Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 /Rules and Regulations 34127

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 21

RIN 2900–AI76

Criteria for Approving Flight Courses

for Educational Assistance Programs

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule with request

for comments.

SUMMARY: This document amends the

educational assistance and education

benefit regulations of the Department of

Veterans Affairs (VA). It revises the

criteria to be used in approving flight

courses for the education benefits

programs VA administers. In large part,

these amendments bring the approval

criteria into agreement with various

provisions of the Veterans’ Benefits

Improvements Act of 1996 and with the

current regulations of the Federal

Aviation Administration. Without the

changes made by this document, VA

would not be able to provide

educational assistance for veterans to

attend affected flight courses. This

document also makes other changes for

the purpose of clarification.

DATES: Effective Date: This rule is

effective June 23, 1998.

Applicability Date: August 1, 1996, for

provisions affecting approval of courses

or enrollments at flight training centers

certificated under 14 CFR part 142.

Comments: Comments must be

received on or before August 24, 1998.

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-AI76.’’ 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 8:00 a.m. and 4:30 p.m.,

Monday through Friday (except

holidays).

FOR FURTHER INFORMATION CONTACT:

William G. Susling, Jr., Education

Advisor, Education Service (225C),

Veterans Benefits Administration, 202–

273–7187.

SUPPLEMENTARY INFORMATION: VA

administers education benefit programs,

including benefit programs for flight

training courses. This document amends

subparts D and K of 38 CFR part 21,

regarding criteria for flight training

courses.

Flight training courses may be

approved for individuals entitled to

educational assistance under the

Montgomery GI Bill—Active Duty

(MGIB) (38 U.S.C. chapter 30) and the

Post-Vietnam Era Veterans’ Educational

Assistance Program (VEAP) (38 U.S.C.

chapter 32), as well as for certain

individuals under the Montgomery GI

Bill—Selected Reserve (MGIB-SR) (10

U.S.C. chapter 1606).

By statute, flight training courses are

required to meet Federal Aviation

Administration (FAA) standards and be

FAA approved (10 U.S.C. 16136(c)(1)(c);

38 U.S.C. 3034(d)(3) and 3241(b)(3)). VA

regulations are changed to reflect

changes to FAA standards as follows:

• FAA is changing the requirements

for approving flight courses at flight

training centers using flight simulators

or advanced flight training devices.

These courses now may be approved at

flight training centers certificated under

the new FAA standards.

• FAA no longer will approve

training for both an instrument rating

and a commercial pilot’s certificate as a

single course.

• FAA established a maximum for the

number of hours of training in a flight

simulator that could be counted toward

the required minimum number of hours

of experience needed for each rating.

• FAA has reorganized various

provisions and changed terminology.

Previously, by statute, VA could not

approve the enrollment in a course

offered by an educational institution

when such course had been in operation

for less than two years, subject to a

number of exceptions. Public Law 104–

275 repealed these statutory provisions

(formerly at 38 U.S.C. 3689) and

established new provisions at 38 U.S.C.

3680A which state:

(e) The Secretary may not approve the

enrollment of an eligible veteran in a course

not leading to a standard college degree

offered by a proprietary profit or proprietary

nonprofit educational institution if—

(1) The educational institution has been

operating for less than two years;

(2) The course is offered at a branch of the

educational institution and the branch has

been operating for less than two years; or

(3) Following either a change in ownership

or a complete move outside its original

general locality, the educational institution

does not retain substantially the same

faculty, student body, and courses as before

the change in ownership or the move outside

the general locality (as determined in

accordance with regulations the Secretary

shall prescribe) unless the educational

institution following such change or move

has been in operation for at least two years.

The regulations regarding flight

courses are amended to reflect changes

in the ‘‘two-year’’ statutory provisions.

Moreover, we are interpreting the term

‘‘branch’’ to include a flight school

satellite base.

This document also amends the

regulations regarding the ‘‘85–15

percent’’ requirement. Generally, VA is

prohibited by statute (38 U.S.C.

3680A(d)) from approving an

enrollment of a veteran in a course

when more than 85 percent of the

students enrolled in the course are

having all or part of their tuition, fees,

or other charges paid to or for them by

the educational institution or by VA.

Under the provisions of 38 U.S.C.

3680A(d)(1), the Secretary may waive

the ‘‘85–15’’ requirement, in whole or in

part, if the Secretary determines,

pursuant to regulations, it to be in the

interest of the eligible veteran and the

Federal government. Pursuant to this

authority, amended 38 CFR

21.4201(e)(3)(ii) provides for purposes

of this enrollment computation that

approved flight training under 14 CFR

parts 141 and 142 at a flight school or

flight training center will be considered

as one course and all other approved

training at a flight school or flight

training center will be considered as one

course. In many cases only one or two

students will be enrolled in a particular

flight course at a given flight school at

any point in time. If all of the students

were veterans, application of the ‘‘85–

15’’ requirement for each course would

produce in many instances the result of

requiring disapproval of the enrollment

of veterans in such courses. We believe

that 38 CFR 21.4201, as amended, is a

reasonable approach in keeping with the

statutory purpose of requiring a training

establishment to demonstrate that its

training is of sufficient quality to attract

a certain percentage of nonveterans

before VA will approve education

benefits for enrollment in that training.

We also believe that the rule will protect

the right of veterans to receive this type

of training while assuring that these

courses could stand the test of the

marketplace.

Changes are also made regarding

medical requirements. As amended, the

regulations do not impose the medical

requirements for a commercial pilot

license on an individual enrolled in

either a ground instructor certification

course or a flight course which is

pursued as a part of a standard college

degree program. In our view, the VA

statutory provisions were not intended

to impose these stringent medical

requirements for such individuals who

would not be required to meet such

medical requirements for FAA

certification.

FAA certifies flight schools to offer

courses that may be given at certified

pilot schools or certified flight training
34128 Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 /Rules and Regulations

centers, which also meet the basic

requirements needed for course

approval for VA training; i.e., the

training is offered at an educational

institution and the courses are generally

accepted as necessary to qualify for a

vocational objective. However, FAA

standards also authorize instruction for

various courses from a flight instructor

who is not affiliated with either a

certificated pilot school or a certificated

training center. That authorization

would not meet the basic statutory

requirements needed for approval for

VA training, in that the training would

not be offered by an ‘‘educational

institution.’’ Therefore, under 38 CFR

21.4263(e), instruction by a nonaffiliated flight instructor would not be

approved for VA purposes.

FAA standards require that a student

either enroll in an instrument rating

course before enrolling in a commercial

pilot certification course, or that a

student enroll in both courses

simultaneously and finish the

instrument rating course first. VA

regulations are amended, with certain

exceptions, to provide that, in order to

receive VA educational assistance, a

student must enroll in both courses

simultaneously. By statute (38 U.S.C.

3452), an individual receiving VA

educational assistance must be pursuing

a vocational, educational, or

professional objective. If the instrument

rating course were allowed to be taken

first, there would be no assurance that

it was taken for purposes of reaching a

vocational, educational, or professional

objective. Instead, it could be taken

merely to add a rating to a private pilot

certificate, which is not considered

evidence of such an objective. By

requiring that both courses be taken

simultaneously, VA is helping to ensure

that a student has made a commitment

and is using his or her benefits to

achieve a vocational objective.

There are three exceptions to the

requirement for enrollment in an

instrument rating course simultaneously

with the commercial pilot certification

course. These exceptions apply to an

individual who is pursuing a standard

college degree and who is taking flight

training as part of the degree program;

to an individual who already has a

commercial pilot certificate; and to an

individual who is enrolling in a ground

instructor certification course. The

respective reasons for the exceptions

are: an individual who is pursuing a

college degree is pursuing an

educational objective; an individual

who adds an instrument rating to a

commercial pilot certificate is following

recognized and accepted industry

requirements for an advanced

vocational objective in the field of

aviation; and an individual becoming a

qualified ground instructor, by

definition, is pursuing a vocational

objective.

Nonsubstantive changes are made for

purposes of clarification and

consistency with FAA terminology.

Consistent with the effective date of

the FAA regulations adding 14 CFR part

142, the date of applicability for

provisions affecting approval of courses

or enrollments at flight training centers

certificated under 14 CFR part 142 is

August 1, 1996.

Administrative Procedure Act

Many of the changes made by this

interim final rule constitute

nonsubstantive changes and

interpretations of law. Those changes

are not subject to the requirements of 5

U.S.C. 553 for notice and comment and

30-day delay of effective date. For the

remainder of the changes, pursuant to 5

U.S.C. 553, we have found good cause

to dispense with notice and comment

on this interim final rule and to

dispense with a 30-day delay of its

effective date and have found that

notice and comment and a 30-day delay

of its effective date would be

unnecessary, impracticable, and

contrary to the public interest. Those

changes are based on the critical need

to conform VA rules to FAA rules and

practice to enable VA to provide

educational assistance for training

needed for certain educational

objectives. In the absence of the

amendments to VA regulations, VA is

unable, due to changes in FAA rules

and practice, to provide educational

assistance for certain flight course

enrollments.

Regulatory Flexibility Act

Because no notice of proposed

rulemaking was required in connection

with the adoption of this interim final

rule, no regulatory flexibility analysis is

required under the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.).

Even so, the Secretary of Veterans

Affairs hereby certifies that this 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 rule would permit VA to

continue to pay educational assistance

for veterans enrolled in flight courses at

pilot schools, flight training centers, and

institutions of higher education that

offer flight courses. While changes

caused by this rule would affect how

many veterans would be enrolled in

flight courses, the change in the number

of veterans would not significantly

affect the total number of students

enrolled in flight courses, nor would

this rule otherwise have more than a

minuscule economic impact on any

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

rule, therefore, is exempt from the

initial and final regulatory flexibility

analyses requirements of §§ 603 and

604.

The Catalog of Federal Domestic

Assistance numbers for programs

affected by this rule are 64.120 and

64.124. This rule also affects the

Montgomery GI Bill—Selected Reserve

program, which has 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, Educational

institutions, 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.

For the reasons set forth in the

preamble, 38 CFR part 21 (subparts D

and K) is amended as set forth below:

PART 21—VOCATIONAL

REHABILITATION AND EDUCATION

Subpart D—Administration of

Educational Assistance Programs

1. The authority for part 21, subpart

D continues to read as follows:

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

501(a), chs. 30, 32, 34, 35, 36, unless

otherwise noted.

2. In § 21.4200, paragraphs (x) and (y)

are added to read as follows:

§ 21.4200 Definitions.

* * * * *

(x) State. The term State has the same

meaning as provided in § 3.1(i) of this

chapter.

(Authority: 38 U.S.C. 101(20))

(y) Pilot certificate. A pilot certificate

is a pilot certificate issued by the

Federal Aviation Administration. The

term means a pilot’s license as that term

is used in 10 U.S.C. chapter 1606 and

38 U.S.C. chapters 30 and 32.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C.

3034(d), 3241(b))
Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 /Rules and Regulations 34129

3. In § 21.4201, paragraph (e)(3)(ii) is

revised to read as follows:

§ 21.4201 Restrictions on enrollment;

percentage of students receiving financial

support.

* * * * *

(e) * * *

(3) * * *

(ii) The 85–15 percent ratio for flight

courses shall be computed by

comparing the number of hours of

training received by or tuition charged

to nonsupported students in the

preceding 30 days to the total number

of hours of training received by or

tuition charged to all students in the

same period. All approved courses

offered under 14 CFR parts 141 and 142

at a flight school will be considered to

be one course for the purpose of making

this computation. Similarly, all other

approved courses offered at a flight

school will be considered to be one

course for the purpose of making this

computation. In this computation hours

of training or tuition charges for

students enrolled—

(A) In the recreational pilot

certification course and the private pilot

certification course will be excluded;

(B) In a ground instructor certification

course will be included;

(C) In courses approved under 14 CFR

part 141, other than a ground instructor

certification course, will be actual hours

of logged instructional flight time or the

charges for those hours; and

(D) In courses not approved under 14

CFR part 141, such as courses offered by

flight simulator or courses for navigator

or flight engineer, shall include ground

training time or charges; actual logged

instructional flight time or charges; and

instructional time in a flight simulator

or charges for that training.

* * * * *

4. In § 21.4233, paragraph (e) is

revised; and an authority citation is

added to paragraph (e) to read as

follows:

§ 21.4233 Combination.

* * * * *

(e) Contract. All or part of the

program of education of a school may be

provided by another school or entity

under contract. Such school or entity

actually providing the training must

obtain approval of the course from the

State approving agency in the State

having jurisdiction of that school or

entity. If the course is a course of flight

training, the school or entity actually

providing the training must also obtain

approval of the course from the Federal

Aviation Administration. Measurement

of the course and payment of an

allowance will be appropriate for the

course as offered by the school or entity

actually providing the training.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C.

3002(8), 3034(d), 3202(4), 3241(b), 3452(c),

3501(a)(6), 3675, 3676)

5. Section 21.4235 is added to read as

follows:

§ 21.4235 Programs of education that

include flight training.

VA will use the provisions of this

section to determine whether an

individual may be paid educational

assistance for pursuit of flight training.

See § 21.4263 for approval of flight

courses for VA training.

(a) Eligibility. A veteran or

servicemember who is otherwise

eligible to receive educational assistance

under 38 U.S.C. chapter 30 or 32, or a

reservist who is eligible for expanded

benefits under 10 U.S.C. chapter 1606 as

provided in § 21.7540(b), may receive

educational assistance for flight training

in an approved course provided that the

individual meets the requirements of

this paragraph. Except when enrolled in

a ground instructor certification course

or when pursuing flight training under

paragraph (f) of this section, the

individual must—

(1) Possess a valid private pilot

certificate or higher pilot certificate

such as a commercial pilot certificate;

(2) Hold a second-class medical

certificate on the first day of training,

and continuously during training unless

the individual is enrolled in an Airline

Transport Pilot (ATP) certification

course; and

(3) If enrolled in an ATP certification

course, hold a first-class medical

certificate on the first day of training

and continuously during training.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C.

3034(d), 3241(b))

(b) Approval of program. VA may

approve the individual’s program of

education as described on the

individual’s application if:

(1) The flight courses that constitute

the program of education meet Federal

Aviation Administration standards for

such courses and the Federal Aviation

Administration and the State approving

agency approve them; and

(2) The flight training included in the

program—

(i) Is generally accepted as necessary

for the attainment of a recognized

vocational objective in the field of

aviation; or

(ii) Is given by an educational

institution of higher learning for credit

toward a standard college degree that

the individual is pursuing.

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

3002(3)(A), 3034(a), 3202(2)(A), 3241(a),

3241(b), 3452(b), 3680A(a)(3))

(c) Pursuit of a program of education.

(1) Except as provided in paragraph

(c)(2) of this section, an individual who

is pursuing a program of education

described in paragraph (b)(2)(i) of this

section must first enroll in a commercial

pilot certification course. If the

individual wants to obtain a commercial

pilot certification course in an airplane

or powered lift category and does not

already have an instrument rating, he or

she must also enroll in an instrument

rating course simultaneously with the

commercial pilot course.

(2) The provisions of paragraph (c)(1)

of this section do not apply to an

individual who—

(i) Already has a commercial pilot

certificate; or

(ii) Wishes to become a ground

instructor through an enrollment in a

ground instructor certification course.

(3) Unless the provisions of paragraph

(b)(1)(ii), (c)(2)(i), or (c)(2)(ii) of this

section apply to an individual’s

enrollment, VA will not pay for any

enrollment in a flight course that

precedes enrollment in a commercial

pilot certification course.

(4) Except for the enrollment

described in paragraph (c)(1) of this

section, the individual must enroll in

only one flight course at a time.

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

3002(3)(A), 3034(a), 3202(2)(A), 3241(a),

3241(b), 3452(b), 3680A(a)(3))

(d) Some individuals are already

qualified for a flight course objective. (1)

The provisions of §§ 21.5230(a)(4),

21.7110(b)(4), and 21.7610(b)(4),

prohibiting payment of educational

assistance for enrollment in a course for

whose objective the individual is

already qualified, apply to enrollments

in flight courses.

(2) A former military pilot with the

equivalent of a commercial pilot

certificate and an instrument rating may

obtain a commercial pilot certificate and

instrument rating from the Federal

Aviation Administration without a

flight exam within 12 months of release

from active duty. Therefore, VA will

consider such a veteran to be already

qualified for the objectives of a

commercial pilot certification course

and an instrument rating course if begun

within 12 months of the individual’s

release from active duty.

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

3034(a), 3241(a), 3241(b), 3471(4))

(e) Some flight courses are refresher

training. The provisions of

§§ 21.5230(c), 21.7020(b)(26),
34130 Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 /Rules and Regulations

21.7122(b), 21.7520(b)(20), and

21.7610(b)(4) that provide limitations on

payment for refresher training that is

needed to update an individual’s

knowledge and skill in order to cope

with technological advances while he or

she was on active duty service apply to

flight training.

(1) An individual who held a Federal

Aviation Administration certificate

before or during active duty service may

have surrendered that certificate or the

Federal Aviation Administration may

have canceled it. The individual may

receive the equivalent of the number of

months of educational assistance

necessary to complete the course that

will qualify him or her for the same

grade certificate.

(2) A reservist is not eligible for

refresher training unless he or she has

had prior active duty.

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

3002(3)(A), 3034(a)(3), 3202(2)(A), 3241(a),

3241(b))

(f) Flight training at an institution of

higher learning. (1) An individual who

is eligible for educational assistance

under 10 U.S.C. chapter 1606 or 38

U.S.C. chapter 30, 32, or 35 is exempt

from the provisions of paragraphs (a)(2)

through (d) of this section when his or

her courses include flight training that

is part of a program of education that

leads to a standard college degree.

(2) An individual described in

paragraph (f)(1) of this section may

pursue courses that may result in the

individual eventually receiving

recreational pilot certification or private

pilot certification, provided that the

courses also lead to a standard college

degree.

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

3002(3)(A), 3034(a)(3), 3202(2)(A), 3241(a),

3241(b))

6. In § 21.4263, paragraphs (h), (i), (j),

and (k) are redesignated as paragraphs

(i), (j), (k), and (l), respectively; newly

redesignated paragraph (i) introductory

text is amended by removing ‘‘(g)(3)’’

and adding, in its place, ‘‘(e)’’ and by

removing ‘‘(h)(1)’’ and adding, in its

place, ‘‘(i)(1)’; newly redesignated

paragraph (i)(1) introductory text is

amended by removing ‘‘(h)(4)’’ and

adding, in its place, ‘‘(i)(4)’; newly

redesignated paragraph (i)(2) is

amended by removing ‘‘H’’ and adding,

in its place ‘‘J’; newly redesignated

paragraph (i)(4)(i) is amended by

removing ‘‘(h)(1)(ii)’’ and adding, in its

place ‘‘(i)(1)(ii)’; the authority citation

for newly redesignated paragraph

(i)(4)(ii) is removed; newly redesignated

paragraph (i)(4)(iii) is amended by

removing ‘‘(h)(1)(i)’’ and adding, in its

place, ‘‘(i)(1)(i)’; newly redesignated

paragraph (j) introductory text is

amended by removing ‘‘(h)(1)(i)’’ and

adding, in its place, ‘‘(i)(1)(i)’; the

section heading, paragraphs (a), (b), (c),

(d), (e), (f), and (g), newly redesignated

paragraphs (i)(1)(iii), and (l), and the

authority citations for newly

redesignated paragraphs (i) introductory

text, (i)(1), (i)(2), (i)(3), (i)(4), (j)(3), (j)(4),

and (k) are revised; and new paragraphs

(h) and(i)(1)(iv), and authority citations

for newly redesignated paragraphs (j)(1)

and (j)(2) are added, to read as follows:

§ 21.4263 Approval of flight training

courses.

(a) A flight school or institution of

higher learning are the only entities that

can offer flight courses. A State

approving agency may approve a flight

course only if a flight school or an

institution of higher learning offers the

course. A State approving agency may

not approve a flight course if an

individual instructor offers it. The

provisions of § 21.4150 shall determine

the proper State approving agency for

approving a flight course.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C.

3032(d), 3241(b), 3671, 3672, 3676)

(b) Definition of flight school. A flight

school is a school, other than an

institution of higher learning, or is an

entity, such as an aero club; is located

in a State; and meets one of the

following sets of requirements:

(1) The Federal Aviation

Administration has issued the school or

entity either a pilot school certificate or

a provisional pilot school certificate

specifying each course the school is

approved to offer under 14 CFR part

141;

(2) The entity is either a flight training

center or an air carrier that does not

have a pilot school certificate or

provisional pilot school certificate

issued by the Federal Aviation

Administration under 14 CFR part 141,

but pursuant to a grant of exemption

letter issued by the Federal Aviation

Administration under 14 CFR part 61 is

permitted to offer pilot training by a

flight simulator instead of an actual

aircraft; or

(3) The Federal Aviation

Administration has issued the school or

entity a training center certificate under

14 CFR part 142.

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

3034(a), 3241(a), 3452(c))

(c) Aero club courses. An aero club,

established, formed, and operated under

authority of service department

regulations as a nonappropriated sundry

fund activity, is an instrumentality of

the Federal government. Consequently,

VA has exclusive jurisdiction over

approval of flight courses offered by

such aero clubs.

(Authority: 38 U.S.C. 3671, 3672)

(d) Approval of flight training as part

of a degree program. A State approving

agency may approve a flight training

course that is part of a program of

education leading to a standard college

degree provided the course and program

meet the requirements of § 21.4253 or

§ 21.4254, as appropriate. The

institution of higher learning offering

the course need not be a flight school.

(Authority: 38 U.S.C. 3675, 3676)

(e) Approval of flight training courses

that are not part of a degree program.

A flight course is subject to the same

approval requirements as any other

course. In addition, the State approving

agency must apply the following

provisions to the approval of flight

courses:

(1) The Federal Aviation

Administration must approve the

course; and

(2)(i) The course must meet the

requirements of 14 CFR part 63 or 141,

and a flight school described in

paragraph (b)(1) or (b)(3) of this section

must offer it; or

(ii) The course must meet the

requirements of 14 CFR part 61, and

either be offered—

(A) By a flight school described in

paragraph (b)(3) of this section; or

(B) In whole or in part by a flight

simulator pursuant to a grant of

exemption letter issued by the Federal

Aviation Administration to the flight

school offering the course.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C.

3034(d), 3241(b), 3676, 3680A)

(f) Application of 38 U.S.C.

3680A(e)(2) to flight training.

Notwithstanding the fact that the

Federal Aviation Administration will

permit flight schools to conduct training

at a base other than the main base of

operations if the requirements of either

14 CFR 141.91 or 14 CFR 142.17 are

met, the satellite base is considered

under 38 U.S.C. 3680A(e)(2) to be a

branch of the principal school, and must

meet the requirements of 38 U.S.C.

3680A(e)(2).

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

3034(a), 3241(a), 3241(b), 3680A))

(g) Providing a flight course under

contract between schools or entities.

When a school or entity offers all or part

of a flight course under a contract with

another school or entity, the State

approving agency must apply § 21.4233

in the following manner:

(1) The requirements of § 21.4233(e)

must be met for all contracted flight
Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 /Rules and Regulations 34131

instruction, instruction by flight training

device, flight simulator instruction, and

ground school training. Ground school

training may be given through a ground

school facility operated jointly by two or

more flight schools in the same locality;

and

(2) The responsibility for providing

the instruction lies with the flight

school. The degree of affiliation between

the flight school and the entity or other

school that actually does the instructing

must be such that all charges for

instruction are made by, and paid to,

one entity having jurisdiction and

control over both the flight and ground

portions of the program.

(Authority: 10 U.S.C. 16136(c); 38 U.S.C.

3032(d), 3241(b))

(h) Nonaccredited courses. (1)

Application of § 21.4254 to flight

training. The provisions of § 21.4254 are

applicable to approval of flight training

courses.

(2) Additional instruction

requirements. The State approving

agency will apply the following

additional requirements to a flight

course:

(i) All flight instruction, instruction

by flight training device, flight simulator

instruction, preflight briefings and

postflight critiques, and ground school

training in a course must be given by the

flight school or under suitable

arrangements between the school and

another school or entity such as a local

community college.

(ii) All ground school training

connected with the course must be in

residence under the direction and

supervision of a qualified instructor

providing an opportunity for interaction

between the students and the instructor.

Simply making provision for having an

instructor available to answer questions

does not satisfy this requirement.

(Authority: 38 U.S.C. 3676)

(i) * * *

(Authority: 10 U.S.C. 16136(c); 38 U.S.C.

3002(3), 3202(2), 3452(b))

(1) * * *

(iii) The maximum number of hours

of instruction by flight simulator or

flight training device that a State

approving agency may approve is the

maximum number of hours of

instruction by flight simulator or flight

training device permitted by 14 CFR

part 61 for that course when:

(A) A course is offered in whole or in

part by flight simulator or flight training

device conducted by a training center

certificated under 14 CFR part 142; and

(B) 14 CFR part 61 contains a

maximum number of hours of

instruction by flight simulator or flight

training device that may be credited

toward the requirements of the rating or

certificate that is the objective of the

course.

(iv) If a course is offered in whole or

in part by flight simulator or flight

training device, and the course is not

described in paragraph (i)(1)(iii) of this

section, either because the course is

offered by a flight training center with

a grant of exemption letter, or because

14 CFR part 61 does not contain a

maximum number of hours of

instruction by flight simulator or flight

training device, the maximum number

of hours of instruction by flight

simulator or flight training device that

may be approved may not exceed the

number of hours in the Federal Aviation

Administration-approved outline.

(Authority: 10 U.S.C. 16131(g); 38 U.S.C.

3032(f), 3231(f))

(2) * * *

(Authority: 10 U.S.C. 16136(c); 38 U.S.C.

3002(3), 3202(2), 3452(b))

(3) * * *

(Authority: 10 U.S.C. 16131(f)(4); 16136(c),

38 U.S.C. 3002(3), 3032(f)(4), 3202(2),

3231(f)(4), 3452(b))

(4) * * *

(Authority: 10 U.S.C. 16131(f)(4); 38 U.S.C.

3032(f)(4), 3231(f)(4))

(j) * * *

(1) * * *

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

3034(d), 3241(c), 3690(a)(1))

(2) * * *

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

3034(d), 3241(c), 3690(a)(1))

(3) * * *

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

3034(d), 3241(c), 3690(a)(1))

(4) * * *

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

3034(d), 3241(c), 3690(a)(1))

(k) * * *

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

U.S.C. 3034(d), 3672(a))

(l) Enrollment limitations. A flight

course must meet the 85–15 percent

ratio requirement set forth in § 21.4201

before VA may approve new

enrollments in the course. The

contracted portion of a flight course

must meet all the requirements of

§ 21.4201 for each subcontractor.

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

3034(d), 3241(c), 3680A(d))

Subpart K—All Volunteer Force

Educational Assistance Program

(Montgomery GI Bill—Active Duty)

7. The authority for part 21, subpart

K continues to read as follows:

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

unless otherwise noted.

8. In § 21.7220, paragraph (c) is

amended by removing ‘‘Flight training

when administering’’ and adding, in its

place, ‘‘when approving’.

[FR Doc. 98–16579 Filed 6–22–98; 8:45 am]

BILLING CODE 8320–01–P

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: Final rule.

SUMMARY: This document amends the

educational-assistance and educationalbenefit regulations of the Department of

Veterans Affairs (VA). It establishes

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 correspond

with a statutory mandate for the

effective dates. The final rule also

clarifies that these veterans may not

receive educational assistance for

training that occurs before they pay the

Federal government $1,200.

DATES: Effective Date: July 23, 1998.

Applicability Dates: The effective

dates are retroactive from the effective

dates of the statutory provisions.

FOR FURTHER INFORMATION CONTACT:

William G. Susling, Jr., Education

Advisor, Education Service (225C),

Veterans Benefits Administration,

Department of Veterans Affairs, (202)

273–7187.

SUPPLEMENTARY INFORMATION: In a

document published in the Federal

Register on December 18, 1997 (62 FR

66320), VA proposed to amend the ‘‘All

Volunteer Force Educational Assistance

Program (Montgomery GI Bill—Active

Duty)’’ regulations as set forth in the

SUMMARY portion of this document.

Interested persons were given 60 days

to submit comments. No comments

were received. Based on the rationale

set forth in the proposed rule, we are