,,ii #aaeth ,,congress #b;d ,session ,s4 #ccij ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #bg1 #bjah,mr4 ,brown introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to establish an ,education ,recoupment ,trust ,fund to recover misused elementary and secondary education funds for the benefit of the affected students4 #a4 ,short title ,this ,act may be cited as the ,putting ,students ,first ,act4 #b4 ,education ,recoupment ,trust ,fund 7a7 ,definitions ,in this section3 7#a7 ,eligible case ,the term eligible case means any administrative1 criminal1 or civil case-- 7,a7 in which the ,united ,states is a named party2 and 7,b7 related to the misuse of any qualifying money4 7#b7 ,local educational agency ,the term local educational agency has the meaning given that term in section #haja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja74 7#c7 ,misuse ,the term misuse1 when used with respect to qualifying money1 means-- 7,a7 fraud1 theft1 or otherwise illegal or prohibited use of qualifying money2 or 7,b7 statements or actions used to fraudulently or otherwise illegally obtain qualifying money4 7#d7 ,qualifying money ,the term qualifying money means money distributed by the ,department of ,education for the purpose of elementary or secondary education1 including such money distributed-- 7,a7 directly to any individual or entity2 or 7,b7 to a ,state educational agency1 local educational agency1 school1 charter school network or system1 charter school1 charter or education management organization1 or any other institution1 office1 department1 or entity1 which then distributed the money to another individual or entity4 7#e7 ,responsible party ,the term responsible party means any individual1 institution1 government body1 official1 or other entity that is a named party to an eligible case that-- 7,a7 is ordered by a court or administrative agency to pay a fine1 fee1 penalty1 or judgment to the ,united ,states ,government due to misuse of qualifying money2 or 7,b7 enters into a settlement agreement with the ,united ,states ,government related to the misuse of qualifying money4 7#f7 ,state educational agency ,the term ,state educational agency has the meaning given that term in section #haja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja74 7#g7 ,trust ,fund ,the term ,trust ,fund means the ,education ,recoupment ,trust ,fund established under subsection 7b74 7b7 ,in general ,there is established in the ,treasury of the ,united ,states a trust fund1 to be known as the ,education ,recoupment ,trust ,fund1 consisting of such amounts as are deposited in the ,trust ,fund under subsection 7c7 or any other provision of law4 7c7 ,deposits 7#a7 ,in general ,notwithstanding any other provision of law1 the ,secretary of the ,treasury shall deposit in the ,trust ,fund an amount equal to #ajj percent of funds collected by the ,united ,states ,government from any responsible party pursuant to any judgment or award in or settlement of any litigation1 or fine or penalty imposed pursuant to any administrative action1 relating to an eligible case1 including money realized from the liquidation of any asset awarded to the ,united ,states ,government in relation to an eligible case or settlement of litigation relating to an eligible case4 7#b7 ,multiple counts or claims ,if an eligible case involves multiple counts or claims1 the ,secretary of the ,treasury shall deposit only the collected funds related to the counts or claims involving the misuse of qualifying money4 7d7 ,distribution of ,trust ,fund ,the ,secretary of the ,treasury shall distribute any deposits made to the ,trust ,fund as follows3 7#a7 ,in the case of funds deposited under subsection 7c7 related to the misuse of qualifying money by a responsible party that is a local educational agency1 a school1 a charter school network or system1 a charter school1 a charter or education management organization1 or an official or employee of any such agency1 school1 system1 or organization the funds shall be distributed from the ,trust ,fund to the ,state educational agency in the ,state in which the intended student beneficiaries of the qualifying money are located4 7#b7 ,in the case of funds deposited under subsection 7c7 related to the misuse of qualifying money by a responsible party that is a ,state educational agency or an official or employee of a ,state educational agency1 the funds shall be distributed from the ,trust ,fund to the ,secretary of ,education4 7#c7 ,in any case not described in paragraph 7#a7 or 7#b71 the funds deposited under subsection 7c7 related to the misuse of qualifying money shall be distributed from the ,trust ,fund to the ,secretary of ,education4 7e7 ,allocation of funds from the ,trust ,fund 7#a7 ,state educational agencies 7,a7 ,in ,general ,subject to subparagraph 7,b71 a ,state educational agency that receives funds in accordance with subsection 7d77#a7 shall allocate such funds to each local educational agency in the ,state in an amount that bears the same relationship to the total funds described in subsection 7d77#a7 for that ,state as the amount of funds under part ,a of title ,i of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #fcaa et seq47 that the local educational agency received for the most recent fiscal year for which data are available bears to the total amount of funds under that part for all local educational agencies in that ,state for that year4 7,b7 ,direct grants to schools ,notwithstanding subparagraph 7,a71 in the case of a local educational agency that continues to employ1 or otherwise affiliate with1 an individual who is a responsible party who has misused qualifying money1 a ,state educational agency may-- 7i7 directly distribute such funds to schools served by that local educational agency in an amount that bears the same relationship to the total funds that would be directed to that local educational agency under subparagraph 7,a7 as the amount of funds under part ,a of title ,i of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #fcaa et seq47 that the school received for the most recent fiscal year for which data are available bears to the total amount of funds under that part for all schools served by that local educational agency for that year2 or 7ii7 attach reasonable conditions to prevent the misuse of qualifying money4 7#b7 ,secretary of ,education 7,a7 ,in ,general ,the ,secretary of ,education shall allocate funds described in paragraphs 7#b7 and 7#c7 of subsection 7d7 directly to each local educational agency in the ,state in which the intended student beneficiaries of the qualifying money were located4 7,b7 ,amount of allocations ,the ,secretary of ,education shall allocate funds described in paragraphs 7#b7 and 7#c7 of subsection 7d7 to each local educational agency in the ,state in an amount that bears the same relationship to the total funds described in paragraphs 7#b7 and 7#c7 of subsection 7d7 for that ,state as the amount of funds under part ,a of title ,i of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #fcaa et seq47 that the local educational agency received for the most recent fiscal year for which data are available to the ,secretary of ,education bears to the total amount of funds under that part for all local educational agencies in that ,state for that year4 7f7 ,use of funds ,any funds allocated to a local educational agency under this section shall be distributed to schools and otherwise used in a manner consistent with part ,a of title ,i of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #fcaa et seq474 ,any school receiving funds under this section shall use such funds in a manner consistent with such part4