[Federal Register Volume 61, Number 112 (Monday, June 10, 1996)]
[Rules and Regulations]
[Pages 29294-29297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14363]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 21
RIN 2900-AH31
Educational Assistance Programs and Service Members Occupational
Conversion and Training Act Program
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: This document amends the educational assistance regulations
and the Service Members Occupational Conversion and Training Act
(SMOCTA) regulations. It restates statutory provisions of the Veterans'
Benefits Improvement Act of 1994 and the National Defense Authorization
Act for Fiscal Year 1995. It also makes changes to set forth statutory
interpretations of the Department of Veterans Affairs (VA), to reflect
current organizational structure within VA, and to provide
clarification. These changes affect the Survivors' and Dependents'
Educational Assistance program, the Montgomery GI Bill--Active Duty
program, the Montgomery GI Bill--Selected Reserve program, the SMOCTA
program, and the Post-Vietnam Era Veterans' Educational Assistance
program (VEAP).
EFFECTIVE DATE: This final rule is effective June 10, 1996. For more
information concerning the application of the provisions of the final
rule, see the SUPPLEMENTARY INFORMATION section.
FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director
for Policy and Program Administration, Education Service, Veterans
Benefits Administration, (202) 273-7187.
SUPPLEMENTARY INFORMATION: This document amends regulations in 38 CFR
Part 21. It amends educational assistance regulations concerning the
Survivors' and Dependents' Educational Assistance program in subpart C
and the Montgomery GI Bill--Active Duty program in subpart K. Also,
this document makes changes to the administrative provisions in subpart
D that affect the Survivors' and Dependents' Educational Assistance
program, the Montgomery GI Bill--Active Duty program, the Montgomery GI
Bill--Selected Reserve program, and VEAP. Further, this document amends
the SMOCTA regulations in subpart F-3.
The Veterans' Benefits Improvement Act of 1994 (Pub. L. 103-446)
contains many provisions that affect the Montgomery GI Bill--Active
Duty program. These include making vocational flight training
permanently available under the Montgomery GI Bill--Active Duty
program; permitting approval of alternative teacher certification
programs for training under the Montgomery GI Bill--Active Duty
program; eliminating VA's authority to functionally supervise State
approving agencies; restricting approved correspondence courses to
accredited courses; and permitting approval of programs of education
offered by foreign educational institutions when those programs include
courses offered away from the institution's main campus. Accordingly,
the regulations in subparts D and K are amended to incorporate the
statutory changes.
Pursuant to Pub. L. 103-446, the provisions concerning alternative
teacher certification do not apply to the Survivors' and Dependents'
Educational Assistance program, and regulations in subpart C governing
that program are revised to clarify that fact. The provisions of Pub.
L. 103-446 also provide that certain recipients of Survivors' and
Dependents' Educational Assistance in the Philippines who were being
paid at the rate equivalent to 50 cents on the dollar in Philippine
pesos will now be paid in U.S. dollars. The regulations in subpart C
are amended accordingly. We also made various changes to SMOCTA
regulations in subpart F-3 to reflect the statutory changes made by
Pub. L. 103-446. In this regard, the SMOCTA regulations are amended by
eliminating the prohibition against training programs that lasted more
than 18 months, by eliminating provisions that required a two week wait
before a veteran could begin a training program, and by adding an
aggregate limit of not more than $10,000 or $12,000, as applicable,
that could be paid to employers when a trainee was in more than one
training program.
The National Defense Authorization Act for Fiscal Year 1995 (Pub.
L. 103-337) contains provisions permitting additional members of the
Coast Guard to qualify for the Montgomery GI Bill--Active Duty program.
The regulations in subpart K are amended to reflect the statutory
change.
VA is prohibited by statute from approving the enrollment of an
eligible veteran in a course if 85% or more of the students enrolled in
the course are VA-supported. In this regard, vocational flight training
is now a permanent part of the Montgomery GI Bill--Active Duty program,
the Montgomery GI Bill--Selected Reserve program, and VEAP. The
regulations are amended by providing that solo flight training and
training in flight simulators are to be included in the calculations
for determining whether the 85%-15% requirement has been met in flight
courses. This is necessary since in our
[[Page 29295]]
view 38 U.S.C. 3680A(d) requires that when educational assistance may
be paid to eligible veterans for any courses, those courses are subject
to the 85%-15% requirement.
The regulations in subpart D are amended by eliminating references
to the Director, Vocational Rehabilitation and Education Service, a
position that no longer exists; by removing an obsolete reference to
eligibility requirements under the old Vietnam Era GI Bill from the
regulations concerning training in foreign schools, since there no
longer is any eligibility under the Vietnam Era GI Bill; and
clarifying, consistent with the requirements of Pub. L. 103-446, that a
person eligible under the Montgomery GI Bill--Active Duty program and
the Montgomery GI Bill--Selected Reserve program may train in foreign
schools.
Pub. L. 103-446 contains a provision that requires any entity
offering an alternative teacher certification program to be considered
to be an educational institution for VA purposes during the period
beginning on November 2, 1994, and ending on September 30, 1996. This
document amends subparts D and K to reflect this statutory change.
This document also amends subparts D and K by adding a definition
of ``alternative teacher certification program'' as follows:
The term alternative teacher certification program, for the
purposes of determining whether an entity offering such a program is
a school, educational institution or institution as defined in * * *
this section, means a program leading to a teacher's certificate
that allows individuals with a bachelor's degree or graduate degree
to obtain teacher certification without enrolling in an institution
of higher learning.
We believe this is consistent with congressional intent.
The educational assistance regulations in subparts C, D, and K and
the SMOCTA regulations in subpart F-3 are further amended by making
other changes for purposes of clarification.
The restatements of statute and statutory interpretations of Pub.
L. 102-484 and Pub. L. 103-446 contained in this final rule will be
applied retroactively from the effective dates of the statutory
provisions. However, the revisions concerning the internal VA
reorganization and other clarifications will be applied from the
effective date of the rule. Dates of application for provisions covered
by this document are as follows:
Oct. 1, 1994: Sec. 21.7120.
Oct. 5, 1994: Sec. 21.7045.
Nov. 2, 1994: Secs. 21.3333, 21.4152, 21.4155, 21.4200, 21.4250(f),
21.4820, 21.4830, 21.4832, and 21.7020.
Jan. 31, 1995: Secs. 21.4252(e) and 21.4279.
June 10, 1996: Secs. 21.4201 and 21.4260.
This document makes no substantive changes. It restates statutory
provisions, sets forth statutory interpretations, reflects current
organizational structure within VA, and makes changes for
clarification. Accordingly, there is a basis for dispensing with prior
notice and comment and delayed effective date provisions of 5 U.S.C.
552 and 553.
The Secretary of Veterans Affairs hereby certifies that this final
rule will not have a significant economic impact on a substantial
number of small entities as they are defined in the Regulatory
Flexibility Act, 5 U.S.C. 601-612. This final rule makes no substantive
changes. Pursuant to 5 U.S.C. 605(b), this final rule, therefore, is
exempt from the initial and final regulatory flexibility analyses
requirements of sections 603 and 604.
The Catalog of Federal Domestic Assistance numbers for programs
affected by this final rule are 64.117, 64.120, and 64.124. No Catalog
of Federal Domestic Assistance number has been assigned to the
Montgomery GI Bill--Selected Reserve program or the training programs
under the Service Members Occupational Conversion and Training Act.
List of Subjects in 38 CFR Part 21
Administrative practice and procedure, Armed forces, Civil rights,
Claims, Colleges and universities, Conflict of interests, Defense
Department, Education, Employment, Grant programs--education, Grant
programs--veterans, Health care, Loan programs--education, Loan
programs--veterans, Manpower training programs, Reporting and
recordkeeping requirements, Schools, Travel and transportation
expenses, Veterans, Vocational education, Vocational rehabilitation.
Approved: May 31, 1996.
Jesse Brown,
Secretary of Veterans Affairs.
For the reasons set out in the preamble, 38 CFR part 21 is amended
as set forth below.
PART 21--VOCATIONAL REHABILITATION AND EDUCATION
Subpart C--Survivors' and Dependents' Educational Assistance Under
38 U.S.C. Chapter 35
1. The authority citation for subpart C is revised to read as
follows:
Authority: 38 U.S.C. 501(a), 512, 3500-3566, unless otherwise
noted.
2. In Sec. 21.3021, paragraph (k) is redesignated as paragraph (l);
and new paragraph (k) is added and newly redesignated paragraph (l) is
revised, to read as follows:
Sec. 21.3021 Definitions.
* * * * *
(k) School, educational institution, institution. The terms school,
educational institution and institution mean:
(1) A vocational school or business school;
(2) A junior college, teachers' college, college, normal school,
professional school, university, or scientific or technical
institution;
(3) A public or private secondary school;
(4) A training establishment as defined in Sec. 21.4200(c); or
(5) An institution that provides specialized vocational training,
generally recognized as on the secondary school level or above, for
people with mental or physical disabilities.
(Authority: 38 U.S.C. 3501(a)(6), 3535)
* * * * *
(l) Additional definitions. The definitions of all terms that are
defined in Sec. 21.4200 but that are not defined in this section apply
to subpart C of this part.
(Authority: 38 U.S.C. 501, 3501)
* * * * *
3. In Sec. 21.3333, paragraph (c) is revised to read as follows:
Sec. 21.3333 Rates.
* * * * *
(c) Payments made to eligible persons in the Republic of the
Philippines or to certain Filipinos. When the eligible person is
pursuing training at an institution located in the Republic of the
Philippines or when an eligible child's entitlement is based on the
service of a veteran in the Philippine Commonwealth Army, or as a
Philippine Scout as defined in Sec. 3.8(b), (c), or (d) of this
chapter, payments of special training allowance made after December 31,
1994, will be made at the rate of 50 cents for each dollar authorized.
(Authority: 38 U.S.C. 3532(d), 3542, 3565)
* * * * *
Subpart D--Administration of Educational Assistance Programs
4. The authority citation for subpart D continues to read as
follows:
Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), chs. 30, 32,
34, 35, 36, unless otherwise noted.
[[Page 29296]]
Sec. 21.4155 [Amended]
5. In Sec. 21.4152, paragraph (a) is amended by removing ``Except
as provided in Sec. 21.4155 of this part, no'' and adding, in its
place, ``No''.
Sec. 21.4152 [Amended]
6. In Sec. 21.4155, paragraph (b) is removed and paragraphs (c) and
(d) are redesignated as paragraphs (b) and (c), respectively.
7. In Sec. 21.4200, paragraph (a) is revised and paragraph (w) is
added, to read as follows:
Sec. 21.4200 Definitions.
(a) School, educational institution, institution. The terms school,
educational institution and institution mean:
(1) A vocational school or business school;
(2) A junior college, teachers' college, college, normal school,
professional school, university, or scientific or technical
institution;
(3) A public or private elementary school or secondary school;
(4) A training establishment as defined in paragraph (c) of this
section; or
(5) Any entity during the period beginning on November 2, 1994, and
ending on September 30, 1996, other than an institution of higher
learning, that provides training for completion of a State-approved
alternative teacher certification program.
(Authority: 38 U.S.C. 3452)
* * * * *
(w) Alternative teacher certification program. The term alternative
teacher certification program, for the purposes of determining whether
an entity offering such a program is a school, educational institution,
or institution as defined in paragraph (a)(5) of this section, means a
program leading to a teacher's certificate that allows individuals with
a bachelor's degree or graduate degree to obtain teacher certification
without enrolling in an institution of higher learning.
(Authority: 38 U.S.C. 3452(c))
* * * * *
8. In Sec. 21.4201, paragraph (e)(3)(ii) introductory text is
amended by removing ``part 141, Title 14, Code of Federal Regulations''
in each place and adding, in its place, ``14 CFR part 141''; paragraphs
(e)(3)(ii)(B) and (e)(3)(ii)(C) are removed; paragraphs (e)(3)(ii)(D)
and (e)(3)(ii)(E) are redesignated as paragraphs (e)(3)(ii)(B) and
(e)(3)(ii)(C), respectively; and the section heading and newly
redesignated paragraph (e)(3)(ii)(C) are revised to read as follows:
Sec. 21.4201 Restrictions on enrollment; percentage of students
receiving financial support.
* * * * *
(e) * * *
(3) * * *
(ii) * * *
(C) For students enrolled in courses not approved under 14 CFR part
141, such as courses offered by flight simulator or courses for
navigator or flight engineer, shall include ground training time or
charges; actual logged instructional flight time or charges; and
instructional time in a flight simulator or charges for that training.
(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3034(d), 3680A(d))
* * * * *
9. In Sec. 21.4252, paragraph (e) is revised and paragraph (f) is
added, to read as follows:
Sec. 21.4252 Courses precluded.
* * * * *
(e) Correspondence courses. (1) VA will not approve the enrollment
of an individual under 10 U.S.C. Chapter 1606 or 38 U.S.C. Chapter 30,
32, or 35 in a correspondence course or the correspondence portion of a
correspondence-residence course unless the course is accredited and
meets the requirements of Secs. 21.4253, 21.4256, and 21.4279, as
appropriate.
(2) VA will not approve the enrollment of an eligible child under
38 U.S.C. Chapter 35 in a correspondence course or the correspondence
portion of a correspondence-residence course.
(Authority: 38 U.S.C. 3534(b))
(f) Alternative teacher certification program. VA will not approve
the enrollment of an eligible person under 38 U.S.C. Chapter 35 in an
alternative teacher certification program unless that program is
offered by an institution of higher learning as defined in
Sec. 21.4200(h).
(Authority: 38 U.S.C. 3452(c), 3501(a)(6))
* * * * *
10. In Sec. 21.4260, paragraphs (b)(2), (b)(3)(ii)(B), (b)(5), and
(b)(6) are amended by removing ``Vocational Rehabilitation and'';
paragraph (c)(1) is amended by removing ``of eligible'' and adding, in
its place, ``or eligible''; and paragraphs (c)(1)(i), (c)(1)(ii), and
(c)(2) are revised to read as follows:
Sec. 21.4260 Courses in foreign countries.
* * * * *
(c) * * *
(1) * * *
(i) The eligible person, serviceperson, veteran, or reservist meets
the eligibility and entitlement requirements of either Secs. 21.3040
through 21.3046, Secs. 21.5040 and 21.5041, Secs. 21.7040 through
21.7045, or Sec. 21.7540, as appropriate;
(ii) The eligible person's, serviceperson's, veteran's, or
reservist's program of education meets the requirements of either
Sec. 21.3021(h), Sec. 21.5230, Sec. 21.7020(b)(23), or
Sec. 21.7520(b)(17), as appropriate; and
* * * * *
(2) VA may deny or discontinue the payment of educational
assistance allowance to a veteran, serviceperson, eligible person or
reservist pursuing a course in an institution of higher learning not
located in a State when VA finds that the veteran's, serviceperson's,
eligible person's, or reservist's enrollment is not in his or her best
interest or the best interest of the Federal Government.
(Authority: 38 U.S.C. 3687)
11. In Sec. 21.4279, paragraph (b) introductory text and paragraph
(b)(1) are revised to read as follows:
Sec. 21.4279 Combination correspondence-residence program.
* * * * *
(b) Payment for pursuit of a correspondence-residence program. The
rate of educational assistance payable to a spouse or surviving spouse
under 38 U.S.C. Chapter 35 for the residence portion of a
correspondence-residence course or program shall be computed as set
forth in Secs. 21.3131(a) and 21.4270.
(1) The charges for that portion of the course or program pursued
exclusively by correspondence will be in accordance with
Sec. 21.3131(a) with 1 month entitlement charged for each $404 of cost
reimbursed.
(Authority: 38 U.S.C. 3534)
* * * * *
Subpart F-3--Service Members Occupational Conversion and Training
Program
12. The authority citation for subpart F-3 is revised to read as
follows:
Authority: 10 U.S.C. 1143 note; sec. 4481-4497, Pub. L. 102-484,
106 Stat. 2757-2769; sec. 610, Pub. L. 103-446, 108 Stat. 4673-4674,
unless otherwise noted.
13. Section 21.4820 is amended by removing paragraph (a)(3)
introductory text; redesignating paragraphs (a)(3)(i) and (a)(3)(ii) as
paragraphs (a)(3) and (a)(4), respectively; and paragraph (a)(1) and
newly redesignated paragraph (a)(4) are revised to read as follows:
Sec. 21.4820 Job training program approval.
(a) * * *
(1) The training provided under an employer's job training program
must be in a field of employment providing a
[[Page 29297]]
reasonable probability of stable, long-term employment and such
training must be provided for a period of not less than 6 months.
* * * * *
(4) If a job training program requires more than 18 months (or the
equivalent in training hours) of training to complete, the period of
training approvable for purposes of this subpart will be limited to the
first 18 months (or the equivalent in training hours) of training under
that program, or a period of training not to exceed 18 months (or the
equivalent in training hours) from the point at which the eligible
person enters the program in the case where the employer grants credit
for prior training. (See Sec. 21.4832(a)(3)).
(Authority: 10 U.S.C. 1143 note; sec. 4481-4497, Pub. L. 102-484,
106 Stat. 2757-2769, as amended by sec. 610, Pub. L. 103-446, 108
Stat. 4673-4674)
* * * * *
14. In Sec. 21.4830, paragraph (b)(2) is revised to read as
follows:
Sec. 21.4830 Entrance into training.
* * * * *
(b) * * *
(2) The eligible person may enter the job training program on or
after the date the notice of intent to hire described in paragraph (a)
of this section is submitted to VA. However, VA may not provide
assistance to the employer if, within two weeks after the date on which
the notice of intent to hire is transmitted to VA, VA disapproves the
eligible person's entry into that program due to a lack of funds.
* * * * *
15-16. In Sec. 21.4832, paragraph (d)(1) introductory text is
revised to read as follows:
Sec. 21.4832 Payments to employers.
* * * * *
(d) Limitations on amount of payments. (1) In no case will the sum
of the periodic payments and the lump-sum payment made to an employer
for all programs of training that an eligible veteran may pursue with
that employer exceed:
* * * * *
Subpart K--All Volunteer Force Educational Assistance Program
(Montgomery GI Bill--Active Duty)
17. The authority citation for subpart K is revised to read as
follows:
Authority: 38 U.S.C. 501(a), chs. 30, 36, unless otherwise
noted.
18. In Sec. 21.7020, paragraph (b)(29) is revised and paragraph
(b)(43) is added, to read as follows:
Sec. 21.7020 Definitions.
* * * * *
(b) * * *
(29) School, educational institution, institution. The terms
school, educational institution, and institution mean--
(i) Any vocational school, correspondence school, business school,
junior college, teachers' college, college, normal school, professional
school, university or scientific or technical institution;
(ii) Any public or private elementary school or secondary school
which offers courses for adults, provided that the courses lead to an
objective other than an elementary school diploma, a high school
diploma or their equivalents; and
(iii) An entity, during the period beginning on November 2, 1994,
and ending on September 30, 1996, other than an institution of higher
learning, that provides training required for completion of a State-
approved alternative teacher certification program.
(Authority: 38 U.S.C. 3002(8), 3452(c); Pub. L. 98-525, Pub. L. 103-
446)
* * * * *
(43) Alternative teacher certification program. The term
alternative teacher certification program, for the purposes of
determining whether an entity offering such a program is a school,
educational institution or institution as defined in paragraph
(b)(29)(iii) of this section, means a program leading to a teacher's
certificate that allows individuals with a bachelor's degree or
graduate degree to obtain teacher certification without enrolling in an
institution of higher learning.
(Authority: 38 U.S.C. 3452(c))
19. In Sec. 21.7045, paragraph (a)(1), paragraph (b), introductory
text, and the authority citations for paragraphs (a) and (b) are
revised, to read as follows:
Sec. 21.7045 Eligibility based on involuntary separation or voluntary
separation.
* * * * *
(a) * * *
(1) The individual--
(i) If not a member of the Coast Guard, must be on active duty or
full-time National Guard duty either on September 30, 1990, or after
November 29, 1993, or if a member of the Coast Guard, must be on active
duty after September 30, 1994, and
(ii) After February 2, 1991, must be involuntarily separated, as
that term is defined in 10 U.S.C. 1141, with an honorable discharge; or
* * * * *
(Authority: 10 U.S.C. 1141; 38 U.S.C. 3018A)
(b) Additional requirements for those individuals voluntarily
separated after October 23, 1992, or involuntarily separated. An
individual who meets the requirements of paragraph (a)(1) of this
section; or an individual who meets the requirements of paragraph
(a)(2) of this section and who either was not a member of the Coast
Guard and was separated after October 22, 1992, or who was a member of
the Coast Guard and was separated after September 30, 1994, must meet
the following additional requirements in order to establish eligibility
for educational assistance:
* * * * *
(Authority: 38 U.S.C. 3018B)
* * * * *
Sec. 21.7120 [Amended]
20. In Sec. 21.7120, paragraph (c)(1)(ii)(D) is amended by removing
``and before October 1, 1994''.
[FR Doc. 96-14363 Filed 6-7-96; 8:45 am]
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