To amend title 38, United States Code, to provide an opportunity for those service members on active duty who enlisted between January 1, 1977, and June 30, 1985, to enroll in the All-Volunteer Force Educational Assistance Program.

SECTION 1. OPPORTUNITY FOR PERSONS WHO ENLISTED BETWEEN JANUARY 1, 
              1977, AND JUNE 30, 1985, TO ENROLL IN ALL-VOLUNTEER FORCE 
              EDUCATIONAL ASSISTANCE PROGRAM.

    (a) In General.--Chapter 30 of title 38, United States Code, is 
amended by adding after section 3018B the following new section:
``Sec. 3018C. Opportunity for persons who enlisted between January 1, 
              1977, and June 30, 1985, to enroll
    ``(a) Notwithstanding any other provision of law, the Secretary of 
Defense shall, subject to the availability of appropriations, allow an 
individual who--
            ``(1) is an eligible veteran for purposes of chapter 32;
            ``(2) is serving on active duty on the date of enactment of 
        this section and is discharged or released therefrom with an 
        honorable discharge;
            ``(3) before applying for benefits under this section, has 
        completed the requirements of a secondary school diploma (or 
        equivalency certificate) or has successfully completed the 
        equivalent of 12 semester hours in a program of education 
        leading to a standard college degree; and
            ``(4) before being discharged or released from active duty 
        as described in paragraph (2), elects to receive assistance 
        under this section or, in the case of any individual enrolled 
        in the educational benefits program provided by chapter 32, 
        makes an irrevocable election to receive benefits under this 
        section in lieu of benefits under such chapter 32, pursuant to 
        procedures which the Secretary of each military department 
        shall provide in accordance with regulations prescribed by the 
        Secretary of Defense for the purpose of carrying out this 
        section or which the Secretary of Transportation shall provide 
        for such purpose with respect to the Coast Guard when it is not 
        operating as a service in the Navy;
to become entitled to basic educational assistance under this chapter.
    ``(b)(1) Except as provided in paragraph (2), the basic pay of an 
individual who makes an election under subsection (a) to become 
entitled to basic educational assistance under this chapter shall be 
reduced by $1,200.
    ``(2) In the case that the Secretary of Defense determines that it 
is not administratively feasible to reduce the basic pay of an 
individual for the purposes of paragraph (1), such Secretary shall 
collect $1,200 from the individual, which shall be paid into the 
Treasury of the United States as miscellaneous receipts.
    ``(3) No payment of basic educational assistance under this chapter 
shall be made to an individual allowed to become entitled to such 
assistance under this section whose basic pay has not been reduced as 
provided in paragraph (1) or who has not paid the Secretary of Defense 
in accordance with paragraph (2).
    ``(c)(1) Except as provided in paragraph (3) of this subsection, an 
individual who is enrolled in the educational benefits program provided 
by chapter 32 and who makes the election described in subsection (a)(4) 
shall be disenrolled from such chapter 32 program as of the date of 
such election.
    ``(2) For each individual who is disenrolled from such program, the 
Secretary shall refund--
            ``(A) as provided in section 3223(b), to the individual the 
        unused contributions made by the individual to the Post-Vietnam 
        Era Veterans Education Account established pursuant to section 
        3222(a); and
            ``(B) to the Secretary of Defense the unused contributions 
        (other than contributions made under section 3222(c)) made by 
        such Secretary to the Account on behalf of such individual.
    ``(3) Any contribution made by the Secretary of Defense to the 
Post-Vietnam Era Veterans Education Account pursuant to section 3222(c) 
on behalf of any individual referred to in paragraph (1) of this 
subsection shall remain in such Account to make payments of benefits to 
such individual under section 3015(f) of this chapter.''.
    (b) Conforming Amendments.--(1) The table of sections at the 
beginning of chapter 30 of such title is amended by inserting after the 
item relating to section 3018B the following new item:

``3018C. Opportunity for persons who enlisted between January 1, 1977, 
                            and June 30, 1985, to enroll.''.
    (2) Section 3013(e) of such title is amended by striking out ``or 
3018B'' and inserting in lieu thereof ``, 3018B, or 3018C''.
    (3) Section 3015(f) of such title is amended by inserting ``, 
3018B, or 3018C'' after ``section 3018A''.
    (4) Section 3035(b) of such title is amended--
            (A) in paragraph (3) in the matter preceding subparagraph 
        (A), by striking out ``or 3018B'' and inserting in lieu thereof 
        ``, 3018B, or 3018C''; and
            (B) in paragraph (3)(C), by striking out ``3015(e)'' and 
        inserting in lieu thereof ``3015(f)''.

Summary: Allows individuals who enlisted in the armed forces between January 1, 1977, and June 30, 1985, who are serving on active duty upon the enactment of this Act and are later honorably discharged or released, who have completed the requirements for a secondary diploma or at least 12 semester hours leading to a standard college degree, and who, before such discharge or release, make the appropriate election, to enroll and participate in the All-Volunteer Force educational assistance program. Requires a basic pay reduction of $1,200 for participation in the program. Provides for a pro rata refund of an appropriate amount for any educational assistance unused by members disenrolling from the program.