-ground conservation projects. The NFWF 
makes funds available in the form of challenge grants, matching 
contributions with NFWF funds. The NFWF has made more than 
2,900 grants, committing over $127 million in Federal funds, 
matched with non-Federal dollars, and delivering more than $367 
million for conservation.

                 Section-by-Section Analysis of S. 1290

    Section 1 provides the Short-Title of the Act as the 
``American Indian Education Foundation Act of 1999'' 
(Foundation).
    Section 2 amends Part B of subtitle II of title 36, United 
States Code, by inserting after chapter 215 the heading 
``Chapter 216. American Indian Education Foundation'' and 
listing Sections 280101 through 280109 under that heading. A 
section-by-section analysis of those sections is set forth 
below:
    Section 21601 addresses the organization of the Foundation, 
providing that it is to be a federally-chartered corporation 
with a perpetual existence. The section provides that the 
Foundation is a charitable, nonprofit corporation which is not 
an agency or instrumentality of the United States. Section 
21601 further provides that the Foundation is to be 
incorporated and domiciled in the District of Columbia. Section 
21601 sets forth the definitions for the following terms as 
used in the Act. The term ``American Indian'' has the meaning 
given the term ``Indian'' in section 4(d) of the Indian Self-
Determination and Assistance Act--

          ``Indian'' means a person who is a member of an 
        Indian tribe; and ``Indian tribe'' means any Indian 
        tribe, band, nation, or other organized group 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 recognized as 
        eligible for the special programs and services provided 
        by the United States to Indians because of their status 
        as Indians.

    The term ``Bureau funded school'' has the meaning given 
that term in section 1146 of the Education Amendments of 1978--

          Bureau funded school is: (A) a Bureau [of Indian 
        Affairs] school; (B) a contract school; or (C) a school 
        for which assistance is provided under the Tribally 
        Controlled Schools Act of 1988 [25 U.S.C.A. Sec. 2501 
        et seq.].

    Section 21602 sets forth the purposes of the Foundation, 
which are: (1) to encourage, accept, and administer private 
gifts of real and personal property or any income derived from 
such property or other interest therein for the benefit of or 
in support of the mission of the Office of Indian Education 
programs of the Bureau of Indian Affairs or any office which 
may be a successor to the Office of Indian Education; (2) to 
undertake and conduct such other activities as will further the 
educational opportunities of American Indians who attend a 
Bureau-funded school; and (3) to participate with and otherwise 
assist Federal, State and tribal governments, agencies, 
entities, and individuals in undertaking and conducting 
activities that will further the educational opportunities of 
American Indians attending Bureau-funded schools.
    Section 21603 addresses the governing body of the 
Foundation. The Foundation's board of directors is to serve as 
the governing body of the Foundation. The board is authorized 
to exercise or provide for the exercise of the powers of the 
Foundation. Section 21603 also provides that subject to section 
3 of the American Indian Education Foundation Act of 1999, the 
constitution and bylaws of the Foundation shall provide for the 
number of members of the board, the manner of selection of 
those members, the filling of vacancies for the board, and the 
terms of office of the members of the board, except that the 
board shall have at least eleven members, two of whom shall be 
the Secretary of the Interior and the Assistant Secretary of 
the Interior for Indian Affairs, who shall serve as ex officio 
nonvoting members. Section 21603 further provides that the 
members of the board shall be citizens of the United States who 
are knowledgeable or experienced in American Indian education, 
and to the extent practicable, shall represent diverse points 
of view relating to the education of American Indians. Section 
21603 provides that the officers of the Foundation shall be a 
secretary elected from among members of the board and any other 
officers provided for in the constitution and bylaws of the 
Foundation. The section provides that the secretary shall 
serve, as the director of the board, as its chief operating 
officer and shall be knowledgeable and experienced in matters 
relating to education in general and education of American 
Indians in particular. The section further provides that the 
manner of election, term of office, and duties of the officers 
shall be as provided in the constitution and bylaws of the 
Foundation. Section 21603 states that except for travel 
expenses, no compensation shall be paid to a member of the 
board by reason of service as a member. The section provides 
that a member of the board shall be reimbursed for actual and 
necessary travel and subsistence expenses incurred by that 
member in the performance of the duties of the Foundation.
    Section 21604 authorizes the Foundation to exercise certain 
enumerated powers. The Foundation shall adopt a constitution 
and bylaws for the management of its property and the 
regulation of its affairs; shall adopt and alter a corporate 
seal; may make contracts subject to the limitation of this 
chapter; may acquire (through a gift or otherwise), own, lease, 
encumber, and transfer real or personal property as necessary 
or convenient to carry out the purposes of the Foundation; may 
sue or be sued; and may carry out any other act necessary and 
proper to carry out the purposes of the Foundation.
    Section 21605 provides that the principal office of the 
Foundation shall be in the Districtof Columbia. The section 
further provides that the activities of the Foundation may be 
conducted, and offices may be maintained throughout the United States 
in accordance with the constitution and the bylaws of the Foundation.
    Section 21606 provides that the Foundation shall comply 
with the law on service of process of each State in which it is 
incorporated and of each State in which the Foundation carries 
on activities.
    Section 21607 provides that the Foundation shall be liable 
for the acts of its officers and agents acting within the scope 
of their authority, and that members of the board are to be 
personally liable only for gross negligence in the performance 
of their duties.
    Section 21608 provides that beginning with the fiscal year 
following the first full fiscal year during which the 
Foundation is in operation, the administrative costs of the 
Foundation may not exceed 10 percent of the sum of the amounts 
transferred to the Foundation under Section 21609 during the 
preceding fiscal year; and donations received from private 
sources during the preceding fiscal year. The section also 
provides that the appointment of officers and employees of the 
Foundation shall be subject to the availability of funds. 
Section 21608 provides that the members of the board, and the 
officers, employees, and agents of the Foundation shall not, by 
reason of their association with the Foundation, be considered 
to be officers, employees, or agents of the United States.
    Section 21609 authorizes the Secretary of the Interior to 
transfer to the Foundation funds held by the Department of 
Interior under the Act of February 14, 1931 (46 Stat. 1106, 
chapter, 171; 25 U.S.C. 451) if the transfer or use of such 
funds is not prohibited by any term under which the funds were 
donated. This section also provides for the amendment of the 
table of chapters for part B of subtitle II of Title 36, United 
States Code.
    Section 3 provides that not later than six months after the 
date of enactment, the Secretary of the Interior shall appoint 
the initial voting member of the board of directors under 
section 21603 of title 36, United States Code, and that the 
initial members of the board shall have staggered terms as 
determined by the Secretary of the Interior. The section 
further provides that the composition of all successive boards 
after the initial board shall be in conformity with the 
constitution and bylaws of the Foundation. Section 3 further 
provides that subject to reimbursement provisions, during the 
5-year period beginning on the date of enactment of this Act, 
the Secretary of the Interior may provide personnel, 
facilities, and other administrative support services to the 
Foundation; may provide funds to reimburse the travel expenses 
of the members of the board under section 21603(c)(2) of title 
36, United States Code; and shall require and accept 
reimbursements from the Foundation for the personnel, 
facilities, and other administrative support services provided 
and travel expense reimbursement funds provided. Section 3 
provides that reimbursements accepted under paragraph (1)(C) 
shall be deposited in the Treasury to the credit of the 
appropriations then current and chargeable for the cost of 
providing services described in paragraph (1)(A) and the travel 
expenses described in paragraph (1)(B). Finally, section 3 
provides that notwithstanding any other provision of this 
section, the Secretary of the Interior may continue to provide 
facilities and necessary support services to the Foundation 
after the termination of the 5-year period specified in 
paragraph (1), on a space available, reimbursable cost basis.

                          Legislative History

    S. 1290, the American Indian Education Foundation Act of 
1999 was introduced on June 28, 1999 by Senator Inouye for 
himself and for Senators Domenici, Dorgan, Conrad, Bingaman, 
Johnson, Daschle, and Akaka with Senator Baucus joining as co-
sponsor on July 1, 1999. The bill was referred to the Committee 
on Indian Affairs. A hearing on S. 1290 was held on July 1, 
1999. On August 4, 1999, the Committee on Indian Affairs 
convened a business meeting to consider S. 1290 and other 
measures that had been referred to the Committee. The Committee 
ordered S. 1290 favorably reported to the full Senate without 
amendment.

            Committee Recommendation and Tabulation of Vote

    On August 4, 1999, the Committee on Indian Affairs, in an 
open business session, ordered S. 1290 favorably reported to 
the full Senate without amendment.

                    Cost and Budgetary Consideration

    The cost estimate for S. 1290 as calculated by the 
Congressional Budget Office, is set forth below:
                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, September 1, 1999.
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. 1290, the American 
Indian Education Foundation Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 1290--American Indian Education Foundation Act of 1999

    S. 1290 would establish the American Indian Education 
Foundation, a charitable and nonprofit corporation to support 
the mission of the Office of Indian Education Programs within 
the Bureau of Indian Affairs (BIA). The foundation would assist 
federal, state, tribal, and other entities in efforts to 
improve educational opportunities for American Indians 
attending BIA-funded schools. Funding for the foundation would 
be provided through a transfer of donated funds currently held 
by the Department of Interior (DOI) as well as other donations 
solicited and received by the foundation itself. In addition, 
S. 1290 would allow the Secretary of the Interior to provide 
reimbursable administrative and financial support to the 
foundation during its first five years of operation.
    Based on information from DOI, CBO estimates that 
implementing S. 1290 would not significantly affect the federal 
budget over the 2000-2004 period. Assistance provided by DOI 
during the first five years, which would probably not exceed 
$500,000 in any year, would be subject to appropriation and 
must be fully reimbursed by the foundation. Thus, CBO estimates 
that this provision would have no net impact on discretionary 
spending. The transfer of donated funds from DOI to the 
foundation would increase direct spending in 2000; therefore, 
pay-as-you-go procedures would apply. CBO estimates, however, 
that these donations total less than $500,000. S. 1290 contains 
no intergovernmental or private-sector mandates as defined by 
the Unfunded Mandates Reform Act and would impose no costs on 
the budgets of tribal, state, or local governments.
    The CBO staff contact is Megan Caroll. This estimate was 
approved by Paul N. Van de Water, Assistant Director for Budget 
Analysis.

                      Regulatory Impact Statement

    The Committee has concluded that enactment of S. 1290 will 
create no regulatory or paperwork burdens.

                        Executive Communications

    Set forth below is the testimony of Michael J. Anderson, 
the Deputy Assistant Secretary for Indian Affairs within the 
Department of the Interior on S. 1290.

Testimony of the Deputy Assistant Secretary for Indian Affairs, Michael 
                J. Anderson, Department of the Interior

    Good morning, Mr. Chairman and members of the Committee. I 
am pleased to be here to request your approval of the 
Administration's proposed American Indian Education Foundation 
Act of 1999 sponsored by Senator Inouye and other members of 
this Committee. The First Lady spoke on behalf of this 
worthwhile initiative at the ceremony she hosted announcing the 
design of the Sacajawea Dollar coin and to celebrate the 
contributions of American Indian and Alaska Native women, just 
one day after our legislative proposal was submitted to the 
Congress.
    The purpose of the American Indian Education Foundation is 
to encourage gifts of real and personal property and income for 
the support of the mission of the Bureau of Indian Affairs 
(BIA), Office of Indian Education Programs, as well as to 
benefit American Indian and Alaska Native children enrolled in 
elementary and secondary schools. Congress has authorized 
similar foundations in the past to benefit other activities 
within the Department of the Interior (Department) such as the 
National Park Foundation and the Fish and Wildlife Foundation. 
Congress has also passed legislation creating foundations in 
the Department of Agriculture.
    Let me begin by outlining what the Department believes to 
be the principal reasons why an American Indian Education 
foundation is needed.
    First, while Congress and the Administration have worked 
together over the past few years to strengthen Indian 
Education, Indian schools still have numerous needs that can 
never be met through Federal funds alone. As an example, 
teachers serving in Indian schools are not fully prepared to 
meet the needs of students who will be entering the 
technological workforce of the 21st Century. While Federal 
funds support curriculum development and on-going school 
operations, there is little to no funding available to cover 
the costs of training teachers in using the technology that 
will soon be coming into the schools, through the BIA's Access 
Native America program. Funds raised by the American Indian 
Education Foundation could be used to pay for teacher training 
programs at our schools.
    Another example is the tremendous need for Family Literacy 
Programs in Indian communities. It has been established through 
numerous studies that early childhood and family literacy 
programs, such as our Family and Child Education (FACE) 
program, work. While the BIA has been able to support 22 of 
these programs, which annually serve over 1,600 families and 
children, and family literacy programs in other agencies also 
provide support for BIA-connected programs, there is a need to 
have these programs in all communities. The proposed foundation 
could support these activities.
    Second, there is substantial private interest in supporting 
Indian education activities, but, up until now, there has been 
no national organization formed to support the BIA's 
educational activities. In the past, individuals have donated 
funds for Indian education that are invested by the Office of 
Trust Funds Management. These funds amount to more than 
$900,000 and are used to fund activities according to the 
donor's wishes. Other groups, companies, and individuals have 
approached the BIA wanting to make donations for specific 
projects or activities at our schools. The proposed foundation 
would facilitate such contributions. Once the foundation is 
recognized by the Internal Revenue Service as a tax-exempt 
charity, contributions to the foundation would be tax-
deductible.
    Third, a National nonprofit foundation whose sole purpose 
is to raise funds for American Indians at the elementary and 
secondary education level does not currently exist. I'm sure 
that a number of Foundations have come to mind, including the 
American Indian Scholarship (AIS) Foundation, which exists to 
support students enrolled in colleges and universities. Some 
local schools or tribes have their own local nonprofits to 
solicit bequests and gifts for their own individual members, 
but there is no nationwide foundation to support the K-12 
education of American Indian students. To their credit, local 
community businesses often do provide support to schools, 
donating food for Bingo fundraising events or buying yearbook 
ads, but their capacity for giving is limited by their 
geographic isolation. A small trading post on an Indian 
reservation can only give so much. The American Indian 
Education Foundation could solicit far larger donations through 
its national mission.
    The BIA has worked hard over the past years to bring 
corporations and schools together in joint partnerships. The 
Microsoft Corporation has supplied equipment and software to 
the 19 schools involved in the Four Directions Project, one of 
the first Technology Innovation Challenge Grants funded by the 
U.S. Department of Education. In 1997, the Four Directions 
Project received the prestigious Government Technology 
Leadership Award for its innovation in bringing together 
partners that provide teacher training in a distributed 
computer environment. The Intel Corporation has supported 
technology initiatives at the Santa Fe Indian School, providing 
equipment, teacher training, and student training on how to 
refurbish old computers. These contributions alone exceed $2 
million. The Office of Indian Education Programs is currently 
working with Tech Corps on a pilot project supported by Compaq 
to provide online technical support to schools over the 
Internet. The project connects experienced network 
administrators from the private sector with inexperienced and, 
in some cases, untrained school network administrators over the 
Internet to help them solve technical problems in their schools 
buildings. This will provide the schools with some of the help 
they need to make their school networks a success.
    There is so much that can be done by the creation of 
partnerships with industry. A Foundation would be a viable 
entity to actively seek support on behalf of Indian children.
    Next, let me address how the American Indian Education 
Foundation will be organized. An 11-member Board of Directors 
will govern the American Indian Education Foundation. The 
Secretary of the Interior and the Assistant Secretary for 
Indian Affairs will be ex officio non-voting members. Within 
six months of enactment of the legislation, the Secretary of 
the Interior will appoint nine additional Directors to serve on 
the Board without compensation. The members of the Board will 
be chosen based on their knowledge of Indian education and 
their diverse points of view. Members will be appointed for 
staggered terms. The Board of Directors will adopt a 
constitution and by-laws and be governed under the laws for 
nonprofit corporations in the District of Columbia. The Board 
of Directors will also be responsible for hiring the American 
Indian Education Foundation Chairman.
    The American Indian Education Foundation will operate 
similarly to the National Park Foundation. It will operate 
separately from the Department of the Interior and the BIA. The 
proposed legislation authorizes the American Indian Education 
Foundation to receive some administrative support from the 
Department of the Interior during its initial five years of 
operation but does not request additional dollars. It is 
anticipated that the American Indian Education Foundation will 
be self-supporting after this five-year period.
    In closing, Mr. Chairman, I thank you for the opportunity 
to express the Administration's support for this legislation 
and encourage your positive consideration. The education of 
Indian children is one of the highest priorities of the 
Department, and we must all work together to ensure that no 
stone is left unturned to gather resources to ensure that the 
American Indian and Alaska Native children have the very best 
educational opportunities these United States can provide.
    I will be happy to answer any questions you may have.

                        Changes in Existing Law

    In compliance with subsection 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill are required to be set out in the accompanying 
Committee report. The Committee finds that enactment of S. 1290 
(specifically Section 2) will change the existing law as 
follows.
    In General.--Part B of subtitle II of title 36, United 
States Code, is amended by inserting after the item relating to 
chapter 215 the following:

          ``CHAPTER 216. AMERICAN INDIAN EDUCATION FOUNDATION

``Sec.
``21601. Organization.
``21602. Purposes.
``21603. Governing body.
``21604. Powers.
``21605. Principal office.
``21606. Service of process.
``21607. Liability of officers and agents.
``21608. Restrictions.
``21609. Transfer of donated funds.

    Additionally, Section 21609 (Transfer of donated funds), 
Section B, amends the United States Code table of chapters as 
follows:
    (B) Clerical Amendment.--The table of chapters for part B 
of subtitle II of title 35, United States Code, is amended by 
inserting after the item relating to Chapter 215 the following:

``216. American Indian Education Foundation.....................21601''.