I 

108TH CONGRESS 

2D SESSION H. R. 5239 

To amend titles 10 and 38, United States Code, to improve educational 

benefits for members of the Selected Reserve, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 6, 2004 

Mr. SMITH of New Jersey introduced the following bill; which was referred 

to the Committee on Armed Services, and in addition to the Committee 

on Veterans’ Affairs, for a period to be subsequently determined by the 

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

the jurisdiction of the committee concerned 

A BILL 

To amend titles 10 and 38, United States Code, to improve 

educational benefits for members of the Selected Reserve, 

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 ‘‘National Guard and 

5 Reserve Education Act of 2004’’. 
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1 SEC. 2. INCREASE IN RATE OF EDUCATIONAL ASSISTANCE 

2 FOR MEMBERS OF THE SELECTED RESERVE 

3 AS ADMINISTERED BY THE SECRETARY OF 

4 VETERANS AFFAIRS. 

5 (a) INCREASE IN RATE OF ASSISTANCE.—Subsection 

6 (b)(1) of section 16131 of title 10, United States Code, 

7 is amended— 

8 (1) in subparagraph (A), by striking ‘‘$251’’ 

9 and inserting ‘‘$400’’; 

10 (2) by striking subparagraphs (B) and (C); 

11 (3) by redesignating subparagraph (D) as sub12 paragraph (B); and 

13 (4) in subparagraph (B), as so redesignated, by 

14 striking ‘‘for each month of less than half-time pur15 suit’’ and inserting ‘‘for each month of less than 

16 full-time pursuit’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 subsection (a) shall apply with respect to months begin19 ning after the date of the enactment of this Act. 

20 (c) NO CPI ADJUSTMENT FOR FISCAL YEAR 2005.— 

21 Paragraph (2) of section 16131(b) of such title shall not 

22 apply to rates of basic educational assistance paid under 

23 such section during fiscal year 2005. 
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1 SEC. 3. PAYMENT OF EDUCATIONAL ASSISTANCE FOR MEM2 BERS OF THE SELECTED RESERVE CALLED 

3 UP FOR SERVICE FOR CUMULATIVE PERIOD 

4 OF 180 DAYS OR MORE AT THE RATE APPLI5 CABLE UNDER CHAPTER 30 OF TITLE 38, 

6 UNITED STATES CODE. 

7 (a) INCREASE.—Section 16131 of title 10, United 

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

10 ‘‘(j)(1) In the case of a person described in paragraph 

11 (2), the rate payable under subsection (b) or subsection 

12 (c) to such person for such educational assistance for each 

13 month shall be paid at the rate applicable under section 

14 3015(b) of title 38. 

15 ‘‘(2) A person referred to in paragraph (1) is a per16 son who is entitled to educational assistance under this 

17 chapter— 

18 ‘‘(A) who, on or after September 11, 2001, 

19 serves a period of active duty of at least 180 days 

20 of active duty pursuant to an order to serve on ac21 tive duty under section 12301(a), 12301(d), 

22 12301(g), 12302, or 12304 of this title during a five 

23 year period, or 

24 ‘‘(B) in the case of a member of the Army Na25 tional Guard of the United States or Air National 

26 Guard of the United States, who, on or after Sep-
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1 tember 11, 2001, performed full time National 

2 Guard duty under section 502(f) of title 32 for at 

3 least 180 days during a five year period when au4 thorized by the President or Secretary of Defense 

5 for the purpose of responding to a national emer6 gency declared by the President and supported by 

7 Federal funds.’’. 

8 (b) EFFECTIVE DATE.—The amendments made by 

9 subsection (a) shall apply with respect to payments of edu10 cational assistance under chapter 1606 of such title for 

11 months beginning after September 30, 2004. 

12 SEC. 4. MODIFICATION OF DELIMITING DATE FOR USE OF 

13 ENTITLEMENT. 

14 (a) IN GENERAL.—Section 16133 of title 10, United 

15 States Code, is amended— 

16 (1) in subsection (a), by striking ‘‘subsection 

17 (b)’’ and inserting ‘‘subsections (b) and (c)’’; and 

18 (2) by adding at the end the following new sub19 section: 

20 ‘‘(c) In the case of a person described in section 

21 16131(j)(2) of this title, the period during which such per22 son may use such person’s entitlement to educational as23 sistance under this chapter expires at the end of the 14- 

24 year period beginning on the date that is the last day of 

25 the person’s last duty referred to in such section.’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall take effect on September 30, 2004, 

3 and shall apply to members of the Selected Reserve enti4 tled to educational assistance under chapter 1606 of title 

5 10, United States Code, on or after that date. 

6 SEC. 5. AUTHORITY FOR MEMBERS OF THE SELECTED RE7 SERVE ENTITLED TO RETIRED PAY TO 

8 TRANSFER ENTITLEMENT TO BASIC EDU9 CATIONAL ASSISTANCE. 

10 (a) ESTABLISHMENT OF AUTHORITY TO TRANSFER

11 ENTITLEMENT.—(1) Chapter 1606 of title 10, United 

12 States Code, is amended by adding at the end the fol13 lowing new section: 

14 ‘‘§ 16138. Transfer of entitlement to basic educational 

15 assistance by members of the Selected 

16 Reserve entitled to retired pay 

17 ‘‘(a) IN GENERAL.—Subject to the provisions of this 

18 section, each Secretary concerned may permit an indi19 vidual described in subsection (b) who is entitled to basic 

20 educational assistance under this chapter to elect to trans21 fer to one or more of the dependents specified in sub22 section (c) a portion of such individual’s entitlement to 

23 such assistance. 

24 ‘‘(b) ELIGIBLE INDIVIDUALS.—An individual re25 ferred to in subsection (a) is an individual who— 
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1 ‘‘(1) is entitled to retired pay under chapter 

2 1223; and 

3 ‘‘(2) is entitled to educational assistance under 

4 this chapter. 

5 ‘‘(c) ELIGIBLE DEPENDENTS.—An individual ap6 proved to transfer an entitlement to basic educational as7 sistance under this section may transfer the individual’s 

8 entitlement as follows: 

9 ‘‘(1) To the individual’s spouse. 

10 ‘‘(2) To one or more of the individual’s chil11 dren. 

12 ‘‘(3) To a combination of the individuals re13 ferred to in paragraphs (1) and (2). 

14 ‘‘(d) DESIGNATION OF TRANSFEREE.—An individual 

15 transferring an entitlement to basic educational assistance 

16 under this section shall— 

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

18 whom such entitlement is being transferred; 

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

20 entitlement to be transferred to each such depend21 ent; and 

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

23 shall be effective for each dependent designated 

24 under paragraph (1). 
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1 Each designation under this section shall be made in writ2 ing and shall be transmitted to the Secretary concerned 

3 and the Secretary of Veterans Affairs. 

4 ‘‘(e) TIME FOR TRANSFER; REVOCATION AND MODI5 FICATION.—(1) Subject to the time limitation for use of 

6 entitlement under section 16133 of this title, an individual 

7 approved to transfer entitlement to basic educational as8 sistance under this section may transfer such entitlement 

9 at any time after the approval of the individual’s request 

10 to transfer such entitlement without regard to whether the 

11 individual is a member of the Armed Forces when the 

12 transfer is executed. 

13 ‘‘(2)(A) An individual transferring entitlement under 

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

15 of any unused portion of the entitlement so transferred. 

16 ‘‘(B) The modification or revocation of the transfer 

17 of entitlement under this paragraph shall be made by the 

18 submittal of written notice of the action to both the Sec19 retary concerned and the Secretary of Veterans Affairs. 

20 ‘‘(f) COMMENCEMENT OF USE.—In the case of enti21 tlement transferred to a child to whom entitlement to 

22 basic educational assistance is transferred under this sec23 tion, the child may not commence the use of the trans24 ferred entitlement until either— 
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1 ‘‘(1) the completion by the child of the require2 ments of a secondary school diploma (or equivalency 

3 certificate); or 

4 ‘‘(2) the attainment by the child of 18 years of 

5 age. 

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

7 The use of any entitlement to basic educational assistance 

8 transferred under this section shall be charged against the 

9 entitlement of the individual making the transfer at the 

10 rate of one month for each month of transferred entitle11 ment that is used. 

12 ‘‘(2) Except as provided under subsection (d)(2) and 

13 subject to paragraphs (4) and (5), a dependent to whom 

14 entitlement is transferred under this section is entitled to 

15 basic educational assistance under this chapter in the 

16 same manner and at the same rate as the individual from 

17 whom the entitlement was transferred. 

18 ‘‘(3)(A) The death of an individual transferring an 

19 entitlement under this section shall not affect the use of 

20 the entitlement by the dependent to whom the entitlement 

21 is transferred. 

22 ‘‘(B) Entitlement may only be transferred under this 

23 section before the date of death of the individual making 

24 the transfer. 
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1 ‘‘(4) A child to whom entitlement is transferred under 

2 this section may not use any entitlement so transferred 

3 after attaining the age of 26 years. 

4 ‘‘(5) The administrative provisions of chapter 30 of 

5 title 38 (including the provisions set forth in section 

6 3034(a)(1) of that title) shall apply to the use of entitle7 ment transferred under this section, except that the de8 pendent to whom the entitlement is transferred shall be 

9 treated as the eligible veteran for purposes of such provi10 sions. 

11 ‘‘(6) The purposes for which a dependent to whom 

12 entitlement is transferred under this section may use such 

13 entitlement shall include the pursuit and completion of the 

14 requirements of a secondary school diploma (or equiva15 lency certificate). 

16 ‘‘(h) OVERPAYMENT.—In the event of an overpay17 ment of basic educational assistance with respect to a de18 pendent to whom entitlement is transferred under this sec19 tion, the dependent and the individual making the transfer 

20 shall be jointly and severally liable to the United States 

21 for the amount of the overpayment for purposes of section 

22 3685 of title 38. 

23 ‘‘(i) APPROVALS OF TRANSFER SUBJECT TO AVAIL24 ABILITY OF APPROPRIATIONS.—The Secretary concerned 

25 may approve transfers of entitlement to basic educational 
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1 assistance under this section in a fiscal year only to the 

2 extent that appropriations for military personnel are avail3 able in that fiscal year for purposes of making deposits 

4 in the Department of Defense Education Benefits Fund 

5 under section 2006 of this title in that fiscal year to cover 

6 the present value of future benefits payable from the Fund 

7 for the Department of Defense portion of payments of 

8 basic educational assistance attributable to increased 

9 usage of benefits as a result of such transfers of entitle10 ment in that fiscal year. 

11 ‘‘(j) REGULATIONS.—After consultation with the Sec12 retary of Veterans Affairs, the Secretary of Defense shall 

13 prescribe regulations for purposes of this section. Such 

14 regulations shall specify the manner and effect of an elec15 tion to modify or revoke a transfer of entitlement under 

16 subsection (e)(2) and shall specify the manner of the ap17 plicability of the administrative provisions referred to in 

18 subsection (g)(5) to a dependent to whom entitlement is 

19 transferred under this section. 

20 ‘‘(k) ANNUAL REPORT.—(1) As part of the report re21 quired under section 3020(l) of title 38, (beginning in 

22 2006), the Secretary of Defense shall include information 

23 on the transfers of entitlement to basic educational assist24 ance under this section that were approved by each Sec25 retary concerned during the preceding fiscal year. 
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1 ‘‘(2) Each report shall set forth— 

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

3 under this section that were approved by such Sec4 retary during the preceding fiscal year; or 

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

6 section were approved by such Secretary during that 

7 fiscal year, a justification for such Secretary’s deci8 sion not to approve any such transfers of entitlement 

9 during that fiscal year.’’. 

10 (2) CLERICAL AMENDMENT.—The table of sections 

11 at the beginning of such chapter is amended by adding 

12 at the end the following new item: 

‘‘16138. Transfer of entitlement to basic educational assistance by members of 

the Selected Reserve entitled to retired pay.’’. 

13 (b) CONFORMING AMENDMENT.—Section 3020 of 

14 title 38, United States Code, is amended— 

15 (1) by redesignating subsection (m) as sub16 section (n); and 

17 (2) by inserting after subsection (l) the fol18 lowing new subsection: 

19 ‘‘(m) COORDINATION WITH AUTHORITY FOR TRANS20 FERS UNDER THE RESERVE MONTGOMERY GI BILL.— 

21 In carrying out this section and section 16138 of title 10, 

22 each Secretary concerned shall take such steps as may be 

23 necessary to ensure that a transfer of entitlement under 
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1 each such section is made pursuant to the applicable re2 quirements of such sections.’’. 

3 SEC. 7. REQUIREMENT FOR THE SECRETARY OF VETERANS 

4 AFFAIRS TO REPORT TO CONGRESS ON 

5 TRANSFERS OF ENTITLEMENT BY MEMBERS 

6 OF THE SELECTED RESERVE ENTITLED TO 

7 RETIRED PAY. 

8 (a) IN GENERAL.—Subchapter II of chapter 30 of 

9 title 38, United States Code, is amended by adding at the 

10 end the following new section: 

11 ‘‘§ 3020A. Annual report on transfers of entitlement to 

12 basic educational assistance by members 

13 of the Selected Reserve entitled to retired 

14 pay 

15 ‘‘(a) INCLUSION IN ANNUAL REPORT.—As part of 

16 the annual report submitted to the Congress under section 

17 529 of this title, the Secretary shall include a description 

18 of the operation of the program for transfer of entitlement 

19 to basic educational assistance by members of the selected 

20 reserve entitled to retired pay under section 16138 of title 

21 10. 

22 ‘‘(b) SPECIFIC INFORMATION REQUIRED.—The Sec23 retary shall include in the description required under sub24 section (a) the following information: 
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1 ‘‘(1) The aggregate number of transfers of enti2 tlement made during the preceding year. 

3 ‘‘(2) The type of programs of education pur4 sued by dependents to whom entitlement was so 

5 transferred. 

6 ‘‘(3) The number of spouses to whom entitle7 ment was so transferred. 

8 ‘‘(4) The number of dependent children to 

9 whom entitlement was so transferred.’’. 

10 (b) CLERICAL AMENDMENT.—The table of sections 

11 at the beginning of such chapter is amended by adding 

12 at the end the following new item: 

Æ