,,ii #aaith ,,congress #ast ,session ,s4 #abdd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #a 7legislative day1 ,march #ca71 #bjbe,mr4 ,cruz 7for himself and ,mr4 ,banks7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,elementary and ,secondary ,education ,act of #aife to allow parents of eligible military dependent children to establish ,military ,education ,savings ,accounts1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,education ,savings ,accounts for ,military ,families ,act of #bjbe4 #b4 ,military education savings accounts 7a7 ,in general ,title ,,vii of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ggja et seq47 is amended by inserting after section #gjab the following3 #gjab;,a4 ,military education savings accounts 7a7 ,in general ,the ,secretary of ,education1 in consultation with the ,secretary of ,defense1 shall carry out a program under which the ,secretary of ,education shall-- 7#a7 at the request of a parent of an eligible military dependent child1 establish an account on behalf of such child 7to be known as a ,military ,education ,savings ,account7 into which the ,secretary shall deposit funds in an amount determined under subsection 7d72 and 7#b7 establish a procedure under which the parent of the child may use funds in the account to pay for the educational expenses of the child in accordance with this section4 7b7 ,application 7#a7 ,in general ,to be eligible to participate in the program under this section for a school year1 a parent of an eligible military dependent child shall submit an application to the ,secretary in accordance with this subsection4 7#b7 ,application process ,in carrying out paragraph 7#a71 the ,secretary shall-- 7,a7 accept applications on a year-round basis and establish procedures for approving applications in an expeditious manner2 and 7,b7 create a standardized form that parents can use to apply for the program and ensure that such form is readily available in written and electronic formats1 including on a publicly accessible website4 7#c7 ,approval ,subject to the availability of funds to carry out this section1 the ,secretary shall approve the application of a parent to establish a ,military ,education ,savings ,account if-- 7,a7 the application is submitted in accordance with the application process established by the ,secretary pursuant to this subsection2 7,b7 the application demonstrates that the child on whose behalf the ,military ,education ,savings ,account is to be established is an eligible military dependent child2 and 7,c7 the parent who submits the application enters into a written agreement with the ,secretary under which the parent agrees-- 7i7 to provide the child with instruction in1 at minimum1 the fields of reading1 language1 mathematics1 science1 and social studies2 7ii7 to not enroll the child in a public elementary school or a public secondary school1 on a full-time basis while participating in the program2 7iii7 to use funds in the ,military ,education ,savings ,account only for the purposes authorized under this section2 and 7iv7 to comply with all other requirements of this section4 7#d7 ,renewals ,the ,secretary shall establish a process for the automatic renewal of a previously established ,military ,education ,savings ,account except in cases in which-- 7,a7 the parents of the child on whose behalf the account was established choose not to renew the account2 or 7,b7 the account was used to commit fraud or was otherwise not used in accordance with the requirements of this section4 7c7 ,priority in the event of insufficient funds 7#a7 ,in general ,if the funds appropriated to carry out this section are insufficient to enable the ,secretary to establish and fully fund a ,military ,education ,savings ,account for each eligible military dependent child whose parent has an application approved under subsection 7b7 for a school year1 the ,secretary shall-- 7,a7 first renew and fully fund previously established ,military ,education ,savings ,accounts2 and 7,b7 if funds remain available after renewing all accounts under subparagraph 7,a71 conduct the lottery described in paragraph 7#c7 to select the children on whose behalf accounts will be established using the remaining funds4 7#b7 ,transfer authority ,notwithstanding any other provision of law1 the ,secretary may transfer amounts from any account of the ,department of ,education to renew and fully fund previously established ,military ,education ,savings ,accounts under paragraph 7#a77;,a74 ,the authority to transfer amounts under the preceding sentence shall not be subject to any transfer or reprogramming requirements under any other provision of law4 7#c7 ,lottery ,the lottery described in this paragraph is a lottery in which-- 7,a7 siblings of children on whose behalf ,military ,education ,savings ,accounts have previously been established have the highest probability of selection2 7,b7 children of enlisted members have the next-highest probability of selection after the children described in subparagraph 7,a72 7,c7 children of warrant officers have the next-highest probability of selection after the children described in subparagraph 7,b72 and 7,d7 children of commissioned officers have the lowest probability of selection4 7d7 ,amount of deposits 7#a7 ,first year of program ,the amount of funds deposited into each ,military ,education ,savings ,account for the first school year for which such accounts are established under this section shall be #f1jjj for each eligible military dependent child covered by the account4 7#b7 ,subsequent years ,the amount of funds deposited into each ,military ,education ,savings ,account for any school year after the year described in paragraph 7#a71 shall be the amount determined under this subsection for the previous school year increased by a percentage equal to the percentage increase in the ,chained ,consumer ,price ,index for ,all ,urban ,consumers 7as published by the ,bureau of ,labor ,statistics of the ,department of ,labor7 over the period of such previous school year4 7e7 ,use of funds ,funds deposited into a ,military ,education ,savings ,account for a school year may be used by the parent of an eligible military dependent child to make payments to a provider of a qualified educational service that is approved by the ,secretary under subsection 7f77#a71 including for-- 7#a7 costs of attendance at a private elementary school or private secondary school1 educational co-op1 micro-school1 learning pod1 or hybrid school1 which may include a school of any kind that has a religious mission2 7#b7 private online learning programs2 7#c7 private tutoring or educational instruction outside the home2 7#d7 individual classes1 extracurricular activities and programs1 athletic programs1 and educational trips provided by a school of any kind or as part of a parent-directed curriculum2 7#e7 summer camps and academic camps that take place at times other than the summer2 7#f7 ancillary materials as prescribed by a student's educational therapist or a medical professional to complete academic work2 7#g7 textbooks1 curriculum programs1 or other instructional materials1 including any supplemental materials required by a curriculum program1 private school1 private online learning program1 or a public school1 or any parent-directed curriculum associated with kindergarten through grade #ab education2 7#h7 computer hardware or other technological devices that are used to help meet a child's educational needs1 except that such hardware or devices may not be purchased by a parent more than once in an #ah-month period2 7#i7 educational software and applications2 7#aj7 uniforms purchased from or through a private school2 7#aa7 fees for nationally standardized assessment exams1 advanced placement exams1 any exams related to college or university admission1 or tuition or fees for preparatory courses for such exams2 7#ab7 fees for summer education programs and specialized after-school education programs 7but not including after-school childcare72 7#ac7 educational services and therapies1 including occupational1 behavioral1 physical1 speech-language1 and audiology therapies2 7#ad7 fees for transportation paid to a fee-for-service transportation provider for the child to travel to and from the facilities of a provider of qualified educational services2 7#ae7 costs of attendance at an institution of higher education2 7#af7 costs associated with an apprenticeship or other vocational training program2 7#ag7 fees for ,state-recognized industry certification exams1 and tuition or fees for preparatory courses for such exams2 7#ah7 contributions to a college savings account1 which may include contributions to a qualified tuition program 7as defined in section #ebi7;b77#a77;,a7 of the ,internal ,revenue ,code of #aihf7 or other prepaid tuition plan offered by a ,state2 or 7#ai7 any other educational services approved by the ,secretary4 7f7 ,requirements for providers of qualified educational services 7#a7 ,registration and approval ,the ,secretary shall establish and maintain a registry of providers of qualified educational services that are approved to receive payments from a ,military ,education ,savings ,account4 ,the ,secretary shall approve a provider of a qualified educational service under subsection 7e7 to receive such payments if the provider demonstrates to the ,secretary that it is licensed in the ,state in which it operates to provide one or more of the services for which funds may be expended under subsection 7e74 7#b7 ,surety bond 7,a7 ,in general ,the ,secretary shall require each provider of a qualified educational service under subsection 7e7 that receives #ajj1jjj or more in funds from ,military ,education ,savings ,accounts in a school year to post a surety bond1 in an amount determined by the ,secretary1 for such school year4 7,b7 ,retention ,the ,secretary shall prescribe the circumstances under which a surety bond under subparagraph 7,a7 may be retained by the ,secretary4 7g7 ,transfer schedule 7#a7 ,in general ,subject to paragraph 7#b71 the ,secretary shall make quarterly transfers of the amount calculated pursuant to subsection 7d7 for deposit into the account of each eligible military dependent child1 except that the ,secretary may make transfers according to another transfer schedule if the ,secretary determines that a transfer schedule other than quarterly transfers is necessary for the operation of the education savings account4 7#b7 ,choice of schedule ,the ,secretary shall establish a process under which the parent of a child on whose behalf a ,military ,education ,savings ,account is established may choose a transfer schedule other than a transfer schedule determined under paragraph 7#a74 7#c7 ,expense reports ,before receiving a transfer under paragraph 7#a7 or 7#b71 the parent of an eligible military dependent child on whose behalf a ,military ,education ,savings ,account is established shall submit to the ,secretary an expense report demonstrating how funds from the most recent transfer were expended4 7h7 ,rollover ,amounts remaining in the ,military ,education ,savings ,account of an eligible military dependent child at the end of a school year shall remain available for use in accordance with subsection 7e7 until the date on which such account terminates under subsection 7i74 7i7 ,termination and ,return of funds 7#a7 ,termination ,the ,military ,education ,savings ,account of an eligible military dependent child shall terminate on-- 7,a7 the date on which the child enrolls in a public elementary school or secondary school on a full-time basis2 7,b7 in the case of a child who is pursuing postsecondary education1 the earlier of-- 7i7 the date on which the child completes postsecondary education2 or 7ii7 the date on which the child attains the age of #bb years2 7,c7 in the case of a child who is an individual with a disability1 the date on which the child attains the age of #bf years2 or 7,d7 in the case of an individual not described in subparagraph 7,b7 or 7,c71 the earlier of-- 7i7 the date on which the child attains the age of #bb years2 or 7ii7 the expiration of any #b-year period during which funds in the account are not used in accordance with this section4 7#b7 ,return of funds ,any funds remaining in a ,military ,education ,savings ,account on the date such account terminates under paragraph 7#a7 shall be returned to the ,treasury of the ,united ,states and shall be used to carry out the program under this section4 7j7 ,compulsory attendance requirements ,a ,state that receives funds under this title shall consider a child with a ,military ,education ,savings ,account for a school year as meeting the ,state's compulsory school attendance requirements for such school year4 7k7 ,special rule ,in the case of a child with a ,military ,education ,savings ,account who attends a public school on a less than full-time basis in a school year-- 7#a7 the child may not attend the public school free of charge2 and 7#b7 funds in the account1 in an amount determined pursuant to an agreement between the parent of the child and the local educational agency concerned1 shall be used to pay for the child's costs of attendance at such school4 7l7 ,tax treatment of accounts 7#a7 ,in general ,a ,military ,education ,savings ,account is exempt from taxation under subtitle ,a of the ,internal ,revenue ,code of #aihf4 7#b7 ,contributions and distributions ,for purposes of subtitle ,a of the ,internal ,revenue ,code of #aihf-- 7,a7 any contribution to a military education savings account by the ,secretary under this ,act shall not be includible in the gross income of the individual for whose benefit such account is maintained or the parent of such individual2 and 7,b7 any distribution from a military education savings account which is permitted under this ,act shall not be includible in the gross income of the individual for whose benefit such account is maintained or the parent of such individual4 7m7 ,fraud prevention and reporting ,the ,secretary shall establish a website and a telephone hotline that enable individuals to anonymously report suspected fraud in the program under this section4 ,the ,secretary also shall conduct or contract for random1 quarterly1 or annual audits of accounts as needed to ensure compliance with this section4 7n7 ,contract authority ,the ,secretary may enter into one or more contracts for the purpose of carrying out the responsibilities of the ,secretary under this section4 7o7 ,refunds ,the ,secretary shall establish a process under which payments from a ,military ,education ,savings ,accounts to a provider of a qualified educational service under subsection 7e7 shall be refunded to the account in the event of fraud or nonperformance by the provider4 7p7 ,rules of construction 7#a7 ,nonagency ,a provider of a qualified educational service under subsection 7e7 that receives a payment from a ,military ,education ,savings ,account pursuant to this section shall not be considered an agent of the ,state or the ,federal ,government solely because the provider received such payment4 7#b7 ,prohibition of ,federal or ,state supervision or control over nonpublic education providers 7,a7 ,in general ,nothing in this section shall be construed to permit1 allow1 encourage1 or authorize any ,federal or ,state control or supervision over any aspect of any provider of a qualified educational service1 including a private1 religious1 or home education provider 7without regard to whether a home education provider is treated as a private school or home school under ,state law74 ,this section shall not be construed to exclude private1 religious1 or home education providers from participation in programs or services under this ,act4 7,b7 ,no religion-based discrimination ,the ,secretary shall not exclude1 discriminate against1 or otherwise disadvantage any provider of a qualified educational service with respect to programs or services under this section based in whole or in part on the provider's religious education character or affiliation1 including religiously based or mission-based policies or practices4 7#c7 ,imposition of additional requirements ,no ,federal requirements shall apply to a provider of a qualified educational service under subsection 7e7 other than the requirements specifically set forth in this section4 ,nothing in this section shall be construed to require a provider of a qualified educational service under subsection 7e7 to alter its creed1 practices1 admissions policy1 or curriculum in order to be eligible to receive payments from a ,military ,education ,savings ,account4 7#d7 ,treatment of assistance ,for purposes of any ,federal law1 assistance provided under this section shall be considered assistance to the eligible military dependent child or to the parents of a child on whose behalf a ,military ,education ,savings ,account is established and shall not be considered assistance to the provider of a qualified educational service under subsection 7e7 that uses or receives funds from a ,military ,education ,savings ,account4 7q7 ,legal proceedings 7#a7 ,burden ,in any legal proceeding in which a provider of a qualified educational service under subsection 7e7 challenges a requirement imposed by the ,department of ,education on the provider1 the ,department shall have the burden of establishing that the requirement is necessary and does not impose any undue burden on the provider4 7#b7 ,limitation on liability 7,a7 ,in general ,no liability shall arise on the part of an entity described in subparagraph 7,b7 solely because such entity awards1 uses1 or receives funds from a ,military ,education ,savings ,account4 7,b7 ,entity described ,the entities described in this subparagraph are the following3 7i7 ,the ,department of ,education4 7ii7 ,an entity that enters into a contract with the ,secretary pursuant to subsection 7n74 7iii7 ,an entity that provides a qualified educational service as described in subsection 7e74 7#c7 ,intervention 7,a7 ,in general ,except as provided in subparagraph 7,b71 a parent of an eligible military dependent child or a parent of a child on whose behalf a ,military ,education ,savings ,account is established may intervene in any legal proceeding in which the constitutionality of the program under this section is challenged under a ,state constitution or the ,united ,states ,constitution4 7,b7 ,exception ,for purposes of judicial administration1 a court may-- 7i7 limit the number of parents allowed to intervene in a proceeding under subparagraph 7,a72 or 7ii7 require all parents who have intervened in a proceeding under subparagraph 7,a7 to file a joint brief1 except that no parent shall be required to join any brief filed on behalf of a ,state that is a defendant in the proceeding4 7r7 ,administrative expenses ,the ,secretary may use not more than #e percent of the funds made available to carry out this section for the direct costs of administering ,military ,education ,savings ,accounts4 7s7 ,definitions ,in this section3 7#a7 ,the terms commissioned officer1 enlisted member1 and warrant officer have the meanings given those terms in section #aja7;b7 of title #aj1 ,united ,states ,code4 7#b7 ,the term eligible military dependent child means a child who-- 7,a7 has a parent on active duty in the uniformed services 7as that term is defined in section #aja of title #cg1 ,united ,states ,code1 except that such term does not include an officer in the ,national ,guard who has been activated72 and 7,b7 in the case of a child seeking to establish a ,military ,education ,savings account for the first time1 was enrolled in a public elementary school or a public secondary school for not less than #ajj consecutive days in the preceding school year4 7#c7 ,the term institution of higher education has the meaning given the term in section #ajb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb74 4 7b7 ,table of contents ,the table of contents in section #b of the ,elementary and ,secondary ,education ,act is amended by inserting after the item relating to section #gjab the following3 ,sec4 #gjab;,a4 ,military education savings accounts4 4 #c4 ,authorization of appropriations ,section #gjad of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ggad7 is amended by adding at the end the following3 7f7 ,military education savings accounts ,for the purpose of carrying out section #gjab;,a-- 7#a7 there are authorized to be appropriated #a1bjj1jjj1jjj for fiscal year #bjbf2 and 7#b7 for each fiscal year beginning after fiscal year #bjbf1 the amount authorized to be appropriated shall be the amount authorized to be appropriated for the previous fiscal year increased by the percentage increase in the ,chained ,consumer ,price ,index for ,all ,urban ,consumers 7as published by the ,bureau of ,labor ,statistics of the ,department of ,labor7 over the period of such previous fiscal year4 4