A bill to amend title 38, United States Code, to improve benefits under the Montgomery GI Bill by establishing an enhanced educational assistance program and by repealing the requirement for reduction in pay for participation in the program, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Montgomery GI Bill Revitalization 
Act of 2003''.

SEC. 2. ENHANCED BENEFITS UNDER MONTGOMERY GI BILL FOR FOUR YEARS OF 
              ACTIVE-DUTY SERVICE.

    (a) In General.--Chapter 30 of title 38, United States Code, is 
amended by adding at the end the following new subchapter:
    ``SUBCHAPTER V--ENHANCED EDUCATIONAL ASSISTANCE
``Sec. 3041. Enhanced educational assistance entitlement
    ``(a) Entitlement.--An eligible individual is entitled to enhanced 
educational assistance under this subchapter.
    ``(b) Eligible Individual Defined.--For purposes of this 
subchapter, the term `eligible individual' means an individual who 
meets the service requirement described in subsection (c) and whose 
status after completion of such service is described in section 
3011(a)(2) of this title. Such term does not include an individual 
described in paragraph (1) or (2) of section 3011(c) of this title.
    ``(c) Service Requirement.--(1) The service requirement referred to 
in subsection (b) is as follows:
            ``(A) After September 30, 2003, the individual--
                    ``(i) first enters on active duty;
                    ``(ii) reenlists or extends an enlistment on active 
                duty as a member of the Armed Forces; or
                    ``(iii) in the case of an officer, continues to 
                serve on active duty after that date.
            ``(B) From the date of such entry, reenlistment, extension, 
        or continuation, as the case may be, the individual--
                    ``(i) serves a continuous period of active duty of 
                at least four years in the Armed Forces; or
                    ``(ii) serves on active duty in the Armed Forces 
                and is discharged or released from active duty--
                            ``(I) as provided in subclause (I) of 
                        section 3011(a)(1)(A)(ii) of this title;
                            ``(II) for the convenience of the 
                        Government, after having completed not less 
                        than 42 months of continuous active duty; or
                            ``(III) as provided in subclause (III) of 
                        section 3011(a)(1)(A)(ii) of this title.
    ``(2) In determining service under paragraph (1), the following 
rules apply:
            ``(A) Any period of service described in paragraph (2) or 
        (3) of section 3011(d) of this title that applies to an 
        eligible individual under this section shall not be considered 
        a part of the individual's period of active duty.
            ``(B) A member described in paragraph (2) of section 
        3011(f) of this title who serves the periods of active duty 
        referred to in such paragraph shall be deemed to have served a 
        continuous period of active duty the length of which is the 
        aggregate length of the periods of active duty referred to in 
        such paragraph.
            ``(C) Subsections (g) and (h) of section 3011 of this title 
        apply with respect to an eligible individual under this section 
        in the same manner as they apply to an individual under section 
        3011 of this title.
    ``(d) Election of Basic Educational Assistance.--(1) An eligible 
individual entitled to enhanced educational assistance under this 
subchapter may elect (in a form and manner prescribed by the Secretary) 
to receive basic educational assistance under subchapter II in lieu of 
such enhanced educational assistance for an enrollment period. Such an 
election shall be made not later than 30 days before the beginning of 
the enrollment period.
    ``(2) An eligible individual may revoke an election made pursuant 
to paragraph (1), but in no case may such revocation be made later than 
30 days before the beginning of the enrollment period.
``Sec. 3042. Duration of enhanced educational assistance
    ``(a) In General.--Subject to section 3695 of this title and except 
as provided in subsection (b), each individual entitled to enhanced 
educational assistance under section 3041 of this title is entitled to 
a monthly enhanced educational assistance allowance under this 
subchapter for a period or periods not to exceed a total of 36 months 
(or the equivalent thereof in part-time enhanced educational 
assistance).
    ``(b) Special Rule for Certain Early Separations.--Subject to 
section 3695 of this title, in the case of an individual described in 
subclause (I) or (III) of section 3041(c)(1)(B)(ii) of this title who 
does not serve a continuous period of active duty of at least four 
years in the Armed Forces (as described in section 3041(c)(1)(B)(i) of 
this title), the individual is entitled to one month of enhanced 
educational assistance benefits under this subchapter (not to exceed a 
total of 36 months (or the equivalent thereof in part-time enhanced 
educational assistance)) for each month of continuous active duty 
served by the individual beginning with the date on which the entry on 
active duty, reenlistment, enlistment extension, or continuation 
applicable to that individual under section 3041(c)(1)(A) of this title 
begins.
``Sec. 3043. Payment of educational expenses
    ``(a) In General.--(1) Subject to paragraph (2), the Secretary 
shall pay to the educational institution providing a course under an 
approved program of education to an eligible individual under this 
subchapter who is enrolled in the course the actual cost of tuition and 
fees otherwise payable by the individual.
    ``(2) Such cost may not exceed the amount charged to similarly 
circumstanced nonveterans.
    ``(b) Stipend; Costs of Books and Supplies.--The Secretary shall 
pay to each eligible individual under this subchapter who is pursuing 
an approved program of education--
            ``(1) a stipend as provided in section 3044 of this title; 
        and
            ``(2) in accordance with regulations prescribed by the 
        Secretary, an amount equal to the average cost of books and 
        supplies payable by individuals pursuing courses of education 
        at educational institutions.
    ``(c) Exclusion From Income for Eligibility Determinations for 
Federal Educational Loans.--Notwithstanding any other provision of law, 
amounts payable by the Secretary under this subchapter with respect to 
an eligible individual shall not be considered as income for purposes 
of determining eligibility of such individual for education grants or 
loans under any other provision of Federal law.
``Sec. 3044. Amount of stipend
    ``(a) In General.--Except as provided in section 3042 of this 
title, the stipend under this subchapter shall be paid at a monthly 
rate (as that rate may be increased pursuant to subsection (b)) as 
follows:
            ``(1) At the monthly rate of $900 for an approved program 
        of education pursued on a full-time basis.
            ``(2) At the monthly rate of $700 for an approved program 
        of education pursued on a three-quarter-time basis.
            ``(3) At the monthly rate of $500 for an approved program 
        of education pursued on a half-time basis.
            ``(4) At the monthly rate of $300 for an approved program 
        of education pursued on less than a half-time basis.
    ``(b) Adjustment for Inflation.--With respect to any fiscal year 
beginning after fiscal year 2004, the Secretary shall increase the rate 
paid under subsection (a) for the previous fiscal year by the 
percentage applicable under section 3015(h) of this title.
``Sec. 3045. Tutorial assistance
    ``An individual entitled to an enhanced educational assistance 
allowance under this subchapter shall be entitled to benefits provided 
an individual under section 3019 of this title, subject to the 
conditions provided in such section.''.
    (b) Conforming Amendments.--(1) Section 3002 of such title is 
amended by inserting at the end the following new paragraph:
    ``(9) The term `enhanced educational assistance' means educational 
assistance provided under subchapter V.''.
    (2) Section 3011 of such title is amended in subsection (f)(1) and 
(g) by striking ``chapter'' each place it appears and inserting 
``subchapter''.
    (3) Section 3018A(a) of such title is amended by striking 
``education assistance under this chapter'' and inserting ``educational 
assistance under this subchapter''.
    (4) Section 3018B of such title is amended by striking ``education 
assistance under this chapter'' each place it appears and inserting 
``educational assistance under this subchapter''.
    (5) Section 3018C of such title is amended by striking 
``educational assistance under this chapter'' each place it appears and 
inserting ``educational assistance under this subchapter''.
    (6) Section 3019 of such title is amended by striking ``chapter'' 
each place it appears and inserting ``subchapter''.
    (7) Section 3031 of such title is amended--
            (A) in subsection (f), by inserting ``or 3042 of this 
        title'' after ``section 3013'' each place it appears; and
            (B) in subsection (h), by inserting ``or 
        3031(c)(1)(B)(ii)(III)'' after ``section 
        3011(a)(1)(A)(ii)(III)''.
    (8) Section 3032(e)(3) of such title is amended by inserting ``, or 
section 3044(a)(1),'' after ``section 3015''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 30 of such title is amended by adding at the end the following 
new items:

            ``SUBCHAPTER V--ENHANCED EDUCATIONAL ASSISTANCE

``3041. Enhanced educational assistance entitlement.
``3042. Duration of enhanced educational assistance.
``3043. Payment of educational expenses.
``3044. Amount of stipend.
``3045. Tutorial assistance.''.

SEC. 3. REPEAL OF PAY REDUCTION, ELECTION OF BENEFITS, AND HIGH SCHOOL 
              GRADUATION REQUIREMENT FOR PARTICIPATION IN BASIC 
              EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL.

    (a) Repeal of Pay Reduction and Election of Benefits.--
            (1) Active duty program.--(A) Section 3011 of title 38, 
        United States Code, is amended--
                    (i) by striking subsection (b); and
                    (ii) in subsection (c), by striking paragraph (1) 
                and redesignating paragraphs (2) and (3) as paragraphs 
                (1) and (2), respectively.
            (B) Section 3012 of such title is amended--
                    (i) by striking subsection (c); and
                    (ii) in subsection (d), by striking paragraph (1) 
                and redesignating paragraphs (2) and (3) as paragraphs 
                (1) and (2), respectively.
            (2) Opportunities to withdraw election not to enroll.--(A) 
        Section 3016(a)(1) of such title is amended by striking ``, and 
        does not make an election under section 3011(c)(1) or section 
        3012(d)(1)''.
            (B) Sections 3018A and 3018B of such title are each amended 
        by adding at the end the following new subsection:
    ``(e) Notwithstanding subsection (b), no reduction in the pay of an 
individual under this section shall be made for months beginning after 
September 30, 2003. Any obligation of such individual under subsection 
(b) as of such date shall be deemed to be fully satisfied as of such 
date.''.
            (C)(i) Section 3018C(e) of such title is amended--
                    (I) by striking paragraphs (3) and (4); and
                    (II) by redesignating paragraph (5) as paragraph 
                (3).
            (ii) Section 3018C of such title is amended by adding at 
        the end the following new subsection:
    ``(f) Notwithstanding subsection (b), no reduction in the pay of an 
individual under this section shall be made for months beginning after 
September 30, 2003. Any obligation of such individual under subsection 
(b) as of such date shall be deemed to be fully satisfied as of such 
date.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on October 1, 2003, and apply to individuals 
        whose initial obligated period of active duty under section 
        3011 or 3012 of title 38, United States Code, as the case may 
        be, begins on or after such date.
            (4) Termination of pay reductions in progress.--Any 
        reduction in the basic pay of an individual referred to in 
        subsection (b) of section 3011 of title 38, United States Code, 
        by reason of such subsection, or of any individual referred to 
        in subsection (c) of section 3012 of such title by reason of 
        such subsection, shall cease commencing with months beginning 
        after September 30, 2003, and any obligation of such individual 
        under such subsections, as the case may be, as of such date 
        shall be deemed to be fully satisfied as of such date.
    (b) Repeal of High School Graduation Requirement.--
            (1) Active duty.--(A) Section 3011(a) of title 38, United 
        States Code, is amended--
                    (i) by striking paragraph (2); and
                    (ii) by redesignating paragraph (3) as paragraph 
                (2).
            (B) Section 3012(a) of such title is amended--
                    (i) by striking paragraph (2); and
                    (ii) by redesignating paragraph (3) as paragraph 
                (2).
            (2) Opportunities to withdraw election not to enroll.--(A) 
        Section 3018(b) of such title is amended--
                    (i) by inserting ``and'' at the end of paragraph 
                (3)(C);
                    (ii) by striking paragraph (4); and
                    (iii) by redesignating paragraph (5) as paragraph 
                (4).
            (B)(i) Section 3018A(a) of such title is amended--
                    (I) by striking paragraph (2);
                    (II) by redesignating paragraphs (3), (4), and (5) 
                as paragraphs (2), (3), and (4), respectively; and
                    (III) in paragraphs (3) and (4), as so 
                redesignated, by striking ``paragraph (3) of this 
                subsection'' and inserting ``paragraph (2)''.
            (ii) Section 3018A(c) of such title is amended by striking 
        ``subsection (a)(3) of this section'' and inserting 
        ``subsection (a)(2)''.
            (iii) Section 3018A(d)(1) of such title is amended by 
        striking ``subsection (a)(4) of this subsection'' and inserting 
        ``subsection (a)(3)''.
            (C)(i) Section 3018B(a)(1) of such title is amended--
                    (I) by striking subparagraph (B);
                    (II) by redesignating subparagraphs (C), (D), and 
                (E) as subparagraphs (B), (C), and (D), respectively; 
                and
                    (III) in subparagraphs (C) and (D), as so 
                redesignated, by striking ``subparagraph (C) of this 
                paragraph'' and inserting ``subparagraph (B)''.
            (D)(i) Section 3018B(a)(2) of such title is amended--
                    (I) by striking subparagraph (B);
                    (II) by redesignating subparagraphs (C), (D), and 
                (E) as subparagraphs (B), (C), and (D), respectively;
                    (III) in subparagraph (B), as so redesignated, by 
                striking ``paragraph (1)(C) of this subsection'' and 
                inserting ``paragraph (1)(B)''; and
                    (IV) in subparagraphs (C) and (D), as so 
                redesignated, by striking ``subparagraph (C)'' and 
                inserting ``subparagraph (B)''.
            (ii) Section 3018B(c) of such title is amended by striking 
        ``subsection (a)(1)(C) or (a)(2)(C) of this section'' and 
        inserting ``subsection (a)(1)(B) or (a)(2)(B)''.
            (iii) Section 3018B(d)(1) of such title is amended by 
        striking ``subsection (a)(1)(D) or (a)(2)(D) of this section'' 
        and inserting ``subsection (a)(1)(C) or (a)(2)(C)''.
            (E)(i) Section 3018C(a) of such title is amended--
                    (I) by striking paragraph (3);
                    (II) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively; and
                    (III) in paragraph (3), as so redesignated, by 
                striking ``paragraph (5)'' and inserting ``paragraph 
                (4)''.
            (ii) Section 3018C(b)(2) of such title is amended by 
        striking ``subsection (a)(4)'' and inserting ``subsection 
        (a)(3)''.
            (iii) Section 3018C(c)(1) of such title is amended by 
        striking ``subsection (a)(5)'' and inserting ``subsection 
        (a)(4)''.
            (iv) Section 3018C(e)(1) of such title is amended by 
        striking ``elections made under subsection (a)(5)'' and 
        inserting ``elections made under subsection (a)(4)''.
            (v) Section 3018C(e)(2) of such title is amended--
                    (I) by striking subparagraph (C); and
                    (II) by redesignating subparagraph (D) as 
                subparagraph (C).
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on October 1, 2003, and shall apply with 
        respect to individuals applying for basic educational 
        assistance under chapter 30 of title 38, United States Code, on 
        or after such date.
    (c) Education Outreach Services to Members of the Armed Forces.--
            (1) In general.--Section 3034(e)(1) of title 38, United 
        States Code, is amended to read as follows:
    ``(e)(1) Not later than one year after an individual initially 
enters on active duty as a member of the Armed Forces, and at such 
additional times as the Secretary determines appropriate, the Secretary 
shall furnish the individual the information described in paragraph 
(2).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 2003, and shall apply to 
        individuals whose initial obligated period of active duty under 
        section 3011 or 3012 of title 38, United States Code, as the 
        case may be, begins on or after such date.

Summary: Montgomery GI Bill Revitalization Act of 2003 - Amends Federal basic educational assistance provisions to authorize enhanced educational assistance to a member of the armed forces who, after September 30, 2003: (1) first enters on active duty, (2) reenlists or continues to serve on active duty. (3) serves a continuous period of active duty of four years. Or (4) serves and is discharged or released for a service-connected disability, at the convenience of the Government , or due to a reduction in force. Limits to 36 months the period for such enhanced assistance. Requires the payment of educational expenses under such program. Provides: (1) a monthly stipend for approved programs of education. And (2) tutorial assistance. Repeals, with respect to such assistance: (1) a required monthly reduction in pay for individuals who do not elect to participate in such assistance program. (2) a provision authorizing individuals to elect not to receive such assistance. (3) the requirement that participants complete the requirements of a high school diploma or equivalency certificate prior to the end of their initial obligated period of service in order to be eligible to receive such assistance. And (4) provisions limiting an individual's opportunity to withdraw an election not to enroll in such assistance program.