[Federal Register Volume 62, Number 207 (Monday, October 27, 1997)]
[Rules and Regulations]
[Pages 55518-55521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28364]
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DEPARTMENT OF DEFENSE
DEPARTMENT OF TRANSPORTATION
Coast Guard
DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 21
RIN 2900-AI79
Veterans and Reservists Education: Additional Educational
Assistance While Serving in the Selected Reserve
AGENCIES: Department of Defense, Department of Transportation (Coast
Guard), and Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: This document amends the educational assistance and
educational benefits regulations of the Department of Veterans Affairs
(VA). It makes changes concerning the amount of monthly educational
assistance available to certain veterans and reservists training under
the Montgomery GI Bill. These changes restate statutory requirements
and set forth VA's statutory interpretations of a provision of the
National Defense Authorization Act for Fiscal Year 1996. It also makes
nonsubstantive changes by removing provisions that no longer apply and
by clarifying provisions.
DATES: Effective Date: This final rule is effective October 27, 1997.
However, the changes in restatements of statute and in statutory
interpretations will be applied retroactively from the effective dates
of the statutory provisions. For more information concerning the dates
of application, see the SUPPLEMENTARY INFORMATION section.
FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director
for Policy and Program Administration, Education Service, Veterans
Benefits Administration, 202-273-7187.
SUPPLEMENTARY INFORMATION: This document amends regulations concerning
VA-administered educational assistance and educational benefits under
the Montgomery GI Bill--Active Duty program (38 CFR part 21, subpart K)
and the Montgomery GI Bill--Selected Reserve program (38 CFR part 21,
subpart L).
The National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106) provides that the rate of the educational assistance
allowance may be increased by an amount not exceeding $350 per month
for certain persons. To be eligible a person must qualify for
educational assistance payable under the Montgomery GI Bill--Active
Duty through at least three years active duty service and must also
agree to serve at least 6 years in the Selected Reserve, or the person
must qualify for educational assistance payable under the Montgomery GI
Bill--Selected Reserve. Also, to be eligible the person must have a
skill or specialty designated by the Secretary of the appropriate
Department of the military as a skill or specialty in which there is a
critical shortage of personnel or for which it is difficult to recruit
or, in the case of critical units, to retain personnel. Public Law 104-
106 further provides that the actual amounts of increase shall be
determined by the Secretary of Defense. This document amends
Secs. 21.7136 and 21.7137 for the Montgomery GI Bill--Active Duty and
Sec. 21.7636 for the Montgomery GI Bill--Selected Reserve to reflect
these statutory amendments.
This document also amends Secs. 21.7131 and 21.7631 concerning
commencing dates to provide that the effective date for an increase
will be the latest of: the date that would otherwise be used for such
educational assistance; the first date on which the veteran or
reservist is entitled to the increase as determined by the Secretary of
the military department concerned; or February 10, 1996, the effective
date of Public Law 104-106. This document further amends Secs. 21.7135
and 21.7635 concerning discontinuance dates to add a provision stating
that if the veteran or reservist loses entitlement to the increase, the
effective date for the reduction in the monthly rate payable is the
date, as determined by the Secretary of the military department
concerned, that the veteran or reservist is no longer entitled to the
increase. In addition, this document makes amendments to Secs. 21.7139
and 21.7639 to clarify that adjustments made for certain incarcerated
persons and for failure to work sufficient hours of apprenticeship and
other on-job training are applicable to such increases in payments, in
the same manner as they are to other payments under the Montgomery GI
Bill--Active Duty or the Montgomery GI Bill--Selected Reserve. These
amendments, in our view, are required by statute.
[[Page 55519]]
The restatements of statute and statutory interpretations contained
in this final rule will be applied retroactively from February 10,
1996, which is the effective date of the statutory provision.
Nonsubstantive changes also are made by removing provisions that no
longer apply and by clarifying provisions.
The Department of Defense (DOD), the Department of Transportation
(Coast Guard), and VA are jointly issuing this final rule. The
additional amount available to veterans and reservists is funded by DOD
and the Coast Guard, but is administered by VA.
This final rule merely restates statutory provisions, sets forth
statutory interpretations, and makes nonsubstantive changes by removing
provisions that no longer apply and by clarifying provisions.
Accordingly, there is a basis for dispensing with prior notice and
comment and delayed effective date provisions of 5 U.S.C. 552 and 553.
The Secretary of Defense, the Commandant of the Coast Guard, and
the Secretary of Veterans Affairs hereby certify that this final rule
will not have a significant economic impact on a substantial number of
small entities as they are defined in the Regulatory Flexibility Act, 5
U.S.C. 601-612. This final rule affects individuals and does not affect
small entities. Further, it merely restates statutory changes, sets
forth statutory interpretations, and makes nonsubstantive changes.
Pursuant to 5 U.S.C. 605(b), this final rule, therefore, is exempt from
the initial and final regulatory flexibility analyses requirements of
sections 603 and 604.
The Catalog of Federal Domestic Assistance number for one of the
two programs affected by this final rule is 64.120. This final rule
also affects the Montgomery GI Bill--Selected Reserve program, which
has no Catalog of Federal Domestic Assistance number.
List of Subjects in 38 CFR Part 21
Administrative practice and procedure, Armed forces, Civil rights,
Claims, Colleges and universities, Conflict of interests, Defense
Department, Education, Employment, Grant programs-education, Grant
programs-veterans, Health care, Loan programs-education, Loan programs-
veterans, Manpower training programs, Reporting and recordkeeping
requirements, Schools, Travel and transportation expenses, Veterans,
Vocational education, Vocational rehabilitation.
Approved: July 22, 1997.
Hershel W. Gober,
Acting Secretary of Veterans Affairs.
Approved: August 13, 1997.
Al H. Bemis,
Deputy Assistant Secretary of Defense for Reserve Affairs (Manpower and
Personnel).
Approved: October 9, 1997.
G.F. Woolever,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human
Resources.
For the reasons set out in the preamble, 38 CFR part 21, subparts K
and L, is amended as set forth below.
PART 21--VOCATIONAL REHABILITATION AND EDUCATION
Subpart K--All Volunteer Force Educational Assistance Program
(Montgomery GI Bill--Active Duty)
1. The authority citation for part 21, subpart K, continues to read
as follows:
Authority: 38 U.S.C. 501(a), chs. 30, 36, unless otherwise
noted.
2. In Sec. 21.7131, paragraph (k) is added after the authority
citation following paragraph (j), to read as follows:
Sec. 21.7131 Commencing dates.
* * * * *
(k) Increase (``kicker'') due to service in the Selected Reserve.
If a veteran is entitled to an increase (``kicker'') in the monthly
rate of basic educational assistance because he or she has met the
requirements of Sec. 21.7136(g) or Sec. 21.7137(e), the effective date
of that increase (``kicker'') will be the latest of the following
dates:
(1) The commencing date of the veteran's award as determined by
paragraphs (a) through (j) of this section;
(2) The first date on which the veteran is entitled to the increase
(``kicker'') as determined by the Secretary of the military department
concerned; or
(3) February 10, 1996.
(Authority: 10 U.S.C. 16131)
3. In Sec. 21.7135, paragraph (bb) is redesignated as paragraph
(cc), and a new paragraph (bb) is added, to read as follows:
Sec. 21.7135 Discontinuance dates.
* * * * *
(bb) Reduction following loss of increase (``kicker'') for Selected
Reserve service. If a veteran is entitled to an increase (``kicker'')
in the monthly rate of basic educational assistance as provided in
Sec. 21.7136(g) or Sec. 21.7137(e), due to service in the Selected
Reserve, and loses that entitlement, the effective date for the
reduction in the monthly rate payable is the date, as determined by the
Secretary of the military department concerned, that the veteran is no
longer entitled to the increase (``kicker'').
(Authority: 10 U.S.C. 16131)
4. In Sec. 21.7136, paragraph (d) introductory text is amended by
removing ``paragraph (e)'', and adding, in its place, ``paragraphs (f)
and (g)''; paragraph (e)(1) is amended by removing ``(c)'' and adding,
in its place, ``(d)'' and by removing ``(a) or (b)'' and adding, in its
place, ``(b) or (c)''; and paragraph (e) introductory text is revised,
and paragraph (g) is added after the authority citation following
paragraph (f), to read as follows:
Sec. 21.7136 Rates for payment of basic educational assistance.
* * * * *
(e) Less than one-half-time training and rates for servicemembers.
Except as provided in paragraph (g) of this section, the monthly rate
for a veteran who is pursuing a course on a less than one-half-time
basis or the monthly rate for a servicemember who is pursuing a program
of education is the lesser of:
* * * * *
(g) Increase (``kicker'') in basic educational assistance rates
payable for service in the Selected Reserve. (1) The Secretary of the
military department concerned may increase the amount of basic
educational assistance payable under paragraph (b), (c), (d), (e), or
(f) of this section, as appropriate. The increase (``kicker'') is
payable to a veteran who has a skill or specialty in which there is a
critical shortage of personnel or for which it is difficult to recruit,
or, in the case of critical units, retain personnel, if the veteran:
(i) Establishes eligibility for educational assistance under
Sec. 21.7042(a) or Sec. 21.7045; and
(ii) Meets the criteria of Sec. 21.7540(a)(1) with respect to
service in the Selected Reserve.
(2) The Secretary of the military department concerned--
(i) Will, for such an increase (``kicker''), set an amount of the
increase (``kicker'') for full-time training, but the increase
(``kicker'') may not exceed $350 per month; and
(ii) May set the amount of the increase (``kicker'') payable, for a
veteran pursuing a program of education less than full time or pursuing
a program of apprenticeship or other on-job training, at an amount less
than the amount described in paragraph (g)(2)(i) of this section.
(Authority: 10 U.S.C. 16131(i)(2))
5. In Sec. 21.7137, paragraphs (e) and (f) are redesignated as
paragraphs (f) and
[[Page 55520]]
(g), respectively; paragraph (b) introductory text is revised; and a
new paragraph (e) is added, to read as follows:
Sec. 21.7137 Rates of payment of basic educational assistance for
individuals with remaining entitlement under 38 U.S.C. ch. 34.
* * * * *
(b) Less than one-half-time training. Except as provided in
paragraphs (d) and (e) of this section, the monthly rate for a veteran
who is pursuing a course on a less than one-half-time basis is the
lesser of:
* * * * *
(e) Increase (``kicker'') in basic educational assistance rates for
service in the Selected Reserve. (1) The Secretary of the military
department concerned may increase the amount of basic educational
assistance payable under paragraph (a), (b), or (d) of this section, as
appropriate. The increase (``kicker'') is payable to a veteran who has
a skill or specialty in which there is a critical shortage of personnel
or for which it is difficult to recruit, or, in the case of critical
units, retain personnel, if the veteran:
(i) Establishes eligibility for educational assistance under
Sec. 21.7044(a); and
(ii) Meets the criteria of Sec. 21.7540(a)(1) with respect to
service in the Selected Reserve.
(2) The Secretary of the military department concerned--
(i) Will, for such an increase, set the amount of the increase
(``kicker'') payable for full-time training, but the increase
(``kicker'') may not exceed $350 per month;
(ii) May set the amount of the ``kicker'' payable, for a veteran
pursuing a program of education less than full time or pursuing an
apprenticeship or other on-job training, at an amount less than the
amount described in paragraph (e)(2)(i) of this section.
(Authority: 10 U.S.C. 16131(i)(2))
* * * * *
6. In Sec. 21.7139, the introductory text is amended by removing
``of this part''; paragraphs (a), (g), and (h) are removed; paragraphs
(b), (c), (d), (e), (f), (i), and (j) are redesignated as paragraphs
(a), (b), (c), (d), (e), (f), and (g), respectively; newly redesingated
(g)(2) is redesingated as (g)(3); the authority citation for newly
redesignated paragraph (b) is amended by removing ``; Pub. L. 98-525'';
the authority citation for newly redesignated paragraph (c) is amended
by removing ``; Pub. L. 98-525''; newly redesignated paragraph
(d)(2)(iii) is amended by removing ``of this part''; the authority
citation for newly redesignated paragraph (d) is amended by removing
``; Pub. L. 98-525''; newly redesignated paragraph (e)(2)(ii) is
amended by removing ``of this part'' each time it appears and by
removing ``Sec. 21.7137(d)'', and adding, in its place,
``Sec. 21.7137(d) or (e)'', newly redesignated paragraph (e)(2)(iii) is
amended by removing ``Sec. 21.7136(c)'', and adding, in its place
``Sec. 21.7136(d), (f), or (g)''; newly redesignated paragraph
(e)(2)(iii) is amended by removing ``of this part'' each time it
appears; newly redesignated paragraph (e)(3)(iii) is amended by
removing ``of this part'' both times it appears; the authority citation
for newly redesignated paragraph (e) is amended by removing ``; Pub. L.
98-525''; newly redesignated paragraph (g)(3)(ii) is amended by
removing ``Sec. 21.4270(b)'' and adding, in its place,
``Sec. 21.4270(c)''; the section heading and newly redesignated
paragraph (g)(1) are revised, and a new paragraph (g)(2) is added, to
read as follows:
Sec. 21.7139 Conditions which result in reduced rates or no payment.
* * * * *
(g) Failure to work sufficient hours of apprenticeship and other
on-job training. (1) For any month in which an eligible veteran
pursuing an apprenticeship or other on-job training program fails to
complete 120 hours of training, VA will reduce proportionally--
(i) The rates specified in Secs. 21.7136(b)(2), (c)(2), (d)(3), and
(d)(4), and 21.7137(a)(2) and (d)(2); and
(ii) Any increase (``kicker'') set by the Secretary of the military
department concerned as described in Secs. 21.7136(g) and 21.7137(e).
(2) In making the computations required by paragraph (g)(1) of this
section, VA will round the number of hours worked to the nearest
multiple of eight.
* * * * *
Subpart L--Educational Assistance for Members of the Selected
Reserve
7. The authority citation for part 21, subpart L, continues to read
as follows.
Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), ch. 36, unless
otherwise noted.
8. In Sec. 21.7631, paragraph (h) is added after the authority
citation following paragraph (g), to read as follows:
Sec. 21.7631 Commencing dates.
* * * * *
(h) Increase (``kicker'') in amount payable. If a reservist is
entitled to an increase (``kicker'') in the monthly rate of educational
assistance because he or she has met the requirements of
Sec. 21.7636(b), the effective date of that increase (``kicker'') will
be the latest of the following dates:
(1) The commencing date of the reservist's award as determined by
paragraphs (a) through (g) of this section; or
(2) The first date on which the reservist is entitled to the
increase (``kicker'') as determined by the Secretary of the military
department concerned; or
(3) February 10, 1996.
(Authority: 10 U.S.C. 16131)
9. In Sec. 21.7635, paragraph (x) is redesignated as paragraph (y);
and a new paragraph (x) is added, to read as follows:
Sec. 21.7635 Discontinuance dates.
* * * * *
(x) Reduction following loss of increase (``kicker''). If a
reservist is entitled to an increase (``kicker'') in the monthly rate
of basic educational assistance as provided in Sec. 21.7636(b) and
loses that entitlement, the effective date for the reduction in the
monthly rate payable is the date, as determined by the Secretary of the
military department concerned, that the reservist is no longer entitled
to the increase (``kicker'').
(Authority: 10 U.S.C. 16131)
* * * * *
10. In Sec. 21.7636, paragraph (b) is redesignated as paragraph
(c); and a new paragraph (b) is added, to read as follows:
Sec. 21.7636 Rates of payment.
* * * * *
(b) Increase (``kicker'') in educational assistance rates. (1) The
Secretary of the military department concerned may increase the amount
of educational assistance stated in paragraph (a) of this section that
is payable to a reservist who has a skill or specialty in which there
is a critical shortage of personnel or for which it is difficult to
recruit, or, in the case of critical units, retain personnel.
(2) The Secretary of the military department concerned--
(i) Will set the amount of the increase (``kicker'') for full-time
training, but the increase (``kicker'') may not exceed $350 per month;
and
(ii) May set the amount of the increase (``kicker'') payable, for a
reservist pursuing a program of education less than full time or
pursuing an apprenticeship or other on-job training, at an amount less
than the amount
[[Page 55521]]
described in paragraph (b)(2)(i) of this section.
(Authority: 10 U.S.C. 16131(i)(1))
* * * * *
11. In Sec. 21.7639, paragraph (f)(2) is redesignated as paragraph
(f)(3); paragraph (c)(2)(ii), the authority citation for paragraph (c),
paragraph (f)(1), and the authority citation for paragraph (f) are
revised; and a new paragraph (f)(2) is added, to read as follows:
Sec. 21.7639 Conditions which result in reduced rates or no payment.
* * * * *
(c) * * *
(2) * * *
(ii) The monthly rate as stated in Sec. 21.7636(a) and any increase
payable under Sec. 21.7636(b).
* * * * *
(Authority: 10 U.S.C. 16131(i)(1), 16136(b); 38 U.S.C. 3482(g))
* * * * *
(f) Failure to work sufficient hours of apprenticeship and other
on-job training. (1) For any calendar month in which a reservist
pursuing an apprenticeship or other on-job training program fails to
complete 120 hours of training, VA will reduce proportionally--
(i) The rates specified in Sec. 21.7636(a)(2); and
(ii) Any increase set by the Secretary of the military department
concerned as described in Sec. 21.7636(b).
(2) In making the computations required by paragraph (f)(1) of this
section, VA will round the number of hours worked to the nearest
multiple of eight.
(Authority: 10 U.S.C. 2131(d)(2), 16131(i)(1); sec. 642 (b), (d),
Pub. L. 101-189, 103 Stat. 1456-1458)
* * * * *
[FR Doc. 97-28364 Filed 10-24-97; 8:45 am]
BILLING CODE 8320-01-P
