Federal Register / Vol. 63, No. 97 /Wednesday, May 20, 1998 / Proposed Rules 27701

who are or may become involved in

Coast Guard actions.

Signed: 14 May 1998.

Robert S. Horowitz,

Chief Counsel (Acting).

[FR Doc. 98–13400 Filed 5–19–98; 8:45 am]

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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 21

RIN 2900–AI31

Advance Payments and Lump-Sum

Payments of Educational Assistance

AGENCIES: Defense; Coast Guard,

Transportation; and Veterans Affairs.

ACTION: Proposed rule.

SUMMARY: This document proposes to

amend the educational assistance

regulations of the Department of

Veterans Affairs (VA) dealing with the

advance payment and lump-sum

payment of educational assistance. VA

is proposing to amend these regulations

by removing provisions that no longer

apply and by making other changes for

the purpose of clarification. This will

make these regulations easier to use.

DATES: Comments must be received on

or before July 20, 1998.

ADDRESSES: Mail or hand-deliver

written comments to: Director, Office of

Regulations Management (02D),

Department of Veterans Affairs, 810

Vermont Avenue, NW, Room 1154,

Washington, DC 20420. Comments

should indicate that they are submitted

in response to ‘‘RIN 2900–AI31’’. All

written comments received will be

available for public inspection at the

above address in the Office of

Regulations Management between the

hours of 8:00 a.m. to 4:30 p.m., Monday

through Friday (except holidays).

FOR FURTHER INFORMATION CONTACT:

William G. Susling, Jr., Education

Advisor, Education Service, Veterans

Benefits Administration, 202–273–7187.

SUPPLEMENTARY INFORMATION: For many

decades VA by statute has permitted

veterans, servicemembers, eligible

persons, and reservists to receive an

advance payment of educational

assistance provided that they request

such a payment and certain other

requirements are met. These payments

have covered educational assistance

scheduled to be paid to the individual

during the first month or fraction of a

month and the following month in a

term or school year. Similarly, some

individuals in some of the educational

programs VA administers are able in

certain circumstances to receive a lumpsum payment covering the educational

assistance due for an entire term.

The regulations governing these

payments have accumulated obsolete

provisions over the years, and have been

written in a way that is not always easy

to understand. This proposed rule

removes these obsolete provisions and

makes other clarifying changes.

Moreover, VA may make advance

payments under many of the

educational programs the department

administers. The rules governing

advance payments are the same for all

of those educational programs. There

appears to be no need to repeat those

rules in each subpart of part 21, 38 CFR.

Consequently, VA is proposing to

replace the repetition of those rules with

references to the complete statement of

the advance payment rules that are

proposed in subpart D.

Current regulations allow VA to make

lump-sum payments to trainees in both

the Survivors’ and Dependents’

Educational Assistance program (DEA)

and in the Montgomery GI Bill—Active

Duty (MGIB). The rules for making these

payments are the same for both

programs. There appears to be no need

to repeat these rules in both of the

affected subparts of Part 21, 38 CFR.

Consequently, VA is proposing to

replace the repetition of those rules with

references to the complete statement of

the lump-sum payment rules that are

proposed in subpart D. There are no

substantive changes in this proposed

rule.

Paperwork Reduction Act

The Office of Management and Budget

(OMB) has determined that the

proposed 38 CFR 21.4138(a) would

constitute a collection of information

under the Paperwork Reduction Act of

1995 (44 U.S.C. 3501–3520).

Accordingly, under § 3507(d) of the Act

VA has submitted a copy of this

rulemaking action to OMB for its

review.

Title: Request for an Advance

Payment of Educational Assistance.

Summary of collection of information:

The collection of information in the

proposed revisions to § 21.4138(a) in

this rulemaking proceeding implements

a statutory provision that mandates that

an individual who wishes to receive an

advance payment of educational

assistance must ask for it.

Description of need for information

and proposed use of information: The

information required in § 21.4138(a) is

needed so that VA may make advance

payments of educational assistance to

those who want such payments.

Description of likely respondents.

Veterans, reservists, and eligible persons

receiving educational assistance under

the programs VA administers.

Estimated number of respondents:

75,000 each year.

Estimated frequency of responses:

Occasionally, when a veteran, reservist,

or eligible person wants an advance

payment of educational assistance at the

start of an enrollment period.

Estimated total annual reporting and

recordkeeping burden: 6,250 hours of

reporting burden. VA does not believe

that there will be additional

recordkeeping burden.

Estimated average burden per

respondent: 5 minutes.

The Department considers comments

by the public on proposed collections of

information in—

• Evaluating whether the proposed

collection(s) of information are

necessary for the proposed performance

of the functions of the Department,

including whether the information will

have practical utility;

• Evaluating the accuracy of the

Department’s estimate of the burden of

the proposed collections of information,

including the validity of the

methodology and assumptions used;

• Minimizing the burden of the

collection of information on those who

are to respond, including through the

use of appropriate automated,

electronic, mechanical, or other

technological collection techniques or

other forms of information technology,

e.g., permitting electronic submission of

responses.

OMB is required to make a decision

concerning the collection of information

contained in this proposed rule between

30 and 60 days after publication of this

document in the Federal Register.

Therefore, a comment to OMB is best

assured of having its full effect if OMB

receives it within 30 days of

publication.

The Department of Defense (DOD) and

VA are jointly issuing this proposed rule

insofar as it relates to the Post-Vietnam

Era Veterans’ Educational Assistance

program. This program is funded by

DOD and administered by VA. DOD, the

Department of Transportation (Coast

Guard), and VA are jointly issuing this

proposed rule insofar as it relates to the

Montgomery GI Bill—Selected Reserve.

This program is funded by DOD and the

Coast Guard, and is administered by
27702 Federal Register / Vol. 63, No. 97 /Wednesday, May 20, 1998 / Proposed Rules

VA. The remainder of this proposed rule

is issued solely by VA.

The signers of this document hereby

certify that this regulatory amendment

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 adoption of this proposed rule

would not make substantive changes. It

would remove provisions that no longer

apply and make other changes for

purposes of clarification.

The Catalog of Federal Domestic

Assistance numbers for the programs affected

by this proposed rule are 64.117, 64.120, and

64.124. The proposed rule will also affect the

Montgomery GI Bill—Selected Reserve for

which there is no Catalog of Federal

Domestic Assistance number.

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: May 12, 1998.

Togo D. West, Jr.,

Secretary.

Approved: March 16, 1998.

Norman G. Lezy,

Lieutenant General, USAF, Deputy Assistant

Secretary (Military Personnel Policy),

Department of Defense.

Approved: February 26, 1998.

G.F. Woolever,

Rear Admiral, U.S. Coast Guard, Assistant

Commandant for Human Resources.

For the reasons set out in the

preamble, 38 CFR part 21 is proposed to

be amended as set forth below.

PART 21—VOCATIONAL

REHABILITATION AND EDUCATION

Subpart D—Administration of

Educational Assistance Programs

1. The authority citation for subpart D

continues to read as follows:

Authority: 10 U.S.C. ch. 1606; 38 U.S.C.

501(a), 38 U.S.C. chs. 30, 32, 34, 35, 36,

unless otherwise noted.

2. In § 21.4138, the introductory text

is removed; paragraphs (c) and (d) are

removed and reserved; and paragraphs

(a) and (b) are revised to read as follows:

§ 21.4138 Certifications and release of

payments.

(a) Advance payments. (1) VA will

make payments of educational

assistance in advance when:

(i) The veteran, servicemember,

reservist, or eligible person has

specifically requested such a payment;

(ii) The student is enrolled for half

time or more;

(iii) The educational institution at

which the veteran, servicemember,

reservist, or eligible person is accepted

or enrolled has agreed to and can

satisfactorily carry out the provisions of

38 U.S.C. 3680(d)(4)(B) and (C) and (5)

pertaining to receipt, delivery, or return

of checks and certifications of delivery

and enrollment;

(iv) The Director of the VA field

facility of jurisdiction has not acted

under paragraph (a)(4) of this section to

prevent advance payments being made

to the veteran’s, servicemember’s,

reservist’s, or eligible person’s

educational institution;

(v) There is no evidence in the

veteran’s, servicemember’s, reservist’s,

or eligible person’s claim file showing

that he or she is not eligible for an

advance payment;

(vi) The period for which the veteran,

servicemember, reservist, or eligible

person has requested a payment either—

(A) Is preceded by an interval of

nonpayment for 30 days or more; or

(B) Is the beginning of a school year

that is preceded by a period of

nonpayment of 30 days or more; and

(vii) The educational institution or the

veteran, servicemember, reservist, or

eligible person has submitted the

certification required by § 21.7151.

(2) The amount of the advance

payment to a veteran, reservist, or

eligible person is the educational

assistance for the month or fraction

thereof in which the term or course will

begin plus the educational assistance for

the following month. The amount of the

advance payment to a servicemember is

the amount payable for the entire term,

quarter, or semester, as applicable.

(3) VA will mail advance payments to

the educational institution for delivery

to the veteran, servicemember, reservist,

or eligible person. The educational

institution will not deliver the advance

payment check more than 30 days in

advance of the first date of the period

for which VA makes the advance

payment.

(4) The Director of the VA field

station of jurisdiction may direct that

advance payments not be made to

individuals attending an educational

institution if:

(i) The educational institution

demonstrates an inability to comply

with the requirements of paragraph

(a)(3) of this section;

(ii) The educational institution fails to

provide adequately for the safekeeping

of the advance payment checks before

delivery to the veteran, servicemember,

reservist, or eligible person or return to

VA; or

(iii) The Director determines, based

on compelling evidence, that the

educational institution has

demonstrated its inability to discharge

its responsibilities under the advance

payment program.

(Authority: 10 U.S.C. 16136(b), 38 U.S.C.

3034, 3680(d))

(b) Lump-sum payments. A lump-sum

payment is a payment of all educational

assistance due for an entire quarter,

semester, or term. VA will make a lumpsum payment to:

(1) A veteran or servicemember

pursuing a program of education at less

than the half-time rate under 38 U.S.C.

chapter 30;

(2) A servicemember pursuing a

program of education at the half-time

rate or greater under 38 U.S.C. chapter

30, provided that VA did not make an

advance payment to the servicemember

for the term for which a lump-sum

payment would otherwise be due; and

(3) An eligible person pursuing a

program of education at less than the

half-time rate under 38 U.S.C. chapter

35.

(Authority: 38 U.S.C. 3034(c), 3680(f))

* * * * *

Subpart G—Post-Vietnam Era

Veterans’ Educational Assistance

Under 38 U.S.C. Chapter 32

3. The authority citation for part 21,

subpart G continues to read as follows:

Authority: 38 U.S.C. 501(a), ch. 32, unless

otherwise noted.

4. Section 21.5135 is revised to read

as follows.

§ 21.5135 Advance payments.

VA will apply the provisions of

§ 21.4138(a) in making advance

payments to veterans and

servicemembers.

(Authority: 38 U.S.C. 3241, 3680)

Subpart K—All Volunteer Force

Educational Assistance Program

(Montgomery GI Bill—Active Duty)

5. The authority citation for part 21,

subpart K continues to read as follows:

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

unless otherwise noted.

6. In § 21.7140, paragraph (b) is

removed; paragraphs (c), (d), (e), (f), and
Federal Register / Vol. 63, No. 97 /Wednesday, May 20, 1998 / Proposed Rules 27703

(g) are redesignated as paragraphs (b),

(c), (d), (e), and (f), respectively; and

paragraph (a) is revised, to read as

follows:

§ 21.7140 Certifications and release of

payments.

(a) Advance payments and lump-sum

payments. VA will apply the provisions

of § 21.4138 (a) and (b) in making

advance payments and lump-sum

payments to veterans and

servicemembers.

(Authority: 38 U.S.C. 3034 and 3680)

* * * * *

Subpart L Educational Assistance for

Members of the Selected Reserve

7. 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, unless otherwise noted.

8. In § 21.7640, the authority citations

for paragraphs (b), (c), (e), and (f) are

amended by removing ‘‘; Pub. L. 98–

525’’; and paragraph (e) is amended by

removing ‘‘paragraph (d) of this section’’

and adding, in its place, ‘‘§ 21.4138(a)’’;

and paragraph (d) is revised to read as

follows:

§ 21.7640 Release of payments.

* * * * *

(d) Advance payments. VA will apply

the provisions of § 21.4138(a) in making

advance payments to reservists.

(Authority: 10 U.S.C. 16136(b), 38 U.S.C.

3680)

* * * * *

[FR Doc. 98–13366 Filed 5–19–98; 8:45 am]

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