I

106TH CONGRESS

1ST SESSION H. R. 1182

To amend title 38, United States Code, to expand and improve the Montgomery GI Bill by creating an enhanced educational assistance program

for enlistments or reenlistments of four years active duty service, and

by eliminating the reduction in pay for basic educational benefits.

IN THE HOUSE OF REPRESENTATIVES

MARCH 18, 1999

Mr. STUMP (for himself, Mr. SPENCE, Mr. SMITH of New Jersey, Mr. QUINN,

Mr. EVERETT, Mr. HAYWORTH, Mrs. CHENOWETH, Mr. LAHOOD, Mr.

HANSEN, Mr. MCKEON, Mr. GIBBONS, Mr. TALENT, and Mr. BILIRAKIS)

introduced the following bill; which was referred to the Committee on

Veterans’ Affairs, and in addition to the Committee on Armed Services,

for a period to be subsequently determined by the Speaker, in each case

for consideration of such provisions as fall within the jurisdiction of the

committee concerned

A BILL

To amend title 38, United States Code, to expand and improve the Montgomery GI Bill by creating an enhanced

educational assistance program for enlistments or reenlistments of four years active duty service, and by

eliminating the reduction in pay for basic educational

benefits.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Servicemembers Edu3 cational Opportunity Act of 1999’’.

4 SEC. 2. ENHANCED BENEFITS UNDER MONTGOMERY GI

5 BILL FOR FOUR YEARS OF ACTIVE-DUTY

6 SERVICE.

7 (a) IN GENERAL.—Chapter 30 of title 38, United

8 States Code, is amended by adding at the end the fol9 lowing new subchapter:

10 ‘‘SUBCHAPTER V—ENHANCED EDUCATIONAL

11 ASSISTANCE

12 ‘‘§ 3041. Enhanced educational assistance entitlement

13 ‘‘(a) ENTITLEMENT.—An eligible individual is enti14 tled to enhanced educational assistance under this sub15 chapter.

16 ‘‘(b) ELIGIBLE INDIVIDUAL DEFINED.—For pur17 poses of this subchapter, the term ‘eligible individual’

18 means an individual who meets the service requirement

19 described in subsection (c), who meets the education com20 pletion requirements described in subsection (d), and

21 whose status after completion of such service is described

22 in section 3011(a)(3) of this title. Such term does not in23 clude an individual described in paragraph (1) or (2) of

24 section 3011(c) of this title.

25 ‘‘(c) SERVICE REQUIREMENT.—(1) The service re26 quirement referred to in subsection (b) is as follows:
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1 ‘‘(A) After September 30, 1999, the

2 individual—

3 ‘‘(i) first enters on active duty;

4 ‘‘(ii) reenlists or extends an enlistment on

5 active duty as a member of the Armed Forces;

6 or

7 ‘‘(iii) in the case of an officer, continues to

8 serve on active duty after that date.

9 ‘‘(B) From the date of such entry, reenlistment,

10 extension, or continuation, as the case may be, the

11 individual—

12 ‘‘(i) serves a continuous period of active

13 duty of at least four years in the Armed Forces;

14 or

15 ‘‘(ii) serves on active duty in the Armed

16 Forces and is discharged or released from ac17 tive duty—

18 ‘‘(I) as provided in subclause (I) of

19 section 3011(a)(1)(A)(ii) of this title;

20 ‘‘(II) for the convenience of the Gov21 ernment, after having completed not less

22 that 42 months of continuous active duty;

23 or

24 ‘‘(III) as provided in subclause (III)

25 of section 3011(a)(1)(A)(ii) of this title.
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1 ‘‘(2) In determining service under paragraph (1), the

2 following rules apply:

3 ‘‘(A) Any period of service described in para4 graph (2) or (3) of section 3011(d) of this title that

5 applies to an eligible individual under this section

6 shall not be considered a part of the individual’s pe7 riod of active duty.

8 ‘‘(B) A member described in paragraph (2) of

9 section 3011(f) of this title who serves the periods

10 of active duty referred to in such paragraph shall be

11 deemed to have served a continuous period of active

12 duty the length of which is the aggregate length of

13 the periods of active duty referred to in such para14 graph.

15 ‘‘(C) Subsections (g) and (h) of section 3011 of

16 this title apply with respect to an eligible individual

17 under this section in the same manner as they apply

18 to an individual under section 3011 of this title.

19 ‘‘(d) EDUCATION COMPLETION REQUIREMENTS.—

20 The education completion requirement referred to in sub21 section (b) is that the individual shall have completed the

22 requirements of a secondary school diploma (or equiva23 lency certificate) by not later than the original ending date

24 of the individual’s period of active duty described in sub25 section (c)(1) regardless of whether the individual is dis-
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1 charged or released from active duty on such date. An in2 dividual may meet the requirement of this subsection by

3 having been granted credit for the equivalent of 12 semes4 ter hours in a program of education leading to a standard

5 college degree before the end of the individual’s period of

6 active duty described in subsection (c)(1).

7 ‘‘(e) ELECTION OF BASIC EDUCATIONAL ASSIST8 ANCE.—(1) An eligible individual entitled to enhanced

9 educational assistance under this subchapter may elect (in

10 a form and manner prescribed by the Secretary) to receive

11 basic educational assistance under subchapter II in lieu

12 of such enhanced educational assistance for an enrollment

13 period. Such an election shall be made by not later than

14 30 days before the beginning of the enrollment period.

15 ‘‘(2) An eligible individual may revoke an election

16 made pursuant to paragraph (1), but in no case may such

17 revocation be made later than 30 days before the begin18 ning of the enrollment period.

19 ‘‘§ 3042. Duration of enhanced educational assistance

20 ‘‘(a) IN GENERAL.—Subject to section 3695 of this

21 title and except provided in subsection (b), each individual

22 entitled to enhanced educational assistance under section

23 3041 of this title is entitled to a monthly enhanced edu24 cational assistance allowance under this subchapter for a

25 period or periods not to exceed a total of 36 months (or
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1 the equivalent thereof in part-time enhanced educational

2 assistance).

3 ‘‘(b) SPECIAL RULE FOR CERTAIN EARLY SEPARA4 TIONS.—Subject to section 3695 of this title, in the case

5 of an individual described in subclause (I) or (III) of sec6 tion 3041(c)(1)(B)(ii) who does not serve a continuous pe7 riod of active duty of at least four years in the Armed

8 Forces (as described in section 3041(c)(1)(B)(i) of this

9 title), the individual is entitled to one month of enhanced

10 educational assistance benefits under this subchapter (not

11 to exceed a total of 36 months (or the equivalent thereof

12 in part-time enhanced educational assistance)) for each

13 month of continuous active duty served by the individual

14 beginning with the date on which the entry on active duty,

15 reenlistment, enlistment extension, or continuation appli16 cable to that individual under section 3041(c)(1)(A) of

17 this title begins.

18 ‘‘§ 3043. Payment of educational expenses

19 ‘‘(a) IN GENERAL.—(1) Subject to paragraph (2), the

20 Secretary shall pay to the educational institution providing

21 a course under an approved program of education to an

22 eligible individual under this subchapter who is enrolled

23 in the course an amount equal to 90 percent of the actual

24 cost of tuition and fees otherwise payable by the indi25 vidual.
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1 ‘‘(2) Such cost may not exceed the amount charged

2 to similarly circumstanced nonveterans.

3 ‘‘(b) STIPEND; COSTS OF BOOKS AND SUPPLIES.—

4 The Secretary shall pay to each eligible individual under

5 this subchapter who is pursuing an approved program of

6 education—

7 ‘‘(1) a stipend as provided in section 3044 of

8 this title; and

9 ‘‘(2) in accordance with regulations prescribed

10 by the Secretary, a sum equal to the reasonable cost

11 of books and supplies determined to be required by

12 similarly circumstanced nonveterans.

13 ‘‘(c) INCLUSION IN INCOME FOR ELIGIBILITY DE14 TERMINATIONS FOR FEDERAL EDUCATIONAL LOANS.—

15 For purposes of determining untaxed income and benefits

16 for eligibility for student assistance under the provisions

17 of title IV of the Higher Education Act of 1965 (20 U.S.C.

18 1070 et seq.), amounts payable with respect to an eligible

19 individual under subsections (a) and (b)(2) shall not be

20 considered veterans education benefits for purposes of sec21 tion 480(vv) of such Act (20 U.S.C. 1087(vv)).

22 ‘‘§ 3044. Amount of stipend

23 ‘‘(a) IN GENERAL.—Except as provided in section

24 3042 of this title, the stipend under this subchapter shall
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1 be paid at a monthly rate (as that rate may be increased

2 pursuant to subsection (b)) as follows:

3 ‘‘(1) At the monthly rate of $600 for an ap4 proved program of education pursued on a full-time

5 basis.

6 ‘‘(2) At the monthly rate of $450 for an ap7 proved program of education pursued on a three8 quarter-time basis.

9 ‘‘(3) At the monthly rate of $300 for an ap10 proved program of education pursued on a half-time

11 basis.

12 ‘‘(4) At the monthly rate of $150 for an ap13 proved program of education pursued on less than a

14 half-time basis.

15 ‘‘(b) ADJUSTMENT FOR INFLATION.—With respect to

16 any fiscal year beginning after fiscal year 2000, the Sec17 retary shall increase the rate paid under subsection (a)(1)

18 for the previous fiscal year by the percentage applicable

19 under section 3015(g) of this title.

20 ‘‘§ 3045. Tutorial assistance

21 ‘‘An individual entitled to an enhanced educational

22 assistance allowance under this subchapter shall be enti23 tled to benefits provided an individual under section 3019

24 of this title, subject to the conditions provided in such sec25 tion.’’.
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1 (b) CONFORMING AMENDMENTS.—(1) Section 3002

2 of such title is amended by inserting at the end the fol3 lowing new paragraph:

4 ‘‘(9) The term ‘enhanced educational assistance’

5 means educational assistance provided under subchapter

6 V.’’.

7 (2) Section 3011 of such title is amended in sub8 sections (f)(1) and (g) by striking ‘‘chapter’’ each place

9 it appears and inserting ‘‘subchapter’’.

10 (3) Section 3018 of such title is amended by striking

11 ‘‘educational assistance under this chapter’’ each place it

12 appears and inserting ‘‘educational assistance under this

13 subchapter’’.

14 (4) Section 3018A(a) of such title is amended by

15 striking ‘‘education assistance under this chapter’’ and in16 serting ‘‘educational assistance under this subchapter’’.

17 (5) Section 3018B of such title is amended by strik18 ing ‘‘education assistance under this chapter’’ each place

19 it appears and inserting ‘‘educational assistance under

20 this subchapter’’.

21 (6) Section 3018C of such title is amended—

22 (A) in subsection (a), by striking ‘‘educational

23 assistance under this chapter’’ and inserting ‘‘edu24 cational assistance under this subchapter’’; and
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1 (B) in subsection (b), by striking ‘‘education as2 sistance under this chapter’’ and inserting ‘‘edu3 cational assistance under this subchapter’’.

4 (7) Section 3019 of such title is amended by striking

5 out ‘‘chapter’’ each place it appears and inserting in lieu

6 thereof ‘‘subchapter’’.

7 (8) Section 3031 of such title is amended—

8 (A) in subsection (f), by inserting ‘‘or 3042 of

9 this title’’ after ‘‘section 3013’’ each place it ap10 pears; and

11 (B) in subsection (g), by inserting ‘‘or

12 3031(c)(1)(B)(ii)(III)’’ after ‘‘section

13 3011(a)(1)(A)(ii)(III)’’.

14 (9) Section 3032(e)(3) of such title is amended by

15 inserting ‘‘, or section 3044(a)(1)’’ after ‘‘section 3015’’.

16 (c) CLERICAL AMENDMENT.—The table of sections

17 at the beginning of chapter 30 of title 38, United States

18 Code, is amended by adding at the end the following new

19 items:

‘‘SUBCHAPTER V—ENHANCED EDUCATIONAL ASSISTANCE

‘‘3041. Enhanced educational assistance entitlement.

‘‘3042. Duration of enhanced educational assistance.

‘‘3043. Payment of educational expenses.

‘‘3044. Amount of stipend.

‘‘3045. Tutorial assistance.’’.

20 SEC. 3. REPEALS OF PAY REDUCTION AND ELECTION OF

21 BENEFITS.

22 (a) REPEALS.—
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1 (1) ACTIVE DUTY PROGRAM.—(A) Section 3011

2 of title 38, United States Code, is amended—

3 (i) by striking subsection (b); and

4 (ii) in subsection (c), by striking out para5 graph (1) and redesignating paragraphs (2) and

6 (3) as paragraphs (1) and (2), respectively.

7 (B) Section 3012 of such title is amended—

8 (i) by striking subsection (c); and

9 (ii) in subsection (d), by striking out para10 graph (1) and redesignating paragraphs (2) and

11 (3) as paragraphs (1) and (2), respectively.

12 (2) OPPORTUNITIES TO WITHDRAW ELECTION

13 NOT TO ENROLL.—(A) Section 3016(a)(1) of such

14 title is amended by striking ‘‘, and does not make

15 an election under section 3011(c)(1) or section

16 3012(d)(1)’’.

17 (B) Sections 3018A, 3018B, and 3018C of

18 such title are each amended by adding at the end

19 the following new subsection:

20 ‘‘(e) Notwithstanding subsection (b), no reduction in

21 the pay of an individual under this section shall be made

22 for months beginning after September 30, 1999. Any obli23 gation of such individual under subsection (b), as of Sep24 tember 30, 1999, shall be deemed to be fully satisfied as

25 of such date.’’.
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1 (3) TERMINATION OF REDUCTIONS IN

2 PROGRESS.—Any reduction in the basic pay of an

3 individual referred to in subsection (b) of section

4 3011 of title 38, United States Code, by reason of

5 such subsection, or of any individual referred to in

6 subsection (c) of section 3012 of such title by reason

7 of such subsection, shall cease commencing with

8 months beginning after September 30, 1999, and

9 any obligation of such individual under such sub10 sections, as the case may be, as of September 30,

11 1999, shall be deemed to be fully satisfied as of such

12 date.

13 (b) EDUCATION OUTREACH SERVICES TO MEMBERS

14 OF THE ARMED FORCES.—Section 3034(e)(1) of title 38,

15 United States Code, is amended to read as follows:

16 ‘‘(e)(1) Not later than one year after an individual

17 initially enters on active duty as a member of the Armed

18 Forces, and at such additional times as the Secretary de19 termines appropriate, the Secretary shall furnish the indi20 vidual the information described in paragraph (2).’’.

21 (c) EFFECTIVE DATE.—The amendments made by

22 this section shall take effect on October 1, 1999, and apply

23 to individuals whose initial obligated period of active duty
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1 under section 3011 or 3012 of title 38, United States

2 Code, as the case may be, begins on or after such date.

Æ