[Federal Register Volume 74, Number 121 (Thursday, June 25, 2009)]
[Rules and Regulations]
[Pages 30212-30220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-14890]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[DOD-2009-OS-0021; RIN 0790-AI43]

32 CFR Part 65


Post-9/11 GI Bill

AGENCY:  Office of the Under Secretary of Defense for Personnel and 
Readiness/Office of the Deputy Under Secretary of Defense for Military 
Personnel Policy, DoD.

ACTION: Interim final rule.

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SUMMARY:  This part establishes policy, assigns responsibilities, and 
prescribes procedures for carrying out the Post-9/11 GI Bill. It 
establishes policy for the use of supplemental educational assistance 
``kickers'', for members with critical skills or specialties, or for 
members serving additional service; for authorizing the transferability 
of education benefits; and for the DoD Education Benefits Fund Board of 
Actuaries.
    The prompt implementation of the Interim Final Rule is of critical 
importance. It will procedurally close existing gaps in the 
implementation of the Post-9/11 Veterans Educational Assistance Act of 
2008, title V, Public Law 110-252 (the ``Post-9/11 GI Bill''), and 
ensure that key benefits provided for in the Post-9/11 GI Bill become 
available to military personnel by the date mandated by Congress.
    Because of the complexity of implementing this provision throughout 
the Department of Defense, which will require each military branch to 
communicate its own administrative procedures to the military members 
for transferring their educational benefits, the need for overarching 
policy guidance is critical. In addition, Department of Defense policy 
is required to support the companion implementing rules from the 
Department of Veterans Affairs, which are already in place.
    The Administration has expressed considerable interest in making 
this valuable benefit available to military personnel as quickly as 
possible. With a new academic year beginning in this autumn, it is 
critical that the Department of Defense begin immediately the 
complicated task of implementing administrative procedures and 
informing the military community about this program. Implementing this 
policy through an Interim Final Rule will make this possible.

DATES: This rule is effective June 25, 2009. Comments must be received 
by July 27, 2009.

ADDRESSES: You may submit comments, identified by docket number and or 
RIN number and title, by any of the following methods:
    <bullet> Federal Rulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    <bullet> Mail: Federal Docket Management System Office, 1160 
Defense Pentagon, OSD Mailroom 3C843, Washington, DC 20301-1160.

    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
Federal Register document. The general policy for comments and other 
submissions from members of the public is to make these submissions 
available for public viewing on the Internet at http://www.regulations.gov as they are received without change, including any 
personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Robert Clark, (703) 697-9267.

[[Page 30213]]


SUPPLEMENTARY INFORMATION:

Executive Order 12866, ``Regulatory Planning and Review''

    It has been certified that 32 CFR part 65 does not:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy; a section of the 
economy; productivity; competition; jobs; the environment; public 
health or safety; or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another Agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs, or the rights and obligations of 
recipients thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order.

Section 202, Public Law 104-4, ``Unfunded Mandates Reform Act''

    It has been certified that 32 CFR part 65 does not contain a 
Federal mandate that may result in expenditure by State, local and 
tribal governments, in aggregate, or by the private sector, of $100 
million or more in any one year.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    It has been certified that 32 CFR part 65 is not subject to the 
Regulatory Flexibility Act (5 U.S.C. 601) because it would not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    It has been certified that 32 CFR part 65 does not impose reporting 
or recordkeeping requirements under the Paperwork Reduction Act of 
1995.

Executive Order 13132, ``Federalism''

    It has been certified that 32 CFR part 65 does not have federalism 
implications, as set forth in Executive Order 13132. This rule does not 
have substantial direct effects on:
    (1) The States;
    (2) The relationship between the National Government and the 
States; or
    (3) The distribution of power and responsibilities among the 
various levels of Government.

List of Subjects in 32 CFR Part 65

    Armed forces, Education.

0
Accordingly 32 CFR part 65 is added to read as follows:

PART 65--POST-9/11 GI BILL

Sec.
65.1 Purpose.
65.2 Applicability.
65.3 Definitions.
65.4 Policy.
65.5 Responsibilities.
65.6 Procedures.
65.7 Eligibility.
65.8 Reporting requirements.
Appendix to 32 CFR Part 65--Additional Reporting Requirements

    Authority:  38 U.S.C., chapter 33


Sec.  65.1  Purpose.

    This part:
    (a) Establishes policy, assigns responsibilities, and prescribes 
procedures under chapter 33 of title 38, United States Code (U.S.C.) 
for carrying out the Post-9/11 GI Bill.
    (b) Establishes policy for the use of supplemental educational 
assistance (hereafter referred to as ``kickers'') for members with 
critical skills or specialties, or for members serving additional 
service under section 3316 of title 38, U.S.C.
    (c) Establishes policy for authorizing the transferability of 
education benefits (TEB) in accordance with section 3319 of title 38, 
U.S.C.
    (d) Assigns responsibility to the Department of Defense Board of 
Actuaries to review valuations of the Department of Defense Education 
Benefits Fund in accordance with sections 183 and 2006 of title 10, 
U.S.C.


Sec.  65.2  Applicability.

    (a) This part applies to the Office of the Secretary of Defense, 
the Military Departments (including the Coast Guard at all times, 
including when it is a Service in the Department of Homeland Security 
(DHS) by agreement with the Department).
    (b) The term ``Military Services,'' as used herein, refers to the 
Army, the Navy, the Air Force, the Marine Corps, and the Coast Guard.


Sec.  65.3  Definitions.

    Active Duty. Defined in section 101(21)(A) of title 38, U.S.C. for 
Members of the regular components of the Armed Forces. Defined in 
section 688, 12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10, 
U.S.C. for Members of the Reserve Components of the Armed Forces.
    EATP. The Educational Assistance for Persons Enlisting for Active 
Duty program, chapter 106A (formerly 107) of title 10, U.S.C.
    Entry Level and Skill Training. (1) In the case of members of the 
Army, Basic Combat Training and Advanced Individual Training, which 
includes members attending One Station Unit Training (OSUT).
    (2) In the case of members of the Navy, Recruit Training (or Boot 
Camp) and Skill Training (or so-called `A' School).
    (3) In the case of members of the Air Force, Basic Military 
Training and Technical Training.
    (4) In the case of members of the Marine Corps, Recruit Training 
and Marine Corps Training (or School of Infantry Training).
    (5) In the case of members of the Coast Guard, Basic Training.
    Family Member. For the purpose of this part, a spouse or child 
enrolled in the Defense Enrollment Eligibility Reporting System 
(DEERS).
    Kickers. Supplemental educational assistance paid to an eligible 
Service member besides the basic educational assistance, because of the 
individual's qualifying service, as in section 3316 of title 38, U.S.C.
    Institution of Higher Learning (IHL). A training institution as 
defined in section 3452(f) of title 38, U.S.C., and approved for 
purposes of chapter 30 of title 38, U.S.C., (including approval by the 
State approving agency concerned).
    Member of the Armed Forces. For the purposes of this part, those 
individuals on active duty or in the Selected Reserve. Does not include 
other members of the Ready Reserve (such as the Individual Ready 
Reserve, standby Reserve, or retired members of the Armed Forces.)
    MGIB. The All-Volunteer Force Education Assistance Program, Chapter 
30 of title 38, U.S.C.
    MGIB-SR. The Educational Assistance for Members of the Selected 
Reserve program, Chapter 1606 of title 10, U.S.C.
    Post-9/11 GI Bill. The Post-9/11 Educational Assistance Program, 
Chapter 33 of title 38, U.S.C.
    REAP. The Reserve Educational Assistance Program, Chapter 1607 of 
title 10, U.S.C.
    Secretary of the Military Department concerned. For a member of the 
Army, the Navy, the Air Force, the Marine Corps, and the Coast Guard 
when it is operating as a Service of the Department of the Navy, the 
term means the Secretary of the Military Department with jurisdiction 
over that Service member. For a member of the Coast Guard, when the 
Coast Guard is operating as a Service of the DHS, the term means, ``the 
Secretary of Homeland Security has jurisdiction over that Service 
member.''


Sec.  65.4  Policy.

    It is DoD policy:
    (a) That ``kickers'' may be authorized to assist in the recruitment 
and

[[Page 30214]]

retention of individuals into skills or specialties in which there are 
critical shortages or for which it is difficult to recruit, or in the 
case of units, retain personnel.
    (b) That transferability of unused educational benefits be used by 
the Military Services to promote recruitment and retention.
    (c) That the Secretary of Defense may limit the months of the 
entitlement that may be transferred to no less than 18 months, as 
specified in section 3319 of title 38, U.S.C., if needed to manage 
force structure and force shaping.


Sec.  65.5  Responsibilities.

    (a) The Deputy Under Secretary of Defense for Military Personnel 
Policy (DUSD(MPP)), under the authority, direction, and control of the 
Under Secretary of Defense for Personnel and Readiness, shall:
    (1) Develop procedures to implement policy for the Post-9/11 GI 
Bill authorized by chapter 33 of title 38, U.S.C.
    (2) Coordinate administrative procedures with the Department of 
Veterans Affairs (DVA), as applicable.
    (3) Review and approve each Military Department plan to use 
supplemental assistance under the provisions of section 3316 of title 
38, U.S.C.
    (4) Establish the standard data elements needed to administer the 
Post-9/11 GI Bill Program.(see Appendix A to this part).
    (b) The Under Secretary of Defense (Comptroller)/Chief Financial 
Officer (USD(C/CFO)) shall:
    (1) Provide guidance on budgeting, accounting, and funding for the 
educational benefits program in support of policies established in 
Sec.  65.6(b) of this part, and for investing the available DoD 
Education Benefits Fund balance.
    (2) In coordination with the DUSD (MPP), review and approve the 
Military Department budget estimates for the supplemental payments 
under the provisions of section 3316 of title 38, U.S.C.
    (c) The Secretaries of the Military Departments shall:
    (1) Provide regulations, policy implementation guidance, and 
instructions governing the administration of the GI Bill program 
established under chapter 33 of title 38, U.S.C. consistent with this 
DTM and other guidance issued by the DUSD(MPP) and USD(C)/CFO 
consistent with the needs of the Military Services. Regulations must 
include Service implementation of kickers and the transfer of unused 
educational benefits as established in section 3319 of title 38, 
U.S.C., as outlined in Sec.  65.6 of this part.
    (2) Ensure that all eligible active duty members and members of the 
Reserve Components are aware that they are eligible for educational 
assistance under the Post-9/11 GI Bill program upon serving the 
required active duty time as established in Chapter 33 of title 38, 
U.S.C.
    (3) Advise all officers without earlier established eligibility, 
following commissioning through Service Academies, with the exception 
the U.S. Coast Guard Academy, or Reserve Officer Training Corps (ROTC) 
Scholarship Programs, that their eligibility for benefits does not 
begin until they have completed their statutory obligated active duty 
service. Any active duty service after that obligated period of service 
may qualify and entitle the Service member to accrue active duty 
service for the Post-9/11 GI Bill eligibility.
    (4) Ensure that Service members participating in the student loan 
repayment program under chapter 109 of title 10, U.S.C., receive 
counseling on qualification for the Post-9/11 GI Bill program and 
understand that their service commitment due to such participation does 
not count as qualifying active duty service. Any service after that 
obligated period of service may qualify and entitle the Service member 
to accrue active duty service for Post-9/11 GI Bill eligibility.
    (5) Determine the need for Supplemental Educational Assistance 
(Kickers) for recruitment and retention of individuals with special 
skills under section 3316 of title 38, U.S.C., and submit plans to the 
DUSD(MPP) for approval. That submission shall include justification for 
providing benefits to those skills, identification of skills for which 
benefits shall be offered, other special incentives offered in those 
skills, estimated number of participants, costs, and eligibility 
requirements.
    (6) Budget for and transfer funds to support the Supplemental 
Educational Assistance (Kickers), in accordance with Sec.  65.6 of this 
part and guidance issued by the USD(C)/CFO.
    (7) Provide active duty participants and members of the Reserve 
Components with qualifying active duty service individual pre-
separation or release from active duty counseling on the benefits under 
the Post-9/11 GI Bill and document accordingly.
    (8) Maintain records for individuals who participate in 
supplemental educational assistance programs under section 3316 of 
title 38, U.S.C. Ensure that records on that participation are provided 
to the Defense Manpower Data Center (DMDC) and the DVA.
    (9) Use DoD standard data elements and codes established by DoD 
Instruction 1336.5 (available at http://www.dtic.mil/whs/directives/corres/pdf/133605p.pdf) and DoD Instruction 7730.54 (available at 
http://www.dtic.mil/whs/directives/corres/pdf/773054p.pdf) and listed 
in Table 1 of Appendix A to this part, when specified. A Military 
Service failing to comply either with the coding instructions or with 
codes registered in the DoD Data Element Program shall be responsible 
for the conversion costs in accomplishing data interchange.


Sec.  65.6  Procedures.

    (a) General--(1) Eligibility. The Department of Veterans Affairs is 
responsible for determining eligibility for education benefits under 
the GI Bill. Generally, to be eligible for the GI Bill, individuals 
must serve on active duty on or after September 11, 2001, for at least 
30 continuous days with a discharge due to a service-connected 
disability; or an aggregate period ranging from 90 days to 36 months or 
more. See Sec.  65.7 of this part for specific requirements.
    (2) Educational Assistance Benefits. (i) Benefits under the GI Bill 
are based on a percentage, as determined by a Service Member's 
aggregate length of active duty service.
    (A) Amount of tuition and fees charged, not to exceed the most 
expensive in-State undergraduate tuition and fees at a public 
institution of higher learning (tuition and fees paid directly to the 
school);
    (B) Monthly stipend equal to the basic allowance for housing (BAH) 
amount payable to a military E-5 with dependents, in the same ZIP code 
as the school that the student is attending (paid to the individual);
    (C) Yearly books and supplies stipend of up to $1000 per year (paid 
to the individual on a quarter, semester, or term basis, as 
appropriate); and
    (D) A one-time payment of $500 may be payable to certain 
individuals relocating from highly rural areas (paid to the 
individual).
    (ii) ``Kickers'', for those who are eligible, will be paid to the 
individual in conjunction with, and only when receiving, the monthly 
stipend.
    (iii) The monthly stipend and the books and supplies stipend are 
not payable to individuals on active duty.
    (iv) The monthly stipend allowance is not payable for those 
pursuing education and/or training at half time or less or to some 
individuals taking distance learning. Individuals enrolled

[[Page 30215]]

at half time or less are eligible for an appropriately reduced stipend 
for books and supplies. The DVA will determine under what, if any, 
circumstances an individual will be eligible for the monthly stipend 
while undertaking distance learning.
    (v) Post-9/11 GI Bill benefits are subject to change based on 
legislative changes. The benefits are different for educational 
programs pursued on a full-time basis or at an applicable reduced rate 
determined by the Secretary of Veterans Affairs for less than full-time 
enrollment.
    (vi) Post-9/11 GI Bill benefits may be used for an approved program 
of education offered by an Institution of Higher Learning (IHL) This 
includes graduate and undergraduate training, and some vocational/
technical training programs. DVA is the final authority on program 
eligibility.
    (vii) Individuals may receive tutorial assistance (up to $100 per 
month, not to exceed a total of $1,200) and reimbursement of one 
licensing and certification test (not to exceed a total of $2,000).
    (viii) Additionally, individuals who were eligible for MGIB, MGIB-
SR, or REAP, and elect to use benefits under the GI Bill will be 
eligible to receive benefits for programs approved under those 
provisions but not offered by IHLs, such as on-the-job training, 
apprenticeship training, correspondence courses, flight training, 
preparatory courses, and national exams at the benefit rate for MGIB, 
MGIB-SR, or REAP, as appropriate.
    (3) Benefits for Individuals Pursuing Education on Active Duty. 
Educational assistance is payable under the Post-9/11 GI Bill Program 
for pursuit of an approved program of education while on active duty.
    (i) The amount of educational assistance payable shall be the 
lesser of the amount of assistance authorized in the manner specified 
under section 3014(b)(1) of title 38, U.S.C., or the established 
institutional charges for tuition and fees required in similar 
circumstances of non-veterans enrolled in the same program.
    (ii) Concurrent Use of Post-9/11 GI Bill and Tuition Assistance 
(commonly called ``Top Up''). In accordance with section 3313(e) of 
title 38, U.S.C., a Service member entitled to basic educational 
assistance who is pursuing education or training described in 
subsection (a) or (c) of section 2007 of title 10, U.S.C., may use, at 
their discretion, Post-9/11 GI Bill benefits to meet all or a portion 
of the charges of the educational institution for the education or 
training that are not paid by the Secretary of the Military Department 
concerned under such subsection. DVA shall administer fully that 
portion of the Post-9/11 GI Bill Program.
    (4) Time Limitation. As a general rule, eligible individual 
entitlements expire at the end of a 15-year period beginning on the 
Service member's last date of discharge or release from active duty of 
at least 90 consecutive days (30 days if released or discharged for 
service-connected disability). The Secretary of the Military Department 
concerned shall determine the last date of discharge or release, if 
such date cannot be determined clearly from the Service member's 
records.
    (5) Issues for Members with Entitlement to Existing Education 
Programs--(i) Members Eligible for Existing Programs. An individual may 
elect to receive educational assistance under chapter 33 of title 38, 
U.S.C., if such individual, as of August 1, 2009,
    (A) Is entitled to basic educational assistance under MGIB, and has 
used, but retains unused, entitlement under chapter 30 of title 38, 
U.S.C.;
    (B) Is entitled to educational assistance under EATP, MGIB-SR, or 
REAP, and has used, but retains unused, entitlement under the 
applicable program;
    (C) Is entitled to basic educational assistance under MGIB, but has 
not used any entitlement under chapter 30 of title 38, U.S.C.;
    (D) Is entitled to educational assistance under EATP, MGIB-SR, or 
REAP, but has not used any entitlement under such program;
    (E) Is a member of the Armed Forces who is eligible for receipt of 
basic educational assistance under MGIB, and is making contributions 
toward such assistance under sections 3011(b) or 3012(c) of title 38, 
U.S.C.; or
    (F) Is a member of the Armed Forces who is not entitled to basic 
educational assistance under MGIB, by reason of an election under 
sections 3011(c)(1) or 3012(d)(1) of title 38, U.S.C.; and
    (G) As of the date of the individual's election under paragraph 
(a)(5)(i)), meets the requirements for entitlement to educational 
assistance under chapter 33 of title 38, U.S.C.
    (ii) Election Process. The method and process of making such 
election will be determined by DVA.
    (iii) Irrevocability of Election. An election made under paragraph 
(a)(5(i)) of this section is irrevocable.
    (iv) An individual entitled to educational assistance under the 
Post-9/11 GI Bill who is also eligible for educational assistance under 
the MGIB (chapters 30, 31, 32, or 35 of title 38, U.S.C.), EATP 
(chapter 106A of title 10, U.S.C.), MGIB-SR (chapter 1606 of title 10, 
U.S.C.), REAP (chapter 1607 of title 10, U.S.C.), or the provisions of 
the Hostage Relief Act of 1980 (section 5561 note of title 5, U.S.C.) 
may not receive assistance under two or more such programs 
concurrently, but shall elect (in such form and manner as the Secretary 
of Veterans Affairs may prescribe) under which chapter or provisions to 
receive educational assistance.
    (v) Cessation of Pay Reduction Under Montgomery GI Bill. Effective 
as of the first month beginning on or after the date of an election 
under paragraph (a)(5(i)) of this section, an individual having their 
pay reduced under the provisions of sections 3011(b) or 3012(c) of 
title 38, U.S.C., as applicable, shall have that pay reduction ceased, 
and the requirements of such section shall be deemed no longer 
applicable to the individual.
    (vi) Refund of Pay Reduction Under Montgomery GI Bill. An 
individual who is described in paragraph (a)(5(i)) of this section, 
whose pay was reduced under the provisions of sections 3011(b) or 
3012(c) of title 38, U.S.C., will receive a refund of that pay 
reduction subject to the following:
    (A) A full refund for an individual who used no months of benefit 
under the MGIB.
    (B) A refund reduced by a proportion calculated by the number of 
months of MGIB benefits remaining at the time of election divided by 
36.
    (C) The refund will be added to the monthly stipend allowance paid 
in the last month of eligibility under the Post-9/11 GI Bill. 
Individuals who do not exhaust entitlement under the Post-9/11 GI Bill 
will not receive a refund of the pay reduction.
    (vii) Treatment of Certain Contributions Under MGIB and REAP 
(commonly called ``Buy-Up''). (A) There is no provision to allow for 
increasing the amount allowed for Post-9/11 GI Bill benefits based on 
any contributions made by an individual under the provisions of section 
3015(g) of title 38, U.S.C.
    (B) There is no provision to allow for increasing the amount 
allowed for Post-9/11 GI Bill benefits based on any contributions made 
by an individual under the provisions of section 16162(f) of title 10, 
U.S.C.
    (viii) Limitation on Entitlement for Certain Individuals. In the 
case of an individual eligible for MGIB who has used but retains unused 
entitlement, making an election to receive benefits under the Post-9/11 
GI Bill, the number of months of entitlement of the

[[Page 30216]]

individual to educational assistance under the Post-9/11 GI Bill shall 
be the number of months equal to the number of months of unused 
entitlement of the individual under MGIB as of the date of the 
election.
    (ix) Additional Educational and Training Availability. In addition 
to the educational benefits as described in paragraph (a)(2)(vi) of 
this section, individuals who were eligible for benefits under MGIB, 
MGIB-SR, or REAP, and elect to use benefits under the GI Bill, will be 
eligible to receive benefits for on-the-job training, apprenticeship 
training, correspondence courses, flight training, preparatory courses, 
and national exams at the benefit rate for MGIB, MGIB-S, or REAP, as 
approriate.
    (x) Treatment of Existing Supplemental Educational Benefits 
(Kickers). Individuals eligible for kickers under either MGIB or MGIB-
SR will remain eligible for such increased educational assistance. The 
payments shall be based upon the applicable monthly rate for the 
kickers. Payments shall be lump sum and made on a quarter, semester, or 
term basis as determined by the Secretary of Veterans Affairs.
    (b) Supplemental Educational Assistance (``Kickers'')--(1) 
Enlistment Kickers. (i) The Secretaries of the Military Departments may 
offer an increase to the monthly amount of educational assistance 
otherwise payable to the individual under paragraph (1)(B) of section 
3313(c) of title 38, U.S.C., or under paragraphs (2) through (7) of 
such section 3313(c) of title 38, U.S.C. (as applicable), for members 
who initially enlist in a regular component in a skill or specialty in 
which there is a critical shortage of personnel or for which it is 
difficult to recruit. These increases in the monthly amount are known 
as enlistment kickers.
    (ii) The use of enlistment kickers should be based on the 
criticality of the skill and/or the length of enlistment commitment and 
may be offered in amounts from $150 per month to $950 per month in 
increments of $100. Reporting codes for enlistment kickers are listed 
in Appendix A to this part.
    (2) Affiliation Kickers. (i) The Secretaries of the Military 
Departments may offer an increase to the monthly amount of educational 
assistance otherwise payable to the individual under paragraph (1)(B) 
of section 3313(c) of title 38, U.S.C., or under paragraphs (2) through 
(7) of such section 3313(c) of title 38, U.S.C. (as applicable), to a 
member who is separating honorably from a regular component and who 
agrees to serve in the Selected Reserve in a skill, specialty, or unit 
in which there is a critical shortage of personnel or for which it is 
difficult to recruit and/or retain.
    (ii) The use of affiliation kickers should be based on the 
criticality of the skill and/or unit and the length of Selected Reserve 
commitment, and may be offered in amounts from $150 per month to $950 
per month in increments of $100. If an individual is already eligible 
for an enlistment kicker, the amount of the Affiliation Kicker is 
limited to the amount that would take the total to $950. For those 
individuals who are offered an Affiliation Kicker on top of an 
Enlistment Kicker, the increases will be in $100 increments. Reporting 
codes for Affiliation Kickers are the same as the codes for Enlistment 
Kickers listed in Appendix A to this part.
    (3) Reenlistment Kickers. (i) The Secretaries of the Military 
Departments may offer an increase to the monthly amount of educational 
assistance otherwise payable to the individual under paragraph (1)(B) 
of section 3313(c) of title 38, U.S.C., or under paragraphs (2) through 
(7) of such section 3313.(c) of title 38, U.S.C. (as applicable), to a 
member who, after completing the initial term of service, elects to 
remain on active duty for a period of at least 2 years.
    (ii) The use of reenlistment kickers should be based on the 
criticality of the skill and may be offered in amounts from $100 per 
month to $300 per month in increments of $100, based on length of 
additional service. Reporting codes for reenlistment kickers are listed 
in Appendix A to this part.
    (4) Limitations. Since kickers are paid in conjunction with the 
monthly stipend paid under section (1)(B)(i) of section 3313(c) of 
title 38, U.S.C., members eligible for kickers should be aware of the 
limitations on payment.
    (i) No payment will be provided for education pursued on half-time 
basis or less.
    (ii) No payment will be provided for education/training pursued 
solely through distance learning.
    (iii) No payment will be provided for use while serving on active 
duty.
    (c) Transferability of Unused Education Benefits to Family Members. 
Subject to the provisions of this section, the Secretaries of the 
Military Departments, to promote recruitment and retention of members 
of the Armed Forces, may permit an individual described in paragraph 
(c)(1) of this section, who is entitled to educational assistance under 
this Post-9/11 GI Bill to elect to transfer to one or more of the 
family members specified, all or a portion of such individual's 
entitlement to such assistance.
    (1) Eligible Individuals. Any member of the Armed Forces on or 
after August 1, 2009 who, at the time of the approval of the 
individual's request to transfer entitlement to educational assistance 
under this section, is eligible for the Post-9/11 GI Bill, and
    (i) Has at least 6 years of service in the Armed Forces (active 
duty and/or Selected Reserve) on the date of election and agrees to 
serve 4 additional years in the Armed Forces from the date of election, 
or
    (ii) Has at least 10 years of service in the Armed Forces (active 
duty and/or Selected Reserve) on the date of election and either 
standard policy (Service or DoD) or statute preclude the Service member 
from committing to 4 additional years and agrees to serve for the 
maximum amount of time allowed by such policy or statute, or
    (iii) Is or becomes retirement eligible during the period from 
August 1, 2009, through August 1, 2013, and agrees to serve the 
additional period, if any, specified in paragraphs (c)(1)(iii)(A) 
through (c)(1)(iii)(E) of this section. A Service Member is considered 
to be retirement eligible if he or she has completed 20 years of active 
Federal service or 20 qualifying years as computed under section 12732 
of title 10, U.S.C.
    (A) For those individuals eligible for retirement on August 1, 
2009, no additional service is required.
    (B) For those individuals who have an approved retirement date 
after August 1, 2009, and before July 1, 2010, no additional service is 
required.
    (C) For those individuals eligible for retirement after August 1, 
2009, and before August 1, 2010, 1 year of additional service is 
required.
    (D) For those individuals eligible for retirement on or after 
August 1, 2010 and before August 1, 2011, 2 years of additional service 
is required.
    (E) For those individuals eligible for retirement on or after 
August 1, 2011, and before August 1, 2012, 3 years of additional 
service is required.
    (2) Eligible Family Members. (i) An individual approved to transfer 
an entitlement to educational assistance under this section may 
transfer the individual's entitlement to:
    (A) The individual's spouse.
    (B) One or more of the individual's children.
    (C) A combination of the individuals referred to in paragraphs 
(c)(2)(i)(A) and (c)(2)(i)(B) of this section.
    (ii) A family member must be enrolled in the Defense Eligibility 
Enrollment

[[Page 30217]]

Reporting System (DEERS) and be eligible for benefits, at the time of 
transfer to receive transferred educational benefits.
    (iii) A child's subsequent marriage will not affect his or her 
eligibility to receive the educational benefit; however, after an 
individual has designated a child as a transferee under this section, 
the individual retains the right to revoke or modify the transfer at 
any time.
    (iv) A subsequent divorce will not affect the transferee's 
eligibility to receive educational benefits; however, after an 
individual has designated a spouse as a transferee under this section, 
the eligible individual retains the right to revoke or modify the 
transfer at any time.
    (3) Months of Transfer. Months transferred must be in whole months. 
The Secretary of Defense may limit the months of entitlement that may 
be transferred to no less than 18 months. The number of months of 
benefits transferred by an individual under this section may not exceed 
the lesser of:
    (i) The months of unused benefits available under the Post-9/11 GI 
Bill,
    (ii) 36 months, or
    (iii) the number of months specified by the Secretary of Defense.
    (4) Transferee Usage. Dependent use of transferred educational 
benefits is subject to the following:
    (i) A spouse:
    (A) May start to use the benefit only after the individual making 
the transfer has completed at least 6 years of service in the Armed 
Forces.
    (B) May use the benefit while the member remains in the Armed 
Forces or after separation from active duty after completing the 
additional service required to transfer the educational assistance 
under the Post-9/11 GI Bill referred to in paragraph (c)(1) of this 
section.
    (C) Is subject to the same 15-year limitation as the member as 
stipulated in paragraph (a)(4) of this section.
    (ii) A child:
    (A) May start to use the benefit only after the individual making 
the transfer has completed at least 10 years of service in the Armed 
Forces.
    (B) May use the benefit while the member remains in the Armed 
Forces or after separation from active duty after completing the 
additional service required to transfer the educational assistance 
under the Post-9/11 GI Bill referred to in paragraph (c)(1) of this 
section.
    (C) May not use the benefit until they have met the requirements of 
a secondary school diploma (or equivalency certificate), or reached 18 
years of age.
    (D) Is not subject to the time limitation in paragraph (a)(4) of 
this section, but may not use the benefit after reaching 26 years of 
age.
    (5) Nature of Transferred Entitlement. The entitlement transferred 
will be available as follows:
    (i) An eligible spouse:
    (A) Is entitled to educational assistance under chapter 33 of title 
38, U.S.C. in the same manner as the individual from whom the 
entitlement was transferred.
    (B) Is not eligible for the monthly stipend or books and supplies 
stipend while the sponsor is serving on active duty.
    (ii) An eligible child:
    (A) Is entitled to educational assistance under chapter 33 of title 
38, U.S.C, in the same manner as the individual from whom the 
entitlement was transferred as if the individual were not on active 
duty.
    (B) Is entitled to the monthly stipend and books and supplies 
stipend even if the eligible individual is on active duty.
    (6) Designation of Transferee. An individual transferring an 
entitlement to educational assistance under this section shall, through 
notification to the Secretary of the Military Department concerned as 
specified in paragraph (c)(9) of this section:
    (i) Designate the dependent or dependents to whom such entitlement 
is being transferred;
    (ii) Designate the number of months of such entitlement to be 
transferred to each dependent; and
    (iii) Specify the period for which the transfer shall be effective 
for each dependent.
    (7) Time for Transfer, Revocation, and Modification--(i) Time for 
Transfer. An individual approved to transfer entitlement to educational 
assistance under this section may transfer such entitlement to the 
individual's dependent only while serving as a member of the Armed 
Forces.
    (ii) Modification or Revocation. (A) An individual transferring 
entitlement under this section may modify or revoke at any time the 
transfer of any unused portion of the entitlement so transferred.
    (1) An individual may add new dependents, modify the number of 
months of the transferred entitlement for existing dependents, or 
revoke transfer of the entitlement while serving in the Armed Forces.
    (2) An individual may not add dependents after retirement or 
separation from the Armed Forces, but may modify the number of months 
of the transferred entitlement for existing dependents or revoke 
transferred benefits after retirement or separation for those family 
members who had received transferred benefits prior to separation or 
retirement.
    (B) The modification or revocation of the transfer of entitlement 
under this section shall be made by submitting notice of the action to 
both the Secretary of the Military Department concerned and the 
Secretary of Veterans Affairs. Additions, modifications or revocations 
made while in the Armed Forces will be made through the Transferability 
of Educational Benefits (TEB) Web site as described in paragraph (c)(9) 
of this section. Modifications or revocations after separation from the 
Armed Forces will be accomplished with the Department of Veterans 
Affairs.
    (8) Additional Administrative Matters--(i) Use. The use of any 
entitlement to educational assistance transferred under this section 
shall be charged against the entitlement of the individual making the 
transfer at the rate of 1 month for each month of transferred 
entitlement that is used.
    (ii) Death of Transferor. The death of an individual transferring 
an entitlement under this section shall not affect the use of the 
entitlement by the dependent to whom the entitlement is transferred.
    (iii) Scope of Use by Transferees. The purposes for which a 
dependent to whom entitlement is transferred under this section may use 
such entitlement shall include the pursuit and completion of the 
requirements of a secondary school diploma (or equivalency 
certificate).
    (iv) Joint and Several Liability. In the event of an overpayment of 
educational assistance with respect to a dependent to whom entitlement 
is transferred under this section, the dependent and the individual 
making the transfer shall be jointly and severally liable to the United 
States for the amount of the overpayment for purposes of section 3685 
of title 38, U.S.C.
    (v) Failure to Complete Service Agreement. (A) Except as provided 
in paragraph (c)(8)(v)(B) of this section, if an individual 
transferring entitlement under this section fails to complete the 
service agreed to by the individual under paragraph (c)(1) of this 
section in accordance with the terms of the agreement of the individual 
under that section, the amount of any transferred entitlement under 
this section that is used by a dependent of the individual as of the 
date of such failure shall be treated as an overpayment of educational 
assistance (see paragraph (c)(8)(iv) of this section) and will be 
subject to collection by DVA.

[[Page 30218]]

    (B) Paragraph (c)(8)(v)(A) of this section shall not apply in the 
case of an individual who fails to complete service agreed to by the 
individual due to:
    (1) The death of the individual,
    (2) Discharge or release from active duty for a medical condition 
which pre-existed the service of the individual and was not service 
connected,
    (3) Discharge or release from active duty for hardship as 
determined by the Secretary of the Military Department concerned,
    (4) Discharge or release from active duty for a physical or mental 
condition not a disability and that did not result from the 
individual's own willful misconduct, but did interfere with the 
performance of duty.
    (9) Procedures. All requests and transactions for individuals who 
remain in the Armed Forces will be completed through the 
Transferability of Educational Benefits (TEB) Web application at 
https://www.dmdc.osd.mil/TEB/. The TEB Users Manual will provide 
instruction for enrollment; verification; and additions, changes, and 
revocations. Modifications or revocations after separation from the 
Armed Forces will be accomplished with the Department of Veterans 
Affairs.
    (10) Regulations. The Secretaries of the Military Departments 
concerned shall prescribe regulations for the purposes of administering 
the transferability of unused education entitlements to family members 
in accordance with this part. Such regulations shall specify:
    (i) The manner of verifying and documenting the additional service 
commitment, if any, under paragraph (c)(1) of this section, to be 
authorized to transfer education benefits.
    (ii) The manner of determining eligibility to be authorized to 
transfer entitlements as allowed in paragraph (c)(1)(i), (c)(1)(ii) or 
(c)(1)(iii) of this section.


Sec.  65.7  Eligibility.

    The DVA is responsible for determining eligibility for education 
benefits under the GI Bill. Generally, to be eligible for the GI Bill, 
individuals must serve on active duty after September 10, 2001, for at 
least 30 continuous days with a discharge due to a service-connected 
disability; or an aggregate period ranging from 90 days to 36 months or 
more. Benefits under the GI Bill are based on a percentage, as 
determined by a Service Member's length of active duty service, as 
shown in the following table:

             Table to Sec.   65.7--Maximum Benefits Payable
------------------------------------------------------------------------
                                                         Percentage of
                    Member serves                       maximum benefit
                                                            payable
------------------------------------------------------------------------
At least 36 months...................................                100
At least 30 continuous days on active duty and                       100
 discharged due to service-connected disability......
At least 30 months, but less than 36 months..........                 90
At least 24 months, but less than 30 months..........                 80
At least 18 months, but less than 24 months*.........                 70
At least 12 months, but less than 18 months*.........                 60
At least 6 months, but less than 12 months*..........                 50
At least 90 days, but less than 6 months*............                 40
------------------------------------------------------------------------
 If aggregate service is less than 24 months, initial entry training
  does not count as qualifying active duty.

Sec.  65.8  Reporting requirements.

    The reporting requirements in this part have been assigned Report 
Control Symbols DD-P&R(AR)1221, DD-P&R(Q)2077, DD-RA(M)1147, DD-
RA(D)1148, DD-RA(D)2170, DD-RA(M)2171, DD-RA(D)2302, and DD-RA(M)2303 
in accordance with the requirements of DoD 8910.1-M (Available at 
http://www.dtic.mil/whs/directives/corres/pdf/891001m.pdf).

Appendix A to 32 CFR Part 65--Additional Reporting Requirements

                          Table 1--Data Elements From DoD Instruction 1336.5 and DoD Instruction 7730.54 Relevant to This Part
--------------------------------------------------------------------------------------------------------------------------------------------------------
               Field                     Data element name                   Description                                  References
--------------------------------------------------------------------------------------------------------------------------------------------------------
947-954...........................  d. Initial Entry Training   The date a member completed initial   ..................................................
                                     End Calendar Date.          entry training, including skill
                                                                 training. Format: YYYYMMDD. If not
                                                                 applicable or unknown, report all
                                                                 zeros.
293...............................  b. Commissioned Officer     The code that represents the          See DoD Instruction 1336.5 for additional data
                                     Accession Program Source    accession program by which a member   elements.
                                     Code.                       first obtained commissioned
                                                                 officer, other than commissioned
                                                                 warrant officer, status (also known
                                                                 as Source of Initial Commission.)
                                                                 Applicable only to commissioned
                                                                 officers, other than commissioned
                                                                 warrant officers. If not applicable
                                                                 or unknown, report Z.
                                                                G ROTC scholarship program under
                                                                 section 2107(b) of title 10, U.S.C.
                                                                R ROTC scholarship program under
                                                                 section 2107a of title 10, U.S.C.
955-971...........................  Active Duty Loan Repayment                                        ..................................................
                                     Incentive Program.

[[Page 30219]]

 
955-962...........................  a. Active Duty Loan         The beginning date of a Service       ..................................................
                                     Repayment Incentive         member's commitment based on
                                     Program Eligibility         eligibility for an educational
                                     Effective Date.             incentive under the Active Duty
                                                                 Loan Repayment Incentive Program.
                                                                Format: YYYYMMDD. If not applicable
                                                                 or unknown, report all zeroes.
963...............................  b. Active Duty Loan         The type of active duty educational   Chapter 109 of title 10, U.S.C.
                                     Repayment Incentive         incentive for a Service member, who
                                     Program Educational Type    is appointed, enlists, reenlists,
                                     Code.                       affiliates, or extends in an Active
                                                                 Duty Loan Repayment Incentive
                                                                 Program. If not applicable or
                                                                 unknown, report Z.
                                                                A = Educational loan repayment
                                                                 assistance..
964-971...........................  c. Active Duty Loan         The completion date of a Service      ..................................................
                                     Repayment Incentive         member's commitment based on
                                     Program Eligibility         eligibility for an educational
                                     Completion Date.            incentive under the Active Duty
                                                                 Loan Repayment Incentive Program.
                                                                 Format: YYYYMMDD. If not applicable
                                                                 or unknown, report all zeroes.
972-975...........................  GI Bill Incentive Program.
972-973...........................  a. GI Bill Incentive        The code that represents the          See Table 4 for a list of values.
                                     Kicker Rate Code.           monetary level of a GI Bill kicker
                                                                 incentive for which a member is
                                                                 entitled upon enlistment or
                                                                 affiliation. If not applicable or
                                                                 unknown, report ZZ.
974-975...........................  b. GI Bill Reenlistment     The code that represents the          See Table 5 for a list of values.
                                     Incentive Kicker Rate       monetary level of a GI Bill
                                     Code.                       reenlistment kicker incentive for
                                                                 which a member is entitled. If not
                                                                 applicable or unknown, report ZZ.
--------------------------------------------------------------------------------------------------------------------------------------------------------


            Table 2--Enlistment and Affiliation Kicker Codes*
------------------------------------------------------------------------
              Code                    Rate          Other Information
------------------------------------------------------------------------
D2.............................            $150  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
D3.............................             150  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
D4.............................             150  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
D5.............................             150  Effective 1 August
                                                  2009. Requires a 5-
                                                  year active duty
                                                  service agreement.
D6.............................             150  Effective 1 August
                                                  2009. Requires a 6-
                                                  year active duty
                                                  service agreement.
D9.............................             150  Effective 1 August
                                                  2009. Requires a 4-
                                                  year service
                                                  agreement: 2 years on
                                                  active duty plus 2
                                                  years in the Selected
                                                  Reserve.
E2.............................             250  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
E3.............................             250  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
E4.............................             250  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
E5.............................             250  Effective 1 August
                                                  2009. Requires a 5-
                                                  year active duty
                                                  service agreement.
E6.............................             250  Effective 1 August
                                                  2009. Requires a 6-
                                                  year active duty
                                                  service agreement.
E9.............................             250  Effective 1 August
                                                  2009. Requires a 4-
                                                  year service
                                                  agreement: 2 years on
                                                  active duty plus 2
                                                  years in the Selected
                                                  Reserve.
F2.............................             350  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
F3.............................             350  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
F4.............................             350  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
F5.............................             350  Effective 1 August
                                                  2009. Requires a 5-
                                                  year active duty
                                                  service agreement.
F6.............................             350  Effective 1 August
                                                  2009. Requires a 6-
                                                  year active duty
                                                  service agreement.
F9.............................             350  Effective 1 August
                                                  2009. Requires a 4-
                                                  year service
                                                  agreement: 2 years on
                                                  active duty plus 2
                                                  years in the Selected
                                                  Reserve.
G2.............................             450  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
G3.............................             450  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
G4.............................             450  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
G5.............................             450  Effective 1 August
                                                  2009. Requires a 5-
                                                  year active duty
                                                  service agreement.
G6.............................             450  Effective 1 August
                                                  2009. Requires a 6-
                                                  year active duty
                                                  service agreement.
G9.............................             450  Effective 1 August
                                                  2009. Requires a 4-
                                                  year service
                                                  agreement: 2 years on
                                                  active duty plus 2
                                                  years in the Selected
                                                  Reserve.
H2.............................             550  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
H3.............................             550  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
H4.............................             550  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
H5.............................             550  Effective 1 August
                                                  2009. Requires a 5-
                                                  year active duty
                                                  service agreement.
H6.............................             550  Effective 1 August
                                                  2009. Requires a 6-
                                                  year active duty
                                                  service agreement.
H9.............................             550  Effective 1 August
                                                  2009. Requires a 4-
                                                  year service
                                                  agreement: 2 years on
                                                  active duty plus 2
                                                  years in the Selected
                                                  Reserve.
J2.............................             650  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
J3.............................             650  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
J4.............................             650  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
J5.............................             650  Effective 1 August
                                                  2009. Requires a 5-
                                                  year active duty
                                                  service agreement.

[[Page 30220]]

 
J6.............................             650  Effective 1 August
                                                  2009. Requires a 6-
                                                  year active duty
                                                  service agreement.
J9.............................             650  Effective 1 August
                                                  2009. Requires a 4-
                                                  year service
                                                  agreement: 2 years on
                                                  active duty plus 2
                                                  years in the Selected
                                                  Reserve.
K2.............................             750  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
K3.............................             750  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
K4.............................             750  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
K5.............................             750  Effective 1 August
                                                  2009. Requires a 5-
                                                  year active duty
                                                  service agreement.
K6.............................             750  Effective 1 August
                                                  2009. Requires a 6-
                                                  year active duty
                                                  service agreement.
K9.............................             750  Effective 1 August
                                                  2009. Requires a 4-
                                                  year service
                                                  agreement: 2 years on
                                                  active duty plus 2
                                                  years in the Selected
                                                  Reserve.
L2.............................             850  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
L3.............................             850  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
L4.............................             850  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
L5.............................             850  Effective 1 August
                                                  2009. Requires a 5-
                                                  year active duty
                                                  service agreement.
L6.............................             850  Effective 1 August
                                                  2009. Requires a 6-
                                                  year active duty
                                                  service agreement.
L9.............................             850  Effective 1 August
                                                  2009. Requires a 4-
                                                  year service
                                                  agreement: 2 years on
                                                  active duty plus 2
                                                  years in the Selected
                                                  Reserve.
M2.............................             950  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
M3.............................             950  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
M4.............................             950  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
M5.............................             950  Effective 1 August
                                                  2009. Requires a 5-
                                                  year active duty
                                                  service agreement.
M6.............................             950  Effective 1 August
                                                  2009. Requires a 6-
                                                  year active duty
                                                  service agreement.
M9.............................             950  Effective 1 August
                                                  2009. Requires a 4-
                                                  year service
                                                  agreement: 2 years on
                                                  active duty plus 2
                                                  years in the Selected
                                                  Reserve.
------------------------------------------------------------------------
* This will be the same coding structure for DoD Instruction 7730.54,
  ``Reserve Components Common Personnel Data System (RCCPDS).''


                   Table 3--Reenlistment Kicker Codes*
------------------------------------------------------------------------
              Code                    Rate          Other Information
------------------------------------------------------------------------
N2.............................            $100  Effective 1 August
                                                  2009. Requires a 2-
                                                  year active duty
                                                  service agreement.
N3.............................             200  Effective 1 August
                                                  2009. Requires a 3-
                                                  year active duty
                                                  service agreement.
N4.............................             300  Effective 1 August
                                                  2009. Requires a 4-
                                                  year active duty
                                                  service agreement.
------------------------------------------------------------------------
* This will be the same coding structure for DoD Instruction 7730.54,
  ``Reserve Components Common Personnel Data System (RCCPDS).''


    Dated: June 18, 2009.
Patricia L. Topppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. E9-14890 Filed 6-24-09; 8:45 am]
BILLING CODE 5001-06-P