II

106TH CONGRESS

2D SESSION S. 2402

To amend title 38, United States Code, to enhance and improve educational

assistance under the Montgomery GI Bill in order to enhance recruitment

and retention of members of the Armed Forces, and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 11, 2000

Mr. CLELAND (for himself, Mr. LEVIN, and Mr. BINGAMAN) introduced the

following bill; which was read twice and referred to the Committee on

Veterans’ Affairs

A BILL

To amend title 38, United States Code, to enhance and

improve educational assistance under the Montgomery

GI Bill in order to enhance recruitment and retention

of members of the Armed Forces, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Help Our Professionals

5 Educationally (HOPE) Act of 2000’’.
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1 SEC. 2. TRANSFER OF ENTITLEMENT TO EDUCATIONAL AS2 SISTANCE BY CERTAIN MEMBERS OF THE

3 ARMED FORCES.

4 (a) AUTHORITY TO TRANSFER TO FAMILY MEM5 BERS.—(1) Subchapter II of chapter 30 of title 38, United

6 States Code, is amended by adding at the end the fol7 lowing new section:

8 ‘‘§ 3020. Transfer of entitlement to basic educational

9 assistance: members of the Armed Forces

10 ‘‘(a)(1) Subject to the provisions of this section, the

11 Secretary of each military department may, for the pur12 pose of enhancing recruiting and retention and at such

13 Secretary’s sole discretion, permit an individual described

14 in paragraph (2) who is entitled to basic educational as15 sistance under this subchapter to elect to transfer such

16 individual’s entitlement to such assistance, in whole or in

17 part, to the dependents specified in subsection (b).

18 ‘‘(2) An individual referred to in paragraph (1) is any

19 individual who is a member of the Armed Forces at the

20 time of the approval by the Secretary of the military de21 partment concerned of the individual’s request to transfer

22 entitlement to educational assistance under this section.

23 ‘‘(3) The Secretary of the military department con24 cerned may not approve an individual’s request to transfer

25 entitlement to educational assistance under this section
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1 until the individual has completed six years of service in

2 the Armed Forces.

3 ‘‘(4) Subject to the time limitation for use of entitle4 ment under section 3031 of this title, an individual ap5 proved to transfer entitlement to educational assistance

6 under this section may transfer such entitlement at any

7 time after the approval of individual’s request to transfer

8 such entitlement without regard to whether the individual

9 is a member of the Armed Forces when the transfer is

10 executed.

11 ‘‘(b) An individual approved to transfer an entitle12 ment to basic educational assistance under this section

13 may transfer the individual’s entitlement to such assist14 ance as follows:

15 ‘‘(1) To the individual’s spouse.

16 ‘‘(2) To one or more of the individual’s chil17 dren.

18 ‘‘(3) To a combination of the individuals re19 ferred to in paragraphs (1) and (2).

20 ‘‘(c)(1) An individual transferring an entitlement to

21 basic educational assistance under this section shall—

22 ‘‘(A) designate the dependent or dependents to

23 whom such entitlement is being transferred and the

24 percentage of such entitlement to be transferred to

25 each such dependent; and
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1 ‘‘(B) specify the period for which the transfer

2 shall be effective for each dependent designated

3 under subparagraph (A).

4 ‘‘(2) The aggregate amount of the entitlement trans5 ferable by an individual under this section may not exceed

6 the aggregate amount of the entitlement of such individual

7 to basic educational assistance under this subchapter.

8 ‘‘(3) An individual transferring an entitlement under

9 this section may modify or revoke the transfer at any time

10 before the use of the transferred entitlement begins. An

11 individual shall make the modification or revocation by

12 submitting written notice of the action to the Secretary

13 of the military department concerned.

14 ‘‘(d)(1) A dependent to whom entitlement to edu15 cational assistance is transferred under this section may

16 not commence the use of the transferred entitlement until

17 the completion by the individual making the transfer of

18 10 years of service in the Armed Forces.

19 ‘‘(2) The use of any entitlement transferred under

20 this section shall be charged against the entitlement of the

21 individual making the transfer at the rate of one month

22 for each month of transferred entitlement that is used.

23 ‘‘(3) Except as provided in under subsection

24 (c)(1)(B) and subject to paragraphs (4) and (5), a depend25 ent to whom entitlement is transferred under this section
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1 is entitled to basic educational assistance under this sub2 chapter in the same manner and at the same rate as the

3 individual from whom the entitlement was transferred.

4 ‘‘(4) Notwithstanding section 3031 of this title, a

5 child to whom entitlement is transferred under this section

6 may not use any entitlement so transferred after attaining

7 the age of 26 years.

8 ‘‘(5) The administrative provisions of this chapter

9 (including the provisions set forth in section 3034(a)(1)

10 of this title) shall apply to the use of entitlement trans11 ferred under this section, except that the dependent to

12 whom the entitlement is transferred shall be treated as

13 the eligible veteran for purposes of such provisions.

14 ‘‘(e) In the event of an overpayment of basic edu15 cational assistance with respect to a dependent to whom

16 entitlement is transferred under this section, the depend17 ent and the individual making the transfer shall be jointly

18 and severally liable to the United States for the amount

19 of the overpayment for purposes of section 3685 of this

20 title.

21 ‘‘(f) The Secretary of a military department may ap22 prove transfers of entitlement to educational assistance

23 under this section in a fiscal year only to the extent that

24 appropriations for military personnel are available in the

25 fiscal year for purposes of making transfers of funds
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1 under section 2006 of title 10 with respect to such trans2 fers of entitlement.

3 ‘‘(g) The Secretary of Defense shall prescribe regula4 tions for purposes of this section. Such regulations shall

5 specify the manner and effect of an election to modify or

6 revoke a transfer of entitlement under subsection (c)(3)

7 and shall specify the manner of the applicability of the

8 administrative provisions referred to in subsection (d)(5)

9 to a dependent to whom entitlement is transferred under

10 this section.

11 ‘‘(h)(1) Not later than January 31, 2002, and each

12 year thereafter, each Secretary of a military department

13 shall submit to the Committees on Armed Services of the

14 Senate and House of Representatives a report on the

15 transfers of entitlement under this section that were ap16 proved by such Secretary during the preceding year.

17 ‘‘(2) Each report shall set forth—

18 ‘‘(A) the number of transfers of entitlement

19 under this section that were approved by such Sec20 retary during the preceding year; or

21 ‘‘(B) if no transfers of entitlement under this

22 section were approved by such Secretary during that

23 year, a justification for such Secretary’s decision not

24 to approve any such transfers of entitlement during

25 that year.’’.
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1 (2) The table of sections at the beginning of such

2 chapter is amended by inserting after the item relating

3 to section 3019 the following new item:

‘‘3020. Transfer of entitlement to basic educational assistance: members of the

Armed Forces.’’.

4 (b) TREATMENT UNDER DEPARTMENT OF DEFENSE

5 EDUCATION BENEFITS FUND.—Section 2006(b)(2) of

6 title 10, United States Code, is amended by adding at the

7 end the following:

8 ‘‘(D) The present value of the future bene9 fits payable from the Fund as a result of trans10 fers under section 3020 of title 38 of entitle11 ment to basic educational assistance under

12 chapter 30 of title 38.’’

13 (c) PLAN FOR IMPLEMENTATION.—Not later than

14 June 30, 2001, the Secretary of Defense shall submit to

15 Congress a report describing the manner in which the Sec16 retaries of the military departments propose to exercise

17 the authority granted by section 3020 of title 38, United

18 States Code, as added by subsection (a).

19 SEC. 3. PARTICIPATION OF ADDITIONAL MEMBERS OF THE

20 ARMED FORCES IN MONTGOMERY GI BILL

21 PROGRAM.

22 (a) PARTICIPATION AUTHORIZED.—(1) Subchapter

23 II of chapter 30 of title 38, United States Code, as amend-
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1 ed by section 2(a) of this Act, is further amended by in2 serting after section 3018C the following new section:

3 ‘‘§ 3018D. Opportunity to enroll: certain VEAP par4 ticipants; active duty personnel not pre5 viously enrolled

6 ‘‘(a)(1) Notwithstanding any other provision of law

7 and subject to the provisions of this section, the Secretary

8 concerned may, for the purpose of enhancing recruiting

9 and retention and at such Secretary’s sole discretion, per10 mit an individual described in subsection (b) to elect under

11 subsection (c) to become entitled to basic educational as12 sistance under this chapter.

13 ‘‘(2) The Secretary concerned may permit an indi14 vidual to elect to become entitled to basic educational as15 sistance under this section only if sufficient funds are

16 available in accordance with this section for purposes of

17 payments by the Secretary of Defense into the Depart18 ment of Defense Education Benefits Fund under section

19 2006 of title 10 with respect to such election.

20 ‘‘(3) An individual who makes an election to become

21 entitled to basic educational assistance under this section

22 shall be entitled to basic educational assistance under this

23 chapter.

24 ‘‘(b) An individual eligible to be permitted to make

25 an election under this section is an individual who—
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1 ‘‘(1) either—

2 ‘‘(A)(i) is a participant on the date of the

3 enactment of this section in the educational

4 benefits program provided by chapter 32 of this

5 title; or

6 ‘‘(ii) disenrolled from participation in that

7 program before that date; or

8 ‘‘(B) has made an election under section

9 3011(c)(1) or 3012(d)(1) of this title not to re10 ceive educational assistance under this chapter

11 and has not withdrawn that election under sec12 tion 3018(a) of this title as of that date;

13 ‘‘(2) is serving on active duty (excluding periods

14 referred to in section 3202(1)(C) of this title in the

15 case of an individual described in paragraph (1)(A))

16 on that date; and

17 ‘‘(3) before applying for benefits under this sec18 tion, has completed the requirements of a secondary

19 school diploma (or equivalency certificate) or has

20 successfully completed the equivalent of 12 semester

21 hours in a program of education leading to a stand22 ard college degree.

23 ‘‘(c) An individual permitted to make an election

24 under this section to become entitled to basic educational

25 assistance under this chapter shall make an irrevocable
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1 election to receive benefits under this section in lieu of

2 benefits under chapter 32 of this title or withdraw the

3 election made under section 3011(c)(1) or 3012(d)(1) of

4 this title, as the case may be, pursuant to procedures

5 which the Secretary of each military department shall pro6 vide in accordance with regulations prescribed by the Sec7 retary of Defense for the purpose of carrying out this sec8 tion or which the Secretary of Transportation shall pro9 vide for such purpose with respect to the Coast Guard

10 when it is not operating as a service in the Navy.

11 ‘‘(d)(1) Except as provided in paragraphs (2) and

12 (3), in the case of an individual who makes an election

13 under this section to become entitled to basic educational

14 assistance under this chapter, the basic pay of the indi15 vidual shall be reduced (in a manner determined by the

16 Secretary of Defense) until the total amount by which

17 such basic pay is reduced is—

18 ‘‘(A) $1,200, in the case of an individual de19 scribed in subsection (b)(1)(A); or

20 ‘‘(B) $1,500, in the case of an individual de21 scribed in subsection (b)(1)(B).

22 ‘‘(2) In the case of an individual previously enrolled

23 in the educational benefits program provided by chapter

24 32 of this title, the total amount of the reduction in basic

25 pay otherwise required by paragraph (1) shall be reduced
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1 by an amount equal to so much of the unused contribu2 tions made by the individual to the Post-Vietnam Era Vet3 erans Education Account under section 3222(a) of this

4 title as do not exceed $1,200.

5 ‘‘(3) An individual may at any time pay the Secretary

6 concerned an amount equal to the difference between the

7 total of the reductions otherwise required with respect to

8 the individual under this subsection and the total amount

9 of the reductions made with respect to the individual

10 under this subsection as of the time of the payment.

11 ‘‘(4) The Secretary concerned shall transfer to the

12 Secretary of Defense amounts retained with respect to in13 dividuals under paragraph (1) and amounts, if any, paid

14 by individuals under paragraph (3).

15 ‘‘(e)(1) An individual who is enrolled in the edu16 cational benefits program provided by chapter 32 of this

17 title and who makes the election described in subsection

18 (c) shall be disenrolled from the program as of the date

19 of such election.

20 ‘‘(2) For each individual who is disenrolled from such

21 program, the Secretary shall transfer to Secretary of De22 fense any amounts in the Post-Vietnam Era Veterans

23 Education Account that are attributable to the individual,

24 including amounts in the Account that are attributable to
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1 the individual by reason of contributions made by the Sec2 retary of Defense under section 3222(c) of this title.

3 ‘‘(f) With respect to each individual electing under

4 this section to become entitled to basic educational assist5 ance under this chapter, the Secretary concerned shall

6 transfer to the Secretary of Defense, from appropriations

7 for military personnel that are available for transfer, an

8 amount equal to the difference between—

9 ‘‘(1) the amount required to be paid by the Sec10 retary of Defense into the Department of Defense

11 Education Benefits Fund with respect to such elec12 tion; and

13 ‘‘(2) the aggregate amount transferred to the

14 Secretary of Defense with respect to the individual

15 under subsections (d) and (e).

16 ‘‘(g) The Secretary of Defense shall utilize amounts

17 transferred to such Secretary under this section for pur18 poses of payments into the Department of Defense Edu19 cation Benefits Fund with respect to the provision of bene20 fits under this chapter for individuals making elections

21 under this section.

22 ‘‘(h)(1) The requirements of sections 3011(a)(3) and

23 3012(a)(3) of this title shall apply to an individual who

24 makes an election under this section, except that the com25 pletion of service referred to in such section shall be the
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1 completion of the period of active duty being served by

2 the individual on the date of the enactment of this section.

3 ‘‘(2) The procedures provided in regulations referred

4 to in subsection (c) shall provide for notice of the require5 ments of subparagraphs (B), (C), and (D) of section

6 3011(a)(3) of this title and of subparagraphs (B), (C),

7 and (D) of section 3012(a)(3) of this title. Receipt of such

8 notice shall be acknowledged in writing.

9 ‘‘(i)(1) Not later than January 31, 2002, and each

10 year thereafter, each Secretary concerned shall submit to

11 the Committees on Armed Services of the Senate and

12 House of Representatives a report on the members of the

13 Armed Forces under the jurisdiction of such Secretary

14 who were permitted to elect to become entitled to basic

15 educational assistance under this section during the pre16 ceding year.

17 ‘‘(2) Each report shall set forth—

18 ‘‘(A) the number of members who were per19 mitted to elect to become entitled to basic edu20 cational assistance under this section during the pre21 ceding year;

22 ‘‘(B) the number of members so permitted who

23 elected to become entitled to basic educational as24 sistance during that year; and
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1 ‘‘(C) if no members were so permitted during

2 that year, a justification for such Secretary’s deci3 sion not to permit any members to elect to become

4 so entitled during that year.’’.

5 (2) The table of sections at the beginning of chapter

6 30 of that title, as amended by section 2(a) of this Act,

7 is further amended by inserting after the item relating to

8 section 3018C the following new item:

‘‘3018D. Opportunity to enroll: certain VEAP participants; active duty personnel not previously enrolled.’’.

9 (b) CONFORMING AMENDMENT.—Section 3015(f) of

10 that title is amended by striking ‘‘or 3018C’’ and inserting

11 ‘‘3018C, or 3018D’’.

12 (c) TREATMENT UNDER DEPARTMENT OF DEFENSE

13 EDUCATION BENEFITS FUND.—Section 2006(b)(2) of

14 title 10, United States Code, as amended by section 2(b)

15 of this Act, is further amended by adding at the end the

16 following:

17 ‘‘(E) The present value of the future bene18 fits payable from the Fund as a result of elec19 tions under section 3018D of title 38 of entitle20 ment to basic educational assistance under

21 chapter 30 of title 38.’’.

22 (d) PLANS FOR IMPLEMENTATION.—(1) Not later

23 than June 30, 2001, the Secretary of Defense shall submit

24 to Congress a report describing the manner in which the
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1 Secretaries of the military departments propose to exercise

2 the authority granted by section 3018A of title 38, United

3 States Code, as added by subsection (a).

4 (2) Not later than June 30, 2001, the Secretary of

5 Transportation shall submit to Congress a report describ6 ing the manner in which that Secretary proposes to exer7 cise the authority granted by such section 3018A with re8 spect to members of the Coast Guard.

9 SEC. 4. MODIFICATION OF AUTHORITY TO PAY TUITION

10 FOR OFF-DUTY TRAINING AND EDUCATION.

11 (a) AUTHORITY TO PAY ALL CHARGES.—Section

12 2007 of title 10, United States Code, is amended—

13 (1) by striking subsections (a) and (b) and in14 serting the following new subsections:

15 ‘‘(a) Subject to subsection (b), the Secretary of a

16 military department may pay all or a portion of the

17 charges of an educational institution for the tuition or ex18 penses of a member of the armed forces enrolled in such

19 educational institution for education or training during

20 the member’s off-duty periods.

21 ‘‘(b) In the case of a commissioned officer on active

22 duty, the Secretary of the military department concerned

23 may not pay charges under subsection (a) unless the offi24 cer agrees to remain on active duty for a period of at least
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1 two years after the completion of the training or education

2 for which the charges are paid.’’; and

3 (2) in subsection (d)—

4 (A) by striking ‘‘(within the limits set forth

5 in subsection (a))’’ in the matter preceding

6 paragraph (1); and

7 (B) in paragraph (3), by striking ‘‘sub8 section (a)(3)’’ and inserting ‘‘subsection (b)’’.

9 (b) USE OF ENTITLEMENT TO ASSISTANCE UNDER

10 MONTGOMERY GI BILL FOR PAYMENT OF CHARGES.—(1)

11 That section is further amended by adding at the end the

12 following new subsection:

13 ‘‘(e)(1) A member of the armed forces who is entitled

14 to basic educational assistance under chapter 30 of title

15 38 may use such entitlement for purposes of paying any

16 portion of the charges described in subsection (a) or (c)

17 that are not paid for by the Secretary of the military de18 partment concerned under such subsection.

19 ‘‘(2) The use of entitlement under paragraph (1)

20 shall be governed by the provisions of section 3014(b) of

21 title 38.’’.

22 (2) Section 3014 of title 38, United States Code, is

23 amended—

24 (A) by inserting ‘‘(a)’’ before ‘‘The Secretary’’;

25 and
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1 (B) by adding at the end the following new sub2 section:

3 ‘‘(b)(1) In the case of an individual entitled to basic

4 educational assistance who is pursuing education or train5 ing described in subsection (a) or (c) of section 2007 of

6 title 10, the Secretary shall, at the election of the indi7 vidual, pay the individual a basic educational assistance

8 allowance to meet all or a portion of the charges of the

9 educational institution for the education or training that

10 are not paid by the Secretary of the military department

11 concerned under such subsection.

12 ‘‘(2)(A) The amount of the basic educational assist13 ance allowance payable to an individual under this sub14 section for a month shall be the amount of the basic edu15 cational assistance allowance to which the individual would

16 be entitled for the month under section 3015 of this title

17 (without regard to subsection (g) of that section) were

18 payment made under that section instead of under this

19 subsection.

20 ‘‘(B) The maximum number of months for which an

21 individual may be paid a basic educational assistance al22 lowance under paragraph (1) is 36.’’.

23 (3) Section 3015 of title 38, United States Code, is

24 amended—
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1 (A) by striking ‘‘subsection (g)’’ each place it

2 appears in subsections (a) and (b);

3 (B) by redesignating subsection (g) as sub4 section (h); and

5 (C) by inserting after subsection (f) the fol6 lowing new subsection (g):

7 ‘‘(g) In the case of an individual who has been paid

8 a basic educational assistance allowance under section

9 3014(b) of this title, the rate of the basic educational as10 sistance allowance applicable to the individual under this

11 section shall be the rate otherwise applicable to the indi12 vidual under this section reduced by an amount equal to—

13 ‘‘(1) the aggregate amount of such allowances

14 paid the individual under such section 3014(b); di15 vided by

16 ‘‘(2) 36.’’.

17 SEC. 5. MODIFICATION OF TIME FOR USE BY CERTAIN

18 MEMBERS OF SELECTED RESERVE OF ENTI19 TLEMENT TO CERTAIN EDUCATIONAL AS20 SISTANCE.

21 Section 16133(b) of title 10, United States Code, is

22 amended by adding at the end the following new para23 graph:

24 ‘‘(5)(A) In the case of a person who continues to

25 serve as member of the Selected Reserve as of the end
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1 of the 10-year period applicable to the person under sub2 section (a), as extended, if at all, under paragraph (4),

3 the period during which the person may use the person’s

4 entitlement shall expire at the end of the 5-year period

5 beginning on the date the person is separated from the

6 Selected Reserve.

7 ‘‘(B) The provisions of paragraph (4) shall apply with

8 respect to any period of active duty of a person referred

9 to in subparagraph (A) during the 5-year period referred

10 to in that subparagraph.’’.

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