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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5684 Introduced in House (IH)]

110th CONGRESS
  2d Session
                                H. R. 5684

To amend title 38, United States Code, to make certain improvements in 
the basic educational assistance program administered by the Secretary 
              of Veterans Affairs, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 2, 2008

   Ms. Herseth Sandlin (for herself and Mr. Boozman) introduced the 
   following bill; which was referred to the Committee on Veterans' 
Affairs, and in addition to the Committee on Education and Labor, 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 make certain improvements in 
the basic educational assistance program administered by the Secretary 
              of Veterans Affairs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Veterans Education 
Improvement Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Increase in amount of basic educational assistance.
Sec. 3. Extension of time limitation for use of eligibility and 
                            entitlement to educational assistance.
Sec. 4. Monthly stipend for recipients of educational assistance 
                            allowance.
Sec. 5. Extension of period for collection of fee for basic educational 
                            assistance.
Sec. 6. Use of educational assistance for business courses and 
                            seminars.
Sec. 7. Use of educational assistance for courses taken to prepare for 
                            licensing or certification tests.
Sec. 8. Use of educational assistance to repay Federal student loans.
Sec. 9. Opportunity to withdraw election not to enroll in educational 
                            assistance program.
Sec. 10. Montgomery GI Bill benefits not to reduce financial aid.
Sec. 11. Extension of increase in benefit for certain individuals 
                            pursuing apprenticeships or on-job 
                            training.
Sec. 12. Modification of amount available for reimbursement of State 
                            and local agencies administering veterans 
                            education benefits.
Sec. 13. Provision of basic educational assistance benefits for 
                            veterans discharged from active duty with 
                            general discharge.
Sec. 14. Increase in amount of reporting fee payable to educational 
                            institutions that enroll veterans receiving 
                            educational assistance.
Sec. 15. Provision of additional areas of work-study for veterans.
Sec. 16. 5-year pilot program for on-campus work-study positions.
Sec. 17. Increase in employees for Education Service.
Sec. 18. Upgrade of certain information technology.
Sec. 19. Modification of advance payment of initial educational 
                            assistance or subsistence allowance.

SEC. 2. INCREASE IN AMOUNT OF BASIC EDUCATIONAL ASSISTANCE.

    (a) Increase.--Section 3015 of title 38, United States Code, is 
amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (A), by striking ``January 1, 
                2002, $800'' and inserting ``January 1, 2009, $1,450'';
                    (B) by striking subparagraphs (B) and (C); and
                    (C) by redesignating subparagraph (D) as 
                subparagraph (B); and
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``January 1, 
                2002, $650'' and inserting ``January 1, 2009, $1,250'';
                    (B) by striking subparagraphs (B) and (C); and
                    (C) by redesignating subparagraph (D) as 
                subparagraph (B).
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to a payment of educational assistance for a month 
beginning after the date that is 90 days after the date of the 
enactment of this Act.

SEC. 3. EXTENSION OF TIME LIMITATION FOR USE OF ELIGIBILITY AND 
              ENTITLEMENT TO EDUCATIONAL ASSISTANCE.

    (a) Extension of Time Limitation.--Section 3031 of title 38, United 
States Code, is amended by striking ``10-year period'' each place it 
appears and inserting ``15-year period''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to an individual who is entitled to educational 
assistance under chapter 30 of such title on the date that is 90 days 
after the date of the enactment of this Act or who becomes entitled to 
educational assistance under such chapter after such date.

SEC. 4. MONTHLY STIPEND FOR RECIPIENTS OF EDUCATIONAL ASSISTANCE 
              ALLOWANCE.

    (a) Entitlement to Monthly Stipend.--Subchapter II of chapter 30 of 
title 38, United States Code, is amended by adding at the end the 
following new section:
``Sec. 3020A. Educational stipend
    ``(a) Entitlement.--Each individual who is receiving educational 
assistance under this chapter and who is pursuing a program of 
education at an institution of higher learning (as such term is defined 
in section 3452(f) of this title) is entitled to an educational stipend 
under this section.
    ``(b) Amount of Stipend.--An educational stipend under this section 
shall be paid to an individual who is entitled to such a stipend--
            ``(1) in the case of an individual pursuing an approved 
        program of education on at least a half-time basis, at the 
        monthly rate of $500; and
            ``(2) in the case of an individual pursuing an approved 
        program of education on less than a half-time basis, at the 
        monthly rate of $250.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end of the items relating to 
subchapter II the following new item:

``3020A. Educational stipend.''.
    (c) Effective Date.--Section 3020A of title 38, United States Code, 
as added by subsection (a) shall take effect on the date that is two 
years after the date of the enactment of this Act and shall apply with 
respect to months beginning after that date.

SEC. 5. EXTENSION OF PERIOD FOR COLLECTION OF FEE FOR BASIC EDUCATIONAL 
              ASSISTANCE.

    (a) Basic Educational Assistance for Service on Active Duty.--
Section 3011(b)(1) of title 38, United States Code, is amended--
            (1) by striking ``$100'' and inserting ``$50''; and
            (2) by striking ``12'' and inserting ``24''.
    (b) Basic Educational Assistance for Service in the Selected 
Reserve.--Section 3012(c)(1) of such title is amended--
            (1) by striking ``$100'' and inserting ``$50''; and
            (2) by striking ``12'' and inserting ``24''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date that is 90 days after the date of the enactment of 
this Act.

SEC. 6. USE OF EDUCATIONAL ASSISTANCE FOR BUSINESS COURSES AND 
              SEMINARS.

    (a) Basic Educational Assistance.--Section 3452(b) of title 38, 
United States Code, is amended by adding at the end the following new 
sentence: ``Such term also includes business courses and seminars, if 
such courses or seminars are related to the operation of a business. 
Such term also includes continuing education courses, as designated by 
the Secretary.''.
    (b) Survivors' and Dependents' Educational Assistance.--Section 
3501(a)(5) of title 38, United States Code, is amended by adding at the 
end the following new sentences: ``Such term also includes business 
courses and seminars, if such courses or seminars are related to the 
operation of a business. Such term also includes continuing education 
courses, as designated by the Secretary.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date that is two years after the date of the 
enactment of this Act.

SEC. 7. USE OF EDUCATIONAL ASSISTANCE FOR COURSES TAKEN TO PREPARE FOR 
              LICENSING OR CERTIFICATION TESTS.

    (a) Basic Educational Assistance.--Section 3452(b) of title 38, 
United States Code, is amended by inserting after the fourth sentence 
the following new sentence: ``Such term also includes preparatory 
courses for licensing or certification tests described in the preceding 
sentence, as designated by the Secretary.''.
    (b) Survivors' and Dependents' Educational Assistance.--Section 
3501(a)(5) of title 38, United States Code, is amended by inserting 
after the second sentence the following new sentence: ``Such term also 
includes preparatory courses for licensing or certification tests 
described in the preceding sentence, as designated by the Secretary.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date that is two years after the date of the 
enactment of this Act.

SEC. 8. USE OF EDUCATIONAL ASSISTANCE TO REPAY FEDERAL STUDENT LOANS.

    (a) In General.--Subchapter II of chapter 30 of title 38, United 
States Code, as amended by section 4, is further amended by inserting 
after section 3020A the following new section:
``Sec. 3020B. Use of educational assistance benefits for the repayment 
              of Federal student loans for certain courses of education
    ``(a) Use of Benefits.--Notwithstanding any other provision of this 
chapter, an individual who is serving on active duty and who is 
entitled to educational assistance under this subchapter may apply 
amounts of such educational assistance otherwise available to the 
individual to repay some or all of any Federal student loan balance 
owed by the individual for a course of education.
    ``(b) Limitation on Payments.--(1) The amount of an individual's 
entitlement to educational assistance that the individual may apply to 
the repayment of a student loan balance under subsection (a) may not 
exceed $6,000 in any 12-month period.
    ``(2) In no event shall payment of educational assistance under 
this section exceed the amount of the individual's available 
entitlement under this chapter.
    ``(c) Amount of Payments.--The Secretary shall make monthly 
payments under this section in such amounts as the individual may elect 
for the repayment of a Federal student loan of such an individual.
    ``(d) Arrangements To Make Payments.--The Secretary shall enter 
into such arrangements, and shall prescribe such regulations, as may be 
necessary to carry out this section.
    ``(e) Federal Student Loan Defined.--In this section, the term 
`Federal student loan' means any loan made under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.).''.
    (b) Clerical Amendment.--The table of sections of subchapter II of 
chapter 30 of such title is amended by inserting after the item 
relating to section 3020 the following new item:

``3020B. Use of educational assistance benefits for the repayment of 
                            Federal student loans for certain courses 
                            of education.''.
    (c) Effective Date.--Section 3020B of title 38, United States Code, 
as added by subsection (a) shall apply with respect to educational 
assistance paid for months beginning after the date that is two years 
after the date of the enactment of this Act.

SEC. 9. OPPORTUNITY TO WITHDRAW ELECTION NOT TO ENROLL IN EDUCATIONAL 
              ASSISTANCE PROGRAM.

    (a) Basic Educational Assistance for Active Duty Service.--
            (1) Opportunity to withdraw.--Subsection (c) of section 
        3011 of title 38, United States Code, is amended by adding at 
        the end the following new paragraph:
    ``(4) An individual who makes an election not to receive 
educational assistance under paragraph (1) may withdraw that election 
at any time and, after making such withdrawal, shall be entitled to 
educational assistance under this chapter in the same manner as if the 
individual had never made that election, if--
            ``(A) at the time the individual makes such withdrawal, the 
        individual is serving on active duty as a member of the Armed 
        Forces; and
            ``(B) the basic pay of the individual is reduced by, or the 
        individual otherwise pays to the Secretary, $1,200 by not later 
        than 90 days after the date on which the individual is 
        discharged or released from active duty in the Armed Forces.''.
            (2) Conforming amendment.--Paragraph (1) of such subsection 
        is amended in the third sentence by striking ``Any individual'' 
        and inserting ``Except as provided in paragraph (4), any 
        individual''.
    (b) Basic Educational Assistance for Service in the Selected 
Reserve.--
            (1) Opportunity to withdraw.--Subsection (d) of section 
        3012 of title 38, United States Code, is amended by adding at 
        the end the following new paragraph:
    ``(4) An individual who makes an election not to receive 
educational assistance under paragraph (1) may withdraw that election 
at any time and, after making such withdrawal, shall be entitled to 
educational assistance under this chapter in the same manner as if the 
individual had never made that election, if--
            ``(A) at the time the individual makes such withdrawal, the 
        individual is serving on active duty as a member of the Armed 
        Forces; and
            ``(B) the basic pay of the individual is reduced by, or the 
        individual otherwise pays to the Secretary, $1,200 by not later 
        than 90 days after the date on which the individual is 
        discharged or released from active duty in the Armed Forces.''.
            (2) Conforming amendment.--Paragraph (1) of such subsection 
        is amended in the third sentence by striking ``Any individual'' 
        and inserting ``Except as provided in paragraph (4), any 
        individual''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date that is 90 days after the date of the 
enactment of this Act and shall apply with respect to an individual who 
is serving on active duty as a member of the Armed Forces on or after 
that date.

SEC. 10. MONTGOMERY GI BILL BENEFITS NOT TO REDUCE FINANCIAL AID.

    (a) In General.--Section 480(j) of the Higher Education Act of 1965 
(20 U.S.C. 1087vv(j)) Act is amended--
            (1) in paragraph (1), by striking ``including veterans' 
        education benefits as defined in subsection (c),'' and 
        inserting ``including, subject to paragraph (4), veterans' 
        education benefits as defined in subsection (c),''; and
            (2) by adding at the end the following new paragraph:
    ``(4) Notwithstanding paragraph (1), estimated financial assistance 
not received under this title shall not include any veterans' benefits 
paid under chapter 30 of title 38, United States Code.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date that is 90 days after the date of the enactment 
of this Act.

SEC. 11. EXTENSION OF INCREASE IN BENEFIT FOR CERTAIN INDIVIDUALS 
              PURSUING APPRENTICESHIPS OR ON-JOB TRAINING.

    (a) Survivors and Dependents.--Subsection (c) of such section is 
amended by striking ``January 1, 2008'' and inserting ``January 1, 
2014''.
    (b) Members of the Selected Reserve.--Section 103(d) of the 
Veterans Earn and Learn Act of 2004 (Public Law 108-454; 38 U.S.C. 3032 
note) is amended by striking ``January 1, 2008'' and inserting 
``January 1, 2014''.
    (c) Certain Other Individuals.--Section 103(a) of the Veterans Earn 
and Learn Act of 2004 (Public Law 108-454; 38 U.S.C. 3032 note) is 
amended by striking ``January 1, 2008'' and inserting ``January 1, 
2014''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date that is 90 days after the date of the enactment of 
this Act.

SEC. 12. MODIFICATION OF AMOUNT AVAILABLE FOR REIMBURSEMENT OF STATE 
              AND LOCAL AGENCIES ADMINISTERING VETERANS EDUCATION 
              BENEFITS.

    Section 3674(a)(4) of title 38, United States Code, is amended by 
striking ``$13,000,000'' and all that follows through ``fiscal year 
2007,''.

SEC. 13. PROVISION OF BASIC EDUCATIONAL ASSISTANCE BENEFITS FOR 
              VETERANS DISCHARGED FROM ACTIVE DUTY WITH GENERAL 
              DISCHARGE.

    (a) Active Duty Service.--Section 3011(a)(3)(B) of title 38, United 
States Code, is amended by inserting ``or a general discharge (under 
honorable conditions)'' before the period at the end.
    (b) Service in Selected Reserve.--Section 3012(a)(3)(A) of such 
title is amended by inserting ``or a general discharge (under honorable 
conditions)'' before the semicolon.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to an individual who is discharged from 
service in the Armed Forces after the date that is 90 days after the 
date of the enactment of this Act.

SEC. 14. INCREASE IN AMOUNT OF REPORTING FEE PAYABLE TO EDUCATIONAL 
              INSTITUTIONS THAT ENROLL VETERANS RECEIVING EDUCATIONAL 
              ASSISTANCE.

    (a) Increase in Amount of Fee.--Subsection (c) of section 3684 of 
title 38, United States Code, is amended--
            (1) by striking ``$7'' and inserting ``$21''; and
            (2) by striking ``$11'' and inserting ``$21''.
    (b) Technical Correction.--Subsection (a) of such section is 
amended by striking the second comma after ``34''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date that is 90 days after the date of the 
enactment of this Act.

SEC. 15. PROVISION OF ADDITIONAL AREAS OF WORK-STUDY FOR VETERANS.

    (a) In General.--Subsection (a)(4) of section 3485 of title 38, 
United States Code, is amended by adding at the end the following new 
subparagraph:
            ``(G) The provision of placement services described in 
        section 3104(a)(5) of this title at an educational institution 
        carried out under the supervision of a Department employee.''.
    (b) Work Study for Students Enrolled on Half-Time Basis.--
Subsection (b) of such section is amended--
            (1) in the first sentence, by striking ``three-quarters'' 
        and inserting ``half''; and
            (2) in the third sentence, by striking ``three-quarter-
        time'' and inserting ``half-time''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to agreements entered into under section 3485 of 
title 38, United States Code, after the date that is 90 days after the 
date of the enactment of this Act.

SEC. 16. 5-YEAR PILOT PROGRAM FOR ON-CAMPUS WORK-STUDY POSITIONS.

    (a) Establishment of Pilot Program.--The Secretary of Veterans 
Affairs shall conduct a five-year pilot project to test the feasibility 
and advisability of expanding the scope of qualifying work-study 
activities under subsection (a)(4) of section 3485 of title 38, United 
States Code, including work-study positions available on site at 
educational institutions.
    (b) Type of Work-Study Positions.--The work-study positions 
referred to in subsection (a) may include positions in academic 
departments (including positions as tutors or research, teaching, and 
lab assistants) and in student services (including positions in career 
centers and financial aid, campus orientation, cashiers, admissions, 
records, and registration offices).
    (c) Regulations.--The Secretary shall prescribe regulations to 
carry out the pilot project under this section, including regulations 
providing for the supervision of work-study positions referred to in 
subsection (a) by appropriate personnel.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $10,000,000 for each of fiscal years 2009 
through 2012 to carry out the pilot project under this section.

SEC. 17. INCREASE IN EMPLOYEES FOR EDUCATION SERVICE.

    The Secretary of Veterans Affairs shall increase the number of 
full-time employees of the Education Service of the Department of 
Veterans Affairs by 150 additional such employees.

SEC. 18. UPGRADE OF CERTAIN INFORMATION TECHNOLOGY.

    (a) Action Plan Required.--The General Information Officer of the 
Department of Veterans Affairs, in coordination with the Director of 
Education, shall submit to the Committees on Veterans' Affairs of the 
Senate and House of Representatives and action plan describing how the 
General Information Officer and Director of Education intend to upgrade 
the information technology system of the Department of Veteran Affairs 
that is used in connection with the administration of educational 
benefits under laws administered by the Secretary of Veterans Affairs. 
The General Information Officer and Director of Education shall update 
the committees at least annually on any progress made in upgrading such 
system.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to upgrade the information technology system of the 
Department of Veteran Affairs that is used in connection with the 
administration of educational benefits under laws administered by the 
Secretary of Veterans Affairs--
            (1) $8,000,000 for fiscal year 2009; and
            (2) $3,000,000 for each of fiscal years 2010, 2011, and 
        2012.

SEC. 19. MODIFICATION OF ADVANCE PAYMENT OF INITIAL EDUCATIONAL 
              ASSISTANCE OR SUBSISTENCE ALLOWANCE.

    (a) Modification.--Section 3680(d)(2) of title 38, United States 
Code, is amended by inserting after the third sentence the following 
new sentence: ``For purposes of the entitlement to educational 
assistance of the veteran or person receiving an advance payment under 
this subsection, the advance payment shall be charged against the final 
month of the entitlement of the person or veteran and, if necessary, 
the penultimate such month. In no event may any veteran or person 
receive more than one advance payment under this subsection during any 
academic year.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to an advance payment of educational assistance made 
after the date that is 90 days after the date of the enactment of this 
Act.
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