[Federal Register Volume 65, Number 218 (Thursday, November 9, 2000)]
[Rules and Regulations]
[Pages 67265-67266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28702]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AJ90


Miscellaneous Montgomery GI Bill Eligibility and Entitlement 
Issues

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends regulations concerning eligibility for 
and entitlement to educational assistance under the Montgomery GI 
Bill--Active Duty (MGIB). The regulations are amended to correctly 
restate statutory provisions.

DATES: Effective Date: This final rule is effective November 9, 2000.

FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Education 
Assistant Director for Policy and Program Development (225), Veterans 
Benefits Administration, Department of Veterans Affairs, (202) 273-
7187.

SUPPLEMENTARY INFORMATION: This document makes changes to correctly 
restate statutory provisions as discussed below.
    <bullet> Section 21.7020 is corrected to show that VA will consider 
an initial period of active duty of not more than 12 months that 
results in a hardship discharge to be continuous with a subsequent 
period of active duty.
    <bullet> Section 21.7042 is revised to correct the eligibility 
criteria an individual must meet if that individual is attempting to 
establish eligibility for MGIB by serving two years on active duty 
followed by four years in the Selected Reserve. Such an individual is 
exempt from serving those four years if he or she was discharged from 
the Selected Reserve for a condition that interfered with the 
performance of duty and which was not the result of his or her own 
willful misconduct. That individual does not have to meet the otherwise 
applicable deadline for obtaining a high school diploma if he or she 
was on active duty on August 2, 1990, and completed the requirements 
for the diploma or the equivalent before October 29, 1994.
    <bullet> Section 21.7044 is revised to correct the eligibility 
criteria an individual must meet if he or she was formerly eligible for 
educational assistance under the Vietnam Era GI Bill. That individual 
does not have to meet the otherwise applicable deadline for obtaining a 
high school diploma if he or she was on active duty on August 2, 1990, 
and completed the requirements for the diploma or the equivalent before 
October 29, 1994.
    <bullet> Section 21.7073 is revised to expand the categories of 
individuals to whom the provisions of the section for deciding on the 
amount of an individual's entitlement apply. The provisions apply to 
individuals who between December 1, 1988, and June 30, 1989, withdrew 
an election not to enroll in MGIB and were discharged from the period 
of service they were obligated to serve on December 1, 1988, for a 
condition that interfered with the performance of duty and which was 
not the result of his or her own willful misconduct.
    Nonsubstantive changes also are made for the purpose of clarity.
    Changes made by this final rule merely restate statutory language. 
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.
    The Secretary of Veterans Affairs hereby certifies 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, 5 U.S.C. 601-612. This final rule directly affects 
only individuals and does not directly affect small entities. Pursuant 
to 5 U.S.C. 605(b), this final rule, therefore, is exempt from the 
initial and final

[[Page 67266]]

regulatory flexibility analyses requirements of sections 603 and 604.
    The Catalog of Federal Domestic Assistance number for the program 
affected by this final 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, Employment, Grant programs-education, Grant 
programs-veterans, Health care, Loan programs-education, Loan programs-
veterans, Manpower training programs, Reporting and recordkeeping 
requirements, Schools, Travel and transportation expenses, Veterans, 
Vocational education, Vocational rehabilitation.

    Approved: February 29, 2000.
Togo D. West, Jr.,
Secretary of Veterans Affairs.

    Editorial Note:
    This document was received in the Office of the Federal Register 
on November 3, 2000.

    For the reasons set out in the preamble, 38 CFR part 21, subpart K, 
is amended as follows:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

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

    1. The authority citation for part 21, subpart K continues to read 
as follows:

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


    2. Section 21.7020 is amended by:
    A. In paragraph (b)(6)(iv)(A), removing the comma at the end of the 
paragraph and adding, in its place, a semi-colon.
    B. Redesignating paragraphs (b)(6)(iv)(B), (b)(6)(iv)(C), and 
(b)(6)(iv)(D) as paragraphs (b)(6)(iv)(C), (b)(6)(iv)(D), and 
(b)(6)(iv)(E), respectively.
    C. Adding a new paragraph (b)(6)(iv)(B).
    D. In newly redesignated paragraph (b)(6)(iv)(C), removing the 
comma at the end of the paragraph and adding, in its place, a semi-
colon.
    E. In newly redesignated paragraph (b)(6)(iv)(D), removing the 
comma immediately after the word concerned and adding, in its place, a 
semi-colon.
    The addition reads as follows:


Sec. 21.7020  Definitions.

* * * * *
    (b) * * *
    (6) * * *
    (iv) * * *
    (B) For hardship;
* * * * *

    3. Section Sec. 21.7042 is amended by:
    A. Revising paragraph (b)(2) introductory text.
    B. In paragraph (b)(7)(ii)(A), removing ``disability, or'' and 
adding, in its place, ``disability;''.
    C. In paragraph (b)(7)(ii)(B), removing ``connected.'' and adding, 
in its place, ``connected; or''.
    D. Adding paragraph (b)(7)(ii)(C) immediately after paragraph 
(b)(7)(ii)(B).
    E. Adding a new paragraph (b)(10) immediately after the authority 
citation at the end of paragraph (b)(9).
    The revision and additions read as follows:


Sec. 21.7042  Basic eligibility requirements.

* * * * *
    (b) * * *
    (2) Except as provided in paragraph (b)(10) of this section, the 
individual before completing the service requirements of this paragraph 
must either--
* * * * *
    (7) * * *
    (ii) * * *
    (C) For a physical or mental condition that was not characterized 
as a disability and did not result from the individual's own willful 
misconduct but did interfere with the individual's performance of duty, 
as determined by the Secretary of each military department in 
accordance with regulations prescribed by the Secretary of Defense or 
by the Secretary of Transportation with respect to the Coast Guard when 
it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3012(b)(1)(B)(i))
* * * * *
    (10) An individual who does not meet the requirements of paragraph 
(b)(2) of this section nevertheless is eligible for basic educational 
assistance if he or she--
    (i) Was on active duty on August 2, 1990; and
    (ii) Completed the requirements of a secondary school diploma (or 
an equivalency certificate) before October 29, 1994.

(Authority: 38 U.S.C. 3012)
* * * * *

    4. Section Sec. 21.7044 is amended by:
    A. Revising paragraph (b)(3) introductory text.
    B. Adding paragraph (b)(13) immediately after the authority 
citation at the end of paragraph (b)(12).
    C. In paragraph (c), removing ``paragraph (e)'' and adding, in its 
place, ``paragraph (d)''.
    D. In paragraph (d), removing ``paragraph (d)'' and adding, in its 
place ``paragraph (c)''.
    The revision and addition read as follows:


Sec. 21.7044  Persons with eligibility under 38 U.S.C. chapter 34.

* * * * *
    (b) * * *
    (3) Except as provided in paragraph (b)(13) of this section, the 
individual must either--
* * * * *
    (13) An individual who does not meet the requirements of paragraph 
(b)(3) of this section nevertheless is eligible for basic educational 
assistance if he or she--
    (i) Was on active duty on August 2, 1990; and
    (ii) Completed the requirements of a secondary school diploma (or 
an equivalency certificate) before October 29, 1994.

(Authority: 38 U.S.C. 3012)
* * * * *

    5. Section Sec. 21.7073 is amended by:
    A. In paragraph (a)(1)(iii), introductory text removing ``to 
service on'', and adding, in its place, ``to serve on''.
    B. Redesignating paragraphs (a)(1)(iii)(B) and (a)(1)(iii)(C) as 
paragraphs (a)(1)(iii)(C) and (a)(1)(iii)(D), respectively.
    C. Adding a new paragraph (a)(1)(iii)(B).
    D. Revising the authority citation following newly redesignated 
paragraph (a)(1)(iii)(D).
    The revision and addition read as follows:


Sec. 21.7073  Entitlement for some individuals who establish 
eligibility during the open period or who establish eligibility before 
involuntary separation.

    (a) * * *
    (1) * * *
    (iii) * * *
    (B) For a physical or mental condition that was not characterized 
as a disability and did not result from the individual's own willful 
misconduct but did interfere with the individual's performance of duty, 
as determined by the Secretary of each military department in 
accordance with regulations prescribed by the Secretary of Defense or 
by the Secretary of Transportation with respect to the Coast Guard when 
it is not operating as a service in the Navy.
* * * * *
(Authority: 38 U.S.C. 3018(b)(3))
[FR Doc. 00-28702 Filed 11-8-00; 8:45 am]
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