[Federal Register Volume 63, Number 166 (Thursday, August 27, 1998)]
[Rules and Regulations]
[Pages 45717-45719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22856]
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DEPARTMENT OF DEFENSE
DEPARTMENT OF TRANSPORTATION
Coast Guard
DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 21
RIN 2900-AH88
Election of Education Benefits
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 Department of Veterans Affairs (VA)
educational assistance and educational benefits regulations relating to
certain elections between benefits. VA has provided by regulation that
after a veteran seeks to make an election to have service in the
Selected Reserve credited toward payment under the Montgomery GI Bill--
Selected Reserve (MGIB-SR) program or under the Montgomery GI Bill--
Active Duty (MGIB-AD) program, the election will take effect when the
individual has negotiated a check issued under the program she or he
has elected. In order to adapt the regulations to the new system of
electronic transfers, these election provisions are changed to make the
election effective either upon negotiation of a check or electronic
receipt of education benefits. VA has provided by regulation that an
election to receive benefits under Survivors' and Dependents'
Educational Assistance (DEA) for a program of education rather than
pension, compensation, or Dependency and Indemnity Compensation (DIC)
will take effect when the individual has commenced a program of
education and negotiated a check issued under the program she or he has
elected. In order to adapt the regulations to the new system of
electronic transfers and to ensure that decisions are made with
knowledge, these election provisions are changed to require a written
election to be submitted and to make the election effective either upon
negotiation of a check or electronic receipt of education benefits.
Nonsubstantive changes are also made for purposes of clarity and to
reflect current statutory codification and authority. This final rule
also involves collections of information.
EFFECTIVE DATE: September 28, 1998.
FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Education
Adviser, Education Service (225C), Veterans Benefits Administration,
Department of Veterans Affairs, (202) 273-7187.
SUPPLEMENTARY INFORMATION: In a document published in the Federal
Register on November 25, 1997 (62 FR 62736), it was proposed to amend
the ``SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE UNDER 38 U.S.C.
CHAPTER 35'' regulations, the ``ALL VOLUNTEER FORCE EDUCATIONAL
ASSISTANCE PROGRAM (MONTGOMERY GI BILL--ACTIVE DUTY)'' regulations, and
the ``EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE SELECTED RESERVE''
regulations as set forth in the SUMMARY portion of this document. These
regulations are set forth at 38 CFR Part 21, Subparts C, K, and L.
Interested persons were given 60 days to submit comments. No
comments were received. Based on the rationale set forth in the
proposed rule, we are adopting the provisions of the proposed rule as a
final rule.
The Department of Defense (DOD), the Department of Transportation
(Coast Guard), and VA are jointly issuing this final rule insofar as it
relates to the MGIB-SR program. This program is funded by DOD and the
Coast Guard, and is administered by VA. The remainder of this final
rule is issued solely by VA.
Paperwork Reduction Act of 1995
Information collection and recordkeeping requirements associated
with this final rule concerning Sec. 21.3023 have been approved by the
Office of Management and Budget (OMB) under the provisions of the
Paperwork Reduction Act (44 U.S.C. 3501-3520) and have been assigned
OMB control number 2900-0595. The final rule at Sec. 21.3023 requires
that an election to receive DEA rather than DIC must be made to VA in
writing.
Furthermore, information collection and recordkeeping requirements
associated with this final rule concerning Secs. 21.7042 and 21.7540
have been approved by OMB under the provisions of the Paperwork
Reduction Act (44 U.S.C. 3501-3520) and have been assigned OMB control
number 2900-0594. The final rule at Secs. 21.7042 and 21.7540 requires
that a veteran must choose to apply certain Selected Reserve service
either to MGIB--SR or MGIB.
OMB assigns control numbers to collections of information it
approves. VA may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The valid OMB control number
assigned to each collection of information in this final rule is
displayed at the end of each affected section of the regulations.
Regulatory Flexibility Act
The signers of this document hereby certify that this final rule
does not have 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 directly affects only individuals and
does not directly affect small entities. Pursuant to 5 U.S.C. 605(b),
the final rule, therefore, is exempt from the initial and final
regulatory flexibility analyses requirements of Secs. 603 and 604.
The Catalog of Federal Domestic Assistance numbers for programs
affected by the final rule are 64.117 and 64.124. The final rule also
affects the Montgomery GI Bill--Selected Reserve for which there is 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, Conflicts of interests, Defense
Department, Education, Educational institutions, 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, Veterans, Vocational education, Vocational
rehabilitation.
[[Page 45718]]
Approved: May 19, 1998.
Togo D. West, Jr.,
Secretary of Veterans Affairs.
Approved: July 15, 1998.
Normand G. Lezy,
Lieutenant General, USAF, Deputy Assistant Secretary (Military
Personnel Policy), Department of Defense.
Approved: July 28, 1998.
T. J. Barrett,
RADM, USCG, Acting Assistant Commandant for Human Resources.
For the reasons set out in the preamble, 38 CFR part 21 (subparts
C, K, and L) is amended as set forth below.
PART 21--VOCATIONAL REHABILITATION AND EDUCATION
Subpart C--Survivors and Dependents Educational Assistance Under 38
U.S.C. Chapter 35
1. The authority citation for part 21, subpart C continues to read
as follows:
Authority: 38 U.S.C. 501(a), 512, 3500-3566, unless otherwise
noted.
2. In Sec. 21.3023, paragraph (c)(3) is amended by removing
``educational assistance'' and adding, in its place, ``education under
DEA''; the section heading, paragraph (c) introductory text, and
paragraph (c)(1) are revised; a parenthetical is added at the end of
the section, and an authority citation for the section is added, to
read as follows:
Sec. 21.3023 Nonduplication; pension, compensation, and dependency and
indemnity compensation.
* * * * *
(c) Child; election. An election by a child under this section must
be submitted to VA in writing.
(1) Except as provided in paragraph (c)(2) of this section, an
election to receive Survivors' and Dependents' Educational Assistance
(DEA) is final when the eligible child commences a program of education
under DEA (38 U.S.C. chapter 35). Commencement of a program of
education under DEA will be deemed to have occurred for VA purposes on
the date the first payment of DEA educational assistance is made, as
evidenced by negotiation of the first check or receipt of the first
payment by electronic funds transfer.
* * * * *
(The information collection requirements in this section have been
approved by the Office of Management and Budget under control number
2900-0595)
(Authority: 38 U.S.C. 3562)
Subpart K--All Volunteer Force Educational Assistance Program
(Montgomery GI Bill--Active Duty)
3. 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.
4. In Sec. 21.7042, the section heading and paragraphs (d)(2) and
(d)(3) are revised, paragraph (d)(4) and its authority citation are
added, and a parenthetical is added at the end of the section, to read
as follows:
Sec. 21.7042 Eligibility for basic educational assistance.
* * * * *
(d) * * *
(2) An individual must elect, in writing, whether he or she wishes
service in the Selected Reserve to be credited towards establishing
eligibility under 38 U.S.C. chapter 30 or under 10 U.S.C. chapter 1606
when:
(i) The individual:
(A) Is a veteran who has established eligibility for basic
educational assistance through meeting the provisions of paragraph (b)
of this section; and
(B) Also is a reservist who has established eligibility for
benefits under 10 U.S.C. chapter 1606 through meeting the requirements
of Sec. 21.7540; or
(ii) The individual is a member of the National Guard or Air
National Guard who has established eligibility for basic educational
assistance under 38 U.S.C. chapter 30 through activation under a
provision of law other than 32 U.S.C. 316, 502, 503, 504, or 505.
(3) An election under this paragraph (d) to have Selected Reserve
service credited towards eligibility for payment of educational
assistance under 38 U.S.C. chapter 30 or under 10 U.S.C. chapter 1606
is irrevocable when the veteran either negotiates the first check or
receives the first payment by electronic funds transfer of the
educational assistance elected.
(4) If a veteran is eligible to receive educational assistance
under both 38 U.S.C. chapter 30 and 10 U.S.C. chapter 1606, he or she
may receive educational assistance alternately or consecutively under
each of these chapters to the extent that the educational assistance is
based on service not irrevocably credited to one or the other chapter
as provided in paragraphs (d)(1) through (d)(3) of this section.
(Authority: 10 U.S.C. 16132, 38 U.S.C. 3033(c))
* * * * *
(The information requirements in this section have been approved by
the Office of Management and Budget under control number 2900-0594)
Subpart L--Educational Assistance for Members of the Selected
Reserve
5. The authority citation for part 21, subpart L is revised to read
as follows:
Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501, unless otherwise
noted.
6. In Sec. 21.7540, paragraph (c) and the authority citation for
paragraph (d) are revised, and a parenthetical is added at the end of
the section, to read as follows:
Sec. 21.7540 Eligibility for educational assistance.
* * * * *
(c) Limitations on establishing eligibility. (1) An individual must
elect in writing whether he or she wishes service in the Selected
Reserve to be credited towards establishing eligibility under 38 U.S.C.
chapter 30 or under 10 U.S.C. chapter 1606 when:
(i) The individual is a reservist who is eligible for basic
educational assistance provided under 38 U.S.C. 3012, and has
established eligibility to that assistance partially through service in
the Selected Reserve; or
(ii) The individual is a member of the National Guard or Air
National Guard who has established eligibility for basic educational
assistance provided under 38 U.S.C. 3012 through activation under a
provision of law other than 32 U.S.C. 316, 502, 503, 504, or 505
followed by service in the Selected Reserve.
(2) An election under this paragraph (c) to have Selected Reserve
service credited towards eligibility for payment of educational
assistance under 38 U.S.C. chapter 30 or under 10 U.S.C. chapter 1606
is irrevocable when the reservist either negotiates the first check or
receives the first payment by electronic funds transfer of the
educational assistance elected.
(3) If a reservist is eligible to receive educational assistance
under both 38 U.S.C. chapter 30 and 10 U.S.C. chapter 1606, he or she
may receive educational assistance alternately or consecutively under
each of these chapters to the extent that the educational assistance is
based on service not irrevocably credited to one or the other chapter
as provided in paragraphs (c)(1) and (c)(2) of this section.
(Authority: 10 U.S.C. 16132; 38 U.S.C. 3033(c))
* * * * *
(d) * * *
(Authority: 10 U.S.C. 16132(d), 16134)
(The information collection requirements in this section have been
approved by the Office
[[Page 45719]]
of Management and Budget under control number 2900-0594)
[FR Doc. 98-22856 Filed 8-26-98; 8:45 am]
BILLING CODE 8320-01-P
