II 110th CONGRESS 1st Session S. 1409 IN THE SENATE OF THE UNITED STATES May 16, 2007 Mrs. Clinton introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs A BILL To provide and enhance education, housing, and entrepreneur assistance for veterans who serve in the Armed Forces after September 11, 2001, and for other purposes.
1.
Short title
This Act may be cited as the 21st Century GI Bill of Rights Act of 2007.
2.
Educational assistance for members of the Armed Forces who serve after September 11, 2001
(a)
Educational assistance authorized
(1)
In general
Part III of title 38, United States Code, is amended by inserting after chapter 32 the following new chapter: 33
Educational assistance for service after September 11, 2001
SUBCHAPTER I—Definitions Sec. 3301. Definitions. SUBCHAPTER II—Educational Assistance 3311. Educational assistance for service in the Armed Forces after September 11, 2001: entitlement. 3312. Educational assistance: duration. 3313. Educational assistance: payment; amount. 3314. Tutorial assistance. 3315. Licensure and certification tests. SUBCHAPTER III—Administrative Provisions 3321. Time limitation for use of and eligibility for entitlement. 3322. Bar to duplication of educational assistance benefits. 3323. Administration. 3324. Allocation of administration and costs. I
Definitions
3301.
Definitions
In this chapter: (1)The term active duty has the meaning given such term in sections 101 and 3002(7) of this title and includes the limitations specified in section 3002(6) of this title. (2)The terms program of education, Secretary of Defense, and Selected Reserve have the meaning given such terms in section 3002 of this title.
II
Educational Assistance
3311.
Educational assistance for service in the Armed Forces after September 11, 2001: entitlement
(a)
Entitlement
Except as provided in subsection (c), each individual described in subsection (b) is entitled to educational assistance under this chapter. (b)
Covered individuals
An individual described in this subsection is any individual as follows: (1)A member of the Armed Forces who, while serving on active duty in the Armed Forces after September 11, 2001, is deployed overseas. (2)A member of the Armed Forces or a Reserve of the Armed Forces (including a member of the National Guard and a member of the Reserves) who— (A)serves on active duty in the Armed Forces after September 11, 2001, for an aggregate of at least two years; or (B)before completing the aggregate of service described in subparagraph (A) while serving on active duty in the Armed Forces after September 11, 2001, is discharged as described in subsection (d) after that date. (c)
Exception for individuals who receive a commission as an officer upon graduation from an academy
An individual who receives a commission as an officer in the Armed Forces upon graduation from the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Merchant Marine Academy, or the Coast Guard Academy is not entitled to educational assistance under this chapter. (d)
Certain discharge or release providing exception from service requirements
A discharge or release described in this subsection is a discharge or release from service in the Armed Forces for— (1)a service-connected disability; (2)a medical condition which preexisted such service and which the Secretary determines is not service-connected; (3)hardship; or (4)a physical or mental condition that was not characterized as a disability and did not result from the individual's own willful misconduct but did interfere with the individual's performance of duty, as determined by the Secretary of each military department in accordance with regulations prescribed by the Secretary of Defense.
3312.
Educational assistance: duration
Subject to section 3695 of this title, an individual entitled to educational assistance under section 3311 of this title is entitled to 36 months, which is the equivalent of four academic years, of educational assistance under section 3313 of this title.
3313.
Educational assistance: payment; amount
(a)
Payment
The Secretary shall pay to each individual entitled to educational assistance under this chapter who is pursuing an approved program of education (other than a program covered by subsections (e) and (f)) the amounts specified in subsection (c) to meet the expenses of such individual's subsistence, tuition, fees, and other educational costs for pursuit of such program of education. (b)
Approved programs of education
(1)Except as provided in paragraph (1), a program of education is an approved program of education for purposes of this chapter if the program of education is approved for purposes of chapter 30 of this title. (2)A program of education to obtain a graduate degree is not an approved program of education for the purposes of this chapter. (c)
Amount of educational assistance
(1)The amounts payable under this subsection for pursuit of an approved program of education are amounts as follows: (A)An amount equal to the established charges (as determined in accordance with subsection (h)) for the program of education. (B)Subject to paragraph (2), an amount equal to the room and board of the individual. (2)The amount payable under paragraph (1)(B) for room and board of an individual may not exceed an amount equal to the standard dormitory fee, or such equivalent fee as the Secretary shall specify in regulations, which similarly circumstanced nonveterans enrolled in the program of education involved would be required to pay. (d)
Frequency of payment
(1)Payment of the amounts payable under subsection (c)(1) for pursuit of a program of education shall be made at such time and with such frequency as the Secretary shall prescribe for purposes of this chapter. Such payment may include payment in a lump-sum amount for the entire quarter, semester, or term, as applicable, of the program of education before the commencement of such quarter, semester, or term. (2)The Secretary shall prescribe in regulations methods for determining the number of months (including fractions thereof) of entitlement of an individual to educational assistance under this chapter that are chargeable under this chapter for payments of amounts in accordance with this subsection, including payments on a lump-sum basis in advance as authorized by paragraph (1). (3)Payment of amounts described in paragraph (1) for pursuit of a program of education may not be made to an individual before the date of the enrollment of such individual in the program of education for which payment is sought by such individual. (e)
Programs of education pursued on active duty
(1)Educational assistance is payable under this chapter for pursuit of an approved program of education while on active duty. (2)The amount of educational assistance payable under this chapter to an individual pursuing a program of education while on active duty is the lesser of— (A)the established charges (as determined in accordance with subsection (h)) for the program of education; or (B)the amount of the charges of the educational institution as elected by the individual in the manner specified in section 3014(b) of this title. (3)Payment of the amount payable under paragraph (2) for pursuit of a program of education shall be made in a lump-sum amount for the entire quarter, semester, or term, as applicable, of the program of education before the commencement of such quarter, semester, or term. (4)For each month (as determined pursuant to the methods prescribed under subsection (d)(2)) for which amounts are paid an individual under this subsection, the entitlement of the individual to educational assistance under this chapter shall be charged at the rate of one month for each such month. (f)
Programs of education pursued on less than half-time basis
(1)Educational assistance is payable under this chapter for pursuit of an approved program of education on less than half-time basis. (2)The amount of educational assistance payable under this chapter to an individual pursuing a program of education on less than half-time basis is the established charges (as determined in accordance with subsection (h)) for the program of education. (3)Payment of the amount payable under this chapter to an individual for pursuit of a program of education on less than half-time basis shall be made in a lump-sum, and shall be made not later than the last day of the month immediately following the month in which certification is received from the educational institution involved that the individual has enrolled in and is pursuing a program of education at the institution. (4)For each month (as determined pursuant to the methods prescribed under subsection (d)(2)) for which amounts are paid an individual under this subsection, the entitlement of the individual to educational assistance under this chapter shall be charged at a percentage of a month equal to— (A)the number of course hours borne by the individual in pursuit of the program of education involved, divided by (B)the number of course hours for full-time pursuit of such program of education. (g)
Specialized training and certification programs for veterans with service-connected disabilities
(1)Educational assistance is payable under this chapter for— (A)an approved program of education that consists of specialized training for veterans with service-connected disabilities; or (B)an approved program of education that is a certification program for veterans with service-connected disabilities. (2)The amount of educational assistance payable under this chapter to an individual pursuing a program of education pursuant to paragraph (1) is the established charges (as determined in accordance with subsection (h)) for the program of education. (h)
Established charges
(1)Subject to the provisions of this subsection, in subsections (c), (e), (f), and (g) the term established charges, in the case of a program of education, means the actual charges (as determined pursuant to regulations prescribed by the Secretary in consultation with the Secretary of Education) for tuition, fees (including required supplies, books, and equipment), and other educational costs which similarly circumstanced nonveterans enrolled in the program of education would be required to pay. (2)The maximum amount of charges payable for tuition under this subsection as part of the established charges for a program of education pursued by an individual under subsections (c), (e), (f), and (g) may not exceed the national average amount of tuition regularly charged for full-time pursuit of programs of education at public and private institutions of higher education that typically require 36 months, which is the equivalent of four academic years, to complete. (3)Established charges shall be determined for purposes of this subsection on the following basis: (A)In the case of an individual enrolled in a program of education offered on a term, quarter, or semester basis, the tuition and fees charged the individual for the term, quarter, or semester. (B)In the case of an individual enrolled in a program of education not offered on a term, quarter, or semester basis, the tuition and fees charged the individual for the entire program of education.
3314.
Tutorial assistance
(a)
In general
Subject to subsection (b), an individual entitled to educational assistance under this chapter shall also be entitled to benefits provided an eligible veteran under section 3492 of this title. (b)
Conditions
The provision of benefits under subsection (a) shall be subject to the conditions applicable to an eligible veteran under section 3492 of this title. (c)
No charge against entitlement
Any benefits provided an individual under subsection (a) are in addition to any other educational assistance benefits provided the individual under this chapter.
3315.
Licensure and certification tests
(a)
In general
An individual entitled to educational assistance under this chapter shall also be entitled to payment for licensing or certification tests described in section 3452(b) of this title. (b)
No charge against entitlement
Any amount paid an individual under subsection (a) is in addition to any other educational assistance benefits provided the individual under this chapter.
III
Administrative Provisions
3321.
Time limitation for use of and eligibility for entitlement
(a)
In general
Except as otherwise provided in subsection (b), the period during which an individual entitled to educational assistance under this chapter may use such individual's entitlement expires at the end of the 10-year period beginning on the date of such individual's last discharge or release from active duty. (b)
Exceptions
(1)Subsections (b), (c), and (d) of section 3031 of this title shall apply with respect to the running of the 10-year period described in subsection (a) of this section in the same manner as such subsections apply under section 3031 of this title with respect to the running of the 10-year period described in section 3031(a) of this title. (2)Section 3031(f) of this title shall apply with respect to the termination of an individual's entitlement to educational assistance under this chapter in the same manner as such section applies to the termination of an individual's entitlement to educational assistance under chapter 30 of this title, except that, in the administration of such section for purposes of this chapter, the reference to section 3013 of this title shall be deemed to be a reference to 3312 of this title.
3322.
Bar to duplication of educational assistance benefits
(a)
In general
An individual entitled to educational assistance under this chapter who is also eligible for educational assistance under chapter 30, 31, 32, or 35 of this title, chapter 107, 1606, or 1607 of title 10, or the provisions of the Hostage Relief Act of 1980 (Public Law 96–449; 5 U.S.C. 5561 note) may not receive assistance under two or more such programs concurrently, but shall elect (in such form and manner as the Secretary may prescribe) under which chapter or provisions to receive educational assistance. (b)
Inapplicability of service treated under educational loan repayment programs
A period of service counted for purposes of repayment of an education loan under chapter 109 of title 10 may not be counted as a period of service for entitlement to educational assistance under this chapter. (c)
Service in Selected Reserve
An individual who serves in the Selected Reserve may receive credit for such service under only one of this chapter, chapter 30 of this title, and chapters 1606 and 1607 of title 10, and shall elect (in such form and manner as the Secretary may prescribe) under which chapter such service is to be credited. (d)
Additional coordination matters
In the case of an individual entitled to educational assistance under chapter 30, 31, 32, or 35 of this title, chapter 107, 1606, or 1607 of title 10, or the provisions of the Hostage Relief Act of 1980, or making contributions toward entitlement to educational assistance under chapter 30 of this title, as of the date of the enactment of the 21st Century GI Bill of Rights Act of 2007, coordination of entitlement to educational assistance under this chapter, on the one hand, and such chapters or provisions, on the other, shall be governed by the provisions of section 2(c) of the 21st Century GI Bill of Rights Act of 2007.
3323.
Administration
(a)
In general
(1)Except as otherwise provided in this chapter, the provisions specified in section 3034(a)(1) of this title shall apply to the provision of educational assistance under this chapter. (2)In applying the provisions referred to in paragraph (1) to an individual entitled to educational assistance under this chapter for purposes of this section, the reference in such provisions to the term eligible veteran shall be deemed to refer to an individual entitled to educational assistance under this chapter. (3)In applying section 3474 of this title to an individual entitled to educational assistance under this chapter for purposes of this section, the reference in such section 3474 to the term educational assistance allowance shall be deemed to refer to educational assistance payable under section 3313 of this title. (4)In applying section 3482(g) of this title to an individual entitled to educational assistance under this chapter for purposes of this section— (A)the first reference to the term educational assistance allowance in such section 3482(g) shall be deemed to refer to educational assistance payable under section 3313 of this title; and (B)the first sentence of paragraph (1) of such section 3482(g) shall be applied as if such sentence ended with equipment. (b)
Information on benefits
(1)The Secretary of Veterans Affairs shall provide the information described in paragraph (2) to each member of the Armed Forces at such times as the Secretary of Veterans Affairs and the Secretary of Defense shall jointly prescribe in regulations. (2)The information described in this paragraph is information on benefits, limitations, procedures, eligibility requirements (including time-in-service requirements), and other important aspects of educational assistance under this chapter, including application forms for such assistance under section 5102 of this title. (3)The Secretary of Veterans Affairs shall furnish the information and forms described in paragraph (2), and other educational materials on educational assistance under this chapter, to educational institutions, training establishments, military education personnel, and such other persons and entities as the Secretary considers appropriate. (c)
Regulations
(1)The Secretary shall prescribe regulations for the administration of this chapter. (2)Any regulations prescribed by the Secretary of Defense for purposes of this chapter shall apply uniformly across the Armed Forces.
3324.
Allocation of administration and costs
(a)
Administration
Except as otherwise provided in this chapter, the Secretary shall administer the provision of educational assistance under this chapter. (b)
Costs
Payments for entitlement to educational assistance earned under this chapter shall be made from funds appropriated to, or otherwise made available to, the Department of Veterans Affairs for the payment of readjustment benefits.
. (2)
Clerical amendments
The tables of chapters at the beginning of title 38, United States Code, and at the beginning of part III of such title, are each amended by inserting after the item relating to chapter 32 the following new item: 33. Educational assistance for service after September 11, 20013301 . (b)
Conforming amendments
(1)
Amendments relating to duplication of benefits
(A)Section 3033 of title 38, United States Code, is amended— (i)in subsection (a)(1), by inserting 33, after 32,; and (ii)in subsection (c), by striking both the program established by this chapter and the program established by chapter 106 of title 10 and inserting two or more of the programs established by this chapter, chapter 33 of this title, and chapters 1606 and 1607 of title 10. (B)Paragraph (4) of section 3695(a) of such title is amended to read as follows: (4)Chapters 30, 32, 33, 34, 35, and 36 of this title. . (C)Section 16163(e) of title 10, United States Code, is amended by inserting 33, after 32,. (2)
Additional conforming amendments
(A)Title 38, United States Code, is further amended by inserting 33, after 32, each place it appears in the following provisions: (i)In subsections (b) and (e)(1) of section 3485. (ii)In section 3688(b). (iii)In subsections (a)(1), (c)(1), (c)(1)(G), (d), and (e)(2) of section 3689. (iv)In section 3690(b)(3)(A). (v)In subsections (a) and (b) of section 3692. (vi)In section 3697(a). (B)Section 3697A(b)(1) of such title is amended by striking or 32 and inserting 32, or 33. (c)
Applicability to individuals under Montgomery GI Bill Program
(1)
Individuals eligible to elect participation in Educational assistance for service after September 11, 2001
An individual may elect to receive education assistance under chapter 33 of title 38, United States Code (as added by subsection (a)), if such individual— (A)as of the date of the enactment of this Act— (i)is entitled to basic educational assistance under chapter 30 of title 38, United States Code, and has used, but retains unused, entitlement under that chapter; (ii)is entitled to educational assistance under chapter 107, 1606, or 1607 of title 10, United States Code, and has used, but retains unused, entitlement under the applicable chapter; (iii)is entitled to basic educational assistance under chapter 30 of title 38, United States Code, but has not used any such entitlement under that chapter; (iv)is entitled to educational assistance under chapter 107, 1606, or 1607 of title 10, United States Code, but has not used any such entitlement under such chapter; (v)is a member of the Armed Forces who is eligible for receipt of basic educational assistance under chapter 30 of title 38, United States Code, and is making contributions toward such assistance under section 3011(b) or 3012(c) of such title; or (vi)is a member of the Armed Forces who is not entitled to basic educational assistance under chapter 30 of title 38, United States Code, by reason of an election under section 3011(c)(1) or 3012(d)(1) of such title; and (B)as of the date of the individual's election under this paragraph— (i)otherwise meets the requirements for entitlement to educational assistance under chapter 33 of title 38, United States Code (as so added); or (ii)is making progress toward meeting such requirements. (2)
Election on treatment of transferred entitlement
(A)
Election
If, on the date an individual described in subparagraph (A)(i) or (A)(iii) of paragraph (1) makes an election under that paragraph, a transfer of the entitlement of the individual to basic educational assistance under section 3020 of title 38, United States Code, is in effect and a number of months of the entitlement so transferred remain unutilized, the individual may elect to revoke all or a portion of the entitlement so transferred that remains unutilized. (B)
Availability of revoked entitlement
Any entitlement revoked by an individual under this paragraph shall no longer be available to the dependent to whom transferred, but shall be available to the individual instead for educational assistance under chapter 33 of title 38, United States Code (as so added), as provided in paragraph (3)(B). (C)
Availability of unrevoked entitlement
Any entitlement described in subparagraph (A) that is not revoked by an individual in accordance with that subparagraph shall remain available to the eligible dependent or dependents concerned in accordance with the current transfer of such entitlement under section 3020 of title 38, United States Code. (3)
Educational assistance for service after September 11, 2001
(A)
In general
Subject to subparagraph (B), an individual making an election under paragraph (1) shall be entitled to educational assistance under chapter 33 of title 38, United States Code (as so added), in accordance with the provisions of such chapter, instead of basic educational assistance under chapter 30 of title 38, United States Code, or educational assistance under chapter 107, 1606, or 1607 of title 10, United States Code, as applicable. (B)
Limitation on entitlement for certain individuals
In the case of an individual making an election under paragraph (1) who is described by subparagraph (A)(i) of that paragraph, the number of months of entitlement of such individual to educational assistance under chapter 33 of title 38, United States Code (as so added), shall be the number of months equal to the number of months of unused entitlement of such individual under chapter 30 of title 38, United States Code, as of the date of the election, including any number of months entitlement revoked by the individual under paragraph (2)(A). (4)
Treatment of contributions toward basic educational assistance; cessation of contributions
Effective as of the first month beginning on or after the date of an election under paragraph (1) of an individual described by subparagraph (A)(v) of that paragraph, the obligation of such individual to make contributions under section 3011(b) or 3012(c) of title 38, United States Code, as applicable, shall cease, and the requirements of such section shall be deemed to be no longer applicable to such person. (5)
Termination of entitlement under Montgomery GI Bill
Effective on the last day of the month in which an individual makes an election under paragraph (1), the entitlement, if any, of the individual to basic educational assistance under chapter 30 of title 38, United States Code, or educational assistance under chapter 107, 1606, or 1607 of title 10, United States Code, as applicable, shall terminate. (6)
Irrevocability of elections
An election under paragraph (1) or (2)(A) is irrevocable.
3.
Improvements in housing benefits for veterans
(a)
Increase in maximum guaranty amount of home loan guaranty program
Section 3703(a)(1)(C) of title 38, United States Code, is amended— (1)by striking In this paragraph and inserting (i) In this paragraph; and (2)by adding at the end the following new clause: (ii)The Secretary shall increase the dollar amount described in clause (i) with respect to residences of a particular size located in any area for which the median price for such size residence exceeds the dollar amount, to 25 percent of the median price for such a residence in such area. . (b)
Repeal of loan funding fees requirement for housing loans
(1)
In general
Section 3729 of such title is repealed. (2)
Conforming amendments
(A)Section 2041(b)(2) of such title is amended— (i)in subparagraph (A), by adding and at the end; (ii)in subparagraph (B), by striking ; and and inserting a period; and (iii)by striking subparagraph (C). (B)(i)Section 3703 of such title is amended— (I)by striking subsection (e); and (II)by redesignating subsection (f) as subsection (e). (ii)Section 3732(a)(1) of such title is amended by striking Except as provided in section 3703(e) of this title, if and inserting If. (C)Section 3722(c) of such title is amended by striking section 3729 of this title or any other provision of law or and inserting any provision of law or any. (D)Section 3734(b)(2) of such title is amended— (i)by striking subparagraph (A); and (ii)by redesignating subparagraphs (B), (C), (D), and (E) as subparagraphs (A), (B), (C), and (D), respectively. (3)
Clerical amendment
The table of sections at the beginning of chapter 37 of such title is amended by striking the item relating to section 3729. (c)
Authorization of appropriations for Veterans Housing Benefit Program Fund
There are authorized to be appropriated for the Veterans Housing Benefit Program Fund under section 3722 of title 38, United States Code, such sums as may be necessary to carry out the amendments made by this section.
4.
Small business programs for veterans
(a)
Definitions
In this section: (1)
Intermediary
The term intermediary has the meaning given that term in section 7(m)(11) of the Small Business Act (15 U.S.C. 636(m)(11)). (2)
Microloan Program
The term Microloan Program means the Microloan Program under section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as amended by this Act. (3)
Vet center
The term vet center means a center for the provision of readjustment counseling and related mental health services under section 1712A of title 38, United States Code. (4)
Veteran
The term veteran has the meaning given that term in section 101 of title 38, United States Code. (b)
Microloan Program
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended by adding at the end the following: (14)
Loans to veterans
(A)
In general
Notwithstanding any other provision of law— (i)any loan made to a veteran by an intermediary under this subsection shall have a rate of interest equal to not more than 2.5 percent; and (ii)an intermediary— (I)may make a loan to a veteran under this subsection in an amount of not more than $100,000; and (II)shall not require collateral for any loan to a veteran under this subsection. (B)
Identification
The Administrator, acting through the Associate Administrator for Veterans Business Development, shall— (i)identify intermediaries willing to— (I)make loans to veterans on the terms described in subparagraph (A); and (II)assist veterans in obtaining such loans; and (ii)establish a database of intermediaries identified under clause (i). . (c)
Outreach
The Secretary of Veterans Affairs— (1)acting through vet centers, shall— (A)provide technical assistance, outreach, and counseling to veterans regarding the Microloan Program; and (B)serve as a liaison between veterans and the Administrator of the Small Business Administration and intermediaries for purposes of the Microloan Program; and (2)evaluate the efforts of the Department of Veterans Affairs under paragraph (1). (d)
Authorization of appropriations
There are authorized to be appropriated to the Secretary of Veterans Affairs and the Administrator of the Small Business Administration such sums as may be necessary to carry out the provisions of, and the amendments made by, this section.