text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Family Education Reimbursement Act 
  of 2005''.
  
  SEC. 2. FAMILY EDUCATION REIMBURSEMENT ACCOUNTS.
  
      (a) Establishment.--The Secretary of Education, in consultation 
  with the Secretary of Health and Human Services, shall--
              (1) establish a Family Education Reimbursement Account 
          Program under which, at the direction of the parent of each 
          displaced student who signs up under subsection (d), the 
          Secretary provides reimbursement to enable the student or 
          preschool-age child to attend the school or preschool program 
          of his or her parent's choice during the 2005-2006 school year;
              (2) of the amount available to carry out this section for 
          fiscal year 2006, use not more than one third of one percent of 
          such amount for administrative expenses, including outreach, 
          support services, and dissemination of information; and
              (3) contract with a nongovernmental entity to administer 
          and operate the program.
      (b) Reimbursement.--
              (1) In general.--In carrying out this section, the 
          Secretary--
                      (A) shall allow the parent of the participating 
                  displaced student to select the school or preschool 
                  program to be attended by the student during the 2005-
                  2006 school year;
                      (B) at the direction of the parent, shall provide 
                  reimbursement to that school or preschool program on a 
                  quarterly basis; and
                      (C) in the case of a public school, may provide 
                  such reimbursement to the appropriate local fiscal 
                  agent for the school.
              (2) Amount.--In providing reimbursement under paragraph 
          (1), the Secretary shall--
                      (A) determine the amount of reimbursement to a 
                  school or preschool program based on the number of 
                  weeks during which the participating displaced student 
                  attended the school or preschool program during the 
                  preceding quarter;
                      (B) subject to subparagraph (C), provide the same 
                  amount of reimbursement to each school and preschool 
                  program for each week of attendance by one 
                  participating displaced student;
                      (C) not provide reimbursement that exceeds the 
                  actual cost of the school for educating students, or 
                  the actual cost of the preschool program, for the same 
                  period for students who are not displaced students;
                      (D) not provide reimbursement of more than $6,700 
                  on behalf of any student for the 2005-2006 school year; 
                  and
                      (E) discontinue reimbursement once a displaced 
                  student returns to the school he or she attended prior 
                  to August 29, 2005.
              (3) Use of funds.--The Secretary may provide reimbursement 
          under paragraph (1) on behalf of a displaced student only if 
          the school or preschool program involved agrees--
                      (A) to use the reimbursement for providing 
                  educational and other services to the displaced 
                  student; and
                      (B) not to use the reimbursement for the 
                  construction or renovation of facilities.
      (c) Accounting of Funds.--The Secretary shall provide an 
  appropriate accounting of funds for each school or program that 
  receives a payment on behalf of one or more participating displaced 
  students under this section.
      (d) Registration.--
              (1) In general.--To seek to participate in the program 
          under this section, the parent of a displaced student shall 
          sign up by means of the Internet site, toll-free telephone 
          number, or paper form developed under subsection (e).
              (2) Account numbers.--Upon completion of registration for 
          the program under this section--
                      (A) the displaced student shall be assigned an 
                  account number; and
                      (B) the account number shall be made available to 
                  the parent of the student.
              (3) Families.--If a parent has more than one child who is a 
          displaced student--
                      (A) the parent shall be allowed to register each 
                  child under this subsection at the same time; and
                      (B) the same account number under paragraph (2) 
                  shall be provided to each child.
      (e) FERA System Development and Establishment.--
              (1) In general.--The Secretary shall develop and implement 
          a web-based system--
                      (A) to support the registration in the program 
                  under this section of displaced students by means of an 
                  Internet site, toll-free telephone number, or paper 
                  form; and
                      (B) to facilitate the timely payment of funds from 
                  the accounts of families participating in the program 
                  under this section to the school or preschool program 
                  authorized to be reimbursed for educational and other 
                  services rendered.
              (2) System requirements.--
                      (A) Internet site; toll-free telephone number; 
                  paper form.--The Internet site and toll-free telephone 
                  number developed pursuant to paragraph (1)--
                              (i) shall be integrated with each other;
                              (ii) shall, with respect to the toll-free 
                          telephone number, not be fully automated;
                              (iii) shall be operational not later than 2 
                          weeks after the date of the enactment of this 
                          section;
                              (iv) shall include privacy controls, 
                          consistent with section 444 of the General 
                          Education Provisions Act (20 U.S.C. 1232g);
                              (v) shall be accessible to participating 
                          displaced students and their parents for the 
                          purpose of determining--
                                      (I) the amount expended under this 
                                  section on the student's behalf to 
                                  date; and
                                      (II) the amount remaining for 
                                  expenditure under this section on the 
                                  student's behalf;
                              (vi) shall be accessible to schools and 
                          preschool programs for the purpose of 
                          facilitating reimbursement under subsection 
                          (b);
                              (vii) shall support non-English speaking 
                          parents by providing information and 
                          registration in an understandable and uniform 
                          format and, to the extent practicable, in a 
                          language the parents can understand;
                              (viii) may use existing Federal grant 
                          management and electronic payment systems;
                              (ix) shall include information technology 
                          and other controls necessary to prevent fraud 
                          and overpayment, including mechanisms to 
                          validate family and school information; and
                              (x) shall provide technical support 
                          services (including support for registration 
                          and processing of accounts) to the families of 
                          participating displaced students and the 
                          schools and preschool programs in which the 
                          students are enrolled.
                      (B) Payment system.--The Secretary shall ensure 
                  that--
                              (i) the payment system required to carry 
                          out this section is operational not later than 
                          4 weeks after the date of the enactment of this 
                          section; and
                              (ii) the first disbursements under this 
                          section are made not later than 5 weeks after 
                          the date of the enactment of this section.
              (3) Contractor requirements.--The Secretary shall award the 
          contract required by subsection (a)(3) to a nongovernmental 
          entity that--
                      (A) has experience meeting the requirements 
                  described in paragraph (2)(A);
                      (B) demonstrates expertise in the development and 
                  operation of information technology infrastructures, 
                  including the manufacture and supply of hardware and 
                  software, information management, electronic fund 
                  transfer payment systems, and customer relations 
                  management and outreach;
                      (C) demonstrates significant experience in the 
                  development, implementation, and technical support for 
                  payment management systems operated by agencies of the 
                  Federal Government, including the Department of 
                  Education and the Department of Health and Human 
                  Services; and
                      (D) is based, and operates help desk services, in 
                  the United States.
      (f) Transferring Students.--
              (1) In general.--Subject to paragraph (2), the Secretary 
          shall continue to provide reimbursement under this section on 
          behalf of a participating displaced student who transfers to 
          one or more schools or preschool programs during the 2005-2006 
          school year.
              (2) Exception.--The Secretary shall not provide 
          reimbursement under this section on behalf of a participating 
          displaced student with respect to any school or preschool 
          program which the student attends for less than 2 consecutive 
          weeks during the 2005-2006 school year.
      (g) Additional Amount for Administrative Expenses.--In providing 
  reimbursement to an entity under this section--
              (1) the Secretary shall include an additional amount equal 
          to 1 percent of the total amount of such reimbursement to the 
          entity for the purpose of defraying administrative expenses;
              (2) such additional amount shall not be counted for 
          purposes of the maximum reimbursement amount specified in 
          subsections (b)(2)(C) and (b)(2)(D); and
              (3) of the amount specified in subsections (b)(2)(C) and 
          (b)(2)(D), 100 percent of such amount shall be made available 
          to the school or preschool program.
      (h) Procurement.--For purposes of the contract required by 
  subsection (a)(3), the following provisions of Federal acquisition law 
  shall not apply:
              (1) Title III of the Federal Property and Administrative 
          Services Act of 1949 (41 U.S.C. 251 et seq.).
              (2) The Office of Federal Procurement Policy Act (41 U.S.C. 
          403 et seq.).
              (3) The Federal Acquisition Streamlining Act of 1994 
          (Public Law 103-355).
              (4) The Competition in Contracting Act.
              (5) Subchapter V of chapter 35 of title 31, relating to the 
          procurement protest system.
              (6) The Federal Acquisition Regulation and any laws not 
          listed in paragraphs (1) through (5) providing authority to 
          promulgate regulations in the Federal Acquisition Regulation.
      (i) Audit.--The Secretary may provide reimbursement under this 
  section to a school or program on behalf of a displaced student only if 
  the school or program agrees to allow the Secretary to conduct an audit 
  to review and verify that the school or program is using the 
  reimbursement in accordance with subsection (b)(3).
      (j) Nondiscrimination.--
              (1) In general.--The Secretary may provide reimbursement 
          under this section to a school or preschool program only if the 
          school or program agrees not to discriminate against 
          participating displaced students (including applicants) on the 
          basis of race, color, national origin, religion, or sex.
              (2) Applicability and single sex schools, classes, or 
          activities.--
                      (A) In general.--Notwithstanding any other 
                  provision of law, the prohibition of sex discrimination 
                  in paragraph (1) shall not apply to a school or 
                  preschool program that is operated by, supervised by, 
                  controlled by, or connected to a religious organization 
                  to the extent that the application of paragraph (1) is 
                  inconsistent with the religious tenets or beliefs of 
                  the school or program.
                      (B) Single sex schools, classes, or activities.--
                  Notwithstanding paragraph (1) or any other provision of 
                  law, a parent may choose and a school may offer a 
                  single sex school, class, or activity.
              (3) Children with disabilities.--Nothing in this section 
          may be construed to alter or modify the provisions of the 
          Individuals with Disabilities Education Act.
              (4) Religiously affiliated schools.--
                      (A) In general.--Notwithstanding any other 
                  provision of law, a school or preschool program 
                  receiving reimbursement under this section that is 
                  operated by, supervised by, controlled by, or connected 
                  to, a religious organization may exercise its right in 
                  matters of employment consistent with title VII of the 
                  Civil Rights Act of 1964 (42 U.S.C. 2000e-1 et seq.), 
                  including the exemptions in such title.
                      (B) Maintenance of purpose.--Notwithstanding any 
                  other provision of law, funds made available under this 
                  section on behalf of participating displaced students 
                  that are received by a school or preschool program, as 
                  a result of their parents' choice, shall not, 
                  consistent with the first amendment of the United 
                  States Constitution, necessitate any change in the 
                  school or program's teaching mission, require any 
                  school or program to remove religious art, icons, 
                  scriptures, or other symbols, or preclude any school or 
                  program from retaining religious terms in its name, 
                  selecting its board members on a religious basis, or 
                  including religious references in its mission 
                  statements and other chartering or governing documents.
              (5) Rule of construction.--Reimbursement (or any other form 
          of support provided on behalf of participating displaced 
          students) under this section shall be considered assistance to 
          the student and shall not be considered assistance to the 
          school or preschool program that enrolls the student.
      (k) Reports.--At the end of each quarter described in subsection 
  (b)(2)(A), the Secretary shall submit a report to the appropriate 
  committees of the Congress describing the implementation and results of 
  the program under this section. Such report shall--
              (1) specify the number of children served, the percentage 
          of funds used on instructional activities, and the percentage 
          of funds used for supplemental educational services; and
              (2) include information on the mobility of displaced 
          students.
      (l) Definitions.--In this section:
              (1) The term ``displaced student'' means a student who is 
          at least 4 years old, has not completed 12th grade, and would 
          have attended another school or preschool program during the 
          2005-2006 school year, but for the fact that--
                      (A) the school, the program, or the surrounding 
                  area was damaged by a Gulf hurricane disaster; and
                      (B) the school or program could not reopen shortly 
                  after the disaster.
              (2) The term ``Gulf hurricane disaster'' means a major 
          disaster that was declared to exist by the President, in 
          accordance with section 401 of the Robert T. Stafford Disaster 
          Relief and Emergency Assistance Act (42 U.S.C. 5170), and was 
          caused by Hurricane Katrina or Hurricane Rita.
              (3) The term ``parent'' has the meaning given to that term 
          in section 9101 of the Elementary and Secondary Education Act 
          of 1965 (20 U.S.C. 7801).
              (4) The term ``participating displaced student'' means a 
          displaced student participating in the program under this 
          section.
              (5) The term ``preschool program'' means a public or 
          private program serving 4 or 5 year old children, including any 
          such Head Start program, that is in compliance with applicable 
          State health and safety requirements.
              (6) The term ``school'' means a public or private 
          elementary school or secondary school (as those terms are 
          defined in section 9101 of the Elementary and Secondary 
          Education Act of 1965 (20 U.S.C. 7801)), including a religious 
          elementary school or secondary school, that was legally 
          operating in the State involved before September 1, 2005.
              (7) The term ``Secretary'' means the Secretary of 
          Education, in consultation with the Secretary of Health and 
          Human Services.
      (m) Funding.--
              (1) In general.--Out of funds not otherwise appropriated, 
          there is hereby appropriated to the Secretary of Education, to 
          carry out this section, $2,500,000,000, to remain available 
          through the period ending on July 31, 2006. Any such funds that 
          are not obligated by the end of such period shall revert to the 
          Treasury.
              (2) Contributions.--Under such terms and conditions as the 
          Secretary may impose, the Secretary may, for the purpose of 
          carrying out this section, accept and use such amounts as may 
          be contributed by individuals, business concerns, or other 
          entities for such purpose.
target: Family Education Reimbursement Act of 2005 - Directs the Secretary of Education to establish a Family Education Reimbursement Account Program for families of students displaced by Hurricane Katrina or Hurricane Rita.
  
  Provides for reimbursing parents for costs of such students or preschool-age children attending schools or preschool programs, chosen by the parents, during the 20052006 school year.
  
   Requires the Secretary to make a contract with a nongovernmental entity to administer and operate the program.
feat_title: To direct the Secretary of Education to establish a Family Education Reimbursement Account Program to assist hurricane displaced students during the 2005-2006 school year, and for other purposes.