1. Application to children. Except as otherwise provided in subsection 2, this chapter applies to the children of:
A. Active duty members of the uniformed services;
B. Members or veterans of the uniformed services who are severely injured and medically discharged or retired for a period of one year after medical discharge or retirement; and
C. Members of the uniformed services who die on active duty or as a result of injuries sustained on active duty for a period of one year after death.
2. Application to local education agencies. This chapter applies to local education agencies.
3. Exemption. This chapter does not apply to children of:
A. Inactive members of the national guard and military reserves;
B. Members of the uniformed services now retired, except as provided in subsection 1;
C. Veterans of the uniformed services, except as provided in subsection 1; and
D. Other federal Department of Defense personnel and other federal agency civilian and contract employees not defined as active duty members of the uniformed services.