agreement under subsection (b)(1)(A) to any other 
school to which such child transfers. 
(3) REFUNDS AND REBATES.— 
(A) GENERAL PROHIBITION.—A qualifying 
provider that receives funds from an education 
savings account provided under subsection 
(b)(2) may not— 
(i) refund, or provide a rebate, of any 
portion of such funds to the eligible child 
who is the designated beneficiary of the 
education savings account or a parent of 
such child; or 
(ii) share such funds with such child 
or parent in any manner. 
(B) EXCEPTION.—Any refund that is 
needed for an item that is being returned, or an 
item or service that has not been provided, shall 
be provided to the State educational agency, 
and the State educational agency shall deposit 
the amounts refunded into the education sav-
ings account from which such amounts were 
originally distributed. 
(4) NONDISCRIMINATION.— 
(A) IN GENERAL.—A qualifying provider 
may not discriminate against program partici-
VerDate Sep 11 2014 
03:56 Jun 18, 2016
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5517.IH
H5517
SSpencer on DSK4SPTVN1PROD with BILLS
pants or applicants on the basis of race, color, 
national origin, or sex. 
(B) SINGLE SEX SCHOOLS, CLASSES, OR 
ACTIVITIES.—Notwithstanding 
subparagraph 
(A) or any other provision of law, a qualifying 
provider may offer a single sex school, class, or 
activity. 
(C) RELIGIOUSLY AFFILIATED QUALIFYING 
PROVIDERS.— 
(i) IN
GENERAL.—Notwithstanding 
any other provision of law— 
(I) the prohibition of sex dis-
crimination in subparagraph (A) shall 
not apply to a qualifying provider that 
is operated by, supervised by, con-
trolled by, or connected to a religious 
organization to the extent that the ap-
plication of such subparagraph is in-
consistent with the religious tenets or 
beliefs of such provider; and 
(II) a qualifying provider that is 
operated by, supervised by, controlled 
by, or connected to a religious organi-
zation may exercise its right in mat-
ters of employment consistent with 
VerDate Sep 11 2014 
03:56 Jun 18, 2016
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5517.IH
H5517
SSpencer on DSK4SPTVN1PROD with BILLS
title VII of the Civil Rights Act of 
1964 (42 U.S.C. 2000e et seq.), in-
cluding the exemptions in such title. 
(ii) MAINTENANCE
OF
PURPOSE.— 
Notwithstanding any other provision of 
law, the receipt of funds from an education 
savings account provided under subsection 
(b)(2) shall not, consistent with the first 
amendment to the Constitution of the 
United States— 
(I) necessitate any change in the 
teaching mission of a qualifying pro-
vider; 
(II) require a qualifying provider 
to remove religious art, icons, scrip-
tures, or other symbols; or 
(III) preclude a qualifying pro-
vider from retaining religious terms in 
its name, selecting board members on 
a religious basis, or including religious 
references in the mission statements, 
charters, or other governing docu-
ments of such provider. 
(f) RULES OF CONSTRUCTION.— 
VerDate Sep 11 2014 
03:56 Jun 18, 2016
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5517.IH
H5517
SSpencer on DSK4SPTVN1PROD with BILLS
(1) TREATMENT
OF
ASSISTANCE.—For pur-
poses of any Federal law or program— 
(A) no assistance provided under this Act 
may be treated as assistance to any qualifying 
provider; and 
(B) the amount of any funds in an edu-
cation savings account provided under sub-
section (b)(2) may not be treated as income of 
the eligible child who is the designated bene-
ficiary of the education savings account or a 
parent of such child. 
(2) NO ABILITY TO CONTROL CURRICULUM.— 
Nothing in this Act shall be construed to authorize 
any officer or employee of the Federal Government, 
through grants, contracts, or other cooperative 
agreements, to mandate, direct, or control the cur-
riculum, program of instruction, instructional con-
tent, academic standards, assessments, or allocation 
of resources of a State or of any school in a State. 
(3) NO EXTENSION OF REGULATORY AUTHOR-
ITY.—Nothing in this Act shall be construed to ex-
pand the regulatory authority of a State government 
or the Federal Government to impose any additional 
regulations on nonpublic schools beyond the regula-
VerDate Sep 11 2014 
03:56 Jun 18, 2016
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5517.IH
H5517
SSpencer on DSK4SPTVN1PROD with BILLS
tions necessary to enforce the requirements of this 
Act. 
(g) TRANSITION.—Each State educational agency 
shall take steps to ensure a smooth transition to the pro-
gram under this Act in order to ensure that education sav-
ings accounts are available to eligible children beginning 
with the 2017–2018 academic year. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ELIGIBLE
CHILD.—The term ‘‘eligible 
child’’ means a child— 
(A) who— 
(i) is enrolling in a public school; or 
(ii) was enrolled in a public school 
during the previous academic year; and 
(B) whose parent disagrees with a Federal 
mandate that the school implements as a condi-
tion of receiving Federal funds. 
(2) ESEA TERMS.—The terms ‘‘average per- 
pupil expenditure’’, ‘‘child’’, ‘‘distance learning’’, 
‘‘free public education’’, ‘‘parent’’, ‘‘specialized in-
structional support services’’, ‘‘State’’, and ‘‘State 
educational agency’’ have the meanings given such 
terms in section 8101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801). 
VerDate Sep 11 2014 
03:56 Jun 18, 2016
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5517.IH
H5517
SSpencer on DSK4SPTVN1PROD with BILLS
(3) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given such term in section 102(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1002(a)). 
(4) QUALIFYING PROVIDER.—The term ‘‘quali-
fying provider’’ means an entity that— 
(A) is— 
(i) a public school; 
(ii) a nonpublic school; 
(iii) a home school, provided that the 
eligible child was enrolled in a public 
school during the previous academic year; 
(iv) a tutoring facility; 
(v) a provider of distance learning; 
(vi) a provider of specialized instruc-
tional support services; or 
(vii) an institution of higher edu-
cation; 
(B) notifies a State educational agency of 
the intent to become a qualifying provider; and 
(C) agrees to comply with the requirements 
of section 2(e). 
(5) SCHOOL.—The term ‘‘school’’— 
(A) means a preschool, kindergarten, ele-
mentary school, or secondary school; and 
VerDate Sep 11 2014 
03:56 Jun 18, 2016
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5517.IH
H5517
SSpencer on DSK4SPTVN1PROD with BILLS