[Federal Register Volume 69, Number 205 (Monday, October 25, 2004)]
[Rules and Regulations]
[Pages 62205-62206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23757]



[[Page 62205]]

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DEPARTMENT OF DEFENSE

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AL80


Increase in Rates Payable Under 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: By statute, the monthly rates of basic educational assistance 
payable to reservists under the Montgomery GI Bill--Selected Reserve 
must be adjusted each fiscal year. In accordance with the statutory 
formula, the regulations governing rates of basic educational 
assistance payable under the Montgomery GI Bill--Selected Reserve for 
Fiscal Year 2004 (October 1, 2003, through September 30, 2004) are 
changed to show a 2.2% increase in these rates.

DATES: Effective Date: This final rule is effective October 25, 2004.
    Applicability Date: The changes in rates are applied retroactively 
to conform to statutory requirements. For more information concerning 
the dates of application, see the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Lynn M. Nelson, Education Adviser, 
Education Service (225C), Veterans Benefits Administration, Department 
of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, 
telephone (202) 273-7294.

SUPPLEMENTARY INFORMATION: Under the formula mandated by 10 U.S.C. 
16131(b) for Fiscal Year 2004, the rates of basic educational 
assistance under the Montgomery GI Bill--Selected Reserve payable to 
students pursuing a program of education full time, three-quarter time, 
and half time must be increased by 2.2%, which is the percentage by 
which the total of the monthly Consumer Price Index-W for July 1, 2002, 
through June 30, 2003, exceeds the total of the monthly Consumer Price 
Index-W for July 1, 2001, through June 30, 2002.
    Title 10 U.S.C. 16131(b) requires that full-time, three-quarter 
time, and half-time rates be increased as noted above. In addition, 10 
U.S.C. 16131(d) requires that monthly rates payable to reservists in 
apprenticeship or other on-the-job training must be set at a given 
percentage of the full-time rate. Hence, there is a 2.2% raise for such 
training as well.
    Title 10 U.S.C. 16131(b) also requires that the Department of 
Veterans Affairs (VA) pay reservists training less than half time at an 
appropriately reduced rate. Since payment for less than half-time 
training became available under the Montgomery GI Bill--Selected 
Reserve in Fiscal Year 1990, VA has paid less than half-time students 
at 25% of the full-time rate. Changes are made consistent with the 
authority and formula described in this paragraph.
    The changes set forth in this final rule are effective from the 
date of publication, but the changes in rates are applied from October 
1, 2003, in accordance with the applicable statutory provisions 
discussed above.

Administrative Procedure Act

    Substantive changes made by this final rule merely reflect 
statutory requirements and adjustments made based on previously 
established formulas. 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 initial and final regulatory flexibility analyses requirements 
of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 
601-612, are not applicable to this rule, because a notice of proposed 
rulemaking is not required for this rule. Even so, the Secretary of 
Defense, the Commandant of the Coast Guard, and the Secretary of 
Veterans Affairs 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. This final rule 
directly affects only individuals and does not directly affect small 
entities. Therefore, this final rule is also exempt pursuant to 5 
U.S.C. 605(b) 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 in any given year. This rule would have no such 
effect on State, local, or tribal governments, or the private sector.

Catalog of Federal Domestic Assistance Program Numbers

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

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 programs, Loan programs-education, Loan 
programs-veterans, Manpower training programs, Reporting and 
recordkeeping requirements, Schools, Travel and transportation 
expenses, Veterans, Vocational education, Vocational rehabilitation.

    Approved: August 20, 2004.
Anthony J. Principi,
Secretary of Veterans Affairs.
    Dated: August 10, 2004.
John D. Winkler,
Deputy Assistant Secretary of Defense for Reserve Affairs (Manpower & 
Personnel).
    September 3, 2004.
Kenneth T. Venuto,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human 
Resources.

0
For the reasons set out above, 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.


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2. Section 21.7636 is amended by:
0
a. Revising paragraphs (a)(1) and (a)(2)(i) and tables at the end of 
each paragraph.
0
b. In paragraph (a)(3), removing ``September 30, 2002, and before 
October 1, 2003,'' and adding, in its place, ``September 30, 2003, and 
before October 1, 2004,''.
    The revisions read as follows:


Sec.  21.7636  Rates of payment.

    (a) Monthly rate of educational assistance. (1) Except as otherwise

[[Page 62206]]

provided in this section or in Sec.  21.7639, the monthly rate of 
educational assistance payable for training that occurs after September 
30, 2003, and before October 1, 2004, to a reservist pursuing a program 
of education is the rate stated in this table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
Full.........................................................    $282.00
\3/4\ time...................................................     212.00
\1/2\ time...................................................     140.00
\1/4\ time...................................................      70.50
------------------------------------------------------------------------

    (2)(i) The monthly rate of basic educational assistance payable to 
a reservist for apprenticeship or other on-the-job training full time 
that occurs after September 30, 2003, and before October 1, 2004, is 
the rate stated in this table:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                            rate
------------------------------------------------------------------------
First six months of pursuit of training......................    $211.50
Second six months of pursuit of training.....................     155.10
Remaining pursuit of training................................      98.70
------------------------------------------------------------------------

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[FR Doc. 04-23757 Filed 10-22-04; 8:45 am]
BILLING CODE 8320-01-P