102 STAT. 372
PUBLIC LAW 100-297—APR. 28, 1988
tive cost functions, that are operated directly by a tribe or tribal organization under a contract or agreement with the Bureau. "(4)(A) Except as otherwise provided in this paragraph, the direct cost base of a tribe or tribal organization for the fiscal year is the aggregate direct cost program funding for all tribal elementary or secondary educational programs operated by the tribe or tribal organization during— "(i) the second fiscal year preceding such fiscal year, or "(ii) if such programs have not been operated by the tribe or tribal organization during the 2 preceding fiscal years, the first fiscal year preceding such fiscal year. "(B) In the case of Bureau elementary or secondary education functions which have not previously been operated by a tribe or tribal organization under contract or agreement with the Bureau, the direct cost base for the initial year shall be the projected aggregate direct cost program funding for all Bureau elementary and secondary functions to be operated by the tribe or tribal organization during that fiscal year. "(5) The term 'maximum base rate' means 50 percent. "(6) The term 'minimum base rate' means 11 percent. "(7) The term 'standard direct cost base' means $600,000. "(f)(1) Upon the enactment of the Indian Education Amendments of 1988, the Secretary shall— "(A) conduct such studies as may be needed to establish an empirical basis for determining relevant factors substantially affecting the required administrative costs of tribal elementary and secondary educational programs, using the formula set forth in subsection (c), and "(B) a study to determine— "(i) a maximum base rate which ensures that the amount of the grants provided under this section will provide adequate (but not excessive) funding of the administrative costs of the smallest tribal elementary or secondary educational programs, "(ii) a minimum base rate which ensures that the amount of the grants provided under this section will provide adequate (but not excessive) funding of the administrative costs of the largest tribal elementary or secondary educational programs, and "(iii) a standard direct cost base which is the aggregate direct cost funding level for which the percentage determined under subsection (c) will— "(I) be equal to the median between the maximum base rate and the minimum base rate, and "(II) ensure that the amount of the grants provided under this section will provide adequate (but not excessive) funding of the administrative costs of tribal elementary or secondary educational programs closest to the size of the program. "(2) The studies required under paragraph (1) shall— "(A) be conducted in full consultation (in accordance with section 1130) with— "(i) the tribes and tribal organizations that are affected by the application of the formula set forth in subsection (c), and
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