II 110th CONGRESS 2d Session S. 2575 IN THE SENATE OF THE UNITED STATES January 30, 2008 Mrs. Hutchison (for herself, Mr. Cornyn, Mr. Johnson, Ms. Mikulski, Mr. Domenici, Mr. Sununu, Mr. Coleman, Mr. Bayh, Mr. Inhofe, Mr. Roberts, Mrs. Lincoln, Mr. Graham, Mr. Stevens, Ms. Murkowski, Mr. Cardin, and Mr. Bingaman) introduced the following bill; which was read twice and referred to the Committee on Armed Services A BILL To amend title 38, United States Code, to remove certain limitations on the transfer of entitlement to basic educational assistance under Montgomery GI Bill, and for other purposes.
1.
Short title
This Act may be cited as the Montgomery GI Bill Educational Assistance Transferability Act of 2008.
2.
Removal of certain limitations on transfer of entitlement to basic educational assistance
(a)
In general
Section 3020 of title 38, United States Code, is amended— (1)in the heading, by striking : members of the Armed Forces with critical military skills; (2)in subsection (a)— (A)by striking with critical military skills and at such Secretary's sole discretion; and (B)by striking , subject to the limitation under subsection (d); (3)in subsection (b)— (A)in paragraph (1), by striking the semicolon at the end and inserting ; and; (B)by striking paragraph (2); and (C)by redesignating paragraph (3) as paragraph (2); (4)by striking subsection (d); and (5)by redesignating subsections (e) through (m) as subsections (d) through (l), respectively. (b)
Conforming amendments
Such section is further amended— (1)in subsection (g)(2), as redesignated by subsection (a)(5) of this section, by striking under subsection (e)(2) and inserting under subsection (d)(2); (2)in subsection (h)(2), as redesignated by subsection (a)(5) of this section, by striking under subsection (b)(3) and inserting under subsection (b)(2); and (3)in subsection (j), as redesignated by subsection (a)(5) of this section— (A)by striking under subsection (f)(2) and inserting under subsection (e)(2); and (B)by striking in subsection (h)(5) and inserting in subsection (g)(5). (c)
Clerical amendment
The table of sections at the beginning of chapter 30 of such title is amended by amending the item relating to section 3020 to read as follows: 3020. Transfer of entitlement to basic educational assistance. .
3.
Transfer of entitlement to educational assistance under the Reserve Montgomery GI Bill
(a)
Selected Reserve
(1)
In general
Chapter 1606 of title 10, United States Code, is amended by adding at the end the following new section:
16138.
Transfer of entitlement to educational assistance
(a)
In general
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. (b)
Eligible individuals
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— (1)has completed six years of service in the Selected Reserve; and (2)enters into an agreement to remain a member of the Selected Reserve for a period of not less than four years. (c)
Eligible dependents
An individual may transfer entitlement under this section 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). (d)
Designation of transferee
An individual transferring entitlement under this section shall— (1)designate the dependent or dependents to whom such entitlement is being transferred; (2)designate the number of months of such entitlement to be transferred to each such dependent; and (3)specify the period for which the transfer shall be effective for each such dependent. (e)
Revocation and modification
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. (f)
Commencement of use
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— (1)completes the requirements of a secondary school diploma (or equivalency certificate); or (2)attains 18 years of age. (g)
Time limitation for use of eligibility and entitlement
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— (1)the expiration date of a 15-year period beginning on the date on which the individual who transferred such entitlement to the dependent becomes entitled to such assistance; and (2)the date that is 10 years after the date the individual who transferred such entitlement to the dependent is separated from the Selected Reserve. (h)
Additional administrative matters
(1)
Use of entitlement charged to transferring individual
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. (2)
Entitlement to assistance
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. (3)
Monthly rate of education assistance payable
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. (4)
Use of transferred entitlement not affected by death of transferor
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. (5)
Age limitation
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. (6)
Transferability to non-child of entitlement for purpose of secondary school diploma
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). (i)
Overpayment
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 title 38. (j)
Regulations
The Secretaries concerned shall prescribe regulations for purposes of this section. (k)
Secretary concerned defined
Notwithstanding section 101(a)(9) of this title, in this section the term Secretary concerned means— (1)the Secretary of the Army with respect to matters concerning the Army; (2)the Secretary of the Navy with respect to matters concerning the Navy or the Marine Corps; (3)the Secretary of the Air Force with respect to matters concerning the Air Force; and (4)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.
. (2)
Clerical amendment
The table of sections at the beginning of such chapter is amended by adding at the end the following new item: 16138. Transfer of entitlement to educational assistance. . (b)
Conforming amendments
(1)
Time limitation
Section 16133(a) of such title is amended by inserting and section 16138 of this title after subsection (b). (2)
Biennial report
Section 16137 of such title is amended by inserting after the second sentence the following: 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..