Teacher Victims’ Family Assistance Act of 2017

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Teacher Victims' Family Assistance 
Act of 2017''.

SEC. 2. 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 given 
        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.

SEC. 3. 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. 4. 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(1) of the Teacher Victims' Family Assistance Act of 2017), 
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 inserting after section 139F the 
        following new section:

``SEC. 139G. 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 2017.''.
            (2) Clerical amendment.--The table of sections for such 
        part is amended by inserting after the item relating to section 
        139F the following new item:

``Sec. 139G. Teacher victim family assistance.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.

SEC. 5. TEACHER VICTIMS' FAMILY FUND.

    (a) Establishment.--Subchapter A of chapter 98 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following:

``SEC. 9512. TEACHER VICTIMS' FAMILY TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Teacher Victims' 
Family Trust Fund' (referred to in this section as the `Trust Fund'), 
consisting of such amounts as may be appropriated or credited to the 
Trust Fund as provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There is hereby appropriated to the 
Trust Fund an amount equivalent to the increase in revenues received in 
the Treasury by reason of the increase in tax imposed under section 
4181 by the Teacher Victims' Family Assistance Act of 2017.
    ``(c) Distribution of Amounts in Trust Fund.--Amounts in the Trust 
Fund shall be available, as provided in appropriation Acts, to carry 
out section 3 of the Teacher Victims' Family Assistance Act of 2017.''.
    (b) Increase in Excise Tax on Ammunition.--Section 4181 of such 
Code is amended--
            (1) by striking ``Shells, and cartridges.'', and
            (2) by adding at the end the following:
    ``Articles taxable at 13 percent--
            ``Shells, and cartridges.''.
    (c) Conforming Amendments.--
            (1) Subsection (a) of section 3 of the Pittman-Robertson 
        Wildlife Restoration Act (16 U.S.C. 669b) is amended by adding 
        at the end the following new paragraph:
            ``(3) Paragraph (1) shall not apply to so much of the 
        revenues accruing under section 4181 of the Internal Revenue 
        Code of 1986 as are attributable to the increase in tax imposed 
        under section 4181 by the Teacher Victims' Family Assistance 
        Act of 2017.''.
            (2) The table of sections for subchapter A of chapter 98 of 
        such Code is amended by adding at the end the following:

``Sec. 9512. Teacher Victims' Family Trust Fund.''.
    (d) Effective Date.--
            (1) Except as provided by paragraph (2), the amendments 
        made by this section shall take effect on the date of the 
        enactment of this Act.
            (2) The amendment made by subsection (b) shall apply to 
        articles sold after the date of the enactment of this Act.

SEC. 6. ELIGIBILITY FOR PUBLIC SAFETY OFFICER DEATH BENEFITS.

    For purposes of part L of the Omnibus Crime Control and Safe 
Streets Act of 1968 (42 U.S.C. 3796 et seq.)--
            (1) a victim shall be deemed to be a public safety officer 
        who has died as the direct and proximate result of a personal 
        injury sustained in the line of duty;
            (2) the surviving spouse of the victim shall be deemed to 
        be the surviving spouse of such a public safety officer; and
            (3) the dependent child of the victim shall be deemed to be 
        the surviving child of such a public safety officer.

SEC. 7. 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.

Summary: Teacher Victims' Family Assistance Act of 2017 This bill directs the Department of Education to provide assistance to the immediate families of teachers or other elementary and secondary school employees who are killed by another person's violent act while performing school duties. Such assistance includes funeral assistance, a death benefit, living assistance, and undergraduate education assistance for dependents. The bill amends the Internal Revenue Code to exempt from income tax: (1) the victim's compensation from school employment in the year of death, and (2) the victim's family assistance. The bill also establishes the Teacher Victims' Family Trust Fund funded with an excise tax increase on ammunition.