,,ii  #aae? ,,congress  #b;d ,session   
,s4 #ccij  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #bg1 #bjah,mr4  
,br[n introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to e/abli% an ,education    
,rec\pm5t ,tru/ ,fund to recov] misus$  
elem5t>y & second>y education funds = ! 
b5efit ( ! affect$ /ud5ts4  #a4 ,%ort   
title ,?is ,act may be cit$ z ! ,putt+  
,/ud5ts ,fir/ ,act4  #b4 ,education     
,rec\pm5t ,tru/ ,fund  7a7 ,def9itions  
,9 ?is section3  7#a7 ,eligible case ,! 
t]m eligible case means any             
adm9i/rative1 crim9al1 or civil case--  
7,a7 9 :i* ! ,unit$ ,/ates is a nam$    
p>ty2 &  7,b7 relat$ to ! misuse ( any  
qualify+ money4  7#b7 ,local educational
 ag5cy ,! t]m local educational ag5cy   
has ! mean+ giv5 t t]m 9 section #haja (
 ! ,elem5t>y & ,second>y ,education ,act
 ( #aife 7#bj ,u4,s4,c4 #ghja74  7#c7   
,misuse ,! t]m misuse1 :5 us$ ) respect 
to qualify+ money1 means-- 7,a7 fraud1  

!ft1 or o!rwise illegal or prohibit$ use
 ( qualify+ money2 or  7,b7 /atem5ts or 
actions us$ to fraudul5tly or o!rwise   
illegally obta9 qualify+ money4  7#d7   
,qualify+ money ,! t]m qualify+ money   
means money di/ribut$ by ! ,dep>tm5t (  
,education = ! purpose ( elem5t>y or    
second>y education1 includ+ su* money   
di/ribut$--  7,a7 directly to any       
individual or entity2 or  7,b7 to a     
,/ate educational ag5cy1 local          
educational ag5cy1 s*ool1 *>t] s*ool    
network or sy/em1 *>t] s*ool1 *>t] or   
education managem5t organization1 or any
 o!r in/itution1 (fice1 dep>tm5t1 or    
entity1 :i* !n di/ribut$ ! money to     
ano!r individual or entity4  7#e7       
,responsible p>ty ,! t]m responsible    
p>ty means any individual1 in/itution1  
gov]nm5t body1 (ficial1 or o!r entity t 
is a nam$ p>ty to an eligible case t--  
7,a7 is ord]$ by a c\rt or adm9i/rative 
ag5cy to pay a f9e1 fee1 p5alty1 or     
judgm5t to ! ,unit$ ,/ates ,gov]nm5t due
 to misuse ( qualify+ money2 or  7,b7   

ent]s into a settlem5t agreem5t ) !     
,unit$ ,/ates ,gov]nm5t relat$ to !     
misuse ( qualify+ money4  7#f7 ,/ate    
educational ag5cy ,! t]m ,/ate          
educational ag5cy has ! mean+ giv5 t t]m
 9 section #haja ( ! ,elem5t>y &        
,second>y ,education ,act ( #aife 7#bj  
,u4,s4,c4 #ghja74  7#g7 ,tru/ ,fund ,!  
t]m ,tru/ ,fund means ! ,education      
,rec\pm5t ,tru/ ,fund e/abli%$ "u       
subsection 7b74  7b7 ,9 g5]al ,!re is   
e/abli%$ 9 ! ,treasury ( ! ,unit$ ,/ates
 a tru/ fund1 to be kn[n z ! ,education 
,rec\pm5t ,tru/ ,fund1 consi/+ ( su*    
am\nts z are deposit$ 9 ! ,tru/ ,fund "u
 subsection 7c7 or any o!r provision (  
law4  7c7 ,deposits  7#a7 ,9 g5]al      
,not)/&+ any o!r provision ( law1 !     
,secret>y ( ! ,treasury %all deposit 9 !
 ,tru/ ,fund an am\nt equal to #ajj     
p]c5t ( funds collect$ by ! ,unit$      
,/ates ,gov]nm5t f any responsible p>ty 
pursuant to any judgm5t or aw>d 9 or    
settlem5t ( any litigation1 or f9e or   
p5alty impos$ pursuant to any           

adm9i/rative action1 relat+ to an       
eligible case1 includ+ money realiz$ f !
 liquidation ( any asset aw>d$ to !     
,unit$ ,/ates ,gov]nm5t 9 relation to an
 eligible case or settlem5t ( litigation
 relat+ to an eligible case4  7#b7      
,multiple c\nts or claims ,if an        
eligible case involves multiple c\nts or
 claims1 ! ,secret>y ( ! ,treasury %all 
deposit only ! collect$ funds relat$ to 
! c\nts or claims involv+ ! misuse (    
qualify+ money4  7d7 ,di/ribution (     
,tru/ ,fund ,! ,secret>y ( ! ,treasury  
%all di/ribute any deposits made to !   
,tru/ ,fund z foll[s3 7#a7 ,9 ! case (  
funds deposit$ "u subsection 7c7 relat$ 
to ! misuse ( qualify+ money by a       
responsible p>ty t is a local           
educational ag5cy1 a s*ool1 a *>t] s*ool
 network or sy/em1 a *>t] s*ool1 a *>t] 
or education managem5t organization1 or 
an (ficial or employee ( any su* ag5cy1 
s*ool1 sy/em1 or organization ! funds   
%all be di/ribut$ f ! ,tru/ ,fund to !  
,/ate educational ag5cy 9 ! ,/ate 9 :i* 

! int5d$ /ud5t b5efici>ies ( ! qualify+ 
money are locat$4  7#b7 ,9 ! case (     
funds deposit$ "u subsection 7c7 relat$ 
to ! misuse ( qualify+ money by a       
responsible p>ty t is a ,/ate           
educational ag5cy or an (ficial or      
employee ( a ,/ate educational ag5cy1 ! 
funds %all be di/ribut$ f ! ,tru/ ,fund 
to ! ,secret>y ( ,education4  7#c7 ,9   
any case n describ$ 9 p>agraph 7#a7 or  
7#b71 ! funds deposit$ "u subsection 7c7
 relat$ to ! misuse ( qualify+ money    
%all be di/ribut$ f ! ,tru/ ,fund to !  
,secret>y ( ,education4  7e7 ,allocation
 ( funds f ! ,tru/ ,fund  7#a7 ,/ate    
educational ag5cies  7,a7 ,9 ,g5]al     
,subject to subp>agraph 7,b71 a ,/ate   
educational ag5cy t receives funds 9    
accordance ) subsection 7d77#a7 %all    
allocate su* funds to ea* local         
educational ag5cy 9 ! ,/ate 9 an am\nt t
 be>s ! same relation%ip to ! total     
funds describ$ 9 subsection 7d77#a7 = t 
,/ate z ! am\nt ( funds "u "p ,a ( title
 ,i ( ! ,elem5t>y & ,second>y ,education

 ,act ( #aife 7#bj ,u4,s4,c4 #fcaa et   
seq47 t ! local educational ag5cy       
receiv$ = ! mo/ rec5t fiscal ye> = :i*  
data are available be>s to ! total am\nt
 ( funds "u t "p = all local educational
 ag5cies 9 t ,/ate = t ye>4  7,b7       
,direct grants to s*ools ,not)/&+       
subp>agraph 7,a71 9 ! case ( a local    
educational ag5cy t cont9ues to employ1 
or o!rwise affiliate )1 an individual :o
 is a responsible p>ty :o has misus$    
qualify+ money1 a ,/ate educational     
ag5cy may--  7i7 directly di/ribute su* 
funds to s*ools s]v$ by t local         
educational ag5cy 9 an am\nt t be>s !   
same relation%ip to ! total funds t w\ld
 be direct$ to t local educational ag5cy
 "u subp>agraph 7,a7 z ! am\nt ( funds  
"u "p ,a ( title ,i ( ! ,elem5t>y &     
,second>y ,education ,act ( #aife 7#bj  
,u4,s4,c4 #fcaa et seq47 t ! s*ool      
receiv$ = ! mo/ rec5t fiscal ye> = :i*  
data are available be>s to ! total am\nt
 ( funds "u t "p = all s*ools s]v$ by t 
local educational ag5cy = t ye>2 or     

7ii7 atta* reasonable conditions to     
prev5t ! misuse ( qualify+ money4  7#b7 
,secret>y ( ,education  7,a7 ,9 ,g5]al  
,! ,secret>y ( ,education %all allocate 
funds describ$ 9 p>agraphs 7#b7 & 7#c7 (
 subsection 7d7 directly to ea* local   
educational ag5cy 9 ! ,/ate 9 :i* !     
int5d$ /ud5t b5efici>ies ( ! qualify+   
money 7 locat$4  7,b7 ,am\nt (          
allocations ,! ,secret>y ( ,education   
%all allocate funds describ$ 9 p>agraphs
 7#b7 & 7#c7 ( subsection 7d7 to ea*    
local educational ag5cy 9 ! ,/ate 9 an  
am\nt t be>s ! same relation%ip to !    
total funds describ$ 9 p>agraphs 7#b7 & 
7#c7 ( subsection 7d7 = t ,/ate z !     
am\nt ( funds "u "p ,a ( title ,i ( !   
,elem5t>y & ,second>y ,education ,act ( 
#aife 7#bj ,u4,s4,c4 #fcaa et seq47 t ! 
local educational ag5cy receiv$ = ! mo/ 
rec5t fiscal ye> = :i* data are         
available to ! ,secret>y ( ,education   
be>s to ! total am\nt ( funds "u t "p = 
all local educational ag5cies 9 t ,/ate 
= t ye>4  7f7 ,use ( funds ,any funds   

allocat$ to a local educational ag5cy "u
 ?is section %all be di/ribut$ to s*ools
 & o!rwise us$ 9 a mann] consi/5t ) "p  
,a ( title ,i ( ! ,elem5t>y & ,second>y 
,education ,act ( #aife 7#bj ,u4,s4,c4  
#fcaa et seq474 ,any s*ool receiv+ funds
 "u ?is section %all use su* funds 9 a  
mann] consi/5t ) su* "p4