[Federal Register Volume 62, Number 243 (Thursday, December 18, 1997)]
[Proposed Rules]
[Pages 66320-66321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32989]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI88


Veterans' Education: Effective Date for Awards of Educational 
Assistance to Veterans Who Were Voluntarily Discharged

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the educational-assistance and 
educational-benefit regulations of the Department of Veterans Affairs 
(VA). It proposes to establish effective dates of awards of educational 
assistance to certain voluntarily discharged veterans who are eligible 
for the Montgomery GI Bill--Active Duty (MGIB). The effective dates are 
intended to correspond with a statutory mandate for the effective 
dates. The proposed rule also clarifies that these veterans may not 
receive educational assistance for training that occurs before they pay 
the Federal government $1,200.

DATES: Comments must be received on or before February 17, 1998.
    Applicability Dates: It is proposed that the effective dates be 
made retroactive from the effective dates of the statutory provisions. 
For more information concerning the proposed effective dates, see the 
SUPPLEMENTARY INFORMATION section.

ADDRESSES: Mail or hand deliver written comments to: Director, Office 
of Regulations Management (02D), Department of Veterans Affairs, 810 
Vermont Ave., NW, Room 1154, Washington, DC 20420. Comments should 
indicate that they are submitted in response to ``RIN 2900-AI88.'' All 
written comments will be available for public inspection at the above 
address in the Office of Regulations Management, Room 1158, between the 
hours of 8 a.m. and 4:30 p.m., Monday through Friday (except holidays).

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director 
for Policy and Program Administration, Education Service, Veterans 
Benefits Administration, 202-273-7187.

SUPPLEMENTARY INFORMATION: This document clarifies 38 CFR part 21, 
subpart K, regarding the effective dates for awards of educational 
assistance to certain voluntarily discharged veterans.
    Pub. L. 102-484 (sec. 4404, 38 U.S.C. 3018B) allows a veteran who 
was voluntarily separated under either 10 U.S.C. 1174a or 1175 before 
Oct. 23, 1992, to elect to receive educational assistance under the 
Montgomery GI Bill--Active Duty. The veteran was given until Oct. 23, 
1993, to do so. The law also requires such a veteran to submit $1,200 
to VA as a condition of receiving such educational assistance. However, 
the law does not specify a time limit for submitting the $1,200 and the 
proposed rule clarifies that there is no such time limit.
    The effective date of an award also is affected by when VA received 
the $1,200. VA is required by 38 U. S. C. 5113 to make the effective 
dates of the award of educational assistance, to the extent feasible, 
correspond to the effective dates relating to awards of disability 
compensation. The provisions of 38 U.S.C. 5110 and 5111 contain the 
rules for determining the effective date of an award of disability 
compensation. The general intent of 38 U.S.C. 5110 is to allow the 
effective date of an award of compensation to be the day following the 
date of discharge if application is filed within one year after 
discharge. Otherwise, the earliest date of the award shall be the date 
of receipt of application. Further, 38 U.S.C. 5103 provides, as to 
benefit claims generally, that information or evidence necessary to 
complete the claim must be submitted within one year of the date 
requested by VA; otherwise, no benefits are payable based on that 
claim. Accordingly, when payment of the $1,200 must be made as a 
condition of receiving benefits, it is proposed to establish effective 
dates for educational assistance consistent with the provisions of 38 
U.S.C. 5103 and 5110.
    The Secretary of Veterans Affairs hereby certifies that this 
proposed 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. The proposed rule will 
affect individual, not small entities. Therefore, pursuant to 5 U.S.C. 
605(b), this proposed rule is exempt from the initial and final 
regulatory flexibility analyses requirements of sections 603 and 604.
    The Catalog of Federal Domestic Assistance number for the program 
affected by this proposed rule is 64.124.

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, Educational institutions, Employment, Grant 
programs--education, Grant programs--veterans, Health care, Loan 
programs--education, Loan programs--veterans, Manpower training 
programs, Reporting and recordkeeping requirements, Travel and 
transportation expenses, Veterans, Vocational education, Vocational 
rehabilitation.

    Approved: December 5, 1997.
Hershel W. Gober,
Acting Secretary of Veterans Affairs.
    For the reasons set out above, 38 CFR part 21, subpart K, is 
proposed to be amended as set forth below.

Subpart K--All Volunteer Force Educational Assistance Program 
(Montgomery GI Bill--Active Duty)

    1. The authority citation for subpart K continues to read as 
follows:

    Authority: 38 U.S.C. 501(a), chs. 30 and 36, unless otherwise 
noted.

    2. In Sec. 21.7131, paragraph (n) is added to read as follows:


Sec. 21.7131  Commencing dates.

* * * * *
    (n) Eligibility established under Sec. 21.7045(c). The effective 
date of an

[[Page 66321]]

award of educational assistance when the veteran has established 
eligibility under Sec. 21.7045(c) is as follows:
    (1) If the veteran is not entitled to receive educational 
assistance under 38 U.S.C. ch. 32 on the date he or she made a valid 
election to receive educational assistance under 38 U.S.C. ch. 30, the 
effective date of the award of educational assistance will be the 
latest of the following.
    (i) The commencing date as determined by paragraphs (a) through (c) 
and (f) through (j) of this section; or
    (ii) October 23, 1992, provided that VA received the $1,200 
required to be collected pursuant to Sec. 21.7045(c)(2) and any other 
evidence necessary to establish that the election is valid before the 
later of:
    (A) October 23, 1993; or
    (B) One year from the date VA requested the $1,200 or the evidence 
necessary to establish a valid election; or
    (iii) The date VA received the $1,200 required to be collected 
pursuant to Sec. 21.7045(c)(2) and all other evidence needed to 
establish that the election is valid, if the provisions of paragraph 
(n)(1)(ii) of this section are not met.
    (2) If the veteran is entitled to receive educational assistance 
under 38 U.S.C. ch. 32 on the date he or she made a valid election to 
receive educational assistance under 38 U.S.C. ch. 30, the effective 
date of the award of educational assistance will be the latest of the 
following:
    (i) The commencing date as determined by paragraphs (a) through (c) 
and (f) through (j) of this section; or
    (ii) The date on which the veteran made a valid election to receive 
educational assistance under 38 U.S.C. chapter 30 provided that VA 
received the $1,200 required to be collected pursuant to 
Sec. 21.7045(c)(2) and any other evidence necessary to establish that 
the election is valid before the later of:
    (A) One year from the date VA received the valid election; or
    (B) One year from the date VA requested the $1,200 or the evidence 
necessary to establish a valid election; or
    (iii) The date VA received the $1,200 required to be collected 
pursuant to Sec. 21.7045(c)(2) and all other evidence needed to 
establish that the election is valid, if the provisions of paragraph 
(n)(2)(ii) of this section are not met.

(Authority 38 U.S.C. 3018B)

[FR Doc. 97-32989 Filed 12-17-97; 8:45 am]
BILLING CODE 8320-01-P