To require the Secretary of Education to provide assistance to the immediate family of a teacher or other school employee killed in an act of violence while performing school duties.

Summary: Teacher Victims' Family Assistance Act of 2002 - Directs the Secretary of Education to provide assistance to the immediate families of teachers or other school employees who are killed by an another person's violent act during their performance of duties for a public or private elementary or secondary school (teacher-victims).Includes among such assistance: (1) funeral assistance; (2) a death benefit payment to the surviving spouse, dependent child, or other next of kin; (3) monthly living assistance for the surviving spouse until death or remarriage and for each dependent child until age18; and (4) undergraduate education assistance for each dependent child for five years or until age 25.Amends the Internal Revenue Code to exclude from income: (1) a teacher-victim's wages in the year of death; and (2) teacher victim family assistance under this Act in any taxable year.Directs the Secretary of Health and Human Services to allow a teacher-victim's surviving spouse until remarriage, and each dependent child up to age 25, to elect to be deemed to be entitled to hospital insurance benefits and enrolled for supplementary medical insurance benefits under Medicare, and to enroll for a Medigap supplemental policy, under the Social Security Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Teacher Victims' Family Assistance 
Act of 2002''.

SEC. 2. TEACHER VICTIM FAMILY ASSISTANCE.

    The Secretary of Education shall provide to each applicable 
recipient the following amounts and forms of assistance:
            (1) Funeral assistance.--A payment of up to $1,500 to the 
        surviving spouse, dependent child, or other next of kin, as 
        determined by the Secretary, to assist with any funeral 
        expenses of the victim.
            (2) Death benefit.--A payment of $75,000 to the surviving 
        spouse, dependent child, or other next of kin, as determined by 
        the Secretary.
            (3) Living assistance.--Beginning one year after the date 
        of death of the victim, a payment of--
                    (A) $900 per month to the surviving spouse, until 
                the earlier of the spouse's death or remarriage; and
                    (B) $225 per month to each dependent child, until 
                reaching the age of 18 years.
            (4) Dependent undergraduate education assistance.--
                    (A) In general.--For each dependent child enrolled 
                or accepted for enrollment in a part-time or full-time 
                program of undergraduate instruction at an institution 
                of higher education, an annual amount not to exceed the 
                lesser of $7,500 or half the total annual cost of 
                attendance at such institution.
                    (B) Relation to other assistance.--Assistance 
                provided under this paragraph shall not be considered 
                for the purpose of awarding Federal assistance under 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1070 et seq.), except that in no case shall the sum of 
                the total amount of student financial assistance 
                awarded to a dependent child under such title and the 
                amount of assistance provided under this paragraph 
                exceed the child's total cost of attendance.
                    (C) Duration of assistance.--A dependent child may 
                receive assistance under this paragraph for not more 
                than a total of 5 years.
                    (D) Good standing required.--The dependent child 
                must maintain good standing at the institution in order 
                to receive assistance under this paragraph.
                    (E) Effect of parental death or remarriage.--The 
                death or remarriage of the surviving spouse does not 
                affect a dependent child's eligibility for assistance 
                under this paragraph.

SEC. 3. TAX PROVISIONS RELATING TO ELEMENTARY OR SECONDARY SCHOOL STAFF 
              MEMBERS KILLED IN AN ACT OF VIOLENCE WHILE PERFORMING 
              SCHOOL DUTIES.

    (a) Teacher's Wages in Year of Death Excluded From Income.--
            (1) In general.--Part II of subchapter J of chapter 1 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new section:

``SEC. 693. INCOME TAXES OF ELEMENTARY OR SECONDARY SCHOOL STAFF 
              MEMBERS KILLED IN AN ACT OF VIOLENCE WHILE PERFORMING 
              SCHOOL DUTIES.

    ``In the case of any individual who is a victim (as defined by 
section 2(f)(1) of the Teacher Victims' Family Assistance Act of 2002), 
any tax imposed by this subtitle on any amount received by such 
individual by reason of school employment shall not apply with respect 
to the taxable year in which falls the date of death of the 
individual.''.
            (2) Clerical amendment.--The table of sections for part II 
        of subchapter J of chapter 1 of such Code is amended by 
        inserting at the end the following new item:

                              ``Sec. 693. Income taxes of elementary or 
                                        secondary school staff members 
                                        killed in an act of violence 
                                        while performing school 
                                        duties.''.
    (b) Exclusion of Teacher Victim Family Assistance.--
            (1) In general.--Part III of subchapter B of chapter 1 of 
        such Code (relating to items specifically excluded from gross 
        income) is amended by redesignating section 139 as section 139A 
        and by inserting after section 138 the following new section:

``SEC. 139. TEACHER VICTIM FAMILY ASSISTANCE.

    ``In the case of an individual, gross income does not include any 
amount received in a taxable year under section 2 of the Teacher 
Victims' Family Assistance Act of 2002.''.
            (2) Clerical amendment.--The table of sections for such 
        part is amended by striking the last item and inserting the 
        following new items:

                              ``Sec. 139. Teacher victim family 
                                        assistance.
                              ``Sec. 139A. Cross references to other 
                                        Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 4. ENTITLEMENT TO MEDICARE BENEFITS.

    (a) Basic Medicare Health Benefits.--The surviving spouse and each 
dependent child of a victim may elect to be deemed to be entitled to 
hospital insurance benefits under part A of the Social Security Act (42 
U.S.C. 1395c) et seq. and to be enrolled under part B of such Act (42 
U.S.C. 1395j) for supplementary medical insurance benefits under the 
medicare program.
    (b) Medigap Benefits.--A surviving spouse and dependent child 
referred to in subsection (a) may enroll under a medicare supplemental 
policy under section 1882 of the Social Security Act (42 U.S.C. 1395ss) 
in the same manner and under the same terms and conditions as apply to 
individuals who first become entitled to benefits under part A of title 
XVIII of such Act, or enrolled under part B of such title.
    (c) Period of Entitlement.--Each surviving spouse and dependent 
child making an election under subsection (a) shall be so entitled and 
enrolled for the period that begins on the date of election and ends 
on--
            (1) in the case of a surviving spouse, the date on which 
        the surviving spouse remarries; and
            (2) in the case of an individual who is a dependent child, 
        the date on which the individual attains 25 years of age.
    (d) Administration of Provision.--The Secretary of Health and Human 
Services shall take such steps as are necessary to implement the 
provisions of this section, and provide for appropriate enrollment 
periods under title XVIII of the Social Security Act ( 42 U.S.C. 1395 
et seq.) to carry out the provisions of this section.

SEC. 5. ASSISTANCE SUPPLEMENTS, NOT SUPPLANTS OTHER BENEFITS.

    No assistance provided under this Act may supplant any benefit or 
other compensation paid or payable to the surviving spouse, dependent 
child, or other next of kin of the victim by the victim's employer, 
school, school district, or local or State government, or by any 
insurance coverage of the victim.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) The term ``victim'' means a teacher, administrator, 
        employee, or paid or unpaid staff member of a public or private 
        elementary or secondary school in the United States who was 
        killed as a result of an act of violence committed by another 
        person while performing school duties.
            (2) The term ``surviving spouse'' means the spouse of the 
        victim, as determined under applicable State law, at the time 
        of the victim's death.
            (3) The term ``dependent child'' means a son or daughter of 
        the victim (whether natural or adopted) who is under 25 years 
        old.
            (4) The term ``institution of higher education'' has the 
        meaning given that term in section 102 of the Higher Education 
        Act of 1965 (20 U.S.C. 1002).
            (5) The term ``cost of attendance'' has the meaning give 
        that term in section 472 of the Higher Education Act of 1965 
        (20 U.S.C. 1087ll).
            (6) The term ``Secretary'' means the Secretary of 
        Education.