[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3390 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3390

  To establish an Education Recoupment Trust Fund to recover misused 
    elementary and secondary education funds for the benefit of the 
                           affected students.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            August 27, 2018

   Mr. Brown introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, 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 students.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Putting Students First Act''.

SEC. 2. EDUCATION RECOUPMENT TRUST FUND.

    (a) Definitions.--In this section:
            (1) Eligible case.--The term ``eligible case'' means any 
        administrative, criminal, or civil case--
                    (A) in which the United States is a named party; 
                and
                    (B) related to the misuse of any qualifying money.
            (2) Local educational agency.--The term ``local educational 
        agency'' has the meaning given that term in section 8101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            (3) Misuse.--The term ``misuse'', when used with respect to 
        qualifying money, means--
                    (A) fraud, theft, or otherwise illegal or 
                prohibited use of qualifying money; or
                    (B) statements or actions used to fraudulently or 
                otherwise illegally obtain qualifying money.
            (4) Qualifying money.--The term ``qualifying money'' means 
        money distributed by the Department of Education for the 
        purpose of elementary or secondary education, including such 
        money distributed--
                    (A) directly to any individual or entity; or
                    (B) to a State educational agency, local 
                educational agency, school, charter school network or 
                system, charter school, charter or education management 
                organization, or any other institution, office, 
                department, or entity, which then distributed the money 
                to another individual or entity.
            (5) Responsible party.--The term ``responsible party'' 
        means any individual, institution, government body, official, 
        or other entity that is a named party to an eligible case 
        that--
                    (A) is ordered by a court or administrative agency 
                to pay a fine, fee, penalty, or judgment to the United 
                States Government due to misuse of qualifying money; or
                    (B) enters into a settlement agreement with the 
                United States Government related to the misuse of 
                qualifying money.
            (6) State educational agency.--The term ``State educational 
        agency'' has the meaning given that term in section 8101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            (7) Trust fund.--The term ``Trust Fund'' means the 
        Education Recoupment Trust Fund established under subsection 
        (b).
    (b) In General.--There is established in the Treasury of the United 
States a trust fund, to be known as the ``Education Recoupment Trust 
Fund'', consisting of such amounts as are deposited in the Trust Fund 
under subsection (c) or any other provision of law.
    (c) Deposits.--
            (1) In general.--Notwithstanding any other provision of 
        law, the Secretary of the Treasury shall deposit in the Trust 
        Fund an amount equal to 100 percent of funds collected by the 
        United States Government from any responsible party pursuant to 
        any judgment or award in or settlement of any litigation, or 
        fine or penalty imposed pursuant to any administrative action, 
        relating to an eligible case, 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 case.
            (2) Multiple counts or claims.--If an eligible case 
        involves multiple counts or claims, the Secretary of the 
        Treasury shall deposit only the collected funds related to the 
        counts or claims involving the misuse of qualifying money.
    (d) Distribution of Trust Fund.--The Secretary of the Treasury 
shall distribute any deposits made to the Trust Fund as follows:
            (1) In the case of funds deposited under subsection (c) 
        related to the misuse of qualifying money by a responsible 
        party that is a local educational agency, a school, a charter 
        school network or system, a charter school, a charter or 
        education management organization, or an official or employee 
        of any such agency, school, system, 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 located.
            (2) In the case of funds deposited under subsection (c) 
        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 agency, the funds shall be 
        distributed from the Trust Fund to the Secretary of Education.
            (3) In any case not described in paragraph (1) or (2), the 
        funds deposited under subsection (c) related to the misuse of 
        qualifying money shall be distributed from the Trust Fund to 
        the Secretary of Education.
    (e) Allocation of Funds From the Trust Fund.--
            (1) State educational agencies.--
                    (A) In general.--Subject to subparagraph (B), a 
                State educational agency that receives funds in 
                accordance with subsection (d)(1) 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 (d)(1) for that State as 
                the amount of funds under part A of title I of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311 et seq.) 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 year.
                    (B) Direct grants to schools.--Notwithstanding 
                subparagraph (A), in the case of a local educational 
                agency that continues to employ, or otherwise affiliate 
                with, an individual who is a responsible party who has 
                misused qualifying money, a State educational agency 
                may--
                            (i) 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 (A) as the amount of funds under 
                        part A of title I of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 6311 
                        et seq.) 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 year; or
                            (ii) attach reasonable conditions to 
                        prevent the misuse of qualifying money.
            (2) Secretary of education.--
                    (A) In general.--The Secretary of Education shall 
                allocate funds described in paragraphs (2) and (3) of 
                subsection (d) directly to each local educational 
                agency in the State in which the intended student 
                beneficiaries of the qualifying money were located.
                    (B) Amount of allocations.--The Secretary of 
                Education shall allocate funds described in paragraphs 
                (2) and (3) of subsection (d) to each local educational 
                agency in the State in an amount that bears the same 
                relationship to the total funds described in paragraphs 
                (2) and (3) of subsection (d) for that State as the 
                amount of funds under part A of title I of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311 et seq.) 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 year.
    (f) 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 1965 (20 U.S.C. 6311 et seq.). Any 
school receiving funds under this section shall use such funds in a 
manner consistent with such part.
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