rate of one month for each month of transferred entitle-
ment that is used.
‘‘(2) Except as provided under subsection (e)(2) and
subject to paragraphs (4) and (5), a dependent to whom
entitlement is transferred under this section is entitled to
basic educational assistance under this subchapter in the
same manner and at the same rate as the individual from
whom the entitlement was transferred.
‘‘(3) The death of an individual transferring an enti-
tlement under this section shall not affect the use of the
entitlement by the individual to whom the entitlement is
transferred.
‘‘(4) Notwithstanding section 3031 of this title, a
child to whom entitlement is transferred under this section
may not use any entitlement so transferred after attaining
the age of 26 years.
‘‘(5) The administrative provisions of this chapter
(including the provisions set forth in section 3034(a)(1)
of this title) shall apply to the use of entitlement trans-
ferred under this section, except that the dependent to
whom the entitlement is transferred shall be treated as
the eligible veteran for purposes of such provisions.
‘‘(6) 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 equiva-
lency certificate).
‘‘(i) OVERPAYMENT.—(1) In the event of an overpay-
ment of basic educational assistance with respect to a de-
pendent to whom entitlement is transferred under this sec-
tion, 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 this title.
‘‘(2) Except as provided in paragraph (3), if an indi-
vidual transferring entitlement under this section fails to
complete the service agreed to by the individual under sub-
section (b)(3) in accordance with the terms of the agree-
ment of the individual under that subsection, 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 basic
educational assistance under paragraph (1).
‘‘(3) Paragraph (2) shall not apply in the case of an
individual who fails to complete service agreed to by the
individual—
‘‘(A) by reason of the death of the individual;
or
‘‘(B) for a reason referred to in section
3011(a)(1)(A)(ii)(I) of this title.
‘‘(j) APPROVALS OF TRANSFER SUBJECT TO AVAIL-
ABILITY OF APPROPRIATIONS.—The Secretary concerned
may approve transfers of entitlement to basic educational
assistance under this section in a fiscal year only to the
extent that appropriations for military personnel are avail-
able in the fiscal year for purposes of making transfers
of funds under section 2006 of title 10 with respect to
such transfers of entitlement.
‘‘(k) REGULATIONS.—The Secretary of Defense shall
prescribe regulations for purposes of this section. Such
regulations shall specify the manner and effect of an elec-
tion to modify or revoke a transfer of entitlement under
subsection (f)(2), and shall specify the manner of the ap-
plicability of the administrative provisions referred to in
subsection (h)(5) to a dependent to whom entitlement is
transferred under this section.
‘‘(l) ANNUAL REPORTS.—(1) Not later than January
31, 2003, and each year thereafter, each Secretary con-
cerned shall submit to the Committees on Armed Services
of the Senate and House of Representatives a report on
the transfers of entitlement to basic educational assistance
under this section that were approved by such Secretary
during the preceding year.
‘‘(2) Each report shall set forth—
‘‘(A) the number of transfers of entitlement
under this section that were approved by such Sec-
retary during the preceding year; or
‘‘(B) if no transfers of entitlement under this
section were approved by such Secretary during that
year, a justification for such Secretary’s decision not
to approve any such transfers of entitlement during
that year.
‘‘(m) SECRETARY CONCERNED DEFINED.—Notwith-
standing section 101(25) of this title, in this section, the
term ‘Secretary concerned’ means—
‘‘(1) the Secretary of the Army with respect to
matters concerning the Army;
‘‘(2) the Secretary of the Navy with respect to
matters concerning the Navy or the Marine Corps;
‘‘(3) the Secretary of the Air Force with respect
to matters concerning the Air Force; and
‘‘(4) the Secretary of Defense with respect to
matters concerning the Coast Guard, or the Sec-
retary of Transportation when it is not operating as
a service in the Navy.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 3019 the following new item:
‘‘3020. Transfer of entitlement to basic educational assistance: members of the
Armed Forces with critical military skills.’’.
(b) TREATMENT UNDER DEPARTMENT OF DEFENSE
EDUCATION BENEFITS FUND.—Section 2006(b)(2) of
title 10, United States Code, is amended by adding at the
end the following:
‘‘(D) The present value of the future bene-
fits payable from the Fund as a result of trans-
fers under section 3020 of title 38 of entitle-
ment to basic educational assistance under
chapter 30 of title 38.’’.
(c) PLAN FOR IMPLEMENTATION.—Not later than
June 30, 2002, the Secretary of Defense shall submit to
Congress a report describing the manner in which the Sec-
retaries of the military departments and the Secretary of
Transportation propose to exercise the authority granted
by section 3020 of title 38, United States Code, as added
by subsection (a).
SEC. 3. AUTHORITY FOR ACCELERATED PAYMENTS OF
BASIC EDUCATIONAL ASSISTANCE UNDER
MONTGOMERY GI BILL.
(a) IN GENERAL.—Section 3014 of title 38, United
States Code, is amended by adding at the end the fol-
lowing new subsection:
‘‘(c)(1)(A) Notwithstanding any other provision of
this chapter and subject to subparagraph (B), an indi-
vidual entitled to basic educational assistance under this