Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14823

dishonorable from the period of service

in which the injury or disease was

incurred. 38 U.S.C. 1521(a) authorizes

the Secretary to pay non-serviceconnected disability pension to certain

veterans who are permanently and

totally disabled from non-serviceconnected disability.

Regulations at 38 CFR 3.12 implement

two distinct statutory provisions

governing entitlement to most benefits

administered by VA. One provision, 38

U.S.C. 101(2), defines the term

‘‘veteran’’ for purposes of establishing

entitlement to benefits as a person who

served in the active military, naval, or

air service, and who was discharged or

released under conditions other than

dishonorable. The other, 38 U.S.C. 5303,

bars the payment of VA benefits to

individuals discharged under certain

listed circumstances regardless of how

they fare under the statutory definition

of veteran.

Paragraphs 3.12(g) and (h) implement

provisions of Public Law 95–126,

enacted on October 8, 1977, concerning

the effect of certain discharge upgrades

and discharge review programs on the

definition of veteran and the statutory

bars to benefits. This document

reorganizes the material in paragraphs

(g) and (h) into a format that is simpler

to read and understand. The changes are

not substantive.

Since these amendments merely

reorganize and simplify the current

regulation and are not substantive in

nature, this change is being promulgated

without regard to notice and comment

and effective date provisions of 5 U.S.C.

553.

Because no notice of proposed

rulemaking was required with the

adoption of this final rule, no regulatory

flexibility analysis is required under the

Regulatory Flexibility Act, 5 U.S.C. 601–

612. Even so, the Secretary hereby

certifies that these regulatory

amendments 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 reason for

this certification is that these

amendments would not directly affect

any small entities. Only VA

beneficiaries could be directly affected.

The Catalog of Federal Domestic

Assistance program numbers are 64.100,

64.101, 64.104, 64.105, 64.106, 64.109, and

64.110.

List of Subjects in 38 CFR Part 3

Administrative practice and

procedure, Claims, Disability benefits,

Health care, Pensions, Veterans,

Vietnam.

Approved: March 14, 1997.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set forth in the

preamble, 38 CFR part 3 is amended as

follows:

PART 3—ADJUDICATION

Subpart A—Pension, Compensation,

and Dependency and Indemnity

Compensation

1. The authority citation for part 3,

subpart A continues to read as follows:

Authority: 38 U.S.C. 501(a), unless

otherwise noted.

2. In § 3.12, paragraphs (g) and (h) are

revised and an authority citation is

added to paragraph (h) to read as

follows:

§ 3.12 Character of discharge.

* * * * *

(g) An honorable or general discharge

issued on or after October 8, 1977, by a

discharge review board established

under 10 U.S.C. 1553, sets aside a bar

to benefits imposed under paragraph

(d), but not paragraph (c), of this section

provided that:

(1) The discharge is upgraded as a

result of an individual case review;

(2) The discharge is upgraded under

uniform published standards and

procedures that generally apply to all

persons administratively discharged or

released from active military, naval or

air service under conditions other than

honorable; and

(3) Such standards are consistent with

historical standards for determining

honorable service and do not contain

any provision for automatically granting

or denying an upgraded discharge.

(h) Unless a discharge review board

established under 10 U.S.C. 1553

determines on an individual case basis

that the discharge would be upgraded

under uniform standards meeting the

requirements set forth in paragraph (g)

of this section, an honorable or general

discharge awarded under one of the

following programs does not remove

any bar to benefits imposed under this

section:

(1) The President’s directive of

January 19, 1977, implementing

Presidential Proclamation 4313 of

September 16, 1974; or

(2) The Department of Defense’s

special discharge review program

effective April 5, 1977; or

(3) Any discharge review program

implemented after April 5, 1977, that

does not apply to all persons

administratively discharged or released

from active military service under other

than honorable conditions.

(Authority: 38 U.S.C. 5303 (e))

* * * * *

[FR Doc. 97–7835 Filed 3–27–97; 8:45 am]

BILLING CODE 8320–01–P

38 CFR Part 21

RIN 2900–AI55

Veterans Education: Increase in Rates

Payable Under the Montgomery GI

Bill—Active Duty

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: By statute, the monthly rates

of basic educational assistance payable

to veterans and servicemembers under

the Montgomery GI Bill—Active Duty

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—Active Duty

for fiscal year 1997 (October 1, 1996,

through September 30, 1997) are

changed to show a 2.7% increase in

these rates. Furthermore, the Veterans’

Benefits Improvements Act of 1996

provides that the lower rate of

educational assistance payable to

veterans pursuing cooperative training

was abolished for most veterans training

under the Montgomery GI Bill—Active

Duty effective October 9, 1996. They

will be paid at the same rate as those

veterans pursuing residence training.

The regulations are changed to conform

to statutory requirements.

DATES: This final rule is effective March

28, 1997. However, 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: June

C. Schaeffer, Assistant Director for

Policy and Program Administration,

Education Service, Veterans Benefits

Administration (202) 273–7187.

SUPPLEMENTARY INFORMATION: Under the

formula mandated by 38 U.S.C. 3015(g)

for fiscal year 1997, the rates of basic

educational assistance under the

Montgomery GI Bill—Active Duty

payable to students pursuing a program

of education full time must be increased

by the percentage that the total of the

monthly Consumer Price Index-W for

July 1, 1995, through June 30, 1996,

exceeds the total of the monthly

Consumer Price Index-W for July 1,

1994, through June 30, 1995. This is

2.7%.

It should be noted that some veterans

will receive an increase in monthly
14824 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

payments that will be less than 2.7%.

The increase does not apply to

additional amounts payable by the

Secretary of Defense to individuals with

skills or a specialty in which there is a

critical shortage of personnel (so-called

‘‘kickers’’). It does not apply to amounts

payable for dependents. Veterans who

previously had eligibility under the

Vietnam Era GI Bill receive monthly

payments that are in part based upon

basic educational assistance and in part

based upon the rates payable under the

Vietnam Era GI Bill. Only that portion

attributable to basic educational

assistance is increased by 2.7%.

Although 38 U.S.C. 3015(g) requires

only that the full-time rates be

increased, these revisions include

increases for other training also.

Monthly rates payable to veterans in

apprenticeship or other on-job training

are set by statute at a given percentage

of the full-time rate. Hence, any rise in

the full-time rate automatically requires

an increase in the rates for such

training.

38 U.S.C. 3015 (a) and (b) require that

the Department of Veterans Affairs (VA)

pay part-time students at appropriately

reduced rates. Since the first student

became eligible for assistance under the

Montgomery GI Bill—Active Duty in

1985, VA has paid three-quarter-time

students and one-half-time students at

75% and 50% of the full-time rate,

respectively. Students pursuing a

program of education at less than onehalf but more than one-quarter-time

have had their payments limited to 50%

or less of the full-time rate. Similarly,

students pursuing a program of

education at one-quarter-time or less

have had their payments limited to 25%

or less of the full-time rate. Changes are

made consistent with the authority and

formula described in this paragraph.

Before the enactment on October 9,

1996, of the Veterans’ Benefits

Improvements Act of 1996 (Pub. L. 104–

275), a veteran pursuing a cooperative

course under the Montgomery GI Bill—

Active Duty was paid educational

assistance at 80% of the monthly rate

payable to a similarly circumstanced

veteran in residence training, provided

he or she was not previously eligible for

educational assistance under the

Vietnam Era GI Bill. This statutory

provision was reflected in the

regulations. The Veterans’ Benefits

Improvements Act of 1996 eliminated

this different rate so that, effective

October 9, 1996, veterans in cooperative

training who were not previously

eligible for educational assistance under

the Vietnam Era GI Bill receive the same

monthly rate as veterans in residence

training. However, veterans training

under the Montgomery GI Bill—Active

Duty who were previously eligible

under the Vietnam Era GI Bill receive

educational assistance that is in part

based upon the rates payable under the

Vietnam Era GI Bill. Since a lower rate

was payable for cooperative training

under the Vietnam Era GI Bill than was

payable for residence training, there will

continue to be a lower rate payable

under the Montgomery GI Bill—Active

Duty to these veterans for cooperative

training. 38 CFR 21.7136 and 21.7137

are changed accordingly.

Nonsubstantive changes also are made

for the purpose of clarity.

The changes set forth in this final rule

are effective from the date of

publication, but the changes in rates are

applied retroactively from October 1,

1996, or October 9, 1996, as respectively

set out in the regulations, in accordance

with the applicable statutory provisions

discussed above.

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.

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, and

does not directly affect small entities.

This final rule directly affects only

individuals. Pursuant to 5 U.S.C. 605(b),

this final rule, therefore, 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 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 programsveterans, Manpower training programs,

Reporting and recordkeeping

requirements, Schools, Travel and

transportation expenses, Veterans,

Vocational education, Vocational

rehabilitation.

Approved: January 27, 1997.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set out above, 38 CFR

part 21 (subpart K) is amended as set

forth below.

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, is revised to read as follows:

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

unless otherwise noted.

2. In § 21.7136, paragraphs (b), (c)(1),

(c)(2), (c)(3), (d)(1) introductory text,

(d)(2) introductory text, (d)(5), (d)(6),

and (f)(3) are revised, to read as follows:

§ 21.7136 Rates of payment of basic

educational assistance.

* * * * *

(b) Rates. (1) Except as elsewhere

provided in this section or in § 21.7139,

the monthly rate of basic educational

assistance payable for training that

occurs after September 30, 1996, and

before October 1, 1997, to a veteran

whose service is described in paragraph

(a) of this section is the rate stated in the

following table.

Training Monthly

rate

Full time ........................................ $427.87 3⁄4 time .......................................... 320.90 1⁄2 time .......................................... 213.94

Less than 1⁄2 but more than 1⁄4

time ............................................ 213.94 1⁄4 time or less .............................. 106.97

(Authority: 38 U.S.C. 3015)

(2) If a veteran’s service is described

in paragraph (a) of this section, the

monthly rate payable to the veteran for

pursuit of apprenticeship or other onjob training that occurs after September

30, 1996, and before October 1, 1997, is

the rate stated in the following table.

Training period Monthly

rate

First six months of pursuit of training .............................................. $320.90

Second six months of pursuit of

training ....................................... 235.33

Remaining pursuit of training ........ 149.75

(Authority: 38 U.S.C. 3015, 3032(c))

(3) If a veteran’s service is described

in paragraph (a) of this section, the

monthly rate of basic educational

assistance payable to the veteran for

pursuit of a cooperative course is:
Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations 14825

(i) $342.30 for training that occurs

after September 30, 1996, and before

October 9, 1996; and

(ii) $427.87 for training that occurs on

or after October 9, 1996.

(Authority: 38 U.S.C. 3015)

(c) * * *

(1) Except as elsewhere provided in

this section or in § 21.7139, the monthly

rate of basic educational assistance

payable to a veteran for training that

occurs after September 30, 1996, and

before October 1, 1997, is the rate stated

in the following table.

Training Monthly

rate

Full time ........................................ $347.65 3⁄4 time .......................................... 260.74 1⁄2 time .......................................... 173.83

Less time 1⁄2 but more than 1⁄4

time ............................................ 173.83 1⁄4 time or less .............................. 86.91

(Authority: 38 U.S.C. 3015, 3032(c))

(2) The monthly rate of educational

assistance payable to a veteran for

pursuit of apprenticeship or other onjob training that occurs after September

30, 1996, and before October 1, 1997, is

the rate stated in the following table.

Training period Monthly

rate

First six months of pursuit of training .............................................. $260.74

Second six months of pursuit of

training ....................................... 191.21

Remaining pursuit of training ........ 121.68

(Authority: 38 U.S.C. 3015, 3032(c))

(3) The monthly rate of basic

educational assistance payable to a

veteran for pursuit of a cooperative

course is:

(i) $278.12 for training that occurs

after September 30, 1996, and before

October 9, 1996; and

(ii) $347.65 for training that occurs on

or after October 9, 1996.

(Authority: 38 U.S.C. 3015)

(d) * * *

(1) For individuals, other than those

pursuing cooperative training before

October 9, 1996, or apprenticeship or

other on-job training, it may not exceed:

* * * * *

(2) For individuals who first become

members of the Armed Forces after

November 28, 1989 (other than those

pursuing cooperative training before

October 9, 1996, or apprenticeship or

other on-job training), it may not

exceed:

* * * * *

(5) For individuals who first become

members of the Armed Forces before

November 29, 1989, and who are

pursuing cooperative training, it may

not exceed $320 per month for training

received before October 9, 1996.

(6) For individuals who first become

members of the Armed Forces after

November 28, 1989, and who are

pursuing cooperative training, it may

not exceed $560 per month for training

received before October 9, 1996.

(Authority: Sec. 108(a)(2), Pub. L. 100–689,

102 Stat. 4170; Sec. 5(a), Pub. L. 102–83, 105

Stat. 406)

* * * * *

(f) * * *

(3) For a veteran pursuing cooperative

training VA will multiply the rate

determined by paragraph (e)(2)(i) of this

section by .8 for training received before

October 9, 1996.

* * * * *

3. In § 21.7137, paragraph (c)(2)

introductory text is amended by

removing ‘‘1995, and before October 1,

1996’’ and adding, in its place, ‘‘1996,

and before October 1, 1997’’; paragraph

(c)(2)(i) is amended by removing

‘‘$604.62’’ and adding, in its place,

‘‘$615.87’’; paragraph (c)(2)(ii) is

amended by removing ‘‘$453.96’’ and

adding, in its place, ‘‘$462.40’’;

paragraph (c)(2)(iii) is amended by

removing ‘‘$302.31’’ and adding, in its

place, ‘‘$309.94’’; paragraph (c)(2)(iv) is

amended by removing ‘‘$151.15’’ and

adding, in its place, ‘‘$153.97’’; and

paragraphs (a)(1), (a)(2), (d)(1)

introductory text, and (d)(3) are revised

and paragraph (a)(3) is added, to read as

follows:

§ 21.7137 Rates of payment of basic

educational assistance for individuals with

remaining entitlement under 38 U.S.C. ch.

34.

(a) Minimum rates. (1) Except as

elsewhere provided in this section, the

monthly rate of basic educational

assistance for training that occurs after

September 30, 1996, and before October

1, 1997, is the rate stated in the

following table.

Training

Monthly rate

No.

dependents

One

dependent

Two

dependents

Additional

for each

additional

dependent

Full time ............................................................................................................................ $615.87 $651.87 $682.87 $16.00 3⁄4 time .............................................................................................................................. 462.40 488.90 512.40 12.00 1⁄2 time .............................................................................................................................. 309.94 325.94 341.44 8.50

Less than 1⁄2 but more than 1⁄4 time ................................................................................ 309.94 .................... .................... .................... 1⁄4 time or less .................................................................................................................. 153.97 .................... .................... ....................

(Authority: 38 U.S.C. 3015 (e), (f), and (g))

(2) For veterans pursuing

apprenticeship or other on-job training,

the monthly rate of basic educational

assistance for training that occurs after

September 30, 1996, and before October

1, 1997, is the rate stated in the

following table.

Training

Monthly rate

No

dependents

One

dependent

Two

dependents

Additional

for each

additional

dependent

1st six months of pursuit of program ............................................................................... $423.66 $436.03 $446.90 $5.25

2nd six months of pursuit of program .............................................................................. 291.70 301.05 308.75 3.85

3rd six months of pursuit of program ............................................................................... 173.55 179.68 184.40 2.45
14826 Federal Register / Vol. 62, No. 60 / Friday, March 28, 1997 / Rules and Regulations

Training

Monthly rate

No

dependents

One

dependent

Two

dependents

Additional

for each

additional

dependent

Remaining pursuit of program .......................................................................................... 161.65 167.43 172.68 2.45

(Authority: 38 U.S.C. 3015(e), (f), (g))

(3) The monthly rate payable to a

veteran who is pursuing a cooperative

course is the rate stated in the following

table.

Training period

Monthly rate

No

dependents

One

dependent

Two

dependents

Additional

for each

additional

dependent

Oct. 1, 1996–Oct. 8, 1996 ................................................................................................ $463.90 $484.30 $503.90 $9.20

On or after Oct. 9, 1996 ................................................................................................... 579.87 605.37 629.87 11.50

(Authority: 38 U.S.C. 3015)

* * * * *

(d) * * *

(1) For individuals, other than those

pursuing cooperative training before

October 9, 1996, or apprenticeship or

other on-job training, it may not exceed:

* * * * *

(3) For individuals pursuing

cooperative training, it may not exceed

$320 per month for training received

before October 9, 1996.

(Authority: Sec. 108(a)(2), Pub. L. 100–689,

102 Stat. 4170; sec. 5(a), Pub. L. 102–83, 105

Stat. 406)

* * * * *

[FR Doc. 97–7832 Filed 3–27–97; 8:45 am]

BILLING CODE 8320–01–P

POSTAL SERVICE

39 CFR Part 111

Domestic Mail Manual: Availability and

Publication

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: This final rule revises and

updates references to organizational

names of Postal Service administrative

units in title 39, Code of Federal

Regulations, part 111, that relate to the

Domestic Mail Manual. The Postal

Service publishes its rules and

procedures for domestic mail

preparation, mail classification, postage

rates and fees, and other mailing

requirements in the Domestic Mail

Manual, which is incorporated by

reference in 39 CFR part 111.

This rule also sets the publishing

procedures for announcing all changes

to the Domestic Mail Manual and

identifies the two documents used to

record those changes, both as interim

and final regulations published in the

Federal Register and as minor changes

published in the Postal Bulletin outside

the rulemaking process. In addition,

references to subscription and frequency

of issuance of the Domestic Mail

Manual are revised.

EFFECTIVE DATE: March 28, 1997.

FOR FURTHER INFORMATION CONTACT: Neil

Berger, (202) 268–2859.

SUPPLEMENTARY INFORMATION: To make

the Domestic Mail Manual more

accessible and more usable for postal

customers, the Postal Service redesigned

the layout and reorganized the content

of the document after many months of

consultation with postal customers and

postal employees. The result of this

work was Domestic Mail Manual Issue

46, released on July 1, 1993. Subsequent

issues of the Domestic Mail Manual

have continued the general design and

editorial style of Issue 46, with further

refinements such as a series of reference

guides and a separate 10-panel rate table

identified as Notice 123, Ratefold.

The current Domestic Mail Manual,

now printed in a looseleaf format with

tab dividers, evolved from a bound

document printed and distributed

quarterly in March, June, September,

and December each year. Other than

changes to postal rates and fees based

on filings with the Postal Rate

Commission, the implementation date

for most changes to mailing standards

was generally the issue date of the

quarterly publication of that former

style of the Domestic Mail Manual.

Summaries of these changes were

announced in the Postal Bulletin

describing which standards were to be

revised before the printing and

distribution of the Domestic Mail

Manual.

Although this process appeared to

give mailers and employees adequate

time for preparation, training, and

implementation of the changes, the

publication of only summaries and not

the complete implementing text was

inadequate for mailers who used

computerized methods to sort their

mail. Those mailers, as well as software

developers, needed to review and

interpret the complete text and

incorporate the changes into their

software and mailing operations before

the effective date of the next issue of the

Domestic Mail Manual. As a

consequence, the Postal Service in 1991

began publishing the full text to all

Domestic Mail Manual changes.

Many changes in mail preparation

standards that began in the mid-1980s,

and have continued to the present time,

came from the transition from manual

and mechanized sorting methods to

largely automated methods that relied

on optical character recognition and

other forms of computerized technology.

As technology for mail processing

improved, the rate of change to mail

preparation standards and the expected

consequences from those changes

eroded the quarterly cycle of

announcement followed by publication

of the Domestic Mail Manual. For most

mailers, the value and significance of

changes for better service outweighed

maintaining a schedule of changes tied

to a rigid publication cycle.

After the major shift to automation

rates in 1991, the Postal Service began

to implement changes at an even faster

pace than envisioned in the 1980s.

Some changes came about to upgrade

operational networks and match