109 HR 3625 IH: Bartlett Montgomery GI Bill Act
U.S. House of Representatives
2005-07-29
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the Bartlett Montgomery GI Bill Act
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents
Title I—Active Duty program
Sec. 101. Transfer of entitlement to basic educational assistance under the Montgomery GI Bill
Sec. 102. Application of annual adjustment to rates of educational assistance based on average costs of higher learning
Sec. 103. Additional opportunity for certain VEAP participants to enroll in basic educational assistance under Montgomery GI Bill
Sec. 104. Reimbursement of reductions of basic pay
Title II—Selected Reserve
Sec. 201. Transfer of entitlement to educational assistance under the Reserve Montgomery GI Bill
Sec. 202. Credit for cumulative active duty service in the Selected Reserve
Sec. 203. Increase in rates of educational assistance under the Reserve Montgomery GI Bill
Title III—Survivors' and dependents' educational assistance
Sec. 301. Application of annual adjustment to rates of educational assistance based on average costs of higher learning
<enum>I</enum><header>Active Duty program</header>
<section id="H5F5D8E82AFA941E1AA4DA0DBA319D775"><enum>101.</enum><header>Transfer of entitlement to basic educational assistance under the Montgomery GI Bill</header>
<subsection id="H05CD059D4C89420C98AA4840A55D396D"><enum>(a)</enum><header>All-volunteer force educational assistance program</header>
<paragraph id="HE18206221AB24FE8AF22C600E96D3E01" display-inline="yes-display-inline"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/38/3020">Section 3020</external-xref> of title 38, United States Code, is amended to read as follows:</text>
<quoted-block style="USC" id="H16CD0CF185F6460FBC8986FE345845C6" display-inline="no-display-inline">
<section id="H639C0C7706B346FBAC9D3E673E79ED11"><enum>3020.</enum><header>Transfer of entitlement to basic Educational assistance</header>
<subsection id="HAC9031C6F1FA4A7F8EE4007138FCB100"><enum>(a)</enum><header>Election to transfer entitlement</header>
<paragraph id="H4CF8C992F9684CBFA7F6C5DD38045363" display-inline="yes-display-inline"><enum>(1)</enum><text>An individual described in subsection (b) who is entitled to basic educational assistance under this subchapter may elect to transfer to one or more of the dependents specified in subsection (c) a portion of such individual’s entitlement to such assistance.</text></paragraph>
<paragraph id="H3FDEF98FE96945C6917F6D4381332241" indent="up1"><enum>(2)</enum><text>An individual transferring entitlement under this section shall submit written notice to the Secretary concerned not later than the expiration date of the period described in <external-xref legal-doc="usc" parsable-cite="usc/38/3031">section 3031</external-xref> of this title that is applicable to such individual.</text></paragraph></subsection>
<subsection id="HB829057E18C34A68B02F11A7DDB5B31D"><enum>(b)</enum><header>Eligible individuals</header><text display-inline="yes-display-inline">An individual referred to in subsection (a) is any member of the Armed Forces who, at the time of the approval by the Secretary concerned of the member's request to transfer entitlement to basic educational assistance under this section—</text>
<paragraph id="H3F2E303FA6C64604B988038D10478F92"><enum>(1)</enum><text display-inline="yes-display-inline">has completed six years of service in the Armed Forces; and</text></paragraph>
<paragraph id="H066E12BEE02C45BD8B9387023CB32FF7"><enum>(2)</enum><text display-inline="yes-display-inline">enters into an agreement to serve at least four more years as a member of the Armed Forces. </text></paragraph></subsection>
<subsection id="H3BA6F18081D34CBCACD68562722C3E77"><enum>(c)</enum><header>Eligible dependents</header><text>An individual may transfer entitlement under this section as follows:</text>
<paragraph id="H3135B470A13E48BB883FA223009BECC2"><enum>(1)</enum><text>To the individual’s spouse.</text></paragraph>
<paragraph id="H498FE2F4259D414F99CE349D75E1DF00"><enum>(2)</enum><text>To one or more of the individual’s children.</text></paragraph>
<paragraph id="HB924C9400D1F44E2B88B75477CBC486C"><enum>(3)</enum><text>To a combination of the individuals referred to in paragraphs (1) and (2).</text></paragraph></subsection>
<subsection id="HB329FFA051E14F7C965320DADF35129D"><enum>(d)</enum><header>Designation of transferee</header><text>An individual transferring entitlement under this section shall—</text>
<paragraph id="H7343FFA1072A4F109238C9AA9FB9FC89"><enum>(1)</enum><text>designate the dependent or dependents to whom such entitlement is being transferred;</text></paragraph>
<paragraph id="H60FD76669F4C483C943B17456DB8B1F3"><enum>(2)</enum><text>designate the number of months of such entitlement to be transferred to each such dependent; and</text></paragraph>
<paragraph id="HC150D0B32B0D4709A5E027900AE3773"><enum>(3)</enum><text>specify the period for which the transfer shall be effective for each such dependent.</text></paragraph></subsection>
<subsection id="H120D0AAD54CA4B88005DAE1993627DC9"><enum>(e)</enum><header>Revocation and modification</header><text>An individual transferring entitlement under this section may modify or revoke at any time the transfer of any unused portion of the entitlement so transferred. The modification or revocation of the transfer of entitlement under this subsection shall be made by the submittal of written notice of the action to both the Secretary concerned and the Secretary of Veterans Affairs.</text></subsection>
<subsection id="HFA7650D1EBAF416A9600D0C1669EE9E"><enum>(f)</enum><header>Commencement of use</header><text>If the dependent to whom entitlement is transferred under this section is a child, the use of the transferred entitlement may not commence until the child—</text>
<paragraph id="HDD24C9E4E23149B79DF4149E7551C4F1"><enum>(1)</enum><text>completes the requirements of a secondary school diploma (or equivalency certificate); or</text></paragraph>
<paragraph id="H6FB744C3D85246279F21B0BC48E1B158"><enum>(2)</enum><text>attains 18 years of age.</text></paragraph></subsection>
<subsection id="HF4C2D49A1F1C45D699E145EB089B684F"><enum>(g)</enum><header>Time limitation for use of eligibility and entitlement</header><text>Notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/38/3031">section 3031</external-xref> of this title, and subject to subsection (d)(3), a dependent to whom entitlement is transferred under this section may use such entitlement not later than the expiration date of a 15-year period beginning on the commencement date of the period described in <external-xref legal-doc="usc" parsable-cite="usc/38/3031">section 3031</external-xref> of this title that is applicable to the individual who transferred such entitlement to the dependent.</text></subsection>
<subsection id="H45387181233742E4967E18A5F630B724"><enum>(h)</enum><header>Additional administrative matters</header>
<paragraph display-inline="yes-display-inline" id="H5FC436C67FEB4597BA27B66B51F9AB22"><enum>(1)</enum><text>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.</text></paragraph>
<paragraph indent="up1" id="HABFCEAE0ECC54B929720811473D44729"><enum>(2)</enum><text>Except as provided under paragraphs (2) and (3) of subsection (d) and subsection (g), and subject to paragraph (5), a dependent to whom entitlement is transferred under this section is entitled to basic educational assistance under this subchapter in the same manner as the individual from whom entitlement was transferred.</text></paragraph>
<paragraph indent="up1" id="H1476B8C917A24BEE95054C86D53417D9"><enum>(3)</enum>
<subparagraph id="H2699B5E85CC7440C99EE16FC59A368DF" display-inline="yes-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">Subject to subparagraph (B), the monthly rate of educational assistance payable to a dependent to whom entitlement is transferred under this section shall be the monthly amount payable under <external-xref legal-doc="usc" parsable-cite="usc/38/3015">sections 3015</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/38/3022">3022</external-xref> of this title to the individual making the transfer.</text> </subparagraph>
<subparagraph indent="up1" id="HB44936CDF7214631A04F254DCD323535"><enum>(B)</enum><text>The monthly rate of assistance payable to a dependent under subparagraph (A) shall be subject to the provisions of <external-xref legal-doc="usc" parsable-cite="usc/38/3032">section 3032</external-xref> of this title, except that the provisions of subsection (a)(1) of that section shall not apply even if the individual making the transfer to the dependent under this section is on active duty during all or any part of enrollment period of the dependent in which such entitlement is used.</text></subparagraph></paragraph>
<paragraph indent="up1" id="H18BC45E5E7C14DE4BD014EC614993DC2"><enum>(4)</enum><text>The death of an individual transferring entitlement under this section shall not affect the use of the transferred entitlement by the dependent to whom entitlement is transferred.</text></paragraph>
<paragraph indent="up1" id="H96B7B0764AF54BD6AF201EE132C569E"><enum>(5)</enum><text>Notwithstanding subsection (g) and <external-xref legal-doc="usc" parsable-cite="usc/38/3031">section 3031</external-xref> 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.</text></paragraph>
<paragraph indent="up1" id="H97DCB902626F498A94F44CC262800EB"><enum>(6)</enum><text>Except as provided in subsection (f), the purposes for which a dependent to whom entitlement is transferred under this section may use such entitlement shall include the pursuit and completion of the requirements of a secondary school diploma (or equivalency certificate).</text></paragraph></subsection>
<subsection id="HA41D34CAF41A4A99A149359DCCB7C232"><enum>(i)</enum><header>Overpayment</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/38/3685">section 3685</external-xref> of this title.</text></subsection>
<subsection id="H86BE0BC47CC0494C9E5E084813A3BBCA"><enum>(j)</enum><header>Authority for certain individuals who opted out of educational assistance to transfer entitlement</header>
<paragraph id="HA2051B08F621409488B1B9ADBD58E91" display-inline="yes-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">Subject to the succeeding provisions of this subsection, a specified individual may elect to transfer to one or more of the dependents specified in subsection (c) such individual’s entitlement to such assistance in the same manner, and under the same terms and conditions, that apply to an individual referred to in subsection (a).</text></paragraph>
<paragraph id="H8EC92B7F63A64DCAA764E2A6A1A6851" indent="up1"><enum>(2)</enum><text>In this subsection, the term <quote>specified individual</quote> means an individual—</text>
<subparagraph id="H3EA1E80EF74E4C0EB2AE1EAA874B4715"><enum>(A)</enum><text display-inline="yes-display-inline">who made an election under <external-xref legal-doc="usc" parsable-cite="usc/38/3011">section 3011(c)(1)</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/38/3012">3012(d)(1)</external-xref> of this title, as the case may be;</text></subparagraph>
<subparagraph id="HE7C66459E06A4ADEA55BA6F58FA7FCD8"><enum>(B)</enum><text display-inline="yes-display-inline">who withdraws such election (in a form and manner determined by the Secretary concerned) not later than one year after the date of the enactment of the Bartlett Montgomery GI Bill Act;</text></subparagraph>
<subparagraph id="H1790DADBDF0F4A019794E571603774EB"><enum>(C)</enum><text>whose conditional delimiting period (as described in paragraph (3)) has not expired; and</text></subparagraph>
<subparagraph id="H0BB4386871564380BBCD4FB1CF94DBCC"><enum>(D)</enum><text>from whom the Secretary has reduced basic pay or collected payment as provided in paragraph (4).</text></subparagraph></paragraph>
<paragraph id="HB2FBDCCFD7284A3694A8F00714530866" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">The conditional delimiting period referred to in paragraph (2)(C) is the period described in <external-xref legal-doc="usc" parsable-cite="usc/38/3031">section 3031</external-xref> of this title that would have been applicable to such individual but for the election made by the individual under <external-xref legal-doc="usc" parsable-cite="usc/38/3011">section 3011(c)(1)</external-xref> or <external-xref legal-doc="usc" parsable-cite="usc/38/3012">3012(d)(1)</external-xref> of this title, as the case may be.</text></paragraph>
<paragraph id="HC6B7E6D66E19457D9F9DDBAEB00D085" indent="up1"><enum>(4)</enum>
<subparagraph id="H8FA9CCA761B04B9F928C004C12BC35A7" display-inline="yes-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">Subject to subparagraph (B), with respect to a specified individual who withdraws an election under paragraph (2)(B) to transfer entitlement to basic educational assistance under this subchapter, the basic pay of the specified individual shall be reduced (in a manner determined by the Secretary concerned) until the total amount by which such basic pay is reduced is $1,200.</text></subparagraph>
<subparagraph id="HD1AB21AA02184B15BF50EBCA5E10C2C8" indent="up1"><enum>(B)</enum><text>To the extent that basic pay is not reduced under subparagraph (A) before the specified individual's discharge or release from active duty, at the election of the specified individual—</text>
<clause id="H1F8287EF73EF4102996BA857B735D282"><enum>(i)</enum><text>the Secretary concerned shall collect from the specified individual; or</text></clause>
<clause id="HF3DEC7619B7B4962B810F4E723001350"><enum>(ii)</enum><text display-inline="yes-display-inline">the Secretary concerned shall reduce the retired or retainer pay of the specified individual by,</text></clause><continuation-text continuation-text-level="subparagraph">an amount equal to the difference between $1,200 and the total amount of reductions under subparagraph (A), which shall be paid into the Treasury of the United States as miscellaneous receipts.</continuation-text></subparagraph></paragraph>
<paragraph id="HDB25472CC5444166A9AA11A365D133E1" indent="up1"><enum>(5)</enum><text>A specified individual may only transfer, and may not use, entitlement under this chapter.</text></paragraph>
<paragraph id="H5D0505BCD7524D359900E30059692CC4" indent="up1"><enum>(6)</enum><text>In carrying out this subsection—</text>
<subparagraph id="HF5484044283B49768400304C1C1C7141"><enum>(A)</enum><text>the reference in subsection (a) to <quote>not later than the expiration date of the period described in <external-xref legal-doc="usc" parsable-cite="usc/38/3031">section 3031</external-xref> of this title</quote> is deemed to be a reference to <quote>during the one year period beginning on the date of the enactment of the Bartlett Montgomery GI Bill Act</quote>; and </text></subparagraph>
<subparagraph id="HF5B81A53886544C18322A25F95EFCEF7"><enum>(B)</enum><text display-inline="yes-display-inline">the reference in subsection (f) to <quote>commencement date of the period described in section 3031 of tis title</quote> is deemed to be a reference to the <quote>commencement date of the conditional delimiting period under subsection (i)(3)</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="H2802A856671F4EACA8C49BBB5946698D"><enum>(k)</enum><header>Regulations</header><text>The Secretaries concerned shall prescribe regulations for purposes of this section.</text></subsection>
<subsection id="H1A1DFB6C621B4CF1B8F6BC14A79BD61C"><enum>(l)</enum><header>Annual report</header><text>Not later than January 31 each year (beginning in 2007), the Secretary of Defense, in consultation with the other Secretaries concerned, shall submit to the Committees on Armed Services and the Committees on Veterans' Affairs of the Senate and House of Representatives a report on the number of individuals transferring entitlement to educational assistance under this section during the preceding fiscal year.</text></subsection>
<subsection id="H5D8D342D1AC04FCBAE808F4FA7D7F4D3"><enum>(m)</enum><header>Secretary concerned defined</header><text>Notwithstanding section 101(25), in this section the term <term>Secretary concerned</term> means—</text>
<paragraph id="H9536788A4B65434D8D4830607878D6A1"><enum>(1)</enum><text>the Secretary of the Army with respect to matters concerning the Army;</text></paragraph>
<paragraph id="HBE42A3DE1E6D46798D04F2991CB9E283"><enum>(2)</enum><text>the Secretary of the Navy with respect to matters concerning the Navy or the Marine Corps;</text></paragraph>
<paragraph id="H76C10A7ABB7E42C79D4B0383E9FC6941"><enum>(3)</enum><text>the Secretary of the Air Force with respect to matters concerning the Air Force; and</text></paragraph>
<paragraph id="HAEE4E8F59A3340CAAB3D137BEC5EE2F"><enum>(4)</enum><text>the Secretary of Defense with respect to matters concerning the Coast Guard, or the Secretary of Homeland Security when it is not operating as a service in the Navy.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H59D19ED3266A4DB6A7A9909FC8CD57E2" indent="up1"><enum>(2)</enum><text>The table of sections at the beginning of chapter 30 of such title is amended by striking the item relating to section 3020 and inserting the following:</text>
<quoted-block style="USC" id="H6431ED3F6E3F498DBA06731BF3F8C7EE">
<toc regeneration="no-regeneration">
<toc-entry level="section">3020. Transfer of entitlement to basic educational assistance</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HA594D6412D5140BF8B237E50D79DA27E"><enum>(b)</enum><header>Conforming amendment</header><text>Subsection (a) of section 3031 is amended by inserting <quote>in section 3020 of this title and</quote>.</text></subsection></section>
<section id="H18203053B7864B01B26D4238464947C4"><enum>102.</enum><header>Application of annual adjustment to rates of educational assistance based on average costs of higher learning</header>
<subsection id="H53B300FC4B3245A1A174346D3D757FE4"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/38/3015">Section 3015(h)</external-xref> of title 38, United States Code, is amended to read as follows: </text>
<quoted-block style="USC" id="H824F3E8414CF4B1AB4508C3BFE3E5D3C" display-inline="no-display-inline">
<subsection id="H0B23C0574C1A439B85DAA6AA73A620E0"><enum>(h)</enum>
<paragraph id="HE263F71759EE47B081B0141CAB77E984" display-inline="yes-display-inline"><enum>(1)</enum><text display-inline="yes-display-inline">With respect to any fiscal year, the Secretary shall provide a percentage increase (rounded to the nearest dollar) in the rates payable under subsections (a)(1) and (b)(1) equal to the percentage (as determined by the Secretary) by which—</text>
<subparagraph id="H83503549F1014C06B6B686B7C1B7EE8" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">the average monthly costs of tuition and expenses for commuter students at public institutions of higher learning that award baccalaureate degrees for purposes of subsections (a)(1) and (b)(1) for the fiscal year involved, exceeds</text></subparagraph>
<subparagraph id="H2CBBEE3B66884E5BAF37239ED6602712" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">such average monthly costs for the preceding fiscal year.</text></subparagraph></paragraph>
<paragraph id="H8D771FFDF304400190FB003512812B7D" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary shall make the determination under paragraph (1) after consultation with the Secretary of Education.</text></paragraph>
<paragraph id="HCA94383117A948019DBFACCC1F02627F" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">A determination made under paragraph (1) in a year shall take effect on October 1 of that year and apply with respect to basic educational assistance allowances payable under this section for the fiscal year beginning in that year.</text></paragraph>
<paragraph id="HFB9521B5BFED4FABB329F220AD7DF914" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">Not later than September 30 each year, the Secretary shall publish in the Federal Register the average monthly costs of tuition and expenses as determined under paragraph (1) in that year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H11105AF71742450E8199D767F23C0954"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to payments for months beginning after September 30, 2006.</text></subsection></section>
<section id="H1F670D60B8674422A2938CFD7100AE9C"><enum>103.</enum><header>Additional opportunity for certain VEAP participants to enroll in basic educational assistance under Montgomery GI Bill</header>
<subsection id="HD3E7E8D40C4D4FFBA905FE3F618EE91C"><enum>(a)</enum><header>Additional one-year opportunity to enroll</header><text display-inline="yes-display-inline">Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/38/3018C">section 3018C</external-xref> of title 38, United States Code, is amended by adding at the end the following new paragraph:</text>
<quoted-block style="USC" id="HFFDBC654734F42F1BBFAF21E8E006896" display-inline="no-display-inline">
<paragraph id="HA9C6356A8F08429493336E0073A03ECE"><enum>(6)</enum><text display-inline="yes-display-inline">In addition to the one-year period applicable under paragraph (1), a qualified individual (described in paragraph (2)) may make an irrevocable election under this subsection during the one-year period beginning on the date of the enactment of this paragraph, except that in applying this subsection as modified by this paragraph, the reference in paragraph (2)(B) to <quote>April, 1, 2000,</quote> is deemed to be a reference to <quote>April, 1, 2005</quote>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H401ED1B2016144D186647C6F9B00B1FC"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Subsection (e)(3) of such section is amended by striking <quote>under paragraph (1)</quote> both places it appears and inserting <quote>under this subsection</quote>.</text></subsection></section>
<section id="H17838AE3266B497F9873A52CBB12079D"><enum>104.</enum><header>Reimbursement of reductions of basic pay</header>
<subsection id="HF471EF4314904ECDBE3BE229EA22DBDB"><enum>(a)</enum><header>Reimbursement for extended active duty service</header><text>Sections <external-xref legal-doc="usc" parsable-cite="usc/38/3011">3011(b)</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/38/3012">3012(c)</external-xref> of title 38, United States Code, are each amended by adding at the end the following new paragraph:</text>
<quoted-block style="USC" id="H5782112BB78B47528765D6AB20A8ED2C" display-inline="no-display-inline">
<paragraph id="HDDBC83FADBB041C085BA956837D836A5" indent="up1"><enum>(4)</enum>
<subparagraph id="HF4C98FE242214631A297271BFEE78240" display-inline="yes-display-inline"><enum>(A)</enum><text>Subject to subparagraph (C), in the case of an individual who, after the date of completion of the continuous period of active duty service applicable to the individual under this section, continues to serve on active duty service, the Secretary shall pay to the individual $100 for each consecutive12-month period of active duty service served by the individual after such date.</text></subparagraph>
<subparagraph id="H93E2B9616C3941A6B3992F5803BE5B00" indent="up1"><enum>(B)</enum><text>In the case of an individual who was discharged or released from active duty for a condition described in section 3011(a)(1)(A)(i) of this title, the Secretary shall pay to such individual the aggregate amount of reductions in basic pay made under paragraph (1). </text></subparagraph>
<subparagraph id="H951011ECEC4E43199000DAB83E35E1DA" indent="up1"><enum>(C)</enum><text>In no case may the amount of payments to an individual under subparagraph (A) exceed the amount of reductions made with respect to the individual under paragraph (1).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H97E2426BB133442BAD86D1D51917C069"><enum>(b)</enum><header>Conforming amendment</header><text>Paragraph (2) of section 3017(b) of such title is amended—</text>
<paragraph id="HDEA16905503F4CCB91FE521F04435BD"><enum>(1)</enum><text>by striking <quote>and</quote> at the end of paragraph (1);</text></paragraph>
<paragraph id="H520C243AD42B45AAB0DF3F3E901FB4DB"><enum>(2)</enum><text>by striking the period at the end of paragraph (2) and inserting <quote>; and</quote>; and</text></paragraph>
<paragraph id="H5D41C7D9EF524AC1B1B4A2A595462712"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text>
<quoted-block style="USC" id="H708496E1FF424F789B2C4572434550BB" display-inline="no-display-inline">
<subparagraph id="H06A71BB4AC6F49548BBDA99898A7BE72"><enum>(C)</enum><text>the amount of payments made to the individual under section 3011(b)(4) or 3012(c)(4) of this title (as the case may be).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H387CAEA672B347B9B038ECF9E6DECDA3"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to periods of active duty served on or after the date of the enactment of this Act.</text></subsection></section>
<enum>II</enum><header>Selected Reserve</header>
<section id="HFC1EDA79C0954BC48DEFFA3BDBE116E"><enum>201.</enum><header>Transfer of entitlement to educational assistance under the Reserve Montgomery GI Bill</header>
<subsection id="H3A6D30791BC4488E99B1E4FBD8EB7322"><enum>(a)</enum><header>Selected Reserve</header>
<paragraph id="H92E559BBFCF446F5AA49FEA512277D38" display-inline="yes-display-inline"><enum>(1)</enum><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/1606">Chapter 1606</external-xref> of title 10, United States Code, is amended by adding at the end the following new section:</text>
<quoted-block style="USC" id="H22EEBC3B5FFB4FB4A0A35883B2A50042" display-inline="no-display-inline">
<section id="H478232E9CAA341DB8EA878F4B169FCC8"><enum>16138</enum><header>Transfer of entitlement to educational assistance</header>
<subsection id="H05CF6131874742499058321BB47D9206"><enum>(a)</enum><header>In general</header><text>An individual described in subsection (b) who is entitled to educational assistance under this chapter may elect to transfer to one or more of the dependents specified in subsection (c) a portion of such individual’s entitlement to such assistance. An individual transferring entitlement under this section shall submit written notice to the Secretary concerned not later than the expiration date of the period described in section 16133 of this title that is applicable to such individual.</text></subsection>
<subsection id="HC1FC6335B1EA4212BC69091225F29FF2" display-inline="no-display-inline"><enum>(b)</enum><header>Eligible individuals</header><text display-inline="yes-display-inline">An individual referred to in subsection (a) is any member of the Armed Forces who, at the time of the approval by the Secretary concerned of the member's request to transfer entitlement to basic educational assistance under this section—</text>
<paragraph id="HADD7DC057F124479A7336C9F6DD5C47E"><enum>(1)</enum><text display-inline="yes-display-inline">has completed six years of service in the Selected Reserve; and</text></paragraph>
<paragraph id="H69CDC0A92DCB4424ADBA61FBA717275F"><enum>(2)</enum><text display-inline="yes-display-inline">enters into an agreement to remain a member of the Selected Reserve for a period of not less than four years.</text></paragraph></subsection>
<subsection id="HB263CE31041749A2B9061ED799074DBB"><enum>(c)</enum><header>Eligible dependents</header><text>An individual may transfer entitlement under this section as follows:</text>
<paragraph id="H1BD9068950794288A9BE52861C009BE3"><enum>(1)</enum><text>To the individual’s spouse.</text></paragraph>
<paragraph id="H1E46DD2BB0CB419A83024084EAB16CD"><enum>(2)</enum><text>To one or more of the individual’s children.</text></paragraph>
<paragraph id="H7F1BFE4E3E934EF5B9BE1C24EF97C8"><enum>(3)</enum><text>To a combination of the individuals referred to in paragraphs (1) and (2).</text></paragraph></subsection>
<subsection id="HB8120718A3DA46C5A60700BE00A9C211"><enum>(d)</enum><header>Designation of transferee</header><text>An individual transferring entitlement under this section shall—</text>
<paragraph id="H2F7D2B353C064FFF88BD00A34C0422C2"><enum>(1)</enum><text>designate the dependent or dependents to whom such entitlement is being transferred;</text></paragraph>
<paragraph id="HE5D72237DCB743BC9842CBCB70C618B1"><enum>(2)</enum><text>designate the number of months of such entitlement to be transferred to each such dependent; and</text></paragraph>
<paragraph id="HD393CAB567514BE199EDB5AF177FC4CE"><enum>(3)</enum><text>specify the period for which the transfer shall be effective for each such dependent.</text></paragraph></subsection>
<subsection id="HD5EE0FFAA4A242BDB100266151A88CD8"><enum>(e)</enum><header>Revocation and modification</header><text>An individual transferring entitlement under this section may modify or revoke at any time the transfer of any unused portion of the entitlement so transferred. The modification or revocation of the transfer of entitlement under this subsection shall be made by the submittal of written notice of the action to both the Secretary concerned and the Secretary of Veterans Affairs.</text></subsection>
<subsection id="HD4DE988B0B514E308367F543F636A63E"><enum>(f)</enum><header>Commencement of use</header><text>If the dependent to whom entitlement is transferred under this section is a child, the use of the transferred entitlement may not commence until the child—</text>
<paragraph id="HC5C9C578867F43B1001988079BA6E19E"><enum>(1)</enum><text>completes the requirements of a secondary school diploma (or equivalency certificate); or</text></paragraph>
<paragraph id="HE3ED7241EA704B84A77ECAF22326002D"><enum>(2)</enum><text>attains 18 years of age.</text></paragraph></subsection>
<subsection id="HDC4A82750DB5427BA52B47E1786917B1"><enum>(g)</enum><header>Time limitation for use of eligibility and entitlement</header><text>Notwithstanding section 16133 of this title, and subject to subsection (d)(3), a dependent to whom entitlement is transferred under this section may use such entitlement until the later of—</text>
<paragraph id="H630297F83F324C5D8408F5341EC446F4"><enum>(1)</enum><text>the expiration date of a 15-year period beginning on the commencement date of the period prescribed by section 16133(a)(1) that is applicable to the individual who transferred such entitlement to the dependent; or</text></paragraph>
<paragraph id="HB652E3E936D94154BEDA64666FE2E031"><enum>(2)</enum><text>the date that is 10 years after the date the individual who transferred such entitlement to the dependent is separated from the Selected Reserve,</text></paragraph><continuation-text continuation-text-level="subsection">whichever occurs first.</continuation-text></subsection>
<subsection id="HF88A04D1A49C42E59EA5AF8D9CB91259"><enum>(h)</enum><header>Additional administrative matters</header>
<paragraph display-inline="yes-display-inline" id="H5F51A0A9030C494A9093729C9B261B48"><enum>(1)</enum><text>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.</text></paragraph>
<paragraph indent="up1" id="HF174F7BA673F43BC8B28EF899B25D0EC"><enum>(2)</enum><text>Except as provided under paragraphs (2) and (3) of subsection (d) and subsection (g), and subject to paragraph (5), a dependent to whom entitlement is transferred under this section is entitled to educational assistance under this chapter in the same manner as the individual from whom entitlement was transferred.</text></paragraph>
<paragraph indent="up1" id="H13D5F8E2C23D40FCADD91EFCDD1B0355"><enum>(3)</enum><text>The monthly rate of educational assistance payable to a dependent to whom entitlement is transferred under this section shall be the monthly amount payable under section 16131 of this title to the individual making the transfer.</text></paragraph>
<paragraph indent="up1" id="H9E90CABD101A45E88D71528839F09E69"><enum>(4)</enum><text>The death of an individual transferring entitlement under this section shall not affect the use of the transferred entitlement by the dependent to whom entitlement is transferred.</text></paragraph>
<paragraph indent="up1" id="HA089604B5D3B45EC9E87001307E8E891"><enum>(5)</enum><text>Notwithstanding subsection (g) and section 16133 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.</text></paragraph>
<paragraph indent="up1" id="HCDEA13A77798444A83D4AC8DFDCCCE1"><enum>(6)</enum><text>Except as provided in subsection (f), the purposes for which a dependent to whom entitlement is transferred under this section may use such entitlement shall include the pursuit and completion of the requirements of a secondary school diploma (or equivalency certificate).</text></paragraph></subsection>
<subsection id="HD4E7673240BC435296952EFD7911EFA7"><enum>(i)</enum><header>Overpayment</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/38/3685">section 3685</external-xref> of title 38.</text></subsection>
<subsection id="H080A934BA31743E7BDADD3383C7C55E0"><enum>(j)</enum><header>Regulations</header><text>The Secretaries concerned shall prescribe regulations for purposes of this section.</text></subsection>
<subsection id="HD89911E46B804E0AAC9BA4F51BDC1BE7"><enum>(k)</enum><header>Secretary concerned defined</header><text>Notwithstanding section 101(a)(9), in this section the term <term>Secretary concerned</term> means—</text>
<paragraph id="HDACECA36AB1B4C6E9316F6F707C6E838"><enum>(1)</enum><text>the Secretary of the Army with respect to matters concerning the Army;</text></paragraph>
<paragraph id="HA8D90098DD5D4642AFFBD4AD2EF68907"><enum>(2)</enum><text>the Secretary of the Navy with respect to matters concerning the Navy or the Marine Corps;</text></paragraph>
<paragraph id="HA9D57DD4A2E842A68DA900BBF8EBE95C"><enum>(3)</enum><text>the Secretary of the Air Force with respect to matters concerning the Air Force; and</text></paragraph>
<paragraph id="H19F04DDA05C142488948646EA656F8D"><enum>(4)</enum><text>the Secretary of Defense with respect to matters concerning the Coast Guard, or the Secretary of Homeland Security when it is not operating as a service in the Navy.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H6D53003CA85945D19E009CF9C14600F2" indent="up1"><enum>(2)</enum><text>The table of sections at the beginning of such chapter is amended by adding at the end the following new item:</text>
<quoted-block style="USC" id="HAB33EBE7738D44DD83D8185DA6463E93">
<toc regeneration="no-regeneration">
<toc-entry level="section">16138. Transfer of entitlement to educational assistance</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H05512950F3B5498E869B32D19017906D"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H4AB5253BBCD8438FB95BAE6B414E8EB2" display-inline="yes-display-inline"><enum>(1)</enum><text>Section 16133(a) of such title is amended by inserting <quote>and section 16138</quote> after <quote>subsection (b)</quote>.</text></paragraph>
<paragraph id="H0E72ECF64C73438D9C22E463000799E" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">Section 16137 of such title is amended by inserting <quote>Each such report shall also include the number of members of the Selected Reserve of the Ready Reserve of each armed force transferring entitlement to educational assistance under section 16138.</quote> after <quote>those fiscal years.</quote>.</text></paragraph></subsection></section>
<section id="HFEA8FCE335B549ACB048DB434215777" section-type="subsequent-section" display-inline="no-display-inline"><enum>202.</enum><header>Credit for cumulative active duty service in the Selected Reserve</header>
<subsection id="HB605EF359DE34CFF00AD86D500D2BAB4"><enum>(a)</enum><header>Entitlement</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/3012">Section 3012(a)(1)</external-xref> of title 38, United States Code, is amended—</text>
<paragraph id="HE9B2D90C66964DAF9831863538001873"><enum>(1)</enum><text>in subparagraph (B), by striking <quote>or</quote> at the end;</text></paragraph>
<paragraph id="H56284D718BF14681A03C8D25003859E"><enum>(2)</enum><text>in subparagraph (C), by adding <quote>or</quote> at the end; and</text></paragraph>
<paragraph id="HE3641C714F1342DFB700BB3647517269"><enum>(3)</enum><text>by inserting after subparagraph (C) the following new subparagraph (D):</text>
<quoted-block id="HBFD91D31269246F6941BE18144AFD600">
<subparagraph id="HEF5B07E296914D56A8AE364C311500A7"><enum>(D)</enum><text>while in the Selected Reserve—</text>
<clause id="H34F6CFF24AA44DBAB50125571C2FD407"><enum>(i)</enum><text>is first ordered to serve on active duty in the Armed Forces under section 12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10, during the period beginning on September 11, 2001, and ending December 31, 2006; and</text></clause>
<clause id="H55D7E686834043C09400B57012B879E4"><enum>(ii)</enum><text>serves on active duty in the Armed Forces for one or more periods (whether continuous or otherwise) aggregating not less than two years of service on active duty during a five period beginning on the date the individual is first ordered to serve on active duty during the period referred to in clause (i);</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HB802DF63B3DF4AC3822BE1BC12E1E9DD"><enum>(b)</enum><header>Duration of assistance</header><text>Subsection (b) of section 3013 of such title is amended by striking <quote>is entitled to</quote> and all that follows and inserting the following:</text>
<quoted-block display-inline="yes-display-inline" id="H7E8A69F66F2843078516E8B666CCBC00"><text>is entitled to—</text>
<paragraph id="HF0F6791346CC428FAD9EFCE4B4270468"><enum>(1)</enum><text>one month of educational assistance benefits under this chapter—</text>
<subparagraph id="H37449EB1C2B949360093D8C17BF8E25B"><enum>(A)</enum><text>in the case of an individual described in section 3012(a)(1)(A) of this title, for each month of continuous active duty served by such individual after June 30, 1985, as part of the obligated period of active duty on which such entitlement is based;</text></subparagraph>
<subparagraph id="H6DB0E073E69C49348110C843CDF1AA23"><enum>(B)</enum><text>in the case of an individual described in section 3012(a)(1)(B) or section 3012(a)(1)(C) of this title, for each month of continuous active duty served by such individual after June 30, 1985; </text></subparagraph>
<subparagraph id="H386403AE407043C2A7C5F2008F8DFF83"><enum>(C)</enum><text>in the case of an individual described in section 3012(a)(1)(D) of this title, for each month of active duty served by such individual after September 11, 2001, as part of the aggregate period of active duty on which such entitlement is based; and</text></subparagraph></paragraph>
<paragraph id="H947D0DE3D92D4892A911A5B9D1F5F66B"><enum>(2)</enum><text>one month of educational assistance benefits under this chapter for each four months served by such individual in the Selected Reserve after the applicable date specified in paragraph (1) (other than any month in which the individual served on active duty).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HCB36FC4D2B23459CB6B72F4B2910EA96"><enum>(c)</enum><header>Amount of assistance</header><text>Section 3015 of such title is amended by adding at the end the following new subsection:</text>
<quoted-block style="USC" id="HDD8C538E49FE4E8FA100792F00F1848E" display-inline="no-display-inline">
<subsection id="HF7AB29EAFEF64BD2A226EA99ABA5007D"><enum>(i)</enum><text>In the case of an individual entitled to an educational assistance allowance under section 3012(a)(1)(D) of this title, the amount of the basic educational assistance allowance payable under this chapter is the amount determined under subsection (b).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6798AD9DD162462A9081EECDF594C15"><enum>(d)</enum><header>Contribution</header><text>Paragraph (1) of section 3012(c) of such title is amended by inserting <quote>or subsection (a)(1)(D)</quote> after <quote>subsection (a)(1)(A)</quote>.</text></subsection>
<subsection id="HF73A0F59835C455F8DB99A822DC5E6D"><enum>(e)</enum><header>Election to opt out</header><text>Paragraph (1) of section 3012(d) of such title is amended—</text>
<paragraph id="H9F5FF6E3993840C48603C5597DF966E0"><enum>(1)</enum><text>by inserting <quote>(A)</quote> after <quote>(d)(1)</quote>; </text></paragraph>
<paragraph id="HA840E5D42FFC42B7B01854151E25A194"><enum>(2)</enum><text>by designating the last sentence as subparagraph (C);</text></paragraph>
<paragraph id="HE307AECF304A40D68BFFF560B3181BAF"><enum>(3)</enum><text>in subparagraph (C), as so designated, by striking <quote>such an election</quote> and inserting <quote>an election under this paragraph</quote>; and</text></paragraph>
<paragraph id="H922E90081A91495ABA83FF375A36255"><enum>(4)</enum><text>by inserting before subparagraph (C), as so designated, the following new subparagraph (B):</text>
<quoted-block style="USC" id="H6BDD31F2D1B64BB4B316EE695846F241" display-inline="no-display-inline">
<subparagraph id="HF05BD4EA99874EB1B8E890C2A2088DBD" indent="up2"><enum>(B)</enum><text display-inline="yes-display-inline">An individual described in subsection (a)(1)(D) may make an election not to receive educational assistance under this chapter. Any such election shall be made at the time the individual completes the aggregate period of active duty service required under such subsection.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HA87E258BCD7F4149AFBCF7021EAE2829"><enum>(f)</enum><header>Outreach</header>
<paragraph display-inline="yes-display-inline" id="HD0FFF8D7332746069B85E1C2CADCAC24"><enum>(1)</enum><text>The Secretaries concerned shall take actions to inform members of the Selected Reserve who are or may become entitled to basic educational assistance benefits under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/38/30">chapter 30</external-xref> of title 38, United States Code, as a result of section 3012(a)(1)(D) of such title (as amended by subsection (a) of this section) of the minimum service requirements for entitlement to such benefits under that chapter and of the scope and nature of such benefits.</text></paragraph>
<paragraph indent="up1" id="HED6955ECEC474A66B6F7B55EFCE6B6AE"><enum>(2)</enum><text>In this subsection:</text>
<subparagraph id="HAF9EDDA6ECE64491B2C631B8FDAC4F00"><enum>(A)</enum><text>The term <term>Secretary concerned</term> has the meaning given such term in <external-xref legal-doc="usc" parsable-cite="usc/38/101">section 101(25)</external-xref> of title 38, United States Code.</text></subparagraph>
<subparagraph id="H0122BF5B704B4D888BD48400FFE99112"><enum>(B)</enum><text>The term <term>Selected Reserve</term> has the meaning given such term in <external-xref legal-doc="usc" parsable-cite="usc/38/3002">section 3002(4)</external-xref> of title 38, United States Code.</text></subparagraph></paragraph></subsection></section>
<section id="H5A9BD3B631AB4E74B687A7EE350FFDF" section-type="subsequent-section" display-inline="no-display-inline"><enum>203.</enum><header>Increase in rates of educational assistance under the Reserve Montgomery GI Bill</header>
<subsection id="HE4290306AA704D7C90D3C970FB9E20AF"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/16131">Section 16131(b)</external-xref> of title 10, United States Code, is amended to read as follows:</text>
<quoted-block style="USC" id="H7907151718354753ACBE68C7271EF9C4" display-inline="no-display-inline">
<subsection id="HEE207EE7F4814DAD86BF3BA1B8C994"><enum>(b)</enum><text>Except as provided in subsections (d) through (f), each educational assistance program established under subsection (a) shall provide for payment by the Secretary concerned, through the Secretary of Veterans Affairs, to each person entitled to educational assistance under this chapter who is pursuing a program of education of an educational assistance allowance at the following monthly rates:</text>
<paragraph id="H972E3CF551624DD997FBB800A2193DF4"><enum>(1)</enum><text>For such a program of education pursued on a full-time basis, at the monthly rate equal to 40 percent of the rate that applies for the month under <external-xref legal-doc="usc" parsable-cite="usc/38/3015">section 3015(a)(1)</external-xref> of title 38.</text></paragraph>
<paragraph id="H5D5D2872CBF14E6C944D37239C59A453"><enum>(2)(A)</enum><text>Subject to subparagraph (B), for such a program of education pursued on a less than a full-time basis, at an appropriately reduced rate, as determined under regulations which the Secretaries concerned shall prescribe.</text></paragraph>
<paragraph id="H7F928A0C11DC46FDA1773D3FF167E0F0"><enum>(B)</enum><text>No payment may be made to a person for less than half-time pursuit of such a program of education if tuition assistance is otherwise available to the person for such pursuit from the military department concerned.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6CFB614A8217472BB7DDB3AEECEB653B"><enum>(b)</enum><header>Effective date</header><text>The amendments made by subsection (a) shall apply with respect to educational assistance allowances under section 16131(b) of such title paid for months occuring or or after the date of the enactment of this Act.</text></subsection>
<subsection id="H3580ECAE738849B6A1A3CA21AA1F874D"><enum>(c)</enum><header>Conforming increase to educational assistance rates under chapter 1607</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/10/16162">section 16162(c)</external-xref> of title 10, United States Code, is amended—</text>
<paragraph id="H3ECBC88F821C424BA653F6C34C7781DC"><enum>(1)</enum><text>by striking <quote>40 percent</quote> in subparagraph (A) and inserting <quote>50 percent</quote>; and</text></paragraph>
<paragraph id="HB631EBE93D4D40B3AEF1C76825008479"><enum>(2)</enum><text>by striking <quote>60 percent</quote> in subparagraph (B) and inserting <quote>65 percent</quote>.</text></paragraph></subsection></section>
<enum>III</enum><header>Survivors' and dependents' educational assistance</header>
<section id="H04BB42F43D7E4E59AA919E90371F7FA3"><enum>301.</enum><header>Application of annual adjustment to rates of educational assistance based on average costs of higher learning</header>
<subsection id="H3E6F13A6A52641C2A4C36C40018E851"><enum>(a)</enum><header>In general</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/38/3564">section 3564</external-xref> of title 38, United States Code, is amended to read as follows:</text>
<quoted-block style="USC" id="H835D102D5C634E87B0EFB2304854A588" display-inline="no-display-inline">
<subsection id="HFA8676E21ED043DF99B637DE4660385B"><enum>(a)</enum><text display-inline="yes-display-inline">With respect to any fiscal year, the Secretary shall provide for the same percentage increase in the rates payable under sections 3532, 3534(b), and 3542(a) of this title as the Secretary applies under subsection (h)(1) of <external-xref legal-doc="usc" parsable-cite="usc/38/3015">section 3015</external-xref> of this title to the rates applicable under subsections (a)(1) and (b)(1) of such section.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HD905494966F24C50AE5E02CFB9822E42"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply to payments for months beginning after September 30, 2006.</text></subsection></section>