[Federal Register Volume 68, Number 201 (Friday, October 17, 2003)]
[Rules and Regulations]
[Pages 59729-59731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26254]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AL34


Veterans Education: Independent Study Approved for Certificate 
Programs and Other Miscellaneous Issues

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

ACTION: Final rule.

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SUMMARY: The Veterans Education and Benefits Expansion Act of 2001 
allows payment of Montgomery GI Bill--Selected Reserve (MGIB-SR) 
benefits for accredited independent study courses that lead to a 
certificate that reflects educational attainment. The certificate must 
be offered by an institution of higher learning. The Department of 
Veterans Affairs (VA) can provide MGIB-SR benefits for enrollments on 
or after December 27, 2001, in these independent study courses. We are 
also making changes in regulations in accordance with The National 
Defense Authorization Act for Fiscal Year 1998. The Act removed the 
language ``in connection with the Persian Gulf War'' and ``during the 
Persian Gulf War'' from certain sections in title 10, United States 
Code, regarding preservation of entitlement to MGIB-SR benefits for 
Selected Reserve members ordered to active duty in support of 
contingency operations. We are amending our regulations to reflect the 
statutory

[[Page 59730]]

changes. Since these changes are nothing more than restatements of 
statutes, they do not require notice and comment under 5 U.S.C. 553.

DATES: Effective Date: This final rule is effective October 17, 2003.
    Applicability Dates. The revisions to the various sections of the 
Code of Federal Regulations amended in this final rule are applied 
retroactively to conform to the effective date of the underlying 
statutory provisions. See SUPPLEMENTARY INFORMATION for further 
information about applicability dates.

FOR FURTHER INFORMATION CONTACT: Ms. Lynn M. Cossette, Education 
Advisor (225C), Education Service, Veterans Benefit Administration, 810 
Vermont Avenue, NW., Washington, DC, (202) 273-7294.

SUPPLEMENTARY INFORMATION: Before enactment of the Veterans Education 
and Benefits Expansion Act of 2001 (``Act''), VA could provide 
Montgomery GI Bill--Selected Reserve (MGIB-SR) benefits for independent 
study only when the independent study course was accredited and a part 
of a standard college degree program. The Act now allows VA to provide 
MGIB-SR benefits for accredited independent study courses that lead to 
a certificate that reflects educational attainment. This provision 
applies only to certificate programs offered by institutions of higher 
learning and for enrollments after December 26, 2001. We revised our 
regulations to reflect this change.
    We are further revising regulations to comply with changes in title 
10, U.S.C. The National Defense Authorization Act for Fiscal Year 1998 
(Pub. L. 105-85) removed the language ``during the Persian Gulf War'' 
from section 16133(b)(4), title 10, United States Code (U.S.C.). By 
removing the language, Selected Reserve members ordered to active duty 
in support of contingency operations, not just in support of the 
Persian Gulf War, became eligible for the extension of their 
eligibility period. We revised our regulations to comply with the Act, 
and the language in title 10, U.S.C.
    In addition, the Act removed ``during the Persian Gulf War'' from 
section 16131(c)(3)(B)(i), title 10, U.S.C. Section 16131(c)(3)(B)(i) 
restores MGIB-SR entitlement to Selected Reserve members who 
discontinue their education course(s) due to being ordered to active 
duty in support of contingency operations. By removing the language 
``in connection with the Persian Gulf War,'' Selected Reserve members 
who are ordered to active duty in support of contingency operations, 
not just in support of the Persian Gulf War, are eligible for 
restoration of entitlement. Generally, most individuals are eligible 
for 36 months of full-time MGIB-SR benefits. We refer to the 36 months 
of benefits as 36 months of ``entitlement''. For each day of full-time 
benefits that we pay, we deduct 1 day of entitlement. If an individual 
is called to active duty as indicated above, and has to withdraw from 
his or her course(s), VA will pay benefits up to the date of 
withdrawal. Under these circumstances, however, we will not deduct any 
entitlement if the individual received no credit for the course(s). For 
example, if an individual started a course with 36 months of benefits 
available and we paid for 2 months of benefits before the individual 
discontinued the course, we would charge 2 months of entitlement, 
leaving the individual 34 months of benefits remaining. Under 
restoration of entitlement provisions, we give back the 2 months of 
entitlement. So, although the individual received benefits for 2 
months, he or she has the same amount of benefits remaining as before 
the course started. We are revising the pertinent regulations to make 
them conform to the Act.
    Moreover, the Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Pub. L. 105-261), amended a provision affecting the 
eligibility period for certain Selected Reserve members. Generally, a 
Selected Reserve member's eligibility period ends when the member 
leaves the Selected Reserves. Before enactment of Pub. L. 105-261, if 
an individual ceased to be a member of the Selected Reserves because 
his or her unit was deactivated, or by reason of involuntarily ceasing 
to be designated as a member of the Selected Reserve pursuant to 
section 10143(a) of title 10, U.S.C., eligibility could continue beyond 
the separation date. To qualify, the member must have been 
involuntarily released during the period beginning October 1, 1991, and 
ending September 30, 1999. Pub. L. 105-261 extended the ending date 
from September 30, 1999 to September 30, 2001. Subsequently, the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 2001 (Pub. 
L. 106-398) extended the ending date from September 30, 2001 to 
December 31, 2001. However, we did not update our regulations to 
reflect the change made by Pub. L. 105-261. We are amending our 
regulations to reflect the most recent legislation, Pub. L. 106-398.
    Since the changes we made merely restate statutes, we are 
publishing this rule as a final rule without a comment period.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act (44 U.S.C. 3501-3521).

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, that 
agencies prepare an assessment of anticipated costs and benefits before 
developing any rule that may result in an expenditure by State, local, 
or tribal governments, in the aggregate, or by the private sector, of 
$100 million or more in any given year. This final rule would have no 
such effect on State, local, or tribal governments, or the private 
sector.

Executive Order 12866

    This document has been reviewed by the Office of Management and 
Budget under Executive Order 12866.

Regulatory Flexibility Act

    The Secretary of Veterans Affairs, the Secretary of Defense, and 
the Commandant of the Coast Guard 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 will directly affect only individuals 
and will not directly affect small entities. 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.

Catalog of Federal Domestic Assistance Program Numbers

    There is no Catalog of Federal Domestic Assistance number for the 
program affected by this final rule.

Lists of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights, 
Claims, Colleges and universities, Conflicts of interest, 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.


[[Page 59731]]


    Approved: May 14, 2003.
Anthony J. Principi,
Secretary of Veterans Affairs.

    Approved: June 5, 2003.
Kenneth T. Venuto,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human 
Resources.

    Approved: August 4, 2003.
Charles S. Abell,
Principal Deputy Under Secretary (Personnel and Readiness), Department 
of Defense.

0
For reasons set out in the preamble, 38 CFR part 21 (subpart L) is 
amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

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

0
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.


0
2. Section 21.7540 is amended by:
0
a. Revising paragraph (b)(3)(iii).
0
b. Redesignating paragraphs (b)(3)(iv), (b)(3)(v), (b)(3)(vi), and 
(b)(3)(vii) as paragraphs (b)(3)(v), (b)(3)(vi), (b)(3)(vii), and 
(b)(3)(viii), respectively.
0
c. Adding a new paragraph (b)(3)(iv).
0
d. Revising the authority citation at the end of paragraph (b)(3).
    The revisions and addition read as follows:


Sec.  21.7540  Eligibility for educational assistance.

* * * * *
    (b) * * *
    (3) * * *
    (iii) An accredited independent study course leading to a standard 
college degree. (See Sec.  21.7622(f) concerning enrollment in a 
nonaccredited independent study course after October 28, 1992);
    (iv) An accredited independent study course leading to a 
certificate that reflects educational attainment from an institution of 
higher learning. This provision applies to enrollment in an independent 
study course that begins on or after December 27, 2001. (See Sec.  
21.7622(f) concerning enrollment in a nonaccredited independent study 
course after October 28, 1992);
* * * * *

(Authority: 10 U.S.C. 16131, 16132, 16136; sec. 705(a)(1), Pub. L. 
98-525, 98 Stat. 2565, 2567; 38 U.S.C. 3680A)

* * * * *


0
3. Section 21.7550 is amended by:
0
a. Revising paragraph (a)(3) and the authority citation at the end of 
the paragraph.
0
b. In paragraph (d)(1), removing ``September 30, 1999,'' and adding, in 
its place, ``December 31, 2001,''.
    The revision reads as follows:


Sec.  21.7550  Ending dates of eligibility.

    (a) * * *
    (3) If the reservist serves on active duty pursuant to an order to 
active duty issued under sections 12301(a),(d),(g), 12302, or 12304 of 
title 10, U.S. Code, the period of this active duty plus 4 months shall 
not be considered in determining the time limit on eligibility found in 
paragraphs (a)(1) and (a)(2) of this section.

(Authority: 10 U.S.C. 16133)

* * * * *


0
4. Section 21.7576 is amended by revising paragraph (e)(1)(i) and the 
authority citation at the end of paragraph (e) to read as follows:


Sec.  21.7576  Entitlement charges.

* * * * *
    (e) * * *
    (1) * * *
    (i) While not serving on active duty, had to discontinue pursuit of 
a course or courses as a result of being ordered to serve on active 
duty under sections 12301(a),(d),(g), 12302, or 12304 of title 10, U. 
S. Code; and
* * * * *

(Authority: 10 U.S.C. 16131(c)(3))



0
5. Section 21.7620 is amended by revising paragraph (c)(2) to read as 
follows:


Sec.  21.7620  Courses included in programs of education.

* * * * *
    (c) * * *
    (2) Only a reservist who meets the requirements of Sec.  
21.7540(b)(1) may be paid educational assistance for an enrollment in 
an independent study course or unit subject without a simultaneous 
enrollment in a course or unit subject offered by resident training. 
The independent study course or unit subject must be accredited and 
lead to a standard college degree. Beginning with enrollments on or 
after December 27, 2001, a reservist may receive educational assistance 
for an independent study course that leads to a certificate. The 
certificate must reflect educational attainment and must be offered by 
an institution of higher learning.

(Authority: 38 U.S.C. 3680A(a)(4))

* * * * *
[FR Doc. 03-26254 Filed 10-16-03; 8:45 am]
BILLING CODE 8320-01-P