[Federal Register Volume 71, Number 6 (Tuesday, January 10, 2006)]
[Rules and Regulations]
[Pages 1496-1498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-175]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AL69


Reservists' Education: Revision of Eligibility Requirements for 
the Montgomery GI Bill--Selected Reserve

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

ACTION: Final rule.

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SUMMARY: This document amends the regulations governing the 
administration of the Montgomery GI Bill--Selected Reserve (MGIB-SR) 
program. The amendments implement provisions in the Veterans Benefits 
and Health Care Improvement Act of 2000 and the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003. The Veterans Benefits 
and Health Care Improvement Act of 2000 contained a provision that 
changed an eligibility criterion concerning the time for obtaining a 
high school diploma. The Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 expanded the MGIB-SR eligibility period from 10 
years to 14 years for reservists who first become eligible after 
September 30, 1992.

DATES: Effective Date: This final rule is effective January 10, 2006.
    Applicability Dates: The changes are applied to conform to the 
respective statutory requirements. For more information concerning the 
dates of applicability, see the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Lynn M. Nelson, Education Advisor, 
Department of Veterans Affairs (225C), 810 Vermont Ave., NW., 
Washington, DC 20420, (202) 273-7187.

SUPPLEMENTARY INFORMATION: This document amends the regulations in 38 
CFR part 21 governing the administration of the Montgomery GI Bill--
Selected Reserve (MGIB-SR) program in order to implement provisions in 
the Veterans Benefits and Health Care Improvement Act of 2000 (Pub. L. 
106-419) and the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 (Pub. L. 107-314).
    One of the criteria a reservist must meet in order to establish 
eligibility for

[[Page 1497]]

MGIB-SR benefits is receiving a high school diploma or its equivalent. 
Before the enactment of Public Law 106-419 on November 1, 2000, the 
reservist had to earn that diploma or its equivalent before completing 
Initial Active Duty for Training (IADT) in the case of an original 
enlistment, or before the date of the qualifying extension of 
enlistment or reenlistment in all other cases. Public Law 106-419 
provided instead for all reservists the requirement that they must earn 
a high school diploma or its equivalent before applying to the 
Department of Veterans Affairs (VA) for educational assistance 
benefits. We are amending various paragraphs to make them conform to 
these statutory provisions. Our amendments reflect our interpretation 
that under the statute a reservist who unsuccessfully applies for 
educational assistance before meeting this requirement would still be 
able to meet this requirement by applying again after obtaining a high 
school diploma or its equivalent.
    Generally once MGIB-SR eligibility is established, a reservist 
remains eligible for 10 years. A provision in Public Law 107-314, 
expands the 10 year eligibility period to 14 years for certain 
reservists. The 14 year eligibility period applies to reservists who 
first become eligible for the MGIB-SR program after September 30, 1992. 
This provision of Public Law 107-314 became effective October 1, 2002. 
We are amending the paragraphs that address the MGIB-SR eligibility 
period to reflect this change.
    In addition, we are amending Sec.  21.1032 of subpart B to include 
time limits for filing a claim for an extended period of eligibility 
under 10 U.S.C. chapter 1606. The time limits for chapter 1606, 
Montgomery GI Bill--Selected Reserve program, were previously stated in 
Sec.  21.7532. In 1999, when we removed Sec.  21.7532 and consolidated 
the time limit rules for all education assistance programs we 
administer into Sec.  21.1032, we inadvertently did not show chapter 
1606 in Sec.  21.1032(c). The final rule was published May 4, 1999 in 
the Federal Register (64 FR 23769-23773). The SUMMARY and SUPPLEMENTARY 
INFORMATION sections in that final rule clearly show we established 
uniform rules for all educational assistance programs the Department of 
Veterans Affairs administers. Prior to the final rule, a proposed rule 
proposing to take the action was published in the Federal Register (63 
FR 23408) on April 29, 1998.

Administrative Procedure Act

    Substantive changes made by this final rule merely reflect 
statutory requirements. 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.

Paperwork Reduction Act

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

Regulatory Flexibility Act

    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 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.

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 (adjusted annually for inflation) in any given 
year. This final rule would have no such effect on State, local, or 
tribal governments, or the private sector.

Catalog of Federal Domestic Assistance Program Numbers

    The changes made by this final rule affect the Montgomery GI Bill--
Selected Reserve. There is no Catalog of Federal Domestic Assistance 
number for the Montgomery GI--Bill Selected Reserve.

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: September 16, 2005.
Gordon H. Mansfield,
Deputy Secretary of Veterans Affairs.
    Approved: October 24, 2005.
Kenneth T. Venuto,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human 
Resources.
    Approved: December 21, 2005.
T.F. Hall,
Assistant Secretary of Defense for Reserve Affairs.

0
For the reasons set out above, 38 CFR part 21 (subparts B and L) is 
amended as set forth below.

PART 21--[AMENDED]

Subpart B--Claims and Applications for Educational Assistance

0
1. The authority citation for part 21, subpart B continues to read as 
follows:

    Authority: 38 U.S.C. 501(a), ch. 51, unless otherwise noted.


0
2. Section 21.1032 is amended by:
0
a. In paragraph (c) introductory text, removing ``under 38 U.S.C. 
chapter 30, 32, or 35.'', and adding, in its place, ``under 38 U.S.C. 
chapter 30, 32, or 35, and 10 U.S.C. chapter 1606.'' and by removing 
``Sec.  21.5042, or Sec.  21.7051'', and adding, in its place, ``Sec.  
21.5042, Sec.  21.7051, or Sec.  21.7551'';
0
b. In paragraph (c)(1), removing ``or veteran's'', and adding, in its 
place, ``veteran's, or reservist's'';
0
c. In paragraph (c)(2), removing ``or veteran's'', and adding, in its 
place, ``veteran's, or reservist's''; and
0
d. Revising the authority citation for paragraph (c).
    The revision reads as follows:


Sec.  21.1032  Time Limits.

* * * * *
    (c) * * *
    (Authority: 10 U.S.C. 16133(b); 38 U.S.C. 3031(d), 3232(a), 3512).
* * * * *

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

0
3. The authority citation for 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
4. Section 21.7540 is amended by:
0
a. Revising paragraph (a) introductory text.
0
b. In paragraph (a)(3), removing ``Reserve; and'' and adding, in its 
place, ``Reserve;''.
0
c. In paragraph (a)(4), removing ``30.'' and adding, in its place, 
``30; and''.
0
d. Adding paragraph (a)(5).
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e. Revising the authority citation at the end of paragraph (a).

[[Page 1498]]

    The revisions and addition read as follows:


Sec.  21.7540  Eligibility for educational assistance.

    (a) Basic eligibility requirements. A reservist must meet the 
requirements for a secondary school diploma (or an equivalency 
certificate) before applying for educational assistance. VA will decide 
whether a reservist met those requirements before applying for 
educational assistance. If the reservist applies before completing the 
requirements, VA will disallow the application. A reservist's premature 
application will not prevent the reservist from establishing 
eligibility at a later time by applying for educational assistance 
again after having completed the academic requirements. The Armed 
Forces will decide whether a reservist has met all the other 
eligibility criteria needed in order to receive educational assistance 
pursuant to 10 U.S.C. chapter 1606. To be eligible a reservist:
* * * * *
    (5) Must have met the requirements for a secondary school diploma 
(or an equivalency certificate) before applying for educational 
assistance.

(Authority: 10 U.S.C. 16132; 38 U.S.C. 3033(c)).
* * * * *

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5. Section 21.7550 is amended by:
0
a. Redesignating paragraphs (b) through (d) as (c) through (e).
0
b. Adding a new paragraph (b).
0
c. Revising paragraph (a).
0
d. Revising redesignated paragraph (d) and its authority citation.
0
e. Revising redesignated paragraph (e).
    The revisions read as follows:


Sec.  21.7550  Ending dates of eligibility.

    (a) Time limit on eligibility. (1) Reservists who become eligible 
before October 1, 1992. Except as provided in Sec.  21.7551 and 
paragraphs (b), (c), (d), and (e) of this section, if the reservist 
becomes eligible for educational assistance before October 1, 1992, the 
period of eligibility expires effective the earlier of the following 
dates:
    (i) The last day of the 10-year period beginning on the date the 
reservist becomes eligible for educational assistance; or
    (ii) The date the reservist is separated from the Selected Reserve.
    (2) Reservists who become eligible after September 30, 1992. Except 
as provided in Sec.  21.7551 and paragraphs (b), (c), (d), and (e) of 
this section, if a reservist becomes eligible for educational 
assistance after September 30, 1992, the period of eligibility expires 
effective the earlier of the following dates:
    (i) The last day of the 14-year period beginning on the date the 
reservist becomes eligible for educational assistance; or
    (ii) The date the reservist is separated from the Selected Reserve.

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

    (b) Extension due to active duty orders. If the reservist serves on 
active duty pursuant to an order to active duty issued under section 
12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10, U.S. Code, 
the period of this active duty plus four months shall not be considered 
in determining the time limit on eligibility found in paragraph (a) of 
this section.

(Authority: 10 U.S.C. 16133)
* * * * *
    (d) Discharge for disability. In the case of a reservist separated 
from the Selected Reserve because of a disability which was not the 
result of the individual's own willful misconduct and which was 
incurred on or after the date on which the reservist became entitled to 
education assistance, the reservist's period of eligibility expires 
effective the last day of the--
    (1) 10-year period beginning on the date the reservist becomes 
eligible for educational assistance if the reservist became eligible 
before October 1, 1992; or
    (2) 14-year period beginning on the date the reservist becomes 
eligible for educational assistance if the reservist becomes eligible 
after September 30, 1992.

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

    (e) Unit deactivated. (1) Except as provided in paragraph (e)(3) or 
(e)(4) of this section, the period of eligibility of a reservist, 
eligible for educational assistance under this subpart, who ceases to 
become a member of the Selected Reserve during the period beginning 
October 1, 1991, and ending December 31, 2001, under either of the 
conditions described in paragraph (e)(2) of this section will expire on 
the date--
    (i) 10 years after the date the reservist becomes eligible for 
educational assistance if the reservist became eligible before October 
1, 1992; or
    (ii) 14 years after the date the reservist becomes eligible for 
educational assistance if the reservist becomes eligible after 
September 30, 1992.
* * * * *


Sec.  21.7551  [Amended]

0
6. Section 21.7551 is amended by:
0
a. In paragraph (a) introductory text, removing ``Sec.  
21.7550(a)(1)'', and adding, in its place, ``Sec.  21.7550(a)'';
0
b. In paragraph (a)(1), removing ``Sec.  21.7532(e) of this part.'', 
and adding, in its place, ``Sec.  21.1033(c) of subpart B.''
0
c. In paragraph (b)(1), removing ``Sec.  21.7550(a)(1)'', and adding, 
in its place, ``Sec.  21.7550(a)''; and
0
d. In paragraph (c)(1)(ii), removing ``Sec.  21.7550(a)(1)'', and 
adding, in its place, ``Sec.  21.7550(a)''.

[FR Doc. 06-175 Filed 1-9-06; 8:45 am]
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