,,ii  #aae? ,,congress  #b;d ,session   
,s4 #beag  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,m>* #g1 #bjah,mr4     
,sasse 7= himself1 ,mr4 ,scott1 & ,mr4  
,lee7 introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to am5d ! ,elem5t>y &       
,second>y ,education ,act ( #aife to    
all[ p>5ts ( eligible milit>y dep5d5t   
*ildr5 to e/abli% ,milit>y ,education   
,sav+s ,acc\nts1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,milit>y ,education ,sav+s ,acc\nt ,act 
( #bjah4  #b4 ,milit>y education sav+s  
acc\nts ,title ,,vii ( ! ,elem5t>y &    
,second>y ,education ,act ( #aife 7#bj  
,u4,s4,c4 #ggja et seq47 is am5d$ by    
ins]t+ aft] section #gjab ! foll[+3     
#gjab;,a4 ,milit>y education sav+s      
acc\nts  7a7 ,9 g5]al ,! ,secret>y (    
,education1 9 consultation ) ! ,secret>y
 ( ,def5se1 %all c>ry out a program "u  
:i* ! ,secret>y ( ,education %all--     
7#a7 subject to ! availability ( funds  

pursuant to section #gjad7;f71 at !     
reque/ ( a p>5t ( an eligible milit>y   
dep5d5t *ild1 e/abli% an acc\nt on      
behalf ( su* *ild 7to be kn[n z a       
,milit>y ,education ,sav+s ,acc\nt7 into
 :i* ! ,secret>y %all deposit funds 9 an
 am\nt det]m9$ "u subsection 7d72 &     
7#b7 e/abli% a proc$ure "u :i* ! p>5t ( 
! *ild may use funds 9 ! acc\nt to pay =
 ! educational exp5ses ( ! *ild 9       
accordance ) ?is section4  7b7          
,application  7#a7 ,9 g5]al ,to be      
eligible to p>ticipate 9 ! program "u   
?is section = a s*ool ye>1 a p>5t ( an  
eligible milit>y dep5d5t *ild %all      
submit an application to ! ,secret>y 9  
accordance ) ?is subsection4  7#b7      
,application process ,9 c>ry+ out       
p>agraph 7#a71 ! ,secret>y %all-- 7,a7  
accept applications on a ye>-r\nd basis 
& e/abli% proc$ures = approv+           
applications 9 an exp$iti\s mann]2 &    
7,b7 create a /&>diz$ =m t p>5ts c use  
to apply = ! program & ensure t su* =m  
is readily available 9 writt5 &         

electronic =mats1 includ+ on a publicly 
accessible website4  7#c7 ,approval     
,subject to ! availability ( funds to   
c>ry out ?is section1 ! ,secret>y %all  
approve ! application ( a p>5t to       
e/abli% a ,milit>y ,education ,sav+s    
,acc\nt if--  7,a7 ! application is     
submitt$ 9 accordance ) ! application   
process e/abli%$ by ! ,secret>y pursuant
 to ?is subsection2  7,b7 ! application 
demon/rates t ! *ild on ^: behalf !     
,milit>y ,education ,sav+s ,acc\nt is to
 be e/abli%$ is an eligible milit>y     
dep5d5t *ild2 &  7,c7 ! p>5t :o submits 
! application ent]s into a writt5       
agreem5t ) ! ,secret>y pursuant to      
subsection 7c74  7#d7 ,r5ewals ,!       
,secret>y %all e/abli% an exp$it$       
application process = ! r5ewal ( a      
previ\sly e/abli%$ ,milit>y ,education  
,sav+s ,acc\nt4  7c7 ,writt5 agreem5t ,z
 a condition ( p>ticipat+ 9 ! program "u
 ?is section1 ! p>5t ( a *ild on ^:     
behalf a ,milit>y ,education ,sav+s     
,acc\nt is e/abli%$ %all ent] into a    

writt5 agreem5t ) ! ,secret>y "u :i* !  
p>5t agrees--  7#a7 to provide ! *ild ) 
in/ruction 91 at m9imum1 ! fields (     
read+1 language1 ma!matics1 sci5ce1 &   
social /udies2  7#b7 to n enroll ! *ild 
9 a public s*ool on a full-"t basis :ile
 p>ticipat+ 9 ! program2  7#c7 to use   
funds 9 ! ,milit>y ,education ,sav+s    
,acc\nt only = ! purposes au?oriz$ "u   
?is section2 &  7#d7 to comply ) all o!r
 requirem5ts ( ?is section4  7d7 ,am\nt 
( deposits  7#a7 ,fir/ ye> ( program ,! 
am\nt ( funds deposit$ into ea* ,milit>y
 ,education ,sav+s ,acc\nt = ! fir/     
s*ool ye> = :i* su* acc\nts are e/abli%$
 "u ?is section %all be--  7,a7 #d1ejj =
 an acc\nt e/abli%$ = an eligible       
milit>y dep5d5t *ild describ$ 9         
subsection 7t77#a77;,a72 &  7,b7 #b1ejj 
= an acc\nt e/abli%$ = an eligible      
milit>y dep5d5t *ild describ$ 9         
subsection 7t77#a77;,b74  7#b7          
,subsequ5t ye>s ,! am\nt ( funds        
deposit$ into ea* ,milit>y ,education   
,sav+s ,acc\nt = any s*ool ye> aft] !   

ye> describ$ 9 p>agraph 7#a71 %all be ! 
am\nt det]m9$ "u ?is subsection = !     
previ\s s*ool ye> increas$ by a p]c5tage
 equal to ! p]c5tage increase 9 ! ,*a9$ 
,consum] ,price ,index = ,all ,urban    
,consum]s 7z publi%$ by ! ,bureau (     
,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor7
 ov] ! p]iod ( su* previ\s s*ool ye>4   
7#c7 ,s\rce ( funds ,9 accordance )     
section #gjad7;f71 funds deposit$ into a
 ,milit>y ,education ,sav+s ,acc\nt "u  
?is subsection %all be drawn f am\nts   
o!rwise appropriat$ to c>ry out ! impact
 aid program "u section #gjjc & no new  
appropriation may be made = ! purpose ( 
c>ry+ out ?is subsection4  7e7 ,use (   
funds ,funds deposit$ into a ,milit>y   
,education ,sav+s ,acc\nt = a s*ool ye> 
may be us$ by ! p>5t ( an eligible      
milit>y dep5d5t *ild to make paym5ts to 
a qualifi$ educational s]vice provid]   
=--  7#a7 co/s ( att5dance at a private 
elem5t>y s*ool or second>y s*ool        
recogniz$ by ! ,/ate1 :i* may include a 
private s*ool t is a religi\s           

in/itution2  7#b7 private onl9e le>n+   
programs2  7#c7 private tutor+2  7#d7   
s]vices provid$ by a public elem5t>y    
s*ool or second>y s*ool att5d$ by ! *ild
 on a less ?an full-"t basis1 includ+   
individual classes & extracurricul>     
activities & programs2  7#e7 textbooks1 
curriculum programs1 or o!r in/ructional
 mat]ials1 includ+ any supplem5tal      
mat]ials requir$ by a curriculum        
program1 private s*ool1 private onl9e   
le>n+ program1 or a public s*ool1 or any
 p>5t direct$ curriculum associat$ )    
k9d]g>t5 ?r\gh grade #ab education2     
7#f7 comput] h>dw>e or o!r te*nological 
devices t are us$ to help meet a /ud5t's
 educational ne$s1 except t su* h>dw>e  
or devices may n be pur*as$ by a p>5t m 
?an once 9 an #ah-mon? p]iod2  7#g7     
educational s(tw>e & applications2  7#h7
 uni=ms pur*as$ f or ?r\gh a private    
s*ool recogniz$ by ! ,/ate2  7#i7 fees =
 nationally /&>diz$ assessm5t           
exam9ations1 advanc$ placem5t           
exam9ations1 any exams relat$ to        

admission to an in/itution ( high]      
education1 or tuition or fees =         
prep>atory c\rses = su* exam9ations2    
7#aj7 fees = summ] education programs & 
specializ$ aft]-s*ool education programs
 7b n includ+ aft]-s*ool *ildc>e72      
7#aa7 educational s]vices & !rapies1    
includ+ occupational1 behavioral1       
physical1 spee*-language1 & audiology   
!rapies2  7#ab7 fees = transportation   
paid to a fee-=-s]vice transportation   
provid] = ! /ud5t to travel to & f !    
facilities ( a qualifi$ educational     
s]vice provid]2  7#ac7 co/s ( att5dance 
at an in/itution ( high] education2     
7#ad7 co/s associat$ ) an appr5tice%ip  
or o!r vocational tra9+ program2  7#ae7 
fees = ,/ate-recogniz$ indu/ry          
c]tification exam9ations1 & tuition or  
fees = prep>atory c\rses = su*          
exam9ations2  7#af7 contributions to a  
college sav+s acc\nt1 :i* may include   
contributions to a qualifi$ tuition     
program 7z def9$ 9 section #ebi7;b77#a7 
( ! ,int]nal ,rev5ue ,code ( #aihf1 )\t 

reg>d to subp>agraph 7,b7 !re(7 or o!r  
prepaid tuition plan (f]$ by a ,/ate2 or
  7#ag7 any o!r educational exp5ses     
approv$ by ! ,secret>y4  7f7 ,transf]   
s*$ule ,! ,secret>y %all make qu>t]ly   
transf]s ( ! am\nt calculat$ pursuant to
 subsection 7d7 = deposit into ! acc\nt 
( ea* qualifi$ /ud5t1 except t !        
,secret>y may make transf]s accord+ to  
ano!r transf] s*$ule if ! ,secret>y     
det]m9es t a transf] s*$ule o!r ?an     
qu>t]ly transf]s is necess>y = !        
op]ation ( ! ,milit>y ,education ,sav+s 
,acc\nt4 ,p>5ts %all be requir$ to      
complete an exp5se report issu$ by !    
,secret>y electronically or 9 pap] =mat 
prior to ! next qu>t]'s deposit4  7g7   
,rollov] ,am\nts rema9+ 9 ! ,milit>y    
,education ,sav+s ,acc\nt ( a /ud5t at !
 end ( a s*ool ye> %all rema9 available 
= use 9 accordance ) subsection 7e7     
until ! date on :i* su* acc\nt t]m9ates 
"u subsection 7h74  7h7 ,t]m9ation &    
return ( funds  7#a7 ,t]m9ation ,!      
,milit>y ,education ,sav+s ,acc\nt ( a  

/ud5t %all t]m9ate on-- 7,a7 ! date on  
:i* ! /ud5t enrolls 9 a public elem5t>y 
s*ool or second>y s*ool on a full-"t    
basis2  7,b7 9 ! case ( a /ud5t :o is   
pursu+ po/second>y education1 ! e>li]   
(-- 7i7 ! date on :i* ! /ud5t completes 
po/second>y education2 or  7ii7 ! date  
on :i* ! /ud5t atta9s ! age ( #bb ye>s2 
7,c7 9 ! case ( a /ud5t :o is an        
individual ) a disability1 ! date on :i*
 ! /ud5t atta9s ! age ( #bf ye>s2 or    
7,d7 9 ! case ( an individual n describ$
 9 subp>agraphs 7,b7 or 7,c71 ! e>li]   
(-- 7i7 ! date on :i* ! /ud5t atta9s !  
age ( #bb ye>s2 or  7ii7 ! expiration ( 
any #d-ye> p]iod dur+ :i* funds 9 !     
acc\nt are n us$ 9 accordance ) ?is     
section4  7#b7 ,return ( funds ,any     
funds rema9+ 9 a ,milit>y ,education    
,sav+s ,acc\nt be=e su* acc\nt t]m9ates 
"u p>agraph 7#a7 %all be--  7,a7 return$
 to ! ,secret>y2 &  7,b7 us$ = ! program
 "u ?is section4  7i7 ,compulsory       
att5dance requirem5ts ,a ,/ate t        
receives funds "u ?is title %all consid]

 a *ild ) a ,milit>y ,education ,sav+s  
,acc\nt = a s*ool ye> z meet+ ! ,/ate's 
compulsory s*ool att5dance requirem5ts =
 su* s*ool ye>4  7j7 ,special rule ,9 ! 
case ( a *ild ) a ,milit>y ,education   
,sav+s ,acc\nt :o att5ds a public s*ool 
on a less ?an full-"t basis 9 a s*ool   
ye>--  7#a7 ! *ild may n att5d ! public 
s*ool free ( *>ge2 &  7#b7 funds 9 !    
,acc\nt1 9 an am\nt det]m9$ pursuant to 
an agreem5t betwe5 ! p>5t ( ! *ild & !  
local educational ag5cy conc]n$1 %all be
 us$ to pay = ! *ild's co/s ( att5dance 
at su* s*ool4  7k7 ,tax treatm5t (      
acc\nts  7#a7 ,9 g5]al ,a ,milit>y      
,education ,sav+s ,acc\nt is exempt f   
taxation "u subtitle ,a ( ! ,int]nal    
,rev5ue ,code ( #aihf4  7#b7            
,contributions & di/ributions ,=        
purposes ( su* subtitle-- 7,a7 any      
contribution to a milit>y education     
sav+s acc\nt by ! ,secret>y "u ?is      
section %all n be includible 9 ! gross  
income ( ! individual = ^: b5efit su*   
acc\nt is ma9ta9$ or ! p>5t ( su*       

individual2 &  7,b7 any di/ribution f a 
milit>y education sav+s acc\nt :i* is   
p]mitt$ "u ?is section %all n be        
includible 9 ! gross income ( !         
individual = ^: b5efit su* acc\nt is    
ma9ta9$ or ! p>5t ( su* individual4  7l7
 ,privacy ,section #ddd ( ! ,g5]al      
,education ,provisions ,act 7commonly   
kn[n z ! ,family ,educational ,rights & 
,privacy ,act ( #aigd7 7#bj ,u4,s4,c4   
#abcb;g7 %all apply to a qualifi$       
educational s]vice provid] 9 ! same     
mann] t su* section applies to an       
educational ag5cy or in/itution 7z t t]m
 is def9$ 9 su* section74  7m7 ,fraud   
prev5tion & report+ ,! ,secret>y %all   
e/abli% a website & a telephone hotl9e t
 enable individuals to anonym\sly report
 suspect$ fraud 9 ! program "u ?is      
section4 ,! ,secret>y also %all conduct 
or contract = r&om1 qu>t]ly1 or annual  
audits ( acc\nts z ne$$ to ensure       
compliance ) ?is section4  7n7 ,contract
 au?ority ,! ,secret>y ( ,education may 
ent] into "o or m contracts = ! purpose 

( c>ry+ out ! responsibilities ( !      
,secret>y "u ?is section4  7o7 ,surety  
bond  7#a7 ,9 g5]al ,! ,secret>y %all   
require ea* qualifi$ educational s]vice 
provid] t receives n less ?an #ajj1jjj 9
 funds f ,milit>y ,education ,sav+s     
,acc\nts 9 a s*ool ye> to po/ a surety  
bond1 9 an am\nt det]m9$ by ! ,secret>y1
 = su* s*ool ye>4  7#b7 ,ret5tion ,!    
,secret>y %all prescribe ! circum/ances 
"u :i* a surety bond "u p>agraph 7#a7   
may be reta9$ by ! ,secret>y4  7p7      
,refunds ,! ,secret>y %all e/abli% a    
process "u :i* paym5ts f a ,milit>y     
,education ,sav+s ,acc\nt to a qualifi$ 
educational s]vice provid] may be       
refund$ to ! acc\nt 9 ! ev5t ( fraud or 
nonp]=mance by ! provid]4  7q7 ,rules ( 
con/ruction  7#a7 ,nonag5cy ,a qualifi$ 
educational s]vice provid] t receives a 
paym5t f a ,milit>y ,education ,sav+s   
,acc\nt pursuant to ?is section %all n  
be consid]$ an ag5t ( ! ,/ate or !      
,f$]al ,gov]nm5t solely because !       
provid] receiv$ su* paym5t4  7#b7 ,f$]al

 or ,/ate sup]vision ,no?+ 9 ?is section
 %all be con/ru$ to all[ any ag5cy ( a  
,/ate or ! ,f$]al ,gov]nm5t to ex]cise  
control or sup]vision ov] any qualifi$  
educational s]vice provid]4  7#c7 ,no   
imposition ( additional requirem5ts     
,no?+ 9 ?is section %all be con/ru$ to  
require a qualifi$ educational s]vice   
provid] to alt] its cre$1 practices1    
admissions policy1 or curriculum 9 ord] 
to be eligible to receive paym5ts f a   
,milit>y ,education ,sav+s ,acc\nt4     
7#d7 ,treatm5t ( assi/ance ,= purposes (
 any ,f$]al law1 assi/ance provid$ "u   
?is section %all be consid]$ assi/ance  
to ! milit>y dep5d5t /ud5t or to ! p>5ts
 ( a /ud5t on ^: behalf a ,milit>y      
,education ,sav+s ,acc\nt is e/abli%$ & 
%all n be consid]$ assi/ance to !       
qualifi$ educational s]vice provid] t   
uses or receives funds f a ,milit>y     
,education ,sav+s ,acc\nt4  7r7 ,legal  
proce$+s  7#a7 ,burd5 ,9 any legal      
proce$+ 9 :i* a qualifi$ educational    
s]vice provid] *all5ges a requirem5t    

impos$ by ! ,dep>tm5t on ! provid]1 !   
,dep>tm5t %all h ! burd5 ( e/abli%+ t ! 
requirem5t is necess>y & does n impose  
any undue burd5 on ! provid]4  7#b7     
,limitation on liability  7,a7 ,9 g5]al 
,no liability %all arise on ! "p ( an   
entity describ$ 9 subp>agraph 7,b7      
solely because su* entity aw>ds1 uses1  
or receives funds f a ,milit>y          
,education ,sav+s ,acc\nt4  7,b7 ,entity
 describ$ ,! entities describ$ 9 ?is    
subp>agraph are ! foll[+3 7i7 ,!        
,dep>tm5t4  7ii7 ,an entity t ent]s into
 a contract ) ! ,secret>y pursuant to   
subsection 7n74  7#c7 ,int]v5tion  7,a7 
,9 g5]al ,except z provid$ 9 subp>agraph
 7,b71 a p>5t ( an eligible milit>y     
dep5dant /ud5t or a p>5t ( a /ud5t on ^:
 behalf a ,milit>y ,education ,sav+s    
,acc\nt is e/abli%$ may int]v5e 9 any   
legal proce$+ 9 :i* ! con/itutionality (
 ! program "u ?is section is *all5g$ "u 
a ,/ate con/itution or ! ,con/itution ( 
! ,unit$ ,/ates4  7,b7 ,exception ,=    
purposes ( judicial adm9i/ration1 a c\rt

 may-- 7i7 limit ! numb] ( p>5ts all[$  
to int]v5e 9 a proce$+ "u subp>agraph   
7,a72 or  7ii7 require all p>5ts :o h   
int]v5$ 9 a proce$+ "u subp>agraph 7,a7 
to file a jo9t brief1 except t no p>5t  
%all be requir$ to jo9 any brief fil$ on
 behalf ( a ,/ate t is a def5dant 9 !   
proce$+4  7s7 ,adm9i/rative exp5ses ,!  
,secret>y may use n m ?an #e p]c5t ( !  
funds made available to c>ry out ?is    
section = ! direct co/s ( adm9i/]+      
,milit>y ,education ,sav+s ,acc\nts4    
7t7 ,def9itions ,9 ?is section3 7#a7 ,! 
t]m eligible milit>y dep5d5t *ild means 
a *ild :o--  7,a7 7i7 has a p>5t on     
active duty 9 ! uni=m$ s]vices 7z t t]m 
def9$ 9 section #aja ( title #cg1 ,unit$
 ,/ates ,code1 except t su* t]m does n  
include an (fic] 9 ! ,national ,gu>d :o 
has be5 activat$72 &  7ii7 resides )9 ! 
b\nd>ies ( a heavily impact$ local      
educational ag5cy2 or  7,b7 7i7 has a   
p>5t on active duty 9 ! uni=m$ s]vices  
7z t t]m def9$ 9 section #aja ( title   
#cg1 ,unit$ ,/ates ,code1 except t su*  

t]m does n include an (fic] 9 !         
,national ,gu>d :o has be5 activat$72 & 
7ii7 resides )9 ! b\nd>ies ( a local    
educational ag5cy eligible to receive a 
basic support paym5t "u section         
#gjjc7;b77#a7 t is n a heavily impact$  
local educational ag5cy4  7#b7 ,! t]m   
heavily impact$ local educational ag5cy 
means a local educational ag5cy eligible
 to receive a paym5t "u section         
#gjjc7;b77#b74  7#c7 ,! t]m in/itution (
 high] education has ! mean+ giv5 ! t]m 
9 section #ajb ( ! ,high] ,education    
,act ( #aife4  7#d7 ,! t]m qualifi$     
educational s]vice provid] means an     
entity or p]son t provides educational  
s]vices = :i* funds may be exp5d$ "u    
subsection 7e71 includ+--  7,a7 a       
private s*ool2  7,b7 a private onl9e    
le>n+ program or c\rse2  7,c7 an        
in/itution ( high] education1 includ+ a 
,/ate in/itution ( high] education1 a   
junior or community college1 or a       
po/second>y vocational in/itution2  7,d7
 a public s*ool2  7,e7 a private tutor  

or entity t op]ates a tutor+ facility2  
7,f7 a provid] ( educational mat]ials or
 curricula2  7,g7 a provid] (           
education-relat$ !rapies or s]vices2 &  
7,h7 any o!r provid] ( educational      
s]vices approv$ by ! ,secret>y4  4  #c4 
,au?orization ( appropriations ,section 
#gjad ( ! ,elem5t>y & ,second>y         
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ggad7 is am5d$ by add+ at ! end !      
foll[+3  7f7 ,milit>y education sav+s   
acc\nts  7#a7 ,s\rce ( funds &          
prohibition on new appropriation        
,subject to p>agraph 7#b71 section      
#gjab;,a %all be c>ri$ out us+ funds    
o!rwise appropriat$ to c>ry out section 
#gjjc & no new appropriation may be made
 to c>ry out su* section #gjab;,a4  7#b7
 ,prohibition on use ( c]ta9 funds ,9   
mak+ funds available to c>ry out section
 #gjab;,a "u p>agraph 7#a71 ! ,secret>y 
%all ensure t su* funds are drawn only f
 am\nts o!rwise made available = !      
education ( milit>y dep5d5t *ildr5 "u   
section #gjjc & n f o!r s\rces4  4