I 

108TH CONGRESS 

2D SESSION H. R. 5257 

To provide that members of the Armed Forces and Selected Reserve may 

transfer certain educational assistance benefits to dependents, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 7, 2004 

Mr. BARTLETT of Maryland introduced the following bill; which was referred 

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

on Armed Services, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To provide that members of the Armed Forces and Selected 

Reserve may transfer certain educational assistance benefits to dependents, 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 ‘‘Servicemembers’ Flexi5 ble Educational Assistance Act’’. 
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1 SEC. 2. TRANSFER OF ENTITLEMENT TO BASIC EDU2 CATIONAL ASSISTANCE. 

3 (a) ALL-VOLUNTEER FORCE EDUCATIONAL ASSIST4 ANCE PROGRAM.—Chapter 30 of title 38, United States 

5 Code, is amended— 

6 (1) in the table of contents by striking the item 

7 relating to section 3020 and inserting the following: 

‘‘3020. Transfer of entitlement to basic educational assistance.’’; 

8 (2) in section 3018— 

9 (A) in subsection (c) by inserting ‘‘or (e)’’ 

10 after ‘‘subsection (b)(1)’’; and 

11 (B) by adding at the end the following new 

12 subsection: 

13 ‘‘(e) An individual who made an election under sec14 tion 3011(c)(1) or 3012(d)(1) may withdraw such election 

15 not later than one year after the date of enactment of this 

16 subsection if— 

17 ‘‘(1) the period described in section 3031 that 

18 is applicable to such individual has not expired; and 

19 ‘‘(2) such individual elects to transfer entitle20 ment to educational assistance under section 3020.’’; 

21 (3) by amending section 3020 to read as fol22 lows: 
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1 ‘‘§ 3020. Transfer of entitlement to basic educational 

2 assistance 

3 ‘‘(a) IN GENERAL.—An individual who is entitled to 

4 basic educational assistance under this subchapter may 

5 elect to transfer to one or more of the dependents specified 

6 in subsection (b) a portion of such individual’s entitlement 

7 to such assistance. An individual transferring entitlement 

8 under this section shall submit written notice to the Sec9 retary concerned not later than the expiration date of the 

10 period described in section 3031 that is applicable to such 

11 individual. 

12 ‘‘(b) ELIGIBLE DEPENDENTS.—An individual may 

13 transfer entitlement under this section as follows: 

14 ‘‘(1) To the individual’s spouse. 

15 ‘‘(2) To one or more of the individual’s chil16 dren. 

17 ‘‘(3) To a combination of the individuals re18 ferred to in paragraphs (1) and (2). 

19 ‘‘(c) DESIGNATION OF TRANSFEREE.—An individual 

20 transferring entitlement under this section shall— 

21 ‘‘(1) designate the dependent or dependents to 

22 whom such entitlement is being transferred; 

23 ‘‘(2) designate the number of months of such 

24 entitlement to be transferred to each such depend25 ent; and 
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1 ‘‘(3) specify the period for which the transfer 

2 shall be effective for each such dependent. 

3 ‘‘(d) REVOCATION AND MODIFICATION.—An indi4 vidual transferring entitlement under this section may 

5 modify or revoke at any time the transfer of any unused 

6 portion of the entitlement so transferred. The modification 

7 or revocation of the transfer of entitlement under this sub8 section shall be made by the submittal of written notice 

9 of the action to both the Secretary concerned and the Sec10 retary of Veterans Affairs. 

11 ‘‘(e) COMMENCEMENT OF USE.—If the dependent to 

12 whom entitlement is transferred under this section is a 

13 child, the use of the transferred entitlement may not com14 mence until the child— 

15 ‘‘(1) completes the requirements of a secondary 

16 school diploma (or equivalency certificate); or 

17 ‘‘(2) attains 18 years of age. 

18 ‘‘(f) TIME LIMITATION FOR USE OF ELIGIBILITY

19 AND ENTITLEMENT.—Notwithstanding section 3031, and 

20 subject to subsection (c)(3), a dependent to whom entitle21 ment is transferred under this section may use such enti22 tlement not later than the expiration date of a 20-year 

23 period beginning on the commencement date of the period 

24 described in section 3031 that is applicable to the indi25 vidual who transferred such entitlement to the dependent. 
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1 ‘‘(g) ADDITIONAL ADMINISTRATIVE MATTERS.—(1) 

2 The use of any entitlement transferred under this section 

3 shall be charged against the entitlement of the individual 

4 making the transfer at the rate of one month for each 

5 month of transferred entitlement that is used. 

6 ‘‘(2) Except as provided under subsections (c)(2) and 

7 (3) and (f), and subject to paragraph (5) of this sub8 section, a dependent to whom entitlement is transferred 

9 under this section is entitled to basic educational assist10 ance under this subchapter in the same manner as the 

11 individual from whom entitlement was transferred. 

12 ‘‘(3)(A) Subject to subparagraph (B), the monthly 

13 rate of educational assistance payable to a dependent to 

14 whom entitlement is transferred under this section shall 

15 be the monthly amount payable under sections 3015 and 

16 3022 to the individual making the transfer. 

17 ‘‘(B) The monthly rate of assistance payable to a de18 pendent under subparagraph (A) shall be subject to the 

19 provisions of section 3032, except that the provisions of 

20 subsection (a)(1) of that section shall not apply even if 

21 the individual making the transfer to the dependent under 

22 this section is on active duty during all or any part of 

23 enrollment period of the dependent in which such entitle24 ment is used. 
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1 ‘‘(4) The death of an individual transferring entitle2 ment under this section shall not affect the use of the 

3 transferred entitlement by the dependent to whom entitle4 ment is transferred. 

5 ‘‘(5) Notwithstanding subsection (f) and section 

6 3031, a child to whom entitlement is transferred under 

7 this section may not use any entitlement so transferred 

8 after attaining the age of 26 years. 

9 ‘‘(6) Except as provided in subsection (e), the pur10 poses for which a dependent to whom entitlement is trans11 ferred under this section may use such entitlement shall 

12 include the pursuit and completion of the requirements of 

13 a secondary school diploma (or equivalency certificate). 

14 ‘‘(h) OVERPAYMENT.—In the event of an overpay15 ment of basic educational assistance with respect to a de16 pendent to whom entitlement is transferred under this sec17 tion, the dependent and the individual making the transfer 

18 shall be jointly and severally liable to the United States 

19 for the amount of the overpayment for purposes of section 

20 3685. 

21 ‘‘(i) REGULATIONS.—The Secretaries concerned shall 

22 prescribe regulations for purposes of this section. 

23 ‘‘(j) ANNUAL REPORT.—Not later than January 31 

24 of each calendar year (beginning in 2006), the Secretary 

25 of Defense, in consultation with the other Secretaries con-
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1 cerned, shall submit to the Committee on Armed Services 

2 and the Committee on Veterans’ Affairs of the House of 

3 Representatives and the Committee on Armed Services 

4 and the Committee on Veterans’ Affairs of the Senate a 

5 report on the number of individuals transferring entitle6 ment to educational assistance under this section during 

7 the preceding fiscal year. 

8 ‘‘(k) SECRETARY CONCERNED DEFINED.—Notwith9 standing section 101(25), in this section the term ‘Sec10 retary concerned’ means— 

11 ‘‘(1) the Secretary of the Army with respect to 

12 matters concerning the Army; 

13 ‘‘(2) the Secretary of the Navy with respect to 

14 matters concerning the Navy or the Marine Corps; 

15 ‘‘(3) the Secretary of the Air Force with respect 

16 to matters concerning the Air Force; and 

17 ‘‘(4) the Secretary of Defense with respect to 

18 matters concerning the Coast Guard, or the Sec19 retary of Homeland Security when it is not oper20 ating as a service in the Navy.’’; and 

21 (4) in section 3031(a) by inserting ‘‘in section 

22 3020 and’’ after ‘‘Except as provided’’. 

23 (b) EDUCATIONAL ASSISTANCE FOR MEMBERS OF

24 THE SELECTED RESERVE.—Chapter 1606 of title 10, 

25 United States Code, is amended— 
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1 (1) in the table of sections by adding at the end 

2 the following new item: 

‘‘16138. Transfer of entitlement to educational assistance.’’; 

3 (2) in section 16133(a) by inserting ‘‘and sec4 tion 16138’’ after ‘‘subsection (b)’’; 

5 (3) in section 16137 by inserting ‘‘Each such 

6 report shall also include the number of members of 

7 the Selected Reserve of the Ready Reserve of each 

8 armed force transferring entitlement to educational 

9 assistance under section 16138.’’ after ‘‘those fiscal 

10 years.’’; and 

11 (4) by adding at the end the following new sec12 tion: 

13 ‘‘§ 16138. Transfer of entitlement to educational as14 sistance 

15 ‘‘(a) IN GENERAL.—An individual who is entitled to 

16 educational assistance under this chapter may elect to 

17 transfer to one or more of the dependents specified in sub18 section (b) a portion of such individual’s entitlement to 

19 such assistance. An individual transferring entitlement 

20 under this section shall submit written notice to the Sec21 retary concerned not later than the expiration date of the 

22 period described in section 16133 that is applicable to 

23 such individual. 

24 ‘‘(b) ELIGIBLE DEPENDENTS.—An individual may 

25 transfer entitlement under this section as follows: 
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1 ‘‘(1) To the individual’s spouse. 

2 ‘‘(2) To one or more of the individual’s chil3 dren. 

4 ‘‘(3) To a combination of the individuals re5 ferred to in paragraphs (1) and (2). 

6 ‘‘(c) DESIGNATION OF TRANSFEREE.—An individual 

7 transferring entitlement under this section shall— 

8 ‘‘(1) designate the dependent or dependents to 

9 whom such entitlement is being transferred; 

10 ‘‘(2) designate the number of months of such 

11 entitlement to be transferred to each such depend12 ent; and 

13 ‘‘(3) specify the period for which the transfer 

14 shall be effective for each such dependent. 

15 ‘‘(d) REVOCATION AND MODIFICATION.—An indi16 vidual transferring entitlement under this section may 

17 modify or revoke at any time the transfer of any unused 

18 portion of the entitlement so transferred. The modification 

19 or revocation of the transfer of entitlement under this sub20 section shall be made by the submittal of written notice 

21 of the action to both the Secretary concerned and the Sec22 retary of Veterans Affairs. 

23 ‘‘(e) COMMENCEMENT OF USE.—If the dependent to 

24 whom entitlement is transferred under this section is a 
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1 child, the use of the transferred entitlement may not com2 mence until the child— 

3 ‘‘(1) completes the requirements of a secondary 

4 school diploma (or equivalency certificate); or 

5 ‘‘(2) attains 18 years of age. 

6 ‘‘(f) TIME LIMITATION FOR USE OF ELIGIBILITY

7 AND ENTITLEMENT.—Notwithstanding section 16133, 

8 and subject to subsection (c)(3), a dependent to whom en9 titlement is transferred under this section may use such 

10 entitlement not later than— 

11 ‘‘(1) the expiration date of a 20-year period be12 ginning on the commencement date of the period 

13 prescribed by section 16133(a)(1) that is applicable 

14 to the individual who transferred such entitlement to 

15 the dependent; or 

16 ‘‘(2) the date that is 10 years after the date the 

17 individual who transferred such entitlement to the 

18 dependent is separated from the Selected Reserve, 

19 whichever occurs first. 

20 ‘‘(g) ADDITIONAL ADMINISTRATIVE MATTERS.—(1) 

21 The use of any entitlement transferred under this section 

22 shall be charged against the entitlement of the individual 

23 making the transfer at the rate of one month for each 

24 month of transferred entitlement that is used. 
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1 ‘‘(2) Except as provided under subsections (c)(2) and 

2 (3) and (f), and subject to paragraph (5) of this sub3 section, a dependent to whom entitlement is transferred 

4 under this section is entitled to educational assistance 

5 under this chapter in the same manner as the individual 

6 from whom entitlement was transferred. 

7 ‘‘(3) The monthly rate of educational assistance pay8 able to a dependent to whom entitlement is transferred 

9 under this section shall be the monthly amount payable 

10 under section 16131 to the individual making the transfer. 

11 ‘‘(4) The death of an individual transferring entitle12 ment under this section shall not affect the use of the 

13 transferred entitlement by the dependent to whom entitle14 ment is transferred. 

15 ‘‘(5) Notwithstanding subsection (f) and section 

16 16133, a child to whom entitlement is transferred under 

17 this section may not use any entitlement so transferred 

18 after attaining the age of 26 years. 

19 ‘‘(6) Except as provided in subsection (e), the pur20 poses for which a dependent to whom entitlement is trans21 ferred under this section may use such entitlement shall 

22 include the pursuit and completion of the requirements of 

23 a secondary school diploma (or equivalency certificate). 

24 ‘‘(h) OVERPAYMENT.—In the event of an overpay25 ment of basic educational assistance with respect to a de-
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1 pendent to whom entitlement is transferred under this sec2 tion, the dependent and the individual making the transfer 

3 shall be jointly and severally liable to the United States 

4 for the amount of the overpayment for purposes of section 

5 3685 of title 38. 

6 ‘‘(i) REGULATIONS.—The Secretaries concerned shall 

7 prescribe regulations for purposes of this section. 

8 ‘‘(j) SECRETARY CONCERNED DEFINED.—Notwith9 standing section 101(a)(9), in this section the term ‘Sec10 retary concerned’ means— 

11 ‘‘(1) the Secretary of the Army with respect to 

12 matters concerning the Army; 

13 ‘‘(2) the Secretary of the Navy with respect to 

14 matters concerning the Navy or the Marine Corps; 

15 ‘‘(3) the Secretary of the Air Force with respect 

16 to matters concerning the Air Force; and 

17 ‘‘(4) the Secretary of Defense with respect to 

18 matters concerning the Coast Guard, or the Sec19 retary of Homeland Security when it is not oper20 ating as a service in the Navy.’’. 

21 SEC. 3. PROGRAM OF EDUCATION. 

22 (a) ALL-VOLUNTEER FORCE EDUCATIONAL ASSIST23 ANCE PROGRAM.—Chapter 30 of title 38, United States 

24 Code, is amended— 
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1 (1) in section 3014(a) by striking ‘‘an approved 

2 program of education’’ and inserting ‘‘a program of 

3 education of the individual’s choosing’’; and 

4 (2) in sections 3014A(b)(1), 3015(a)(1), 

5 3015(a)(2), 3015(b)(1), 3015(b)(2), 3015(g)(1), 

6 3015(g)(2), 3016(b), 3016(c), 3022(a)(1), 

7 3022(a)(2), and 3034(a)(3) by striking ‘‘an ap8 proved program’’ each place it appears and inserting 

9 ‘‘a program’’. 

10 (b) EDUCATIONAL ASSISTANCE FOR MEMBERS OF

11 THE SELECTED RESERVE.—Section 16131 of title 10, 

12 United States Code, is amended— 

13 (1) in subsection (b)(1) by inserting ‘‘of the 

14 person’s choosing’’ after ‘‘pursuing a program of 

15 education’’; 

16 (2) by amending subsection (c)(1) to read as 

17 follows: 

18 ‘‘(c)(1) Educational assistance shall be provided to 

19 each person entitled to educational assistance under this 

20 chapter for pursuit of any program of education of the 

21 person’s choosing that is a program of education for pur22 poses of chapter 30 of title 38.’’; and 

23 (3) in subsection (g)(2)(B)(i) by striking ‘‘an 

24 approved program’’ and inserting ‘‘a program’’. 
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1 SEC. 4. SERVICE IN THE SELECTED RESERVE. 

2 (a) CREDIT FOR 24 MONTHS OF ACTIVE DUTY SERV3 ICE.—Subsection 3012 of title 38, United States Code, is 

4 amended— 

5 (1) in subsection (a)— 

6 (A) in paragraph (1)(A)(i) by striking ‘‘an 

7 obligated period’’ and all that follows through 

8 ‘‘in the Armed Forces’’ and inserting ‘‘for a cu9 mulative period of at least 24 months of obli10 gated active duty in the Armed Forces during 

11 any 6-year period’’; 

12 (B) in paragraphs (1)(B)(i) and 

13 (1)(C)(iii)(I) by striking ‘‘at least two years of 

14 continuous active duty in the Armed Forces’’ 

15 each place it appears and inserting ‘‘for a cu16 mulative period of at least 24 months of active 

17 duty in the Armed Forces during any 6-year 

18 period’’; and 

19 (C) in paragraphs (1)(B)(ii) and 

20 (1)(C)(iii)(II) by striking ‘‘two years’’ each 

21 place it appears and inserting ‘‘24 months’’; 

22 and 

23 (2) in subsection (b)(1)(A)— 

24 (A) by striking ‘‘two years of service’’ and 

25 inserting ‘‘24 months of service’’; and 
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1 (B) by striking ‘‘during such two years’’ 

2 and inserting ‘‘during such service’’. 

3 (b) CONFORMING AMENDMENT.—Section 3013(b) of 

4 title 38, United States Code, is amended by striking ‘‘con5 tinuous’’. 

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