[Congressional Record Volume 165, Number 103 (Wednesday, June 19, 2019)]
[Senate]
[Pages S3853-S3855]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 760. Mr. SASSE (for himself, Mr. Cotton, Mr. Cruz, Mr. Scott of
South Carolina, and Mr. Scott of Florida) submitted an amendment
intended to be proposed by him to the bill S. 1790, to authorize
appropriations for fiscal year 2020 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:
At the end of part I of subtitle F of title V, add the
following:
SEC. __. MILITARY EDUCATION SAVINGS ACCOUNTS.
(a) In General.--The Secretary of Education (referred to in
this section as the ``Secretary''), in consultation with the
Secretary of Defense, shall carry out a program under which
the Secretary shall--
(1) at the request of a parent of an eligible military
dependent child, establish an account on behalf of such child
(to be known as a ``Military Education Savings Account'')
into which the Secretary shall deposit funds in an amount
determined under subsection (d); and
(2) 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 section.
(b) Application.--
(1) In general.--To be eligible to participate in the
program under this section for a school year, a parent of an
eligible military dependent child shall submit an application
to the Secretary in accordance with this subsection.
(2) Application process.--In carrying out paragraph (1),
the Secretary shall--
(A) accept applications on a year-round basis and establish
procedures for approving applications in an expeditious
manner; and
(B) 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 formats, including on a
publicly accessible website.
(3) Approval.--Subject to the availability of funds to
carry out this section, the Secretary shall approve the
application of a parent to establish a Military Education
Savings Account if--
(A) the application is submitted in accordance with the
application process established by the Secretary pursuant to
this subsection;
(B) the application demonstrates that the child on whose
behalf the Military Education Savings Account is to be
established is an eligible military dependent child; and
(C) the parent who submits the application enters into a
written agreement with the Secretary under which the parent
agrees--
(i) to provide the child with instruction in, at minimum,
the fields of reading, language, mathematics, science, and
social studies;
(ii) to not enroll the child in a public elementary school
or a public secondary school, on a full-time basis while
participating in the program;
(iii) to use funds in the Military Education Savings
Account only for the purposes authorized under this section;
and
(iv) to comply with all other requirements of this section.
(4) Renewals.--The Secretary shall establish a process for
the automatic renewal of a previously established Military
Education Savings Account except in cases in which--
(A) the parents of the child on whose behalf the account
was established choose not to renew the account; or
(B) the account was used to commit fraud or was otherwise
not used in accordance with the requirements of this section.
(c) Priority in the Event of Insufficient Funds.--
(1) 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 (b) for a school
year, the Secretary shall--
(A) first renew and fully fund previously established
Military Education Savings Accounts; and
(B) if funds remain available after renewing all accounts
under subparagraph (A), conduct the lottery described in
paragraph (3) to select the children on whose behalf accounts
will be established using the remaining funds.
(2) Transfer authority.--Notwithstanding any other
provision of law, 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 (1)(A). The authority to transfer
amounts under the preceding sentence shall not be subject to
any transfer or reprogramming requirements under any other
provision of law.
(3) Lottery.--The lottery described in this paragraph is a
lottery in which--
(A) siblings of children on whose behalf Military Education
Savings Accounts have previously been established have the
highest probability of selection;
(B) children of enlisted members have the next-highest
probability of selection after the children described in
subparagraph (A);
(C) children of warrant officers have the next-highest
probability of selection after the children described in
subparagraph (B); and
(D) children of commissioned officers have the lowest
probability of selection.
(d) Amount of Deposits.--
(1) 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 $6000 for each eligible military
dependant child covered by the account.
(2) Subsequent years.--The amount of funds deposited into
each Military Education Savings Account for any school year
after the year described in paragraph (1), 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 (as published by the Bureau of Labor Statistics of
the Department of Labor) over the period of such previous
school year.
(e) 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 qualified educational service provider that is
approved by the Secretary under subsection (f)(1) for--
(1) costs of attendance at a private elementary school or
secondary school recognized by the State, which may include a
private school that has a religious mission;
(2) private online learning programs;
(3) private tutoring;
(4) services provided by a public elementary school or
secondary school attended by the child on a less than full-
time basis, including individual classes and extracurricular
activities and programs;
(5) textbooks, curriculum programs, or other instructional
materials, including any supplemental materials required by a
curriculum program, private school, private online learning
program, or a public school, or any parent directed
curriculum associated with K-12 education;
(6) computer hardware or other technological devices that
are used to help meet a child's educational needs, except
that such hardware or devices may not be purchased by a
parent more than once in an 18-month period;
(7) educational software and applications;
(8) uniforms purchased from or through a private school
recognized by the State;
(9) fees for nationally standardized assessment exams,
advanced placement exams, any exams related to college or
university admission, or tuition or fees for preparatory
courses for such exams;
(10) fees for summer education programs and specialized
after-school education programs (but not including after-
school childcare);
(11) educational services and therapies, including
occupational, behavioral, physical, speech-language, and
audiology therapies;
(12) fees for transportation paid to a fee-for-service
transportation provider for the child to travel to and from
the facilities of a qualified educational service provider;
[[Page S3854]]
(13) costs of attendance at an institution of higher
education;
(14) costs associated with an apprenticeship or other
vocational training program;
(15) fees for state-recognized industry certification
exams, and tuition or fees for preparatory courses for such
exams;
(16) contributions to a college savings account, which may
include contributions to a qualified tuition program (as
defined in section 529(b)(1)(A) of the Internal Revenue Code
of 1986) or other prepaid tuition plan offered by a State; or
(17) any other educational expenses approved by the
Secretary.
(f) Requirements for Qualified Educational Service
Providers.--
(1) Registration and approval.--The Secretary shall
establish and maintain a registry of qualified educational
service providers that are approved to receive payments from
a Military Education Savings Account. The Secretary shall
approve a qualified educational service provider 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 (e)
(2) Participation in online marketplace.--As a condition of
receiving funds from a Military Education Savings Account, a
qualified educational service provider shall make its
services available for purchase through the online
marketplace described in subsection (g).
(3) Surety bond.--
(A) In general.--The Secretary shall require each qualified
educational service provider that receives $100,000 or more
in funds from Military Education Savings Accounts in a school
year to post a surety bond, in an amount determined by the
Secretary, for such school year.
(B) Retention.--The Secretary shall prescribe the
circumstances under which a surety bond under subparagraph
(A) may be retained by the Secretary.
(g) Online Marketplace.--
(1) In general.--The Secretary shall seek to enter into a
contract with a private-sector entity under which the entity
shall--
(A) establish and operate an online marketplace that
enables the holder of a Military Education Savings Account to
make direct purchases from qualified educational service
providers using funds from such account;
(B) ensure that each qualified educational service provider
on the registry maintained by the Secretary under subsection
(f)(1) has made its services available for purchase through
the online marketplace;
(C) ensure that all purchases made through the online
marketplace are for services that are allowable uses of funds
under subsection (e); and
(D) develop and make available a standardized expense
report form, in electronic and hard copy formats, to be used
by parents for reporting expenses in accordance with
subsection (h)(3).
(2) Rule of construction.--Nothing in this subsection shall
be construed to require the holder of a Military Education
Savings Account to make purchases using the online
marketplace described in paragraph (1).
(h) Transfer Schedule.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make quarterly transfers of the amount calculated
pursuant to subsection (d) for deposit into the account of
each eligible military dependent child, 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 account.
(2) 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 (1).
(3) Expense reports.--
(A) Submission required.--Before receiving a transfer under
paragraph (1) or (2), 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 expended.
(B) Format.--Each such expense report shall be submitted
using the standardized expense report form developed under
subsection (g)(1)(D).
(i) 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 (e) until the date on which such
account terminates under subsection (j).
(j) Termination and Return of Funds.--
(1) Termination.--The Military Education Savings Account of
an eligible military dependent child shall terminate on--
(A) the date on which the child enrolls in a public
elementary school or secondary school on a full-time basis;
(B) in the case of a child who is pursuing postsecondary
education, the earlier of--
(i) the date on which the child completes postsecondary
education; or
(ii) the date on which the child attains the age of 22
years;
(C) in the case of a child who is an individual with a
disability, the date on which the child attains the age of 26
years; or
(D) in the case of an individual not described in
subparagraphs (B) or (C), the earlier of--
(i) the date on which the child attains the age of 22
years; or
(ii) the expiration of any 2-year period during which funds
in the account are not used in accordance with this section.
(2) Return of funds.--Any funds remaining in a Military
Education Savings Account on the date such account terminates
under paragraph (1) shall be returned to the Treasury of the
United States and shall be used to carry out the program
under this section.
(k) 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 year.
(l) 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--
(1) the child may not attend the public school free of
charge; and
(2) funds in the account, in an amount determined pursuant
to an agreement between the parent of the child and the local
educational agency concerned, shall be used to pay for the
child's costs of attendance at such school.
(m) Tax Treatment of Accounts.--
(1) In general.--A Military Education Savings Account is
exempt from taxation under subtitle A of the Internal Revenue
Code of 1986.
(2) Contributions and distributions.--For purposes of
subtitle A of the Internal Revenue Code of 1986--
(A) 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
individual; and
(B) 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
individual.
(n) 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 section. The Secretary also shall conduct
or contract for random, quarterly, or annual audits of
accounts as needed to ensure compliance with this section.
(o) Contract Authority.--The Secretary may enter into one
or more contracts for the purpose of carrying out the
responsibilities of the Secretary under this section.
(p) Refunds.--The Secretary shall establish a process under
which payments from a Military Education Savings Accounts to
a qualified educational service provider shall be refunded to
the account in the event of fraud or nonperformance by the
provider.
(q) Rules of Construction.--
(1) Nonagency.--A qualified educational service provider
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 payment.
(2) Federal or state supervision.--Nothing in this section
shall be construed to allow any agency of a State or the
Federal Government to exercise control or supervision over
any qualified educational service provider.
(3) Imposition of additional requirements.--No Federal
requirements shall apply to a qualified educational service
provider other than the requirements specifically set forth
in this section. Nothing in this section shall be construed
to require a qualified educational service provider to alter
its creed, practices, admissions policy, or curriculum in
order to be eligible to receive payments from a Military
Education Savings Account.
(4) Treatment of assistance.--For purposes of any Federal
law, 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 qualified educational service
provider that uses or receives funds from a Military
Education Savings Account.
(r) Legal Proceedings.--
(1) Burden.--In any legal proceeding in which a qualified
educational service provider challenges a requirement imposed
by the Department of Education on the provider, the
Department shall have the burden of establishing that the
requirement is necessary and does not impose any undue burden
on the provider.
(2) Limitation on liability.--
(A) In general.--No liability shall arise on the part of an
entity described in subparagraph (B) solely because such
entity awards, uses, or receives funds from a Military
Education Savings Account.
(B) Entity described.--The entities described in this
subparagraph are the following:
(i) The Department of Education.
(ii) An entity that enters into a contract with the
Secretary pursuant to subsection (g) or subsection (o).
(iii) A qualified educational service provider.
(3) Intervention.--
[[Page S3855]]
(A) In general.--Except as provided in subparagraph (B), 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
Constitution.
(B) Exception.--For purposes of judicial administration, a
court may--
(i) limit the number of parents allowed to intervene in a
proceeding under subparagraph (A); or
(ii) require all parents who have intervened in a
proceeding under subparagraph (A) to file a joint brief,
except that no parent shall be required to join any brief
filed on behalf of a State that is a defendant in the
proceeding.
(s) Administrative Expenses.--The Secretary may use not
more than 5 percent of the funds made available to carry out
this section for the direct costs of administering Military
Education Savings Accounts.
(t) Definitions.--In this section:
(1) The terms ``commissioned officer'', ``enlisted
member'', and ``warrant officer'' have the meanings given
those terms in section 101(b) of title 10, United States
Code.
(2) The term ``eligible military dependent child'' means a
child who--
(A) has a parent on active duty in the uniformed services
(as that term is defined in section 101 of title 37, United
States Code, except that such term does not include an
officer in the National Guard who has been activated); and
(B) in the case of a child seeking to establish a Military
Education Savings account for the first time, was enrolled in
a public elementary school or a public secondary school for
not less than 100 consecutive days in the preceding school
year.
(3) The term ``institution of higher education'' has the
meaning given the term in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002).
(4) The term ``qualified educational service provider''
means an entity or person that is licensed by a State to
provide one or more of the educational services for which
funds may be expended under subsection (e), including--
(A) a private school;
(B) a non-public online learning program or course
provider;
(C) an institution of higher education, which may include a
community college or a technical college;
(D) a public school;
(E) a private tutor or entity that operates a tutoring
facility;
(F) a provider of educational materials or curriculum;
(G) a provider of education-related therapies or services;
or
(H) any other provider of educational services licensed by
a State to provide such services.
(u) Authorization of Appropriations.--For the purpose of
carrying out this section--
(1) there are authorized to be appropriated $1,200,000,000
for fiscal year 2020; and
(2) for each fiscal year beginning after fiscal year 2020,
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 (as published by the
Bureau of Labor Statistics of the Department of Labor) over
the period of such previous fiscal year.
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