[Federal Register Volume 63, Number 120 (Tuesday, June 23, 1998)]
[Rules and Regulations]
[Pages 34127-34131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16579]



[[Page 34127]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI76


Criteria for Approving Flight Courses for Educational Assistance 
Programs

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This document amends the educational assistance and education 
benefit regulations of the Department of Veterans Affairs (VA). It 
revises the criteria to be used in approving flight courses for the 
education benefits programs VA administers. In large part, these 
amendments bring the approval criteria into agreement with various 
provisions of the Veterans' Benefits Improvements Act of 1996 and with 
the current regulations of the Federal Aviation Administration. Without 
the changes made by this document, VA would not be able to provide 
educational assistance for veterans to attend affected flight courses. 
This document also makes other changes for the purpose of 
clarification.

DATES: Effective Date: This rule is effective June 23, 1998.
    Applicability Date: August 1, 1996, for provisions affecting 
approval of courses or enrollments at flight training centers 
certificated under 14 CFR part 142.
    Comments: Comments must be received on or before August 24, 1998.

ADDRESSES: Mail or hand deliver written comments to: Director, Office 
of Regulations Management (02D), Department of Veterans Affairs, 810 
Vermont Ave., NW, Room 1154, Washington, DC 20420. Comments should 
indicate that they are submitted in response to ``RIN 2900-AI76.'' All 
written comments will be available for public inspection at the above 
address in the Office of Regulations Management, Room 1158, between the 
hours of 8:00 a.m. and 4:30 p.m., Monday through Friday (except 
holidays).

FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Education 
Advisor, Education Service (225C), Veterans Benefits Administration, 
202-273-7187.

SUPPLEMENTARY INFORMATION: VA administers education benefit programs, 
including benefit programs for flight training courses. This document 
amends subparts D and K of 38 CFR part 21, regarding criteria for 
flight training courses.
    Flight training courses may be approved for individuals entitled to 
educational assistance under the Montgomery GI Bill--Active Duty (MGIB) 
(38 U.S.C. chapter 30) and the Post-Vietnam Era Veterans' Educational 
Assistance Program (VEAP) (38 U.S.C. chapter 32), as well as for 
certain individuals under the Montgomery GI Bill--Selected Reserve 
(MGIB-SR) (10 U.S.C. chapter 1606).
    By statute, flight training courses are required to meet Federal 
Aviation Administration (FAA) standards and be FAA approved (10 U.S.C. 
16136(c)(1)(c); 38 U.S.C. 3034(d)(3) and 3241(b)(3)). VA regulations 
are changed to reflect changes to FAA standards as follows:
     FAA is changing the requirements for approving flight 
courses at flight training centers using flight simulators or advanced 
flight training devices. These courses now may be approved at flight 
training centers certificated under the new FAA standards.
     FAA no longer will approve training for both an instrument 
rating and a commercial pilot's certificate as a single course.
     FAA established a maximum for the number of hours of 
training in a flight simulator that could be counted toward the 
required minimum number of hours of experience needed for each rating.
     FAA has reorganized various provisions and changed 
terminology.
    Previously, by statute, VA could not approve the enrollment in a 
course offered by an educational institution when such course had been 
in operation for less than two years, subject to a number of 
exceptions. Public Law 104-275 repealed these statutory provisions 
(formerly at 38 U.S.C. 3689) and established new provisions at 38 
U.S.C. 3680A which state:

    (e) The Secretary may not approve the enrollment of an eligible 
veteran in a course not leading to a standard college degree offered 
by a proprietary profit or proprietary nonprofit educational 
institution if--
    (1) The educational institution has been operating for less than 
two years;
    (2) The course is offered at a branch of the educational 
institution and the branch has been operating for less than two 
years; or
    (3) Following either a change in ownership or a complete move 
outside its original general locality, the educational institution 
does not retain substantially the same faculty, student body, and 
courses as before the change in ownership or the move outside the 
general locality (as determined in accordance with regulations the 
Secretary shall prescribe) unless the educational institution 
following such change or move has been in operation for at least two 
years.

    The regulations regarding flight courses are amended to reflect 
changes in the ``two-year'' statutory provisions. Moreover, we are 
interpreting the term ``branch'' to include a flight school satellite 
base.
    This document also amends the regulations regarding the ``85-15 
percent'' requirement. Generally, VA is prohibited by statute (38 
U.S.C. 3680A(d)) from approving an enrollment of a veteran in a course 
when more than 85 percent of the students enrolled in the course are 
having all or part of their tuition, fees, or other charges paid to or 
for them by the educational institution or by VA. Under the provisions 
of 38 U.S.C. 3680A(d)(1), the Secretary may waive the ``85-15'' 
requirement, in whole or in part, if the Secretary determines, pursuant 
to regulations, it to be in the interest of the eligible veteran and 
the Federal government. Pursuant to this authority, amended 38 CFR 
21.4201(e)(3)(ii) provides for purposes of this enrollment computation 
that approved flight training under 14 CFR parts 141 and 142 at a 
flight school or flight training center will be considered as one 
course and all other approved training at a flight school or flight 
training center will be considered as one course. In many cases only 
one or two students will be enrolled in a particular flight course at a 
given flight school at any point in time. If all of the students were 
veterans, application of the ``85-15'' requirement for each course 
would produce in many instances the result of requiring disapproval of 
the enrollment of veterans in such courses. We believe that 38 CFR 
21.4201, as amended, is a reasonable approach in keeping with the 
statutory purpose of requiring a training establishment to demonstrate 
that its training is of sufficient quality to attract a certain 
percentage of nonveterans before VA will approve education benefits for 
enrollment in that training. We also believe that the rule will protect 
the right of veterans to receive this type of training while assuring 
that these courses could stand the test of the marketplace.
    Changes are also made regarding medical requirements. As amended, 
the regulations do not impose the medical requirements for a commercial 
pilot license on an individual enrolled in either a ground instructor 
certification course or a flight course which is pursued as a part of a 
standard college degree program. In our view, the VA statutory 
provisions were not intended to impose these stringent medical 
requirements for such individuals who would not be required to meet 
such medical requirements for FAA certification.
    FAA certifies flight schools to offer courses that may be given at 
certified pilot schools or certified flight training

[[Page 34128]]

centers, which also meet the basic requirements needed for course 
approval for VA training; i.e., the training is offered at an 
educational institution and the courses are generally accepted as 
necessary to qualify for a vocational objective. However, FAA standards 
also authorize instruction for various courses from a flight instructor 
who is not affiliated with either a certificated pilot school or a 
certificated training center. That authorization would not meet the 
basic statutory requirements needed for approval for VA training, in 
that the training would not be offered by an ``educational 
institution.'' Therefore, under 38 CFR 21.4263(e), instruction by a 
non-affiliated flight instructor would not be approved for VA purposes.
    FAA standards require that a student either enroll in an instrument 
rating course before enrolling in a commercial pilot certification 
course, or that a student enroll in both courses simultaneously and 
finish the instrument rating course first. VA regulations are amended, 
with certain exceptions, to provide that, in order to receive VA 
educational assistance, a student must enroll in both courses 
simultaneously. By statute (38 U.S.C. 3452), an individual receiving VA 
educational assistance must be pursuing a vocational, educational, or 
professional objective. If the instrument rating course were allowed to 
be taken first, there would be no assurance that it was taken for 
purposes of reaching a vocational, educational, or professional 
objective. Instead, it could be taken merely to add a rating to a 
private pilot certificate, which is not considered evidence of such an 
objective. By requiring that both courses be taken simultaneously, VA 
is helping to ensure that a student has made a commitment and is using 
his or her benefits to achieve a vocational objective.
    There are three exceptions to the requirement for enrollment in an 
instrument rating course simultaneously with the commercial pilot 
certification course. These exceptions apply to an individual who is 
pursuing a standard college degree and who is taking flight training as 
part of the degree program; to an individual who already has a 
commercial pilot certificate; and to an individual who is enrolling in 
a ground instructor certification course. The respective reasons for 
the exceptions are: an individual who is pursuing a college degree is 
pursuing an educational objective; an individual who adds an instrument 
rating to a commercial pilot certificate is following recognized and 
accepted industry requirements for an advanced vocational objective in 
the field of aviation; and an individual becoming a qualified ground 
instructor, by definition, is pursuing a vocational objective.
    Nonsubstantive changes are made for purposes of clarification and 
consistency with FAA terminology.
    Consistent with the effective date of the FAA regulations adding 14 
CFR part 142, the date of applicability for provisions affecting 
approval of courses or enrollments at flight training centers 
certificated under 14 CFR part 142 is August 1, 1996.

Administrative Procedure Act

    Many of the changes made by this interim final rule constitute 
nonsubstantive changes and interpretations of law. Those changes are 
not subject to the requirements of 5 U.S.C. 553 for notice and comment 
and 30-day delay of effective date. For the remainder of the changes, 
pursuant to 5 U.S.C. 553, we have found good cause to dispense with 
notice and comment on this interim final rule and to dispense with a 
30-day delay of its effective date and have found that notice and 
comment and a 30-day delay of its effective date would be unnecessary, 
impracticable, and contrary to the public interest. Those changes are 
based on the critical need to conform VA rules to FAA rules and 
practice to enable VA to provide educational assistance for training 
needed for certain educational objectives. In the absence of the 
amendments to VA regulations, VA is unable, due to changes in FAA rules 
and practice, to provide educational assistance for certain flight 
course enrollments.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking was required in connection 
with the adoption of this interim final rule, no regulatory flexibility 
analysis is required under the Regulatory Flexibility Act (5 U.S.C. 601 
et seq.). Even so, the Secretary of Veterans Affairs hereby certifies 
that this 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 rule would permit VA 
to continue to pay educational assistance for veterans enrolled in 
flight courses at pilot schools, flight training centers, and 
institutions of higher education that offer flight courses. While 
changes caused by this rule would affect how many veterans would be 
enrolled in flight courses, the change in the number of veterans would 
not significantly affect the total number of students enrolled in 
flight courses, nor would this rule otherwise have more than a 
minuscule economic impact on any entity. Pursuant to 5 U.S.C. 605(b), 
this rule, therefore, is exempt from the initial and final regulatory 
flexibility analyses requirements of Secs. 603 and 604.
    The Catalog of Federal Domestic Assistance numbers for programs 
affected by this rule are 64.120 and 64.124. This rule also affects the 
Montgomery GI Bill--Selected Reserve program, which has no Catalog of 
Federal Domestic Assistance number.

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, Educational institutions, 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 12, 1998.
Togo D. West, Jr.,
Secretary.

    For the reasons set forth in the preamble, 38 CFR part 21 (subparts 
D and K) is amended as set forth below:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart D--Administration of Educational Assistance Programs

    1. The authority for part 21, 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.

    2. In Sec. 21.4200, paragraphs (x) and (y) are added to read as 
follows:


Sec. 21.4200  Definitions.

* * * * *
    (x) State. The term State has the same meaning as provided in 
Sec. 3.1(i) of this chapter.

(Authority: 38 U.S.C. 101(20))

    (y) Pilot certificate. A pilot certificate is a pilot certificate 
issued by the Federal Aviation Administration. The term means a pilot's 
license as that term is used in 10 U.S.C. chapter 1606 and 38 U.S.C. 
chapters 30 and 32.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3034(d), 3241(b))


[[Page 34129]]


    3. In Sec. 21.4201, paragraph (e)(3)(ii) is revised to read as 
follows:


Sec. 21.4201  Restrictions on enrollment; percentage of students 
receiving financial support.

* * * * *
    (e) * * *
    (3) * * *
    (ii) The 85-15 percent ratio for flight courses shall be computed 
by comparing the number of hours of training received by or tuition 
charged to nonsupported students in the preceding 30 days to the total 
number of hours of training received by or tuition charged to all 
students in the same period. All approved courses offered under 14 CFR 
parts 141 and 142 at a flight school will be considered to be one 
course for the purpose of making this computation. Similarly, all other 
approved courses offered at a flight school will be considered to be 
one course for the purpose of making this computation. In this 
computation hours of training or tuition charges for students 
enrolled--
    (A) In the recreational pilot certification course and the private 
pilot certification course will be excluded;
    (B) In a ground instructor certification course will be included;
    (C) In courses approved under 14 CFR part 141, other than a ground 
instructor certification course, will be actual hours of logged 
instructional flight time or the charges for those hours; and
    (D) 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.
* * * * *
    4. In Sec. 21.4233, paragraph (e) is revised; and an authority 
citation is added to paragraph (e) to read as follows:


Sec. 21.4233  Combination.

* * * * *
    (e) Contract. All or part of the program of education of a school 
may be provided by another school or entity under contract. Such school 
or entity actually providing the training must obtain approval of the 
course from the State approving agency in the State having jurisdiction 
of that school or entity. If the course is a course of flight training, 
the school or entity actually providing the training must also obtain 
approval of the course from the Federal Aviation Administration. 
Measurement of the course and payment of an allowance will be 
appropriate for the course as offered by the school or entity actually 
providing the training.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3002(8), 3034(d), 3202(4), 
3241(b), 3452(c), 3501(a)(6), 3675, 3676)

    5. Section 21.4235 is added to read as follows:


Sec. 21.4235  Programs of education that include flight training.

    VA will use the provisions of this section to determine whether an 
individual may be paid educational assistance for pursuit of flight 
training. See Sec. 21.4263 for approval of flight courses for VA 
training.
    (a) Eligibility. A veteran or servicemember who is otherwise 
eligible to receive educational assistance under 38 U.S.C. chapter 30 
or 32, or a reservist who is eligible for expanded benefits under 10 
U.S.C. chapter 1606 as provided in Sec. 21.7540(b), may receive 
educational assistance for flight training in an approved course 
provided that the individual meets the requirements of this paragraph. 
Except when enrolled in a ground instructor certification course or 
when pursuing flight training under paragraph (f) of this section, the 
individual must--
    (1) Possess a valid private pilot certificate or higher pilot 
certificate such as a commercial pilot certificate;
    (2) Hold a second-class medical certificate on the first day of 
training, and continuously during training unless the individual is 
enrolled in an Airline Transport Pilot (ATP) certification course; and
    (3) If enrolled in an ATP certification course, hold a first-class 
medical certificate on the first day of training and continuously 
during training.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3034(d), 3241(b))

    (b) Approval of program. VA may approve the individual's program of 
education as described on the individual's application if:
    (1) The flight courses that constitute the program of education 
meet Federal Aviation Administration standards for such courses and the 
Federal Aviation Administration and the State approving agency approve 
them; and
    (2) The flight training included in the program--
    (i) Is generally accepted as necessary for the attainment of a 
recognized vocational objective in the field of aviation; or
    (ii) Is given by an educational institution of higher learning for 
credit toward a standard college degree that the individual is 
pursuing.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3002(3)(A), 3034(a), 
3202(2)(A), 3241(a), 3241(b), 3452(b), 3680A(a)(3))

    (c) Pursuit of a program of education. (1) Except as provided in 
paragraph (c)(2) of this section, an individual who is pursuing a 
program of education described in paragraph (b)(2)(i) of this section 
must first enroll in a commercial pilot certification course. If the 
individual wants to obtain a commercial pilot certification course in 
an airplane or powered lift category and does not already have an 
instrument rating, he or she must also enroll in an instrument rating 
course simultaneously with the commercial pilot course.
    (2) The provisions of paragraph (c)(1) of this section do not apply 
to an individual who--
    (i) Already has a commercial pilot certificate; or
    (ii) Wishes to become a ground instructor through an enrollment in 
a ground instructor certification course.
    (3) Unless the provisions of paragraph (b)(1)(ii), (c)(2)(i), or 
(c)(2)(ii) of this section apply to an individual's enrollment, VA will 
not pay for any enrollment in a flight course that precedes enrollment 
in a commercial pilot certification course.
    (4) Except for the enrollment described in paragraph (c)(1) of this 
section, the individual must enroll in only one flight course at a 
time.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3002(3)(A), 3034(a), 
3202(2)(A), 3241(a), 3241(b), 3452(b), 3680A(a)(3))

    (d) Some individuals are already qualified for a flight course 
objective. (1) The provisions of Secs. 21.5230(a)(4), 21.7110(b)(4), 
and 21.7610(b)(4), prohibiting payment of educational assistance for 
enrollment in a course for whose objective the individual is already 
qualified, apply to enrollments in flight courses.
    (2) A former military pilot with the equivalent of a commercial 
pilot certificate and an instrument rating may obtain a commercial 
pilot certificate and instrument rating from the Federal Aviation 
Administration without a flight exam within 12 months of release from 
active duty. Therefore, VA will consider such a veteran to be already 
qualified for the objectives of a commercial pilot certification course 
and an instrument rating course if begun within 12 months of the 
individual's release from active duty.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3241(b), 
3471(4))

    (e) Some flight courses are refresher training. The provisions of 
Secs. 21.5230(c), 21.7020(b)(26),

[[Page 34130]]

21.7122(b), 21.7520(b)(20), and 21.7610(b)(4) that provide limitations 
on payment for refresher training that is needed to update an 
individual's knowledge and skill in order to cope with technological 
advances while he or she was on active duty service apply to flight 
training.
    (1) An individual who held a Federal Aviation Administration 
certificate before or during active duty service may have surrendered 
that certificate or the Federal Aviation Administration may have 
canceled it. The individual may receive the equivalent of the number of 
months of educational assistance necessary to complete the course that 
will qualify him or her for the same grade certificate.
    (2) A reservist is not eligible for refresher training unless he or 
she has had prior active duty.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3002(3)(A), 3034(a)(3), 
3202(2)(A), 3241(a), 3241(b))

    (f) Flight training at an institution of higher learning. (1) An 
individual who is eligible for educational assistance under 10 U.S.C. 
chapter 1606 or 38 U.S.C. chapter 30, 32, or 35 is exempt from the 
provisions of paragraphs (a)(2) through (d) of this section when his or 
her courses include flight training that is part of a program of 
education that leads to a standard college degree.
    (2) An individual described in paragraph (f)(1) of this section may 
pursue courses that may result in the individual eventually receiving 
recreational pilot certification or private pilot certification, 
provided that the courses also lead to a standard college degree.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3002(3)(A), 3034(a)(3), 
3202(2)(A), 3241(a), 3241(b))

    6. In Sec. 21.4263, paragraphs (h), (i), (j), and (k) are 
redesignated as paragraphs (i), (j), (k), and (l), respectively; newly 
redesignated paragraph (i) introductory text is amended by removing 
``(g)(3)'' and adding, in its place, ``(e)'' and by removing ``(h)(1)'' 
and adding, in its place, ``(i)(1)'; newly redesignated paragraph 
(i)(1) introductory text is amended by removing ``(h)(4)'' and adding, 
in its place, ``(i)(4)'; newly redesignated paragraph (i)(2) is amended 
by removing ``H'' and adding, in its place ``J'; newly redesignated 
paragraph (i)(4)(i) is amended by removing ``(h)(1)(ii)'' and adding, 
in its place ``(i)(1)(ii)'; the authority citation for newly 
redesignated paragraph (i)(4)(ii) is removed; newly redesignated 
paragraph (i)(4)(iii) is amended by removing ``(h)(1)(i)'' and adding, 
in its place, ``(i)(1)(i)'; newly redesignated paragraph (j) 
introductory text is amended by removing ``(h)(1)(i)'' and adding, in 
its place, ``(i)(1)(i)'; the section heading, paragraphs (a), (b), (c), 
(d), (e), (f), and (g), newly redesignated paragraphs (i)(1)(iii), and 
(l), and the authority citations for newly redesignated paragraphs (i) 
introductory text, (i)(1), (i)(2), (i)(3), (i)(4), (j)(3), (j)(4), and 
(k) are revised; and new paragraphs (h) and(i)(1)(iv), and authority 
citations for newly redesignated paragraphs (j)(1) and (j)(2) are 
added, to read as follows:


Sec. 21.4263  Approval of flight training courses.

    (a) A flight school or institution of higher learning are the only 
entities that can offer flight courses. A State approving agency may 
approve a flight course only if a flight school or an institution of 
higher learning offers the course. A State approving agency may not 
approve a flight course if an individual instructor offers it. The 
provisions of Sec. 21.4150 shall determine the proper State approving 
agency for approving a flight course.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3032(d), 3241(b), 3671, 
3672, 3676)

    (b) Definition of flight school. A flight school is a school, other 
than an institution of higher learning, or is an entity, such as an 
aero club; is located in a State; and meets one of the following sets 
of requirements:
    (1) The Federal Aviation Administration has issued the school or 
entity either a pilot school certificate or a provisional pilot school 
certificate specifying each course the school is approved to offer 
under 14 CFR part 141;
    (2) The entity is either a flight training center or an air carrier 
that does not have a pilot school certificate or provisional pilot 
school certificate issued by the Federal Aviation Administration under 
14 CFR part 141, but pursuant to a grant of exemption letter issued by 
the Federal Aviation Administration under 14 CFR part 61 is permitted 
to offer pilot training by a flight simulator instead of an actual 
aircraft; or
    (3) The Federal Aviation Administration has issued the school or 
entity a training center certificate under 14 CFR part 142.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3452(c))

    (c) Aero club courses. An aero club, established, formed, and 
operated under authority of service department regulations as a 
nonappropriated sundry fund activity, is an instrumentality of the 
Federal government. Consequently, VA has exclusive jurisdiction over 
approval of flight courses offered by such aero clubs.

(Authority: 38 U.S.C. 3671, 3672)

    (d) Approval of flight training as part of a degree program. A 
State approving agency may approve a flight training course that is 
part of a program of education leading to a standard college degree 
provided the course and program meet the requirements of Sec. 21.4253 
or Sec. 21.4254, as appropriate. The institution of higher learning 
offering the course need not be a flight school.

(Authority: 38 U.S.C. 3675, 3676)

    (e) Approval of flight training courses that are not part of a 
degree program. A flight course is subject to the same approval 
requirements as any other course. In addition, the State approving 
agency must apply the following provisions to the approval of flight 
courses:
    (1) The Federal Aviation Administration must approve the course; 
and
    (2)(i) The course must meet the requirements of 14 CFR part 63 or 
141, and a flight school described in paragraph (b)(1) or (b)(3) of 
this section must offer it; or
    (ii) The course must meet the requirements of 14 CFR part 61, and 
either be offered--
    (A) By a flight school described in paragraph (b)(3) of this 
section; or
    (B) In whole or in part by a flight simulator pursuant to a grant 
of exemption letter issued by the Federal Aviation Administration to 
the flight school offering the course.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3034(d), 3241(b), 3676, 
3680A)

    (f) Application of 38 U.S.C. 3680A(e)(2) to flight training. 
Notwithstanding the fact that the Federal Aviation Administration will 
permit flight schools to conduct training at a base other than the main 
base of operations if the requirements of either 14 CFR 141.91 or 14 
CFR 142.17 are met, the satellite base is considered under 38 U.S.C. 
3680A(e)(2) to be a branch of the principal school, and must meet the 
requirements of 38 U.S.C. 3680A(e)(2).

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3241(b), 
3680A))

    (g) Providing a flight course under contract between schools or 
entities. When a school or entity offers all or part of a flight course 
under a contract with another school or entity, the State approving 
agency must apply Sec. 21.4233 in the following manner:
    (1) The requirements of Sec. 21.4233(e) must be met for all 
contracted flight

[[Page 34131]]

instruction, instruction by flight training device, flight simulator 
instruction, and ground school training. Ground school training may be 
given through a ground school facility operated jointly by two or more 
flight schools in the same locality; and
    (2) The responsibility for providing the instruction lies with the 
flight school. The degree of affiliation between the flight school and 
the entity or other school that actually does the instructing must be 
such that all charges for instruction are made by, and paid to, one 
entity having jurisdiction and control over both the flight and ground 
portions of the program.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3032(d), 3241(b))

    (h) Nonaccredited courses. (1) Application of Sec. 21.4254 to 
flight training. The provisions of Sec. 21.4254 are applicable to 
approval of flight training courses.
    (2) Additional instruction requirements. The State approving agency 
will apply the following additional requirements to a flight course:
    (i) All flight instruction, instruction by flight training device, 
flight simulator instruction, preflight briefings and postflight 
critiques, and ground school training in a course must be given by the 
flight school or under suitable arrangements between the school and 
another school or entity such as a local community college.
    (ii) All ground school training connected with the course must be 
in residence under the direction and supervision of a qualified 
instructor providing an opportunity for interaction between the 
students and the instructor. Simply making provision for having an 
instructor available to answer questions does not satisfy this 
requirement.

(Authority: 38 U.S.C. 3676)

    (i) * * *

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3002(3), 3202(2), 3452(b))

    (1) * * *
    (iii) The maximum number of hours of instruction by flight 
simulator or flight training device that a State approving agency may 
approve is the maximum number of hours of instruction by flight 
simulator or flight training device permitted by 14 CFR part 61 for 
that course when:
    (A) A course is offered in whole or in part by flight simulator or 
flight training device conducted by a training center certificated 
under 14 CFR part 142; and
    (B) 14 CFR part 61 contains a maximum number of hours of 
instruction by flight simulator or flight training device that may be 
credited toward the requirements of the rating or certificate that is 
the objective of the course.
    (iv) If a course is offered in whole or in part by flight simulator 
or flight training device, and the course is not described in paragraph 
(i)(1)(iii) of this section, either because the course is offered by a 
flight training center with a grant of exemption letter, or because 14 
CFR part 61 does not contain a maximum number of hours of instruction 
by flight simulator or flight training device, the maximum number of 
hours of instruction by flight simulator or flight training device that 
may be approved may not exceed the number of hours in the Federal 
Aviation Administration-approved outline.

(Authority: 10 U.S.C. 16131(g); 38 U.S.C. 3032(f), 3231(f))

    (2) * * *

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3002(3), 3202(2), 3452(b))

    (3) * * *

(Authority: 10 U.S.C. 16131(f)(4); 16136(c), 38 U.S.C. 3002(3), 
3032(f)(4), 3202(2), 3231(f)(4), 3452(b))

    (4) * * *

(Authority: 10 U.S.C. 16131(f)(4); 38 U.S.C. 3032(f)(4), 3231(f)(4))

    (j) * * *
    (1) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(d), 3241(c), 
3690(a)(1))

    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(d), 3241(c), 
3690(a)(1))

    (3) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(d), 3241(c), 
3690(a)(1))

    (4) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(d), 3241(c), 
3690(a)(1))

    (k) * * *

(Authority: 10 U.S.C. 16136(b), 16136(c); 38 U.S.C. 3034(d), 
3672(a))

    (l) Enrollment limitations. A flight course must meet the 85-15 
percent ratio requirement set forth in Sec. 21.4201 before VA may 
approve new enrollments in the course. The contracted portion of a 
flight course must meet all the requirements of Sec. 21.4201 for each 
subcontractor.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(d), 3241(c), 
3680A(d))

Subpart K--All Volunteer Force Educational Assistance Program 
(Montgomery GI Bill--Active Duty)

    7. The authority for part 21, subpart K continues to read as 
follows:

    Authority: 38 U.S.C. 501(a), chs. 30, 36, unless otherwise 
noted.

    8. In Sec. 21.7220, paragraph (c) is amended by removing ``Flight 
training when administering'' and adding, in its place, ``when 
approving'.

[FR Doc. 98-16579 Filed 6-22-98; 8:45 am]
BILLING CODE 8320-01-P