A bill to amend title 38, United States Code, to permit the transfer of entitlement to educational assistance the Montgomery GI Bill by members of the Armed Forces, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Helping Our Professionals 
Educationally (HOPE) Act of 2001''.

SEC. 2. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE UNDER 
              MONTGOMERY GI BILL BY MEMBERS OF THE ARMED FORCES WITH 
              CRITICAL MILITARY SKILLS.

    (a) Authority To Transfer to Family Members.--(1) Subchapter II of 
chapter 30 of title 38, United States Code, is amended by adding at the 
end the following new section:
``Sec. 3020. Transfer of entitlement to basic educational assistance: 
              members of the Armed Forces with critical military skills
    ``(a) In General.--Subject to the provisions of this section, each 
Secretary concerned may, for the purpose of enhancing recruitment and 
retention of members of the Armed Forces with critical military skills 
and at such Secretary's sole discretion, permit an individual described 
in subsection (b) who is entitled to basic educational assistance under 
this subchapter to elect to transfer, in whole or in part, up to one-
half of such individual's entitlement to such assistance to the 
dependents specified in subsection (c).
    ``(b) Eligible Individuals.--An individual referred to in 
subsection (a) is any member of the Armed Forces who, at the time of 
the approval by the Secretary concerned of the member's request to 
transfer entitlement to basic educational assistance under this 
section--
            ``(1) has completed six years of service in the Armed 
        Forces;
            ``(2) either--
                    ``(A) has a critical military skill designated by 
                the Secretary concerned for purposes of this section; 
                or
                    ``(B) is in a military specialty designated by the 
                Secretary concerned for purposes of this section as 
                requiring critical military skills; and
            ``(3) enters into an agreement to serve at least four more 
        years as a member of the Armed Forces.
    ``(c) Eligible Dependents.--An individual approved to transfer an 
entitlement to basic educational assistance under this section may 
transfer the individual's entitlement as follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred to in 
        paragraphs (1) and (2).
    ``(d) Limitation on Months of Transfer.--The total number of months 
of entitlement transferred by an individual under this section may not 
exceed 18 months.
    ``(e) Designation of Transferee.--An individual transferring an 
entitlement to basic educational assistance under this section shall--
            ``(1) designate the dependent or dependents to whom such 
        entitlement is being transferred and the percentage of such 
        entitlement to be transferred to each such dependent; and
            ``(2) specify the period for which the transfer shall be 
        effective for each dependent designated under paragraph (1).
    ``(f) Time for Transfer; Revocation and Modification.--(1) Subject 
to the time limitation for use of entitlement under section 3031 of 
this title, an individual approved to transfer entitlement to basic 
educational assistance under this section may transfer such entitlement 
at any time after the approval of individual's request to transfer such 
entitlement without regard to whether the individual is a member of the 
Armed Forces when the transfer is executed.
    ``(2)(A) An individual transferring entitlement under this section 
may modify or revoke at any time the transfer of any unused portion of 
the entitlement so transferred.
    ``(B) The modification or revocation of the transfer of entitlement 
under this paragraph shall be made by the submittal of written notice 
of the action to both the Secretary concerned and the Secretary of 
Veterans Affairs.
    ``(g) Commencement of Use.--A dependent to whom entitlement to 
basic educational assistance is transferred under this section may not 
commence the use of the transferred entitlement until the following:
            ``(1) In the case of entitlement transferred to a spouse, 
        the completion by the individual making the transfer of 6 years 
        of service in the Armed Forces.
            ``(2) In the case of entitlement transferred to a child, 
        both--
                    ``(A) the completion by the individual making the 
                transfer of 10 years of service in the Armed Forces; 
                and
                    ``(B) either--
                            ``(i) the completion by the child of the 
                        requirements of a secondary school diploma (or 
                        equivalency certificate); or
                            ``(ii) the attainment by the child of 18 
                        years of age.
    ``(h) Additional Administrative Matters.--(1) The use of any 
entitlement to basic educational assistance transferred under this 
section shall be charged against the entitlement of the individual 
making the transfer at the rate of one month for each month of 
transferred entitlement that is used.
    ``(2) Except as provided under subsection (e)(2) and subject to 
paragraphs (4) and (5), a dependent to whom entitlement is transferred 
under this section is entitled to basic educational assistance under 
this subchapter in the same manner and at the same rate as the 
individual from whom the entitlement was transferred.
    ``(3) The death of an individual transferring an entitlement under 
this section shall not affect the use of the entitlement by the 
individual to whom the entitlement is transferred.
    ``(4) Notwithstanding section 3031 of this title, a child to whom 
entitlement is transferred under this section may not use any 
entitlement so transferred after attaining the age of 26 years.
    ``(5) The administrative provisions of this chapter (including the 
provisions set forth in section 3034(a)(1) of this title) shall apply 
to the use of entitlement transferred under this section, except that 
the dependent to whom the entitlement is transferred shall be treated 
as the eligible veteran for purposes of such provisions.
    ``(6) The purposes for which a dependent to whom entitlement is 
transferred under this section may use such entitlement shall include 
the pursuit and completion of the requirements of a secondary school 
diploma (or equivalency certificate).
    ``(i) Overpayment.--(1) In the event of an overpayment of basic 
educational assistance with respect to a dependent to whom entitlement 
is transferred under this section, the dependent and the individual 
making the transfer shall be jointly and severally liable to the United 
States for the amount of the overpayment for purposes of section 3685 
of this title.
    ``(2) Except as provided in paragraph (3), if an individual 
transferring entitlement under this section fails to complete the 
service agreed to by the individual under subsection (b)(3) in 
accordance with the terms of the agreement of the individual under that 
subsection, the amount of any transferred entitlement under this 
section that is used by a dependent of the individual as of the date of 
such failure shall be treated as an overpayment of basic educational 
assistance under paragraph (1).
    ``(3) Paragraph (2) shall not apply in the case of an individual 
who fails to complete service agreed to by the individual--
            ``(A) by reason of the death of the individual; or
            ``(B) for a reason referred to in section 
        3011(a)(1)(A)(ii)(I) of this title.
    ``(j) Approvals of Transfer Subject to Availability of 
Appropriations.--The Secretary concerned may approve transfers of 
entitlement to basic educational assistance under this section in a 
fiscal year only to the extent that appropriations for military 
personnel are available in the fiscal year for purposes of making 
transfers of funds under section 2006 of title 10 with respect to such 
transfers of entitlement.
    ``(k) Regulations.--The Secretary of Defense shall prescribe 
regulations for purposes of this section. Such regulations shall 
specify the manner and effect of an election to modify or revoke a 
transfer of entitlement under subsection (f)(2), and shall specify the 
manner of the applicability of the administrative provisions referred 
to in subsection (h)(5) to a dependent to whom entitlement is 
transferred under this section.
    ``(l) Annual Reports.--(1) Not later than January 31, 2003, and 
each year thereafter, each Secretary concerned shall submit to the 
Committees on Armed Services of the Senate and House of Representatives 
a report on the transfers of entitlement to basic educational 
assistance under this section that were approved by such Secretary 
during the preceding year.
    ``(2) Each report shall set forth--
            ``(A) the number of transfers of entitlement under this 
        section that were approved by such Secretary during the 
        preceding year; or
            ``(B) if no transfers of entitlement under this section 
        were approved by such Secretary during that year, a 
        justification for such Secretary's decision not to approve any 
        such transfers of entitlement during that year.
    ``(m) Secretary Concerned Defined.--Notwithstanding section 101(25) 
of this title, in this section, the term `Secretary concerned' means--
            ``(1) the Secretary of the Army with respect to matters 
        concerning the Army;
            ``(2) the Secretary of the Navy with respect to matters 
        concerning the Navy or the Marine Corps;
            ``(3) the Secretary of the Air Force with respect to 
        matters concerning the Air Force; and
            ``(4) the Secretary of the Defense with respect to matters 
        concerning the Coast Guard, or the Secretary of Transportation 
        when it is not operating as a service in the Navy.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3019 the 
following new item:

``3020. Transfer of entitlement to basic educational assistance: 
                            members of the Armed Forces with critical 
                            military skills.''.
    (b) Treatment under Department of Defense Education Benefits 
Fund.--Section 2006(b)(2) of title 10, United States Code, is amended 
by adding at the end the following:
                    ``(D) The present value of the future benefits 
                payable from the Fund as a result of transfers under 
                section 3020 of title 38 of entitlement to basic 
                educational assistance under chapter 30 of title 38.''.
    (c) Plan for Implementation.--Not later than June 30, 2002, the 
Secretary of Defense shall submit to Congress a report describing the 
manner in which the Secretaries of the military departments and the 
Secretary of Transportation propose to exercise the authority granted 
by section 3020 of title 38, United States Code, as added by subsection 
(a).

SEC. 3. AUTHORITY FOR ACCELERATED PAYMENTS OF BASIC EDUCATIONAL 
              ASSISTANCE UNDER MONTGOMERY GI BILL.

    (a) In General.--Section 3014 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c)(1)(A) Notwithstanding any other provision of this chapter and 
subject to subparagraph (B), an individual entitled to basic 
educational assistance under this subchapter may elect to receive an 
accelerated payment of the basic educational assistance allowance.
    ``(B) The Secretary may not make an accelerated payment for a 
course to an individual who has received an advance payment under 
section 3680(d) of this title for the same enrollment period.
    ``(2)(A) Pursuant to an election under paragraph (1), the Secretary 
shall make an accelerated payment to an individual for a course in a 
lump-sum amount equal to the lesser of--
            ``(i) the amount of the educational assistance allowance 
        for the month, or fraction thereof, in which the course begins 
        plus the educational assistance allowance for each of the 
        succeeding four months; or
            ``(ii)(I) in the case of a course offered on a quarter, 
        semester, or term basis, the amount of aggregate monthly 
        educational assistance allowance otherwise payable under this 
        subchapter for the course for the entire quarter, semester, or 
        term; or
            ``(II) in the case of a course that is not offered on a 
        quarter, semester, or term basis, the amount of aggregate 
        monthly educational assistance allowance otherwise payable 
        under this subchapter for the entire course.
    ``(B) In the case of an adjustment under section 3015(h) of this 
title in the monthly rate of basic educational assistance that occurs 
during a period for which an accelerated payment is made under this 
subsection, the Secretary shall pay--
            ``(i) on an accelerated basis the amount of the allowance 
        otherwise payable under this subchapter for the period without 
        regard to the adjustment under that section; and
            ``(ii) on the date of the adjustment any additional amount 
        of the allowance that is payable for the period as a result of 
        the adjustment.
    ``(3) For each accelerated payment made to an individual under this 
subsection, the individual's entitlement under this subchapter shall be 
charged at the same rate at which the entitlement would be charged if 
the individual had received a monthly educational assistance allowance 
for the period of educational pursuit covered by the accelerated 
payment.
    ``(4) The Secretary shall prescribe regulations to carry out this 
subsection. The regulations shall include the requirements, conditions, 
and methods for the request, issuance, delivery, certification of 
receipt and use, and recovery of overpayment of an accelerated payment 
under this subsection.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is six months after the date of the 
enactment of this Act, and shall apply with respect to courses of 
education beginning on or after that date.

SEC. 4. AVAILABILITY OF MONTGOMERY GI BILL BENEFITS FOR TRAINING FOR 
              TECHNOLOGICAL OCCUPATIONS OFFERED BY ENTITIES OTHER THAN 
              EDUCATIONAL INSTITUTIONS.

    (a) In General.--Section 3452(c) of title 38, United States Code, 
is amended to read as follows:
    ``(c) The term `educational institution' means the following:
            ``(1) Any public or private elementary school, secondary 
        school, vocational school, correspondence school, business 
        school, junior college, teachers' college, college, normal 
        school, professional school, university, or scientific or 
        technical institution, or other institution furnishing 
        education for adults.
            ``(2) Any entity that provides training required for 
        completion of any State-approved alternative teacher 
        certification program (as determined by the Secretary).
            ``(3) Any entity that provides, either directly or under an 
        agreement with another entity, a course or courses to fulfill 
        the requirements for the attainment of a license or certificate 
        generally recognized as necessary to obtain, maintain, or 
        advance in employment in a vocation or profession in a 
        technological occupation (as defined by the Secretary).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2001, and shall apply with respect to 
training courses, approved by the Secretary of Veterans Affairs, for 
certification for technological occupations beginning on or after that 
date.

SEC. 5. MODIFICATION OF TIME FOR USE BY CERTAIN MEMBERS OF SELECTED 
              RESERVE OF ENTITLEMENT TO CERTAIN EDUCATIONAL ASSISTANCE.

    Section 16133(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(5)(A) In the case of a person who continues to serve as member 
of the Selected Reserve as of the end of the 10-year period applicable 
to the person under subsection (a), as extended, if at all, under 
paragraph (4), the period during which the person may use the person's 
entitlement shall expire at the end of the 5-year period beginning on 
the date the person is separated from the Selected Reserve.
    ``(B) Subparagraph (A) shall not apply with respect to an 
individual otherwise described by that subparagraph who is separated 
from the armed forces under other than honorable conditions.
    ``(C) The provisions of paragraph (4) shall apply with respect to 
any period of active duty of a person referred to in subparagraph (A) 
during the 5-year period referred to in that subparagraph.''.

Summary: Helping Our Professionals Educationally (HOPE) Act of 2001 - Authorizes the Secretary of each military department to permit a member who is entitled to basic educational assistance under the Veterans Educational Assistance Program (VEAP), has served at least six years, has a critical military skill or is in a military specialty designated as critical, and agrees to serve at least four more years to transfer such assistance to one or more dependents. Allows up to 18 months of entitlement to be transferred. Prohibits a spouse from using such assistance until the transferor has completed six years of service. Prohibits a child from using such assistance until the transferor has completed ten years of service and the child has completed secondary school requirements or is 18 years of age. Authorizes a VEAP-entitled individual to elect to receive an accelerated lump-sum payment of basic educational assistance, under specified conditions. Makes Montgomery GI Bill benefits available for training which leads to licensing or certification in technological occupations. Makes members who continue in the Selected Reserve beyond the ten-year period required for entitlement to educational assistance eligible for such assistance for five years after separation from such service .