[Federal Register Volume 65, Number 200 (Monday, October 16, 2000)]
[Rules and Regulations]
[Pages 61100-61102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26437]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI68


Reservists Education: Monthly Verification of Enrollment and 
Other Reports

AGENCIES: Department of Defense, Department of Transportation (Coast 
Guard), and Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the educational assistance and 
educational benefit regulations of the Department of Veterans Affairs 
(VA). It expands the current requirement that some reservists receiving 
educational assistance under the Montgomery GI Bill--Selected Reserve 
(MGIB-SR) verify their pursuit of a program of education monthly to 
include those reservists who are pursuing a standard college degree. At 
the same time the document reduces the number of reports VA receives 
from educational institutions. We believe this is a cost-effective way 
to reduce overpayments.

DATES: Effective Date: June 1, 2001.

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

SUPPLEMENTARY INFORMATION: In a document published in the Federal 
Register on March 31, 1998 (63 FR 15341), VA, the Department of Defense 
(DOD), and the Department of Transportation (Coast Guard) proposed 
withholding monthly payments of educational assistance under the MGIB-
SR until VA receives the reservist's monthly certification of 
enrollment in and satisfactory pursuit of a program of education. In 
addition, in keeping with statutory provisions, VA, DOD, and the Coast 
Guard proposed that when a reservist withdraws from one or more courses 
with mitigating circumstances, VA would reduce or discontinue his or 
her educational assistance on the effective date of the reduction in 
training. Furthermore, we proposed that an educational institution had 
to report changes and interruptions in a reservist's training to VA 
without delay. We sought comments under the Paperwork Reduction Act 
concerning the collections of information in proposed Secs. 21.7654 and 
21.7656.
    We gave interested persons 60 days to submit comments. We received 
no comments.
    As proposed, the rule would have authorized the Secretary to permit 
submission of the monthly certification in writing or by telephone. 
Although we received no formal comments, we have concluded that there 
is no reason that the rule should not also authorize VA to allow the 
reservist to submit the monthly verification electronically. 
Accordingly, the final rule makes a change to proposed Sec. 21.7654 by 
adding the words ``or electronically.'' Based on the rationale set 
forth in the proposed rule and in this document, we are adopting the 
provisions of the proposed rule as a final rule, with this change; with 
nonsubstantive changes for the purpose of clarification; and with a 
change to display the currently valid Office of Management and Budget

[[Page 61101]]

control numbers assigned to approved collections of information in 
Secs. 21.7654 and 21.7656.
    DOD, the Coast Guard, and VA are jointly issuing this final rule 
since it pertains to the MGIB-SR. DOD and the Coast Guard fund this 
program, and VA administers it.

Paperwork Reduction Act of 1995

    The Office of Management and Budget (OMB) has approved the 
information collection requirements in this final rule concerning 
Secs. 21.7654 and 21.7654(a) under the provisions of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3520) and has assigned OMB 
control number 2900-0597. The provisions of Secs. 21.7654 and 
21.7656(a) require a reservist to certify monthly his or her continued 
enrollment in and satisfactory pursuit of a program of education. This 
is permitted by 10 U.S.C. 16136(b) and 38 U.S.C. 3684.
    OMB has also approved the information collection requirements in 
this final rule concerning Sec. 21.7656(b) under the provisions of the 
Paperwork Reduction Act of 1995 and has assigned OMB control number 
2900-0612. The provisions of Sec. 21.7656(b) require an educational 
institution to report changes, including interruptions and 
terminations, in a reservist's training to VA without delay. This is 
required by 10 U.S.C. 16136(b) and 38 U.S.C. 3684.
    OMB assigns a control number for each collection of information it 
approves. VA may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The valid OMB control number 
assigned to each collection of information in this final rule is 
displayed at the end of each of the affected sections of the 
regulations.

Regulatory Flexibility Act

    The signers of this document hereby certify 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 may affect some educational 
institutions that are small entities. However, educational institutions 
are paid a reporting fee for making required reports to VA. 
Furthermore, VA does not believe that a burden of less than two hours 
annually would result in a significant economic impact. Pursuant to 5 
U.S.C. 605(b), this final rule, therefore, is exempt from both the 
initial and final regulatory flexibility analyses requirements of 
sections 603 and 604.
    There is no Catalog of Federal Domestic Assistance number for the 
program affected by this final rule.

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 programs, Loan programs-education, Loan 
programs-veterans, Manpower training programs, Reporting and 
recordkeeping requirements, Schools, Travel and transportation 
expenses, Veterans, Vocational education, Vocation rehabilitation.

    Approved: April 28, 2000.
Togo D. West, Jr.,
Secretary of Veterans Affairs.
    Approved: August 3, 2000.
Charles L. Cragin,
Principal Deputy Assistant Secretary of Defense for Reserve Affairs.
    Approved: September 26, 2000.
F.L. Ames,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human 
Resources.

    For the reasons set out above, 38 CFR part 21 (subpart L) is 
amended as follows:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart L--Educational Assistance for Members of the Selected 
Reserve

    1. The authority citation for part 21, subpart L continues to read 
as follows:

    Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), 512, ch. 36, 
unless otherwise noted.


    2. In Sec. 21.7635, paragraph (c)(1) introductory text is revised 
to read as follows:


Sec. 21.7635  Discontinuance dates.

* * * * *
    (c) * * *
    (1) If the reduction in the rate of training occurs other than on 
the first date of the term, VA will reduce the reservist's educational 
assistance effective on the date the reduction occurred when:
* * * * *

    3. Section 21.7654 is amended by:
    A. Adding introductory text.
    B. Revising paragraph (a).
    C. Redesignating paragraph (b) as paragraph (c).
    D. Adding a new paragraph (b).
    E. Revising the parenthetical at the end of the section.
    The additions and revisions read as follows:


Sec. 21.7654  Pursuit and absences.

    Except as provided in this section, a reservist must submit a 
verification to VA each month of his or her enrollment during the 
period for which the reservist is to be paid. This verification shall 
be in a form prescribed by the Secretary.
    (a) Exceptions to the monthly verification requirement. A reservist 
does not have to submit a monthly verification as described in the 
introductory text of this section when the reservist--
    (1) Is enrolled in a correspondence course; or
    (2) Has received an advance payment for the training completed 
during a month.

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

    (b) Items to be reported on all monthly verifications. (1) The 
monthly verification for all reservists will include a report on the 
following items when applicable:
    (i) Continued enrollment in and actual pursuit of the course;
    (ii) The date of interruption or termination of training;
    (iii) Except as provided in Sec. 21.7656(a), changes in the number 
of credit hours or in the number of clock hours of attendance;
    (iv) Nonpunitive grades; and
    (v) Any other changes or modifications in the course as certified 
at enrollment.
    (2) The verification of enrollment must:
    (i) Contain the information required for release of payment;
    (ii) If required or permitted by the Secretary to be submitted on 
paper, be signed by the reservist on or after the final date of the 
reporting period, or if permitted by the Secretary to be submitted by 
telephone or electronically in a manner designated by the Secretary, be 
submitted in the form and manner prescribed by the Secretary on or 
after the final date of the reporting period; and
    (iii) If submitted on paper, clearly show the date on which it was 
signed.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680(g))
* * * * *
(The Office of Management and Budget has approved information 
collection requirements in this section under control number 2900-
0597.)


    4. Section 21.7656 is amended by:
    A. Revising the section heading.
    B. Removing the introductory text.
    C. Redesignating paragraphs (a), (a)(1), (a)(2), (a)(3) and (b) as 
paragraphs (b), (b)(3), (b)(4), (b)(5), and (c), respectively.

[[Page 61102]]

    D. Revising the heading of newly designated paragraph (b).
    E. Adding new paragraphs (a), (b)(1), and (b)(2).
    F. Revising newly redesignated paragraph (b)(3).
    G. Revising the authority citation for the newly redesignated 
paragraph (b).
    H. Revising the parenthetical at the end of the section.
    The additions and revisions read as follows:


Sec. 21.7656  Other required reports.

    (a) Reports from reservists. (1) A reservist enrolled full time in 
a program of education for a standard term, quarter, or semester must 
report without delay to VA:
    (i) A change in his or her credit hours or clock hours of 
attendance if that change would result in less than full-time 
enrollment;
    (ii) Any change in his or her pursuit that would result in less 
than full-time enrollment; and
    (iii) Any interruption or termination of his or her attendance.
    (2) A reservist not described in paragraph (a)(1) of this section 
must report without delay to VA:
    (i) Any change in his or her credit hours or clock hours of 
attendance;
    (ii) Any change in his or her pursuit; and
    (iii) Any interruption or termination of his or her attendance.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3684)

    (b) Interruptions, terminations or changes in hours of credit or 
attendance. * * *
    (1) Except as provided in paragraph (b)(2) of this section, an 
educational institution must report without delay to VA each time a 
reservist:
    (i) Interrupts or terminates his or her training for any reason; or
    (ii) Changes his or her credit hours or clock hours of attendance.
    (2) An educational institution does not need to report a change in 
a reservist's hours of credit or attendance when:
    (i) The reservist is enrolled full time in a program of education 
for a standard term, quarter, or semester before the change; and
    (ii) The reservist continues to be enrolled full time after the 
change.
    (3) If the change in status or change in number of credit hours or 
clock hours of attendance occurs on a day other than one indicated by 
paragraph (b)(4) or (b)(5) of this section, the educational institution 
will initiate a report of the change in time for VA to receive it 
within 30 days of the date on which the change occurs.
* * * * *
(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3684)
* * * * *
(The Office of Management and Budget has approved information 
collection requirements in this section under control numbers 2900-
0612 and 2900-0597.)

[FR Doc. 00-26437 Filed 10-13-00; 8:45 am]
BILLING CODE 8320-01-U