[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2402 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2402

     To amend title 38, United States Code, to enhance and improve 
educational assistance under the Montgomery GI Bill in order to enhance 
recruitment and retention of members of the Armed Forces, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 11, 2000

 Mr. Cleland (for himself, Mr. Levin, and Mr. Bingaman) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
     To amend title 38, United States Code, to enhance and improve 
educational assistance under the Montgomery GI Bill in order to enhance 
recruitment and retention of members of the Armed Forces, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Help Our Professionals Educationally 
(HOPE) Act of 2000''.

SEC. 2. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE BY CERTAIN 
              MEMBERS OF THE ARMED FORCES.

    (a) Authority To Transfer to Family Members.--(1) Subchapter II of 
chapter 30 of title 38, United States Code, is amended by adding at the 
end the following new section:
``Sec. 3020. Transfer of entitlement to basic educational assistance: 
              members of the Armed Forces
    ``(a)(1) Subject to the provisions of this section, the Secretary 
of each military department may, for the purpose of enhancing 
recruiting and retention and at such Secretary's sole discretion, 
permit an individual described in paragraph (2) who is entitled to 
basic educational assistance under this subchapter to elect to transfer 
such individual's entitlement to such assistance, in whole or in part, 
to the dependents specified in subsection (b).
    ``(2) An individual referred to in paragraph (1) is any individual 
who is a member of the Armed Forces at the time of the approval by the 
Secretary of the military department concerned of the individual's 
request to transfer entitlement to educational assistance under this 
section.
    ``(3) The Secretary of the military department concerned may not 
approve an individual's request to transfer entitlement to educational 
assistance under this section until the individual has completed six 
years of service in the Armed Forces.
    ``(4) Subject to the time limitation for use of entitlement under 
section 3031 of this title, an individual approved to transfer 
entitlement to educational assistance under this section may transfer 
such entitlement at any time after the approval of individual's request 
to transfer such entitlement without regard to whether the individual 
is a member of the Armed Forces when the transfer is executed.
    ``(b) An individual approved to transfer an entitlement to basic 
educational assistance under this section may transfer the individual's 
entitlement to such assistance as follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred to in 
        paragraphs (1) and (2).
    ``(c)(1) An individual transferring an entitlement to basic 
educational assistance under this section shall--
            ``(A) designate the dependent or dependents to whom such 
        entitlement is being transferred and the percentage of such 
        entitlement to be transferred to each such dependent; and
            ``(B) specify the period for which the transfer shall be 
        effective for each dependent designated under subparagraph (A).
    ``(2) The aggregate amount of the entitlement transferable by an 
individual under this section may not exceed the aggregate amount of 
the entitlement of such individual to basic educational assistance 
under this subchapter.
    ``(3) An individual transferring an entitlement under this section 
may modify or revoke the transfer at any time before the use of the 
transferred entitlement begins. An individual shall make the 
modification or revocation by submitting written notice of the action 
to the Secretary of the military department concerned.
    ``(d)(1) A dependent to whom entitlement to educational assistance 
is transferred under this section may not commence the use of the 
transferred entitlement until the completion by the individual making 
the transfer of 10 years of service in the Armed Forces.
    ``(2) The use of any entitlement transferred under this section 
shall be charged against the entitlement of the individual making the 
transfer at the rate of one month for each month of transferred 
entitlement that is used.
    ``(3) Except as provided in under subsection (c)(1)(B) and subject 
to paragraphs (4) and (5), a dependent to whom entitlement is 
transferred under this section is entitled to basic educational 
assistance under this subchapter in the same manner and at the same 
rate as the individual from whom the entitlement was transferred.
    ``(4) Notwithstanding section 3031 of this title, a child to whom 
entitlement is transferred under this section may not use any 
entitlement so transferred after attaining the age of 26 years.
    ``(5) The administrative provisions of this chapter (including the 
provisions set forth in section 3034(a)(1) of this title) shall apply 
to the use of entitlement transferred under this section, except that 
the dependent to whom the entitlement is transferred shall be treated 
as the eligible veteran for purposes of such provisions.
    ``(e) In the event of an overpayment of basic educational 
assistance with respect to a dependent to whom entitlement is 
transferred under this section, the dependent and the individual making 
the transfer shall be jointly and severally liable to the United States 
for the amount of the overpayment for purposes of section 3685 of this 
title.
    ``(f) The Secretary of a military department may approve transfers 
of entitlement to educational assistance under this section in a fiscal 
year only to the extent that appropriations for military personnel are 
available in the fiscal year for purposes of making transfers of 
funds under section 2006 of title 10 with respect to such transfers of 
entitlement.
    ``(g) The Secretary of Defense shall prescribe regulations for 
purposes of this section. Such regulations shall specify the manner and 
effect of an election to modify or revoke a transfer of entitlement 
under subsection (c)(3) and shall specify the manner of the 
applicability of the administrative provisions referred to in 
subsection (d)(5) to a dependent to whom entitlement is transferred 
under this section.
    ``(h)(1) Not later than January 31, 2002, and each year thereafter, 
each Secretary of a military department shall submit to the Committees 
on Armed Services of the Senate and House of Representatives a report 
on the transfers of entitlement under this section that were approved 
by such Secretary during the preceding year.
    ``(2) Each report shall set forth--
            ``(A) the number of transfers of entitlement under this 
        section that were approved by such Secretary during the 
        preceding year; or
            ``(B) if no transfers of entitlement under this section 
        were approved by such Secretary during that year, a 
        justification for such Secretary's decision not to approve any 
        such transfers of entitlement during that year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3019 the 
following new item:

``3020. Transfer of entitlement to basic educational assistance: 
                            members of the Armed Forces.''.
    (b) Treatment Under Department of Defense Education Benefits 
Fund.--Section 2006(b)(2) of title 10, United States Code, is amended 
by adding at the end the following:
                    ``(D) The present value of the future benefits 
                payable from the Fund as a result of transfers under 
                section 3020 of title 38 of entitlement to basic 
                educational assistance under chapter 30 of title 38.''
    (c) Plan for Implementation.--Not later than June 30, 2001, the 
Secretary of Defense shall submit to Congress a report describing the 
manner in which the Secretaries of the military departments propose to 
exercise the authority granted by section 3020 of title 38, United 
States Code, as added by subsection (a).

SEC. 3. PARTICIPATION OF ADDITIONAL MEMBERS OF THE ARMED FORCES IN 
              MONTGOMERY GI BILL PROGRAM.

    (a) Participation Authorized.--(1) Subchapter II of chapter 30 of 
title 38, United States Code, as amended by section 2(a) of this Act, 
is further amended by inserting after section 3018C the following new 
section:
``Sec. 3018D. Opportunity to enroll: certain VEAP participants; active 
              duty personnel not previously enrolled
    ``(a)(1) Notwithstanding any other provision of law and subject to 
the provisions of this section, the Secretary concerned may, for the 
purpose of enhancing recruiting and retention and at such Secretary's 
sole discretion, permit an individual described in subsection (b) to 
elect under subsection (c) to become entitled to basic educational 
assistance under this chapter.
    ``(2) The Secretary concerned may permit an individual to elect to 
become entitled to basic educational assistance under this section only 
if sufficient funds are available in accordance with this section for 
purposes of payments by the Secretary of Defense into the Department of 
Defense Education Benefits Fund under section 2006 of title 10 with 
respect to such election.
    ``(3) An individual who makes an election to become entitled to 
basic educational assistance under this section shall be entitled to 
basic educational assistance under this chapter.
    ``(b) An individual eligible to be permitted to make an election 
under this section is an individual who--
            ``(1) either--
                    ``(A)(i) is a participant on the date of the 
                enactment of this section in the educational benefits 
                program provided by chapter 32 of this title; or
                    ``(ii) disenrolled from participation in that 
                program before that date; or
                    ``(B) has made an election under section 3011(c)(1) 
                or 3012(d)(1) of this title not to receive educational 
                assistance under this chapter and has not withdrawn 
                that election under section 3018(a) of this title as of 
                that date;
            ``(2) is serving on active duty (excluding periods referred 
        to in section 3202(1)(C) of this title in the case of an 
        individual described in paragraph (1)(A)) on that date; and
            ``(3) before applying for benefits under this section, has 
        completed the requirements of a secondary school diploma (or 
        equivalency certificate) or has successfully completed the 
        equivalent of 12 semester hours in a program of education 
        leading to a standard college degree.
    ``(c) An individual permitted to make an election under this 
section to become entitled to basic educational assistance under this 
chapter shall make an irrevocable election to receive benefits under 
this section in lieu of benefits under chapter 32 of this title or 
withdraw the election made under section 3011(c)(1) or 3012(d)(1) of 
this title, as the case may be, pursuant to procedures which the 
Secretary of each military department shall provide in accordance with 
regulations prescribed by the Secretary of Defense for the purpose of 
carrying out this section or which the Secretary of Transportation 
shall provide for such purpose with respect to the Coast Guard when it 
is not operating as a service in the Navy.
    ``(d)(1) Except as provided in paragraphs (2) and (3), in the case 
of an individual who makes an election under this section to become 
entitled to basic educational assistance under this chapter, the basic 
pay of the individual shall be reduced (in a manner determined by the 
Secretary of Defense) until the total amount by which such basic pay is 
reduced is--
            ``(A) $1,200, in the case of an individual described in 
        subsection (b)(1)(A); or
            ``(B) $1,500, in the case of an individual described in 
        subsection (b)(1)(B).
    ``(2) In the case of an individual previously enrolled in the 
educational benefits program provided by chapter 32 of this title, the 
total amount of the reduction in basic pay otherwise required by 
paragraph (1) shall be reduced by an amount equal to so much of the 
unused contributions made by the individual to the Post-Vietnam Era 
Veterans Education Account under section 3222(a) of this title as do 
not exceed $1,200.
    ``(3) An individual may at any time pay the Secretary concerned an 
amount equal to the difference between the total of the reductions 
otherwise required with respect to the individual under this subsection 
and the total amount of the reductions made with respect to the 
individual under this subsection as of the time of the payment.
    ``(4) The Secretary concerned shall transfer to the Secretary of 
Defense amounts retained with respect to individuals under paragraph 
(1) and amounts, if any, paid by individuals under paragraph (3).
    ``(e)(1) An individual who is enrolled in the educational benefits 
program provided by chapter 32 of this title and who makes the election 
described in subsection (c) shall be disenrolled from the program as of 
the date of such election.
    ``(2) For each individual who is disenrolled from such program, the 
Secretary shall transfer to Secretary of Defense any amounts in the 
Post-Vietnam Era Veterans Education Account that are attributable to 
the individual, including amounts in the Account that are attributable 
to the individual by reason of contributions made by the Secretary of 
Defense under section 3222(c) of this title.
    ``(f) With respect to each individual electing under this section 
to become entitled to basic educational assistance under this chapter, 
the Secretary concerned shall transfer to the Secretary of Defense, 
from appropriations for military personnel that are available for 
transfer, an amount equal to the difference between--
            ``(1) the amount required to be paid by the Secretary of 
        Defense into the Department of Defense Education Benefits Fund 
        with respect to such election; and
            ``(2) the aggregate amount transferred to the Secretary of 
        Defense with respect to the individual under subsections (d) 
        and (e).
    ``(g) The Secretary of Defense shall utilize amounts transferred to 
such Secretary under this section for purposes of payments into the 
Department of Defense Education Benefits Fund with respect to the 
provision of benefits under this chapter for individuals making 
elections under this section.
    ``(h)(1) The requirements of sections 3011(a)(3) and 3012(a)(3) of 
this title shall apply to an individual who makes an election under 
this section, except that the completion of service referred to in such 
section shall be the completion of the period of active duty being 
served by the individual on the date of the enactment of this section.
    ``(2) The procedures provided in regulations referred to in 
subsection (c) shall provide for notice of the requirements of 
subparagraphs (B), (C), and (D) of section 3011(a)(3) of this title and 
of subparagraphs (B), (C), and (D) of section 3012(a)(3) of this title. 
Receipt of such notice shall be acknowledged in writing.
    ``(i)(1) Not later than January 31, 2002, and each year thereafter, 
each Secretary concerned shall submit to the Committees on Armed 
Services of the Senate and House of Representatives a report on the 
members of the Armed Forces under the jurisdiction of such Secretary 
who were permitted to elect to become entitled to basic educational 
assistance under this section during the preceding year.
    ``(2) Each report shall set forth--
            ``(A) the number of members who were permitted to elect to 
        become entitled to basic educational assistance under this 
        section during the preceding year;
            ``(B) the number of members so permitted who elected to 
        become entitled to basic educational assistance during that 
        year; and
            ``(C) if no members were so permitted during that year, a 
        justification for such Secretary's decision not to permit any 
        members to elect to become so entitled during that year.''.
    (2) The table of sections at the beginning of chapter 30 of that 
title, as amended by section 2(a) of this Act, is further amended by 
inserting after the item relating to section 3018C the following new 
item:

``3018D. Opportunity to enroll: certain VEAP participants; active duty 
                            personnel not previously enrolled.''.
    (b) Conforming Amendment.--Section 3015(f) of that title is amended 
by striking ``or 3018C'' and inserting ``3018C, or 3018D''.
    (c) Treatment Under Department of Defense Education Benefits 
Fund.--Section 2006(b)(2) of title 10, United States Code, as amended 
by section 2(b) of this Act, is further amended by adding at the end 
the following:
                    ``(E) The present value of the future benefits 
                payable from the Fund as a result of elections under 
                section 3018D of title 38 of entitlement to basic 
                educational assistance under chapter 30 of title 38.''.
    (d) Plans for Implementation.--(1) Not later than June 30, 2001, 
the Secretary of Defense shall submit to Congress a report describing 
the manner in which the Secretaries of the military departments propose 
to exercise the authority granted by section 3018A of title 38, United 
States Code, as added by subsection (a).
    (2) Not later than June 30, 2001, the Secretary of Transportation 
shall submit to Congress a report describing the manner in which that 
Secretary proposes to exercise the authority granted by such section 
3018A with respect to members of the Coast Guard.

SEC. 4. MODIFICATION OF AUTHORITY TO PAY TUITION FOR OFF-DUTY TRAINING 
              AND EDUCATION.

    (a) Authority To Pay All Charges.--Section 2007 of title 10, United 
States Code, is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following new subsections:
    ``(a) Subject to subsection (b), the Secretary of a military 
department may pay all or a portion of the charges of an educational 
institution for the tuition or expenses of a member of the armed forces 
enrolled in such educational institution for education or training 
during the member's off-duty periods.
    ``(b) In the case of a commissioned officer on active duty, the 
Secretary of the military department concerned may not pay charges 
under subsection (a) unless the officer agrees to remain on active duty 
for a period of at least two years after the completion of the training 
or education for which the charges are paid.''; and
            (2) in subsection (d)--
                    (A) by striking ``(within the limits set forth in 
                subsection (a))'' in the matter preceding paragraph 
                (1); and
                    (B) in paragraph (3), by striking ``subsection 
                (a)(3)'' and inserting ``subsection (b)''.
    (b) Use of Entitlement to Assistance Under Montgomery GI Bill for 
Payment of Charges.--(1) That section is further amended by adding at 
the end the following new subsection:
    ``(e)(1) A member of the armed forces who is entitled to basic 
educational assistance under chapter 30 of title 38 may use such 
entitlement for purposes of paying any portion of the charges described 
in subsection (a) or (c) that are not paid for by the Secretary of the 
military department concerned under such subsection.
    ``(2) The use of entitlement under paragraph (1) shall be governed 
by the provisions of section 3014(b) of title 38.''.
    (2) Section 3014 of title 38, United States Code, is amended--
            (A) by inserting ``(a)'' before ``The Secretary''; and
            (B) by adding at the end the following new subsection:
    ``(b)(1) In the case of an individual entitled to basic educational 
assistance who is pursuing education or training described in 
subsection (a) or (c) of section 2007 of title 10, the Secretary shall, 
at the election of the individual, pay the individual a basic 
educational assistance allowance to meet all or a portion of the 
charges of the educational institution for the education or training 
that are not paid by the Secretary of the military department concerned 
under such subsection.
    ``(2)(A) The amount of the basic educational assistance allowance 
payable to an individual under this subsection for a month shall be the 
amount of the basic educational assistance allowance to which the 
individual would be entitled for the month under section 3015 of this 
title (without regard to subsection (g) of that section) were payment 
made under that section instead of under this subsection.
    ``(B) The maximum number of months for which an individual may be 
paid a basic educational assistance allowance under paragraph (1) is 
36.''.
    (3) Section 3015 of title 38, United States Code, is amended--
            (A) by striking ``subsection (g)'' each place it appears in 
        subsections (a) and (b);
            (B) by redesignating subsection (g) as subsection (h); and
            (C) by inserting after subsection (f) the following new 
        subsection (g):
    ``(g) In the case of an individual who has been paid a basic 
educational assistance allowance under section 3014(b) of this title, 
the rate of the basic educational assistance allowance applicable to 
the individual under this section shall be the rate otherwise 
applicable to the individual under this section reduced by an amount 
equal to--
            ``(1) the aggregate amount of such allowances paid the 
        individual under such section 3014(b); divided by
            ``(2) 36.''.

SEC. 5. MODIFICATION OF TIME FOR USE BY CERTAIN MEMBERS OF SELECTED 
              RESERVE OF ENTITLEMENT TO CERTAIN EDUCATIONAL ASSISTANCE.

    Section 16133(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(5)(A) In the case of a person who continues to serve as member 
of the Selected Reserve as of the end of the 10-year period applicable 
to the person under subsection (a), as extended, if at all, under 
paragraph (4), the period during which the person may use the person's 
entitlement shall expire at the end of the 5-year period beginning on 
the date the person is separated from the Selected Reserve.
    ``(B) The provisions of paragraph (4) shall apply with respect to 
any period of active duty of a person referred to in subparagraph (A) 
during the 5-year period referred to in that subparagraph.''.
                                 <all>