In this report, the Select Committee on Indian Affairs, having considered Senate bill 1645 (S. 1645) to reauthorize certain Indian educational programs, presents an amended bill and recommends its passage by unanimous vote. In late 1986, the Bureau of Indian Affairs (BIA) proposed to turn over all BIA schools to the states, if affected tribes refused to contract for their operation. Indian reaction to this proposal was strongly negative. S. 1645 as introduced placed BIA schools under Congressional "protection" and froze certain education regulations in place. The Committee substitute bill simply prohibits transfer of BIA schools to non-tribal entities without tribal or Congressional consent, and it establishes regional panels to review BIA education regulations. The amended bill also (1) adds a small formula grant to tribal supplemental programs for early childhood education; (2) rewrites scattered authorizations to create a single document covering the entire Indian Education Act; (3) clarifies eligibility requirements for Indian students in public schools; (4) establishes Gifted and Talented Centers at two tribal colleges; (5) requires that Indian preference be used in employment at the Office of Indian Education, Department of Education; and (6) proposes a White House Conference on Indian education. The report includes background and legislative history of S. 1645, section by section analysis, a cost estimate from the Congressional Budget Office, letters of strong opposition from the BIA and partial opposition from the Department of Education, and the texts of all changes to existing laws made by S. 1645. (SV)